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Axis Bank

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Axis Bank Limited, formerly known as UTI Bank (1993–2007), is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra.[8] 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.[1]

Axis Bank Limited
Company typePublic
ISININE238A01034
IndustryFinancial services
Founded3 December 1993; 30 years ago (1993-12-03) as UTI Bank
HeadquartersAxis House,
Mumbai, Maharashtra
,
India[1]
Number of locations
5377 (March 2024)
Key people
Products
RevenueIncrease ₹137,989 crore (US$17 billion)[2] (2024)
Increase ₹39,356 crore (US$4.7 billion)[2] (2024)
Increase ₹26,386 crore (US$3.2 billion)[2] (2024)
Total assetsIncrease ₹1,518,239 crore (US$180 billion)[2] (2024)
Total equityIncrease ₹155,512 crore (US$19 billion)[2] (2024)
Owner
Number of employees
104,333[3] (as of March 2024)
Subsidiaries
  • Axis Asset Management Company Ltd.
  • Axis Mutual Fund Trustee Ltd.
  • Axis Capital Ltd.
  • Axis Finance Ltd.
  • Axis Securities Ltd.
  • A.TREDS Ltd.
  • Axis Bank UK Ltd.
  • Axis Trustee Services Ltd.
  • Freecharge
  • Accelyst Solutions Private Ltd.
  • Axis Private Equity Ltd.[4]
Capital ratio9.35% (December 2019)
Websitewww.axisbank.com
Footnotes / references
[5][6][7]

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).[9] The remaining 69.19% shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies and individual investors.[10]

History

The bank was founded on 3 December 1993 as UTI Bank, opening its registered office in Ahmedabad and a corporate office in Mumbai.[11] The bank was promoted jointly by the Administrator of the Unit Trust of India (UTI),[12] 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.[13]

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.[14] 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.[15]

On 30 July 2007, UTI Bank changed its name to Axis Bank.[16]

In 2009, Shikha Sharma was appointed as the MD and CEO of Axis Bank.[17]

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations.[18]

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.[19]

On 1 January 2019, Amitabh Chaudhry took over as MD and CEO.[20]

In year 2021, the Bank had reduced its stake in Yes Bank from 2.39 per cent to 1.96 per cent.[21]

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.[22]

Axis Bank has the largest ATM network among private banks in India.[23][24] 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.[25]

Axis Bank branches and ATMs
more images can be found on wiki commons.

International business

The bank has nine international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai,[26] Colombo and representative offices at Dhaka, Dubai, Sharjah and Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment banking and liability businesses.[27] In addition to the above, the bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.[28]

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.[29] Axis bank is a participant in RBI's NEFT enabled participating banks list.[30]

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.[31]

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.[32]

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.[33] The representative office at Dhaka was inaugurated during the current financial year.[34]

Listing and shareholding

Axis Banks's equity shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).[29][35] The company's global depository receipts (GDRs) are listed on the London Stock Exchange.[36] The Bonds issued by the bank under the MTN program are listed on the Singapore Stock Exchange.[29]

Issues and concerns

Operation Red Spider

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 ₹50 million (US$600,000) on Axis Bank, ₹45 million (US$540,000) on HDFC Bank, and ₹10 million (US$120,000) on ICICI Bank were imposed by the Reserve Bank of India.[37]

Following the 2016 Indian Banknote Demonetisation, a number of Axis Bank employees were arrested for facilitating money laundering activities.[38] 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.[39]

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.[40][41] With this launch, Axis Bank became the first Indian bank to introduce a dedicated innovation lab in the country.[42][43][44]

Asha home loans

Asha home loans targets first-time home buyers in the lower-income segment.[45][46] The product offers loans from ₹100,000 (US$1,200)–₹1.5 million (US$18,000) in small towns (population less than 1 million) and up to ₹2.8 million (US$34,000) in larger towns (population over 1 million), to customers with family incomes of ₹8,000 (US$96)–₹10,000 (US$120) per month and above.[47]

eKYC

eKYC (electronic know your customer)[48] 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.[49]

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:[50]

  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.[citation needed]

In 2024, Axis Capital was barred from taking on any new debt assignments by SEBI, the Indian securities regulator, on account of irregularities it found in the non-convertible debentures (NCDs) issue of Sojo Infotel, a tech consultancy.[51] Some commentators saw larger implications for Axis Bank including potentially higher non-performing assets hidden from the balance sheet.[52]

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.[53]

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.[citation needed]

Axis Mutual Fund

Main article: Axis Mutual Fund

Axis Mutual Fund is a subsidiary of Axis Bank established in 2009 with in headquarters in Mumbai.

