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India’s Axis Bank sets up asset management arm

India’s Axis Bank sets up asset management arm
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First Published: Mon, Oct 15 2007. 04 39 PM IST
Updated: Mon, Oct 15 2007. 04 39 PM IST
By Reuters
Singapore: Axis Bank, a Mumbai-based private sector bank, has set up an asset management company and a trustee arm to diversify its range of businesses in India, its chairman and CEO P.J. Nayak said on 15 October.
He also said the bank intends to provide wealth management services to customers from its branch in Singapore to grow its fledging overseas business.
Speaking at a press conference in Singapore, Nayak said asset management was “a relatively low capital, high return business in India.” “There’s strong synergy with our retail banking business,” he added, pointing to the bank’s network of 594 branches and counters across India.
Axis, formerly known as UTI Bank, posted a 60% rise in net profit to Rs2.28 billion ($58.2 million) on 15 October in the three months ended 30 September from a year earlier. The earnings growth was spurred by a 73% rise in net interest income and 69% gain in fee income during the period.
Axis’ net profit grew more than 30% in 30 of the 32 quarters since it started operations, and the bank expects to maintain the pace, Nayak said when asked to give an earnings outlook.
On Singapore, Nayak said the Singapore branch, set up 18 months ago, already has a balance sheet of over $1 billion. The branch is active in loan syndication and trading, and plans to offer wealth management services to rich retail customers via a tie up with Rothschild Europe.
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First Published: Mon, Oct 15 2007. 04 39 PM IST