India’s Axis Bank, a private lender, has reported a higher-than-expected rise in net profit for the second quarter. The standalone net profit increased by 10% to 58.64 billion rupees ($705.2 million) in July-September, surpassing expectations. This rise in profit is mainly driven by strong loan demand, especially in retail credit, due to increased consumer spending. Axis Bank’s CEO, Amitabh Chaudhry, expressed optimism about the upcoming festive season and the surge in loan demand. The bank’s personal loan portfolio remains robust, with 83% of loans going to existing customers. Axis Bank also observed strong loan demand from corporate clients. The asset quality improved with a decrease in gross non-performing assets ratio to 1.73%. Provisions and contingencies decreased by 21.2% from the previous quarter. Net interest income rose by 19% year-over-year. Net interest margin also improved, indicating increased profitability. Indian banks have experienced margin pressure in recent quarters due to the rise in policy interest rates. However, Axis Bank’s strong financial results indicate its ability to navigate these challenges and maintain growth. The bank remains optimistic about future growth in the personal loan segment and expects continued strong demand from corporate clients.