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COMPANY PROFILE: AXIS BANK

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the Government of India allowed new private banks to be established. Axis Bank was jointly promoted by the Administrator of the specified undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India (LIC) General Insurance Corporation Ltd.

LIC UI GIC

OIC

UTI

NIC

NIIC

Also with associates viz. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. Axis Bank in India today is capitalised with Rs. 232.86 Crores with 47.50% public holding other than promoters. It has more than 200 branch offices and Extension Counters in the country with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country. Axis Bank India commits to adopt the best industry practices internationally to achieve excellence. Axis Bank has strengths in retail as well as corporate banking. By the end of December 2004, Axis Bank in India had over 2.7 million debit cards. This is the first bank in India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank customers in all the places across the country where it has presence. With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at any of its existence place. The ceiling per instrument is Rs. 50,000/-. The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the International Travel Currency Card. The Travel Currency Card is a signature based pre-paid travel card which enables travelers global access to their money in local currency of the visiting country in a safe and convenient way. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence

EVOLUTION:
UTI was established in 1964 by an Act of Parliament; neither did the Government of India own it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-holders. The State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital each, and the rest was contributed by scheduled commercial banks which were not nationalized then. This kind of structure for a unit trust is not found anywhere else in the world. Again, unlike other unit trusts and mutual funds, the UTI was not created to earn profits. In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in achieving its objective and has the largest share anywhere in the world of the domestic mutual fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes an interesting story. The announcement by the then Finance Minister that the Government of India was contemplating the establishment of a unit trust caught the eye of Mr. George Woods, the then President of the World Bank. Mr. Woods took a great deal of interest in the Indian financial system, as he was one of the principal architects of the ICICI, in which his bank, First Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through Mr. B.K. Nehru, who was India's Executive Director on the World Bank, the services of an expert. The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust proposals till the expert visited India. The only point Mr. Sullivan made was that the provision to limit the ownership of units to individuals might result in unnecessarily restricting the market for units. While making this point, he had in mind the practice in the US, where small pension funds are an important class of customers for the unit trusts. The Centre accepted the foreign expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began corporate investment in the UTI, which received a boost from the tax concession given by the government in the 1990-91 Budget. According to this concession, the dividends received by a company from investments in other companies, including the UTI, were completely exempt from corporate income tax, and provided the dividends declared by the investing company were higher than the dividends received. The result was a phenomenal increase in corporate investment which accounted for 57 per cent of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby which perhaps subtly opposed the establishment of the UTI in the public sector made use of it for its own benefits later. The Government-RBI power game started with the finalization of the UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the Government, albeit in consultation with RBI. Although the appointment was to be made in consultation with the Reserve Bank, the Government could appoint a person of its choice as Chairman even if the Bank did not approve of him.

BUSINESS DESCRIPTION:
The Bank's principal activities are to provide commercial banking services which include merchant banking, direct finance, infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services. The Bank has 463 branches and 263 extension counters throughout India. During April, 2006 the Bank open-end 1 overseas branch in Singapore. PROMOTERS: UTI Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore GIC and its four subsidiaries contributing Rs. 1.5 crore each. SUUTI SHARE HOLDINGS-27.33% Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. SHARE HOLDING PATTERN: AS ON 25-05-07

BOARD OF DIRECTORS: The Bank has 11 members on the Board. Dr. P. J. Nayak is the Chairman and Managing Director of the Bank. The members of the Board are: NAME Dr. P.J. Nayak Shri Surendra Singh Shri N.C. Singhal Shri A.T. Pannir Selvam Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri S.B. Mathur Shri M.V. Subbiah Shri Ramesh Ramanathan DESIGNATION Chairman & Managing Director Director Director Director Director Director Director Director Director Director Director

MISSION AND VALUES: OUR VALUES: Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. CORE VALUES: Customer Satisfaction through Providing quality service effectively and efficiently "Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits Maximization of Stakeholder value Success through Teamwork, Integrity and People.

7P FRAME WORK IN AXIS BANK:


Once the marketing strategy is developed, there is a "Seven P Formula" that should be used to continually evaluate and reevaluate your business activities. These seven are: Product, Price Promotion Place Process Positioning People. As products, markets, customers and needs change rapidly, company must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace. PRODUCT To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time. Ask critical questions such as, "Is the current product or service, or mix of products and services, appropriate and suitable for the market and the customers of today?" Develop a habit of assessing your business honestly and asking, Are these the right products or services for our customers today? Compared to your competitors, is your product or service superior in some significant way to anything else available? If so, what is it? If not, could you develop an area of superiority? Should you be offering this product or service at all in the current marketplace? Product variety, quality and its features.

Is there a market for the service on offer? Is the market growing or shrinking? Is the service new or established? The competition prevailing in the market for the service on offer? The USP of the product. Products and Services on offered by AXIS Bank : Accounts Easy Access Accounts Prime Savings Account Salary Account Womens Saving Account Senior Privilege Account Defense Salary Account Trust & NGO Savings Account Azzadi No frills RFC (D) Account Pension savings Account. Deposits: Fixed Deposits Recurring deposits Encash 24 Tax Saver Fixed Deposits Loans: Home loan Personal loan Loan Against Property Loan Against Security Car Loans Study Loans Two Wheeler Loan Consumer Loan Investments: Online Trading Mutual Funds Fixed Income Depository Services E Depository Services Insurance: Health Insurance

Family Health Health Guard Hospital Cash

PRICES The second P in the formula is price. Develop the habit of continually examining and re-examining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Sometimes you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a profit on every sale. Could this be appropriate for you? Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading your price over a series of months or years, you can sell far more than you are today, and the interest you can charge will more than make up for the delay in cash receipts. Sometimes you can combine products and services together with special offers and special promotions. Sometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers. In business, as in nature, whenever you experience resistance or frustration in any part of your sales or marketing activities, be open to revisiting that area. Be open to the possibility that your current pricing structure is not ideal for the current market. Be open to the need to revise your prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace. AXIS bank has developed innovative strategies against its competitors with respect to pricing by use of technology. The use of technology is the strategic differentiator for AXIS bank that helps in cost minimization and creating efficiency for the customer. The creation of centralized processing system linking all its branches has been a major strategic move in this regard. The pricing mechanism and features of various HDFC products are as follows: Home Loans: Floating rates: For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at 9.25 per cent (9 per cent). The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50 per cent).

The interest rate for above ten years now stands at 10.25 per cent (10 per cent).

SAVINGS ACCOUNT: Description of Charges Minimum Average Quarterly Balance Regular Savings Account Rs 5000 (urban), Rs 2500(Semi Urban), Rs 1000 (Rural branch), Rs 500 (student account)

Charges on non maintenance thereof

Rs750 per quarter(urban &semi urban) Rs 500 (Rural branch), Rs 250 (student account) Free Free Free

Cheque Book, Pass Book Issuance Account Statements Phone Banking and Net banking FIXED INCOME

Investment Plans: Investors can choose from cumulative and non-cumulative bond options. Interest Rate: Bonds will bear interest @ 8.00% per annum and are payable half-yearly. Minimum Investment Amount: The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof. Maximum Investment Amount: There is no upper limit for investment in the Bonds. Maturity: The Bonds shall mature on the expiration of six years from the date of issue. Taxation: Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable according to the relevant tax status of the Bonds holder. Presently there is no tax deduction at source at the time of interest payment.

CURRENT ACCOUNT:

FIXED DEPOSITS: PERIOD DEPOSITS INTEREST RATES ON DOMESTIC DEPOSITS (%) Interest Rate on Deposits Interest Rates for Int Rate 15-50 Below Rs 15 lakhs Senior citizen Lakhs 1

7 days to 14 Days 30 days to 45 days 15 days to 29 days 46 days to 60 days 61 days to less than 3 months 3 months to less than 4 months 4 months to less than 6 months 6 months to less than 9 months 9 months to less than 1 year 1 year to less than 2 years 2 years to less than 3 years 3 Years to less than 5 years 5 Years upto 10 years

5.5

5.5

5.5

10

10

PROMOTION The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. AXIS bank has devised an aggressive promotional strategy through its diversified distribution mix which includes tied agencies and alternate channels like banks, brokers, telemarketing, direct sales force, internet advertizing . Some of the promotional activities undertaken are: Cross Selling exercises Organizing school level painting competitions in order to create awareness about the environmental concerns and the wild life to promote kids advantage account. Wheels of fortune - This promo are targeted at all those customers who avail a personal loan, car or a two wheeler loan. There will be lucky draw at the end of the promo and the winners would get exotic prizes. Personalized promos by sending mailers about various products on offer to all those who come in contact during the mass promotion strategies. The promotional strategies are carried out with an objective of positioning AXIS bank as a one stop financial super market. The focus of the promotions are not just confined to acquisition of new products but also extends to creating product awareness, enhancing usage, and also provide value add to the customers for their faith and loyalty. These promotions are scientifically designed based on data analysis and data mining in order to have maximum impact on the target audience. PLACE The fourth P in the marketing mix is the place where your product or service is actually sold. You can sell your product in many different places. Some companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Many companies use a combination of one or more of these methods. It refers to those activities of the company that makes the product available to target consumers. It includes geographic spread, distribution channels, dealer ships that facilitate network establishment. Axis bank is widely spread in India and its core banking operations has huge network 580 branches and extension counters foreign offices in Singapore, Hong Kong, Shanghai and Dubai 2457 ATMs reaches out to 350 cities, towns and villages across the country

AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby lowering the operating costs. It uses its network base to good effect to sell customized products.

PROCESS The fifth element in the marketing mix is the process. Develop the habit of standing back and looking at every visual element in the process or service through the eyes of a critical prospect. Remember, people from their first impression about you within the first 30 seconds of seeing you or some element of your company. Small improvements in the process or external appearance of your product or service can often lead to completely different reactions from your customers. With regard to the process of your company, your product or service, you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process. Process refers to the way your product or service appears from the outside. Packaging refers to your people and how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your customer's confidence about dealing with you. POSITIONING The next P is positioning, the habit of thinking continually about how you are positioned in the hearts and minds of your customers. How do people think and talk about you when you're not present? How do people think and talk about your company? What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others? AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible to maximum customer. It has also come up with some phone banking centre and centralized collection and payment hub. CENTRALISED PHONE BANKING CENTRE The Banks Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone, handling multiple queries in about 7000 calls per day. CENTRALISED COLLECTION AND PAYMENT HUB The Banks Centralized Collection and Payment Hub (CCPH) manages the entire collection and payment activity under the Banks Cash Management Services (CMS) across the country, handling on an average about Rs.5000 crores per month on the collection front and about Rs.1500 crores per month on the payment front. PEOPLE The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities.

It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together. An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of service is essential if the organization has to obtain competitive advantage. AXIS bank values its human resources very highly and is on a constant endeavor to continuously develop its human resources by laying strong emphasis on training development. It possesses a highly motivated team of professionals and has the lowest employee turnover rate in the industry. EMPLOYEE PRODUCTIVITY: ITEM 2001-02 2002-03 2003-04 2004-05 2005-06 Private Bank Avg 2005-06 250 4761 1021 8.02 348 6553 1020 8.69 259 4189 677 4.6 All Bank Avg 2005-06 680 10458 423.74 2.84

No. of offices 112 137 185 No. of employees 1721 2338 3447 Business per employee (in Rs. lakh) 896 926 808 Profit per employee (in Rs. lakh) 7.79 8.22 8.07

From the above data it is clearly evident that Axis bank is growing at a good rate as there number of branches are also increasing along with the increase in the employee also showing the environment provided by Axis bank. Its profit per employee is also showing a positive trend and is above the average of both the private bank and the all the bank category.

It provides challenging and exciting growth opportunities for its employees in order to push the employees unleash their maximum potential. One of the key features of any growing business is the recruitment and retention of human resources. During the year, a major challenge was the retention of manpower, given the current buoyancy in the

Indian economy as also the lucrative opportunities available for skilled personnel in the growing financial services sector. The Bank has generally successfully managed the important challenge of acquisition of talent to keep pace with the rapid network expansion, and the demands of specialized businesses. The Bank has been successful in achieving this, with the staff complement increasing by 1,792 during the year from 4,761 at end-March 2005 to 6,553 at end- March 2006. Training is an area of continuing focus for the Bank in order to ensure that its professionals are equipped to maintain high standards of customer service.

The scope of training is continually improved and refined in consultation with business groups. The training system in the Bank focuses on upgrading the professional skills of each individual employee through classroom sessions, outbound training, and in-house and external domain skills programmes. Amongst the significant retention tools is a well-structured performance-linked scheme of variable pay and employee stock options to all employees across grades and functions. Continuous training, the opportunity to work on challenging tasks, and job rotation are part of the Banks talent retention strategy.

DETAILED DESCRIPTION OF PRODUCTS AND SERVICES:


PERSONAL ACCOUNTS: PRIME SAVINGS ACCOUNT Axis Bank, we have always strived to pace our products with the growing needs of our customers. The Prime Savings account has therefore been created with your specific financial requirements in mind.
Wider Accessibility: 500 branches and one of the largest ATM networks in

India.
Greater Convenience: International Debit Card with withdrawal limit of Rs

40,000 per day facilitating transfer of funds, deposits of cash/cheques and payment of insurance premium (LIC).
More Comfort: 24 hr Internet Banking and Tele Banking services Enhanced Privileges: provide you a passbook and monthly statement of

account to keep you updated on all your transactions

Added Speed: 'At Par' cheque facility, you have the unique advantage to

encash your cheques as a local cheque at more than 330 centres where the bank has a presence at no extra cost Other Accounts in this category: SALARY POWER SMART PRIVILEGE ACCOUNT SENIOR PRIVILEGE PENSION SAVINGS ACCOUNT DEPOSITS: Fixed Deposits Axis Bank offers a simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000. Reinvestment Deposits: In a reinvestment deposit, the interest accrued to your deposit at the end of each quarter is invested along with the principal. The tenure of your deposit must be a minimum of 6 months. Automatic Rollover: As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on maturity (for both the principal and interest). You can select this option in the Account Opening Document (AOD). The options available are:
RECURRING

DEPOSITS

Power of compounding Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up Your savings through regular monthly deposits of fixed sum over a fixed period of time. Features:
Recurring

deposits are accepted in equal monthly installments of minimum Rs

1,000 and
Above

in multiples of Rs 500 thereafter. The fixed number of installments for

which a
Depositor

can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

Transfer of Accounts - a recurring deposit account can be transferred from one office of the Bank to another branch. Encash 24 The ENCASH 24 (Flexi Deposits) gives you the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to your Savings Account providing you the following unique facilities.

LOANS POWER HOUSE: Axis Bank's Power Home puts an end to your Real Estate troubles. Features: Attractive interest rates Balance Transfer facility Doorstep service Option to choose from floating rate or fixed rate Free Property & Personal accident insurance.

PERSONAL POWER: Features:


Loans

for salaried and self employed individuals loans for doctors, chartered accountants, engineers, architects, CS and

Special

ICWA .
Loans

are available from Rs 50,000 to Rs 20 lacs tenures from 12 to 60 months

Repayment Attractive Loans

interest rates Free personal accident insurance cover with personal loan

can be used for any purpose with no questions asked regarding the end use

of the loan A balance transfer facility available for those who want to retire any higher cost debt Loans available against repayment track record of any existing auto, personal or home loan Loans available against proof of life insurance policy or premium receipts
Zero

balance SB account facility for personal loan customers Simple procedure,

minimal documentation and quick approval. ASSET POWER (Loan Against Property) A take-over of your existing loan with refinancing is also possible with Asset Power. Features Attractive interest rates Balance Transfer facility available with additional finance Doorstep service Four products under Asset Power Loan against property - Residential Loan against property - Commercial Loan for purchase of commercial property Take-over of existing loan with additional refinance (Balance Transfer) Lease Rental Discounting (LRD)

CORPORATE BANKING Working Capital Finance These products are designed to ease the liquidity position of the client and come with a number of other facilities such as Internet Banking, Phone Banking etc. Trade Services Axis Bank has emerged as one of the leading banks in providing trade finance services, providing a gamut of products for both exports and imports, with dedicated Front-Desk and Specialists, speedy processing of documents and provide comprehensive and timely MIS. Structured Finance Axis Bank provides tailor made solutions to meet our clients' requirements, while mitigating the credit and price risk at the same time.

Supply Chain Management Axis Bank provides integrated commercial and financial solutions to the supply and distribution channels of a corporate. The products are designed to add value to supply and distribution channels by providing unique solutions to meet their working capital requirements. CAPITAL MARKETS Debt Solutions Axis Bank is a leading provider of debt solutions in the form of bond or debenture issuances and loan syndication. The Bank has successfully managed various debt issuances of mid and large size which includes plain vanilla loans or bonds, and structured term loans to meet the specific requirements of the clients and the projects. The Bank is the largest bond house in the country and has been ranked first in respect of various domestic and international league tables in respect of domestic debt issuances. Equity Solutions We are SEBI registered Category I Merchant Banker. The Bank's Capital Markets Department has developed significant expertise in the area of public or rights issue management, private placement of equity, overseas fund raising through FCCB and GDR and debt syndication. The Bank has acted as Lead Book Running Managers, co-arrangers and advisors to a number of equity issuances or offers. Trusteeship Services Axis Bank Ltd. is a SEBI registered Debenture Trustee in the business of Debenture Trusteeship, Security Trusteeship, Monitoring Agency and Facility Agency and predominantly acts as Trustee to privately placed debt issuances, domestic borrowings and external commercial borrowings. At present the aggregate value of the Trusteeship portfolio is approximately Rs 1, 00,000 crores. The Trusteeship Group presently services over 150 clients including leading public and private sector corporate as well as Banks and Financial Institutions including international funding agencies in respect of various debt instruments issued within the country and also for various secured Foreign Currency Convertible Bonds and External Commercial Borrowings. EDepository Services

With the introduction of settlement on T+2 basis, instruction for delivery of securities to broker's account is required immediately after sale of securities. Hence time available for submission of delivery instructions is limited. Axis Bank now permits submission of delivery instructions in electronic form using Internet based service called Speed-e. Physical delivery instructions need not be submitted in case you are submitting the instructions on Speed-e.

CAPITAL MARKET FUNDING: Axis Bank is a clearing bank for following exchanges: National Stock Exchange of India Limited (NSE) The Stock Exchange, Mumbai (BSE) National Commodity and Derivative Exchange (NCDEX) Multi Commodity Exchange (MCX)
All the Settlement related activities for these exchanges are carried out through its

Capital Market Division, Fort Branch, and Mumbai.

COMPETETIVE ANALYSIS AND ADVANTAGES OF AXIS BANK: Below in the table is shown a comparative analysis of AXIS Bank with the other major players in the banking industry.

Bank

No of No of Branches Employees

ICICI 563 HDFC 515 AXIS/UTI 348 YES 6 Kotak 78 Mahindra DATA: 2005-2006

24479 14878 6553 4189 3597

Business Profit per Capital per Employee Reserves Employee & Surplus 905 10 22556 758 7.39 5300 1022 8.69 2886 677.86 8.56 573 352 4.15 856

Interest Deposits Investmen Income

13784 4475 2889 190 694

165083 55797 40114 2910 6566

717547 28394 21527 1350 2856

From the above data it is clear that AXIS bank is among the top three private players in the banking industry.

The above doughnut clearly indicates that the branches of the Axis bank is increasing

Business per employee of Axis bank and its competitors.

Comparison of capital reserves and surplus and interest income of Axis bank and its competitors.

Comparison of Deposits and investments of Axis bank and its competitors. COMPETETIVE ADVANTAGES OF AXIS BANK: The Economic Survey of 2005-06 has affirmed that significant features of dynamic growth in recent years include a new industrial resurgence, pick-up in investment, modest inflation inspite of spiraling global crude prices and the laying of institutional foundations for faster development of infrastructure. The economic growth indices in the current year have been good and the GDP growth is expected to be around 8.1% for fiscal 2006. Non-food bank credit is expected to grow at 25.2% indicative of industrial recovery and the services sector by 9.8%. Agriculture and Allied sectors are expected to grow at a rate of 2.3% in the current fiscal. In order to maintain the GDP growth at over 8% in coming years and accelerate growth in industry, substantial investments will be required in infrastructure. External conditions have also been favourable with a growing level of foreign exchange reserves. The overall macro-economic prospects for 2006- 07 are, therefore, encouraging. OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE The Bank has been able to turn in an impressive business performance and record good financial results for the fifth year in succession, owing to the efficacy of its business model which aspires to be customer-centric. Information technology is continuously leveraged in providing value added products and services as well as multiple-delivery channels to customers in a manner that is cost-effective and which offers the Banks customers easy, real-time and on-line access for all types of transactions. The strong performance, despite a tightening of overall liquidity leading to a hardening of interest rates in the closing stages of the fourth quarter, reflected the fact that the primary Goals of the Bank of increasing its market share in various businesses and improving its quality of earnings by enhancing its core income streams, is solidly anchored in the strategy adopted by it. The sizeable network of branches, extension counters and ATMs has equipped the Bank with an impressive reach across the country and is supported by channels such as the Internet and mobile phone banking. The steady widening of this reach to smaller cities and towns, including in district headquarters, is expected to sustain the momentum of growth of low cost deposits, as the Bank enjoys a first-mover advantage vis--vis other private sector banks in many of these centers. The key factors which contributed to the healthy performance of the Bank during the year were the

Continued thrust on improvement in the quality of earnings through an emphasis on core income streams such as net interest income and fee based income; The availment of opportunities emanating from the upswing in the corporate credit cycle; A focus on improvement in asset quality through rigorous credit and risk appraisal, sound treasury management, product diversification and internal control; Enhanced cost efficiency by leveraging on technology that is continuously upgraded; Maintenance of high standards of customer service.

SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:


BUSINESS CONTINUITY CENTRE: UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC) In Bangalore which replicates the entire centralized database with a view to enable the Bank to run smoothly in case of any eventuality affecting the Banks Data Centre in Mumbai. Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously through WAN on the back-up database at the BCC. CENTRALISED PHONE BANKING CENTRE The Banks Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone, handling multiple queries in about 7000 calls per day. CENTRALISED COLLECTION AND PAYMENT HUB The Banks Centralized Collection and Payment Hub (CCPH) manages the entire collection and Payment activity under the Banks Cash Management Services (CMS) across the country, handling on an average about Rs.5000 crores per month on the collection front and about Rs.1500 crores per month on the payment front. RETAIL ASSETS MANAGEMENT GROUP The Banks Retail Assets Management Group (RAMG) is the operations hub of the entire Retail asset distribution structure. In addition to opening and disbursing more than 3000 Schematic loans every month, it is responsible for the maintenance of more than 100,000 Such loan accounts, and handles the entire post dated cheque presentation and several Kinds of repayments for all these accounts. ATM BACKEND CELL The ATM Backend Cell handles the entire cash management and reconciliation of balances pertaining to ATMs across the country and ends up tallying over four lakh Transactions by the end of the day. SERVICE BRANCHES The Banks Service Branches in the 8 major metros take care of centralized clearing activity, Handling more than one lakh cheques every day for outward and inward clearing.

DATA CENTRE The Banks Data Centre in Mumbai, the centralized IT powerhouse is like the central nervous system of the Bank. It is a real time 24x7 setup which manages 270 products and services of the Bank with a database size of 1850 GB supporting on an average 42 lakh transactions per day to service over 42 lakh customer accounts and adding new customers @ 8000 per day. CENTRALISED PROCESSING UNIT The Banks Centralised Processing Unit (CPU) is the backbone of the Bank, managing production and delivery of the entire range of deliverables to customers across the country within 24 72 hours from the time the customer opens the account. The CPU currently handles about 8500 new accounts every day. JOB RESPONSIBILITIES OF A MANAGER Job description A banker is responsible for establishing and maintaining positive customer relationships, planning and delivering effective sales strategies and monitoring the progress of new and existing financial products. Bankers may work as managers in high street branches providing operational support on a day-to-day basis, or in more specialized posts in corporate or commercial departments at area, regional or head offices. Banks operate in a fiercely competitive marketplace where change is common. Products and services offered have to develop to satisfy the expectations and demands of customers and working with staff and customers to achieve targets has become a very major part of the role. Typical work activities Responsibilities and work activities may vary between retail and corporate and commercial banking. Most retail bankers work in high street branches, dealing with both private and corporate customers, while some work in regional or head offices. Bankers who work with commercial or corporate customers may be based in branches or may work from specialized area or regional offices. Bankers who have area and regional responsibilities adopt a strategic role and, whilst retaining overall accountability for service and product delivery, usually delegate supervision of day-to-day operations to staff in branch outlets. Responsibilities for both retail and corporate and commercial bankers may include:
implementing

the delivery of sales strategies and targets and motivating employees to meet these; establishing and maintaining effective relationships with new and existing customers, establishing their needs and advising on the suitability of services; visiting business customers and attending meetings and conferences with them and other professionals; managing and supporting staff and facilitating appropriate continuing professional development (CPD);

communicating,

implementing and monitoring compliance with corporate standards and procedures; processing data to produce accurate facts, figures and reports; evaluating new and renewal lending proposals, negotiating terms with customers and, where appropriate, submitting proposals to the credit department for approval; checking accounts and initiating action if they are overdrawn without arrangement or are in excess of agreed arrangements; assuming overall accountability for products and services, such as consumer lending, current account transactions, unsecured loans, overdrafts, credit cards and personal loans; networking with appropriate professionals; Representing the bank within the wider community.

MAJOR COMPETITORS AND THEIR MARKET SHARE:


Name of the Bank Market Cap Total Asset Net Sales Net Profit All values in Cr ICICI BANK 99,998.52 560,607.22 22,994.29 3,110.22 HDFC BANK 39,473.02 141,941.13 6,889.02 1,141.45 AXIS BANK 22,071.89 119,388.42 4560.4 659.03KOTAK MAHINDRA 26,041.18 30,866.31 1354.1 141.37 YES BANK 5,220.60 6,728.34 190.18 55.32 JK BANK 3,668.88 49,435.44 1,899.33 274.49 FEDERAL BANK 2,987.01 34,371.98 1,436.53 225.21 KARNATAKA BANK 2,262.76 27,445.55 1,256.25 177.03 CENTURION BANK 6,002.76 31,711.06 1,256.25 121.38 INDUS IND 1,624.63 30,039.04 1,188.28 38.81 Comparison of these top 10 private banks :

BANKING INDUSTRY 10 YEARS HENCE:


A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), and the increased participation of private sector banks. The growth of the retail financial services sector has been a key development on the market front. Indian banks (both public and private) have not only been keen to tap the domestic market but also to compete in the global market place. New foreign banks have been equally keen to gain a foothold in the Indian market. Key banking reforms needed:

Encourage voluntary consolidation among banks Allow public sector banks to fix salary levels proportionate to performance Permit banks to issue preference shares to raise capital. More autonomy to fix salary levels proportionate to performance. Offer Competitive compensation packages at all levels to improve employee productivity. Strengths of the banking industry Regulatory systems, Economic growth, Technological advancement, Risk assessment systems Credit quality. Scope of improvement includes: Diversification of markets beyond big cities, Human resources systems, size of banks, High transaction costs, infrastructure and labor inflexibilities.

EXISTING PRICING AND PROMOTIONAL STRATERGIES:


In the banking industry the pricing strategies is concerned with the rate of interest these banks offer to the customers on there investments and also the rate of interest they levy on the customers for different type loans. These also include service charges they charge on the customer for the services they offer.

FIXED DEPOSITS INTEREST RATES: PERIOD INTEREST RATES ON DOMESTIC DEPOSITS (%) Interest Rate Interest Rates Int Rate 15-50 on Deposits for Senior Lakhs Below Rs 15 Citizen Lakhs 4 3 4 3 1 4 3

DEPOSITS

7 days to 14 days 30 days to 45 days 15 days to 29 days

46 days to 60 days 61 days to less than 3 months 3 months to less than 4 months 4 months to less than 6 months 6 months to less than 9 months 9 months to less than 1 year 1 year to less than 2 years 2 years to less than 3 years 3 Years to less than 5 years 5 Years upto 10 Years

5.5

5.5

5.5

10

10

SAVING ACCOUNTS AND OTHER CHARGES:

Source:www.utibank.com

PROMOTIONAL STRATERGIES:
In early 1950's most of the markets were choking with surplus products on offer, defying the theory "the best quality will always sell". The emergence of Branding as a value in offering has kept many organizations leaders, and in survival. Branding is

termed as a part of offering, created in the mind of customer and consumer of superior values that he or she perceives and ready to pay for. The brand can be associated with superior product, superior services, superior sales after services, or easy access. In today's era with increasing competition, is that not important enough to revisit Brand as a marketing offering (Product or Service). BRAND NAME: UTI has officially announced the change of its name to Axis Bank. The awareness campaign titled UTI Bank is now Axis Bank; everything is the same except the name, has been created by O&M and is the brainchild of Sumanto Chattopadhyay. The decision to re-brand the bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand. On the creative point of view, the change of name from UTI Bank to Axis Bank is precisely just a name change. Everything else about the brand remains the same. Axis is a strong name with an international aura to it. It is very much in keeping with UTIs success story in the private banking arena. MARKETING INITIATIVES: On the marketing initiatives, a multimedia campaign was unfolded on August 1 that will go on for the next few weeks. It seeks to reassure customers that the change of name will in no way affect the services offered by the bank. On the thought process the creative platform adopted for the name change is based primarily on twins -- siblings whose names are different, but are identical in every other way. This campaign run on Television Outdoor Print Radio and other 360-degree media Some interesting innovations are planned in the print medium. On radio, the name change is being expressed in a slightly different manner, in keeping with the nature of the medium. BROADSHEET WAY: The first campaign that was featured was a false cover page for Mid-Day going the broadsheet way. The campaign very much focused on the idea on the awareness of the bank changing its\ name to Axis Bank. Television is given priority as it gives the maximum reach among the mass media channels. Besides the mass media channels, the 2,500-odd ATM locations is also being used to convey the name change message. And of course, the signages of the 600 or so branches will also change to reflect the new name.

LOGO DESIGN: The logo design of Axis Bank is based on the letter A. It is a contemporary, universal and solid design that retains the burgundy color of the original UTI logo as a link to its heritage EXISTING MARKETING STRATERGIES TO GAIN UPPER MARKET SHARE: Going forward, the Bank will continue to derive benefit from the infrastructure created over the years and pursue a strategy of profitable growth through stronger corporate relationships and an accelerated retail customer expansion program me driven by the Banks multiple channels. The Bank continues to identify new thrust areas to sustain its growth, and these include: Growth in credit to the SME and agriculture sectors that will be driven by a network of rural and semi urban branches supported by organizational reinforcement in the form of SME cells and agriculture clusters. Reinforcement of the international remittance business. The Bank has already tied up with various banks and exchange houses in the Gulf for tapping the highvolume remittance business emanating from this region. New initiatives such as Wealth Management will enable the Bank to advice and to crosssell third party products to high net-worth customers. An expansion in the overseas branch and representative office network, commencing with the first branch in Singapore, will create opportunities for crossborder trade finance, syndication of debt and NRI business. CAPITAL MANAGEMENT The Bank believes in the continual enhancement of shareholder value by an efficient use of available capital in a manner that leads to a high return on equity. In this sense, the Bank seeks to be protective of its capital. The Bank continued to attract investor interest from domestic and foreign institutional investors, leading to a very visible increase in trading volumes and price. On the successful conclusion of the GDR offering, the Bank mobilized Rs. 1,122 crores (equivalent to US Dollars 257.03 million). In addition, the Bank also placed subordinated bonds of Rs. 1,000 crores in the market in order to raise Tier II capital to the extent eligible. The Bank is focusing on developing an asset structure that was sensitive to the importance of increasing the proportion of low risk weighted assets, in order that capital is more efficiently deployed. PREPAREDNESS FOR IMPLEMENTATION OF THE BASEL II ACCORD The Bank is in the process of identifying an appropriate software system and data management solution for a phased adoption of the Basel II framework in the area of credit risk. In the first instance, the Bank is in a position to adopt the Standardised approach for credit risk and it is strengthening the internal credit rating architecture and archiving the internal rating migration data to prepare for an eventual migration to the Internal Rating Based (IRB) approach.

The Bank is in readiness to calculate capital charge on operational risk, under both the Basic Indicator approach as well as the Standardised approach, and has mapped its activities to the eight business lines defined in the Basel II Accord. The Bank has also undertaken internal studies on several lines of business for an evaluation of the risk profile, capturing of losses incurred and identifying key risk indicators (KRIs). RETAIL BANKING With a view to attaining an increasingly significant position in the burgeoning retail financial services sector in the country, the Bank has continued to provide a sustained thrust to retail banking through a continuously expanding network and a growing sales force with customer relationship skills, that has enabled the distribution of a wide range of products to a fast expanding customer base. The key driver underpinning the profitability of the retail banking business has been the Banks customer-centric vision, manifested in the strategic interplay of product differentiation and innovation on the one hand customer segmentation on the other, where the constant endeavour is to introduce Introduction of customized products and services to cater to the specific needs of different customer segments. This has resulted in a substantial growth of retail banking business during 2005-06

The thrust on customer segmentation has been a strategic success, as evident from the strong business growth across various customer segments during 2005-06. ATM: The Bank has also continued its earlier pioneering efforts in persuading other banks to participate in ATM sharing, and presently offers the largest available access to over 18,000 ATMs in the country to its customers, based on alliances with other banks and multi-bank shared payment Networks. The Bank has also provided value additions on its versatile ATM machines, including LIC premium payment and telephone bill payments

for service providers like MTNL and BSNL, as also mobile banking services and mobile refill facilities for Airtel, Hutch, Orange and Idea cellular service providers. The Bank has tied up with UTI Mutual Fund to launch a new service that will help customers of the Bank to subscribe as well as redeem UTI Mutual Fund schemes through the Banks nationwide network of 1,891 ATMs. The Banks future thrust is on: marketing approach product innovation risk management systems Financial Advisory Rigorously designed back-office processes contribute to the strength of the Banks retail lending strategy Wealth Advisory Services INTERNATIONAL BANKING The Bank continued to provide a business focus on tapping business from the NRI community by offering a wide range of banking, investment and advisory services to them. During the year, the aggregate NRI deposits grew by 48.37% from Rs. 1,134.87 crores to Rs.1, 683.84 crores with the NRI savings bank balances growing by 115.90% from Rs. 295.79 crores to Rs. 638.60 crores. During the same period, the number of savings bank NRI accounts grew by 82.61% from 27,018 to 49,337. The accelerated growth, both in terms of account acquisition and savings bank balances of NRI business, is attributable to Initiatives that have focused on deepening of existing relationships and a simultaneous expansion of the customer base, driven by alliances with various banks and exchange houses in the Gulf region. The Bank has also partnered with the Ministry of Overseas Indians to offer an Internet based electronic remittances portal to facilitate remittances from NRIs. The portal also provides information services relating to investments in financial markets, tax consultancy and investments in real estate. Globalisation of financial markets across economies and the significant increase in international trade in recent years provides opportunities for the Bank to render banking and related services through a presence in overseas centers. Keeping this in view, the Bank has embarked on an active international expansion programme in key Asian markets. The Bank has since received a license and set up a branch in April 2006 in Singapore. This Banks first overseas branch. The Bank has also obtained the necessary approval from the regulators in China for setting up a Representative Office in Shanghai and is now in the process of completing the related formalities for opening an office.

CORPORATE BANKING Corporate Banking offers various loan and fee-based products and services to large corporate, SMEs and to the agriculture sector. The Bank continued with the strategy of diversifying its customer base, including deeper penetration in higher yielding segment, channel Finance, SMEs and agricultural finance segments. In order to give an impetus to the SME segment and to agricultural lending, there was a significant organizational reinforcement by setting up SME cells Adopting a cluster-centric approach for agricultural lending in areas with rich potential for such activity. In this direction 6 state-specific and 4 city-specific SME cells were set up. In the area of agricultural lending, 9 agricultural clusters were formed which focused on agricultural lending. The Bank will continue to: Open more rural branches as also set up agricultural clusters to boost its agricultural business. Create backward and forward linkages for all players in the agriculture business chain so as to provide composite financing across the food chain. The syndication and underwriting of corporate loan activities of the Bank took off during the year. The Bank experimented with new delivery models for credit, including setting up low cost rural ATMs at Anand, in order to provide convenient and low cost transaction services to the suppliers of milk to the Co-operative. Such application of technology provides customer convenience as well as product innovation. CAPITAL MARKETS The Banks Capital Markets business encompasses investing and trading in corporate debt and equity, and providing several other fee-based services like Capital restructuring, Placement Syndication, Trusteeship services, Management of public Rights issues, Appraisals Advisory services, Depository related services, Portfolio management services, Capital market related services. Future Strategies: Project advisory services with a focus on infrastructure and other core sectors.

Financial advisory skills with technical advisory skills by forming alliances. The Bank also maintains an investment and proprietary trading portfolio in corporate bonds and equities.

SAILIENT FEATURES:
Today 14.6% of our customers are registered for mobile banking. The Bank aims to be a significant player in the cards business. The debit card base of the Bank grew to 40 lacs during the year from 30.3 laces. The Bank was the first Indian bank to introduce the travel currency card, a foreign denominated pre-paid card, which is positioned as a convenience alternative to the travelers cheque. The card is issued in five currencies: U.S. Dollar, Australian Dollar, Canadian Dollar, Pound Sterling Euro on the VISA flag platform. During 2005-06, foreign currency sales by the Bank through the travel currency card exceeded US Dollars 63 million. The Bank is also the first to introduce Remittance Cards, which changes the way inward remittances, are sent to India. Direct remittances are facilitated via tie-ups with major Banks in the US, UK, Europe and South Asia. Rewards Card, a pre-paid Rupee card for corporate to facilitate quick payments to their employees, agents and distributors. As on 31st March 2006, the Bank has installed 21,084 POS terminals, as against 12,067 POS terminals at the end of the previous year. The growth of retail and consumer lending in India must be seen as arising from a strong growth in incomes amongst the middle class and the more affluent segments, leading to changes in consumer behavior. As the demographically induced shift is structural rather than cyclical, it is likely to sustain over the medium term and beyond, and constitutes the rationale for the growth in retail lending.

RECOMMENDATIONS TO THE COMPANY TO GAIN UPPER MARKET SHARE: UTI Bank was one of the first private banks to launch operations in the country in 1994, after the Government of India passed a resolution in favor of privatization. An IT savvy bank, UTI Bank is a pioneer in adopting new technologies in the banking sector. UTI has a very large network of branch offices and extension counters across the country. With over 1700 ATMs, UTI Bank has the largest ATM network of its kind in India. CRM: Privatization opened up the Indian banking sector, allowing a large number of players to offer retail banking services in the country. Using the latest technologies, UTI Bank introduced quality services to enhance the banking experience of its customers. As the services stack expanded, supporting customers became a challenging task. Efficient service and timely support were the deciding factors for customers to remain loyal to any particular bank, which brought Customer Relationship Management (CRM) into sharp focus. BPO: UTI Bank wanted to establish itself as a customer focused bank and carve a niche for itself amidst the widespread competition. Setting up a state of the art call center facility that could provide quality support to customers across the country became vital to further this goal. The call center was expected to eliminate the load of routine queries that branch operators had to handle. A dedicated response center would allow branch operators to divert all customers queries to the helpdesk number and focus on their core responsibilities instead. Also, a single window service with a populated knowledgebase would introduce a high degree of standardization in the replies given to customer queries. The bank was also looking to avoid a situation where customers would be put on hold for long periods of time. A failover and redundancy solution was required to guarantee high availability of services and ensure uninterrupted call traffic. For handling large call volumes, the application infrastructure was also required to be perfectly scalable. The bank wanted a solution that could accommodate growth over a long period of time. Conclusion UTI Bank has been turned into an Open Source believer after the success of its call center project. The bank has set the lead for the hundreds of BPOs and call centers in the country to follow. By running their CRM infrastructure on an open, standards based platform .BPOs can achieve significant TCO reduction along with high performance and security.

