Axis Bank Explained

Axis Bank Limited
Logo Alt:Axis Bank Logo
Type:Public
Industry:Financial services
Revenue: [1]
Revenue Year:2024
Income Year:2024
Net Income Year:2024
Assets Year:2024
Equity Year:2024
Num Employees:104,333[2]
Num Employees Year:as of March 2024
Foundation: as UTI Bank
Hq Location Country:India[3]
Num Locations:5377
Num Locations Year:March 2024
Location:Axis House
Hq Location City:Mumbai, Maharashtra
Ratio:9.35% (December 2019)
Footnotes:[4] [5] [6]

Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra. It is India's third largest private sector bank by assets and fourth largest by market capitalisation. It sells financial services to large and mid-size companies, SMEs and retail businesses.

As of 30 June 2016, 30.81% shares are owned by the promoters and the promoter group (United India Insurance Company Limited, Oriental Insurance Company Limited, National Insurance Company Limited, New India Assurance Company Ltd, GIC, LIC and UTI).[7] The remaining 69.19% shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies and individual investors.[8]

History

The bank was founded on 3 December 1993 as UTI Bank, opening its registered office in Ahmedabad and a corporate office in Mumbai.[9] The bank was promoted jointly by the Administrator of the Unit Trust of India (UTI),[10] Life Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance Company, The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Manmohan Singh, then finance minister of India.[11]

In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of India (RBI) withheld approval and the merger did not take place. In 2004, the RBI put Global Trust under moratorium and supervised its merger with Oriental Bank of Commerce. The following year, UTI bank was listed on the London Stock Exchange.[12] In the year 2006, UTI Bank opened its first overseas branch in Singapore. The same year it opened an office in Shanghai, China. In 2007, it opened a branch in the Dubai International Financial Centre and branches in Hong Kong.[13]

On 30 July 2007, UTI Bank changed its name to Axis Bank.[14]

In 2009, Shikha Sharma was appointed as the MD and CEO of Axis Bank.[15]

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations.[16]

The Indian government intends to sell a 20.7% stake in Axis Bank in February 2014 for 57 billion rupees, equivalent to 925 million dollars.[17]

On 1 January 2019, Amitabh Chaudhry took over as MD and CEO.[18]

In year 2021, the Bank had reduced its stake in Yes Bank from 2.39 per cent to 1.96 per cent.[19]

Operations

Indian Business

As of 31 March 2024, the bank had a network of 5,377 branches and extension counters, 16,026 ATMs and cash recyclers.[20]

Axis Bank has the largest ATM network among private banks in India.[21] [22] It even 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.[23]

Gallery

International business

The bank has nine international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai,[24] Colombo and representative offices at Dhaka, Dubai, Sharjah and Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment banking and liability businesses.[25] In addition to the above, the bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.[26]

Services

Retail banking

The bank offers lending services to individuals and small businesses, along with liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and Non-resident Indian (NRI) services.[27] Axis bank is a participant in RBI's NEFT enabled participating banks list.[28]

Corporate banking

Transaction banking: Axis Bank provides products and services related to transaction banking to customers in areas of current accounts, cash management services, capital market services, trade, foreign exchange and derivatives, cross-border trade and correspondent banking services, and tax collections on behalf of the Government and various State Governments in India.[29]

Investment banking and trustee services: The bank provides investment banking and trusteeship services through its owned subsidiaries. Axis Capital Limited provides investment banking services relating to equity capital markets, institutional stock brokering besides M&A advisory. Axis Trustee Services Limited is engaged in trusteeship activities, acting as a debenture trustee and as a trustee to various securitization trusts.[30]

International banking

The bank offers corporate banking, trade finance, treasury and risk management through the branches at Singapore, Hong Kong, DIFC, Shanghai and Colombo, and as also retail liability products from its branches at Hong Kong and Colombo.[31] The representative office at Dhaka was inaugurated during the current financial year.[32]

Listing and shareholding

Axis Banks's equity shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).[33] The company's global depository receipts (GDRs) are listed on the London Stock Exchange.[34] The Bonds issued by the bank under the MTN program are listed on the Singapore Stock Exchange.

