Axis Bank Home Loan Interest Rates
Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established.
The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company UTI holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country.
The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name. Shikha Sharma was named as the bank’s managing director and CEO on 20 April 2009. As on the year ended March 31, 2009 the Bank had a total income of Rs. 13,745.04 crores and a net profit of Rs 1,812.93 crores.
On February 24, 2010, Axis Bank announced the launch of ‘AXIS CALL & PAY on atom’, a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment service over IVR. They also offer some of the cheapest home loans in India.
Office Network In India
At the end of October 2009, the Bank has a very wide network of more than 925 Branch offices and Extension Counters.The Bank has a network of over 3900 ATM’s (as on 31st October 2009). The Bank has loans now (as of June 2007) account for as much as 70 per cent of the bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007.
In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite high and has matched that of the other banks, retail exposures grew at a slower pace.
If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a deliberate business strategy, this could have significant implications (not necessarily negative) for the overall future profitability of the business.
Slower Growth
Despite the slower growth of the retail book over a period of time and the outright decline seen in the past year, the bank’s fundamentals are quite resilient. With the high level of mid-corporate and wholesale corporate lending the bank has been doing, one would have expected the net interest margins to have been under greater pressure. The bank, though, appears to have insulated such pressures.
Interest margins, while they have declined from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank are lower despite its much larger share of the higher margin retail business, since funding costs also are higher).
Current Interest Rates
Learn more about the latest personal and loan rates at Axis Bank.
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Reader Question:
Sudha asked:
Does anyone know the current rate for new homeowner loans with Axis Bank.
Also, I have a debit card with them and I want to know in how many days the bill will come and what is the minimum I will have to pay.
What Do You Think?