Axis Bank: strong credit growth keeps stock in focus

Axis Bank reported 22.7% YoY growth in gross advances to ₹13.85 lakh crore as of September 30, 2026. Total deposits also grew 20.7% YoY to ₹14.52 lakh crore, giving investors a strong first look at the bank’s Q2 operating performance. The sequential numbers are also encouraging. Gross advances increased 8.8% during the quarter, while deposits continued to expand. CASA deposits stood at ₹5.30 lakh crore, growing 10.6% YoY. However, CASA growth is still slower than overall deposit growth, so funding mix and cost of deposits will be important when the full Q2 results are announced. There is another number should not be ignored Axis Bank mobilised around $10.62 billion through FCNR(B) deposits under the RBI facility. After excluding specified advances linked to these deposits, underlying gross advance growth was around 18.8% YoY instead of the reported 22.7%. Private banking stocks were strong today, with Axis Bank among the stocks gaining after the Q2 business updates. The Nifty Private Bank index also moved higher during the session. For traders, I would watch whether Axis Bank can sustain the post-update strength rather than chasing a sharp opening move. For investors, the bigger triggers from the upcoming results will be NIM, asset quality, credit costs, CASA trends and management commentary on loan growth. My view: Positive on the operating update, but the complete Q2 results will decide whether the current optimism is justified. Disclosure: I do not hold Axis Bank shares as of this post. This content is for educational and informational purposes only and is not a recommendation to buy or sell.