Axis Bank has outlined its expectations for deposit growth alignment with credit expansion over the medium term, providing insights into the bank's strategic planning amid evolving market conditions.

Growth Alignment Forecast

The bank anticipates that deposit growth will align with credit growth within a timeframe of 15 to 18 months. This projection indicates the institution's confidence in achieving balanced growth across its core banking operations.

RBI Liquidity Support Dependency

The realization of this growth alignment is contingent on continued liquidity support from the Reserve Bank of India. The bank's forecast acknowledges the critical role of central bank policy measures in facilitating optimal deposit and credit growth dynamics.

Strategic Implications

This guidance reflects Axis Bank's approach to managing the balance between deposit mobilization and lending activities. The bank's projection suggests a measured approach to growth that takes into account regulatory support and market liquidity conditions.

The forecast provides stakeholders with visibility into the bank's medium-term expectations for core banking metrics, emphasizing the importance of central bank policy continuity in achieving balanced growth objectives.

Axis Bank has announced its strategic portfolio targets, outlining specific composition goals for its lending book. The bank aims to achieve a retail book balance ranging from 58% to 60%, indicating a strong focus on retail banking operations.

Portfolio Composition Strategy

The bank's strategic framework includes maintaining a wholesale book composition of 23% to 25%, complementing its retail banking focus. This balanced approach demonstrates Axis Bank's commitment to diversifying its lending portfolio across different customer segments.

Growth Projections

Axis Bank has projected that retail growth is expected to increase, aligning with the bank's strategic emphasis on expanding its retail banking operations. This growth trajectory supports the bank's overall portfolio composition objectives and reflects its confidence in the retail banking segment's potential.

Strategic Focus

The announced targets highlight Axis Bank's strategic direction toward strengthening its retail banking presence while maintaining a measured approach to wholesale banking. This portfolio strategy positions the bank to capitalize on retail banking opportunities while ensuring balanced risk management across different business segments.