Private sector bank, Axis Bank is planning to raise its retail loan book such that it comprises 25% of the total loan book of the bank over the next 2 years. This means the bank plans to increase its focus on personal loans.
With this aim, the bank plans to add another 200-250 branches and about 1000 ATMs to its kitty each year.the bank has just signed the biggest ATM outsourcing deal in India.
SK Chakrabarti, Axis Bank executive director (retail banking, SME & agri) said, “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”.
The bank posted a retail loan increase worth Rs. 20,823 crore for the FY 2009-10 which means 30% increase on y-o-y basis as against Rs 16,052 crores retail loan growth by the bank last year.
The total loans of the bank presently amount to Rs 1,04,343 crore, which went up by 28% y-o-y.
To develop its retail banking portfolio still more, the bank has taken measures to amass its business operations still more. Chakrabarti said, “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 said further, “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”.