Axis Report.doc NEW

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A

Practical Training Report

ON

Analyze of Loan Assessment Process

Undertaken at

JAIPUR

Submitted in partial fulfilment for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

2010-11

SUBMITTED TO: SUBMITTED BY:

UNIVERSITY OF RAJASTHAN ANIL KUMAR SHARMA

B.B.A. 3rd YEAR


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VIDYASHTALI INSTITUTE OF TECHNOLOGY, SCIENCE &

MANAGEMENT, JAIPUR

Preface

Finance acts as a tool against all products determine which targets the organization can serve best,and designs appropriate role of mass marketing and advertising and disconcerting erosion of brand

loyalty.

these drastic Finance is the business function that identifies financial functions and products,

services and programs to serve these markets. However, finance is much more than just an isolated

business functioning- it is the philosophy that guides the entire organization. technologicalchanges, we are witnessing a power shift, from manufacturing to giant retailers, a rapid growth and

acceptance of store brands, new retails forms rowing consumers .

Todays markets are changing at an incredible pace. In addition to globalization and price andvalue sensitivity, a diminishing changes. Finance is an orderly and insightful process for thinking

about planning for market.


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Acknowledgement

Summer training is one of the most vital and active part of the curriculum of management students.Its basic idea behind this is to strengthen the students concept through practical training and make

them acquainted with actual method and procedures. I did the work as a management trainee at

AXIS Bank Limited for a period of six weeks starting from 18th May, 2010.

I would like to extend my heartfelt gratitude to Mr. Navneet Rally Branch Manager, for his proper

guidance throughout the project. Without his support and cooperation I would have failed in my

endeavours and targets in the summer training.

(Anil Kumar Sharma)


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EXECUTIVE SUMMARY

The financial year 2007-08 will be remembered as a year of transformation in the history of the

Bank, when the name of the Bank changed to Axis Bank from UTI Bank. The conviction that itwas worthwhile to invest in building a brand that would solely be our own helped to create a

distinct id entity. The name Axis Bank connotes solidity and transcends geographical boundaries

as we seek to become a multinational bank. The Bank was successful in establishing a new

identity in the market in a short span of time. The Bank once again met with considerable successover the past year and achieved all its key objectives. This encouraging performance not only

underscored the sustain ability of the Banks high tempo of growth, but also helped to move closerto its objective of being one of the more customer-focused banks in the country. This is reflected

in the robust growth in both business and revenue during 2007-08 and in various financial

parameters. During 2007-08, the Bank's business and earnings continued to show high growth,indicative of a clear strategic focus, the communication of corporate priorities to branches across

the country, and finally the execution of these goals through intensive efforts. The Bank reported a

net profit of Rs. 1,071.03 crores during the year ended 31st March 2008, up 62.52%, from Rs.

659.03 crores in the previous year. Diluted earnings per share (EPS) were Rs.31.31 per share, up37.38 % from Rs. 22.79 per share a year earlier. Return on Equity (ROE) was 16.09% compared

to 21.84% a year earlier. The decline in ROE was primarily on account of the raising of fresh

equity capital during the financial year. Return on Average Assets was 1.24%, compared to 1.10%in the previous year.

In 2007-08, the Bank achieved a total income of Rs. 8,800.80 Crores, up 60.84 % from 2006-07.During this period, operating revenue was Rs. 4,380.84 crores, up 76 .76% from the previous year,

while operating pro fit was up by 76.12% to reach Rs.2,225.92 crores. The strong growth in

income was largely driven by a strong increase in both net interest income by 76.07% to Rs.

2,585.35 crores, and fee and other income by 77.75% to Rs. 1,795.49 crores. The strong incomegrowth reflects the solid business growth across all banking segments and the successful execution

of growth initiatives. The strong growth in incomes was partly offset by an increase in operating

expenses, including depreciation, by 77.42% to Rs. 2,154.92 crores. The increase in operatingexpenses primarily reflects the higher costs incurred as a result of increased business levels that

include additional sales and service personnel and higher variable compensation. Additional

expenses incurred to support the growth initiatives of the Bank (including network expansion aswell as the re-branding exercise) also contributed to the increase in operating expenses.

As a conscious strategy of building an organic growth engine during the year, the Bank continued

to expand it s distribution network, in both domestic and oversea s geographies, to enlarge its reach

and accelerate its business momentum. The Bank has developed a branch network which is built


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on customer-convenience and service, helping it particularly in the acquisition of low-cost retail

deposits, retail assets, lending to agriculture, SME and mid-corporate and facilitating the cross-

selling of third-party products.

CONTENTS

Serial

No.

Particular

1.

Introduction to Banking Industry

Early History

Nationalized Bank In India

Private Sector bank In India

2.About Company: AXIS BANK

Retail Banking

Corporate Banking

3.Credit Policy/ Easy Credit Card

4.Loan Assessment

1.Home Loan

2. Personal Loan

3.Loan Against Property

4.Auto Loan

5. Agriculture Loan


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5. Recommendations & Suggestions

Objective of Study

Scope of Study

Importance of Study

Facts & Findings

6. Research Methodology

KYC(Know Your Customer) Guideline

7. Conclusion

8. SWOT Analysis

9. Questionnaire

10. Bibliography

1.INTRODUCTION TO BANKING INDUSTRY

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 ofBengal" 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 the Imperial Bank of


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India, which, upon India's independence, became the State Bank of India. For many years the

Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India

formally took on the responsibility of regulating the Indian banking sector from 1935. After India'sindependence in 1947, the Reserve Bank was nationalized and given broader powers.

Early History:

The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at theend of late-18th century, there were hardly any banks in India in the modern sense of the term. The

American Civil War stopped the supply of cotton to Lancashire from the Confederate States.

Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative

ventures, most of the banks opened in India during that period failed. The depositors lost moneyand lost interest in keeping deposits with banks. Subsequently, banking in India remained the

exclusive domain of Europeans for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoired'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862;

branches in Madras and Pondicherry, then a French colony, followed. Calcutta was the most active

trading port in India, mainly due to the trade of the British Empire, and so became a bankingcentre.

The Bank of Bengal, which later became the State Bank of India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period of

stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial andother infrastructure had improved. Indians had established small banks, most of which served

particular ethnic and religious communities.

The presidency banks dominated banking in India. There were also some exchange banks and anumber of Indian joint stock banks. All these banks operated in different segments of the economy.

The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian

joint stock banks were generally under capitalized and lacked the experience and maturity to

compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe,"In respect of banking it seems we are behind the times. We are like some old fashioned sailing

ship, divided by solid wooden bulkheads into separate and cumbersome compartments."

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank,in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under

private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like

Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local

businessmen and political figures to found banks of and for the Indian community. A number ofbanks established then have survived to the present such as Bank of India, Corporation Bank,

Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

Nationalized Banks in India:


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Banking System in India is dominated by nationalized banks. The nationalization of banks in India

took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind

nationalization was to spread banking infrastructure in rural areas and make available cheapfinance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of

India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI

Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980.Seven more banks were nationalized with deposits over 200 crores.

