Axis Bank has declared an infusion of capital amounting to Rs. 1,500 crore (US$ 161.52 million) into its consumer lending arm, Axis Finance, indicating a tactical change in its strategy regarding the non-banking financial company (NBFC) sector. The funding will be carried out via a rights issue in one or multiple stages and is anticipated to be finalized by March 31, 2027. This action occurs as the bank reevaluates its previous strategy to reduce its stake in the subsidiary, demonstrating restored confidence in expanding its consumer lending operations. The extra capital injection is intended to enhance Axis Finance’s balance sheet and facilitate its growth in the retail and consumer credit sectors. The choice comes after recent regulatory changes by the Reserve Bank of India, which loosened rules concerning overlapping business functions between banks and their subsidiaries, permitting these activities under distinct frameworks. This change in policy led Axis Bank to halt its previous plans for a stake sale and concentrate on internal capital backing instead. Axis Finance has shown consistent growth in recent years, achieving increasing turnover and a robust asset base, establishing it as a crucial entity for the bank's retail lending goals. The subsidiary is anticipated to deliver an updated growth plan to the board, leading to a reassessment of its future capital needs, which will strengthen Axis Bank’s long-term dedication to the non-banking financial company (NBFC) sector