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Opens its first international branch in Singapore Opens Representative Office in Shanghai Crosses the 2,000 ATM mark in 2006 Opens a Full License Bank Branch in Hong Kong Re-brands itself as Axis Bank Mumbai, Jul 30 2007 : UTI Bank on Monday rechristened itself as Axis Bank.
The Bank is promoted by Unit Trust of India, which is the largest mutual fund in india, holding 87% of the equity. The Bank started its operations in 1994. AXIS Banks first capital raising postinception was in 1998 through a public offering.
With the opening of these offices, the geographical reach of the bank extends to 29 states and 3 union territories covering 405 centers.
During 2007-08 , 143 new branches were added to the banks network, taking the no. of branches to 651. As on march 31,2008, the bank had a network of 651 branches and 20 extension counters as against 508 branches and 53 extension counters a year earlier. Out of 651 branches, 158 branches are in semi- urban and rural areas. Opening of these offices, the geographical reach of the bank extends to 29 states and 3 union territories covering 405 centers.
Services
Retail banking
1) Deposits schemes
2) Loans and advances A) Personal loans
b) Housing loans
C) Cards d) Consumer durables
e) Auto loans
Personal banking Accounts A ) Term deposit B) Fixed deposit C) Recurring deposit Cards
Different variant like: Gold plus card, Gold card, Silver & silverplus cards.
Corporate banking
a) Accounts
Normal Current Account Trust/NGO Savings Account
Services
Private Equity, Mergers & Acquisitions Advisory Services
SHIFT IN STRATEGY
INITIAL BUSINESS MODEL Corporate loans offered higher yields to the bank during the period FY96 to FY99. Corporate advances a high growth rate and accounted for about 80 % of funds lent by the bank till year 2002.
STRATEGIC INFLECTION POINT : In 1999 the banks net NPAs to advances ratio jumped to 6.3% in FY99 from 3.7% in FY97. This was reflected from a marginal 17% growth in the banks total advances in FY02 from a CAGR of 44% in the last four years.
STRATEGY SHIFT The number of branches increased to 450 from just 35 in FY99.
2) Risk management: Risk limits are set according to number of criteria including relevant market analysis, business strategy & management experience.
3. Dealing with regulations The bank calculates capital charge on operational risk under both the Basic Indicator Approach & the standardized approach. The bank has simultaneously undertaken internal studies on several lines of business for an evaluation of the risk profile, capturing of losses incurred & identifying the key risk indicators.
4. Keeping pace with the technology The banks IT system developed a process called SETU (Seamless Electronic Transfer to AXIS Bank) The sale & redemption of 58 AXIS Mutual Funds Schemes was an additional service through the ATM channel
Bank set up low cost rural ATMs at Anand. A channel finance hub was created
Growth Strategy
Increasing the market share in various business resulting in an enhancement in its core income streams. Improve the quality of its income streams. Increasing the market share in various business resulting in an enhancement in its core income streams Improve the quality of its income streams.
1.Strategic alliances and Collaborative partnerships: Tie-ups with Maruti and Hyundai for Selling Car loans. Tie-ups with Bajaj Allianz General Insurance Tie-ups Partner with Metlife as Bancassurance Co-financing pact with India Infrastructure Finance Company Ltd(IIFCL) for Infrastructure projects.
2.Outsourcing Selected Value-chain Activities : Outsourcing recruitments to MonsterIndia.com Outsourcing Print Operations to Xerox
2.Range of services on ATM machines: Developed more than 18000 ATMs LIC premium payment, Telephone Bill Payment Mobile Banking and refill facilities for Airtel,..
3.Aggressive growth in cards business: Leading issuers of debit cards Offer international debit cards in association With VISA and Master Cards. Introduce travel currency card and travelers Cheque. First to introduce Remittance Cards.
4.Expansion of geographical reach : Geographical expansion of business especially in Districts and small towns. Provides low costs deposits and advances to agriculture sectors. At present Bank has branches in 26 states covering 258 cities,towns and villages.
5.Financial Advisory Services : Focusing on Financial Advisory Services with Emphasis of affluent segments of customers. Acquiring and Addressing the segments of Customers whose income levels are high enough for them to acquire Wealth Advisory Services
Use of internet
First bank in the country to provide internet banking service Partnered with ministry of overseas indians to offer an Internet based electronic remittances portal Launched an e-payment facility Seamless electronic transfer Launched new process called i-trade
Evaluation Of Growth
diagram
Positioning strategy
Axis bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning statement:
Product innovation
Phone Banking
New Initiatives
Tie-ups with various Govt. Departments: Govt. Departments: DGFT ePayments
Alternate Channels:
ATM Channel
ATM Channel
All its ATMs are connected to Base24 ATM switch The Bank through its ATMs offers the following services
Banking Services
You can also request for the following information: -Balance -Last three Transactions -Know the status of your cheque -Request security balance in demat account
Axis bank has a skilled and well trained workforce at all levels, including the front customer interface. The knowledge management oriented employee portal spans functions of the bank ranging from marketing, credit banking and other functions.
PARTNERSHIPS
Numerous collaborative partnerships to extend the marketing reach of its product Selected value chain activities such as recruitment needs, printing operation and electronic bill payment Achieve greater efficiency
CORE VALUES
Customer satisfaction Maximization of stakeholder value Success through teamwork, integrity and people
Conclusion !!!!
AXIS bank has differentiated itself very well on the basis of high level service and product quality. They have successfully implemented the change and due to this their market share has increased only despite of tough competition prevails.