Axis Bank: Spinning Towards Success With 22,825% Returns

If you had invested ₹1 lakh in August 1999, you could have had ₹2.28 crores today! This multibagger had smashing returns of 22,825% and dividends of ₹82.9 lakhs. Let’s look at the company in detail.

🏦 Stock Name: Axis Bank Ltd.

🏦 NSE: $AXISBANK

📝 Stock Story

Axis Bank is the third largest private sector bank in India. It offers the entire spectrum of financial services to customer segments covering large and mid-sized corporations, MSMEs, agriculture and retail businesses. Axis Bank is known to attract the most talented minds from across the banking industry, primarily from the country’s largest government bank, the State Bank of India.

The first Chairman and Managing Director of Axis, Supriya Gupta, was incidentally the deputy managing director at SBI. Until Gupta’s tenure (till 1999), the bank had advanced cautiously, as the aggressive expansion was not the approach of the conservative management that had so many government-owned bodies on board. Gupta’s retirement urged the bank to lose its guard, paving the way to next-level retail banking. Axis Bank went on a rapid expansion drive under the new Chairman and CEO, PJ Nayak, a former IAS officer.

💰 A Disruptor In The Banking Sector

The major differentiation between Axis Bank and other banks is that Axis is constantly tapping into newer business areas ignored by competitors. This began with Nayak planning to venture into the northeastern states to generate higher revenues for the bank. With its aggressive mode cranked up, the bank has ambitious plans to become a universal bank offering services related to every aspect of finance.

🌱 Growth Potential

Axis Bank is currently growing at an accelerating pace:

▪️ The branch network has increased to 4,600

▪️ It operates 17,500 ATMs and cash deposit/ withdrawal machines across the nation.

▪️ Its book value has grown to ₹1,19,315 crores from the initial capital of ₹115 crores.

▪️ It was among the initial crop of private sector banks to set up shop when the Reserve Bank of India opened the banking sector to private players in the early 90s.

▪️ On August 10, 1999, the shares of the company were trading at ₹3.31, while they were priced at ₹758.85 as of August 11, 2022.