Kotak, Axis, IndusInd Bank Shares, Latest Q2FY27 Analysis and October 2026 Update

Kotak Mahindra Bank, Axis Bank and IndusInd Bank shares rose on October 6, 2026, after the lenders reported provisional business updates for the quarter ended September 30. The updates showed loan and deposit growth, but the strength of CASA deposits—a relatively low-cost funding source—differed across the three banks and remains an important detail for investors.

During the session, Kotak Mahindra Bank shares climbed as much as 4% to ₹432.75, Axis Bank gained up to 1.7% to ₹1,244.40, and IndusInd Bank rose as much as 2.3% to ₹902.80. These are reported intraday highs, not closing prices. The numbers are provisional business indicators, not final quarterly earnings.

The Catalyst

The banks’ September-quarter updates pointed to healthy expansion in advances and deposits, supporting the positive share-price reaction. However, headline growth does not tell the whole story: a faster-growing deposit base can still carry a higher funding cost if term deposits grow more quickly than CASA.

The updates also included FCNR(B) deposits raised under the Reserve Bank of India’s swap facility. These deposits and related overseas lending are relevant to understanding reported balances, but investors should distinguish them from underlying domestic growth.

Financial Forensics

Bank	Advances at September 2026 end	Total deposits	CASA detail	Intraday share move on October 6
Kotak Mahindra Bank	₹5,77,094 crore; +24.7% YoY, +12.7% QoQ	₹6,51,491 crore; +23.2% YoY, +13.7% QoQ	₹2,49,105 crore; +11.3% YoY, +7.8% QoQ	Up as much as 4%
Axis Bank	Gross advances ₹13,84,600 crore; +22.7% YoY, +8.8% QoQ	₹14,52,100 crore; +20.7% YoY, +5.8% QoQ	₹5,29,600 crore; +10.6% YoY, +1.5% QoQ	Up as much as 1.7%
IndusInd Bank	Net advances ₹3,62,393 crore; +11.2% YoY, +11.1% QoQ	₹4,29,038 crore; +10.1% YoY, +3.4% QoQ	CASA ratio 28.0%, down from 29.4% in June 2026	Up as much as 2.3%

Source: Provisional Q2FY27 company business updates and reported intraday market data; figures may be subject to review. YoY means year-on-year; QoQ means quarter-on-quarter. For market and filing references, see NSE market data, BSE corporate announcements and the RBI website.

Kotak Mahindra Bank: Advances grew faster than deposits, while CASA rose 11.3% year-on-year, well below total deposit growth of 23.2%. The bank mobilised $5.78 billion in FCNR(B) deposits, equivalent to about ₹55,344 crore; its international branches extended $1.68 billion in related advances.

Axis Bank: Advances expanded 22.7% year-on-year, while deposit growth was 20.7%. The mix deserves attention: term deposits increased 27.3% year-on-year to ₹9,22,500 crore, compared with 10.6% growth in CASA deposits. Axis reported $10.62 billion in FCNR(B) deposits and about $4.57 billion in linked loans. Excluding the FCNR(B)-linked impact, advances grew 18.8% year-on-year and deposits 17%.

IndusInd Bank: Net advances rose 11.2% year-on-year, while deposits grew 10.1%. Retail and small-business deposits reached ₹2,14,504 crore, up 16.5% year-on-year. The main watchpoint is CASA: its ratio fell to 28% from 29.4% in June and 30.7% a year earlier. IndusInd mobilised $3.51 billion in FCNR(B) deposits; its GIFT City branch extended $1.73 billion in related loans.

Market Impact

Kotak’s intraday rise was the strongest, alongside the fastest reported year-on-year advances growth among these three banks. Axis also showed rapid loan growth, but its term-deposit mix may prompt scrutiny of funding costs. IndusInd’s share-price gain came despite a weaker CASA ratio, making deposit quality and subsequent margin commentary important to track.

A one-day move reflects market expectations as well as the numbers. Investors should compare these updates with the banks’ full quarterly results and watch how the lending growth translates into margins, asset quality and profitability.

Key Takeaways

• Kotak led the group on reported year-on-year advances and deposit growth, but CASA growth trailed total deposits.
• Axis delivered strong advances growth; term deposits grew much faster than CASA deposits.
• IndusInd’s retail and small-business deposits expanded, while its CASA ratio declined year-on-year and sequentially.
• All three banks reported FCNR(B) activity, so headline balance growth should be read alongside the details of the funding mix.

Moat and Investment Play

A bank’s moat is its durable advantage in areas such as customer relationships, distribution and low-cost funding. For this comparison, the deposit mix is a useful signal: investors can monitor whether each lender sustains growth without relying disproportionately on higher-cost funding.

FinScann Verdict

The Q2FY27 updates were positive on business scale, but not identical in quality: Kotak and Axis showed faster advances growth, while IndusInd’s falling CASA ratio stands out as a watchpoint. Before making portfolio decisions, compare these provisional figures with reported margins, deposit costs and asset-quality trends in the full results.

Q: Why did Kotak, Axis and IndusInd Bank shares rise on October 6, 2026?

A: Investors responded to the banks’ provisional September-quarter updates, which showed growth in advances and deposits. The reported intraday gains reached 4% for Kotak, 1.7% for Axis and 2.3% for IndusInd.

Q: Which bank reported the fastest advances growth?

A: Kotak reported 24.7% year-on-year growth in net advances. Axis reported 22.7% growth in gross advances, while IndusInd reported 11.2% growth in net advances.

Q: What does a falling CASA ratio mean for a bank?

A: CASA deposits are current and savings account balances. A lower CASA share can mean a bank relies more on other deposit types, which may affect funding costs; the eventual effect depends on the bank’s overall funding mix and pricing.

Q: Are these Q2FY27 figures final results?

A: No. They are provisional business updates for the quarter ended September 30, 2026. Investors should review the banks’ full quarterly disclosures for final financial performance and management commentary.

Disclaimer: For information only; not investment advice. Stock market investments carry risks. Please consult a SEBI-registered advisor before investing. FinScann assumes no liability for decisions made based on this report.