“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 bank said in an exchange filing.
In an analyst call on January 26, post earnings, the bank had said it would ensure that capital is not a constraint for Axis Finance’s business.
“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 said.
The move comes after the RBI revised its guidelines to permit multiple entities within a banking group to operate in the same line of business, subject to board approval and proper justification.
Earlier, under the central bank’s October 2024 ‘forms of business’ draft circular, Axis Bank was barred from injecting additional capital into Axis Finance, leading it to consider stake dilution and appoint Morgan Stanley to scout for investors.
MD & CEO Amitabh Chaudhry had indicated to ET that the bank had committed to the RBI that it would not infuse further capital into its NBFC due to the circular.“As per its growth plans, Axis Finance will need a couple of thousand crores of capital over the next few years,” Chaudhry had said 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 assets under finance grew 22% year-on-year to Rs 44,972 crore at the end of December 2025. The retail and MSME book grew 30% year-on-year, with its share rising to 56% of the total book from 53% a year ago. About 86% of the book is secured.
The company has a total capital adequacy ratio of 19.9% and strong asset quality with net NPAs at 0.36%. Axis Finance reported a profit after tax of Rs 571 crore for nine-month ending December 2025, up 12% year-on-year from Rs 509 crore in the same period.