Mumbai: Axis Bank reported a strong financial performance for the first quarter of FY27, with consolidated net profit rising 22.2 per cent year-on-year to Rs 7,632.31 crore. The lender’s earnings were supported by a sharp decline in provisions and contingencies, while advances, deposits and net interest income (NII) continued to register healthy growth.

The bank also posted higher total income and expanded its balance sheet during the April–June quarter, reflecting steady business momentum across its retail and corporate banking segments.

Net profit rises on lower provisions

Axis Bank’s consolidated net profit stood at Rs 7,632.31 crore for the quarter ended June 30, 2026, compared with the corresponding period last year.

A key factor behind the earnings growth was a significant reduction in provisions and contingencies.

The bank reported:

  • Provisions and contingencies: Rs 2,337.47 crore
  • Year-on-year decline: 42.1 per cent
  • Previous year’s provisions: Rs 4,034.19 crore

Lower provisioning helped lift the bank’s profit before tax (PBT) by 24.2 per cent to Rs 10,161.28 crore, compared with Rs 8,179.70 crore in the year-ago quarter.

Axis Bank also clarified that it did not utilise the Rs 2,001 crore one-time standard asset provision created during the March quarter of FY26.

Net interest income grows steadily

The bank’s Net Interest Income (NII), which reflects earnings from its core lending business, increased 8.6 per cent year-on-year.

Key figures include:

  • NII: Rs 15,327.26 crore
  • Q1 FY26 NII: Rs 14,109.62 crore

Interest earned rose 9.9 per cent to Rs 35,541.96 crore, while interest expenses increased 10.8 per cent to Rs 20,214.70 crore.

The steady growth in NII indicates continued expansion in the bank’s lending operations despite rising funding costs.

Total income rises 7 per cent

Axis Bank’s consolidated total income increased 7 per cent year-on-year to Rs 43,212.82 crore, compared with Rs 40,401 crore in the corresponding quarter last year.

However, other income declined by 4.7 per cent to Rs 7,670.86 crore, partially offsetting gains from higher interest income.

Loan book and deposits continue to grow

The bank maintained strong momentum in expanding both its lending and deposit franchise.

As of June 30, 2026:

  • Advances: Rs 13.16 trillion (up 19.3 per cent)
  • Deposits: Rs 13.71 trillion (up 18.2 per cent)

The continued growth reflects sustained credit demand and healthy customer deposit mobilisation.

Axis Bank’s total assets also increased 20.1 per cent year-on-year to Rs 19.86 trillion, highlighting continued balance sheet expansion.

Retail banking remains the biggest contributor

Retail banking continued to be Axis Bank’s largest business segment during the quarter.

The segment reported:

  • Revenue: Rs 39,517.11 crore
  • Growth: 7.9 per cent year-on-year

Retail profit before tax more than doubled to Rs 3,851.40 crore, compared with Rs 1,647.83 crore in the corresponding quarter last year.

The strong performance underscores the bank’s continued focus on consumer lending and retail financial services.

Corporate banking also performs strongly

Axis Bank’s corporate and wholesale banking business also delivered healthy growth.

The segment recorded:

  • Revenue: Rs 15,026.97 crore
  • Growth: 20 per cent year-on-year

Profit before tax from the segment increased 21.7 per cent to Rs 3,601.14 crore, reflecting strong business activity among corporate clients.

Treasury business remains under pressure

Unlike its core banking operations, the treasury segment reported weaker performance.

Profit before tax from treasury operations declined 30.5 per cent to Rs 1,690.16 crore, indicating softer gains from treasury-related activities during the quarter.

Conclusion

Axis Bank delivered a strong start to FY27, with a 22.2 per cent increase in consolidated net profit driven by lower provisions and healthy growth across its core banking operations. Rising advances, deposits and net interest income reflected continued business expansion, while retail and corporate banking remained key growth drivers. Although treasury operations were weaker during the quarter, the bank’s overall financial performance highlights its resilient operating momentum and expanding balance sheet.