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Axis Bank- country's third largest private sector lender -- plans to strengthen its retail and corporate operations in this financial year even though it does not expect a remarkable recovery.
In its annual report for 2013-14, Axis Bank said: "While the medium term prospects point towards an improving growth scenario, given the improved macroeconomic fundamentals it is likely that there will only be a modest economic recovery in fiscal 2015. Globally, many emerging markets still look vulnerable and periodic flights to safe haven US Government securities could result in portfolio fund outflows."
The bank expects that with the economic recovery and a moderating inflation, financial savings will improve which in turn will push up bank deposits in fiscal 2015. Axis Bank expects deposit growth in the range of 14-15% and credit growth between 15-16% in this financial year. In the last financial year, deposit growth in the system was 14.6% whereas credit growth was 14.3%.
Retail and Small and medium enterprise continues to be the focus area for the bank. In order to grow its business the bank has been focusing on cross selling to its internal customers. Now, for the lender more than a third of the incremental retail loans are sourced through branches and the current liability consumers contribute to almost two third of the incremental business.
"maintained its focus on increasing the Bank's wallet share by cross-selling a wide range of banking products to corporate customers and thereby increasing customer engagement," mentions the annual report.
Apart from retail and SME, bank has also been focusing on strengthening its international business. "As on 31st March 2014, the total assets at overseas branches stood at $7.20 billion compared to $6.84 billion last year. Axis Bank UK Limited, the Bank?s overseas banking subsidiary, has managed to breakeven in its first year of operations and its total assets stood at $372 million as on 31st March 2014," mentions the report.
