The Banking and Strategy Initiative

Chillin' out till it needs to be funded

Axis Bank quits PE business | Advantage Infrastructure

closer to my chawl in this unknown highrise in Bangalore suburbs, even Axis Bank has had no success with what it was running a s a PE operation. Its funds would have raised close to $1b in 2008 and later even as Shikha Sharma was being crowned from the succession battle at ICICI Bank into AXIS Bank in 2009, funds were gathered for a PE thrust into the now tractable areas in Power, Highways and other infrastructure. However a first Infrastructure Fund attracted AXIS bank and a few PSBs for the $148 million fund

Where ICICI Bank persona of this decade Chanda Kochhar made a few noises about $250 billion investment required in India, less than half the conservative Public estimates for the gap in Infrastructure funding and one-fourth of our own estimate..the Axis Bank competitor in the hot seat, Shikha Sharma went ahead and decried one of its most lucrative sources, suggesting that

“As part of the strategic review of the bank’s medium-term plans, we are evaluating the way forward for the private equity business; more so in the context of the emerging regulatory landscape globally, and in India. We are in conversation with the key investors in the fund to look at appropriate structures going forward,”

Taking pecuniary advantage of the Volcker night cover, the bank is as usual making almost assinuations on the regulatory landscape to get out of a small thorn nettling its bigger reach and giving rise to media speculation of management buy out to cover the ground


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