A PROJECT REPORT ON

AXIS BANK

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTOF BACHELOR OF BUSINESS ADMINISTRATION

(B&I) GURUGOVINDSINGHINDRAPRASTHAUNIVERSITY,DELHI

SUBMITTED TO:

SUBMITTED BY:

Batch No:- 2010-2012

STUDENTS DECLARATION
I affiliated to GURUGOBINDSINGHUNIVERSITY, hereby declare that the project report titled AXIS BANK PRODUCTS, SERVICES AND FUNCTIONING is an original work and same has not been submitted to any other institute for the reward of any other degree. The suggestions as approved by the faculty were duly incorporated.

CERTIFICATE FROM GUIDE

This project report entitled (AXIS BANK PRODUCTS, SERVICES AND FUNCTIONING), is being submitted by for the degree of Bachelor of Business Administration This work has been carried out under the supervision and guidance of Mr I hereby declare that to the best of my knowledge, the work included in this project report has not been submitted either in part or in full, to this or any other university for the award of any degree or diploma.

PROJECT GUIDE

ii

ACKNOWLEDGEMENT
I wish to thank a number of people who provided constructive criticism, support and helped me during the processing of the project. This project was made possible due to the combined efforts under taken by and my Project Coordinator who supported me while working on this project. I am thankful to the rest of the staff the college, who rendered every possible help they could by helping me refer the right sources for data collection for the project. I am also thankful to my friends and users who operated my project and provided me with valuable and prudent suggestions that helped me to improve and enhance the usability of the project.

iii

EXECUTIVE SUMMARY

Due to the radical changes brought up in the new era of Banking, General Public is becoming more and more conscious of the services and facilities the different banks are providing. Banks have also started tieing up with insurance companies and other allied services companies to fulfil the needs of their customers. The delivery channels have also been shifted from branches to net banking etc. Sales promotion have also been used to position the product correctly in the eyes of the customers and for product awareness to the customers. Several tools are being used like day-to-day promotional activities like discounts, offers, loans, trade promotion, other promotional activities and so on. The project in so designed as to find out the potential customers and also bring to the knowledge about the various products and services provided by the bank. In the successive chapters we will be talking about organization. . We will also be discussing about the various products and services provided by the AXIS BANK LTD.

iv

CONTENTS
Student Declaration Certificate from Guide Acknowledgement Executive Summary i ii iii iv

CHAPTER 1: INTRODUCTION 1.1 Purpose of the study 1.2 Research Objectives of the study 1.3 Research Methodology of the study 1.3.1 Research Design 1.3.2 Data Collection 1.3.3 Limitation CHAPTER -2 : COMPANY PROFILE About the Organization CHAPTER -3 Findings and Analysis CHAPTER -4 Conclusion CHAPTER -5 SWOT Analysis Chapter - 6 Suggestions and Recommendations

30

36

39

42

Bibliography

44

CHAPTER-1

INTRODUCTION ABOUT BANKING

OBJECTIVES:
The objective of the project is to make the mass market aware of the specialized services and products offered by Axis Bank and getting them an opportunity to bank with us. Unless the people are well aware of the services/privileges given to the customers it will become difficult to turn on the new customers. Moreover, it is providing such privileges to high potential customers, so identifying such high worth individuals is an important factor to be figured out. There has been a tremendous amount of information that was shared both sides and convinced the customers to develop a long-term relationship with bank Further more objectives of study are-:. y y To focus on Modernisation& Diversification in banking sector. To study the nature of product & services of AXIS BANK.

y To examine their Financial & Market status. RESEARCH METHODOLOGY:

y Primary data used with the help of questionnaire y Secondary Data used with the help of internet, newspapers, business magazines and annual reports of AXIS BANK

LIMITATION OF STUDY:
y Change of name of bank from UTI Bank to Axis Bank, hence it was difficult to collect secondary data. y y Due to time and financial constraints, the project shows limited scope. The topic covers condense data.

