24871427 Project Report on Axis Bank Copy

7/28/2019 24871427 Project Report on Axis Bank Copy

http://slidepdf.com/reader/full/24871427-project-report-on-axis-bank-copy 1/37

PROJECTREPORT

ON AXIS BANK

1

http://www.axisbank.com/personal/index.asp



MARKETING PROJECT

COMPANY: AXIS BANK

SUBMITTED TO:

Prof:- tanish

2





ACKNOWLEDGEMENTS

It is great pleasure to express my sense of gratitude to Prof. tanish, without whose valuable

guidance generous help and constant enthusiastic inspiration this assignment titled

“CLASS PROJECT-AXIS BANK” would have never been a success.

I was almost convinced that I was aware of the business & market forces that drive the

Banking industry. However, once I started out working on the same, I realized how grossly

inadequate my knowledge had been. I thank sir for giving me all the valuable inputs all along

and guiding me to once again explore the sector I so much feel a part of.

3




INDEX

BANKING IN INDIA:

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new

challenges posed by the technology and any other external and internal factors. For the past

three decades India's banking system has several outstanding achievements to its credit. The

most striking is its extensive reach. It is no longer confined to only metropolitans or

cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of

the country. This is one of the main reasons of India's growth process.

HISTORY:

The first bank in India, though conservative, was established in 1786. From 1786 till today, the

journey of Indian Banking System can be segregated into three distinct phases. They are as

mentioned below:

• PHASE I - Early phase from 1786 to 1969 of Indian Banks

4




• PHASE II - Nationalization of Indian Banks and up to 1991

• PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established which

started as private shareholders banks, mostly Europeans shareholders. During the first phase the

growth was very slow and banks also experienced periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. To streamline the functioning and

activities of commercial banks, the Government of India came up with The Banking Companies

Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of

1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the

supervision of banking in India as the Central Banking Authority. During those day’s public has

lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the

savings bank facility provided by the Postal department was comparatively safer. Moreover,

funds were largely given to the traders.

PHASE II:

Government took major steps in this Indian Banking Sector Reform after independence. In

1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale

especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector

Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking

segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions

in the Country:

• 1949: Enactment of Banking Regulation Act.

• 1955: Nationalization of State Bank of India.

• 1959: Nationalization of SBI subsidiaries.

5




• 1961: Insurance cover extended to deposits.

• 1969: Nationalization of 14 major banks.

• 1971: Creation of credit guarantee corporation.

•

1975: Creation of regional rural banks.

• 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India raised to

approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the

sunshine of Government ownership gave the public implicit faith and immense confidence

about the sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his

name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give

a satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. The financial system of India has shown a great deal

of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as

other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the

foreign reserves are high, the capital account is not yet fully convertible, and banks and their

customers have limited foreign exchange exposure.

FIGURE: SCHEDULED COMMERCIAL BANK IN INDIA:

6




7




COMPANY PROFILE: AXIS BANK

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the

Government of India allowed new private banks to be established. Axis Bank was jointly

promoted by the Administrator of the specified undertaking of the

Unit Trust of India (UTI-I)

Life Insurance Corporation of India (LIC)

General Insurance Corporation Ltd.

Also with associates viz. National Insurance Company Ltd., The New India Assurance

Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

Axis Bank in India today is capitalised with Rs. 232.86 Crores with 47.50% public holding

other than promoters. It has more than 200 branch offices and Extension Counters in the country

with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country.

Axis Bank India commits to adopt the best industry practices internationally to achieve

excellence. Axis Bank has strengths in retail as well as corporate banking. By the end of

December 2004, Axis Bank in India had over 2.7 million debit cards. This is the first bank in

India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank

customers in all the places across the country where it has presence.

With the AT PAR cheque facility, customers can make cheque payments to any

beneficiary at any of its existence place. The ceiling per instrument is Rs.

50,000/-.The latest offerings of the bank along with Dollar variant is the Euro and

Pound Sterling variants of the International Travel Currency Card. The Travel

Currency Card is a signature based pre-paid travel card which enables traveler’s

global access to their money in local currency of the visiting country in a safe and

convenient way. 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

EVOLUTION:

8




UTI was established in 1964 by an Act of Parliament; neither did the Government of India own

it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of

Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-holders. The

State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital

each, and the rest was contributed by scheduled commercial banks which were not nationalized

then. This kind of structure for a unit trust is not found anywhere else in the world. Again,

unlike other unit trusts and mutual funds, the UTI was not created to earn profits.

