Here’s an instance of an Indian bank voluntarily opting for brand-change. Axis Bank is the erstwhile UTI Bank, and the new name has just come into force from August 1.
The name UTI – rather Unit Trust of India – is average Indian’s first brush with capital market by proxy. Presently just UTIMF or UTI Mutual Fund, the yesteryears’ Unit Trust of India was directly under the control of finance ministry at the center. Many of its landmark schemes like the famous US-64 (later much degraded) have been household names for taxpaying Indian middleclass for many years.
UTI Bank, a UTI offshoot, has been increasingly getting out of tune with UTI’s core business. In fact the bank, as per government directive, could use the UTI brand only till January 2008.
Axis Bank, now in new avatar, has grandiose plans to expand beyond Indian shores in coming years even as it consolidates its Indian business. Of late the bank scrip is in good books of analysts and investors, what with turning around bank’s fortune under the able leadership of CEO PJ Nayak.
Quite a few market watchers opine Axis Bank is a good pick among bank scrips that are expected to show good promise in the future while riding the Indian growth story.