List of Public Sector Banks in India is as follows:

Allahabad Bank State Bank of India (SBI)

State Bank of Indore State Bank of Mysore

State Bank of Patiala State Bank of Saurashtra

State Bank of Travancore Syndicate Bank

UCO Bank Union Bank of India

United Bank of India s Vijaya Bank

Andhra Bank Bank of Baroda

Bank of India Bank of Maharashtra

Canara Bank Central Bank of India

Corporation Bank Dena Bank

Indian Bank Indian Overseas Bank

Oriental Bank of Commerce Punjab and Sind Bank

Punjab National Bank State Bank of Bikaner & Jaipur State Bank of Hyderabad

Private Banks in India:

All the banks in India were earlier private banks. They were founded in the pre-independence era

to cater to the banking needs of the people. But after nationalization of banks in 1969 public sectorbanks came to occupy dominant role in the banking structure. Private sector banking in Indiareceived a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part

of its policy of liberalization of the Indian Banking Industry. Housing Development Finance

Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from theReserve Bank of India (RBI) to set up a bank in the private sector.

Private Banks have played a major role in the development of Indian banking industry. They have


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made banking more efficient and customer friendly. In the process they have jolted public sector

banks out of complacency and forced them to become more competitive.

List of Private Sector Banks in India is as follows:

1Bank of Rajasthan Bharat Overseas Bank

2Axis Bank Catholic Syrian Bank

3Centurion Bank of Punjab Dhanalakshmi Bank

4Federal Bank HDFC Bank

5ICICI Bank IDBI Bank

6IndusInd Bank ING Vysya Bank

7Jammu & Kashmir Bank Karnataka Bank

8Karur Vysya Bank Kotak Mahindra Bank

2SBI Commercial and International South Indian Bank

Bank UTI Bank

9United Western Bank10YES Bank

2.About Company : AXIS BANK

Start on 1994


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On July 2007 UTI Bank rebrand as Axis Bank

Promoters:

Unit Trust Of India (UTI)

Life Insurance Corporation (LIC)

General Insurance Corporation (GIC)National Insurance Company Limited

New India Assurance Company Limited

The Oriented Insurance Company Limited

United India Insurance Company Limited

Capitalization:

359 crore

Public Holding = 57.60%

Registered Office:

Ahmadabad

Central Office:

Mumbai

Total Branches:

827

ATM:

3595

Bank Strengths:

Retail Banking

Corporate Banking

Directors:


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Shri N.C. Singhal Director Shri J.R. Varma Director

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director Shri M.V. Subbiah Director

Shri Ramesh Ramanathan Director

Shri K. N. Prithviraj Director

Auditors:

M/s. S. R. Batliboi & Co. Auditors Chartered Accountants

Registrar and Share Transfer Agent:

M/s. Karvy Computershare Private Limited

Axis Bank is one of the fastest growing banks in the country and has an extremely competitive andprofitable banking franchise evidenced by:

Competitor:

Private Sector competitor:

HDFC

ICICI

Public Sector competitor:

SBI

PNB

Profile:

Comprehensive portfolio of banking services includes Corporate Credit, Retail Banking, Business

Banking, Capital Markets, Treasury and International Banking.


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The Position as on 31st March 2009 was as under: -

Balance Sheet Size Rs 1,47,722 crore

Total Deposits Rs 1,17,374crore

Net Advances Rs 81,557 crore

Investments Rs 46,330 crore

Net NPA 0.35%

Capital Adequacy Ratio 13.69% %

Axis Bank has in place a sound technological platform:

Sound technological platform with centralized database and operations enabling 24*7*365Anywhere Banking, in order to render the best customer service to its 5.5 million customer base.

Mission and Values:

1Customer Service and Product Innovation tuned to diverse needs of individual and corporateclientele.

2Continuous technology up gradation while maintaining human values.

3Progressive globalization and achieving international standards.

4Efficiency and effectiveness built on ethical practices.5Customer Satisfaction through

6Providing quality service effectively and efficiently

7"Smile, it enhances your face value" is a service quality stressed on8Periodic Customer Service Audits

9Maximization of Stakeholder value

10Success through Teamwork, Integrity and People

Vision:To be the preferred financial solutions provider excelling in customer delivery through

insight, empowered employees and smart use of technology

Retail Banking:


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The Bank continued with its thrust on customer segmentation in the retail liabilities business to

spearhead growth during the financial year 2008-09. Savings Bank deposits grew to Rs. 25,822

crores on 31st March 2009 from Rs. 19,982 crores as on 31st March 2008 showing a year on yeargrowth of 29%.

The Priority-Banking offering of the Bank has led the growth in the Savings Bank deposits. Othersavings products, especially those for senior citizens, for women and for NRIs have contributed

strongly to the overall growth of the savings bank deposits.

Savings Bank Product Growth in Savings

Bank Balances

Growth in number of

Accounts

Priority Banking (High Net

worth)

100% 108%

Savings Accounts forTrusts

133% 39%

Savings Accounts for NRI 262% 80%

Senior Privilege (Affluent

Senior Citizens)

29% 46%

Smart Privilege (Savings

Accounts for Women)

73% 50%

Salary Power (Pay Roll

Account)

38% 28%

Easy Access (Base SavingsBank Account)

49% 26%

Corporate Banking:

The Business Banking Department (erstwhile Institutional Business Department) was set up in the

year 2000, with the objective of having a special cell to serve the institutional and corporate

clientele of the Bank. Business Banking initiatives revolve around transaction banking services togarner Business Current Accounts, Cash Management Service mandates, Government Business -

Collection & Payment Services. As a natural corollary, scope of the business was extended this

year to Business loans for Small Businesses so that all product and services to small business


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enterprises are comprehensively made available.

The Department presently focuses on the four broad areas through the

respective Business Groups, as under:

Business Current Accounts

Business AssetsCash Management Services

Government Business

Corporate Credit:

Current Account deposits grew by 24% yoy, from Rs. 20,045 crores as at end March08 to Rs.

24,822 crores as at end March09. The daily average Current Account balances over the year grewby 24% yoy. The Corporate Credit portfolio of the Bank comprising advances to large and

midcorporates grew by 68.33% to Rs. 29,026 crores from Rs. 17,244 crores a year ago. Thisincludes advances at overseas branches amounting to Rs. 5,381 crores (equivalent to USD 134

million) comprising in main the portfolio of Indian corporates and their subsidiaries, as also trade

finance. Credit exposures are taken based on risk analyses and mitigation measures, with proposalsbeing subjected to critical scrutiny by the Bank's Risk Department. Efforts are made to constantly

upgrade the skills required for faster turnaround of credit proposals and structuring of financial

products. In addition to working capital loans, the Bank also takes long-term exposures toinfrastructure and manufacturing projects set up by reputed industry groups. Relationship groups in

the Bank are organised with an industry sector focus for better evaluation of specified risks. The

credit policy of the Bank has also put in place ceilings on exposures to various industries with aview to containing concentration risk and facilitating portfolio diversification.

