1

APPENDIX 1

TITLE OF PROJECT REPORT

A study on the effectiveness of using banks as a channel for selling life
insurance products
Submitted by

RAHUL JAIN
in partial fulfillment for the award of the diploma
of

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

JAGAN INSTITUTE OF MANAGEMENT STUDIES
2012-2014 Batch

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APPENDIX 2

JAGAN INSTITUTE OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE
Certified that this project report A study on the effectiveness of using
banks as a channel for selling life insurance products is the bonafide
work of RAHUL JAIN of PGDM Batch 2012-2014 who carried out
the project work under my supervision.

SIGNATURE
<<Name>>
SUPERVISOR
<<AcademicDesignation>>
<<Full address of the Dept & College>>

SIGNATURE
Mr. Sameer Arora
SUPERVISOR
Branch Head
Ground Floor , Ward No. 38 ,
Bahadur Residency , Bamor Gate

DATE

Tonk -304001 ( Raj.)

Acknowledgement

This Internship has been a very good experience for me in the way that it
has given me the chance to understand the real world outside the classroom.
Ive learnt a lot about the office environment and my interpersonal skills &
self-confidence have improved significantly.

Firstly, I express my deep sense of gratitude to my honorable advisor Dr.

Mr. Devendra Sir for his endeavor approach and outstanding supervision by
which it has been possible for me to make a good combination of theoretical
& practical knowledge in preparing this report.

I forfeit my respect to Mr.Sameer Arora (B.H.) under whom I have learnt a

lot of practical knowledge about life insurance products as well as general
banking. I am also grateful to other employees of AXIS BANK of Tonk
Branch as well as Mr. Pradeep Sir, (Branch Operation Manager) for
cooperation and direction in getting necessary information.

Table of Contents
Page No
1. Background.
1.1
1.2
1.3
1.4
1.5
1.6
1.7

Benefits of Bancassurance
Indian Insurance Sector.
Impact of opening up of Insurance Sector.
Research Objective.
Methodology .
Data Collection Method.
Need For the Study

7
8
9
9
10
10
11

2. Introduction About Banking.

12

2.1
2.2
2.3
2.4
2.5
2.6

Definition of Banking
Evolution of Banks in India..
Banking after Independence..
Current Scenario
Interest Rate Policy
New Generation Banking..

3. Introduction Of AXIS Bank..

3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
3.9
3.10

Company Profile
Business Overview.
Board Of Directors.
Mission & Vision
Core Values.
Award & Recognition.
Key Milestones
Products...
About Insurance Partnership
Life Insurance Plans

13
14
15
18
18
19

20
21
23
24
25
25
26
27
30
32
33

4. Data Collection & Techniques

44

4. 1 Sampling..
4.2 Date Source...
4.3 Sampling Techniques

45
46
47

5. Data Analysis & Interpretation.

48

6. Comparison Between Axis Bank & Other

Banks...

59

7. Observation / Suggestions & Conclusion

65

8. Bibliography.

69

Background:
The rapid growth and globalization of financial markets is one of the
most significant developments in the world economy. This development
has far reaching consequences, not only for financial markets per se but
the growth and direction of world business. Financial deregulation and
innovations have changed the whole structure and functioning of financial
markets. The financial services environment has been undergoing major

changes. The Financial Companies are searching for highly efficient

distribution systems due to increasing competitive pressures and the
difficulty in sustaining product differentiation. These have led to price
competition, emphasis on reduction of marketing costs, product
differentiation and the extensive utilization of new channels. Not
surprisingly, distribution has become a critical element in marketing
strategy for selling of financial products. It has been gaining a more
prominent role among marketing variables and has become a major source
of competitive advantage.
With the opening up of Insurance sector in India, a new opportunity has
emerged For Insurance sector and Banking Sector. This has provided an
opportunity to both the sectors for enhanced sales and source of additional
income. It is the rise of a New dawn that has brought with it new
opportunities. From Innumerable insurers to affordable and quality cover
for the consumers, from increase in distribution channels to incorporating
information technology measures, from net selling to bringing about
increased transparency its all there.
The Insurance agent is no more the only distribution channel today for
insurance products. Increase in distribution channels has among others also
seen the concept of Bancassurance taking roots in India and it is
emerging to be a viable solution to mass selling of insurance products.
The Financial Sector Reforms introduced after the recommendations of
First Narasimham Committee, the contemporary financial landscape has
been reshaped. Banks, in particular, stride into several new areas and offer
innovative products viz Merchant Banking, Lease and Term finance,
Capital / Equity Market related activities, Hire-Purchase, Real Estate finance
and so on. Thus, present day banks have become far more diversified than
ever before. Therefore, their entering into insurance business is only a
natural corollary and is fully justified too as insurance is another
financial product required by the bank customers.

Bancassurance simply defined, is distribution of insurance products

through network of Banks. Many Banking Institutions and Insurance
Companies have found Bancassurance to be attractive and profitable
which complements to the core business. Bancassurance encompasses terms
such as Allfinanz (in German). This concept gained importance in the
growing global insurance industry and its search for new channels of
distribution. Banks with their geographical spread and penetration in terms
of customer reach of all segments have emerged as viable source for the
distribution of insurance products.

The Insurance Regulatory and Development Authority (the regulatory

authority for insurance business in India) refers Bancassurance as banks
acting as Corporate Agents for insurers to distribute insurance products.
Literature on bancassurance does not differentiate between the selling of Life
Insurance Products or Non-Life Insurance products through Bancassurance
channel. Accordingly, in this paper Bancassurance is defined to mean
banks dealing in insurance products of both life and non-life type in any
forms.

Benefits of Bancassurance:
Bancassurance is beneficial to all the concerned viz. Banking Sector, Insurance
Sector and the customers. It provides an opportunity to banks for product
diversification and a source of additional income. The enormous trust that the
banks command in the minds of the public is an important reason why
Insurance Companies seek to enter into wide ranging banking partnerships. The
banks in turn, find that the customers appreciate the provision of integrated
financial services at the bank branches, which in turn builds better customer
loyalty and retention levels. Insurance Companies see bancasurance as a tool
for increasing their market Penetration and premium turnover. The customer sees
bancassurance as a bonanza In terms of reduced price, high quality product,
professional guidance and delivery at doorsteps. The Insurance Companies and
Banks together find that their collaboration at providing a package of financial
services not only benefits customers but also maximizes their profits.

Benefits to the Banks:

Use of existing infrastructure.

Proximity to customers & large database.
Additional channel for generation of fee based revenue. As the profits
are declining in the traditional banking, banks need additional noninterest
income for their survival. It has been estimated that there is a hidden
goldmine of Rs. 1,80,000 crores of Annual Premium Income.
Optimizing manpower utilization.
Strengthening customer relationship.

Benefits to the Insurance Company

Ready-made distribution network 68,000 bank branches.

Access through a vast customer base, whole financial profile is known
30 Crores retail banking customers.
Economy in distribution cost.
Banks pivotal medium to lift level of insurance penetration in the
country.

Benefits to the Customers

Economy in cost of insurance.

High skilled and trained executives to bring them the benefits of
insurance.
Integrated financial service s under one roof.
Banks can meet important set of consumer needs.

Indian Insurance Sector :

The emergence and spread of Bancassurance has been one of the most
significant developments in the Retail Financial Services Sector in India. The
Indian Insurance Industry is growing very fast. Banks and Insurance
Companies see Bancassurance as the answer to the Indian retail financial
industrys future income. The banks in India have a client base of close to 120
Million and therefore are an ideal case for carrying bancassurance forward. A
unique aspect will be predominance of rura l bank branches in sales processes
and the closeness of the bank staff with customers in general in the rural
pockets. In order to capitalize on this new opportunity, several banks have
established Joint-Venture Companies with leading insurance majors of the world.
The Indian Insurance Industry upto April 1, 2000, comprised mainly two state
insurers, Life Insurance Corporation of India to conduct Life Insurance
business and General Insurance Corporation of India to transact the non-life

insurance business. A single company cannot take up both life and non-life
insurance activities in a competitive way as per law.

