Axis Bank, sep 2011

Axis Bank Limited

Type Traded as Industry Founded

Public BSE: 532215 LSE: AXBC NSE: AXISBANK Banking, Financial services 1994 Adarsh Kishore, Chairman Shikha Sharma MD & CEO Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management 198.26 billion (US$4.02 billion)
(2011)
[1]

Headquarters Mumbai, India Key people

Products

Revenue Net income AUM Employees

33.88 billion (US$687.09 million) (2011) [1] US$ 40.121 billion (2010) 21,640 (2010)[2]

www.axisbank.com Website Axis Bank Limited, formerly UTI Bank, (BSE: 532215, LSE: AXBC) is a financial services firm that had 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 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. [3] After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.[4] As on the year ended 31 March 2009 the Bank had a total income of 13,745.04 crore (US$2.79 billion) and a net profit of 1,812.93 crore (US$367.66 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.[5]

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 1281 branches and Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs (as on 31st March, 2011). The Bank has loans now (as of June 2007) account for as much as 70 per cent of the banks 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 banks fundamentals are quite resilient. With the high level of midcorporate 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. 409.90 crores with the public holding (other than promoters and GDRs) at 53.63%. It is also listed in the top 100 most trusted brands of India in the Brand Trust Report

Agri & Rural Banking

Axis Bank one of the largest private sector financer in India for Agriculture loans wiz Retail Agri & Corporate Agri

AxisRemit Online
This is a convenient and secure portal for NRIs to remit money to India, generally required for maintenance of their relatives. It is a growing revenue stream for the bank, with more and more NRIs registering to avail of the highly competitive exchange rates and convenient online facility.

Rural Banking
Bank has embarked on a unique strategy - RURAL BANKING STRATEGY to spread its presence in the rural areas. As a part of Bank's strategy of being a total solutions Bank, we launched our Rural Banking Strategy with branches in Punjab, Tamil Nadu, Rajasthan and Gujarat. Axis Bank will be opening 100 such branches across India under the Rural Banking Strategy in addition to our normal network expansion plans by the end of this financial year. The launch is a part of Axis Bank's initiative of extending its foot print in Tier III, IV and V centres with a population of around 10000 up to 50000. The Bank is aiming at achieving the twin objectives of tapping semi urban and rural potential as well as bringing technology

driven banking services to the hinterland and especially in under banked Districts and States. Considering the rural character, we shall offer rural specific products & services in such locations to cater the wide spread mass segment. Axis Bank is actively involved in microfinance and extends financial assistance to Microfinance Institutions (MFIs). The Bank commenced lending to the microfinance sector in the year 2005. We extend credit facilities to MFIs working for economic empowerment of micro-entrepreneurs and low income earners by providing financial services in a sustainable, ethical and profitable manner. The Bank primarily extends term loans and cash credit limits to established and well rated MFIs. These facilities are for on-lending to their clients. The Bank has microfinance partners in almost all the regions of the country with special focus on the underserved areas. The Bank plans to reach out and make a positive impact on the poor through financial inclusion by providing specially designed products and services in a commercially viable manner. This would lead to economic empowerment of the masses and bring them into the national mainstream.

Kisan Power
Kisan Power aims at providing adequate and timely credit to farmers for meeting cultivation needs including purchase of inputs, investment needs like purchase of agricultural implements, land development, purchase of bullocks and carts, two/three/four wheelers, repair of farm machinery or any other needs including domestic needs like expenditure on account of sickness, children's education and family functions etc. The product gives the farmer the flexibility to choose between cash credit and term loans with friendly repayment terms. Eligibility Farmer who is an owner cultivator, a tenant cultivator or a sharecropper is eligible for these loans. Minimum landholding should be two acres of cultivable land. Loan Amount Minimum : Rs 25,001 Maximum : Rs 25,00,000 Repayment Loan tenure is fixed by allowing reasonable period for marketing the agricultural produce after harvest of the crop, subject to maximum of 1 year in case of cash credit, to 7 years for term loans.

Powertrac
Under Power Trac, we finance farm equipments and machinery (including tractors and accessories) for agricultural purposes. Eligibility Agriculturist who is a major One guarantor required Loan Amount We fund a maximum of 85% of the cost of the tractor, 75% of the cost of the trailer and 60% of the cost of the implements. Documentation Application form with photograph of the customer and all co applicants and/or guarantor Proforma Invoice of the asset to be funded from an authorized dealer Land records of the borrower(s) Proof of identity and address of the borrower(s) Tenor and repayment Upto 7 years

Flexible repayment in quarterly or half-yearly or yearly installments

Commodity Power
Commodity Power is a scheme offered by Axis Bank Ltd. which aims at financing the pledged stocks of agro commodities stored in various godowns/warehouses/cold storages managed by CWC/SWC/Private warehouses, (under the supervision of the empanelled Collateral Managers of Axis Bank Ltd.) through a unique customer friendly credit facility, i.e. Credit Line facility. The intention is to avoid the distress sales at the time of harvest, neutralize the seasonality factor in pricing and enhance income for farmers by providing liquidity at times when cash flows dry out. Key Features A wide plethora of agro-commodities are financed from more than 85 designated branch locations. Swift loan processing and disbursement. Commodities will remain under safe supervision of professional Collateral Managers Attractive Rates of Interest Prompt customer services through our exclusive Commodity Officers at each designated branch location. Axis Bank is one of the prominent banks for commodity based financing in the country

Contract Farming
Axis bank finances farmers who have a tie-up arrangement with corporates. Under this arrangement the farmer and company enter into an agreement for production and supply of agricultural produce. The benefits that accrue for the corporate & farmer are as under: For Farmer: Access to Pre & Post-Harvest finance. Instant payment for supplies made. Incentive for cultivating premium crops/varieties. Mitigate marketing risk by tie-up with a reliable long term partner. For corporate: Ability to reach/tap huge farmer base & enhance farmer loyalty. Assured raw material supply. Mitigate risk of price volatility.

Other Products
Rural Godowns We provide loans for construction, renovation and expansion of godowns in rural and semiurban areas at attractive rates. Cattle Power Scheme for providing cattle loans to farmers through dairies and co-operatives, for o Purchasing milch animals o Construction of shed for keeping cattle