In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in

achieving its objective and has the largest share anywhere in the world of the domestic mutual

fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes an

interesting story. The announcement by the then Finance Minister that the Government of India

was contemplating the establishment of a unit trust caught the eye of Mr. George Woods, the

then President of the World Bank. Mr. Woods took a great deal of interest in the Indian

financial system, as he was one of the principal architects of the ICICI, in which his bank, First

Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through Mr. B.K.

Nehru, who was India's Executive Director on the World Bank, the services of an expert.

The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust

proposals till the expert visited India. The only point Mr. Sullivan made was that the provision

to limit the ownership of units to individuals might result in unnecessarily restricting the market

for units. While making this point, he had in mind the practice in the US, where small pension

funds are an important class of customers for the unit trusts. The Centre accepted the foreign

expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began

corporate investment in the UTI, which received a boost from the tax concession given by the

government in the 1990-91 Budget. According to this concession, the dividends received by acompany from investments in other companies, including the UTI, were completely exempt

from corporate income tax, and provided the dividends declared by the investing company were

higher than the dividends received.

9




The result was a phenomenal increase in corporate investment which accounted for 57 per cent

of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the

UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby

which perhaps subtly opposed the establishment of the UTI in the public sector made use of it

for its own benefits later. The Government-RBI power game started with the finalization of the

UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be

nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the

draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the

Government, albeit in consultation with RBI. Although the appointment was to be made in

consultation with the Reserve Bank, the Government could appoint a person of its choice as

Chairman even if the Bank did not approve of him.

BUSINESS DESCRIPTION:

The Bank's principal activities are to provide commercial banking services which include

merchant banking, direct finance, infrastructure finance, venture capital fund, advisory,

trusteeship, forex, treasury and other related financial services. The Bank has 463 branches and

263 extension counters throughout India. During April, 2006 the Bank open-end 1 overseas

branch in Singapore.

10




MISSION AND VALUES:

OUR VALUES:

Customer Service and Product Innovation tuned to diverse needs of individual and

corporate clientele.

Continuous technology upgradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

CORE VALUES:

Customer Satisfaction through

o Providing quality service effectively and efficiently

o "Smile, it enhances your face value" is a service quality stressed on

o Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People.

As products, markets, customers and needs change rapidly, company must continually revisit

these seven Ps to make sure you're on track and achieving the maximum results possible for you

in today's marketplace.

11




1. PRODUCT

To begin with, develop the habit of looking at your product as though you were an outsidemarketing consultant brought in to help your company decide whether or not it's in the right

business at this time. Ask critical questions such as, "Is the current product or service, or mix of

products and services, appropriate and suitable for the market and the customers of today?"

Develop a habit of assessing your business honestly and asking,

Are these the right products or services for our customers today?

Compared to your competitors, is your product or service superior in some significant

way to anything else available? If so, what is it? If not, could you develop an area of superiority? Should you be offering this product or service at all in the current

marketplace?

Product variety, quality and its features.

Is there a market for the service on offer?

Is the market growing or shrinking?

Is the service new or established?

The competition prevailing in the market for the service on offer?

The USP of the product.

Products and Services on offered by AXIS Bank:

Accounts

• Easy Access Accounts

• Prime Savings Account

•

Salary Account

• Women’s Saving Account

• Senior Privilege Account

• Defense Salary Account

• Trust & NGO Savings Account

12




• Azzadi –No frills

• RFC (D) Account

• Pension savings Account.

Deposits:

• Fixed Deposits

• Recurring deposits

• Encash 24

• Tax Saver Fixed Deposits

Loans:

• Home loan

• Personal loan

• Loan Against Property

• Loan Against Security

• Car Loans

•

Study Loans

• Two Wheeler Loan

• Consumer Loan

Investments:

• Online Trading

• Mutual Funds

• Fixed Income

• Depository Services

• E Depository Services

Insurance:

• Health Insurance

13




• Family Health

• Health Guard

• Hospital Cash

2. PRICES

The second P in the formula is price. Develop the habit of continually examining and

reexamining the prices of the products and services you sell to make sure they're still

appropriate to the realities of the current market. Sometimes you need to lower your prices. At

other times, it may be appropriate to raise your prices. Many companies have found that the

profitability of certain products or services doesn't justify the amount of effort and resources

that go into producing them. By raising their prices, they may lose a percentage of their

customers, but the remaining percentage generates a profit on every sale. Could this be

appropriate for you?

Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading

your price over a series of months or years, you can sell far more than you are today, and the

interest you can charge will more than make up for the delay in cash receipts. Sometimes you

can combine products and services together with special offers and special promotions.

Sometimes you can include free additional items that cost you very little to produce but make

your prices appear far more attractive to your customers.

In business, as in nature, whenever you experience resistance or frustration in any part of your

sales or marketing activities, be open to revisiting that area. Be open to the possibility that your

current pricing structure is not ideal for the current market. Be open to the need to revise your

prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace.

AXIS bank has developed innovative strategies against its competitors with respect to pricing

by use of technology. The use of technology is the strategic differentiator for AXIS bank that

helps in cost minimization and creating efficiency for the customer. The creation of centralized

processing system linking all its branches has been a major strategic move in this regard.

The pricing mechanism and features of various HDFC products are as follows:

Home Loans:

Floating rates:

14




For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at

9.25 per cent (9 per cent).

The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50

per cent).

The interest rate for above ten years now stands at 10.25 per cent (10 per cent).

SAVINGS ACCOUNT:

Description of Charges Regular Savings Account

Minimum Average Quarterly

Balance

Rs 5000 (urban),

Rs 2500(Semi Urban),

Rs 1000 (Rural branch),

Rs 500 (student account)

Charges on non maintenance

thereof

Rs750 per quarter(urban &semi

urban)

Rs 500 (Rural branch),

Rs 250 (student account)

Cheque Book, Pass Book Issuance Free

Account Statements Free

Phone Banking and Net banking Free

.

FIXED INCOME

Investment Plans:

Investors can choose from cumulative and non-cumulative bond options.

Interest Rate:

Bonds will bear interest @ 8.00% per annum and are payable half-yearly.

15




Minimum Investment Amount:

The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in

multiples thereof.

Maximum Investment Amount:There is no upper limit for investment in the Bonds.

Maturity:

The Bonds shall mature on the expiration of six years from the date of issue.

Taxation:

Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable

according to the relevant tax status of the Bonds holder. Presently there is no tax

deduction at source at the time of interest payment.

16




17




FIXED DEPOSITS:

PERIOD INTEREST RATES ON DOMESTIC DEPOSITS

(%)

DEPOSITS Interest Rate on Deposits

Below Rs 15 lakhs

Interest Rates for

Senior citizen

Int Rate 15-50

Lakhs

7 days to 14

days

- - 1

30 days to 45

days

4 4 4

15 days to 29

days

3 3 3

46 days to 60

days

5 5 5

61 days to less

than 3 months

5.5 5.5 5.5

3 months to less

than 4 months

6 6 6

4 months to less

than 6 months

6 6 6

6 months to less

than 9 months

7 8 7

9 months to less

than 1 year

8 9 8

1 year to less

than 2 years

9 10 9

2 years to less

than 3 years

9 10 9

3 Years to less

than 5 years

8 9 8

5 Years upto 10

years

8 9 8

18




3. PROMOTION

The third habit in marketing and sales is to think in terms of promotion all the time. Promotion

includes all the ways you tell your customers about your products or services and how you thenmarket and sell to them. Small changes in the way you promote and sell your products can lead

to dramatic changes in your results. Even small changes in your advertising can lead

immediately to higher sales.

AXIS bank has devised an aggressive promotional strategy through its diversified distribution

mix which includes tied agencies and alternate channels like banks, brokers, telemarketing,

direct sales force, internet advertizing .

Some of the promotional activities undertaken are:

Cross Selling exercises

Organizing school level painting competitions in order to create awareness about

the environmental concerns and the wild life to promote kids advantage account.

Wheels of fortune - This promo are targeted at all those customers who avail a

personal loan, car or a two wheeler loan. There will be lucky draw at the end of

the promo and the winners would get exotic prizes.

Personalized promos by sending mailers about various products on offer to all

those who come in contact during the mass promotion strategies.

