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CHAPTER I

INTRODUCTION

BANKING IN INDIA
HISTORY
The first bank in India, though conservative, was established in 1786. From
1786 till today, the j o u r n e y o f I n d i a n B a n k i n g S y s t e m c a n b e s e g r e g a t e d
i n t o t h r e e d i s t i n c t p h a s e s . T h e y a r e a s mentioned below:

PHASE I - Early phase from 1786 to 1969 of Indian Banks


PHASE II - Nationalization of Indian Banks and up to 1991
PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I
The General Bank of India was set up in the year 1786. Next came
B a n k o f H i n d u s t a n a n d Bengal Bank. The East India Company established
Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which started as private
shareholders banks, mostly Europeans shareholders. During the first phase the growth was
very slow and banks also experienced periodic failures between 1913 and 1948.
There were a p p r o x i m a t e l y

110 0

banks, mostly

t h e f u n c t i o n i n g a n d a c t i v i t i e s o f commercial

small.

banks,

the

To s t r e a m l i n e
Government

of

India came up with The Banking Companies Act, 1949 which was later changed to
Banking Regulation Act 1949 as per amending Act of 1965 (Act No.23 of 1965).
Reserve Bank of India was vested with extensive powers for the supervision
of b a n k i n g i n I n d i a a s t h e C e n t r a l B a n k i n g A u t h o r i t y. D u r i n g t h o s e d a y
s p u b l i c h a s l e s s e r confidence in the banks. As an aftermath deposit mobilization
was slow. Abreast of it the savings bank facility provided by the Postal department was
comparatively safer. Moreover, funds were largely given to the traders.

PHASE II
Government took major steps in this Indian Banking Sector Reform after independence. In
1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale
especially in rural and semi-urban areas. Second phase of nationalization Indian Banking
Sector Reform was carried out in 1980 with seven more banks. This step brought 80% of the
banking segment in India under Government ownership. The following are the steps taken
by the Government of India to Regulate Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.

1955: Nationalization of State Bank of India.

1959: Nationalization of SBI subsidiaries.

1961: Insurance cover extended to deposits.

1969: Nationalization of 14 major banks.

1971: Creation of credit guarantee corporation.

1975: Creation of regional rural banks.

1980: Nationalization of seven banks with deposits over 200 crore. After the nationalization
of banks, the branches of the public sector bank India rose to approximately 800% in
deposits and advances took a huge jump by 11,000%. Banking in the sunshine of
Government ownership gave the public implicit faith and immense confidence about the
sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking sector in its
reforms measure. In 1991, under the chairmanship of M Narasimham, a committee was set
up by his name which worked for the liberalization of banking practices. The country is
flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory
service to customers. Phone banking and net banking is introduced. The entire system
became more convenient and swift. The financial system of India has shown a great deal
of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock
as other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the
foreign reserves are high, the capital account is not yet fully convertible, and banks and their
customers have limited foreign exchange exposure.

BANKING STRUCTURE IN INDIA

Reserve bank of
India (central bank
& supreme
monetary authority
of the country)

Scheduled
banks

Co-operatives
bank

Commercial
Banks

Public
sector (27)

Private
sector (25)

Foreign
banks in
India (39)

Regional Rural
Banks (357)

Urban
Cooperative
Banks (53)

State Cooperative
Banks (31)
Old Private Banks
(17)

Nationalized
banks (19)
New Private
Banks (8)

State Bank of India


& its Associates
(8)

CHAPTER II

OBJECTIVE OF THE STUDY

To gain the knowledge of products and services of Axis Bank Ltd.


and to compare it vis-vis other banks.
To identify the perception of consumer about their banks with
comparison to other banks.
Recommendations to increase customer satisfaction level.

Because of the following reasons, I prefer this project work


to get the knowledge of the banking system.
Banking is an essential industry.
It is where we often wind up when we are seeking a problem in
financial crisis and money related query.
Banking is one of the most regulated businesses in the world.
Banks remain important source for career opportunities for people.
It is vital system for developing economy for the nation.
Banks can play a dynamic role in delivery and purchase of
consumer durables

LIMITATIONS

Some of the limitations of the project are listed as below:

1. Due to the financial and time constraints a cluster analysis of the


population so as to get better results was not feasible.
2. It was difficult to break the ice with the common people initially. It
was a daunting task to convince them to fill in the personal details
of the questionnaire where they have to mention the monthly
income, occupation etc.
3. To convince the people for a proper interviewing process is also
difficult.
4. Figures keep on changing from time to time.
5. Data may be outdated.
6. Compilation of data on competitor analysis was difficult due to nonavailability of correct information.
7. The figures have been taken as approximations.

CHAPTER III

PROFILE OF THE BANK

Type

Public

Traded as

BSE: 532215
LSE: AXBC
NSE: AXISBANK

Industry

Banking, Financial services

Founded

1994

Headquarters

Mumbai, India

Key people

Adarsh Kishore, Chairman


Shikha Sharma MD & CEO

Products

Credit cards, consumer banking, corporate banking, finance and


insurance, investment banking, mortgage loans, private banking, private
equity, wealth management

Revenue

198.26 billion (US$4.02 billion)(2011) [1]

Net income

33.88 billion (US$687.09 million)(2011) [1]

AUM

US$ 40.121 billion (2010)

Employees

21,640 (2010)[2]

Website

www.axisbank.com

COMPANY PROFILE: AXIS BANK

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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.
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 capitalized with Rs. 43,283.77 Crores. It has more than 1281 branch
offices and Extension Counters in the country with over 6270 Axis Bank ATM proving to be
one of the largest ATM networks in the country. This is the first bank in India to offer the ATPAR 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.
It is has a diversified presence across business and product lines with corporateAdvances
constituting ~57% of its total loan book, retail ~20%, SME ~14% and agriculture ~9%, as on
December 31, 2010.
The bank was formerly known as UTI Bank; it changed its name to Axis Bank in July 2007.
The bank has overseas offices at Singapore, Dubai and Hong Kong and a representative offi
ce in
Shanghai.

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 unit11

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

12

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.

Board of Directors
The members of the Board are
Dr. Adarsh Kishore

Chairman

Smt. Shikha Sharma

Managing Director & CEO

Shri S. K. Chakrabarti

Deputy Managing Director

Dr. R.H. Patil

Director

Smt. Rama Bijapurkar

Director

Shri R.B.L. Vaish

Director

Shri M.V. Subbiah

Director

Shri K. N. Prithviraj

Director

Shri V. R. Kaundinya

Director

Shri S. B. Mathur

Director

Shri Prasad R. Menon

Director

Shri R. N. Bhattacharyya

Director

Shri Samir K Barua

Director

SHAREHOLDING (as on March31,2011)

13

Shareholding pattern (Per cent)


2010

Promoters
Fll
Dll
Others

June 2010
37.7
36.3
6.5
19.5

September 2010
37.5
37.2
5.5
19.7

14

December 2010
37.4
36.6
5.3
20.8

March 2011
37.2
37.7
5.1
20.0

Above charts show, Axis Banks net advances are skewed towards the corporate segment,
of which the financial industry, infra, power, and metal together make up around 42%. Only
20% of the net advances are in retail banking, with a major exposure to the housing segment
followed auto loans. Each of them (corporate and retail banking) contributes 23% to the net
revenue of the Bank.

MISSION AND VALUES


15

OUR VALUES
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.
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

MARKETING OBJECTIVES
Axis Bank wants to achieve following marketing objectives by the end of the year 2011.

To get the market capitalization 500 Crore


To get the 200 Crore retail investment
To get 125 Crore Corporate investments
To get the 175 Crore Capital investments

16

MAJOR PLAYER IN THE BANKING INDUSTRY

HDFC
HISTORY
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

BUSINESS SUMMARY
HDFC Bank Limited offers a range of commercial and transactional banking services, and
treasury products to wholesale and retail customers. It operates in three segments:

Retail Banking,
Wholesale Banking,
Treasury Services.

