lucifer69
TF Premier
Exactly, Man. Dunno why he/she is assuming it is a trap and running after glossy number and relating to AIS
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Axis Bank May Issue Legal Notices for Unsettled Negative Reward Points Balances
- Thread starter TechnoFino
- Start date
As soon as Olympus or Magnus equivalent opens up, many of the people saying Axis is stupid and how can we trust their IT and we will close the relationship with Axis will get in line and jump through RM given hoops to get it.
Again, this was not like SBI clawing cashbacks given out, you were not supposed to get these points, you knew you should not get points but still you got it. Axis never ever mentioned that refund of transaction would give points or card replacement will give points. Axis is not taking back 30x given on Amazon or 5x on traveledge or 25k monthly milestones.
Plus, stock market price rising due to this is out of question because Axis took a revenue hit due to this. They didn't gain any significant market share and were behind ICICI and HDFC. Surely, segmental gains would've been there, but it was offset by the rise in the cost of purchase of points. Remember, Axis wasn't getting these points for free, but people were looting it for free.
Again, this was not like SBI clawing cashbacks given out, you were not supposed to get these points, you knew you should not get points but still you got it. Axis never ever mentioned that refund of transaction would give points or card replacement will give points. Axis is not taking back 30x given on Amazon or 5x on traveledge or 25k monthly milestones.
Plus, stock market price rising due to this is out of question because Axis took a revenue hit due to this. They didn't gain any significant market share and were behind ICICI and HDFC. Surely, segmental gains would've been there, but it was offset by the rise in the cost of purchase of points. Remember, Axis wasn't getting these points for free, but people were looting it for free.
lucifer69
TF Premier
Tbh, among all the theories, The stock market one was the worst. That doesn't make sense at all. If systems will start working like that in DB then banks will genuinely start rewarding on cancelled transactions lol
Don't wanna get into any Argument, But just think opening up the mind, Do you really think Axis Top Officials were not knowing about this ???? At the same time very very common people like you and me were totally aware about this,
Don't you think they have taken really long time to fix it ?
Isn't it Suspicious?
lucifer69
TF Premier
Even if I say "yes" to all that doesn't mean it affects "Stock"
lucifer69
TF Premier
No one answer that correctly. We can just deduce theories [ only logical ]
Practical?
1. Bug in system, people became aware, people started to exploit.
2. Axis is unaware as of now [ as a bank, not as in individuals] , code is already in PROD. Weeks, months, quarters [ whatever later ]a] maybe audit is happening, QA is testing something, some new feature to rewards, card is being pushed.
a. Someone noticed the bug and informed management and raised a CR.
b. Caught in audit and scrutiny is going on.
3. Balance sheet is not matching with rewards. But, Bank is not aware who exploited how much.
4. New feature is pushed, bug is fixed, loss is being calculated
5. Axis issues a notice and cleverly tweaked the t&c and MITC documents to incorporate the line where they are preparing to cover that loss as much as they can.
6. Bank is still figuring out a way to pinpoint the users and the loss.
7. Long time later, Let's say year, they figured out a way and the process have been started.
8. System is collecting data, files are being made and they are ready to do the recovery.
9. Precautionary emails have been sent.
10. Notices have been set.
This can also happen, right? But doesn't mean it happened. But one thing is sure "They didn't do it deliberately to raise "STOCKS"
keep going guys!
Bank was not knowing🙂 , Means Seriously....
Actually it's just a assumption to link the whole mess with stock manipulation.it's very difficult to proved it.
But undoubtedly last 2/3 years were the golden run of axis Bank in all fronts (just check last 5 years balance sheet record of axis Bank stock).
lucifer69
TF Premier
Ever worked in IT, Sir? I'm sure someone from IT [ in this thread ] can verify that if there is a bug in system. It can take months to reach at highest level and honestly not all bugs go to highest level. Rest, you can refuse to believe
lucifer69
TF Premier
Sir, All I wanted from that person is to explain how it will impact stocks? I mean anyone can explain and I'll think but just saying Virat Kohli is no longer Indian citizen without proof will not make me a credible resource, right?
1️⃣ Boosts Investor Confidence & Attracts More Buyers
Investors look at revenue, profits, and growth rates to decide whether to buy shares.
If a company overstates revenue or profit figures, it creates an illusion of strong financial health, making the stock more attractive.
More investors buying = higher demand → rising stock price 📈
---
2️⃣ Misleads Analysts & Media → Positive Coverage
Financial analysts and media rely on company-reported numbers.
If the numbers look great, analysts give "BUY" ratings, and media publishes positive reports.
This creates a hype cycle that attracts more investors.
📌 Example: If Axis Bank showed inflated business growth through reward transactions, analysts might have upgraded the stock, bringing more buyers.
