Axis Bank’s gross advances rise 23% YoY to Rs 13.85 lakh crore in Q2, deposits up 21%

Axis Bank said gross advances reached Rs 13.85 lakh crore at September 30, 2026, an increase of 22.7% from a year earlier in its second quarter. Deposits rose 20.7% to Rs 14.521 lakh crore over the same period, while CASA deposits expanded 10.6%. The bank indicated that FCNR(B) flows had a significant bearing on both deposit and loan growth. Axis Bank shares were quoted at Rs 1,239.80, up 1.4% for the day, though they were down 2.0% over one month and 4.3% over three months, and stood 12% below their 52 week high.

For Indian banks, simultaneous growth in loans and deposits may signal firm credit demand without an immediate funding mismatch. Yet the slower rise in CASA deposits and the strong influence of FCNR(B) flows could make the quality and persistence of funding more important than headline expansion alone. Axis Bank is the direct listed exposure, while the broader banks sector was down 3.5% over one month and 4.3% over three months. Detailed results showing broad loan growth, sustained domestic deposits, stable margins and contained credit costs would support this reading. Concentrated foreign currency flows, higher funding costs or weaker asset quality would undermine it.