{"id":8431,"date":"2020-07-22T22:28:57","date_gmt":"2020-07-22T22:28:57","guid":{"rendered":"https:\/\/bengalnewstimes.com\/?p=8431"},"modified":"2020-07-22T22:28:57","modified_gmt":"2020-07-22T22:28:57","slug":"axis-bank-tightens-noose-on-msme-lending-bfsi-news-et-bfsi","status":"publish","type":"post","link":"https:\/\/bengalnewstimes.com\/?p=8431","title":{"rendered":"Axis Bank tightens noose on MSME lending, BFSI News, ET BFSI"},"content":{"rendered":"<p><\/p>\n<div>Private lender <a href=\"https:\/\/bfsi.economictimes.indiatimes.com\/tag\/axis+bank\">Axis Bank<\/a> has in a calibrated decision decided to reduce exposure to its <a href=\"https:\/\/bfsi.economictimes.indiatimes.com\/tag\/msme\">MSME<\/a> portfolio. The lender in the first quarter of the fiscal reduced <a href=\"https:\/\/bfsi.economictimes.indiatimes.com\/tag\/msme+lending\">MSME lending<\/a> exposure by almost 7.3% on a yearly basis from Rs 61600 crore to Rs 57100 crore. Since March 2020, MSME exposure declined by 7.5% over the course of the quarter.<\/p>\n<p><iframe title=\"&lt;a href=\" https:=\"\">Axis Bank tightens noose on MSME lending &#8221; aria-label=&#8221;chart&#8221; id=&#8221;datawrapper-chart-qcGU1&#8243; src=&#8221;https:\/\/datawrapper.dwcdn.net\/qcGU1\/1\/&#8221; scrolling=&#8221;no&#8221; frameborder=&#8221;0&#8243; style=&#8221;width: 0; min-width: 100% !important; border: none;&#8221; height=&#8221;400&#8243;&gt;<\/iframe><br \/>Rajeev Anand, Executive Director \u2013 Wholesale <a href=\"https:\/\/bfsi.economictimes.indiatimes.com\/news\/banking\">Banking<\/a> at Axis Bank in an interaction with the media on Tuesday, said the decision was as part of a calibrated approach by the lender to reduce exposure in the segment. Anand however noted that the MSME exposure of the bank included Supply Chain Financing (SFC) exposure, mainly for auto dealer financing. \u201cIf you look at the pure MSME part of the business, it is flat for the year, but given the issues particularly in the auto industry and the dealer finance business, we have turned quite cautious not this quarter, but a few quarters ago,\u201d said Anand, adding \u201cWe will evaluate growth at an appropriate time.\u201d<\/p>\n<p>On SME lending, Rajeev added, \u201c29% of the incremental loan is to the better rated SMEs, the lower rated [SME 6 and above] book has degrown for us, so we have been able to shed some of the weaker accounts.\u201d The lender also shared that it had been participating in the collateral free government backed MSME loan scheme, of which sanctions stood at Rs 3000 crore and disbursements at Rs 1400 crore.<\/p>\n<p>Axis Bank on Tuesday declared a quarterly profit of Rs 1112.17 crore, a YoY decrease of almost 19%. In the fourth quarter of FY20, the private lender had declared a loss of Rs 1387.78 crore. Amitabh Chaudhry, CEO of Axis Bank, said its loan book under <a href=\"https:\/\/bfsi.economictimes.indiatimes.com\/tag\/moratorium\">moratorium<\/a> fell to 9.7% by value. The lender had earlier during its FY20 results announcement pegged the loan book under moratorium between 25-28% of all advances. Advances for the quarter grew by 13% to Rs 5.61 lakh crore on a yearly basis, whilst however marginally declining by 1.76% from the previous quarter.<\/p>\n<\/div>\n<p><script async defer crossorigin=\"anonymous\" src=\"https:\/\/connect.facebook.net\/en_US\/sdk.js#xfbml=1&#038;version=v4.0\"><\/script><script>\n  !function(f,b,e,v,n,t,s)\n  {if(f.fbq)return;n=f.fbq=function(){n.callMethod?\n  n.callMethod.apply(n,arguments):n.queue.push(arguments)};\n  if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';\n  n.queue=[];t=b.createElement(e);t.async=!0;\n  t.src=v;s=b.getElementsByTagName(e)[0];\n  s.parentNode.insertBefore(t,s)}(window, document,'script',\n  'https:\/\/connect.facebook.net\/en_US\/fbevents.js');\n  fbq('init', '905994023094530');\n  fbq('track', 'PageView');\n<\/script><br \/>\n<br \/><a href=\\\"https:\/\/bfsi.economictimes.indiatimes.com\/news\/banking\/77105615?utm_source=RSS&#038;utm_medium=ETRSS\\\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Private lender Axis Bank has in a calibrated decision decided to reduce exposure to its MSME portfolio. The lender in the first quarter of the fiscal reduced MSME lending exposure by almost 7.3% on a yearly basis from Rs 61600 crore to Rs 57100 crore. Since March 2020, MSME exposure [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":8432,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[36],"tags":[],"class_list":["post-8431","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-business"],"jetpack_featured_media_url":"https:\/\/bengalnewstimes.com\/wp-content\/uploads\/2020\/07\/axis-bank-tightens-noose-on-msme-lending.jpg","_links":{"self":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/8431","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=8431"}],"version-history":[{"count":0,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/posts\/8431\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=\/wp\/v2\/media\/8432"}],"wp:attachment":[{"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=8431"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=8431"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bengalnewstimes.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=8431"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}