HDFC Bank, Axis Bank Q2 updates: $22 billion of FCNR(B) deposits from RBI’s swap window lift deposit growth

Why this matters this week

Bank balance sheets are where an RBI decision turns into EMIs and deposit rates. These September-quarter numbers land while the Monetary Policy Committee is still meeting. The FCNR(B) swap window — an RBI facility under which banks could swap foreign-currency deposits from non-residents with the central bank — shows up clearly in both filings.

HDFC Bank — what the filing shows

• Advances under management (grossed up for participation certificates, rediscounted bills and securitisation) were about ₹33.08 lakh crore at period end, +15.3% YoY; the quarterly average was ₹31.87 lakh crore, +14.0%.
• Gross advances rose about 5.2% in the quarter, from ₹30.61 lakh crore at 30 June to ₹32.20 lakh crore (Capital Chronicle arithmetic from the bank’s table).
• Deposit mix: time deposits grew 22.8% but CASA only 10.8%, so CASA fell to about 31.6% of deposits from about 33.9% a year earlier (Capital Chronicle arithmetic).
• Alongside the $11.5 billion FCNR(B) haul, HDFC Bank issued $2.5 billion of US-dollar senior unsecured bonds during June–August, and standby letters of credit to other banks against these deposits total $3.1 billion.

Axis Bank — what the filing shows

• Faster headline growth: gross advances +22.7% YoY and +8.8% in a single quarter.
• The adjustment matters: Axis says its international branches lent $4.57 billion (≈ ₹43,800 crore) to customers as leverage for placing these deposits. Strip those out and advances grew 18.8% YoY / 5.3% QoQ, deposits 17.0% / 2.6%.
• Replacing bulk deposits: part of the inflow was used to cut non-retail term deposits, which fell 8.6% in the quarter.
• CASA share slipped to about 36.5% from about 39.8% a year earlier (Capital Chronicle arithmetic).
• Standby letters of credit issued to other banks against FCNR(B) loans: $4.69 billion.

What it means for savers and borrowers

• Strong term-deposit growth and a falling CASA share usually mean higher funding costs for banks — watch net interest margins when full results arrive.
• These are provisional numbers; both banks say the figures are subject to limited review by statutory auditors.

What to watch

1. RBI MPC decision and any liquidity measures — Wed 7 Oct
2. Full Q2 FY27 results and margins from both banks later this month
3. Whether other lenders disclose similar FCNR(B) inflows in their quarterly updates

Sources

• HDFC Bank Limited, intimation dated 4 Oct 2026 (Form 6-K, Exhibit 99, filed with the US SEC on 5 Oct 2026) — advances, deposits, CASA and time deposits as of 30 Sep 2026; FCNR(B) swap facility introduced 8 Jun 2026 and open till 31 Aug 2026; USD 11.5 billion FCNR(B), USD 5.7 billion loans, USD 3.1 billion SBLCs, USD 2.5 billion bonds — https://www.sec.gov/Archives/edgar/data/1144967/000119312526413040/d342028dex99.htm
• Axis Bank Limited, Regulation 30 intimation to NSE and BSE dated 5 Oct 2026 (ref. AXIS/CO/CS/449/2026-27), as filed with the London Stock Exchange — gross advances, deposits, CASA, term deposits; USD 10.62 billion FCNR(B); USD 4.57 billion leverage loans; growth excluding those loans; non-retail term deposits −8.6% QoQ; USD 4.69 billion SBLCs — https://www.rns-pdf.londonstockexchange.com/rns/6631X_1-2026-10-5.pdf
• RBI MPC meeting schedule 2026-27 (Oct 5–7) — https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=62422

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