As competition intensifies between banks and new-era fintech companies, big banks with sound operational performance and strong balance sheets will continue to grow faster than the industry, the chief executive and CEO said. Axis Bank CEO Amitabh Chaudhry in the 2021-22 annual report released on Wednesday. .

With a number of transformation-focused initiatives like One Axis and scaling up investment in technology, among others, he said these are the steps to build a “Bank of Bharat.”

“…raising the bar on customer obsession with our ‘Sparsh’ project, and the contract acquisition of Citi’s consumer business in India continues to move our agenda in the right direction,” Chaudhry said in his statement to bank shareholders.

He said there has been intense competition between incumbent banks and new-age fintech companies to win the hearts and minds of customers.

“In such an environment, large banks with sound operational performance, strong balance sheets and capital positions, superior technology and operational capabilities, and strong risk management practices would continue to grow faster than the whole industry,” the official said.

In 2021-2022, Axis Bank announced plans to acquire Citibank’s consumer business in India.

It provides an opportunity to further accelerate retail business growth while strengthening the bank’s positioning in key business segments such as credit cards, wealth management, payroll deposits and lending businesses. targeted retail, Chaudhry said.

He said the transition and integration process related to Citi’s consumer business is progressing well and is on track.

”The Integration Management Office with a steering committee is in place with candidates from both sides. Work has already started on key workflows around people, technology, business functions, operations, and more. to optimize the transition process.

“Based on the transaction closing in the fourth quarter of fiscal 2023, we expect to fully integrate the acquired businesses within the next 18 months,” said the head of the country’s third-largest private sector lender.

Further, he said rising inflation, tight liquidity and geopolitical developments pose a near-term risk to economic growth, however, the opportunity in the financial services space is immense.

The long-term growth engines of the Indian economy remain firmly in place thanks to several government initiatives to boost manufacturing and small industries, and the recent shift in global manufacturing and supply chain dynamics. supply to India.

“Over the past few years, we have seen rapid fundamental changes in the banking and financial services industry, led by three megatrends, consumerization, digital disruption and increased regulatory scrutiny.” to be an area of ​​relentless attention with more than 1,500 people dedicated to the digital agenda.

“We leverage our in-house product, design and engineering teams to create exclusive digital products, the impact of which is now visible across all business segments. The bank now has more than 80 partnerships across the entire ecosystem and has over 300 APIs hosted on the API Developer Portal.

“We were also the first bank to go live with the Account Aggregator framework and launched multiple use cases in acquiring personal loans, car loans, credit cards, and more. ”Addressing the recent issue of some people being found in violation of securities laws at its asset management subsidiary Axis AMC, he said the company’s management had taken strict action against them.

Chaudhry said the review process is still ongoing and in accordance with the findings, some action has been taken.

Various improvements are implemented based on findings to date. Axis AMC continues to maintain standards of governance including compliance with all legal and regulatory requirements and has a zero tolerance policy towards any instances of non-compliance.

Axis AMC management has informed SEBI of the investigation and action taken and is cooperating with SEBI in this regard, he said.

Regarding the bank’s broader environmental, social and governance objective, he said: “ESG continues to remain a bank-wide program. We have always recognized our people as our greatest asset… We have worked to create an organization that will lead the industry, not just in terms of business performance, but as a distinctive workplace.” During the financial year ended March 31, 2022, Axis Bank nearly doubled its profit after tax to Rs 13,025 crore, while net interest income increased by 13% to Rs 33,132 crore.

The bank’s total assets increased by 19% to Rs 11.75 lakh crore, deposits increased by 18% to Rs 821,721 crore while advances increased by 15% to Rs 707,696 crore.

(This story has not been edited by the Devdiscourse team and is auto-generated from a syndicated feed.)