The numbers are in, and they’re hefty. Axis Bank’s gross advances hit ₹13.85 lakh crore by the end of Q2 FY27, marking a 22.7% surge from the same period last year and an 8.8% jump from June. Total deposits followed suit, climbing 20.7% YoY to ₹14.52 lakh crore. The balance sheet is expanding fast.
But there’s a twist in the data. A significant chunk of this growth stems from the Reserve Bank of India’s FCNR deposit swap facility. The bank mobilized $10.62 billion in FCNR deposits during the quarter. Stripping out the impact of international branch loans and standby letters of credit tied to these swaps, core gross advances would have grown 18.8% YoY. Deposits, excluding these flows, would have risen 17% YoY. The underlying growth is solid, but the headline number is inflated by the swap mechanism.
CASA remains the backbone of the funding mix. Current Account Savings Account deposits stood at ₹5.30 lakh crore, up 10.6% YoY. Term deposits, however, are growing faster, up 27.3% YoY to ₹9.23 lakh crore. This shift matters for the bank’s cost of funds. Quarterly average total deposits were ₹13.96 lakh crore, a 22.5% YoY increase. The funding base is deepening, but the mix is tilting toward higher-cost term deposits.
Market reaction was measured. Axis Bank shares ended the session at ₹1,223.95 on the BSE, gaining ₹9.95 or 0.82%. Traders likely viewed the update as positive, but the reliance on FCNR swaps for a portion of the growth may have tempered enthusiasm. The stock is trading on expectations of sustained credit growth, and this update confirms the momentum, albeit with some structural nuances.
What’s next? Axis Bank has flagged that these figures are provisional and will undergo a limited review by statutory auditors before the official Q2 results release. The full earnings report will provide clarity on net interest income, credit costs, and provisioning. For now, the balance sheet is growing at a double-digit clip, and the bank is positioning itself to leverage the FCNR facility to optimize its funding structure. Watch the official numbers closely.