WHOLE SALE BANKING SERVICES


The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corporate to small & mid-sized corporate and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including

Working capital finance,


Trade services,
Transactional services,
Cash management,

RETAIL BANKING SERVICES


17

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to the customers through the growing branch network, as well as through alternative delivery
channels like

ATMs,
Phone Banking,
Net Banking,
Mobile Banking.

TREASURY
Within this business, the bank has three main product areas

Foreign Exchange and Derivatives,


Local Currency Money Market & Debt Securities,
Equities.

ICICI
HISTORY

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution,
and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced
to 46%through a public offering of shares in India in fiscal 1998, an equity offering in
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of
Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by
ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the
initiative of the World Bank, the Government of India and representatives of Indian industry.
The principal objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses. In the
1990s, ICICI transformed its business from a development financial institution offering only
project finance to a diversified financial services group offering a wide variety of products
and services, both directly and through a number of subsidiaries and affiliates like ICICI
Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. After consideration of various
18

corporate structuring alternatives in the context of the emerging competitive scenario in the
Indian banking industry, and the move towards universal banking, the managements of ICICI
and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be
the optimal strategic alternative for both entities, and would create the optimal legal structure
for the ICICI group's universal banking strategy. The merger would enhance value for ICICI
shareholders through the merged entity's access to low-cost deposits, greater opportunities
for earning fee-based income and the ability to participate in the payments system and
provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless access to
ICICI's strong corporate relationships built up over five decades, entry into new business
segments, higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001,
the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its
wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI
Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of
ICICI and ICICI Bank in January2002, by the High Court of Gujarat at Ahmedabad in March
2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April
2002. Consequent to the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity.
Performance Review Quarter and year ended March 31, 2010

35% year-on-year increase in standalone profit after tax to Rs. 1,006 crore for
the quarter ended March 31, 2010 from

Rs. 744 crore for the quarter ended March 31, 2009
Highest ever consolidated profit after tax of Rs. 4,670 crore for the year ended
March 31, 2010; 31% increase from Rs.

3,577 crore for the year ended March 31, 2009


Current and savings account (CASA) ratio increased to 41.7% at March 31,
2010 from 28.7% at March 31, 2009

Net non-performing asset ratio decreased to 1.87% at March 31, 2010 from

1.96% at March 31, 2009 and 2.19% at December 31, 2009


Strong capital adequacy ratio of 19.4% and Tier-1 capital adequacy of 14.0%
Dividend of Rs. 12 per share proposed

Balance sheet

19

During the year ended March 31, 2010, the Bank has significantly strengthened its
deposit franchise. This is reflected in the strong growth in savings and current
account deposits and increase in the CASA ratio. The Bank continues to invest
in expansion of its branch network to enhance its deposit franchise and create
an integrated distribution network for both asset and liability products.
CASA deposits increased 34% to Rs. 84,216 crore (US$ 18.8 billion) at March 31,
2010 from Rs. 62,668 crore (US$ 14.0 billion) at March 31, 2009 and the CASA
ratio increased from 28.7% at March 31, 2009 to 41.7% at March 31, 2010. Total
deposits of the Bank were Rs. 202,017 crore (US$ 45.0 billion) at March 31,
2010, compared to Rs. 218,348 crore (US$ 48.6 billion) at March 31, 2009.
The branch network of the Bank has increased to 1,741 branches at April 24, 2010
giving the Bank a wide distribution reach in the country.
The loan book of the Bank decreased to Rs. 181,206 crore (US$ 40.4 billion) at
March 31, 2010 from Rs. 218,311 crore (US$ 48.6 billion) at March 31, 2009
mainly due to the repayments from the retail loan portfolio and the loan
portfolio of overseas branches.

SBI
HISTORY

The origin of the State Bank of India goes back to the first decade of the nineteenth century
with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806.Three years later
the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809).
A unique institution, it was the first joint-stock bank of British India sponsored by the
20

Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July
1843) followed the Bank of Bengal. These three banks remained at the apex of modern
banking in India till their amalgamation as the Imperial Bank of India on 27 January
1921.Primarily Anglo-Indian creations, the three presidency banks came into existence either
as a result of the compulsions of imperial finance or by the felt needs of local European
commerce and were not imposed from outside in an arbitrary manner to modernize India's
economy. Their evolution was, however, shaped by ideas culled from similar developments
in Europe and England, and was influenced by changes occurring in the structure of both the
local trading environment and those in the relations of the Indian economy to the economy of
Europe and the global economic framework.

BUSINESS SUMMARY
The business of the banks was initially confined to discounting of bills of exchange or
other negotiable private securities, keeping cash accounts and receiving deposits and
issuing and circulating cash notes. Loans were restricted to Rs. one lakh and the period
of accommodation confined to three months only. The security for such loans was public
securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not
of a perishable nature' and no interest could be charged beyond a rate of twelve per cent.
Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist
and silk goods were also granted but such finance by way of cash credits gained momentum
only from the third decade of the nineteenth century.

All commodities, including tea, sugar and jute, which began to be financed later, were either
pledged or hypothecated to the bank. Demand promissory notes were signed by the
borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against
shares of the banks or on the mortgage of houses, land or other real property was, however,
forbidden. Indians were the principal borrowers against deposit of Company's paper, while
the business of discounts on private as well as salary bills was almost the
exclusive monopoly of individuals Europeans and their partnership firms. But the main
function of the three banks, as far as the government was concerned, was to help the latter

21

raise loans from time to time and also provide a degree of stability to the prices of
government securities.

SERVICES PROVIDED

PERSONAL BANKING:
AGRICULTURAL BANKING
CORPORATE BANKING
NRI BANKING

22

INDIAN OVERSEAS BANK


HISTORY
Indian Overseas Bank (IOB) was founded on February 10, 1937 by Shri.M.Ct.M.
Chidambaram Chettyar. IOB had the unique distinction of commencing business on the
inaugural day itself in t h r e e b r a n c h e s s i m u l t a n e o u s l y - a t K a r a i k u d i a n d
C h e n n a i i n I n d i a a n d R a n g o o n i n B u r m a (presently Myanmar) followed by a
branch in Penang.
Indian Overseas Bank was the first Bank to venture into consumer credit. It introduced the
popular Personal Loan scheme. In 1964, the Bank made a beginning in computerization in
the areas of inter-branch reconciliation and provident fund accounts. IOB was one of the 14
major banks that were nationalized in 1969. On the eve of Nationalization in 1969, IOB had
195branches in India with aggregate deposits of Rs 67.70 crores and Advances of Rs 44.90
crores. In1977, IOB opened its branch in Seoul and the Bank opened a Foreign Currency
Banking Unit in the free trade zone in Colombo in 1979.As of March 2003, IOB had 1427
branches in India and 6 branches overseas. Besides the Bank has a network of over 240
ATMs and 243 Extension Counters. IOB has specialized branches to cater to the exclusive
needs of Commercial & Industrial credit, Industrial finance, Small Scale industries, hi-tech
agriculture and foreign exchange.

SERVICES PROVIDED

Saving Bank Deposits


No Frills SB Accounts
Current Account
Fixed Deposit
Reinvestment Deposit
Recurring Deposit Account
Annuity Deposit Plan
Multiple Investment Scheme
Cumulative Benefit Deposit
Multiple Deposit Account

23

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 market place?


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
24

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

Consumer Loan

Investments:
Online Trading
Mutual Funds
Fixed Income
Depository Services
E Depository Services

Account.

Insurance:
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

25

Health Insurance
Family Health
Health Guard
Hospital Cash

PRICES
The second P in the formula is price. Develop the habit of continually examining and
reexamining 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 fastchanging market place.
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
at9.25 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)

26

Description of Charges
Minimum Average Quarterly

Regular Savings Account


Rs 5000 (urban),

Balance

Rs 2500(Semi Urban),
Rs 1000 (Rural branch),
Rs 500 (student account)
Rs750 per quarter(urban & semi urban)

Charges on non maintenance thereof

Rs 500 (Rural branch),


Rs 250 (student account)
Free

Cheque Book, Pass Book Issuance

Account Statements

Free

Phone banking and Net banking

Free

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.

