Axis Bank Expands Corporate Banking Beyond Loans to Boost Fee Income
· Business · Economic Times
Axis Bank is broadening its wholesale banking platform in Mumbai to capture more corporate cash flows beyond traditional lending. Wholesale banking head Vijay Mulbagal stated that the lender is targeting fee income and low-cost deposits by handling collections, payments, trade finance, taxes, and salary accounts. The bank is also offering investment banking and wealth management services through its arms Axis Capital and Burgundy Private to companies and their promoters. Axis Bank is deliberately avoiding a price war for loan growth while pursuing supply-chain opportunities such as factoring, dealer financing, and supplier financing. By managing the broader ecosystem of dealers, suppliers, and employees, the lender aims to build its liability franchise and earn transaction fees.
Why it matters
The strategy shifts Axis Bank's revenue mix toward stable fee-based income and low-cost deposits, affecting corporate clients and financial service competitors in India's banking sector.
Read the original report — Economic Times
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