Amid regulatory overhaul, Axis Bank awaits RBI nod on Axis Finance's future

Options under consideration include absorbing non-banking financial company (NBFC) into bank, pursuing a public listing, or reducing its shareholding in NBFC below a specified threshold

Axis Bank, India’s third-largest private-sector lender, is awaiting clarifications from the Reserve Bank of India (RBI) to decide the future of its wholly owned subsidiary, Axis Finance, following the regulator’s proposal that only one entity within a bank group can undertake a specific type of permissible business.

 

Options under consideration include absorbing the non-banking financial company (NBFC) into the bank, pursuing a public listing, or reducing its shareholding in the NBFC below a specified threshold.

 

“…the signal from the regulator was that they would not like Axis Bank to continue to just infuse equity into the NBFC. So, we had