Axis Bank announced that its Board’s Acquisitions, Divestments and Merger Committee approved a proposal to infuse ₹1,500 crore into its wholly-owned subsidiary, Axis Finance Limited (AFL). This capital infusion will be executed by subscribing to AFL’s Rights Issue, in one or more tranches, before March 31, 2027. This strategic move is aimed at providing Growth Capital to the Non-Banking Financial Company (NBFC) subsidiary, a decision previously approved by the RBI.
Capital Infusion for Wholly-Owned Subsidiary
Axis Bank has officially approved a significant capital commitment to its wholly-owned subsidiary, Axis Finance Limited (AFL). The Board’s dedicated committee sanctioned the proposal to infuse a total of Rs. 1,500 crore into the NBFC subsidiary. The mechanism for this investment will be via subscription to AFL’s Rights Issue.
The infusion is planned to occur in one or more tranches, concluding no later than March 31, 2027. It is important to note that the Reserve Bank of India (RBI) provided its consent for this investment via a letter dated March 10, 2026.
Details of the Transaction
The primary objective of this acquisition of shares is to provide Growth Capital to AFL. The cost of acquisition amounts to the full Rs. 1,500 crore investment. Post-investment, Axis Bank’s shareholding in AFL remains unchanged at 100%.
This transaction has been structured to occur on an “arm’s length basis.” The subsidiary, Axis Finance Limited, which operates in the Non-Banking Financial Company (NBFC) sector, reported a turnover of Rs. 2,504 crore for the half year ended FY26. Its incorporation date was April 27, 1995, and its recent historical turnover figures stand as follows:
- FY25 Turnover: Rs. 4,296 crore
- FY24 Turnover: Rs. 3,321 crore
- FY23 Turnover: Rs. 2,297 crore
Regulatory Compliance
The bank confirmed that the entire investment falls within the definition of related party transactions; however, neither the promoter nor the promoter group of Axis Bank holds any interest in the entity being acquired, ensuring the transaction adheres to necessary governance standards. The stipulated completion period for the full investment is by March 31, 2027.
Source: BSE