AXIS Banks Current Accounts:

The basic product for mobilizing such deposits is a Current Account. The Bank offers a range of

current account products to meet the needs of the various customer segments such as Small

Enterprises, Trade, Exporters, Corporate and institutions. The various Current Accounts offered bythe Bank are:-

Hospitality Current Normal Current AccountBusiness Advantage Account

Business Classic Account

Business Privilege AccountChannel One

Current Account for Govt Organisations

Current Account for Banks

Current Account for Builders & Real Estate


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Capital Market Current Account

Krishi Current Account

Business Global Current AccountClub 50 Current Account

Shipping and Maritime Current Account

Inland Road Transport Current AccountTravel, Tourism and Account

3.Credit Policy/Easy Credit Card

What is Easy Credit Card?

A Credit Card that is...Easy for customers to get!

Easy for us to sell!

Why is it Easy for the Customer?

1Flexible Credit Limit (Up to 80% of the FD amount)

2High Cash Withdrawal Facility

3Minimum Documentation (No Income Proof/KYC required)4Fast Delivery of the Card

5Substantially Lower Interest Rate of 1.95% p.m.

6Guaranteed Approval7Free Credit Period of 20-50 days

8Comprehensive Insurance

9Attractive Reward Points

10Other benefits of a regular credit card

Easier than Other Modes of Payment

Easier than Other Credit Cards


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Guaranteed ApprovalNo Income Proof required

Lower interest rate

Credit Limit of choice

Higher Cash withdrawal facility

Easier than Debit Cards

Interest free credit period of up to 50 days

Higher Insurance PackageEase of Online & MOTO transactions

Easier than O/D against FD

Interest free credit period of up to 50 days

Reward PointsComplimentary Insurance

Record of transactions

Easier than Cash

Convenience of PlasticComplimentary Insurance

Reward Points

Record of transactions


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Variants:

Available in three variants:

Easy Platinum Premium (In sourcing locations only)

Easy Platinum

Easy Gold

Pricing:

Type Joining Fee Annual Fee* Annual Fee Waiver

for Year 2


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Platinum

Premium 5,000 1,000

Customer Spends

> Rs. 2,00,000 in Year 1

Platinum 1,000 500Customer Spends

> Rs. 2,00,000 in Year 1

Gold Nil100 (Year 2onwards)

Customer Spends

> Rs. 50,000 in Year 1

* Annual Fee can be adjusted against Reward Points

4.Loan Assessment

Loan assessment means to evaluate that To whom i.e. customer, we are providing loan and Is

he able to repay it or not. After analyzing the criteria standardised by the company and also which

is listed below company decide the amount which is to be provide to customers.

Loan Types:

Home loan

Personal Loan

Loan against PropertyAuto loan


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Agriculture Loan

Home Loan:

Home Loan

Criteria Salaried Individual ProfessionalsSelf Employed

Individuals

Min. work exp

(Yrs)2 (3 if current emp


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Min net income

(Rs.)15000pm 1.50 lacs pa

Min ~ Max age

(Yrs)

>24 ~ 24 ~


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Photograph

Proof of Residence:

Ration CardPassport

Latest Electricity Bill

Latest Telephone BillLatest Credit Card Bill.

Proof of Income:

Latest 3 salaries slip showing all deductions

IT ReturnsComputation of income

Balance Sheet and P/L A/c for the last 2 years certified by a C.A.

Bank Statement:

Last 6 months where salary/income is credited

Proof of Qualification:

Degree / Diploma - proof of professional qualification

Interest Rate:

Home loan amount Applicable rate of interest


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Up to Rs. 20 Lacks 11.00% p.a.

Above Rs. 20 Lacks 11.25% p.a.

Other terms & conditions:

The property should be located within 50 Km radius of nearest Branch/RAC. Properties under

HUF, Properties inherited under Hindu succession act, Godowns, Factories & Hospitals, CinemaHalls, Restaurants, Banquet Halls, and Schools will not be financed under the scheme. For

Purchase of Residential Plots within Municipal / Government approved layouts only Agricultural

land, commercial plots, properties under HUF, properties inherited under Hindu succession act,

plots under litigation and acquisition by Public authorities will not be financed under plot loan

scheme. Loan against property (LAP) will be offered only against fully constructed properties.

Personal Loan:

For Salaried Individual:


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Criteria Salaried Individual Normal

Interest rate as per

category

As per category grid

Min. work exp (yrs) 1

Min net income

(Rs. p.m.)15,000

Min ~ Max age > 21 & < superannuation at loan termination

Min ~ Max loan amt

(Rs.)

1- 10 lakes (1 lakes loan is only available for customers having

salary power relationship)

Min ~ Max Tenor

(months)

12 ~ 60 (For CAT C and D employees maximum tenor is 48

months)

Security / Collateral /

GuarantorOptional

Cat A & B - Last 3 months

Cat C & D - Last 6 mths

Phone landline / mobile / WLL mandatory

Processing fee 2% of loan amt

Eligibility calculationMax loan = (Net monthly income - obligations) x Multiplier.

Multiplier varies from 5 to 13 depending upon tenure.

Present residence => 6 months

if < 6 months, then it should be company provided, own house,

transfer case or else local guarantor mandatory.

Permanent Residence (PR) proof mandatory (a) For Bachelor /

spinster staying alone, FI of PR if RAC is present or Tele

verification. (b) For all loan cases > Rs. 3 lac


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CriteriaSalaried Individual Prof (MBA, Engineer, Architect,

CA, CS, ICWA)


categoryAs per category grid


Min net income

(Rs. p.m.)15,000

Min ~ Max age > 21 & < superannuation at loan termination

Min ~ Max loan amt

(Rs.)

1 - 15 lac (1 lakh loan is only available for customers having salary

power relationship)

Min ~ Max Tenor

(mths)12 ~ 60


GuarantorOptional

Cat A & B - Last 3 mths

Cat C & D - Last 6 mths

Phone

landline / mobile / WLL mandatory


Eligibility calculation

Max loan =(Net monthly income - obligations) x Multiplier.

Multiplier varies from 5 to 15 depending upon tenure.






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Degree / Diploma - proof of professional qualification`

Criteria Salaried Doctors


categoryDoctor in Cat B/C/D at a min of MBBS/BDS/ MS/MD = Cat B rate


Min net income(Rs. p.m.)

15,000 (gross)

Min ~ Max age >24 and 6 months


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Proof of QualificationDegree, Registration with respective state medical councils Or

Dentists Association.

For Self Employed Individual:

Criteria Self Employed Doctors


categoryCat A rate


Min net income

(Rs. p.m.)

Business has to be profitable for last 2 yrs with min gross

receipt of Rs. 2.4 lac p.a. for large RAC & Rs.1.8 lac p.a. for

smaller RAC

Min ~ Max age >24 and


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Max loan= 0.6 Times annual gross receipts or 6 times eligible

annual income. Eligible income= Avg of last two yrs' NP and

Dep less obligations.

