Axis Bank Shares Rise 2% After Q1 Business Update, Pare Gains; Advances and Deposits Grow Over 18%

Mumbai, July 6: Axis Bank share price rose as much as 2% in early deals on Monday after the private sector lender reported strong growth in loans and deposits for the June quarter, although the stock gave up a large part of its gains as investors booked profits.

The stock rose in morning trade before paring gains to trade about 0.5% higher at Rs 1,348. The positive reaction came after Axis Bank’s provisional business update showed healthy double-digit growth across key operating metrics, reinforcing confidence in the bank’s lending momentum ahead of its June quarter earnings.

Advances rise nearly 19%

Axis Bank’s gross advances stood at ₹12.73 lakh crore as of June 30, up 18.8% from a year earlier. On a sequential basis, advances increased 2.3%, reflecting continued strength in credit demand across segments.

The steady expansion in the loan book comes amid robust demand from retail, SME and corporate borrowers, even as banks continue to compete aggressively for quality credit growth.
Deposits maintain strong momentum

The lender’s total deposits rose 18.2% year-on-year to ₹13.73 lakh crore, while sequential growth stood at 2.8%. The healthy increase suggests the bank has been able to keep pace with credit growth by mobilising deposits, a key area of focus for investors in the current banking environment.

Current and savings account (CASA) deposits grew 22.8% from a year ago. However, on a quarter-on-quarter basis, CASA deposits declined 1.4%, indicating customers continued to shift towards higher-yielding fixed deposits. The bank’s CASA ratio stood at 40%, broadly in line with the previous quarter.

Focus shifts to Q1 earnings

The business update offers a snapshot of Axis Bank’s operating performance but does not include financial metrics such as net profit, net interest income or asset quality.

Investors will now await the bank’s June quarter earnings later this month for details on margins, provisions, asset quality and management commentary on loan growth and funding costs. Despite paring early gains, the stock remained in positive territory as investors assessed the lender’s healthy balance sheet growth and its ability to sustain business momentum in an increasingly competitive banking landscape.

Source: https://www.nseindia.com/get-quote/equity/AXISBANK/Axis-Bank-Limited