Axis Bank’s corporate loans grew 20 percent year-on-year to ₹3.49 lakh crore in the second quarter, up sharply from 8-9 percent growth in the last two quarters.
In a trend reversal from the past year, major banks have reported robust growth in their corporate loan portfolios during the second quarter of 2026, senior bankers say.
Subrat Mohanty, ED at Axis Bank, said while the lender was cautious on corporate loan pricing, there were some lending opportunities in the second quarter and the bank continues to see these opportunities progressing.
“In the second quarter, there were few good opportunities that came our way that we had not seen in the past. Therefore, the growth number seems a bit exaggerated, but overall we see that there are opportunities in the wholesale segment based on strong relationships and trends that we see in certain sectors where there is movement among customers in terms of making new investments.”
Axis Bank’s corporate loans grew 20 percent year-on-year to ₹3.49 lakh crore in the second quarter, up sharply from 8-9 percent growth in the last two quarters.
Rajneesh Karnatak, MD and CEO of Bank of India, said the lender has a corporate loan pipeline of over ₹50,000 crore and disbursements will continue to be made in the third and fourth quarters. The bank’s corporate loan book grew 12 per cent year-on-year to ₹2.49 lakh crore in the second quarter, up from 4 per cent growth in the last quarter.
Loan proposals
“We are seeing loan proposals where sanctions have occurred and disbursements are yet to occur, or where we have given in-principle approval and the proposal is in the final stages. They mainly relate to data centers, warehouses, solar panels, batteries, EVs, natural gas, rental rebates and copper refineries and oxygen plants. These are some of the proposals where sanctions have occurred and are pending payouts…’.
HDFC Bank CFO Srinivasan Vaidyanathan said the lender has been repositioning its balance sheet in recent quarters and wholesale loan prices were extremely competitive at the time. “So we were much more careful in selecting what we wanted, but at the same time we continued to maintain our relationship with different companies. That’s history, if you see the trend over the last four to five quarters, there has been modest growth,” he said.
“Now we have shown higher growth this quarter. That said, there are times when there is demand and we have relationships with most companies in the country, so we have been participating in credit activities there at a reasonable price. Third, while there has been a modest uptick in private capital investment, we have largely participated in working capital loans…,” he added. The bank’s corporate loans rose 6 per cent year-on-year to ₹7.41 lakh crore in the second quarter, up from over 2 per cent growth in the first quarter and a 4 per cent decline in growth in the fourth quarter of 2025.
Published on October 19, 2025
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