Mumbai: Practically a 12 months after Axis Financial institution sealed its acquisition of Citibank’s bank card enterprise, the non-public sector lender is witnessing exits of some senior figures who joined as a part of that merger.
Arjun Chowdhry, group govt in control of prosperous banking, playing cards, funds and retail lending at Axis Financial institution, has resigned citing his want to pursue an entrepreneurial path, in keeping with a inventory trade notification on Friday. Alongside, Arvind Singla, president for retail banking operations on the financial institution, has additionally stepped down, in keeping with two individuals conscious of the matter.
Each bankers had joined Axis from Citibank as a part of the merger course of, which started two years in the past. At Citi, Chowdhry was head, shopper financial institution, and Singla was managing director and head of shopper operations.
Their exits come at a time when the financial institution is dealing with challenges in its retail enterprise, together with bank cards. The take care of Citi had made Axis the nation’s fourth-largest issuer of bank cards. Nevertheless, the financial institution slowed down its card issuances over the previous 12 months following asset high quality considerations. Bank card issuances fell to a lot lower than one million playing cards per quarter from Q1 of FY25 onwards. In earlier quarters, greater than 1 million playing cards have been issued per quarter.
In response to the financial institution’s investor presentation, on the finish of the June quarter, its bank card portfolio grew 1% sequentially and a pair of% year-on-year (y-o-y) to ₹43,517 crore, in comparison with 4% y-o-y development in Q3 ended December.
Alongside, NPAs (non-performing property) within the total retail mortgage portfolio rose to 2.1% in Q1 of FY26 from 1.6% within the earlier quarter, per information from the investor presentation, which the financial institution attributed to modifications in technical classification of loans. Total NPA—together with all loans—stood at 1.57% on the finish of first quarter of FY26 in comparison with 1.28% within the earlier quarter.
The 2 bankers and Axis Financial institution declined to touch upon Mint’s queries when contacted.
“We see a normal development, significantly in unsecured the place there’s stress throughout a number of segments–that stress is being pushed by indebtedness, it’s being pushed by increased levels of loans which are not essentially with the ability to be serviced by these clients,” mentioned Amitabh Choudhary, managing director and chief govt officer, Axis financial institution within the Q1 FY26 earnings name. “It is too early within the cycle to take a name both method. And I believe the best way to take a look at that is that each lender’s classic distribution will probably be totally different.”
That mentioned, the administration has assured an enchancment in asset high quality within the unsecured mortgage portfolio. The financial institution has additionally made further provisions to offset any improve in dangerous loans, as talked about within the analyst name.
“We’ve got seen enchancment on the bank card facet and stabilization within the private mortgage facet,” mentioned Choudhary. “We did point out the truth that all the important thing indicators, which incorporates bounce charges, early delinquency, assortment efficiencies have all proven an bettering development and that’s one thing that gives us consolation.”
Analysts proceed to be bullish on Axis Financial institution. “The popularity of present asset high quality in Axis Financial institution just isn’t straight linked to the Citi portfolio,” mentioned Asutosh Mishra, head institutional equities analysis, Ashika Inventory Broking, including that total, the Citi portfolio on the asset facet has primarily supported the financial institution in strengthening its place within the bank card section.
“Furthermore, many of those clients belong to high-rated segments, which haven’t proven any indicators of asset high quality stress,” Mishra mentioned.
Axis Financial institution had accomplished the merger with Citibank’s shopper companies final 12 months. In a deal valued at ₹1,11,603 crore, Axis had acquired the bank card, loans, wealth administration and retail operations companies of Citibank. The financial institution added 2.5 million bank cards of Citibank with a portfolio of ₹8,900 crore, taking its total excellent bank cards to 10.6 million and internet portfolio to ₹24,400 crore, in keeping with its investor presentation of 30 March 2022.
Axis Financial institution shares have risen practically 30% for the reason that completion of acquisition of Citibank’s shopper portfolio in March 2023.