27

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

1281 branches and extension counters foreign offices in Singapore, Hong


Kong, Shanghai and Dubai
6270 ATMs reaches out to 34 states and union territories 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.

28

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.

29

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
aboutRs.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.

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, and 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).
30

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.

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

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 will 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.

31

Growth Prospects of Axis


Over the last five years, the CAGR for loan growth for the banking industry has been 25-26 per
cent; for Axis Bank it has been above 40 per cent.
Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1.7x the industry
average.
In FY09 its advances grew at the rate of 37.5 per cent.
In FY10 they are expected to grow at the rate of 27-28 per cent and in

FY11 at 25 per cent.

For the banking industry as a whole, the loan book is expected to grow at 18 per cent in FY10
and 16 per cent in FY11.
Thus, Axis Banks fast pace of growth is expected to sustain over the next couple of years.

Marketing Objectives
Axis Bank wants to achieve following marketing objectives by the end of the year 2011.

To get the market capitalization 500 Crore


To get the 200 Crore retail investment
To get 125 Crore Corporate investments
To get the 175 Crore Capital investments

32

Net Revenue Segmentation (FY 10)

In FY10, treasury operations contributed ~54% of total revnue, retail ban


king ~23% and corporate/ wholesale banking ~23%. In December 2008,
the bank launched
its new investment advisory service exclusively for high networth clients.
In January 2009, the bank set up Axis Asset Management Company to c
arry on the activities of managing a mutual fund business. Alsoit incorpor
ated Axis Mutual
Fund Trustee Ltd to act as the trustee for the mutual fund business.
In February 24, 2010, the bank launched Call & Pay,a mobile payments
solution using Axis debit cards.
Axis is the countrys first bank to provide a secure debit cardbased paymen
t service over interactive voice response (IVR).

33

ACHIEVEMENTS / AWARDS
March 2011

Bank launches e-Wallet Card

September 2009

Bank launches private banking business


in the domestic market to cater to highly
affluent individuals and families
Axis Bank launches Platinum credit card,
Indias first EMV chip based card

March 2008
September 2007

Axis Bank ties up with Privee Edmond de


Rothschild Europe for Wealth
Management
UTI Bank re-brands itself as Axis Bank

July 2007
July 2007

UTI Bank ties up with Tata Motors Ltd. for


Car Loans
UTI Banks expansion into Asia
supported by FRS

June 2007
April 2007

UTI Bank opens a Financial Services


Category I Branch in the DIFC in Dubai

April 2007

UTI Bank ties up with Hyundai Motor


India Ltd. for Car loans
UTI Bank ties up with IIFCL to provide
finance for infrastructure projects in the
country
UTI Bank launches Car Loans in
association with Maruti Udyog Ltd.

March 2007

March 2007
August 2006

UTI Bank becomes the first Indian bank


to successfully issue Foreign Currency
Hybrid Capital in the International Market
UTI Bank opens Representative Office in
Shanghai
UTI Bank and LIC join hands to launch
an Annuity Card for group pensioners of
LIC
UTI Bank ties up with Geojit Financial
Services to offer Online Trading services
to its customers
UTI Bank opens its first international
branch in Singapore

July 2006
May 2006

May 2006

April 2006

34

December 2005

UTI Bank wins International Financing


Review(IFR) Asia India Bond House
award for the year 2005
UTI Bank and Bajaj Allianz join hands to
distribute general insurance products

May 2005
March 2005

UTI Bank gets listed on London Stock


Exchange, raises US$ 239.30 million

February 2005

UTI Bank appointed by Govt. of Karnataka


as the sole banker for the Bangalore One
(B1) project

February 2004

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 inaugurated its ATM at Thegu near
the Nathula Pass in Sikkim. This ATM is at
the highest altitude in India
The Banks Debit Card crosses 1 million
mark
Total advances crosses Rs. 7000 crore
Banks declares a net profit of Rs. 192.18
crores for FY 03, a growth of 43% over the
previous year
Bank in a pioneering move, launches the
AT PAR Cheque facility, free of cost, for all
its Saving Bank customers
Bank wins mandate to set up 14 ATMs at
the Western Railway Stations along the
Mumbai division
Bank signs MoU with BSNL regarding bill
collection services across the country
through both online and offline channels
Deposits Cross Rs. 12000 crore
The Banks 100th branch opens at Tuticorin,
Tamil Nadu
The Bank opens an ATM at Gol DakKhana, 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.

December 2003

August 2003
August 2003
May 2003

February 2003

February 2003

August 2002

March 2002
January 2002

January 2002

35

July 2001

Bank ties up with Govt. of Andhra Pradesh


for collection of commercial tax

December 2000

Bank opens its 200th ATM. It becomes the


2nd largest ATM network in the country , a
position held even today

October 2000

Bank becomes fully networked

April 2000

UTI Bank calls off its proposed merger with


Global Trust Bank and surges ahead on its
own
Completes first profitable year in operation

March 1995
April 1994

First branch of UTI Bank inaugurated at


Ahmedabad by Dr. Manmohan Singh,
Honble then Finance Minister of India

December 1993

Registered office at Ahmedabad; Head


office in Mumbai

36

CHAPTER IV

RESEARCH METHODOLOGY

37

OBJECTIVES OF STUDY

Banking and finance can be called as the nerves of any economic


system as they accelerate the process of economic development
through canalization of adequate finace. It is hard to anticipate
development of efficient banking services in the country. No doubt
financial institutions play so important in economic development but
at the some time economic development determines the growth and
development of banking institutions the role of various kind of
banking

institution.

In

economic

development

need

not

be

emphasized.
Main objective of the study is to Critical appraisal of product &
services offered by axis bank. Some of the major objectives of the
study include the determination of the following:

Consumer awareness about the products and services provided


by the axis bank.
Consumer preference about various products and services.
Customers perception towards private Banking and their
expectations from private banks.
Customer satisfaction with the service provided by the bank.
Draw out with conclusions and suggestion based on the
analysis and the interpretation of data.

38

TYPE OF RESEARCH
Research is one of the most important parts of any study and
pertains to the collection of information and knowledge. Marketing
research is defined as the systematic design, collection, analysis,
and reporting of data and findings relevant to a specific marketing
situation facing the company. My project has been developed on has
basis of both exploratory and descriptive research. The research
process depends upon developing the most efficient plan for
gathering the needed information. Designing a research plan calls
fro decisions on the data sources, research approaches, research
instruments, sampling paln, and contact methods.

SAMPLE SIZE AND METHOD OF SELECTING SAMPLE


I chose a sample size of 40 respondents consisting of based on
judgment sampling All respondents were the customers of Axis
Bank. The method was simple random sampling.

Data Source
For this project both primary and secondary data were valuable
sources of information.

Secondary data
Secondary data provides a starting point for any research and offers
valuable sources of already existing information. Secondary data are
the easiest to gather and the cost of collecting this data is also very
low. For my project work it was collected through the help of various
directories

of

various

associations,
39

magazines,

newspapers,

websites etc. The directories helped me in short lisitng people, for


my target people.
Some of the directories made use of are as follows:
Telephone directory
Income tax office
City directory
Chartered accountant directory
Carpet industries directory
Indian medical association directory
Transporter directory
Lawyers directory
Builders & constructors directories

Primary data
Primary data are data freshly gathered for a specific purpose. For my
project work the primary data was collected by means of survey
though questionnaires.
Contact methods
Once the client had been decided now my task was how to contact
them, and for me there only two ways of contacting them.
1.

Personal

interview:-

this

method

was

the

most

appropriate way of survey, because by personal interview


I came to know about their feeling for Axis Bank.
2.

Telephone:- This method was also used by me once or


twice, keeping in mind the busy schedule of a few
respondents.

