Axis Bank anticipates a ₹10,000 cr portfolio expansion under ECLGS 5.0

The scheme launched in early May 2026 aims to motivate lenders to extend extra credit to qualifying borrowers | Photo Credit:
ANUSHREE FADNAVIS

Axis Bank anticipates an MSME loan growth of roughly ₹10,000 crore, driven by rising credit demand under the Government’s Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The program offers lenders a 100 % guarantee for MSME exposures and a 90 % guarantee for non‑MSME and airline‑sector loans, covering any defaulted amounts via the National Credit Guarantee Trustee Company Limited (NCGTC).

Launched in early May 2026, the initiative urges lenders to supply extra financing to qualified borrowers, helping them navigate short‑term liquidity gaps amid the then‑ongoing West Asia conflict.

MSME portfolio

By the end of March 2026, India’s third‑largest private‑sector lender held an MSME loan book of ₹2.93 lakh crore, representing 23.8 % of its total advances.

At a media briefing on MSME banking, Sanjeev Moghe, Group Head – Branch Banking, Axis Bank, remarked: “We operate roughly 6,300 branches and still rely on them as a key source for small‑business, SME and mid‑corporate lending.”

He added that Axis Bank plans to open 500 new branches this year, compared with 400 openings in each of the last two fiscal years.

Prashanth TS, Group Head – Mid‑Corporate & Medium Enterprises, Axis Bank, noted: “The uptake of extra credit under ECLGS began only a few weeks ago; the rollout is underway bank‑wide. For us, it’s a chance to assist MSMEs backed by a government guarantee, and we intend to seize every opportunity presented by this scheme.”

He projected that MSME customers could draw roughly ₹10,000 crore of additional financing through this facility.

Seeking Partners

Vijay Shetty, Group Head – Commercial Banking, Axis Bank, observed that firms ranging from longstanding manufacturing hubs to emerging exporters and start‑ups are increasingly looking for partners who can boost efficiency and uncover fresh growth avenues.

“Modern banking goes beyond mere transactions; it enables businesses to expand, scale and stay competitive,” he added.

Published on June 23, 2026