Jefferies names Axis Bank stock a top pick on rate outlook

Published on 10/08/2026 at 11:10 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Jefferies projects 75-100 basis points of hikes for Axis Bank stock. Q2 advances rose 22.70 percent and deposits 20.70 percent year over year.

Axis Bank, INE238A01034, Illustration mit AI erstellt.

Axis Bank (ISIN INE238A01034) was named a top pick by Jefferies on October 8, 2026, as the brokerage projected 75-100 basis points of further rate hikes. NDTV Profit reported that Axis Bank sits in Jefferies' mid-range beneficiary group because of its exposure to benchmark-linked loans and relatively higher loan-to-deposit ratios.

Rate outlook meets balance-sheet growth

The rate thesis arrives as Axis Bank's provisional second-quarter business update showed gross advances of INR 13.85 trillion at September 30, 2026, up 22.70 percent year over year and 8.80 percent from June 30. Ventura Securities said the underlying advance growth was 18.80 percent year over year after excluding loans linked to foreign-currency deposits.

Total deposits reached INR 14.52 trillion, a 20.70 percent year-over-year increase, while term deposits climbed 27.30 percent to INR 9.23 trillion. CASA deposits rose 10.60 percent to INR 5.30 trillion, creating a sharper funding-mix question for the detailed quarterly release.

Deposits add a funding test

Upstox reported that Axis Bank mobilized INR 1.02 trillion through FCNR(B) deposits as of September 30, 2026. Excluding the related international-branch loans, advances would have grown 18.80 percent year over year and deposits 17.00 percent, showing why headline growth and core growth need to be read separately.

The next detailed results are scheduled for October 17, 2026, according to NSE India. Net interest income, margin, provisions and asset quality will determine how much of the provisional balance-sheet expansion translates into earnings.

Stock range frames the setup

NSE India lists Axis Bank on the NSE under ticker AXISBANK and in the Nifty 50. The exchange showed a market capitalization of INR 3.9 trillion on October 7, 2026, with a 52-week range of INR 1,150.30 to INR 1,418.30, while the latest reported close was INR 1,242.50.