Vous êtes sur la page 1sur 68

ACKNOWLEDGEMENT

I Surendra pratap singh present this project report on wholesale banking operations IN AXIS BANK LTD., Pali Marwar with a sense of great pleasure and satisfaction. I undersign with pleasure take this opportunity to thank all those related directly or indirectly in preparation of this project report. I started working on this project under the invaluable guidance of Honorable Mr. Girish parihar (Dpty. Manager) for which I am very much thankful for her valued time given for the purpose. Without her co-operation our project work would have been difficult to complete. I express our sincere thanks to Mr. Mrityunjai Atreya, (Branch Manager) in Axis Bank Ltd., Pali Marwar and staff in that organization. I am also thankful to Mr. Anil Kothari [Coordinator MBA FSM] to allow us to carryout this project.

Date: Place:

[Type text]

PREFACE

In our two years degree programme of M.B.A.(F.S.M.) there is provision for doing research training, after 3rd Semester. The essential purpose of this project is to give an exposure and detailed outlook to the student of the practical concept, which they have already studied in theory. For this purpose, I was assigned the project titled Wholesale Banking Operations at Axis bank Pvt ltd ( Pali Marwar ). It is a matter of great privilege to get training from Axis Bank Pvt. Ltd, one of the fastest growing organizations of its kind, dominating the Indian Market.

[Type text]

DECLARATION
I hereby declare that this project titled WHOLESALE BANKING OPERATIONS is a bonafied and authentic record of work done by me under the supervision of Mr. Anil Kothari. The work presented here is not duplicated from any other source and also not submitted earlier for any other degree/diploma to any university. I understand that any such duplication is liable to be punished in accordance with the university rules.

Surendra Pratap Singh MBA FSM ( IV SEM )

[Type text]

SR. NO. CHAPTER 1

TOPIC BANKING IN INDIA

PAGE NO. 5 9

CHAPTER 2

COMPANY PROFILE 2.1 Introduction of axis bank 2.2 History of Axis bank 2.3 Management of Axis bank 2.4 Milestone PROJECT INTRODUCTION 3.1 Project Introduction 3.2 Meaning of Wholesale Banking operations 3.3 Definitions of Banking 3.4 Meaning of Banking 23

CHAPTER 3

CHAPTER 4

PROJECT RESEARCH 4.1 Product of Axis Bank 4.2 Customer Service in Banking Operation 4.3 Traditional Banking Activities 4.4 Accounting for Bank Account 4.5 Economic Function 4.6 Banking Channels 4.7 Types of Investment Bank 4.8 Mortgage Banking 4.9 KYC (Know Your Customer)

27

CHAPTER 5

CHAPTER 6

CHAPTER 7 CHAPTER 8

TRAINING CONCEPT 5.1 Organization Structure of Axis Bank 5.2 Saving Account Information 5.3 Current Account Information 5.4 Training In Wholesale Banking Operations FINDINGS AND SUGGESTIONS 6.1 Findings 6.2 Suggestion 6.3 Competitors CONCLUSION BIBLIOGRAPHY

50

63

65 67

[Type text]

BANKING IN INDIA:
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process.

HISTORY:
The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
y y y

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 Bank of Hindustan and 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

[Type text]

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 approximately 1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the 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 banking in India as the Central Banking Authority. During those day s public has lesser 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:
y y y y y

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.

[Type text]

y y y

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 raised 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 liberalisation 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.

[Type text]

FIGURE: SCHEDULED COMMERCIAL BANK IN INDIA:

[Type text]

CHAPTER 2 COMPANY PROFILE

[Type text]

2.1 Introduction of axis bank:


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

2.2 History of Axis bank:


1993 - The Bank was incorporated on 3rd December and Certificate of business on 14th December. The Bank transacts banking business of all description. UTI Bank Ltd. was promoted by Unit Trust of India, Life

[Type text]

Insurance Corporation of India, General Insurance Corporation of India and its four subsidiaries. - The bank was the first private sector bank to get a license under the new guidelines issued by the RBI. 1997 - The Bank obtained license to act as Depository Participant with NSDL and applied for registration with SEBI to act as `Trustee to Debenture Holders'. - Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 crores each. 1998 - The Bank has 28 branches in urban and semi urban areas as on 31st July. All the branches are fully computerised and networked through VSAT. ATM services are available in 27 branches. - The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10 each at a premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for sale of 2,00,00,000 No. of equity shares for cash at a price of Rs 21 per share. Out of the public issue 2,20,000 shares were reserved for allotment on preferencial basis to employees of UTI Bank. Balance of 3,47,80,000 shares were offered to the public.

- The company offers ATM cards, using which account-holders can withdraw money from any of the bank's ATMs across the country which are inter-connected by VSAT. - UTI Bank has launched a new retail product with operational

[Type text]

flexibility for its customers. - UTI Bank will sign a co-brand agreement with the market, leader, Citibank NA for entering into the highly promising credit card business. - UTI Bank promoted by India's pioneer mutual fund Unit Trust of India along with LIC, GIC and its four subsidiaries. 1999 - UTI Bank and Citibank have launched an international co-branded credit card. - UTI Bank and Citibank have come together to launch an international co-branded credit card under the MasterCard umbrella. - UTI Bank Ltd has inaugurated an off site ATM at Ashok Nagar here, taking the total number of its off site ATMs to 13.m 2000 - The Bank has announced the launch of Tele-Depository Services for its depository clients. - UTI Bank has launch of `iConnect', its Internet banking Product. - UTI Bank has signed a memorandum of understanding with equitymaster.com for e-broking activities of the site. - Infinity.com financial Securities Ltd., an e-broking outfit is typing up with UTI Bank for a banking interface. - Geojit Securities Ltd, the first company to start online trading services, has signed a MoU with UTI Bank to enable investors to buy\sell demat stocks through the company's website. - Indiabulls has signed a memorandum of understanding with UTI Bank. - UTI Bank has entered into an agreement with Stock Holding Corporation of India for providing loans against shares to SCHCIL's customers

[Type text]

and funding investors in public and rights issues. - ICRA has upgraded the rating og UTI Bank's Rs 500-crore certificate of deposit programme to A1+. - UTI Bank has tied up with L&T Trade.com for providing customised online trading solution for brokers. 2001 - UTI Bank launched a private placement of non-convertible debentures to raise up to Rs 75 crore. - UTI Bank has opened two offsite ATMs and one extension counter with an ATM in Mangalore, taking its total number of ATMs across the country to 355. - UTI Bank has recorded a 62 per cent rise in net profit for the quarter ended September 30, 2001, at Rs 30.95 crore. For the second quarter ended September 30, 2000, the net profit was Rs 19.08 crore. The total income of the bank during the quarter was up 53 per cent at Rs 366.25 crore. 2002 - UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a Director of the Bank w.e.f. January 02, 2002. A C Shah, former chairman of Bank of Baroda, also retired from the banks board in the third quarter of last year. His place continues to be vacant. M Damodaran took over as the director of the board after taking in the reins of UTI. B S Pandit has also joined the banks board subsequent to the retirement of K G Vassal. - UTI Bank Ltd has informed that Shri Paul Fletcher has been appointed as an Additional Director Nominee of CDC Financial Service (Mauritius) Ltd of the Bank.And Shri Donald Peck has been appointed as an

[Type text]

