Company 3: Axis Bank Ltd.

General Overview
Axis Bank is the third largest private sector bank in India. The Bank
offers the entire spectrum of financial services to customer segments
covering Large and Mid-Corporates, MSME, Agriculture and Retail
Businesses.
The Bank has a large footprint of 4,050 domestic branches (including
extension counters) with 11,801 ATMs & 4,917 cash recyclers spread
across the country as on 31st March, 2019. The overseas operations of
the Bank are spread over nine international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai;
representative offices at Dhaka, Dubai, Abu Dhabi and an overseas
subsidiary at London, UK. The international offices focus on corporate
lending, trade finance, syndication, and investment banking and liability
businesses.
Axis Bank is one of the first new generation private sector banks to have
begun operations in 1994. The Bank was promoted in 1993, jointly by
Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit
Trust of India), Life Insurance Corporation of India (LIC), General
Insurance Corporation of India (GIC), National Insurance Company Ltd.,
The New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd. The
shareholding of Unit Trust of India was subsequently transferred to
SUUTI, an entity established in 2003.
With a balance sheet size of Rs. 8,00,997 crores as on 31st March
2019, Axis Bank has achieved consistent growth and with a 5 year
CAGR (2013-14 to 2018-19) of 16% in Total Assets, 14% in Total
Deposits, 17% in Total Advances.
Management of the Company

 Committee of Directors

Name of Members Category

Shri S. Vishvanathan Chairman
Shri Amitabh Chaudhry Member
Smt. Ketaki Bhagwati Member
Shri B. Baburao Member
Shri Rajiv Anand Member

 Audit Committee of the Board

Name of Members Category

Shri Girish Paranjpe Chairman
Shri S. Vishvanathan Member
Shri Rakesh Makhija Member
Shri B. Baburao Member

 Risk Management Committee

Name of Members Category

Smt. Ketaki Bhagwati Chairman
Shri Amitabh Chaudhry Member
Shri Rohit Bhagat Member
Smt. Usha Sangwan Member
Shri Rajiv Anand Member

 Stakeholders Relationship Committee (erstwhile

Shareholders/Investors Grievance Committee)

Name of Members Category

Shri B. Baburao Chairman
Shri Rajesh Dahiya Member
Shri S.Vishvanathan Member
  Nomination and Remuneration Committee

Name of Members Category

Shri Rohit Bhagat Chairman
Shri Rakesh Makhija Member
Shri Stephen Pagliuca Member

 Special Committee of the Board of Directors for Monitoring of Large

Value Frauds

Name of Members Category

Shri B Babu Rao Chairman
Shri Amitabh Chaudhry Member
Shri Rakesh Makhija Member
Shri Rajesh Dahiya Member
Smt. Usha Sangwan Member

 Customer Service Committee

Name of Members Category

Shri Amitabh Chaudhry Chairman
Shri B. Baburao Member
Smt. Usha Sangwan Member
Shri Girish Paranjpe Member
Shri Pralay Mondal Member

 IT Strategy Committee

Name of Members Category

Shri Girish Paranjpe Chairman
Shri Amitabh Chaudhry Member
Shri Pralay Mondal Member

 Corporate Social Responsibility Committee

Name of Members Category

Shri Rakesh Makhija Chairman
Shri Rajiv Anand Member
Shri Rajesh Dahiya Member

 Review Committee (erstwhile Grievance Redressal Committee)

Name of Members Category

Shri Amitabh Chaudhry Chairman
Shri S. Vishvanathan Member
Smt. Ketaki Bhagwati Member

 Acquisitions, Divestments and Mergers Committee

Name of Members Category

Shri Rohit Bhagat Chairman
Shri Amitabh Chaudhry Member
Shri Rakesh Makhija Member
Smt. Ketaki Bhagwati Member

 Committee of Whole-Time Directors

Name of Members Category

Shri Amitabh Chaudhry Chairman
Shri Rajiv Anand Member
Shri Rajesh Dahiya Member
Shri Pralay Mondal Member