The promotional strategies are carried out with an objective of positioning AXIS

bank as a one stop financial super market. The focus of the promotions are not just

confined to acquisition of new products but also extends to creating product

awareness, enhancing usage, and also provide value add to the customers for their

faith and loyalty.

These promotions are scientifically designed based on data analysis and data mining

in order to have maximum impact on the target audience.

4. PLACE

The fourth P in the marketing mix is the place where your product or service is actually sold.

You can sell your product in many different places. Some companies use direct selling, sending

19




their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing.

Some sell through catalogs or mail order. Many companies use a combination of one or more of

these methods. It refers to those activities of the company that makes the product available to

target consumers. It includes geographic spread, distribution channels, dealer ships that

facilitate network establishment. Axis bank is widely spread in India and its core banking

operations has huge network –

• 580 branches and extension counters foreign offices – in Singapore, Hong Kong,

Shanghai and Dubai

• 2457 ATMs reaches out to 350 cities, towns and villages across the country

AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby

lowering the operating costs. It uses its network base to good effect to sell customized products.

5. PROCESS

The fifth element in the marketing mix is the process. Develop the habit of standing back and

looking at every visual element in the process or service through the eyes of a critical prospect.

Remember, people from their first impression about you within the first 30 seconds of seeing

you or some element of your company. Small improvements in the process or external

appearance of your product or service can often lead to completely different reactions from your

customers.

With regard to the process of your company, your product or service, you should think in terms

of everything that the customer sees from the first moment of contact with your company all the

way through the purchasing process.

Process refers to the way your product or service appears from the outside. Packaging refers to

your people and how they dress and groom. It refers to your offices, your waiting rooms, your

brochures, your correspondence and every single visual element about your company.

Everything counts. Everything helps or hurts. Everything affects your customer's confidence

about dealing with you.

6. POSITIONING

The next P is positioning, the habit of thinking continually about how you are positioned in the

hearts and minds of your customers.

20




How do people think and talk about you when you're not present?

How do people think and talk about your company?

What positioning do you have in your market, in terms of the specific words people use

when they describe you and your offerings to others?

AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible

to maximum customer. It has also come up with some phone banking centre and centralized

collection and payment hub.

CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides customers across the country

Access to the Bank over the phone, handling multiple queries in about 7000 calls per day.

CENTRALISED COLLECTION AND PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and

payment activity under the Bank’s Cash Management Services (CMS) across the country,

handling on an average about Rs.5000 crores per month on the collection front and about

Rs.1500 crores per month on the payment front.

7. PEOPLE

The final P of the marketing mix is people. Develop the habit of thinking in terms of the people

inside and outside of your business who are responsible for every element of your sales and

marketing strategy and activities.

It's amazing how many entrepreneurs and businesspeople will work extremely hard to think

through every element of the marketing strategy and the marketing mix, and then pay little

attention to the fact that every single decision and policy has to be carried out by a specific

person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with

the skills and abilities to do the job you need to have done, is more important than everything

else put together. An essential ingredient to any service provision is the use of appropriate staff

and people. Recruiting the right staff and training them appropriately in the delivery of service

is essential if the organization has to obtain competitive advantage.

AXIS bank values its human resources very highly and is on a constant endeavor to

continuously develop its human resources by laying strong emphasis on training development. It

21




possesses a highly motivated team of professionals and has the lowest employee turnover rate in

the industry.

DETAILED DESCRIPTION OF PRODUCTS AND SERVICES:

PERSONAL ACCOUNTS:

PRIME SAVINGS ACCOUNT

Axis Bank, we have always strived to pace our products with the growing needs of our

customers. The Prime Savings account has therefore been created with your specific

financial requirements in mind.

• Wider Accessibility: 500 branches and one of the largest ATM networks in

India.

• Greater Convenience: International Debit Card with withdrawal limit of Rs

40,000 per day facilitating transfer of funds, deposits of cash/cheques and

payment of insurance premium (LIC).

• More Comfort: 24 hr Internet Banking and Tele Banking services

• Enhanced Privileges: provide you a passbook and monthly statement of account

to keep you updated on all your transactions

• Added Speed: 'At Par' cheque facility, you have the unique advantage to encash

your cheques as a local cheque at more than 330 centers where the bank has a

presence at no extra cost

Other Accounts in this category:

SALARY POWER

SMART PRIVILEGE ACCOUNT

SENIOR PRIVILEGE

PENSION SAVINGS ACCOUNT

22




DEPOSITS

Fixed Deposits

Axis Bank offers a simple reinvestment Fixed Deposits (at very competitive interest

rates), which can be opened with a minimum investment of Rs 10,000.

