Jitendra Virahy as

JVIRAHYAS@GMAIL.COM

A Project Study Report On

Training Undertaken at AXIS BANK

CRITACAL APPRAISAL OF PRODUCT & SERVICES

Submitted in partial fulfillment for the Award of degree of

Master of Business Administration

Submitted By:JJJ JJJ

2007-09

Submitted to:Dr.

PREFACE
Summer training in any organization is an attempt to provide student a practical input & Explosure to the real world situation in which he has to work in future. My training in Axis Bank, Jaipur was an attempt in this regard. The project work provided to me was Critical Appraisal of product & Services offered by Axis Bank with emphasis on deposit mix. Axis Bank is today one of the most competitive & profitable banking franchise in India as can be clearly depicted by the analysis of its portfolio of banking services. The bank has launched several for various categories of consumers to enhance its deposit mix. This project deals with this aspect especially with the saving account features. The report has been prepaid and is presented under various heading as introduction, organization profile, research objective & scope of research project etc.

ACKNOWLEDGEMENT
I would like to take this opportunity to express my gratitude towards all those who have, in various ways, helped me in the completion of this project. I also express my sincere thanks to my project guide, Dr., for guiding me right from the inception till the successful completion of the project. I sincerely acknowledge her for extending her valuable guidance, support for literature, critical review of project and the report and the above all the moral support she provided me with throughout all state of report preparation.

Lastly I wish to express my thanks to Mr. J.Virahyas, Branch Sales Manager of A Bank, Jaipur who enabled me to prepare this project.

(JJJ JJJ)

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

As a conscious strategy of building an organic growth engine during the year, the bank continued to expand its distribution network, in both domestic and overseas geographies, to enlarge its reach and accelerate its business momentum. The Bank has developed a branch network, which is built on customer-convenience and service, helping it particularly in the acquisition of low cost retail deposits, retail assets, lending to agriculture, SME and mid- corporate and facilitating the cross-selling of third-party products. Various products and services offered by a bank need continuous upgradation through customer feedback. This project deals with all these aspects to draw out certain conclusions and make recommendations.

CONTENTS
S.NO. PARTICULARS PAGE NO. (7-12) (13- 57) (57-62)

1 2
3

INTRODUCTION To The Industry INTRODUCTION TO the Organization RESEARCH METHODOLOGY 3.1 3.2
3.3 3.4 3.5 3.6 3.7

Title of the study Duration of the product Objective of the study Type of Research Sample size and method of selecting ample Scope of study Limitation of study (63-67) (68-78) (79-80) (81-82) (83-84) (85-88)

4 5 6 7 8 9

FACT & FINDINGS ANALYSIS & INTERPRETATION SWOT CONCLUSION RECOMMENDATION & SUGGESTION APPENDIX

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BIBLIOGRAPHIES

(89-90)

INTODUCTION TO THE INDUSTRY

1. INTODUCTION TO THE INDUSTRY

Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the The Bank of Bengal in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India independence, became the State Bank of India. For many year the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935; After Indias independence in 1947, Reserve Bank was nationalized and given broader powers.

1.1 EARLY HISTORY

The first fully Indian owned bank was Allahabad Bank, established in 1865. However, at eh end of late 18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply the supply of cotton to Lancashire from the Confederate States. Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too stated to arrive, particularly, in Calcutta, in the 1860s. The Composite dEscompte de Paris opened a branch in

10

Calcutta in 1860, and another in Bombay in 1862; branches in madras and Pondichery, then a French colony, followed, Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The Bank of Bengal, which later became the State Bank of India. Around the turn of the 20th century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians has established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India. There were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stocks banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Cruzan to observe, In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India in 1906, Mumbai both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian, Bank of Baroda, Canara Bank and Central Bank of India.

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1.2 NATIONALIZED BANKS IN IDNA Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State of India (SBI) was only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores List of Public Sector Banks in India is as follows : Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank
Oriental Bank of Commerce

Punjab and Sind Bank Punjab National Bank State Bank of Bikaner and Jaipur State Bank of Hyderabad
12

 State Bank of India (SBI) State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India s Vijaya Bank 1.3 PRIVATE BANKS All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up to private banks as part of its policy of liberalization of the Indian Banking Industry. 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. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.

13

Major Private Banks of India

Bank of Rajasthan Bharat Overseas Bank Axis Bank Catholic Syrian Bank Centurion Bank of Punjab Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank Indusind Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank SBI Commercial and International Bank South Indian Bank United Western Bank UTI Bank YES Bank

14

INTODUCTION TO THE ORGANIZATION

15

2. INTODUCTION TO THE ORGANIZATION

COMPANY DESCRIPTION
One of the fastest growing banks in the country. Axis Bank was the first new generation private sector bank to be established in India under the overall reform programmed initiated by the Government of India, in 1991, under which nine new banking licenses were granted. The Bank was promoted by Unit Trust of India, the largest mutual fund in India, holding 87% of the equity. Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd and its four subsidiaries who were the co-promoters held the balance 13%. The Bank started its operations in 1994. Axis Banks first capital raising post inception was in 1998 through a public offering of primary shares and in subsequent years through equity allotment to a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur Vysya Bank and Chris Capital leading to a dilution in Uzis shareholding in the Bank. Further dilution of Promoters shareholding happened during Q4 ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a GDR issue. The Bank today is capitalized to the extent of Rs. 358.56 corers with the public holding (other than promoters) at 57.60%. The Banks Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking

16

convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adapting the best industry practices internationally in order to achieve excellence. The present shareholding pattern is as mentioned below : (As on 30/06/2008) Administrator of the Specified Undertaking of the UTI LIC GIIC and four PSU Insurance Companies Non-Promoters Holding Others 27.72% 10.49% 5.50% 42.32% 13.97%

Axis Bank is today one of the most competitive and profitable banking franchise in India. Which can be clearly seen by an analysis of its comprehensive portfolio of banking services including Corporate Credit, Retail Banking, Business Banking. Capital Markets, Treasury and International Banking. The Position as on 31st March 2008 was as under.Balance Sheet size Rs 1,095,778,487 (Rs. In Thousands) Total Deposits Rs. 876,262,206 (Rs. In Thousands) Net Advances Rs. 596,611,446 (Rs. In Thousands) Investments Rs 337,051,008 (Rs. In Thousands) Network of Branches and Extension Counters 701 Number of cities and towns covered by network -190 Number of ATMs 2854 Net NPA 0.42 % Capital Adequacy Ratio 13.73 %

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Mission
Customer service and product innovation tuned to diverse needs of individual and corporate clientele. Continuous technology up gradating while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. Customer Satisfaction through providing quality service effectively and efficiently.

Core Values
Smile, it enhances An individuals face value is a service quality stressed on Periodic Customer Service Audits.

Maximization of Stakeholder value. Success through Teamwork, Integrity and People.

