PRESENTATION ON PERCEPTION OF PEOPLE REGARDING CREDIT CARDS

Submitted to: Mrs.Ritima

Submitted by: Jaskiranjit Kaur MBA(hons)FS- 3rd sem Roll no: 1003

INTRODUCTION
Banking In India: Overview Banking in India originated in the first decade of 18th century. The first banks were the general bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the The Bank of Bengal in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company.

They merged in 1925 to form Imperial Bank of India, which, upon Indias Independence became the State Bank of India. For many years the Presidency banks acted as quasicentral banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After Indias independence in 1947, the Reserve Bank was nationalized and given broader powers.

INTRODUCTION TO AXIS BANK

STARTED ON: 1994

ON JULY 2007 UTI BANK REBRAND AS AXIS BANK Axis bank was one of the first new private banks to have begun operations in 1994. The bank was promoted jointly by the administrator of the specified undertaking of the Unit Trust of India (UTI), Life Insurance Company Ltd., the Oriental Insurance Company Ltd. And United India Insurance Company Ltd. The bank today is capitalised to the extent of

The banks registered office is at Ahmadabad and its central office is located at Mumbai. The bank has a very wide network of more than 1042 branches(including 56 service branches on 30th june 2011). The bank has a network of over 4474 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

MISSION AND VISION

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

VISION 2015: To be the preferred financial solutions provider, excelling in customer delivery through insight, empowered employees and smart use of technology. CORE VALUES: Customer Centricity Ethics Transparency Team work Ownership

BANKING STRENGTHS: Retail banking Corporate banking REGISTERED OFFICE: Ahmadabad CENTRAL OFFICE: Mumbai TOTAL BRANCHES: 1042 ATM: 4474

INTRODUCTION TO CREDIT CARDS

A credit card is a small plastic card issued to users as a system of payment. It allows its holder to buy goods and services based on the holders promise to pay for these goods and services. The issuer of the card grants a line of the credit to the consumer(or the user) from which the user can borrow money for payment to a merchant or as a cash advance to the user.

Usage of the term credit card to imply a credit card account is a metonym. A credit card is different from a charge card: a charge card requires the balance to be paid in full each month. In contrast, credit cards allow the consumers a continuing balance of debt, subject to interest being charged. Most credit cards are issued by banks and also by the credit card unions.

TYPES OF CREDIT CARDS

When you look back at the history of credit cards, they started out simple and standard. Each issuer produced one card with one set of features. Today, credit cards come in multiple levels with ranging interest rates, fees and reward programs, so before filling out an application, its important to know which will best suit the most common types of credit cards available.

DIFFERENT TYPES ARE:THE STANDARD CREDIT CARDS: These credit cards are the most common and are readily available from most banks and financial groups. They are unsecured, which means you do not have to put down a security deposit to prove the money can be repaid.

 CREDIT CARDS WITH REWARDS PROGRAM

Reward credit cards allow users to earn incentives for making purchases with their credit cards. Points accumulate for each dollar charged on the card, and cardholders can redeem these points for various rewards. There are seven major types: CASH BACK CREDIT CARDS GENERAL REWARD POINTS CREDIT CARDS HOTEL OR TRAVEL POINTS CREDIT CARDS RETAIL REWARDS CREDIT CARDS GAS CARDS WITH POINTS OR REBATE

OTHER TYPES OF CREDIT CARDS: FREQUENT FLIER CREDIT CARDS AIRLINES-SPECIFIC CREDIT CARDS GENERIC AIRLINES MILES CARD BAD CREDIT AND/OR CREDIT REPAIR CARDS SECURED CREDIT CARDS PREPAID CREDIT CARDS SPECIALITY CREDIT CARDS Business credit cards Student credit cards

AXIS BANK CREDIT CARD

1. PLATINUM ADVANTAGE CREDIT CARD

The customer discovers some of the most treasured platinum priviliges that empower distinctive activities. 1. PLATINUM ADVANTAGE CREDIT CARD
GENERAL BENEFITS FROM AXIS CREDIT CARDS: MOBILE ALERTS: Apart from receiving regular alerts on mobile phones, the customer can also get outstanding amounts, payment made , bill generation etc.

GLOBAL ACCEPTANCE Axis bank credit cards helps users to be in control anywhere in world. The AXIS bank credit cards are accepted at over 23 million Visa accepting merchant established worldwide in indian rupee. GLOBAL EMERGENCY ASSISTENCE Axis Bank Credit Cards helps its customers to access the Visa International Global Card Assistance Services

INTEREST FREE PAYMENT The customers get upto 50 days free credit period on their purchase transaction without any finance charge being levied to your card account.. BALANCE TRANSFER: The customer transfer credit card balances and pay a flat interest rate of0.75% p.m for 6 months , with 1% processing fee or Rs100

THE DOCUMENTATION OF PLATINUM ADVANTAGE CARD: PAN Card photocopy or Form60 Residence Proof: Passport or Driving License or Ration Card Electricity or Telephone Bill Income proof:Latest payslip or Form16 or IT Return Copy

1. EASY PLATINUM/GOLD CREDIT CARD

A Credit Card for every Wallet!