Residence


if < 12 months, then it should be parents or own house.

Same as salary customer and 3rd Party Guarantor manadot

Spinster


Proof of QualificationDegree, Registration with respective state medical councils Or

Dentists Association.

CriteriaSelf Emp. Prof. (MBA, Engineer, Architect, CA, CS,

ICWA)


categoryAs per category grid


Min net income(Rs. p.m.)

Min. annual eligible income Rs. 1, 50,000 p.a. for larger locations& for others Rs. 1,00,000 p.a.



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summation of all credits and debits.

PhoneLandline/ mobile/ WLL at res. & off. If of own house, then off. &

res. can be same

Banking relationships Last 6 mths

Eligibility calculation Max loan= Eligible income x Multiplier of max 5. Eligible income=Avg of last two yrs' NP and Dep less obligations.

Residence


if < 12 months, then it should be parents or own house.Same as salary customer and 3rd Party Guarantor manadot

Spinster


Proof of Qualification Degree / Diploma - proof of professional qualification

Employment Proof

Shops & Establishments Act Certificate

SSI registration certificate

Sales Tax Certificate

Lease/rental agreement for the commercial property from

where the business is operated.

Any other proof in the form of

licenses/certificates/challans/bills, etc from a Government

agency.

Criteria Self Employed Normal (Indv. & Sole Prop)


category

As per category grid


Min net income

(Rs. p.m.)Min. annual eligible income of Rs. 2 lac



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Min ~ Max loan amt

(Rs.)1.25 lacs - 15 lac

Min ~ Max Tenor

(mths)12 ~ 48


Guarantor Optional

Banking relationships

Last 6 months. Average bank balance for past 6 months should be

greater than or equal to 1.5 times of proposed EMI. Average

monthly balance as of 1st, 10th and 30th of the month. Minimum

10 entries for large RACs and 5 entries for all other ACs/Branches

(where RAC is not present), in banking in each of the past 6

months. Entries in a month are to be counted as a summation of all

credits and debits.

`Phone

Landline/ mobile/ WLL at res. & Office. If own house, then office

& res. can be same

Eligibility calculationMax loan= Eligible income x Multiplier max 2.5. Eligible income=

Avg of last two yrs' NP and Dep less obligations.

Residence


if < 12 months, then it should be parents or own house.

Same as salary customer and 3rd Party Guarantor manadot

Spinster


Employment Proof

Business Continuity Proof of last 2 years, documents such as:

Shops & Establishments Act Certificate

SSI registration certificate

Sales Tax Certificate

Lease/rental agreement for the commercial property from where

the business is operated.

Any other proof in the form of licenses/certificates/challans/bills,

etc from a Government agency.

Documentation:

DOCUMENTS REQUIRED


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Proof of Identity,

Signature & AgePassport/ Voter's Card/ Driving License/ PAN card & Photograph.

Proof of Telephone

Bill

Latest bill of landline/ mobile/ WLL stating name of borrower or

address of borrower.

Proof of ResidenceRation Card/ Passport/ Latest Electricity Bill/ Latest Telephone Bill/

Latest Credit Card Bill.

Proof of Income

Latest salary slip showing alldeductions and Last 2 years

Form 16 along with current

dated salary certificate

IT Returns for the last 2 years and

Computation of income for the last 2

years certified by a CA, For Docs

only - Balance Sheet, Profit & Loss

Statement.

Bank Statement / Pass

Book where salary is

Credited

Cat A & B - Last 3 months,

Cat C & D - Last 6 monthsLast 6 months


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INTEREST RATE GRID

PERSONAL LOANS ROI (only Fixed)

Salaried - Cat A 16.00%

Salaried - Cat B 19.00%

Salaried - Cat C

22.50%

Salaried - Cat D23.50%

Doctors Self Employed16.00%

Self Employed

Professional (SEP)

19.00%

Self Employed Non

Professional

- Income > Rs.2 lacs up

to Rs.3 lacs

20.50%

- Income > Rs.3 lacs 19.50%

Salary Power

-Corporate Relationship

PSU

18.00%

Salary Power

-Corporate Relationship

Others

0.50% lower than new category wise rates

Priority Customers 0.25% lower than new category wise rates


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Power Salute Customers 17.00%

PL to existing HL

borrowersAt Mortgage Reference Rate - currently 14.25%

Self Employed Doctors& Salaried Doctors in

CAT-A company

14.00% (no Prompt Payment Discount offered)

Special offer for

customers of 50

companies

14.50% (no Prompt Payment Discount offered)

NOTE: The information given is indicative. Please refer to policy guidelines & circulars

for details.


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Loan against Property:

Criteria Salaried Individual

Work exp (Yrs) min 1 yr if total exp 2 or (3 if current emp 24 ~


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Criteria Professionals

Work exp (Yrs) min 3 if Doctor else 4

Min net income (Rs.) 1.00 lacs pa

Min ~ Max age (Yrs) >24 ~


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Criteria Self Employed Individuals

Work exp (Yrs) min 3

Min net income (Rs.) 1.00 lacs pa

Min ~ Max age (Yrs) >24 ~


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Documents required for Loan against property:

For Salaried Individual:

Proof of Identity, Signature

& Age

Passport/ Voter's Card/ Driving License/ PAN card &

Photograph.

Proof of ResidenceRation Card/ Passport/ Latest Electricity Bill/ Latest Telephone

Bill/ Latest Credit Card Bill.

Proof of Income Latest 3 salary slip showing all deductions

Bank Statement Last 6 months where salary/income is credited

Proof of Qualification N/A

For Professionals:


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& Age


Photograph.

Proof of Residence

Ration Card/ Passport/ Latest Electricity Bill/ Latest Telephone


Proof of IncomeIT Returns, Computation of income, Balance Sheet and P/L

A/c for the last 2 years certified by a C.A.


Proof of QualificationDegree / Diploma - proof of professional qualification

For Self Employed Individuals:


& Age


Photograph.

Proof of ResidenceRation Card/ Passport/ Latest Electricity Bill/ Latest Telephone


Proof of IncomeIT Returns, Computation of income, Balance Sheet and P/L A/c

for the last 2 years certified by a C.A.


Proof of QualificationN/A


38/87

Other terms & conditions:

The property should be located within 50 Km radius of nearest Branch/RAC. Properties under

HUF, Properties inherited under Hindu succession act, Godowns, Factories & Hospitals, Cinema

Halls, Restaurants, Banquet Halls, and Schools will not be financed under the scheme. ForPurchase of Residential Plots within Municipal / Government approved layouts only Agricultural

land, commercial plots, properties under HUF, properties inherited under Hindu succession act,

plots under litigation and acquisition by Public authorities will not be financed under plot loan

scheme. Loan against property (LAP) will be offered only against fully constructed properties.No LAP will be offered against plot of land

Auto Loan:

Criteria Salaried

AgeMin 21 years at sanction to Maximum 58 years at the time of

loan maturity

Loan amount Minimum Rs. 100,000

Tenure 1 - 7 yrs

LTV Up to 85% of On road price*

Income NormsGross Salary of Rs. 1 Lac p.a. for Cat A/B cars & Rs 2 Lacs p.a.

for Cat C/D cars


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Work-experience Minimum 2 years of total employment

Telephone Landline / WLL phone at Residence. In case no phone at Resi.Post-paid mobile connection with Resi. Add. Required.

