AXIS BANK

Axis Bank India, the first bank to begin operations as new private banks in 1994 after
the Government of India allowed new private banks to be established. Axis Bank was
jointly promoted 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.
Also with associates viz. National Insurance Company Ltd., the New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.
Axis Bank in India today is capitalized with Rs.405.17 Crores. It has more than 200
branch offices and Extension Counters in the country with over 4293 Axis Bank ATM
proving to be one of the largest ATM networks in the country. Axis Bank India
commits to adopt the best industry practices internationally to achieve excellence.
Axis Bank has strengths in retail as well as corporate banking. By the end of
December 2004, Axis Bank in India had over 2.7 million debit cards. This is the first
bank in India to offer the AT PAR Cheque facility, without any charges, to all its
Savings Bank customers in all the places across the country where it has presence.
With the AT PAR cheque facility, customers can make cheque payments to any
beneficiary at any of its existence place. The ceiling per instrument is Rs.
50,000/-.The latest offerings of the bank along with Dollar variant is the Euro and
Pound Sterling variants of the International Travel Currency Card. The Travel
Currency Card is a signature based pre-paid travel card which enables travelers
global access to their money in local currency of the visiting country in a safe and
convenient way. The Bank has strengths in both retail and corporate banking and is
committed to
adopting the best industry practices internationally in order to achieve excellence

EVOLUTION:
UTI was established in 1964 by an Act of Parliament; neither did the Government of
India own it nor contributes any capital. The RBI was asked to contribute one-half of
its initial capital of Rs 5 crore, and given the mandate of running the UTI in the
interest of the unit-holders. The State Bank of India and the Life Insurance
Corporation contributed 15 per cent of the capital each, and the rest was contributed
by scheduled commercial banks which were not nationalized then. This kind of
structure for a unit trust is not found anywhere else in the world. Again, unlike other
unit trusts and mutual funds, the UTI was not created to earn profits.
In the course of nearly four decades of its existence, it (the UTI) has succeeded
phenomenally in achieving its objective and has the largest share anywhere in the
world of the domestic mutual fund industry. '' The emergence of a "foreign expert"
during the setting up of the UTI makes an interesting story. The announcement by
the then Finance Minister that the Government of India was contemplating the
establishment of a unit trust caught the eye of Mr. George Woods, the then President
of the World Bank. Mr. Woods took a great deal of interest in the Indian financial
system, as he was one of the principal architects of the ICICI, in which his bank, First
Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through
Mr. B.K. Nehru, who was India's Executive Director on the World Bank, the services
of an expert. The Centre jumped at the offer, and asked the RBI to hold up the
finalization of the unit trust
Proposals till the expert visited India. The only point Mr. Sullivan made was that the
provision to limit the ownership of units to individuals might result in unnecessarily
restricting the market for units. While making this point, he had in mind the practice
in the US, where small pension funds are an important class of customers for the
unit trusts. The Centre accepted the foreign expert's suggestion, and the necessary
amendments were made in the draft Bill. Thus, began corporate investment in the
UTI, which received a boost from the tax concession given by the government
in the 1990-91 Budget. According to this concession, the dividends received by a
company from investments in other companies, including the UTI, were completely
exempt from corporate income tax, and provided the dividends declared by the
investing company were higher than the dividends received.

The result was a phenomenal increase in corporate investment which accounted for
57 per cent of the total capital under US-64 scheme. Because of high liquidity the
corporate sector used the UTI to park its liquid funds. This added to the volatility of
the UTI funds. The corporate lobby which perhaps subtly opposed the establishment
of the UTI in the public sector made use of it for its own benefits later. The
Government-RBI power game started with the finalization of the UTI charter itself.
The RBI draft of the UTI charter stipulated that the Chairman will be nominated by it,
and one more nominee would be on the Board of Trustees. While finalizing the draft
Bill, the Centre changed this stipulation. The Chairman was to be nominated by the
Government, albeit in
Consultation with RBI. Although the appointment was to be made in consultation with
the Reserve Bank, the Government could appoint a person of its choice as Chairman
even if the Bank did not approve of him.