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UNIT : AXIS BANK LIMITED Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad 500 081 Tel. No. : 040 23420815 to 23420824 Fax No. : 040-23420814 Registered Office Trishul, 3rd Floor, Opp. Samartheshwar Temple, Law Garden, Ellis Bridge, Ahmedabad 380 006. Tel No. : 079 2640 9322 Fax No. : 079 2640 9321 Email : p.oza@axisbank.com/rajendra.swaminarayan@axisbank.com Web site : www.axisbank.com Central Office Maker Towers F, 13th Floor, Cuffed Parade, Colaba, Mumbai 005. Tel. No. : 022 67074407 Fax No. : 022 2218 6944/2218 1429

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2.2 BOARD OF DIRECTORS

Sikha Sharma Surendra Singh N. C. Singhal A. T. Pammor Selvam J. R. Verma R. H. Patil Rama Bijapurkar R. B. L. Vaish M. V. Subbiah Ramesh Ramanathan K. N. Prithviraj P. J. Oza M/s S. R. Batilobi & Co. Auditors M/s. Kervy Computer share Private Agent Limited Chairman & Chief Executive Officer Director Director Director Director Director Director Director Director Director Director Company Secretary Chartered Accountants Registrar and Share Transfer

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2.3 PRODUCT AND SERVICES

PRODUCT Deposits (saving account and current account) Loans BANACASSURANCE Cards Services ATM Mobile Banking Internet Banking Payments Other Services

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SAVING ACCOUNTS The Bank has launched customized saving account products for various categories of customers Senior Citizens, Students & Trusts/NGOs besides a very competitive offering in the Salary Account category. Easy Access Saving Account (Banking made easy) The account is an endeavor by the Bank to understand the consumers needs and redefine banking to suit an individual requirement for a truly comfortable banking experience. Easy Access Saving Account gives an individual instant access to individual money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of Axis Banks eclectic client base. Features Interest paid on a quarterly basis @ 3.5% per annum. International Debit Card. Tele-banking IConnectTM Internet Banking Multi-city At par cheque book for all Savings Accounts holders Free Anywhere Banking facility Auto sweep facility for excess balances into high interest earning term deposits Quarterly statement of account. Access to account information over iconnect, Tele-banking and ATMs

22

An individual can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, and 2,500 in semi urban centers. Senior Privilege (Because life begins at sixty) Features Dedicated Relationship Managers Free At-Par Chequebook Free International VISA Debit Cards for primary and joint account holders Free Monthly Statement of Accounts and Free Passbook Free Insurance of Pay Orders or Demand Drafts drawn on Axis Bank Branches Free Inward Remittances Free Outward Remittances once a year Faster credits to foreign cheques providing An individual prompt availability of funds Remitted by An individuals near and dear ones abroad Cheque pickup and Cash delivery services Anywhere Banking Telebanking Free Mobile Banking IConnect Customized Load Offerings Complimentary Financial Planning Silver Health Medical Insurance for Senior Citizens (AQB Criteria : Rs. 10,00)
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24

Smart Privilege Account ( For the woman of today) In todays busy world its tough being a workingwoman. Right from shutting between a job and family to taking care of her finances she has to be on her heels all the time. Keeping this ideal in mind, we at Axis Bank have designed a savings accounts best suited for the woman of today. Now with the Smart Privilege Account a Woman can manage her money, her life and enjoy a host of lifestyle privileges as well. Whats interesting is that the Smart Privilege Account ensures that a Woman have enough time for all those important things in life. Features Jewellery Insurance on Debit Card Zero Balance Minor Account At-par cheque facility Monthly Account Statement Additional discounts on loans Iconnect TM Financial Advisory Services Discount on Retail Purchases

25

Trust/NGO Savings Account (Thoughtful banking for people who spend their
lives thinking of others)

Axis Banks Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trust, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organizations can devote all of their time to their noble motivations. Features A Savings Account for individuals Trust with a confessional Average Quarterly Balance, A multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever we are present. Free Anywhere Banking across all Axis Banks Branches and Extension Counters and over all Axis Banks ATMs. Free Demand Drafts or Pay Orders as and when required by An individual to remit funds. Free collection of cheques at outstation locations. Monthly Statement of Account delivered at An individuals doorstep. Facility for collecting donations in An individuals account through Axis Banks network of Branches and Extension Counters across the country, as well as through iConnect Axis Banks Internet Banking facility. Monthly statement of account Free internet Banking facility Free Demat Account

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Assistance for Foreign Contribution (Regulation) Act accounts for receiving donations from abroad. Free Collection of cheques Doorstep banking services

Zero Balance Savings Account (Save at Zero)

Presenting, Axis Banks Zero Balance Savings Account. It has been Axis Banks constant endeavor to create products specifically catering to An individuals needs. The account while offering an individual a whole range of services also addresses an individuals latent need of having an account without the hassle of maintaining an average quarterly balance. Features No Average Quarterly Balance requirement Free International Debit Card with an Accidental Insurance cover up to Rs 2 Lakhs (Charges for the primary holder are waived) Free mobile banking facility Access through more than 675 branches and more than 2800 ATMs At-par cheque facility with the clearing limit of Rs 50,000 24X7 Telebanking & Internet banking Free quarterly statements

Salary Power (The complete financial solution) Salary Savings Account from Axis Bank will do the job for an individual. We know ho important employee satisfaction is for an organization to grow to its full potential. Which is why we have tailored

27

Axis Banks Salary Savings Account not only to be a convenient may for An individual to manage salaries (across various centers, through Axis Banks centralized database), but also provide an individual employees with a range of value added benefits. Salary Saving Account comes with a host of facilities that give an individual employees access to the complete gamut of banning services (including overdrafts, loans and zero-balance requirements) on a preferential basis. Making it the perfect incentive for an individual employees.

Features
1 2 3 4 Balance Requirement No minimum balance Anywhere Banking Available across the country Cheque books Multi-city at-par Cheque Book International Debit cum Personal Accident Insurance ATM Card Cover of Up to Rs 2 lacks per cardholder [to keep An individuals personal accident Have Insurance made a cover purchase activated, An individual should transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan 2,500 (rural branches) & or Rs semi-urban

branches) as the case may be in the two quarters before the date of the incident.]*

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 Cash withdrawal of up to Rs. 25000 daily Purchase protection and Zero Card liability Accepted at more than 1 million ATMs and more than 26 million 5 Computerized Statements Point of Sale terminals worldwide Free on a quarterly basis
Free monthly statements on email

(Customer has to register for 6 7 8 9 10 11 12 13 Joint Account Facility Flexi (2-in-1) Encase Demand Drafts Overdraft facility Outstation Cheques internet Banking) Available Available subject to

terms

and

conditions Deposits* Free Demand Drafts drawn on Axis Bank Branches Up to 50% of net salary at Personal Loan rates* Free collection, only out-of pocket

expenses to be recovered De mat Account Available Financial Advisory Services Available Poer Loaned * Power Homes Housing Loans Personal Power Personal Loans
Study Power Educational Loans

Consumer Power Consumer Loans 14 15 16 17 Power Drive Vehicle Loans Optional Gold Debit Card Access to any Bank ATM Credit Cards Available Online Trading Available Built-in Insurance (Medical Unique facility of availing Insurance and Burglary) scheme 18 Built-in SIP scheme option in built in the account Available Unique facility of availing SIP option
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19

Internet Banking

in built in the account Available Available as iConnect with enhanced features like free bill payments (e.g., electricity payment Insurance bills) of and electronic (LIC at select premiums

Premium)

centers. Online shopping and E20 21 22 23 Telebanking Mobile Banking Nomination Facility Funds Transfer Brokering. Free (available for 24 hr Axis Banks at select centers) Available Available Transfer funds from An individuals Salary Power account to any bank 24 Meal Card account in India free of charge The best substitute for the traditional Sodexo/Accor 25 Gift Card Meal coupons/vouchers. Prepaid, Rupee Denominated, Non Reload able card Ideal for gifting.

