

Axis keeps all options open for infusing capital in non-bank arm Axis Finance
Subscribe to enjoy similar stories. Axis Bank Ltd is still evaluating multiple options to infuse capital into its consumer lending subsidiary Axis Finance, with the process “very much ongoing", according to a top executive. “Nothing is off the table" when it comes to shoring up capital at Axis Finance, said executive director Subrat Mohanty in the post-earnings conference call of the bank on Monday.
The bank reiterated that it remains committed to ensuring capital is not a constraint on the subsidiary’s growth and that it is reassessing its options in light of recent regulatory guidance and changes to business guidelines. Last week, Reuters reported that a potential stake sale may have been put on hold. Axis Bank had initiated the stake sale process last year and had even appointed merchant bankers after the Reserve Bank of India’s 2024 proposed draft rules barred banks from engaging in overlapping business with their subsidiaries.
However, the central bank withdrew the draft circular last month, allowing banks to continue with overlapping non-bank lending operations through their subsidiaries. A stake sale remains one of several possibilities, Mohanty said, responding to media queries. Other options include a direct capital infusion from the bank, bringing in a strategic partner to dilute equity, or having the subsidiary raise capital on its own through deleveraging and balance-sheet optimization.
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