SWOT Analysis

Strengths in the SWOT analysis of Axis bank

 Axis bank has been given the rating as one of top three positions in
terms of fastest growth in private sector banks
 Financial express has given number two position and BT-KPMG
has rated AXIS bank as the best bank with some 26 parameters
 The bank has a network of 1,493 domestic branches and 8,324
ATMs
 The bank has its presence in 971 cities and towns
  The banks financial positions grows at a rate of 20% every year
which is a major positive sign for any bank
 The company’s net profit is Q3FY12 is 1,102.27 which has an
increase of 25.19% growth compared to 2011

Weaknesses in the SWOT analysis of Axis bank

 Gaps – Majorly they concentrated in corporate, wholesale banking,
treasury services, retail banking
 Foreign branches constitute only 8% of total assets
 Very recently the bank started focusing its attention towards
personal banking and rural areas
 The share rates of AXIS bank is constantly fluctuating in higher
margins which makes investors in an uncomfortable position most
of the time
 There are lot of financial product gaps in terms of performance as
well as reaching out to the customer
 There are many fraudulent activities involved in credit cards as the
banks process credit card approval even without verification of
original documents
 Their financial consultants are not wise enough to guide the
customers towards right investments
 Customer service has to improve a lot in order to be in race with
other major players

Opportunities in the SWOT analysis of Axis bank

 Acquisitions to fill gap.
 In 2009, Alliance with Motilal Oswal for online trading for 10 million
customers.
 In 2010, acquired Enam Securities Pvt Ltd – broking and
investment banking.
 In Sep 2009, SEBI approved Axis Asset Management Co. for
mutual fund business.
 No. of e-transactions increased from 0.7 million to around 2 million.
 Geographical expansion to rural market – 80% of them have no
access to formal lending.
 46% use informal lending channels.
 24% unregulated money lenders.
 Now number of branches increased to 1493 from 339.
  Last quarter there were 48 new branches opened across the
Nation.
 Since it’s a new age banking there are lot of opportunities to have
the advance technicalities in banking solutions compared to existing
major players

 The assets in their international operations are growing at a very

faster pace with a growth rate of 9%.
 The concept of ETM (Everywhere teller machine) by AXIS Bank
had a good response in terms of attracting new customers in
personal banking segment.

Threats in the SWOT analysis of Axis bank

 Since 2009, RBI has increased CRR by 100 basis points
 Increased repo rate reverse repo rate by 50 points – 11 times of
late
 Increasing popularity of QIPs due to ease in fund raising
 RBI allowed foreign banks to invest up to 74% in Indian banking
 Government schemes are most often serviced only by govern
banks like SBI , Indian Banks, Punjab National Bank etc.
 ICICI and HDFC are imposing strong threats in terms of their
expansion in customer base by their aggressive marketing
strategies
Competitive Analysis
Future of the Company
Private lender Axis Bank NSE -1.54%plans to raise as much as Rs
10,000 crore in a share sale to raise capital buffer to drive its loans
growth, mostly in retail and select corporate working loans, two persons
familiar with the matter said.

The bank is already talking to a clutch of potential investors and

expected to soon seek board approval for the planned fund-raise, one of
the persons cited above said.
“A fund raise is still under consideration. Under the new CEO, the bank
is looking to push loan growth, after Bain’s ‘confidence capital’ in 2017,
this will be the largest fund raise,” said a person in the know of the
matter.

In November 2017, Axis Bank raised over Rs 11,500 crore in a share

and warrants sale to Bain Capital, Capital International and its biggest
shareholder, Life Insurance Corporation.

In its investor call in April this year, the management had said that it has
adequate capital to pursue growth opportunities in the near term. The
bank’s CET1 ratio at the end of March 2019 was 11.27 per cent with a
Tier 1capital adequacy of 12.54 per cent.

“Based on their current capital ratios, I don’t think Axis Bank needs any
funds right now,” said an analyst who did not wish to be identified. “The
bank has already said their clean-up exercise is complete, so I think they
may need capital next year.”