Additional Director (nominee of South Asia Regional Fund) of the Bank. - UTI Bank Ltd has informed that on laying down the office of Chairman of LIC on being appointed as Chairman of SEBI, Shri G N Bajpai, Nominee Director of LIC has resigned as a Director of the Bank. 2002 - B Paranjpe & Abid Hussain cease to be the Directors of UTI Bank. - UTI Bank Ltd has informed that in the meeting of the Board of Directors following decisions were taken: Mr Yash Mahajan, Vice Chairman and Managing Director of Punjab Tractors Ltd was appointed as an Additional Director with immediate effect. Mr N C Singhal former Vice Chairman and Managing Director of SCICI was appointed as an Additional Director with immediate effect. -ABN Amro, UTI Bank in pact to share ATMs. -UTI Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank is scheduled to be held on October 24, 2002 to consider and take on record the unaudited half yearly/quarterly financial results of the Bank for the half year/Quarter ended September 30, 2002. -UTI Bank Ltd has informed that Shri J M Trivedi has been appointed as an alternate director to Shri Donald Peck with effect from November 2, 2002. 2003 -UTI Bank Ltd has informed BSE that at the meeting of the Board of Directors of the company held on January 16, 2003, Shri R N Bharadwaj, Managing Director of LIC has been appointed as an Additional Director of the Bank with immediate effect. - UTI Bank, the private sector bank has opeaned a branch at Nellore. The bank's Chairman and Managing Director, Dr P.J. Nayak, inaugurating the bank branch at GT Road on May 26. Speaking on the occasion, Dr Nayak said, This marks another step towards the extensive customer banking focus that we are providing across the country and reinforces our commitment to bring superior banking services, marked by convenience and closeness to customers.

[Type text]

-UTI Bank Ltd. has informed the Exchange that at its meeting held on June 25, 2003 the BOD have decided the following: 1) To appoint Mr. A T Pannir Selvam, former CMD of Union Bank of India and Prof. Jayanth Varma of the Indian Institute of Management, Ahmedabad as additional directors of the Bank with immediate effect. Further, Mr. Pannir Selvam will be the nominee director of the Administrator of the specified undertaking of the Unit Trust of India (UTI-I) and Mr. Jayanth Varma will be an Independent Director. 2) To issue Non-Convertible Unsecured Redeemable Debentures upto Rs.100 crs, in one or more tranches as the Bank's Tier - II capital. -UTI has been authorised to launch 16 ATMs on the Western Railway Stations of Mumbai Division. -UTI filed suit against financial institutions IFCI Ltd in the debt recovery tribunal at Mumbai to recover Rs.85cr in dues. -UTI bank made an entry to the Food Credit Programme, it has made an entry into the 59 cluster which includes private sector, public sector, old private sector and co-operative banks. -Shri Ajeet Prasad, Nminee of UTI has resigned as the director of the bank. -Banks Chairman and MD Dr.P.J.Nayak inaugurated a new branch at Nellore. -UTI bank allots shares under Employee Stock Option Scheme to its employees. -Unveils pre-paid travel card 'Visa Electron Travel Currency Card' -Allotment of 58923 equity shares of Rs 10 each under ESOP. -UTI Bank ties up with UK govt fund for contract farming -Shri B S Pandit, nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) has resigned as a director from the Bank wef November 12, 2003. -UTI Bank unveils new ATM in Sikkim

[Type text]

2004 -Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible Debenture Issue, issue fully subscribed -UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I) has been appointed as an Additional Director of the Bank w.e.f. January 20, 2004. -UTI Bank opens new branch in Udupi -UTI Bank, Geojit in pact for trading platform in Qatar -UTI Bank ties up with Shriram Group Cos -Unveils premium payment facility through ATMs applicable to LIC & UTI Bank customers -Metaljunction (MJ)- the online trading and procurement joint venture of Tata Steel and Steel Authority of India (SAIL)- has roped in UTI Bank to start off own equipment for Tata Steel. -DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold Incorporated, has secured a major contract for the supply of ATMs and services to UTI Bank -HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m -UTI Bank installs ATM in Thiruvananthapuram -Launches `Remittance Card' in association with Remit2India, a Web site offering money-transfer services 2005 - UTI Bank enters into a bancassurance partnership with Bajaj Allianz General for selling general insurance products through its branch network. -UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in Karnataka at Mangalore. 2006

[Type text]

-UTI Bank unveils priority banking lounge - UTI Bank launches operations of UBL Sales, its Sales Subsidiary Inaugurates its first office in Bengaluru -UTI Bank announces the launch of its Credit Card Business - UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market - UTI Bank Business Gold Debit Card MasterCard Launched - Designed for business related spending by SMEs and self employed professionals

2007 -AXIS Bank Ltd has informed that consequent upon handing over charge as Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), Shri. S B Mathur, the Nominee Director of SUUTI has resigned as a Director of the Bank w.e.f. December 06, 2007. -AXIS Bank Ltd has informed that Fitch Ratings on December 14, 2007, has upgraded the Bank's National Long-term rating to 'AAA(ind)' from 'AA+(ind)'. -AXIS Bank Ltd hasappointed Shri K N Prithviraj as an Additional Director on the Board at Directors of the Bank. - Company name has been changed from UTI Bank Ltd toAxis Bank Ltd. 2008 - Axis Bank launches Platinum Credit Card, India's first EMV chip based card - Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-Madurai road on April 16. 2009 - Axis Bank today said its board has recommended the appointment of Shikha Sharma, currently chief of ICICI group's life insurance business, as its next managing director and CEO. - Axis Bank has set up a new branch at Perumbavoor. The bank has a

[Type text]

network of 832 branches along with 8 extension counters and 3622 ATMs across the country. - Axis Bank, on Wednesday entered into a strategic alliance with Motilal Oswal, the financial services firm, in order to facilitate the online trading for the bank's customers. - AXIS Bank Ltd has informed that the Board of Directors of the Bank at its meeting held on June 01, 2009, inducted Smt. Shikha Sharma as an Additional Director of the Bank. - Axis bank has received final clearance from the Securities and Exchange Board of India (SEBI) to begin its mutual fund operations and will launch debt and equity schemes soon whereas IDBI Bank is awaiting the regulator's permit for an entry. - Axis Bank opened the new branch at Irinjalakuda while it has a network of 892 branches, 8 extension counters and 3,806 ATMs across the country. 2010 - Axis Bank Limited has informed that at the meeting of the Board of Directors held on January 15, 2010, the following decisions were taken: (1) To appoint Dr. Adarsh Kishore, former Finance Secretary, Government of India and former Executive Director, International Monetary Fund representing Bangladesh, Bhutan, India and Sri Lanka, as the Non-Executive Chairman of the Bank, subject to RBI approval; (2) To appoint Shri S.B. Mathur, former Chairman, LIC and the National Stock Exchange of India, as an Additional Independent Director, with immediate effect. - AXIS Bank Ltd has appointed Shri M. S. Sundara Rajan, former CMD, Indian Bank as an Additional Independent Director with immediate effect.