Foreclosure

Foreclosure < 6 months - 10% on principal outstanding charged,

if > 6 months - 5% of principal outstanding,

No part prepayment allowed

Processing Fee

Minimum of Rs 2500 for CAT A cars, Rs. 3000 for Cat B & C

Cars and Rs 3500 for Cat D cars (plus upto 1% of the loan

amount at the discretion of the Branch Manager)

Eligibility calculation3 times of annual gross or 30 times of avg net salary of 3

months. EMI must not exceed 50% of net salary

Criteria Self-Employed


loan maturity


Tenure 1 - 7 yrs


Income Norms

Gross Income of Rs. 60,000 p.a. for Cat A/B cars & Rs 1 Lac

p.a. for Cat C/D cars (Gross Income : N.P after Tax &

Depreciation)


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Work-experience Minimum 3 years in business

TelephoneLandline / WLL phone at Residence. In case no phone at Resi.

Post-paid mobile connection with Resi. Add. Required.

Foreclosure

Foreclosure < 6 months - 10% on principal outstanding

charged, if > 6 months - 5% of principal outstanding,


Processing Fee




Eligibility calculation6 times Gross Income p.a. (Gross Income = Net Profit + 50% of

Depreciation for the last financial year.)

Criteria Partnership Firms


loan maturity for loan executing partner.


Tenure 1 - 7 yrs



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Income Norms

Gross Income of Rs. 60,000 p.a. for Cat A/B cars & Rs 1 Lac

p.a. for Cat C/D cars (Gross Income: N.P after Tax &

Depreciation). Min Turnover of Rs 4.5 Lacs


Telephone

Landline / WLL phone at Resi. & Office for loan executing

partner. In case no phone at Resi., post-paid mobile connection

with Resi. Address is required

Foreclosure




Processing Fee





6 times Gross Income p.a. (Gross Income = Share in Profit +

Salary + Interest on Capital + 50% of Depreciation for the last

financial year) (to the extent of his Share in Partnership)

Criteria Private & Public Ltd. Companies

Age

Min 21 years at sanction to Maximum 65 years at the time ofloan maturity for the loan executing director/authorized

signatory



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Tenure 1 - 5 yrs


Income NormsMin Turnover of Rs. 2 Crore and Minimum Net Profit of Rs 50Lacs. (No Cash Loss in the last 2 yrs)


Telephone

Landline / WLL phone at Resi. & Office for loan executing

director/authorized signatory. In case no phone at Resi., post-

paid mobile connection with Resi. Address is required

Foreclosure




Processing Fee




Eligibility calculation 6 times Avg. Net Profit of the Last 2 Years

Documents required:

For Salaried:


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Proof of IdentityPassport / Voters Card / Driving License with Photograph/

PAN card

Proof of Income

Latest salary slip showing all deductions AND Latest Form 16 /

Income Tax Return (Form 16 FYE March should be availableJune onwards)

Address Proof (of the

residing city)

Ration Card/Latest Electricity Bill/Latest Telephone

Bill/Passport/Latest Credit Card Bill/ Driving License

Signature VerificationPassport copy/ Driving License with Photograph/ Bankers

Verification

AdditionalDocumentation

NA

For Self-Employed:

Proof of IdentityPassport / Voters Card / Driving License with Photograph/

PAN card

Proof of Income Latest Income Tax Return and Computation of income


residing city)

Ration Card/Latest Electricity Bill/Latest Telephone

Bill/Passport/Latest Credit Card Bill/ Driving License

Signature VerificationPassport copy/ Driving License with Photograph/ Bankers

Verification

AdditionalDocumentation

Declaration from Proprietor

For Partnership Firms:


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Proof of Identity

Copy of Partnership Deed & the following documents required

for the loan executing partner: Passport / Voters Card / Driving

License with Photograph/ PAN card

Proof of IncomeAudited Balance Sheet, Profit & Loss Account for last 2 years

along with the latest 2 Income Tax Returns


residing city)

Telephone Bill/Electricity Bill/ Shop & Establishment Act

Certificate/ SSI Registered Certificate/ Sales Tax Certificate

Signature Verification

Bankers Verification

Additional

DocumentationAuthority letter signed by all partners

For Private & Public Ltd. Companies:

Proof of Identity

Copy of Memorandum & Articles of Association & the

following documents required for the loan executingdirector/authorized signatory. Passport / Voters Card / Driving

License with Photograph/ PAN card

Proof of Income Last 2 Years Audited Financials


residing city)

Telephone Bill/Electricity Bill/ Shop & Establishment Act

Certificate/SSI Registered Certificate/ Sales Tax

Certificate/PAN No.

Signature Verification Bankers Verification

Additional

Documentation

List of Directors, Share Holding pattern, Copy of Board

Resolution

On Road Price = Ex Showroom rate + Insurance + Road Tax + Registration

charges


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Interest Rate Grid

CAR

CATEGORYUpto 35 months 36 - 60 months > 60 84 months

CAT A 13.00% 13.00% 13.50%

CAT B 13.00% 12.75% 13.50%

CAT C 13.00% 12.75% 13.50%

CAT D 13.00% 12.50% 13.50%


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Agricultural Loan:

Financing farmers against pledge of warehouse or cold storage receipts:

Facility limit Ceiling of Rs. 5.0 lac per farmer

Nature of facility

Loan against the pledge of warehouse and/ or cold storage

receipts

Eligibility for farmers

Original depositors of the receipts. The borrower to undertake

that he is a farmer and also to provide a declaration to the effect

that he/she is not defaulter to any Bank/Financial Institution

Designated warehouse

CWC/SWC Warehouses

Private warehouses/Cold storages/Godowns with a minimum

storage capacity of 100 MT

Value of Loan Value of the loan = Value of commodity minus commodityspecific margin amount

Rate of InterestBPLR- 4.75%; at present 15.25 % p.a. payable with the

principal repayment.

Margin

Min 40%.

The branch should monitor the prices of the commodities on a

weekly basis by referring to the prices of the commodities as

mentioned in the local dailies. It should be ensured that the

margin at no point of time falls below 30% i.e. when the total

outstanding as a percentage of the market value of the security

exceeds 70%. In the eventuality of this happening, a margin call

will be issued. The branch will inform the borrower to bring in

the shortfall in the margin. In case, additional margin is not

brought in by borrower within 15 days, the Bank will have theright to dispose off the goods.

Valuation The value of the commodity as security shall be the lower of thefollowing:Value of goods as reflected in the warehouse receipt.