Power Salute (Salute to the defense forces)

Defense Salary Account from Axis Bank is a product designed keeping in mind how though a life in the Defense Forces is. Not only does it come to An individual absolutely free, no minimum balance is required either. An individual can access the entire Axis Bank network, including more than 2300 ATMs and 550 branch offices (and growing) no matter where An individual are posted. With the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) an individual can now

30

rest assured about his family and all their financial needs. Its Axis Banks way of showing Axis Banks appreciation to An individuals work.

Features
1 2 3 4 Balance Requirement Anywhere Banking Cheque books International Debit cum ATM Card No minimum balance Available across the country Multi-city at-par Cheque Book Personal Accident Insurance Cover of Up to Rs 2 lacks per cardholder [to keep An individuals personal accident Have Insurance made a cover purchase activated, An individual should transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident.]* Cash withdrawal of up to Rs. 25000 daily Purchase protection and Card liability Accepted at more than 1 million ATMs and more than 26 million 5 Computerized Statements Point of Sale terminals worldwide Free on a quarterly basis Free monthly statements on email
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Zero

(Customer has to register for 6 7 8 9 Joint Account Facility Flexi (2-in-1) Encase Demand Drafts Overdraft facility internet Banking) Available Available subject to

terms

and

conditions Deposits* Free Demand Drafts drawn on Axis Bank Branches Up to 50% of net salary at Personal Loan rates* Free collection, only out-of pocket expenses to be recovered Available Available Power Homes Housing Loans Personal Power Personal Loans Study Power Educational Loans Consumer Power Consumer Loans

10 Outstation Cheques 11 De mat Account 12 Financial Advisory Services 13 Poer Loaned *

14 15 16 17

Power Drive Vehicle Loans Optional Gold Debit Card Access to any Bank ATM Credit Cards Available Online Trading Available Built-in Insurance (Medical Unique facility of availing Insurance and Burglary) scheme option in built in the account Available Unique facility of availing SIP option in built in the account Available Available as iConnect with enhanced features like free bill payments (e.g., electricity bills) and electronic payment of premiums (LIC Insurance Premium) at select centers. Online shopping and EBrokering. Free (available for 24 hr Axis Banks

18 Built-in SIP scheme 19 Internet Banking

20 Telebanking

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21 Mobile Banking 22 Nomination Facility 23 Funds Transfer

at select centers) Available Available Transfer funds from An individuals Salary Power account to any bank account in India free of charge The best substitute for the traditional Sodexo/Accor Meal coupons/vouchers. Prepaid, Rupee Denominated, Non Reload able card Ideal for gifting.

24 Meal Card

25 Gift Card

Azaadi No Frills Account (Basic banking with zero balance)

A savings account that doesnt require a minimum balance. Experience a host of unparalleled features and heightened convenience with Azaado Accont. Feature Zero Balance Savings Account : No need to maintain a fixed, mandatory amount in an individuals account..
Instant Welcome Kit : Handed over to An individual at the time of

account opening, the kit will consist of an individuals account number, debit card, debit card PIN, internet banking PIN and phone banking PIN numbers. International Debit Card : Which gives an individual access to over 1,800 ATMs across the country, enabling an individual to make deposits or withdraw cash at anytime of the day of night.
Phone Banking and Internet Banking : An individual can

conveniently check An individuals balance, transaction details etc. anytime from anywhere over telephone or using the internet, for no extra charge.
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SPECIAL SCHEME FOR SAVINGS BANK ACCOUNT Saving account for students Features : Minimum average quarterly balance (AQB) of Rs. 500. Free international Debit Card.
Quarterly statement of account.

Tele- banking
IConnect Internet Banking

Savings account for Demat customers Features : Minimum average quarterly balance (AQB) of Rs. 500. Free international Debit Card.
Quarterly statement of account.

Tele- banking
IconnectTM Internet Banking

Priority Banking Resident In a segmentation study undertaken in 2002, it was found that 2.72 % of Axis Banks retail customers contribute to nearly 49.05% of Axis Banks total retail deposits. The clients that bring a larger share of business to the Bank expect a differentiated standard of service. This also makes business sense, as more often than not, most of the business in a particular branch flows from a handful of clients. Hence, Priority Banking was

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launched in order to cater to the needs of the high net worth customers within the bank. The product has at its core, the idea of providing a certain bit of differentiation in service and treatment to a segment of its customers with a view towards customer retention, acquisition and cross selling. The nucleus of these services has essentially four important components
Personalized service

Investment advisory Services

Prefential pricing of banking products/services Lifestyle privileges.

Most of Banks, private as well as foreign, offer a specialized banking service to their elite customers. The definition of the value of relationship and services offered differs across banks. In general, MNC banks define the HNI segment taking into account the customers liability as well as, assail relationship with the bank (Between 20-30 Lakhs and above) whereas the Indian private banks only take in the savings bank balances and term deposits (Between 5-10 Lakhs ans above). Features Priority Banking Lounge : As a Priority banking customer an individual will have access to an exclusive Priority Banking Lounge at branches. This will allow an individual to conduct his financial transactions in utmost comfort and confidentiality through an exclusive Relationship Manager.
Dedicated Relationship Manager

An individual will enjoy access to a dedicated Relationship Manager who will be his one point contact at branch for all An his banking

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transactions thus ensuring that An individual would neither have to move from one counter to the other nor stand in queues to await his turn. Home Banking Experience the convenience of Axis Banks home banking facilities. Avail of free cash and cheque pick-up delivery at an individuals or residence. Exclusive Priority Banking International Debit card This card allows an individual free access to all VISA ATMs in Idea. The card also comes with higher ATM withdrawal limits; higher POS transaction limits at merchant establishments, enhanced insurance over and a host of special discounts and offers. An individual also get Prefential Interest Rates and lowered Processing Fees on select Retail Loans.
Investment Privileges

Avail of assistance in financial planning. Investment advice market information reports, and invitations to investor meets are offered complimentary to an individual. Lifestyle privileges However, its all about just financial series. We aim to provide a different lifestyle experience through Lifestyle privileges like exclusive invitations to movie screenings, plays, music concerns and other special events sponsored by Axis Bank, especially for Axis Banks Priority Banking Customers. Other Banking Privileges Enjoy a host of banking privileges like free at-par cheques, demand drafts and pay orders, free passbook updates and monthly statements.

