Axis Bank Q1 results: Net profit rises 23% to Rs 7,114 crore; NIM at 3.46%; key highlights
Axis Bank Q1 results: Net Interest Income (NII) increased 8 per cent YoY to Rs 14,646 crore from Rs 13,560 crore a year earlier. Fee income rose 7 per cent YoY to Rs 6,156 crore.
- Jul 18, 2026,
- Updated Jul 18, 2026 2:08 PM IST
Axis Bank Ltd on Saturday reported a 23 per cent year-on-year (YoY) rise in net profit at Rs 7,114 crore for the June quarter, compared with Rs 5,806 crore in the corresponding quarter last year. The growth was driven by positive operating jaws -- revenue growth outpacing operating expenses, and stable asset quality.
Net Interest Income (NII) increased 8 per cent YoY to Rs 14,646 crore from Rs 13,560 crore a year earlier.
Fee income rose 7 per cent YoY to Rs 6,156 crore. However, trading income declined 62 per cent YoY, while miscellaneous income fell 54 per cent from the year-ago period. Net Interest Margin (NIM) for the quarter stood at 3.46 per cent, the lender said in a filing to stock exchanges.
"The bank has not drawn down from the West Asia provision created in Q4FY26 and the said provision continues to remain at Rs 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.
Return on Asset (RoA) for the quarter stood at 1.51 per cent against 1.47 per cent YoY. Annualized Return on Equity (RoE) came in at 14.16 per cent against 13.14 per cent YoY.
MD & CEO Amitabh Chaudhry said: “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.”
Provisions and contingencies Axis Bank said provision and contingencies for the quarter stood at Rs 2,223 crore. Specific loan loss provisions for Q1FY27 stood at Rs 2,079 crore. The bank held cumulative provisions of Rs 15,608 crore as on June 30. This was over and above the NPA provisioning included in its PCR calculations.
"These cumulative provisions translate to a standard asset coverage of 1.24 per cent as on 30th June 2026. On an aggregated basis, our provision coverage ratio (including specific + standard + additional) stands at 161% of GNPA as on 30th June 2026. Credit cost (annualized) for the quarter ended 30th June 2026 stood at 0.63 per cent," Axis Bank said.
Balance sheet Axis bank said its balance sheet grew 20 per cent YoY and stood at Rs 19,21,966 crore as on June 30. The total deposits grew 3 per cent QoQ and 18 per cent YoY on month end basis, of which current account deposits grew 6 per cent YoY, saving account deposits grew 14% YOY and term deposits 23 per cent YoY.
The private lender's share of CASA deposits in total deposits stood at 38 per cent. "On QAB basis, total deposits grew 6 per cent QoQ and 18 per cent YoY, within which savings account deposits grew 14 per cent YoY, current account deposits grew 13 per cent YoY, and term deposits grew 21 per cent YoY," Axis Bank said.
Asset quality
Axis Bank's asset quality improved YoY, with gross non-performing assets (GNPA) declining to 1.28 per cent as on June 30, 2026, from 1.57 per cent a year earlier. Net non-performing assets (NNPA) also eased to 0.39 per cent from 0.45 per cent in the corresponding period last year.
Recoveries from written-off accounts stood at Rs 961 crore during the quarter. Reported net slippages, adjusted for recoveries from the written-off pool, came in at Rs 2,479 crore, comprising Rs 2,614 crore from the retail segment and Rs 136 crore from commercial banking (CBG), while the wholesale segment reported net recoveries of Rs 271 crore.
Gross slippages increased QoQ to Rs 5,566 crore from Rs 4,675 crore in Q4FY26 but declined YoY from Rs 8,200 crore in Q1FY26. Recoveries and upgrades from NPAs stood at Rs 2,126 crore during the quarter, while the bank wrote off NPAs worth Rs 2,399 crore.
The bank's provision coverage ratio (PCR), as a percentage of gross NPAs, remained unchanged QoQ at 70 per cent as on June 30, 2026, but was lower than 71 per cent a year earlier.
Axis Bank Ltd on Saturday reported a 23 per cent year-on-year (YoY) rise in net profit at Rs 7,114 crore for the June quarter, compared with Rs 5,806 crore in the corresponding quarter last year. The growth was driven by positive operating jaws -- revenue growth outpacing operating expenses, and stable asset quality.
Net Interest Income (NII) increased 8 per cent YoY to Rs 14,646 crore from Rs 13,560 crore a year earlier.
Fee income rose 7 per cent YoY to Rs 6,156 crore. However, trading income declined 62 per cent YoY, while miscellaneous income fell 54 per cent from the year-ago period. Net Interest Margin (NIM) for the quarter stood at 3.46 per cent, the lender said in a filing to stock exchanges.
"The bank has not drawn down from the West Asia provision created in Q4FY26 and the said provision continues to remain at Rs 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.
Return on Asset (RoA) for the quarter stood at 1.51 per cent against 1.47 per cent YoY. Annualized Return on Equity (RoE) came in at 14.16 per cent against 13.14 per cent YoY.
MD & CEO Amitabh Chaudhry said: “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.”
Provisions and contingencies Axis Bank said provision and contingencies for the quarter stood at Rs 2,223 crore. Specific loan loss provisions for Q1FY27 stood at Rs 2,079 crore. The bank held cumulative provisions of Rs 15,608 crore as on June 30. This was over and above the NPA provisioning included in its PCR calculations.
"These cumulative provisions translate to a standard asset coverage of 1.24 per cent as on 30th June 2026. On an aggregated basis, our provision coverage ratio (including specific + standard + additional) stands at 161% of GNPA as on 30th June 2026. Credit cost (annualized) for the quarter ended 30th June 2026 stood at 0.63 per cent," Axis Bank said.
Balance sheet Axis bank said its balance sheet grew 20 per cent YoY and stood at Rs 19,21,966 crore as on June 30. The total deposits grew 3 per cent QoQ and 18 per cent YoY on month end basis, of which current account deposits grew 6 per cent YoY, saving account deposits grew 14% YOY and term deposits 23 per cent YoY.
The private lender's share of CASA deposits in total deposits stood at 38 per cent. "On QAB basis, total deposits grew 6 per cent QoQ and 18 per cent YoY, within which savings account deposits grew 14 per cent YoY, current account deposits grew 13 per cent YoY, and term deposits grew 21 per cent YoY," Axis Bank said.
Asset quality
Axis Bank's asset quality improved YoY, with gross non-performing assets (GNPA) declining to 1.28 per cent as on June 30, 2026, from 1.57 per cent a year earlier. Net non-performing assets (NNPA) also eased to 0.39 per cent from 0.45 per cent in the corresponding period last year.
Recoveries from written-off accounts stood at Rs 961 crore during the quarter. Reported net slippages, adjusted for recoveries from the written-off pool, came in at Rs 2,479 crore, comprising Rs 2,614 crore from the retail segment and Rs 136 crore from commercial banking (CBG), while the wholesale segment reported net recoveries of Rs 271 crore.
Gross slippages increased QoQ to Rs 5,566 crore from Rs 4,675 crore in Q4FY26 but declined YoY from Rs 8,200 crore in Q1FY26. Recoveries and upgrades from NPAs stood at Rs 2,126 crore during the quarter, while the bank wrote off NPAs worth Rs 2,399 crore.
The bank's provision coverage ratio (PCR), as a percentage of gross NPAs, remained unchanged QoQ at 70 per cent as on June 30, 2026, but was lower than 71 per cent a year earlier.