Axis Bank

** Shares of Axis Bank AXBK.NS rise 1.8% to 1,244.10 rupees

** Bank's gross advances as on Sept 30 rose 22.7% Y/Y

** Total deposits as on Sept. 30 grew 20.7% Y/Y

** Bank mobilised FCNR (B) deposits, foreign currency deposits by non-residents, aggregating $10.62 bln as on Sept 30 under RBI's swap facility

** Goldman Sachs says the bank utilised FCNR (B) deposits well during the quarter

** YTD, AXBK down 2% vs 13.6% fall in Nifty 50 index .NSEI

(Reporting by Vijay Malkar)

(([email protected];))

Oct 5 (Reuters) - Axis Bank Limited AXBK.NS:

• TOTAL DEPOSITS AS ON SEPT 30, 2026, UP 20.7% YOY

• GROSS ADVANCES AS ON SEPT 30, 2026, UP 22.7% YOY

• MOBILISED FCNR (B) DEPOSITS $10.62 BILLION AS ON SEPT 30, 2026

Further company coverage: AXBK.NS

(([email protected];))

Sept 30 (Reuters) - Apple Pay AAPL.O has launched in India through a partnership with Axis Bank AXBK.NS, giving the payment service its first foothold in one of the world's largest digital payments markets, the lender said on Wednesday.

Axis Bank, India's third-largest private lender, will be the first Indian bank to offer Apple Pay, initially to customers with credit cards on the Visa V.N and Mastercard MA.N networks.

Cards on India's homegrown RuPay network will not be eligible.

"India is home to a dynamic and digitally savvy population that continues to embrace a cashless future while expecting the highest standards of security and privacy, and we're so excited to bring Apple Pay to users in India today," Jennifer Bailey, Apple's vice president of Apple Pay and Apple Wallet, said in a statement.

Axis Bank is India's fourth-largest credit card issuer, with 16.3 million cards outstanding as of August, out of 124 million nationwide, central bank data showed.

The launch would help the US company offer its payment service in the world's most populous country, one of the ​few major economies where it is not available.

Apple Pay has also held talks with larger rivals HDFC Bank HDBK.NS and ICICI Bank ICBK.NS, but has yet to agree commercial terms, Reuters reported earlier this month.

India's Unified Payments Interface, a real-time bank transfer system, accounts for 84% of digital payment volumes and is the world's largest retail fast-payment system by transaction volume, according to a 2025 IMF report.

Customers can add eligible cards through Axis Bank's mobile app or Apple Wallet and make payments in stores, in apps and online using an iPhone, Apple Watch or iPad, the lender said in a statement.

Apple Pay lets users make contact less payments without entering a card PIN or one-time password, authenticating transactions through Face ID, Touch ID or a device passcode.

(Reporting by Anuran Sadhu in Bengaluru and Jaspreet Kalra in Mumbai; Editing by Nivedita Bhattacharjee)

(([email protected]; +91 8697274436;))

**Citi adds Axis Bank AXBK.NS to its 30-day positive catalyst watch

** Expects 1.7% RoA and 16% RoE, supported by roughly 40% y/y profit growth

** Citi expects bank to mobilise $10 billion-$11 billion in FCNR(B) deposits, more than 8% of industry-wide mobilisation

** Says lending against FCNR balances could help lift loans by more than 4%, underpinning 8%-9% sequential growth in loans and deposits

** Says bank well positioned to sustain profitability and earnings growth despite larger balance sheet

** Stock down about 1% at 1,210.40 rupees vs banks index's .NSEBANK 1.7% drop; Nifty 50 .NSEI down 1.3%

** Avg rating of 41 analysts is "buy"; median PT 1,580 rupees - LSEG-compiled data

** YTD, AXBK down 4.6% vs .NSEBANK's 8.3% drop

(Reporting by Kashish Tandon in Bengaluru)

(([email protected]))

Sept 24 (Reuters) - Shares of insurance distributor PB Fintech PBFI.NS, lenders and non-bank lenders with sizeable insurance distribution income fell on Thursday after India's insurance regulator proposed curbs on commissions and distribution payouts, raising concerns over earnings growth.

PB Fintech, parent of insurance distribution platform Policybazaar, and Max Financial MAXI.NS led losses among pack, plunging 10% each.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected]; 8800437922;))

MUMBAI, Sept 22 (Reuters) - India's Axis Finance plans to raise 5 billion rupees ($52.3 million) through sale of bonds maturing in four years and 11 months, three bankers said on Tuesday.

