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Axis Bank Limited (formerly UTI Bank) is the third largest private sector bank in India. Axis
Bank's stake holders include prominent national and international entities. As of 31 Dec.
2013, approximately 43% of the shares are owned by Foreign Institutional Investors.
Promoters (UTI, LIC and GIC), who collectively held approx. 34% of the shares, are all
entities owned and controlled by theGovernment of India. The remaining 23% shares are
owned by corporate bodies, financial institutions and individual investors among others. The
bank offers financial services to customer segments covering Large and Mid-Sized
Corporates, MSME, Agriculture and Retail Businesses. [1] Axis Bank has its registered office
at Ahmedabad.
Operations
Indian Business: As of 22 April 2016, the bank had a network of 3062 branches and
extension counters and 12922 ATMs.[5] Axis Bank has the largest ATM network among
private banks in India[6][7] and it operates an ATM at one of the worlds highest sites at
Thegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level.[8]
International Business: The Bank has eight international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Shanghai, Colombo[9] and representative
offices at Dubai and Abu Dhabi, which focus on corporate lending, trade finance,
syndication, investment banking and liability businesses. In addition to the above, the Bank
has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited. [5][10] The total
assets of the overseas branches were US$7.86bn ().
Services[edit]
As of 2014, Axis Bank operates in four segments: treasury operations, retail
banking, corporate banking, and wholesale banking.[11]
Treasury operations[edit]
The Banks treasury operation services include investments in sovereign and corporate
debt, equity and mutual funds, trading operations, derivative trading and foreign exchange
operations on the account, and for customers and central funding. [3]
Retail banking[edit]
In the retail banking category, the bank offers services such as lending to individuals/small
businesses subject to the orientation, product and granularity criterion, along with liability
products, card services, Internet banking, automated teller machines (ATM) services,
depository, financial advisory services, and Non-resident Indian (NRI) services.[3]Axis bank is
a participant in RBI's NEFT enabled participating banks list. [12]
Corporate/wholesale banking[edit]
The Bank offers to corporate and other organisations services including corporate
relationship not included under retail banking, corporate advisory services, placements and
syndication, management of public issues, project appraisals, capital market related
services and cash management services.
NRI services[edit]
Products and services for NRIs that facilitate investments in India. [13]
Business banking[edit]
The Bank collects income and other direct taxes through its 214 authorised branches at 137
locations and central excise and service taxes (including e-Payments) through 56
authorised branches at 14 locations.[3]
Investment banking[edit]
Banks Investment Banking business comprises activities related to Equity Capital
Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBIregistered Category I Merchant Banker and has been active in advising Indian companies in
raising equity through IPOs, QIPs, and Rights issues etc. During the financial year ended 31
March 2012, Axis Bank undertook 9 transactions including 5 IPOs and 2 Open Offers.
[3]
Agriculture banking[edit]
759 branches of the Bank provide banking services, including agricultural loans, to farmers.
[3]
As on 31 March 2013, the Banks outstanding loans in the agricultural sector was INR 148
History[edit]
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai in
December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by
Dr.Manmohan Singh, then Finance Minister of India. UTI Bank began its operations in 1993,
after the Government of India allowed new private banks to be established. The Bank was
promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I), Life Insurance
Corporation of India (LIC), General Insurance Corporation, National Insurance
Company, The New India Assurance Company, The Oriental Insurance Corporation
and United India Insurance Company.
In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but
the Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004 the
RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of
Commerce.
UTI Bank opened its first overseas branch in 2006 Singapore. That same year it opened a
representative office in Shanghai, China.
UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That same
year it began branch operations in Hong Kong. The next year it opened a representative
office in Dubai.
Axis Bank opened a branch in Colombo in October 2011, as a Licensed Commercial Bank
supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a
representative offices in Abu Dhabi.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank
UK has a branch in London.
Initiatives[edit]
The Business Gaurav SME Awards: In 2011 centres and SME cells each across the
country, taking the total number to 32 SME Centres. The Bank also organised the 'Business
Gaurav SME Awards' in association with Dun & Bradstreet to recognise and award
achievements in the SME space.[14]
Financial inclusion: Till March 2012, the Bank had opened over 4.4 million No
Frills accounts in over 7607 villages through a network of 15 Business Correspondents and
nearly 6000 customer service points. Axis Bank has a strong presence in Electronic Benefit
Transfer (EBT) and has covered 6800 villages across 19 districts and 9 states till date with
over 3.7 million beneficiaries.
