Axis Bank

Axis Bank is the third-largest Indian bank offering a wide assortment of financial products. The bank has its head office in Mumbai, Maharashtra. It has 4,800 branches, 17,801 ATMs and 4,917 cash recyclers spread across the country as of 31 March 2020 and nine international offices. The bank has a market capitalization of ₹2.31 trillion (US$32 billion) (as on 31 March 2020).[5] It sells financial services to large and mid-size corporates, SME and retail businesses.[1]

Axis Bank
Public limited
Traded asBSE: 532215
LSE: AXBC
NSE: AXISBANK
ISININE238A01034 
IndustryFinance, banking industry, financial services 
Founded1993 (1993)
HeadquartersMumbai, Maharashtra, India[1]
Number of locations
4800+ branches [2] (December 2019)
Key people
  • ₹190.05 billion (US$2.7 billion) (2019)
  • ₹155.94 billion (US$2.2 billion) (2018)
[5]
  • ₹46.77 billion (US$660 million) (2019)
  • ₹2.76 billion (US$39 million) (2018)
Total assets
  • ₹8.00997 trillion (US$110 billion) (2019)
  • ₹6.91330 trillion (US$97 billion) (2018)
[5]
Owner
  • Life Insurance Corporation (9.02%)
  • Specified Undertaking of Unit Trust of India (SUUTI) (4.6%)
  • General Insurance Corporation of India(1.15%)
  • Europacific Growth Fund (2.10%)
  • Dodge And Cox International Stock Fund (2.08%)
  • Government Of Singapore (1.37%)
  • Vanguard Total International Stock Index Fund (1.25%)
  • Fidelity Investment Trust Fidelity Series Emerging (1.09%)
  • Stichting Depositary Apg Emerging Markets Equity P (1.09%)
  • Vanguard Emerging Markets Stock Index Fund, A Seri (1.05%)
"Shareholding Pattern of Axis Bank including FII Shareholding".
SubsidiariesAxis 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.[6]
Capital ratio9.35% (December 2019)
Websitewww.axisbank.com

As of 30 June 2016, 30.81% shares are owned by promoters and 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 among others.[8]

History

The bank was founded in December 1993, as UTI Bank, opening its registered office in Ahmedabad and corporate office in Mumbai.[9] UTI Bank began its operations in 1993, 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),[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 Dr. Manmohan Singh, the 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 happen. In 2004, the RBI put Global Trust into moratorium and supervised its merger with Oriental Bank of Commerce.

In 2003, UTI Bank became the first Indian bank to launch a travel currency card.[12][13] In 2005, it was listed on London Stock Exchange.[14]

UTI Bank opened its first overseas branch in 2006 in Singapore. That same year it opened a representative office in Shanghai, China. In 2007, UTI Bank opened a branch in the Dubai International Financial Centre and branches in Hong Kong. In 2008, it opened a representative office in Dubai.[15]

With effect from 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]

Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial Bank supervised by the Central Bank of Sri Lanka.[18] Also in 2011, Axis Bank opened a representative offices in Abu Dhabi.[19] In 2011, Axis bank inaugurated Axis House, its new corporate office in Worli, Mumbai.[20]

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank UK has a branch in London.[21]

Bollywood actress Deepika Padukone is the brand ambassador of Axis Bank.[22]

In 2014, Axis Bank launched  its first ‘All Women Branch’ in Patna.[23]

In 2015, Axis Bank opened its representative office in Dhaka.[24]

In 2019, Amitabh Chaudhry takes over as the MD and CEO from 1 January.[25]

As of 31 March 2016, the bank has over 50,001 employees. It spent ₹26.7 billion (US$370 million) on employee benefits during the FY 2012–13.[26]

Operations

Indian Business

As of 12 Aug 2016, the bank had a network of 4,094 branches and extension counters and 12,922 ATMs.[27]

Shankar Sheth Road Branch, Pune

Axis Bank has the largest ATM network among private banks in India.[28][29] 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.[30]

International business

The bank has nine international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai,[31] Colombo and representative offices at Dhaka, Dubai, Sharjah and Abu Dhabi, which focus on corporate lending, trade finance, syndication, investment banking and liability businesses.[32] In addition to the above, the bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.[33]

Services

Retail banking

The bank offers services such as lending to individuals and 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.[26] Axis bank is a participant in RBI's NEFT enabled participating banks list.[34]

Corporate banking

Transaction banking: Formed in April 2015, TxB provides integrated products and services 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.[35]

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 debenture trustee and as trustee to various securitization trusts.[36]

International banking

The bank continues to offer corporate banking, trade finance, treasury and risk management through the branches at Singapore, Hong Kong, DIFC, Shanghai and Colombo, and also retail liability products from its branches at Hong Kong and Colombo.[37] The representative office at Dhaka was inaugurated during the current financial year.[38]