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, 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
3

to be utilized for lending or investment purpose. The banker is, thus, an intermediary and deals with the money belonging to the public. 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: theBank 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 1947. As many as 161 banks failed in quick succession during 1913-1914 and the peoples faith in the baking 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 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 forAgriculture 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.

INDIAN BANKING SYSTEM

Indian banking system comprises of both organised and unorganised banks. Unorganised banking includes Indigenous Bankers and Village Money-Lenders. Organised banking includes the following:

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 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.
7

The present position of interest rate regulation is: y RBI has continuously reduced the bank rate from 10% (1990-91) to 6.25% (2002-03). y y The interest rate on domestic deposits have been de-controlled. Lending rates of banks have also been largely de-controlled.

NEW GENERATION BANKING

The liberalise 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.

CHAPTER-2

INTRODUCTION ABOUT AXIS BANK

Axis Bank was the first bank to begin operation as new private banks in India 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 ofIndia (UTI - I), Life Insurance Corporation of India (LIC) and General InsuranceCorporation Ltd. and other four Public Sector Unit Companies, i.e. National InsuranceCompany Ltd., The New India Assurance Company, The Oriental InsuranceCorporation and United Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 359.76crore 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. Presently, the Bank has a very wide network of more than 853 branch offices and Extension Counters(as on 30th June 2009).. The Bank has a network of over 3723 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.The Head Office of Axis Bank Limited in India is situated at Mumbai. Axis Bank has overseas branchs in Singapore and has further spread to USA, UK, UAE among other countries The Bank has strengths in both retail and corporate banking and is committed to adopting the best industrypractices internationally in order to achieve excellence.Some industry experts wrote Axis Bank to be a slow paced organization with its market share dropping. But the Bank believes on the key strategy of slow and steady wins the race. Axis Bank has never focused on building a retail market by bombarding its customers with newer and hidden parametric products, instead, the Bank has concentrated on nurturing the backbone financial services and providing quality banking solutions to the customers. By the end of June 2009, Axis Bank in India had over 80 lakhs debit cards. This was the first bank in India to offer the AT PAR Cheque facility. With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at any of its existence place.ie, a person can deposit the cheque at any of the branch of Axis Bank, which ever is convenient to the customer. The bank also offers the Australian Dollar and Canadian Dollar variants of the international Travel Currency Card along with the
10

US Dollar, Euro and Pound Sterling variants. The Travel Currency Card is a signature based pre-paid travel card which enables travellers global access to their money in local currency of the visiting country in a safe and convenient . For the benefit of the customers, the Bank has been engaged in the task of evolving new and value added products and services and currently has a comprehensive portfolio of such products and services in Corporate Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking. However at Axis Bank customers financial needs get addressed in much beyond way. This belief of customers has provided rich dividends, bringing with it steady growth, rapid expansion and an opportunity for employees to propel their career further. The success of Axis Bank may be attributed in no small measure to the efforts of exceptional pool of talent of 5500 employees. way.

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

SUUTI - Shareholding 27.02%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the UnitTrust 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.
11

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 - I, where Government has continuing obligations and commitments to the investors, which it will uphold.

BOARD OF DIRECTORS
The Bank has 9 members on the Board. Smt. Shikha Sharma is the Managing Director & CEOof the Bank. The members of the Board are : Smt. Shikha Sharma Managing Director & CEO Shri M. M. Agrawal Deputy Managing Director(Designate) ShriN.C.Singhal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. VaishDirector Shri M.V. Subbiah Shri K. N. PrithvirajDirector Director Director Director Director Director

Our Mission And Values

12

Our Mission
y Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. y y y Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