Impact of opening up of Insurance Sector

As anticipated and envisaged, the opening up of the sector has had several
positives for the Indian Insurance Sector. IRDA was established in the year
2000 as an exclusive Regulatory Authority for the insurance sector through the
enactment of IRDA Act, 1999. A number of amendments were brought in various
insurance related statutes viz. Insurance Act 1938, LIC Act 1956 and General
Insurance Business Nationalisation Act 1972. The progress in the overall

developments in the insurance sector was swift and more prominent after the
establishment of IRDA. The four public sector non-life insurance companies were
de-linked from being subsidiary of the General Insurance Company of India. The
upshot of these developments was the breakage of monopoly by public sector in the
insurance sector paving the way for the entry of private entities into the insurance
market and the era of competition set in with availability of wide range of insurance
products in the market than ever.
During the past few years, after the initial phase of privatization, the new
entrants have been busy developing new products, setting up the network, enrolling
agents, forming alliances with companies, banks and other intermediaries for
distribution of products, establishing systems for delivery of products, instituting
risk management systems to facilitate underwriting to facilitate underwriting and the
like. In the current ongoing phase, the companies are expected to consolidate their
operations and further enhance their market share with the infrastructure that has
already been created. The new life insurers have been infusing capital periodically
to maintain their solvency positions.
The nest few years will be critical for all the insurance companies, as the
sector is poised for higher growth. While the nationalized insurers will be
endeavoring to protect their market share, the new entrants will be vigorously
aiming to further improve their market standing. Each company in the industry will
focus on harnessing its strengths and improving its competitive position.

Research Objectives:
1. To examine whether or not Indian retail bank customers are aware of insurance
selling through bank branch networks and whether they are willing to purchase
insurance products from their banks.
2. To investigate the factors that influence Indian customers attitude towards
banks and insurance companies in relation to the provision of insurance
products.
3. To identify the reasons that Indian customers would buy insurance products
from banks and the specific insurance products that could be cross-sold by
banks.

Methodology:
Statement of the problem:
Globally, cross selling is a major component of the business of banks. In India too, it is
catching up fast with several of the banks. Axis Bank has made headway in selling the
insurance products along with the banking products. Cross selling would help the banks

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by boosting their fee income. So there is a scope to study how the concept of
bancassurance has been applied in Axis Bank.

Scope of the Project:

The study is limited to Axis Bank , Tonk Branch.

The study will be conducted on the basis of past years performance of the bank.

Limitations of the study:

Detailed information is not provided by the bank staff because of the privacy policy of
the bank.

Data collection method:

For the purpose of study the data has been collected from two sources mainly:
1)

Primary Data.

2)

Secondary Data.

PRIMARY DATA:
Primary Data is the data collected for the first time for the purpose to solve the
problem at hand. In this study the primary data is collected through questionnaire &
Personal Interview.
SECONDARY DATA:
The major sources of secondary data are as follows,
1. WEBSITES.
2. Broachers

Need for the study:

Squeeze on margins of fund based revenue has taken place in the banks now. Growing
disintermediation by corporate borrowers, better inventory practices that have reined in

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working capital needs and a liberalized external borrowing regime coupled with
dwindling international rates have eaten fund incomes of the bank. Banks have felt a
need to offset these through growing fee incomes particularly from retail side. So there
is a need to study how the bank is trying to increase its fee based revenue.

Staff retention and motivation is another big challenge for the banks now. While the
opportunities in other sectors are increasing, to retain the employees, bank must provide
diversification in the work. So there is a need to study how the bank is using the activity
of bancassurance to motivate the employees to remain in the bank.

Universal Banking- approach to provide all financial products under one roof; is another
need for the study. It is nothing but integration of the financial services industry in terms
of banking, insurance and securities business. The banks have been looking towards
bancassurance, a mechanism of distribution of insurance products through a banks
network, as a step towards universal banking. Moreover, hawking of insurance products
by banks is seen as a logical step for expanding their business and improving the bottom
line.

Optimum utilization of infrastructure and resources to

maximize revenue has also created the need for the study. It is necessary to study how
the bank is optimally utilizing the resources and infrastructure through the activity of
bancassurance.

Customer retention in the face of competition is very difficult

for the banks. If the bank provides any additional services along with the usual banking
services then only it can survive in the era of competition. So there is a need to study
how the bancassurance is helping the bank to retain its customers.

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INTRODUCTION
ABOUT BANKING

DEFINITION OF BANKING

The Banking Regulation Act, 1949 defines the term Banking as accepting, for
the purpose of lending or investment, of deposits of money from the public,

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repayable on demand or otherwise, and withdrawable by cheque, draft, order

or otherwise [Section 5 (b)].
A banking company must perform two essential functions, viz., (a) accepting of
deposits, and (b) lending or investing the same. If the purpose of acceptance of
deposits is not to lend or invest, the business will not be called banking business.
Accordingly, any company which is engaged in the manufacture of goods or carries
on any trade and which accepts deposits of money from the public merely for the
purpose of financing its business are not a banking company.
The phrase deposits of money from the public is quite significant. The banker
accepts deposits of money and not of anything else. The word public implies that a
banker accepts deposits of money from any one who offers his/her money for such
purpose. The banker, however, can refuse to open an account in the name of a person
who is considered as an undesirable person, e.g., a thief, a robber, etc. Acceptance of
deposits should be the major business of a banker.
The definition also specifies the time and mode of withdrawal of the deposits. The
deposited money should be repayable to the depositor on demand made by the latter
or according to the agreement reached between the two parties. The essential feature
of banking business is that the banker does not refund the money on his own accord,
even if the period for which it was deposited expires. The depositor must make a
demand for the same. The Act also specifies that the withdrawal should be effected
through an order, cheque, and draft or otherwise. It implies that the demand should
be made in a proper manner and through an instrument in writing and not merely by
verbal order or a telephonic message.

The underlying principle of the business of banking is that the resources mobilised
through the acceptance of deposits must constitute the main stream of funds which
are to be utilized for lending or investment purpose. The banker is, thus, an
intermediary and deals with the money belonging to the public.

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Section 7 of the Banking Regulation Act, 1949 makes it essential for every company
carrying on the business of banking in India to use as part of its name at least one of
the word- bank, banker, banking or banking company.

EVOLUTION OF BANKS IN INDIA

Ancient Hindu scriptures provide enough evidence of the existence of money lending
business in India. Mahajans, Shroff, Sahukars, etc. were enjoyed in banking business.
In the beginning of the 18th century, the East India Company set up a few
commercial banks on moderns lines. In 1770, first Indian bank known as the Bank of
Hindustan was started and was closed down twenty years later. Later, the East India
Company started three Presidency banks with Government participation. These were:
the Bank of Calcutta (1806), the Bank of Bombay (1840) and the Bank of
Madras (1843). These banks had the financial participation by the Government also.
During the 18th century, some other banks were also opened by Agency Houses in
Madras and Calcutta. All these banks failed. Since all the banks emerged due to
Agency Houses failed, the need of banking regulation in India was seriously felt. As
a result, Companies Act, 1833 was brought into force. The impact of the Agency
Houses got slowly reduced.

Allahabad Bank came into existence in 1865 and Alliance Bank of Simla in 1875.
The first purely Indian joint stock bank known as the Oudh Commercial Bank was
set up in 1880 and the Punjab National Bank was launched in 1894. The Swadeshi
movement in the country in 1906 encouraged the Indian entrepreneurs to start many
new banks. There were as many as 648 commercial banks in India by the end of

15

1947. As many as 161 banks failed in quick succession during 1913-1914 and the
peoples faith in the banking system was shaken. Thus, there was a great need of an
institution to control and regulate banking in the country. As a result, the Reserve
Bank of India was set up in 1935 for regulating the banks in the country and to act
as a banker to the Government.
In 1923, the three Presidency banks were amalgamated into Imperial Bank of India.
This bank played an important role in the economy of the country. After,
independence, it was nationalised in 1955 and renamed as the State Bank of India.
The State Bank of India opened a large number of branches in rural and semi-urban
areas.

