Management of financial institutions ...axis bank ppt


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Management of financial institutions ...axis bank ppt

  2. 2. About Axis Bank•Axis Bank was the first of the new private banks tohave begun operations in 1994, after the Governmentof India allowed new private banks to be established.•The Bank was promoted jointly by the Administratorof the specified undertaking of the Unit Trust of India(UTI - I),• Life Insurance Corporation of India (LIC) and GeneralInsurance Corporation of India (GIC) and other fourPSU insurance companies, i.e. National InsuranceCompany Ltd•The Banks Registered Office is at Ahmadabad and itsCentral Office is located at Mumbai.
  3. 3. About Axis Bank•The Bank has a very wide network of more than1042 branches (including 56 Service Branches/CPCsas on 30th June 2010).•The Bank today is capitalized to the extent of Rs.407.44 crores with the public holding (other thanpromoters and GDRs) at 54.51%.• It has one of the largest ATM networks in thecountry.•As on the year ended 31 March 2009 the Bank hada total income of Rs. 13,745.04 .•As on 2010 it has 13,389 employees.
  4. 4. Board of DirectorsDr. Adarsh Kishore ChairmanSmt. Shikha Sharma Managing Director & CEOShri J.R. Varma DirectorDr. R.H. Patil DirectorSmt. Rama Bijapurkar DirectorShri R.B.L. Vaish DirectorShri M.V. Subbiah DirectorShri K. N. Prithviraj DirectorShri V. R. Kaundinya DirectorShri S. B. Mathur DirectorShri M. S. Sundara Rajan DirectorShri S. K. Roongta Director
  5. 5. Promoters•Axis Bank Ltd. has been promoted by the largestand 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. 7.5crore and GIC and its four subsidiaries contributingRs. 1.5 crore each.•Specified Undertaking of the Unit Trust of India(SUUTI) - Shareholding 23.86%.•SUUTI manages assured return schemes along with6.75% US-64 Bonds, 6.60% ARS Bonds with a UnitCapital of over Rs. 14167.59 crores.
  6. 6. Branch Network•At the end of October 2009, TheBank has a very wide network ofmore than 1000 branches andExtension Counters (as on 31 March2010).The•Bank has a network of over 4055ATMs (as on 31 March 2010). TheBank has loans now (as of June2007) account for as much as 70 percent of the bank’s total loan book ofRs 2,00,000 crore.
  7. 7. Risk and Earning Perspective•From a medium-term perspective, it appearsthat Axis Bank could be charting out a niche foritself in the private bank space.• It appears to be following a business strategyquite different from the high-volume andcommodity-style approach of ICICI Bank andHDFC Bank.•Strategy also has its pluses in terms of thehigher margins in some segments of the retailbusiness and the in-built credit riskdiversification (and mitigation) achievedthrough a widely dispersed retail creditportfolio.
  8. 8. Products•Investment Banking•Corporate Banking•Retail Banking•Private Banking•Investment Management•Mortgage Loan•Credit Card
  9. 9. Investment Banking•An investment banking is a financial institution thatassists corporations and governments in raisingcapital by underwriting and acting as the agent inthe issuance of security.•An investment bank also assists companies involvedin mergers and acquisitions, derivatives, etc.•Unlike commercial banks and retail banks,investment banks do not take deposits.
  10. 10. Commercial Banking•A commercial banking is a type of financialintermediary and a type of bank.•Commercial banking is also known as businessbanking.•It is a bank that provides checking accounts,savings accounts, and money market accounts andthat accepts time deposits.•Commercial banking may also be seen as distinctfrom retail banking, which involves the provision offinancial services direct to consumers.
  11. 11. Retail Banking•Retail banking refers to banking inwhich banking institutions executetransactions directly with consumers, ratherthan corporations or other banks.•Services offered include: savingsand checking accounts, mortgages, personalloans, debit cards, credit cards, and so forth.
  12. 12. Private Banking•Private banking is a termfor banking, investment and other financialservices provided by banks to privateindividuals investing sizable assets.•The term "private" refers to the customerservice being rendered on a more personalbasis than in mass-market retail banking,usually via dedicated bank advisers.• It should not be confused with a privatebank, which is simply a non-incorporatedbanking institution.
  13. 13. Investment Management•Investment management is the professionalmanagement of various securities (shares,bonds and other securities)and assets (e.g., real estate), to meet specifiedinvestment goals for the benefit of theinvestors.• Investors may be institutions (insurancecompanies, pension funds, corporations etc.)or private investors (both directly viainvestment contracts and more commonly viacollective investment schemes e.g. mutualfunds or exchange-traded funds).
  14. 14. Mortgage Loan•A mortgage loan is a loan secured by realproperty through the use of a mortgage notewhich evidences the existence of the loan.•Rate of interest charged by Axis Bank is 8.75%(floating) upto Rs.30 lacs, 9.25%(floating)above Rs.30 lacs and 14% (fixed) irrespective ofthe loan amount.
  15. 15. Credit Card•Credit card is a small plastic card issued tousers as a system of payment. It allows itsholder to buy goods and services based on theholders promise to pay for these goods andservices.
  16. 16. Last two years performance of Axis Bank