Axis Bank

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Axis Bank
Traded as BSE532215
LSEAXBC
NSEAXISBANK
Industry Banking, Financial services
Founded 1994 (as UTI Bank)
Headquarters Mumbai, Maharashtra, India[1]
Key people Dr. Sanjiv Mishra (Chairman)
Shikha Sharma (MD & CEO)
Products Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management
Revenue INR340 billion (US$5.5 billion) (2012)[2][3]
Operating income INR94 billion (US$1.5 billion) (2012)[2][3]
Net income INR52 billion (US$840 million) (2012)[2][3]
Total assets INR3.4 trillion (US$55 billion) (2012)[2][3]
Employees 42,420 (on 31-March-2014)[4]
Website www.axisbank.com

Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India. It offers financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses.[1] Axis Bank has its headquarters in Mumbai, Maharashtra.

Operations[edit]

Indian Business: As on 31-Mar-2014, the Bank had a network of 2402 branches and extension counters and 12922 ATMs.[5] Axis Bank has the largest ATM network among private banks in India[6][7] and it operates an ATM at one of the world’s highest sites at Thegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level.[8]

International Business: The Bank has seven international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai[9] and Colombo and representative offices at Dubai and Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment banking and liability businesses. In addition to the above, the Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.[5][10]

Services[edit]

Axis Bank operates in four segments: Treasury operations, Retail banking, Corporate/Wholesale banking and other banking business.[11]

Treasury operations: The Bank’s treasury operation services include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding.[3]

Retail banking: In the retail banking category, the bank offers services such as lending to individuals/small businesses subject to the orientation, product and granularity criterion, along with liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and Non-resident Indian (NRI) services.[3]

Corporate/wholesale banking: The Bank offers to corporate and other organisations services including corporate relationship not included under retail banking, corporate advisory services, placements and syndication, management of public issues, project appraisals, capital market related services and cash management services.

NRI services: Products and services for NRIs that facilitate investments in India.[12]

Business banking: The Bank accepts income and other direct taxes through its 214 authorised branches at 137 locations and central excise and service taxes (including e-Payments) through 56 authorised branches at 14 locations.[3]

Investment banking: Bank’s Investment Banking business comprises activities related to Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-registered Category I Merchant Banker and has been active in advising Indian companies in raising equity through IPOs, QIPs, and Rights issues etc. During the financial year ended 31 March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers. [3]

Lending to small and medium enterprises: Axis Bank SME business is segmented in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup for financing micro enterprises is also set up.[3] Axis bank is the first Indian Bank having TCDC cards in 11 currencies.[citation needed]

Agriculture banking: 759 branches of the Bank provide banking services, including agricultural loans, to farmers.[3] As on 31 March 2013, the Bank’s outstanding loans in the agricultural sector was INR 148 billion, constituting 7.5% of its total advances.[3]

Advisory Services have been developed to advise public and private sector clients on capital structuring and funding options with a view to help the clients to help them reduce the cost of funds. The Group has also been active in advising the central and various state governments or their agencies in privatization and bid process management. The Group has successfully worked on some of the benchmark transactions in infrastructure development & manufacturing sector covering an entire range of projects across roads, railways, airports, urban infrastructure maritime, power, oil and gas, petrochemicals, cement, sugar, textiles, steel & allied sectors, auto ancillaries, paper, Information Technology (IT), etc.

Service Scope: 1.Feasibility Studies 2.PPP Options and Implementation 3.Revenue Enhancement Solutions 4.Contracts Negotiation 5.Advising on Debt or Equity Sources 6.Structured Financing Solutions 7.Project Appraisal and Structuring for Debt Arranging or Equity Placement 8.Financial Restructuring 9.Viability Studies 10.Preparation of business plan 11.Reform Options Studies 12.Operational or Business Re-organization

History[edit]

Axis Bank began its operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company. The Unit Trust of India holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country.

Axis Bank (erstwhile UTI Bank) opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Dr. Manmohan Singh, the then Finance Minister of India.

In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004 the RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of Commerce.

UTI Bank opened its first overseas branch in 2006 Singapore. That same year it opened a representative office in Shanghai, China.

UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That same year it began branch operations in Hong Kong. The next year it opened a representative office in Dubai.

Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a representative offices in Abu Dhabi.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank UK has a branch in London.

