Axis Bank added 400 branches in FY26 even as its total workforce declined 3% from a year earlier, highlighting a change in how the lender is expanding its network. The contrast points to a broader shift in banking growth, where physical expansion and leaner operations can happen at the same time.
Technology-led efficiency gains at employee and branch levels helped drive the change, Chief Executive Officer Amitabh Chaudhry said in the earnings call. The bank also said it improved operating productivity during the year.
The update matters because branches remain central to customer acquisition, lending and deposits, even as banks rely more on technology to manage costs and improve service.
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Efficiency Shift
"While we added 400 branches during the year, our total workforce declined by 3% year-on-year, driven by technology-led efficiency gains at both employee and branch levels," Chaudhry said.
Axis Bank's cost-to-assets ratio declined to 2.28%, down 18 basis points from a year earlier, while the bank said operational productivity improved.
Growth Model
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The lender opened 166 branches in the March quarter, taking the full-year addition to 400. That suggests branches remain part of the bank's expansion plan even as more processes move to digital channels.
Technology and digital spending rose 14% year-on-year and accounted for 10% of total operating expenses, the bank said.
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Road Ahead
Axis Bank said it is entering FY27 focused on disciplined growth while remaining watchful of global uncertainty and market volatility. It also said it would continue investing in technology, people and capabilities to support long-term outcomes.
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