Axis Bank, one of India’s leading financial institutions, has disclosed plans to enhance its small-ticket loans, crop loans for small farmers, and microfinance business loans aimed at low-income women. The announcement was made by the bank’s CEO, Amitabh Chaudhry, at the India SME 100 Awards earlier this week.
The bank has established a ‘Bharat Bank’ unit that focuses on rural-centric products. This unit operates in collaboration with Common Service Centers (CSCs), village entrepreneurs, and agri-commodity ecosystems. The initiative is part of Axis Bank’s broader strategy to transform the banking paradigm through digital innovations and robust digital infrastructure, enhancing customer experiences.
As of September 2023, Axis Bank’s Micro, Small, and Medium Enterprises (MSME) book stands at over Rs 2 lakh crore, a significant component of the total lending book. The bank’s Priority Sector Lending (PSL) in agriculture exceeds Rs 91,000 crore.
In addition to supporting MSMEs, Axis Bank is committed to equitable lending practices. It has provided approximately Rs 53,000 crore in loans to weaker sections of society. These include artisans, village and cottage industries, and individual beneficiaries.
The bank’s increased focus on small-ticket loans and microfinance business loans aligns with its ongoing efforts to support the growth of smaller enterprises and promote financial inclusivity in rural areas.
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