Issues and concerns

Operation Red Spider

See main article: Operation Red Spider. An Indian online magazine conducted a sting operation which was publicised along with 2013 videos evidence showing a wide range of violations and money-laundering schemes by top officials at a number of Indian banks, including Axis Bank. Consequently, penalties of on Axis Bank, on HDFC Bank, and on ICICI Bank were imposed by the Reserve Bank of India.[35]

2016 Demonetisation related money laundering

Following the 2016 Indian Banknote Demonetisation, a number of Axis Bank employees were arrested for facilitating money laundering activities.[36] Some media outlets highlighted the disproportionate number of cases involving the bank, and claimed that the bank's aggressive performance targets and internal culture fostered such activities and that the blame does not lie solely in the hands of arrested employees.[37]

Initiatives

Axis Thought Factory

An innovation hub located in Bengaluru has an in-house innovation team and an accelerator program, primarily working on artificial intelligence.[38] [39] With this launch, Axis Bank became the first Indian bank to introduce a dedicated innovation lab in the country.[40] [41] [42]

Asha home loans

Asha home loans targets first-time home buyers in the lower-income segment.[43] [44] The product offers loans from – in small towns (population less than 1 million) and up to in larger towns (population over 1 million), to customers with family incomes of – per month and above.[45]

eKYC

eKYC (electronic know your customer)[46] is an online, paperless Aadhaar card-based process for fulfilling KYC requirements to start investing in mutual funds without the submission of any documents. Axis Bank partnered with Visa Inc. to launch the 'eKYC' facility, and was the first organization in India to introduce biometrics-based KYC.[47]

Subsidiaries

Axis Capital Ltd.

Axis Capital Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 6 December 2005 and received its certificate of commencement of business on 2 May 2006. Certain businesses of M/s. Enam Securities Pvt. Ltd. were merged with Axis Capital Ltd. as part of a scheme and the following companies became direct subsidiaries of Axis Capital:[48]

  1. Axis Securities Ltd. (formerly Enam Securities Direct Pvt. Ltd.)
  2. Axis Finance Ltd. (formerly Enam Finance Pvt. Ltd.)
  3. Axis Securities Europe Ltd. (formerly Enam Securities Europe Ltd.)
  4. Enam International Ltd., UAE (voluntarily dissolved with effect from 24 August 2014)

Axis Securities Ltd., Axis Finance Ltd. and Axis Securities Europe Ltd. later became direct subsidiaries of the bank in line with the RBI directives.

Axis Securities Ltd.

Axis Securities Ltd.was incorporated in India on 21 July 2006. The sales and securities business, including the retail broking business of Axis Capital Ltd, was merged with ASL on 25 May 2013. ASL is a wholly owned subsidiary of the bank and offers retail asset products, credit cards and retail brokerage services.[49]

Axis Private Equity Ltd.

Axis Private Equity Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 3 October 2006 and received its certificate of commencement on 4 December 2006. APE manages investments, venture capital funds and offshore funds.

Axis Mutual Fund

See main article: Axis Mutual Fund. Axis Mutual Fund is a subsidiary of Axis Bank established in 2009 with in headquarters in Mumbai.