The firm will pay a coupon of 8.21% and has invited commitment bids for the issue on Wednesday, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on September 22:

*Size includes base plus greenshoe for some issues

($1 = 95.5900 Indian rupees)

(Reporting by Dharamraj Dhutia; Editing by Mrigank Dhaniwala)

(([email protected]))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 31 (Reuters Breakingviews) - India's largest private bank by assets has a chance to restore some lost credibility. HDFC Bank HDBK.NS CEO Sashidhar Jagdishan on Saturday unexpectedly ruled out staying for a third three-year term at the helm once his current tenure ends in October. As the $115 billion lender's governance woes start to look persistent, his departure gives its board a chance to bring in an outsider to shake things up.

HDFC has been in the wars of late. In March, Chair Atanu Chakraborty suddenly resigned, citing ethical differences with the bank. Last month, the board fined Jagdishan and other senior executives for "business overreach" in deposit pricing; within three weeks a group of U.S.-based investors filed a class-action lawsuit against the lender, alleging it failed to properly disclose information about the incident.

These challenges had weakened Jagdishan's chances of staying on, as it was not clear he'd get the nod from the central bank, which has an effective veto over bank CEO appointments. They certainly overshadowed his achievements. A long-time insider, 61-year-old Jagdishan prioritised improvements to HDFC's technology and customer service; oversaw the merger of HDFC Bank with its mortgage-lender parent, which involved layers of employee integration and a complex realignment of assets and liabilities; and he upgraded the bank's digital capabilities enough to reverse crippling business curbs imposed by the central bank months after he took charge.

Yet internal problems and thinning net interest margins have taken their toll: the stock has fallen 27% from its high at the end of last year, reducing the bank's annualised total return during Jagdishan's tenure to just 4.5%, a quarter of the Nifty Bank index.

After more than 30 years of insiders running the shop, hiring the next CEO from outside the lender's executive ranks makes sense. Amitabh Chaudhry, who leads $41 billion Axis Bank AXBK.NS and has presided over an asset-quality turnaround and an acquisition of Citi's local consumer business, would be a strong contender. As would Bajaj Finance BJFN.NS Vice Chair Rajeev Jain, whose experience building scale would suit HDFC's needs, too.

The bank might suggest Deputy Managing Director Kaizad Bharucha and an external candidate for the central bank to consider, Reuters reported, citing sources. Between the two choices, the lender stands to gain less from the continuity an insider would bring than from the needed shake-up an external appointment might be more willing to instigate.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

HDFC Bank is likely to name Deputy Managing Director Kaizad Bharucha as one of two options for its next CEO after incumbent Sashidhar Jagdishan retires at the end of his second term in October, Reuters reported on August 30, citing two unnamed people familiar with the matter.

The bank on August 29 said Jagdishan had decided not to seek re-appointment to the role. His second three-year term ends on October 26. "The Board decided to fast-track the process for selection and appointment of his successor well within time," HDFC said in a filing.

(Editing by Antony Currie; Production by Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

By Ashwin Manikandan and Gopika Gopakumar

MUMBAI, Aug 25 (Reuters) - Axis Bank AXBK.NS, 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 Brazil amid 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.

"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 MAXI.NS, 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.

($1 = 95.7450 Indian rupees)

(Reporting by Ashwin Manikandan and Gopika Gopakumar in Mumbai;)

(([email protected];))

By Munsif Vengattil

BENGALURU, Aug 21 (Reuters) - India has directed Google to shut down hundreds of accounts on its Firebase web development platform after finding a pattern of criminals misusing the service to impersonate major banks and defraud people, according to government notices and a source familiar with the matter.

Online scams have become one of India's most pressing law enforcement challenges, with Indians losing nearly $2.4 billion in alleged cyber fraud in 2025, according to government data. For years, the government has gone after scammers by ordering their websites removed.

Of late, however, Indian officials have noticed a "pattern" that scammers are using the Google's app and website development tool Firebase, which has millions of users the world over, according to the source with direct knowledge of the matter.

The Indian Cyber Crime Coordination Centre (I4C) has directed at least 57 websites and databases that were hosted on Firebase be taken down in August alone, saying they were being used to distribute malware and steal sensitive financial information from victims' phones, according to three notices sent to Google and reviewed by Reuters.