Value of the goods based on the average price prevailing in the

nearest mandi on the day previous to the date of disbursement.


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Price provided by the Commodity Business Group, Central

Office from time to time for various commodities

Tenure of the loan

The maximum tenure of each loan shall be 12 months. Branches

should take timely steps to keep the warehouse receipts valid

and insurance of the stocks financed for that period in placeduring the currency of the facility

Risk rating of the

individual

Rating of Individual According Rating Table which is given

below.

Insurance

The stocks pledged to the Bank should be insured adequately

with Bank clause. The insurance premium will have to be borne

by the borrower. The Branch should ensure that the warehouses

are insured against fire, etc.

SecurityUpto Rs. 200,000/-

Primary-: Pledge of warehouse receipts duly endorsed in Banksfavour

Over Rs. 200,000

Primary-: Pledge of warehouse receipts duly endorsed in Banks

favourCollateral-: Third party Guarantee

Guarantee for limits

upto Rs. 200,000/-

--NIL

Guarantorsrequirements for loans

above Rs. 200,000/-

A personal guarantee from a person who fulfils at least one ofthe following eligibility criteria:

Should own at least 3 acres of cultivable land

Employed in Government, Semi Government organization andworking in the cadre of class III and above or equivalent

designation in a reputed private sector undertaking.Running own business with assets equal to the amount of the

loan proposed.

Other Conditions Post dated cheques to be collected from borrowers

Pre-disbursementconditions

Stock of commodity brought to the designated warehouses forpledge has to be certified for quality and quantity by the M&C

agent. In case of CWC/SWC receipt, the same is already

available from the warehouse managerThe complete set of borrower wise loan documents should be

obtained by the branchThe warehouse manager should ensure to create pledge ofstocks in favour of Bank

The financing amount will be 60% of the market value of the

stocks approved for financing

The stocks placed in the warehouse should be insured

adequately with Bank clause


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Disbursement

The individual borrower availing this facility will have to open

an account at the concerned local branch (the account can be

opened under SBSPL category wherein the average balance

requirement is Rs. 1000/-). The amount will disbursed by

crediting the account of the borrower, at the concerned branch.

Security from

warehouse

owner/manager

Have to sign M&C agreement with Bank to buy or arrange forthe sale of the stock in case of default of farmer

Letter of guarantee/comfort letter (in absence of the letter of

guarantee)(Branch should try and obtain a letter of guarantee)

Selection of the

warehouse/cold

storage

The warehouse/cold storage has to have adequate facilities (likeaeration, pest control, loading and unloading facilities,

electricity, security, etc.) to allow for the storage of the produce

with minimum loss in quality and quantity.The branches should check the credentials of the warehouse

owner before financing against the receipts issued by that

warehouse.It is suggested that the branch heads should identify only those

warehouses in their area, based on the credit report, integrity

and track record of warehouse owner.

It is suggested that branches may give preference to the

warehouses accredited by National Commodity and Derivative

Exchange, India (NCDEX) who provide warehouse receipts to

the farmers in dematerialized form.

Monitoring

M&C agent has to monitor the security. The quality and

quantity report has to be sent to the branch on a monthly basis.

The branch officer may appoint an inspection agency to inspect

the warehouse/cold storage, monthly. The branch officer may

inspect the warehouse/cold storage, quarterly, for verification of

the security. The M&C agent should monitor the quantity and

quality of the additional stock brought in lieu of a margin call.

Repayment Bullet repayment along with interest on due date.


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Penal Interest 2% p.a. on overdue loan/unpaid interest

Pre-payment charges 2% (if loan is repaid within one month. Otherwise nil)

Processing fee .40% of the loan sanctioned

M&C agent

Roles and

responsibilities

The M&C agent acts as a monitoring agency on behalf of the

Bank. The M&C agent acts as an interface between the Bankand the farmers.

Sourcing of the business to the branch.

Supervision of the unloading and weighing of the produce.Overseeing the tagging, stacking and segregation of the produce

in the identified space. The security of the stocks should also be

verified.

Right identification of the warehouse chamber where thepledged stocks have to be stocked and proper stacking of the

produce.

Consolidation of the produce and right tagging borrower wisewith a sign clearly indicating the Banks lien on the goods.

Maintenance of a stock statement based on the borrower codes

and net weights of the commodities.To attest the quantity and quality of the produce, valuation of

the produce and record the same in the warehouse receipt.

To inform Bank in case of margin call stock being brought in.Allow the release of the goods only on receipt of a written

intimation from the branch that the goods can be releasedArranging for buyers/buy back of the stock in case of default by

the farmer

M&C Agent chargesNormally 1% of the loan amount. However, branches can pay

maximum 1.5% of the loan amount wherever required.

Event of default In the event of default of a borrower, M&C agent shouldarrange for buyers/buy back of the stock. The Bank shall be

entitled to sell the pledged goods either through the M&C agent/public auction/private sale/through any commodity exchange


50/87

and adjust the sale proceeds against the amount outstanding

from the borrower. The price at which the pledged commodityis sold by the Bank is final and binding on the borrower.

However, in case the proceeds from such a sale are not

sufficient to satisfy the amount outstanding in full, the Bank will

be entitled to recover the shortfall from borrower.

Documents to be

executed by the

borrower

DP Note

DP delivery letter

Letter of waiverPledge Agreement: To be finalized in consultation with the Law

Department

Warehouse receipt (to be duly endorsed in favour of the Bank)

Documents to be

executed by the M&Cagent

Management and Collection Agreement: To be finalized in

consultation with the Law Department

Registers to be

maintained

Registers to be maintained by the branch:Loan application cum disposal register

Price, Stock and Margin recovery register

Insurance due date register

Branches would keep the above mentioned registers in physicalform or in a excel sheet in the system. The records should be

updated at the stipulated time and hard copies be preserved in a

separate file.Registers to be filled in by M&C agent:

Stock and margin register


51/87

Documentation:

Following documents should be obtained from borrower.

1Application form

2D.P.Note3D.P.Note delivery cum waiver letter

4Letter of Pledge

5Proof of agricultural activity (copy of land records, land revenue tax receipts etc.)6Declaration of ownership of the ornaments pledged

2Authorisation from the borrower for disclosure of information

The following document should be obtained from the appraiser

Certificate of valuation

Penal interest:

2% p.a. on overdue amount.

Processing & Appraiser fees:

0.25%+ST subject to maximum of Rs. 500+ST

BH has discretion to waive/ reduce if RoI is increased by 0.30%

No fee up to Rs.25,000/- loan


52/87

0.25% subject to maximum of Rs.500/-

Insurance:

Gold ornaments pledged to the Bank will be covered under the Master policy of theft and burglary.Banks indemnity policy will be obtained by the Bank centrally.

Disbursement:

Up to Rs.50,000/- in Cash.

Above Rs.50,000/- by PO.

