Axis Bank’s growth hunt to run from data to gold

Axis Bank, India's third-largest private bank by assets, anticipates credit growth to outpace the industry average by 300 basis points in the current fiscal year, according to its chief executive Amitabh Chaudhry. This growth surge is attributed to robust demand from sectors like data centers, small businesses, and retail borrowers leveraging gold loans, Chaudhry disclosed in an interview at the bank's Mumbai headquarters.

The Indian banking sector's credit growth accelerated to 18.3% year-on-year in June 2026, compared to 9.3% a year prior, bolstering the economy during a sluggish year globally, Chaudhry noted.

The credit boom, primarily driven by large corporates, non-bank lenders, and gold loans, is expected to elevate earnings for Axis Bank, which reported a net profit of 71.14 billion Indian rupees for Q2, up from 58.06 billion rupees in the same period last year. Net interest income over the same period rose 8% to 146.46 billion rupees, fueled by a 19% surge in domestic loans, Chaudhry added.

Chaudhry highlighted that sectors such as data centers, renewable energy, manufacturing, and urbanization are propelling corporate credit demand, while gold loans and borrowers from smaller cities are fueling retail growth. Axis Bank is selectively expanding its data-center lending, focusing on developers with strong equity backing, technical expertise, and long-term contracts, Chaudhry explained.

However, he cautioned that the sector is not a guaranteed jackpot and necessitates disciplined underwriting. Among retail segments, loans against gold surged 94% year-on-year in June, with borrowers taking advantage of higher gold prices and lower interest rates compared to unsecured personal loans, Chaudhry stated.

Additionally, Axis Bank is planning two potential IPOs for key businesses. The bank is evaluating an internal restructuring involving its joint venture partner in Axis Max Life Insurance, following a change in regulations allowing non-insurance and insurance companies to merge. This move could potentially result in the life insurer being listed within 12 to 18 months.

Axis Finance, with assets exceeding 500 billion rupees, is also slated to list once it reaches the 1 trillion rupee mark, a threshold mandated under Reserve Bank of India rules, Chaudhry added. At the current growth rate, this could transpire within the next couple of years.