Acquisitions

Awards

2010

2011

2012

2013

2014

2015

See also

External links

Notes and References

  1. Web site: Axis Bank Ltd. Financial Statements . bse.com.
  2. Web site: Inside how Axis Bank integrated Citi's employees within itself efficiently. 14 May 2024 .
  3. Web site: Media Center – Corporate Profile . Axis Bank . 26 January 2014.
  4. Web site: Axis Bank announces financial results for the quarter ended 31st December 2019.
  5. News: RBI approves appointment of Rakesh Makhija as Chairman of Axis Bank. moneycontrol. 5 June 2019.
  6. Web site: Amitabh Chaudhary takes charge. 2 January 2019. 2 January 2019. peoplematters.
  7. Web site: Statement showing shareholding pattern of the Promoter and Promoter Group. BSE. 8 October 2016.
  8. Web site: Statement showing shareholding pattern of the Public shareholder. BSE. 8 October 2016.
  9. Web site: Kotak. Uday. Uday Kotak: Now, wait for the next Big Thing. Business Standard India. 1 October 2016. 27 October 2014.
  10. Web site: SUUTI money belongs to UTI investors and not to the government by enforcing the l. Firstpost. 1 October 2016. 22 January 2014.
  11. Web site: Axis Bank: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Axis Bank - NDTVProfit.com . www.ndtv.com.
  12. Web site: AXIS BANK REGS share price (AXB). London Stock Exchange. 1 October 2016.
  13. Web site: India's Axis Bank seeks Gulf expansion with branch in Sharjah. The National. 18 February 2016 . 1 October 2016.
  14. url = https://www.livemint.com/Companies/kHWbcToVD2OSRnDNXVqGeP/UTI-Bank-is-now-Axis-Bank.html
  15. News: P. Mampatta. Sachin. 16 May 2013. Shikha Sharma gets a salary hike. Business Standard India. 11 September 2019.
  16. Web site: Rebello. Joel. Axis Bank launches its first overseas subsidiary. 1 October 2016. Mint newspaper. 12 July 2013 .
  17. Web site: India picks banks to sell $925 million Axis Bank stake: sources . reuters.
  18. News: Press Trust of India. 31 December 2018. Shikha Sharma retires as Axis Bank MD & CEO, Amitabh Chaudhry to succeed. Business Standard India. 11 September 2019.
  19. News: Manohar . Asit . Axis Bank trims stake in Yes Bank . 5 May 2021 . mint . 4 May 2021 . en.
  20. News: Axis Bank corporate profile.
  21. News: Axis Bank inaugurates 10,000th ATM at Akurdi, Pune . Yahoo! Finance . 11 April 2012 . 26 January 2014.
  22. News: Axis Bank Continues to be the largest ATM network provider . Ground Report . 11 April 2012 . 26 January 2014.
  23. Web site: World's Highest ATM in Sikkim . SevenDiary.com . 6 February 2013 . 26 January 2014 . 1 February 2014 . https://web.archive.org/web/20140201182519/http://sevendiary.com/worlds-highest-atm-sikkim/ . dead .
  24. Web site: 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 . https://web.archive.org/web/20150518085836/http://www.cbrc.gov.cn/govView_F8C3E31D835F4E0DAAF60B25A49C7D89.html . 18 May 2015 . dead .
  25. Web site: Axis Bank enters Bangladesh, opens representative office in Dhaka. Business Standard India. 23 November 2015.
  26. News: Axis Bank to open for business in Britain . Reuters . 11 July 2013 . 26 January 2014.
  27. Web site: Annual Report for the year 2012–2013 . Axis Bank . 26 January 2014 . https://web.archive.org/web/20140122213622/http://www.axisbank.com/download/Annual-Report-2013.pdf . 22 January 2014 . dead .
  28. Web site: RBI's list of Banks participating in NEFT. 31 August 2015. Reserve Bank of India.
  29. Web site: Transaction banking huge focus for Axis Bank. Economic Times. 9 October 2015 . 4 October 2016.
  30. News: IDBI Trust, Kotak AMC, LIC among top entities holding $7 billion pledged shares of India Inc. The Economic Times. 25 August 2016 . 4 October 2016 . Mudgill . Amit .
  31. Web site: Dash. Dillip Satapathy & Jayajit. Axis Bank to scale up global banking operations. Business Standard India. 4 October 2016. 28 April 2011.
  32. Web site: Axis Bank opens its representative office in Dhaka to strengthenits International presence. https://web.archive.org/web/20161005115830/http://www.sify.com/news/axis-bank-opens-its-representative-office-in-dhaka-to-strengthenits-international-presence-news-default-plxqkMfageehb.html. dead. 5 October 2016. Sify. 4 October 2016.
  33. Web site: Listing Information – Axis Bank. 26 January 2014. Economic Times.
  34. Web site: Axis Bank Limited GDR. 26 January 2014. London Stock Exchange.
  35. Web site: RBI penalises Axis Bank, HDFC Bank and ICICI Bank. Reserve Bank of India. 25 December 2016.