2.3 Management of Axis bank


Promoters: Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 Crore, LIC - Rs. 7.5 Crore and GIC and its four subsidiaries contributing Rs. 1.5 Crore each SUUTI - Shareholding
[Type text]

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

[Type text]

Board of Directors

The members of the Board are : Dr. Adarsh Kishore Smt. Shikha Sharma Shri S. K. Chakrabarti Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Shri Prasad R. Menon Shri R. N. Bhattacharyya Chairman Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director Director

[Type text]

Shareholding Pattern
as on 31/03/2011

Sr. Name of the Shareholders No. A 1 2 3 4 5 6 7 Promoter Shareholding Administrator of the Specified Undertaking of the Unit Trust of India - (SUUTI) Life Insurance Corporation of India General Insurance Corporation of India The New India Assurance Company Limited National Insurance Company Limited The Oriental Insurance Company Limited United India Insurance Company Limited

No. of shares held % stake to Total

97,224,373 39,262,917 7,575,000 3,851,361 2,380,000 1,395,362 1,088,479 152,777,492

23.68 9.56 1.85 0.94 0.58 0.34 0.27 37.21

Total promoter shareholding A B 8 9 10 11 Domestic shareholders Indian FIs and Banks Indian Mutual Funds Indian bodies corporate Indian residents

7,160,996 13,873,854 22,961,366 20,524,403 64,520,619

1.74 3.38 5.59 5.00 15.72

Total domestic shareholding B C 12 13 Foreign shareholders FIIs FDI (GDR)

154,706,202 37,712,095

37.68 9.19

[Type text]

14 15 16

Foreign Bodies DR Foreign Banks/Foreign Nationals Non-Resident Indians

155,320 4,794 669,321 193,247,732 410,545,843

0.04 0.00 0.16 47.07 100.00

Total Foreign shareholding C Total A+B+C

[Type text]

CHAPTER 3 PROJECT INTRODUCTION

[Type text]

3.1 PROJECT INTRODUCTION


As a part of curriculum the students of MBA have to undergo Summer Internship Program (SIP). Wherein a student gets the knowledge about practical life, how the work is done in companies, how to get acquainted with working conditions and other many such things, etc. the main aim behind this program is that students get some experience with which he could get assistance while searching the job. This program is generally provided by a company and it lasts for at least two months. Students as per their specializations could apply for SIP and get the opportunity to work in a company, which the college suggests. As a management student I also have to undergo SIP. I got the opportunity to complete this program in AXIS BANK LTD., for three months. Axis bank is one of the leading BANKS in banking sector in India. First of the two months was devoted to training. Our training started with the session of information about bank product and sales and - what is the meaning of the concepts, importance of sales and marketing was taught. The second part was about open an account- why we open an account in bank, about the banking sector- as avenue for investment, how banking sector is Better Avenue for investment. The next session was about detailed knowledge about banking sector- how to sell these products in market. The last session was about the practical knowledge about how to get appointment of customers and how to convince them to take the product. In the second month we have sell the products directly in the market, procedure of selling the products etc. 3.2 MEANING OF WHOLESALE BANKING OPERATIONS The Wholesale Banking contains products sold to large and middle market commercial companies, as well as to consumers on a wholesale basis. This includes lending, treasury management, mutual funds, asset-based lending, commercial real estate, corporate and institutional trust services, and investment banking through Wells Fargo Securities. The company also owns Baring ton Associates, a middle market investment bank. Wells Fargo historically has avoided large corporate loans as stand-alone products, instead requiring that borrowers purchase other products along with loans which the bank sees as a loss leader. One area that is very profitable to Wells, however, is asset-based lending: lending to large companies using assets as collateral that are not normally used in other

[Type text]

loans. This can be compared to subprime lending, but on a corporate level. The main brand name for this activity is "Wells Fargo Foothill," and is regularly marketed in tombstone ads in the Wall Street Journal. Wells Fargo also owns Eastdil Secured, which is described as a "real estate investment bank" but is essentially one of the largest commercial real estate brokers for very large transactions (such as the purchase and sale of large Class-A office buildings in central business districts throughout the United States). The wholesale banking operations consist of the following transactions: 1. Opening of Account 2. Issue of Check book 3. International Debit / Credit Card 4. Issue of Demand Draft (DD) 5. Net banking 6. e-mail statement 7. phone banking 8. Insta Query 9. Insta Alert 10. Bill pay 11. Passbook 12. Quarterly Account Statement 13. Loan Facility

3.3 DEFINITIONS OF BANKING  A bank is a financial institution licensed by a government. Its primary activity is to lend money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds.  Banking can also be defined as engaging in the business of keeping money for savings and checking accounts or for exchange or for issuing loans and credit.

[Type text]

 Transacting business with a bank; depositing or withdrawing funds or requesting a loan.  Bank - a supply or stock held in reserve for future use (especially in emergencies) 3.4 MEANING OF BANKING An organization, usually a corporation, chartered by a state or federal government, which does most or all of the following: receives demand deposits and time deposits, honors instruments drawn on them, and pays interest on them; discounts notes, makes loans, and invests in securities; collects checks, drafts, and notes; certifies depositor's checks; and issues drafts and cashier's checks.

[Type text]

CHAPTER 4 PROJECT RESEARCH

[Type text]

4.1 PRODUCT OF AXIS BANK


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

[Type text]

Personal Accounts

EasyAccess Savings Account Krishi Savings Account Prime Savings Account Salary Account Women's Savings Account Priority Account - Resident Demat Account Senior Citizen's Account Defence Salary Account Trust/NGO Savings Account Azaadi - No Frills RFC(D) Account Pension Savings Account

[Type text]

EasyAccess Savings Account

Banking made easy Want a savings account that transcends geographical boundaries?

Presenting, Axis Bank's EasyAccess Savings Account. The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. EasyAccess Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. You can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers. At-par cheque ATM Network Anywhere Banking Telebanking Internet Banking SMS Banking Quarterly account statement Quarterly interest @ 4% per annum Free monthly e-statement.

Krishi Savings Account


Kheti Ho Khushhali Ki Axis Bank offers a unique savings account which is easy to operate and allows you to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and others employed in the allied agricultural activities sector. Thus this product has been called the Krishi Savings

[Type text]

Account. The Krishi Savings Account has also been extended for the below given "Allied Agricultural Activities": Animal Husbandry; Dairy/Poultry Farming {Members of Village Level Co-op Societies Such as Milk Co-op Society, Kharedi Vechan Sangh, Self help Groups Etc}; Fishery & Aquaculture Sector; Horticulture; Sericulture; Floriculture; Handicraft Industry (Registered with Khadi and Gram-Udyog Dept); Fruits and Vegetable Vendors {Corporation licence, or letter from the Govt Authority}; Members of Tribal and Rural Development trusts {Such as Agakhan Trust, BIAF etc}; Vermi-compost and organic Manure Suppliers; Nursery Units; Landless Laborers. Average Balance Requirement This account is offered with the requirement of maintaining the half-yearly average balance of Rs 1000 only. International Master Debit Card The Krishi Savings Account entitles you to an International Master Debit Card with which you can access your account anytime through the Axis Bank ATM network free of cost. This card comes with: A cash withdrawal limit of Rs 25,000 per day Free Accident Insurance cover of Rs 2 lacs

Anywhere Banking Being a Krishi account holder, you are entitled to access our wide network of more than 1000 branches and 4055 ATMs across 440 cities. You can now easily carry out your transactions through any of the branches or ATMs. At Par Cheque Book Your Krishi Savings Account comes with the At-Par Cheque facility. This facility enables you to encash the cheques as local instruments at any of the 440 centres where the Bank has its presence, at no extra cost. Moreover, you can also issue cheques at other centers without any limit.

Prime Savings Account

[Type text]

Want a customized savings account to suit your specific financial requirements? At Axis Bank, we have always strived to pace our products with the growing needs of our customers. The Prime Savings account has therefore been created with your specific financial requirements in mind.

