Axis Bank Overview: Key Services, History, and Market Position
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Axis Bank Overview
Axis Bank Limited (formerly UTI Bank from 1993 to 2007) is a major Indian multinational bank offering financial services, headquartered in Mumbai, Maharashtra. It ranks as the third-largest private bank by assets and fourth-largest by market value in India. It provides a range of financial services to large corporations, mid-sized firms, small and medium enterprises (SMEs), and retail customers.
As of June 30, 2016, about 30.81% of Bank shares were held by its promoters, which include several insurance companies and financial institutions like United India Insurance, Oriental Insurance, National Insurance, New India Assurance, GIC, LIC, and UTI. The remaining 69.19% shares are distributed among mutual funds, foreign institutional investors (FIIs), banks, other corporations, and individual investors.
History
Axis Bank was established on December 3, 1993, as UTI Bank, with its registered office located in Ahmedabad and its corporate office in Mumbai. The bank was jointly promoted by the Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance Company, New India Assurance Company, Oriental Insurance Corporation, and United India Insurance Company. Its first branch, located in Ahmedabad, was inaugurated on April 2, 1994, by India’s then Finance Minister, Dr. Manmohan Singh.
In 2001, Axis Bank sought to merge with Global Trust Bank, but the Reserve Bank of India (RBI) did not grant approval. In 2004, Global Trust Bank was subsequently merged with Oriental Bank of Commerce.. Axis Bank went public on the London Stock Exchange in 2005. It expanded internationally with branches in Singapore (2006), an office in Shanghai (2006), and subsequently in the Dubai International Financial Centre and Hong Kong (2007). On July 30, 2007, UTI Bank rebranded as Axis Bank.
Shikha Sharma was appointed Managing Director (MD) and CEO in 2009, and in 2013, its subsidiary, Axis Bank UK, commenced operations. The Indian government planned to sell a 20.7% stake in Axis Bank in 2014, and in 2019, Amitabh Chaudhry succeeded as the MD and CEO. In 2021, Axis Bank reduced its stake in Yes Bank from 2.39% to 1.96%.
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Operations
Domestic Presence
As of March 31, 2024, Axis Bank’s network included 5,377 branches and extension counters, and 16,026 ATMs and cash recyclers. Axis Bank operates the largest ATM network among private banks in India .
International Presence
It has nine international locations, including branches in Singapore, Hong Kong, Dubai (DIFC), Shanghai, and Colombo, as well as representative offices in Dhaka, Dubai, Sharjah, and Abu Dhabi. These branches focus on corporate lending, trade finance, syndication, investment banking, and liability businesses. The bank also operates in the UK through its subsidiary Axis Bank UK Limited.
Services Offered
Retail Banking
Axis Bank offers a suite of services for individuals and small businesses, including lending, deposit accounts, cards, Internet banking, ATMs, depository services, and advisory services. The bank also provides services for Non-resident Indians (NRIs) and is part of the Reserve Bank of India’s NEFT network.
Corporate Banking
Axis Bank’s transaction banking includes current accounts, cash management, capital market services, trade, forex and derivatives, cross-border trade, correspondent banking, and tax collections for the Indian government.
Investment Banking and Trustee Services
Investment banking and trusteeship services are offered through its subsidiary, Axis Capital Limited, which manages equity capital markets, institutional stockbroking, and M&A advisory. Axis Trustee Services Limited also provides trusteeship for securitization trusts.
International Banking
Axis Bank’s international branches offer corporate banking, trade finance, treasury, and risk management services, as well as retail liability products from its branches in Hong Kong and Colombo. Additionally, a representative office in Dhaka was launched recently.
Stock Listings and Ownership
Axis Bank is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) in India. Its Global Depository Receipts (GDRs) are traded on the London Stock Exchange, while bonds issued under its Medium-Term Note (MTN) program are listed on the Singapore Stock Exchange.
Controversies
Operation Red Spider
In 2013, a sting operation by an Indian online magazine exposed potential violations and money-laundering activities involving top officials at several Indian banks, including Axis Bank. This led the RBI to impose fines of ₹50 million on this Bank, ₹45 million on HDFC Bank, and ₹10 million on ICICI Bank.
Money Laundering Post-2016 Demonetization
Following India’s 2016 demonetization, several Bank employees were arrested for alleged money laundering. Media reports indicated that Axis Bank’s aggressive performance culture may have contributed to these issues.
Initiatives
Axis Thought Factory
This Bank launched its first dedicated innovation hub, Axis Thought Factory, in Bengaluru. This facility, which includes an accelerator program, focuses on artificial intelligence applications and supports innovative banking solutions.
Asha Home Loans
The bank introduced Asha Home Loans, a lending product targeted at first-time homebuyers in the lower-income segment. These loans range from ₹100,000–₹2.8 million, depending on the location and income of the borrower.
eKYC
Axis Bank, in partnership with Visa Inc., introduced India’s first biometric-based eKYC service, enabling online Aadhaar-based KYC without physical document submission.
Subsidiaries
- Axis Capital Ltd. – A wholly-owned subsidiary focusing on investment banking and trusteeship services, incorporating parts of Enam Securities.
- Axis Securities Ltd. – Provides retail asset products, credit cards, and retail brokerage services.
- Axis Private Equity Ltd. – Manages venture capital and offshore funds.
- Axis Mutual Fund – Established in 2009 as a subsidiary of Axis Bank, providing mutual fund investment services across India.