Acquisitions

  • 2017: Axis Bank acquired Freecharge, a digital marketplace for financial services in 2017 for approximately ₹385 crore.[54]
  • 2023: In March 2023 Axis bank completed acquisition of Citi group's Indian subsidiary Citibank India's consumer banking business for a cash consideration of ₹12,325 crore (US$1.5 billion) which was initially announced in March 2022 thus taking almost one year in the process.[55]

Awards

2010

2011

2012

  • Bank of the Year – Money Today FPCIL Awards 2012–13[60]
  • Best Private Sector Bank – CNBC-TV18 India's Best Bank and Financial Institution Awards 2012[61]

2013

  • Ranked No 1 in the IT Biz Award – large enterprises category by Express IT Awards[62]
  • Joint winner under the ‘Most Innovative Broad Based Product Offering’ category - IBA Innovations Award.[63]

2014

  • Best Domestic Bank in India- Asiamoney Best Banks 2014[64]
  • Best Bank Award among Large Banks for IT For Business Innovation - IDRBT Banking Technology Excellence Awards 2014[65]
  • Best Bank for Rural Reach in the Private Sector and Best Retail Growth Performance in the Private Sector category – Dun & Bradstreet - Polaris Financial Technology Banking Awards 2014[66]

2015

See also

References

  1. ^ a b "Media Center – Corporate Profile". Axis Bank. Retrieved 26 January 2014.
  2. ^ a b c d e "Axis Bank Ltd. Financial Statements" (PDF). bse.com.
  3. ^ "Inside how Axis Bank integrated Citi's employees within itself efficiently". 14 May 2024.
  4. ^ "Axis Bank Annual Report 2018-2019" (PDF).
  5. ^ "Axis Bank announces financial results for the quarter ended 31st December 2019" (PDF).
  6. ^ "RBI approves appointment of Rakesh Makhija as Chairman of Axis Bank". moneycontrol. Retrieved 5 June 2019.
  7. ^ "Amitabh Chaudhary takes charge". peoplematters. 2 January 2019. Retrieved 2 January 2019.
  8. ^ "Axis Bank Annual Report PDF 2018–19" (PDF), Axix Bank
  9. ^ "Statement showing shareholding pattern of the Promoter and Promoter Group". BSE. Retrieved 8 October 2016.
  10. ^ "Statement showing shareholding pattern of the Public shareholder". BSE. Retrieved 8 October 2016.
  11. ^ Kotak, Uday (27 October 2014). "Uday Kotak: Now, wait for the next Big Thing". Business Standard India. Retrieved 1 October 2016.
  12. ^ "SUUTI money belongs to UTI investors and not to the government by enforcing the l". Firstpost. 22 January 2014. Retrieved 1 October 2016.
  13. ^ "Axis Bank: Reports, Company History, Directors Report, Chairman's Speech, Auditors Report of Axis Bank - NDTVProfit.com". www.ndtv.com.
  14. ^ "AXIS BANK REGS share price (AXB)". London Stock Exchange. Retrieved 1 October 2016.
  15. ^ "India's Axis Bank seeks Gulf expansion with branch in Sharjah". The National. 18 February 2016. Retrieved 1 October 2016.
  16. ^ url = https://www.livemint.com/Companies/kHWbcToVD2OSRnDNXVqGeP/UTI-Bank-is-now-Axis-Bank.html
  17. ^ P. Mampatta, Sachin (16 May 2013). "Shikha Sharma gets a salary hike". Business Standard India. Retrieved 11 September 2019.
  18. ^ Rebello, Joel (12 July 2013). "Axis Bank launches its first overseas subsidiary". Mint newspaper. Retrieved 1 October 2016.
  19. ^ "India picks banks to sell $925 million Axis Bank stake: sources". reuters.
  20. ^ "Shikha Sharma retires as Axis Bank MD & CEO, Amitabh Chaudhry to succeed". Business Standard India. Press Trust of India. 31 December 2018. Retrieved 11 September 2019.
  21. ^ Manohar, Asit (4 May 2021). "Axis Bank trims stake in Yes Bank". mint. Retrieved 5 May 2021.
  22. ^ "Axis Bank corporate profile".
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  24. ^ "Axis Bank Continues to be the largest ATM network provider". Ground Report. 11 April 2012. Retrieved 26 January 2014.
  25. ^ "World's Highest ATM in Sikkim". SevenDiary.com. 6 February 2013. Archived from the original on 1 February 2014. Retrieved 26 January 2014.
  26. ^ "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. Archived from the original on 18 May 2015.
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  28. ^ "Axis Bank to open for business in Britain". Reuters. 11 July 2013. Archived from the original on 7 February 2019. Retrieved 26 January 2014.
  29. ^ a b c "Annual Report for the year 2012–2013" (PDF). Axis Bank. Archived from the original (PDF) on 22 January 2014. Retrieved 26 January 2014.
  30. ^ "RBI's list of Banks participating in NEFT". Reserve Bank of India. Retrieved 31 August 2015.
  31. ^ "Transaction banking huge focus for Axis Bank". Economic Times. 9 October 2015. Retrieved 4 October 2016.
