Shares of leading private-sector lenders Kotak Mahindra Bank, Axis Bank and IndusInd Bank witnessed strong momentum on Tuesday, October 6, after the banks released their provisional business updates for the September quarter. The updates showed healthy growth in advances and deposits across the three lenders, although differences in deposit composition and CASA growth remained key factors for investors to assess.
Kotak Mahindra Bank shares jumped as much as 4% to the day’s high of ₹432.75 on the BSE, while IndusInd Bank share price rose as much as 2.3% to its intra-day high of ₹902.80. Moreover, Axis Bank gained 1.7% to ₹1,244.40.
Let’s take a look at their Q2 business updates and stock performances –
Axis Bank: Advances rise 22.7%, but CASA growth trails deposits
Axis Bank‘s provisional numbers showed that its loan book expanded at a faster pace than the overall banking system. Gross advances reached ₹13,84,600 crore, marking a 22.7% increase from a year earlier and an 8.8% rise from the previous quarter.
The bank’s deposit base stood at ₹14,52,100 crore, up 20.7% year-on-year and 5.8% sequentially. However, the composition of this growth is likely to attract attention, as term deposits rose much faster than CASA deposits. Term deposits increased 27.3% year-on-year and 8.4% quarter-on-quarter to ₹9,22,500 crore. CASA deposits, meanwhile, reached ₹5,29,600 crore, representing growth of 10.6% year-on-year and 1.5% sequentially.
Axis Bank also reported a sizeable increase in FCNR(B) deposits, which stood at $10.62 billion, equivalent to around ₹1.02 lakh crore. Its international branches had extended approximately $4.57 billion, or ₹43,800 crore, of loans linked to these deposits. Even after stripping out FCNR(B)-linked loans, advances grew 18.8% year-on-year and 5.3% quarter-on-quarter. Deposits, excluding the impact of these deposits, increased 17% year-on-year and 2.6% sequentially.
Axis Bank stock performance: The stock’s 52-week high is ₹1,418.30, reached in February 2026, while its 52-week low is ₹1,150.50, touched in April 2026. The stock has declined 2.5% over one month, more than 7% over three months and 0.5% over six months. It has gained more than 2% in the past year.
Kotak Mahindra Bank: Advances jump 24.7%, stock gains 4%
Kotak Mahindra Bank delivered an even stronger quarter on the loan-growth front. Its advances expanded 24.7% year-on-year and 12.7% compared with the previous quarter.
Deposits also recorded strong growth, rising 23.2% year-on-year and 13.7% quarter-on-quarter. However, CASA growth lagged the overall deposit increase. CASA deposits rose 11.3% year-on-year, indicating that non-CASA sources contributed more significantly to the overall expansion in deposits.
Another notable feature of the quarter was Kotak’s mobilisation of FCNR(B) deposits. The bank raised $5.78 billion under the RBI swap facility, equivalent to around ₹55,344 crore. Its international branches subsequently extended $1.68 billion, or approximately ₹16,110 crore, in advances linked to these FCNR(B) deposits.
Kotak Mahindra Bank stock performance: The stock is currently just over 4% below its 52-week high of ₹452.98, recorded in October last year. Its 52-week low stands at ₹354.40, touched in April 2026.
The stock has gained 2% in one month, 13% in three months and 20% in six months. However, its one-year gain remains relatively modest at just 1%.
IndusInd Bank: Advances grow 11.2%, CASA ratio falls
IndusInd Bank‘s Q2FY27 numbers showed net advances at ₹3,62,393 crore, representing growth of 11.2% year-on-year and 11.1% from the previous quarter.
The bank’s total deposits reached ₹4,29,038 crore, up 10.1% year-on-year and 3.4% sequentially. Within the deposit book, retail and small-business deposits continued to grow at a faster pace. This segment rose 16.5% year-on-year and 10.8% quarter-on-quarter to ₹2,14,504 crore.
However, the deposit mix presented a weaker spot. IndusInd Bank’s CASA ratio fell to 28% from 29.4% in the previous quarter and 30.7% a year earlier. That translates into a decline of 140 basis points sequentially and 270 basis points year-on-year.
The bank also mobilised $3.51 billion in FCNR(B) deposits, worth around ₹33,627 crore. Its GIFT City branch extended $1.73 billion, or approximately ₹16,564 crore, in FCNR(B)-linked loans. In addition, standby letters of credit worth another $0.50 billion remained outstanding.
IndusInd Bank stock performance: The stock’s 52-week high stands at ₹1,077.80, reached in July 2026, while its 52-week low is ₹725.90, touched in October 2025.
The stock has fallen around 11% over both one and three months. However, it has gained 15% over six months and 22% over the past year.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
