Axis Bank Ltd. is exploring the option of dispersing its staff across multiple offices as the third-largest private bank in India anticipates constructing a new headquarters in densely populated Mumbai, according to informed sources.
It is reported that the bank has been unable to find a single space large enough to accommodate approximately 3,000 people who currently work in the eight-story Axis House in Worli. Sources, who wished to remain anonymous due to the confidentiality of the information, added that Axis Bank plans to vacate the current premises by April. After this, the building will be demolished to make way for a new 32-story tower, which is expected to be ready in about five years.
According to these individuals, no final decisions have been made yet, and a representative of Axis Bank declined to comment on the situation.
The proposed changes highlight a growing problem for large corporations in one of the world's most densely built cities—finding sufficient office space to house all personnel under one roof. According to sources familiar with the matter, other companies such as Citigroup Inc. and HSBC Holdings Plc are also actively searching for suitable spaces in Mumbai.
The temporary measure that Axis Bank will take will affect teams in banking, investment banking, non-banking financial sectors, and global center of excellence operations, as well as senior management. Sources noted that the firm has several offices in Mumbai and aims to consolidate its workforce in the new headquarters.
According to an August report by Cushman & Wakefield, demand for office space in India remains high, with vacancy rates continuing to decline in the eight largest cities.