Axis Bank Q1 Results 2026: Net profit jumps 23% YoY to ₹7,114 crore; NII rises 8%

Axis Bank Q1 Results 2026: Private sector lender Axis Bank announced its earnings for the quarter ended June 2026 on Saturday, July 18. It reported a double-digit growth in both profit and net interest income while beating brokerage estimates on its core lending income.

The private sector lender posted a standalone net profit of ₹7,114 crore for the April-June quarter (Q1 FY27), up 22.5% from ₹5,806 crore in the year-ago period.

The bank's net interest income (NII), a key measure of earnings from lending operations, increased to ₹14,646 crore from ₹13,560 crore a year earlier, registering a growth of more than 8%. Meanwhile, net interest margin (NIM) for the quarter came in at 3.46%, reflecting the bank's profitability on its interest-earning assets.

Axis Bank reported an improvement in its asset quality on a year-on-year basis during the June quarter, although key bad loan ratios edged up sequentially.

The bank's gross non-performing assets (GNPA) declined around 4% year-on-year to ₹17,124 crore, while net non-performing assets (NNPA) increased around 2.5% year-on-year to ₹5,193 crore. The GNPA ratio improved to 1.28% from a year ago, while the NNPA ratio stood at 0.39%, also reflecting an improvement on a year-on-year basis. However, both ratios were higher than the 1.23% GNPA and 0.37% NNPA reported in Q4 FY26.

During Q1 FY27, the private lender reported provisions and contingencies of ₹2,223 crore, while specific loan loss provisions stood at ₹2,079 crore.

Axis Bank noted that it had voluntarily strengthened its prudent provisioning framework for standard assets during the fourth quarter of FY26 as part of its conservative risk management approach. The lender also said that, after assessing evolving macroeconomic and geopolitical uncertainties, it had created a one-time additional provision of ₹2,001 crore in Q4 FY26.

"The Bank has not drawn down from the West Asia provision created in Q4 FY26, and the said provision continues to remain at ₹2,001 crores at June 30, 2026. 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.

Axis Bank continued to witness healthy growth in both deposits and advances during the June quarter.

On a month-end basis, total deposits increased 3% quarter-on-quarter and 18% year-on-year. Within this, current account deposits grew 6% year-on-year, savings account deposits rose 14%, while term deposits registered a 23% year-on-year increase.

The bank's advances stood at ₹12.62 lakh crore as of June 30, 2026, reflecting growth of 19% year-on-year and 2% quarter-on-quarter. Retail loans increased 8% year-on-year to ₹6.76 lakh crore and accounted for 54% of the bank's net advances.

Axis Bank Managing Director and Chief Executive Officer Amitabh Chaudhry said the bank remains focused on building a financial services franchise centred on trust, innovation and resilience as customer expectations evolve and technology continues to transform the industry.

"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. With these investments, we hope to create enduring value for our customers, stakeholders and the communities we serve," he said.

Axis Bank shares ended around 2% higher on Friday, closing at ₹1,328.50 apiece on the NSE. Despite declining around 2% over the past one month, the stock has gained more than 4% so far in 2026 and over 14% in last1 year.

Over the longer term, Axis Bank has delivered returns of around 38% over the last three years and 72% over a five-year period.