Axis Bank Contemplates Majority Stake Sale of $1 Billion Shadow Banking Subsidiary

Axis Bank Ltd, a top Indian private sector lender, is mulling over selling an interest of at least a majority in its shadow banking arm, Axis Finance Ltd. The lender is reportedly pondering on whether to dispose of the same with an estimate value ranging between $900 million and $1 billion. Axis Bank has hired an adviser to review Axis Finance strategically, indicating a potential reorganization of its non-banking financial business. The action is part of the bank's efforts to streamline its portfolio and concentrate on core banking business. The potential deal could redefine Axis Bank's footprint in the shadow banking industry, which has faced scrutiny in recent years.

 

Source: Bloomberg News