BANKING AFTER INDEPENDENCE

When the country attained independence in 1947, there were 648 commercial banks
with 4,819 branches in India. Because of frequent failure of banks in the country, the
Government of India decided to regulate and reform the banking system. The
Reserve Bank of India was nationalised in 1949 and the Banking Companies Act
was passed in the same year. The name of this Act was later changed to Banking
Regulation Act in 1965. Enactment of the Banking Companies Act was an important
landmark for the smooth progress of commercial banks in the country.
State Bank of India was created by nationalisation of the Imperial Bank of India in
1955. The State Bank of India has opened a large number of branches in rural and
semi-urban areas and has launched several schemes for the farmers, artisans and
small scale units.

A scheme of Social Control on banks was enforced through statutory measures with
effect from 1st February, 1969. The banking industry saw a revolution after 14 major
commercial banks were nationalised in June, 1969. More than 90% of the bank

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deposits came under the control of the Government. Preference was given to rural
areas while opening branches. Targets of lending were also fixed for agriculture,
artisans, unemployed youth, small scale units, etc.
Regional Rural Banks scheme was launched on 2nd October, 1975. Six more leading
commercial banks were nationalised in 1980. As a result of the recommendations of
Sivaraman Committee, Agricultural Credit Department, Rural Planning and Credit
Cell and Agricultural Refinance and Development Corporation were combined
together to set up National Bank for Agriculture and Rural Development
(NABARD) in July 1982. Later, the Export and Import Bank of India (Exim Bank)
and the National Housing Bank were set up in 1948 and 1988 respectively.

Liberalisation in the 1990s

In the early 1990s, the then Narasimha Rao government embarked on a policy
of liberalisation, licensing a small number of private banks. These came to be known
as New Generation tech-savvy banks, and included Global Trust Bank (the first of such
new generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, UTI Bank (since renamed Axis Bank),ICICI Bank and HDFC Bank. This
move, along with the rapid growth in the economy of India, revitalised the banking
sector in India, which has seen rapid growth with strong contribution from all the three
sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the
norms for Foreign Direct Investment, where all Foreign Investors in banks may be given
voting rights which could exceed the present cap of 10%,at present it has gone up to
74% with some restrictions.

The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 464 method (Borrow at 4%;Lend at 6%;Go home at 4) of
functioning. The new wave ushered in a modern outlook and tech-savvy methods of

17

working for traditional banks.All this led to the retail boom in India. People not just
demanded more from their banks but also received more.

INDIAN BANKING SYSTEM

CURRENT SCENARIO
The industry is currently in a transition. On the one hand, the Public Sector Bank`s,
which are the mainstay of the Indian Banking System are in the process of shedding

18

their flab in terms of excessive manpower, excessive non Performing Assets (NPA`S)
and excessive governmental, while on the other hand the private sector banks are
consolidation themselves through mergers and acquisitions.
The private players however cannot match the Public Banker`s great reach great size
and access to low cost deposits. Therefore one of the means for them to combat the
Private Sector Bank`s has been through the merger and acquisition (M & A) route.
Over the last two years, the industry has witnessed several such instances. Private
sector Banks have pioneered internet banking, phone banking, anywhere banking,
mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined
various other services and integrated them into the mainstream banking arena, while
the Public Sector Banks are providing safety to their money kept in bank.
Meanwhile the economic and corporate sector slowdown has led to an increasing
number of banks focusing on the retail segment. Banks with their phenomenal reach
and a regular interface with the retail investor are the best placed to enter into the
insurance sector. Banks in India have been allowed to provide fee-based insurance
services without risk participation invest in an insurance company for providing
infrastructure and services support and set up of a separate joint venture insurance
company with risk participation.

INTEREST RATE POLICY:

As parts of its anti-inflationary policy, RBI has followed a strict policy of control and
regulation of Interest Rates, deposits rates of banks, Lending rates- Infact all kind of
interest rates were subject to strict control and regulation by RBI. Since 1988, RBI
reduces the ceiling rate on all bank advances. Subsequently the ceiling on interest
rate on inter-bank term deposits, bills rediscounting and inter-bank participation was
removed.

The rate of interest was permitted to be determined by market forces, following the
recommendations of Narassimham Committee in November, 1991.
The present position of interest rate regulation is:

19

RBI has continuously reduced the bank rate from 10% (1990-91) to 8.25%
(w.e.f. close of business of 03/05/2013).

The interest rates on domestic deposits have been de-controlled.

Lending rates of banks have also been largely de-controlled.

NEW GENERATION BANKING

The liberalize policy of Government of India permitted entry to private sector in the
banking, the industry has witnessed the entry of nine new generation private banks.
The major differentiating parameter that distinguishes these banks from all the other
banks in the Indian banking is the level of service that is offered to the customer.
Verify the focus has always been centered on the customer understanding his
needs, preempting him and consequently delighting him with various configurations
of benefits and a wide portfolio of products and services.
The popularity of these banks can be gauged by the fact that in a short span of time,
these banks have gained considerable customer confidence and consequently have
shown impressive growth rates. Today, the private banks corner almost four per cent
share of the total share of deposits. Most of the banks in this category are
concentrated in the high-growth urban areas in metros (that account for
approximately 70% of the total banking business). With efficiency being the major
focus, these banks have leveraged on their strengths and competencies viz.
Management, operational efficiency and flexibility, superior product positioning and
higher employee productivity skills.

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INTRODUCTION OF
AXIS BANK

COMPANY PROFILE

21

Axis Bank is the third largest private sector bank in India Axis Bank offers the entire
spectrum of financial services to customer segments covering Large and MidCorporates, SME, Agriculture and Retail Businesses.
The Bank has a large footprint of 1,947 domestic branches (including extension
counters) and 11,245 ATMs spread across 1,263 cities and towns in the country as on
31st March 2013. The Bank also has 7 overseas branches / offices in Singapore, Hong
Kong, Shanghai, Colombo, Dubai, DIFC Dubai and Abu Dhabi.
Axis Bank is one of the first new generation private sector banks to have begun
operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of
Unit Trust of India (SUUTI) (then known as Unit Trust of India),Life Insurance
Corporation of India (LIC), General Insurance Corporation of India (GIC), National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental
Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of
Unit Trust of India was subsequently transferred to SUUTI, an entity established in
2003.
With a balance sheet size of Rs.2,85,628 crores as on 31st March 2012, Axis Bank is
ranked 9th amongst all Indian scheduled banks. Axis Bank has achieved consistent
growth and stable asset quality with a 5 year CAGR (2007-12) of 31% in Total Assets,
30% in Total Deposits, 36% in Total Advances and 45% in Net Profit.

Subsidiaries
The Bank has set up six wholly owned subsidiaries:

Axis Securities and Sales Ltd. (Since renamed Axis Capital Ltd. )
Axis Private Equity Ltd.
Axis Trustee Services Ltd.
Axis Asset Management Company Ltd.
Axis Mutual Fund Trustee Ltd.
Axis U.K. Ltd.

Promoters
Axis Bank Ltd. has been promoted by the largest Financial Institutions of the country,
UTI, LIC, GIC and its subsidiaries. The Bank was set up in 1993 with a capital of Rs.

22

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.

Capital Structure

The Bank has authorized share capital of Rs. 500 crores comprising 500,000,000 equity
shares of Rs.10/- each. As on 31st March, 2012 the Bank has issued, subscribed and
paid-up equity capital of Rs. 413.20 crores, constituting 413,203,952 shares of Rs. 10/each. The Banks shares are listed on the National Stock Exchange and the Bombay
Stock Exchange. The GDRs issued by the Bank are listed on the London Stock
Exchange (LSE).

