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after the Government of India allowed new private banks to be established. The Bank was
promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India
(UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd.,
National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance
Corporation and United India Insurance Company UTI-I holds a special position in the Indian
capital markets and has promoted many leading financial institutions in the country. The bank
changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities
with similar name.After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the
bank's managing director and CEO on 20 April 2009.
As on the year ended 31 March 2009 the Bank had a total income of 13,745.04 crore (US$ 3.12
billion) and a net profit of 1,812.93 crore (US$ 411.54 million).
On 24 February 2010, Axis Bank announced the launch of 'AXIS CALL & PAY on atom', a
unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the
country to provide a secure debit card-based payment service over IVR.[4]
Branch Network
AXIS Bank
The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. At
the end of September 2010, The Bank has a very wide network of more than 1095 branches and
Extension Counters (as on 31 October 2010).The Bank has a network of over 4846 ATMs (as on
31 September 2010). The Bank has loans now (as of June 2007) account for as much as 70 per
cent of the bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are around
57 per cent (Rs 28,000 crore) of the total loans as of March 2007.
In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs
25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June
2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite
high and has matched that of the other banks, retail exposures grew at a slower pace.
If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a
deliberate business strategy, this could have significant implications (not necessarily negative)
for the overall future profitability of the business.
Despite the slower growth of the retail book over a period of time and the outright decline seen
in the past year, the bank’s fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would have expected the net
interest margins to have been under greater pressure. The bank, though, appears to have insulated
such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-
04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and
HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank
are lower despite its much larger share of the higher margin retail business, since funding costs
also are higher).
The Bank today is capitalized to the extent of Rs. 408.84 crores with the public holding (other
than promoters and GDRs) at 53.81%.
Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun
operations in 1994, after the Government of India allowed new private banks to be established.
The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit
Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation
Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental
Insurance Corporation and United Insurance Company Ltd. UTI-I holds a special position in the
Indian capital markets and has promoted many leading financial institutions in the country. The
bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated
entities with similair name.[2] Shikha Sharma was named as the bank's managing director and
CEO on 20 April 2009.[3] As on the year ended March 31, 2009 the Bank had a total income of
Rs. 8801 crores and a net profit of Rs 581.45 crores.
Top of Form
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Bottom of Form
AXIS BANK
Promoters
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the
country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing
Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5
crore each.
SUUTI - Shareholding 23.78%
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with
a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was
repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act,
2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and
UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking
specified as UTI I has been transferred and vested in the Administrator of the Specified
Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes
along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs.
14167.59 crores.
The Government of India has appointed Shri K. N. Prithviraj as the Administrator of the
Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where
Government has continuing obligations and commitments to the investors, which it will
uphold.
Vision 2015
and Core
Values
VISION 2015:
• To be the
preferred
financial
solutions
provider
excelling in
customer
delivery
through
insight,
empowered
employees
and smart
use of
technology
Core Values
• Customer
Centricity
• Ethics
• Transparency
• Teamwork
• Ownership
Trade Services
Over the last few years Axis Bank has emerged as one of the leading banks in providing trade
finance services, providing a gamut of products for both exports and imports. We serve a wide
range of customers across varying industries, segments and regions. We have a professional team
with dedicated Front-Desk and Specialists, speedy processing of documents and provide
comprehensive and timely MIS.
Import Financing
We offer both Buyers Credit and Suppliers Credit. The financing is available in all major
currencies.
Export Financing
We offer the following facilities in both local and foreign currencies.
• Pre-shipment Financing:
This facility is offered to an exporter by way of packing credit to enable him
to finance purchase or import of raw materials, processing and packing of the
goods meant for exports.
• Post-shipment Financing:
Post-shipment Credit is offered to an exporter to finance export sales
receivables after the date of shipment of goods till the date of realization of
export proceeds.
• Negotiation or Discounting
• Advances Against Collection Bills (AACB):
This offering is in the form of a loan provided to the exporter to bridge the
working capital gap that exists before the export proceeds are realized. The
rate for this advance is the same as the post shipment rate for exports as
prescribed from time to time by RBI. Once the export proceeds are realized
the loan is liquidated.