Reinvestment Deposits:

In a reinvestment deposit, the interest accrued to your deposit at the end of each quarter

is invested along with the principal. The tenure of your deposit must be a minimum of 6

months.

Automatic Rollover:

As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on

maturity (for both the principal and interest). You can select this option in the Account

Opening Document (AOD). The options available are:

RECURRING DEPOSITS

Power of compounding

Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up

Your savings through regular monthly deposits of fixed sum over a fixed period of time.

Features:

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.

Transfer of Accounts - a recurring deposit account can be transferred from one office of

the Bank to another branch.

Encash 24

23




The ENCASH 24 (Flexi Deposits) gives you the liquidity of a Savings Account coupled

with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit

linked to your Savings Account providing you the following unique facilities.

LOANS

POWER HOUSE:

Axis Bank's Power Home puts an end to your Real Estate troubles.

Features:

• Attractive interest rates

• Balance Transfer facility

• Doorstep service

• Option to choose from floating rate or fixed rate Free Property & Personal accident

insurance.

PERSONAL POWER:

Features:

• Loans for salaried and self employed individuals

• Special loans for doctors, chartered accountants, engineers, architects, CS and ICWA .

• Loans are available from Rs 50,000 to Rs 20 lacs

• Repayment tenures from 12 to 60 months

• Attractive interest rates Free personal accident insurance cover with personal loan

• Loans can be used for any purpose with no questions asked regarding the end use of the

loan A balance transfer facility available for those who want to retire any higher cost

debt Loans available against repayment track record of any existing auto, personal or

home loan Loans available against proof of life insurance policy or premium receipts

• Zero balance SB account facility for personal loan customer’s Simple procedure,

minimal documentation and quick approval.

ASSET POWER (Loan Against Property)

A take-over of your existing loan with refinancing is also possible with Asset Power.

Features

24




Attractive interest rates

Balance Transfer facility available with additional finance

Doorstep service

Four products under Asset Power

Loan against property - Residential

Loan against property - Commercial

Loan for purchase of commercial property

Take-over of existing loan with additional refinance (Balance Transfer)

Lease Rental Discounting (LRD)

CORPORATE BANKING

Working Capital Finance

. These products are designed to ease the liquidity position of the client and come with a

number of other facilities such as Internet Banking, Phone Banking etc.

Trade Services

Axis Bank has emerged as one of the leading banks in providing trade finance services,

providing a gamut of products for both exports and imports, with dedicated Front-Desk

and Specialists, speedy processing of documents and provide comprehensive and timely

MIS.

Structured Finance

Axis Bank provides tailor made solutions to meet our clients' requirements, while

mitigating the credit and price risk at the same time.

Supply Chain Management

Axis Bank provides integrated commercial and financial solutions to the supply and

distribution channels of a corporate. The products are designed to add value to supply

25




and distribution channels by providing unique solutions to meet their working capital

requirements.

CAPITAL MARKETS

Debt Solutions

Axis Bank is a leading provider of debt solutions in the form of bond or debenture issuances and

loan syndication. The Bank has successfully managed various debt issuances of mid and large

size which includes plain vanilla loans or bonds, and structured term loans to meet the specific

requirements of the clients and the projects. The Bank is the largest bond house in the country

and has been ranked first in respect of various domestic and international league tables in

respect of domestic debt issuances.

Equity Solutions

We are SEBI registered Category I Merchant Banker. The Bank's Capital Markets Department

has developed significant expertise in the area of public or rights issue management, private

placement of equity, overseas fund raising through FCCB and GDR and debt syndication.

The Bank has acted as Lead Book Running Managers, co-arrangers and advisors to a number of

equity issuances or offers.

Trusteeship Services

Axis Bank Ltd. is a SEBI registered Debenture Trustee in the business of Debenture

Trusteeship, Security Trusteeship, Monitoring Agency and Facility Agency and predominantly

acts as Trustee to privately placed debt issuances, domestic borrowings and external commercial

borrowings.