There was no suggestion in the notices that Google or Firebase were in any way responsible. However, Google can be held liable for the named links if they are not taken down within three hours of the notice being issued.

"Android-based malware programs are masquerading as legitimate banking services, specifically targeting Android users with credit cards. Scammers lure victims by promoting offers such as new credit cards, reward redemptions, or credit limit upgrades," I4C said in an August 17 notice to Google, directing the removals.

The source added the total number of notices sent to Google over Firebase ran into dozens in recent months, without sharing an exact number.

Alphabet-owned GOOGL.O Google said in a statement the company has "strict policies prohibiting the use of our services for phishing, malware, or financial fraud" and works with law enforcement, including I4C, to evaluate and act on notices.

Representatives for India's home (interior) ministry, which controls the I4C, did not respond to questions.

BOOMING DIGITAL USE

Firebase is used by millions of developers worldwide to build apps and host websites. It is part of Google's cloud business, which generated nearly $25 billion in revenue in the most recent quarter.

Scam operators have been migrating to Firebase from other free tools since last year, drawn by generous free options and more capable database features, the Indian government has assessed, the source said.

Scammers are increasingly targeting India's booming digital payments ecosystem. Nearly 242 billion digital transactions were processed through India's real-time payments system alone in the year to March 2026, making it one of the world's largest digital payments markets.

Reuters reviewed three government notices sent by I4C to Google in August, accessed through Lumen, a non-profit database where companies like Google voluntarily submit content removal requests they receive.

"ANDROID GOD MODE"

Seven of the 57 websites and databases asked to be removed were phishing pages created using Firebase that mimicked top Indian banks, including State Bank of India, ICICI Bank and Axis Bank. The remaining were what the government agency said were websites created to collect data stolen from victims' phones, including credit card details and one-time passwords.

The three banks did not respond to queries from Reuters.

The fraud described in the notices worked by getting victims to install apps that looked like legitimate banking services.

One scheme exploited by scammers was PM-KISAN, a federal government programme that pays small farmers roughly 2,000 Indian rupees (about $21) every four months, according to a fourth notice and the source with direct knowledge.

Websites allegedly promised recipients help in claiming their payment, asking them to download an app to redeem the money.

Then, the app sends the user's data to the scammer's Firebase database, effectively leading to a hack of the phone where scammers can access other downloaded apps and defraud customers of their funds.

The government issued one public advisory in March, without naming Firebase, but raising concerns about such malware, widely called "Android God Mode" by cybersecurity researchers, a term describing the near-total control over victims' phones.

"These malicious apps often impersonate trusted services such as banking, government and utility platforms, and trick users into installing them through links," the advisory said.

($1 = 95.7300 Indian rupees)

(Reporting by Munsif Vengattil in Bengaluru; Editing by Aditya Kalra and Raju Gopalakrishnan)

(([email protected];))

By Dharamraj Dhutia

MUMBAI, Aug 18 (Reuters) - Four Indian private lenders have fast-tracked plans to raise dollar bonds before the end of August, seeking to take advantage of a central bank swap facility before its early closure, after larger peers ICICI Bank ICBK.NS and Axis Bank AXBK.NS raised more than $1 billion.

Kotak Mahindra Bank KTKM.NS, YES Bank YESB.NS, IDFC First Bank IDFB.NS and Federal Bank FED.NS are together aiming to raise $1.85 billion through bond sales with maturities of up to five years, the bankers added.

Lenders are rushing to raise funds after the Reserve Bank of India last week said it would close a swap facility for FX deposits from non-resident Indians on August 31, a month earlier than planned.

Kotak Bank is leading the race as it has set its final price guidance at 108 basis points above U.S. Treasuries, 22 bps narrower than its initial guidance.

"Kotak Bank should be finalised before the end of this week, leaving the other three lenders scrambling for funds in the last week of August," one of the bankers said.

They all requested anonymity as they are not authorised to speak to the media. None of the banks responded to Reuters emails seeking comment.

YES Bank has appointed merchant bankers for a three-year bond offering, with investor calls scheduled for this week, the bankers said.

This will be the first time the private financier taps the offshore market after defaulting on its perpetual additional tier-1 bonds in 2020.

