UTI Bank, the country's third largest private lender, on Monday said the board of directors have approved a proposal to change its name to Axis Bank.

The board in its meeting held today approved change of name to avoid confusion as several unrelated entities were using the UTI brand, R Ashok Kumar, UTI Bank executive director (corporate strategy), said.

The UTI brand is owned by UTI Asset Management Company.

"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 this should occur by end-June 2007, and the re-branding process is expected to be completed within another three months," he said.

The annual general meeting is being held on June 1. After approval from AGM, the bank would seek regulatory clearances from authorities, he said.

On re-branding strategy, Kumar said the bank has hired advertising firm O&M to help in creating awareness of the new brand across the country.

The bank would change logo and colour of logo, he said, adding, the bank is likely to spend around Rs 50 crore (Rs 500 million) in the re-branding exercise.

"We will work out advertisement strategy with the advertising agency," he said.

The board also approved appointment of P J Nayak as whole-time chairman of the bank with effect from August 1, 2007.