Axis Bank said to weigh majority stake sale in $1 billion NBFC unit

The private sector lender is working with an adviser on a strategic review for Axis Finance, the people said, asking not to be identified discussing private information. The bank may seek a valuation of $900 million to $1 billion in a potential transaction, the people said.

Bloomberg

February 25, 2025 / 14:21 IST

Pedestrians walk past an Axis Bank Ltd. branch in Mumbai, India, on Saturday, April 21, 2018. Provisions climbed to 71.8 billion rupees ($1.1 billion) in the three months ended March from 28.1 billion the previous quarter as an additional 165 billion rupees of fresh defaults were identified after the implementation of tighter regulations, Axis Bank said in an exchange on April 26. Photographer: Dhiraj Singh/Bloomberg

26 Aug, 2025 12:21

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Axis Bank is considering options for Axis Finance, including the possible sale of a majority stake in the shadow-bank unit, according to people familiar with the development.

The private sector lender is working with an adviser on a strategic review for Axis Finance, the people said, asking not to be identified discussing private information. The bank may seek a valuation of $900 million to $1 billion in a potential transaction, the people said.

Deliberations are ongoing and Axis Bank could decide not to proceed with a sale, the people said.

A representative for Axis Bank didn’t reply to a request seeking comment.

Shadow banks typically target customers who have limited or no access to traditional banking services because of their low income or lack of credit history. The lenders put higher interest rates on loans, which can make them more vulnerable to defaults and a stress point for the wider financial system.