NE ECONOMIC BUREAU
CHENNAI, JULY 20
Strong earnings, healthier asset quality and relentless digital innovation have given Axis Bank a flying start to FY27. Demonstrating that disciplined growth and technology-led transformation can go hand in hand, the country’s leading private sector lender reported a 23 per cent year-on-year jump in net profit, underpinned by robust growth in deposits and advances, improving profitability, stable asset quality and strategic investments in artificial intelligence and next-generation banking solutions.
- Private sector banking major posts ₹7,114-crore Q1FY27 profit as deposits rise 18%, advances grow 19% and balance sheet expands to ₹19.22 lakh crore
- Asset quality strengthens further with Gross NPA at 1.28% and Net NPA at 0.39%; Return on Equity improves to 14.16%
- Digital leadership gathers pace with 38% UPI payer market share, AI-powered compliance, Aadhaar Face Authentication and India’s first Digital Locker-focused branch
- Corporate, Mid-Corporate and SME lending clock robust growth, while subsidiaries deliver 21% jump in quarterly profit
- CEO Amitabh Chaudhry says Axis Bank is investing in trust, innovation and resilience to create enduring value for customers and the economy
Axis Bank reported a Profit After Tax (PAT) of ₹7,114 crore for the first quarter of FY27, marking a 23% year-on-year increase. The performance was driven by positive operating leverage, sustained business momentum and prudent risk management.
The Bank’s Net Interest Income (NII) rose 8% year-on-year to ₹14,646 crore, while Core Operating Profit increased 10% year-on-year and 5% sequentially to ₹11,122 crore, reflecting healthy operating performance.
Maintaining its growth trajectory, the Bank continued to gain market share across key business segments. Deposits expanded 18% year-on-year, while advances grew 19%, resulting in a 20% increase in the overall balance sheet, which reached ₹19,21,966 crore.
Asset quality remained among the strongest in the sector, with the Gross Non-Performing Asset (GNPA) ratio improving to 1.28%, down 29 basis points from a year earlier. The Net NPA ratio also declined to 0.39%, improving by 6 basis points year-on-year.
The Bank further enhanced shareholder returns, with Return on Equity (RoE) improving to 14.16%, while maintaining a healthy Capital Adequacy Ratio (CAR) of 16.67%, underscoring its strong capital position.
Digital Banking Gets a Stronger Edge
Axis Bank reinforced its leadership in digital payments by retaining an approximately 38% UPI Payer PSP market share, with the value of UPI transactions growing 48% year-on-year.
The Bank also accelerated its transformation into an AI-enabled financial institution through several customer-centric innovations.
Among the key initiatives during the quarter were:
- Introduction of Aadhaar Face Authentication as a self-service digital solution for updating mobile numbers—making Axis Bank the first leading bank to offer the facility.
- Partnership with Flipkart and PayU to enable secure biometric authentication for card payments through OTP-free transactions.
- Deployment of AI-powered compliance solutions to simplify ReKYC and business profile updates for current account customers through intelligent paperless workflows.
- Launch of the country’s first Digital Locker-focused branch, showcasing a futuristic banking model built around automation, enhanced security and customer convenience.
Corporate Lending Continues to Fire
The Bank recorded broad-based credit growth across business segments.
Its Corporate loan book expanded 38% year-on-year, while the Mid-Corporate portfolio grew 27% and SME advances rose 25%, reflecting strong demand across India’s expanding business ecosystem.
Axis Bank’s domestic subsidiaries also delivered a healthy performance, reporting a combined Q1FY27 PAT of ₹546 crore, representing a 21% year-on-year increase.
Backing Innovation Beyond Banking
During the quarter, the Bank strengthened its role as a catalyst for economic development.
It partnered with the Federation of Hotel & Restaurant Associations of India (FHRAI) and organised the Tourism Promotion & Expansion Plan Meet in Srinagar to encourage sustainable tourism and inclusive growth in Jammu & Kashmir.
Axis Bank also announced a ₹100-crore partnership with BITS Pilani to establish an advanced Industry Research, Technology & Innovation Park in Hyderabad, further reinforcing its commitment to India’s innovation ecosystem.
The Bank additionally released the fifth edition of the Burgundy Private Hurun India 500 Report, highlighting India’s 500 most valuable companies with a combined valuation of US$3.4 trillion.
Axis Group Expands Growth Capital
In another significant development, Axis Finance announced a ₹2,250-crore capital infusion from Axis Bank and Kedaara Capital to accelerate growth across retail, MSME and wholesale lending businesses.
Industry Recognition
Axis Bank’s digital transformation journey received widespread recognition during the quarter, including:
- Three Platinum Awards at the Infosys Finacle Innovation Awards.
- Two honours at the PWM WealthTech Awards 2026.
- Financial Express Best Digital Bank of the Year 2026 award.
Commenting on the performance, Amitabh Chaudhry, Managing Director & Chief Executive Officer, Axis Bank, said: “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.”
With a strong earnings trajectory, improving asset quality, accelerating digital capabilities and sustained investments in technology and innovation, Axis Bank has begun FY27 on a confident note, reinforcing its position as one of India’s fastest-transforming and most resilient private sector banks.
