Banking 246

Axis Bank reaches one million micro-borrowers mark

Private lender Axis Bank has reached one million micro-borrowers mark and is not keen on acquiring stake in any microlender.

“The bank has touched one million borrowers mark recently and all of them are women who have availed of credit through the joint lending group model,” said, Head, Retail Banking, Rajiv Anand of Axis Bank

“As of now, we don’t believe there is any need for us to take on any equity stake in Micro Finance Institutions (MFI),” he added.

It can be noted that other lenders like Kotak Mahindra Bank and IDFC Bank, among others have acquired stakes in MFIs, while IndusInd Bank is in talks with Bharat Financial (formerly SKS) for what can be one of the biggest acquisitions in the space.

“ As many as 90 per cent of Axis Bank’s borrowers have been tapped by the bank’s dedicated team of 1,600 people, while the rest have come from intermediaries,” Anand said.

“The average ticket size of its micro loans is Rs 18,000 and there is a three-tier rate structure with interest ranging from 12 to 22 per cent, asserting that this is a profitable business for the bank,” he added.

“Axis Bank is present in 18 states with its microlending offerings and is targeting to take it to 22 states by 2020,” he added.

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