In 2014, Axis Bank upgraded its representative office in Shanghai to a branch.

Initiatives[edit]

The Business Gaurav SME Awards: In 2011–12, Axis Bank set up 6 SME centres and SME cells each across the country, taking the total number to 32 SME Centres. The Bank also organised the 'Business Gaurav SME Awards' in association with Dun & Bradstreet to recognise and award achievements in the SME space.[13]

Financial inclusion: Till March 2012, the Bank had opened over 4.4 million No Frills accounts in over 7607 villages through a network of 15 Business Correspondents and nearly 6000 customer service points. Axis Bank has a strong presence in Electronic Benefit Transfer (EBT) and has covered 6800 villages across 19 districts and 9 states till date with over 3.7 million beneficiaries.

Industry First Initiatives:

  • Axis Bank launched Mobile Banking App 2.0 for its retail resident Indian customers the first of its kind in India, which offers a high level of personalization . The App has been launched in partnership with Tagit, a leading Singapore mobile solutions company. The new application uses Tagit's mobility solution platform that enables Banking on-the-go.[14][15]
  • 'Axis Bank - ISIC Forex Card' for students, is the first photo Travel Currency Card available in USD, Euro, GBP and AUD currencies. It can be used across 34 million merchant locations and at over 2 million MasterCard ATMs globally.[16]
  • Axis Bank has partnered with Visa to launch 'eKYC' (electronic Know your customer) facility, first organization in India to introduce Biometrics based KYC, offering convenience, speed and ease to Aadhaar-registered individuals to open bank accounts.[17]

Awards and recognitions[edit]

  • Bank of the Year Money Today FPCIL Awards 2012–13[18]
  • Best Bank CNBC-TV18 India’s Best Bank and Financial Institution Awards 2012
  • Best Bank Runner-up – Outlook Money Awards 2012
  • 'Consistent Performer' in 'India’s Best Banks – 2012 survey' by Business Today and KPMG[19]
  • Fastest Growing Large Bank Dun & Bradstreet – Polaris Financial Technology Banking Awards 2012
  • Fastest Growing Large Bank Businessworld Best Banks Survey 2012
  • Best Domestic Bond House The Asset Triple A Country Awards 2012
  • India Bond House of the year IFR ASIA – Country Awards 2012
  • Deal Maker of the Year in Rupee Bonds Businessworld Magna Awards – India's Best Deal Makers 2012
  • The Best Emerging Bullion Dealing Bank 9th India International Gold Convention-2011-12
  • Best Acquiring Institution in South Asia Visa LEADER Award at Visa’s 2012 APCEMEA Security Summit, Bali
  • Gold Shield for Excellence in Financial Reporting in the Private Banks category – 2011–12 from Institute of Chartered Accountants of India

Brand Ambassador[edit]

Deepika Padukone, a well-known Bollywood Actress was appointed as the brand ambassador of Axis Bank[20]

Listing and shareholding[edit]

Axis Banks's equity shares are listed on the Bombay Stock Exchange and National Stock Exchange of India.[3][21] The company's global depository receipts (GDRs) are listed on the London Stock Exchange.[22] The Bonds issued by the Bank under the MTN programme are listed on the Singapore Stock Exchange.[3]

As on 31 December 2013, the promoters UTI, LIC and GIC held approx. 34% of the shares in Axis Bank. Foreign Institutional investors (FII) held approx. 43% of the shares. Remaining 23% of the shares are held by others.[23]

The bank aims to increase its share in the financial services sector by continuing to build a strong retail franchise. The segment continues to be one of the key drivers of the Bank’s growth strategy, encompassing a wide range of products delivered through multiple channels to customers. It offers a complete suite of products across deposits, loans, investment solutions, payments and cards and is committed to developing long-term relationships with its customers by providing high-quality services.[24]

Shareholders (as on 31-Dec-2013) Shareholding[23]
Promoter Group 33.88%
Foreign Institutional Investors (FII) 43.18%
Individual shareholders 06.61%
Bodies Corporate 06.03%
Mutual funds 04.47%
GDR 03.90%
Financial institutions / Banks 00.85%
Others 01.08%
Total 100.0%

Employees[edit]

