Axis Bank cuts interest rate on savings bank account

Private sector lender Axis Bank reduced interest rate on savings bank accounts by 50 basis points to 3.5 per cent for deposits up to Rs 50 lakh.

However, the bank will continue to pay 4 per cent interest on deposits of above Rs 50 lakh.

Axis Bank is the fourth lender to reduce the interest rate after market leader State Bank of India (SBI) begun the process of reducing interest rate on savings bank account.

"... the bank has revised the interest rate downward on Savings Account balance by 50 bps to 3.50 per cent per annum on balance of up to Rs 50 lakh," Axis Bank said in a regulatory filing.

The new interest rates will be effective from 08/08/2017, it added.

On July 31, SBI slashed interest rate on savings account deposits by 50 basis points to 3.5 per cent on balance of Rs 1 crore and below.


Source : Economic Times

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Axis Bank emerges the frontrunner to acquire FreeCharge

Axis Bank, India’s third-largest private sector lender, has emerged the frontrunner to acquire FreeCharge, the digital payments platform owned by troubled ecommerce marketplace Snapdeal, according to three people aware of the development.

The payments unit has been seeking a buyer for several months now, even as its parent negotiates the terms for its own sale.

Mumbai-headquartered Axis Bank is currently conducting due diligence on FreeCharge, according to the three sources cited above, who estimate that a potential deal could deliver a payout of up to $100 million to cash-starved Snapdeal.

This, however, could not be independently verified by ET. Axis Bank and Snapdeal did not reply to emailed queries.

In May, ET had reported that two domestic banks and a couple of private equity firms had expressed interest in Bengaluru-based Free-Charge, once described as Snapdeal’s crown jewel by its chief executive Kunal Bahl.

FreeCharge was acquired by Jasper in 2015 in a cash-and-stock deal estimated at $400-450 million in what was then the largest acquisition in the Indian startup landscape.

Last month, market leader and rival Paytm had signed a non-exclusive term sheet while making a bid of $10-15 million for FreeCharge, according to two sources familiar with the matter.

The surprise emergence of Axis Bank as a potential buyer indicates that Jasper Infotech — the holding company of Snapdeal — had been hawking FreeCharge to others as well, sources said.

Shares of Axis Bank closed down 1.25% at Rs 503.30 on the BSE on Friday. The sale of FreeCharge and logistics unit Vulcan Express would provide much-needed relief to Jasper’s balance sheet. The embattled Gurgaon-based company is separately negotiating the sale of Snapdeal to rival Flipkart.

At one point, Jasper was eyeing a valuation of close to $1 billion for Free-Charge, as it tried to raise cash for the unit, a process that began in late 2015. The reversal in the fortunes of Snapdeal had a drastic effect on Free-Charge, which saw the volume and value of transactions fall sharply.

The company is estimated to have recorded Rs 300 crore in transaction revenue on about 12 million transactions in April.

In its heyday, the payments company had forecast 7 million daily transactions and gross merchandise transactions of Rs 20,000 crore by the end of fiscal 2017.

Over the past six months, Jasper has pumped more than Rs 440 crore into FreeCharge, according to documents filed with the registrar of companies. The latest development comes days after the Jasper board rejected an initial offer of $800-$900 million for Snapdeal from Flipkart.


Source : Economic Times

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Axis Bank launches super bikes loans; to fund 95% of costs

As the higher engine displacement 'super bikes' catch fancy of the Indian consumer, Axis Bank on Wednesday introduced a special loan product, offering to fund up to 95 per cent of the costs.

The loans, which are for motorcycles with an engine displacement of over 500 cubic centimetres (cc), will come at a price tag of 10-11 per cent per annum.

The third largest private sector lender's executive director Rajiv Anand said many Indians are aspirational of owning iconic brands like Harley Davidson and Triumph which made the bank launch the offer.

In a statement, the bank said the leisure biking segment is expected to grow at 30 per cent per annum over the next three years on high consumer spending and increasing population of high net worth individuals.

While calculating the loan to value ratio which has been capped at 95 per cent, the bank will consider accessory funding along with the cost of the bike, it said.

