Axis Bank Ltd. is considering scattering its staff across multiple offices as India’s third-largest private sector bank awaits a new headquarters in densely packed Mumbai, according to people with knowledge of the matter.
The lender has failed to find a single office large enough for the roughly 3,000 people currently housed at the eight-storey Axis House building in Worli, the people said, asking not to be identified because the information is private. Axis Bank is looking to vacate the current premises by April, which will then be demolished to make way for its new 32-storey tower expected to be ready in about five years, one of the people added.
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No final decisions have been taken, the people said.
A representative for Axis Bank declined to comment.
The proposed moves underscores a growing challenge for large companies in one of the world’s densest cities to find enough office space to house staff under one roof. Citigroup Inc., HSBC Holdings Plc and other firms have also been hunting for space in Mumbai, people familiar with the matter have said.
Axis Bank’s temporary move will impact teams across banking, investment banking, non-bank finance company and global capability center operations, as well as senior management, the people said. The firm has multiple offices in Mumbai and aims to consolidate its workforce in the new headquarters, the people added.
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Demand for office space has been robust across India, with vacancies across the top eight cities continuing to edge lower, according to an August report by Cushman & Wakefield.