BUSINESS DESCRIPTION:
The Bank's principal activities are to provide commercial banking services which
include merchant banking, direct finance, infrastructure finance, venture capital fund,
advisory, trusteeship, forex, treasury and other related financial services.

SUBSIDIARIES
The Bank has set up five wholly-owned subsidiaries:
Axis Securities and Sales Ltd.,
Axis Private Equity Ltd.,
Axis Trustee Services Ltd.,
Axis Asset Management Company Ltd. and
Axis Mutual Fund Trustee Ltd.
Axis Securities and Sales Ltd. was set up in December 2005 (originally
incorporated as UBL Sales Ltd., renamed as Axis Sales Ltd. in 2007
and now rechristened as Axis Securities and Sales Ltd. on 5 April 2010) to market
credit cards and retail asset products. The objective of setting up the subsidiary was
to build a specialized force of sales personnel and optimize operational efficiency by
providing greater control over the sales effort in comparison with a Direct Sales
Agent (DSA) model. The scope of activities of the subsidiary has now been enlarged
to include retail broking.
In October 2006, the Bank set up Axis Private Equity Ltd., primarily to carry on
the activities of managing equity investments and provide venture capital support to
businesses.
Axis Trustee Services Company Ltd. was established in May 2008 to engage
in trusteeship activities (e.g. acting as a debenture trustee, the trustee to various
securitization trusts as well as other trusteeship businesses).
Axis Asset Management Company Ltd. was set up primarily to carry on the
activities of managing a mutual fund business in January 2009 and in the same year,
Axis Mutual Fund Trustee Ltd. was set up, to act as the trustee for the mutual fund
business.
Joint Venture
Bussan Auto Finance India Private Limited
Based on RBI guidelines, details of transactions with Joint Venture Companies are
not disclosed since there is only one entity / party in this category.

PROMOTERS:
UTI Bank Ltd. has been promoted by the largest and the best Financial Institution of
the country,UTI. The Bank was set up with a capital of Rs. 115 crore, with
UTI contributing Rs. 100 crore,
LIC - Rs. 7.5 crore
GIC and its four subsidiaries contributing Rs. 1.5 crore each.
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963,
with a view to encourage savings and investment. In December 2002, the UTI Act,
1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking
and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI
into 2 entities, UTI-I and UTI-II with effect from 1st February 2003.

The present shareholding pattern is as mentioned below:

(As on 31st march, 2010)

Sr. No Name of the Shareholders

i.

% of Paid Up
Capital

Administrator of the Specified Undertaking of the 24.00 %

ii.

Unit Trust of India (UTI-I)

Life Insurance Corporation of India

iii.

General Insurance Corporation and four PSU 4.27 %

iv.

Insurance Companies
Overseas Investors including FIIs/ OCBs/ NRIs

v.
vi.

Foreign Direct Investment (GDR issue

10.27 %

33.68 %
8.37%

Other Indian Financial Institutions/ Mutual Funds/ 7.07 %

Banks

vii.

others
Total

12.34 %
100.00 %

Axis Bank is today one of the most competitive and profitable banking
franchise in India. Which can be clearly seen by an analysis of its comprehensive
portfolio of banking services including Corporate Credit, Retail Banking, and
Business Banking? Capital Markets, Treasury and International Banking.

The Position in the financial year 2009-2010 was as under.The paid up capital of the Bank as on 31 March 2010 rose to Rs. 405.17 crores
from Rs. 359.01 crores as on 31 March 2009
Profit after tax up 38.51% to Rs. 2,514.53crores
Net Interest Income up 35.76% to Rs. 5,004.49crores
Fee & Other Income up 23.80% to Rs. 3,123.40crores
Deposits up 20.38% to Rs. 141,300.22crores
Demand Deposits up 30.38% to Rs. 66,029.54crores
Advances up 27.94% to 104,343.12Rs. crores
Retail Assets up 29.72% to Rs. 20,922.90crores
Network of branches and extension counters increased from 835 to 1,035
Total number of ATMs went up from 3,595 to 4293
Net NPA ratio as a percentage of net customer assets up to 0.36%from 0.35%
Earnings per share (Basic) increased from Rs. 50.61 to Rs. 65.78
Proposed Dividend up from 100% to 120%
Capital Adequacy Ratio stood at as 15.80% against the minimum regulatory norm
of 9%

