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."

Axis Bank has successfully completed its postal ballot process, with shareholders approving the appointment of two new directors to strengthen the bank's leadership team. The results, announced on January 19, 2026, demonstrate strong shareholder confidence in the proposed appointments.

Postal Ballot Process and Timeline

The postal ballot was conducted entirely through remote e-voting facilitated by National Securities Depository Limited (NSDL). The voting period commenced at 9:00 AM on December 20, 2025, and concluded at 5:00 PM on January 18, 2026. The bank had set December 12, 2025, as the cut-off date for determining shareholder eligibility, with 889,363 total shareholders on record.

Director Appointments Approved

Shareholders approved two critical appointments that will enhance the bank's governance structure. The first resolution concerned the appointment of Neeraj Gambhir as Executive Director, while the second involved appointing Malavika R. Harita as Independent Director.

Neeraj Gambhir - Executive Director Appointment

The appointment of Neeraj Gambhir (DIN: 00257375) as Director and Whole-time Director designated as Executive Director received substantial shareholder support. This ordinary resolution also covers the payment of remuneration for the position.

Malavika R. Harita - Independent Director Appointment

The special resolution for appointing Malavika R. Harita (DIN: 09005600) as Independent Director received even stronger support from shareholders, reflecting confidence in her qualifications and independence.

Shareholder Participation Analysis

The postal ballot witnessed significant participation across different shareholder categories. Promoter and Promoter Group showed complete support with 100% votes in favor of both resolutions. Public Institutions demonstrated strong participation with 88.42% of their shares being voted, while Public Non-Institutions had lower but meaningful participation at approximately 0.27%.

Scrutinizer Certification

CS KVS Subramanyam of Ahalada Rao V & Associates, Company Secretaries, served as the appointed scrutinizer for the postal ballot process. The scrutinizer confirmed that the remote e-voting process was conducted in a fair and transparent manner, with results compiled accurately based on data provided by the e-voting agency. The votes were unblocked at 5:01 PM on January 18, 2026, in the presence of two independent witnesses.

The successful completion of this postal ballot strengthens Axis Bank's board composition with the addition of experienced professionals in executive and independent director roles, positioning the bank for continued growth and enhanced governance.