40

41

SCOPE OF STUDY
Axis Bank is one of the most famous banks in India. The various
products and services offered by it include:
PRODUCT
Deposits (Saving account and current account)
Loans
Card
SERVICES
ATM
Mobile Banking
Internet Banking
Payment
Other Services
The deposit mix of an organization especially the Saving accounts
are the backbone of every bank as an ordinary man is most inclined
to invest in it due to its convenience and easy availability. This
project deals with the various customer concerns regarding these
and tries to suggest appropriate suggesting based on conclusions. I
hope that this report would be able to suggest some measures and
draw attention of bank towards the area of improvement.
Limitations of Study
The study was based on a very modest sample size hence
cannot be called as a representation of the views and opinion
of the majority.
In a rapidly changing industry, analysis on one day or in one
segment can change very quickly. The environmental changes
are vital to be considered in order to assimilate the findings.
The conclusion arrived at are based on a very less experience
of researcher in this field.

42

CHAPTER V

ANALYSIS AND INTERPRETATION

43

Some ratios that are relevant for evaluating banks


include

Credit to deposit ratio

Capital adequacy ratio

Non-performing asset ratio

Provision coverage ratio

Return on assets ratio


We thought it would be an interesting idea to look and compare these numbers for the
leading private (HDFC Bank, ICICI Bank and Axis Bank) and public sector (SBI, Punjab
National Bank and Bank of Baroda) banks. In addition, we will also see how the same ratios
have changed over the past few years.

Credit to deposit ratio: This ratio indicates how much of the advances lent by
banks is done through deposits. It is the proportion of loan-assets created by banks from the
deposits received. The higher the ratio, the higher the loan-assets created from deposits.
Deposits would be in the form of current and saving account as well as term deposits. The
outcome of this ratio reflects the ability of the bank to make optimal use of the available
resources.

44

If we see the following chart, ICICI Bank distinctly stands out from its peers. A strong reason
for the same would be its aggressive nature. Further, PSU banks and Axis Bank have seen
their ratios increase gradually over the years. The credit to deposit ratio of HDFC Bank on
the other hand, has been fairly stable.

Capital adequacy ratio: A bank's capital ratio is the ratio of qualifying capital to
risk adjusted (or weighted) assets. The RBI has set the minimum capital adequacy ratio at
9% for all banks. A ratio below the minimum indicates that the bank is not adequately
capitalized to expand its operations. The ratio ensures that the bank do not expand their
business without having adequate capital.
It must be noted that it would be difficult for an investor to calculate this ratio as banks do not
disclose the details required for calculating the denominator (risk weighted average) of this
ratio in detail. As such, banks provide their CAR from time to time.
Considering that the Indian banking sector has been growing at a strong pace, all the
leading banks, both private and public have been expanding operations at a strong pace. As
such, their CAR ratios are well above the prescribed limit of 9%. Private Banks such as
HDFC Bank, Axis Bank and ICICI Bank have in fact increased their CAR over the past four
to five years.

As for the public banks, SBI and Punjab National Bank (PNB) have seen their CAR steadily
45

expand over the past few years as well. However, this ratio for Bank of Baroda has been
fairly stable.

46

Non-performing asset ratio: The net NPA to loans (advances) ratio is used as
a measure of the overall quality of the banks loan book. An NPA are those assets for which
interest is overdue for more than 90 days (or 3 months). Net NPAs are calculated by
reducing cumulative balance of provisions outstanding at a period end from gross NPAs.
Higher ratio reflects rising bad quality of loans.

The NPA ratio is one of the most important ratios in the banking sector. It helps identify the
quality of assets that a bank possesses. If we look at the chart below, we can clearly see a
differentiation between Indias largest banks. A bank such as ICICI Bank would garner one of
the highest NPA ratios amongst private banks on the back of its aggressive nature. As the
banks lends out strongly to customers, the chances of them defaulting also rises. Plus,
considering that private banks charge higher interest costs would only make things more
difficult for its customers. At the same time, the NPA ratio of a relatively much conservative
bank such as HDFC Bank would remain low. It is clearly evident from the above chart. The
marginal spurt in this ratio during FY09 is due to its acquisition of Centurion Bank of Punjab.
Further, Axis Bank has done well in the recent past to bring down its NPA ratio. So is the
case for Bank of Baroda (BoB). PNB has done well to keep its NPA levels low as well. As for
Indias largest bank SBI, its NPAs are relatively much higher than that of its PSU peers. This
can also be attributed to its aggressive period over the past few years.

Provision coverage ratio: The key relationship in analyzing asset quality of the
bank is between the cumulative provision balances of the bank as on a particular date to
gross NPAs. It is a measure that indicates the extent to which the bank has provided against
the troubled part of its loan portfolio. A high ratio suggests that additional provisions to be
made by the bank in the coming years would be relatively low (if gross non-performing
assets do not rise at a faster clip).
47

On observing the above chart, we can notice that private banks such as HDFC Bank & ICICI
Bank as also PNB and Bank of Baroda have been quite conservative when it comes to
covering their NPAs. Axis Bank on the other hand has been extra conservative in the past
few years. This explains the reason for the sharp improvement in the NPA ratio as well. The
same can however, not be said about SBI, which is the only large bank which has seen its
provision coverage ratio deteriorate over the past four years.

Return on assets ratio: Returns on asset (ROA) ratio is the net income (profits)
generated by the bank on its total assets (including fixed assets). The higher the proportion
of average earnings assets, the better would be the resulting returns on total assets.

While HDFC Bank has done well to maintain its ROAs over the past few years, that of ICIC
48

Bank has been gradually on a decline. The other banks, has however done well to improve
their return ratio over the past few years.

49

The Most Social Media Friendly Private Bank in India

Although HDFC Bank is ahead of the competition, Indias number one private sector bank;
ICICI is giving it a tough fight in the social media space too. Axis Bank and Yes Bank are at

50

third and fourth spot, respectively. The detailed numbers are in the table below

51

Competitive Position

52

Fixed Deposit Rates of Various Banks

Base Rates

53

54

Balance Sheet

------------------- in Rs. Cr. ------------------Axis Bank HDFC Bank ICICI Bank

Kotak
Mahindra

IndusInd Bank

Mar '11

Mar '11

Mar '11

Mar '11

Mar '11

Total Share Capital

410.55

465.23

1,151.82

368.44

465.97

Equity Share Capital

410.55

465.23

1,151.82

368.44

465.97

Share Application Money

0.00

0.00

0.29

0.00

7.98

Preference Share Capital

0.00

0.00

0.00

0.00

0.00

18,588.28

24,914.04

53,938.82

6,464.95

3,350.92

0.00

0.00

0.00

0.00

225.35

18,998.83

25,379.27

55,090.93

6,833.39

4,050.22

Capital and Liabilities:

Reserves
Revaluation Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities & Provisions
Total Liabilities

189,237.8
0

208,586.41 225,602.11 29,260.97 34,365.37

26,267.88
215,505.6
8

14,394.06 109,554.28 11,723.95

222,980.47 335,156.39 40,984.92 39,890.79

8,208.86
242,713.3
7

5,525.42

28,992.86

15,986.35

3,032.36

1,694.83

277,352.60 406,233.67 50,850.67 45,635.84

55

Axis
Bank

HDFC
Bank

Mar '11

Mar '11

ICICI
Kotak
Bank Mahindra

Mar '11

Mar '11

IndusInd
Bank

Mar '11

Assets
Cash & Balances with RBI
Balance with Banks, Money
at Call
Advances

13,886.16

25,100.82 20,906.97

7,522.49
142,407.8
3

4,568.02

2,107.72 2,456.04

13,183.11

363.26 1,568.56

159,982.67 216,365.90

29,329.31 26,165.65

70,929.37 134,685.96

17,121.44 13,550.81

Investments

71,991.62

Gross Block

3,426.49

5,244.21

9,107.47

831.80

971.26

Accumulated Depreciation

1,176.03

3,073.56

4,363.21

406.20

399.20

Net Block

2,250.46

2,170.65

4,744.26

425.60

572.06

22.69

0.00

0.00

0.00

24.41

Capital Work In Progress


Other Assets
Total Assets

Contingent Liabilities
Bills for collection
Book Value (Rs)

4,632.12
242,713.3
7

429,069.6
3

14,601.08 16,347.47

1,503.33 1,298.32

277,352.61 406,233.67

50,850.66 45,635.85

559,681.87 883,774.77

12,291.30 79,647.25

28,869.10 47,864.06

4,470.06 7,860.30

57,400.80
462.77

56

545.53

478.31

92.74

81.95

Comparison of various Banks


Name

Last Price Market Cap.