2.2 Board of Directors

PERSON

DESIGNATION

Dr. Adarsh Kishore

Chairman

Smt. Shikha Sharma

Managing Director & CEO

Shri M. M. Agrawal

Deputy Managing Director

Shri J.R. Varma

Director

Dr. R.H. Patil

Director

Smt. Rama Bijapurkar

Director

Shri R.B.L. Vaish

Director

Shri M.V. Subbiah

Director

Shri K. N. Prithviraj

Director

Shri V. R. Kaundinya

Director

Shri S. B. Mathur

Director

Shri P J Ojha

Company Secretary

Mission
Customer service and product innovation tuned to diverse needs of
individual and corporate clientele.
Continuous technology up gradating while maintaining human
values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
Customer Satisfaction through providing quality service effectively
and efficiently.

Core Values

Smile, it enhances an individuals face value is a service quality

stressed on Periodic Customer Service Audits.

Maximization of Stakeholder value.

Success through Teamwork, Integrity and People.

UNIT: AXIS BANK LIMITED

Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad 500 081
Tel. No. : 040 23420815 to 23420824 Fax No. : 040-23420814
Registered Office
Trishul, 3rd Floor, Opp. Samartheshwar Temple, Law Garden,
Ellis Bridge,
Ahmedabad 380 006. Tel No. : 079 2640 9322 Fax No. : 079 2640 9321
Email: p.oza@axisbank.com/rajendra.swaminarayan@axisbank.com
Web site: www.axisbank.com
Central Office
Maker Towers F, 13th Floor, Cuffed Parade, Colaba, Mumbai 005.
Tel. No. : 022 67074407 Fax No. : 022 2218 6944/2218 1429

2.3Axis bank offers its services majorly in four parts:

A. Personal
B. Corporate
C. NRI
D. Priority banking

A. Personal
Axis bank offers various services for individual domestic customers, which includes
services like
1. Accounts
2. Deposits
3. Loans
4. Cards
5. Forex
6. Invstments
7. Insurance
8. Payments
9. Other services

1. The accounts offered by axis bank for its customers are:

i.

EasyAccess Savings Account

EasyAccess Savings Account gives instant access to customers
money anywhere, anytime. Possessing a range of unmatched features,
it has been devised to better suit the convenience of our eclectic client
base.
These services can be availed with a minimum quarterly average
balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi
urban centers and Rs. 1,000 in rural centers.

ii.

Krishi Savings Account

. This product has been specially designed keeping in mind the unique
requirements of a farmer and true to its nature has been called the
Krishi Savings Account. This account is offered with the requirement of
maintaining the half-yearly average balance of Rs 1000 only.
Being a Krishi account holder, farmers are entitled to access Axiss
wide network of more than 1000 branches and 4055 ATMs across 440
cities. They can now easily carry out their transactions through any of
the branches or ATMs.

iii.

Prime Savings Account

At Par Cheque Facility with an enhanced limit upto Rs. 1,00,000

Free cash withdrawal upto 5 transactions at other bank ATM's.
Free monthly statement of account
Free DD/PO (drawn on Axis Bank Centers)
Free Passbook
International Debit card with an Accidental Insurance cover upto Rs. 2
lakhs (Issuance charge waived) [To keep your personal accident
insurance cover activated, you should have made a purchase
transaction in 365 days prior to the day of the incident & should have
maintained an average quarterly balance of Rs 5,000 (urban &
metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as
the case may be in the two quarters before the date of the incident.]*
Increased cash deposit/withdrawal limits at non home branches
Option of automatic movement of excess funds in the savings account
to higher earning fixed deposits
Access through more than 1000 offices & 4055 ATMs
24*7 Telebanking, Internet banking and Mobile Banking
Free monthly e-statement

iv.

Corporate Salary account

Benefit to Employees

No minimum balance criteria.