13

Axis Bank is new name for UTI Bank

On 27th April, 2007, the bank's board decided on the new name at a meeting in Mumbai.UTI Bank on 30th June, 2007 rechristened itself as Axis Bank. Announcing the new name, PJ Nayak, chairman & CEO, Axis Bank, said the bank has ambitious plans to diversify into non-banking financial sector. The bank, with a customer base of six million, is planning inorganic growth for its ventures dealing with new areas. According to Nayak, chairman and CEO of Axis bank, the bank would go in for international expansion sometime down the line. The bank is well capitalised after raising over $ 1 billion recently and is adding another 150 branches and 584 ATMs. Axis Bank is the fifth largest bank in terms of capitalisation and will have a Rs 1 lakh crore balance sheet by end March 2008. Axis Bank is born out of the pressure on UTI Bank to shed its brandname after the split of the erstwhile UTI. Though UTI was a government instutition, its subsidiary UTI Bank has been categorised as a private sector bank, according to RBI guidelines. The name change to Axis Bank means that UTI Bank will have to undergo a rebranding exercise soon. The rebranding process is expected to be complete by September 2007. After the split of UTI, entities like UTI Securities, UTI MF and UTI Bank were all allowed to retain the UTI brand name for a while. Now that it is time for UTI Bank to shed the brand name, it has opted to go for the more modern-sounding Axis Bank. Axis Bank chairman will be PJ Nayak, who is currently chairman and managing director of UTI Bank. The recommendation for name change to Axis Bank has arisen from the existence of several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion that this generates. The name will take effect consequent to the approval of shareholders, RBI and the Central Government (Registrar
of Companies).

14

SERVICES PROVIDED BY AXIS BANK

Axis Bank is concentrating towards its Diversification &Modernisation. With a slow speed in retail banking & commercial banking, Axis Bank is trying to expand in every field of banking. There core objective is not only to provide services to customers but to give best of their services. They provide services to: y y y y y y y Customers for saving purpose, Customers for corporate purpose, Customers for loan purpose, Customers for investment and insurance purpose, NRI customers, Priority Banking. Some of the services by Axis Bank are:

15

y
(a)

ACCOUNTS:
EasyAccess Account

The product 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 gives customer instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of bank eclectic client base. Customer can avail of all these services with a minimum average balance of Rs 5,000 in metro or urban centers, and Rs 2,500 in semi urban centers. Some of its features are: y y y At Par Cheque Book: ATM Network: Anywhere Banking:

y y y

Telebanking: Mobile Banking: Account Statement:

(b) Azaadi Account- No Frills

A savings account that doesn't require a minimum balance. Customer qualifys for Azaadi Account if: y The sum total of all credits to account does not exceed Rs 1 lack during the Financial year, y Customers do not intend to maintain an account balance higher than Rs 50,000 at any given instant,

(c) Prime Savings Account

The Prime Savings account has been created with your specific financial requirements in mind: y y Wider Accessibility of ATMs. Greater Convenience of payment through debit card.
16

24 hr Internet Banking and Tele Banking services.

(d) Senior Privilege

Axis Bank's Senior 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 Features
y y y y y y

Relationship Managers Free At-Par Cheque book Free Debit Cards for the primary and the joint account holders Free Monthly Statement of Accounts Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank branches Mobile Banking

(e) Salary Power

The bank have prepared Salary Savings Account for service class customers. Salary Saving Account is not only convenient way for customer to manage salaries (across various centres, through centralised database), but also provide customer with a range of value added benefits. Some of its features are: y y y No minimum balance required. Anywhere Banking. International Debit cum ATM card with withdrawal uptoRs 25,000 daily.

(f) Power Salute

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 them absolutely free, no minimum balance is required either. Customer can also access the entire Axis Bank network, including more than 2400 ATMs and 550 branch offices (and growing) no matter where you are posted. Some of its features are:

17

y y

At-Par Cheque Facility Additional Debit Card

y Financial Advisory Services

(g) Trust/NGO Savings Account

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. Some of features are:
y

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 ATMs.

y y y

Free Demand Drafts or Pay Orders as and when required to remit funds. Monthly Statement of Account delivered at doorstep. Facility for collecting donations in account through various network of Branches and Extension Counters across the country, as well as through iConnect Internet Banking facility.

(h) Pension Savings Account

This type of account 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. Some benefits are:
y y

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

18

wherein the Pensioner records are credited centrally through its Centralised Pension Payment Hub (CCPH) at Mumbai.
y

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.

2.DEPOSITS:

(a) Fixed Deposits

Axis Bank offers simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000. Customer can make additions to his deposit in multiples of Rs 1,000 each. The tenure of the deposit must be a minimum of 6 months.