Distribution Network

The Bank has a network of 1947 domestic branches (including extension counters) and
11,245 ATMs across the country, as on 31st March 2013, the network of Axis Bank
spreads across 1,263 cities and towns, enabling the Bank to reach out to a large crosssection of customers with an array of products and services. The Banks overseas
network
consists
of
4
branches
in
Singapore,
Hong
Kong,
DIFC Dubai and Colombo and 3 Representative offices at Shanghai, Dubai, and Abu
Dhabi.

Business overview:

RETAIL BANKING
BUSINESS BANKING
CORPORATE CREDIT
TREASURY

23

INTERNATIONAL BANKING
SMALL AND MEDIUM ENTERPRISES
INFORMATION TECHNOLOGY
AGRICULTURE
FINANCIAL INCLUSION
HUMAN RESOURCES

FINANCIAL INCLUSION
The Bank perceives financial inclusion (FI) not as a corporate social responsibility or
a regulator driven initiative but as a large business opportunity that lies untapped in
the rural and unexplored section of the urban market. Till March 2012, the Bank has
opened over 4.4 million No-Frills accounts in over 7,607 villages through a network
of 15 Business Correspondents and nearly 6,000 customer service points. The Bank
has a strong presence in the Electronic Benefit Transfer (EBT) space and has covered
around 6,800 villages across 19 districts and 9 states till date with over 3.7 million
beneficiaries.
In the urban space, the Bank has launched financial inclusion initiatives in Bangalore,
Chennai and Delhi targeting migrant labourers, slum dwellers and other under-banked
sector of the urban population and has opened over 3.5 lac No Frill accounts. The
Banks financial inclusion efforts are not merely restricted to launching of financial
inclusion initiatives and sourcing basic No Frill accounts, but to also promote the
savings habits and enable the customers to obtain customized solutions for their
financial needs.
The Bank also has a range of other customised products for this customer segment
like different variants of Axis Uday No Frills Savings Accounts, Chhota RD, Chhota
FD, and Chhota SIP. The Bank has been one of the first few banks to have tied-up
with telecom companies to offer remittance led financial inclusion services on the
mobile platform.

BOARD OF DIRECTORS

24

NAME

DESIGNATION

DR. SANJIV MISRA

CHAIRMAN

SHIKHA SHARMA

MD & CEO

K.N. PRITHVI RAJ

DIRECTOR

V.R. KAUNDINYA

DIRECTOR

S.B. MATHUR

DIRECTOR

PRASAD MENON

DIRECTOR

RABINDRANATH BHATTACHARYYA

DIRECTOR

PROF. SAMIR K BARUA

DIRECTOR

A.K. DASGUPTA

DIRECTOR

SOM MITTAL

DIRECTOR

IREENA VITTAL

DIRECTOR

ROHIT BHAGAT

DIRECTOR

VARADARAJAN SRINIVASAN

ED CORPORATE BANKING

SOMNATH SENGUPTA

ED, CORPORATE CENTER

MISSION AND VISION

Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clients.

25

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.

CORE VALUES

Customer Satisfaction through Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality stressed on:
Periodic Customer Service Audits
Maximisation of Stakeholder value
Success through Teamwork, Integrity and People

Awards & Recognition

2012

Bank of the Year - Money Today FPCIL Awards 2012-13

Best Bank - CNBC-TV18 Indias Best Bank and Financial Institution Awards
2012
Best Bank - Runner Up - Outlook Money Awards 2012
Consistent Performer - Indias Best Banks 2012 Survey by Business Today &
KPMG

26

Fastest Growing Large Bank - Dun & Bradstreet - Polaris Financial Technology
Banking Awards 2012
Fastest Growing Large Bank - Businessworld Best Banks Survey 2012
Best Domestic Bond House - The Asset Triple A Country Awards 2012 - Our
Bank has been honored with this award for the third year in a row.
India Bond House of the year - IFR ASIA - Country Awards 2012
Deal Maker of the Year in Rupee Bonds - Businessworld Magna Awards - India's
Best Deal Makers 2012
The Best Emerging Bullion Dealing Bank - 9th India International Gold
Convention-2011-12
Best Acquiring Institution in South Asia - Visa LEADER Award at Visas 2012
APCEMEA Security Summit, Bali
Gold Shield for Excellence in Financial Reporting in the Private Banks category 2011-12 - ICAI (Institute of Chartered Accountants of India)

2011

Bank of the Year India The Banker Awards 2011

Best Bank in the Private Sector - NDTV Profit Business Leadership Awards 2011
Best Bank - Outlook Money Awards 2011
The Best Domestic Bank India - The Asset Triple A Country Awards 2011
Fastest Growing Bank - Bloomberg UTV Financial Leadership Awards 2012
Most Productive Private Sector Bank- FIBAC 2011 Banking Awards
3rd Strongest Bank in Asia -Pacific Region by Asian Banker
Brand Excellence Award- 2011(BFSI Sector) - Star News
Most Preferred Bank amongst retail consumers - CLSA survey on personal
banking trends
Best Bond House India - 2011 by Finance Asia
Best Risk Master award - (Private Sector Category) FIBAC 2011 Banking
Awards

2010

Best Debt House in India - Euromoney 2010

Best Domestic Debt House in India - Asiamoney 2010
Best Bond House in India - Financeasia 2010
Best New Private Sector Bank, Rank 2 - FE Best Banks Award 2010
The Best of Asia-Pacifics Biggest Listed Companies- second year in a row Forbes Fab 50
The AssetAwards 2010:Best Domestic Bank, India
The AssetAwards 2010:Best Domestic Bond House, India
Overall Winner & Consistent Performer -(Large Banks Category) - Business
Today Best Bank Awards 2010
Fastest Growing Large Bank - Business Worlds Best Banks Award 2010

27

Ranked No. 1 in "overall experience with bank staff" and "overall branch
facilities" by The Hindustan Times-MaRS Survey Report dated, 29th March,
2010

Key Milestones
2012

Opens the 10,000th ATM - Largest ATM network amongst private sector
banks in India
Reached 2 lakh installed EDC machines the highest for any bank in India
Becomes the first Bank in the world to reach $2 billion loading on prepaid
Travel CurrencyCards

2011

Launches India travel card - India's first and only Indian currency prepaid
travel card for foreign nationals
The Bank inaugurates Axis House, its new Corporate Office at Worli,
Mumbai

2010

Opens it's 1000th branch at MET Bandra Reclamation, Mumbai

Launches Platinum Credit Card, India's first EMV chip based card
Open sits Dubai Representative Office

Opens it's first international branch at Singapore

The first Indian Bank to successfully issue foreign currency hybrid capital
in the international market
Opens Representative Office in Shanghai
Launches credit card business
Opens the first of it's kind Priority Banking lounge in Pune

2008

2006

28

2005

Bank gets listed on London stock exchange

The Bank and Visa International launch mobile refill facility for all Visa
card holders in India

The Banks debit card base crosses the one million mark
The Bank opens its ATM at Thegu near the Nathula Pass in Sikkim. This
ATM is at the highest altitude in India
First Indian bank to launch the travel currency card
The Bank opens its 1000th ATM

2003

2002

Banks 100th branch opens at Tuticorin, Tamil Nadu

The Bank opens an ATM at the GolDak-Khana, (New Delhi GPO), the
first ATM at any post office in the country
Bank launches Corporate iConnect - the internet banking facility for
corporate customers

2001

Deposits base crosses Rs.10,000 crores

Banks first branch inaugurated at Ahmedabad by Dr.Manmohan Singh,

then Hon'bleFinance Minister, Government of India

1994

1993

29

Axis Bank (erstwhile UTI Bank) opens its Registered Office in

Ahmedabad and Corporate Office in Mumbai

Products:
Accounts

Saving Account
Current Account
Salary Account

Deposits

30

Fixed Deposit
Tax Saver fixed Deposit
Recurring Deposits
Encash 24

Safe Deposit Locker

Loans

Home Loan
Car Loan
Education Loan
Personal Loan
Loan Against Shares
Loan Against Property
Loan Against Security
Loan Against Gold

Cards

Credit Cards
Debit Cards

Investments

Silver Mohurs
Mutual Funds
Demat Account
8% Saving Bonds
IPO Smart

31

Insurance

Life Insurance
Health Insurance
Home Insurance
Travel Insurance
Motor Insurance

About Insurance Partnership

Axis Bank has tied up with Tata AIG General Insurance Company Limited (Tata AIG)
as a Corporate Agent for General Insurance to offer you a range of General Insurance
products from Tata AIG backed by its award winning Customer and Claims Services.
The Axis Bank-Tata AIG synergy will offer products for a range of insurance needs
such as Motor, Health, Travel, Home for retail customers and Marine, Liability,
Property etc for corporate customers. This association will leverage the strengths of
both companies; to bring to Axis Bank customers a comprehensive suite of insurance
products designed to protect all aspects of their lives.
Tata AIG is a joint venture between the Tata Group and AIG Inc. Tata AIG combines the
Tata Group's values and pre-eminent leadership position in India and AIG's global
presence as the world's leading international insurance and financial services
organization.