There are over a dozen brands which are offering bikes in the segment with almost all of them having entered the country in the last decade. These bikes come with a price tag between Rs 5 to Rs 50 lakh. The segment had witnessed sale of over 3,000 units last year.

Axis Bank said the average age of customers buying such bikes has declined to the 30s from the 40s two years ago, and the sales are helped by riding clubs and other adventure activities.

Sales of these bikes are not limited to the metros alone, with tier-II and tier-III cities also witnessing some traction, the bank said.

It can be noted that the high percentage of stressed loans, coupled with waning demand, from the corporate side is making all the banks focus more on the resilient retail lending segment. Axis Bank is among the worst hit private sector lenders on NPAs.


Source : Economic Times

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Axis Bank’s forex prepaid card

Axis Bank on Wednesday announced the launch of a forex prepaid card, issued in conjunction with Diners Club International. The card will run on the Discover Global Network, the third-largest payments network in the world, providing cardholders global acceptance. The bank said cardholders will have access to more than 35 million merchant locations and more than one million ATM and cash access locations across 185 countries. Corporate and leisure cardholders travelling abroad, especially to the US, China, Japan and Korea, will benefit, the bank said.


Source : Thehindubusinessline

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Axis Bank realigns home loan rates; introduces new slab

Country’s third largest private lender Axis Bank, on Tuesday, introduced a new slab for its home loan borrowers with offers starting at 9.60 per cent onward.

The newly introduced slab is for loans up to Rs. 28 lakh, an official spokesperson of the bank said.

For salaried borrowers, home loans up to Rs. 28 lakh will come at 9.60 per cent, which is only 0.10 per cent over its revised base rate of 9.50 per cent, he said.

While the loans above Rs. 28 lakh will attract 9.65 per cent interest, he added.

The rates compare with rival ICICI Bank and HDFC’s offerings, which have been revised in the past two days, and are a shade expensive than SBI’s offering.

State Bank of India’s best offering for women is 9.50 per cent, while the same for other borrowers is 9.55 per cent.

Non-bank lender HDFC, which also announced a rate cut yesterday, is on par with ICICI Bank’s 9.60 per cent for women and 9.65 per cent for others.


Source : Thehindubusinessline

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Axis Bank set to roll out contactless card payments

Axis Bank, India’s third-largest private sector bank, will soon facilitate contactless payment for its premium debit, credit and multi-currency forex card customers.

The bank plans to cater to about 1.70 lakh premium segment customers, accounting for about 1 per cent of its total customer base of 1.7 crore. “The industry has seen about Rs.12,000-13,000 crore worth debit card transactions that are below Rs.2,000. So, we are piloting with 100 merchants in a couple of cities to facilitate the tap-and-go payments,” said Jairam Sridharan, President of Consumer Lending at Axis Bank. At present, about 70 per cent of transactions through debit cards are below Rs.2,000 value across the banking industry.

"We need to create a culture of customers getting to know how to use the tap-and-go payment system. Changing this behaviour will take time. So, we are first trying to aim at the segment which will be quicker to adapt," Sridharan explained.

Globally, near-field communication (NFC)-based payments are popular in, among others, quick-service restaurants, department stores, and campuses.


Source : Thehindubusinessline

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Axis Bank to launch differential interest rate on FDs

Axis Bank, India’s third largest private sector bank, becomes the first private bank to launch differential interest rate on fixed deposits, to give customers a higher rate of return on their fixed deposit investment as compared to regular fixed deposit rates.

“The scheme ‘Fixed Deposit Plus’ is targeted at both Retail customers (Domestic & NRI) and corporate customers who seek safe avenues to invest surplus money at higher rates. The customers need to invest a minimum amount of Rs. 15 lakh at a single instance to enjoy a 10 bps higher rate of interest on their investment,” Axis Bank said in a statement.

The differential rates on Fixed Deposit Plus with a lock in are currently available for a minimum period of 1 year and a maximum period of less than 2 years. No premature withdrawal will be allowed prior to maturity date, it said.

In April this year, RBI had allowed banks to offer differential interest rates, based on whether their term deposits are with or without a premature withdrawal facility.

