AGS Transact Share Price Drops 5.05%; Banks Face ATM Outages

As per news reports, the financial troubles of ATM service provider AGS Transact have led to major disruptions in India’s banking infrastructure, affecting the operations of nearly 38,000 ATMs. 

Several banks, including State Bank of India (SBI), ICICI Bank, and Axis Bank, were struggling to maintain cash availability at these machines.

SBI Among the Worst Affected

State Bank of India (SBI) has been hit the hardest, with nearly 14,000 ATMs becoming unserviceable. Of these, 7,000-8,000 are directly managed by AGS Transact, while the rest rely on the company for cash replenishment services. The lack of operational ATMs has caused inconvenience to customers, especially in areas where alternative banking options are limited.

ICICI Bank Shifts to Other Service Providers

ICICI Bank, which had been facing service issues for months, began withdrawing its ATMs from AGS Transact’s network early on. The bank has successfully moved most of its ATMs to alternative providers like CMS Infosystems and Hitachi India. Reports suggest that ICICI Bank raised concerns about AGS Transact’s declining service quality as early as December 2024.

Axis Bank Faces Service Disruptions

Private lender Axis Bank has around 5,000 ATMs fully managed by AGS Transact, many of which are now at risk of shutting down. With the company unable to meet service commitments, Axis Bank is exploring alternative solutions to mitigate disruptions.

AGS Transact’s Financial Crisis Deepens

AGS Transact is facing severe financial distress, including a default of ₹726 crore in dues. Credit rating agencies like Crisil and India Ratings have downgraded the company, indicating a high risk of default on debt repayments. 

Adding to its troubles, operational creditor Maxwel Aircon India has initiated insolvency proceedings against the firm. The company has also witnessed the resignation of four independent directors due to financial instability.

Impact on Other Banks

Apart from SBI, ICICI Bank, and Axis Bank, other financial institutions like India Post Payments Bank (1,000 ATMs) and Yes Bank (over 500 ATMs) have also been affected. While banks such as HDFC Bank, Federal Bank, Union Bank of India, IDFC First Bank, and Punjab National Bank have experienced some disruptions, the impact on them is relatively lower due to their limited dependence on AGS Transact’s services.

Conclusion

Overall, AGS Transact’s financial crisis has severely impacted India’s ATM network, causing cash shortages across major banks. 

On March 11, 2025, AGS Transact share price (NSE: AGSTRA) opened at ₹13.91, down from its previous close of ₹14.65. At 10:11 AM, the share price of AGS Transact was trading at ₹13.91, down by 5.05% on the NSE. Notably, the stock price touched its 52-week low at ₹13.91, today.

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