Axis Bank announced its Q2FY27 earnings on Saturday, reporting a 37.5% year‑on‑year increase in net profit to ₹7,003 crore, up from ₹5,089 crore in Q2FY26. The rise was largely driven by a 52.2% drop in provisions, which fell to ₹1,693 crore from ₹3,547 crore in the same period last year. On a sequential basis, profit growth was muted at –1.3%, down from ₹7,113 crore in the previous quarter.

Net interest income for the quarter ended September 2026 surged 11.8% year‑on‑year to ₹15,371 crore, compared with ₹13,745 crore in the same period last year. On a sequential basis, net interest income rose 4.9% to ₹15,371 crore from ₹14,646 crore. Interest expense grew 22%, outpacing the 17% rise in interest income, resulting in an 11% increase in net interest income.

Asset quality improved markedly, with the gross non‑performing assets ratio falling to 1.16% from 1.46% in Q2FY26 and 1.28% in the previous quarter. The net non‑performing assets ratio also declined to 0.35% from 0.44% in Q2FY26 and 0.39% in the prior quarter, delivering the best‑ever performance for the private‑sector lender.

Granular loan book growth was robust: retail loans jumped 16% year‑on‑year and 10% quarter‑on‑quarter, SME loans rose 25% year‑on‑year, while corporate and mid‑corporate loans increased 34% and 29% year‑on‑year respectively, contributing to an overall healthy loan mix. Gross advances rose 22.7% year‑on‑year to ₹1.38 lakh crore, up from ₹1.12 lakh crore in the same period last year.

Deposits grew 20.7% year‑on‑year to ₹1.45 lakh crore, driven by a 27% rise in term deposits and a 10.6% increase in low‑cost CASA deposits. Axis Bank mobilised $10.6 billion (₹1.02 lakh crore) in swap facility for the FCNRB deposits scheme introduced by the Reserve Bank of India, and the bank’s shares closed on a flat‑to‑positive note ahead of the quarterly earnings.