(Rs. cr.)

Net Interest
Income

Net Profit Total Assets

HDFC Bank

471.40

110,167.83

19,928.21

3,926.39

277,352.61

ICICI Bank

821.00

94,607.93

25,974.05

5,151.38

406,233.67

Axis Bank

1,049.50

43,283.77

15,154.81

3,388.49

242,713.37

Kotak Mahindra

502.35

37,105.96

4,303.56

818.18

50,850.66

IndusInd Bank

261.55

12,202.94

3,589.36

577.32

45,635.85

YES BANK

293.65

10,308.46

4,041.74

727.13

59,007.00

Federal Bank

390.70

6,682.83

4,052.03

587.08

51,456.37

ING Vysya Bank

320.10

4,795.15

2,694.06

318.65

39,013.98

Karur Vysya

378.45

4,056.24

2,217.69

415.59

28,224.84

JK Bank

817.25

3,961.85

3,713.13

615.20

50,508.15

South India Bk

23.00

2,599.26

2,446.01

292.56

32,820.21

StanChart IDR

81.55

1,957.20

City Union Bank

44.00

1,789.54

1,218.41

215.05

14,591.52

Karnataka Bank

79.80

1,501.98

2,370.84

204.61

31,693.01

Lakshmi Vilas

97.95

955.59

1,064.84

101.14

13,301.19

DCB

40.10

802.99

536.26

21.43

7,372.33

Dhanlaxmi Bank

63.95

544.45

906.42

26.06

14,268.16

Goldman BEES

2,774.35

284.66

57

- 1,945,725.80

Financial Performance of Axis Bank


The net interest income (NII) of Axis Bank, over the last 10 years, has rocketed by
54.8% CAGR from Rs. 98 Cr. in FY01 to Rs. Rs. 5004 Cr. in FY10; and its total
income has grown by 34.9% CAGR. During the same period its book value and EPS
have jumped by 37% and 28% resp.
The bank has maintained its net profit to total fund ratios between 1 and 1.25 during
FY05 to FY08, whereas in the last two financial years, this ratio has been above
1.25. This increasing trend of net profit to total fund ratio shows that it has
continuously increased its efficiency of utilizing funds. The non-performing assets
(NPA) to net advances ratio has also shown a decreasing trend from 3.46% in FY02
to 0.4% in FY10 which shows the bank has continuously increased its assets quality.
It has also maintained a very good capital adequacy ratio (CAR) of 15.8% at the end
of FY10, well above the RBI guide line of 9%, which indicates that it can easily cover
all the associated risks.

Hence, the 10 YEAR X-RAY of Axis Bank is Green (Very


Good).

58

Analysis of Axis Bank Ltd


In the short-term
Axis Banks target for FY11: -

Business growth (Advances + Deposits) of 25%


Opening 200-250 new branches and 1000 new ATMs

Axis Bank has reported a strong performance in December, 2010 quarter:

It has shown a 36% jump in the Net Profit at Rs. 891.36 Cr. and a 28% rise in the Net

Interest Income to Rs. 1733.12 Cr. on the back of robust 46% credit growth.

The other income of the Bank inched up by 16% to Rs. 1147.71 Cr. mainly on the back of

21%

jump

in

the

fee

income

at

Rs.

968

Cr.

CAR has decreased to 12.46% in Q3 FY11, compared to 16.8% in the same quarter last

year.

Its Net Interest Margin (NIM) stood at 3.81% during Q3 FY11, compared to 4% during

Q2FY10

(much

higher

than

the

industry

standard

of

2-2.5%).

The net NPAs of Axis Bank stood at 0.29% in Q3 FY11, which is amongst the lowest in

the banking industry; the provision coverage ratio stood at 82.69%, much higher than the
regulatory requirement of 70%.

Advances of the Bank have reported a strong growth of 46% on y-o-y basis and 12%
on q-o-q basis to Rs. 123547 Cr. in the December 2010 quarter. The growth in the
advances was driven by 69% jump in the corporate segments at Rs. 70518 Cr. and 33% rise
in the retail segment at Rs. 25204 Cr. Agri & microfinance loan book grew by 24% to Rs.
10772 Cr. and SME by 9% to Rs. 17053 Cr. Exposure to the Microfinance institutions is

59

around 1% of advance book and that of telecom (mainly 2G license advances) constitutes
6% of total advance book.
For the nine months ended December 2010, Axis Bank has reported 37% rise in the NII at
Rs 4861.99 Cr., 19% in fee-based income at Rs. 2559 Cr., and 6% in the other income at Rs
3181.73 Cr. compared to that of corresponding quarter last year respectively. In FY11, so far,
it has opened 142 branches and 1010 ATMs. Thus, the bank is on line to achieve its target
for FY11.

Increasing cost of funds is a cause for concern:


The RBI has increased the Repo rate, Reverse repo rate, and CRR in the last one and a half
year in several phases to control inflation. This has lead to lower loan able fund availability in
the bank and continuous increase in cost of funds, which can be seen in the chart. As, the
inflation rate is still on the higher side, tight monetary policy is expected to continue in the
short-term. So, we expect that the cost of funds will also increase further in the short-term,
which will keep margins under pressure.
RBI, recently, has increased provisioning percentage on housing, real estate, and many
other types of loans. This will affect the profitability of the bank because, in the retail
segment, it finances almost 70% advances in housing.
Considering above factors, we expect that the short-term future prospects of Axis
Bank will be Orange (somewhat good)
Strength of Axis Bank:

It is Indias third largest private bank, with 1281 branches and 5303 ATMs, and a

customer base of over 150 Lakh as on 31st Dec, 2010

It has the largest EDC network, the third largest ATM network, and the fourth largest

base of debit cards in India.

60

It already has branches in Singapore, Hong Kong and Dubai International Financial

Centre. About 14% of the banks asset book is from international operations. It is further
going to set up a subsidiary in London and upgrade its representative office in
Shanghai

100%

to
core

banking

a
facilities

with

branch.
advanced

technology

On-line trading facilities in alliance with Geojit BNP Paribas

In Jan 2011, Axis Bank, , announced the launch of AxisDirect, an online trading
platform a product of its wholly-owned subsidiary, Axis Securities and Sales Ltd. AxisDirect
will offer trading in cash, derivatives, IPO segments through NSE and BSE; and provide wellresearched information about various corporate, access to independent third-party research,
stock research and analysis tools.

Axis Bank has maintained a very good Current Account Savings Account (CASA)
ratio, above 40% in the last three years, which is higher than the industry standard of
35-40%. CASA plays a very significant role in keeping cost of funds low and margins
high. Only four other banks SBI, PNB, HDFC Bank, and ICICI Bank have more that
40% CASA ratio.
Product strategy designed to benefit customers:
To beat the market, Axis Bank is adopting different product strategies. Recently, it has
extended the repayment period of the standard home loan to the maximum tenure of 25
years. In the step down product (a type of home loan product), the customer has to pay a
higher EMI when the combined family income is higher and a lower EMI when the family
income has reduced over a period of time. Apart from this, the Bank has given option to its
customers to close the loan before its maturity with no prepayment penalty.

