Axis Bank CEO Confirms Strong Capital Position and Expectation of Higher Credit Growth

30 Oct 2023 , 01:44 PM

Axis Bank’s Managing Director and CEO, Amitabh Chaudhry, asserts the bank’s strong capital position, highlighting its self-sustaining capital structure to support organic growth. The bank anticipates outpacing the industry’s credit growth average, aiming for a 400-600 basis point lead in the MSME segment this fiscal year.

Axis Bank possesses ample capital to meet its business growth requirements for the current financial year. The bank’s overall capital adequacy ratio, including profit, stands at 17.84 %, with a CET 1 ratio of 14.56 %.

Axis Bank recently acquired Citibank’s consumer and NBFC consumer businesses for Rs 11,603 crore, significantly expanding its credit card base and ranking among the top three card businesses in India.

Amitabh Chaudhry acknowledges the persistence of high-interest rates in the current economic climate, as indicated by RBI Governor Shaktikanta Das, who emphasized that interest rates will remain elevated due to ongoing global developments.

In response to high inflation, central banks worldwide have raised key policy rates, and the Reserve Bank of India (RBI) has cumulatively increased the repo rate by 250 basis points since May 2022, pausing at 6.5 % in February this year.

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