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.
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.
Axis bank reported provisions and contingencies of Rs 1,694 crore for the fiscal second quarter, including specific loan-loss provisions of Rs 1,564 crore.