Axis Bank Ltd. – An Investor’s Guide

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Axis Bank Ltd. is one of the stalwarts of Indian Banking that has continuously evolved, offering a perfect mix of traditional and modern banking solutions. The name Axis Bank symbolises trust, expansion, and dedication to its large number of customers. From the time it began to the present day, the bank has showcased its strong values and focus on serving its customers well. This widespread presence ensures that Axis Bank is within arm’s reach for millions of Indians seeking banking solutions.

In this blog, we will explore the story of Axis Bank, tracing its roots and highlighting its major milestones. 

About Axis Bank Ltd.

ParameterDetails
FounderCollectively initiated by the Specified Undertaking of Unit Trust of India (previously referred to as Unit Trust of India) or SUUTI, the Life Insurance Corporation of India (LIC), the General Insurance Corporation of India (GIC), and the National Insurance Company Ltd.
Industry TypeBanking, Financial Services
Founded1993
HeadquartersMumbai, India
Key PeopleN.S. Vishwanathan(Chairman)Amitabh Chaudhry(Managing Director and Chief Executive Officer)
Countries of Presence8
Market Cap₹3.16 trillion
Employees91,898
Domestic Branches4,903 (including extension counters)
ATMs & Cash Recyclers15,953
Axis Virtual Centres6

Axis Bank Ltd.: An Overview

Emerging as the third largest private sector bank in India, Axis Bank has continually presented a comprehensive range of financial services. Their offerings are designed to meet the needs of various segments: from large corporations to the common retail customer. The bank operates six Axis Virtual Centres, which are managed by over 1,500 Virtual Relationship Managers, adding another layer to their customer service.

The bank isn’t limited to domestic operations. Its overseas presence stretches across eight international offices, with branches stationed in nations like Singapore and Dubai, along with representative offices in various countries. These international units primarily focus on functions like Corporate Lending, Investment Banking, and Private Banking/Wealth Management.

Marking its inception in 1994, Axis Bank’s roots can be traced back to its promotion in 1993 by prominent institutions like SUUTI, LIC, and several insurance companies. By March 2023, SUUTI and LIC emerged as the bank’s primary promoters. One of the bank’s key achievements is its steady growth, highlighted by a 5-year CAGR of 14% in Total Assets & Advances and an impressive 16% rise in Deposits from 2017-18 to 2022-23.

 

Axis Bank Ltd. History

 

1990s:

  • 1993: UTI Bank is established with its registered office in Ahmedabad and the head office in Mumbai.
  • 1994: The bank’s first branch opened in Ahmedabad.
  • 1995: Completes its first profitable year.
  • 1996: Deposits surpass ₹1000 crore.
  • 1998: UTI Bank’s public issue is launched and over-subscribed.
  • 1999: The bank introduces cash management services.

2000s:

  • 2000: Dr. P.J Nayak assumes the role of Chairman and Managing Director and the bank integrates Finacle software from Infosys. 200th ATM opened, making it the 2nd largest ATM network in India.
  • 2001: An MoU with India Post is signed to introduce ATMs in post offices.
  • 2002: The 100th branch is inaugurated in Tuticorin. Deposits cross ₹12,000 crore.
  • 2003: The bank crosses the 1000 ATM mark and launches the Travel Currency Card. The bank expands its equity through several partnerships and shareholdings.
  • 2006: The bank’s first international branch opened in Singapore. A representative office was inaugurated in Shanghai.
  • 2007: Priority Banking branches are launched in Mumbai and Kolkata.

2010s:

  • 2010: The bank acquires the investment banking and equities units of Enam Securities.
  • 2009: Shikha Sharma, former head of ICICI Prudential Life Insurance Co. Ltd, is recommended as CEO.
  • 2011: India’s first currency prepaid card for foreign nationals is launched.
  • 2012: The bank sets a record by installing 2 lakh EDC machines and achieving $2 billion in prepaid Travel Currency Cards.
  • 2013: Voted as the Most Trusted Private Sector Bank in a survey by Brand Equity.
  • 2014: Opens branch in China; launches “Asha Home Loans” and e-surveillance at ATMs; features in Forbes Asia’s FAB 50.
  • 2015: Partners with Suvidha Infoserve for pre-paid cards and with Vistara for co-branded credit cards
  • 2016: Gets RBI approval for FIIs/RFPIs investment up to 62%; launches green bond at LSE.
  • 2017: Collaborates with IIC for Latin American trade; announces new home loan product and fund-raising plans.
  • 2018: Launches 4th edition of Evolve; raises MCLR to 8.4%; board approves higher borrowing limit.
  • 2019: Introduces co-branded credit card with Indian Oil.