Sanctioning Authority:

The sanctioning authority would be the Branch Head in the category of Manager/AVP/VP. The

branches should send the Control Returns on monthly basis to the Zonal Office for noting and

review. The VP (Credit & Forex) will be the reviewing authority at the Zonal Office.

Repayment:

Repayment period not exceed 18 months. The facility will be renewable at the request of theborrower after 18 months. The repayment schedule should be aligned with the crop harvest cycle.

Release of the gold ornaments on repayment by borrowerThe branch should release the security only if the full amount of interest, other charges and

principal has been repaid.

The borrower should present the signed receipt issued to him/her by the Bank while takingdelivery of the ornaments. The borrower(s) needs to sign the receipt acknowledging that the gold

ornaments have been received by him/her in good order and condition.

The signed receipts should be arranged as per the date of closure of loan account and shown to theinspecting authority at the time of the inspection.

Guidelines for the release of the pledged jewellery on liquidation of the loan on death of the

borrower will be issued later in consultation with the Law Department.

Right of Disposal of Security:

In case of default, Bank has the right to dispose the gold ornaments for satisfaction of the loan by

way of public auction or private treaty and proceed against the borrower.


53/87

Direct Financing to Farmers for Cattle Loans through Dairies/ Cooperatives:

Other Terms and Conditions:

In case guarantee is not available from Village Dairy cooperative, a guarantee from a person withinthe group or a guarantee from a third person acceptable to the Bank should be obtained. The

personal guarantee has to be obtained from a guarantor fulfilling at least one of the following

eligibility criteria:

should own his/her own tractor/own at least 2 acres of irrigated land/4 acres of dry land employedin government, semi government employment in the category of Scale III and above or working

with any reputed private sector undertakings at a respectable positions Running own business and

having assets with a market value equal to the amount of the loan.The Branch will reserve the

right to reject any loan application based on its own appraisal. The Branch sanctions will bereviewed by the Vice President (Credit & Forex) at the zonal office in the form of monthly control

returns.In case the Borrower stops supplying milk to the Union the entire loan amount shall be repayable

in lump sum/ recalled. Bank reserves the right to conduct inspections of the cattle/ shed

constructed on a periodic basis without any prior notice. The Milk Union will arrange to provide

monthly MIS regarding the continuity and regularity of milk supply by the borrower.


54/87

5.Recommendations & Suggestions

Facts & Findings

1Working Capital of the Bank is decreasing year by year which is not a good sign for the bank.

2In the year 2007-08 Operating Margin was 23.25, in the year 2006-07 it was 21.84. Thisshows that Operating profit margin is increasing which is good for the bank.

3In the year 2007-08 Gross Profit Margin was 21.44, in the year 2006-07 it was 19.79. This

shows that Gross profit margin is increasing which is good for the bank.

4Net profit margin is increasing year by year.5Debt / Equity is decreasing.

6Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficientlyutilized.

7Current Ratio is increasing which is showing a sound financial position of the company.

8Quick Ratio of the bank is increasing it shows that position of the bank is improving.9Sales of the Bank is increasing year by year in the year 2007-08 it was 70005.31 in the same

year Total Income and Net profit Before tax also increases respectively.


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10Both Saving Bank deposits and current bank deposits is increasing year by year which is a

good sign for the bank.

11This is a positive trend in Retail assets and Non Retail advances.12Earning per share is increasing which shows that an investor can invest in AXIS Bank to get

good profits.

Trading Profit

69

314263

0

200

400

Profit

Profit 69 314 263

200-01 2001-02 2002-03

INCREASING REACH

Month March March March


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01 02 03

CentersCovered

48 63 80

Branche

s+Extn.Counters

101 139 192

ATMs 303 491 822

Increasing Reach

0 0 0 048 101303

63 139491

80 192

822

0

1000Month

1-Mar

2-Mar

3-MarMonth0 0 0 0

1-Mar 48 101 303

1 2 3 4 5

RISING PROFITABILITY

Year 200-01 2001-02 2002-03

Net Profit 86 134 192

OperatingRevanues

261 615 733


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Rising Profitability

86 134192261

615733

0

200400

600

800

200-01 2001-02 2002-03

Net Profit

Operating

Revanues

FEE INCOMES

Year 200-01 2001-02 2002-03

Fee

Incomes(Cr.)

86 98 144

Fee Incomes

86 98

144

0

50

100

150

200

200-01 2001-02 2002-03

Fee Incomes(Cr.)

ATM CHANNEL MIGRATION

Month March01

March02

March

03


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Cardbase(Lakhs)

2.9 5.6 12.2

Card

withdrawls(Crore)

70 177 419

No.ofTransactions(Lakhs)

8 15.9 35.3

ATM CHANNEL MIGRATION

2.9 5.6 12.2

70

177

419

8 15.935.3

0

50

100

150

200

250

300

350

400450

3/1/04 3/2/04 3/3/04

Cardbase

(Lakhs)

Card withdrawls

(Crore)

No.ofTransactions

(Lakhs)

INTELLECTUAL CAPITAL

Years Profit

Below 30 years 28%

30-40 Years 11%

40-50 Years 2%


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Above 50 Years 59%

Intellectual Capital

28%

11%2%

59%

Below 30 years

30-40 Years

40-50 Years

Above 50 Years

6.RESEACH METHODOLOGY

Search as a scientific and systematic search for pertinent information on a specific topic. In fact

research is an art of scientific investigation.

Some people consider research as a movement, a movement from known to unknown; it is actually

a voyage of discovery.

This inquisitiveness is the mother of all knowledge and the method, which man employs for

obtaining the knowledge of whatever the unknown can be termed as research.

Definition of Research

according to Clifford woody" research comprises defining and redefining problems, formulating

hypothesis or suggested solution, collecting organizing and evaluating data , making deduction and

reaching conclusion and at last carefully testing the conclusion to determine weather they fit the

formulating hypothesis".

according to D. Slesinger and M. Stephenson" the manipulation of things , concepts or symbols for

the purpose of generalizing to extend, correct or verify knowledge, whether that knowledge aids in

construction of theory or in the practice of an art".


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Research is thus an original contribution to the existing stock of knowledge making for its

advancement.

Research objective

1.To recruit the Quality persons as insurance advisor.

2.To develop awareness about the ICICI Prudential products.

3.To develop a competency of the ICICI Prudential

4.Universe: Finite population of customers walk in at the branch premises.

5.Sampling Size: 150 customers

6.Sampling technique used: Random sampling because the universe is large and each element

have equal oppurtunity of being choosen and is done randomly.

7.Research Design: The research design was in the manner to cater the question regarding the

customer awareness about the various policies given by the advisors.

Data collection

Research was done with the help of collection. There were two method of collecting the

information:-

1.Primary

2.Secondary

Primary Secondary

1 Questionnaire 2 Magazine

3 Personal

Interaction

4 Internet

5 Telephone Calls 6 Organization

Manual

7 Survey


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Sample SizeAs the target market is already defined, the database that was already with the company

was used for data collection exercise. Sample size was 213.

