Axis Bank Eyes Fee Income Beyond Loans

Axis Bank is actively broadening its wholesale banking platform, moving beyond a primary focus on lending. The strategy aims to capture increased fee income and low-cost deposits by engaging with the broader corporate ecosystem.

Vijay Mulbagal, the wholesale banking head, highlighted that the bank is looking to manage a wider array of financial services for businesses. This includes collections, payments, trade finance, tax processing, and salary accounts.

The bank also intends to offer investment banking and wealth management services, targeting both companies and their promoters. This comprehensive approach seeks to leverage every corporate relationship for deeper engagement.

Axis Bank is utilizing its corporate salary franchise, investment banking arm Axis Capital, and Burgundy Private wealth-management platform to expand relationships. The bank is also exploring supply-chain finance options like factoring and dealer financing.

By managing a greater flow of corporate cash, Axis Bank anticipates building its liability franchise, earning transaction fees, and generating significant float income. However, the bank is committed to avoiding aggressive pricing solely to chase loan growth.