Letter of Credit
Whether you are an exporter or an importer, Axis Bank offers a gamut of services to meet all
your Letter of Credit requirement including Opening, Negotiating or Discounting, Advising,
Confirming, Standby LC, Reimbursement and Foreign Exchange services. In addition to our
overseas branches we also have an extensive correspondent bank network. We also structure
complex Letters of credit to suit specific transaction requirements.
• Advising Export Letters of Credit:
One of the key offerings of the Bank under exports is advising Export Letters
of Credits. These LCs are advised to the beneficiary most expeditiously and
within a committed time period.
• Confirmations of Letters of Credit:
The bank also confirms letters of Credit for its customers. Once the bank has
confirmed a letter of Credit, it steps into the shoes of the Issuing Bank. It
therefore has no recourse to the exporter, once it provides post shipment
credit and has recourse only to the issuing bank.
Bank Guarantees
We offer to issue various types of guarantees - performance, financial, bid bond etc. Our
guarantees are well accepted by government agencies Capital Market Agencies and all major
corporates. Apart form the guarantees issued locally, our overseas correspondent bank alliances
also enable us to issue guarantees overseas for participation in global tenders.
Collection Services
Axis Bank offers flexible and efficient handling of commercial and financial documents for
Imports, Exports as well as for local trade. We have in place an extensive local branch network
and correspondent banking arrangements to facilitate the same.
• Local Bills Collections:
Our wide network of branches spread across the country enables us to send
and follow up on your LC-backed as well as clean bills sent for collection.
• International Bills Collections:
Our overseas branches coupled with a wide network of correspondent banks
enable us to offer efficient and prompt collections as regards imports,
exports, bills under LC and so on.
Term Loans
The demands of business expansion and upgradation of existing facilities can put considerable
pressure on the finances of a company.
Axis Bank can structure credit solutions to meet your specific short-term or long term funding
requirements. We provide structured term financing solutions for infrastructure, project funding,
real estate and other corporate purposes. The loans are provided at competitive rates and are
structured to enhance your profitability by scheduling the repayment to match the cash flow
available to repay the debt. We also provide advisory services to companies for syndication of
the term loans to a wide spectrum of financial institutions.
Structured Finance
Axis Bank provides tailor made solutions to meet our clients' requirements, while mitigating the
credit and price risk at the same time.
Services
• Project appraisals.
• Underwriting or syndication of corporate loans and project loans.
• Mergers and acquisitions financing.
• Secondary purchase and sale of loan products.
• Hedging of currency and interest rate exposures
Overseas Transactions
Axis Bank through its existing overseas branch at Singapore provides the following services:
• ECBs
• Acquisition Financing
• Loan Underwriting and Syndication
• Buyers's and Suppliers's Credit
• Back-to-Back LCs
• Other Structured Trade Finance Products
These services will soon be extended on commencement at our proposed branches at HongKong
and Dubai.
Our
Cash Credit Co-Acceptance of Bills
LC Backed Bill
Discounting
• Cash Credit
We offer Cash Credit facilities to meet your day-to-day working capital
needs. Cash Credit is provided against the primary security of stock,
debtors, other current assets, etc., and/or collateral security of movable
fixed assets, immovable property, personal or corporate guarantee, etc.
Interest is charged not on the sanctioned amount but on the utilized
amount.
• Working Capital Demand Loan
We also provide working capital facilities in the form of Working Capital
Demand Loan instead of cash credit facility. The primary or collateral
security will be as mentioned in cash credit facility. Here also interest is
levied on the amount drawn rather than on the amount utilized.
• Export Finance
We provide finance for export activities in the form of Pre-Shipment
Credit against firm order and or Letter of Credit and Post shipment credit.
Credit is available for procuring raw materials, manufacturing the goods,
processing and packaging the goods and shipping the goods. Finance is
provided in Indian or foreign currency depending upon the need of the
borrower.