BIBLIOGRAPHY: 1. www.utibank.com 2. www.google.co.in 3. www.finance.india.mart.com 4. www.banknetindia.com 5. www.rbi.org 6. www.moneycontrol.com

1.1 Introduction

of axis bank:

Commercial banking services which includes merchant banking, direct finance infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial services. As on 31-Mar-2009, the Group has 827 branches, extension counters and 3,595 automated teller machines (ATMs). Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 359.76 crores with the public holding (other than promoters) at 57.79%.The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 853 branches and Extension Counters (as on 30th June 2009). The Bank has a network of over 3723 ATMs (as on 30th June 2009) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

1.2 History of Axis bank:


1993: The Bank was incorporated on 3rd December and Certificate of business on 14th December. The Bank transacts banking business of all description. UTI Bank Ltd. was promoted by Unit Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four subsidiaries. The bank was the first private sector bank to get a license under the new guidelines issued by the RBI. 1997: The Bank obtained license to act as Depository Participant with NSDL and applied for registration with SEBI to act as `Trustee to Debenture Holders'. Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 crores each. 1998: The Bank has 28 branches in urban and semi urban areas as on 31st July. All the branches are fully computerized and networked through VSAT. ATM services are available in 27 branches. The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10 each at a premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for sale of 2,00,00,000 No. of equity shares for cash at a price of Rs 21 per share. Out of the public issue 2,20,000 shares were reserved for allotment on preferential basis to employees of UTI Bank. Balance of 3,47,80,000 shares were offered to the public. The company offers ATM cards, using which account-holders can withdraw money from any of the bank's ATMs across the country which is interconnected by VSAT. UTI Bank has launched a new retail product with operational flexibility for its customers. UTI Bank will sign a co-brand

agreement with the market, leader, Citibank NA for entering into the highly promising credit card business. UTI Bank promoted by India's pioneer mutual fund Unit Trust of India along with LIC, GIC and its four subsidiaries. 1999: UTI Bank and Citibank have launched an international cobranded Credit card. UTI Bank and Citibank have come together to launch an international co-branded credit card under the MasterCard umbrella. UTI Bank Ltd has inaugurated an offsite ATM at Ashok Nagar here, taking the total number of its offsite ATMs to 13.m 2000: The Bank has announced the launch of Tele-Depository Services for Its depository clients. UTI Bank has launch of `iConnect', its Internet banking Product. UTI Bank has signed a memorandum of understanding with equitymaster.com for ebroking activities of the site. Infinity.com financial Securities Ltd., an e-broking outfit is Typing up with UTI Bank for a banking interface. Geojit Securities Ltd, the first company to start online trading services, has signed a MoU with UTI Bank to enable investors to buy\sell demat stocks through the company's website. India bulls have signed a memorandum of understanding with UTI Bank. UTI Bank has entered into an agreement with Stock Holding Corporation of India for providing loans against shares to SCHCIL's customers and funding investors in public and rights issues. ICRA has upgraded the rating UTI Bank's Rs 500 crore certificate of deposit programmed to A1+. UTI Bank has tied up with L&T Trade.com for providing customized online trading solution for brokers. 2001: UTI Bank launched a private placement of non-convertible debentures to rise up to Rs 75 crores. UTI Bank has opened two offsite ATMs and one extension counter with an ATM in Mangalore, taking its total number of ATMs across the country to 355. UTI Bank has recorded a 62 per cent rise in net profit for the quarter ended September 30, 2001, at Rs 30.95 crore. For the second quarter ended September 30, 2000, the net profit was Rs 19.08 crore. The total income of the bank during the quarter was up 53 per cent at Rs 366.25 crore. 2002: UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a Director of the Bank w.e.f. January 02, 2002. A C Shah, formerchairman of Bank of Baroda, also retired from the banks board in the third quarter of last year. His place continues to be vacant. M Damodaran took over as the director of the board after taking in the reins of UTI. B S Pandit has also joined the banks board subsequent to the retirement of K G Vassal. UTI Bank Ltd has informed that Shri Paul Fletcher has been appointed as an Additional Director Nominee of CDC Financial Service (Mauritius) Ltd of the Bank.And Shri Donald Peck has been appointed as an Additional Director (nominee of South Asia Regional Fund) of the Bank. UTI Bank Ltd has informed that on laying down the office of Chairman of LIC on being appointed as Chairman of SEBI, Shri G N Bajpai, Nominee Director of LIC has resigned as a Director of the Bank. 2002: B Paranjpe & Abid Hussain cease to be the Directors of UTI Bank.UTI Bank Ltd has informed that in the meeting of the Board of Directors following decisions were taken: Mr Yash Mahajan, Vice Chairman and Managing Director of Punjab Tractors Ltd were appointed as an Additional Director with immediate effect. Mr N C Singhal former Vice Chairman and Managing Director of SCICI was appointed as an Additional Director with immediate effect. ABN Amro, UTI Bank in pact to share

ATM. UTI Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank is scheduled to be held on October 24, 2002 to consider and take on record the unaudited half yearly/quarterly financial results of the Bank for the half year/ Quarter ended September 30, 2002. UTI Bank Ltd has informed that Shri J M Trivedi has been appointed as an alternate director to Shri Donald Peck with effect from November 2, 2002. 2003: UTI Bank Ltd has informed BSE that at the meeting of the Board of Directors of the company held on January 16, 2003, Shri R N Bharadwaj, Managing Director of LIC has been appointed as an Additional Director of the Bank with immediate effect.UTI Bank, the private sector bank has opened a branch at Nellore. The bank's Chairman and Managing Director, Dr P.J. Nayak, inaugurating the bank branch at GT Road on May 26. Speaking on the occasion, Dr Nayak said. This marks another step towards the extensive customer banking focus that we are providing across the country and reinforces our commitment to bring superior banking services, marked by convenience and closeness to customers. -UTI Bank Ltd. has informed the Exchange that at its meeting held on June 25, 2003 the BOD have decided the following: 1) To appoint Mr. A T Pannir Selvam, former CMD of Union Bank of India and Prof. Jayanth Varma of the Indian Institute of Management, Ahmedabad as additional directors of the Bank with immediate effect. Further, Mr. Pannir Selvam will be the nominee director of the Administrator of the specified undertaking of the Unit Trust of India (UTI-I) and Mr. Jayanth Varma will be an Independent Director. 2) To issue Non-Convertible Unsecured Redeemable Debentures up to Rs.100 crs, in one or more tranches as the Bank's Tier - II capital. -UTI has been authorized to launch 16 ATMs on the Western Railway Stations of Mumbai Division. -UTI filed suit against financial institutions IFCI Ltd in the debt recovery tribunal at Mumbai to recover Rs.85cr in dues. -UTI bank made an entry to the Food Credit Programme; it has made an entry into the 59 cluster which includes private sector, public sector, old private sector and cooperative banks. -Shri Ajeet Prasad, Nominee of UTI has resigned as the director of the bank. -Banks Chairman and MD Dr. P. J. Nayak inaugurated a new branch at Nellore.-UTI bank allots shares under Employee Stock Option Scheme to its employees. -Unveils pre-paid travel card 'Visa Electron Travel Currency Card' -Allotment of 58923 equity shares of Rs 10 each under ESOP. -UTI Bank ties up with UK govt fund for contract farm in -Shri B S Pandit, nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) has resigned as a director from the Bank wef November 12, 2003. -UTI Bank unveils new ATM in Sikkim. 2004: Comes out with Rs. 500 mn Unsecured Redeemable Non- Convertible Debenture Issue, issue fully subscribed -UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I) has been appointed as an Additional Director of the Bank w. e. f. January 20, 2004.-UTI Bank opens new branch in Udupi-UTI Bank, Geojit in pact for trading platform in Qatar -UTI Bank ties up with Shriram Group Cos Unveils premium payment facility through ATMs applicable to LIC UTI Bank customers Metal junction (MJ)- the online trading and procurement joint venture of Tata Steel and Steel Authority of India (SAIL)- has roped in UTI Bank to start off own equipment for Tata Steel. -DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold Incorporated, has secured a major contract for the supply of ATMs an services to UTI Bank -HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m UTI

Bank installs ATM in Thiruvananthapuram Launches Remittance Card' in association with Remit2India, a Web site offering money transfer services 2005: - UTI Bank enters into a banc assurance partnership with Bajaj Allianz General for selling general insurance products through its branch network. -UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in Karnataka at Mangalore. 2006: -UBL sets up branch in Jaipur -UTI Bank unveils priority banking lounge.

1.3 Management of Axis bank


Promoters: Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 Crore, LIC - Rs. 7.5 Crore and GIC and its four subsidiaries contributing Rs. 1.5 Crore each SUUTI - Shareholding 27.02%Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI where Government has continuing obligations and commitments to the investors, which it will uphold.

1.4 MILESTONE
Mar-08-----Axis Bank launches Platinum Credit Card, India's first EMV chip based card Dec-07-------Axis Bank gets AAA National Long-Term Rating from Fitch Ratings Sept-07--------Axis Bank ties up with Banque Prive Edmond de Rothschild Europe for Wealth Management July-07----------UTI Bank re-brands itself as Axis Bank July-07--------UTI Bank successfully raises USD 1050 million July-07------UTI Bank ties up with Tata Motors Ltd. for Car Loans June-07--------UTI Bank's expansion into Asia supported by FRS May-07------UTI Bank launches 'Spice Rewards' on the bankcards - India's first-ever merchant-supported rewards program April-07---------UTI Bank opens a Financial Services Category I Branch in the DIFC in Dubai Mar-07------UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans Mar-07----------UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the country Mar-07------------UTI Bank launches Car Loans in association with Maruti Udyog Ltd Mar-07--------- UTI Bank opens a Full License Bank Branch in Hong Kong Feb-07--------Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank Co Branded Credit Card Exclusively For Small Road Transport Operators (SRTOS) Feb-07--------UTI Bank announces the launch of its Meal Card Feb-07-------- UTI Bank announces the launch of its Gift Card

Feb-07------- LIC Premium payment now through UTI Bank Branches Jan-07------- UTI bank opens Priority Banking branch in Mumbai and Kolkata Nov-06-------- UTI Bank opens Priority Banking Lounge in Pune Sep-06-------- UTI Bank launches operations of UBL Sales, its Sales Subsidiary Inaugurates its first office in Bangalore Aug-06------- UTI Bank announces the launch of its Credit Card Business Aug-06------ UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market Aug-06--------- UTI Bank Business Gold Debit Card MasterCard Launched - Designed for business related spending by SMEs and self employed professionals Aug-06------- UTI Bank announces the scheme of issuance of "Senior Citizen ID Card" in association with Dignity Foundation Aug-06-------- UTI Bank rolls out its 2000th ATM July-06------------ UTI Bank opens Representative Office in Shanghai May-06-------- UTI Bank and LIC join hands to launch an Annuity Card for group pensioners of LIC May-06------ UTI Bank ties up with Geojit Financial Services to offer Online Trading service to its customers Apr-06------- UTI Bank opens its first international branch in Singapore Jan-06------ UTI Bank and UTI Mutual Fund to launch a new service for sale and redemption of mutual fund schemes through the Bank's ATMs across the country Dec-05------- UTI Bank wins International Financing Review (IFR) Asia 'India Bond House' award for the year 2005 Oct-05------ UTI Bank extends banking services to the rural milk producers in Anand and Kheda districts in Gujarat July-05---------- UTI Bank and Visa International launch Mobile Refill facility - Anytime, Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India May-05------- UTI Bank and Bajaj Allianz join hands to distribute general insurance products Apr-05------- UTI Bank launches Smart Privilege - a special bank account designed for women Mar-05--------- MTNL ties up with UTI Bank for payment of telephone bills through the Bank's ATM network Mar-05------- UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million through Global Mar-05------ Depositary Receipts (GDRs) Feb-05----------UTI Bank appointed by Government of Karnataka as the sole banker for the Bangalore One (B1) project Feb-05--------------- UTI Bank launches a powerful version of Kisan Credit Card Jan-05------------- UTI Bank ties up with Remit2India to launch the Remittance Card Mar-04---------- UTI Bank enables premium payment of LIC policies through its ATMs. Feb-04------ Bilateral arrangement between State Bank of India (and its 7 associate member banks) and UTI Bank. comes into force with the commencement of operations (as on 3rd February '04) of the combined network of over 4000 ATMs Feb-04--------- UTI Bank (by pursuing a proactive strategy of forging bilateral agreements and being a progressive player in the multi-lateral consortiums for shared ATM network) offers its customers access to over 7000 ATMs across the country - the largest to be offered by any bank in India so far. Dec-03------- Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This ATM is at the highest altitude in India. Sep-03------ The Bank's ATMs across the country crosses the thousand mark Sep-03---------- Bank launches the Travel Currency Card. Aug-03--------- The Bank's Debit Card crosses the one million mark. Aug-03-------- Total Advances cross Rs 7,000 Crore. May-03------------ Bank declares a net profit of Rs 192.18 crores for FY03, a growth of 43% over the previous year

Mar-03-----------Bank signs Agreement with Employees Provident Fund Organization (EPFO) for disbursement of Pension Mar-03--------- Bank crosses the 800 ATM mark Mar-03 -----The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs. 164.00 crores, through a Preferential offer to Life Insurance Corporation of India (now constituting 13.54% of the Bank's expanded equity), Citicorp Banking Corporation, Bahrain (holding 3.84%), Chris Capital I, LLC, Mauritius (holding 3.84%) and Karur Vysya Bank Ltd.(constituting 1.00%). Mar-03 ---------The Bank also Increases the authorized share capital of the Bank from Rs. 230 crores to Rs. 300 crores. Feb-03--------- Bank, in a pioneering move, launches the AT PAR Cheque facility, free of cost, for all its Savings Bank customers. Feb-03-------- Bank wins mandate to set up 14 ATMs at the Western Railway stations along the Mumbai division. Oct-02------- Bank launches Corporate iConnect? - the Internet Banking facility for Corporate Aug-02------ Bank signs MoU with BSNL regarding bill collection services across the country through both online and offline channels. Apr-02-------------------------- Bank opens its 500th ATM Mar-02------------------------ Deposits Cross Rs.12, 000 Crore Jan-02---------------------- The Bank's 100th branch opens at Tuticorin, Tamilnadu Jan-02------ The Bank opens an ATM at the Gol Dak-Khana, i.e. the New Delhi GPO, making it the first instance of a commercial bank setting up an ATM at any post-office in the country. Dec-01-------------- Total Advances cross Rs 5,000 Crore Nov-01----------------- The deposit base for the Bank crosses Rs. 10,000 Crore Sep-01------- Private placement of 26% stake in the Bank to CDC Capital Partners. UTI holding reduces to 44.88% Aug-01--------- Bank signs MoU with India Post for introducing value added financial products and services to customers of both organizations, including setting up of UTI Bank ATMs in post offices. July-01---------- Bank ties up with Govt of Andhra Pradesh for collection of commercial tax Dec-00------ Bank opens its 200th ATM. It becomes the 2nd largest ATM network in the country, a position held even today. Oct-00---------------------- Bank becomes fully networked July-00-------------------- E-commerce initiatives announced July-00-------------- Financial Advisory Services offered beginning with marketing of US 64 Apr-00------------ UTI Bank calls off its proposed merger with Global Trust Bank and surges ahead on its own. Apr-00--------- Bank launches its Internet banking module, iConnect Retail loans introduced for the first time by the Bank Mar-00-------- Profits cross Rs 50 crore mark for the first time. Feb-00----------------- Bank adopts Finacle software from Infosys for core banking Jan-00------------ Dr.P.J Nayak takes over as Chairman and Managing Director from Shri Supriya Gupta. Sep-99--------------- Cash management services (CMS) launched, Co branded credit card launched Mar-99--------------- Deposits cross Rs.3000 crores Sep-98-------- UTI Bank goes public with a Rs. 71 crore public issue; Issue oversubscribed 1.2 times, over 1 lakh retail investors. UTI holding reduces to 60.85% Jun-96---------- Crosses Rs.1000 crore deposit mark Mar-95------------------- Completes first profitable year in operation Apr-94------- First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan Singh, Hon'ble Finance Minister, Government of India. Dec-93------------ UTI Bank comes into being Dec-93--------------------- Registered office at Ahmedabad; Head office at Mumbai

3.1 PRODUCT OF AXIS BANK


Easy Access Saving Account Saving Account for Women Prime Saving Account Senior Citizens Saving Account Priority Banking Corporate Salary Account Trust /NGOs Saving Account Resident Foreign Currency Account Online Trading Account Current Account Term Deposits Locker Facilities NRI Services Depository Services Financial Advisory Services Wealth Management Services Insurance Solutions Life and General Retail Loans Credit Loans Travel Currency Cards Remittance Cards Gift Cards .

4.2 SAVING ACCOUNT INFORMATION


Definition: A deposit account at a bank or savings and loan which pays interest, but cannot be withdrawn by check writing.

Types of Saving Account In Axis Banking


Zero Balance Savings Account At Axis Bank it has been constant endeavor to create products specifically catering to your needs. The account while offering a whole range of services also addresses your latent need of having an account without the hassle of maintaining an average quarterly balance. Features: - 1.No Average Quarterly Balance requirement 2. Free International Debit Card with an Accidental Insurance cover up to Rs 2 lakhs* (charges for the primary holder are waived) 3. Free mobile banking facility 4. Access through more than 825 branches and more than 3595 ATMs 5. At-Par cheque facility with the clearing limit of Rs 50,000 6.24x7 Telebanking & Internet banking 7. Free quarterly statements 8. Free monthly e-statement Conditions Apply:1. Initial funding of Rs. 5,500. 2. Account maintenance fee of Rs. 500 per annum Krishi Savings Account (Kheti Ho Khushahali ki) Axis Bank offers a unique savings account which is easy to operate and allows you to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and true to its nature has been called the Krishi Savings Account. Some of the features of our new product are: Average Balance Requirement: This account is offered with the requirement of maintaining the half-yearly average balance of Rs 1000 only. International Master Debit Card The Krishi Savings Account entitles you to an International Master Debit Card with which you can access your account anytime through the Axis Bank ATM network free of cost. This card comes with a cash withdrawal limit of Rs 25,000 per day. Free Accident Insurance cover of Rs 2 lacks. Anywhere Banking Being a Krishi account holder, you are entitled to access our wide network of more than 825 branches and 3595 ATMs across 440 cities. You can now easily carry out your transactions through any of the branches or ATMs.

At Par Cheque Book Your Krishi Savings Account comes with the At-Par Cheque facility. This facility enables you to encash the cheques as local instruments at any of the 440 centers where the Bank has its presence, at no extra cost. Moreover, you can also issue cheques at other centers upto the limit of Rs 50,000. Easy Access Savings Account (Banking made easy) A : Accessibility C : Convenience C : Comfort E : Earnings S : Speed S : Service Want a savings account that transcends geographical boundaries? Presenting, Axis Bank's Easy Access Savings Account. The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Easy Access Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. You can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers.
At-par cheque ATM Network Anywhere Banking Telebanking iConnect Mobile Banking Quarterly account statement Quarterly interest @ 3.5 % per Free monthly e-statement.

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You can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers. Corporate Salary Account: Our Corporate Salary Power Offering is designed to offer payroll solutions through in a 24 X 7 environment. We leverage on our extensive network of distribution channels spread across 450 centers through a network of more than 827 branches and 3595 ATMs besides our superior service delivery model and product features, as a strong differentiator, to provide value to the end user. Benefit to Employers: Efficient salary disbursal. Web Upload Transfer salaries/reimbursements directly from your current account with Axis Bank to your employee's accounts using I Connect from your office.

Single-instruction salary credit - Same day salary credits for all companies having Corporate Account with Axis Bank. Dedicated Relationship Manager at metro locations to understand the financial requirements of your employees. Benefit to Employees: No minimum balance criteria. Unparalleled Access - Anywhere banking facility through our network of Branches, ATM and Internet banking facility. AT Par cheque books payable locally at all Axis Bank locations. International Debit cum ATM cards with enhanced Cash withdrawal facility and other value add-ons. Online Banking with funds transfer, online shopping and bill payment options. Depository services with free online trading accounts. Meal Cards on a master card platform. Employee Reimbursement accounts as a savings account variant. Preferential pricing on loan products and credit cards and other banking products & services. Prime Savings Account: Want a customized savings account to suit your specific financial requirements? At Axis Bank, we have always strived to pace our products with the growing needs of our customers. The Prime Savings account has therefore been created with your specific financial requirements in mind. Through the 'At Par' cheque facility, you have the unique advantage to encash your cheques as a local cheque at more than 330 centres where the bank has a presence at no extra cost. In addition the account enables you to issue cheques up to Rs. 1 lakh, which will be treated as 'At Par' across these locations. You can avail of all these services with a minimum average balance of Rs 25,000 in metro/urban/semi-urban centres and Rs 10,000 in rural centres. Smart Privilege Account :( For the woman of today) In today's busy world it's tough being a working woman. Right from shuttling between a job and family to taking care of her finances she has to be on her toes all the time. Keeping this in mind, we at Axis Bank have designed a savings account best suited for the woman of today. With the Smart Privilege Account, you can manage your money and your life and as well as enjoy a host of lifestyle privileges. Furthermore Axis Bank's Smart Privilege Account ensures that you have enough time for all the important things in life. Senior Privilege (Because life begins at sixty) Are you seeking a banking style that compliments your senior status? Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact that a senior citizen's banking requirements are wholly different and require special consideration. Special Privilege (A Privilege assures the care you deserve): We have introduced Senior Citizen ID card for our Senior Privilege patrons. Let us briefly introduce the wide range of advantages it hold for you.