32

Axis Bank has entered into a corporate agency agreement with Max Life Insurance Co.
Ltd., one of the most reputed Life Insurance companies in India. Axis Bank is in line
with its core values of customer centricity, ethics, transparency, teamwork and
ownership has entered into this arrangement to distribute the best Life Insurance
solutions to its customers. This arrangement also earmarks the first step to top-class
customer service by setting up dedicated Max Life Toll Free helpline and technology
integration in bank branches to cater to Axis Bank customer queries who have bought
Max Life insurance policies.
This arrangement is complemented by Max Life Insurance's flexible product suite,
service excellence, and financial strength and internationally benchmarked training
processes, which ensure that we are able to deliver the true value of life insurance to our
customers. The product suite offered to our customers is based on the core needs of life
insurance for an individual.

LIFE INSURANCE PLANS:

Max Life Life Gain Plus

Max Life Whole Life Participating
Max Life Life Partner Plus
Max Life Maxis
Max Life Platinum
Max Life Flexi Fortune
Max Life Shiksha Plus II
Max Life College Plan
Max Life Fast Track Plan
Max Life Guaranteed Monthly Income Plan

33

Max Life Life Gain Plus:

Max Life Life Gain Plus 20/25 Participating Plan provides a unique opportunity where
you could just relax without worrying about your lifestyle. It's like an extended vacation
from where you need not come back, because your wealth continues to grow and your
lifestyle is guaranteed.

Policy Features:
o Guaranteed Maturity Benefit 110% of Sum Assured Plus accrued bonuses, if
any
o Guaranteed Death Benefit 200% of Sum Assured Plus accrued bonuses, if any,
from 5th policy anniversary onwards.
o Flexible Bonus Options
o Limited Premium Payment Term

Maturity Benefits

Upon maturity of the policy, we shall pay you 110% of the Sum Assured together
with Sum Assured of all paid up additions (if any)

Death Benefits

34

Upon death of life insured in the first five years of policy enforcement 100%
Sum Assured plus sum assured of paid up additions, if any
Upon death of life insured after five years of policy enforcement 200% of the
Sum Assured plus sum assured of paid up additions, if any
Criteria

Max Life Life Gain Plus 20

Participating Plan

Max Life Life Gain Plus 25

Participating Plan

Entry age

18 years to 55 years

18 years to 50 years

Maturity age

75 years

75 years

Policy Term

20 Years

25 Years

Premium Payment Term 6 / 10 years

6 / 10 / 15 years

Minimum Sum Assured Rs. 50,000

Rs. 50,000

Maximum Sum Assured No limit, subject to

underwriting

No limit, subject to
underwriting

Max Life Whole Life Participating Plan :

Max Life Whole Life Participating Insurance is a Traditional Plan which offers an
insurance cover till age 100. This plan is designed to provide you a lifetime of security
and provides you with the comfort that your near and dear ones will continue to live their
lives in comfort without financial worries even when you are not around.

Key Benefits and Features

Insurance cover up to age 100

Option to Participate in Progressive Bonuses
Tax benefits on premiums and maturity proceeds
Additional protection through riders

Bonus Options
From third policy year onwards, you may be eligible for bonus, and these will be paid
out based on your choice of bonus option:

Cash Bonus: Bonuses declared paid to policyholder in cash

Premium Offset: Bonuses declared can be used to pay a part of the premium

35

Paid Up Additions: Bonuses declared can be used to buy single premium

endowment benefit, which inturn can increase the Sum Insured and this will
mature along with base policy

Death benefit

On death of Life Insured upon attaining ten (10) years of age, an amount equal to
Sum Assured along with Sum Assured of paid-up additions, if any, is payable
On death of the Life Insured before attaining ten (10) years of age, there is refund
of all the premiums received, together with interest at the rate of four (4) percent
per annum, compounded annually, subject to maximum of Sum Insured.
Features

Specification

Minimum Entry Age of Life Assured (Last Birthday)

91 days

Maximum Entry Age of Life Assured (Last Birthday)

70 years

Expiry Age

100 years

Minimum Sum Assured

Rs 1 Lac

Maximum Sum Assured

Rs 10 Crores

Max Life Life Partner Plus Plan:

Max Life Life Partner Plus (Limited Pay Endowment to Age 75 Plan) is truly a plan
that will be with you in the later years. This plan would help you ensure that you have
a carefree retirement through an assured return of 212.5% of Sum Assured by the age
75. It offers support in your golden years, with a steady income to fuel your dreams,
independence, and pride.

Key Benefits and Features

Guaranteed money back of 7.5% of initial Sum Assured each year from age 61 to
75 of Life Insured
Limited Premium payment terms 3/7/10/20 years
Additional protection through riders

Bonus Options
From third policy year onwards, you may be eligible for bonus and these will be paid
out, based on your choice of bonus option

Cash Bonuses: Bonuses declared paid to policyholder in cash

Premium Offset: Bonuses declared can be used to pay a part of the premium

36

Paid Up Additions: Bonuses declared can be used to buy single premium

endowment benefit, which inturn can increase the Sum Insured and this will
mature along with base policy

features

Specification

Minimum Entry Age of Life

Assured (Last Birthday)

91 days

Maximum Entry Age of Life

Assured (Last Birthday)

55 years

Maximum Maturity Age

75 years

Minimum Sum Assured

Rs. 50,000

Maximum Sum Assured

Unlimited, subject to underwriting

Living Benefit

Between ages 61 to 75 of life insured, amount equal to 7.5% of initial Sum

Assured will be paid every year.

Benefit at Maturity

100% of Sum Assured together with Sum Assured of Paid-Up Additions, (if
any).

Death Benefit

1.
2.
3.

Death before age 10 yrs.: Refund of Premium with interest @

3% per annum, subject to a maximum of Sum Assured chosen.
Death after age 10 yrs. but before age 60 yrs.: Sum Assured
together with Sum Assured of Paid Up Additions, (if any).
Death after age 60 yrs.: Sum Assured (without deducting any
living benefit that may have already been paid) together with Sum
Assured of Paid Up Additions, (if any).

Max Life Maxis

Max Life Maxis, a unit-linked life insurance plan that helps you in planning your
finances better by balancing the equity and debt exposure automatically, so that your
future years are the best years of your life.