Industry First Initiatives:
Axis Bank launched Mobile Banking App 2.0 for its retail resident Indian customers
the first of its kind in India, which offers a high level of personalisation . The App has
been launched in partnership with Tagit, a leading Singapore mobile solutions company.
The new application uses Tagit's mobility solution platform that enables Banking on-thego.[15][16]
'Axis Bank - ISIC Forex Card' for students, is the first photo Travel Currency Card
available in USD, Euro, GBP and AUD currencies. It can be used across 34 million
merchant locations and at over 2 million MasterCard ATMs globally.[17]
Axis Bank has partnered with Visa to launch 'eKYC' (electronic Know your customer)
facility, first organisation in India to introduce Biometrics based KYC, offering
'Consistent Performer' in 'Indias Best Banks 2012 survey' by Business Today and
KPMG[20]
Axis Bank Foundation: Axis bank has set up this trust in 2006 and supports
supplementary education. Axis Bank contributes up to 1 percent of its net profit annually
to various social initiatives undertaken by this foundation. [22] During the year 201112,
the foundation has partnered with 36 NGOs for educating over a lakh underprivileged
and special kids in 13 states.
Green Banking: The recycling initiative under the Green Banking banner has helped
the bank productively use around 21572 kilograms of dry waste during the year.[3] The
Axis Bank's corporate office in Mumbai is designed and constructed as a
Platinum LEED-Certified Green Building.[3]
The bank aims to increase its share in the financial services sector by continuing to build a
strong retail franchise. The segment continues to be one of the key drivers of the Banks
growth strategy, encompassing a wide range of products delivered through multiple
channels to customers. It offers a complete suite of products across deposits, loans,
investment solutions, payments and cards.[26]
Shareholders (as on 31-Dec-2013)
Shareholding[25]
Promoter Group
33.88%
43.18%
Individual shareholders
06.61%
Bodies Corporate
06.03%
Mutual funds
04.47%
GDR
03.90%
00.85%
Others
01.08%
Total
100.0%
Employees[edit]
As on 31 March 2013, Axis Bank had 37,901 employees, out of which 7,117 employees
were women (19%). The bank incurred INR 26.7 billion on employee benefits during the FY
2012-13.[3] The average age of an Axis Bank employee is 29 years. [27] The attrition rate in
Axis Bank is approx. 9% per year.[28]
Hdfc bank
HDFC Bank Limited (Housing Development Finance Corporation) is an Indian banking
and financial services company headquartered in Mumbai, Maharashtra. It has about
76,286 employees including 12,680 women[6] and has a presence in Bahrain, Hong Kong
and Dubai.[7] HDFC Bank is the second largest private bank in India as measured by assets.
[8]
It is the largest bank in India by market capitalization as of February 2016. [9] It was ranked
58th among Indias most trusted brands according to Brand Trust Report, 2015. [10]
Total balance sheet size as of December 31, 2015 was Rs. 687,892 crores as against Rs.
534,855 crores as of December 31, 2014. The Banks total income for the quarter ended
December 31, 2015 was Rs.18,283.3 crores, up from Rs.14,930.7 crores for the quarter
ended December 31, 2014. Net revenues (net interest income plus other income) increased
by 20.7% to Rs. 9,940.7 crores for the quarter ended December 31, 2015 as against Rs.
8,234.8 crores for the corresponding quarter of the previous year.[11]
Contents
[hide]
1History
2Acquisitions
o
2.1Times Bank
3.3Treasury
4Operations
4.1Subsidiaries
6CSR Activities
7.12016
7.22015
7.32014
7.4Controversies
8See also
9References
10External links
History[edit]
In 1994, HDFC Bank Limited was incorporated, with its registered office in Mumbai, India.
Its first corporate office and a full service branch at Sandoz House, Worli was inaugurated
by the then Union Finance Minister, Dr. Manmohan Singh.
It operates in 2,505 cities in India with 4,281 branches which are linked on an online realtime basis. The Bank has a network of 11,843 ATMs across India. [12]
Acquisitions[edit]
Times Bank[edit]
In February, 2000, Times Bank Limited (a new private sector bank promoted by Bennett,
Coleman & Co. / Times Group) merged with HDFC Bank Ltd. This was the first merger of
two private banks in the New Generation Private Sector Banks category. As per the scheme
of amalgamation approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of
Times Bank.[13]
In 2008, Centurion Bank of Punjab (CBoP) was acquired by HDFC Bank Ltd. HDFC Bank
Board on 25 February 2008 approved the acquisition of CBoP for Rs 9,510 crore in one of
the largest mergers in the financial sector in India. As per the scheme of amalgamation,
shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.[14]
Treasury[edit]
The bank has three main product areas - Foreign Exchange and Derivatives, Local
Currency Money Market & Debt Securities, and Equities. These services are provided
through the bank's Treasury team. To comply with statutory reserve requirements, the bank
is required to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.