Avail of Great benefits with Senior Citizen ID card ID card acts as an age proof. Enabling you to redeem every advantage that you are eligible for, this card will soon help you avail of certain never-before Senior-citizen benefits at various stores, service providers and installation across the nation. Feel safe Everywhere Apart from provide you with the power to claim great benefits, card also act as emergency information medium. In case of emergencies, it provides the doctors and authorities with vital data like your blood group, allergies, illnesses, address and emergency contact details. This ensures that you are well looked after in any situation, no matter where you are. Always a Privilege It will help in strengthen the bond with us and to be of assistance to you at all the times, no matter what your need be. Whether its loan, a savings account or any financial services that you wish to avail of, we will make sure that we're always be there by your side. Power Salute (Salute to the defense forces) Are you looking for an account that fits with your life in the Defence Forces? Defense Salary Account from Axis Bank is a product designed keeping in mind how tough a life in the Defense Forces is. Not only does it come to you absolutely free, no minimum balance is required either. You can also access the entire Axis Bank network, including more than 2300 ATMs and 550 branch offices (and growing) no matter where you are posted. With the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) you can now rest assured about your family and all their financial needs. It's our way of showing our appreciation to your work. Banking Privileges: At-par Cheque Facility: Your job involves constant transfers across the country. With the at-par cheque facility it will no longer be necessary to set up new bank accounts with each transfer. Additional Debit Card: Along with a free International Debit Card, you also get a free card for the joint account holder. This means that your child or spouse also enjoy the same benefits of banking with Axis Bank. Financial Advisory Services: Our solutions answer to the twin goals of meeting your requirements and to diversify and spread the risk of your investment portfolio, so you can look forward to a comfortable and worry-free life. We first understand your exact investment needs and then design the perfect investment plan for you. Trust/NGO Savings Account: Thoughtful banking for people who spend their lives thinking of others Need special banking for special causes? Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organizations can devote all of their time to their noble motivations. Features:A Savings Account for your Trust with a concessional Average

Quarterly Balance a multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever we are present. Free anywhere banking across all our Branches and Extension Counters and over all our ATMs. Free Demand Drafts or Pay Orders as and when required by you to remit funds. Free collection of cheques at outstations locations Free monthly e-statement Monthly Statement of Account delivered at your doorstep. Facility for collecting donations in your account through our network of Branches and extension counters across the country, as well as through iConnect - our Internet Banking facility. Also, Axis Bank can offer the facility to donate funds to your Trust through our Internet Banking facility iConnect to its customers. An Axis Bank customer can donate any amount to your Trust through the Internet. In such cases, the savings account of the customer gets debited and the savings account of your Trust gets credited with the amount of donation at the same time. At the end of every month, the Bank will provide an MIS giving details of the amount of donations and the name of donor. This will enable the Trust to issue receipts to the donors. Free Internet Banking facility that enables you to view the status of your account, transfer funds and carry out a number of banking activities from the comfort of your home or office. Investment Advice: Our Financial Advisory Desk will provide portfolio management advice as well as help you undertake investments. Free Demat: To facilitate your investments, we offer a free Demat Account (charges due to NSDL must still be levied) to our esteemed account holders in the Trust or Society segment. Foreign Contribution (Regulation) Act [FCRA] accounts: The FCRA account enables approved organizations to receive foreign contributions for utilization in their activities in India. The Bank will provide assistance in the process of documentation and obtaining necessary approvals from Ministry of Home Affairs at New Delhi.

4.3 CURRENT ACCOUNT INFORMATION


CHANNEL ONE: (FOR SUCCESSFUL BUSINESSES) The Channel One Current Account is an effort in that direction where we take care of your day to day banking requirements leaving you with more time for your business. Channel One Current Account is most appropriate choice of successful businesses. At a monthly Average Balance (MAB ) of Rs. 10 lack. FEATURES: 1. Relationship Manager 2. Doorstep Banking 3. Anywhere Banking 4. Free Internet Banking

5. Free 24 hour Telebanking 6. Mobile Banking Service 7. International debit card 8. cheque Protection Faciltity 9. Free 24 hour cheque deposite facility 10. Payment of Government Taxes/ Dues 11. Foreign exchange services. ZERO Hassle Balance: Small businesses rising on the growth graph need the right of nurturing and appropriate solution for their growing banking requirements. Recognizing these needs, Axis Bank present you the Local Current Account geared to answer all kinds of local business requirements. At a monthly Average Balance (MAB) of Rs. Nil. FEATURES: 1. Zero Balance facility 2. 75 free transactions every month 3. Rebate on Annual Charges 4. Upfrount Annual Fee 5. Mobile Banking 6. ATM cum International Debit Card 7. Free Internet Banking 8. Telebanking 9. Free Monthly Account Statement BUILDERS AND REAL ESTATE: Axis Bank understands the increasing demands on businesses in this segment .Heres presenting the Axis Bank Builder & Real Estate Current Account a current account with unparalleled product features built to suit Builders & Realtors exclusively. This account offers you unmatched convenience while adding financial value to your businesses spread over geographies. . At a monthly Average Balance (MAB ) of Rs. 5 Lacs this account comes loaded with special facilities and benefits, most appropriate for your business. FEATURES: 1. Home Branch Cash Deposit 2. Non Home Branch Cash Withdrawal 3. Free Anywhere Banking 4. Cluster facility 5. Zero Balance account for Vendors and Suppliers 6. Franking Facility 7. Customer cheque printing 8. Internet Banking 9. Free 24-hour Phone banking 10. Mobile Alerts 11. ATM cum Debit Card 12. Free Monthly Account Statement

4.4 Training in Wholesale Banking Operations


CORPORATES Corporate Banking reflects Axis Bank's strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking products. We achieve this through innovative product development and a well-integrated approach to relationship management. Funded Services: Working Capital Finance, Bill Discounting, Export Credit, Short Term Finance, Structured Finance, Term Lending Non Funded Services: Letter of Credit, Collection of Documents, Bank Guarantees Value Added Services: Syndication Services , Real Time Gross Settlement, Cash Management Services, Corporate Salary Accounts, Reimbursement Account, Bankers to Right/Public Issue, Forex Desk, Money Market Desk, Derivatives Desk, Employees Trusts, Cash Surplus Corporates, Tax Collection Internet Banking: Supply Chain Management, Corporate Internet Banking, Payment Gateway Services SMALL AND MEDIUM ENTERPRISES: At Axis Bank we understand how much of hard work goes into establishing a successful SME. We also understand that your business is anything but "small" and as demanding as ever. And as your business expands and enters new territories and markets, you need to keep pace with the growing requests that come in, which may lead to purchasing new, or updating existing plant and equipment, or employing new staff to cope with the demand. That's why we at Axis Bank have assemble products, services, resources and expert advice to help ensure that your business excels. Solutions are designed to meet your varying needs. The following links will help you identify your individual needs. Funded Services: Funded Services from Axis Bank are meant to directly bolster the day-to-day working of a small and a medium business enterprise. From working capital finance to credit substitutes; from export credit to construction equipment loan - we cater to virtually every business requirement of an SME. Click on the services below that best define your needs Non-Funded Services: Under Non-Funded services Axis Bank offers solutions that act as a catalyst to propel your business. Imagine a situation where you have a letter of credit and need finance against the same or you have a tender and you need to equip yourself with a guarantee in order to go ahead. This is exactly where we can help you so that you don't face any roadblocks when it comes to your business. The following are the services that will precisely tell you what we can do Business Accounts, Letters of Credit, Collection of Documents, Axis Bank Trade, Guarantees, Cash Management Services, Money Market Desk, Derivatives Desk, Services to Cash Surplus Corporate, Services to Employee Trusts, Bankers to Rights/Public Issue, Tax Collection. Specialized Services: Axis Bank is one of the most trusted entities when it comes to specialized services like selling of precious metals to customers. Under specialized services you can also avail customized control of your value chain through our internet banking platform. Value Added Services: There is a plethora of services that we offer under value added services. There's corporate salary account which ensures smooth payment methods to your staff. You can avail an assortment of credit cards and debit cards from our merchant services.

The following are the highlights of this service: Real Time Gross Settlement, Reimbursement Account, Custody Services, Corporate Salary Accounts, Merchant Services, Axis Bank Gold Business Credit Card Internet Banking: Internet banking is a revolutionary service under the banking sector and Axis Bank is a forerunner in providing you with this service. We provide state-of-the-art payment gateway services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of your business and makes banking extremely cost-efficient. GOVERNMENT SECTOR: Axis Bank acts as an active medium between the government and the customers by means of various services. These services include : Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes and Sales Tax collections at their local Axis Bank E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus facilitating imports for the Government. Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan Dombivli Municipal Corporation, is undertaken by the Bank. Collection of stamp duty is done via franking mode in the state's of Maharashtra & Gujarat. The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort, Chembur, Lower Parel, Mira Road, Thane (Talao Pali), Panvel, Ratnagiri, Pune(FC Road), Kolhapur, Nagpur, Pimpri. The Stamp Duty Franking Facility is available at following branches in Gujarat Ahmedabad (Navrangpura), Kutch (Mundra), Baroda (Gotri Road), Surat (Ring Road), Bhavnagar & Vapi (GIDC). Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by Axis Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organisation) Electronic Collection of fees on behalf of DGFT is done by the bank too Ministry of Corporate Affairs - Collection of ROC fees for the Ministry through authorised Branches and Net Banking. Collection of Property Tax through Selected Branches on behalf of Municipal Corporation of Delhi 5.3 COMPETETIORS 1. ICICI Bank Ltd. 2. HDFC Bank Ltd. 3. State Bank of India 4. HSBC Bank 5. RBS (Royal Bank of Scotland) 6. Maharashtra Bank of India 7. Canara Bank 8. Andhra Bank 9. IDBI bank 10. Bank of India 11. Punjab National Bank 12. Central Bank 13. Allahabad Bank

14. ING Vysya 15. Centurion Bank

INTRODUCTION
Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 357.71 crore with the public holding (other than promoters) at 57.49%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 671 branch offices and Extension Counters. The Bank has a network of over 2764 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

ACHIEVEMENTS
AXIS bank one of the biggest banks in private sector in India. As on the year ended March 31, 2006 the Bank had a net worth of Rs. 2872.19 Crore with the public holding (other than promoters) at 56.65%. Net Profit for the year was up 44.98% to Rs 485.08 crores. At the end of April 2008, the Bank has a very wide network of more than 671 branch offices and Extension Counters. The Bank has a network of over 2764 ATMs. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently.

MISION OF THE BANK


Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards.

VALUES
Customer Satisfaction through providing quality service effectively and efficiently Smile, it enhances your face value" is a service quality stressed on

Periodic Customer Service Audits Maximization of Stakeholder

CURRENT SITUATION OF THE BANK


Today, more than a century after those tentative first steps, AXIS BANK fairy tale is not only going strong but blazing new standards, and that minuscule initial investment has grown by leaps and bounds to crores of rupees in wealth for AXIS BANK shareholders. The companys offerings are spread across the spectrum with service. Having succeeded in garnering the trust of almost one third of Indias one billion populations and a strong management at the helm means axis will continue to dream big on its path of innovation. And millions of customer will savour the results, happily ever after.

TYPES OF DEPOSIT ACCOUNTS


While various deposit products offered by the Bank are assigned different names. The deposit products can be categorised broadly into the following types. "Demand deposits" means a deposit received by the Bank which is withdraw able on demand. "Savings deposits" means a form of demand deposit which is subject to restrictions as to the number of withdrawals as also the amounts of withdrawals permitted by the Bank during any specified period. "Term Deposit" means a deposit received by the Bank for a fixed period withdraw able only after the expiry of the fixed period and include deposits such as Recurring/Reinvestment Income Certificate/ Encash 24/Short term Deposits/ Fixed Deposits/ Monthly Income Certificate/ Quarterly Income Certificate etc. "Current Account" means a form of demand deposit wherefrom withdrawals are allowed any number of times depending upon the balance in the account or up to a particular agreed amount and will also include other deposit accounts which are neither Savings Deposit nor Term Deposit.

INFORMATION
Helping you to choose products and services, which meet your needs? Before you become a customer, AXIS will:-----Give you clear information explaining the key features of the services and products. Give you information on any type of account facility which we offer and may suit your needs. Tell you what information we need from you to prove your identity and address and to comply with legal and regulatory requirements, and request for additional information about you and your family to build a database but such information can be furnished by you only if you wish and we will not compel you to give this information for opening your account.

Axis will tell you if we offer products and services in more than one way [for example, through ATMs on the internet, over the phone, in branches and so on] and tell you how to find out more about them. Once you have chosen an account or service, we will tell you how it works. When you open a single account or a joint account, we will give you information on your rights and responsibilities. We recommend that you avail nomination facility offered on all deposit accounts, articles in safe custody and safe deposit vaults. We will guide you how we will deal with deposits and other assets held with us in the name of a deceased person in the absence of nomination.

ADVERTISING AND MARKETING


Axis will make sure that all advertising and promotional material is clear, fair, reasonable and not misleading. Axis will seek your specific consent for giving details of your name and address to any third party, including other entities in our group, for marketing purposes. Axis would like to provide you with the entire range of financial services products, some of which are our own products while some others are the products of our group/associate/entities or companies with whom we have tie-up arrangements. Axis will however tell you about our associate / group entities or companies having business tie-up arrangements with us and if you so desire, direct their staff / agents for marketing their products.

BOARD OF DIRECTORS
P. J. Nayak Chairman & Managing Director Surendra Singh Director N. C. Singhal Director T. Pannir Selvam Director J. R. Varma Director R. H. Patil Director Rama Bijapurkar Director R. B. L. Vaish Director 10 S. B. Mathur Director M. V. Subbiah Director Ramesh Ramanathan Director

CAPITAL & RESERVES


During the year 2006-07, the Bank has raised capital aggregating Rs. 1,762.81 crores through Innovative Perpetual Debt Instrument (IPDI), eligible as Tier I capital, and Tier II capital in the form of Upper Tier II and subordinated bonds (unsecured redeemable non-convertible Debentures). Of this, the Bank has raised Rs. 389.30 crores by way of subordinated bonds (unsecured redeemable non-convertible debentures) qualifying as Tier II capital, Rs. 307.50 crores by way of Upper Tier II debentures and Rs. 214 crores by way of Hybrid Tier I capital in the form of Innovative Perpetual Debt Instruments. The Bank has further raised US Dollars 150 million (equivalent to Rs. 652.05 crores) as Upper Tier II capital and US Dollars 46 million (equivalent to Rs. 199.96 crores) as Hybrid Tier I capital in the form of Innovative Perpetual Debt Instruments from Singapore under the MTN Programme. The raising of this non-equity capital has helped the Bank continue its growth strategy and has strengthened its capital adequacy ratio. As a result, the Bank is satisfactorily capitalized with the capital adequacy ratio at the end of year being 11.57% compared to 11.08% at the end of the preceding year (and as against a minimum regulatory requirement of 9% CRAR). Of this, Tier I capital constituted 6.42%, while Tier II capital amounted to 5.15%. During the year under review, 29, 40,060 equity shares were allotted to employees of the Bank pursuant to the exercise of options under the Bank's Employee Stock Option Plan. The paid up capital of the Bank as on 31 March 2007 thereby rose to Rs. 281.63 crores from Rs. 278.69 crores as on 31 March 2006 .The Bank's shares are listed on the NSE, the BSE, the Ahmedabad Stock Exchange and the OTCEI. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE). The Bonds issued by the Bank under the MTN programme are listed on the Singapore Stock Exchange. The listing fee relating to all stock exchanges for the current year has been paid. With effect from 26 March 2001, the shares of the Bank have been included and traded in the BSE the diluted Earning per Share (EPS) of the Bank for 2006-07 has risen to Rs. 22.79 from Rs. 17.08 last year. In view of the overall performance of the Bank and the objective of rewarding shareholders with cash dividends while retaining capital to maintain a healthy capital adequacy ratio to support future growth, the Board of Directors has recommended a higher dividend rate of 45% on equity shares, compared to the 35% dividend declared for the financial year 2005-06.

CORPORATE GOVERNANCE
The Bank is committed to achieving a high standard of corporate governance and it aspires to benchmark itself with international best practices. The corporate governance practices followed by the Bank are enclosed as an Annexure to this report.

STATUTORY DISCLOSURE
Considering the nature of activities of the Bank, the provisions of Section 217(1)(e) of the Companies Act, 1956 relating to conservation of energy and technology absorption do not apply to the Bank. The Bank has, however, used information technology extensively in its operations. The statement containing particulars of employees as required under Section 217(2A) of the Companies Act, 1956 and the rule made there under, is given in an Annexure appended hereto and forms part of this report. In terms of Section 219(1)

(iv) of the Act, the Report and Accounts are being sent to the shareholders excluding the aforesaid annexure. Any shareholder interested in obtaining a copy of the Annexure may write to the Company Secretary at the Registered Office of the Bank.

AUDITORS
M/s S. R. Batliboi & Co., Chartered Accountants, statutory auditors of the Bank since 2006 retire o the conclusion of the Thirteenth Annual General Meeting and are eligible for re-appointment, subject to the approval of Reserve Bank of India, and of the shareholders. As recommended by the Audit Committee, the Board has proposed the appointment of S.R. Batliboi & Co., Chartered Accountants as statutory auditors for the financial year 2007-08. The shareholders are requested to consider their appointment.

COMPANY PROFILE
Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60%. The Banks Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank

has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

The Axis Bank 5th largest bank by market capitalization in India provides payroll services to over 12000 corporates across 2.8 million salary accounts. The market capitalization of Axis Bank was 235 million in the last year 2007 is engaged in the business of Wealth management, with its international presence in Dubai, Singapore Hong Kong, Shanghai and so on.

EXECUTIVE SUMMARY
The financial year 2007-08 will be remembered as a year of transformation in the history of the Bank, when the name of the Bank changed to Axis Ban k from UTI Bank. The conviction that it was worthwhile to invest in building a brand that would solely be our own, helped to create a distict identity. The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to become a multinational bank. The Bank was successful in establishing a new identity in the market in a short span of time. The Bank once again met with considerable success over the past year and achieved all its key objectives. This encouraging performance not only underscored the sustain ability of the Bank' s high tempo of growth , but also helped to move closer to its objective of being one of the more customer focused bank s in the country. This is reflected in the robust growth in both business and revenue during 2007-08 and in various financial parameters. During 2007-08, the Bank's business and earnings continued to show high growth, indicative of a clear strategic focus, the communication of corporate priorities to branches across the country, and finally the execution of these goals through intensive efforts. The Bank reported a net pr of it of Rs .1,071.03 cores during the year ended 31st March 2008, up 62.52%, from Rs. 659.03 crores in the previous year. Diluted earnings per share (EP S) were Rs .31.31 per share, up 37.38 % from Rs. 22.79 per share a year earlier . Return on Equity (ROE) was 16.09% compared to 21.84% a year earlier. The decline in ROE was primarily on account of the raising of fresh equity capital during the financial year. Return on Average Assets was 1.24% , compared to 1.10% in the previous year.

In 2007-08, the Bank achieved a total income of Rs. 8,800.80 crores, up 60.84 % from 2006-07. During this period, operating revenue was Rs. 4,380.84 crores, up 76 .76% from the previous year, while operating profit was up by 76.12% to reach Rs. 2,225.92 crores. The strong growth in income was largely driven by a strong inc re as e in both ne t interest income by 76.07% to Rs. 2,585.35 crores, and fee and other income by 77.75% to Rs. 1,795.49 crores. The strong income growth reflects the solid business growth across al l banking segments and th e successful execution of growth initiatives . The strong growth in incomes was partly offset by an increase in operating expenses, including depreciation, by 77.42% to Rs. 2,154.92 crores. The increase in operating expenses primarily reflects the higher costs incurred as a result of increased business levels that include additional sales and service personnel and higher variable compensation. Additional expenses incurred to support the growth initiatives of the Bank (including network expansion as well as the re-branding exercise) also contributed to the increase in operating expenses. As a conscious strategy of building an organic growth engine during the year, the Bank continued to expand its distribution network , in both domestic and overseas geographies, to enlarge its reach and accelerate its business momentum. The Bank has developed a branch network which is built on customerconvenience and service, helping it particularly in the acquisition of low-cost retail deposits, retail assets, lending to agriculture, SME and midcorporates and facilitating the cross-selling of third-party products. COMPANY DESCRIPTION Axis Bank was the first new generation private sector bank to be established in India under the overall reform programme initiated by the Government of India in 1991, under which nine new banking licenses were granted. The Bank was promoted by Unit Trust of India, the largest mutual fund in India, holding 87% of the equity. Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd and its four subsidiaries who were the co-promoters held the balance 13%. The Bank started its operations in 1994. Axis Banks first capital raising post inception was in 1998 through a public offering of primary shares and in subsequent years through equity allotment to a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur Vysya Bank and Chrys Capital leading to a dilution in UTIs shareholding in the Bank. Further dilution of Promotors shareholding happened during Q4 ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a GDR issue. The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence. The present shareholding pattern is as mentioned below: (As on 30/06/2008) Administrator of the Specified Undertaking of the UTI 27.72% LIC 10.49% GIIC and four PSU Insurance Companies 5.50% Non-Promoters Holding 42.32% Others 13.97% Profile

Axis Bank is one of the fastest growing banks in the country and has an extremely competitive and profitable banking franchise evidenced by: Comprehensive portfolio of banking services including Corporate Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking. The Position as on 31st March 2008 was as under: - Balance Sheet Size Rs 1,095,778,487 (Rs. in Thousands) - Total Deposits Rs 876,262,206 (Rs. in Thousands) - Net Advances Rs 596,611,446 (Rs. in Thousands) - Investments Rs 337,051,008 (Rs. in Thousands) - Network of Branches 701 and Extention Counters - Number of cities and 190 towns covered by network - Number of ATMs 2854 - Net NPA 0.42 % - Capital Adequacy Ratio 13.73 % Axis Bank has in place a sound technological platform Sound technological platform with centralized database and operations enabling 24*7*365 Anywhere Banking, in order to render the best customer service to its 5.5 million customer base. Our Mission and Values Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. Customer Satisfaction through Providing quality service effectively and efficiently "Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits Maximization of Stakeholder value Success through Teamwork, Integrity and People

BOARD OF DIRECTORS P. J. Nayak Chairman & Chief Executive Officer Surendra Singh Director N. C. Singhal Director A. T. Pannir Selvam Director J. R. Varma Director R. H. Patil Director Rama Bijapurkar Director R. B. L. Vaish Director M. V. Subbiah Director Ramesh Ramanathan Director K. N. Prithviraj Director P. J. Oza Company Secretary THE CORE MANAGEMENT TEAM R. Asok Kumar Executive Director - Corporate Strategy M. M. Agrawal Executive Director - Corporate Banking V. K. Ramani Executive Director - Technology & Business Processes S. K. Chakrabarti President - Credit Hemant Kaul President - Retail Banking Somnath Sengupta President - Finance & Accounts S. S. Bajaj President & Chief Compliance Officer Snehomoy Bhattacharya President - Human Resources P. Mukherjee President - Treasury

Vinod George President International Banking M. V. Subramanian CEO and Executive Trustee, Axis Bank Foundation Rajagopal Srivatsa President - Business Banking S. K. Nandi President - West Zone R. K. Bammi President - North Zone S. K. Mitra President - East Zone C. P. Rangarajan President - South Zone M/s. S. R. Batliboi & Co. Auditors

Chartered Accountants M/s. Karvy Computershare Private Limited Registrar and Share Transfer Agent UNIT : AXIS BANK LIMITED Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad - 500 081 Tel. No.: 040-23420815 to 23420824 Fax No. : 040-23420814 Registered Office : 'Trishul', 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad - 380 006. Tel. No.: 079-2640 9322 Fax No: 079-2640 9321 Email : p.oza@axisbank.com/rajendra.swaminarayan@axisbank.com Web site: www.axisbank.com Central Office : Maker Towers 'F', 13th Floor, Cuffe Parade, Colaba, Mumbai - 005. Tel. No.: 022-67074407 Fax No.: 022-2218 6944/2218 1429 Head of the Department: Shri Hemant Kaul - President

RETAIL BANKING The Bank continued with its thrust on customer segmentation in the retail liabilities business to spearhead growth during the financial year 2007-08. Savings Bank deposits grew to Rs. 19,982 crores on 31st March 2008 from Rs. 12,126 crores as on 31st March 2007 showing a year on year growth of 65%. The Priority-Banking offering of the Bank has led the growth in the Savings Bank deposits. Other savings products, especially those for senior citizens, for women and for NRIs have contributed strongly to the overall growth of the savings bank deposits. Savings Bank Product Growth in SavingsBank Balances Growth in number of Accounts Priority Banking (High Networth) 100% 108% Savings Accounts for Trusts 133% 39% Savings Accounts for NRI 262% 80% Senior Privilege (Affluent Senior Citizens) 29% 46% Smart Privilege (Savings Accounts for Women) 73% 50% Salary Power (Pay Roll Account) 38% 28% Easy Access (Base Savings Bank Account) 49% 26% The Bank has implemented a Customer Relationship Management (CRM) solution which is being integrated with various other application systems of the Bank including Finacle, the core banking software solution, and software platforms for Demat, Mutual Funds, Mobile Banking, Tele banking, and Credit Cards, to provide a single and comprehensive view of the customer across product categories and channels. CRM capabilities will enable the Bank to improve its cross-sell penetration among its customer base.