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 An individual would also be entitled to two free minor

accounts, one free outward remittance per quarter and free Mobile banking. As a Priority Banking customer, there would be no issuance charge on Axis Banks Travel Currency Card. Non-Resident (External) NRE Saving Account Any person resident outside India may open NRE account. This account permits a NRI to hoed and maintain foreign currency earnings in Indian rupees. The Principal and interest earned on these balances are freely reportable. Whether an individual are a student, a professional, a salaried employee or an entrepreneur, this account will meet all an individuals banking need. Features Low minimum balance requirement of Rs 5,000
Multicity cheque book which will permit An individual to make

payment via cheque across multiple locations

Mandate or Power of Attorney facility available so that in An

individuals absence from the country An individual can authorize his relative or friend to operate conduct banking transactions on his behalf.
Free iConnect: 24 X 7 account access through secure internet

banking facility from anywhere and anytime. Online shopping mall and utility bill payment facility be using Axis Banks Internet based iConnect banking login.
Free personal accident cover of Indian Rupees 2,00,000 on

Axis Banks Debit Card (The insurance cover will come in force only after An individual make his first successful payment transaction at any merchant establishment.)*

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 Tax

Advisory

Services

from

Axis

Banks

empanelled

consultants
Assistance to obtain Income Tax PAN Cards to make an

individual compliant with the tax regulations of the native lands. Interest Rates Saving Account Deposit Interest Rate 3.5 % Rates Effective from : Thursday, August 21, 2008 PERIOD DEPOSITS INTEREST RATES ON DOMESTIC DEPOSITS (%) Interest Rate Interest Rates for Interest Rate 15on Deposits Below Rs 15 Lakhs 7 days to 14 days 15 days to 29 3 days 30 days to 45 4 days 46 days to 60 5 days 61 days to less 5.5 than 3 months 3 months to less 6 than 4 months 4 months to less 6 than 6 months 6 months to less 7.75 than 9 months 9 months to less 9 than 1 Year 1 Year to less 10 than 2 Year 2 Year to less 9 3 4 5 5.5 6 6 8.5 9.75 10.75 9.75 1 3 4 5 5.5 6 6 7.75 9 10 9 Senior citizen 50 Lakhs

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than 3 Year 3 Year to less 8.5 than 5 Year 5 year upto 10 8.5 years CURRENT ACCOUNT

9.25 9.25

8.5 8.5

The basic product for mobilizing such deposits is a Current Account. The Banks offers a range of current account products to meet the needs of the various customer segments such as Small Enterprises, Trade, Exproers, Corporate and intuitions. The various Current Accounts offered by the Bank are: Normal Current Account Business Advantage Business Classic Business Privilege Business Global Channel One (Priority Customers) These products offer flexibility to customers to choose from the above option with varying minimum average quarterly balance commitments and charges structure. In addition to conventional banking facilities, these accounts offer Multi-City At Par payable cheque book facility and anywhere Banking facility across offer Multi city At Par payable cheque book facility and any where Banking facility across braches. Customers can access their account Online through Corporate iConnect, Axis Banks Internet banking platform as also through TeleBanking facility and can receive account balance information on mobile telephones and electronic mail. Customers are subject to transaction

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charges including charges for non-maintenance of the committed balances. Axis Bank brings different kinds of current accounts for different types of businesses Select the one that best suits an individuals business requirements. Axis Banks Current Account came equipped with the following features to give maximum value for an individuals money.

Type of Current Accounts Normal Current Account Business Advantage Account Business Classic Account Business Privilege Account Channel One Current Account for Govt Organizations Current Account for Banks Current Account for Builders & Real Estate Capital Market Current Account Krishi Current Account Business Global Current Account Club 50 Current Account Shipping and maritime Current Account Inland Road Transport Current Account Travel, Tourism and Hospitality Current Account Features Anywhere Banking

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Axis Banks Current Account allows an individual to bank from all Axis Banks branches and Extension counters. An individual can deposit cash, withdraw cash, deposit cheque, and issue at-par cheques at any of Axis Banks branches. So bank at an individuals own Convenience. Instant Fund Transfer An individual can transfer funds instantly between any of Axis Banks branches. Funds transfers can be affected online, right from An individuals through Axis Banks internet banking services. Internet Banking Axis Bank presents corporate iConnect a unique net Banking platform for the current account customers. Available with multiply user IDs, depending on an individuals needs. Access an individuals account at any time form anywhere. An individual can transfer funds to his own accounts or to third party accounts within Axis Bank & Inter Bank covering over 25,000 branches of various banks. Corporate iConnect also permits transaction initiation by one user and approval by another. An individual can also excuse bulk payments like salary and commission across Axis Bank network right form his desktop. At-Par (Multicity) Chequebook Enjoy the benefits of Multicity Chequebook with Axis Banks current Accounts. An individual cans issue cheques payable at par at all Axis Banks branches across the country. An individuals cheques will be treated as local cheques at more than 375 locations as on January 31, 2008. ATM or Debit Card

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With every Current Account (For proprietary and partnership concerns), An individual can avail upto 2 ATM cum Debit cards, which allow an individual round the clock access to his account from any of all Axis Banks ATMs all over the country. An individual can withdraw upto Rs 40,000 a day. Free Monthly Account Statement By courier and daily on email.

Mobile Banking Mobile Banking will enable an individual to bank with Axis Bank through his mobile phone irrespective of where an individual are. LOANS PERSONAL POWER PURPOSE : To meet personal expenses. Loan Amount : Minimum Loan amount Rs. 25,000/Maximum Loan amount Rs. 105,00,000/- for salaried and Rs. 15,00,000/- for salaried professionals individuals Maximum Loan amount Rs 103,00,000/- for self employed individuals Maximum Loan amount Rs. 720,500,000/- for Doctors POWER HOMES Purpose :
Purchase of a plot of land and Construction of a house thereon

Construction of a house on plot of land already owned Purchase of a new house / flat

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 Purchase of old house / flat which is not more than 15 years old (Home Acquisition loan) Take over of existing Housing Loan Take over of existing Housing Loan with additional Finance (Top-Up) Pre allotment Booking finance Limit: Minimum Rs 1 lakh & Maximum Rs. 50 lacs Margin : 15% in the case of normal product. 25% in the case of Improvement / renovation loans ASSET POWR (LAP) Purpose : Loan against property Residential premises Loan against property Commercial premises Loan for Purchase of Commercial Property Take-over of existing Loan Take over of existing Housing Loan with additional refinance (Top-Up) Limit: Minimum Rs 1 lakh & Maximum Rs. 150 lacs Margin : 50% in case of loans against property. (On valuation) CONSUMER POWER Purpose : Purchase of new consumer durable item Loan Amount : Minimum Loan amount Rs. 25,000, Maximum Loan amount Rs 2,00,000 POWER DRIVE

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Purpose : Purchase of a new car Loan Amount : Cost of Vehicle plus registration & insurance (less stipulated margin) OR 20 times of net monthly salary in case of salaried persons / equivalent of net annual income as per latest IT Assessment Order in case of others, Whichever is less. STUDY POWER Purpose : To provide financial support to deserving / meritorious students for pursuing higher professional/technical education in India and abroad. To be provided to meritorious students who have obtained admission to career-oriented profession, e.g. medicine, engineering, management, either at the graduate of post graduate level. This would cover studies proposed in domestic or oversees institutions. Quantum of Loan : The quantum of finance under the scheme is capped at Rs. 7.5 Lakhs for studies in India and Rs. 15 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs. 50,000/-. Express Considered for the Loan Fees payable to college / university / hostel Examination / Library/ Laboratory fees Purchase of Books / Equipment/ Instruments Caution / refundable deposits supported by the Institutions bills/receipts
Travel expenses / passage money for studies abroad