(b) Encash 24
The ENCASH 24 (Flexi Deposits) gives the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to Savings Account providing you the following unique facilities:
y

Maximum Returns: As soon as the balance in Savings Account crosses over Rs 25,000, the excess, in multiples of Rs 10,000 will be transferred automatically to a higher interest earning Fixed Deposit Account.

Maximum Liquidity: The money parked in Fixed Deposits as a result of the above mentioned sweep out from Savings account can be easily accessed by issuing a cheque, withdrawing through ATM etc.

Auto Renewal: On maturity of linked Fixed Deposits, the bank will automatically renew it for a maximum period of 181 days.

(c) Recurring Deposits

19

Axis Bank's Recurring Deposit scheme will allow customer with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Some of features are:
y

Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter.

The fixed number of installments for which a depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

A recurring deposit account can be transferred from one office of the Bank to another branch.

(d) Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006. The salient points of the scheme notification are; (a) Fixed tenure without premature withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt that shall be the basis of claiming tax benefit. (e) Term deposit under this scheme cannot be pledged to secure a loan.

20

3. LOANS:
(a) Power Home
Axis Bank's Power Home puts an end to Real Estate troubles. Its helps customer purchasing their dream home without any problem. Some of features are:

(d) Study Power

Axis Bank's Study Power aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The loan would be provided to students who have obtained admission to career-oriented courses eg, medicine, engineering, management etc., either at the graduate or post-graduate level.

(e) Asset Power (Loan Against Property)

In this type of loan system, bank provides loan to customer against their property i.e. property is kept in the form of security. Property kept as security can be commercial or residential. Customer can also apply for this loan if they need funds to acquire new property. A take-over of existing loan with refinancing is also possible with Asset Power. Some of features are:
y y y

Attractive interest rates. Balance Transfer facility available with additional finance. Doorstep service.

(f) Two Wheeler Loan

In this type of loan service, bank tries to provide money to customer so that he can buy a two wheeler.

(g) Loan Against Security

Overdraft against shares
y y y y

Only individuals are permitted to apply. HUFs, limited companies, partnerships and sole proprietors are not eligible. Facility available against more than 500 approved scrips. Shares can be pledged from any Depository Participant across the country.

21

Overdraft against mutual funds

y y y

Only individuals are permitted to apply. Maximum limit upto 50% of valuation. Overdraft possible against more than 250 schemes.

Loan or overdraft against NSC or KVP or LIC policy

y

Option to either borrow lump sum or withdraw as and when required.

Loan or overdraft against RBI Bonds or US 64 Bonds

y

Option to either borrow lump sum or withdraw as and when required.

4.CARDS:
(a) Gold Credit Card
Axis Bank's Gold Plus Credit Card goes beyond meeting expectations. There is always more to enjoy and more to gain with a Gold Plus Credit Card. Apply for Gold Plus Credit Card and claim a complimentary return flight voucher.

(b) Gold Debit Card

Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of enhanced benefits and exclusive reward program. Meant for valued Axis Bank customers, it is a result of bank constant endeavour to understand customer requirements and design products and services with you in mind. Some of benefits are:
y y y y

Flexibility of usage. Worldwide reach. Zero petrol surcharge. Special offers and discounts at merchant establishments on card usage.

(c) Debit Card

22

Modern times necessitate that you need to have access to your money anytime and anywhere. The Axis Bank International Debit Card addresses this need. A deposit access program, the Debit Card redefines convenience. Apart from being an ATM (Automated Teller Machine) Card rd used for withdrawing cash, it also enables to shop and make cashless purchases. Cutomer can use the card to make payments at shops, department stores, restaurants, petrol pumps and many more outlets aaina India and overseas.

(d) Silver Plus Credit Card

For people who seek more out of everything, Axis Bank presents the Silver Plus Credit Card. With it customer can get added features and benefits. Apply for an Axis Bank Silver Plus Credit Card and get a complimentary one way flight voucher.

