Information and History About Axis Bank:

The Axis bank was established in 1993. The equity shares of the Axis Bank are listed on Bombay Stock Exchange and National Stock exchange of India. It is based in Mumbai, Maharashtra and the bank has a network of 3,703 branches. It has the most extensive ATM network among the private banks. In 2007, the name of the UTI Bank was changed to Axis Bank. In 1993, it began its operations after the Government of India has allowed the establishment of new private banks. The first branch was established in 1994 in Ahmedabad and inaugurated by Mr.Manmohan Singh, who was the Finance Minister of India at that time. The UTI bank was promoted by the UTI, LIC, General Insurance Corporation, Oriental Insurance Corporation, New India Assurance Company. The Axis bank is the first to launch the travel currency card in 2003 and got listed on the London Stock Exchange. In 2006, the first overseas branch of UTI Bank was incorporated in Singapore, and in 2011 an office in Colombo was opened. The bank had more than 50,000 employees as per 2016 record. In mobile banking, the bank has introduced Axis pay to facilitate the payments through UPI Interface. The bank also launched an augmented reality feature in its mobile app. The bank has also opened offices in other countries like China, UAE, Sri Lanka and the UK.

Board of Directors of Axis Bank:

Shikha Sharma(CEO & MD)

Mrs.Shikha Sharma has spent over thirty years in the banking industry during which she has been responsible for several positions, served in various capacities. She has worked with ICICI Bank for 29 years before joining Axis Bank in 2009. She had played a crucial role in establishing ICICI Securities, during her tenure with the ICICI Group, in addition to extending their investment banking and retail financial services. Her last designation at ICICI was as the MD & CEO of ICICI Prudential Life Insurance Company. At Axis Bank, she has concentrated on strengthening the performance of the bank in investment banking space, in addition to building an extensive portfolio of items.

For 2014-15, she has been awarded by Business Standard, the most prestigious award in the banking sector, 'Banker of the Year.'

Prasad Menon (Director of Axis Bank)

He is qualified in Chemical Engineering from the IIT, Kharagpur. He has spent more than 40 years in the power and chemical industry, and during the tenure, he has associated with some of the most significant institutions in India. He became the MD of Tata Chemicals in October 2000, and while working there, he laid the foundation for M&A of Magadi Soda, IMACID, and Brunner Mond.

Listings of Axis Bank:

The stocks of Axis Bank are traded by investors in National Stock Exchange and BSE of India. The shares of the Axis Bank can also be traced in the international market through the Stock Exchange of London.

Code of BSE - 532215

Code of NSE - AXIS BANK

ISIN - INE238A01034

Sector - Private Sector, Bank

The bank prominent private financial institutions in India, listed on two important indices of the stock market - BSE SENSEX and NIFTY 50. In addition to this, Axis Bank also consists of another index like S&P BSE 100, S&P BSE Bankex, S&P BSE LargeCap, et cetera.

Market Capitalization:

The market capitalization of Axis Bank, as of early March 2018, is more than Rs.1,34,800 crore.

Recent Performance of the Company:

The third quarter of Axis Bank showed a strong performance for the fiscal year 2017-18. The net profit for the third quarter was at Rs.726 crore, showing a 25% increase from last year and a 68% increase over the second quarter of Financial Year 2018. This was backed by a 9% increase in net interest income to Rs.4,732 crore in the third quarter.

Similarly, the bank's balance sheet also grew by 11% over the same period last year to the Rs.6,43,938 crore. Advances in the same period increased to the Rs.4,20,923 crore, whereas retail loans rose to a Rs.1,93,295 crore. Similar growth was also recorded in advances in small to medium-sized enterprise segment and corporate segment. A substantial increase in local fees income was also recorded, which constituted almost half of the total fee income.

CASA (current account and savings account ratio) increased by 21% over the Q3 FY17 on a cumulative average daily basis.

Considering the asset quality of the bank, gross NPA (non-performing asset) for the third quarter reduced to 5.28% from 5.90% in the September quarter. A subsequent decline was also observed in the net NPA count, to 2.56% from 3.12% in the same period.

Axis Bank's annualized return on equity (ROE) increased to 5.52% for the third quarter, while the tally for the 9M FY18 is 6.38%.