The Bank has over time built an efficient in-house sales model, which has strongly contributed to the overall account acquisition of the Bank. The effectiveness of the Sales Channel has been a major factor in the growth of CASA (current account and savings account) deposits by the Bank. The Retail Term Deposits of the Bank grew by 61% from Rs. 7,094 crores on 31 March 2007 to Rs. 11,449 crores on 31st March 2008. Over the years, the alternative banking channels of the Bank, which comprise the ATM network, internet banking, mobile banking and phone banking, have grown robustly, providing higher levels of convenience and service quality to the Bank's customers. During the financial year 2007-08, the Bank has added 423 ATMs to reach st 2,764 ATMs as of 31 March 2008. The Bank today has 4.25 ATMs for every Branch. The mobile banking channel has fast emerged as an extremely convenient option for the Bank's customers to keep themselves updated on the activity in their accounts. During 200708, 36% of new customers signed on for mobile banking services. With 1.59 million customers registered for mobile banking, the Bank has the highest mobile penetration levels among bank customers in India. Internet banking usage also rose sharply: the registered user base rose from 3.35 st million on 31 March 2007 to 5.17 million on 31st March 2008, a growth of 54%. The Bank has a Phone Banking Center providing account information and assistance in 11 languages. The Retail Assets portfolio of the Bank grew from Rs. 8,928 crores on 31 March 2007 to Rs. 13,592 crores on 31st March 2008, a growth of 52%. The segment constitutes 23% of the Bank's total loan portfolio on 31 March 2008 of which 79.83% is secured and 20.17% comprises unsecured loans. Retail loans are extended by the Bank through 70 Retail Asset Centres (RACs) in select cities of the country, as also Through the Bank's branches in other cities and towns. The Bank's strategy of focusing on the prime customer segments and staying away from small ticket loans, and the deployment of robust credit and back-office processes, has contributed to the continued health of the retail asset portfolio. The Cards business of the Bank comprises four key products - credit cards, debit cards, prepaid cards and the merchant acquiring business. The Bank's credit card business, which was launched in August 2006, now has a portfolio of 4,52,005 credit cards. In March 2008, the Bank launched India's first EMV (Europay MasterCard Visa Standards) certified platinum chip card. The point-of-sale (POS) terminals installed by the Bank at merchant establishments are capable of accepting all debit/credit MasterCard/ Visa cards and American Express cards. The Bank has an installed st base of 74,458 POS terminals as on 31st March 2008 (the second-largest network in India), registering a growth of 86% over the installed base of 40,058 terminals on 31st March 2007. The transaction throughput at the POS terminals grew from Rs. 2,975 crores in 2006-07 to Rs. 7,713 crores in 2007-08, a year-onst year growth of 159%. All POS terminals are compliant with the EMV security norms. The total debit card base of the Bank as on 31st March 2008 stood at 8.67 million, the third largest in the country. Having started initially with a vanilla debit card product, the Bank now offers as many as 10 variants, customised for specific customer segments. The Bank is a market leader in the Foreign Currency Travel Card Segment, and has generated a sales volume of USD 285.33 million in 2007-08 on such cards. The Retail Banking business of the Bank is divided into following sub-units: Retail Liabilities Retail Assets Cards Wealth Management Corporate Communications and Market Research Alternate Channels The focus of the Retail Banking Department is to : 1. Increase share of Retail Deposits 2. Increase share of Retail Assets 3. Increase Fee Based Income In order to achieve the above mentioned, the following strategies are used: 1. Introduce New Products based on Customer Need and to address targeted segments. 2. A strong Sales Focus. 3. An extensive network and effective utilization of the banking channels.
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RETAIL LIABILITES An overview of the products The Bank has launched customized savings account products for various categories of customers Senior Citizens, Students & Trusts/NGOs besides a very competitive offering in the Salary Accounts category. SEGMENTATION OF THE SAVING BANK A Product Manger is in-charge of one or more of these segments. Easy Access Savings Account Banking made easy The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. EasyAccess Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. -Interest paid on a quarterly basis @ 3.5 % per annum. -International Debit Card. -Tele-banking -iConnect Internet Banking -Multi-city At Par cheque book for all Savings Account holders -Free Anywhere Banking facility -Auto sweep facility for excess balances into high interest earning term deposits -Quarterly statement of account. -Access to account information over iConnect, Tele-banking and ATMs You can avail of all these services with a minimum quarterly average balance of Rs10,000 in metro or urban centers, and Rs 5000 in semi urban centers. Senior Privilege Because life begins at sixty Eligibility: Savings Bank customers with 60 years of age or above as on the date of account opening. Dedicated Relationship Managers Free At-Par Cheque book Free International VISA Debit Cards for primary and joint account holders Free Monthly Statement of Accounts and Free Passbook Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank branches Free Inward Remittances Free Outward Remittances once a year Faster credits to foreign cheques providing you prompt availability of funds remitted by your near and dear ones abroad Cheque pickup and Cash delivery services Anywhere Banking Telebanking Free Mobile Banking iConnect Customised Loan Offerings Complimentary Financial Planning Silver Health - Medical Insurance for Senior Citizens AQB Criteria: Rs. 10,000 Smart Privilege Account (For the woman of today) In today's busy world it's tough being a working woman. Right from shuttling between a job and family to taking care of her finances she has to be on her heels all the time. Keeping this ideal in mind, we at Axis Bank have designed a savings account best suited for the woman of today. Now with the Smart Privilege Account you can manage your money, your life and enjoy a host of lifestyle privileges as well. What's interesting is that the Smart Privilege Account ensures that you have enough time for all those important things in life. Jewellery Insurance on Debit Card

-Dedicated Relationship Manager : A Dedicated Relationship Manager will be your one point contact at the branch for all your banking transactions thus ensuring that you would neither have to move from one counter to the other nor stand in queues to await your turn. -Zero Balance Minor Account -Round-the-Clock access through ATMs : There could be a time in your life when at 3 am you could require cash. With our round-the-clock access you can withdraw cash up to Rs. 40,000 per day, deposit cash/cheques, transfer funds, print a mini statement and pay insurance premiums (LIC), all this through one of the largest ATM networks in the country. -Anywhere Banking : Imagine being in some other city and still have complete access to all your transaction needs. You are a customer of the bank rather than limited to being a customer of the branch. So even if you are travelling, you can access your account easily from any of the 600 Axis Bank offices spread over 350 cities across the country. -At-par cheque facility : Your cheque will be treated as a local cheque within the vast Axis Bank network of 600 offices across 350 cities in India. It frees you from the hassles of getting a Demand Draft issued. -Monthly Account Statement -Additional discounts on loans - iConnect TM : The Complete online banking experience: Its the age of Wi-Fi. All your banking needs should be on your fingertips, with our i-connect you can check your account status, transfer funds, place online request for a new cheque book and many more features without even having to visit an Axis Bank branch. -Financial Advisory Services : Our Financial Advisor will assist you with your financial planning and help you to earn maximum returns on your savings. - Discount on Retail Purchases : Just live the feeling of walking into a store and getting amazing discounts not available to others. As you are a valued customer for us, we shall Endeavour to provide you with discounts at various outlets, periodically. All you have to do is use your new Smart Privilege Debit Card and avail of discounts at these outlets. Details of such tie-ups will be sent to you on a regular basis. Documentation required to open a Smart privilege account with UTI Bank, you just need to provide: 1.Passport size colour photographs (latest) 2. Introduction related documents --Introduction by an existing UTI Bank customer, whose account is at least 6 months old with a suitable proof of address OR A letter from the manager of your existing bank, verifying identity and signature OR Copy of passport along with a self- signed cheque OR Please provide one from each GROUP ---Group I Voter ID Card* or Defence /Police/Govt. Dept. ID Card or Pan Card or Driving Licence or Photo Credit Card (* Along with self-signed cheque) Group II Latest copy of Electricity Bill / Telephone Bill / Bank A/c statement / Credit Card Statement / Insurance Premium Receipt / Letter from Employer certifying address / NSC giving current address / Existing House Lease Agreement 3. The duly filled account opening form along with the relevant documents can be submitted at the branch. 4. AQB Criteria: Maintenance of an Average Quarterly balance of Rs. 10,000/- at Metro/Urban Branches and Rs. 5000/- at Semi-Urban Branches. Trust/NGO Savings Account : Thoughtful banking for people who spend their lives thinking of others Need special banking for special causes? Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organisations can devote all of their time to their noble motivations. A Savings Account for your Trust with a concessional Average Quarterly Balance A multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever we are present.

Free Anywhere Banking across all our Branches and Extension Counters and over all our ATMs. Free Demand Drafts or Pay Orders as and when required by you to remit funds. Free collection of cheques at outstation locations. Monthly Statement of Account delivered at your doorstep. Facility for collecting donations in your account through our network of Branches and Extension Counters across the country, as well as through iConnect - our Internet Banking facility. Monthly statement of account Free Internet Banking facility Free Demat account Assistance for Foreign Contribution (Regulation) Act accounts for receiving donations from abroad. Free collection of cheques Doorstep banking services Zero Balance Savings Account Save at Zero Saving Money is now easier Presenting, Axis Bank's Zero Balance Savings Account. At Axis Bank it has been our constant endeavor to create products specifically catering to your needs. The account while offering you a whole range of services also addresses your latent need of having an account without the hassle of maintaining an average quarterly balance. Features No Average Quarterly Balance requirement Free International Debit Card with an Accidental Insurance cover up to Rs 2 lakhs* (charges for the primary holder are waived) Free mobile banking facility Access though more than 675 branches and more than 2800 ATMs At-Par cheque facility with the clearing limit of Rs 50,000 24x7 Telebanking & Internet banking Free quarterly statements * Conditions Apply 1. Initial funding of Rs. 5,500. 2. Account maintenance fee of Rs. 500 per annum Zero Balance Savings Account: Documentation : An Account Opening Form duly filled One latest passport size photograph Initial cheque of Rs 5,500 Photo identity proof like PAN card, Passport, Driving License or Voters card Proof of residence like recent utility bill or bank account/credit card statement, andAny two of the following documents: Latest Post paid mobile bill with a minimum bill payment of Rs. 1,000 Minimum Net Salary Rs. 20,000 or other bank account statement with minimum day end balance of Rs 25,000 Frequent Flyer Card or Customer Loyalty Card (any of the renowned retail chain) Proof of owning a Gold/Platinum Credit Card Proof of owning a house or a four-wheeler Salary Power The complete financial solution Seeking a convenient way to pay your employees? Salary Savings Account from Axis Bank will do the job for you. We know how important employee satisfaction is for an organisation to grow to its full potential. Which is why we have tailored our Salary Savings Account not only to be a convenient way for you to manage salaries (across various centres, through our centralised database), but also provide your employees with a range of value added benefits. Salary Savings Account comes with a host of facilities that give your employees access to the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) on a preferential basis. Making it the perfect incentive for your employees. Salary Power: Features 1. Balance Requirement No minimum balance 2. Anywhere Banking Available across the country

3. Cheque books Multi-city at-par Cheque Book 4. International Debit cum ATM Card Personal Accident Insurance cover of upto Rs 2 lacs per cardholder [To keep your personal accident insurance cover activated, you should have made a purchase transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident.]* Cash withdrawal of upto Rs 25,000 daily Purchase protection and Zero Card Liability Accepted at more than 1 million ATMs and more than 26 million Point of Sale terminals worldwide 5. Computerised Statements Free on a quarterly basis Free monthly statements on email (Customer has to register for Internet Banking) 6. Joint Account Facility Available 7. Flexi (2-in-1) Encash Deposits* Available subject to terms and conditions 8. Demand Drafts Free Demand Drafts drawn on Axis BankBranches 9.Overdraft Facility Upto 50% of net salary at Personal Loan rates* 10. Outstation Cheques Free collection, only out-of-pocket expenses to be recovered 11. Demat Account Available 12. Financial Advisory Services Available 13. Power Loans* Power Homes - Housing Loans Personal Power - Personal Loans Study Power - Educational Loans Consumer Power - Consumer Loans Power Drive - Vehicle Loans 14. Optional Gold Debit Card Access to any Bank ATM 15. Credit Cards Available 16. Online Trading Available 17. Built-In Insurance (Medical and Burglary) scheme Unique facility of availing Insurance option in built in the account available 18. Built-in SIP scheme Unique facility of availing SIP option in built in the account available 20. Internet Banking Available as iConnect with enhanced features like free bill payments (eg, electricity bills) and electronic payment of premiums (LIC - Insurance Premium) at select centres. Online shopping and E-Brokering 21. Telebanking Free (available for 24 hours at select centers) 22. Mobile Banking Available 23. Nomination Facility Available 24. Funds Transfer Transfer funds from your Salary Power account to any bank account in India free of charge. 25. Meal Card The best substitute for the traditional Sodexo/Accor Meal coupons/vouchers. 26. Gift Card Prepaid, Rupee Denominated, Non Reloadable card - Ideal for Gifting. Note: Salary Power is a special account offered to customers with regular direct salary credits coming into this account. In case, the monthly salary is not credited into the account for more than 3 consecutive months, the special features offered under Salary Power account shall stand withdrawn and the account shall be treated as Normal Savings Account under our standard charge structure and all charges shall be levied and applied as applicable to normal savings accounts. * Conditions Apply Power Salute Salute to the defence forces Are you looking for an account that fits with your life in the Defence Forces? Defence Salary Account from Axis Bank is a product designed keeping in mind how tough a life in the Defence Forces is. Not only does it come to you absolutely free, no minimum balance is required either. You can also access the entire Axis Bank network, including more than 2300 ATMs and 550 branch offices (and growing) no matter where you are posted. With the complete gamut of banking services (including overdrafts, loans and zero balance requirements) you can now rest assured about your family and all their financial needs. It's our way of showing our appreciation to your work. Banking Privileges:

At-par Cheque Facility Your job involves constant transfers across the country. With the at-par cheque facility it will no longer be necessary to set up new bank accounts with each transfer. Additional Debit Card Along with a free International Debit Card, you also get a free card for the joint account holder. This means that your child or spouse also enjoy the same benefits of banking with Axis Bank. Financial Advisory Services Our solutions answer to the twin goals of meeting your requirements and to diversify and spread the risk of your investment portfolio, so you can look forward to a comfortable and worry-free life. We first understand your exact investment needs and then design the perfect investment plan for you. Your investment plan could include investments in: Mutual Funds - Debt and Equity Bonds Axis Bank Fixed Deposits Power Salute: Product Features SAME AS SALARY POWER (SBSAL) Power Salute : Eligibility Personnel from the following forces are eligible for this account. Retired personnel can also avail of the mentioned benefits as long as the account has been opened when in active service. Personnel of Army, Navy, Air Force and the Coast Guard Paramilitary Services (BSF, CRPF, NSG, NCC, Territorial Army) Retired and Short Service Commission officers would also be eligible - provided the accounts are opened while they are in active service. Civilians posted at Defence establishments like training schools, canteens, etc. on a permanent basis Azaadi - No Frills Account Basic banking with zero balance Do you seek freedom from the necessity of a minimum balance? Presenting, Axis Bank's Azaadi Account. A savings account that doesn't require a minimum balance. Experience a host of unparalleled features and heightened convenience with Azaadi Account. You qualify for Azaadi if --The sum total of all credits to your account does not exceed Rs 1 lac during the Financial year, You do not intend to maintain an account balance higher than Rs 50,000 at any given instant, and You are unable to furnish full documentation as required ordinarily for fulfilling of account opening norms Product Features Zero Balance Savings Account: No need to maintain a fixed, mandatory amount in your account. Instant Welcome Kit: Handed over to you at the time of account opening, the kit will consist of your account number, debit card, debit card PIN, internet banking PIN and phone banking PIN numbers. International Debit Card: Which gives you access to over 1,800 ATMs across the country, enabling you to make deposits or withdraw cash at any time of the day or night. Phone Banking and Internet Banking: You can conveniently check your balance, transaction details etc. anytime from anywhere over telephone or using the Internet, for no extra charge. * Conditions Apply Special Scheme for Savings Bank Account: Savings account for students: Eligibility: Age of the student should be between 12 years and 25 years. For medical students the upper age limit could be 30 years. The student must possess valid identification of an institution. Features: - Minimum average quarterly balance (AQB) of Rs. 500. - Free International Debit Card. - Quarterly statement of account. - Tele-banking - iConnect Internet Banking Savings account for Demat customers: Eligibility: Demat account customers of the Bank. Features: - Minimum average quarterly balance (AQB) of Rs. 1000. - Free International Debit Card. - Quarterly statement of account.

