The scheme was introduced in early May 2026 to encourage lenders to provide additional credit facility to the eligible borrowers | Photo Credit: ANUSHREE FADNAVIS

Axis Bank sees a portfolio expansion opportunity of about ₹10,000 crore due to demand for credit from Micro, Small and Medium Enterprises (MSMEs) under the Government’s Emergency Credit Line Guarantee Scheme (ECLGS) 5.0.

The scheme aims to provide credit guarantee coverage of 100 per cent for MSMEs and 90 per cent for non-MSMEs as well as airline sector to lenders for the amount in default from the National Credit Guarantee Trustee Company Limited (NCGTC).

The scheme was introduced in early May 2026 to encourage lenders to provide additional credit facility to the eligible borrowers to tide over any short-term liquidity mismatches, against the backdrop of then ongoing West Asia conflict.

MSME portfolio

As at March-end 2026, India’s third largest private sector bank had an MSME portofolio of ₹2.93 lakh crore, accounting for 23.8 per cent of the bank’s overall loan book.

Speaking at a media roundtable on MSME banking, Sanjeev Moghe, Group Head (Branch Banking), Axis Bank, said: “We have about 6,300 odd branches and we continue to depend on them as an important sourcing channel for businesses such as small banking business, SME and mid-corporate.”

He said Axis Bank will add 500 branches this year against 400 branched added in each of the previous two financial years.

Prashanth TS, Group Head – Mid-Corporate & Medium Enterprises Group, Axis Bank, said: “It (demand for additional credit under ECLGS) just started a couple of weeks back. So the process is on and it’s across the bank. And for us it’s an opportunity to support the MSMEs based on a guarantee given by the Government. So we wouldn’t miss any opportunity in terms of supporting them under this scheme.”

He estimated that about ₹10,000 crore in additional credit will be taken by the Bank’s MSME clients under this scheme.

Seeking Partners

Vijay Shetty, Group Head – Commercial Banking Group, Axis Bank, observed that from established manufacturing clusters to new-age businesses and exporters, companies are increasingly seeking partners who can help them improve efficiency and unlock new growth opportunities.

“Banking today is helping businesses do more than transact. It is helping them grow, scale and compete,” he said.

Published on June 23, 2026