Axis Bank has closed its branches in Shanghai and Colombo last month and now it is in the process of winding up its Hong Kong branch. Also plans are there to surrender UK branch subsidiary license and close operations by April 2021. They plan to close down the overseas branches where they don’t foresee any corresponding business opportunities.
- Axis Bank has announced that it would be concentrating on the local Indian market and thus optimize its overseas operations.
- It will also be consolidating its Corporate banking services, Trade Finance operations, Treasury business and Risk Management solutions through its Dubai, Singapore and GIFT city branches.
- Also the bank has its representative office at Dhaka, Abu Dhabi, and Sharjah.
- The overseas branches contributed merely 8% of 5.76 lakh crore at the end of September.
- Of the Corporate loan book of Rs. 2.10 lakh crore overseas book Rs. 41,855 crore as at the end of March 2020. Their overseas corporate loans stood at 14.5% where the bank deals with top Indian Corporates and quasi foreign entities.
- The bank’s Indian operations is engaged mainly with better rated corporates focusing more on working capital loans and transaction banking products.
- The bank’s Corporate loans grew 22% on-year against 11% in overall loan book.
- The bank have covered for the risks emanating from restructuring and as on September 2020 bank holds a 19% provision on the entire estimated probable restructuring pool in excess of the regulatory minimum of 10%.