Private sector Axis Bank today said it continued to be bullish on lending to small industries despite concerns over asset quality coupled with doubtful macroeconomic situation and is targeting to grow the book by up to 25 percent each over the next two years.
"We will maintain the growth and will grow our SME book by 20 to 25 percent this year and the year after," bank's president, SME, Rajendra Adsul told reporters here.
He said SME presently constituted 15 percent of the bank's overall loan book, which stood at Rs 1.40 lakh crore as on September 30.
Admitting that higher interest rates are adversely affecting the SME sector, Adsul observed that the bank is not experiencing any stress from its clients.
Commercial realty, export-led companies and textiles are among the segments within the SME space, which the city-headquartered bank will be wary about, he said, adding that engineering, infrastructure and pharmaceuticals are the spaces that are doing well.
Axis Bank defines the SME segment as those having a turnover of less than Rs 150 crore and the SME portfolio contributes to 35 percent of the bank's overall priority sector lending requirements as classified by the RBI, he said.
Adsul said the bank holds a 5 percent market share in the overall SME segment presently, which gives it enough scope to grow.
The bank serves the segment through 32 SME Centres and 6 SME cells at present.
Commercial realty, export-led companies and textiles are among the segments within the SME space, which the city-headquartered bank will be wary about, he said, adding that engineering, infrastructure and pharmaceuticals are the spaces that are doing well.
Axis Bank defines the SME segment as those having a turnover of less than Rs 150 crore and the SME portfolio contributes to 35 percent of the bank's overall priority sector lending requirements as classified by the RBI, he said.
Adsul said the bank holds a 5 percent market share in the overall SME segment presently, which gives it enough scope to grow.
The bank serves the segment through 32 SME Centres and 6 SME cells at present.
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