After being associated with Axis Bank for 30 years, SUUTI, the original promoter of the bank, has finally exited. The announcement was made by the Life Insurance Corporation (LIC) of India, which was the last shareholder of SUUTI.
SUUTI, which stands for Specified Undertaking of Unit Trust of India, was created in 2003 after the Unit Trust of India (UTI) was broken up into two entities. SUUTI was formed to hold the government’s residual stake in various companies, including Axis Bank. The government had decided to exit the businesses in which it had a stake, as part of its divestment program.
Axis Bank was earlier known as UTI Bank, and it was set up in 1993 as a private sector bank. SUUTI was one of the original promoters of the bank, along with UTI and the Industrial Development Bank of India (IDBI). However, over the years, SUUTI’s stake in the bank had been gradually reducing, as the government divested its stake in various tranches.
LIC, which is the country’s largest insurance company, had bought a 6.9% stake in SUUTI in 2017, which made it the last shareholder of SUUTI. With SUUTI’s exit, Axis Bank has become a completely private sector bank.
The announcement of SUUTI’s exit from Axis Bank was greeted with enthusiasm by investors. The stock price of the bank went up by nearly 3% after the announcement was made. Investors are optimistic about the bank’s prospects, now that it is completely free from any government or public sector influence.
Axis Bank is one of the leading private sector banks in the country, with a wide range of products and services for both retail and corporate customers. The bank has been consistently performing well, even during the pandemic. Its net profit for the financial year 2020-21 stood at Rs 6,728 crore, up from Rs 1,505 crore in the previous year.
Axis Bank has been focusing on digitization and innovation to enhance customer experience and improve efficiency. The bank has launched several digital initiatives in recent years, including its mobile app and internet banking platform. It has also partnered with fintech companies to offer innovative solutions to customers.
The bank has also been expanding its reach, both in India and overseas. It has a presence in over 20 countries, including the United States, United Kingdom, Singapore, Hong Kong, and Dubai. The bank has also been expanding its network of branches and ATMs in India, to make its services more accessible to customers.
The bank has also been investing in technology and infrastructure to improve its operations and enhance cybersecurity. It has set up a state-of-the-art cybersecurity operations center to monitor and mitigate cyber threats. The bank has also been using advanced analytics and artificial intelligence to improve its risk management and compliance processes.
With SUUTI’s exit, Axis Bank is now well-positioned to take advantage of the growing opportunities in the Indian banking sector. The government’s push for digital payments and financial inclusion, along with the increasing adoption of technology by customers, is expected to drive growth in the sector in the coming years.
Axis Bank has a strong management team, led by its CEO and MD, Amitabh Chaudhry. Chaudhry has been instrumental in driving the bank’s digital transformation and expansion plans. Under his leadership, the bank has been able to navigate through the challenges posed by the pandemic and maintain its growth momentum.
The bank’s board of directors has also been strengthened with the addition of new members, who bring a wealth of experience and expertise to the table. The bank has a strong corporate governance framework, which has helped it to maintain transparency and accountability in its operations.
