Axis Bank on Saturday reported a 23 percent year-on-year rise in standalone net profit to Rs 7,114 crore for the April-June quarter of FY27, driven by steady operating performance and stable asset quality. The private sector lender had reported a net profit of Rs 5,806 crore in the corresponding quarter last year.

Net interest income (NII), the difference between interest earned and interest paid, increased 8 percent year-on-year to Rs 14,646 crore from Rs 13,560 crore a year ago. Net interest margin (NIM) for the quarter stood at 3.46 percent. Fee income rose 7 percent to Rs 6,156 crore, while total non-interest income stood at Rs 6,735 crore. Operating profit came in at Rs 11,659 crore, while core operating profit rose 10 percent year-on-year to Rs 11,122 crore.

Axis Bank's asset quality improved during the quarter. Gross non-performing assets (GNPA) ratio declined to 1.28 percent as of June 30, 2026, from 1.57 percent a year earlier, while net NPA ratio improved to 0.39 percent from 0.45 percent. Gross slippages for the quarter stood at Rs 5,566 crore, compared with Rs 8,200 crore in the year-ago period, while net credit cost declined to 0.63 percent. Provision coverage ratio remained at 70 percent.

Provisions and contingencies for the quarter stood at Rs 2,223 crore, including specific loan loss provisions of Rs 2,079 crore. The bank said it continued to hold an additional one-time provision of Rs 2,001 crore created in the previous quarter towards macroeconomic and geopolitical uncertainties, with no drawdown during the June quarter.

On the business front, total deposits rose 18 percent year-on-year to Rs 13.73 lakh crore, while net advances increased 19 percent to Rs 12.62 lakh crore. Corporate loans grew 38 percent, SME advances rose 25 percent and retail loans increased 8 percent from a year earlier. The bank's balance sheet expanded 20 percent year-on-year to Rs 19.22 lakh crore.

Axis Bank maintained a strong capital position, with its capital adequacy ratio under Basel III at 16.67 percent and CET-1 ratio at 14.64 percent as of June 30, 2026. The bank said it had an additional capital cushion of around 52 basis points from provisions not included in regulatory capital calculations.

Ahead of the results, Axis Bank shares rose 1.6 percent on Friday to end at Rs 1,328.5 on NSE. The stock has gained 4.3 percent year-to-date, outperforming benchmark Nifty 50 index, which has lost 6.9 percent during the same period.