(e) Business Gold Debit Card

The Business Gold Debit Card is an effort from Axis Bank to offer customers the very best deals possible through a debit card. Available only to the most privileged current account holders, the Business Gold Debit Card mirrors great business success and achievement with a host of enhanced benefits and exclusive value deals.

(f) Remittance Card

Axis Bank's Remittance Card is meant for people who receive remittances from abroad. It aims to make the procedure of receiving money from loved ones abroad easy and hassle free. Thereby rendering the age-old instruments like Demand Drafts and Pay Orders obsolete. This card is brought in association with

www.Remit2India.com , a global online money transfer service of Times Online Money Limited. Funds remitted through www.Remit2India.com are directly loaded onto the Remittance Card, which customer, as the beneficiary of the remitted funds, have access to anytime and anywhere.

(g) Secured Credit Card

23

Axis Bank Secured Credit Card is issued against collateral in the form of a Term Deposit account with the Bank. Some of benefits are: y y y y Lower Finance Charges (0.99% p.m.- 1.49% p.m.). Income document requirement waived off. Flexibility to set your own Credit Limit on the basis of the FD amount. Term Deposit continues to earn interest.

(h) Travel Currency Card

Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable experience. Available off the shelf at the nearest Axis Bank Branch and select FFMCs (Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores. With it customer can attend his business, enjoy the delightful tourist spots, dine out, and take in the breathtaking landscape and exotic culture of the country without worrying about money changers and converting traveller's cheques into local currency.

(j) Meal Card

Axis Bank have always strived hard to understand the different payment needs of corporates and come up with products to efficiently meet these needs. In continuation with endeavours, bank bring the Axis Bank Meal Card, a Compensation and Benefits tool targeted at providing tax-free Meal allowances to customers employees as provided by Section 115WB of the Income Tax Act of India. The Axis Bank Meal Card is a prepaid card designed to replace the inefficient paper voucher system in the market. It is a far more operationally efficient way to provide customers employees with a meal allowance and eliminates the logistical hassles associated with the procurement, stock-keeping and distribution of paper-based Meal Vouchers.

24

5. INVESTMENT:
(a) MOHUR Gold Coins
Axis Bank brings to you 'MOHUR' - Gold Coins in the purest form! Made in Switzerland, 'MOHUR' Gold Coins carry the Assay certification of being 24 carat, 99.99% pure! It comes in a specialized packaging that is tamper proof so that its purity is preserved.Available in 5 gms, 8 gms& 10 gms it is on offer in select branches of Axis Bank.

(b) Online Trading

Axis Bank in alliance with Geojit Financial Services now offers an Online Trading Account. Trade from the comfort of home or office either through the Internet or the Phone. This service provides an integrated Savings Bank Account, Demat Account and an Online Trading Account to give a convenient and paper free trading experience. Axis Bank Online Trading Customer would also have the flexibility to get an insight to a complete range of Corporate Information, Reuter News and Research Tools which would help him to take timely Investment decisions.

(c) Mutual Funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.

(d) Fixed Income

8.5% Relief Bonds, 1999: Issued by Reserve Bank of India (RBI) are available for sale at Axis Bank counters. Investors can choose from cumulative and non-cumulative bond options. Bonds will bear interest @ 8.00% per annum and are payable halfyearly. For the investors opting for the non-cumulative option the interest will be paid on February 1 and August 1 every year. For investor choosing cumulative Bonds interest will be payable on maturity along with the principal. The value of every
25

Rs1,000 invested in these bonds will be Rs 1,601 (principal + interest) at the end of six years. The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof.

(e) Depository Services

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. Customer can avail of all the depository-related services by just opening an account with NSDL through Axis Bank. Some of the depositories services are: y y y y y y Transfer of shares and settlements Receipt of Corporate Benefits Dematerialisation of shares Rematerilialisation Pledge-Hypothecation Freezing or Locking of Accounts

6. INSURANCE:
(a) Jewellery Insurance
Jewellery forms an integral part of our culture & our lives, be it any occasion or even a regular day. However, these valuables need to be safeguarded against various risks, which may not be covered under other policies. Jewellery Insurance safeguards this asset for customer, securing it against all risks. The only product of its kind in the industry, provides complete security for jewellery, when it is worn by the policyholder in person or while being carried to the bank lockers. Absolute security & coverage is given against burglary & fire, in respect of items kept at bank locker.

