SynopsisAxis Bank expects credit growth to exceed the industry average this fiscal year. Strong demand stems from corporate sectors and retail borrowers seeking gold loans. Data centres and manufacturing are driving corporate credit expansion significantly. Retail growth is fueled by gold loans and borrowers from smaller cities. The bank is also preparing two key businesses for potential public listings.ReutersFILE PHOTO: Axis bank CEO, Amitabh Chaudhry reacts during a Meta conference in Mumbai, India, September 20, 2023. Axis Bank, India's third-largest private bank by assets, expects credit growth to expand 300 bps faster than the industry average in the current fiscal year on strong corporate and retail demand, its chief executive said.Demand is coming from sectors including data centres and small businesses as well as retail borrowers looking to monetise their gold, Amitabh Chaudhry, the chief executive of Axis Bank, said ‌in an interview at ⁠the company's ⁠headquarters in Mumbai on Monday. Credit growth in India's $3.36 trillion banking sector accelerated to 18.3% year-on-year in June 2026, the latest data available, from 9.3% a year earlier, supporting the South Asian economy in a year when business has been sluggish in many countries including the U.S., China and Brazilamid growing economic and geopolitical challenges."The headline growth is coming from three places: large corporates, non-bank lenders, and gold loans," Chaudhry said. Credit is growing at more than 15% even excluding these segments, suggesting broad-based demand, he said. The credit boom is likely to boost earnings at Axis, which reported a standalone net profit of 71.14 billion Indian rupees ($738.89 million) for the three months ended June, ⁠compared with 58.06 ‌billion rupees a year earlier. Net interest income over the period rose 8% to 146.46 billion rupees, aided by a 19% rise in domestic loans. A central bank window to draw subsidised dollar deposits is likely to further boost ⁠credit growth in the banking sector, Chaudhry added.Also Read: Axis Bank expands corporate play beyond loans, shuns price warFROM DATA CENTRES TO GOLDData centres, renewable energy, manufacturing and urbanisation are driving corporate credit demand, while gold loans and borrowers from smaller cities are fuelling retail growth, Chaudhry said. Axis Bank is selectively expanding data-centre lending, focusing on developers with strong equity backing, technical expertise and long-term take-or-pay contracts. Such contracts, where the supplier agrees a minimum quantity of goods that a buyer has to purchase every year, are typically agreed for long, extensive projects.Chaudhry cautioned the sector was not a "jackpot" and required underwriting discipline."It is seen as a huge opportunity and a lot of players have entered it," he said. "It might not be such an easy place to play."Among retail segments, loans against ‌gold surged 94% year-on-year in June. Chaudhry said the gold-linked demand did not signal economic stress, with borrowers instead taking advantage of higher gold prices and lower rates than those available under unsecured personal loans.Also Read: Citigroup, Axis Bank team up to leverage NRI deposits as RBI dollar inflows surge"Earlier, people would use gold ​to borrow only ​in extreme circumstances. Now they see it ⁠as a very legitimate way to walk in and borrow," he said.IPO PLANS FOR KEY BUSINESSES Axis Bank, which has units ranging from investment banking to insurance, is preparing two for potential listings, Chaudhry said. Axis is evaluating an internal restructuring involving Max Financial, its joint venture partner in Axis Max Life Insurance, after a change in regulations allowed non-insurance and insurance companies to merge, he said. The move could potentially result in the life insurer being listed within 12 to 18 months.Axis Finance, which has more than 500 billion rupees in assets, is likely to list after its assets reach 1 trillion rupees, the level at which it would be required to do so under Reserve Bank of India rules, Chaudhry added. At the firm's current pace of growth, that could happen within the next couple of years, he said.Read More News on...moreless