Axis Bank “is not interested” in being the third largest private bank and wants to qualify for more, said the MD and CEO Amitabh Chaudhry. The lender aims to add 400-500 branches every year, grow the presence in uploaded areas and strives to improve the quality of the bank franchise. In a sincere interaction, Chaudhry shares the commercial orientation for fiscal year 26, the focus areas as the bank’s head and clarifies the rumors that the upper employees leave the bank. Edited experiences:
How do you plan to increase your market share?
We maintain our position to grow 300-400 (basic points) BPS faster than the industry in terms of long medium. There are years when growth can be similar or less, but we are sure to offer this long -term growth. We have the Branchs of the Adj 400-500 leg every year and we intend to continue doing so. and tries to increase our presence in cities where we are underline. I only have a 5 percent participation in deposits and about 6 percent in advances, so we have a great opportunity to grow. India is growing, we are expanding our branch network and we are trying to increase the quality of our franchise. If we can meet some of these aspirations, our balance will surely grow.
Kotak Bank MD said they want to become the third largest private bank for 2030. Will it cling to its position?
When I joined six years ago, I said we wanted to advance from third position. While that happened yet, we have moved our range for several of our priority businesses. It is fair that you have made that statement. I am sure they also have ambitions. In my case, I am not interested in being in number 3. We also want to ascend.
Will you choose an inorganic growth to climb?
We cannot base our strategy on inorganic growth. We can say that we will go to a certain position only when we buy another franchise. While we are not actively looking for an inorganic growth, if any correct opportunity is obtained, we will surely see it.
Why was Pat Flat Q4Fy25?
If you observe the last two taxes, only the margins of interest (NIM) have remained in the same area for us and the banking system. There was a differential of 8-10 bp because of the highest cost of the lowest funds and yields. In terms of rates, we are one of the highest rates for assets banks. Banks have mainly maintained the growth of expenses under control. For example, reports recently suggest how banks have not incessant their strength of the personnel in the last fiscal year. With the retail cycle, credit costs have increased in retail loans and remained benign in the company. The cost of retail credit was obtained on account of non -guaranteed loans and micro loans. And because there are between links, if it does not have a loan in a loan, the other loans, including the insured, are also put in the NPA category. Despite these factors, our profits have grown, but obviously not to the extent that we would have liked, with the much higher retail credit costs than we expected to go to the financial year. Secondly, when compared to interannual performance, the big difference for us was in the fourth quarter of24, we had great commercial profits, which are there in the fourth quarter of 2015.
Your earning guide for fiscal year 26?
There are clear signs of 2-3 Rebricts of repo fees more in the next 9 months or so. And we have to transmit the reduction of interest rates to the final customer, and that can only be compensated by the cost of Loine funds, otherwise, the NIM will be affected. The RBI has also issued amendments to the LCR framework, but it is effective in April 2026. The history of NIM will develop for a period of time.
On the side of the rates, we have a greater opportunity and we will continue to boost more, but in terms of fees to assets we are already one of the best banks, so there is only so much that we can do. On the cost side, we will continually explore ways of being more efficiently. The cost of credit is stabilization, but it is not yet completely there. We have tasks of a conservative position in a couple of areas, and you can see a higher credit cost in Q1Fy26, which will be possible to start moderating. Obviously, profitability growth also has to come from high growth. On the other hand, or 10 percent, if we grow to 15 percent, our number of profits will increase. Therefore, it must explore how much growth can be delivered, which is linked to the deposit. There are other variables at play, including credit demand and deposit growth rate.
What is the goal in loan, growth of deposits for fiscal year 26?
We do not give guidance on credit growth and deposits, but in general I can speak. Very clearly, the new Governor of RBI has made statements, a couple of times categorical, that the RBI will guarantee a lasting licor in the system. And the action speaks for itself. Since the new governor has arrived, liquuidity has improved in the system and interest rates are decreasing. The market has begun to believe that liquidity is here to stay. As the liquuidity surplus remains, it was predicted that the growth of the deposits would be in the range of 10-11 percent before, it could grow at a slightly higher rate.
My opinion is that credit growth must do the same. Has the private capex been collected? Not in that sense. On the retail side, one has to be cautious due to the excess of liver and has seen the retreat losses increase. Despite all the volatility and action that occur worldwide, the emerging tension of India-Pakistan, etc., if India offers a growth of 6.5-7 percent, to support this, we need to have a decent credit growth. If credit growth is 11 percent or 12-13 percent, it should be seen during this year.
What are some of the areas of concern for you as a bank manager?
We need to continue improving our deposit franchise, so you can offer a certain amount of growth year after year. I know there is a lot of work to do to update the franchise as well. We need to ask our critical questions: do we have the correct corporate salary franchise? Premium clients and participation in the wallet of these clients; We are the primary or secondary bank; Is our deposit collection platform higher at the banking level and is operating in a way the best in class?
Secondly, since we are going through a credit cycle, we want this cycle to stabilize and move in the right direction. Third, the operational risk due to greater interlinism is also increasing. A combination of efforts in fraud prevention, cyber security, technological infrastructure and update, if it is not performed, could increase the operational risk. Fourth, we always have to guarantee the best in the fulfillment of the class and the governance standards. More importantly, even regulators should be able to see the intention and movement of the axis bank in this regard.
Could you clarify rumors or high -level employees that are fires?
Duration The evaluation cycle, we provide comments to all employees, including those who do not have a leg capable of getting their weight. As part of that process, we have conversations with our employees who have stagnated, not supplication, well, and we discuss the way to follow. That is a normal process followed by all companies. In fact, we still have thesis conversations/feedback mechanisms throughout the year.
If someone does not have a performance, we discuss with them at various points that their performance is insatorial. Everything happens according to due process. In some cases, they realize that they are not doing well and renounce on their own. In a few other cases, they are given the clue that we are reviewing their performance for some time and we see no positive change.