Rajiv Anand, Group Executive and Head Retail Banking said, “With the increasing number of customers seeking safer investment options, we are confident that the new ‘Fixed Deposit Plus’ scheme will offer higher earning potential, while continuing to promise guaranteed returns.

Fixed Deposit Plus is the first product launched by any private bank in the country after the recent RBI announcement that allow banks the discretion to offer differential interest rates based on whether the term deposits are with or without-premature-withdrawal-facility, Axis bank statement said.


Source : Thehindubusinessline

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Axis Bank cuts base rate by 10 bps to 9.85%

Axis Bank, India’s third largest private sector bank, has revised its lending rate or base rate from 9.95 per cent p.a. to 9.85 per cent per annum.

The new rates will be effective June 30, 2015.

“Accordingly, the effective rate applicable to various fund-based credit and credit limits, which are linked to the bank’s base rate, will reduce by 10 basis points,” Axis Bank said in a statement.

Currently, the country’s largest lender State Bank of India, largest private lender ICICI Bank and second largest private lender HDFC Bank have the lowest base rate at 9.70 per cent.

The Reserve Bank of India’s 75 bps repo rate cut since January this year has been passed on partially to the borrowers by most big banks. The RBI Governor, Raghuram Rajan, has been nudging banks to pass on the benefits of the repo rate cut to the end customers.


Source : Thehindubusinessline

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Axis Bank launches `Secure+' debit card with enhanced security features

Axis Bank, India’s third largest private sector bank launched Secure+ debit card with security features that allow customers to modify limits and switch off card usage when not required.

An EMV chip based debit card, Secure + safeguards customer’s wallet by blocking Axis Bank cards as well as other bank cards held by the customers in her/his wallet with a single phone call.

In line with government’s initiative to promote cashless transactions, the card offers emergency assistance and covers hotel and flight expenses in case of loss of tickets and wallet. The facility is available for customers within the country and also while travelling abroad. The card also offers an enhanced personal accident insurance limit of Rs. 5 Lakh, the bank said in a statement.

The Bank has also launched ‘Total Control’, a unique platform that empowers debit card customers to self-manage and customise their card features that allows customers to modify limits, choose between domestic or international usage, switch on or off card and even replace the card through a mobile application or internet or phone banking facility.

“The platform will act as a control pad for customers to manage card features and strengthen the level of security while transacting through various banking channels. The Total Control platform, along with Secure+ debit card offers customers both proactive as well as reactive control over the security of their cards,” the bank said.

“Less than 10 per cent of customers use debit cards for purchases. The top reason they stay away is concern around security. It combines chip security, wallet security, fraud protection and travel assistance - all in one card. Managing the security concerns will go a long way in enhancing the attractiveness of cashless electronic transactions in the country” said Jairam Sridharan, President & Head – Retail Lending & Payments, Axis Bank.


Source : Thehindubusinessline

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Axis Bank cuts deposit rates by up to 20 bps

A day after the Reserve Bank’s policy announcement, country’s third-largest private sector lender Axis Bank announced a deposit rate cut of up to 0.20 per cent.

“We have cut the deposit rates between 0.10 per cent to 0.20 per cent across all tenors,” a bank official told PTI.

The revision in deposit rates, which generally precedes a lending rate cut, is applicable June 9, the official said.

However, the bank has not taken a call on lending rate, the official said.

It had cut its base rate or the minimum rate of lending, by 0.20 per cent in April to 9.95 per cent after RBI’s hard talk on bank holding on to higher rates.

After announcing 0.25 per cent reduction in its key rate yesterday, RBI Governor Raghuram Rajan had continued to sound dismayed with banks for a lack of enthusiasm in transmitting RBI’s policy moves to lending rates and also warned them that they stand to lose market share to money market alternatives because of this.

He said banks have cut deposit rates by 1 percentage point in the recent months. Banks like SBI, which has been the most aggressive in cutting lending rates, have cumulatively cut rates by 0.30 per cent.


