Axis Bank advances rise 22.7% in Quarter2

Axis Bank Limited

reported 22.7% year-on-year growth in gross advances to ₹13.85 lakh crore as of September 30, 2026. Total deposits rose 20.7% to ₹14.52 lakh crore. The numbers put Axis among the stronger large private-bank growth stories this quarter. Gross advances increased 8.8% sequentially from ₹12.73 lakh crore. Total deposits rose 5.8% sequentially to ₹14.52 lakh crore. CASA deposits increased 10.6% year on year to ₹5.30 lakh crore, but term deposits grew much faster at 27.3%. Axis Bank mobilised $10.62 billion of FCNR(B) deposits under the RBI's swap facility. Excluding loans linked to these deposits, gross advances grew 18.8% year on year and deposits grew 17%. That makes the underlying growth rate more important than the headline number. I like the balance between credit and deposit growth. Even after removing the FCNR(B)-linked impact, loan growth remains healthy. The weaker point is the funding mix. Term deposits are growing considerably faster than CASA, which could eventually put pressure on funding costs. That is the number I would watch in the full Q2 results. Net interest margin, CASA ratio, slippages and whether underlying loan growth remains close to 18% to 19%. Stance: Positive on the business update, but the funding mix keeps me from becoming aggressively bullish. Disclosure: Holding: I do not hold a position in Axis Bank Limited. Not an investment advice.