Wider accessibility As a Prime Savings account holder, you enjoy access to a wide network of over 1000 branches and one of the largest ATM networks (4055 ATMs as on 31st March 2009) in India giving you easy access to your account from almost any corner of the country. Greater convenience To simplify daily banking, your Prime Savings account comes with an international photosignature Debit Card. This unique card comes with withdrawal limit of Rs. 40,000 per day, facilitating transfer of funds, deposits of cash/cheques and payment of insurance premium (LIC). Your Debit Card also comes with a comprehensive insurance cover inclusive of zero lost card liability, purchase protection and personal accident insurance up to Rs. 2 lakhs. [To keep your personal accident insurance cover activated, you should have made a purchase transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident.]* More comfort Through our 24 hr Internet Banking and Tele Banking services, you can enjoy the ease of banking from home or office. Through these comprehensive services, you can access a range of facilities including online funds transfer, requests for a new chequebook, Financial Advisory Services (FAS), online shopping and information on mutual funds. Enhanced privileges The Prime Savings Account eases your banking experience by providing you a passbook and monthly statement of account to keep you updated on all your transactions and assist you better in managing your finances. Added speed Through the 'At Par' cheque facility, you have the unique advantage to encash your cheques as a local cheque at more than 330 centres where the bank has a presence at no extra cost. In addition the account enables you to issue cheques without any limit, which will be treated as 'At Par' across

[Type text]

these locations. You can avail of all these services with a minimum average balance of Rs 25,000 in metro/urban/semi-urban centers and Rs 10,000 in rural centers.

Salary Account
We, at Axis Bank, believe in providing total financial solutions to the employer as well as the employee, through the salary relationship. We understand that each employee in an organization is at a different station of life having different financial and banking needs. Customized solutions One solution may not fit all. Therefore, each employee in an organization is offered a zero balance salary account and associated privileges commensurate with her/his net monthly salary. Our Salary Account offering has six variants, as follows: Prive Salary - For employees with net monthly salary of Rs.5,00,000/- or more Wealth Salary - For employees with net monthly salary of Rs.2,00,000/- or more Priority Salary - For employees with net monthly salary of Rs.75,000/- or more Prime Salary - For employees with net monthly salary of Rs.25,000/- or more Easy Access Salary - For employees with net monthly salary of Rs.9,000/- or more Salary Plus - For employees with net monthly salary of Rs.9,000/- or more. Currently being offered only to existing relationships Smart Pay Card - For employees with net monthly salary less than Rs.9,000/-

[Type text]

Benefits for the employees Convenience in banking: Anywhere Banking at any of our over 1200 branches and a network of over 5500 ATMs spread across more than 796 centers Multi-city at par chequebooks Electronic Fund Transfer facility across all banks in India Internet Banking with Fund transfer facility to self and third party accounts 24x7 convenience at no charges with Axis Mobile Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/- balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc Benefits on charges: No penal charges related to minimum balance Concessions on Pay Orders / Demand Drafts issued at Axis Bank locations Debit and Pre-paid Cards: International Debit Card with free Personal Accident cover Debit card for spouse in case of joint account Travel Currency Card providing great convenience to off-shore employees for carrying local currency Retail Lending: Facility of Temporary Overdraft with the salary account Preferential pricing on Retail Loans, as per eligibility criteria Additional Banking Privileges: Employee Reimbursement Account offered as a savings account variant with interest payable quarterly Benefits for the employer Efficient disbursal of salary Web Upload facility enabling your payroll department to upload salaries at its own convenience An Axis Bank official can be designated at your major locations for addressing all queries and issues from HR department An ATM can be specially installed at the work premises for added convenience in cash

[Type text]

withdrawals, subject to terms and conditions

Women's Savings Account


For the woman of today Presenting, Axis Bank's Women's Savings Account. The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Women's Savings Account gives you instant access to your money anywhere, anytime. With the Women's Savings Account, you can manage your money and your life and Furthermore Axis Bank's Women's Savings Account ensures that you have enough time for all the important things in life. Banking Privileges At-Par Cheque book ATM Network Anywhere Banking Telebanking Internet banking SMS Banking Quarterly account statement Quarterly interest @ 4% per annum Free monthly e-statement

Priority Account - Resident


We present to you Axis Bank - Priority. A service that would ensure not only the highest level of Priority but also preferential treatment to selected customers like you.

[Type text]

Demat Account

Axis Bank is a registered member (Depository Participant) of NSDL. In this system, physical security holdings are converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first depository. You can avail of all the depository-related services by just opening an account with NSDL through Axis Bank.

Demat Account Transfer of shares and settlements Receipt of Corporate Benefits Dematerialisation of shares Rematerilialisation Auto E-mailer Services Pledge-Hypothecation Freezing or Locking of Accounts Speed-e facility i-Connect Depository Services Tele Depository Services - Dial-YourDemat

Transfer of shares and settlementsTransfer and settlements have never been easy as it is under the depository system. All that is required is an instruction slip from you. If you are selling securities then it has to be a delivery instruction slip. If you are purchasing securities it has to be a receipt instruction slip or one time standing instructions for credit. Receipt of Corporate BenefitsEven securities entitlements like bonus and rights can be credited to your demat account electronically. All you have to do is to choose the right option in the share application form. Cash benefits like dividends and interest will be forwarded to you directly and not through the depository. MICR code in Bank details in your demat account would ensure credit of cash corporate action to your respective bank account. Dematerialisation of sharesAt your request we arrange to convert your physical holdings into electronic form. To do this you would be require to open a demat account with NSDL through us called "Beneficiary Owner Account" in the name and style in which the shares are held by you. After opening demat account, you can lodge the share certificates with us accompanied by a Dematerialisation Request Form (DRF), separate for each scrip. You are required to only make sure that NSDL has admitted that scrip for dematerialisation. You can get this verified at our branches offering demat services. RematerilialisationYou have the option to convert your electronic shares back to physical shares.
[Type text]

Pledge-HypothecationYou can also avail loan against shares by pledging shares in your demat account. This process is also much faster than in the case of physical shares. Freezing or Locking of AccountsYou can also keep your accounts frozen or locked for the span of time desired by you. No debits from your account will be made during this period. Speed-e facilityWith the introduction of settlement on T+2 basis, instruction for delivery of securities to broker's account is required immediately after sale of securities. Hence time available for submission of delivery instructions is limited. Axis Bank now permits submission of delivery instructions in electronic form using Internet based service called Speed-e. Physical delivery instructions need not be submitted in case you are submitting the instructions on Speed-e. Functioning of Speed-e Speed-e is an Internet based service offered by NSDL through which demat account holders (including brokers) can submit delivery instructions to us through Speed-e website http://speede.nsdl.com and also view the status of such instruction. i-Connect Depository ServicesYou can access your holding and transaction statement of your demat account through internet services / website. Tele Depository Services - Dial-Your-DematAccess your Demat Account(s) through a telephone from any of the access centers. Just dial the Tele-Depository Services number and get all information about your account on Voice, Fax or even email. Dial-Your-Demat is available 24 hours a day, 365 days a year. This service offers you a wide range of facilities such as: Balance inquiry Statement of Demat account by fax or phone or email Transaction details by fax or phone or email Holding details by fax or phone or email Overdue cum Holding details by fax or phone or email Rejection details by fax or phone or email Change of PIN Auto E-mailer Services You can register for auto e-mailer services for getting holding and transaction statement on the registered mail id at the frequency defined by you i.e. either daily/weekly/monthly.

