Axis Bank anticipates disbursing over ₹10,000 crore in MSME loans via the Emergency Credit Line Guarantee Scheme 5.0, according to Prashanth T S, group head, mid-corporate and medium enterprises group at the private-sector lender. As reported by The Economic Times, the bank has already started processing MSME customer requests and expects decent flow of requests to continue. The ₹10,000 crore opportunity represents the eligible amount across MSME companies, with the bank's current MSME portfolio standing at ₹3 lakh crore.
According to The Economic Times report, approximately 50-60% of Axis Bank's ₹3 lakh crore MSME portfolio comes from pure working capital requirements. The bank's MSME portfolio has been expanding at a compounded annual growth rate of 24%, demonstrating strong market presence. Axis Bank currently holds an overall market share of more than 8% in the MSME segment, with this share rising to more than 9% on an incremental basis.
As reported by The Economic Times, Axis Bank remains on course to add over 500 branches by FY27, recognizing the importance of physical presence for reaching underserved MSME clients. The bank has already added approximately 400 branches through FY25 and FY26. Brick-and-mortar touchpoints are considered crucial to expanding loans to MSMEs, many of which are in areas that remain under-served by private banks.
Axis Bank successfully raised $800 million through a dual tranche dollar bond, tapping into the Reserve Bank of India's concessional swap facility. The bank secured $500 million via an Additional Tier 1 perpetual issue and $300 million from a five-year senior bond. Both issuances attracted significant investor interest, closing within initial price guidance and highlighting the bank's strong position in international markets.
The Reserve Bank of India has mandated uniform prudential treatment for all credit facilities, including those disbursed via UPI, closing a regulatory loophole allowing banks to offer lighter treatment to UPI-linked credit. Now, the nature of the credit, not the technology, dictates capital adequacy and provisioning, ensuring consistent regulation across all credit products. Additionally, the RBI has enhanced credit access for MSMEs by allowing financiers on TReDS platforms to secure guarantee cover for financed receivables, aiming to reduce credit risk and improve liquidity in the receivables financing ecosystem.