Key Benefits
Wealth Creation with safety of funds, Shorter Premium Payment Terms,
Flexibility of Protection Cover
Features

Specification

Entry Age
(Minimum/Maximum)

18 years to 55 years (Age last birthday)

Maximum Age at Maturity

70 Years

Sum Assured multiples

Age (Years)

Sum Assured Multiple

18-34 years

10/15/20 times Annual Premium

35 to 44 years

10/15 times Annual Premium

37
45 to 55 years

Premium Payment Term &

Policy Term

10 times Annual Premium

Premium Payment Terms: 7 Years and 10 Years Policy Term: 15 years fixed

Minimum Annual Premium Rs. 35,000

Maximum Annual Premium No Limit (subject to underwriting)
Premium payment Mode

Annual Mode Only

Death Benefit

Sum Assured + Fund Value

Maturity Benefit

Fund Value

Investment Options

Six Fund Options + Dynamic Fund Allocation

Riders Offered *

Max Life Personal Accident Benefit Rider

(UIN: 104C007V02)
Max Life Dread Disease Rider (UIN : 104C010V02)

Max Life Platinum Protect Plan

Max Life Platinum Protect Plan is designed especially keeping in mind your
requirements. A comprehensive solution that fulfills protection needs for you and your
family.
Key Benefits and Features

Cost-Effective Term Plan - One of the most competitive rates for life cover in
the industry. In case of death, your family will get the sum assured to take care of
their needs.
Low Premium Rates for leading a healthy lifestyle - Low premium rates for
non-smokers
Comprehensive Cover - Ensure you are ready for any eventuality by opting for
Max Life Dread Disease Rider (UIN 104C010V02) and/or Max Life Personal
Accident Benefit Rider (UIN 104C007V02).
Medical Report - Comprehensive medical report at the time of policy issuance

Death Benefit :
An amount equal to Sum Assured will be paid to the nominee in case of death of the Life
Assured.
High Sum Assured Discounts

38

On a sum assured of Rs. 50 Lacs or more, there is a discount of Rs. 15 per lac sum
assured
Reduced Insurance Cover
If Premiums have been paid for at least 15 consecutive Policy Years beginning with the
Effective Date and the Policyholder discontinues payment of further Premium(s), the
Policy will continue with a Reduced Insurance Cover as per the formula shown below.
Reduced Insurance Cover = [((Policy Year* 1) / Policy Term) 25%] * Sum Assured
Features

Specification

Minimum Entry Age 18 years

of Life Assured
(Last Birthday)
Maximum Entry
60 years
Age of Life Assured
(Last Birthday)
Maximum Cover
Ceasing Age

75 years

Sum Assured

Minimum: Rs. 25 lacs, subject to a minimum

premium of Rs. 5,000 Sum assured available in
multiples of 5 lac only Maximum: No Limit

Policy Term

10, 15, 20, 25 or 30 years

Max Life Flexi Fortune

Features & Benefits

Comprehensive protection through high sum assured multiples

Systematic Transfer Plan: A feature intending to provide you the benefit
through market volatility as the average entry price in the Growth Super Fund
will be the average of all investment done on the Growth Super Fund over the
policy year. Every month 1/12 of the initial units purchased shall automatically
switch from Secure Plus Fund to Growth Super Fund to make the most of
market volatility
Progressively increasing sum assured for increasing liabilities without
additional underwriting
Choice of premium payment options to suit cash flow patterns
Choice of seven well managed funds for investors of different risk profiles
Flexibility to make partial withdrawals to meet unplanned expenses

Protection
Let your life cover keep pace with inflation:
10% enhancement to life Cover each year with no increase in premium, starting
from year 2 till end of policy tenure (Progressive Auto Cover Enhancement PACE)

39

Get added protection with Max Life Personal Accident Benefit Rider and Max Life
Dread Disease Rider.

Particulars

Features

Minimum/ Maximum Age of Life Insured at

Entry (Last Birthday)

7 years - 50 years

Premium payment term / Policy Term

5 pay / 10 years term

10 pay / 15 years term
15 pay / 20 years term

Maximum Age of Life Assured at Maturity

70 years

Premium Payment Term

Limited Pay

Minimum Annual Target Premium

5 pay/10 years term

Rs. 50,000 p.a. for all modes
10 Pay/15 Pay variant
Annual Mode: Rs. 24,000 p.a.
Non-annual mode: Rs. 36,000 p.a.

Maximum Annual Target Premium

Rs. 100,000 p.a. for all premium modes

Sum Assured

Annual Premium X Cover Multiple

Up to age 30: 10/20/30 times of ATP
Age 31 to 40: 10/20 times of ATP
Age 41 to 50: Fixed 10 times of ATP

Max Life Shiksha Plus II

Key Benefits and Features
University Education Pool: On the policy maturity date, the Fund Value is paid out to
take care of higher education expenses for your child
Dynamic Fund Allocation: This investment strategy endeavors to safeguard your fund
from capital erosion, as the policy progresses and nears maturity and enable you to plan
your investment basis your life stage
Systematic Transfer Plan: A feature intending to provide you the benefit through
market volatility as the average entry price in the Growth Super Fund will be the average
of all investment done on the Growth Super Fund over the Policy Year. Every month
1/12 of the initial units purchased shall automatically switch from Secure Plus Fund to
Growth Super Fund to make the most of the market volatility
Talent Enhancement Withdrawal: If you feel your child has some special talent which
need further nurturing, you can withdraw specified amount as partial withdrawal from
your Fund Value for aiding their skill enhancement
University Education Support: In case of death, all future premiums are funded by the
Company

40

School Fee Support: In case of death, 10% of the Sum Assured is paid out immediately
on death and thereafter 10% of the sum assured will be paid at each policy year
anniversary to provide for school expenses subject to maximum of 100% of the sum
assured but not beyond the original term of the policy. Expenses subject to maximum of
100% of the sum assured but not beyond the original term of the policy
Particulars

Features

Eligibility

Life insured should have a child (which may include legally adopted
child) between age 0 to 18 years, to propose for this plan

Minimum/ Maximum Age of Life Assured at Entry Regular pay: 21 years to 50 years
(Last Birthday)
Limited Pay: 21 years to 55 years
Also, you must have a child
Policy Term

5 pay - 10 years term or

15 to 20 years, pick a term, Regular Pay

Maximum Age of Life Assured at Maturity

65 years (For both Regular and Limited Pay option)

Premium Payment Term

Regular Pay: Pick a term from 15 to 20 years or

5 pay - for 10 year term

Premium payment Mode

All Modes. Non-annual modes through ECS only

Minimum Annual Target Premium

Regular Pay
Annual Mode: Rs. 24,000
Non-annual mode: Rs. 30,000
Limited Pay
All modes minimum Premium is Rs. 50,000

Sum Assured

Annual Premium X Cover Multiple

Cover multiple: 20 (fixed)

Max Life College Plan

Key Benefits and Features
Protect your childs college fund against any eventuality:
In Max Life College Plan, a Money Back Life Insurance Plan, the policy continuance is
assured in case of Payor* meeting with death or Total and Permanent disability through
the Payor rider. This guarantees your childs college fund and helps protect it against all
emergencies.
Save extra during your childs schooling days to fund higher education:
The plan comes with a limited premium payment term up to childs age 18, so you pay
premiums only till he/she turns 18 and get guaranteed payouts for their college education
from age 18-21.
Features

Specification

Minimum/Maximum Entry Age of

Life Assured (Last Birthday)

91 Days to 8 Years

Life Insured

Child
On child attaining the age of 18 the policy shall be vested to the child

Policy Term

21 - Age at Entry of the Life Assured (Child)

Premium Payment Term

18- Age at Entry of the Life Assured (Child)

41
Minimum Sum Assured

only Rs. 2,00,000

Maximum Sum Assured

No limit subject to underwriting

Bonus

Compound Reversionary Bonus: will be declared every year from end of year 2 onwards
and once declared, is guaranteed for the life of the contract. The reversionary bonus in any
year is a percentage of the base sum assured of the policy and previously declared cumulative
reversionary bonus in previous years.
Terminal Bonus: may be declared by the company after the 10th policy anniversary as a
percentage of reversionary bonus, payable once during the lifetime,

Guaranteed Policy continuance in

case of Payor's death or disability

Max Life College Plan comes with a Payor rider which ensures that the policy continues even
in case of Payor meeting with Death or, Total and Permanent disability, Max Life Payor Rider:
UIN 104B013V02 (For more details on the rider and the various terms and conditions,
please refer to the rider brochure

Death Benefit

Before attained age 7: Total premiums paid (with interest @3.5% p.a. compounded annually)
+ accrued (if any) reversionary bonus
Attained Age 7 & onwards: Sum Assured + Accrued reversionary bonus + Terminal bonus (if
any)

Maturity Benefit

Guaranteed cash backs every year from child's age 18 to 21

Child's Age

Money Back (% of S.A.)

