Axis Bank is targeting aggressive expansion of its mid-corporate loan portfolio, aiming to grow the funded book to ₹1 lakh crore within the next 3-4 quarters from the current ₹80,000 crore, according to NDTV Profit. The bank expects annual growth of 25%-30% in this segment going forward, with the business remaining a key growth driver for the lender. The mid-corporate segment, which entered the market after Amitabh Chaudhry took over as MD and CEO in 2019, currently has ₹18,000 crore in non-fund-based exposure alongside the fund-based outstanding exposure.
Axis Bank, India's third-largest private bank by assets, expects credit growth to expand 300 basis points faster than the industry average in the current fiscal year, according to CEO Amitabh Chaudhry. As reported by Reuters, the bank's strong performance is driven by robust demand from corporate sectors and retail borrowers seeking gold loans. The credit boom is likely to boost earnings, with the bank reporting a standalone net profit of ₹7,114 crore for the three months ended June, compared with ₹5,806 crore a year earlier. A central bank window to draw subsidised dollar deposits is likely to further boost credit growth in the banking sector, Chaudhry added.
The mid-corporate portfolio demonstrates strong financial performance with return on assets of close to 2% and negligible credit costs, according to NDTV Profit. The bank has disbursed more than ₹5,000 crore under ECLGS 5.0 to mid-corporate and medium enterprise customers, supporting genuine liquidity requirements. Average working capital utilisation has increased to 60%-65% from 50%-55% as businesses require more liquidity, while the bank continues to focus on organic growth rather than acquisitions. The portfolio spans Tier-2 and Tier-3 cities, which account for 30%-35% of the business, with the North, South and West contributing broadly similar shares.
Credit growth in India's $3.36 trillion banking sector accelerated to 18.3% year-on-year in June 2026, up from 9.3% a year earlier, according to latest data. According to Reuters, credit is growing at more than 15% even excluding large corporates, non-bank lenders, and gold loans, suggesting broad-based demand across the sector. The bank's net interest income rose 8% to ₹14,646 crore over the period, aided by a 19% rise in domestic loans. Chaudhry noted that the headline growth is coming from three places: large corporates, non-bank lenders, and gold loans.
Technology and AI are becoming more integral to Axis Bank's mid-corporate operations, with analysts using AI-enabled tools for company analysis, monitoring and credit assessment, as reported by NDTV Profit. The bank supports clients through comprehensive services including lending, transaction banking, corporate salary solutions, NPS, Axis Capital, Axis Mutual Fund, Axis Securities, Axis Trustee and wealth management. Axis Bank also supports MSME clients through Invoicemart, a TReDS platform that has discounted more than ₹3 lakh crore of invoices to date. The bank's strategy focuses on building a franchise across Tier-2 and Tier-3 markets while maintaining underwriting discipline and asset quality standards.
Axis Bank, which has units ranging from investment banking to insurance, is preparing two businesses for potential listings, according to Reuters. The bank is evaluating an internal restructuring involving Max Financial, its joint venture partner in Axis Max Life Insurance, after a change in regulations allowed non-insurance and insurance companies to merge. This move could potentially result in the life insurer being listed within 12 to 18 months. Additionally, Axis Finance, which has more than ₹50,000 crore in assets, is likely to list after its assets reach ₹1 lakh crore, the level required under Reserve Bank of India rules, which could happen within the next couple of years at the firm's current growth pace.