45

 Purchase of computers (when essential for the completion of the course) Any other expenses required to complete the course, like study tours project work/thesis, etc. LOAN AGAIST SHARES Purpose : For personal use Quantum of Loan : Maximum loan amount is Rs, 20,00,000/- against pleading of approved scrips. We are offering this facility to individuals only. TWO WHEELER LOAN Purpose : To purchase a two wheeler Quantum of Loan : Minimum Rs, 20,000/- & Maximum Rs 70,000/- we finance 8085% of the on road price (Cost of Vehicle + registration + insurance) of the vehicle. BANCASSURANCE Bancassurance implies sales of insurance products through the Banking channel, wherein a Bank enters into a tie up with an insurance company. The Bank would be paid a commission by the insurance company for each insurance policy sold. This initiative would help the Bank to boost its fee income through commission earned. In turn the insurance company can effectively tap the Banks customer base and utilize the banks resources and infrastructure to maximize its sales. As per IRDA norms, a Bank is permitted to only tie up with 1 insurance company (1 general insurance company and 1 life insurance company) of each line of business.

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In early 2005, AXIS Bank entered a Bancassurance tie up with a leading private sector insurance player, Bajaj Allianz General Insurance Company Ltd., for sales of non-life insurance products through all its branches. The formal launch and announcement of the tie up took place during May 2007. AXIS Bank is yet to enter into a Bancassurance tie up for life insurance Sales. As a result of this tie up, a wide range of insurance products have now been made available through AXIS Bank branches. Insurance is being sold to all segments, viz. retail customers, SME segment and corporate Customers as well. This partnership is expected to become one of the major Bancassurance tie-ups in the India n market. The important non-life products include Health Insurance, Personal Accident insurance, Households Policy, Motor insurance, Shopkeepers Policy, Office Package policy, Overseas Travel Insurance, Fire Insurance etc. These are the standardized insurance products of Bajaj Allianz. Apart from selling standard Bajaj Allianz policies, AXIS Bank has also launched 4sepcial co-branded general insurance products in association with Bajaj Allianz. These products would be exclusively sold to AXS Banks large retail customer base and shall be available only though AXIS Bank. These policies offer the customers greater benefits, more competitive pricing and ease of purchase as compared to the regular insurance policies. These co-branded are as follows : Family Health We offer the customer, the advantage of inuring not just himself but his entire family with one policy. Axis Banks family Health Insurance programmed provides a comprehensive health Insurance that covers customer, his spouse and 3 dependent children up to the age of 18 years. Hence the customer does not have to pay multiple premiums to

47

insure all the members, in his family. 30 Hospital Reimbursement: Reimbursement of An individuals hospital expenses in case of sudden illness, accidents or accidents or emergency surgeries. Additional cash benefit for each and every completed day of hospitalization. Safe Home Axis Bank realize the customers need to make their homes as secure in reality, as it is in their mind, this is why we have launched SAFE HOME, which provides protection for. An individuals property and valuables at the customers home with minimal paperwork against losses due to fire, allied perils, burglary and larceny. Safe Guard Low case personal accident policy, which insures the customer, against risk of accidental death, add dental permanent total disability and accidental permanent partial disability. Smart Advantage Smart Advantage is a women specific Critical Illness insurance plan that has been designed for keeping in mind the critical illnesses and other attendant risks that are especially faced by women. A guaranteed cash sum will be paid in case the insured (i.e. customer) is diagnosed with a life-threatening illness. The benefit amount under this policy helps to take care of heavy medical costs for treatment of critical illness. Hence proves protection from the economic impact of critical illness. Other Insurance Retail Products offered by AXIS Bank Burglary Critical illness Fire and allied perils Householder Personal Guard (Personal Accident Policy)
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Shopkeepers Travel Companion (International Travel Insurance) 31 Silver Health (Health Insurance for higher aged customers) Motor Vehicle Policy Health Guard (Individual health Insurance product) Hospital Cash

CARDS

The Cards Division in Retail Banking Department is responsible for both the Cards issuance Business as well as Merchant Acquiring Services. 20 On the issuance side, the Bank has two very strong products viz the interaction Debit cum ATM Card & the International Travel Currency Card. In FY 05-06, new initiatives from the Cards Division have been the Visa Gold Debit Card, Rewards Card and the Travel Currency Card in several new currencies. THE AXIS BANK DEBIT CARD The Axis Bank International Debit Card is a VISA Electron/Visa Flag/ Master Card Unendorsed card and is accepted globally at all VISA / Master Card ATMs and Merchant Establishments accepting Visa / MasterCard Cards. The Bank has issued more than 44,00,000 Debit Cards. The Bank issues between 100000-120000 debit cards to its customers consistently every month. Features Lost Card Liability AXIS Bank Debit Cardholder in insured for risk of loss due to fraudulent use of a lost / stolen/ missing debit Card. All he needs to do is

49

communicate the loss of An individuals Card by calling Axis Banks 24 Axis Banks Customer Service Number or Branch (during working hours) Purchase Protection All consumer durable goods purchased using the Debit Card are insured against fire, natural calamity, burglary, and house breaking up to 90 days from the date of purchase. There is a combined limit of Rs. 50,000/- per card for Zero Lost Card Liability and purchase protection. This limit is Rs. 175,000/- for Gold Debit Card. Personal accident Cover. In the unfortunate event of loss of life in an accidental mishap, the customers beneficiaries will receive the benefit of accident insurance of up to Rs. 2 Lakhs (Rs 5 Lakhs in case of Gold Debit Card). The Personal Accident Cover comes into force as soon as the Debit Card is used for a payment transaction at any Merchant Outlet. The Personal accident insurance covers the debit cardholder and compensates the nominee in the event of accident leading to death. Sum Insured Rs. 200,000/- Rs 500,000 per cardholder (a cap of same a mount in the event of multiple card / multiple ac counts per person). The claim settlement procedure and all the forms / documentation required at the time of claim submission are available with all Axis Banks branches. The customer may also contact 022-55987700 the Debit Card help line directly. 22
24-HAxis Banks Customer Service:

91-22-55987700 for around the clock assistance for AXIS Bank Debit Cardholders. The Charges relating to the Debit Card are as under PARTICULARS Issuance Charges CHARGES Rs 95- per Card

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Annual Fee Card Replacement Charges Duplicate PIN Transactional Charges A) UTI Bank Master Card ATMs B) VISA / Master Card ATMs In INDIA I) Cash Withdrawal II) Balance Inquiry ABROAD Cash Withdrawal Balance Inquiry 1. 2. 3. 4. 5. 6.

