Summary:
Axis Bank reported strong Q2 FY27 business growth, with gross advances rising 22.7% and total deposits increasing 20.7% year-on-year. Term deposits grew 27.3%, while FCNR(B) flows materially influenced the reported numbers, making adjusted loan and deposit growth important ahead of detailed results.
Axis Bank Ltd reported strong growth in its provisional Q2FY27 business update, with gross advances rising 22.7% YoY to ₹13.85 Lakh Crore as of September 30, 2026. Total deposits increased 20.7% YoY to ₹14.52 Lakh Crore, while CASA deposits grew at a comparatively slower pace of 10.6%.
The September-quarter numbers also include a sizeable contribution from FCNR(B) deposits mobilised under the Reserve Bank of India’s swap facility, making the underlying growth numbers important to track separately.
Gross Advances Rise 22.7% YoY
Axis Bank’s gross advances stood at ₹13.846 Lakh Crore at the end of Q2FY27, compared with ₹11.284 Lakh Crore a year earlier.
On a sequential basis, advances increased 8.8% QoQ from ₹12.729 Lakh Crore as of June 30, 2026.
However, part of this growth was linked to loans provided by the bank’s international branches against FCNR(B) deposits. These loans amounted to $4.57 bn, or around ₹43,800 Crore, as of September 30.
Excluding these loans, gross advances would have grown 18.8% YoY and 5.3% QoQ, indicating that underlying credit growth remained healthy even after adjusting for the FCNR(B)-related impact.
Q2FY27 Key Business Numbers
| Particulars | September 30, 2026 | Growth |
| Gross Advances | ₹13.846 Lakh Crore | +22.7% YoY |
| Total Deposits | ₹14.521 Lakh Crore | +20.7% YoY |
| CASA Deposits | ₹5.296 Lakh Crore | +10.6% YoY |
| Term Deposits | ₹9.225 Lakh Crore | +27.3% YoY |
| FCNR(B) Deposits | ~$10.62 bn | ~₹1.018 Lakh Crore |
Deposits Grow 20.7%, Term Deposits Lead
Axis Bank’s total deposits increased to ₹14.521 Lakh Crore, up from ₹12.035 Lakh Crore in Q2FY26. Deposits were also 5.8% higher QoQ compared with ₹13.729 Lakh Crore at the end of June 2026.
CASA deposits, which consist of current account and savings account balances, stood at ₹5.296 Lakh Crore, up 10.6% YoY and 1.5% QoQ.
Term deposits expanded at a much faster pace, rising 27.3% YoY to ₹9.225 Lakh Crore from ₹7.245 Lakh Crore. Sequentially, term deposits increased 8.4%.
The stronger growth in term deposits compared with CASA means the bank’s deposit mix, funding costs and net interest margin will be important numbers when the detailed quarterly results are released.
FCNR(B) Flows Have a Significant Impact
Axis Bank mobilised $10.62 bn, equivalent to approximately ₹1.018 Lakh Crore, through FCNR(B) deposits under the RBI swap facility.
Adjusted for these deposits, total deposits would have grown 17% YoY and 2.6% QoQ, while term deposits would have risen 21.3% YoY and 3.2% QoQ.
The bank also had standby letters of credit worth $4.69 bn, or around ₹44,900 Crore, issued in favour of other banks against loans backed by FCNR(B) deposits.
This distinction is important because the headline balance-sheet growth partly reflects these large foreign-currency flows.
What to Watch in the Full Q2FY27 Results
The provisional update indicates that Axis Bank maintained strong loan and deposit momentum during the September quarter. Private-sector banks have generally reported faster balance-sheet growth than several public-sector peers in Q2FY27, although deposit mobilisation and funding costs remain key sector-wide variables.
The next set of numbers to track will be net interest income, NIM, gross & net NPA ratios, slippages, provisions and credit costs. In Q2FY26, Axis Bank had also recognised an additional one-time standard asset provision of ₹1,231 Crore, making the year-on-year profitability comparison particularly relevant.
The latest business update shows robust headline growth, but the detailed results will reveal how much of that expansion translated into core income growth and whether asset quality remained stable.
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