61

Banking Sector Heading towards a high-performing sector:


The banking sector is poised to grow in line with the growth of the economy. The Indian
economy is expected to have a high growth in the long-term and so is the Indian banking
sector, which is currently in consolidation stage. According to Mckinsey Report on India
Banking 2010, The banking index has grown at a compounded annual rate of over 51%
since April 2001 as compared to a 27% growth in the market index for the same period
(2001 to 2010). The report says that the Indian banking sector is heading towards a highperforming sector. Axis Bank, being the third largest private bank in India, is ready to take full
advantage of this growth opportunity.
Financial Inclusion Program:
Under Financial Inclusion Program, RBI is taking initiative to provide banking services at
affordable costs to the weaker sections of society or the unbanked segment, which does not
have any access to the formal banking system. As of now, it is estimated that 60% of the
Indian population does not have access to formal banking facility and RBI is keen on
achieving 100% financial inclusion for sustaining equitable growth. Axis Bank is taking
following initiatives under this Program:
Targets to cover 12,000 villages in the next 5 years: Axis Bank plans to cover

5,500 villages for financial inclusion by March 2011 and scale it up to 12,000 villages in five
years time. It is looking at opening 18-lakh no-frills accounts, Rs. 40 Cr. of deposits, and Rs.
10 Cr. of advances. The 18-lakh account would include 12-lakh accounts that they have
already opened for government-sponsored scheme. The bank is looking at several low-cost
delivery models such as smart card, mobile banking and point of transaction device.
Tie up with Janalakshmi Social Services to tap urban poor: To tap unbanked

population in urban areas, Axis Bank has tied up with a Bangalore-based microfinance
institution, Janalakshmi Social Services. Janalakshmi will use its client base to provide
banking services of Axis Bank and will work as business correspondent to sell other products
of the Bank. This service would be spread from Bangalore to 50 other cities in the near
future.
o

MoU with Idea to test a Branchless Banking Model: Axis Bank has signed a
Memorandum of Understanding with Idea Cellular to test a Branchless Banking model
through a mobile enabled remittance pilot. Idea will act as a Business Correspondent of
Axis Bank to provide an entire range of financial products and services offered by the Bank,
through the mobile operators retail outlets. Ideas network will help Axis Bank gain access to
widespread distribution reach and a low-cost delivery channel for offering financial products
62

and services, based on the mobile platform. On the other hand, Idea can offer value-added
services to its customers by offering financial products and services.
There is still a question mark on the viability of Financial Inclusion Program which
primarily targets the low-income group. This leaves little scope of high margins under
this program. However, this initiative is expected to help in economic development,
and hence is expected to be fruitful in the long-term.

Diversified into non-banking financial services:


Axis Bank has started non-banking financial services to carry out investment and lending
activities with a focus on infrastructure and other activities. It has five wholly-owned
subsidiaries:
1. Axis Securities and Sales Ltd. to market credit cards , retail asset products and online
trading facilities
2. Axis Private Equity Ltd to manage equity investments & provide venture capital to
support businesses
3. Axis Trustee Services Ltd to engage in trusteeship activities
4. Axis Asset Management Companies Ltd. to carry on the activities of managing
mutual fund business
5.

Axis Mutual Fund Trustee Ltd. to act as the trustee for the mutual fund business

Acquisition of Enams investment banking business expected to fill the gap in their
portfolio:
Axis Bank has acquired Enams investment banking and institutional broking businesses for
R.s 2,064 Cr. in a stock-swap deal. Pursuant to the scheme and in consideration for the
proposed demerger, Enam shareholders will receive 5.7 shares of Axis Bank for every 1
share held in Enam; translating into an approximately 3.37% shareholding in Axis Bank.
While the acquisition appears to be at a slight premium, it will help Axis Bank fill a key gap in
portfolio, increase fee-based income and bring significant long-term benefits. Also, as these
businesses are profit-making and enjoy one of the highest margins in the industry, they will
contribute to Axis Banks profits and will be earnings accretive.

63

SWOT ANALYSIS
STRENGTHS

Axis bank has been given the rating as one of top three positions in terms
of fastest growth in private sector banks

Financial express has given number two position and BT-KPMG has rated
AXIS bank as the best bank with some 26 parameters

The bank has a network of 1,787 domestic branches and 10,363 ATMs

The bank has its presence in 971 cities and towns

The banks financial positions grows at a rate of 20% every year which is a
major positive sign for any bank

The companys net profit is Q3FY12 is 1,102.27 which has a increase of


25.19% growth compared to 2011

WEAKNESSES

Gaps Majorly they concentrated in corporate, wholesale banking,


treasury services, retail banking

Foreign branches constitute only 8% of total assets

Very recently the bank started focusing its attention towards personal
banking and rural areas

The share rates of AXIS bank is constantly fluctuating in higher margins


which makes investors in an uncomfortable position most of the time

There are lot of financial product gaps in terms of performance as well as


reaching out to the customer

64

OPPORTUNITIES

Acquisitions to fill gap

In 2009, Alliance with Motilal Oswal for online trading for 10 million
customers

In 2010, acquired Enam Securities Pvt Ltd broking and investment


banking

In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund
business

No. of e-transactions increased from 0.7 million to around 2 million

Geographical expansion to rural market 80% of them have no access to


formal lending

46% use informal lending channels

24% unregulated money lenders

Now number of branches increased to 1787.

Last quarter there were 48 new branches opened across the Nation

Since its a new age banking there are lot of opportunities to have the
advance technicalities in banking solutions compared to existing major
players

The assets in their international operations are growing at a very faster


pace with a growth rate of 9%.

The concept of ETM (Everywhere teller machine) by AXIS Bank had a good
response in terms of attracting new customers in personal banking
segment

THREATS

Since 2009, RBI has increased CRR by 100 basis points

Increased repo rate reverse repo rate by 50 points 11 times of late

Increasing popularity of QIPs due to ease in fund raising

RBI allowed foreign banks to invest up to 74% in Indian banking

Government schemes are most often serviced only by govern banks like
SBI ,Indian Banks, Punjab National Bank etc

ICICI and HDFC are imposing strong threats in terms of their expansion in
customer base by their aggressive marketing strategies

65

66

CHAPTER VI

CONCLUSION

67

The study mainly was on the customer orientation that how they think, what they
want from their banks and how they take decision going to any bank.

In this study I found that the bond of Axis Bank with its customers is very strong,
because Axis Bank mainly focuses on retaining their customers.

This study finds that however Axis Bank is not the leading private sector bank but its
vast range of products and availability of options make it one of the better banks in
India.

The bank should focus on the semi urban and rural market because these markets are
very good opportunity for someone like Axis Bank which is in growing face. Without
expanding in these markets Axis Bank can not be a leading bank so they should focus
on this market.

The bank should focus on mass banking in order to increase their market share. They
should launch such products which would be within the reach of the lower middle
class

The bank should pay more attention on giving updates and should increase the level
of service providing because the competitors of axis are better in this area.

The bank should try to increase the use of technology like mobile and net banking
among its customers.

68

CHAPTER VII

SUGGESTIONS & RECOMMENDATION

69

Mostly service class persons prefer the axis bank in the


comparison of business and students and other class persons
thus it needs to promote its product and services that are
offered mainly for the business class people and students.
Because these two class forms major users of the banking
services.

Axis bank is normally not using properly for the current


account so its popularity ratio is quite down. This bank
normally using for the long term planning like saving and FD.

This bank is not investing more into the marketing sector so I


will suggest that some of the part of income it investing in the
advertising and marketing sector.

Into the comparison of other bank its performance is quite


good but not an effective so this may be doing the rates were
down with some other facilities.

70

ANNEXURE

71

Annex: Glossary
ATM
An automated teller machine (ATM) is a machine in which a customer can use his card along
with PIN to get cash, information and other services.
Bank Guarantee
Bank guarantee is a promise by a bank on behalf of its customer to a third party to pay an
amount specified in the guarantee deed in case the customer fails to perform the obligation
as stipulated in the deed.
Banking Ombudsman
Banking Ombudsman is an independent dispute resolution authority set up by Reserve Bank
of to deal with disputes between the bank and individual / small businesses.
Bills
Bills are financial negotiable instruments such as Bills of Exchange or Promissory Notes. Bill
of Exchange is issued by a seller to his buyer directing him to make payment for the goods
supplied / services rendered. Bill in the form of a promissory note is issued by a buyer to his
seller undertaking to make payment for the goods received / service rendered.
Bill discounting
In case of discounting of a bill, a bank buys a bill (i.e. Bill of Exchange or Promissory Note)
before it is due and credits the value of the bill after discount charges to the customers
account. The transaction is practically an advance against the security of the bill and the
discount represents the interest on the advance from the date of purchase of the bill until it is
due for payment. Only usance bills are discounted.
Card
Card is a general term for any plastic card, which a customer may use to pay for goods and
services or to withdraw cash. In this Code, it includes ATM / Debit / Credit Cards.

