Axis Bank not in race to acquire CreditAccesss Grameen

MUMBAI: Axis Bank has said that it is not in the race to acquire CreditAccess Grameen which has been put on the block by promoters, denying market reports that it had submitted a bid for a controlling stake in the microfinance lender.

In a stock exchange filing dated February 22, 2026, the bank said it had received queries regarding bidding for a stake in CreditAccess Grameen. “The Bank has neither submitted nor is planning to submit, any bid for a stake in CreditAccess Grameen Limited,” it said. The bank added that there was no material event requiring disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and that it would continue to comply with disclosure norms.

The clarification follows reports in early February that Axis Bank had bid for the 66.28% promoter stake in CreditAccess Grameen, a move that could have made the microfinance institution a wholly owned subsidiary. The bank denied any such bid or plans between Feb. 21 and 22.

CreditAccess Grameen’s promoter, CreditAccess India BV, holds about 66.28% to 66.43% in the company. The Netherlands-based entity is backed by investors including Olympus Capital Asia, which holds around 15%, and the Asian Development Bank, which owns about 9%, along with high-net-worth individuals. The remaining shares are held by institutions such as mutual funds, which own about 18%, and other investors with roughly 11%.

Promoters began exploring a stake sale around October 2025, marking a second attempt after an earlier process in 2024 was halted amid stress in the microfinance sector. The proposed transaction is aimed at providing an exit to long-term investors as the fund approaches the end of its life. Bank of America is advising on the sale process. The deal is said to seek a valuation of about 2.6 times price-to-book, translating into roughly Rs 14,000 crore, though reports suggest that initial interest from banks has not translated into many bids.

CreditAccess Grameen, India’s largest standalone NBFC-MFI with assets under management of over Rs 26,000 crore, has been seen as a strategic fit for banks seeking to improve net interest margins and meet priority sector lending targets. Reports had suggested that an acquisition by Axis Bank could have helped address its sub-4% net interest margins and priority sector lending shortfall in the third quarter of FY26. The proposed structure was seen as similar to IndusInd Bank’s acquisition of its microfinance arm, allowing separate operations under the bank’s ownership.

The company traces its origins to Grameen Koota Financial Services, founded in 1991 in Karnataka by Alatur Ravindra and Udaya Kumar Hegde. It later evolved into CreditAccess Grameen after a merger and listing, with CreditAccess India BV established as a professional investment vehicle backed by more than 250 shareholders to drive growth.