Axis bank hits 1 million micro-borrowers mark, rules out buyout

Private lender Axis Bank has touched 1 million micro-borrowers mark and is not keen on acquiring stake in any microlender, a senior official has said.

Three years after getting into the segment, the bank touched 1 million borrowers mark recently and all of them are women who have availed of credit through the joint lending group model, Axis Bank’s retail banking head Rajiv Anand told PTI.

Stating that the book stands at Rs 1,100 crore now, he hinted that the bank will focus on expanding the business organically rather than buying into a microfinance company.

“As of now, we don’t believe there is any need for us to take on any equity stake in an MFI,” Anand said.

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% 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 …read more