Axis Bank (AXISBANK) investor relations material

Executive summary

• Q2 FY27 standalone net profit was ₹7,003.28 crore and consolidated net profit was ₹7,704.67 crore; advances grew 23% YoY, or 19% excluding FCNR-linked lending.

• Deposits grew 21% YoY, or 17% excluding FCNR(B)-backed balances; asset quality improved, with GNPA at 1.16% and NNPA at 0.35%.

• Reported NIM was 3.36%; excluding FCNR(B), it was 3.47%. Management expects sequential improvement as FCNR funds are deployed and balance-sheet mix is optimized.

Financial highlights

• Q2 NII was ₹15,371 crore, up 12% YoY and 5% QoQ; fee income was ₹6,381 crore, up 6% YoY.

• Q2 operating profit was ₹11,083 crore, up 6% YoY; core operating profit was ₹10,998 crore, up 11%.

• H1 NII reached ₹30,018 crore, up 10% YoY; H1 standalone net profit was ₹14,117.20 crore and consolidated net profit was ₹15,336.98 crore.

• Operating expenses rose 9% YoY to ₹10,819 crore; cost-to-assets declined 24 bps YoY to 2.14%.

• Q2 PBT was ₹9,389 crore, up 37% YoY; trading income fell 83% YoY to ₹85 crore.

Outlook and guidance

• Medium-term through-cycle NIM guidance remains 3.8%; sequential improvement is the objective, but timing is uncertain.

• FCNR optimization is expected to support NIM in Q3 and Q4; retiring higher-cost non-retail term deposits should provide some benefit next quarter.

• Medium-term loan growth target is 300 bps above industry growth; management gave no specific sequential NII uplift guidance.

• Management expects current-cycle credit costs to be lower than in the prior cycle; tighter provisioning may lift incremental provisions in the short term.

• Priorities include accelerating retail growth toward a loan mix above 55%, scaling digital lending and deposits, productivity-led branch expansion and AI-enabled platforms; no timetable was provided for the retail mix goal.