Unparalleled Access - Anywhere banking facility through our network of
Branches, ATM and Internet banking facility.
At Par chequebooks payable locally at all Axis Bank locations.
International Debit cum ATM cards with enhanced Cash withdrawal
facility and other value add ons.
Online Banking with funds transfer, online shopping and bill payment
options.
Depository services with free online trading accounts.
Meal Cards on a master card platform.
Employee Reimbursement accounts as a savings account variant.
Preferential pricing on loan products and credit cards and other
banking products & services*.

v.

Womens Savings account (smart privilege account)

In today's busy world it's tough being a working woman. Right from
shuttling between a job and family to taking care of her finances she
has to be on her toes all the time. Keeping this in mind, we at Axis
Bank have designed a savings account best suited for the woman of
today. With the Smart Privilege Account, you can manage your money
and your life and as well as enjoy a host of lifestyle privileges.
Furthermore Axis Bank's Smart Privilege Account ensures that you
have enough time for all the important things in life.

vi.

Priority banking account

As a Priority banking customer you will have access to an exclusive
'Priority Banking Lounge' at branches. This will allow you to conduct
your financial transactions in utmost comfort and confidentiality through
an exclusive Relationship Manager.

vii.

Demat Account
Axis Bank is a registered member (Depository Participant) of NSDL. In
this system, physical security holdings are converted into electronic (or
in other words, dematerialized) holdings. Axis Bank has been enrolled
as a Depository Participant by the NSDL - India's first depository. You
can avail of all the depository-related services by just opening an
account with NSDL through Axis Bank.

viii.

Senior citizens Account

Axis Bank's Senior Citizen Savings Account has been designed keeping
in mind the fact that a senior citizen's banking requirements are wholly
different and require special considerations.Axis have introduced Senior
Citizen ID card for their Senior Privilege patrons.
ID card acts as an age proof enabling them to redeem every advantage
that they are eligible for. This card will help them to avail of certain
never-before Senior-citizen benefits at various stores, service providers
and installation across the nation.
Apart from provide you with the power to claim great benefits, card also
act as emergency information medium. In case of emergencies, it
provides the doctors and authorities with vital data like their blood
group, allergies, illnesses, address and emergency contact details. This
ensures that they are well looked after in any situation, no matter where
they are.

ix.

Defence Salary Account

Defence Salary Account from Axis Bank is a product designed keeping
in mind how tough a life in the Defence Forces is. Not only does it come
to them absolutely free, no minimum balance is required either. They
can also access the entire Axis Bank network, including more than 896
branches and over 4055 ATMs (as on 31st December 2009) no matter
where they are posted.

x.

Trust/NGO Savings Acoount

Axis Bank's Trust Account is an effort to offer thoughtful banking for
people who spend their lives thinking of others. It is a complete banking
solution for Trusts, Associations, Societies, Government Bodies, Section
25 companies and NGOs, so that the organisations can devote all of
their time to their noble motivations.

xi.

Azaadi- No Frills Account

Its a savings account that doesn't require a minimum balance.
Experience a host of unparalleled features and heightened convenience
with Azaadi Account.
A customer qualify for Azaadi if
The sum total of all credits to his account does not exceed
Rs 1 lac during the Financial year,
They do not intend to maintain an account balance higher than
Rs 50,000 at any given instant, and
They are unable to furnish full documentation as required
ordinarily for fulfilling of account opening norms

xii.

Resident Foreign Currency (Domestic) RFC(D) Account

A Resident Foreign Currency (Domestic) Account, RFC(D), with Axis Bank
entitles its customers to maintain non-interest bearing current account in
four major currencies (USD, EURO, GBP and Japanese Yen). There will
be no ceiling on the balances held in the account. Chequebooks
denominated in USD or GBP or EURO or Yen will be issued on these
accounts with 25 leaves. The cheques thereby branded as RFC
(Domestic) Account will not be presented in clearing and will be payable
only at the issuing branch.

xiii.

Pension Savings Bank Account,

This account from Axis Bank, is specifically, designed for Pensioners
(Existing & Prospective) of Central Govt. Civil Ministries/ Departments &
Defence Ministry keeping in mind the fact that a Pensioners banking
requirements are wholly different and requires special consideration.