COMPANY PROFILE -Axis Bank
Business Sector :Banking and Financial Services
Operating Geography :India, Asia, Global
About Axis Bank :
Axis Bank Limited, headquartered in Mumbai, Maharashtra, is an Indian private sector bank. It sells financial services to large and mid-sized corporations, small and medium-sized organisations, and retail firms. With a registered office in Ahmedabad and a corporate office in Mumbai, the bank began operations as UTI Bank in December 1993. The Unit Trust of India (UTI), the Life Insurance Corporation of India (LIC), the General Insurance Corporation, the National Insurance Company, The New India Assurance Company, The Oriental Insurance Corporation, and the United India Insurance Corporation all worked together to create the bank. Individuals and small businesses can use the bank's lending services, as well as liability products, card services, Internet banking, automated teller machine (ATM) services, depository, financial advisory, and NRI services. The RBI's list of NEFT-enabled banks includes Axis Bank. In April 2021, Axis Bank and its subsidiaries became co-promoters of Max Life Insurance Company Limited (“Max Life”) after the Axis Entities completed the acquisition of a 12.99 per cent stake in India's fourth-largest private life insurance firm, Max Life.
Axis Bank's Unique Selling Point or USP lies in it being one of the leading private sector agricultural lenders in India. Axis Bank's mission statement reads, "To be the preferred financial services provider excelling in customer service delivery through insight, empowered employees and smart use of technology".
Axis Bank Revenue :
INR 800 billion - FY ending 31st March, 2020 (y-o-y growth 14%)
INR 702 billion - FY ending 31st March, 2019
Competitive Analysis of Axis Bank
The SWOT analysis for Axis Bank is presented below in a matrix followed by the detailed analysis report:
Strengths | Weaknesses |
1. Early leadership in cloud-based solutions
2. Distinctive digital banking capabilities
3. Growing customer transactions through partnerships with payment services and e-commerce platforms
4. Consistently high growth in Axis AMC
| 1. Highly volatile net profits over the years |
Opportunities | Threats |
1. Strengthening foothold in insurance sector with rising stake in Max Life
2. Accelerated growth in cards market by integrating healthcare and wellness
3. Increase rural penetration through Common Service Centres
4. Direct increase of market share through acquisition of Citibank’s verticals
| 1. Rise of fintech’s is disrupting the stability of market share
2. Reduced customer spending can hamper business from commercial segment
3. Spillover effect from IL&FS crisis can harm ‘Axis Finance’
|
Axis Bank SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed SWOT Analysis of Axis Bank
Strength
1. Early leadership in cloud-based solutions: Axis bank is following a cloud-first approach for more than 50 digital solutions. It has partnered with leaders in cloud services like Amazon and Google for a hybrid model of service. The hybrid model is chosen such that the customer data is stored on a private cloud platform and certain eligible services are placed on public cloud. This helps it to cater to any sharp rise in customer traffic on its online platforms as scaling up is very convenient on cloud. The cloud capability also aided Axis Bank to tide through the pandemic smoothly, as 20,000 of their employees could easily transfer to remote work. As cloud involves certain security threats, the bank has invested heavily in cyber security. This strategy is a bold step by a conservative bank like Axis and will help it conquer leadership in digital services.
The remaining section under "Strength" is available only in the 'Complete Report' on purchase.
Weakness
This section is available only in the 'Complete Report' on purchase.
Opportunity
1. Strengthening foothold in the insurance sector with rising stake in Max Life: Axis bank along with its subsidiaries has acquired a total of 12.99% stake in Max Life Insurance through various deals. This has made Axis Bank a co-promoter in Max Life. Axis Bank has partnership with life insurers such as LIC of India and Bajaj Allianz Life insurance other than Max Life. But this step will make Axis bank an influencer in Max Life’s business strategies. The life insurance sector has around 3.7% penetration and is growing at a rate of 11%. The trend is estimated to gain speed due to covid. The bank will also be benefited from the growth in health insurance segment where new products are expected to gain attention and traction. The decade old relationship between the two firms will help harvest a higher synergy.
