Axis Bank will be the new name for UTI Bank. The bank’s board decided on the new name at a meeting in Mumbai today.Axis Bank is born out of the pressure on UTI Bank to shed its brandname after the split of the erstwhile UTI. Though UTI was a government instutition, its subsidiary UTI Bank has been categorised as a private sector bank, according to RBI guidelines.
The name change to Axis Bank means that UTI Bank will have to undergo a rebranding exercise soon. The rebranding process is expected to be complete by September 2007.
After the split of UTI, entities like UTI Securities, UTI MF and UTI Bank were all allowed to retain the UTI brand name for a while. Now that it is time for UTI Bank to shed the brand name, it has opted to go for the more modern-sounding Axis Bank.
Axis Bank chairman will be PJ Nayak, who is currently chairman and managing director of UTI Bank. Axis Bank, this means, has to split the top post into two, as required by new corporate governance regulations.
“The recommendation for name change to Axis Bank has arisen from the existence of several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion that this generates. The name will take effect consequent to the approval of shareholders, Reserve Bank of India and the Central Government (Registrar of Companies),” the bank said.
The change of name to Axis Bank is expected by end-June.
The change of name to Axis Bank is subject to clearance from shareholders and regulators.
The government still has a 26% stake in UTI Bank. This stake is up for sale.
Bank Website url is : http://www.axisbank.com/