Q2 FY27 provisional business update: FCNR(B) mobilised, loans, deposits, CASA and liquidity

Q2 FY27 provisional business update (subject to audit).

Mon 5 Oct 2026

FCNR(B) deposits mobilised

Rs. 34,390 crore

Loans & Advances

Rs. 3,13,864 crore, +5.4% QoQ, +20.4% YoY (excl. leverage)

Total Deposits

Rs. 3,23,697 crore, +17.0% YoY

CASA ratio

51.3%

Average LCR

125%

The bank has shared key business updates for the quarter ended September 30, 2026. It states that the figures are provisional and subject to audit by its statutory auditors.

FCNR(B) deposits and the leverage effect

• During the quarter the bank mobilised Rs. 34,390 crore of FCNR(B) deposits.
• Of this, the IBU branch of the bank extended leverage of Rs. 24,885 crore to NRI customers.
• That leverage availed by customers was in turn booked as FCNR(B) deposits in the domestic balance sheet.
• Because the same amount sits on both the advances and the deposits side, the bank also presents a set of numbers that excludes this leverage.

Core numbers excluding the leverage

• Loans & Advances stood at Rs. 3,13,864 crore as on September 30, 2026, a growth of 5.4% over the previous quarter and 20.4% over the same date a year earlier.
• Total Deposits stood at Rs. 3,23,697 crore, a growth of 17.0% year on year.
• CASA ratio was 51.3%.

Overall numbers including FCNR(B)

• Gross Advances at the bank's overall level were Rs. 3,38,749 crore. This does not include credit substitutes such as bonds and PTCs.
• Total Deposits at the bank's overall level were Rs. 3,48,582 crore.

The bank explains that the difference between the two sets of figures is the FCNR(B) leverage that is booked both as a loan and as a deposit, which is why it separates the numbers for a clearer view of growth.

Deposit mix and liquidity

• Bulk Rupee Term Deposits as a percentage of Total Deposits reduced to 13.9% as on September 30, 2026. The bank says this has structurally strengthened the balance sheet.
• The average Liquidity Coverage Ratio for Q2 FY27 stood at 125%, higher than in the preceding quarter.
• The bank says that strong FCNR(B) deposit flows during the quarter and the resulting excess liquidity led it to slow down deposit growth and reduce Certificates of Deposit, in order to manage surplus liquidity.

What this update tells an investor

• Advances and deposits both grew, with the bank showing the numbers with and without the FCNR(B) leverage so the two effects can be seen separately.
• The CASA ratio, which reflects the share of lower-cost current and savings account deposits, is shown at 51.3% in the set that excludes the leverage.
• A smaller share of bulk term deposits and a higher average liquidity coverage ratio point to a change in the funding mix and liquidity position.
• The bank also states that the asset quality of the bank continues to remain strong.
• These are provisional figures for the quarter and are subject to audit, so they may be revised when the audited results are published.

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