Private sector lender Axis Bank is planning to increasing its lending process to micro finance institutions (MFIs). The bank is also looking towards the idea of direct lending to self help groups (SHGs).

"We had gone slow on lending to the MFI sector due to the recent crisis. However, with the regulations in place we plan to step up our lending to the sector," said Ms Shikha Sharma, CEO and MD of the bank.

The lender had earlier reduced its exposure to the sector owing to the rising number of defaults from MFIs.

Ms Sharma said that the aim of the bank is to achieve credit offtake target of 18% set by regulator Reserve Bank of India for this fiscal.