Source : Thehindubusinessline

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Axis Bank profit climbs 18% to Rs. 2,180 cr in Q4

Axis Bank, the country’s third largest private bank, reported an 18% rise in net profit for the fourth quarter ended March 31, 2015, at Rs. 2,180 crore.

The profit was at Rs. 1,842 crore a year ago.

Net interest income (difference between interest earned and expended) increased 20% to Rs. 3,799 crore as compared with Rs. 3,165.75 crore in the March quarter last year.

Other income rose 21% to Rs. 2,687 crore as against Rs. 2,213 crore in Q4FY14.

Gross non-performing assets (NPAs) as a percentage of total loans increased to 1.34% as on March end, 2015 as compared with 1.22 per cent as on March end, 2014.

Net NPAs also increased to 0.44% from 0.40%.

Dividend

The board of directors of the bank has recommended the payment of dividend of Rs. 4.60 per equity share.

The board also approved the proposal to seek enabling approval of shareholders for increase in the foreign Investment cap in the bank from 62% to 74% of its paid up equity capital of the Bank.

In addition, the board approved Sponsored Level 1 Depositary Receipt (DR) issuance programme of up to Rs. 14.2 crore DRs, with conversion of 5 equity shares to 1 DR.

Axis Bank shares closed higher at Rs. 552.90 per share, up by Rs. 17.65 (3.30%) over the previous close.


Source : Thehindubusinessline

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Axis Bank cuts base rate by 20 bps to 9.95%

Axis Bank followed other top banks to cut its base rate by 20 basis points to 9.95 per cent from 10.15 per cent on Wednesday. The revision comes into effect on April 13, 2015.

"Accordingly, the effective rate applicable to various fund-based credit limits which are linked to the bank's base rate will reduce by 20 basis points," Axis Bank said in a statement.

On Tuesday, State Bank of India and HDFC Bank cut their base rates by 15 bps to 9.85 per cent, while ICICI Bank reduced its base rate by 25 bps to 9.75 per cent post-monetary policy.

ICICI Bank's lending rate is among the lowest in the banking sector.

This comes after the RBI Governor Raghuram Rajan explicitly expressed his concerns on banks not transmitting the two policy rate cuts of 50 bps done by the RBI since January this year.


Source : Thehindubusinessline

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Axis Bank launches financial planning app

Axis Bank, India’s third largest private sector bank, has partnered Max Life Insurance, to launch a financial planning app to facilitate better life insurance purchasing experience to customers.

"The app furthers the Axis Bank vision to be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology...," Axis Bank said in statement.

The application is designed to enable policy issuance in less than four hours.

The digital initiative also involves latest analytics tools that will ensure that Axis Bank and Max Life are able to offer customised life insurance solutions after complete understanding of life stage needs of their customers.

Rajiv Anand, Group Executive & Head – Retail Banking, Axis Bank, said, “The launch of this app will further help us in identifying the customer’s needs and constraints and then offer the best product to realise those goals. We will also be able to provide a straight through process with minimal paperwork with the customer interacting with just a single person instead of six in the current process.”

Ashish Vohra, Senior Director & Chief Distribution Officer, Max Life Insurance, said, “...The process enables us to leverage smart customer analytics to offer a wider spectrum of customised offerings which will help Axis Bank in creating and protecting wealth for their customers.”


Source : Thehindubusinessline

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Axis Bank cuts deposit rates by up to 0.25 per cent

Axis Bank has reduced interest rates offered on retail deposits by 25 basis points across maturities. The cut by the country's third largest private bank comes after the Reserve Bank of India slashed its key policy rate by 25 basis points to 7.50% on March 4. One basis point is equal to a hundredth of a percentage point.

"The bank has cut its deposit rates by 25 basis points across buckets in the 18-36 months tenure," a banker familiar with the matter said. "Interest on deposits for less than 17 months has been reduced by 15 basis points to 8.50%," he added. The bank has also reduced interest rates on bulk deposits of Rs 5 crore and above by 10 basis points across maturity.

The new rates will be effective from March 11. "In the first quarter we will see deposit rates softening, which would bring down cost of funds for banks," Srinivasan Varadarajan, executive director of Axis Bank had said on March 4.

