A recent press report said that private sector lender Axis Bank has planned to increase its lending process to micro finance institutions (MFIs). The bank is also looking towards the idea of direct lending to self help groups (SHGs).
Ms. Shikha Sharma, CEO and MD of the bank said that the bank’s slowdown on lending to the MFI sector due to the recent crisis. Reports said that Axis bank had earlier reduced its exposure to the sector because of the rising number of defaults from MFIs. It has now decided to offer loans to the MFIs.
Ms. Sharma said that the aim of the bank is to achieve credit off take target of 18% set by regulator Reserve Bank of India for the current fiscal.
Axis Bank was the first of the new private banks which started its operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI – I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Limited, The New India Assurance Company Limited, The Oriental Insurance Company Limited and United India Insurance Company Limited. The bank is familiar for its loan products such as Axis home loans, Axis Personal loan, Axis car loan etc.