Axis Bank has received approval from the Reserve Bank of India to infuse ₹1,500 crore into its wholly owned subsidiary Axis Finance, strengthening its non-banking financial arm.
The bank announced that its board has cleared the capital infusion, which will be carried out in one or more tranches through a rights issue by March 31, 2027. The decision follows RBI’s approval communicated earlier this month, enabling the lender to proceed with direct funding.
This move comes after a key regulatory shift. Earlier restrictions under RBI’s 2024 guidelines had prevented Axis Bank from injecting fresh capital into Axis Finance, forcing the lender to consider alternative strategies such as stake dilution and onboarding external investors. With the revised norms now allowing multiple entities within a banking group to operate in similar business segments, the bank opted for direct capital support.
Axis Bank stated that the transaction has been approved by its acquisitions, divestments, and merger committee and qualifies as a related party transaction.
The capital infusion is expected to support Axis Finance’s growth across retail, MSME, and wholesale lending segments. The NBFC has a diversified portfolio, including corporate loans, real estate financing, loans against property, and small business lending, with a strong footprint in non-metro markets.
As of the third quarter of FY 2025-26, Axis Finance reported assets under management of around ₹45,000 crore, with a net profit of ₹571 crore for the nine-month period ending December and a gross non-performing asset ratio of 0.95 percent.
Looking ahead, Axis Bank expects Axis Finance to be classified as an upper-layer NBFC by 2026-27 and plans to list the subsidiary within the regulatory timeline.
The move signals the bank’s continued focus on expanding its lending ecosystem while ensuring adequate capital support for future growth.
