Axis Bank, the third-largest lender in India, reported on Saturday a 23% year-on-year rise in net profit for the quarter ending June 2026 (Q1FY27). This growth was attributed to a decrease in the volume of provisions and a moderate increase in Net Interest Income (NII).
The bank's Net Interest Income increased by 8% year-over-year, reaching 14,646 crore rupees in the first quarter. Meanwhile, income from other sources decreased by 7% year-over-year, amounting to 6,735 crore rupees. The bank's overall Net Interest Margin (NIM) in Q1FY27 stood at 3.46%, which is lower than the 3.62% recorded in Q4FY26 and 3.80% in Q1FY26.
New write-offs at the bank in Q1FY27 totaled 5,566 crore rupees, higher than the 4,675 crore rupees in Q4FY26, but significantly lower than the 8,200 crore rupees in Q1FY26. Concurrently, the bank's total provisions decreased both sequentially and year-on-year, reaching 2,223 crore rupees in Q1FY27. Provisions were 3,522 crore rupees in Q4FY26 and 3,948 crore rupees in Q1FY26.
The bank's Gross Non-Performing Assets (NPA) ratio slightly increased to 1.28% by the end of Q1FY27, up by 5 basis points sequentially. The Net NPA ratio also rose by 2 basis points to 0.39%. The bank's asset volume grew by 19% year-over-year and 2% quarter-on-quarter, reaching 12.61 trillion rupees in June. Retail loans increased by 8% year-over-year to 6.76 trillion rupees, accounting for 54% of the bank's net assets. The Small and Medium Business (SME) portfolio grew by 25% year-over-year and 3% quarter-on-quarter to 1.52 trillion rupees, while corporate lending increased by 38% year-over-year and 5% quarter-on-quarter. The mid-corporate client portfolio grew by 27% year-over-year and 10% quarter-on-quarter.
The bank's deposits increased by 18% year-over-year, reaching 13.72 trillion rupees. Current and savings account deposits (CASA) grew by 11% year-over-year to 5.21 trillion rupees, and term deposits increased by 23% year-over-year to 8.51 trillion rupees.
The public sector bank Union Bank of India reported a significant increase in its net profit for the first quarter of the fiscal year 2027 (Q1FY27), which ended in June 2026. The company's profit reached 5,332 crore rupees, representing a 29.5% growth compared to 4,116 crore rupees in the same period last year. This growth was driven by a healthy increase in core income and a reduction in operating expenses.
The bank's Net Interest Income (NII) increased by 10.1% year-on-year in Q1FY27, amounting to 10,037 crore rupees versus 9,113 crore rupees the previous year. Meanwhile, the Net Interest Margin (NIM) improved to 2.80%, up from 2.76% in the previous year. Non-interest income grew by 2.6% year-on-year to 4,603 crore rupees, but sequentially declined by 15% compared to the March quarter (4,486 crore rupees).
Within the non-interest income structure, fee-based income showed significant growth, increasing by 45% year-on-year to 3,215 crore rupees (compared to 2,218 crore rupees). This figure remained relatively stable compared to the previous quarter, increasing by only 0.2% (to 3,209 crore rupees). Concurrently, treasury income sharply fell by 54.5% year-on-year, reaching 645 crore rupees (compared to 1,418 crore rupees), although it showed a slight increase of 1.4% compared to the previous quarter (636 crore rupees).
Regarding asset quality, the Gross Non-Performing Assets (GNPA) ratio improved to 2.65% as of June 2026, down from 3.52% a year earlier. The Net NPA ratio decreased to 0.47% from 0.62%. Furthermore, the slippage ratio improved to 0.82% compared to 0.99% last year.
The total volume of global loans grew by 12.5% year-on-year, reaching 10.96 trillion rupees from 9.74 trillion rupees. Internal loans increased by 13.1% to 10.61 trillion rupees, and retail loans grew by 12.1% to 2.57 trillion rupees (from 2.29 trillion rupees). The loan volume in the Retail, Agriculture, and MSME (RAM) segments expanded by 11.6% to 6.08 trillion rupees.
On the liability side, global deposits increased by 3.5% year-on-year, reaching 12.83 trillion rupees (from 12.40 trillion rupees). Internal deposits also grew by 3.5% to 12.83 trillion rupees. The domestic Current Account Savings Account (CASA) ratio improved to 35.10% from 32.52%, and CASA deposits themselves increased by 12.5% year-on-year, totaling 3.76 trillion rupees (compared to 3.34 trillion rupees).
The public sector bank Indian Bank, based in Chennai, announced a 10% increase in net profit for the first quarter of the current fiscal year, reaching INR 3,273 crore. In the same quarter of the previous fiscal year, the profit was INR 2,973 crore.
According to the report submitted to the regulator, the bank's total income for the June quarter of 2026-27 increased to INR 20,724 crore compared to INR 18,721 crore in the corresponding period of FY 26. Interest income also improved, amounting to INR 18,090 crore versus INR 16,283 crore a year earlier.
Net Interest Income (NII) grew by 17%, reaching INR 7,435 crore compared to INR 6,359 crore in the June quarter of FY 26. Furthermore, the bank's operating profit rose to INR 5,557 crore from INR 4,770 crore recorded in the same quarter last year.
The bank demonstrated an improvement in asset quality: Gross Non-Performing Assets (NPA) decreased to 1.86% of total loans by the end of June, down from 3.01% a year earlier. Similarly, Net NPAs, or bad loans, reduced to 0.15% compared to 0.18% in the previous year.
As a result of these changes, provisions for bad loans were reduced to INR 376 crore in the first quarter, down from INR 387 crore a year ago. The Provision Coverage Ratio (PCR) remained unchanged at 98.2% during the quarter.
The Return on Assets (ROA) improved to 1.34% for June 2026, whereas it was 1.03% in June 2025. Meanwhile, the bank's capital adequacy ratio decreased to 17.80% from 17.99% in the same quarter of FY 26.
