The RBI panel noted that while opening an account in the name of a society in 2009, the bank failed to obtain certain mandatory documents as required under its KYC Master Circular on customer identification norms. However, considering that Axis Bank has since implemented corrective and system-level improvements, the regulator chose to issue only a caution rather than impose a penalty.

The central bank has advised Axis Bank to exercise “extreme caution and diligence” in adhering to KYC norms and ensuring full compliance in the future.

Axis Bank said it has already taken necessary corrective steps and does not expect any material impact on its financial or operational performance due to the letter.

Axis Bank is the third-largest private sector bank in India. As of 30th June 2025, the bank's distribution network comprised 5,879 domestic branches and 14,134 ATMs. The Bank’s Axis Virtual Centre is present across eight centres with over 1,825 Virtual Relationship Managers as on 30th June 2025.

Axis Bank reported a 3.79% drop in standalone net profit to Rs 5,806.14 crore on 6.91% increase in total income to Rs 38,321.57 crore in Q1 FY26 over Q1 FY25.

Shares of Axis Bank rose 1.08% to settle at Rs 1180.10 on Friday, 10 October 2025.