Axis Bank, an Indian financial services firm, and Janalakshmi, an Indian microfinance institution providing both financial and social services, have established a relationship with the goal of expanding access to financial services for poor people in 51 Indian cities by the end of 2011. Janalakshmi will offer Axis Bank’s services and products to its existing client base, first in Bangalore and then in 50 other Indian cities by 2011. Although declining to divulge specific financial targets, Axis Bank CEO and Managing Director Shikha Sharma indicated that the bank intends the initiative to reach “a sustainable level” by the third year of operation [1].
In July 2010, Axis Bank announced plans to “extend ‘affordable’ banking services to 5,500 villages by March 2011 and an additional 6,500 villages by 2015” [2].
By Lindsey Shaughnessy, Research Associate
About Axis Bank: Established in 1994, Axis Bank, formerly UTI Bank, is a financial services firm based in Mumbai, India. The bank changed its in name in April 2007 to avoid confusion with another unrelated corporation with a similar name. As of March 2009, Axis Bank claimed net revenue of INR 137 billion (USD 2.93 billion) and a net income of INR 18.1 billion (USD 396 million). Axis Bank does not report to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse.
About Janalakshmi: Janalakshmi is an Indian microfinance institution whose two arms provide financial and social services. Janalakshmi Social Services (JSS) is the organization’s nonprofit social services arm, and its funds “can only be used to address social issues” according to the organization. Janalakshmi Financial Services offers loans, savings and microinsurance products mainly to urban clients. As of March 31, 2010, Janalakshmi reports to the Microfinance Information Exchange (MIX), the microfinance information clearinghouse, total assets of USD 25.5 million, a gross loan portfolio of USD 14.9 million, a return on assets of -3.05 percent, a return on equity of -8.74 percent and 82,161 active borrowers.
Sources and Additional Resources:
[1] Business Standard, “Axis Bank plans to tap urban poor”, September 10, 2010. http://www.business-standard.com/india/storypage.php?autono=407555
[2] MICROCAPITAL BRIEF: “Axis Bank Extends Financial Services to Rural Areas in India”, July 12, 2010. https://www.microcapital.org/microcapital-brief-axis-banks-extends-financial-services-to-rural-areas-in-india/
MicroCapital’s Microfinance Universe profile: Axis Bank
MicroCapital’s Microfinance Universe profile: Janalakshmi
Browse the MicroCapital Universe and add your entry to the wiki at https://www.microcapital.org/microfinanceuniverse/.
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