Operations[edit]
As of December 31, 2015, the Banks distribution network was at 4,281 branches in 2,505
cities in India, and all branches of the Bank are linked on an online real-time basis. [20]The
Bank has overseas branch operations in Bahrain, Hong Kong and Dubai. [21] Customers
across India are also serviced through multiple delivery channels such as Phone
Banking, Net Banking, Mobile Banking and SMS based banking.[22]
The Bank also has a network of 11,843 ATMs across India. [20]
Subsidiaries[edit]
HDB Financial Services Limited (HDBFS) is engaged in retail asset financing. It is a
non-deposit taking non-bank finance company (NBFC). [23] Apart from lending to individuals,
the company grants loans to micro, small and medium business enterprises. It also runs call
centers for collection services to the HDFC Banks retail loan products. The Company is
promoted by HDFC Bank Ltd which has 97.42% shareholding in the Company as on 31
March 2012.[24] As of March 31, 2015, HDBFS had 425 branches in 265 cities. During the FY
2013-14, HDBFS had turnover of Rs 1688.27 crores and profit after tax of Rs 209.24 crores.
[25]
HDFC Securities Limited (HSL) is engaged in stock broking. As of March 31, 2014,
HDBFS has 200 branches across 160 cities. HDFC Bank has 89.24% shareholding in HSL.
During the FY 2013-14, HSL had turnover of Rs 263.1 crores and profit after tax of Rs 78.4
crores.[26]
Shareholding[27]
21.57%
32.40%
Individual shareholders
8.5%
Bodies Corporate
07.50%
Insurance companies
05.38%
Mutual Funds/UTI
8.65%
NRI/OCB/Others
00.29%
Financial Institutions/Banks
2.75%
ADS/GDRs
18.78%
CSR Activities[edit]
HDFC Bank has taken several steps as a part of their Corporate Social Responsibility. It
has collaborated with several NGOs to assist in its activities.
Initiative
Sustainable
Livelihood
Financial
Objective
Activities
especially women.
Literacy
Training
Community
Initiatives
aegis of RBI.
development of youth
Hope Foundation
Focused on sustainable
growth
Microfinance[28]
2015
India[31]
Barron's
Puri[32]
Processing Rates[33]
2015[edit]
AIMA Managing India Awards 2015
Barron's
Forbes Asia
2014[edit]
Euromoney
Controversies[edit]
Money laundering allegations
On 14 March 2013 an online magazine named Cobrapost.com released video footage
from Operation Red Spider showing high-ranking officials and some employees of HDFC
bank and two other leading banks, willing to turn black money into white, a violation
of Money Laundering Control Act.
Following the release of the footage, the Government of India and RBI ordered an inquiry.[48]
[49][50]
The banks under question also conducted investigations of their own. HDFC
appointed Deloitte Touche Tohmatsu to conduct a forensic inquiry. The bank also
appointed Amarchand & Mangaldas & Suresh A Shroff & Co (AMSS), a law firm based in
India, to investigate in association with the internal departmental inquiry, the breaches in the
banks code of conduct and ethical standards by the officials involved. [51] On 16 March 2013,
HDFC released a statement announcing the suspension of over 20 employees involved in
the videotape to ensure fair and unbiased investigation process. [52][53]
The RBI forensic investigation did not reveal any prima facie evidence for the allegations of
money laundering. Deputy Governor at RBI, K.C. Chakrabarty, said in an interview that no
transactions had taken place.[54] The Executive Director of HDFC, Paresh Sukthankar, also
confirmed that their investigations revealed the same on 24 April 2013, "The issue is being
reviewed and investigated from multiple quarters. Clearly, all the investigations have shown
that there have been no instances of transactions actually taking place. Our belief is that the
existing processes seem to have worked in not allowing these transactions to happen." [53]
However, RBI investigations revealed violations of KYC (Know Your Customer) norms, for
which the three banks were imposed penalty, with Rs. 4.5 crores imposed on HDFC. [55]