26

(b) Smart Advantage

Smart Advantage is a women-specific Critical Illness insurance plan that has been designed for Smart Privilege customers keeping in mind the critical illnesses and other attendant risks that are especially faced by women. A guaranteed cash sum will be paid in case the insured is diagnosed with a life-threatening illness. The benefit amount under this policy helps to take care of heavy medical costs for treatment of critical illness. Hence provides protection from the economic impact of critical illness.

(c) Family Health

Only Axis Bank offers the advantage of insuring not just customers but their entire family with one policy. Banks Family Health insurance programme provides a comprehensive health insurance that covers customer, their spouse and 3 dependent children up to the age of 18 years. This scheme has been started with the collaboration of Bajaj Alliance Life Insurance.

(d) Safe Home

Axis Bank realize the need to make customers home as secure in reality, that is why, safe home, in association with Bajaj Allianz General Insurance means - , an insurance policy exclusively designed for Axis Bank customers, which provides protection for property and valuables at home.

(e) Silver Health

Health care costs are high and getting higher. As the age of an individual increases the health care costs increase manifold and become a burden on the individual. Senior citizens have to pay out of their hard earned savings to meet the expenses. Bajaj Allianz's Silver Health Plan for senior citizens protects them and their spouse in case they need expensive medical care. They get cashless benefit or medical reimbursement for hospitalization expenses due to illness or accidents.

(f) Travel Companion

Travel for business or pleasure, international travel involves risk. Medical treatment abroad can be expensive and one never knows when one would require it. Having to spend for medical bills in foreign currency can be expensive proposition. Bajaj
27

Allianz's Travel Companion is specially designed to help travelers deal with such situations while overseas travel.

(g) Safe Guard

Axis Bank and Bajaj Allianz General Insurance present 'Safe Guard' personal Accident Insurance cover. A unique policy that offers insurance coverage at premiums that are extremely competitive and exclusively meant for Axis Bank customers. Safe Guard offers insurance coverage in case of: y y y Accidental death, Accidental permanent total disability, Accidental permanent partial disability,

(h) Motor Insurance

Motor vehicle is an invention which has made daily commuting easy. It is convenient, fast and saves time. Though it is easy to own a vehicle it is expensive maintaining a motor vehicle especially in case of damage caused due to some unavoidable circumstances or accidents. Bajaj Allianz's Motor Vehicle Policy helps in maintaining your vehicle in such situation.

(i) Critical Illness(h) Motor Insurance

Motor vehicle is an invention which has made daily commuting easy. It is convenient, fast and saves time. Though it is easy to own a vehicle it is expensive maintaining a motor vehicle especially in case of damage caused due to some unavoidable circumstances or accidents. Bajaj Allianz's Motor Vehicle Policy helps in maintaining your vehicle in such situation.

(i) Critical Illness

A critical illness plan means customer can insure himself against the risk of serious illness in much the same way as they insure their car and house. It will give the same

28

security of knowing that a guaranteed cash sum will be paid if the unexpected happens and customer is diagnosed with a critical illness.

(j) Shopkeepers Package

This policy is specifically designed to all the risks and contingencies faced by shopkeeper. It provides protection for the property and the interests of the insured and his partners in the business venture.

7. PAYMENT:
(a) Bill Pay
Axis Bank's Bill Pay service enables to make secure payments from the comfort of customers home or office. So its time to say goodbye to late payment fines, long queues, lost bills, and commissions paid to local errand boys.

(b) Direct Tax Payment

The Bank is authorised for Collection of Income or Other Direct Taxes on behalf of Central Board of Direct Taxes (CBDT) w.e.f 1 October, 2003. The assessees or taxpayers can pay Income or Other Direct Taxes as listed below at 214 authorised branches of Axis Bank across the country.