A Credit card thats easy to get with minimum documentation and guaranteed approval. With the easy credit card,the customer gets a host of benefits ,attracting rewards and exciting offers every month.

THE BENEFITS OF EASY PLATINUM CARD ARE : Guarantee Approval: Axis bank Easy Credit Card is 100% assured Easy Documentation: It requires no income proof or no additional proof is required No additional identity proof All you need is Fixed Deposit at any of the branches of Axis Bank convinently located across India Lower Interest Rate of 1-95%p.m: Enjoy one of the lowest interest rate at Axis Bank Easy Credit Card

GOLD CREDIT CARD

Axis bank presented an exclusive credit card for exclusive people i.e Gold Credit Card. With this customer can access special feature and avail best benefits

BENEFITS OF GOLD CREDIT CARD:

Petrol Surcharge Refund: 2.5% fuel surcharge for fuel transaction between 400 and 4000 at all petrol pumps across India.No refund shall be provided for Service Tax charged on surcharge.
Plus-Points Rewards: With AxisBank Credit Card, customer can earn 1 plus-point for every Rs 100. Spent on domestic transaction and 2 Plus-ponts for International transaction.

GLOBAL ACCEPTANCE Axis Bank Credit Card helps its customer to be in control anywhere in world. The Axis Bank Gold Credit Card is accepted over 23 million VISA accepting merchants established world-wide . This is in addition to over 250000 VISA merchant establishments in India and Nepal. The customer can now buy in any currency and pay back in Indian currency. Balance Transfer: The can now also transfer existing balance from other credit cards to his Axis Bank Credit Card at a special rate of interest and

DOCUMENTATION: PAN Card photocopy or Form 60 Income proof includes latest payslip or form 16 or IT Return Residence proof which includes passport driving license Electricity bill, Telephone bill or Ration Card

E-SHOP CARD:
It is helpful in making the online shopping far more than earlier
The customers are usually worried about revealing their credit card detail on the internet,. Hence, Axis Bank present the EShop Card. A virtual credit card allows people to shop online securely without divulging their credit cards

Eligibility and Documentation

The customer should have a Fixed Deposit at any of Axis Branches, conveniently located across India. The minimum FD requirement for issuance of Credit Card is:

Easy Platinum premium and Easy Platinum-RS 1,00,000. Easy gold Rs 25 Easy Credit Card cant be issued aginst Tax saver FD, Flexi- deposits
Easy Credit card cant be issued to minors

CORPORATE CREDIT CARD An Expense management solution Axiss bank Corporate Card offers the best travel and expense management solution to corporate with global acceptance and customised solutions powered by VISA

a) Corporate Liability: They are effective means of managing travel policies and negotiating preferential terms with key suppliers b) Individual Liability: They are based on same lines as the personal credit cards and are effective way for employees to keep their personal and official expenses separate while at the same time simplifying reimbursement process.

TRUST CHEMIST CREDIT CARD

Trust chemist and druggist ltd.is the largest organized retail Pharmacy chain of Karnataka with 36 outlets in Bangalore. It is conceptualised on the foundation of consumer needsfrom medicines to preventive care .

EXCLUSIVE BENEFITS ORRERED 4% Discount on purchase at trust: Free first aid kit as welcome gift Priority billing Free home delivery Maintainance of purchase records

Zero Surcharge

SHRI RAM CREDIT CARD:

The card started for transport oper ators. It is a cobranded credit card started by Axis Bank with ShriRam Transport Company Ltd. It is exclusively for the customers of STFCL having good record. It is very useful for the operator to meet his day-day working capital requirement and provide him safety and convenience of Plastic Money. By using this credit card transporter can withdraw cash from ATM, and buy fuel ,tyres, battery

RESEARCH METHODOLOGY Procedure For this study, a structured questionnaire was prepared which contained both open ended and close ended questions. The questionnaire contained multiple choice questions which include open ended questions and close ended questions.

Research Plan The research design is exploratory in nature. The established objectives were kept in mind during the study. For the purpose of research, study of the consumers holding the credit card is done.
Data Collection The findings of this study are based on the information collected through primary data i.e. the information was collected directly from the respondents. Banks brochures have been consulted and various bank sites are referred to as secondary source of information

Sample Plan Sample size : 90 credit cardholders Sample unit : credit cardholders of various banks
Research Methodology The method adopted to carry out the report which was based on both the primary and secondary sources.