Federal Bank and IDFC First Bank, which are relatively smaller and are looking to debut in the dollar bond market, have just started scouting the market for investors, the bankers added.

The development comes after ICICI Bank raised $750 million through five-year bonds, 105 bps above Treasuries, while Axis Bank raised $300 million through three-year and three-month dollar bonds at a spread of 95 bps over Treasuries.

Indian banks have collectively raised $6.3 billion since the scheme was implemented on June 5, up from $850 million earlier this year, data from Cbonds showed, notching a record high for any calendar year.

(Reporting by Dharamraj Dhutia; Editing by Sonia Cheema)

(([email protected];))

By Dharamraj Dhutia and Khushi Malhotra

MUMBAI, Aug 17 (Reuters) - Indian lenders are rushing dollar loan and bond issues over the next two weeks after the central bank unexpectedly advanced the end date for an FX swap facility that banks were using for hedging exposure to deposits raised from diaspora.

As part of a raft of measures to boost inflows, lenders were permitted to use these overseas borrowings to offer loans to non-resident Indians. Banks' overseas fundraising had also been subsidised.

Now, with the Reserve Bank of India announcing the closure of the forex swap window for August 31, a month earlier than initially planned, Indian private and state-run banks are on track to raise at least $5 billion through a combination of bonds and loans, four bankers said.

"Some of the fund raising plans have been brought forward to utilize the last few days," Akshay Naik, India head of debt capital markets at Citi, said.

"We will have one of the busiest windows for the next 6-8 days from India. Few institutions who are not ready may need to drop their plan if it was solely meant for FCNR leverage."

Large private-sector lenders such as ICICI Bank ICBK.NS and HDFC Bank HDBK.NS are in talks to raise about $1.5 billion each via dollar bonds and loans, while peers including Axis Bank AXBK.NS, YES Bank YESB.NS, RBL Bank RATB.NS and Kotak Mahindra Bank KTKM.NS are planning to raise at least $500 million each through overseas debt markets, bankers said.

State-run lenders State Bank of India SBI.NS, Bank of Baroda BOB.NS, Punjab National Bank PNBK.NS, Canara Bank CNBK.NS, Union Bank of India UNBK.NS, Bank of India BOI.NS and Central Bank of India CBI.NS are targeting dollar raises of $250 million to $500 million each, with the larger banks likely to target bigger issues, the bankers said.

None of the lenders replied to Reuters emails seeking comment.

All the bankers declined to be named as the discussions are private.

BANKS ON TRACK FOR RECORD DOLLAR FUNDRAISING

Indian lenders have raised a combined $5.93 billion through dollar bond sales and loans so far this year, according to LSEG data through August 11.

The tally has climbed by another $1.2 billion, following debt sales by two large state-run lenders last week.

Over the last 15 years, banks' annual foreign borrowing topped $6 billion on three occasions, including in 2013, when the RBI had opened a swap window.

"Would expect $5-7 billion of additional bond and loan issuances for the remainder of year," Naik said.

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)

(([email protected]; [email protected]))

MUMBAI, Aug 13 (Reuters) - India's Axis Finance ASFP.UL accepted bids worth 8.35 billion rupees ($87.50 million) for the sale of bonds maturing in two years and 11 months, three bankers said on Thursday.

The firm will pay a coupon of 7.90% and had invited commitment bids for the issue on Wednesday, they said.

The company did not respond to a Reuters email seeking comment.

Here is the list of deals reported so far on August 13:

*Size includes base plus greenshoe for some issues

($1 = 95.4250 Indian rupees)

(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Harikrishnan Nair)

(([email protected], [email protected]))

By Dharamraj Dhutia

MUMBAI, Aug 12 (Reuters) - State Bank of India SBI.NS, the country's largest lender, drew strong demand in its return to the public dollar bond market after nearly a year, with pricing tightening sharply from initial guidance, three merchant bankers said on Wednesday.

SBI raised $500 million through a five-year dollar bond issued via its London branch, the lender said in a stock exchange filing late on Tuesday.

These bonds will be priced at a spread of 88 basis points over U.S. Treasuries, sharply below initial guidance of 120 bps. The notes carry a coupon of 5.25%, payable semi-annually.

The final spread was broadly in line with CreditSights' expectation of 90 basis points, although the research firm expects it to tighten further to around 80 basis points in the secondary market.