[Type text]

Senior Citizen's Account


Because life begins at sixty Are you seeking a banking style that compliments your Senior status? Presenting, Axis Bank's Senior citizen Savings Account. The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Senior citizen Savings Account gives you instant access to your money anywhere, anytime.Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact that a Senior citizen's banking requirements are wholly different and require special consideration. Banking Privileges At-Par Cheque book ATM Network Anywhere Banking Telebanking Internet Banking SMS Banking Quarterly account statement Quarterly interest @ 4% per annum Free monthly e-statement Free Senior Citizen ID card

Power Salute
Salute to the defence forces Are you looking for an account that fits with your life in the Defence Forces? Defence Salary Account from Axis Bank is a product designed keeping in mind how tough a life in the Defence Forces is. Not only does it come to you absolutely free, no minimum balance is required either. You can also access the entire Axis Bank network, including more than 896

[Type text]

branches and over 4055 ATMs (as on 31st December 2009) no matter where you are posted. With the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) you can now rest assured about your family and all their financial needs. It's our way of showing our appreciation to your work. Banking Privileges: At-par Cheque Facility Your job involves constant transfers across the country. With the at-par cheque facility it will no longer be necessary to set up new bank accounts with each transfer. Additional Debit Card Along with a free International Debit Card, you also get a free card for the joint account holder. This means that your child or spouse also enjoy the same benefits of banking with Axis Bank. Financial Advisory Services Our solutions answer to the twin goals of meeting your requirements and to diversify and spread the risk of your investment portfolio, so you can look forward to a comfortable and worry-free life. We first understand your exact investment needs and then design the perfect investment plan for you. Your investment plan could include investments in: Mutual Funds - Debt and Equity Bonds Axis Bank Fixed Deposits

[Type text]

Trust/NGO Savings Account


Thoughtful banking for people who spend their lives thinking of others Need special banking for special causes? Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organisations can devote all of their time to their noble motivations. Features A Savings Account for your Trust with Average Quarterly Balance (AQB) of Rs. 25,000 A multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever we are present. Free Anywhere Banking across all our Branches and Extension Counters and over all our ATMs. Free Demand Drafts or Pay Orders as and when required by you to remit funds. Free collection of cheques at outstation locations. Free monthly e-statement Monthly Statement of Account delivered at your doorstep. Facility for collecting donations in your account through our network of Branches and Extension Counters across the country, as well as through iConnect - our Internet Banking facility. Also, Axis Bank can offer the facility to donate funds to your Trust through our Internet Banking facility iConnect to its customers. An Axis Bank customer can donate any amount to your Trust through the Internet. In such cases, the savings account of the customer gets debited and the savings account of your Trust gets credited with the amount of donation at the same time. At the end of every month, the Bank will provide an MIS giving details of the amount of donations and the name of donor. This will enable the Trust to issue receipts to the donors. Free Internet Banking facility that enables you to view the status of your account, transfer funds and carry out a number of banking activities from the comfort of your home or office. Investment Advice: Our Financial Advisory Desk will provide portfolio management advice as well as help you undertake investments. Free Demat: To facilitate your investments, we offer a free Demat Account (charges due to NSDL must still be levied) to our esteemed account holders in the Trust or Society segment.
[Type text]

Constituent Subsidiary General Ledger (SGL) account: The Constituent Subsidiary General Ledger (SGL) account through which investments in Govt. securities are carried out comes with a host of value-added services: Investment advice related to the customer's g-sec portfolio Offer of better rates on sale of government securities from the Bank's stock of securities Concessions in transaction and service charges. (However charges that have to be directly passed on to the Clearing Corporation of India as part of the Negotiated Dealing System for trading in g-secs cannot be waved - a fact, which will be communicated up front.) Foreign Contribution (Regulation) Act [FCRA] accounts: The FCRA account enables approved organizations to receive foreign contributions for utilization in their activities in India. The Bank will provide assistance in the process of documentation and obtaining necessary approvals from Ministry of Home Affairs at New Delhi.

Azaadi - No Frills Account

Basic banking with zero balance Do you seek freedom from the necessity of a minimum balance?

Presenting, Axis Bank's Azaadi Account. A savings account that doesn't require a minimum balance.Experie unparalleled features and heightened convenience with Azaadi Account. You qualify for Azaadi if

The sum total of all credits to your account does not exceed Rs 1 lac during the Financial year, You do not intend to maintain an account balance higher than Rs 50,000 at any given instant, and You are unable to furnish full documentation as required ordinarily for fulfilling of account opening norm Product Features

Zero Balance Savings Account: No need to maintain a fixed, mandatory amount in your account. Instant Welcome Kit: Handed over to you at the time of account opening, the kit will consist of your accou debit card, debit card PIN, internet banking PIN and phone banking PIN numbers. International Debit Card: Which gives you access to over 4055 ATMs across the country, enabling you to m withdraw cash at any time of the day or night. Phone Banking and Internet Banking: You can conveniently check your balance, transaction details, etc an anywhere over telephone or using the Internet, for no extra charge. Free monthly e-statement

[Type text]

Resident Foreign Currency (Domestic) RFC(D) Account

If you pay commissions for foreign currency every time you travel abroad, if you spend sleepless nights wondering how to keep your foreign currency safe, if the frequent fluctuations in forex market tantalize you, if you regularly issue cheques and drafts for payments abroad or if you are a bibliophile who makes foreign currency payments for books purchased online, its time you had an Resident Foreign Currency (Domestic) Account with Axis Bank. Resident Indians and Foreign Currency Holding foreign currency is no longer restricted to the NRIs. For the first time Reserve Bank of India has allowed Resident Indians to maintain foreign currency accounts without any ceiling to it. This step is considered as a continuation of RBIs gradual endevour towards achieving 'Full Capital Convertibility'. The Product Offerings A Resident Foreign Currency (Domestic) Account, RFC(D), with Axis Bank entitles you to maintain non-interest bearing current account in four major currencies (USD, EURO, GBP and Japanese Yen). There will be no ceiling on the balances held in the account. Chequebooks denominated in USD or GBP or EURO or Yen will be issued on these accounts with 25 leaves. The cheques thereby branded as RFC (Domestic) Account will not be presented in clearing and will be payable only at the issuing branch. The min balance for such a current account will be USD 100 or GBP 60 or EURO 100 or Yen 20,000. There will be a penal charge of USD 5 or GBP 3 or EURO 5 or Japanese Yen 1,000 per quarter in case of failure to maintain the min balance requirements. The RFC(D) account holders will not be allowed any ATM facility as of now. However they can use 'iConnect' for enquiry purposes only.

Pension Savings Account


Are you a Pensioner seeking banking solutions tailored to your needs?
[Type text]

Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly different and require special consideration. Benefits Timely communication to the customer on receipt of the PPO No delays in commencement of pension disbursals - The Bank is handling the disbursement of Pension under a Centralised Pension Disbursement Module wherein the Pensioner records are credited centrally through its Centralised Pension Payment Hub (CCPH) at Mumbai. Timely issue of Form- 16A for tax deducted at source in the immediately previous financial year Timely revisions based on changes in rates of Pension or Dearness Allowance, done centrally from the CCPH Note The Bank is authorised by RBI and Central Pension Accounting Office (CPAO) for disbursement of Central Civil Pension through its 218 authorised branches across the country. The Bank is authorized by EPFO for disbursement of pension under the Employees Pension Scheme, 1995 in all the branches.

