Axis Bank Q2 profit jumps 38% as asset quality improves sharply

Axis Bank's earnings momentum accelerated in the July-September quarter, with net profit climbing 38 per cent year-on-year to ₹7,003 crore, driven by improved operational metrics and lower credit costs.

The bank's net interest income—the difference between what it earns from loans and pays on deposits—grew 12 per cent to ₹15,371 crore during the quarter. This expansion reflected steady growth across the lender's retail and corporate lending portfolios amid rising credit demand in the Indian economy.

Provisioning expenses fell sharply by 52 per cent, signalling improved asset quality and lower stress in the loan book. The gross non-performing asset ratio improved to 1.16 per cent, indicating that the proportion of loans in default or arrears has contracted, a key metric investors monitor for credit health.

The performance underscores the resilience of India's banking sector amid the higher interest rate environment, with lenders benefiting from wider interest margins while maintaining disciplined credit underwriting and asset quality standards.