18

40%

19

20%

20

20%

21

40% + Accrued reversionary bonus + Terminal bonus (if any)

Total Guaranteed Money Back / Payout = 120% of Sum Assured

Max Life Fast Track Plan

Features & Benefits
Option of short premium payment terms enabling an early maturity and fast
track accumulation.
Choice of six well-managed funds for policyholders with different risk appetite
Entry age of life insured upto 60 years
Choice of protection cover basis age of life insured
Systematic Investment through STP option- to safeguard your wealth against
market volatilities
Flexibility to make partial withdrawals to meet any unplanned expenses
Short premium payment terms (Single pay/5 pay/10 pay)
Achieve your goals by putting your investments on the Fast Track by choosing any one
of the Premium payment terms

Particulars

Features

Minimum/ Maximum Age of Life 30 years to 60 years

Insured at Entry (Last Birthday)
Maximum Age of Life Assured at 70 years
Maturity
Premium payment term & Policy Single Pay 10 years policy term
Term
5 pay - 10 years policy term
10 pay - 20 years policy term

42
Minimum Annual Target
Premium

All Variants: Rs. 1,00,000

Maximum Annual Target

Premium

No limit (Subject to Underwriting)

Sum Assured Multiples

Limited Pay
Age 30 to 45 years

10 or 20 times ATP

Age 46 to 60 years

10 times ATP

Single Pay ("SP")

Age 30 to 45 years

1.25 or 5 times SP

Age 46 to 60 years

1.25 times SP

Death Benefit

Sum Assured + Fund Value

At no point in time during the term of the policy, the death benefit will be less
than; higher of the Sum Assured or 105% of total premium paid to date.

Riders Offered

Max Life Personal Accident Benefit Rider (UIN 104C007V02), Max Life Dread
Disease Rider (UIN 104C010V02). (For more details on the riders and the
various terms and conditions, please refer to the rider brochures) Please note that
Rider Sum Assured cannot be greater than base plan Sum Assured.

Max Life Guaranteed Monthly Income Plan

Key Benefits and Features:
Short Policy Terms
The plan offers you flexibility to choose your policy terms. You can choose either 6
years or 11 year policy terms depending on your financial goals.
Guaranteed Monthly Income for a Payout Period of 10 years after your policy term
The plan lets you choose the guaranteed monthly income you desire. This income is
guaranteed to be paid for a period of 10 years (120 months) from the end of policy term ,
payable at payout dates.
Monthly Income Boosters (MIB) 12th year onwards
Over and above the guaranteed monthly income, the plan also offers MIB starting year
12, payable at payout dates. This ensures that your chosen monthly income is cushioned
against inflation.

Criteria

Eligibility

Minimum Entry Age (Last

25 years

43
Birthday)
Maximum Entry Age (Last
Birthday)

6 Pay 65 years 11 Pay 60 years

Maximum Maturity Age (Last

Birthday)

71 years

Premium Modes

Annual Mode only

Policy Term / Premium Payment

Term (PPT)

6 Year Term 11 Year Term (Premium Term is same as Policy

Term)

Minimum Monthly Income

Rs. 2,000 p.a. and thereafter in multiples of Rs. 500

Maximum Monthly Income

No Limit based on underwriting on a case-to-case basis

Sum assured

For 6 pay: 180 times monthly income For 11 pay: 240 times
monthly income

DATA COLLECTION &

TECHNIQUES

44

SAMPLING: Sample size

: 25 respondents

Sampling Method

: Random sampling

Sample Plan

: Personal Interview

Sample Unit

: Respondents in Tonk city

Survey conducted on Geographic bases.

45

Every decision poses unique needs for information, and relevant strategies can be
developed based on the information gathered through research. Research is the
systematic objective and exhaustive search for and study of facts relevant to the problem.
Research design means the framework of study that leads to the collection and analysis
of data. It is a conceptual structure with in which research is conducted. It facilitates
smooth sailing of various research operations to make the research as effective as
possible.
The study was conducted as an exploratory sampling survey method to collect primary
and secondary data.

DATA SOURCE:
PRIMARY SOURCE OF DATA:
Primary data are those collected by the investigator himself for the first time and
thus they are original in character, they are collected for a particular purpose.
A well-structured questionnaire was personally administrated to the selected sample to
collect the primary data.

46

SECONDARY SOURCE OF DATA:

Secondary data are those, which have already been collected by some other
persons for their purpose and published. Secondary data are usually in the shape of
finished products.
Two types of secondary data were collected for the preparation of the project work:
Internal Data was generated from companys brochures, manuals and annual reports.
External Data, on the other hand, was generated from research books and internet
(websites)

SAMPLING TECHNIQUES
A sample is a representative part of the population. In sampling technique,
information is collected only from a representative part of the universe and the
conclusions are drawn on that basis for the entire universe.
A random sampling technique was used to collect data from the respondents. A random
sample is a sample selected from a population in such a way that every member of the
population has a equal chance of being selected and the selection of any individual does

47

not influence the selection of any other. The selection is purely depends on chance. So
while conducting the survey, 25 respondents were selected at random.
SAMPLE SIZE
Sample size denotes the number of elements selected for the study. For the present study,
25 respondents were selected at random.

48

DATA

ANALYSIS

AND

INTERPRETATION

DATA ANALYSIS AND INTERPRETATION

Data collected is useful only after analysis. Data Analysis involves converting a
series of recorded observations into descriptive statements and inferences about

49

relationships. The types of analysis that can be conducted depend on the nature of the
measurement instrument and the data collected method.

If the researcher selects the analytical techniques prior to collecting data, the
researcher should generate fictional responses to the measurement instrument, these
dummy data are then analyzed the results of this analysis will provide the information
required by the problem at hand.
The results obtained by analyzing such data may not be accurate due to present of
dummy data, so it is preferable to select analytical technique after collection of data,
depending on data collected.

1. Gender
Gender

NO.OF
RESPONDENTS

PERCENTAGE

Male

22

88

Female

12

50

Interpretation- According to my project survey i have come to now the out of

25 responds in that 88% are male and 12% female.

2. Qualification of Respondents
QUALIFICATION
SECONDARY
HIGH SECONDARY
GRADUATE
OTHER

NO.OF RESPONDENTS
1
3
21
0

PERCENTAGE
4.0%
12.0%
84.0%
0.0%

51

Interpretation:
From the above table , it is clear that out of 25respondents, 01 respondent
is belong to Secondary , 03 respondents are belong to High Secondary, 21 respondents
are belong to Graduate and 0 respondents belong to other categories. So that majority of
the respondents are belonging to Graduate.

3. Occupation
OCCUPATION
GOVT. EMPLOYEE
PRIVA.EMPLOYEE
BUSINESSMAN
STUDENTS
OTHERS

NO.OF RESPONDENTS
04
08
03
08
02

PERCENTAGE
16.0%
32.00%
12.0%
32.00%
08.0%

52

Interpretation:
From the graph it has been observed that, 04 out of 25respondents are belong
to Government Employee, 08 respondents are belong to Private Employee, 03
respondents are belong to Businessman, 08 respondents are belong to students and 02
respondents are belong to other categories. So that major respondents are belongs to
Private Employee & Students.

4.

Age Group of Respondents.

AGE GROUP
18 TO 25
26 TO 35
36 TO 45
46 & ABOVE

NO.OF RESPONDENTS
17
0
03
05

PERCENTAGE
68.0%
0.0%
12.0%
20.0%

53

Interpretation:
From the graph it is clear that, out of 25 respondents, 17 respondents are
falls in the Age group of (18 to 25), 0 respondents are falls in the Age Group of (26 to
35), 03 respondents are falls in the Age Group of (36 to 45), And 05 respondents fall in
the Age Group of (46 & above).

