Axis Bank has announced the allotment of 59,522 equity shares under its Employee Stock Option Plan (ESOP) and Restricted Stock Unit (RSU) scheme on January 20, 2026. The allotment represents a routine corporate action as employees exercise their stock options, resulting in a marginal increase in the bank's share capital structure.

Share Allotment Details

The bank has provided comprehensive details of the share allotment and its impact on the capital structure:

Capital Structure Impact

The allotment has resulted in a modest increase in Axis Bank's paid-up share capital. The following table shows the before and after position:

Regulatory Compliance

Axis Bank has duly informed both the National Stock Exchange of India Limited (NSE) and BSE Limited about this allotment through its official communication dated January 20, 2026. The bank's Company Secretary, Sandeep Poddar, has digitally signed the disclosure document, ensuring compliance with listing requirements and corporate governance norms.

Employee Stock Participation

The ESOP and RSU schemes represent important components of employee compensation and retention strategies in the banking sector. These equity-based compensation plans allow employees to participate in the bank's growth and align their interests with shareholders. The exercise of stock options typically indicates employee confidence in the organization's prospects and provides them with an opportunity to benefit from the bank's performance over time.

Axis Bank Managing Director and CEO Amitabh Chaudhry has raised concerns about persistent deposit mobilisation challenges in India's banking sector, even as credit growth shows signs of recovery. Speaking at the World Economic Forum Annual Meeting in Davos on January 19, Chaudhry warned that raising deposits will continue to be a "hard grind" for Indian banks.

Deposit Mobilisation and Credit Growth Dynamics

Chaudhry highlighted the growing divergence between credit and deposit growth rates, which poses significant challenges for the banking sector. He noted that while credit growth has picked up substantially, deposit mobilisation has not kept pace.

"People have started talking about credit growth of 15–17%. Deposits need to get there. There can't be divergence between credit and deposit growth," Chaudhry emphasised during his interaction with CNBC-TV18.

RBI Liquidity Support and Policy Measures

The Axis Bank CEO called for sustained liquidity support from the Reserve Bank of India, noting that traditional metrics like loan-to-deposit ratios may no longer be the sole indicator of system liquidity. He observed that the RBI is no longer pushing loan-to-deposit ratios as aggressively as before.

Chaudhry explained that Axis Bank has diversified its funding sources beyond traditional deposits, utilising refinance and infrastructure financing avenues to manage liquidity requirements. He noted that the nature of deposits is changing, making conventional approaches to deposit mobilisation less effective.

Asset Quality and Financial Performance

The CEO provided an optimistic outlook on asset quality trends, indicating stabilisation across key segments. He reported that retail stress is "turning around and stabilising," while the wholesale book has remained benign throughout the challenging period.

Chaudhry also expressed confidence in the rupee's stability, expecting the currency to find equilibrium from current levels.

Technology Investments and AI Focus

Highlighting the bank's strategic priorities, Chaudhry identified artificial intelligence as a key investment area. "AI has been a huge area of investment for us," he stated, noting that while it may not yet involve "real dollars," significant strategic effort is underway.

The CEO revealed that Axis Bank allocates approximately 8-9% of its IT costs to AI initiatives, emphasising the technology's potential impact across the bank's operations. "AI will be huge on both sides of the P&L line," he added.

Economic Outlook and Policy Recommendations

On the macroeconomic front, Chaudhry acknowledged the government's efforts to support growth through GST cuts and the PLI scheme but stressed the need for enhanced focus on research and development. With inflation moving towards 4%, he suggested that "India should allow a slightly higher inflation to support the economy."

Regarding monetary policy, the CEO indicated that the interest rate cutting cycle may be nearing its end, stating, "I believe we're pretty much done with interest rate cuts."