Axis Bank to infuse Rs 1,500 crore into Axis Finance after RBI eases guidelines

Private lender Axis Bank is about to infuse Rs 1,500 crore into its subsidiary, Axis Finance, earlier than March 2027 by subscribing to its rights issue. The financial institution, which had earlier initiated a course of to promote a strategic stake in its non-bank lending arm, shelved the plan after the Reserve Bank of India relaxed its ‘forms of business’ pointers, permitting banks and their subsidiaries to function in the identical line of enterprise.

“We wish to inform you that the Acquisitions, Divestments and Merger Committee of the Board of Directors of the Bank, at its meeting held on March 18, 2026, has approved the proposal to infuse Rs 1,500 crore in Axis Finance Limited in one or more tranches before March 31, 2027, by subscribing to the rights issue,” the financial institution mentioned in an change submitting.

In an analyst name on January 26, submit earnings, the financial institution had mentioned it could make sure that capital shouldn’t be a constraint for Axis Finance’s enterprise.

“We continue to explore all options of infusing capital into that business. The process is ongoing, based on regulatory guidance as well as recent changes in guidelines,” Puneet Sharma, CFO of Axis Bank, had mentioned.

The transfer comes after the RBI revised its pointers to allow a number of entities inside a banking group to function in the identical line of enterprise, topic to board approval and correct justification.

Earlier, underneath the central financial institution’s October 2024 ‘forms of business’ draft round, Axis Bank was barred from injecting extra capital into Axis Finance, main it to contemplate stake dilution and appoint Morgan Stanley to scout for buyers.
MD & CEO Amitabh Chaudhry had indicated to ET that the financial institution had dedicated to the RBI that it could not infuse additional capital into its NBFC because of the round.“As per its growth plans, Axis Finance will need a couple of thousand crores of capital over the next few years,” Chaudhry had mentioned in an earlier interview. “We were not in a position to infuse further capital due to our commitment to the RBI. We had no option but to approach the market to raise capital and had initiated that process. While engaging with potential investors, we made it clear that we would act in the best interest of the entity and avoid any value erosion.”

Axis Finance’s belongings underneath finance grew 22% year-on-year to Rs 44,972 crore on the finish of December 2025. The retail and MSME e-book grew 30% year-on-year, with its share rising to 56% of the overall e-book from 53% a 12 months in the past. About 86% of the e-book is secured.

The firm has a complete capital adequacy ratio of 19.9% and powerful asset high quality with internet NPAs at 0.36%. Axis Finance reported a revenue after tax of Rs 571 crore for nine-month ending December 2025, up 12% year-on-year from Rs 509 crore in the identical interval.