72

Cash Credit / Overdraft


Cash credit / overdraft is a form of credit facility in which a borrower is sanctioned a prearranged limit with the freedom to borrow as much money as he requires. In case of flow of
credit to the account, he can withdraw afresh subject to the limit sanctioned. As such, the
limit works as a revolving line of credit. Bank charges interest on the outstanding balances.
Cash losses
Cash loss mean net losses minus depreciation.
Cheque Collection Policy
Cheque Collection Policy refers to the policy followed by a bank in respect of various local
and outstation cheques and instruments deposited with the bank for credit to an account.
The policy, inter alia, deals with

Cheque purchase requests.


Time frame for credit of cheques
Payment of interest in case of delay in collection of cheques
Instant credit of local and outstation cheques
Cheque instruments lost in transit

Collateral Security / Security


Collateral are assets pledge / hypothecated / mortgaged by a borrower as a security for a
credit facility. In the event of the borrower defaulting on the loan, the lender bank can claim
these assets in lieu of the sum owed.
Compensation Policy
Compensation Policy refers to the policy followed by a bank for compensating its customers
for the financial losses incurred by them (the customers) due to the acts of omission or
commission on the part of the bank.
Credit facilities / Bank Loan
Credit facilities from the bank may be in the form of a term loan or in the form of overdraft or
cash credit, that is extended by a bank to its customer for a specified period and he is
charged interest on the outstanding balances.

73

Credit reference agencies


Credit reference agency means a credit information company formed and registered under
the Companies Act, 1956 that has been granted a Certificate of Registration under the Credit
Information Companies (Regulation) Act, 2005.
Current Account
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.
Customer
An MSE or its authorized representative who has an account with a bank or who avails of
other products / services from a bank.
Deceased account
A Deceased account is a deposit account in which case either the single account holder has
deceased or in case of joint accounts one or more of joint account holders has / have
deceased.
Demat accounts
A Demat account refers to dematerialized account and is an account in which the stocks of
investors are held in electronic form.
Deposit Accounts:

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 includes deposits
such as Recurring / Double Benefit Deposits / Short Deposits / Fixed Deposits

/Monthly Income Certificate /Quarterly Income Certificate etc.


"Notice Deposit" means term deposit for specific period but withdraw able on
giving at least one complete banking day's notice;

74

Electronic Clearing System


The Electronic Clearing System (ECS) is an online transmission system which permits the
electronic transmission of payment information by the banks / branches to the Automated
Clearing House (ACH) via a communication network.
Equity
Equity means a part of capital of a corporate entity which is represented by the shares of
the company whether in physical or in dematerialized form
Factoring
Factoring is a financial option for the management of receivables. It is the conversion of
credit sales into cash.

Government Bond
Government bond means a security, created and issued, by the Central or State
Government for raising a public loan.
Guarantee
A promise given by a person
Letter of Credit
A letter of credit is a document issued by a bank, which usually provides an irrevocable
undertaking for payment to a beneficiary against submission of documents as stated in the
Letter of Credit.

75

Mail
Mail is a letter in a physical or electronic form.
Merchant Services
Merchant services generally refer to merchant accounts allowed to trading and service
establishments for acceptance of payments through credit / debit cards. The cards may be
accepted over the counter through card terminals i.e. Point of Sale (POS) machines or over
phone or through internet.
Micro and Small Enterprises
Micro and Small Enterprises are those enterprises engaged in manufacturing or rendering
services.
A micro enterprise is defined as:
An enterprise engaged in the manufacture or production of goods pertaining to any industry
where the investment in plant and machinery does not exceed Rs. 25 lakh.
Or
An enterprise engaged in rendering services where investment in equipment does not
exceed Rs. 10 lakh.
A small enterprise is defined as:
An enterprise engaged in manufacture or production of goods pertaining to any industry
where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed
Rs. 5 crore.
Or
An enterprise engaged in rendering services where investment in equipment is more than
Rs. 10 lakhs but does not exceed Rs. 2 crore.
Net worth
Net worth means sum of Capital and free reserves minus accumulated losses.

76

Nomination facility
The nomination facility enables the bank to : make payment to the nominee of a deceased
depositor, of the amount standing to the credit of the depositor, return to the nominee, the
articles left by a deceased person in the bank's safe custody, release to the nominee of the
hirer, the contents of a safety locker, in the event of the death of the hirer.
Non-fund based facility
Non-fund based facilities are such facilities extended by banks which do not involve outgo of
funds from the bank when the customer avails the facilities but may at a later date crystallize
into financial liability if the customer fails to honor the commitment made by availing these
facilities. Non-fund based facilities are generally extended in the form of Bank Guarantees,
Acceptances and Letters of Credit.
Non-Performing Asset
A Non-Performing Asset (NPA) is a loan or an advance where
Interest and / or installment of principal remain overdue for a period of more than 90 days in
respect of a term loan.
The account remains out of order in respect of an Overdraft / Cash Credit (OD/CC).
The bill remains overdue for a period of more than 90 days in the case of bills purchased or
discounted.
Originator
An organization which collects payments from a customers account in line with customers
instructions.
Other security information
A selection of personal facts and information [in an order which the customer knows],which
may be used for identification when using accounts.
Out-of-date [stale] cheque
A cheque, which has not been paid because the date written on the cheque is of a date
exceeding six months from the time of its presentation.

77

PAN
The Permanent Account Number is an all India unique Number having ten alphanumeric
Characters allotted by the Income Tax Department, Government of India. It is issued in the
form of a laminated card. It is permanent and will not change with change of address of the
assessee or change of Assessing Officer.
Password
A word or numbers or a combination or an access Code, which the customer has chosen, to
allow them to use a phone or Internet banking service. It is also used for identification.
Payment and Settlement Systems
Payments and Settlement Systems mean financial system creating the means for
transferring money between suppliers and user of funds usually by exchanging debits or
credits among financial institutions.
PIN [personal identification number]
A confidential number, use of which along with a card allows customers to pay for articles/
services, withdraw cash and use other electronic services offered by the bank.
Repossession
Repossession is the process by which a creditor with a loan secured on house or goods
(e.g. car) takes possession of the security, if the debtor does not repay as per the terms of
the loan agreement.
Rehabilitation Package
Rehabilitation package is the package drawn for the rehabilitation of a sick unit. The
package has to be drawn in accordance with RBI stipulations and it usually consists of

i.
ii.
iii.
iv.
v.

Working Capital with relaxation in the rate of interest in terms of regulatory


guidelines.
Funded Interest Term Loan
Working Capital Term Loan
Term Loan
Contingency Loan Assistance

Security
Represents assets used as support for a loan or other liability.

78

Services

i.

In respect of small and micro service enterprises, services refer to small


road and water transport operators, small business, professional and self-

ii.

employed persons, and all other service enterprises.


Services rendered by the banks include various facilities like remittance
(issue of DDs, MTs, TTs, etc.), receipt and payment of cash, exchange of
notes and foreign exchange, etc. provided by the banks to the customers.

Sick Unit
Sick unit refers to a unit whose account has remained substandard for more than six months
or there has been erosion in net worth due to accumulated cash losses to the extent of 50%
of the net worth during the previous accounting year and the unit has been in commercial
product for at least two years.
Substandard
A substandard asset would be one, which has remained NPA for a period less than or equal
to 2 months.
Tariff Schedule
The charges levied by a bank on the products and services offered by it to its customers
Unpaid Cheque
This is a cheque, which is returned 'unpaid' [bounced] by the bank.

