Axis Bank Ltd.Strong PAT Growth; NIM Bottoms at 3.46%

Axis Bank delivered robust profitability in Q1 FY27 with Profit After Tax surging 23% YoY to ₹7,114 crore, supported by 8% YoY Net Interest Income growth to ₹14,646 crore and improved operational efficiency as cost-to-assets declined 21 bps YoY to 2.20%.

Return on Equity stood at 14.52% with strong capital adequacy as CET-1 ratio improved to 14.64%, providing a 52 bps hidden buffer from unprovided standard asset provisions. Management declared Q1 NIM of 3.46% as the cycle bottom, reaffirming the 3.8% structural target through retail mix improvement as disbursements accelerated to 18% YoY. Asset quality reached multi-year best levels with Gross NPA at 1.28% and Net NPA at 0.39%, while net credit cost declined 75 bps YoY to 0.63%.

Total advances grew 19% YoY driven by 38% wholesale expansion, 25% SME growth, and strengthening retail momentum. The bank leveraged the FCNR deposit window to augment NRI-driven funding while maintaining industry-plus-300 bps medium-term growth guidance without requiring equity capital.