  32. ^ Mudgill, Amit (25 August 2016). "IDBI Trust, Kotak AMC, LIC among top entities holding $7 billion pledged shares of India Inc". The Economic Times. Retrieved 4 October 2016.
  33. ^ Dash, Dillip Satapathy & Jayajit (28 April 2011). "Axis Bank to scale up global banking operations". Business Standard India. Retrieved 4 October 2016.
  34. ^ "Axis Bank opens its representative office in Dhaka to strengthenits International presence". Sify. Archived from the original on 5 October 2016. Retrieved 4 October 2016.
  35. ^ "Listing Information – Axis Bank". Economic Times. Retrieved 26 January 2014.
  36. ^ "Axis Bank Limited GDR". London Stock Exchange. Retrieved 26 January 2014.
  37. ^ "RBI penalises Axis Bank, HDFC Bank and ICICI Bank". Reserve Bank of India. Retrieved 25 December 2016.
  38. ^ "Demonetisation: ED arrests 2 bank managers for laundering". Press Trust of India. 5 December 2016. Retrieved 25 December 2016.
  39. ^ Hazari, Hemindra (23 December 2016). "Axis Bank – A License to Launder?". The Wire. Retrieved 25 December 2016.
  40. ^ Rebello, Joel (26 August 2016). "Axis Bank ties up with Amazon, Visa to help startups in India". The Economic Times. Retrieved 3 October 2016.
  41. ^ Bhatia, Richa (7 July 2017). "How Axis Bank's Thought Factory is launching a fintech revolution by tapping into startups". Analytics India Magazine. Retrieved 3 September 2023.
  42. ^ "Axis Bank first in India to launch innovation lab, Thought Factory". Banking Technology. Archived from the original on 5 October 2016. Retrieved 3 October 2016.
  43. ^ "Axis Bank launches 'Thought Factory'". Deccan Herald. 29 June 2016. Retrieved 3 October 2016.
  44. ^ "Zone Startups selected by Axis Bank to run Fintech Accelerator". India Infoline. Retrieved 3 October 2016.
  45. ^ "Axis Bank launches home loan scheme for lower income group". The Hindu. 3 April 2014. Retrieved 3 October 2016.
  46. ^ Singh, Priyanka (2 April 2014). "Axis Bank launches 30-year 'affordable housing' loan to lower income segment". Times of India. Retrieved 3 October 2016.
  47. ^ Vishwanathan, Vivina (7 April 2014). "Product crack: Asha Home Loan". Mint (newspaper). Retrieved 3 October 2016.
  48. ^ "Get eKYC Verified Online By Aadhaar Card in 2 Minutes | Mutual Funds". The Investment Mania. 21 November 2016. Archived from the original on 29 November 2016. Retrieved 11 December 2016.
  49. ^ "Have an Aadhaar card? Axis Bank now allows e-KYC to open account". First Post. 24 October 2013. Retrieved 26 January 2014.
  50. ^ "Axis Capital (India) Company Profile: Acquisition & Investors | PitchBook". pitchbook.com. Retrieved 7 December 2020.
  51. ^ Kumar, Shivendra (19 September 2024). "Sebi bars Axis Capital from debt merchant banking activities until further orders". The Economic Times. Retrieved 2 November 2024.
  52. ^ "Axis Capital wanted to win some business". Boring Money. Retrieved 2 November 2024.
  53. ^ "About Axis Securities". simplehai.axisdirect.in. Retrieved 24 September 2019.
  54. ^ Variyar, Mugdha. "Axis Bank acquires FreeCharge for Rs 385 crore". The Economic Times. Retrieved 13 October 2020.
  55. ^ "Axis Bank acquires Citi's India consumer business for Rs 12,325 cr". business today. 30 March 2022.
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  59. ^ "Axis Bank named Bank of the Year:'The Banker'". India Infoline. Retrieved 1 October 2016.
  60. ^ "The winners of first Money Today FPCIL Awards". Business Today. 25 March 2013. Retrieved 1 October 2016.
  61. ^ "MCX-SX presents CNBC TV18's *'India Best Banks and Financial Institutions Awards 2012'". India Infoline. Retrieved 1 October 2016.
  62. ^ "Express IT Awards" (PDF). Archived from the original (PDF) on 4 September 2014. Retrieved 1 October 2016.
  63. ^ "IBA Awards for Innovation in Banking 2013" (PDF). Indian Banks' Association. Archived from the original (PDF) on 3 January 2014. Retrieved 1 October 2016.
  64. ^ "Asiamoney Best Domestic Bank Awards". Asiamoney. 4 August 2014. Retrieved 1 October 2016.
  65. ^ Starz, Theme. "Banking Technology Excellence Awards 2014–15". IDRBT. Retrieved 1 October 2016.
  66. ^ "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. Retrieved 1 October 2016.
  67. ^ "Outlook Money Awards 2015: The Winning Set". Outlook Money. 30 May 2016. Retrieved 3 October 2016.
  68. ^ "Winners Data Security Council of India". Dsci.in. Retrieved 3 October 2016.
  69. ^ "Asiamoney Best Domestic Bank Awards". Asiamoney. 25 June 2015. Retrieved 3 October 2016.
  70. ^ "LARGEST PLANTATION DRIVE BY A BANK". Limca Book of Records. Archived from the original on 5 October 2016. Retrieved 3 October 2016.
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