5. Family Size of Respondents

FAMILY SIZE
0 TO 3
3 TO 5
5 TO 7
7 & ABOVE

NO.OF RESPONDENTS
0
18
06
01

PERCENTAGE
0.0%
72.0%
24.0%
4.0%

54

Interpretation:
From the graph it has been observed that, out of 25 respondents 0
have the Family size between (0 to3), 18 respondents have the family size between
(3 to 5), 06 respondents have the family size between (5 to 7). 01 respondent has the
family size between (7 & above), So that major respondents belong to size of family
between (3to 5).
6. Income Group of respondents
INCOME GROUP
3000 TO 5000 /month
5000 TO 10000/month
10000 TO15000/month
15000 TO ABOVE

NO.OF RESPONDENTS
02
05
07
11

PERCENTAGE
08.0%
20.0%
28.0%
44.0%

Interpretation:
From the graph it has been observed that, out of 25 respondents, 02
respondents have the Income between (3000 to 5000), 05 respondents have the income
between (5000 to 10000), 07 respondents have the income between (10000 to 15000)
and 11 respondents have the income between (15000 & above).
7. Graph Showing respondents Awareness about Life Insurance.
YES

20

80.0%

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NO

05

20.0%

Interpretation:
From the graph, it is observed that, out of 25 respondents, 20
respondents are Aware about Life Insurance, and 05 respondents are not Aware about
Life Insurance. So that majority of the respondents are Aware of Life Insurance.

8. Graph Showing respondents Sources of Awareness

SOURCES
MEDIA
AGENT
FRIENDS
NEWS PAPER

NO.OF RESPONDENTS
04
13
06
02

PERCENTAGE
16.0%
52.0%
24.0%
8.0%

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Interpretation:
From the graph, it is observed that, out of 25 respondents O4
respondents are Aware about Max Life Insurance through Media, 13 respondents are
Aware through Agent, 06 respondents are Aware through Friends, and 02 respondents are
Aware through News Paper. So that major source of Awareness of respondents is Agent.

9. Graph Showing respondents Influence Factors

FACTORS
SECURITY
HIGH RETURNS
RISK COVERAGE
SERVICE
Interpretation:

NO.OF RESPONDENTS
18
19
21
2

PERCENTAGE
72.0%
76.0%
84.0%
8.0%

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From the above graph, 72% of the respondents are look for security while
investing in Max Life Insurance, 76% of the respondents look for high returns, 84.0% of
the respondents look for risk coverage, 8% of the respondents look for service . So that
most of the respondents look for Risk Coverage while investing in Max Life Insurance.

10. Graph Showing respondents Rating with the Benefits of Max Life
Insurance.
Rating

No. Of Respondents

Percentage

Security

Returns

Service

Coverage

Very Good

22

14

41

Good

10

13

12

37

Average

18

Bad

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Interpretation:
From the graph it has been observed that, out of 25 respondents, 41%
respondents have given rate as Very Good, 37 % respondents have given Good, 18%
respondents have given Average and 4 % respondent has given Bad, So the Majority of
respondents have satisfied with the Benefits of Max Life Insurance.

COMPARISON
BETWEEN AXIS BANK &
OTHER BANKS

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1. Market Capitalisation

Private Banks
HDFC BANK
ICICI
Axis
Kotak Mahindra
IndusInd bank
Yes Bank

Market Capitalisation (Rs.

Cr.)
161,144.25
131,696.79
64,560.74
58,480.77
26,543.71
18,057.94

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2. Total Assets

Private Banks
Axis
ICICI
Yes
HDFC
Federal

Total Assets
259,105.63
143,907.06
86,214.26
79,452.51
54,762.31

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3. Net Profit

Private Sector
ICICI
HDFC
Axis
Kotak mahindra
Yes Bank
IndusInd Bank

NET PROFIT
(Rs. Cr.)
8325.47
6726.28
4242.21
1360.72
1300.68
1061.18

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4. Net Sales

Private Banks
ICICI
HDFC
Axis
Yes
Kotak Mahindra

Net Sales ( Rs. Cr.)

40,075.60
35,064.87
21994.65
8,294.00
8,042.49

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5. Investments

Private
ICICI
HDFC
Axis Bank
Yes Bank
Kotak mahindra

Investments
171393.6
111613.6
93192.09
42976.04
28873.43

% of Total Assests
92.48
104.57
34.13
47.6
95.49

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65

OBSERVATION / SUGGESTIONS
& CONCLUSION

OBSERVATIONS

1) Bancassurance is the process of selling insurance products through a banks

network.

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2) Max Life Insurance Company Limited is a joint venture between Max India
Limited and Mitsui Sumitomo Insurance Co. Ltd. Axis Bank is a Corporate
Agent of Max Life Insurance Co. Ltd.
3) There are various individual and group insurance products marketed through
Axis Bank targeting different groups of customers.
4) Bancassurance is beneficial for the banks, because
i.

It helps the bank by increasing the skills of the employees.

ii.

It reduces the risk of loan becoming debt loan for the bank.

iii.

Nonperforming assets will be reduced as it gives security to the loan

amount.

iv.

It increases the total other income of the bank.

5) As per the trend line, the total income has increased after the branch took up the
activity of cross selling and also there is an increase in the total miscellaneous
income.
6) The proportion of total miscellaneous income in total income has been increased
after the branch took up the activity of cross selling.

SUGGESTIONS
1)

Banks have witnessed a decline in margins in their core lending business due
to falling interest rates. Insurance distribution helps to increase the fee based
earnings of banks to a considerable extent. So the bank employees should try to
increase the total other income of the bank by doing cross selling.

2) Bank employees should be motivated to take the training by specifying the

commission amount which they are going to get after cross selling.

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3) Bank employees who are involved in bancassurance should be given full

knowledge of the target customers.
4) Bank should try to facilitate online and internet payments towards insurance
products.
5) In order to attract more policy holders, the bank employees and insurance agents
should promptly attend to the enquiries of policyholders.
6) All the policyholders who came under tax bracket should be provided with the
necessary documents for claiming the tax concession.
7) Bank staff should make an effort to educate the public about the social security
provided by the insurance policies.

CONCLUSION
With huge untapped market, insurance sector is likely to witness a lot of activity - be it
product innovation or distribution channel mix.

Bancassurance, the emerging

distribution channel for the insurers, will have a large impact on Indian financial services
industry. Traditional methods of distributing financial services would be challenged and
innovative, customized products would emerge.

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Banks will bring in customer database, leverage their name recognition and reputation at
both local and regional levels, make use of the personal contact with their clients, which
a new entrant cannot, as they are new to the industry. In customer point of view, a
plethora of products would be available to him. More customized products would come
into existence and that too all within hands reach. Success of the bancassurance would
mostly depend on how well insurers and banks understand each other's businesses and
seize the opportunities presented, weeding out differences that are likely to crop up.
Bancassurance has developed its form gradually where banks at first do not carry risks
and distribute insurance products for a fee and product development is left to insurance
company. But gradually banks have assumed risks regarding distribution assuming full
responsibility. But the proper implementation of bancassurance is still facing some
problems such as, poor manpower with in the banks, detachment of branch manager,
insufficient product promotion, managerial database expertise, inadequate incentives,
negative attitude towards insurance etc. In order to get the full benefit of it the following
steps should be taken:i) Service delivery mechanism should be strengthened.
ii) Knowledge of target customer needs should be developed.
iii) Extensive and high quality training should be ensured.
iv) Strategies consistent with the banks vision should be developed.
v) Bank's data base system should be made flexible to cope with the change.

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BIBLIOGRAPHY

BOOKS
1) Principles & Practice of Management
By Chhabra T. N., 2003, Dhanpat Rai & Sons
2) Banking Theory Law & Practice
By Sundharam & Varshney, 2006, Sultan Chand & Sonss

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WEBSITES

http://en.wikipedia.org/wiki/Axis_Bank
http://www.axisbank.com
http://www.google.com
http://www.moneycontrol.com
http://www.rbidocs.rbi.org.in

ARTICLES
Bancassurance in India Janardhan G Naik

ANNUAL REPORT OF

AXIS BANK