-
Govt mulls selling stake in Axis Bank
Last updated on Jan 07, 2016, 05:15 pm
-
Sources state that the Indian government is considering selling part of its stake in the nation's third-biggest private sector lender, Axis Bank.
Officials from the Ministry of Finance and Axis Bank were unavailable for comment on the matter.
The government holds a 11.6% share in Axis bank which, at the current market value is estimated to be worth approximately $1.7 billion.
-
Introduction
Axis Bank: Introduction
-
Formerly the UTI Bank, Axis Bank was officially incorporated as a private bank in 1993 after being promoted by several public sector insurance entities in India.
The bank has a large footprint of 2589 domestic branches (including extension counters) and 12,355 ATMs spread across the country.
It has a 5-year compounded annual growth rate of 21% in total assets and 24% in net profits.
-
Shareholding
Who owns stakes in Axis Bank?
-
Axis Bank is promoted by Union Trust of India, LIC, General Insurance Corporation, New India Assurance, Oriental Insurance Company and United India Insurance who collectively hold 29.9% of Axis Bank.
Domestic shareholders, including other Indian banks and Indian citizens collectively have 25.8% of Axis Bank's shares.
Foreign Institutional Investors and Foreign Portfolio Investors have the largest share, collectively accounting for 44.3%.
-
Information
First of its kind mobile banking app
-
Axis Bank launched its mobile banking app 2.0 in 2013, in partnership with Tagit- a Singapore based mobile solutions company. It is the first banking app of its kind in India, which links itself through social media as well.
-
Why?
Why is the government considering this now?
-
Under Arun Jaitley, the Finance Ministry has set stringent targets to reduce the country's fiscal deficit.
The government is seeking to meet an asset sale value target of $10.4 billion by 31 March 2016.
The Ministry has been able to raise approximately $2 billion toward the effort so far.
Through this, the government aims to reduce the budget deficit to 3.9% of the GDP.
-
7 Jan 2016
Govt mulls selling stake in Axis Bank
-
Sources state that the Indian government is considering selling part of its stake in the nation's third-biggest private sector lender, Axis Bank.
Officials from the Ministry of Finance and Axis Bank were unavailable for comment on the matter.
The government holds a 11.6% share in Axis bank which, at the current market value is estimated to be worth approximately $1.7 billion.
-
Reactions
Axis Bank shares drop on news of sale
-
Axis Bank shares fell 3.42% to Rs.416.05 on the Bombay Stock Exchange amid reports of the government's sale of part of its stake in the bank.
Axis Bank has an equity capital of Rs.475.79 crore with a face value of Rs.2 per share.
Axis Bank stocks hit a high of Rs.425 and a low of Rs.413.85 during the day.