Axis Bank Limited reported a standalone net profit of ₹7,003.28 crore for the quarter ended September 30, 2026, marking a 37.6% increase from the corresponding period last year. The bank's total income rose to ₹42,949.32 crore, driven by robust interest income growth.

The Board of Directors approved the unaudited standalone and consolidated financial results during its meeting held on October 17, 2026. These results were subjected to a limited review by joint statutory auditors M M Nissim & Co. LLP and KKC & Associates LLP.

Key Financial Metrics

The bank demonstrated strong asset quality improvement alongside healthy revenue expansion. Interest earned on advances and bills contributed significantly to the top line, while operating expenses saw a moderate rise compared to the previous quarter. Net Interest Income (NII) stood at ₹15,371 crore, up 12% YoY, with a Net Interest Margin (NIM) of 3.36%.

Asset Quality and Capital Position

Asset quality metrics showed consistent improvement, with gross non-performing assets (NPAs) declining to 1.16% from 1.46% in the year-ago quarter. This represents a sequential improvement from 1.28% in the previous quarter. Fresh slippages dropped to ₹4,762 crore in Q2FY27, down from ₹5,566 crore in the preceding quarter. Net NPAs also contracted to 0.35% from 0.44% YoY, down from 0.39% in the preceding quarter. The bank's capital adequacy ratio under Basel III norms stood at 16.27%, providing a comfortable buffer above regulatory requirements. CET-1 ratio was 14.61%.

Provisions and contingencies decreased significantly to ₹1,693.74 crore in Q2FY27, compared to ₹3,547.04 crore in Q2FY26. This reduction in provisioning costs directly contributed to the sharp jump in net profit despite a modest rise in operating expenses. The provision coverage ratio (PCR) remained healthy at 70%.

Segment Performance and Business Growth

Retail Banking remained the largest contributor to segment revenue, generating ₹40,974.70 crore in Q2FY27. Digital Banking, a sub-segment of Retail, contributed ₹11,165.29 crore. Corporate/Wholesale Banking revenue grew to ₹14,716.89 crore, reflecting increased corporate lending activity.

The bank's balance sheet grew 22% YoY to ₹20,46,240 crore. Total deposits grew 21% YoY to ₹14,52,066 crore, while advances expanded 23% YoY to ₹13,73,727 crore. Retail loans grew 16% YoY, SME loans up 25% YoY, and Corporate loans up 34% YoY.

What the Numbers Show

A notable divergence exists between the growth in total income (14.2% YoY) and the much sharper rise in net profit (37.6% YoY). This gap is primarily explained by the significant drop in provisions and contingencies, which fell by 52.2% YoY. While revenue growth was steady, the profitability surge was largely driven by lower credit costs rather than operational leverage alone, as operating expenses rose by 8.7% YoY against a similar revenue increase. Additionally, the bank raised ₹1,018 billion in FCNR (B) deposits, which impacted the NIM calculation; excluding this impact, NIM would be higher at 3.47%. The sequential decline in both Gross and Net NPAs, coupled with fresh slippages falling to ₹4,762 crore from ₹5,566 crore QoQ, further supports the narrative of improving asset quality driving lower provisioning needs.

Axis Bank has appointed Ananth Narayan G. as an additional independent director for a four-year term. The appointment is effective from October 19, 2026, and runs until October 18, 2030.

The decision was taken by the Board of Directors on October 16, 2026, based on the recommendation of the Nomination and Remuneration Committee. The appointment is subject to shareholder approval. Under Section 149(13) of the Companies Act, 2013, Narayan will not be liable to retire by rotation during his tenure.

Profile and regulatory background

Ananth Narayan G. brings extensive experience in financial markets and regulation. He served as a Whole-Time Member of the Securities and Exchange Board of India (SEBI) from October 2022 to October 2025. In this role, he handled policy, enforcement, and adjudication matters across market infrastructure institutions, secondary markets, foreign portfolio investment, alternative investment funds, intermediaries, and corporate governance.

Prior to his regulatory role, Narayan spent 25 years in global financial markets. He traded foreign exchange, fixed income, commodities, and derivatives. He led regional financial markets businesses for Standard Chartered, Deutsche Bank, and Citibank across South Asia and ASEAN.

He also served as an Associate Professor and head of Public Policy at Bhavan's SPJIMR for over four years. His board experience includes SBI Capital Markets, Yes Bank (as an RBI appointee), Care Ratings, and NSE Clearing.

Current affiliations and education

Narayan currently holds several academic and analytical positions:

• Senior India Analyst at Observatory Group LLC
• Senior Visiting Fellow at Isaac Center for Public Policy, Ashoka University
• Honorary Professor of Practice at IIT Bombay SJM School of Management

He holds a Post-graduate Diploma in Management from the Indian Institute of Management, Lucknow, where he was awarded the Director's Gold Medal. He graduated with a Bachelor of Technology in Electrical Engineering from the Indian Institute of Technology, Bombay.

Governance disclosures

The bank confirmed that Ananth Narayan G. is not related to any of the Directors or Key Managerial Personnel of the bank. Furthermore, he is not debarred from holding the office of director by virtue of any order of SEBI or any other statutory authority.

The Board Meeting commenced at 9:00 am, and the appointment was approved at 9:30 am. The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.