Spreads on dollar bonds issued by Indian borrowers have widened in recent weeks on expectations of heavy supply following the Reserve Bank of India's swap concession window, while demand has been tempered by attractive rates on foreign-currency deposits.

"As we had anticipated, some of this spread premium has begun to fade as supply is absorbed... We have an outperform recommendation on SBI," CreditSights analysts said in a note.

The lender witnessed tightest pricing, after ICICI Bank sold notes at 100 bps, while HDFC Bank sold notes at a spread of 90 bps over Treasuries.

SBI had planned to raise $1 billion through a public dollar bond issue in June, but deferred the sale due to higher borrowing costs following heavy issuance by Indian lenders.

The bank subsequently raised $600 million through a private placement of three-year dollar bonds at a spread of 100 basis points over the Secured Overnight Financing Rate (SOFR).

The issue comes at a time when Indian banks are making a beeline for dollar issues after the RBI's swap facility announced in June made overseas borrowing cheaper.

Large private lenders, including HDFC Bank, Axis Bank and ICICI Bank have raised funds through dollar bonds in June and July.

Meanwhile, bankers expect SBI to tap the market again in a few weeks for raising dollars, as the board has approved raising of up to $2 billion through bonds sold in dollar or any other major currency in this financial year.

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 11 (Reuters Breakingviews) - That Indian banks would sport higher book value multiples than their Western peers used to be almost as reliable as the sun coming up in the morning. Even after a lending crisis last decade, the country retained the lead, with $118 billion HDFC Bank HDBK.NS often at the front. Not any longer. A resurgence of players like HSBC HSBA.L and JPMorgan JPM.N as well as the rise of India’s capital markets have both landed blows on the sector. In HDFC’s case, its own governance and margin woes have completed a triple whammy.

The Mumbai-based bank run by Sashidhar Jagdishan currently trades at less than 2 times its estimated book value 12 months from now, per LSEG data. A few years ago, most developed-market peers could only dream of such a level. Now, thanks to resurgent earnings and, in the U.S. at least, a regulatory proposal to cut capital requirements, they sport book multiples most have not worn since the 2008 financial crisis. JPMorgan’s, for example, is now at 2.5 times; the new king of the metric is $206 billion Commonwealth Bank of Australia CBA.AX at 3.7 times.

Meanwhile, many Indian banks are struggling to hoover up low-cost deposits as savers look for higher yields in the stock market. That’s hurting net interest margins, with HDFC’s and Axis Bank's expected to fall again this financial year, per estimates collated by Visible Alpha. Industry-wide bank deposits dropped to around one-third of household financial savings in the 13 years to the end of March 2025, while equity and mutual funds grew sevenfold to over 15%, government data show.

HDFC, though, has also shot itself in the foot. In 2020 the Reserve Bank of India barred it from issuing new credit cards after recurring online shutdowns. A 2023 merger with its mortgage-lender parent failed to live up to its promise. In March its chair resigned citing ethical differences with management. Last month the board fined top executives including Jagdishan for improprieties in deposit pricing while exonerating their actions as "business overreach". The successive crises reflect poorly on Aditya Puri, HDFC's Managing Director and CEO from its inception in 1994 until 2020.

It’s not alone. The $41 billion Kotak Mahindra Bank KTKM.NS trades at 2.5 times forward book value that’s half its 2019 peak, having been beset by a poorly handled leadership transition and business restrictions akin to HDFC's.

Lifting those curbs has done little for either firm’s valuation. Not all the country’s lenders are suffering from valuation blues: $107 billion ICICI Bank ICBK.NS has undergone a successful turnaround and trades at nearly 3 times book. But HDFC’s path back to the top has too many obstacles.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

HDFC Bank on July 27 said it would issue warning letters and impose a penalty of 100,000 ​rupees ($1,045.51) each on CEO Sashidhar Jagdishan, its chief financial officer ​and its head of retail assets for their role in offering preferential deposit rates to a state agency.

The bank's board concluded that its executives involved in setting deposit rates for the agency ​had engaged in business overreach, rather than acting for ‌personal gain.

(Editing by Antony Currie; Production by Aditya Srivastav)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

Adds details on subsidised foreign currency deposits

By Nishit Navin and Ashwin Manikandan

Aug 7 (Reuters) - State Bank of India SBI.NS posted a larger-than-expected quarterly profit on Friday, helped by healthy loan growth, pushing shares as high as 3.6%.

