Major Indian Banks Report Strong Q2 FY27 Financial Results with Record Profits and Asset Quality Improvements

Indian banking institutions including ICICI Bank, Axis Bank, Ujjivan Small Finance Bank, and IDBI Bank have reported robust financial performance for the second quarter ended September 30, 2026 (Q2 FY27). The quarterly results demonstrate widespread momentum across retail and corporate lending, strong deposit expansion, expanding net interest margins, and significant improvements in asset quality metrics.

ICICI Bank Reports 20% Net Profit Rise to ₹14,843 Crore:
India’s second-largest private sector lender, ICICI Bank, recorded a 20.1% year-on-year (YoY) increase in standalone Net Profit After Tax (PAT), reaching ₹14,843 crore for Q2 FY27 compared to ₹12,359 crore in Q2 FY26.

Interest Income & NII: Total interest income advanced 17.6% YoY to ₹49,110 crore, while Net Interest Income (NII) expanded 17.7% YoY to ₹25,339 crore (up from ₹21,529 crore).

Margins & Provisions: Net Interest Margin (NIM) stood at 4.18% (down 12 bps YoY from 4.30%). Bad loan provisions dropped nearly 7% YoY to ₹850.69 crore.

Asset Quality: Gross Non-Performing Assets (GNPA) improved by 38 bps YoY to 1.20% (down from 1.58%), with a Provision Coverage Ratio (PCR) of 75.0%. The bank wrote off gross NPAs amounting to ₹1,592 crore during the quarter.

Market Capitalization: ICICI Bank’s market capitalization crossed ₹10.03 lakh crore as of October 16, 2026, with the stock closing at ₹1,397 per share.

Axis Bank PAT Jumps 38% YoY to ₹7,003 Crore:
Axis Bank delivered a strong quarter with net profit surging 38% YoY to ₹7,003 crore, backed by robust advance growth, lower provisions, and expanding digital execution.

Core Financials & Balance Sheet: Net Interest Income (NII) grew 12% YoY to ₹15,371 crore, while Core Operating Profit rose 11% YoY to ₹10,998 crore. Total balance sheet size expanded 22% YoY to ₹20,46,240 crore.

Advances & Deposits Growth: Total deposits grew 21% YoY, while total advances surged 23% YoY, driven by a 34% YoY growth in corporate lending and a 25% YoY increase in SME lending to ₹1,64,592 crore. Small Business Banking and Rural lending expanded 21% and 20% YoY, respectively.

Asset Quality: GNPA improved to 1.16% (down from 1.46% a year ago), while Net NPA (NNPA) declined to 0.35% (down from 0.44%).

Digital & Strategic Milestones: Axis Bank maintained a ~38% market share in UPI Payer PSP transaction volume, issued 1.09 million new credit cards in Q2, and became the first Indian bank to introduce Apple Pay for credit card customers across Mastercard and Visa networks.

Management Commentary: Amitabh Chaudhry, MD & CEO, Axis Bank, stated: “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.”

Ujjivan SFB Posts Record PAT of ₹365 Crore and Board Approves ₹409 Crore Fund Raise:
Ujjivan Small Finance Bank Ltd. (BSE: 542904; NSE: UJJIVANSFB) achieved its highest-ever quarterly profitability while approving a capital infusion strategy.

Capital Infusion: The board approved a ₹409 crore preferential allotment from institutional investors, including the International Finance Corporation (IFC), Bajaj Life Insurance, HDFC Life Insurance, and Aditya Birla Sun Life Insurance, yielding a ~₹0.8 per share BVPS accretion. Additionally, the bank increased its securitization pool by ₹500 crore via Direct Assignment.

Earnings & Margins: PAT leaped 199.9% YoY to ₹365 crore (up 15.3% QoQ). NII rose 35% YoY to ₹1,244 crore, maintaining a stable NIM of 8.4% (up 55 bps YoY). Return on Assets (RoA) reached 2.4%, and Return on Equity (RoE) stood at 19.7%.

Deposits & Lending Book: Total deposits crossed the milestone of ₹50,643 crore (up 29.2% YoY), with a CASA ratio of 26.0%. The gross loan book grew 32.1% YoY to ₹45,699 crore, with quarterly disbursements crossing ₹10,495 crore. The secured loan portfolio grew 47% YoY to ₹23,803 crore (52.1% share), led by Affordable Housing at ₹10,056 crore.

Asset Quality & Reach: GNPA / NNPA improved to 2.10% / 0.31%, and PCR reached 85%. The bank launched its national brand campaign ‘Nothing Small About Us’ featuring actor Mr. R Madhavan.

Management Commentary: Ms. Carol Furtado, Whole Time Director & Interim CEO, noted: “The Bank delivered highest quarterly PAT of ₹365 Cr… supported by robust credit expansion, a growing deposit franchise, an increasing share of secured assets and all-round financial discipline.”

IDBI Bank Posts Operating Profit of ₹2,893 Crore with NIM Expanding to 4.11%:
IDBI Bank demonstrated healthy operational expansion and strengthening asset quality across its key metrics for Q2 FY27.

Earnings & Margins: Operating profit reached ₹2,893 crore (up 33% QoQ), while Net Profit stood at ₹2,205 crore. NII increased 29% YoY and 21% QoQ to ₹4,228 crore. NIM expanded by 40 bps YoY and 50 bps QoQ to 4.11%.

Business Scale & Deposits: Total business reached ₹6,27,216 crore (up 18% YoY). Total deposits grew 17% YoY to ₹3,55,684 crore, with CASA reaching ₹1,55,877 crore (CASA ratio of 43.82%). Net advances expanded 18% YoY to ₹2,71,533 crore.

Asset Quality & Ratios: Gross NPA declined to 2.12% (down 53 bps YoY), Net NPA stood at 0.17%, and PCR reached 99.24%. Cost-to-Income ratio dropped to 48.17% (down 385 bps QoQ), while Capital Adequacy (CRAR) strengthened to 27.10%.