Business

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

By Sohail Khan 25 August 2026, 12:30 pm

Benchmarks
Nifty24,169.05-50.0

FEATURED FUNDS★★★★★

Motilal Oswal Midcap Fund Direct-Growth

5Y Return
23.95 %

Invest Now

Enter search text:

Business News›Industry›Banking/Finance›Banking›Axis Bank bets on data centres to gold loans to outpace industry credit growth

Read Today's Paper

Axis Bank bets on data centres to gold loans to outpace industry credit growth

Synopsis

Axis Bank expects credit growth to exceed the industry average this fiscal year. Strong demand stems from corporate sectors and retail borrowers seeking gold loans. Data centres and manufacturing are driving corporate credit expansion significantly. Retail growth is fueled by gold loans and borrowers from smaller cities. The bank is also preparing two key businesses for potential public listings.

FILE PHOTO: Axis bank CEO, Amitabh Chaudhry reacts during a Meta conference in Mumbai, India, September 20, 2023.

Axis Bank, India's third-largest private bank by assets, expects credit growth to expand 300 bps faster than the industry average in the current fiscal year on strong corporate and retail demand, its chief executive said.

Demand is coming from sectors including data centres and small businesses as well as retail borrowers looking to monetise their gold, Amitabh Chaudhry, the chief executive of Axis Bank, said ‌in an interview at ⁠the company's ⁠headquarters in Mumbai on Monday. Credit growth in India's $3.36 trillion banking sector accelerated to 18.3% year-on-year in June 2026, the latest data available, from 9.3% a year earlier, supporting the South Asian economy in a year when business has been sluggish in many countries including the U.S., China and Brazilamid growing economic and geopolitical challenges.

"The headline growth is coming from three places: large corporates, non-bank lenders, and gold loans," Chaudhry said. Credit is growing at more than 15% even excluding these segments, suggesting broad-based demand, he said. The credit boom is likely to boost earnings at Axis, which reported a standalone net profit of 71.14 billion Indian rupees ($738.89 million) for the three months ended June, ⁠compared with 58.06 ‌billion rupees a year earlier. Net interest income over the period rose 8% to 146.46 billion rupees, aided by a 19% rise in domestic loans. A central bank window to draw subsidised dollar deposits is likely to further boost ⁠credit growth in the banking sector, Chaudhry added.

FROM DATA CENTRES TO GOLD

Data centres, renewable energy, manufacturing and urbanisation are driving corporate credit demand, while gold loans and borrowers from smaller cities are fuelling retail growth, Chaudhry said. Axis Bank is selectively expanding data-centre lending, focusing on developers with strong equity backing, technical expertise and long-term take-or-pay contracts. Such contracts, where the supplier agrees a minimum quantity of goods that a buyer has to purchase every year, are typically agreed for long, extensive projects.

Chaudhry cautioned the sector was not a "jackpot" and required underwriting discipline.

"It is seen as a huge opportunity and a lot of players have entered it," he said. "It might not be such an easy place to play."

Among retail segments, loans against ‌gold surged 94% year-on-year in June. Chaudhry said the gold-linked demand did not signal economic stress, with borrowers instead taking advantage of higher gold prices and lower rates than those available under unsecured personal loans.

Also Read: Citigroup, Axis Bank team up to leverage NRI deposits as RBI dollar inflows surge

"Earlier, people would use gold to borrow only in extreme circumstances. Now they see it ⁠as a very legitimate way to walk in and borrow," he said.

IPO PLANS FOR KEY BUSINESSES

Axis Bank, which has units ranging from investment banking to insurance, is preparing two for potential listings, Chaudhry said. Axis is evaluating an internal restructuring involving Max Financial, its joint venture partner in Axis Max Life Insurance, after a change in regulations allowed non-insurance and insurance companies to merge, he said. The move could potentially result in the life insurer being listed within 12 to 18 months.

Axis Finance, which has more than 500 billion rupees in assets, is likely to list after its assets reach 1 trillion rupees, the level at which it would be required to do so under Reserve Bank of India rules, Chaudhry added. At the firm's current pace of growth, that could happen within the next couple of years, he said.

Add as a Reliable and Trusted News Source
Add Now!

(You can now subscribe to our WhatsApp channel)

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

(You can now subscribe to our WhatsApp channel)

Read More News on
axis bankAxis Bankgold loansdata centrescredit growthAmitabh Chaudhrycorporate credit demandretail borrowersRBIMax Life Insurance

(Catch all the Business News, Breaking News and Latest News Updates on The .)

…moreless

Enter search text:

Continue reading with one of these options:
Limited Access
Free
Login to get access to some exclusive stories

& personalised newsletters
Login Now

Unlimited Access
Starting @ Rs120/month
Get access to exclusive stories, expert opinions &

in-depth stock reports
Subscribe Now

Unlock Access to All Exclusives with ETPrime FREE TRIAL

15 Days Free: Unlock All ETPrime Exclusives, Market Tools & ePapers

Trial offer expiring in00 : 05 : 00

I'd rather pay ₹2599 now

Uh-oh! This is an exclusive story available for selected readers only.

Worry not. You’re just a step away.

Prime Account Detected!

It seems like you're already an ETPrime member with

Log out of your current logged-in account and log in again using your ET Prime credentials to enjoy all member benefits.

Unlock ETPrime's Exclusive Stories Today!

Subscribe to gain powerful insights on business, stock market and industry trends.

Big Price Drop! Flat 40% Off

Student Only Offer

Already a Member? Sign In now

Already a Member? Sign In now
Already a Member? Sign In now

Offer Exclusively For You

Save up to Rs. 700/-

ON ET PRIME MEMBERSHIP

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get 1 Year Free

With 1 and 2-Year ET prime membership

Avail Offer

Offer Exclusively For You

Get Flat 40% Off

Then ₹ 1749 for 1 year

Avail Offer

Offer Exclusively For You

ET Prime at ₹ 49 for 1 month

Then ₹ 1749 for 1 year

Avail Offer

Special Offer

Get flat 40% off on ETPrime

Avail Offer
Avail Offer

Claim NowAlready a Member? Sign In now

Need Assistance?

Connect with an ETPrime expert for personalized support and guidance

+91 9484700004

' + h3 + '

' + h4 + '

' + listing + '

What’s Included with

ETPrime Membership

1Exclusive Insights That Matter

Uncover the truth with our investigative stories

Make strategic moves using the real-world case studies

Read industry-specific stories to identify emerging trends

Spot opportunities with in-depth insights that matter

Trump temper on H-1B visas is forcing Indians to do these things to stay put in US

What Adani’s US indictment means for India Inc’s overseas fundraising
Why veterans like Reliance, L&T are on acquisition spree? Aswath Damodaran has an answer.

Will China’s dollar bond sale in Saudi Arabia trump the US in financial world?
Huawei launches its own OS to compete with Google and Apple. But can it win beyond China?

The problem with lab grown diamonds
Why a falling rupee is a better option for the economy

A list of top 20 momentum stocks that have delivered massive returns in one year