Axis Bank profit rises 23% as loan book grows 19%
India's Axis Bank beat brokerage estimates with a 23% profit jump driven by robust credit growth, even as it maintained a special provision buffer against global macroeconomic risks.
Axis Bank reported a standalone net profit of ₹7,114 crore for the quarter ended June 2026, a 22.5% increase from the prior year. The Indian private lender beat brokerage expectations for its core lending income, with net interest income rising 8% year-on-year to ₹14,646 crore.
The earnings were primarily driven by an expanding balance sheet. Advances reached ₹12.62 lakh crore, growing 19% from a year earlier and 2% sequentially. Retail loans, which account for 54% of net advances, grew 8% year-on-year to ₹6.76 lakh crore, demonstrating sustained consumer demand.
Deposit growth kept pace with the lending expansion, rising 18% year-on-year and 3% quarter-on-quarter. This funding was largely powered by a 23% surge in term deposits, while savings account deposits rose 14% and current account deposits increased 6%. The shift toward term deposits highlights a competitive landscape for low-cost liquidity.
Asset quality improved annually but showed slight sequential strain. The gross non-performing assets ratio fell to 1.28% from a year ago, but edged up from 1.23% in the prior quarter. The net NPA ratio followed a similar pattern, rising to 0.39% from 0.37% in the fourth quarter.
The bank maintained a cautious approach to global macroeconomic and geopolitical risks. It kept a special ₹2,001 crore provision for West Asia exposures intact from the previous quarter. "This provision continues to be prudent and precautionary in nature and does not reflect any deterioration in asset quality or adverse credit trends in the bank's loan or investment portfolio as of the reporting date," Axis Bank said.
Profitability on interest-earning assets held steady with a net interest margin of 3.46%. The bank set aside ₹2,223 crore for provisions and contingencies, including ₹2,079 crore in specific loan loss provisions.
Investors responded favorably to the results, pushing shares up 2% to close at ₹1,328.50 on Friday. The stock has gained more than 4% in 2026 and has delivered a 72% return over the past five years.
Management indicated the bank will continue investing heavily in technology to maintain its market position. "This quarter, we continued to invest across these priorities - strengthening digital security, deploying AI to simplify customer journeys, expanding growth platforms and supporting ecosystems that drive economic progress," said Amitabh Chaudhry, managing director and chief executive officer.