- Tele-banking - iConnect Internet Banking Priority Banking Resident In a segmentation study undertaken in 2002, it was found that 2.72 % of our retail customers contribute to nearly 49.05% of our total retail deposits. The clients that bring a larger share of business to the Bank expect a differentiated standard of service. This also makes business sense, as more often than not, most of the business in a particular branch flows from a handful of clients. Hence, Priority Banking, was launched in order to cater to the needs of the high net worth customers within the bank. The product has at its core, the idea of providing a certain bit of differentiation in service and treatment to a segment of its customers with a view towards customer retention, acquisition and cross-selling. The nucleus of these services has essentially four important components personalized service, Investment advisory services, preferential pricing of banking products/ services and lifestyle privileges Most of Banks, private as well as foreign, offer a specialized banking service to their elite customers. The definition of the value of relationship and services offered differs across banks. In general, MNC banks define the HNI segment taking into account the customers liability as well as, asset relationship with the bank (Between 20-30 lakhs and above) whereas the Indian private banks only take in the savings bank balances and term deposits (Between 5-10 lakhs and above). Banking Privileges Priority Banking Lounge: As a Priority banking customer you will have access to an exclusive 'Priority Banking Lounge' at branches. This will allow you to conduct your financial transactions in utmost comfort and confidentiality through an exclusive Relationship Manager. Dedicated Relationship Manager: You will enjoy access to a dedicated Relationship Manager who will be your one point contact at branch for all your banking transactions thus ensuring that you would neither have to move from one counter to the other nor stand in queues to await your turn. Home Banking: Experience the convenience of our home banking facilities. Avail of free cash and cheque pick-up and delivery at your office or residence. Exclusive Priority Banking International Debit card: This card allows you free access to all VISA ATMs in India. The card also comes with higher ATM withdrawal limits, higher POS transaction limits at merchant establishments, enhanced insurance cover and a host of special discounts and offers. You also get Preferential Interest Rates and lowered Processing Fees on select Retail Loans. Other Banking Privileges: Enjoy a host of banking privileges like free at-par cheques, demand drafts and pay orders, free passbook updates and monthly statements. You would also be entitled to two free minor accounts, one free outward remittance per quarter and free Mobile banking. As a Priority Banking customer, there would be no issuance charges on Axis Bank's Travel Currency Card. Investment Privileges Avail of assistance in financial planning. Investment advice, market information reports, and invitations to investor meets are offered complimentary to you. Lifestyle Privileges However, it's not all about just financial services. We aim to provide a different Lifestyle experience through Lifestyle privileges like exclusive invitations to movie screenings, plays, music concerts and other special events sponsored by Axis Bank, especially for our Priority Banking Customers. Complimentary Gold Credit Card Complimentary Gold Standard Credit Card and Gold Standard Secured Credit Card to the Priority Banking customers. 50% off on the Issuance Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card to the Priority Banking Customers. The Priority banking Customer shall be charged Rs. 500 as annual maintenance charge. Eligibility Criteria

You can sign up for Priority Banking service by agreeing to any one of the following criteria Average quarterly balance (AQB) of Rs. 1 Lakh in your savings account ( this requirement is Rs. 75,000 if in case you have a salary account with Axis Bank) Average quarterly balance of Rs. 5 Lakhs in combination of your savings and term deposits (Minimum AQB of Rs. 25,000 in the savings account) Minimum average quarterly relationship of Rs. 10 Lakhs across members of the same family. Minimum average quarterly relationship of Rs. 5 Lakhs in Encash 24 (Flexi Deposits) account. Conditions Apply All loans and credit facilities are at the sole discretion of the Bank. Other/Correspondent Bank commission and fees will be charged wherever applicable. Axis Bank does not guarantee returns on any of the investments. Standard terms & conditions and RBI rules apply. Priority Banking is offered in select Branches/Cities only. Non-Resident (External) NRE Savings Account Any person resident outside India may open NRE account. This account permits a NRI to hold and maintain foreign currency earnings in Indian rupees. The principal and interest earned on these balances are freely repatriable. Whether you are a student, a professional, a salaried employee or an entrepreneur, this account will meet all your banking needs Nomination Facility Nomination can be in favour of resident or non-resident Repatriation of funds by nominee Remittance abroad by Non-Resident Nominee: Banks may allow remittance of funds abroad, or funds may be credited to NRE or FCNR deposits. Remittances abroad by Resident Nominee: Funds are to be credited to the ordinary SB account. If the nominee wants to remit funds outside India for meeting the liabilities of the deceased, should obtain permission from RBI. Features Low minimum balance requirement of Rs 5,000 'Multicity' cheque book which will permit you to make payment via cheque across multiple locations Mandate or Power of Attorney facility available so that in your absence from the country you can authorize your relative or friend to operate conduct banking transactions on your behalf Free iConnect: 24 X 7 account access through secure Internet banking facility from anywhere and anytime Online shopping mall and utility bill payment facility by using our internet based iConnect banking login Free personal accident cover of Indian Rupees 2,00,000 on our Debit Card (The insurance cover will come in force only after you make your first successful payment transaction at any merchant establishment.)* Tax Advisory Services from our empanelled consultants Assistance to obtain Income Tax PAN Cards to make you compliant with the tax regulations of your native land *Conditions Apply Documentation In order to open an account customer will have to submit the following documents. NRI or PIO Account For NRI (Non Resident Indian) Photocopy of your current passport where your identity details, passport details, date and place of birth and signature appear Photocopy of valid work permit or employment visa For PIO (Person of Indian Origin)

Photocopy of your current passport where your identity details, passport details, date and place of birth and signature appear Photocopy of PIO Card or self-declaration for PIO All the above photocopies should be attested in case you are downloading the account opening form and sending it to India. Attestation can be done by your banker abroad or the Indian Embassy or notary or equivalent authority as per the applicable law. The address proof must match with the communication address selected by you on this Relationship Form. Any One Of The Following Address Proofs Utility Bill Driving License Residence Permit (Govt. Issued Identity Card) Credit Card Bills Rent Receipt Overseas or Indian Bank Statement NRI Salary Account Copy of passport where your identity details, passport details, date and place of birth and signature appear Photocopy of valid work permit or employment visa Employment Letter Letter from the employer confirming direct credit of salary to theaccount Mariners International Account Copy of Passport along with copy of valid Visa CDC (Continuous Discharge Certificate) Copy of duly accepted work contract Declaration Letter Who cannot open an NRI Account? The following cannot open a NRI account Residents who travel overseas for health and medical check up, or For any tour abroad for their short visit whether on excursion or business promotion, or Residing in Bangladesh or Pakistan without prior approval of RBI, or Residing in Nepal and Bhutan, or Seafarers employed by Indian shipping companies Wealth Management The Focus of the Wealth Management group is to increase fee income earned by the bank through cross sales of third Party Products. The Wealth Management Unit is further divided into two distinct parts the Financial Advisory Services and the Wealth Advisory Services. A dedicated research cell supports both these sub units. Financial Advisory Services These Services are pegged at the mass affluent customers at the retail end of the market. The bank offers Mutual Funds, Bonds and General Insurance Advise under these Services. The bank is an AMFI registered Distributor and has tie-ups with all major Mutual Fund Houses for distribution of their products. The Bank has tied up with Bajaj Allianz for distribution of its non life insurance products as a part of the Bancassurance model A separate sales channel of Investment Advisors and the Banc assurance Advisors drives the sales at the branch level. These advisors are specialists in their respective fields and are AMFI or IRDA certified. The services of the Financial Advisory group are mainly targeted at Priority Banking customers and also at Corporates and Trusts Online trading is also being launched shortly to facilitate equity investments for the retail customers. Wealth Advisory Services - MOHUR This service focuses on the Seriously Rich segment and caters to all the banking and investment needs of a customer. Along with Mutual fund and Bond investments, Mohur also offers investments in equity through Non Discretionary Portfolio Management services. Mohur aims at providing a onepoint contact for all banking and investment services of its customers. The sales are driven through a channel of Wealth Managers and Service Managers working together to deliver a seamless service to the client. Based on the research recommendations of the research team the wealth managers manage 16 the portfolios of their clients. The day-to-day transactions are taken care of by the service manager.

Besides investments the Wealth Manager is also responsible for cross selling other products of the bank i.e. loans, cards etc. Alternate Channels: The alternate channels of the bank are the following: - ATM Channel - Internet Banking Channel - Tele-banking Channel - Mobile Banking Channel - Call-Center ATM Channel: The bank has 1861 ATMs as on 31.03.2006. This includes all our onsite and off-site ATMs. All our ATMs are connected to our Base24 ATM switch, which in turn interacts with our centralized core banking software for transaction processing. The Bank through its ATMs offers the following services: Banking Services - Cash Withdrawal, with real time debit to customer's account - Cash & Cheque Deposit - Balance Inquiry - PIN Change - Mini Statement Other Services - Mobile Airtime Refill for Hutch, Airtel Idea, BPL, Cellular, RIM, Tata Tele - Facility for Non UTI bank VISA card holders to refill their Prepaid phones. - Life Insurance Corporation Premium Payment - Bill Payment e.g.: BSNL, MTNL - Funds Transfer (within own accounts) -Online Donations to Trusts & NGOs. - Purchase and redemption of UTI Mutual Fund Schemes through the ATM. Shared Resource We have been pioneers in developing shared networks in the country Apart from acquiring ATM Transactions through VISA/MasterCard; we have ATM Sharing Arrangements (Bilateral and Multilateral) with the following partners: Bilateral ATM sharing arrangement 1. State Bank of India 2. ABN Amro Bank 3. Bank of Rajasthan 4. Karur Vysya Bank 5. Andhra Bank Multilateral 1. Cashnet (A shared network run by Euronet India Pvt. Ltd.) 2. BANCS (Formerly known as Swadhan. Now run by E Funds Ltd.) Strategic Tie-ups We have also tied up with Western Railways (Mumbai), Central Railways (Mumbai), Pantaloons, HPCL, and BPCL for setting up ATMs at their locations. Almost all costs related to setting up and maintenance of an ATM network are fixed. Thus, the challenge for the Bank has been to migrate customers to this channel and develop new streams of revenues from this channel, in order to make the channel viable. The Bank has achieved tremendous success in this regard. We have been able to migrate about 90% of all cash disbursement transactions to our ATMs. To generate direct revenue from the ATM Channel, the bank has adopted 2 strategies: - ATM Sharing with other banks - New functionalities such as mobile airtime refill, bill payment & mutual fund sales through which our bank earns a commission The bank has also set up ATM galleries at 3 locations. Each of the Gallery has 2 ATMs for the convenience of the customers, information kiosk, a card operated touch-screen internet kiosk, though which the customers can access their IConnect accounts with bank and perform their banking transactions such as funds transfer, bill payment, balance inquiry, etc. A bill payment kiosk has also been set up at this gallery. The ATM Channel for the bank has been a major customer acquisition tool.

Increasingly the channel is being seen as a customer-servicing tool and all the new value added services are part of that initiative. Internet Banking Channel Since April 2000, the Internet Banking channel has grown fast to complement the branch and ATM network. As of March 2006, there are around 20 lac users of Internet Banking, which amounts to more than 50% of our retail banking savings account customers. Apart from routine functional like balance and transactions lookup, we also provide a number of valueadded services on the Internet banking platform. A brief description of each product is given below: Funds Transfers Currently, we offer three types of funds transfers: To the customers own Axis Bank account (linked to same customer id). To any Axisbank account Power Transfer: To any account in any other bank in India. This service is available for transfers to any branch of any bank provided the branch is in the 15 RBI centers in the country. All the above services are free to our savings bank customers. Porwer Transfer, however, is charged at Rs.17 per transaction for customers other than savings account customers. Bill Payment The bill payment services on the Internet can be classified into three categories: Presentment or EBPP (Electronic Bill Presentment and Payment). Under this type of bill payment, the customer needs to register for each bill. Once registered, the biller will send an electronic version of the bill for acceptance and payment. Direct Payment: Under this type of bill payment, no bill presentment happens. The customer is free to select the biller and pay accordingly to his convenience. Payee: This a variation of direct payment method with the customer creating his own biller. For example, payment of rent to landlord. The landlords account details would typically be entered and payment made on a recurring basis. Shopping A customer with Internet banking access can buy from merchants registered with us and pay through the direct debit facility on our website. Other Services Apart from the above, the customer can give requests for stop payments and cheque books. Mobile Banking Channel Mobile banking was launched by the Bank in October 2004. Within the last one and a half year, the customer base has grown to over five lac subscribers as of April 2006. We offer the following two type services in mobile banking: Automatic Alerts A subscriber is alerted through SMS on the activities in his account with automatic alerts for every debit or credit in his account of more than Rs. 5,000. Also, if the customer is registered for bill payments, he receives an alert as soon as a bill is presented by the biller for payment. Benefits - Safety: Be alerted on any transaction above Rs.5,000 in your account so that action can be initiated promptly in case of any misuse of the account. - Convenience: Know the status of the account from wherever you are. Service Availability Currently the service is available for the following customers: SBEZY: Easy Savings Account SBSAL: Salary Power Account SBDMT: Demat Account SBSMT: Smart Privilege Account SBSTU: Students Account SBWDN: Withdrawal Account SBSPA: Senior Privilege Account SBPBG: Priority Account (Including flagged off priority customers) Charges The service is chargeable at Rs.100 plus taxes (total Rs.112.24) for all customers other than Senior Privilege accountholders, Priority accountholders and staff.

Registration Process The customer can register from the following channels: Account Opening Form Branch (through a written request or form) iConnect ATM Update Mobile Number The customer can update his mobile number through the following channels: Branch (through a written request or form) iConnect ATM De-register The customer can de-register through the following channels: Branch (through a written request or form) iConnect SMS (by sending SUSPSMS to the mobile banking number) Credit Cards Debit Cards Cards Division : The Cards Division in Retail Banking Department is responsible for both the Cards issuance Business as well as Merchant Acquiring Services. On the Issuance side, the Bank has two very strong products viz the International Debit cum ATM Card & the International Travel Currency Card. In FY 05-06, new initiatives from the Cards Division have been the Visa Gold Debit Card, Rewards Card and the Travel Currency Card in several new currencies. DEBIT CARD: A Debit Card provides on-line direct electronic payment from a Bank Account for payments at Merchant Establishments (shops, restaurants, petrol pumps etc.), and access to ATMs for cash withdrawals and inquiries. It can be used both as an ATM Card and as a method of payment (instead of cash / cheques) when purchasing goods and services. The difference between a Debit Card and a Credit Card is the difference between "debit" and "credit." Debit means "subtract." When you use a debit card, you are subtracting your money from your own bank account. Debit cards allow the customer to spend only what is in the customers bank account. It is a quick transaction between the merchant and the customers personal bank account. Credit is money made available to the customer by a bank or other financial institution, like a loan. The amount the issuer allows the customer to use is determined by the customers credit history, income, debts, and ability to pay. The customer may use the credit with the understanding that he will repay the amount, plus interest if the customer does not pay in full each month. The customer will receive a monthly statement detailing the charges and payment requirements. THE AXIS BANK DEBIT CARD The Axis Bank International Debit Card is a VISA Electron/Visa Flag/ MasterCard Unembossed card and is accepted globally at all VISA / MasterCard ATMs and Merchant Establishments accepting Visa/MasterCard cards. The Bank has issued more than 44,00,000 Debit Cards. The Bank issues between 100000-120000 debit cards to its customers consistently every month. Features: Insurance: The UTI Bank International Debit Card comes with the following insurance features. Lost Card Liability: AXIS Bank Debit Cardholder is insured for risk of loss due to fraudulent use of a lost/ stolen / missing Debit Card. All he needs to do is communicate the loss of your Card by calling our 24-Hour Customer Service Number or Branch (during working hours). Purchase Protection : All consumer durable goods purchased using the Debit Card are insured against fire, natural calamity, burglary and house breaking upto 90 days from the date of purchase. There is a combined limit of Rs. 50,000/- per card for Zero Lost Card Liability and Purchase Protection. This limit is Rs. 175,000/- for Gold Debit Card. Personal Accident Cover: In the unfortunate event of loss of life in a accidental mishap, the customers beneficiaries will receive the benefit of accident insurance of up to Rs. 2 Lakhs (Rs. 5

Lakhs in case of Gold Debit Card). The Personal Accident Cover comes into force as soon as the Debit Card is used for a payment transaction at any Merchant Outlet. The personal accident insurance covers the debit cardholder and compensates the nominee in the event of accident leading to death. Sum Insured Rs. 200,000/ Rs. 500,000 per cardholder (a cap of same amount in the event of multiple cards / multiple accounts per person). The claim settlement procedure and all the forms/ documentation required at the time of claim submission are available with all our branches. The customer may also contact 022-55987700 the Debit Card help line directly. 22. 24-Hour Customer Service: 91-22-55987700 for around the clock assistance for AXIS Bank Debit cardholders. The Charges relating to the Debit Card are as under. PARTICULARS CHARGES Issuance Charges Rs. 95/- per Card Annual Fee Rs. 100/- per Card Card Replacement Charges Rs. 95/- per Card Duplicate PIN Rs. 50/- per Card Transactional Charges A) UTI Bank ATMs No Charges B) VISA/ MasterCard ATMs In INDIA I) Cash Withdrawal II) Balance Inquiry ABROAD Cash Withdrawal Balance Inquiry Rs. 50/Rs. 15/Rs. 125/Rs. 25/1. The charges are waived for branches at semi urban and rural centres. 2. The charges for Current Accounts will be the same as that for SB NOR 3. The charges for SB DMT, SB-SPL and SB STU will be the same as that for SB-NOR. 4. There will be no charges for Debit Cards issued to SB SPA, SB-PB, SB TRS and SB STF 5. There will be no charges for cards issued to NRE & NRO Accounts. 6. The charges are waived for primary card to SB SAL. REVENUE DRIVERS In the absence of any annual fee, the revenue driver for the Bank is the commission earned @ 1.1% of the transaction amount, when a customer uses his Debit Card at a merchant outlet. Thus the challenge is twofold: Activation of Dormant Cards Migration of transactions at ATMs (non-revenue earning) to Point of Sale (1.1%) In the financial year 2005-06 the Bank earned approximately Rs. 11.27 crore from its Debit Card program. Usage of the Card varies according to age and location. People in the metros, large towns use the Debit Card because of more awareness and concentration of ATMs and POS terminals. The highest usage comes from Tier I cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore where most merchant outlets have EDCs (Electronic Data Capture Terminals). Similarly age of the customer also has a bearing on the usage pattern. Studies show that the Debit Card is used maximum by people in the age group of 25-45. New Initiatives a) Remittance Card The AXIS Bank Remittance Card. Launched in association with Remit2India.com, is a unique product that has changed the way money is sent across borders. Remitters from 23 different countries including the USA, UK, Gulf Countries can send money to India through the Remittance Card. The product is available as a delivery mode (other delivery modes being Demand Drafts/Direct credits to Bank accounts) for remittances made through the Web Portal www.Remit2India.com. Based on the remitters request, we prepare a personalised Remittance Card for the beneficiary, which is preloaded with the funds remitted to him in INR. The card is sent in a Welcome Kit to the beneficiary, who has to take it to the nearest AXIS Bank branch to complete some

basic formalities in order to activate his/her card. Once the card is activated, it works just like a normal ATM-cum- Debit Card, usable at all VISA ATMs for withdrawing funds and at all VISA enabled POS outlets to pay for purchases. Subsequent remittances are directly loaded onto the card and provide the beneficiary with almost instant access to the funds remitted to him. Thus, the product is primarily aimed at providing a hassle-free and convenient solution to beneficiaries who receive remittances on a regular basis. Other features provided to Remittance Card customers are as follows: Multi-city At Par chequebook (on request) No minimum average balance requirement Encash facility Quarterly interest payment Daily Cash Withdrawal Limit of Rs. 40,000/ Daily Cash Withdrawal Limit of Rs. 40,000/ Free Insurance cover comprising of: Purchase protection Zero lost card liability Internet and Telebanking facility b) VISA Money Transfer Service The VISA Money Transfer Service has now mad it possible to send money from an AXIS Bank account to any of the 28 million VISA Cards issued in India. Eligibility Sender of Funds: To avail of the VISA Money Transfer Service, the sender of funds needs to be a holder of either of the following: A bank account with AXIS Bank Any VISA Card issued by AXIS Bank Beneficiary of Funds: The beneficiary of the funds should have a VISA Card (debit or credit, issued in India). In case the beneficiary VISA Card is linked to more than one bank account, funds will be transferred to the primary account linked of the card. Availability The service has been enabled through all our ATMs and i-ConnectTM. Usage The VISA money Transfer service can be used for the following purposes: To send money to any of the 23 million VISA Cards anywhere in India. To pay VISA credit card bills by giving the card number and making a direct payment. AXIS Bank account holders who hold VISA Electron/VISA FLAG Cards can also receive money from any other Bank account, subject to that Bank enabling VISA Money Transfer for its accountholders. We intend to introduce several additional usage options at a later date like payment of utility Bills, School and College Fees, etc. through VISA Money Transfer. Time Taken for Funds Transfer Although the senders account would be debited instantaneously or on the scheduled date with the transferred amount, the funds will reach the beneficiarys VISA Card within one or two working day, depending on the time of transaction. Future initiatives In FY 08-09, the Bank plans to launch the Prepaid Corporate Card, which will be branded as a Rewards Card. The product is being aimed primarily at corporate for disbursing commission payments/reimbursements to their agents/distributors/employees. The Bank is in advanced stages of discussions with several corporate across the country. The Prepaid Card venture is expected to Bring significant revenue income (primarily through fee income) for the Bank. Merchant Acquiring Service : AXIS Bank has launched its Acquiring business from December 15, 2003. There has been an enthusiastic response from many parts of the country. In a short span, the Bank has garnered a base of 22,000 Merchant Establishments (MEs) and adding around 1,500 MEs per month, the highest in the industry in terms of nos. added per month, which is in tune with the ambition of becoming the 3rd largest player by FY 09 Market Scenario:

