Axis Bank Ditches Loans-Only

Axis Bank is expanding its corporate play beyond loans by offering a range of services to companies and their promoters. The bank is handling collection, payments, trade finance, taxes, and salary accounts, as well as offering investment-banking and wealth-management services.

The bank has a corporate salary franchise, investment-banking arm Axis Capital, and Burgundy Private wealth-management platform, which it is using to expand relationships across corporate groups. This approach allows Axis Bank to target the diverse corporate wallet, which includes not only the company's own requirements but also its ecosystem, comprising dealers, suppliers, employees, buyers, and sellers.

Axis Bank's strategy is to provide a comprehensive suite of services to corporates, rather than relying solely on undercutting competitors on interest rates. By doing so, the bank aims to deepen its relationships with corporate clients and increase its share of their business.

## Why it matters The move is significant as it allows Axis Bank to tap into the broader corporate wallet, which includes a wide range of services and requirements beyond just loans. By providing a one-stop solution for corporates, Axis Bank can increase its revenue streams and reduce its dependence on interest income.

The bank's approach is also a recognition of the fact that every corporate has a diverse ecosystem, with multiple stakeholders and requirements. By catering to these needs, Axis Bank can position itself as a trusted partner for corporates, rather than just a lender.

## What happens next As Axis Bank continues to expand its corporate play, it will be interesting to see how the bank's relationships with corporates evolve. With its comprehensive suite of services, Axis Bank is well-placed to increase its market share and deepen its relationships with corporate clients.