Private sector lender Axis Bank is laying ambitious plans to give a 30% pump up to its retail business with prime focus on generating business from smaller cities.

"The bank aims at increasing the share of retail loans to 30% of total loans from the current 21% in the next three years," said Jairam Shridharan, senior vice-president and head consumer lending and payments.

"Tier II and Tier III centres and smaller cities have emerged as drivers of incremental loan growth. Around 60% of the new business comes from these centres," he said.

The lender aims to make retail loans count for 30% of the total loans of the bank. ICICI Bank and HDFC Bank have retail loans forming 40% and 50% of their total loan book respectively.