Here is a SWOT of Axis Bank – One of the fastest growing banks in India.
About AXIS Bank
- Type: Private sector bank
- Industry: Banking
- Founded: 3 December 1993
- Founder: Administrator of the Unit Trust of India (UTI)
- Headquarters: Mumbai, Maharashtra, India
- Area served: India
- Key people: Sandeep Bakhshi (Chairman) and Amitabh Chaudhry (CEO)
- Number of employees: 70,000
Table of Contents
Strengths in the SWOT analysis of Axis bank
- Axis bank has been given the rating as one of top three positions in terms of fastest growth in private sector banks
- Financial express has given number two position and BT-KPMG has rated AXIS bank as the best bank with some 26 parameters
- The bank has a network of 1,493 domestic branches and 8,324 ATMs
- The bank has its presence in 971 cities and towns
- The banks financial positions grows at a rate of 20% every year which is a major positive sign for any bank
- The company’s net profit is Q3FY12 is 1,102.27 which has a increase of 25.19% growth compared to 2011
Weaknesses in the SWOT analysis of Axis bank
- Gaps – Majorly they concentrated in corporate, wholesale banking, treasury services, retail banking
- Foreign branches constitute only 8% of total assets
- Very recently the bank started focusing its attention towards personal banking and rural areas
- The share rates of AXIS bank is constantly fluctuating in higher margins which makes investors in an uncomfortable position most of the time
- There are lot of financial product gaps in terms of performance as well as reaching out to the customer
- There are many fraudulent activities involved in credit cards as the banks process credit card approval even without verification of original documents
- Their financial consultants are not wise enough to guide the customers towards right investments
- Customer service has to improve a lot in order to be in race with other major players
Opportunities in the SWOT analysis of Axis bank
- Acquisitions to fill gap
- In 2009, Alliance with Motilal Oswal for online trading for 10 million customers
- In 2010, acquired Enam Securities Pvt Ltd – broking and investment banking
- In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business
- No. of e-transactions increased from 0.7 million to around 2 million
- Geographical expansion to rural market – 80% of them have no access to formal lending
- 46% use informal lending channels
- 24% unregulated money lenders
- Now number of branches increased to 1493 from 339.
- Last quarter there were 48 new branches opened across the Nation
- Since it’s a new age banking there are lot of opportunities to have the advance technicalities in banking solutions compared to existing major players
- The assets in their international operations are growing at a very faster pace with a growth rate of 9%.
- The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response in terms of attracting new customers in personal banking segment
Threats in the SWOT analysis of Axis bank
- Since 2009, RBI has increased CRR by 100 basis points
- Increased repo rate reverse repo rate by 50 points – 11 times of late
- Increasing popularity of QIPs due to ease in fund raising
- RBI allowed foreign banks to invest up to 74% in Indian banking
- Government schemes are most often serviced only by govern banks like SBI ,Indian Banks, Punjab National Bank etc
- ICICI and HDFC are imposing strong threats in terms of their expansion in customer base by their aggressive marketing strategies
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Dear L.S prakash, please give constructive comments. If you feel theres something more to be added in the article then please do so rather than criticising.