Rs 100- per Card Rs 95- per Card Rs 50- per Card No Charges

Rs. 50/Rs. 15/Rs. 125/Rs. 25/-

The Charges are waived for branches at semi urban and rural centers. The Charges for Current Accounts will be the same as that for SB- NOR The Charges for SB-DMT, SB-SPL and SB-STU will be the same as that for SB-NOR There will be no charges for Debit Cards issued to SB-SPA, SBPB, SB-TRS and SB-STF There will be no charges for Cards issued to NRE & NRO Accounts. The Charges are waived for primary card to SB-SAL. REVENUE DRIVERS In the absence of any annual fee, the revenue driver for the Bank is the commission earned @ 1.1% of the transaction amount, when a customer uses his Debit Card at a merchant outlet. Thus the Challenge is twofold: Activation of Dormant Cards

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 Migration of transactions at ATMs (non-revenue earning) to Point of Sale (1.1%) n the financial year 2005-06 the Bank earned approximately Rs. 11.27 crore from its Debit Card program. Usage of the Card varies according to age and location. People in the metros, large towns use the Debit Card because of more awareness and concentration of ATMs and POS terminals. The highest usage comes from Tier I cities like Mumbai, Delhi, Kolkata, Chennai, Hyderabad and Bangalore where most merchant outlets have EDCs (Electronic Data Capture Terminals). Similarly age of the customer also has a bearing on the usage pattern. Studies show that the Debit Card is used maximum by people in the age group of 25-45.

New Initiatives a) Remittance Card The AXIS Bank Remittance Card. Launched is association with Remi2india..com, is a unique product that has charged the way money is sent across borders. Remitters from 23 different countries including the USA, UK, and Gulf Countries can sent money to India through the Remittance Card. The product is available as a delivery mode (other delivery modes being Demand Drafts/Direct credits to Bank accounts) for remittances made through the Web Portal www.Remit2india.com. Based on the remitters request, we prepare a personalized Remittance Card for the beneficiary, which is preloaded with the funds remitted to him in INR. The card is sent in a Welcome Kit to the beneficiary, who has to take it to the nearest AXIS Bank branch to complete some basic formalities in order to activate his/her card. Once the card is activated, it works just like a normal ATM-cum-Debit Card, usable as all VISA ATMs for
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withdrawing funds and at all VISA enabled POS outlets to pay for purchases. Subsequent remittances are directly loaded onto the car5d and provide the beneficiary with almost instant access to the funds remitted to him. Thus, the product is primarily aimed at providing a hassle-free and convenient solution to beneficiaries who receive remittances on a regular basis. Other features provided to Remittance Card customers are as follows:
Multi-city At Par Chequebook (on request)

No minimum average balance requirement Enchase facility

Quarterly Interest payment

Daily Cash Withdrawal Limit of Rs. 40,000/ Daily Cash Withdrawal Limit of Rs. 40,000/ Free insurance cover comprising of Purchase protection Zero lost card liability Internet and Telebanking facility b) VISA Money Transfer Service The VISA Money Transfer Service has now mad it possible to send money from an AXIS Bank account to any of the 28 million VISA cards issued in India. Eligibility Sender of Funds : To avail of the VISA Money Transfer Service, the sender of funds needs to be a holder of either of the following A bank account with AXIS Bank Any VISA Card issued by AXIS Bank

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 A bank account with AXIS Bank Any VISA Card issued by AXIS Bank Beneficiary of funds : The beneficiary of the funds should have a VISA Card (debtor Credit, issued in India). In case the beneficiary VISA Card is linked to more than one bank account, funds will be transferred to the primary account linked of the card. Availability The service has been enabled through all Axis Banks ATMs and i-Connect TM Usage The VISA money Transfer service can be used for the following Purposes: To send money to any of the 23 million VISA Cards anywhere in India. To pay VISA credit card bills by giving the card number and making a direct payment. Axis Bank accountholders who hold VISA Electron/VISA FLAG Cards can also receive money from any other Bank account, subject to that Bank enabling VISA Money Transfer for its accountholders. We intend to introduce several additional usage options at a later data like payment of, utility Bills, School and College Fees, etc. through VISA Money Transfer. Future initiatives

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In FY 08-09, the Bank plans to launch the Prepaid Corporate Card, which will be branded as a Rewards Card. The product is being almed primarily at corporate for disbursing commission payments/reimbursements to their agents/distributors/employees. The Bank is in advanced stage of discussion with several corporate across the country. The Prepaid Card venture is expected to bring significant revenue income (primarily through fee income) for the Bank. SERVICES ATM The bank has 1861 ATMs as on 31.03.2006. This includes all Axis Banks onsite and off-site ATMs. All Axis Banks ATMs are connected to Axis Banks Base 24 ATM switch, which in turn interacts with Axis Banks centralized core banking software for transaction processing. The Bank through its ATMs offers the following services Banking Services :

Cash Withdrawal, with real time debit to customers account Cash & Cheques Deposit Balance Inquiry PIN Charge

Other Services :

Mobile Airtime Refill for Hutch, Airtel, Idea, BPL, Cellular, RIM, Tata Tele

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Facility for Non UTI bank VISA card holders to refill their Prepaid phones. Life Insurance Corporation Premium Payment Bill Payment e.g.: BSNL, MTNL Funds Transfer (within own accounts) Online Donations to Trusts & NGOs Purchase and redemption of UTI Mutual Fund Schemes through the ATM

Strategic Tie-ups for ATM We have also tied up with Western Railway (Mumbai), Central Railways (Mumbai) Pantaloons, HPCL, and BPCL for setting up ATMs at their locations. Almost all costs related to setting up and maintenance of an ATM network is fixed. Thus, the challenge for the Bank has been to migrate customers to this channel and develop new streams of revenues from this channel, in order to make the channel viable. The Bank has achieved tremendous success in this regard. We have been able to migrate about 90% of all cash disbursement transactions to Axis Banks ATMs. To generate direct revenue from the ATM Channel, the bank has adopted 2 strategies : ATM Sharing with other banks New functionalities such as mobile airtime refill, bill payment & mutual fund sales through which Axis Banks bank earns a commission. The Bank has also set up ATM galleries at 3 location. Each of the Gallery has 2 ATMs for the convenience of the customers, information

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kiosk, a card operated touch-screen internet kiosk, though which the customers can access their iConnect accounts with bank and perform their banking transactions such as funds transfer, bill payment, balance inquiry, etc. A bill payment kiosk has also been set up at this gallery. The ATM Channel for the bank has been a major customer acquisition tool, increasingly the channel is being seen as a customer servicing tool and all the new value added services are part of that initiative. INTERNET BANKING Since April 2000, the Internet Banking channel has grown fast to com pelmet the branch and ATM network. As of March 2006, there are around 20 lakh users of internet banking, which amounts to more than 50% of Axis Banks retail banking savings accounts customers. Apart from routine functional like balance and transactions lookup, we also provide a number of value added services on the internet banking platform. A bride description of each product is given below:

Bill Payment The bill payment series on the internet can be classified into three categories:

Presentment of EBPP (Electronic Bill Presentment and Payment).- Under this type of bill payment, the customer needs to register for each bill. Once registered, the biller will sent an electronic version of the bill for acceptance and payment.