79

QUESTIONNAIRE -1
COMPARATIVE ANALYSIS OF SAVING AND SALARY
PRODUCTS OF AXIS BANK WITH HDFC AND ICICI BANK

FACTS & FINDINGS

80

ANALYSIS 1:
This analysis displays the division of sample according to the occupation. A total
of 100 people were surveyed.
Table 1

Frequency
Valid

Percent

Valid Percent

Cumulative
Percent

SALARIED

44

44.0

44.0

44.0

BUSINESS

24

24.0

24.0

68.0

PROFESSIONAL

32

32.0

32.0

100.0

100

100.0

100.0

Total

50
45
40
35
30
25
20
15
10
5
0
SALARIED

BUSINESS

PROFESSIONAL

81

ANALYSIS-2
How the customers find salary and savings account provided by Axis Bank?

customers

very good
good
satisfactory
exellent
poor

ANALYSIS-3
Do customers have any other product of AXIS BANK other than savings and salary account?
(Like term deposit, mutual funds, insurance, home loan, car loan etc.)

THIRD PARTY PRODUCT


YES
NO

ANALYSIS-3
Are the customers satisfied with their savings and salary
account?

NO. OF PEOPLE
YES
NO

82

ANALYSIS-4
Which bank is better in providing services regarding
transactions?

BANKS
AXIS BANK
HDFC BANK
ICICI BANK

ANALYSIS-5
Which is better bank in ease of access (both branch & ATM)?

BANKS
AXIS
HDFC
ICICI

ANALYSIS-6
Which banks accounts provide greater flexibility?

BANKS
AXIS
HDFC
ICICI

83

ANALYSIS-7
Are you satisfied with the relationship managers service
provided by Axis Bank?

Relationship Manager service


YES
NO

ANALYSIS-8
Which channel you use to access your account?

HOW YOU ACCESS YOR ACCOUNT


DIRECT BRANCH

MOBILE
BANKING

NET BANKING

PHONE
BANKING

ANALYSIS-9
Which are the areas of improvement?

84

AREAS OF IMPROVEMENT
UPDATES
SERVICE
TECHNOLOGY
RM
PRODUCTS

FINDINGS

The bank has good relation with its customers. The customers are very satisfied with
the relationship manager service provided by Axis Bank.

The bank and its customers have a long term relationship. Axis Bank has the tendency
to retain its customers at any cost. They believe that the old customer is more
profitable instead of a new one thats why they try to maintain good and long term
relations to their customers.

Less no. of customer use mobile banking or net banking.


The accounts of axis bank (both salary & saving) provide great flexibility in terms of
offering.

The accounts of these three banks dont have much difference in terms of features but
when it comes to service providing the Axis Bank gets an edge because of their great
customer services.

The axis bank has good no. of branches and ATMs thats why it has more ease of
access.

The customers of Axis Bank are satisfied with their savings and salary accounts.

85

QUESTIONNAIRE 2
CRITICAL APPRAISAL OF PRODUCT & SERVICES

FACTS & FINDINGS

86

Q.1 Which are group do you belong (Age wise) ?

Less than 25
25 to 40
40 to 55
Above 55

Interpretation :
After looking this bar graph, it can be said the middle-aged group are the main
customer of the banks as they occupied almost 75% of this graph. The bank has
a huge potential in terms of the untapped market Young and old age group
people. High pay packages to todays employed youth and large saving with the
old age people (especially in urban areas) has made them attractive potential
customers.
Q.2

What is your occupation?

Service
Business
Student
Others

Interpretation :
Most of the service class people prefer to open a Savings Account in comparison
to the business class people. This may be possible due to the facility of
Anywhere Banking suiting their needs and preferences.

87

Q.3

Please specify your annual income?

Less than 1 lakh


1 to 2 lakh
2 to 3 lakh
3 to 4 lakh
More than 4 lakh

Interpretation:
Income does not make any difference as far as opening the account in the Axis
Bank is concerned, as the bar diagram is vividly revealing that more or less
people of every segment of income group have opened and are opening the
account expert one group i.e. lower income group where emphasis is required to
penetrate this group so it can be said that the target group of the axis bank,
specially for saving account are of every segment of income group since its is
devoted to render best services to its costumer.
Q.4

what features/attributes, while opening an account do you expect

from a bank?

Quick Services
Proper information
Working hours
Less Formalities
Variety of Product

Interpretation:
When a customer visits any bank the first and foremost thing he expects is the
quickness of service and the promptness in entertaining by the bank employee.
Second thing customer wishes to have is proper information regarding his
88

queries. One this in this bar also really significant is, factor like less formalities of
document while opening an account. Varieties of product do not make a big
impact on customer behavior for opening an account in any bank if its services
are efficient. But on the other hand bank cant ignore working hours. As in this
bar customer has erred it. For these services like bank preference should be
given to make a prompt and customer friendly service channel. For this focus
must be given to make well informed and proactive employee along with work
should be executed technologically rather than manually.
Q.5

What kind of account do you have in Axis Bank ?

Saving Account
Current Account
Fixed Deposits
NRL Account
Others

Interpretation :
Saving account is the leading and attractive product for the Axis bank as it
occupies a major chunk in this bar. It is clearly implying that this product has the
ability to satisfy the customers. On the second had and the positions current
accounts and fixed deposits has also been helpful to increase the customer base
but still their performances needs to be improved. One thing in this bar which is
significant is the business of the bank is relying on only few leading products,
reason for this could be, neither it has limited range of products nor rest of the
product does not have much ability to penetrate in the stiff market of banking of
Jaipur. That is giving an alarming message to the management of the bank to go
or analyzing the situation very minutely and must ascertain where things are
going wrong and for that what short of necessary step could be taken. Providing
better services in comparison with the competitors is a must for excelling in
industry.
Q.6

Who influenced to open an account in Axis Bank ?

89

Friend and Relative


Advertisement
Bank Employees
Prospectus

Interpretation :
As it is said a satisfied customer is the best medium for advertisement since in
this bar friends and relatives have play a key role in opening the accounts for
others, which implies that bank real customer are satisfied enough with the
facilities available on the products and the services enjoyed by them. An
advertisement and bank employees more or less has been good performer in
their respective domain. It reveals advertisement of different medium, as been a
key factor in generating the awareness about banks product as well as facilities
that are made to available on then in the peoples mind.
Q.7

Your remark on products of Axis Bank ?

Excellent
Good
Average
Poor

Interpretation :
As this bar is showing at what level people are saved with saving account, with
its unique facilities features, and ability to serve all the needs of customer
because by and large it can be said 75% people are saving good to savings
90

accounts, this implies that this product has been a leading product and still an
attractive product of the Axis bank. Reason for this could be different type of
facility associated with this product, which are reading true value to the
customer and marketing people are also very much devoted to give the best
from this part. Efforts must be given to know why they are people who are still
saying average and poor about saving accounts and what are the factors that are
going wrong with that segment of people.

91

Q.8

In comparison to other bank how would you rate Axis Bank ?

Excellent
Good
Average
Poor
Cant Say

Interpretation :
Rating of any bank depends on its overall performance in the eye of the people.
This bar is vividly showing that the performance of Axis bank has been good
because in such a short span of its existence in this city with strong competition
from major public sector bank like SBI and other private banks, Reason for this
could be, it has occupied a different position in the people mind with its customer
friendly products and to serve them a efficient and prompt banking system.
Q.9

How long did your wait in queue ?

0-5 Minute
5-10 Minute
More than 10
Minute

Interpretation :
As this bar graph showing 57% people wait in queue 0-5 minutes. While it should
be 100% people.

92

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Q.10 Do you think the number of counters available are sufficient?

Yes
No

Interpretation:
As this bar graph showing 82% people are sufficient. While it should be 100%
people.

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BIBLIOGRAPHY

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The following books and websites have been consulted for the
preparation of this project.
Books:
Philip Kotlers Marketing Management. Twelfth edition
Journal:
Business & Economics (September/October)
Web sites:
www.google.co.in
www.axisbank.com
www.slidworld.com

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