Axis Bank, Kotak Mahindra Bank, IDFC First Bank and IndusInd Bank reported healthy sequential momentum, although the sharp rise in FCNR(B) deposits at some lenders and slower CASA growth could influence how investors read the headline numbers.
Axis Bank
Axis Bank reported strong provisional business growth for the September quarter, with gross advances rising 22.7% year-on-year and 8.8% quarter-on-quarter to ₹13,84,600 crore.
Total deposits increased 20.7% year-on-year and 5.8% sequentially to ₹14,52,100 crore. However, deposit growth was driven primarily by term deposits, which rose 27.3% year-on-year and 8.4% quarter-on-quarter to ₹9,22,500 crore.
CASA deposits stood at ₹5,29,600 crore, up 10.6% year-on-year and 1.5% quarter-on-quarter. This was significantly slower than the overall deposit growth.
FCNR(B) deposits stood at $10.62 billion, or around ₹1.02 lakh crore, while international branches extended around $4.57 billion, or ₹43,800 crore, in loans linked to these deposits.
Excluding FCNR(B)-linked loans, gross advances still grew 18.8% year-on-year and 5.3% quarter-on-quarter, while deposits increased 17% year-on-year and 2.6% sequentially.
Kotak Mahindra Bank
Kotak Mahindra Bank also reported strong provisional Q2 business numbers, with advances rising 24.7% year-on-year and 12.7% quarter-on-quarter.
Deposits grew 23.2% year-on-year and 13.7% sequentially, although the deposit mix remained a key area to watch. CASA deposits increased 11.3% year-on-year, significantly slower than the 23.2% growth in total deposits, pointing to a greater contribution from non-CASA funding.
The bank mobilised $5.78 billion, or around ₹55,344 crore, in FCNR(B) deposits under the RBI swap facility. Its international branches extended $1.68 billion, or around ₹16,110 crore, in FCNR(B)-linked advances.
IDFC First Bank
IDFC First Bank reported 20.4% year-on-year growth in loans and advances at ₹3,14,000 crore, while total deposits increased 17% to ₹3,24,000 crore.
Customer deposits rose 17.6% to ₹3,17,000 crore. The bank’s CASA ratio improved to 51.3% from 50.1% a year ago and 50.8% in the previous quarter.
The bank mobilised ₹34,390 crore of FCNR(B) deposits during the quarter, of which ₹24,885 crore was leveraged through its IBU branch.
A positive takeaway from the update was the improvement in the deposit mix. Bulk rupee term deposits declined to 13.9% of total deposits from 17.1% in the previous quarter and 18.2% a year ago.
The bank’s liquidity position also improved, with the liquidity coverage ratio rising to 125% from 116% in the previous quarter.
IndusInd Bank
IndusInd Bank reported net advances of ₹3,62,393 crore for Q2FY27, up 11.2% year-on-year and 11.1% quarter-on-quarter.
Deposits stood at ₹4,29,038 crore, registering 10.1% year-on-year and 3.4% sequential growth.
Retail and small-business deposits were stronger than the overall deposit book, rising 16.5% year-on-year and 10.8% quarter-on-quarter to ₹2,14,504 crore.
However, CASA remained a key area of concern. The CASA ratio declined to 28% from 29.4% in the previous quarter and 30.7% a year ago, marking a 140-basis-point sequential decline and a 270-basis-point year-on-year decline.
IndusInd Bank mobilised $3.51 billion, or around ₹33,627 crore, in FCNR(B) deposits. Its GIFT City branch extended $1.73 billion, or around ₹16,564 crore, in FCNR(B)-linked loans, while another $0.50 billion of standby letters of credit were outstanding.