Direct Payment.- Under this type of bill payment, no bill presentment happens. The customer is free to select the biller and pay accordingly to his convenience.

Payee : This a variation of direct payment method with the customer creating his own biller for example, payment of rent to
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landlord. The landlords account details would typically be entered and payment made on a recurring basis. Shopping A customer with Internet banking access can buy from merchants registered with us and pay through the direct debit facility on Axis Banks website. MOBILE BANKING Mobile banking was launched by the bank in October 2004, within the last one and a half year, the customer base has grown to over five lacs subscribers as of April 2006. Axis Bank Offers the Automatic Alerts service in mobile banking: A subscriber is alerted through SMS on the activities in his account with automatic alerts for every debit in his account of more than Rs. 5,000. Also if the customer is registered for bill payments, he receives an alert as soon as a bill is presented by the biller for payment.

Benefits Safety: Be alerted on any transaction above Rs. 5,000 in an individuals account so that action can be initiated promptly in case of any misuse of the account. Convenience.: Know the status of the account from wherever an individual are. PAYMENTS BILL PAY (Fee yourself) Axis Banks Bill pay service enables an individual to make secure payments from the comfort of his home or office. So its time to say
58

goodbye to late payment fines, long queues, lost bills, and commissions paid to local errand boys. Features Pay bills without stepping out of your home or office Link multiple bills to your account View and pay bills anytime, anywhere Fast, convenience and hassle-free Access to all major utility billers Get updates for pending bills ELECTRONIC CLEARING SERVICE ECS is an electronic clearing system that facilitates paperless credit/ debit transaction directly linked to an individuals account and also provides for a faster method of effecting periodic and repetitive payments

Benefits of ECS (debit) Through ECS (debit) an individual can pay all his utility bills (electricity/telephone/mobile bills, credit cards etc.) mutual fund (sip), insurance premium, loan installment, credit donation and other bill payments. DIRECT TAX PAYMENTS The bank is authorized for Collection of Income or Other Direct Taxed on behalf of Central Board of Direct Taxes (CBDT) w.e.f. 1 October 2003. The assesses or taxpayers can pay income or Other card payments of

59

Direct Taxes as listed below at 214 authorized branches of Axis Bank across the country. Corporation Tax Tax on Companies and Tax deducted at Source from Companies Income Tax

Interest Tax and Expenditure Tax Wealth Tax

Gift Tax

Fringe Benefit Tax (FBT) Securities Transaction Tax (SIT) Banking cash transaction tax(Bctt) Other tax deducted or collected at source (TDs or TCS) on salaries on employees income from fix deposit , vendor payments, rent ,income from game shows or lottery ,etc. Any other direct tax including advance tax

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PENSION DISBURSEMENT CENTRAL CIVIL PENSION DISBURESEMENT The Bank is authorized by RBI and Central Pension Accounting Office (CPAO) for disbursement of Central Civil Pension through its 218 authorized branches across the country. The details towards availing Pension Disbursement Facility from Axis Bank is as under : For existing Pensioners of Central Govt. Departments and Ministries This facility can be availed by opening a Pension Payment Savings Bank Account with any authorized Axis Bank Branch and thereafter following the necessary procedures prescribed by CPAO for change of Bank for Pension Account for receiving on drawing pension. For prospective Pensioners of Central Govt. Departments and Ministries This facility can be availed by opening a Pension Payment Savings Bank Account with any authorized Axis Bank Branch and providing the account details to the pay Accounts Office (PAO) of the concerned Department of Ministry prior to retirement. In case of existing Axis Bank customers, the details of the Saving Bank Account with the Bank need to be provided to the Pay and Accounts Office of the concerned Department or Ministry prior to retirement. DEFENCE PENSION DISBURSEMENT The Bank is authorized by RBI and Ministry of Defense for disbursement of Pension to Armed Force (Army, Navy and Air Force) personnel through its 151 authorized branches across the country. The details towards availing Pension Disbursement Facility from Axis Bank is under.-

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For existing Pensioners of Central Govt. Departments and Ministries This facility can be availed by opening a Pension Payment Savings Bank Account with any authorized Axis Bank Branch and thereafter following the necessary procedures prescribed by CPAO for change of Bank for Pension Account for receiving on drawing pension. For prospective Pensioners of Central Govt. Departments and Ministries This facility can be availed by opening a Pension Payment Savings Bank Account with any authorized Axis Bank Branch and providing the account details to the concerned Pension Sanctioning Authority or Defense Unit prior to retirement. In case of existing Axis Bank customers, the details of the Saving Bank Account with the Bank need to be provided to the Pension Sanctioning Authorities (PSAs) of the concerned Defense Unit prior to retirement.

OTHER PENSION DISBURSEMENT The Bank has also received the authorization from RBI and Ministry of Communications and information Technology for disbursement of Telecom Pension through its 192 authorized Branches across the country and which shall commence shortly. OTHER SERVICES MOBILE REFILL : RECHARGE AT THE ATM An individual can recharge his mobile talk time at any of our ATMs. He doesnt even have to be an Axis Bank customer. All his need is a VISA debit or credit card. If he is an Axis Bank customer, then he can also use his Axis Bank debit card (both VISA as well as Master card). LOCKER (Unmatched protection for your valuables)

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A Safe Deposit Liker with Axis Bank is the solution to an individuals concern. Located at select branches in cities all over the country, our lockers ensure the safe keeping of an individuals valuables. Advantages Wide Availability: As o March 31, 2008 lickers are available at 562 branches and extension counters. Lickers available in various sizes. Direct debits for licker rentals from your account rid you of the hassle in writing out cheques. Extended banking hours to operate lockers. Competitive rentals. ONLINE SHOPPING (Safe ans Secure internet Payment) Axis Bank offers an individual the convenience of shopping at many major Online stores from the comfort of his home or office. All he need is an Internet enabled PC. He can choose & then get he items delivered at his doorstep. He can also avail of numerous online services, get to know about the current special offers/discounts and get a preview of the new items added on to the shelves by these online retailers/service providers. He can shop as much as he like and conveniently make instant payments by debiting his account through the secured payment channel, iConnect Our Internet banking platform. IPOSMART (Now invest in IPOs without letting go of your funds !) An individuals Axis Bank savings account now makes IPO application a seamless and hassle-free process. Instead of moving out funds from his account for application to an IPO, the amount can now simply be blocked. Which means as long as the IPO shares are not allotted, the funds stay with him and he also gain interest on them? Plus

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he get the security of having the refunds directly unblocked and made available to you, in his account itself ! The above service is being made available in accordance with the SEBI guidelines on ASBA (Applications Supported by Blocked Amount). Benefits Interest on funds which otherwise would have moved out of your savings account. No need to write cheques or make demand drafts. Convenient and transparent management of funds. Instant release / unblocking of funds after allotment / nonallotment of shares.

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RESEARCH METHODOLOGY

65

3. RESEARCH METHEDOLOGY
3.1 TITLE OF STUDY
Critical appraisal of product & services offered by Axis Bank with emphasis on deposit mix

3.2

DURATION OF PROJECT
Short term project.

3.3

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.

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 Draw out with conclusions and suggestion based on the analysis and the interpretation of data.

