Axis Bank advances rise 23% in Q2 for FY27

Research Analyst: UJVIN NEVATIA (PROPRIETOR: NEVAT INVESTMENTS) | SEBI Registration No.: INH100009628 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 increased 20.7% to ₹14.52 lakh crore. What happened? Gross advances increased 8.8% sequentially from ₹12.73 lakh crore in June 2026. Deposits grew 5.8% from ₹13.73 lakh crore. CASA deposits increased 10.6% year on year to ₹5.30 lakh crore, while term deposits grew 27.3% to ₹9.23 lakh crore. Axis Bank mobilised $10.62 billion of FCNR(B) deposits through the RBI's swap facility. After excluding related overseas loans, advances grew 18.8% year on year and 5.3% sequentially. Why does it matter? The headline growth shows strong balance-sheet expansion, but the FCNR(B) flows make the reported numbers less representative of underlying business momentum. CASA growth was also slower than overall deposit growth, which means the bank continues to rely more on term deposits to fund its expansion. My view The adjusted growth remains healthy, but the quality of growth is more important than the headline numbers. The bank needs to balance credit expansion with stable low-cost deposits. The large FCNR(B) mobilisation can support liquidity, but it is not the same as recurring domestic deposit mobilisation. What I am watching next I would track loan growth excluding FCNR(B)-related lending, CASA growth, cost of deposits and net interest margin. Asset quality will also be important to assess whether faster credit growth is being accompanied by disciplined underwriting. No Recommendations Source: Economic Times Disclosure: I, my entity, associates or relatives do not have any holding, position or other material interest in Axis Bank Limited.