Business is concentrated in top 8 centres NewDelhi - 35% Mumbai - 30% Rest* - 35% *(Chennai, Hyderabad, Bangalore, Kolkata, Pune, Ahmedabad and others) Top 4 Players: Rank Banks ME Base (with POS) 1 ICICI Bank 1,25,000 2 HDFC Bank 65,000 3 CITI Bank 27,000 4 AXIS Bank 22,000 Our Offering: Salient Features of Cards Acceptance Services (Acquiring) offered by AXIS Bank is: -Enhanced Protection against Frauds To ensure a high level of protection from frauds, we have built in sophisticated security features additionally in the EDCs. -Current Account customized to your Requirements AXIS Bank offers 6 types of Current Account, which you can choose from, based on your specific requirements. -Customer Care of Highest Standard: A robust, round-the-clock authorization and merchant support services function ensures fast response times and reliable support in case of network outages and EDC malfunctioning. This minimizes downtime, thus enhancing productivity and profitability. -Loan against card receivable (Card Power): The Bank offers schematic loan to securities the card receivables in the form of cash credit and shortterm loans. Transaction Flow: ~ BANCASSURANCE Bancassurance implies sales of insurance products through the Banking channel, wherein a Bank enters into a tie up with an insurance company. The Bank would be paid a commission by the insurance company for each insurance policy sold. This initiative would help the Bank to boost its fee income through commission earned. In turn the insurance company can effectively tap the Banks customer base and utilize the banks resources and infrastructure to maximize its sales. As per IRDA norms, a Bank is permitted to only tie up with 1 insurance company (1 general insurance company and 1 life insurance company) of each line of business. In early 2005, AXIS Bank entered into a Bancassurance tie up with a leading private sector insurance player, Bajaj Allianz General Insurance Company Ltd, for sales of non-life insurance products through all its branches. The formal launch and announcement of the tie up took place during May 2007. AXIS Bank is yet to enter into a bancassurance tie up for life insurance sales. As a result of this tie up, a wide range of insurance products have now been made available through AXIS Bank branches. Insurance is being sold to all segments, viz. retail customers, SME segment and corporate customers as well. This partnership is expected to become one of the major bancassurance tie-ups in the Indian market. The important non-life products include Health Insurance, Personal Accident insurance, Householders Policy, Motor insurance, Shopkeepers Policy, Office Package policy, Overseas Travel Insurance, Fire Insurance, etc. These are the standardized insurance products of Bajaj Allianz. Apart from selling standard Bajaj Allianz policies, AXIS Bank has also launched 4 special co-branded general insurance products in association with Bajaj Allianz. These products would be exclusively sold to AXIS Banks large retail customer base and shall be available only through AXIS Bank. These policies offer the customers ~ 60 ~ greater benefits, more competitive pricing and ease of purchase as compared to the regular insurance policies. These co-branded are as follows: Family Health: We offer the customer, the advantage of insuring not just himself but his entire family with one policy. Our family Health insurance programme provides a comprehensive health insurance that covers customer, his spouse and 3 dependent children up to

the age of 18 years. Hence the customer does not have to pay multiple premiums to insure all the members, in his family. 30 Hospital Reimbursement: Reimbursement of your hospital expenses in case of sudden illness, accidents or emergency surgeries and Hospital Cash Payout: Additional cash benefit for each and every completed day of hospitalisation. Safe Home: We realize the customers need to make their homes as secure in reality, as it is in their mind, this is why we have launched 'SAFE HOME', which provides protection for your property and valuables at the customers home with minimal paperwork against losses due to fire, allied perils, burglary and larceny. Safe Guard: Low cost personal accident policy, which insures the customer, against risk of accidental death, accidental permanent total disability and accidental permanent partial disability. Smart Advantage: Smart Advantage is a women specific Critical Illness insurance plan that has been designed for keeping in mind the critical illnesses and other attendant risks that are especially faced by women. A guaranteed cash sum will be paid in case the insured (i.e customer) is diagnosed with a life-threatening illness. The benefit amount under this policy helps to take care of heavy medical costs for treatment of critical illness. Hence provides protection ~ 61 ~ from the economic impact of critical illness. Other Insurance Retail Products offered by AXIS Bank: Burglary Critical Illness Fire and allied perils Householder Personal Guard (Personal Accident Policy) Shopkeepers Travel Companion (International Travel Insurance) 31 Silver Health (Health insurance for higher aged customers) Motor Vehicle Policy Health Guard (Individual health insurance product) Hospital Cash Corporate Products We also cater to our Corporate & SME segment by offering the following types of policies: Fire and allied perils Money Insurance Fidelity Insurance Employee Benefit Policies like Group Health & Group Personal Accident Policies Workmen Compensation Marine Insurance Specialty products like D&O, E&O and BBB etc. Office Insurance Since Agriculture still contributes a major chunk to the Indian economy, we have devised products for the same. ~ 62 ~ Retail Banking At a Glance Corporate Communication & Market Research:

Mainline advertising campaign: Primarily to carry on with our corporate brand building initiative through our corporate advertising. We have worked out a conceptual positioning option for UTI Bank, broadly on the platform of Solutions that maximize the power of money for the consumer with the baseline Solutions for a lifetime. The idea is to zero in upon that big positioning platform based on the ~ 63 ~ role of UTI bank in the consumers life - and all consumer directed creatives including corporate brand advertising, product advertising as well as those for branch openings and anything else will have to necessarily coincide with the big idea to reinforce the synergy. General advertising: Ongoing activity - encompassing branch opening announcements, statutory advertisements, recruitment advertising and development of corporate promotional materials. ~ 64 ~ NRI campaign: A specialized NRI specific advertising campaign is carried out every year, highlighting the positives of our banks NRE account, in the branches in Kerala, The campaign is usually planned to run in the middle of July that coincides with the period when the NRIs from the Gulf return to India for their annual vacation. Public Relations: ongoing activity with a view to increasing visibility, reinforcing market awareness and enhancing perceptions of UTI Bank amongst our target audience industry, investors and customers. Service Monitoring: A holistic service evaluation approach across 110 of our branches across the country Mystery customer findings for identifying tactical gaps and customer satisfaction audit for identification of strategic issues pertaining to service for the Bank as a whole. Internal Communication: with a view to bolster employee attachment and engagement. Primarily in the form of conceiving, editing and publishing the in house magazine Buzzword. RETAIL ASSETS Retail Credit is emerging as one of the focus areas of most of the banks in the country. The retail credit business here is still very small compared to some of the developed countries of the world. The business is also in a nascent stage if compared to the corporate loans in the country and comprises of around 20 % of the total commercial bank loans. The retail credit business is quite well established in tier I cities of the country. However, it is still in the evolving stage in tier II cities and in the nascent stage in tier III cities. Consequently, the consumers of tier I cities are the most aware lot, with the consumers in the tier III cities having a substantially lower awareness. In spite of this, the level of awareness and the demand from consumers has increased rapidly in the last couple of years due to the emergence of new aggressive players in the market. Challenges for AXIS Bank ~ 65 ~

AXIS Bank has been a late entrant in the business of retail credit. The Bank has to overcome intense competition by established players to be a significant player in this business in spite of a large portion of the market remaining untapped. The interest rates during the past few years had fallen drastically. In the recent months the interest rates have again started moving northwards and so it is a major challenge to maintain profitability while simultaneously building up cost effective processes and large volumes in a relatively short period of time. To build business volumes, the Bank is developing low cost distribution channels and also enhancing the use of alternate channels (Mobile, ATM, Internet etc). The Bank is also expanding this business quickly to tier II and III cities and leveraging the strength and reach of its existing Branches for this purpose. The Bank is concentrating on an overall growth in the portfolio with a mix of secured and unsecured loans. To build up the Retail Asset portfolio, the Bank has identified the following action points: - Rule based risk assessment, monitoring, effective recovery and collections - PDC Handling and Servicing - IT Capabilities - Focus on building dealer alliances /DSA networks - Growth through Alliances and distributed finance. The Retail Asset products of the Bank are : - Personal Power - Power Drive - Power Home - Study Power - Consumer Power - Loan against Shares AXIS Bank Retail Assets : The Year 2007-08 In the year ended March 31 2008, our retail credit portfolio registered a substantial year-to-year growth of 55%. As on 31.3.2008, the portfolio aggregated Rs. 8525.50 ~ 66 ~ crores, up from Rs. 6208.64 crores as on 31.3.2007. At present it forms 29 % of the total advances of the Bank, up from 27% as on 31.3.2007. AXIS BANK RETAIL ASSETS : THE YEAR AHEAD (2007-08):The Bank plans to ambitiously grow its retail assets portfolio from Rs. 8525 crores (as on March 31, 2008) to new heights this year. In order to achieve this, a two pronged approach strategy is contemplated: - Business through Retail Asset Centres (at major centres) and Satellite Retail Asset Centres (at other centres) - Business through Alliances / Securitisation Business through Retail Asset Centres (at major centres) and Satellite Retail Asset Centres (at other centres) Business through Retail Asset Centres (RACs): The strategy is being implemented city-wise. RACs have already been set-up at 15 major centers. The 28 SRACs have added a new dimension to the Retail Assets distribution by providing newer business opportunities at Tier II centers. RACs/SRACs are separate cells, directly reporting to corporate office, responsible for all business in the centre. The RAC/SRAC conducts

business, with the help of dedicated teams of DSAs, Field Verification (FI) agencies, Document Verification agencies, Valuation agencies, lawyer panels and recovery/collection agencies. Business through Alliances and Securitisation As a part of building the retail asset portfolio we have tied up with NBFCs, which are sourcing and administering business for AXIS Bank. These tie-ups contributed to substantial percentage of the total growth achieved during the last financial year. Among the potential targets were foreign banks desirous of moving out of the country/business and NBFCs in retail lending operations. Infrastructure Creation: The growth envisaged in retail assets has been achieved by putting in place: Centralised cells for PDC management, recovery and collections, document storage and MIS. It was deemed necessary to set up this infrastructure before embarking on a ~ 67 ~ countrywide marketing programme. The Bank has this infrastructure in place since June 2003. Software: The unique needs of the retail asset business require dedicated software applications. We had evaluated a few software solutions available in the market and the Bank selected the software (FELOS) by Infosys. The software has been implemented and integrated with the Bank's core banking application. A continuous improvement in the software is being achieved. Organisational Structure: The Retail Assets team at the Central Office is reoriented at a product driven and customer centric approach to provide better control, design and management of retail assets. Direct Sales Agent (DSA) Channel: A new channel i.e. DSAs, has been appointed at the RACs to increase the feet-on-street for effective marketing of the retail assets. All the DSAs are being trained and an operational manual has been designed for them to help source business effectively and garner the desired clients (only) for the Bank. Their performance is also being monitored regularly. ~ 68 ~ Loans ~ 69 ~ PERSONAL POWER Purpose: To meet personal expenses. Loan Amount Minimum Loan amount Rs.25, 000/Maximum Loan amount Rs.105, 00,000/- for salaried and Rs.15, 00,000/- for salaried professional individuals Maximum Loan amount Rs.103, 00,000/- for self-employed individuals Maximum Loan amount Rs.720, 500,000/- for Doctors POWER HOMES Purpose: - Purchase of a plot of land and Construction of a house thereon - Construction of a house on plot of land already owned - Purchase of a new house / flat - Purchase of old house / flat which is not more than 15 years old (Home Acquisition Plan) - Extend /Renovate/Repair of a house or flat already owned by self Improvement/ Extension Plan)

-Take-over of existing Housing Loan - Take-over of existing Housing Loan with additional Finance (Top-Up) - Pre-allotment Booking finance Limit: Minimum Rs.1 lakh & Maximum - Rs.50 lacs ~ 70 ~ Margin 15% in the case of normal product. 25% in case of Improvement/ renovation loans ASSET POWER (LAP) Purpose: - Loan against property - Residential premises - Loan against property - Commercial premises - Loan for Purchase of Commercial Property - Take-over of existing Loan - Take-over of existing Loan with additional refinance (Top-Up) Limit: Minimum Rs.1 lakh & Maximum - Rs.150 lacs Margin 50% in case of loans against property. (On valuation) CONSUMER POWER Purpose: Purchase of new consumer durable item Loan Amount: Minimum Loan amount Rs.25, 000, Maximum Loan amount Rs.2, 00,000 POWER DRIVE Purpose: Purchase of a new car Loan Amount: Cost of Vehicle plus registration & insurance (less stipulated margin) OR 20 times of net monthly salary in case of salaried persons / equivalent of net annual income as per latest IT Assessment Order in case of others, whichever is less. ~ 71 ~ STUDY POWER Purpose: To provide financial support to deserving/meritorious students for pursuing higher professional/technical education in India and abroad. To be provided to meritorious students who have obtained admission to career-oriented courses, e.g. medicine, engineering, management, either at the graduate or post-graduate level. This would cover studies proposed in domestic or overseas institutions. Quantum of Loan: The quantum of finance under the scheme is capped at Rs.7.5 lakhs for studies in India and Rs.15 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs.50,000/-. Expenses Considered for the Loan: - Fees payable to college/university/hostel - Examination/Library/Laboratory fees - Purchase of Books/Equipment/Instruments - Caution/refundable deposits supported by the Institutions bills/receipts - Travel expenses/passage money for studies abroad - Purchase of computers (when essential for the completion of the course) Any other expenses required to complete the course, like study tours/project work/thesis, etc. LOAN AGAINST SHARES Purpose: For personal use ~ 72 ~ Quantum of Loan: Maximum loan amount is Rs.20, 00,000/- against pledging of approved scrips. We are offering this facility to individuals only. TWO WHEELER LOAN Purpose: To purchase a two wheeler Quantum of Loan: Minimum Rs.20, 000/- & Maximum Rs.70, 000/-. We finance 8085% of the on road price (Cost of Vehicle + registration + insurance) of the

vehicle. ~ 73 ~ Corporate Banking Head of the Department: Shri Rajagopal Srivatsa Senior Vice President ~ 74 ~ CORPORATE BANKING The Business Banking Department (erstwhile Institutional Business Department) was set up in the year 2000, with the objective of having a special cell to serve the institutional and corporate clientele of the Bank. Business Banking initiatives revolve around transaction banking services to garner Business Current Accounts, Cash Management Service mandates, Government Business - Collection & Payment Services. As a natural corollary, scope of the business was extended this year to Business loans for Small Businesses so that all product and services to small business enterprises are comprehensively made available. The Department presently focuses on the four broad areas through the respective Business Groups, as under: Business Current Accounts Business Assets Cash Management Services Government Business The Department apart from the Business Groups at Central Office drives the above businesses through Zonal BB and Regional BB Officials at State Capitals & other important centers across various Client Segments through Corporate Banking Relationship Managers and Branches. The Business loans for Small Businesses are however driven through the dedicated asset centers of the Bank. The products offered by the Corporate Banking business group of the Bank include fund and non-fund based facilities, fee and commission based products and services, deposits and foreign exchange related products, covering the domestic and international transaction requirements of large and mid-sized customers. The Corporate Banking group of the Bank was restructured with a view to increasing the share of core fee income to augment the overall Return on Equity (ROE) from corporate clients. The entire gamut of Corporate Banking activities, comprising Credit, Treasury, Business Banking and Capital Markets, now work in tandem with joint product offerings made to corporate customers. Relationship Management and Credit functions have been merged and the Corporate Credit group has been split into two separate segments Large Corporate and Mid-Corporate. The fulcrum of the revised set-up is the Relationship Manager, who serves as a single point contact for all the banking needs of each corporate. ~ 75 ~ Besides widening the customer base of the Bank and adopting a careful assessment of acceptable risk-return tradeoffs, the focus of the Corporate Banking group is to deepen existing client relationships by actively cross-selling the entire range of products and services, based on detailed client-wise account-plans, and thereby increase the Bank's share of the aggregate business level of the customer. CORPORATE CREDIT The Corporate Credit portfolio of the Bank comprising advances to large and midcorporates grew by 68.33% to Rs. 29,026 crores from Rs. 17,244 crores a year ago. This includes advances at overseas branches amounting to Rs. 5,381 crores (equivalent to USD 134 million) comprising in main the portfolio of Indian corporates and their subsidiaries, as also trade finance. Credit exposures are taken

based on risk analyses and mitigation measures, with proposals being subjected to critical scrutiny by the Bank's Risk Department. Efforts are made to constantly upgrade the skills required for faster turnaround of credit proposals and structuring of financial products. In addition to working capital loans, the Bank also takes long-term exposures to infrastructure and manufacturing projects set up by reputed industry groups. Relationship groups in the Bank are organised with an industrysector focus for better evaluation of specified risks. The credit policy of the Bank has also put in place ceilings on exposures to various industries with a view to containing concentration risk and facilitating portfolio diversification. ~ 76 ~ AXIS Banks Current Accounts The basic product for mobilizing such deposits is a Current Account. The Bank offers a range of current account products to meet the needs of the various customer segments such as Small Enterprises, Trade, Exporters, Corporates and institutions. The various Current Accounts offered by the Bank are: Normal Current Account Business Advantage Business Classic Business Privilege Business Global Channel One (Priority Customers) These products offer flexibility to customers to choose from the above options with varying minimum average quarterly balance commitments and charges structure. In addition to conventional banking facilities, these accounts offer Multi-City At Par payable cheque- book facility and Anywhere Banking facility across branches. Customers can access their account Online through Corporate iConnect, our Internet banking platform as also through Tele-Banking facility and can receive account balance information on mobile telephones and electronic mail. Customers are subject to transaction charges including charges for non- maintenance of the committed balances. Axis Bank brings different kinds of current accounts for different types of businesses. Select the one that best suits your business requirements. Axis Bank's Current Accounts come equipped with the following features to give maximum value for your money. ~ 77 ~ Types of Current Accounts:Normal Current Account Business Advantage Account Business Classic Account Business Privilege Account Channel One Current Account for Govt Organisations Current Account for Banks Current Account for Builders & Real Estate Capital Market Current Account Krishi Current Account Business Global Current Account Club 50 Current Account Shipping and Maritime Current Account Inland Road Transport Current Account Travel, Tourism and Hospitality Current Account Features: ~ 78 ~ Anywhere Banking Our Current Account allows you to bank from all our branches and extension counters. You can deposit cash, withdraw cash, deposit cheques, and issue 'at-par' cheques at any of our branches. So bank at your own

convenience! Instant Fund Transfer You can transfer funds instantly between any of our branches. Funds transfers can be effected online, right from your desktop, through our internet banking services. Internet Banking Axis Bank presents Corporate iConnect - a unique NetBanking platform for its current account customers. Available with multiple user IDs, depending on your needs. Access your account at any time form anywhere. You can transfer funds to your own accounts or to third party accounts within Axis Bank & Inter Bank covering over 25,000 branches of various banks. Corporate iConnect also permits transaction initiation by one user and approval by another. You can also execute bulk payments like salary and commission across Axis Bank network, right from your desktop. At-Par (Multicity) Chequebook Enjoy the benefits of multicity chequebook with Axis Bank's current accounts. You can issue cheques payable at par at all our branches across the country. Your cheques will be treated as local cheques at more than 375 locations as on January 31, 2008. ATM or Debit Card With every Current Account (for proprietary and partnership concerns), you can avail upto 2 ATM cum Debit cards, which allow you round the clock access to your account from any of all our ATMs all over the country. You can withdraw upto Rs 40,000 a day. Free Monthly Account Statement By courier and daily on email. ~ 79 ~ Mobile Banking Mobile Banking will enable you to bank with us through your mobile phone irrespective of where you are. Phone Banking Phone banking or Tele-banking service can help you access your account from your telephone anytime you want. Documentation Mentioned below is the list of documents to be submitted with the completed duly signed Account Opening Form: Basic Common Documentation Proof of Identity: PAN Card, Voter Id Card, Passport, Driving License Proof of Address: Latest Telephone Bill or Electricity Bill Public or Private Limited Companies Certificate of Incorporation and Commencement of Business Memorandum and Articles of Association Board resolution authorising the opening and operation of the account PAN or GIR No. or completed Form 60 List of Directors with residential addresses Partnership Firms Partnership Deed and Registration Certificate Shop and Establishment Certificate Letter from partners approving the persons concerned to open and operate the account Proprietorship Concerns Certificate from State Govt or Statutory Body or Trade License or Sales Tax Certificate or Shop and Establishment Certificate Letter of proprietorship, duly signed by the proprietor in his or her individual capacity (with a rubber stamp) Hindu Undivided Family ~ 80 ~ Letter of HUF duly signed by Karta and all Co-Parceners PAN or GIR No. or completed Form 60 Names of Karta and Co-parceners with residential addresses Latest passport-size photographs of all the authorized signatories

Trusts Copy of the trust deed Copy of the registration certificate Copy of the resolution by the trustees authorising the members concerned to open and operate the account List of Trustees with residential addresses Photographs of the members operating the account Associations or Clubs Bye-laws of the association or club Certificate of Registration Copy of the resolution by the Board authorising the members concerned to open and operate the account Photographs of the members operating the account Interest Rates Saving Account Deposit Interest Rate - 3.5% Rates Effective from: Thursday, August 21, 2008 PERIOD INTEREST RATES ON DOMESTIC DEPOSITS ~ 81 ~ (%) DEPOSITS Interest Rate on Deposits Below Rs 15 lakhs Interest Rates for Senior citizen Int Rate 15-50 Lakhs 7 days to 14 days - - 1 30 days to 45 days 4 4 4 15 days to 29 days 3 3 3 46 days to 60 days 5 5 5 61 days to less than 3 months 5.5 5.5 5.5 3 months to less than 4 months 666 4 months to less than 6 months 666 6 months to less than 9 months 7.75 8.5 7.75 9 months to less than 1 year 9 9.75 9 1 year to less than 2 years 10 10.75 10 2 years to less than 3 years 9 9.75 9 3 Years to less than 5 years 8.5 9.25 8.5 5 Years upto 10 years 8.5 9.25 8.5 FINANCIAL PERFORMANCE HIGHLIGHTS Profit after tax up 62.52% to Rs.1,071.03 crores. Net Interest Income up 76.07% to Rs.2,585.35 crores. Fee & Other Income up 65.91% to Rs.1,367.75 crores. Deposits up 49.06% to Rs. 87,626.22 crores. Demand Deposits up 70.84% to Rs. 40,026.99 Crores.