[Type text]

4.2 Customer service in Banking Operations


 Cheque Drop Box Facility RBI's Committee on Procedures and Performance Audit on Public Services has recommended that both the drop box facility and the facility for acknowledgement of the cheques at the regular collection counters should be available to customers and no branch should refuse to give an acknowledgement if the customer tenders the cheques at the counters.  Issue of Cheque Books: The Committee has observed that some banks do not allow depositors to collect their cheque book at the branch but insist on dispatching the cheque book by courier to the depositor. Further, it is stated by the Committee that the depositor is forced to sign a declaration that a despatch by the courier is at the depositor's risk and consequence and that the depositor shall not hold the bank liable in any manner whatsoever in respect of such despatch of cheque book. Committee has observed this as an unfair practice and advised banks to refrain from obtaining such undertakings from depositors. Banks should also ensure that cheque books are delivered over the counters on request to the depositors or his authorized representative.

 Statement of Accounts / Pass Books: The Committee has noted that banks invariably show the entries in depositor s passbooks / statement of accounts as "By Clearing" or "By Cheque". Further, in the case of Electronic Clearing System (ECS) and RBI Electronic Funds Transfer (RBIEFTR) banks invariably do not provide any details even though brief particulars of the remittance are provided to the receiving bank. In some cases computerized entries use sophisticated codes which just cannot be deciphered. With a view to avoiding inconvenience to depositors, banks are advised to avoid such inscrutable entries in passbooks statements of account and ensure that brief, intelligible particulars are invariably entered in passbooks / statements of account. Banks may also ensure that they adhere to the monthly periodicity prescribed by us while sending statement of accounts.

4.3 Traditional banking activities: Banks act as payment agents by


conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as banknotes and bonds. Banks lend money by making

[Type text]

advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account. Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to

4.4 Accounting for bank accounts


Bank statements are accounting records produced by banks under the various accounting standards of the world. Under GAAP and IFRS there are two kinds of accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and Expenses. This means you credit a credit account to increase its balance, and you debit a debit account to increase its balance.[7]This also means you debit your savings account every time you deposit money into it (and the account is normally in deficit), while you credit your credit card account every time you spend money from it (and the account is normally in credit).However, if you read your bank statement, it will say the opposite that you credit your account when you deposit money, and you debit it when you withdraw funds. If you have cash in your account, you have a positive (or credit) balance; if you are overdrawn, you have a negative (or deficit) balance. The reason for this is that the bank, and not you, has produced the bank statement. Your savings might be your assets, but the bank's liability, so they are credit accounts (which should have a positive balance). Conversely, your loans are your liabilities but the bank's assets, so they are debit accounts (which should have a also have a positive balance).Where bank transactions, balances, credits and debits are discussed below, they are done so from the viewpoint of the account holder which is traditionally what most people are used to seeing.

4.5 Economic functions


1. Issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash. 2. Netting and settlement of payments banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments.

[Type text]

This enables banks to economies on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them. 3. Credit intermediation banks borrow and lend back-to-back on their own account as middle men 4. Credit quality improvement banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. 5. Maturity Transformation banks borrow more on demand debt and short term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets). 4.6 Banking channels Banks offer many different channels to access their banking and other services:
y

A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers. ATM is a computerized telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank. Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay

[Type text]

y y

money to third parties. Banks also normally use mail to deliver periodic account statements to customers. Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity). Online banking is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website. Mobile banking is a method of using one's mobile phone to conduct simple banking transactions by remotely linking into a banking network. Video banking is a term used for performing banking transactions or professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a videoconference enabled bank branch

4.7 Types of investment banks


y

Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital market activities such as mergers and acquisitions. Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies

4.8 Mortgage Banking


Mortgage banking deals primarily with originating mortgage loans and servicing them. Read more about it here as well as about what a career in mortgage banking involves. Mortgage banking is meant for a single purpose, to service the real estate finance industry. Mortgage banking deals specifically with originating mortgage loans as well as servicing them. Mortgage banks are state-licensed entities from which consumers can get mortgage loans directly. Usually, mortgage banks avail funds from the Federal National Mortgage Association, or FNMA, also known as Fannie Mae, the Federal Home Loan Mortgage Corporation, or FHLMC, also known as Freddie Mac, or any other large companies that service mortgages, which are related to the secondary mortgage market. Here are a few pointers about the nitty-gritty of mortgage banking.

[Type text]

Mortgage Banks Specialize in Mortgage Loans: Unlike a savings bank that is federally chartered, in general mortgage banks specialize in only providing mortgage loans. Hence, customers do not deposit their money in these banks. As has been mentioned above, the secondary wholesale market is their primary source of funds. Freddie Mac and Fannie Mae are examples of the lenders in the secondary market. Mortgage Banks Differ in Size: While some mortgage banks can be nationwide, others can originate a volume of loan that can exceed that of a commercial bank that is nationwide. Many of these mortgage banks utilize specialty servicers like Real Time Resolutions to carry out tasks like fraud detection work and repurchase. Mortgage Banks have Two Sources of Revenue: The two main sources of income are from loan servicing fees (if they are into loan sevicing0, and fees from loan origination. Mortgage bankers, by and large, are choosing not to service the loans they have originated. That is because they are entitled to earn a servicereleased premium by selling them soon after the mortgage loans are closed and funded. The investor in the secondary market that purchases the loan has the ability of earning revenue for providing servicing of the loan every month the borrower keeps the loan. Different Banking Laws Apply to Mortgage Banks: Mortgage banks usually operate under banking laws that are quite different, according to the state they operate in. You will need to check each individual state s financial department or state banking in order to get list of mortgage bankers in each state. While federal laws apply to the operation of a federal bank, in terms of consumer protection, usually consumers have additional rights, which are applicable according to each state. Mortgage Bankers can be More Competitive: Since they only specialize in lending and do not have to subsidize any of the losses that other departments may have incurred, as in regular banking, mortgage bankers have the ability of being really competitive when lending for mortgage. However, they usually do not have the advantage of accessing adjustable rate mortgages that are low cost, which federal banks are typically associated with, and federal money access. A Career in Mortgage Banking: Professionals in mortgage banking in the job market today need to have a college degree in business or finance, or some specific

[Type text]

experience or training related to the field. Skills in good customer service, an inherent ability with numbers, and computer skills are also essential requirements for mortgage banking jobs. A mortgage banking professional s job involves reviewing credit scores, determining the kind of loan that is most beneficial for the customer and guiding them through the process of application as well as closing. The loan officer has to be very organized and detail oriented, and need to be able to handle the large amounts of paperwork and reporting that are required for getting loans approved, up to the closing. A mortgage banking professional also has to have thorough know-how about the regulations associated with federal mortgage as well as the various types.

4.9 KYC (KNOW YOUR CUSTOMER)


As per KYC guideline the RBI has advised banks to follow KYC guidelines of RBI mandates banks to collect three proofs from their customers they are 1 Photograph 2 Proof of Identity 3 Proof of address Accordingly, Axis bank has framed its KYC procedure according to which, a photograph and documentary proof of personal identification and address proof are required t be provided.The account Opening form Provides the nature of documents required / procedure to be followed for opening a new account. You may also log in to our website www.axisbank.com for such information which is displayed product-wise.

