Financial Performance Overview

Axis Bank reported unaudited standalone financial results for Q1FY27 (quarter ended June 30, 2026) with strong performance across key metrics.

Profitability:

  • Net Profit After Tax (PAT) stood at ₹7,114 crores, up 23% YoY from ₹5,806 crores in Q1FY26
  • Operating Profit reached ₹11,659 crores, up 16% QoQ; Core Operating Profit was ₹11,122 crores, up 5% QoQ and 10% YoY
  • Net Interest Income (NII) grew 8% YoY to ₹14,646 crores from ₹13,560 crores
  • Net Interest Margin (NIM) was 3.46%
  • Return on Assets (annualized) improved to 1.51% from 1.47% YoY
  • Return on Equity (annualized) improved to 14.16% from 13.14% YoY
  • Diluted EPS (annualized) was ₹91.24 compared to ₹74.75 in Q1FY26

Revenue Breakdown:

  • Total Operating Revenue: ₹21,382 crores, up 3% YoY
  • Core Operating Revenue (excluding trading income): ₹20,844 crores, up 7% YoY
  • Fee Income: ₹6,156 crores, up 7% YoY
  • Retail fees constituted 67% of total fee income, growing 2% YoY
  • Corporate & Commercial banking fees grew 18% YoY and 16% QoQ to ₹2,004 crores
  • Trading Income: ₹537 crores, down 62% YoY
  • Miscellaneous Income: ₹42 crores, down 54% YoY

Expenses:

  • Operating Expenses: ₹9,722 crores, up 5% YoY
  • Staff Expenses: ₹3,058 crores, down 6% YoY
  • Non-Staff Expenses: ₹6,664 crores, up 10% YoY
  • Cost to Assets ratio: 2.20%, declined 21 bps YoY and 8 bps QoQ
  • Technology expenses were ~11% of total operating expenses

Balance Sheet Growth

Deposits:

  • Total Deposits: ₹13,72,936 crores, up 18% YoY and 3% QoQ
  • CASA Deposits: ₹5,21,698 crores, up 11% YoY
  • Savings Bank Deposits: ₹3,48,312 crores, up 14% YoY
  • Current Account Deposits: ₹1,73,386 crores, up 6% YoY
  • Term Deposits: ₹8,51,238 crores, up 23% YoY
  • CASA Ratio: 38% on month-end basis, 37% on quarterly average basis
  • Cost of Funds decreased by 35 bps YoY and 2 bps QoQ

Advances:

  • Net Advances: ₹12,61,557 crores, up 19% YoY and 2% QoQ
  • Retail Loans: ₹6,75,546 crores, up 8% YoY (54% of net advances)
  • Home Loans: ₹1,73,787 crores, up 5% YoY (26% of retail book)
  • Rural Loans: ₹1,17,211 crores, up 16% YoY
  • Loan Against Property: ₹87,342 crores, up 11% YoY
  • Personal Loans: ₹82,781 crores, up 7% YoY
  • Small Business Banking (SBB): ₹79,468 crores, up 18% YoY and 2% QoQ
  • Auto Loans: ₹60,134 crores, up 4% YoY
  • Credit Cards: ₹45,523 crores, up 5% YoY
  • SME Loans: ₹1,51,619 crores, up 25% YoY and 3% QoQ
  • Corporate Loans: ₹4,34,392 crores, up 38% YoY and 5% QoQ
  • Mid-Corporate segment grew 27% YoY and 10% QoQ
  • SBB+SME+Mid Corporate book reached ₹3,061 billion, representing 24% of total loans (up 911 bps in last 5 years)

Investments:

  • Total Investments: ₹4,38,955 crores, up 22% YoY
  • Government Securities: ₹3,61,934 crores
  • Corporate Bonds: ₹51,938 crores
  • Other Securities (equities, mutual funds, etc.): ₹25,083 crores
  • Portfolio Allocation: 74% HTM, 11% AFS, 13% FVTPL, 2% Subsidiaries and Associate

Asset Quality

NPA Ratios:

  • Gross NPA: 1.28% (down 29 bps YoY from 1.57%)
  • Net NPA: 0.39% (down 6 bps YoY from 0.45%)
  • Provision Coverage Ratio (PCR): 70%
  • Aggregate Coverage Ratio (including specific + standard + additional): 161% (up 2,318 bps YoY)

Slippages and Provisions:

  • Gross Slippage Ratio (annualized): 1.79% (down 134 bps YoY)
  • Net Slippage Ratio (annualized): 1.12% (down 121 bps YoY)
  • Net Credit Cost (annualized): 0.63% (down 75 bps YoY)
  • Specific Loan Loss Provisions: ₹2,079 crores
  • Cumulative Provisions (standard + additional other than NPA): ₹15,608 crores (1.24% standard asset coverage)
  • One-time additional standard asset provision of ₹2,001 crores created in Q4FY26 remains intact

