Shares of several major Indian banks experienced significant movements today following the release of their September quarter business updates. Kotak Mahindra Bank, Axis Bank, and IndusInd Bank saw their stock prices jump, with Kotak Mahindra leading the gains on the Nifty Bank index. Conversely, IDFC First Bank shares declined after its own quarterly disclosures.
Kotak Mahindra Bank Leads Gains
Kotak Mahindra Bank Ltd. reported strong growth, with net advances increasing by 24.7% year-on-year (YoY) and 12.7% quarter-on-quarter (QoQ) to Rs 5.77 lakh crore. This performance significantly surpassed MOFSL's estimated growth of 19.4% YoY and 7.9% QoQ. Deposits also grew robustly by 23.2% YoY and 13.7% QoQ to Rs 6.51 lakh crore, beating estimates of 17.5% YoY and 8.4% QoQ.
- CASA deposits saw 7.8% QoQ and 11.3% YoY growth, bringing the CASA ratio down to 38.2% from 40.3% in Q1 FY27.
- FCNR(B) deposits stood at $5.78 billion (Rs 55,000 crore).
- The credit-deposit ratio slightly declined to 88.6% from 89.4% in the previous quarter.
Axis Bank's Advances Outpace Estimates
Axis Bank Ltd. recorded gross advances growth of 22.7% YoY and 8.8% QoQ, reaching Rs 13.85 lakh crore, which was above MOFSL's estimates of 19% YoY and 5.4% QoQ. Total deposits, however, grew 20.7% YoY and 5.8% QoQ to Rs 14.52 lakh crore, falling slightly below MOFSL's projected 22.2% YoY and 7.1% QoQ.
- The bank mobilized $10.6 billion (Rs 1 lakh crore) in FCNR(B) deposits.
- CASA deposits increased by 10.6% YoY and 1.5% QoQ, leading to a decline in the CASA mix to 36.5% from 38% in Q1 FY27.
- The credit-deposit ratio on gross advances rose to 95.4% from 92.7% in the first quarter of FY27.
IndusInd Bank Reports Strong Advance Growth
IndusInd Bank Ltd. posted net advances growth of 11.1% QoQ and 11.2% YoY, reaching Rs 3.62 lakh crore, outperforming MOFSL's estimates of 5.7% QoQ and 5.9% YoY. Deposits increased by 3.4% QoQ and 10.1% YoY to Rs 4.29 lakh crore, though this was below MOFSL's estimates of 6.8% QoQ and 13.7% YoY.
- CASA declined to 28% from 29.4% in Q1 FY27.
- FCNR(B) mobilization stood at $3.51 billion (approximately Rs 33,600 crore).
- Retail and small business customer deposits grew to Rs 2.15 lakh crore.
IDFC First Bank Sees Shares Dip Despite Loan Growth
IDFC First Bank Ltd. reported significant growth in loans and advances, up 29.9% YoY and 13.7% QoQ to Rs 3.39 lakh crore, including FCNR(B) of Rs 34,400 crore. This exceeded MOFSL's estimate of 27.3% YoY and 11.1% QoQ. Total deposits, including FCNR(B), grew 25.9% YoY and 11.8% QoQ to Rs 3.49 lakh crore, also above estimates.
- The CASA ratio stood at 47.6% (including FCNR(B)).
- Strong FCNR(B) mobilization led to a decline in bulk term deposits as a percentage of total deposits to 13.9% from 17.1% in Q1 FY27.
- The credit-deposit ratio increased to approximately 97% from 95.5% in the previous quarter, driven by strong credit growth.
The varied market reaction to these business updates highlights how investors are assessing each bank's performance against analyst expectations and broader market trends.