(c) Pension Disbursement

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. This facility can be availed by opening a Pension Payment Savings Bank Account with any authorised Axis Bank Branch and thereafter pension will directly be debited in customers account.

8. OTHERS:
(a) Mobile Refill

29

With Axis Bank's mobile refill facility, customer no longer have to worry about losing their mobile connectivity anytime of the day or night. Axis Bank's mobile refill facility enables to refill mobile over the Internet, on the ATM and even through SMS.

(b) Lockers
Axis Bank also provides lockers to its esteemed customers. Any customer that wants locker facility can contact to any branch of Axis Bank. No need of any documentation.

(c) Online Shopping

Axis Bank offers the convenience of shopping at many major Online stores from the comfort of home or office. All customer needs is an internet enabled PC. He can choose & then get the items delivered at his doorstep. He can also avail numerous online services, get to know about the current special offers/discounts and get a preview of the new items added on to the shelves by these online retailers/service providers. Payment can be made by debiting account through the secured payment channel, iConnect Axis Banks internet banking platform. A critical illness plan means customer can insure himself against the risk of serious illness in much the same way as they insure their car and house. It will give the same security of knowing that a guaranteed cash sum will be paid if the unexpected happens and customer is diagnosed with a critical illness.

30

Recent development in axis bank operationas and the extension of its range of products

Launch of 'Idea MyCash', Powered by Axis Bank

Idea MyCash', a facility aimed at providing basic banking services including money transfer, using the mobile platform, was flagged off by IDEA Cellular, the third largest mobile operator in the country, in association with Axis Bank. This is the 1st Financial Inclusion initiative in the country, to go "live" on the mobile platform. Axis Bank and Idea had earlier signed anMoU to collaborate in the domain of Financial Inclusion whereby Idea will act as a 'Business Correspondent' of Axis Bank and distribute the complete range of financial products and services offered by the Bank to the un-banked and under banked population segments. Idea Retail outlets will act as Customer Service Points (CSPs), as per the agreement . E-WALLET CARD The e-Wallet Card is an electronic payment service which is offered by the Bank to its customers without any cost. Its useful for making online payments as it works like credit or debit card.Axis Bank which is the Indias third largest private sector Bank has successfully launched the service called as e-Wallet Card. It is a creative solution for making online payments. This is an electronic payment service offered free of cost to the customers by the bank. It works just like any credit or debit card for the online payments.

'AXIS CALL & PAY on atom'

Axis Bank has launched 'AXIS CALL & PAY on atom', a mobile payments solution using Axis Bank debit cards. 'Axis Call and Pay on atom' offers the convenience of making payments anywhere, anytime over the mobile phone without any dependency. The technology for the Axis Call & Pay Service has been developed
31

byatomtechnologies. Axis Bank customers, to avail of this service, first need to link their mobile number to their Debit Card. This can be done by them from an Axis Bank ATM. Once this is done, the system gives a call-back and guides them to set a six digit mPIN, which has to be used during each transaction. ManjuSrivatsa, president-retail banking, Axis Bank, said, India has seen remarkable growth in its debit card market over the past few years. The debit card spends at merchant POS terminals increased significantly by 48% to Rs 18,547 cr during the year 2009. The debit card spends stood at Rs 12,521 cr for the previous financial year. Customers were, however, not able to pay remotely using debit cards. Axis Call and Pay makes it very convenient for our customers to get the most out of their Debit Card, while on the move, in a secure manner.

32

CHAPTER-3

ANALYSIS & INTERPRETATION

33

COMPARITION BETWEEN AXIS BANK,HDFC BANK,UTI BANK AND CENTRAL BANK ON BASIS OF THIER MARKET SHARE

COMPARISION ON THE BASIS OF MARKET SHARE

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ICICI UTI BANK AXIS BANK CENTRAL BANK

34

COMPARITION BETWEEN AXIS BANK,HDFC BANK,UTI BANK AND CENTRAL BANK ON BASIS OF THIER NO. OF DEBIT CARD HOLDERS.

