Axis Bank on Saturday reported a 37.6 percent year-on-year increase in net profit to Rs 7,003.3 crore for the second quarter of FY27, falling short of market expectations. The private sector lender's net interest income (NII) rose 11.8 percent to Rs 15,371.4 crore, exceeding analysts' estimates, while asset quality improved during the quarter.
According to a CNBC TV18 poll, analysts had expected Axis Bank to report a net profit of Rs 7,132 crore, representing a 40 percent year-on-year increase. The reported profit was approximately 1.8 percent below the estimate. Meanwhile, NII exceeded the poll estimate of Rs 14,970 crore by approximately 2.7 percent.
The bank reported a net interest margin (NIM) of 3.36 percent for the July-September quarter. Excluding the impact of foreign currency non-resident (FCNR-B) deposits, NIM stood at 3.47 percent. The private lender raised Rs 1,018 billion under the FCNR (B) scheme, including Rs 438 billion backed by advances from Bank’s international branches and Rs 449 billion backed by standby letters of credit
Axis Bank's operating profit increased 6 percent year on year to Rs 11,083 crore, while core operating profit rose 11 percent to Rs 10,998 crore. Other income declined 1 percent to Rs 6,531 crore, although fee income grew 6 percent to Rs 6,381 crore. The Retail fees grew 7 percent sequentially and 4 percent Y-o-Y and constituted 70 percent of the Bank’s total fee income. The Corporate & Commercial banking fees together grew 10 percent YOY to Rs 1,943 crores.
The trading income for the quarter stood at Rs 85 crores; miscellaneous income in Q2FY27 stood at Rs 65 crores. Overall, noninterest income (comprising of fee, trading and miscellaneous income) for Q2FY27 stood at Rs 6,531 crores