Axis Bank aims to ensure its priority sector lending targets are met organically and has partnered with technology company PayNearby to facilitate its credit growth in the sector.

Banks are required to provide 40% of their total lending to priority sectors, which includes lending to the agriculture and MSME sectors. In the event of a shortage, banks must obtain such loans from other lenders. However, the bank did not disclose specific figures for any targets it set with the move.

PayNearby, which provides distribution-as-a-service (DaaS), has a network of over 5 million micro-entrepreneurs. Axis Bank will leverage the network to provide last-mile retailers and customers with financial solutions, including savings and checking bank accounts.

Axis Bank can reach potential customers in remote locations through this partnership and provide banking solutions digitally. This will simplify banking for retail store owners and individual customers and eliminate the need to travel long distances to operate their bank accounts. As of now, Axis Bank has around 2,100 branches which are classified as Bharat Bank branches.

Anand Kumar Bajaj, MD and CEO of PayNearby, said: “Through this partnership, we will continue to enhance the capabilities of retailers and customers while expanding Axis Bank’s presence in the remote hinterland of the country.”

However, the bank doesn’t just focus on remote locations when it comes to offering Bharat banking solutions. Sharda said loans to affordable housing or microfinance customers in any market are Bharat Bank customers.