Axis Bank to increase its retail loans

Axis Bank the third largest private bank in India, will be increasing its retail loans and contribute about 25% of the total loan portfolio within next two years. To achieve this ambition, the bank will be rolling out 200-250 branches and around 1,000 ATMs every year.

“We want to grow our retail assets and we hope to tap the potential in smaller town and cities. We are expecting to increase the share of retail loans to 25% of our total advances in about two years,” said Axis Bank executive director (retail banking, SME & agri) SK Chakrabarti.

In 2009-10, the bank’s retail advances stood at Rs 20,823 crore from the year-ago amount of Rs 16,052 crore, a growth of 30% year-on-year. At present, bank total advances amount to Rs 1,04,343 crore which had grown by 28% y-o-y. Bank retail loans include 70% of mortgaged home loans the rest comes from credit cards, auto (in 4-wheeler segment) and personal loans.

To increase its retail baking, the bank is taking some measures to mobilize its business operations further. Chakrabarti informed, “We have now divided business responsibilities in 26 circles instead of four zones as it was earlier. Under one circle, there will be 35-40 branches, which will be easy to handle for a manager.”

He added, “We are looking at the customer as an individual having requirement in all the spaces. Our branch expansion will help us acquire more customers and thereby help multiply our retail banking business”.