The remaining section under "Opportunity" is available only in the 'Complete Report' on purchase.
Threat
This section is available only in the 'Complete Report' on purchase.
The PESTLE analysis for Axis Bank is presented below in a table followed by the detailed analysis report.
Political | Economical |
1. Moratorium interest waiver may add costs
2. Setting up of bad bank will improve NPA handling
| 1. Poor GDP growth to deteriorate asset quality
2. Fluctuating bond yields will affect profitability of banks
|
Social | Technological |
1. Consumers are preferring self-service over dealers from bank | 1. Payments segment to be disrupted by blockchain
2. Big data analytics to change the way consumers are assessed
|
Legal | Environmental |
1. RBI’s suggested policy of banking licenses to corporates leads to competition
2. Private banks can get government business as embargo is lifted
| 1. India’s green banking trend to change consumer behaviour for environmental cause |
Axis Bank SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
Detailed Pestle Analysis of Axis Bank
Political
This section is available only in the 'Complete Report' on purchase.
Economic
This section is available only in the 'Complete Report' on purchase.
Social
This section is available only in the 'Complete Report' on purchase.
Technological
This section is available only in the 'Complete Report' on purchase.
Legal
1. RBI’s suggested policy of banking licenses to corporates leads to competition: RBI has said that India’s bad loans ratio is about to increase to 13.5% which will be one of the highest in the world. RBI’s new policy allows assigning of banking licenses to large corporates. This is rolled out with a view to spark competition in order to improve efficiency in the banking sector. But it will reduce the profit margins in an already troubled and battered banking sector. The increased competition will also make banks to get into high-risk lending. Moreover, the banks will try to consolidate their businesses to survive the competition. This will lead to complex organizations with high power over the customers. The banking facility may finally get concentrated to certain organisations with high existing capital. This will further deteriorate the problem that the policy is trying to solve.
Environmental
This section is available only in the 'Complete Report' on purchase.
Major Competitors :
- ICICI Bank
- SBI
- HDFC Bank
- Punjab National Bank
- Induslnd Bank
- Bandhan Bank
- IDBI Bank
- Kotak Mahindra Bank
Major Brands :
- Axis Bank
- Axis Asset Management Company
- Axis Capital
- Axis Finance
- Axis Securities
Axis Bank SWOT and PESTLE Analysis PDF Report is a custom report and will be delivered to your email inbox within 2 business days from purchase.
TABLE OF CONTENTS
DELIVERY AND FORMAT
WHY CHOOSE US?
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Axis Bank Segmentation, Targeting and Positioning (STP) Analysis |
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Axis Bank Ansoff Matrix Analysis |
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References used in Axis Bank SWOT & PESTLE Analysis Report
1. OPENING REMARKS – Q4FY21 EARNINGS CONFERENCE CALL - https://www.axisbank.com/docs/default-source/call-transcript/opening-remarks-q4fy21.pdf
2. Axis Bank introduces Iris Authentication over micro ATMs for
Aadhaar-based transactions - https://www.axisbank.com/docs/default-source/press-releases/press-release---axis-bank-introduces-iris-authentication-over-micro-atms.pdf?sfvrsn=7277b455
3. Axis Bank Annual Report 2019-2020 - https://www.axisbank.com/annual-reports/2019-2020/pdf/Axis_Bank_AR20.pdf
4. Axis Bank launches ‘Aura’- a credit card exclusively loaded with affordable health and wellness solutions - https://www.axisbank.com/about-us/press-releases/axis-bank-launches-aura-a-credit-card-exclusively-loaded-with-affordable-health-and-wellness-solutions
5. Fintechs lending to high-risk segments even as banks, lenders clamp down on unsecured loans - https://www.financialexpress.com/industry/banking-finance/fintechs-lending-to-high-risk-segments-even-as-banks-lenders-clamp-down-on-unsecured-loans/2147681/
The detailed complete set of references are available on request in the 'Complete report' on purchase.
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Axis Bank SWOT and PESTLE analysis has been conducted by Mohit Harishchandra Deshmukh and reviewed by senior analysts from Barakaat Consulting.
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