Axis Bank

Comparative Analysis

Chaitali Kambli
20152066-PGDM

Introduction
Axis Bank Limited (BSE: 532215, LSE: AXBC) is an Indian 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. As on the year ended 31 March, 2012, Axis Bank
had an operating revenue of13,437 crores and a net profit of 4242 crores. [1] Axis Bank
(erstwhile UTI Bank) opened its registered office in Ahmedabad and corporate office in
Mumbai in December 1993.The first branch was inaugurated in April 1994 in Ahmedabad by
Dr. Manmohan Singh , then the honorable Finance Minister . The Bank, as on 31st March,
2012, is capitalized to the extent of Rest . 413.20 crores with the public holding (other than
promoters and GDRs) at 54.08%.

Company History
In 1993 the Bank was incorporated on 3rd December and Certificate of business on 14th
December. The Bank transacts banking business of all description. UTI Bank Ltd. was
promoted by Unit Trust of India, Life Insurance Corporation of India, General Insurance
Corporation of India and its four subsidiaries. The bank was the first private sector bank to
get a license under the new guidelines issued by the RBI.
In 1998 the Bank has 28 branches in urban and semi urban areas as on 31st July. All the
branches are fully computerised and networked through VSAT. ATM services are available in
27 branches. The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs
10 each at a premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for sale of
2,00,00,000 No. of equity shares for cash at a price of Rs 21 per share. Out of the public issue
2,20,000 shares were reserved for allotment on preferential basis to employees of UTI Bank.
Balance of 3,47,80,000 shares were offered to the public.
In 2010 Axis Bank Limited has informed that at the meeting of the Board of Directors held
on January 15, 2010, the following decisions were taken:
(1) To appoint Dr. Adarsh Kishore, former Finance Secretary, Government of India and
former Executive Director, International Monetary Fund representing Bangladesh,
Bhutan, India and Sri Lanka, as the Non-Executive Chairman of the Bank, subject to
RBI approval;
(2) To appoint Shri S.B. Mathur, former Chairman, LIC and the National Stock Exchange
of India, as an Additional Independent Director, with immediate effect. AXIS Bank
Ltd has appointed Shri M. S. Sundara Rajan, former CMD, Indian Bank as an
Additional Independent Director with immediate effect.

VISION
We aspire to have a Value based society.

MISSION
We commit to use education as an instrument, to usher in a value oriented environment.
GOALS
To channelize organizational efforts to inculcate a sense of social responsibility.
To emerge as a centre of excellence in professional education, consultancy and research.
To foster inclusive growth we provide opportunities to all aspiring and deserving.
To expand the horizons of aspirants and enable them to work in crosscultural environment
by creating a robust foundation of attitude, knowledge and skill.

Competition

Name

Total Assets

Axis Bank
IndusInd Bank
Yes Bank
JK Bank
City Union
Bank
DCB
Lakshmi Vilas
Dhanlaxmi
Bank

2,85,627.79
57,596.07
73,662.12
60,269.22
14,591.52
8,676.84
13,301.19
14,268.16

Total Assets comparison

Chart Title
Axis Bank
Dhanlaxmi Bank
285,627.79

IndusInd Bank

Yes Bank

JK Bank

Lakshmi Vilas

DCB

City Union Bank

73,662.1260,269.22
57,596.07
14,268.1613,301.19 8,676.84 14,591.52
Total Assets

ICICI Bank, HDFC Bank, & Axis Bank started out at the same time around 1994 when
RBI allowed private banks to be set up. While all three thrived, there is no doubt that Axis
Bank (then UTI Bank) has always been the distant third.
All three banks had lots in common, like their strong parents, but while ICICI Bank and
HDFC Bank moved with decisive momentum throughout these 15 years, UTI Bank even had
to undergo a painful name change to Axis Bank.

Even recently, while there was smooth leadership change at both ICICI & HDFC with homegrown executives, Axis Bank had to bring in ICICI veteran Shikha Sharma for the top post.
Axis Bank needs to move much quicker with painful decisions like what ICICI Bank did with
their PoS terminal division recently. After a rapid innings of growing their Point of Sale (PoS)
business to 1.8 lakh terminals the countrys largest, ICICI Bank decided to sell the entire
business to First Data, citing increased pressure from shrinking margins. Axis Bank is still to
take a call on this, even while having only lower margins, and a PoS business of 1.2 lakh
terminals.
And even while Axis Bank finds it challenging to compete with ICICI Bank and HDFC, it is
facing increased pressure from public sector banks (PSBs). PSBs are lending at 11 12.25%,
against Axis Banks 12.75 16%.
One problem with Axis Bank seems to be its split ownership between - LIC, GIC, New India
Assurance, Oriental Insurance, United Insurance, & Specified Undertaking of UTI (SUUTI).
Even recently, Government had to intervene when most of the partners protested LICs bid to
take over the stake of SUUTI.

Scope of the Report

- Provides all the crucial information on Axis Bank Ltd. required for business and competitor
intelligence needs
- Contains a study of the major internal and external factors affecting Axis Bank Ltd. in the
form of a SWOT analysis as well as a breakdown and examination of leading product
revenue streams of Axis Bank Ltd.
-Data is supplemented with details on Axis Bank Ltd. history, key executives, business
description, locations and subsidiaries as well as a list of products and services and the latest
available statement from Axis Bank Ltd.
- Support sales activities by understanding your customers businesses better
- Qualify prospective partners and suppliers
- Keep fully up to date on your competitors business structure, strategy and prospects
- Obtain the most up to date company information available