Primary sources Interaction with the existing employees and deputy manager. Personal interaction with the customers visiting to the bank. Secondary sources Manuals of the bank Websites Journal circulars

DATA INTERPRETATION Table : Gender of respondents

Sex No. of respondents Percentage

Male
Female

65
25

72.22%
27.78%

Most of the respondents holding credit card were male(72.22%), only 27.78% female were credit card holder

Table : Age of respondents

age 15 to 35 35 to 50 50 to 60 Above 60 No. Of respondents 20 30 25 15 percentage 22.22% 33.33% 27.78% 16.67%

Most of the respondents holding credit cards were in the age group of 35-50, followed by the age group of 50-60 and 15-35. Lesser respondents were in the age of above 60 years.

Table: Income of respondents

Income slabs 100000 100000-200000 200000-300000 More than 300000 No. Of respondents 11 27 38 14 Percentage 12.22% 30% 42.22% 15.55%

Most of the respondents were earning between 200000-300000(42.22%), 30% were earning between 100000-200000, 15.55% respondents were earning more than 30000 and only 12.22% were earning less than 100000

Table: Area
Area No. of respondents

urban

79

rural

11

Most of the respondents were from urban area(79) and only 11 were from rural area.

Table : Most preferable bank

Bank SBI AXIS bank ICICI bank Others

No. Of respondents 35 22 17 16

Graph
Preferable banks

To know the most reference mind awareness test, throughout that it was found that 16 respondents prefer HDFC, 17 respondents prefer ICICI, 22 respondents prefer AXIS and 35 respondents prefer SBI.

Table: Satisfaction from services of bank

Response Yes No Fully Partially Percentage 42% 20% 18% 10%

GRAPH

Table: Reason of choosing the bank

Reason
Past relationship Brand name Near to home/office others

Percentage
25% 30% 30% 15%

Graph

FINDINGS
out of 90 respondents 65 were male and 25 were female. Most of the respondent belong to age group 35 to 50(33%), then 50 to 60 (27%), followed by 15 to 35 (22%) and 16.67 above 60. Respondent mostly belong to income group of 200000-300000(42%), followed by 100000200000(30%), then 100000(12%). Mostly respondents were from urban(79) and only 11 were from rural.

They belong to different occupations lawyer, doctor, engineer, builder, consultant, exporter, importer, student and others. Mostly users were exporters, importers, lawyers and engineers.

OTHER FINDINGS
Out of 90 person 35 uses SBI cards, 22 AXIS ,17 ICICI and 16 uses credit cards of other banks. The period of usage is mostly from 1 to 2 yrs i.e. 38 respondent and 2 to 4 yrs i.e. 22 respondent, followed

by less than 6 months(17) and last option is more than 4 yrs (13). T.V. is the major medium through which awareness of credit cards occurs. In these 33 % were from this category believe that T.V. is the major medium followed by newspaper, magazines and friends, relatives and Internet. Most of the respondents buy credit card for past relationship followed by brand name and near to home will be last important factor. Rating of the bank is 46% good, 32% fair, 14% poor and 8% very poor. Reason of choosing the bank is 30% due to brand name and nearness to the working area and 25% due to past relationship and 15% due to other reason

CONCLUSION
Earlier credit cards were given away free with caution thrown to winds in early 2000s. All banks had liberal lending policy and risk goes hand in hand. But now things look different. Over the period of time it became a major source of income to AXIS bank. Now even consumers have become more aware of how to use credit cards more prudently. Credit card industry emerged as a major source to the bank. What customers perceive about credit cards is of great deal to the bank. To attract and retain its customers bank give lots of importance to various factors that influence their demand for credit cards.

The main factor that effects the peoples perception about credit cards depends upon their current status. For e.g.: are they male or female?, what areas do they live in?, do they own their own homes or do they rent? These days banks major focus is to attract high network customers.

SUGGESTIONS
Since AXIS bank is one of the largest in terms of accounts, deposits, loans, investments, market share no. of customers etc. All these positive stands of the company place it at one of the top most position in the industry. Even though there is need to increase the market share of the company.

There are some suggestions:Open some more branches in semi urban and rural area. AXIS has almost its branches in urban areas or metros. so in order to increase the no. Of customers, AXIS should increase the approach towards potential customers. For that it has to increase the branches in the semi urban cities like C,D grade cities. And the rural marketing is the best option for AXIS bank to increase its base in market. The rural people are least aware about credit cards and their usage. Therefore credit cards should be launched to the people belonging to primary sector like agriculture etc.

Cash back credit cards like PLATINUM ADVANTAGE CREDIT CARD should be allotted to only those people who are faithful in paying off their balances at the end of the month. Banks major focus is to attract high network customers. It should also attract other customers too by introducing special credit cards for people getting monthly salary etc to increase its customer base

LIMITATIONS OF THE STUDY

This research study, every effort was put in to make this report authentic in every sense, yet there were few factors which might have had their influences on the final report. The survey was conducted only in Dera baba nanak town of Gurdaspur distt. And it doesnt show the real picture of the national market. At some banks the respondents did not have a serious attitude towards questionnaire and hence their responses may not reflect the real picture. Some of the respondents were not aware of all the features and benefits associated with credit cards. Some respondents were not showing their real incomes