Credit growth has been robust in Asia's third-largest economy as firms borrow due to rising working capital needs and households make a beeline for consumption and gold-backed loans.

The state-run SBI posted a 10.2% rise in net profit to 211.21 billion rupees ($2.22 billion), above analysts' estimates of 191.02 billion rupees, as per data compiled by LSEG.

Its gross loan book grew 18.63% year-on-year, while deposits grew 9.73%. Loan growth at SBI, the country's largest lender, is closely watched as an indicator of broader economic trends.

Across the sector, analysts and investors have also been closely watching bank margins as strong loan growth has coincided with intense competition for deposits at a time when deposit growth has lagged growth in loans.

SBI's domestic net interest margin expanded 7 basis points to 3% from three months ago. Net interest income, the difference between interest earned on loans and paid on deposits, grew nearly 15% year-on-year to 469.92 billion rupees for the quarter ended June 30.

Top lenders such as HDFC Bank HDBK.NS, Axis Bank AXBK.NS and Kotak Mahindra Bank KTKM.NS reported sequential margin declines in the first quarter.

SBI's gross non-performing assets improved to 1.47% of total loans from 1.49% three months earlier and 1.83% a year earlier.

Slippages, or loans that turned bad, stood at 70.46 billion rupees in the June quarter, compared to 55.21 billion rupees the previous quarter and 79.45 billion rupees a year earlier.

SBI's shares trimmed some gains to close 1.1% higher.

SUBSIDISED FOREIGN CURRENCY DEPOSITS FROM NON-RESIDENT

SBI said it has mobilised $6 billion in subsidised foreign currency deposits till now, helped by the Reserve Bank of India's concessional swap facility, and is on track to raise $10 billion.

The RBI introduced the swap facility in June to encourage foreign currency inflows, and banks have raised $36.73 billion through FCNR(B) deposits as of July 31, according to data from the RBI.

($1 = 95.2725 Indian rupees)

(Reporting by Nishit Navin in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

(([email protected];))

The author is a Reuters Breakingviews columnist. The opinions expressed are her own.

By Shritama Bose

MUMBAI, Aug 4 (Reuters Breakingviews) - India's banks may need to take some lessons in layoffs from Wall Street. Staffing levels at HDFC Bank HDBK.NS, ICICI, Axis AXBK.NS and Kotak Mahindra KTKM.NS fell by up to 4% during the 12 months to the end of March after years of increases. It's largely the result of businesses maturing, revenue growth slowing and more tasks getting automated. Goldman Sachs GS.N, Morgan Stanley MS.N and others routinely dump more. But India generally frowns on making people redundant. AI is likely to force its financial services firms – and others – to look past the taboo and embrace deeper cuts.

Western lenders and investment banks tend to slash their ranks when a downturn hits. But some, like Goldman, also oust those performing poorly – as much as 5% of employees – each year. By that metric, their Indian peers are only dabbling. Moreover, natural attrition seems to account for most, if not all, of the reductions.

That does the job for now as the businesses weaken somewhat. Total revenue at $41 billion Axis for the financial year to the end of March grew at nearly a quarter of its pace the previous year, while Kotak's fell slightly. Yet the compensation ratio for both, and for $122 billion HDFC, stayed flat, suggesting the softly-softly downsizing is working, Breakingviews calculates, using data disclosed by the lenders. Increased outsourcing of tasks like loan collection and IT management weighs on headcount too.

The rise of automation, though, whether due to AI or less advanced technology, is likely to increase pressure to reduce staff numbers. A substantial share of new business, for example, now comes from attracting new retail customers digitally, reducing the need to keep expanding and staffing branches. And AI capabilities are making humans increasingly redundant at routine functions like fraud monitoring and data analysis.

At Axis Bank, where staff numbers fell 3%, CEO Amitabh Chaudhry has set targets that include using AI to automate and augment half of its customer calls in the current financial year. HDFC, which reported a 2% workforce reduction, is applying AI to retail credit decisions and trade transactions.

As banks commit to adopting AI across a growing chunk of their operations, more job functions will have to go, though they are likely to find more productive jobs for some. The impact will eventually show up at government-owned lenders like State Bank of India SBI.NS and intensify a slow-burn shrinkage underway there for years.

