Axis Bank


Axis Bank is the third-largest private sector Indian bank, and offers a range 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 across the country as of 31 March 2020, and nine international offices. It has a market capitalization of . It sells financial services to large and mid-size companies, SME and retail businesses.
As of 30 June 2016, 30.81% shares are owned by promoters and promoter group. The remaining 69.19% shares are owned by mutual funds, FIIs, banks, insurance companies, corporate bodies and individual investors among others.

History

The bank was founded in December 1993 as UTI Bank, opening its registered office in Ahmedabad and corporate office in Mumbai. 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, Life Insurance Corporation of India, 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.
In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of India 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. In 2005, it was listed on London Stock Exchange.
UTI Bank opened its first overseas branch in 2006 in Singapore. That same year it opened an 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 an office in Dubai.
On 30 July 2007, UTI Bank changed its name to Axis Bank.
In 2009, Shikha Sharma was appointed as the MD and CEO of Axis Bank.
Axis Bank opened a branch in Colombo, Sri Lanka in October 2011, as a Licensed Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened an office in Abu Dhabi. In 2011, Axis bank inaugurated Axis House, its new corporate office in Worli, Mumbai.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank UK has a branch in London.
Bollywood actress Deepika Padukone is the brand ambassador of Axis Bank.
In 2014, Axis Bank launched its first ‘All Women Branch’ in Patna.
In 2015, Axis Bank opened an office in Dhaka.
On January 1, 2019, Amitabh Chaudhry took over as MD and CEO.
As of 31 March 2016, the bank has over 50,001 employees.

Operations

Indian Business

As of 12 Aug 2016, the bank had a network of 4,094 branches and extension counters and 12,922 ATMs.
Axis Bank has the largest ATM network among private banks in India. It even operates an ATM at one of the world's highest sites at Thegu, Sikkim at a height of 4,023 meters above sea level.

International business

The bank has nine international offices with branches at Singapore, Hong Kong, Dubai, Shanghai, Colombo and representative offices at Dhaka, Dubai, Sharjah 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.

Services

Retail banking

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

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.
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.

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 also retail liability products from its branches at Hong Kong and Colombo. The representative office at Dhaka was inaugurated during the current financial year.

Controversies

2016 demonetisation related money laundering

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

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.

Initiatives

Axis Thought Factory

An innovation hub located in Bengaluru has an in-house innovation team and an accelerator programme. With this launch, Axis Bank became the first Indian bank to introduce a dedicated innovation lab in the country.

Asha home loans

Asha home loans targets first-time home buyers in the lower-income segment. The product offers loans from – in small towns and up to in larger towns, to customers with family incomes of – per month and above.

eKYC

eKYC 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. Axis Bank partnered with Visa to launch 'eKYC' facility, and was the first organization in India to introduce biometrics-based KYC.

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.
  2. Axis Finance Ltd.
  3. Axis Securities Europe Ltd.
  4. Enam International Ltd., UAE
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.
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.

Awards and recognition

2010

Axis Banks's equity shares are listed on the Bombay Stock Exchange and National Stock Exchange of India. The company's global depository receipts are listed on the London Stock Exchange. The Bonds issued by the bank under the MTN programme are listed on the Singapore Stock Exchange. The institute has 123 institutional owners and shareholders through Securities Exchange Commission.