At present the aggregate value of the Trusteeship portfolio is approximately Rs 1, 00,000 crores.

The Trusteeship Group presently services over 150 clients including leading public and private

sector corporate as well as Banks and Financial Institutions including international funding

agencies in respect of various debt instruments issued within the country and also for varioussecured Foreign Currency Convertible Bonds and External Commercial Borrowings.

EDepository Services

With the introduction of settlement on T+2 basis, instruction for delivery of securities to

broker's account is required immediately after sale of securities. Hence time available for

26




submission of delivery instructions is limited. Axis Bank now permits submission of delivery

instructions in electronic form using Internet based service called Speed-e. Physical delivery

instructions need not be submitted in case you are submitting the instructions on Speed-e.

CAPITAL MARKET FUNDING:

Axis Bank is a clearing bank for following exchanges:

• National Stock Exchange of India Limited (NSE)

• The Stock Exchange, Mumbai (BSE)

• National Commodity and Derivative Exchange (NCDEX)

• Multi Commodity Exchange (MCX)

• All the Settlement related activities for these exchanges are carried out through its

Capital Market Division, Fort Branch, and Mumbai.

From the above data it is clear that AXIS bank is among the top three private players in the

banking industry.

The above doughnut clearly indicates that the branches of the Axis bank is increasing

27




COMPETETIVE ADVANTAGES OF AXIS BANK:

The Economic Survey of 2005-06 has affirmed that significant features of dynamic growth in

recent years include a new industrial resurgence, pick-up in investment, modest inflation inspite

of spiraling global crude prices and the laying of institutional foundations for faster

development

of infrastructure. The economic growth indices in the current year have been good and the GDP

growth is expected to be around 8.1% for fiscal 2006. Non-food bank credit is expected to grow

at 25.2% indicative of industrial recovery and the services sector by 9.8%. Agriculture and

Allied sectors are expected to grow at a rate of 2.3% in the current fiscal. In order to maintain

the GDP growth at over 8% in coming years and accelerate growth in industry, substantial

investments will be required in infrastructure. External conditions have also been favorable with

28




a growing level of foreign exchange reserves. The overall macro-economic prospects for 2006-

07 are, therefore, encouraging.

OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCEThe Bank has been able to turn in an impressive business performance and record good

financial results for the fifth year in succession, owing to the efficacy of its business model

which aspires to be customer-centric.

Information technology is continuously leveraged in providing value added products and

services as well as multiple-delivery channels to customers in a manner that is cost-effective

and which offers the Bank’s customers easy, real-time and on-line access for all types of

transactions.

The strong performance, despite a tightening of overall liquidity leading to a hardening of

interest rates in the closing stages of the fourth quarter, reflected the fact that the primary

Goals of the Bank of increasing its market share in various businesses and improving its quality

of earnings by enhancing its core income streams, is solidly anchored in the strategy adopted by

it.

The sizeable network of branches, extension counters and ATMs has equipped the Bank with an

impressive reach across the country and is supported by channels such as the Internet and

mobile phone banking. The steady widening of this reach to smaller cities and towns, including

in district headquarters, is expected to sustain the momentum of growth of low cost deposits, as

the Bank enjoys a first-mover advantage vis-à-vis other private sector banks in many of these

centers.

The key factors which contributed to the healthy performance of the Bank during the year were

the

Continued thrust on improvement in the quality of earnings through an emphasis on core

income streams such as net interest income and fee based income;

The availment of opportunities emanating from the upswing in the corporate credit

cycle;

A focus on improvement in asset quality through rigorous credit and risk appraisal,

sound treasury management, product diversification and internal control;

29




Enhanced cost efficiency by leveraging on technology that is continuously upgraded;

Maintenance of high standards of customer service.

SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:

BUSINESS CONTINUITY CENTRE:

UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC)

In Bangalore which replicates the entire centralized database with a view to enable the Bank to

run smoothly in case of any eventuality affecting the Bank’s Data Centre in Mumbai.

Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously

through WAN on the back-up database at the BCC.

CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides customers across the country

Access to the Bank over the phone, handling multiple queries in about 7000 calls per day.

CENTRALISED COLLECTION AND PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and

Payment activity under the Bank’s Cash Management Services (CMS) across the country,

handling on an average about Rs.5000 crores per month on the collection front and about

Rs.1500 crores per month on the payment front.

