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Axis Bank reported healthy business growth in Q2FY27

ICICIdirect Research 06 Oct 2026 DISCLAIMER

News: Axis Bank reported healthy business growth in Q2FY27, with gross advances rising to ₹13,84,600 crore, up 22.7% YoY (8.8% QoQ), while total deposits increased to ₹14,52,100 crore, up 20.7% YoY (5.8% QoQ). CASA deposits stood at ₹5,29,600 crore, up 10.6% YoY (1.5% QoQ), while term deposits grew 27.3% YoY (8.4% QoQ) to ₹9,22,500 crore. The bank mobilised ₹1,01,800 crore of FCNR(B) deposits during the quarter; excluding the corresponding overseas leverage, advances grew 18.8% YoY (5.3% QoQ) and deposits grew 17.0% YoY (2.6% QoQ).

View: Underlying business momentum remained healthy even after adjusting for FCNR(B)-related flows, with credit growth continuing to stay ahead of system levels. However, advances outpaced deposits sequentially on a normalised basis and CASA accretion remained relatively modest, resulting in some increase in balance-sheet tightness. Strong term-deposit mobilisation provides funding support, though the evolving liability mix and margin trajectory remain key monitorables.

Impact: Positive

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