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Axis Bank foresees Tamil Nadu region as a key SME lending destination over the next three years.
Aiming to be a partner in progress for the SMEs in the region, the bank is now proposing to roll out specially structured products to provide quick disbursement and faster credit delivery, strengthen its network and focus on supply chain finance as well, says G Edwin, Geography Head – South, SME Banking, Axis Bank.
“We've grown our SME portfolio in the region to Rs 5,800 crore. Quicker turnaround for credit, decentralised decision making, effective relationship management and a wide range of financial products and services is helping the bank emerge as a one-stop shop for all SME solutions,” Edwin told reporters here this afternoon.
He was in the city to introduce the bank's new initiative “Evolve” and one that is seen as a growth driver for the SMBs.
“We think we can be of assistance to the SMBs in non-financial areas as well,” he said, talking about this initiative.
Reverting to products and the time taken to process loan applications from the MSMEs, he said “we revert within a maximum period of three days if the papers are in order, indicating the status of the proposal to the applicant. They need not wait for a week or longer for the status. Thereafter, depending on the quantum of the loan sought, the sanction will vary between 10 days to a fortnight.''
Not only has the bank acquired a good number of new customers, but also increased its SME lending portfolio in the region significantly, Edwin said and pointed out that a-third of the bank's SME loan exposure is from the South.
“While advances to SMEs has increased by over 18 per cent year-on-year to Rs 35,500 cr and is a little more than 15 per cent of the bank's total advances, in Tamil Nadu, our SME portfolio has registered a growth of 17 per cent,'' he said, highlighting the growth potential.
Towards strengthening its network, the bank has opened a new SME centre at Erode and is looking at setting up a centre in Madurai shortly.
The bank currently operates 42 SME centres and 17 SME cells across the country. This network is expected to be strengthened further, Edwin added.
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