UTI Bank to change name to Axis Bank

The board of directors of UTI Bank today decided to change the name of the bank to Axis Bank, pending shareholder approval. UTI Bank was the first private sector bank owned by a public undertaking, to commence operations in 1994.

If the shareholders approve, the bank would have to obtain subject to the approval by the central government (Registrar of Companies) and the Reserve Bank of India.

The bank would then have to amend its memorandum and articles of association to change the name of the bank from UTI Bank Ltd to Axis Bank Ltd.

The board feels that the need for the change of name has arisen from the existence of several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion that the UTI brand generates.

The name will take effect consequent to the approval of shareholders, Reserve Bank of India and the central government (Registrar of Companies). It is anticipated that this should occur by end-June 2007, and the rebranding process is expected to be completed within another three months.

The board has also recommended the appointment of P J Nayak, chairman and managing director, as whole-time chairman, subject to approval of the Reserve Bank of India, the Specified Undertaking of the Unit Trust of India and shareholders with effect from August 01, 2007.

Nayak had put in his papers aftetr the RBI had sought to split the post of chairman and managing director of the bank, in line with the Ganguly committee report on corporate governance and international best practices.