"This would bring down lending rates," he had said. The private sector lender had cut its base rate, the minimum lending rates, in October last year by 10 basis points to 10.15%. RBI governor Raghuram Rajan has been critical of bankers not transmitting lower interest rates to consumers despite lower money market rates.

Bankers are of the view that the lending rate in the system would come off with a lag once interest rates on bank deposits come down, bringing down their cost of funds. State Bank of India, the country's largest lender, had earlier indicated that it would be very difficult to have a cut in lending rates till the end of March. Earlier this month, HDFC Bank reduced its deposit rate offering by 25 basis points on bulk deposits between Rs 1 crore and Rs 5 crore

Source : Economic Times

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Axis Bank, MasterCard to offer biz payment solution

Axis Bank, India’s third largest private sector bank, announced a partnership with MasterCard and Vayana Network to launch ‘Invoice to Payment’- an end-to-end digital invoicing and payment solution.

“This solution aims to simplify B2B payments in India, estimated at over $95 billion annually. Processing of these payments today is physical, involves a number of manual steps and corporates spend a lot of time and resources to reconcile invoices and their payments. Invoice to pay is designed to simplify, digitize and automate the entire process – from invoice presentment to final payment,” Axis Bank said in a statement.

With this solution, users would experience greater convenience, security, control, and increased efficiency in business payments. For the suppliers it will ensure timely receipt of payments. The fully integrated solution will give significant financial returns to both buyers and suppliers alike, it said.

Jairam Sridharan, President – Retail Lending & Payments, Axis Bank, “Axis Bank Commercial Card Products go beyond being a lending facility. ‘Invoice to Payment’ is a completely automated, digital payment solution for businesses. It offers digital invoicing, electronic workflow approval and instant payment processing. This solution will build significant bottom line savings on administrative expenses. This solution addresses a critical need of all businesses – to view, control and efficiently manage payments to other businesses.”

Ari Sarker, Country Corporate Officer, India, and Division President, South Asia, MasterCard said, “At MasterCard, we endeavour to provide a simple, safe and secure payment experience to consumers as well as businesses. In line with the government’s Digital India mandate to encourage greater use of electronic payment transactions, we are proud to partner with Axis Bank and Vayana Network to bring this breakthrough solution to businesses large and small. The use of technology will also improve productivity for corporates, enhance buyer-seller relationships, and facilitate faster flow of funds.”


Source : Thehindubusinessline

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Axis Bank to launch 'Burgundy' for HNI customers

Axis Bank will provide premium personalised banking services with dedicated managers to its affluent high net-worth individual (HNI) customers with preferential treatment with an intention to increase business from the segment.

The third largest private bank will launch ‘Burgundy’ to offer personalised end-to-end services across segments.

“The categorisation of this segment of clients will be entrepreneurs or self-employed people, senior salaried employees and small business owners. We are looking at a net salary credit of Rs. 3 lakh (per month) or an ARV (average relationship value) of Rs. 30 lakh across products,” Rajiv Anand, Group Executive and Head Retail Banking, Axis Bank, said.

The bank has 40,000 such HNI customers (of its total customer base of over 1.5 crore). “We expect to add about 100,000 (new customers) in about next 18 months.

At present, Axis Bank's total deposit base has a market share of 3.7 per cent. It is looking to increase the market share from the HNI segment alone to 3.7 per cent in the next 3-4 years, Anand said.

The bank will facilitate a certified and dedicated Burgundy relationship manager (RM) who has an average experience of eight years and will be an expert across services, including insurance, private wealth management, asset allocation, and equity management.

Around 230 RMs have already undergone a training for 30,000 manhours to provide services across 60 locations in Tier I and II regions.

“The people in this segment are rich on money but poor on time...We believe the affluent segment will grow much faster than the mass segment and therefore give them a differentiated product proposition,” Anand said.

The services will include Burgundy world debit card offering higher limits and better features, a complimentary personalised multi-currency forex card, flexible credit limits, preferential rates, and customised business solutions for business and capital raising requirements, among other services.

Axis Bank has also roped in film actress Deepika Padukone and her father and former badminton player Prakash Padukone for the new product.