RETAIL ASSETS MANAGEMENT GROUP

The Bank’s Retail Assets Management Group (RAMG) is the operations hub of the entire

Retail asset distribution structure. In addition to opening and disbursing more than 3000

Schematic loans every month, it is responsible for the maintenance of more than 100,000

Such loan accounts, and handles the entire post – dated cheque presentation and several

Kinds of repayments for all these accounts.

ATM BACKEND CELL

30




The ATM Backend Cell handles the entire cash management and reconciliation of balances

pertaining to ATMs across the country and ends up tallying over four lakh

Transactions by the end of the day.

SERVICE BRANCHES

The Bank’s Service Branches in the 8 major metros take care of centralized clearing activity,

Handling more than one lakh cheques every day for outward and inward clearing.

DATA CENTRE

The Bank’s Data Centre in Mumbai, the centralized IT powerhouse is like the central nervous

system of the Bank. It is a real time 24x7 setup which manages 270 products and services of theBank with a database size of 1850 GB supporting on an average 42 lakh transactions per day

to service over 42 lakh customer accounts and adding new customers @ 8000 per day.

CENTRALISED PROCESSING UNIT

The Bank’s Centralised Processing Unit (CPU) is the backbone of the Bank, managing

production and delivery of the entire range of deliverables to customers across the country

within 24 – 72 hours from the time the customer opens the account. The CPU currently handlesabout 8500 new accounts every day.

JOB RESPONSIBILITIES OF A MANAGER

Job description

A banker is responsible for establishing and maintaining positive customer relationships,

planning and delivering effective sales strategies and monitoring the progress of new and

existing financial products. Bankers may work as managers in high street branches providing

operational support on a day-to-day basis, or in more specialized posts in corporate or

commercial departments at area, regional or head offices.

31




Banks operate in a fiercely competitive marketplace where change is common. Products and

services offered have to develop to satisfy the expectations and demands of customers and

working with staff and customers to achieve targets has become a very major part of the role.

Typical work activities

Responsibilities and work activities may vary between retail and corporate and commercial

banking. Most retail bankers work in high street branches, dealing with both private and

corporate customers, while some work in regional or head offices. Bankers who work with

commercial or corporate customers may be based in branches or may work from specialized

area or regional offices.

Bankers who have area and regional responsibilities adopt a strategic role and, whilst retaining

overall accountability for service and product delivery, usually delegate supervision of day-to-

day operations to staff in branch outlets.

Responsibilities for both retail and corporate and commercial bankers may include:

• implementing the delivery of sales strategies and targets and motivating employees to

meet these;

• establishing and maintaining effective relationships with new and existing customers,

establishing their needs and advising on the suitability of services;

• visiting business customers and attending meetings and conferences with them and other

professionals;

• managing and supporting staff and facilitating appropriate continuing professional

development (CPD);

• communicating, implementing and monitoring compliance with corporate standards and

procedures;

• processing data to produce accurate facts, figures and reports;

• evaluating new and renewal lending proposals, negotiating terms with customers and,

where appropriate, submitting proposals to the credit department for approval;

• checking accounts and initiating action if they are overdrawn without arrangement or are

in excess of agreed arrangements;

32




• assuming overall accountability for products and services, such as consumer lending,

current account transactions, unsecured loans, overdrafts, credit cards and personal

loans;

• networking with appropriate professionals;

• Representing the bank within the wider community.

CORPORATE BANKING

Corporate Banking offers various loan and fee-based products and services to large corporate,

SMEs and to the agriculture sector. The Bank continued with the strategy of diversifying its

customer base, including deeper penetration in higher yielding segment, channel

Finance, SMEs and agricultural finance segments. In order to give an impetus to the SME

segment and to agricultural lending, there was a significant organizational reinforcement by

setting up

SME cells

Adopting a cluster-centric approach for agricultural lending in areas with rich potential

for such activity.

In this direction 6 state-specific and 4 city-specific SME cells were set up. In the area of

agricultural lending, 9 agricultural clusters were formed which focused on agricultural lending.

The Bank will continue to:

Open more rural branches as also set up agricultural clusters to boost its agricultural

business.

Create backward and forward linkages for all players in the agriculture business chain

so as to provide composite financing across the food chain.

