Image Source: News Mantra, The Hans India
Sources say that, India’s Axis Bank has put on hold its planned stake sale in Axis Finance after the Reserve Bank of India eased proposed restrictions on overlapping businesses between banks and subsidiaries. The move allows the lender to reassess capital-raising needs and strategic priorities for its consumer lending arm.
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Axis Bank, India’s third-largest private lender, has decided to pause its stake sale process in Axis Finance, its consumer lending subsidiary. According to the sources, the decision follows the Reserve Bank of India’s dilution of draft rules that initially sought to restrict banks from operating overlapping businesses with subsidiaries.
Key Highlights
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The stake sale process was initiated last year with merchant bankers appointed to manage the deal, sources said.
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Morgan Stanley was engaged as the banker for the proposed transaction, according to The Economic Times.
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The RBI’s draft rules in 2024 had raised concerns across the industry, potentially forcing large banks to exit overlapping non-bank businesses, Business Standard noted.
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Following industry pushback, the RBI revised its stance in December 2025, permitting banks to continue such businesses while ensuring ring-fencing from core operations, the Sources highlighted.
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Axis Finance is expected to submit a revised growth plan to the bank’s board in April 2026, after which capital-raising needs will be reassessed, sources added.
Sources: The Economic Times, Business Standard, The Hindu BusinessLine
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