Axis Bank: Business Momentum Remains Strong
Jan 6, 2026
AdvisorAlpha
Summary
Axis Bank reported healthy business momentum, with both loans and deposits coming in 1–2% ahead of consensus expectations.
Key Performance Highlights
Growth vs Expectations
Gross loans were 1.4% ahead of consensus estimates.
Deposits were 1.4% ahead of consensus estimates.
CASA deposits were 2.6% ahead of consensus expectations.
Advances & Deposits
Gross advances grew 14.1% YoY, the highest growth recorded over the last six quarters.
Deposits increased 4.8% QoQ / 15.0% YoY, while average deposits grew 5.1% QoQ / 12.3% YoY.
CASA & Funding Mix
CASA deposits grew 2.9% QoQ / 13.9% YoY.
On a quarterly average basis, CASA growth improved to 8.9% YoY (vs 5.2% YoY in Q2), which should support cost of funds and margins.
CASA ratio declined 69 bps QoQ to 39.1%, but remained better than expectations.
Balance Sheet Metrics
Loan-to-deposit ratio declined 92 bps QoQ to 92.8%, indicating improved balance sheet comfort.
Our Take
We expect the healthy growth momentum to continue, supported by improving deposit traction and a stabilising funding mix. Net interest margins appear to be bottoming out from Q3 FY26 onwards. With strong growth and improving return ratios, we maintain a positive view on Axis Bank.
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