Axis Bank Share News: Q2 Loans Grow 22.7%, Deposits 20.7%, but Read the Fine Print
At first glance, Axis Bank's September-quarter business update looks like one of its strongest in years. Loans up nearly 23%. Deposits up almost 21%. For a bank that grew loans at just 12% a year ago, that's a big jump. But there's a catch, and the bank flagged it itself: a chunk of this growth came from a special foreign currency deposit window run by the Reserve Bank of India.
So how much of the growth is real, and what does it mean for the bank's funding mix? Let's break it down. For the live price, chart and ratios, visit the Axis Bank stock page on GoPocket.
Key Takeaways
- Gross advances rose 22.7% year-on-year to ₹13,84,600 crore; total deposits grew 20.7% to ₹14,52,100 crore.
- Excluding loans linked to FCNR(B) deposits, advances grew 18.8% and deposits 17.0%.
- Axis Bank mobilised $10.62 billion in FCNR(B) deposits under an RBI swap facility.
- Our calculation shows the CASA ratio slipped to about 36.5%, from roughly 40% a year ago.
What Did Axis Bank Report for Q2 FY27?
Axis Bank released its provisional business numbers for the quarter ended September 30, 2026 on Monday, October 5. According to Business Standard, gross advances rose 22.7% year-on-year to ₹13,84,600 crore, while total deposits grew 20.7% to ₹14,52,100 crore.
Here's how the key figures compare, using data from the bank's filings as reported by Equitybulls, inkl and the bank's own June-quarter disclosure:
| Metric (₹ billion) | Sep 30, 2026 | Jun 30, 2026 | Sep 30, 2025 | YoY growth |
|---|---|---|---|---|
| Gross advances | 13,846 | 12,729 | 11,284 | 22.7% |
| Total deposits | 14,521 | ~13,725* | ~12,031* | 20.7% |
| CASA deposits | 5,296 | 5,217 | 4,790 | 10.6% |
| Term deposits | 9,225 | ~8,508* | ~7,241* | About 27% |
*Derived from the reported growth rates; figures may differ slightly from the bank's exact numbers.
On a quarterly average basis, total deposits came in at ₹13,964 billion for the September quarter, as per Equitybulls.
What Is the FCNR(B) Effect on Axis Bank's Growth?
FCNR(B) stands for Foreign Currency Non-Resident (Bank) deposits. These are deposits held by non-resident Indians in foreign currencies like the US dollar. Earlier this year, the RBI introduced a swap facility that made it attractive for banks to raise these deposits.
Axis Bank used it heavily. The bank said it mobilised FCNR(B) deposits worth $10.62 billion, or about ₹1,018 billion, by September 30. Some of these came with a twist. Axis Bank's international branches gave loans of about $4.57 billion (₹438 billion) to customers as a leveraging facility for placing such deposits, Equitybulls reported. In plain terms, some customers borrowed from the bank and parked the money back with the bank as deposits. That shows up on both sides of the balance sheet.
Strip those loans out, and the picture is more modest. Gross advances would have grown 18.8% year-on-year and 5.3% quarter-on-quarter. Total deposits would have grown 17.0% year-on-year and 2.6% sequentially. Our own check confirms the math: removing ₹438 billion from both advances and deposits gives exactly those growth rates.
Is 18.8% still good? Yes. A year ago, the bank's loans were growing at about 12%, as Business Standard noted in October 2025. So the underlying pace has clearly picked up.
The CASA Ratio: The Number Worth Watching
CASA deposits, current and savings accounts, are the cheapest source of money for a bank. A higher CASA ratio usually means lower funding costs and better margins. Here's how Axis Bank's ratio has moved, based on our calculation from reported figures:
- September 2025: about 39.8% (₹4,790 billion out of roughly ₹12,031 billion)
- June 2026: about 38.0% (₹5,217 billion out of roughly ₹13,725 billion)
- September 2026: about 36.5% (₹5,296 billion out of ₹14,521 billion)
CASA balances are still growing, up 10.6% in a year. But term deposits grew about 27%, so CASA's share of the pie is shrinking. Even after excluding the ₹438 billion of leveraged deposits, the ratio works out to around 37.6%, still lower than a year ago.
There's a silver lining. Axis Bank used part of the FCNR(B) money to cut costlier non-retail term deposits, which fell 8.6% quarter-on-quarter, according to Whalesbook. Whether that offsets the lower CASA share on margins is something only the full results will show.
How Stretched Is the Loan-to-Deposit Ratio?
Dividing gross advances by total deposits gives a rough loan-to-deposit measure. By our calculation, it rose to about 95.4% in September 2026, from around 92.7% in June and 93.8% a year earlier. Last October, management had guided that its credit-to-deposit ratio would stay within about 2 percentage points of 92%, Business Standard reported. The current figure sits near the top of that range, so deposit growth will need to keep pace with lending from here.
What Happened in Axis Bank's Q2 Last Year?
Context matters for the upcoming results. In Q2 FY26, Axis Bank's net profit fell 26% year-on-year to ₹5,090 crore, mainly because of higher provisions, according to Business Standard. The RBI had directed the bank to make a one-time provision of ₹1,231 crore on two crop loan variants. That low base means year-on-year profit growth in Q2 FY27 could look flattering, so it's worth focusing on core operating numbers too.
For how other private lenders are faring, read our HDFC Bank Q2 business update and our RBI policy October 2026 analysis, which covers how rate moves affect bank margins.
What Should Axis Bank Watchers Track Next?
- Full Q2 FY27 results: Last year, the bank reported on October 15. Expect a similar mid-October timeline.
- Net interest margin: The impact of a lower CASA share and FCNR(B) funding on margins.
- Asset quality: Gross and net NPA trends, especially in unsecured retail loans.
- Loan-to-deposit ratio: Whether deposits can keep up with faster loan growth.
- Leadership: Commentary from management after the change in CFO earlier this year.
Follow the Axis Bank share price, chart and financials on GoPocket.
Sources
- Business Standard, Stocks to watch: Trent, Vedanta, Axis Bank, Adani Power, Marico & more, October 6, 2026
- Equitybulls, Axis Bank reports strong growth in advances and deposits for Q2 FY27 in business update, October 5, 2026
- inkl, Axis Bank's gross advances rise 23% YoY to Rs 13.85 lakh crore in Q2, deposits up 21%, October 5, 2026
- Whalesbook, Axis Bank reports robust Q2 growth; adjusted advances rise 18.8% YoY, October 5, 2026
- Axis Bank, Intimation to stock exchanges: key figures as on June 30, 2026, July 4, 2026
- Business Standard, Improving asset quality, growth outlook brighten Axis Bank's prospects, October 2025
Disclaimer: This article is for information and educational purposes only. It is not a recommendation to buy, sell or hold Axis Bank or any other security. Q2 FY27 figures are provisional and subject to review by the bank's auditors. Ratios marked as derived are our own calculations from reported data. Please do your own research or consult a SEBI-registered investment adviser before investing.