  36. News: Demonetisation: ED arrests 2 bank managers for laundering. 25 December 2016. Press Trust of India. 5 December 2016.
  37. News: Hazari. Hemindra. Axis Bank – A License to Launder?. 25 December 2016. The Wire. 23 December 2016.
  38. News: Axis Bank ties up with Amazon, Visa to help startups in India. The Economic Times. 26 August 2016 . 3 October 2016 . Rebello . Joel .
  39. Web site: Bhatia . Richa . 2017-07-07 . How Axis Bank's Thought Factory is launching a fintech revolution by tapping into startups . 2023-09-03 . Analytics India Magazine . en-US.
  40. Web site: Axis Bank first in India to launch innovation lab, Thought Factory. Banking Technology. 3 October 2016. 5 October 2016. https://web.archive.org/web/20161005072807/http://www.bankingtech.com/522952/axis-bank-first-in-india-to-launch-innovation-lab-thought-factory/. dead.
  41. Web site: Axis Bank launches 'Thought Factory'. Deccan Herald. 29 June 2016 . 3 October 2016.
  42. Web site: Zone Startups selected by Axis Bank to run Fintech Accelerator. India Infoline. 3 October 2016.
  43. Web site: Axis Bank launches home loan scheme for lower income group. The Hindu. 3 October 2016. en-IN. 3 April 2014.
  44. News: Singh. Priyanka. Axis Bank launches 30-year 'affordable housing' loan to lower income segment. Times of India. 2 April 2014 . 3 October 2016.
  45. Web site: Vishwanathan. Vivina. Product crack: Asha Home Loan. Mint (newspaper). 3 October 2016. 7 April 2014.
  46. News: Get eKYC Verified Online By Aadhaar Card in 2 Minutes Mutual Funds. 21 November 2016. The Investment Mania. en-US. 11 December 2016. 29 November 2016. https://web.archive.org/web/20161129193225/http://www.theinvestmentmania.com/ekyc-verified-online-aadhaar-card-mutual-funds/. dead.
  47. News: Have an Aadhaar card? Axis Bank now allows e-KYC to open account . First Post . 24 October 2013 . 26 January 2014.
  48. Web site: Axis Capital (India) Company Profile: Acquisition & Investors PitchBook. 2020-12-07. pitchbook.com. en.
  49. Web site: About Axis Securities. simplehai.axisdirect.in. en-gb. 24 September 2019.
  50. News: Variyar. Mugdha. Axis Bank acquires FreeCharge for Rs 385 crore. The Economic Times. 13 October 2020.
  51. News: business today. Axis Bank acquires Citi's India consumer business for Rs 12,325 cr . 30 March 2022 .
  52. Web site: 2010 Asian Awards for excellence: By country. Euromoney. 7 July 2010 . 1 October 2016.
  53. Web site: Asia's best banks stand out. Asiamoney. 23 August 2016 . 1 October 2016.
  54. Web site: India's best banks. Business Today. 23 December 2010 . 1 October 2016.
  55. Web site: Axis Bank named Bank of the Year:'The Banker'. India Infoline. 1 October 2016.
  56. Web site: The winners of first Money Today FPCIL Awards. Business Today. 25 March 2013 . 1 October 2016.
  57. Web site: MCX-SX presents CNBC TV18's *'India Best Banks and Financial Institutions Awards 2012'. India Infoline. 1 October 2016.
  58. Web site: Express IT Awards. 1 October 2016. https://web.archive.org/web/20140904111527/http://www.tcs.com/SiteCollectionDocuments/TCS_News/TCS-Green-IT-Express-IT-Award-1213-1.pdf. 4 September 2014. dead.
  59. Web site: IBA Awards for Innovation in Banking 2013 . Indian Banks' Association . 1 October 2016 . dead . https://web.archive.org/web/20140103205344/http://www.iba.org.in/Documents/IB_Dec_pag_18.pdf . 3 January 2014 .
  60. Web site: Asiamoney Best Domestic Bank Awards. Asiamoney. 4 August 2014 . 1 October 2016.
  61. Web site: Starz. Theme. Banking Technology Excellence Awards 2014–15. IDRBT. 1 October 2016.
  62. Web site: Bank of Baroda and HDFC Bank Limited win top honours at the Dun & Bradstreet Polaris Financial Technology Banking Awards 2014 Dun & Bradstreet releases study on Indias Top Banks 2014. Dun & Bradstreet India. 1 October 2016.
  63. Web site: Outlook Money Awards 2015: The Winning Set. Outlook Money. 3 October 2016.
  64. Web site: Winners Data Security Council of India. Dsci.in. 3 October 2016.
  65. Web site: Asiamoney Best Domestic Bank Awards. Asiamoney. 25 June 2015 . 3 October 2016.
  66. Web site: LARGEST PLANTATION DRIVE BY A BANK. Limca Book of Records. 3 October 2016. https://web.archive.org/web/20161005084004/http://www.limcabookofrecords.in/record-detail.aspx?rid=1349. 5 October 2016. dead.
  67. Web site: Economic Times Most Promising Brands 2015 unveiled Best Media Info, News and Analysis on Indian Advertising, Marketing and Media Industry. Best Media Info. 3 October 2016.

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