The syndication and underwriting of corporate loan activities of the Bank took off during the

year. The Bank experimented with new delivery models for credit, including setting up low cost

rural ATMs at Anand, in order to provide convenient and low cost transaction services to the

33




suppliers of milk to the Co-operative. Such application of technology provides customer

convenience as well as product innovation.

CAPITAL MARKETS

The Bank’s Capital Markets business encompasses investing and trading in corporate debt andequity, and providing several other fee-based services like

Capital restructuring,

Placement

Syndication,

Trusteeship services,

Management of public

Rights issues,

Appraisals

Advisory services,

Depository related services,

Portfolio management services,

Capital market related services.

Future Strategies: Project advisory services with a focus on infrastructure and other core sectors.

Financial advisory skills with technical advisory skills by forming alliances.

The Bank also maintains an investment and proprietary trading portfolio in corporate bonds and

equities.

SAILIENT FEATURES:

Today 14.6% of our customers are registered for mobile banking. The Bank aims to be a

significant player in the cards business.

The debit card base of the Bank grew to 40 lacs during the year from 30.3 laces.

34




The Bank was the first Indian bank to introduce the travel currency card, a foreign

denominated pre-paid card, which is positioned as a convenience alternative to the

travelers’ cheque.

The card is issued in five currencies:

U.S. Dollar,

Australian Dollar,

Canadian Dollar,

Pound Sterling

Euro on the VISA flag platform.

During 2005-06, foreign currency sales by the Bank through the travel currency card exceeded

US Dollars 63 million.

The Bank is also the first to introduce

Remittance Cards, which changes the way inward remittances, are sent to India.

Direct remittances are facilitated via tie-ups with major Banks in the US, UK, Europe

and South Asia.

Rewards Card, a pre-paid Rupee card for corporate to facilitate quick payments to their

employees, agents and distributors.

As on 31st March 2006, the Bank has installed 21,084 POS terminals, as against 12,067

POS terminals at the end of the previous year.

The growth of retail and consumer lending in India must be seen as arising from a strong growth

in incomes amongst the middle class and the more affluent segments, leading to changes in

consumer behavior. As the demographically induced shift is structural rather than cyclical, it is

likely to sustain over the medium term and beyond, and constitutes the rationale for the growth

in retail lending.

RECOMMENDATIONS TO THE COMPANY TO GAIN UPPER MARKET SHARE:

35




UTI Bank was one of the first private banks to launch operations in the country in 1994, after

the Government of India passed a resolution in favor of privatization. An IT savvy bank, UTI

Bank is a pioneer in adopting new technologies in the banking sector. UTI has a very large

network of branch offices and extension counters across the country. With over 1700 ATMs,

UTI Bank has the largest ATM network of its kind in India.

CRM:

Privatization opened up the Indian banking sector, allowing a large number of players to offer

retail banking services in the country. Using the latest technologies, UTI Bank introduced

quality services to enhance the banking experience of its customers. As the services stack

expanded, supporting customers became a challenging task. Efficient service and timely support

were the deciding factors for customers to remain loyal to any particular bank, which brought

Customer Relationship Management (CRM) into sharp focus.

BPO:

UTI Bank wanted to establish itself as a customer focused bank and carve a niche for itself

amidst the widespread competition. Setting up a state of the art call center facility that could

provide quality support to customers across the country became vital to further this goal. The

call center was expected to eliminate the load of routine queries that branch operators had to

handle. A dedicated response center would allow branch operators to divert all customers’

queries to the helpdesk number and focus on their core responsibilities instead. Also, a single

window service with a populated knowledgebase would introduce a high degree of

standardization in the replies given to customer queries. The bank was also looking to avoid a

situation where customers would be put on hold for long periods of time. A failover and

redundancy solution was required to guarantee high availability of services and ensure

uninterrupted call traffic. For handling large call volumes, the application infrastructure was

also required to be perfectly scalable. The bank wanted a solution that could accommodate

growth over a long period of time.

36




Conclusion

UTI Bank has been turned into an Open Source believer after the success of its call center

project. The bank has set the lead for the hundreds of BPOs and call centers in the country to

follow. By running their CRM infrastructure on an open, standards based platform .BPOs can

achieve significant TCO reduction along with high performance and security.

BIBLIOGRAPHY:


Documents

24871427 Project Report on Axis Bank Copy