Advances up 61.79% to Rs.59,661.14 crores . ~ 82 ~ Retail Assets up 52.24% to Rs. 13,591.68 crores. Network of branches and extension counters increased from 561 to 671. Total number of ATMs went up from 2341 to 2764. Net NPA ratio as a percentage of net customer assets down to 0.36% from 0.61%. Earning per share (Basic) increased from Rs. 23.50 to Rs 32.15. Proposed Dividend up from 45% to 60%. Capital Adequacy Ratio stood at 13.73% as against the minimum regulatory norm of 9%. OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE The Bank once again met with good success over the past year and achieved all of its key objectives. During 2007-08, the Bank has witnessed strong growth in business volumes as well as profits arising from core banking revenues. The high growth in the Bank's businesses and earnings must be seen in the backdrop of several negative factors such as a hardening of interest rates and the crisis in the financial sector in the US (spreading also to parts of Europe) leading to volatility in the capital and money markets, and the first signs of a slowdown in Indian economy in the last quarter. For the Bank's growth to continue, the Bank would need to become increasingly competitive in its product offerings. The diversification of businesses across multiple products, markets and geographies is itself a risk mitigant, and enabled the Bank to deliver strong financial results during 2007-08. ~ 83 ~ The Bank's ability to serve the needs of its customers continues to improve. The future growth of the Bank will continue to leverage the robust centralised technology that provides economies of scale, improves time-to-market of new products, and fosters innovation. Thereby, the creation of customer value will remain congruent to generating profitability for the Bank. CAPITAL MANAGEMENT The Bank believes in the continual enhancement of shareholder value and its capital management framework helps to optimize the use of capital by ensuring the most favorable allocation of capital through an appropriate mix of products and services. The Bank focused on developing an asset structure which was sensitive to the importance of enlarging the proportion of low risk weighted assets in order that capital is more efficiently deployed. During the year, the Bank continued to attract investor interest from domestic and foreign institutional investors, with a perceptible increase in trading volume and price. To augment capital for maintaining the momentum of business growth, the Bank raised equity capital of Rs. 4,534 crores in 2007-08 through simultaneous offerings of follow-on Global Depositary Receipts (GDRs), a Qualified Institutional Placement (QIP) and a preferential allotment of equity shares to the promoters of the Bank. In addition, the Bank has also raised US Dollars 60 million (equivalent to Rs. 243.12 crores) as Upper Tier II Capital from Singapore under its MTN Programme. ~ 84 ~ As of 31st March 2008, the Bank had implemented the Revised Framework of the International Convergence of Capital Measurement and Capital Standards (or Basel II). In terms of RBI guidelines for implementation of Basel II, capital charge for credit and market risk for the financial year ending 31st March 2008 will be required to be maintained at the higher of the levels implied by Basel I and Basel II. In terms of regulatory guidelines on Basel II, the Bank has computed capital charge for operational risk under the Basic Indicator Approach and the capital charge for credit risk estimated under the Standardised Approach. The Bank's Capital Adequacy Ratio was 13.73%, as on 31st March 2008, against the minimum rgulatory requirement of 9%. The following table sets forth the riskbased

capital, risk-weighted assets and capital adequacy ratios computed as on 31st March 2008 in accordance with the applicable RBI guidelines under Basel I and Basel II. (In Rs. Crore) ~ 85 ~ Balance Sheet ~ 86 ~ Profit & Loss Account ~ 87 ~ ~ 88 ~ Cash Flow Statement ~ 89 ~ Data Analysis & Interpre tation DATA ANALYSIS & INTERPRETATION A) WORKING CAPITAL ~ 90 ~ 2008 2007 2006 2005 2004 Current assets, loans & advances 2,784.51 1,892.07 1,679.98 2,071.38 896.10 Less : current liabilities & provisions 7,556.90 5,873.80 4,051.03 1,828.68 1,530.46 Total net working capital (4,772.38) (3,981.73) (2,371.05) 242.70 (634.36) Interpretation: Here we can see that the current liabilities of the bank is very high but on the other hand bank dont have enough assets so the result is Working Capital of the Bank is decreasing year by year which is not a good sign for the bank. Its shows the bank dont have a enough money to pay their day to day expenses. B) Working capital turnover ratio Year Ratio Calculated 2003-04 (2.51) 2004-05 7.92 2005-06 (12.1) 2006-07 (1.14) 2007-08 (1.46) Interpretation: The working capital turnover ratio is used to analyze the relationship between the money used to fund operations and the sales generated from these operations. In a general sense, the higher the working capital turnover, the better because it means that the company is generating a lot of sales compared to the money it uses to fund the sales. In the case of AXIS BANK working capital turnover ratio is negative in most of the year only in the year 2004-05 is a positive as well as high. So its shows the bank ~ 91 ~ has used a more funds in compare to generate sales which is not show a good sign for bank. 2) PROFITABILITY RATIOS A) OPERATING MARGIN

Year Margin Calculated 2003-04 23.31 2004-05 26.77 2005-06 26.45 2006-07 21.84 2007-08 23.25 Interpretation: In the year 2007-08 Operating Margin was 23.25, in the year 2006-07 it was 21.84. This shows that Operating profit margin is increasing which is good for the bank. B) GROSS PROFIT MARGIN Year Calculated GPM 2003-04 23.31 2004-05 23.23 2005-06 23.88 2006-07 19.79 2007-08 21.44 Interpretation: Here we can see that the there is no much up and downs in Gross profit margin of AXIS BANK but In the year 2007-08 Gross Profit Margin has increased from 19.79 to 21.44, its a 8.43 % growth in gross profit margin of bank that shows the performance of bank is increasing which is a good sign for bank. ~ 92 ~ C) NET PROFIT MARGIN Year Calculated NPM 2003-04 13.14 2004-05 14.33 2005-06 13.47 2006-07 12.01 2007-08 12.22 10.5 11 11.5 12 12.5 13 13.5 14 14.5 2003-04 2004-05 2005-06 2006-07 2007-08 Interpretation: Net profit margin of AXIS BANK is not up to mark. Although it has increased from 13.14 in the year 2003-04 to 14.33 in year 2004-05 but after the year 2004-05 to 2007-08 it is continuously decreasing which is a major issue of concern for bank. 3) MANAGEMENT EFFECTIVENESS A) RETURN ON ASSETS ~ 93 ~ Year Calculated Ratio 2003-04 1.42% 2004-05 1.21% 2005-06 1.18% 2006-07 1.10% 2007-08 1.24% Interpretation: Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. In the case of AXIS BANK ROA is decreasing from the year 200304 to 2006-07 but after the year 2006-07 it has increased so we can say that

previously the bank was not utilize their assets efficiently but now the bank is doing which may be a good sign for bank in future. B) RETURN ON INCOME Year Calculated Return 2003-04 37% 2004-05 20% 2005-06 25% 2006-07 29% 2007-08 18% Interpretation: ROI tells that how much a firm has take back of their investment. More ROI means the company is performing well. In the case of AXIS BANK in year 2003-04 ROI was highest which shows that bank was performing good in year 2003-04 but in the financial year 2007-08 ROI is lowest which refers that in year 2007-08 company didnt earn as return as they had invested. C) RETURN ON CAPITAL EMPLOYED ~ 94 ~ Year Calculated Ratio 2003-04 1.60% 2004-05 1.40% 2005-06 1.60% 2006-07 1.40% 2007-08 1.80% Interpretation: It simply shows that there is volatility on return on capital employed. But if we see from last year 2006-07 the return is 1.40% & now at present 2007-08 it has registered a robust growth rate of 33%. In short company is performing well. C) RETURN ON AVERAGE NETWORTH Year Calculated Ratio 2003-04 27.1 2004-05 25.8 2005-06 18.4 2006-07 21.8 2007-08 16.1 Interpretation: Here we can see that a fluctuation in Return on average net worth of AXIS BANK It has decreased in 2007-08 16.1 from 2006-07 21.8. ~ 95 ~ D) EARNING PER SHARE (RS) Year EPS 2003-04 11.72 2004-05 11.83 2005-06 17.41 2006-07 23.40 2007-08 29.94 Interpretation: Earning per share is increasing year by year which is a good sign for an investors of axis bank it shows that an investor can invest in AXIS Bank to get good profits. 4) LEVERAGE RATIOS A) DEBT EQUITY RATIO Year Ratio 2003-04 18.44 2004-05 13.17 2005-06 13.97 2006-07 17.32 2007-08 9.99 Interpretation:

The debt equity ratio is calculated to measure the extent to which debt financing has been used in business. It indicates what proportion of equity and debt the company is using to finance its assets. As a genera rule there should be a mix of owner find and ~ 96 ~ outside find. The AXIS BANK is having high debt equity ratio in the year 2003-04 and 2006-07 its means the bank was very aggressive in financing its growth with debt. B) FIXED ASSET TURNOVER RATIO Year Ratio 2003-04 3.56 2004-05 3.01 2005-06 4.00 2006-07 4.97 2007-08 6.32 Interpretation: Fixed assets are used in the business for producing goods to be sold. The effective utilization of fixed assets will result in increased production and reduced cost. Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficiently utilized. In the case of AXIS BANK the fixed asset turnover ratio is continuously increasing from the year 2005-06 to 2007-08 and in the year 2007-08 it was very high its reflects that bank was utilizing their assets in a efficient manner. 5) LIQUIDITY RATIO A) CURRENT RATIO Year Calculated Ratio 2003-04 0.58 2004-05 1.13 2005-06 0.41 2006-07 0.32 2007-08 0.36 Interpretation:Current ratio indicates the short term financial soundness of the company. It judges whether current assets are sufficient to meet the current liabilities. The company must be able to meet its current obligations out of the current assets. ~ 97 ~ The standard current ratio is 2:1 it means the company should have such total current assets which are twice of their current liabilities but in the case of AXIS BANK the current ratio is not match up with standard ratio and is not increasing continuously year by year it shows the bank doesnt have enough assets to pay their liabilities. B) QUICK RATIO Year Calculated Ratio 2003-04 9.17 2004-05 11.55 2005-06 6.52 2006-07 7.39 2007-08 9.23 Interpretation: An indicator of a company's short-term liquidity. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is called liquid because it can be easily converted in to cash. The higher the quick

ratio, the better the position of the company. It is said that standard ratio of liquidity must be 1:1 so we can ay that in the case of AXIS BANK the ratio is more than standard ratio in every year. So its shows the bank is able to meet their short term obligation which is a good sign for bank. 6) TREND ANALYSIS Year Sales Total income Net profit before tax 2003-04 1598.54 2,119.67 271.38 2004-05 1924.16 2,327.67 323.78 2005-06 2888.79 3,602.50 485.08 2006-07 4560.40 5,546.89 659.03 2007-08 7005.31 8,755.91 1,071.03 Interpretation: ~ 98 ~ If we analyze the trend of sales of bank so its increasing year by year and in the year 2007-08 it was 7005.31 and in the same years total Income and Net profit before tax also increases respectively so after seeing the trend of the sales, total income and net profit before tax of bank for last five years we can predict that in the future also these will increase and the overall performance of bank will be great. 7) Total Deposits Year Saving bank deposits Current bank deposits 2003-04 2,584.51 5,393.73 2004-05 4,890.86 7,154.83 2005-06 8065.44 7,970.08 2006-07 12,125.88 11,304.31 2007-08 19,982.41 20,044.58 Interpretation: Both Saving Bank deposits and current bank deposits is increasing year by year which is a good sign for the bank and its shows the image of bank is becoming more good in the eyes of customers and public and the customers have satisfied with the services of bank so the result they are keeping more faith on bank and thats why they are depositing more money in the bank. 8) TOTAL ADVANCES Year Retail assets Non retail advances 2003-04 2,051.79 7,311.15 2004-05 4,183..68 11,419.24 2005-06 6,489.93 15,824.30 2006-07 8,927.54 27,948.94 2007-08 13,591.68 46,069.46 ~ 99 ~ Interpretation: This is a positive trend in Retail assets and Non Retail advances. 9) NET INTEREST INCOME Year Net interest Income 2003-04 577 2004-05 731

2005-06 1078 2006-07 1468 2007-08 2585 Interpretation: Net Interest Income of the bank is increasing in every year and in the year 200708 is 2585; it has growth of 76.08 % from the year 2006-07 its shows that bank deposits are increasing or bank is earning more income from the interest of that deposit. Findings ~ 100 ~ ~ 101 ~ FINDINGS Working Capital of the Bank is decreasing year by year which is not a good sign for the bank. In the year 2007-08 Operating Margin was 23.25, in the year 2006-07 it was 21.84. This shows that Operating profit margin is increasing which is good for the bank. In the year 2007-08 Gross Profit Margin was 21.44, in the year 2006-07 it was 19.79. This shows that Gross profit margin is increasing which is good for the bank. Net profit margin is increasing year by year. Debt / Equity is decreasing. Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficiently utilized. Current Ratio is increasing which is showing a sound financial position of the company. Quick Ratio of the bank is increasing it shows that position of the bank is improving. Sales of the Bank is increasing year by year in the year 2007-08 it was 70005.31 inthe same year Total Income and Net profit Before tax also increases respectively. Both Saving Bank deposits and current bank deposits is increasing year by year which is a good sign for the bank. This is a positive trend in Retail assets and Non Retail advances. Earning per share is increasing which shows that a investor can invest in AXIS Bank to get good profits. ~ 102 ~ Glossa ry Banking ~ 103 ~ ALM The System of scientific management of Assets and Liabilities of a company or an entity is known as Asset Liability Management. Through this system, the In flows and the out flows of the funds are managed to effectively handle the mismatches. ALM is concerned with risk management and provides a comprehensive and dynamic framework for measuring, monitoring and managing liquidity interest rate, foreign exchange and equity and commodity price risks of a bank that needs to be closely integrated with the banks business strategy. ALM involves assessment of various types of risks and altering asset-liability portfolio in a dynamic way in order to manage risks. ATM Automated Teller Machine is a device (initially) used for dispensation of cash to banks customer. The present version of ATMs perform several other functions. Mr.Luther George Simjian invented the ATM. The modern version of the successful ATM was invented by Mr.Don Wetzel. ~ 104 ~ BANK RATE

Bank Rate is the rate at which RBI allows finance to commercial banks. Normally, different types of refinance facilities by RBI to banks are linked to a Bank Rate. Bank Rate is a tool which RBI uses for short-term purposes. Any revision in Bank Rate by RBI is a signal to banks to revise deposit rates as well as Prime Lending Rate. For greater effectiveness, this tool is used together with other measures like Cash Reserve Ratio and Repo Rate. At present, the bank rate is 6 % p.a BANCASSURANCE The phenomenon whereby a financial institution combines the selling of banking products and insurance products through the same distribution channel. Popular in the early 1990s bancassurance rested on the premise that it is easy to cross-sell banking and insurance services because customers feel confident buying insurance from the same institution where they keep their savings. BANK GUARANTEE This is a Non-Fund Based facility which can be defined as a financial commitment by the bank to the beneficiary on account of banks client. Bank guarantees are contingent liabilities in nature and are of two types viz., financial guarantee and performance guarantee. BILLS DISCOUNTED Finance against Bill of exchange payable after the specified period (Time/Usance bill). BILLS PURCHASED Finance against bill of exchange payable on demand. CAMELS RATING This is a system of evaluating the performance of a bank based on six parameters viz., Capital Adequacy; Asset Quality; Management, Earnings; Liquidity and Systems and Control. Each rating factor will be scored on a scale of 1 to 5. based on the individual scores for the six areas, an overall rating for the bank on a five score scale of A to E will be given. ~ 105 ~ CASH CREDIT Cash Credit is a Fund Based, Working Capital Credit facility allowed against Stocks/inventory The Cash Credit account will have a Sanctioned Limit and operated by the account holder through a running account. The drawings are permitted upto the Sanctioned Limit subject to the Drawing Power which is determined by the Value of Stock. CAPITAL ADEQUACY Under the Prudential Accounting Norms introduced in the Indian Banking industry from the year 1992-93, banks are required to maintain adequate capital in proportionate to the (Risk Weighted) Assets of their Balance Sheet. This proportion of capital to Risk Weighted Assets is known as Capital Adequacy Ratio. CENTRAL BANK The bank in any country, which is authorized by the government to: control the amount of credit in the country; carry out the business of the government and maintain its accounts; control note issue; and manage the country's foreign exchange reserves and control the financial sector. The Reserve Bank of India is the Central Bank for India. COMMERCIAL PAPER It is a money market instrument raised by companies in the form of Usance

Promissory Note to meet their short term funds requirements. CREDIT CARD A plastic card issued by a bank that allows the client to make purchases now and pay for them later. The bank will send a periodical statement of the card utilization and payment details. The banks charge interest on the amount remain outstanding. CRR Among the tools available to the Central Bank of a country to influence and control the monetary aggregates of the country, the most powerful is that relating to cash ~ 106 ~ reserve requirements imposed on banks. Under section 42 (1) of RBI act, 1934, every scheduled commercial bank is required to maintain with the RBI every fortnight a minimum average daily cash reserve equivalent to the stipulated percentage of its Net Demand and Time Liabilities (NDTL) outstanding as on the Friday of the previous week. The RBI is empowered to vary the CRR. RBI is using the CRR either to impound the excess liquidity or to release funds needed for the economy from time to time. DEPOSITORY PARTICIPANTS (D.P.) A Depository interfaces with investors through agents known as Depository participants. Institutions which are eligible to function as D.P. are Scheduled Commercial Bank, Bank approved by RBI, Public Financial Institutions, State Financial Corporation, Clearing Corporations, NBFC, SEBI registered brokers and SEBI registered custodians. The institution must have a minimum net worth of rupees one crore. The concerned depository has the right to choose D.P. subject to approval of SEBI. A D.P. opens accounts of the investors. DEBIT CARD A banking card enhanced with ATM (automated teller machine) and POS (point-ofsale) features that can be used to purchase goods and services electronically. The card replaces cash or cheques. Transactions are deducted from the cardholder's bank account either immediately (or within one to three days). Depending upon the type of card, a debit card may require the user to sign his or her name or enter a PIN (personal identification number) into special equipment. INTER BANK ELECTRONIC FUND TRANSFER SYSTEM (EFT SYSTEM) To promote and develop an electronic funds transfer mechanism whereby banks would be able to provide remittance to their customers from any of their branches, at "designated centres" to any other branch of the same or other banks at the same or any other "designated centre". LETTER OF CREDIT A document issued by one bank to another authorizing the latter of honouring cheques or bills etc issued/drawn by the beneficiary mentioned in the document to the tune of ~ 107 ~ the amount and confirming with the conditions as stipulated therein. A Letter of Credit may be a foreign or inland. OVERDRAFT Overdraft is a Fund Based, Credit facility allowed against receivables and other paper

security. The Overdraft account will have a Sanctioned Limit and operated by the account holder through a running account. The drawings are permitted upto the Sanctioned Limit subject to the Drawing Power which is determined by the Value of Security. REAL TIME GROSS SETTELMENT (RTGS) Concept designed to achieve sound risk management in the settlement of interbank payments. Transactions are settled across accounts held at the Central Bank on a continuous gross basis where settlement is immediate, final and irrevocable. SAFE DEPOSIT VAULT/LOCKER This is an ancillary service in which a small portion of our banks premises (restricted to the capacity of a metallic box) is leased to the client against rent. The clients are free to keep their belongings in the space leased out to them (ie. Lockers). SCHEDULED BANK A bank included in the Second Schedule to the Reserve Bank of India Act, 1934. RBI is empowered to include the name of a bank in the second schedule of the Act subject to the condition that the bank satisfies the conditions laid down in Section 42 (6) of the said Act.

SLR Under section 24 (b) of the Banking Regulation Act, 1949, every bank is required to maintain at the close of business every day, a minimum proportion of their Net Demand and Time Liabilities as liquid assets in the form of cash, gold and unencumbered approved securities. The ratio of liquid assets to demand and time liabilities is known as Statutory Liquidity Ratio (SLR). Present SLR is 25%. The RBI is empowered to increase the SLR upto 40%.. www . axisbank .com/xmlapplication/aboutus/financials/images/ Annual Report -2007.pdf

Apart from accepting deposits and lending money, Banks also carry out, on behalf of their customers the act of transfer of money - both domestic and foreign.- from one place to another. This activity is known as "remittance business" . Banks issue Demand Drafts, Banker's Cheques, Money Orders etc. for transferring the money. Banks also have the facility of quick transfer of money also know as Telegraphic Transfer or Tele Cash Orders. To deliver this service, a Bank must have: An effective branch network or correspondent relationships. A system of Inter branch reconciliation A system of reconciliation with the correspondents Availability of funds at all the centers

Various Departments of Axis Bank


Personal Banking Department.

Priority Banking. NRI Banking Department. Securities. Insurance. Investment Solutions Forex Department. Business Banking Department. Corporate Banking Department. Credit Laundering Department.