 "Axis Bank sees corporate credit revival")
Leading private sector lender Axis Bank is expecting a rebound in long-term corporate credit demand in the next six months on projections of buoyant economic growth for 2015-16.
"We feel in the next six months, long-term corporate credit would pick up as projections for economic growth are quite favourable. Once the economy revives, the demand for long-term corporate credit will also go up," said Sidharth Rath, president (treasury, business banking and capital markets) at Axis Bank.
The Economic Survey has forecast a GDP (gross domestic product) growth in the range of 8.1-8.5 per cent for 2015-16 on the back of reforms already taken by the government of India and more reforms in the offing.
Axis Bank expects to grow faster than the industry average in retail credit. The bank's retail loan portfolio grew by around 30 per cent in the third quarter ended December 31, 2014.
Commenting on the bank's performance in Odisha, Rath said, "We have a total deposit base of Rs 8,000 crore and advances of Rs 5,000 crore (as on December 31, 2014) in the state. Axis Bank has a CD (credit deposit) ratio of 62 per cent in the state and our priority sector lending is around Rs 2,000 crore."
The bank has advanced loans worth Rs 800 crore to SMEs (small & medium enterprises) and the segment is clocking year-on-year growth of 20 per cent. Odisha contributes 15 per cent to the bank's overall advances to the SME sector in the eastern region. Under Pradhan Mantri Jan Dhan Yojana (PMJDY), the bank has opened 22,000 accounts in the state.
Axis Bank currently has a network of 109 branches in Odisha. It plans to add 20 new branches in the next fiscal.
"We feel in the next six months, long-term corporate credit would pick up as projections for economic growth are quite favourable. Once the economy revives, the demand for long-term corporate credit will also go up," said Sidharth Rath, president (treasury, business banking and capital markets) at Axis Bank.
The Economic Survey has forecast a GDP (gross domestic product) growth in the range of 8.1-8.5 per cent for 2015-16 on the back of reforms already taken by the government of India and more reforms in the offing.
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On concerns surrounding stressed loans, Rath said, "Our NPA stands at 0.4 per cent of gross advances. The NPAs have bottomed out but in any case, we are maintaining a cautious approach in lending."
Axis Bank expects to grow faster than the industry average in retail credit. The bank's retail loan portfolio grew by around 30 per cent in the third quarter ended December 31, 2014.
Commenting on the bank's performance in Odisha, Rath said, "We have a total deposit base of Rs 8,000 crore and advances of Rs 5,000 crore (as on December 31, 2014) in the state. Axis Bank has a CD (credit deposit) ratio of 62 per cent in the state and our priority sector lending is around Rs 2,000 crore."
The bank has advanced loans worth Rs 800 crore to SMEs (small & medium enterprises) and the segment is clocking year-on-year growth of 20 per cent. Odisha contributes 15 per cent to the bank's overall advances to the SME sector in the eastern region. Under Pradhan Mantri Jan Dhan Yojana (PMJDY), the bank has opened 22,000 accounts in the state.
Axis Bank currently has a network of 109 branches in Odisha. It plans to add 20 new branches in the next fiscal.