Their executives are likely to rely on natural attrition, retirements and reduced hiring for as long as possible. But the bigger the impact of AI and the more their businesses mature, the greater the chance that they will have to follow Wall Street's lead by breaking with convention to give more people the boot.

Follow Shritama Bose on LinkedIn and X.

CONTEXT NEWS

HDFC Bank, ICICI Bank, Axis Bank and Kotak Mahindra Bank reported an up to 4% year-on-year fall in their employee counts as of March 31.

In its annual report for the 12 months ended March, released on July 11, HDFC said the number of permanent employees on its rolls stood at 211,178, 2% lower than the level as on March 31, 2025. ICICI's filings show a 4% fall in the metric to 124,029, while Axis and Kotak reported declines of 3% and 1% respectively.

(Editing by Antony Currie; Production by Aditya Srivastav and Ujjaini Dutta)

((For previous columns by the author, Reuters customers can click on BOSE/[email protected]))

By Dharamraj Dhutia

MUMBAI, July 24 (Reuters) - India's ICICI Bank ICBK.NS has priced a $1 billion five-year dollar bond at a much tighter spread than initially indicated, in the largest such issue by an Indian lender in nearly 14 years, three bankers said.

The bank set the coupon at 100 basis points over U.S. Treasuries, sharply lower the initial guidance of 130 basis points, for its first dollar debt sale in nearly nine years. The coupon works out to be 5.46%.

The offering attracted $3 billion in bids against a base issue size of $500 million, the bankers said, speaking on condition of anonymity because they were not authorised to speak to the media.

ICICI Bank did not immediately respond to a Reuters request for comment.

The deal is the largest dollar bond sale by an Indian private-sector bank, and the second biggest by any local lender since State Bank of India's $1.25 billion five-year issue in January 2013.

The private bank becomes the latest to leverage the central bank's lower-cost hedging facility, after the Reserve Bank of India last month introduced a swap facility allowing eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually.

The measure significantly lowers hedging costs, making overseas dollar fundraising more attractive.

CreditSights had projected the bond to be priced at a spread of 95-100 bps, but places the fair value at 85 bps.

Analysts Lim Ze Hao and Pramod Shenoi said ICICI Bank's bonds were fairly valued at broadly flat to HDFC Bank's debt and around 10 bps tighter than State Bank of India's four-year dollar bonds after accounting for duration premium.

In June, HDFC Bank had raised $750 million through a five-year dollar debt sale at a spread of 92 bps over Treasuries. In the secondary market, it was traded at a spread of 94 bps.

Another private sector peer Axis Bank had raised an aggregate of $800 million through a dual-tranche dollar bond issue in June.

The proceeds from ICICI Bank's issue will be used for general corporate purposes. The bonds are expected to be rated "Baa3" by Moody's and "BBB" by S&P Global, in line with the issuer.

In December 2017, ICICI Bank had raised $500 million through 10-year bonds at a coupon of 3.80%.

CreditSights has also upgraded its recommendation on these bonds to "outperform" from "market perform" earlier.

(Reporting by Dharamraj Dhutia; Editing by Sherry Jacob-Phillips)

(([email protected];))

By Dharamraj Dhutia

MUMBAI, July 23 (Reuters) - India's ICICI Bank ICBK.NS has provided an initial price guidance for a five-year dollar bond leveraging the central bank's lower-cost hedging facility, as the private lender returns to the dollar debt market after nearly nine years, two bankers aware of the matter said on Thursday.

The lender is expected to raise at least $500 million through this issue and has provided guidance of a spread of 130 basis points over the corresponding U.S. Treasury yield, the bankers added, requesting anonymity as they are not authorised to speak to the media.

The lender updated its Global Medium Term programme on Wednesday and immediately started the process of raising funds.

ICICI Bank did not immediately respond to a Reuters request for comment.

"The bank should finalise the pricing before the end of Friday, and we are expecting at least 30 bps of a compression from the initial guidance," one of the bankers said.

The transaction would mark ICICI Bank's first dollar bond issuance since December 2017, when it raised $500 million through 10-year bonds at a coupon of 3.80%.

CreditSights has a market perform recommendation on ICICI Bank's dollar bonds.

The Reserve Bank of India last month introduced a swap facility allowing eligible external commercial borrowings by banks and state-owned companies to be hedged at a fixed rate of 1.5% per annum, compounded semi-annually.

