Axis Bank has announced its decision to invest ₹1,500 crore in its wholly owned subsidiary, Axis Finance Limited (AFL), through a Rights Issue. The investment, approved by the Acquisitions, Divestments and Merger Committee of the Board of Directors, is slated to be completed in one or more tranches by March 31, 2027. This move aims to provide growth capital for Axis Finance, a Non-Banking Financial Company (NBFC).

The Reserve Bank of India (RBI) has already given its nod for this capital infusion, as per its letter dated March 10, 2026. The transaction is classified as a party transaction since Axis Finance is a wholly owned subsidiary of Axis Bank. However, the acquisition will be conducted on an arm’s length basis, ensuring fairness and transparency in the process.

Axis Finance, incorporated on April 27, 1995, has shown consistent growth in its turnover over the past three years. The company reported a turnover of ₹4,296 crore for FY25, ₹3,321 crore for FY24, and ₹2,297 crore for FY23. For the half-year ended FY26, the turnover stood at ₹2,504 crore.

The investment will maintain Axis Bank’s 100% shareholding in Axis Finance both before and after the infusion. The capital injection is expected to bolster Axis Finance’s capabilities in the NBFC sector, thereby enhancing its competitive edge in the financial market.

Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).