As on 31 March 2013, Axis Bank had 37,901 employees, out of which 7,117 employees were women (19%). The bank incurred INR 26.7 billion on employee benefits during the FY 2012-13.[3] The average age of an Axis Bank employee is 29 years.[25] The attrition rate in Axis Bank is approx. 9% per year.[26]

Corporate social responsibility[edit]

  • Axis Bank Foundation: Axis bank has set up this trust in 2006 and supports supplementary education. Axis Bank contributes up to 1 percent of its net profit annually to various social initiatives undertaken by this foundation.[27] During the year 2011–12, the foundation has partnered with 36 NGOs for educating over a lakh underprivileged and special kids in 13 states.
  • Green Banking: The recycling initiative under the Green Banking banner has helped the bank productively use around 21572 kilograms of dry waste during the year.[3] The Axis Bank's corporate office in Mumbai is designed and constructed as a Platinum LEED-Certified Green Building.[3]

References[edit]

  1. ^ a b "Media Center - Corporate Profile". Axis Bank. Retrieved 26 January 2014. 
  2. ^ a b c d "Financial Results". BSE India. Retrieved 26 January 2014. 
  3. ^ a b c d e f g h i j k l m n o p "Annual Report for the year 2012-2013". Axis Bank. Retrieved 26 January 2014. 
  4. ^ "Earnings Presentations - Half year results for FY 2013-14". Axis Bank. 17 October 2013. Retrieved 26 January 2014. 
  5. ^ a b "Press Release Q4 FY 2013-14". Axis Bank. 25 April 2014. Retrieved 26 January 2014. 
  6. ^ "Axis Bank inaugurates 10,000th ATM at Akurdi, Pune". Yahoo! Finance. 11 April 2012. Retrieved 26 January 2014. 
  7. ^ "Axis Bank Continues to be the largest ATM network provider". Ground Report. 11 April 2012. Retrieved 26 January 2014. 
  8. ^ "World’s Highest ATM in Sikkim". SevenDiary.com. 6 February 2013. Retrieved 26 January 2014. 
  9. ^ "中国银监会关于印度同心银行有限公司上海分行开业的批复". 中国银行业监督管理委员会. 28 August 2013. 
  10. ^ "Axis Bank to open for business in Britain". Reuters. 11 July 2013. Retrieved 26 January 2014. 
  11. ^ "Company Profile for Axis Bank Ltd". Reuters. Retrieved 26 January 2014. 
  12. ^ Template:Citk
  13. ^ "About Us - Events". Axis Bank. Retrieved 26 January 2014. 
  14. ^ "Mobile Banking push". Axis Bank. Retrieved 26 January 2014. 
  15. ^ "Axis Bank plans major Mobile Banking push". Bloomberg. 1 October 2013. Retrieved 26 January 2014. 
  16. ^ "Axis Bank launches travel-currency card for students". Business Standard. 29 August 2013. Retrieved 26 January 2014. 
  17. ^ "Have an Aadhaar card? Axis Bank now allows e-KYC to open account". First Post. 24 October 2013. Retrieved 26 January 2014. 
  18. ^ "Media Center - Awards & Recognition received by Axis Bank". Axis Bank. Retrieved 26 January 2014. 
  19. ^ "India's Best Banks 2013". Business Today. 8 December 2013. Retrieved 26 January 2014. 
  20. ^ http://zeenews.india.com/entertainment/celebrity/deepika-padukone-brand-ambassador-of-axis-bank_156144.html.  Missing or empty |title= (help)
  21. ^ "Listing Information - Axis Bank". Economic Times. Retrieved 26 January 2014. 
  22. ^ "Axis Bank Limited GDR". London Stock Exchange. Retrieved 26 January 2014. 
  23. ^ a b "Shareholding 78uyu6utuityututyuy Pattern". Axis Bank. 31 December 2013. Retrieved 26 January 2014. 
  24. ^ "Axis Bank Shareholding Overview - Religare Online". Religare Invest Pick (Religare Securities) (25 August 2014). Retrieved 10 September 2014. 
  25. ^ "Business Profile". Axis Bank. Retrieved 26 January 2014. 
  26. ^ "The Young Turk". Business Today. 4 August 2013. Retrieved 26 January 2014. 
  27. ^ "Education Programs, Education Foundation". Axis Bank Foundation. Retrieved 26 January 2014. 

External links[edit]