Categories: Banking

Axis Bank-PayNearby collaborate for their priority sector lending goals

Axis Bank-PayNearby collaborate: A top executive of Axis Bank stated that partnerships like the one with branchless banking network PayNearby will help the private lender achieve its lending goals for priority sectors. By utilising the distribution-as-a-service network of 50 lakh micro enterprises provided by PayNearby, Axis Bank hopes to organically reach its lending goals for its key sectors.

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Axis Bank-PayNearby collaborate: Key Points

Through the partnership, current and savings accounts will be opened for retail and individual consumers in remote locations.
According to Reserve Bank of India standards, the priority sector, which includes agriculture and micro, small, and medium-sized businesses, should receive 40% of net bank credit.
How many of PayNearby’s 50 lakh micro enterprises would be joined by Axis Bank as a result of the relationship was a question Sharda would not answer.
According to Sharda, the onboarding of these businesses will follow Axis Bank’s internal checks and balances, and the bank’s logo would be displayed in retail establishments.
At the conclusion of the first quarter of the current fiscal year, Axis Bank’s portfolio of rural loans was Rs 58,800 crore, up 4% over the previous quarter.
The lender’s goal is to grow more quickly than the rest of the market and the rest of the branch network in the sector. Of Axis Bank’s 4,759 branches, 2100 are designated as Bharat Bank branches.
While contributing to an additional 25% of retail disbursements, the Bharat Banking segment saw annualised loan growth of 18%. Additionally, the rural deposits increased by 19% from the previous year.