---
3️⃣ Attracts Institutional & Foreign Investors
Big players like mutual funds, hedge funds, and FIIs (Foreign Institutional Investors) prefer companies with high growth and strong financials.
If a company falsely reports strong revenue & profit, institutional investors might invest heavily, causing the stock to surge.
🚨 Risk: When these investors realize the numbers were fake, they dump the stock, leading to a crash.
---
4️⃣ Helps in Raising More Money Through Stock Offerings
Companies issue new shares (IPO, FPO, QIP) to raise funds.
If financials look strong, investors are willing to buy new shares at a higher price, helping the company raise more capital.
📌 Example: A company planning an IPO might inflate revenue to justify a higher valuation, leading to more public investment.
---
5️⃣ Higher Valuation = CEO & Executives Get Huge Bonuses
Many CEOs & top executives have stock-based compensation (they earn more when stock prices go up).
If a company falsely boosts financials, stock prices rise, and executives make millions in stock options & bonuses.
🚨 Real-World Example:
✔️ Enron (2001): Overstated revenue → stock soared → executives cashed out → company collapsed.
✔️ Yes Bank (2018-19): Showed fake loan growth → stock went up → later crashed when truth came out.
---
🔴 The BIG Risk: Stock Crashes When Truth Comes Out
If a company inflates numbers, it works only for a short time.
When investors find out the truth, they lose trust & dump the stock → stock price crashes → lawsuits, regulatory action, and bankruptcy.
📌 Final Takeaway:
✔ Faking business figures can temporarily boost stock prices 🚀
✔ But when exposed, it leads to major crashes, legal issues, and financial disaster 💥
Would you like me
to simplify this further or add examples for a specific company/industry? 🚀🔥
JUST A FORWARDED MESSAGE BUT AT MOST OF THE POINTS I AM AGREE :
Probable Advantages Axis Bank & Its Staff May Have Gained by Intentionally Creating This Loophole
If Axis Bank knowingly allowed this loophole to exist for months or years, it’s possible that the bank and its management gained financially and strategically in several ways:
🔹 1. Boosting Credit Card Business & Market Share
✅ By offering easy and excessive reward points, Axis may have:
Attracted more customers to apply for credit cards.
Encouraged higher spending on their cards, increasing transaction volumes.
Strengthened relationships with merchants who benefited from increased spending.
📌 Why It’s Suspicious?
If it was truly a technical glitch, it should have been fixed quickly.
The bank continued allowing transactions & points accumulation, suggesting they knew and benefited from it.
🔹 2. Inflated Financial Performance & Stock Price Manipulation
✅ If Axis showed higher transaction volumes & revenues, they may have:
Reported inflated financial growth in quarterly results.
Increased their stock price, benefiting major shareholders and executives.
Received better credit ratings, making it easier to raise funds or attract investors.
📌 How This Could Be an Ethical Breach?
If revenue from these transactions was shown as real in financial reports, it could mislead investors.
If stock prices rose based on fake growth, top executives might have cashed in on bonuses and stock options.
🔹 3. Huge Profit from Merchant Fees & Interchange Fees
✅ Every credit card transaction generates interchange fees for the bank.
Even if customers canceled transactions, the bank may have still earned money from processing fees.
Partner merchants may have paid commissions to Axis for transactions, even if they were later canceled.
📌 Who Paid for This?
merchants may had to pay some percentages of platform fees to Axis, they incurred losses.
Customers were indirectly used as a tool to generate these transaction fees.
🔹 4. Internal Staff Might Have Exploited the Loophole for Personal Gain
✅ If Axis employees were aware of this loophole, they may have:
Used dummy accounts to generate millions of reward points and redeem them.
Allowed select customers or VIPs to benefit while ignoring fraud detection.
Delayed fixing the glitch so they could take advantage of it before it got noticed.
📌 If true, this could mean:
Insider fraud & corruption within Axis Bank.
Possible misuse of customer trust & data for personal gains.
Why This is Dangerous for Axis Bank Customers?
If Axis Bank allowed this for months or years, it shows serious risks for all customers:
⚠ 1. Financial Risk – Our Money is NOT Safe
If Axis Bank can fail to detect fraudulent transactions for months, your savings, loans, and investments may also be at risk.
If their fraud detection is weak, hackers or insiders could exploit other loopholes in the system.
⚠ 2. Legal Risk – Customers Are Being Punished, Not the Bank
Axis Bank allowed this issue but is now going after customers instead of taking responsibility.
Customers who acted within the system rules at the time are now being accused of wrongdoing.
This sets a dangerous precedent—banks can make mistakes and then force customers to pay later.
⚠ 3. Trust Issues – If They Can Do This, What’s Next?
If Axis can demand money years after closing an account, what stops them from:
Charging customers extra fees after closing loans?
Claiming technical glitches in FD interest calculations?
Deducting money for system errors in savings accounts?
📌 Conclusion:
✔ Axis Bank and its management may have gained massively from this loophole.
