Axis Bank is preparing to replace high-cost domestic deposits with foreign-currency funds raised from the Indian diaspora, according to Managing Director and CEO Amitabh Chaudhry.
The lender plans to deploy these cheaper liabilities over the coming months to finance growth in infrastructure and technology sectors, a move designed to alleviate pressure on net interest margins amid competitive deposit pricing in India.
Chaudhry’s comments highlight a broader strategic pivot among Indian private lenders seeking stable, lower-cost funding sources.
By tapping into the substantial savings of the non-resident Indian community, banks can reduce their reliance on expensive retail deposits, which have seen intense competition and rising costs in recent quarters.
This shift supports the bank’s ability to maintain lending growth without eroding profitability.
The strategy aligns with Axis Bank’s recent efforts to diversify its funding mix.