Axis Finance has secured a ₹2,250-crore capital infusion from Axis Bank and Kedaara Capital to support its growth trajectory. According to reports from Business Standard, the bank received RBI approval to infuse ₹1,500 crore into Axis Finance, which would have taken care of its capital requirements for at least two to two-and-a-half years, depending on growth. However, given the current external environment, the board asked the team to check whether partners would be comfortable coming in for a smaller amount instead, allowing broader participation.
As reported by Business Standard, Axis Finance is expected to double its asset base and cross the ₹1-trillion mark, placing it in the 'upper layer' category. The company currently has a loan book of ₹47,692 crore as of March 2026, representing a 22% year-on-year growth from ₹39,079 crore a year earlier. With the ₹2,250-crore fund infusion, Axis Finance's capital needs are now expected to be covered for about 3.5 years, according to sources familiar with the development.
According to Business Standard, upper-layer NBFCs are required to list on exchanges within three years of reaching the ₹1-trillion asset-size threshold. However, the RBI has proposed an overhaul of the existing framework for classifying upper-layer non-banking financial companies, including a shift towards a size-based criterion. Under the proposed revision, NBFCs with an asset size of ₹1 trillion and above will be categorised as 'upper layer' entities. If the revised framework is implemented, Axis Finance may avoid classification as an upper-layer NBFC for now, potentially delaying mandatory listing requirements.
As reported by Business Standard, last month, Axis Bank said Kedaara Capital would infuse ₹750 crore via preferential issuance of shares, marking the first capital raise by Axis Finance from an external investor. The bank's board approved a ₹1,500-crore capital infusion into the NBFC in one or more tranches by March 31, 2027, by subscribing to its rights issue. Axis Bank did not reply to an email seeking comment on the development.