3.4

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.
3.5

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, 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 :
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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.

3.6 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

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 BANACASSRANCE 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. 3.7 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.

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70

FACTS & FINDINGS

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4. FACTS & FINDINGS

Q.1 Which are group do you belong(AGE WISE) ? S. No. 1 2 3 4 Age Group Less than 25 25 to 40 40 to 55 Above 55 No. of Respondents 6 18 10 4

Q.2

What is your occupation ? Age Group Service Business Student Others No. of Respondents 18 10 6 6

S. No. 1 2 3 4

Q.3

Please specify your annual income? Age Group Less than 1 lakh 1 to 2 lakh 2 to 3 lakh 3 to 4 lakh More than 4 lakh No. of Respondents 6 8 8 8 10

S. No. 1 2 3 4 5

Q.4

What features/attributes, while opening an account do you expect from a bank ?

S. No. 1 2 3

Age Group Quick Services Proper information Working hours

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No. of Respondents 16 8 6

4 5

Less Formalities Variety of Product

6 4

Q.5

What kind of account do you have in Axis Bank ? Age Group Saving Account Current Account Fixed Deposits NRL Account Others No. of Respondents 18 10 6 2 4

S. No. 1 2 3 4 5

Q.6

Who influenced to open an account in Axis Bank ? Age Group Friend and Relative Advertisement Bank Employees Prospectus No. of Respondents 14 12 10 4

S. No. 1 2 3 4

Q.7

Your remark on products of Axis Bank ? Age Group Excellent Good Average Poor No. of Respondents 12 16 10 2

S. No. 1 2 3 4

Q.8

In comparison to other bank how would you rate Axis Bank ? Age Group Excellent
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S. No. 1

No. of Respondents 8

2 3 4 5

Good Average Poor Cant Say

18 10 2 2

Q.9

How long did your wait in queue ? Age Group 0-5 Minute 5-10 Minute More than 10 Minute No. of Respondents 24 12 4

S. No. 1 2 3

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Q.10 do you think the number of counter available are sufficient ?

S. No. 1 2 Yes No

Age Group

No. of Respondents 32 8

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ANALYSIS & INTERPRETATION

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5. DATA ANALYSIS & INTERPRETATION

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

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.

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Q.2 What is your occupation ?

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.

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Q.3 Please specify your annual income?

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.

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Q.4 What features/attributes, while opening an account do you expect from a bank ?

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 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 this 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.

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Q.5 What kind of account do you have in Axis Bank ?

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.

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Q.6 Who influenced to open an account in Axis Bank ?

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.

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Q.7 Your remark on products of Axis Bank ?

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 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.

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Q.8 In comparison to other bank how would you rate Axis Bank ?

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.

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Q.9 How long did your wait in queue ?

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

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

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

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SWOT ANALYSIS

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6. SWOT ANALYSIS
Strengths
Support of various promoters High level to services
Knowledge of Indian market

Strong management team Comprehensive range of financial products & Services

Weaknesses
Low market capitalization Not been fully able to position itself correctly Average volume of branch network

Opportunities
Growing Indian banking sector People are becoming more service oriented in the global market Technological changes Increase of new branch network

Threats
From various competitors

Foreign banks Government banks

Aggressive competition strategy among the main banks Economic uncertainty in global market

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CONCLUSION

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7. CONCLUSION
In this time of economy slump, where all options of Investment lacks the interest of people for one or other reason, FD still remains at the top in the mind of people as a known convenient and reward earning option for investing their hard earned savings. However falling banks rates have certainly lessen the faith of people inn it, but still it remains the first choice of small investors because it is synonymic with safe and fixed return giving alternative for investment of savings. The leitmotif of the hour is safety and security, high risk is out. Recent global economy slowdown has made negative influence on let investor perception of security. With the arrival of pink slip solute, people who were spending as though there will no tomorrow have turned savers. And savers are looking much more closing at investment avenues in order to optimize their returns at least risk. We found that :

Savings from the backbone for FD market. Savings of people are mainly affected y three factors.

1. Income higher the income, higher the savings. 2. Consumption higher the consumption, lower the savings. 3. Inflating higher the inflating rate, lower the savings. Axis Bank saving product is highly popular due to its In case of special saving Account, if bank provides the

various facilities, anywhere banking with ATM and Debit Card. cheques pickup facility then it can tap out more number of trusts and society.

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RECOMMENDATION & SUGGESTION

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8. RECOMMENDATION & SUGGESTION

Into the axis bank normally (25 to 40 age group) people are investing. Mostly service class persons prefer the axis bank in the

comparison of business and students and other class persons 25% persons of the avg.population investing into the axis

bank and the income status of the investors will be four lacks. Axis bank dont doing the extra formalities so the status of

the investors is being 40%. 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 adv. And marketing sector.

Axis banks products is normally good and some taking it

vice a versa. 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.

80%.

This bank providing less facility toward the consumer now it

is 57% but according to my suggestion it will be increase with

Axis bank providing counter facility 40% and it will be 82%

according to my perception.

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APPENDIX

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9. APPENDIX
QUESTIONNAIRE
Dear sir/madam I am management student conduction a survey on Axis Bank, Jaipur. I shall be very thankful, if you give your few minutes to me for answering few questions given below. Every information given by you will be for answering few questions given below. Every information given by you will be only for academic purpose. Name. Sex Age .. Occupation Q.1 Which age group do you belong ? a) b) c) d) Q.2 Less than 25 25 to 40 40 to 55 Above 55 Address ...

What is your occupation? a) b) c) d) Service Business Student Others

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Q.3

Please specify your annual income? a) b) c) d) e) Less than 1 lakh 1 to 2 lakh 2 to 3 lakh 3 to 4 lakh More than 4 lakh

Q.4

What features/attributes, while opening an account do you expect from a bank ? a) b) c) d) e) Quick Services Variety of products Less formalities of documents Working hours Proper information

Q.5

What kind of account do you have in Axis Bank ? a) b) c) d) Saving Account Current Account Fixed Deposits NRL Account

Q.6

Who influenced to open an account in Axis Bank ? a) b) c) d) Bank Employees Prospectus Advertisement Friend and Relative would you recommend

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Q.7

Your remark on products of Axis Bank ? a) b) c) d) Excellent Good Average Poor

Q.8

In comparison to other bank how would you rate Axis Bank ? a) b) c) d) e) Excellent Good Average Poor Cant Say

Q.9

How long did your wait in queue ? a) b) Yes No

Q.10 do you think the number of counter available are sufficient ? a) b) Yes No

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BIBLIOGRAPHY

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10. BIBLIOGRAPHY
Books
Dr. I. M. Pandey Financial Management (vikas publication)
M. Y. Khan P. K. Jain Financial Management (TATA McGraw

hill publishing company limited) J. N. Jain, R. K. Jainmodern banking and insurance (regal publication)

Websites
www.axisbank.com www.infinancials.com www.google.com
www.axisbank.com/xmlapplication/aboutus/financials/images/Ann

ual - Report - 2007. PDF.

Jitendr a
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Virahy as
M JVIRAHYAS@GMAIL.CO

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