AXIS Bank Limited Is the Third Largest Private Sector Bank in India. It Offers
Total Page：16
File Type：pdf, Size：1020Kb
AXIS Bank Limited is the third largest private sector bank in India. It offers the entire spectrum of financial services to customer segments covering Large and Mid- Corporates, MSME, Agriculture and Retail Businesses. Axis Bank has its headquarters in Mumbai, Maharashtra. Axis Bank began its operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company,The Oriental Insurance Corporation and United India Insurance Company. The Unit Trust of India holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. As on the year ended 31st March 2013, Axis Bank had an operating revenue of 16,217 crores and a net profit of 5,179 crores. Axis Bank (erstwhile UTI Bank) opened its registered office in Ahmedabad and corporate office in Mumbai in December 1993. The first branch was inaugurated in April 1994 in Ahmedabad by Dr. Manmohan Singh, then the Honorable Finance Minister. The Bank, as on 31st March 2013, is capitalised to the extent of Rest. 467.95 crores with the public holding (other than promoters and GDRs) at 54.08%. New Zealand born Richard Chandler owns about 9.5% share through Orient Global. On 14th March 2013 an online magazine named Cobrapost.com released video footage from Operation Red Spider purporting to show a few employees of several Indian banks including Axis bank apparently willing to help customers to avoid paying taxes. After this, The government of India and Reserve Bank of India have ordered an inqui NETWORK The Bank's Registered Office is situated in Ahmedabad and its Central Office is located at Mumbai. The Bank has an extensive network of 2225 branches and extension counters (as on 30th September 2013). The Bank has a network of 11796 ATMs (as on 30th September 2013)[23] Axis Bank operates one of the world’s highest ATM sites at Thegu, Sikkim at a height of 4023.4 metres (13,200 ft) above sea level, and has the largest ATM network among private banks in India. INTERNATIONAL BUSSINESS The Bank has seven international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC) and Colombo and representative offices at Shanghai, 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. BUSSINESS FOCUS Axis Bank operates in four segments: corporate/wholesale banking, and other banking business. TREASURY OPERATIONS The Bank’s 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. Retail banking 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 nonresident Indian (NRI) services. Corporate/wholesale banking 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. Industry First Initiative Axis Bank, India's third largest private sector bank launched Mobile Banking App 2.0 for its retail resident Indian customers The first of its kind in India, Axis Mobile 2.0 offers a high level of personalization . 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-the-go. ‘Axis Bank- ISIC Forex Card’ for Students would be the first photo Travel Currency Card available in USD, Euro, GBP and AUD currencies . Axis Bank is the 1st Bank in India to launch ISIC co- branded Forex prepaid card for students. Axis Bank partners with Visa to launch industry first ‘eKYC’ facility, 1st organization in India to introduce biometric based eKYC offering convenience, speed & ease to Aadhaar-registered individuals to open bank accounts Products and services for NRIs that facilitate investments in India. Business banking The Bank accepts 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. Investment banking Bank’s Investment Banking business comprises activities related to Equity Capital Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI- registered 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. LENDING TO SMALL AND MEDIUM ENTERPRISES Axis Bank SME business is segmented in three groups: Small Enterprises, Medium Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup for financing micro enterprises is also set up. Axis bank is the 1st Indian Bank having TCDC cards in 11 currencies. AGRICULTURE 401 branches of the Bank have dedicated officers for providing agricultural loans to farmers. INTERNATIONAL BANKING Axis Bank has a foreign network of four branches (Singapore, Hong Kong, DIFC (Dubai) and Colombo (Sri Lanka) and three representative offices (Shanghai, Dubai and Abu Dhabi) with presence in 6 countries. Axis Bank was granted a banking license in Britain, after receiving approval in April 2013 from Britain's financial regulator to provide a full range of banking services including deposit-taking and making loans and investments. It opened its first UK bank in London on 12 July 2013. Overview of Risk management Risk management is continuing process to identify analyse evaluate and treat loss exposures and monitors risk control and financial resource to mitigate the adverse effects of loss loss results from following: . financial risks such as cost of claims and liability judgments . operational risks such as labor strikes . perimeter risks including weather or political change . strategic risks including management changes or loss of reputation Enterprise risk management, expands the province of risk management to define risk as anything that can prevent the company from achieving its objectives. Although accidental losses are unforeseen and unplanned, there are methods which can make events more predictable. The more predictable an event, the less risk is involved since the occurrence can prevent or mitigated; or, at minimum, expenses can be estimated and budgeted. It is this process to make loss more predictable that is at the core of insurance programs. The key to an economical and efficient risk program is control over the risk management functions with assurance that actions performed aredesirable, necessary, and effective to reduce the overall cost of operational risk. A risk management program is formulated and evaluated around the cost of risk. The cost of Risk is comprised of: . Retained Losses - Deductibles, Retention or Exclusions . Net Insurance Proceeds . Cost for Loss Control Activities . Claim Management Expense . Administrative Cost to Manage the Program The benefits of a risk program should result in overall saving to the corporate entity when evaluating these components in the aggregate. Any one specific category may show an increase or decrease in cost when considered individually or by division in a specific time frame. Types of Loss Exposures within the province of risk management include: . Property - Real & Personnel, Tangible & Intangible . Net Income - Reduction in Revenue or Increase in Expense; can be due to loss of Property (yours or suppliers, or customers) or loss due to Civil or Statutory fines and judgments, or by loss of Key Personnel . Liability - Civil and Statutory (Torts, Statutory Workers Compensation, EPA and other Administrative laws) . Personnel – Through Death, Disability, or Retirement Key Personnel or catastrophic loss to many employees Risk management strategies involve many concepts. Some of them include the following concerns: Elements of Loss Expense . Actual damages to physical assets to repair or replace. Increase in expenses or reduction of revenue due to loss. Cost of investigation, legal fees, fines and awarded judgments. Loss of worker productive and adverse publicity and public opinion. Higher potential insurance premium. Payments made due to the death, disability or resignation of employees. Risk Control Techniques . Avoidance of activities which cause loss. Reduction of the frequency of loss - risk prevention. Reduction of the severity of loss - risk reduction. Contractual transfer of responsibility for loss occurrence. Risk Financing Techniques . Retention of losses either by design or omission. Borrowing of funds or use of bonds or use of other forms of capital . Contractual non-insurance transfer of responsibility for loss payment. Insurance transfer to a non-owned insurance company