Controversies

Following the 2016 Indian Banknote Demonetisation, a number of Axis Bank employees were arrested for facilitating money laundering activities.[39][40] 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.[41]

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$700,000) on Axis Bank, ₹45 million (US$630,000) on HDFC Bank, and ₹10 million (US$140,000) on ICICI Bank were imposed by the Reserve Bank of India.[42]

Initiatives

Axis Thought Factory

The innovation hub located in Bengaluru, has an in-house innovation team and an accelerator programme.[43] With this launch, Axis Bank became the first Indian bank to introduce a dedicated innovation lab in the country.[44][45][46]

Asha home loans

Asha home loans targets first-time home buyers in the lower-income segment.[47][48] The product offers loans from ₹100,000 (US$1,400)–₹1.5 million (US$21,000) in small towns (population less than 1 million) and up to ₹2.8 million (US$39,000) in larger towns (population over 1 million), to customers with family incomes of ₹8,000 (US$110)–₹10,000 (US$140) per month and above.[49]

eKYC

eKYC[50] is an online, paperless Aadhaar card-based process for fulfilling KYC requirements to start investing in mutual funds without submission of any documents. SEBI has recently in 2017, allowed Aadhaar-based KYC to be used for MF investments, for the convenience of investors. Axis Bank partnered with Visa to launch 'eKYC' (electronic know your customer) facility, first organization in India to introduce biometrics-based KYC.[51]

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 ACL:

  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 is in the business of marketing retail asset products, credit cards and retail broking.[52]

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 is in the business of managing investments, venture capital funds and offshore fundsx.

Awards and recognition

2010
  • Best Debt House in India – Euromoney[53]
  • Best Domestic Debt House in India – Asiamoney[54]
  • Overall Winner & Consistent Performer -(Large Banks Category) – Business Today Best Bank Awards 2010[55]

2011

2012
  • Bank of the Year – Money Today FPCIL Awards 2012-13[57]
  • Best Private Sector Bank – CNBC-TV18 India's Best Bank and Financial Institution Awards 2012[58]
  • Consistent Performer – India's Best Banks – 2012 Survey by Business Today & KPMG[59]
  • Gold Shield for Excellence in Financial Reporting in the Private Banks category – 2011-12 – ICAI (Institute of Chartered Accountants of India)

2013
  • Axis Bank ranked No 1 company to work for in the BFSI sector – 'The Best Companies to Work for' survey by Business Today.[60]
  • Ranked No 1 in the IT Biz Award – large enterprises category by Express IT Awards[61]
  • Innovation for 2013 for Ladies First card under ‘the Most Innovative Broad Based Product Offering’ category- IBA Innovations Award.[62]

2014
  • Axis Bank Foundation conferred Outstanding Corporate Foundation at Forbes India, Philanthropy Awards, 2014[63]
  • 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]
  • Axis Bank featured for the fourth time in Asia's Fab50 companies for 2014 by Forbes Asia[66]
  • 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[67]

2015
  • Axis Bank has been adjudged winner in the Best Bank Category, Outlook Money Awards 2015[68]
  • Axis Bank awarded for the Best Security among Private Sector Banks in India by Data Security Council of India (DSCI).[69]
  • Axis Bank conferred the Certificate of Recognition for excellence in Corporate Governance by the Institute of Company Secretaries of India (ICSI), for the year 2015.[70]
  • Best Domestic Bank in India- Asiamoney Best Banks 2015[71]
  • Axis Bank's Mobile App tops Forrester Research's review of Smartphone Mobile Banking Apps in India.[72][73]
  • Axis Bank was selected as the Best Private Sector Bank under the category Rural Reach at the Dun & Bradstreet Banking Awards 2015[74]
  • Axis Bank has been conferred with IDRBT Best Bank Award for Digital Banking, Analytics & Big Data among large banks.[75]
  • Axis Bank has been featured in Limca Book of Records 2015 for creating a National Record for its campaign – 'Plant a Sapling'[76]
  • Axis bank has been awarded the title of Superbrand 2014–2015, by Superbrands[77]
  • No. 1 Promising Banking Brand of 2015, Economic Times Awards 2015[78]
  • Winner in the 'Best Payment Initiatives' category amongst Private Sector Banks, IBA Banking Technology Awards 2015[79]

Listing and shareholding

Axis Banks's equity shares are listed on the Bombay Stock Exchange (BSE) and National Stock Exchange of India (NSE).[26][80] The company's global depository receipts (GDRs) are listed on the London Stock Exchange.[81] The Bonds issued by the bank under the MTN programme are listed on the Singapore Stock Exchange.[26] The institute has 123 institutional owners and shareholders through Securities Exchange Commission (SEC). [82]

See also

References
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