The measure significantly lowers hedging costs, making overseas dollar fundraising more attractive.

The nation's second-largest private bank will join peers HDFC Bank and Axis Bank, which raised $750 million through five-year bonds and $800 million via a dual-tranche dollar bond issue in June.

The proceeds from the issue would be used for general corporate purposes, the bankers added.

The offering will be rated Baa3 by Moody's and BBB by S&P Global, in line with the issuer, and would be sold through its GIFT City branch.

(Reporting by Dharamraj Dhutia; Editing by Rashmi Aich)

(([email protected];))

Adds graphic

By Kashish Tandon

July 20 (Reuters) - Indian banks slid on Monday, led by a more than 5% drop in top private lender HDFC Bank HDBK.NS, as weaker-than-expected lending margin raised concerns about profitability.

Private lenders HDFC Bank, ICICI Bank ICBK.NS , Axis Bank AXBK.NS and Kotak Mahindra Bank KTKM.NS reported their June quarter results over the weekend, with loan growth strong, but margins under pressure amid greater competition and higher funding costs.

India's private bank shares .NIFPVTBNK slid 2.3%, financials .NIFTYFIN declined 1.2% and the Nifty banks index .NSEBANK fell 1%. The broader Nifty 50 .NSEI inched 0.4% lower.

"HDFC Bank was relatively weaker" among major private lenders this quarter, Jefferies said, noting that its push into faster-growing corporate loans came at the cost of margins.

The lender's net interest margin, a key gauge of profitability, stood at 3.26%, below the 4% level before its merger with parent HDFC in 2023.

Citi trimmed its fiscal 2028 earnings estimates for HDFC Bank by 1%-2% on softer fee income and weaker-than-expected net interest income.

"While margins were expected to contract this quarter, those of HDFC and Axis disappointed as they dropped more than expected and that can be seen in the market reaction as well," said Anand Dama, executive director and head of BFSI at Nuvama Institutional Equities.

"Meanwhile, ICICI Bank and Federal Bank were outliers as their results were a positive surprise," Dama said.

Investec downgraded HDFC Bank to "hold" from "buy" while Bernstein upgraded ICICI Bank to "outperform" from "neutral".

ICICI Bank, which analysts described as the sector's strongest performer, rose 1.1% after an earnings beat and was the top gainer on the private bank index. Federal Bank FED.NS ended 0.5% higher.

Loan growth among major private banks remained in the 15%-20% range during the quarter, according to Jefferies.

Axis Bank AXBK.NS dropped 5.5% and Kotak Mahindra Bank KTKM.NS declined 2% after posting results that were in line with estimates.

(Reporting by Kashish Tandon in Bengaluru; Editing by Mrigank Dhaniwala and Janane Venkatraman)

(([email protected]; 8800437922;))

By Gopika Gopakumar

MUMBAI, July 18 (Reuters) - Indian private lender Axis Bank AXBK.NS reported higher-than-expected profit for the first quarter on Saturday, as core interest income improved and provisions fell.

The country’s third-largest private lender by market capitalisation posted 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. Analysts had expected a profit of 65.5 billion rupees, according to data compiled by LSEG.

The bank had taken a one-time charge on a part of its loan book in the year-ago quarter due to what it termed at the time as an "industry benchmarking" exercise on its credit overdraft facilities.

Indian banks have seen a pick-up in loan growth since April, with demand for personal credit and loans against gold rising. Small businesses have also stepped up borrowings, in part backed by government default guarantees made available against the backdrop of disruptions caused by the Iran war.

Axis Bank's net interest income rose 8% to 146.46 billion rupees, aided by a 19% rise in domestic loans.

Deposits grew 6% during the quarter.

Net interest margin, a key measure of the bank’s profitability, fell to 3.46% compared to 3.62% a quarter ago.

Funds kept aside for potential bad loans and other losses fell 44% to 22.22 billion rupees.

The bank's other income, which includes income from treasury, fell 7%, as volatile currency and bond markets led to a fall in income to 67.35 billion rupees.

The Mumbai-based lender's asset quality remained stable with the gross non-performing asset ratio at 1.28% at the end of June, compared with 1.23% in the three months earlier.

($1 = 96.2800 Indian rupees)

(Reporting by Gopika Gopakumar; Editing by Sam Holmes)

(([email protected]; +91-9833024892;))