COMPARISION ON THE BASIS OF NO. OF DEBIT CARD HOLDERS

45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ICICI UTI AXIS BANK CENTRAL

35

BALANCE SHEET

36

PROFIT & LOSS ACCOUNT

37

After deep study of Financial Accounts of Axis Bank, we now can present the following analysis: y y y y y Network of branches and extension counters increased Total number ofATMs went up Net NPA ratio as a percentage of net customer assets down Earning per share (Basic) increased Proposed Dividend up

38

CHAPTER-4

CONCLUSION

39

CONCLUSION
Resilient fundamentals
Axis Bank stands apart from its private sector competitors ICICI Bank and HDFC Bank in one crucial respect. While the other two banks have envisaged retail banking as a key area of strategic emphasis with the share of the retail business (both on the funding and asset sides) growing strongly year after year the share of retail business, particularly retail assets, has actually come down quite sharply in the case of Axis Bank. The numbers here are quite interesting. For ICICI Bank, retail loans now (as of June 2007) account for as much as 70 per cent of the banks total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007. In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite high and has matched that of the other banks, retail exposures grew at a slower pace. If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a deliberate business strategy, this could have significant implications (not necessarily negative) for the overall future profitability of the business. Despite the relatively slower growth of the retail book over a period of time and the outright decline seen in the past year, the banks fundamentals are quite resilient. With the high level of mid-corporate and wholesale corporate lending the bank has been doing, one would have expected the net interest margins to have been under greater pressure. The bank, though, appears to have insulated such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and HDFC

40

Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank are lower despite its much larger share of the higher margin retail business, since funding costs also are higher).

41

CHAPTER-5

SWOT ANALYSIS

42

SWOT ANALYSIS

Environmental Scan

Internal Analysis

External Analysis

Strength

Weaknesses Opportunities

Threats

SWOT Matrix

Strengths y Good brand name y Customer loyalty y Product Quality y Good reputation among customers Weaknesses y Insufficient promotions y Unawareness about the services offered.

Threat
43

y Emergence of other banks like ICICI. y Low customer faith. y Non- response from the target customers y The government players will become aggressive thus growth is going to be tough. y Entry of other players is not ruled out. y Apprehension towards Axis Bank being a private company. y We expect the industry to rationalize in future that is mergers and acquisitions will happen, which will impact the industry and Axis Bank fortunes.

44

CHAPTER 6

SUGGESTIONS & RECOMMENDATIONS

45

SUGGESTIONS & RECOMMENDATIONS

As Axis Bank is the 3rd largest private bank in India, therefore, it has contributed a lot towards the progress of banking sector from the past 15 years since its establishment. The 1st private bank to be opened in India emphasis on modernisation, expansion and diversification of private banks. The bank tried to make a good image of private banks on public by providing every kind of services to its customers that they expect from banks. Hence, people were getting less dependent on nationalised banks. Axis Bank has not only given a new form of banking of private banks but also has maintained its growth speed after increase in competition due to more private banks coming in banking sector. Some of the important conclusions and recommendations are listed below: y y y Diversification in the banking sector. More emphasis on retail sector and corporate sector. Opening of new branches, installation of ATMs and more recruitment of employees. y y y y y y y y To maintain the growth at steady rate. More emphasis on personal loans and retail loans. Maximum promotion of products and increase in advertisements. Proper, safe and healthy environment for employees. Maximum returns to investors, shareholders and bondholders. Deeply analyses competitors strategy and work on it, clearly. Providing services to customers in best of their manner. There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses

46

BIBLIOGRAPHY

47

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

ARTICLES
1)New Name in Banking AXIS BANK From TIMES OF INDIA, Date:28April,20072 2) UTI STARTS AS NEW NAME From ECONOMY TIMES,Date:30 April,2007

WEBSITES
http://www.google.co.in/search?hl=en&source=hp&q=axis+bank&meta=&aq=null&oq= &rlz=1R2GGLL_enIN340 http://www.axisbank.com/aboutus/aboutaxisbank/About-Axis-Bank.asp http://en.wikipedia.org/wiki/Axis_Bank

48

49