• Short Term Loan
You may enjoy Working Capital facilities to meet your day-to-day
working capital needs and Term Loan for your capex. However there may
be occasions where you may need ad hoc or short-term finance for
general corporate purposes, meeting temporary mismatches in working
capital or for meeting contingent expenses. In such situations we provide
Short Term Loans for tenure upto a year so as to ensure that your
business runs smoothly.
• Term Loan
Given the growth opportunities your business enjoys you may need long-
term funds for capex or capacity expansions or plant modernization and
so on. Keeping these requirements in mind we provide term loans upto
acceptable tenor with suitable moratorium, if required, and repayment
options structured on the basis of your estimated cash flows. These loans
are primarily secured by a first charge on the fixed assets acquired
through the loan amount. Suitable collateral security is also taken
whenever required.
• Clean Bill Discounting
We provide clean bill discounting facilities to fund your receivables. We
discount bills or receivables from your credit worthy clients and provide
credit against that. This facility is provided for a period of 3-6 months
depending upon the tenor of the bill.
• LC Backed Bill Discounting
We discount trade bills drawn under Letters of Credit issued by reputed
banks to fund your receivables. This facility is provided for a period of 3-
6 months depending upon the tenor of the bill or Letter of Credit.
• Co-Acceptance of Bills
We also provide co-acceptance of trade bills depending upon the need of
the borrower.
• Credit Facilities against Guarantee or Stand By Letter of Credit
issued by Foreign Banks
Various foreign companies set up subsidiary in India. We provide funding
to such companies against guarantees or SBLCs of acceptable foreign
banks.
• Letter of Credit
Apart from fund based working capital facilities we provide a range of
Non-Fund Based facilities such as Letter of credit, Bank Guarantees,
Solvency certificates, etc. Letter of Credit is provided to meet your trade
purchases. These are generally provided for 3-6 months depending upon
your Trade cycle. Apart from this we provide Import Letter of Credit for
importing machinery or capital goods. Such LCs are for tenure ranging
from 1-3 years depending upon the need of the borrower.
• Bank Guarantee
We provide Bank Guarantee on behalf of our client to various other
entities such as Government, quasi govt bodies, corporate and so on. We
provide a range of guarantee such as Performance guarantee, financial
guarantee, EPCG etc. The tenure of Bank Guarantee range from 1 year to
10 years depending upon the purpose of the guarantee.
• Solvency Certificates
We also provide solvency certificate depending upon the need of the
borrower.
Axis Bank offers fast track loans for SMEs under the
following schemes:
Micro finance
Axis Bank is actively involved in microfinance and extends financial assistance
to Microfinance Institutions (MFIs) in the form of term loans for onlending to its
clients.
We have supported MFIs in Andhra Pradesh, Tamil Nadu, Karnataka, Kerala,
Gujarat, Uttar Pradesh, Delhi, Orissa, West Bengal, Rajasthan and North East
Region. We have plans to reach out and make a positive impact on the poor
through financial inclusion and providing them specially designed products and
services, in a commercially viable manner leading to the economic empowerment
of the masses and bringing them into the national mainstream.
Presently our main focus is on financial assistance by way of Term Loan. We are
also customising other products based on the specific need of the partner
organization.
CONTA
CT US
utions
We are SEBI registered Category I Merchant Banker. The Bank's
Capital Markets Department has developed significant expertise in Contact
the area of public or rights issue management, private placement of
Details
equity, overseas fund raising through FCCB and GDR and debt
syndication.
The Bank has acted as Lead Book Running Managers, co-arrangers
and advisors to a number of equity issuances or offers.
Service Offerings
apital Market
Funding
Axis Bank is a
clearing bank for
following
exchanges:
• National
Stock
Exchange of
India Limited
(NSE)
• The Stock
Exchange,
Mumbai
(BSE)
• National
Commodity
and
Derivative
Exchange
(NCDEX)
• Multi
Commodity
Exchange
(MCX)