18 July,2026 02:34 PM IST | Mumbai | mid-day online correspondent
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Private sector lender Axis Bank reported nearly 23 per cent rise in its standalone net profit to Rs 7,114 crore for the first quarter ended June 30, 2026.
Its standalone net profit had stood at Rs 5,806 crore in the corresponding quarter last year, it said in a regulatory filing on Saturday.
The bank's net interest income, increased 8 per cent to Rs 14,646 crore during the quarter under review from Rs 13,560 crore during the same quarter last year. Net interest income is the difference between interest earned and interest paid, a key metric to understand a bank's financial stability. Net interest margin, a key financial metric to understand a bank's profitability, stood at 3.46 per cent.
The operating revenue stood at Rs 21,382 crore during the quarter from Rs 20,818 crore in the same quarter last year, an increase of 3 per cent. Its fee income climbed 7 per cent to Rs 6,156 crore from Rs 5,746 crore in the first quarter of the last financial year. Its operating profit for the quarter stood at Rs 11,659 crore, while core operating profit stood at Rs 11,122 crore.
Gross slippages during the quarter were Rs 5,566 crore, compared to Rs 8,200 crore, the corresponding quarter last year. While it was Rs 4,675 crore in the previous quarter (Q4FY26). Recoveries and upgrades from non-performing assets (NPAs) during the quarter were Rs 2,126 crore. A slippage refers to a loan that was defaulted for over 90 days and thus being categorised as a non-performing asset.
During the quarter under review, it wrote off NPAs amounting to Rs 2,399 crore. As on 30th June 2026, the bank's provision coverage, as a proportion of Gross NPAs stood at 70 per cent as against 71 per cent in the year ago period. The bank's reported Gross NPA and Net NPA levels were 1.28 per cent and 0.39 per cent respectively, as against 1.57 per cent and 0.45 per cent as on 30th June 2025.
Provision and contingencies for Q1FY27 stood at Rs 2,223 crore, while specific loan loss provisions for Q1FY27 stood at Rs 2,079 crores.
"Based on an assessment of evolving and unpredictable macroeconomic and geopolitical uncertainties, the Bank had created an additional one-time provision of Rs 2,001 crore during Q4FY26. 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 crore at June 30, 2026," it said.
"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," it added.
Total deposits during the quarter surged to Rs 13.73 lakh crore from Rs 11.62 lakh crore in the year ago period. The lender's advances during the quarter rose to Rs 12.62 lakh crore, from nearly Rs 11 lakh crore in the previous year.
The bank's capital adequacy ratio stood at 16.67 per cent, while the share of current account and savings account (CASA) deposits in total deposits was at 38 per cent.
"As customer expectations evolve and technology continues to reshape financial services, our focus remains on building a franchise that combines trust, innovation and resilience at scale. 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." Amitabh Chaudhry, MD and CEO, Axis Bank said.
