Is Axis bank safe?

Short Answer

The Axis Bank is a safe bank because it satisfies all criteria necessary to fall under the category of a safe bank. The PCR and CAR ratios of Axis bank are also in the safe range, i.e., 18.54% and 77%, respectively.

Detailed Answer

Banks are the most preferred places when it comes to the safekeeping of our money. However, many times, individuals have second thoughts after depositing sizable sums of money or when considering doing so. So, to help you out today, we will see whether the Axis bank is safe or not.

Is Axis bank Safe?

Axis Bank is India's third-largest private bank with a market capitalization of 2.32 trillion. The bank has more than 4,096 branches across India and has nine international branches. Therefore, the Axis bank is unquestionably a safe bank in terms of market cap and bank network.

However, there are other factors, that we will consider too -

1. NPA ratio - NPA stands for Non-Performing Assets and it shows how much of the total advances are non-recoverable. The NPA ratio should be as low as possible ( less than 3 %). The Axis bank has -

  • Gross NPA ratio - 2.76 %
  • Net NPA ratio - 0.64 %, which is quite good and makes it safer.

2.Capital Adequacy Ratio(CAR) - The capital adequacy ratio, also known as the capital-to-risk assets ratio, measures how much capital a bank has in relation to its risk. The CAR should be high and the Axis bank has -

  • Capital Adequacy Ratio -18.54 %, which is good.

3. Provisioning Coverage Ratio(PCR) - PCR is the percentage of funds that a bank reserves for losses brought on by bad debts. A PCR ratio (above 70%) means the bank is not vulnerable. The Axis bank has -

  • PCR - 77 % which is also good.

4. Under Bank Nifty- The Axis Bank is one among the 12 banks of Nifty Bank, which provides additional assurance of the bank's safety.

Axis bank safe

Axis bank is no doubt a safe bank. The bank has a low NPA and a high Provisioning Coverage Ratio. Additionally, the RBI provides extra protection to the depositor in cases of the imposition of restrictions on banks. In such cases, the DICGC is required to make interim payments to depositors up to the deposit insurance cover of Rs 5 lakh within 90 days of the restrictions on the bank.

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