During the December quarter, the lender also added 105 new branches across the country to improve its reach. Furthermore, Axis Bank also reported significant growth across digital channels. Volumes in mobile banking transaction rose exponentially by more than 200% YOY, while credit card usage grew by 59% over the same period last year. It is also worth mentioning that Axis Bank's share in UPI (Unified Payment Interface) transactions in the country is among the highest.

Why Invest in Axis Bank?

Since the last couple of years, not only private sector banks have done exceptionally well, but they have also outperformed public sector banks. Especially in the case of non-performing assets, which the private banks have handled superbly. Their net NPA and gross NPA counts are far better than that of Public Sector Banks which, in turn, speaks of their asset quality.

Axis Bank is one of the prominent private sector banks in the country that has established a strong foothold in the Indian market within a short time. The NIFTY50 bank was founded in 1993 and since then, it has shown an explicit to become the third largest private bank in India.

The basic principles of the company have been strengthened ever since the appointment of Shikha Sharma as the new CEO. The acquisition of FreeCharge, consistent loan growth, and an improvement in asset quality are clear indicators that the company is stepping towards the right direction.

Keeping all the given reasons in mind about investing in Asian Paints, it is better to research based on the risk involved, before making any investment.

Stocks or Mutual Funds: Here is our recommendation

A lot of research and knowledge is required in stock market investments, and generally, they don't offer any tax benefits. Hence at mymoneykarma, we merely motivate our readers to invest in mutual funds. Investing in mutual funds doesn't require a lot of knowledge, and equity-linked mutual fund schemes also provide tax benefits. In addition to it, since mutual funds contain stocks from multiple companies, they help in building a diversified portfolio.

Note: The contents of this post/blog do not constitute any professional advice on a specific financial matter.

Indexes and Exchages

Bombay Stock Exchange (BSE)

The Bombay Stock Exchange, popularly called BSE, is Asia's first and oldest stock exchange. Located at Dalal Street in Mumbai, the BSE was formally established in 1875 by an influential stockbroker and businessman called Premchand Roychand. In the initial days, the BSE had its meetings under several Banyan trees in Mumbai before finding a permanent place, which is very appropriately named Dalal Street or Broker Street. After functioning as a floor trading exchange for more than a century, BSE ascended the digital ladder in 1995 by implementing a new screen-based automated trading platform with a capacity of 8 million orders in a day. In 2012, the BSE went global by becoming a Partner Exchange of the United Nations Sustainable Stock Exchange. Subsequently, BSE established India's first international exchange, called INX, in 2016.

National Stock Exchange (NSE)

NSE was set up in 1992 by a group of leading Indian financial institutions, following the Indian Government's directives. It aimed to bring transparency to the Indian capital market. It was India's first demutualized electronic exchange which operated on a completely automated screen-based electronic trading system, offering an easy trading facility to all Indian investors. NSE began its operations in the Wholesale Debt Market segment in 1994. NSE was the first company in India to offer a digital platform that connected the investor base of the entire country. NSE offers services in various segments, such as trading, equity derivatives, clearing and settlement services in equity, debt and currency derivatives, etc.

NIFTY Index

The NIFTY is NSE's flagship index that tracks the behavior of a portfolio of blue-chip companies that have the largest and most liquid Indian securities. It is owned as well as managed by IISL (India Index Services and Products Ltd), which is India's first specialized company to focus on an index as a core product. Nifty indexes 50 of the 1600 companies on the National Stock Exchange (NSE) and is thus popularly referred to as 'Nifty 50'. It captures approximately 65% of its float-adjusted market capitalization and is a true reflection of the Indian stock market. The Nifty 50 includes the major sectors of the Indian economy. It offers the exposure to the Indian market in one efficient portfolio. The Nifty index has been trading since April 1996. It is ideally suited for index funds, benchmarking and index-based derivatives.

SENSEX Index

Sensex is BSE's stock market index. It consists of 30 well-established and financially flourishing companies listed on BSE. It was established in 1986. These 30 component companies are known for being the largest and most actively traded stocks. They represent various industrial sectors of the Indian economy. Sensex is also known as BSE 30 and S&P BSE SENSEX. The word 'Sensex' is a portmanteau of the words 'Sensitive' and 'Index.' SENSEX is widely reported in domestic and international markets through print and electronic media. The indexing system is scientifically designed, based on globally accepted construction and review methodology. Since September 2003, S&P BSE Sensex is being determined on a free-float market capitalization methodology.