Recoveries and Write-offs:

  • Recoveries from written-off accounts: ₹961 crores
  • Gross Slippages: ₹5,566 crores
  • Recoveries and Upgrades from NPAs: ₹2,126 crores
  • Write-offs: ₹2,399 crores

Capital Adequacy

  • Capital Adequacy Ratio (CAR): 16.67%
  • CET-1 Ratio: 14.64% (added 26 bps in the quarter)
  • Tier I Capital: 15.35%
  • Tier II Capital: 1.32%
  • Additional cushion of ~52 bps over reported CAR from other provisions (₹7,013 crores) and one-time standard asset provision (₹1,231 crores)
  • Shareholders' Funds: ₹2,11,693 crores, up 15% YoY
  • Book Value per Share: ₹681, up from ₹596 YoY

Liquidity Position

  • Excess SLR: ₹1,41,700 crores
  • Average Liquidity Coverage Ratio (LCR) during Q1FY27: ~119%

Digital Banking and Payments

Digital Performance:

  • UPI Payer PSP market share: ~38% by volume (Q1FY27)
  • Acquired ~0.92 million new credit cards in Q1FY27
  • Credit Cards in Force market share: ~13.4% (as of May 2026)
  • Merchant Acquiring terminal market share: ~22.1%
  • Axis Mobile App ratings: 4.8 on both Google Play and iOS App Store
  • Monthly Active Users (MAU): ~16 million
  • ~12 million non-Axis Bank customers using Axis Mobile app
  • WhatsApp Banking: Over 40 million customers onboarded since 2021 launch

Digital Transaction Metrics:

  • 98% share of digital transactions in total financial transactions by individual customers
  • 48% YoY growth in total UPI transaction value
  • 46% new mutual fund SIPs sourced through digital channels
  • 66% savings accounts opened through tab banking
  • 48% individual retail term deposits (by value) opened digitally
  • 25% YoY growth in mobile banking transaction volumes

Subsidiaries Performance

Domestic Subsidiaries Aggregate:

  • Q1FY27 PAT: ₹546 crores, up 21% YoY
  • Return on Investment in domestic subsidiaries: ~41%

Axis Finance:

  • PAT: ₹244 crores, up 29% YoY
  • Assets under finance crossed ₹50,000 crores, growing 21% YoY
  • Retail book grew 22% YoY
  • Net NPA: 0.39%
  • Capital Adequacy Ratio: 21.56%

Axis AMC:

  • PAT: ₹134 crores, up 3% YoY
  • Quarterly Average AUM: ₹3,69,030 crores, up 10% YoY

Axis Capital:

  • PAT: ₹65 crores, up 72% YoY
  • Executed 8 ECM and 3 non-ECM transactions in Q1FY27

Axis Securities:

  • PAT: ₹96 crores, up 8% YoY
  • Revenues: ₹410 crores
  • Customer base grew 10% YoY

Wealth Management (Burgundy)

  • Assets Under Management (AUM): ₹7,53,819 crores, up 20% YoY and 11% QoQ
  • Burgundy Private AUM: ₹2,68,058 crores, up 16% YoY and 12% QoQ
  • Burgundy Private families: 17,408

Network Expansion

  • Domestic branches and extension counters: 6,295 (vs 5,879 YoY)
  • Business Correspondent Banking Outlets: 315 (vs 235 YoY)
  • Centers: 3,352 (vs 3,192 YoY)
  • ATMs and cash recyclers: 12,564
  • Axis Virtual Centre: 8 centers with 1,700 Virtual Relationship Managers

Management Commentary

Amitabh Chaudhry, MD & CEO, stated: "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."

The bank highlighted several strategic initiatives including:

  • Aadhaar Face Authentication for mobile number updates
  • Collaboration with Flipkart and PayU for biometric authentication for card payments
  • AI-powered compliance solutions for current account customers
  • First Digital Locker-focused branch launch
  • Partnership with FHRAI for hospitality and tourism sectors
  • ₹100-crore partnership with BITS Pilani for research park in Hyderabad
  • Axis Finance capital raise of ₹2,250 crores from Axis Bank and Kedaara Capital

Awards and Recognition

  • Three Platinum wins at Infosys Finacle Innovation Awards
  • Two honours at PWM WealthTech Awards 2026
  • Financial Express Best Digital Bank of the Year 2026 award

Shareholding Pattern (as of June 30, 2026)

The investor presentation included shareholding pattern details but specific percentages were not provided in the text.

Forward-looking Statements

The document contains safe harbor statements noting that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from expectations.