Private sector lender, Axis Bank is aiming at increasing its retail loan book in a way that it contributes to 25% of the total loan book of the bank in the next two years.

In order to achieve this target the bank has targeted to add 200-250 branches to its kitty every year and around 1000 ATMs every year. The bank has recently signed the largest ATM outsourcing deal of India.

"We want to grow our retail assets and we hope to tap the potential in smaller town and cities. We are expecting to increase the share of retail loans to 25% of our total advances in about two years," said Axis Bank executive director (retail banking, SME & agri) SK Chakrabarti.

The bank recorded a retail loan growth worth Rs. 20,823 crore for the FY 2009-10 which is 30% growth on year -on year basis as compared to Rs 16,052 crores booked as retail loan growth by the bank a year ago.

The total advances of the bank currently amount to Rs 1,04,343 crore, which grew by 28% y-o-y.

In order to build its retail banking portfolio further, the bank has taken up steps to mobilize its business operations further. "We have now divided business responsibilities in 26 circles instead of four zones as it was earlier. Under one circle, there will be 35-40 branches, which will be easy to handle for a manager," Chakrabarti said.

"We are looking at the customer as an individual having requirement in all the spaces. Our branch expansion will help us acquire more customers and thereby help multiply our retail banking business," he added.