India-based private sector lender Axis Bank has decided to shut down its UK subsidiary to focus on its home banking market.
In a regulatory filing to the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), the bank said it will surrender its UK banking licence by April next year.
The filing stated: “This is to inform you that Axis Bank has been reviewing its international strategy and as part of this has adopted a clear objective to focus on the Indian banking market and harness the potential there.”
In a separate statement, the bank said that it will treat its Axis Bank UK employees and customers with transparency and fairness, throughout this wind down process.
Launched in 2013, Axis Bank UK reported a net profit-after-tax of INR490.6m ($6.5m) and INR2.98bn ($400m) in total income in FY19.
The UK subsidiary had had INR49.04bn in liabilities and INR57.26bn in total assets.
The exchange filing also stated that the latest move will not affect the operations or financial position of the bank.
The filing added: “Kindly note that Axis Bank UK is not a material subsidiary of the bank, in terms of the listing regulation and that the above decision will not have any material impact on the operations or the financial position of the bank.”
In last two year, Indian banks have increasingly shuttered their foreign subsidiaries and branches as they grapple with economic challenges to conserve capital.
Last month, the Indian government-owned Bank of Baroda (BoB) also closed its business in Ghana and surrendered its licence.