[Type text]

CHAPTER 5 TRAINING CONCEPT

[Type text]

5.1 ORGANIZATION STRUCTURE OF AXIS BANK

[Type text]

5.2 SAVING ACCOUNT INFORMATION


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

Types of Saving Account In Axis Banking


 Zero Balance Savings Account At Axis Bank it has been constant endeavor to create products specifically catering to your needs. The account while offering a whole range of services also addresses your latent need of having an account without the hassle of maintaining an average quarterly balance. Features: - 1.No Average Quarterly Balance requirement 2. Free International Debit Card with an Accidental Insurance cover up to Rs 2 lakhs* (charges for the primary holder are waived) 3. Free mobile banking facility 4. Access through more than 825 branches and more than 3595 ATMs 5. At-Par cheque facility with the clearing limit of Rs 50,000 6.24x7 Telebanking & Internet banking 7. Free quarterly statements 8. Free monthly e-statement Conditions Apply:1. Initial funding of Rs. 5,500. 2. Account maintenance fee of Rs. 500 per annum

 Krishi Savings Account (Kheti Ho Khushahali ki) Axis Bank offers a unique savings account which is easy to operate and allows you to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and true to its nature has been called the Krishi Savings Account. Some of the features of our new product are: Average Balance Requirement : This account is offered with the requirement of maintaining the half-yearly average balance of Rs 1000 only.

[Type text]

International Master Debit Card The Krishi Savings Account entitles you to an International Master Debit Card with which you can access your account anytime through the Axis Bank ATM network free of cost. This card comes with a cash withdrawal limit of Rs 25,000 per day. Free Accident Insurance cover of Rs 2 lacks. Anywhere Banking Being a Krishi account holder, you are entitled to access our wide network of more than 825 branches and 3595 ATMs across 440 cities. You can now easily carry out your transactions through any of the branches or ATMs. At Par Cheque Book Your Krishi Savings Account comes with the At-Par Cheque facility. This facility enables you to encash the cheques as local instruments at any of the 440 centers where the Bank has its presence, at no extra cost. Moreover, you can also issue cheques at other centers upto the limit of Rs 50,000.  Easy Access Savings Account (Banking made easy) y A :Accessibility y C :Convenience y C :Comfort y E :Earnings y S :Speed y S :Service Want a savings account that transcends geographical boundaries? Presenting, Axis Bank's Easy Access Savings Account. The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Easy Access Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. You can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers.

[Type text]

y y y y y y y y y

At-par cheque ATM Network Anywhere Banking Telebanking iConnect Mobile Banking Quarterly account statement Quarterly interest @ 3.5 % per annum Free monthly e-statement. You can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers.  Corporate Salary Account: Our Corporate Salary Power Offering is designed to offer payroll solutions through in a 24 X 7 environment. We leverage on our extensive network of distribution channels spread across 450 centers through a network of more than 827 branches and 3595 ATMs besides our superior service delivery model and product features, as a strong differentiator, to provide value to the end user. Benefit to Employers: y Efficient salary disbursal. Web Upload - Transfer salaries/reimbursements directly from your current account with Axis Bank to your employee's accounts using I Connect from your office. y Single-instruction salary credit - Same day salary credits for all companies having Corporate Account with Axis Bank. Dedicated Relationship Manager at metro locations to understand the financial requirements of your employees. Benefit to Employees: y No minimum balance criteria. y Unparalleled Access - Anywhere banking facility through our network of Branches, ATM and Internet banking facility. y AT Par cheque books payable locally at all Axis Bank locations. y International Debit cum ATM cards with enhanced Cash withdrawal facility and other value add ons. y Online Banking with funds transfer, online shopping and bill payment options. y Depository services with free online trading accounts.
[Type text]

y y

Meal Cards on a master card platform. Employee Reimbursement accounts as a savings account variant. Preferential pricing on loan products and credit cards and other banking products & services.

 Prime Savings Account: Want a customized savings account to suit your specific financial requirements? At Axis Bank, we have always strived to pace our products with the growing needs of our customers. The Prime Savings account has therefore been created with your specific financial requirements in mind. Through the 'At Par' cheque facility, you have the unique advantage to encash your cheques as a local cheque at more than 330 centers where the bank has a presence at no extra cost. In addition the account enables you to issue cheques up to Rs. 1 lakh, which will be treated as 'At Par' across these locations. You can avail of all these services with a minimum average balance of Rs 25,000 in metro/urban/semi-urban centers and Rs 10,000 in rural centers.

 Smart Privilege Account:(For the woman of today) In today's busy world it's tough being a working woman. Right from shuttling between a job and family to taking care of her finances she has to be on her toes all the time. Keeping this in mind, we at Axis Bank have designed a savings account best suited for the woman of today. With the Smart Privilege Account, you can manage your money and your life and as well as enjoy a host of lifestyle privileges. Furthermore Axis Bank's Smart Privilege Account ensures that you have enough time for all the important things in life.  Senior Privilege (Because life begins at sixty) Are you seeking a banking style that compliments your senior status? Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact that a senior citizen's banking requirements are wholly different and require special consideration.

[Type text]

Special Privilege (A Privilege assures the care you deserve): We have introduced Senior Citizen ID card for our Senior Privilege patrons. Let us briefly introduce the wide range of advantages it hold for you. Avail of Great benefits with Senior Citizen ID card ID card acts as an age proof. Enabling you to redeem every advantage that you are eligible for, this card will soon help you avail of certain never-before Senior-citizen benefits at various stores, service providers and installation across the nation. Feel safe Everywhere Apart from provide you with the power to claim great benefits, card also act as emergency information medium. In case of emergencies, it provides the doctors and authorities with vital data like your blood group, allergies, illnesses, address and emergency contact details. This ensures that you are well looked after in any situation, no matter where you are. Always a Privilege It will help in strengthen the bond with us and to be of assistance to you at all the times, no matter what your need be. Whether its loan, a savings account or any financial services that you wish to avail of, we will make sure that we're always be there by your side.  Power Salute (Salute to the defense forces) Are you looking for an account that fits with your life in the Defence Forces? Defense Salary Account from Axis Bank is a product designed keeping in mind how tough a life in the Defense Forces is. Not only does it come to you absolutely free, no minimum balance is required either. You can also access the entire Axis Bank network, including more than 2300 ATMs and 550 branch offices (and growing) no matter where you are posted. With the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) you can now rest assured about your family and all their financial needs. It's our way of showing our appreciation to your work. Banking Privileges: At-par Cheque Facility: Your job involves constant transfers across the country. With the at-par cheque facility it will no longer be necessary to set up new bank accounts with each transfer.

[Type text]

Additional Debit Card: Along with a free International Debit Card, you also get a free card for the joint account holder. This means that your child or spouse also enjoy the same benefits of banking with Axis Bank. Financial Advisory Services: Our solutions answer to the twin goals of meeting your requirements and to diversify and spread the risk of your investment portfolio, so you can look forward to a comfortable and worry-free life. We first understand your exact investment needs and then design the perfect investment plan for you.  Trust/NGO Savings Account: Thoughtful banking for people who spend their lives thinking of others Need special banking for special causes? Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organizations can devote all of their time to their noble motivations. Features:A Savings Account for your Trust with a concessional Average Quarterly Balance a multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever we are present. Free anywhere banking across all our Branches and Extension Counters and over all our ATMs. Free Demand Drafts or Pay Orders as and when required by you to remit funds. Free collection of cheques at outstations locations Free monthly e-statement Monthly Statement of Account delivered at your doorstep. Facility for collecting donations in your account through our network of Branches and extension counters across the country, as well as through iConnect our Internet Banking facility. Also, Axis Bank can offer the facility to donate funds to your Trust through our Internet Banking facility iConnect to its customers. An Axis Bank customer can donate any amount to your Trust through the Internet. In such cases, the savings account of the customer gets debited and the savings account of your Trust gets credited with the amount of donation at the same time. At the end of every month, the Bank will provide an MIS giving details of the amount of donations and the name of donor. This will enable the Trust to issue receipts to the donors. Free Internet Banking facility that enables you to view the status of your account, transfer funds and carry out a number of banking activities from the comfort of your home or office.