2020s: 

  • 2020: Acquires 30% stake in Max Life Insurance.
  • 2021: Enables overseas money transfer in 100 currencies via mobile app; partners with NIIT for Digital Banking Academy; invests in IBBIC Pvt. Ltd.
  • 2022: Enters agreement with Go Digit Life for 9.94% stake; acquires Citi’s consumer business in India; updates on branch and counter network expansion.

Also Read: Axis Bank Q2 Results

Major Subsidiaries of Axis Bank Ltd.

Axis Bank Ltd. extends its influence through various subsidiaries, each specialising in different aspects of financial services. Here are some of its major subsidiaries:

  • Axis Capital Ltd.: This subsidiary plays an important role in investment banking, offering services such as equity capital markets, mergers and acquisitions, and more.
  • Axis Trustee Services Ltd.: Specialising in trustee and fiduciary services, it ensures the smooth functioning of various financial instruments and investments.
  • Axis Finance Ltd.: Axis Finance focuses on retail lending, providing financial solutions for several purposes, including home loans, personal loans, and more.
  • Axis Securities Ltd.: Engaged in stock broking, this subsidiary serves retail and institutional clients by enabling stock trading and related services.

Major Acquisitions by Axis Bank Ltd.

Axis Bank Ltd. has strategically acquired several entities to enhance its capabilities and expand its footprint in the financial sector. Here are some key acquisitions:

  • Enam Securities: Axis Bank’s acquisition of Enam Securities strengthened its investment banking and wealth management services, further diversifying its offerings.
  • FreeCharge: In a bid to strengthen its presence in the digital payments landscape, Axis Bank acquired FreeCharge, a leading digital payments platform.
  • Max Life Insurance: The merger with Max Life Insurance marked a significant step toward offering comprehensive financial solutions, including life insurance, to its customers.
  • Citibank:  Axis Bank acquired Citibank’s consumer and NBFC businesses in 2023 for ₹11,603 crore, excluding Citi’s institutional clients in India. With this deal, Axis Bank, already holding 8.6 million credit cards, will gain an additional 2.5 million cardholders, elevating it to one of India’s top three credit card businesses.

Also Read: Banking Sector in India

Axis Bank Ltd. Products

  • Axis Bank Savings Account: A trusted choice for individuals seeking a secure and accessible way to manage their finances, with features such as competitive interest rates and easy online access.
  • Axis Bank Home Loan: Empowering aspiring homeowners by providing flexible and competitive home loan solutions customised to different needs and budgets.
  • Axis Bank Credit Cards: A range of credit cards offering various benefits, including cashback, rewards, travel privileges, and exclusive access to airport lounges.
  • Axis Mutual Fund: A robust suite of mutual fund options for investors looking to grow their wealth through systematic investment, with choices spanning equity, debt, and hybrid funds.
  • Axis Direct: An online trading platform that allows customers to buy and sell stocks, mutual funds, and other financial instruments, backed by research and expert insights.
  • Axis Bank Personal Loan: A quick and hassle-free solution for addressing personal financial needs, with competitive interest rates and flexible repayment options.
  • Axis Bank NRI Services: Catering to the financial requirements of Non-Resident Indians (NRIs), including NRI accounts, remittances, and expert guidance on investment opportunities in India.
  • Axis Bank Priority Banking: Providing personalised banking services and exclusive privileges to high-net-worth individuals, including dedicated relationship managers and preferential pricing.

Conclusion

In the dynamic world of Indian banking, Axis Bank Ltd. consistently showcases its dedication to innovation, expansion, and prioritising customers. With a long history, a variety of subsidiaries, insightful acquisitions, and a comprehensive range of products, this bank, recognised as India’s third-largest private sector institution, continues to be a central figure in setting the direction for India’s banking future.

With its strong market footprint, a dedicated team serving numerous customers, and consistent upward trends in its 5-year CAGR, Axis Bank undoubtedly holds a significant position in the banking sector. Its vast reach, both in India and abroad, shows its commitment to boosting economic progress and being there for its many customers. Whether you seek a simple savings account or complex investment solutions, Axis Bank is poised to serve you with professionalism and dedication, ensuring that your financial goals are within reach.

 

 

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