Axis Bank plans to extend its presence in rural retail lending


Axis Bank is planning to deepen its presence across the country’s rural regions through what its management calls ‘deep geo strategy’. Under the new plan, the bank will identify key branches and dovetailing those branches to help the bank’s growth.

The president and head, retail lending and payments, Axis Bank, Sumit Bali stated that the bank has identified some of the rural and semi-urban markets as part of the deep geo strategy markets where they will plan an asset-led strategy to scale up its banking assets and liabilities. The bank has identified 577 branches which is a third of their branches and have launched this asset-led strategy. The Disbursements are up about 26% year-on-year, growth continues to be pretty strong and it has taken very good shape.

The project is part of the bank’s philosophy of combining the assets and liabilities with technology to make sure that it becomes a significant player in the markets. The bank identified the strategy as a significant player in the rural part of the country and the bank have made a strategic investment in the CSC (common service centres). The move will help the Axis Bank to set up a strong distribution footprint across the country. 

For making a strong distribution network Axis Bank has identified close to 5,000 village-level entrepreneurs as distribution points across India. The small business banking, gold loans, asset products, home loans and two-wheeler loans are distributed by using these branches. Through this project, Eighty-eight percent of the loans originated are secured loans. The project also generates priority-sector and Agri assets in the long run.

As consonance with the December 2020 presentation, the bank has a belief that public data and digital infrastructures will help transform banking services and providing products going forward. The sachetisation of financial services and developing an ecosystem of services small businesses will transform banking services. The bank presently has a 110-strong tech team and an 800-person dedicated digital team that help the bank to build the banks digital platforms and ecosystem services.


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