Loans Surge 22.7% YoY to ₹13,846 Billion as Deposits Top ₹14.5 Lakh Crore
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India's prominent private-sector lender Axis Bank delivered an impressive performance for the second quarter of financial year 2026-27 (Q2 FY27), clocking broad-based momentum across both lending books and core retail liability franchises. In an official provisional business disclosure submitted to stock exchanges on Monday, October 5, 2026, the Mumbai-headquartered bank reported that its gross advances surged 22.7% year-on-year to ₹13,846 billion as of September 30, 2026, advancing steadily from ₹11,284 billion recorded during the corresponding period of the previous fiscal. Total deposit mobilization kept pace with credit expansion, expanding 20.7% year-on-year to touch ₹14,521 billion, supported by strong term deposit inflows and strategic foreign currency deposit mobilization under Reserve Bank of India (RBI) swap facilities.
Credit Growth Accelerates: Gross Advances Climb 8.8% Sequentially to ₹13,846 Billion
The bank’s loan book sustained robust momentum across retail and commercial lending segments:
Year-on-Year Expansion: Gross advances expanded by 22.7% YoY, reaching ₹13,846 billion compared to ₹11,284 billion as of September 30, 2025.
Quarter-on-Quarter Upswing: On a sequential basis, loan disbursements and corporate credit lines grew 8.8% QoQ over the June 2026 quarter levels.
Underlying Core Lending Growth: Factoring out foreign-branch leverage lines extended for special deposit schemes, the bank’s baseline domestic gross advances recorded healthy organic expansion of 18.8% YoY and 5.3% QoQ, reflecting sustained domestic capital expenditure and consumer credit appetite.
Liability Franchise Strengthens: Total Deposits Up 20.7% as Term Inflows Surge 27.3%
Deposit mobilization demonstrated steady retail resilience despite heightened competition across the banking sector:
Total Deposit Trajectory: Cumulative deposits climbed to ₹14,521 billion, marking a robust gain of 20.7% YoY and an increase of 5.8% QoQ compared to June 2026.
Term Deposits Outperform: Fixed and term deposits served as the primary growth engine, expanding 27.3% YoY and 8.4% QoQ to ₹9,225 billion.
CASA Deposits Advance: Low-cost Current Account and Savings Account (CASA) balances reached ₹5,296 billion, rising 10.6% YoY and 1.5% sequentially.
Average Balance Metrics: The quarterly average balance (QAB) of total deposits touched ₹13,964 billion (up 22.5% YoY and 7% QoQ), while average CASA balances rose 13.9% YoY to ₹4,943 billion, and average term deposits jumped 27.8% YoY to ₹9,021 billion.
Strategic Boost from RBI FCNR(B) Swap Window: $10.62 Billion Inflow Mobilized
The bank leveraged regulatory foreign currency mechanisms to optimize funding costs and reshape liability duration:
Massive FCNR(B) Mobilization: Capitalizing on the special foreign currency non-resident bank deposit swap window announced by the Reserve Bank of India, Axis Bank mobilized $10.62 billion (approximately ₹1,018 billion) up to September 30, 2026.
Retiring Costly Wholesale Deposits: Management utilized a portion of these inflows to strategically pare down non-retail bulk term deposits, which declined 8.6% quarter-on-quarter, enhancing margins.
Leverage Facilities via Overseas Branches: The bank's international branch network extended $4.57 billion (roughly ₹438 billion) in leverage facilities to enable eligible non-resident clients to subscribe to these deposits.
Adjusted Organic Deposit Expansion: Excluding these specific transaction-linked flows, underlying total deposits registered steady organic growth of 17% YoY and 2.6% QoQ.
Statutory Review Note: The bank clarified in its regulatory filing that all reported business numbers represent provisional estimates and remain subject to a limited review by statutory auditors ahead of full Q2 financial results.
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