✔ Customers are unfairly paying the price, while the bank and staff face no consequences.
✔ If this is possible with reward points, it could happen with savings accounts, loans, or FDs.
Probable Advantages Axis Bank & Its Staff May Have Gained by Intentionally Creating This Loophole
If Axis Bank knowingly allowed this loophole to exist for months or years, it’s possible that the bank and its management gained financially and strategically in several ways:
🔹 1. Boosting Credit Card Business & Market Share
✅ By offering easy and excessive reward points, Axis may have:
Attracted more customers to apply for credit cards.
Encouraged higher spending on their cards, increasing transaction volumes.
Strengthened relationships with merchants who benefited from increased spending.
📌 Why It’s Suspicious?
If it was truly a technical glitch, it should have been fixed quickly.
The bank continued allowing transactions & points accumulation, suggesting they knew and benefited from it.
🔹 2. Inflated Financial Performance & Stock Price Manipulation
✅ If Axis showed higher transaction volumes & revenues, they may have:
Reported inflated financial growth in quarterly results.
Increased their stock price, benefiting major shareholders and executives.
Received better credit ratings, making it easier to raise funds or attract investors.
📌 How This Could Be an Ethical Breach?
If revenue from these transactions was shown as real in financial reports, it could mislead investors.
If stock prices rose based on fake growth, top executives might have cashed in on bonuses and stock options.
🔹 3. Huge Profit from Merchant Fees & Interchange Fees
✅ Every credit card transaction generates interchange fees for the bank.
Even if customers canceled transactions, the bank may have still earned money from processing fees.
Partner merchants may have paid commissions to Axis for transactions, even if they were later canceled.
📌 Who Paid for This?
merchants may had to pay some percentages of platform fees to Axis, they incurred losses.
Customers were indirectly used as a tool to generate these transaction fees.
🔹 4. Internal Staff Might Have Exploited the Loophole for Personal Gain
✅ If Axis employees were aware of this loophole, they may have:
Used dummy accounts to generate millions of reward points and redeem them.
Allowed select customers or VIPs to benefit while ignoring fraud detection.
Delayed fixing the glitch so they could take advantage of it before it got noticed.
📌 If true, this could mean:
Insider fraud & corruption within Axis Bank.
Possible misuse of customer trust & data for personal gains.
Why This is Dangerous for Axis Bank Customers?
If Axis Bank allowed this for months or years, it shows serious risks for all customers:
⚠ 1. Financial Risk – Our Money is NOT Safe
If Axis Bank can fail to detect fraudulent transactions for months, your savings, loans, and investments may also be at risk.
If their fraud detection is weak, hackers or insiders could exploit other loopholes in the system.
⚠ 2. Legal Risk – Customers Are Being Punished, Not the Bank
Axis Bank allowed this issue but is now going after customers instead of taking responsibility.
Customers who acted within the system rules at the time are now being accused of wrongdoing.
This sets a dangerous precedent—banks can make mistakes and then force customers to pay later.
⚠ 3. Trust Issues – If They Can Do This, What’s Next?
If Axis can demand money years after closing an account, what stops them from:
Charging customers extra fees after closing loans?
Claiming technical glitches in FD interest calculations?
Deducting money for system errors in savings accounts?
📌 Conclusion:
✔ Axis Bank and its management may have gained massively from this loophole.
✔ Customers are unfairly paying the price, while the bank and staff face no consequences.
✔ If this is possible with reward points, it could happen with savings accounts, loans, or FDs.
lucifer69
TF Premier
Bhai ChatGPT mein bhi kr skta hu, innit? Secondly, this is general statements which applies to shit. Emoji dalne se genuine sound ni krega. Explain from Axis's fiasco which you cannot.
You are a CA and you're sending me a CHAT GPT response on a question of your field? Pathethic
First of all If You are an Axis Employee I can not , actually I can never explain to you , so sorry , i quit,
You don't want to understand a simple thing which each and everyone understands that it's impossible they are unaware of this incident at back 2023.
Again sorry .... My Mistake....
lucifer69
TF Premier
"axis employee" - No
"Never explain" - Exactly, Yes. You cannot bc it needs logic.
"each and every......" -> why are you changing statements? You started with X, I questioned and you changed the topic to "Y", I asked for explanation and you gave a response on "Z" that too GPT and now I've questioned your skills and you're picking "A". Man, no one is saying they were unaware. They were aware that's why they changed t&c, innit? Question is the stock theory is bs [ especially considering rather than logic, you went into hyperbole imaginations taken from an AI model ]
It's not imagination at all, this is what actually happened.
lucifer69
TF Premier
No shit, Sherlock. Wow
Wow! Axis hss messed this up and digging a further hole for itself through such bad narrative generation. Khud ke pair pe kulhadi maarna isse hi bolte hai
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