Source : Thehindubusinessline

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Axis Bank to raise up to Rs. 15,000 cr via bonds

Axis Bank on Tuesday announced that its Board has approved to issue bonds or debentures to the tune of Rs. 15,000 crore.

The third largest private bank informed the BSE on the outcome of its board meeting that, "The Board of Directors of the Bank at its meeting held on January 16, 2015, has approved issuance of Long Term Bonds / Non-convertible debentures up to Rs. 15,000 crore on a private placement basis."

"The approval of shareholders of the Bank in terms of the provisions of Companies Act 2013 is proposed to be obtained by way of Postal Ballot," the filing on the exchange said.


Source : Thehindubusinessline

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Axis Bank reappoints Shikha Sharma as MD, CEO

Axis Bank board reappointed Shikha Sharma as the bank's managing director and chief executive officer (MD and CEO) for a three-year period.

The board reappointed Sharma as MD and CEO for a third three-year term starting in June this year, the country's third largest private bank said in a filing to the stock exchanges.

Sharma had joined the bank in 2009 and is set to complete a second three year term in May.

“The reappointment is subject to approval of the Reserve Bank of India and the shareholders of the bank,” Axis Bank said in a notice to the stock exchanges.


Source : Thehindubusinessline

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Axis bank opens all women branch, focuses digital

Axis Bank, India’s third largest private sector Bank, has opened its first All Women Branch in Patna, Bihar.

“Women play an important role in managing household savings and we believe that this all Women Branch will help increase the participation of this segment in the banking industry,” said Rajiv Anand, Group Executive – Retail Banking, Axis Bank.

Axis Bank also offers its mobile app ‘Axis Mobile 2.0’ with high level of personalisation, allowing users to customise their mobile banking experience, depending on the user segment (Youth, Premium& Prime segments).

“To increase customer security, the bank has recently introduced ‘e-surveillance’ facility, a service that allows a 24x7, 365 days Centrally Monitored Automated Security of ATMs. This initiative underscores the bank’s objective of providing advanced security and simplified service to its customers, the bank said.

“The innovative, personalized multi-channel banking experience like Self Service ATMs, Internet banking, Mobile app and social media interface would henceforth be the driving force in our Bank’s Digital strategy,” Anand added.

The bank highlighted there is growth in ownership of mobile and other electronic devices, driving digital banking and over 80 per cent of the transactions to happen through digital channels in FY15.

Axis Bank’s overall market share in mobile transactions stands at 13%, as on September, 2014, the bank statement said.


Source : Thehindubusinessline

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Axis Bank, Tigerair offer on Singapore flights

Axis Bank, India’s third largest private sector bank in association with Singapore’s no-frill airline Tigerair, announced a special offer ‘Fly out to Singapore for free on round trip’ for Axis Bank’s esteemed Credit and Debit cardholders.

“From 17 December 2014 till 04 January 2015, Axis Bank customers who book a round trip to visit Singapore will only have to pay for their return ticket. Their flight to Singapore will be complimentary (airport taxes and add-on charges will still apply),” Axis Bank said in a statement.

The ‘Fly to Singapore for free on round trip’ promotion will be applicable for travel periods from 19 January 2015 to 31 March 2015 and from 6 July 2015 to 24 October 2015. All-in return fares to Singapore from Bangalore, Chennai, Hyderabad, Kochi and Tiruchirappalli start from Rs. 6,999 during the promotional period.

Tigerair operates total 36 weekly flights to Singapore from six Indian destinations. The airline also connects to Bali, Bangkok, Hong Kong, Jakarta, Kuala Lumpur, Manila, Perth, Taipei via Singapore, the gateway to amazing destinations in Asia Pacific. Connect to Sydney, Gold Coast and 11 more destinations with 50 weekly flights via Singapore in collaboration with Scoot.

Jairam Sridharan, President – Retail Lending & Payments, Axis Bank said: “…This is yet another step, by providing an exciting product to customers in the travel space. This unique offer will further enhance customer experience and will make air travel more rewarding.”


Source : Thehindubusinessline

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