West Asia conflict lifts bank working-capital demand
West Asia conflict has lifted corporate working-capital demand at banks by 15-20% as oil-linked costs and shipping delays extend cash-conversion cycles. OI Charts data showed mixed futures positioning across selected banking stocks on 29 Oct 2026.
pre-market1 source ↓machine-written, see hownot a recommendation
- AXISBANK close
- ₹1,225
- On the day
- +0.41%
- Futures OI, short covering
- -0.0%
- Put-call ratio
- 0.89
- Max pain
- ₹1,230
Indian banks have seen corporate working-capital demand rise 15-20% over the past several months as the escalation of the West Asia conflict increased raw-material costs and extended shipping timelines. Bankers said the trend provided an additional boost to corporate loan growth in the September quarter, with mid-sized and large companies facing higher funding needs on both the purchase and sales sides.
Working-capital requirements for many companies rose 12-15%, while some businesses reported increases of up to 20%. Higher oil-linked input costs raised the value of inventory and purchases, while longer transit times delayed collections and stretched cash-conversion cycles. That combination requires companies to keep more money tied up in operations, supporting demand for bank-funded working capital. The development is particularly relevant for corporate lenders 💼 and sectors exposed to imported inputs, freight costs and supply-chain disruption ⚓.
Anu Aggarwal, president and head of corporate and transaction banking at Kotak Mahindra Bank, said the conflict had elongated working-capital cycles for Indian corporates. The reported increase points to stronger credit utilisation, although the benefit to lenders depends on borrowing costs, asset quality and how long the disruption lasts. For companies, higher financing needs can support continuity of operations but also increase interest expenses and liquidity pressure.
OI Charts data for 29 Oct 2026 showed mixed positioning across selected banking stocks. Axis Bank closed at ₹1,225, up 0.4%, with futures showing short covering; its put-call ratio was 0.89, with the largest call open interest at ₹1,260 and put open interest at ₹1,190. ICICI Bank rose 0.7% to ₹1,387, while futures open interest fell 2.2% in short covering; its ₹1,400 strike carried the largest call and put open interest, with max pain at ₹1,400. RBL Bank gained 3.1% to ₹360.90, alongside a 3.5% increase in futures open interest indicating long build-up. Its largest call open interest was at ₹360 and largest put open interest at ₹370.
Investors will watch shipping costs, oil-linked input prices, corporate loan utilisation and upcoming bank disclosures for evidence that the working-capital cycle remains extended. The ₹1,260 and ₹1,190 levels for Axis Bank, ₹1,400 for ICICI Bank and ₹360-₹370 for RBL Bank mark the key option-interest zones in the current 23 Nov 2026 expiry.
Source: The Economic Times, 29 Oct 2026
Not investment advice. For informational purposes only.