[Type text]

Investment Advice: Our Financial Advisory Desk will provide portfolio management advice as well as help you undertake investments. Free Demat: To facilitate your investments, we offer a free Demat Account (charges due to NSDL must still be levied) to our esteemed account holders in the Trust or Society segment.  Foreign Contribution (Regulation) Act [FCRA] accounts:

The FCRA account enables approved organizations to receive foreign contributions for utilization in their activities in India. The Bank will provide assistance in the process of documentation and obtaining necessary approvals from Ministry of Home Affairs at New Delhi.

5.3 CURRENT ACCOUNT INFORMATION


 CHANNEL ONE: (FOR SUCCESSFUL BUSINESSES) The Channel One Current Account is an effort in that direction where we take care of your day to day banking requirements leaving you with more time for your business. Channel One Current Account is most appropriate choice of successful businesses. At a monthly Average Balance (MAB ) of Rs. 10 lack. FEATURES: 1. Relationship Manager 2. Doorstep Banking 3. Anywhere Banking 4. Free Internet Banking 5. Free 24 hour Telebanking 6. Mobile Banking Service 7. International debit card 8. cheque Protection Faciltity 9. Free 24 hour cheque deposite facility 10. Payment of Government Taxes/ Dues 11. Foreign exchange services.  ZERO Hassle Balance: Small businesses rising on the growth graph need the right of nurturing and appropriate solution for their growing banking requirements. Recognizing these needs, Axis Bank present you the Local Current Account geared to answer all kinds of local business requirements. At a monthly Average Balance (MAB) of Rs. Nil. FEATURES:
[Type text]

1. 2. 3. 4. 5. 6. 7. 8. 9.

Zero Balance facility 75 free transactions every month Rebate on Annual Charges Upfrount Annual Fee Mobile Banking ATM cum International Debit Card Free Internet Banking Telebanking Free Monthly Account Statement

 BUILDERS AND REAL ESTATE: Axis Bank understands the increasing demands on businesses in this segment .Here s presenting the Axis Bank Builder & Real Estate Current Account a current account with unparalleled product features built to suit Builders & Realtors exclusively. This account offers you unmatched convenience while adding financial value to your businesses spread over geographies. . At a monthly Average Balance (MAB ) of Rs. 5 Lacs this account comes loaded with special facilities and benefits, most appropriate for your business. FEATURES: 1. Home Branch Cash Deposit 2. Non Home Branch Cash Withdrawal 3. Free Anywhere Banking 4. Cluster facility 5. Zero Balance account for Vendors and Suppliers 6. Franking Facility 7. Customer cheque printing 8. Internet Banking 9. Free 24-hour Phone banking 10. Mobile Alerts 11. ATM cum Debit Card 12. Free Monthly Account Statement

5.4 Training in Wholesale Banking Operations


 CORPORATES Corporate Banking reflects Axis Bank's strengths in providing our corporate clients in India, a wide array of commercial, transactional and electronic banking

[Type text]

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

[Type text]

Services, Money Market Desk, Derivatives Desk, Services to Cash Surplus Corporate, Services to Employee Trusts, Bankers to Rights/Public Issue, Tax Collection. Specialized Services: Axis Bank is one of the most trusted entities when it comes to specialized services like selling of precious metals to customers. Under specialized services you can also avail customized control of your value chain through our internet banking platform. Value Added Services: There is a plethora of services that we offer under value added services. There's corporate salary account which ensures smooth payment methods to your staff. You can avail an assortment of credit cards and debit cards from our merchant services. The following are the highlights of this service: Real Time Gross Settlement, Reimbursement Account, Custody Services, Corporate Salary Accounts, Merchant Services, Axis Bank Gold Business Credit Card Internet Banking: Internet banking is a revolutionary service under the banking sector and Axis Bank is a forerunner in providing you with this service. We provide state-of-the-art payment gateway services to industries and companies in order to ease transaction processing. This in turn enhances the credibility of your business and makes banking extremely cost-efficient. GOVERNMENT SECTOR: Axis Bank acts as an active medium between the government and the customers by means of various services. These services include : y Tax Collection wherein customers can directly pay their taxes like Direct taxes, Indirect taxes and Sales Tax collections at their local Axis Bank E-Ticketing - Helps the customer by providing him a direct access to book a Railway Ticket online and get it home delivered Opening of L/C's is done by the bank on behalf of Government of India, Mints and Presses, thus facilitating imports for the Government. Collection of levies and taxes on behalf of Municipal Corporations i.e. Kalyan -Dombivli Municipal Corporation, is undertaken by the Bank. Collection of stamp duty is done via franking mode in the state's of Maharashtra & Gujarat. The Stamp Duty Franking Facility is available at following branches in Maharashtra Fort, Chembur, Lower Parel, Mira Road, Thane (Talao Pali),

[Type text]

Panvel, Ratnagiri, Pune(FC Road), Kolhapur, Nagpur, Pimpri. The Stamp Duty Franking Facility is available at following branches in Gujarat Ahmedabad (Navrangpura), Kutch (Mundra), Baroda (Gotri Road), Surat (Ring Road), Bhavnagar & Vapi (GIDC). y Disbursement of Pension to retired Employees of Central Govt and Defence is directly done by Axis Bank along with the disbursement of pension to the members of EPFO (Employees Provident Fund Organisation) Electronic Collection of fees on behalf of DGFT is done by the bank too Ministry of Corporate Affairs - Collection of ROC fees for the Ministry through authorised Branches and Net Banking. Collection of Property Tax through Selected Branches on behalf of Municipal Corporation of Delhi

y y

[Type text]

CHAPTER 6 FINDINGS AND SUGGESTIONS

[Type text]

6.1 FINDINGS:
1. Bank is having 853 branches all over the country. 2. The number of branches should be increased.

6.2 SUGGESTIONS:1. Number of Branches should be increased covering a wider area in various states. 2. A wide publicity to be given about the organization and its products through various means of communications to keep growth moments. 3. More number of training and educational programmes should be included in Banks schedule.

4. Developing a learning culture through continuous learning process.

6.3 COMPETETIORS 1. ICICI Bank Ltd. 2.HDFC Bank Ltd. 3. State Bank of India 4. HSBC Bank 5.RBS (Royal Bank of Scotland) 6. Maharashtra Bank of India 7.Canara Bank 8. Andhra Bank 9. IDBI bank 10. Bank of India 11. Punjab National Bank 12. Central Bank 13. Allahabad Bank 14. ING Vysya 15. Centurion Bank

[Type text]

CHAPTER 7 CONCLUSION

[Type text]

7.1 CONCLUSION
My experience with Axis Bank Ltd. is outstanding. While working in Axis Bank I found that this bank has developed manifold in short period of time due to facilities and services provided to their customer and this growth rate can be keep it up if they start to go in semi-urban areas. In last couple of years they have opened new many branches and they should open many more. The working staff are very co-operative in nature and due to that the bank will also get good benefit. Axis Bank has provided their customer Net-banking facilities and due to that transactions are done fast. Charges at Axis Bank are on lower side when we compare it with other Banks.

[Type text]

CHAPTER 8 BIBLIOGRAPHY

[Type text]

8.1 BIBLIOGRAPHY
SR. NO. REFERENCE

A New Beginning : The Turnaround Story Of Indian Bank

2 3 4 5 6 7

Bank Marketing : Concepts And Applications Banking And Finance

Banking Developments in India

Basics of Banking Bank leaflet and Boucher

Internet Final-Year-Projects

[Type text]