Business · Companies · 10 hrs ago
Axis Bank profit rises 38% as FCNR deposits squeeze margins
Axis Bank reported ₹7,003 crore in profit for the quarter ending 30 September, 38% more than a year earlier but 2% less than in the June quarter.
The results are for the second quarter of India’s 2026-27 financial year.
Net interest income rose 12% to ₹15,371 crore, while the bank’s net interest margin, a measure of how much it earns from lending, fell to 3.36% from 3.46%.
More than $10 billion in FCNR deposits weighed on margins as the bank brought in and deployed foreign-currency deposits through a special Reserve Bank of India window.
The bank said the deposits are being used mainly to replace some higher-cost bulk deposits and support lending growth.
Operating expenses climbed 9% to ₹10,819 crore, including spending on technology and digital services.
Lower provisions helped profitability, and the bank reported advances up 23% from a year earlier.
Axis Bank said it is working to improve margins, but it gave no loan growth guidance, citing a high base and inflationary pressures.
Axis Bank reported net profit of ₹7,003 crore for the September quarter of FY27, up 38% year on year.
Profit fell 2% from the June quarter, while net interest income rose 12% year on year to ₹15,371 crore.
Net interest margin narrowed to 3.36% from 3.46% in the previous quarter, partly due to FCNR deposit inflows and their deployment.
The bank said it mobilised more than $10 billion in FCNR deposits under a special Reserve Bank of India window.
Operating expenses rose 9% year on year to ₹10,819 crore.
- Who
- Axis Bank, one of India’s largest private sector lenders.
- What
- It reported September-quarter net profit of ₹7,003 crore, up 38% year on year.
- When
- The quarter ended 30 September 2026; results were reported on 17 October.
- Where
- India.
- Why
- Profit rose year on year, while FCNR deposit inflows and their deployment weighed on margins.
This story does not have two clearly opposing sides.
Rajeev Mantri’s appointment as Axis Bank CFO took effect.
The September quarter ended, and Axis Bank had mobilised $10.62 billion in FCNR(B) deposits.
Axis Bank reported its September-quarter results.
- Net profit
- ₹7,003 crore; up 38% year on year
- Net interest income
- ₹15,371 crore; up 12% year on year
- Net interest margin
- 3.36%, down from 3.46% in the previous quarter
- FCNR(B) deposits
- $10.62 billion mobilised by 30 September 2026
- Operating expenses
- ₹10,819 crore; up 9% year on year
2 sources
What people are saying
We have seen roughly around 11 basis points impact on the NIM which have come through because of the FCNR(B) funds coming through, and also because of the deployment of the FCNR which took some time.
We should be able to see some bit of an uplift on that basis. We are working towards improvement in the NIM.
As customer expectations continue to evolve, our focus remains on building a franchise that combines innovation, trust and execution at scale. This quarter, we built on our leadership in digital payments and secure banking while advancing our technology agenda through AI-driven innovation and strategic partnerships.