Karur Vysya Bank Targets ₹2,000 Crore Personal Loan Book via Axio Partnership
Karur Vysya Bank is targeting a Rs 1,500-2,000 crore personal loan book through its partnership with digital lending platform Axio, MD & CEO B Ramesh Babu told ETBFSI on Aug 22, 2026. The bank's personal loan growth has primarily come through its arrangement with Amazon and Axio. KVB has built a base of around 90 lakh customers through its BNPL portfolio, which peaked at roughly Rs 1,200 crore and currently sits at about Rs 700 crore.
The bank intends to cross-sell personal loans and credit cards to this customer base. Amazon's acquisition of Axio has temporarily slowed the partnership's scaling, with the transition expected to complete in about three months. KVB also plans to take a lending product live end-to-end on RBI's ULI platform within the same timeframe.
- Mid-sized Indian banks increasingly rely on fintech partnerships for retail loan origination at scale
- BNPL customer bases are becoming valuable distribution channels for traditional banking products like personal loans and credit cards