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Is Axis Bank the “King” in both Retail and Corporate Banking

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Axis Bank Ltd.

Axis Bank Ltd. was formerly known as UTI Bank and was the first of the new private banks to have begun operations in 1994, when the Government of India allowed new private banks to be established.

  1. The Bank as on 31st December, 2011 is capitalized to the extent of Rs. 412.57 Crores with the public holding (other than promoters and GDRs) at 53.63%
  2. Registered Office is at Ahmadabad and its Central Office is located at Mumbai
  3. Wide network of more than 1281 branches as on 31st March, 2011
  4. Network of over 7591 ATMs as on 30th September, 2011 providing 24×7 banking facilities to consumers
  5. One of the largest ATM networks in the country
  6. The Bank has strengths in both retail and corporate banking
  7. One of the largest private sector financier in India for Agriculture loans wiz Retail Agri & Corporate Agri.

Read about Top Ten Banks in India.


Axis bank has a wide range of financial products in its kitty. Some of the products include credit cards, consumer banking, corporate banking, insurance, investment banking, mortgage loans, private banking, private equity and wealth management. Also Axis bank started with its online initiative named Axis Remit Online for NRIs to remit money to India. The portal is a secured online portal for remitting the funds from abroad location. The facility of online remitting has helped the bank generate huge revenue as majority of the NRIs are registering for the facility so as to avail highly competitive exchange rates and convenient online facility.


As of 2012, the company generated revenue of 5 billion USD with net income being 787.86 million USD. The Company has total assets worth 51.94 billion USD.

Mar-12 Mar-11 Mar-10 Mar-09 Mar-08
Price Earning (P/E) 11.46 17.5 19.47 8.49 27.02
Price to Book Value ( P/BV) 2.08 3.03 2.95 1.46 3.19
EV/EBIDTA 13.96 17.96 17.78 13.11 17.46

As far as the investors’ confidence is considered the company’s stock has not performed well over the few years. The Company’s P/E ratio has declined considerably. As far as the financial performance is considered company has made a tremendous growth of over 25% Y-O-Y for the net income this year as compared to the year ending March 2011.

The weak economic growth, higher interest rates and inflation along with subdued consumption and investment demand has weighed up on the performance of the India’s banking sector during the quarter ended September 2012 though the private sector banks have succeeded to grow steadily. Some of the banks which reported healthy performance were OBC, Syndicate Bank, Axis Bank, ICICI, Yes bank. Asset quality banking sector has deteriorated sharply in the quarter under review with GNPA soaring 46% y-o-y to Rs 172,144 Crore and Net NPA rocketing 57% to Rs 87,373 Crore at end of September 12. Also maintaining CASA has been challenging for all the banks in the Industry. HDFC bank and SBI remained leaders with other leading players being ICICI Bank and Axis bank 40.5%.

India’s GDP growth moderated to nine years low of 5.3% in Q2FY13, from 5.5% growth in Q1FY13 with moderation in GDP growth emanating from agriculture and industrial sector, while the services sectors growth remains subdued. The Reserve Bank of India (RBI) further reduced its FY13 GDP growth projection to 5.8%, in October 2012 from 6.5% in July 2012. Inflation projection for March 2013 was increased to 7.5% from earlier projections of 7.0% has created a feeling of moderate performance by the private banks in the sector.


The RBI has cut CRR by 25 bps in its second quarter policy review in October 2012 to historical low of 4.25% of Bank net demand and time liabilities (NDTL) to support liquidity. CRR is expected to be further. Amid the weak economic growth environment, the stress on asset quality is expected to persist during the coming financial year and thus the bank earnings are likely to remain under pressure with narrowing margins, weak non-interest income growth and continued asset quality weakening.



Niraj Satnalika

Niraj is an MBA in International Business (Finance). Prior to this he completed B.Tech in Electronics and Instrumentation. He is currently working with Confederation of Indian Industry (CII), Kolkata in capacity of Consultant. Satnalika is actively involved with an NGO and works towards promoting education among the underprivileged.

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