Data was collected by primary sources through questionnaire by taking personal and

telephonic interviews. 80% schedule filled through personal interviews and rest 20% through

telephonic interviews.

Sample Area

C-Scheme, Jaipur

LIMITATIONS OF THE STUDY

1As the movement throughout the city is not possible due to certain constraints so the

movement was quite restricted.

2People are not ready to go for training. As the training period is of 17 days and it involves

full day, so it becomes difficult for them to leave their offices or shops for such a long

time.

3The compulsion of selling 12 policies in a year also restricts them from becoming

advisors. If they do not fulfill this target, then their license is cancelled after a year.

4Lack of trust on any company of Private Sector.

5Lack of knowledge about the products of ICICI Prudential and their total and blind faith

on LIC.

6Sometimes, fresh graduates want to become advisors but the company denies making

them an advisor as they are very fickle-minded and also unreliable.


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7There is a problem in targeting Chartered Accountants. ICAI, which is the governing

body of Chartered Accountants, does not allow them to become advisors. However,

now they have permitted some CAs to become advisors, but these are only those ones

who are doing jobs somewhere and not allowed the ones who are doing their practice.

So, still this decision is very dicey.

8Sometimes, even those people want to become advisors for the company who are not a

localite but then the major problem that they face is that they have got no natural

market, so they are very susceptible about their performance and whether they will be

able to generate business for the company or not, so they avoid to take up this

challenge.

9It was a great problem to get appointments from people in the month of March as most of

them were busy in filing their returns.

10Some people ask about comparative analysis with LIC.

Documentation according RBI KYC (Know Your Costumers) Guideline:

Mentioned below is the list of documents to be submitted with the completed duly signed AccountOpening Form:

Basic Common Documentation:

1Proof of Identity: PAN Card, Voter Id Card, Passport, Driving License

2Proof of Address: Latest Telephone Bill or Electricity Bill

Public or Private Limited Companies:

1Certificate of Incorporation and Commencement of Business

2Memorandum and Articles of Association3Board resolution authorising the opening and operation of the account

4PAN or GIR No. or completed Form 60


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5List of Directors with residential addresses

Partnership Firms:

1Partnership Deed and Registration Certificate2Shop and Establishment Certificate

3Letter from partners approving the persons concerned to open and operate the account

Proprietorship Concerns:

1Certificate from State Govt or Statutory Body or Trade License or Sales Tax2Certificate or Shop and Establishment Certificate

3Letter of proprietorship, duly signed by the proprietor in his or her

4individual capacity (with a rubber stamp) Hindu Undivided Family5Letter of HUF duly signed by Karta and all Co-parceners

6PAN or GIR No. or completed Form 60, 61.7Names of Karta and Co-parceners with residential addresses

8Latest passport-size photographs of all the authorized signatories

Trusts:

1Copy of the trust deed2Copy of the registration certificate

3Copy of the resolution by the trustees authorising the members concerned to open and operate the

account4List of Trustees with residential addresses

5Photographs of the members operating the account Associations or Clubs

6Bye-laws of the association or club7Certificate of Registration

8Copy of the resolution by the Board authorising the members concerned to open and operate the

account

9Photographs of the members operating the account


64/87

Interest Rates:

Saving Account Deposit Interest Rate - 3.5%

Rates Effective from: Thursday, August 21, 2008

Period Interest Rates On Domestic Deposits

Deposits Interest Rate on

Deposits Below

Rs 15 lakhs (%)

Interest Rate on

Deposit 15 to 50

Lakhs (%)

Interest Rate on

Deposit 50

lakhs to 1 crore

(%)


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7 days to 14 days No Qute 1 1

15 days to 29 days 2.50 2.50 2.50

30 days to 45 days 3 3 3

46 days to 60 days 3.50 3.50 3.50

61days to less than 3

months4 4 4

3 months to less than 4

months4.50 4.50 4.50


months4.50 4.50 4.50


months

66 6

9 months to less than 1year 6.5 6.50 6.50

1 year to less than 2

Years7.30 7.30 7.30

2 years to less than 3

years7.60 7.60 7.60

3 Years to less than

5years

7.25 7.25 7.25

5 Years upto 10 years 7.257.25 7.25

Financial Performance:

1Profit after tax up 69% to Rs. 1,815.36 crores.


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2Net Interest Income up 43% to Rs. 3,686.21 crores.

3Other Income up 61% to Rs. 2,896.88crores.

4Fee Income up 64% to Rs. 2,447.35 crores5Deposits up 34% to Rs. 1, 17,374 crores.

6Demand Deposits up 37% to Rs. 50644 Crores.

7Advances up 61.79% to Rs. 81,557 crores.8Retail Assets up 18% to Rs 16,052 crores.

9Network of branches and extension counters increased from 827.

10Total number of ATMs 3595.11Net NPA ratio as a percentage of net customer assets down to 0.35% 0.36% from 0.36%.

12Earning per share (Basic) increased from Rs. 31.31 to Rs 50.27.

13Proposed Dividend up from 45% to 60%.

14Capital Adequacy Ratio stood at 13.69% as against the minimum regulatory norm of 9.26%%.

BUSINESS : HIGHLIGHTS


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1. Profit after tax up 43% to Rs 192.18 crore

2. Net interest income up 62% to Rs 322.40 crore.

3. Net interest margin increased from 1.68% to 2.09 %

4. Fee income up 47% to Rs 143.77 crore

5. Return on average assets up from 1.13% to 1.17 %

6. Deposits up 38% to Rs 16, 964.72 crores

7. Demand deposits up 93% to Rs 3,908.78 crores

8. Share of demand deposits up from 16.50 % to 23.04%

9. Advance up 34% to Rs 7,179.92 crore

10. Retail assets up 354% to Rs 1,099.94 crore

11. Network of branches and extension counters increase from 139 to 192

12. Total No. of ATMs went up from 491 to 822

13. No. of account up 48 % to 16,48,223

14. Net NPA ratio as percentage of customer assets down to 1.92% from 2.67%

15. Earning per share(diluted) increased from Rs 9.31 to Rs 9.97

16. Dividend up from 20%to 22%

17. Capital adequacy ratio increased from 10.65% to 10.90%

TRADING PROFITS

Year 200-01 2001-02 2002-03

Profit 69 314 263


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INTELLECTUAL PROFILE

Qualification Percentage

CAICWA/CS/CFAS 6%

MBAs 25%

ENGINEERS/TECHNICAL

10%

BANKING PROF. 34%

OTHERS 25%

Intellectual Profile

6%

25%

10%34%

25%

CAICWA/CS/CFAS

MBAs

ENGINEERS/TECHNI

CAL

BANKING PROF.

OTHERS

Shareholders


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Serial no. Name of shareholders % of paid up capital

1. Administrator of the specified undertaking of the

United trust of India (AXIS 1) 33.56%

2. Life insurance Corporation of India 13.54%

3. General insurance corporation and its subsidiaries 7.64%

4. Overseas investors/OCBs/NRIs 28.12%

5. Other Indian financial institAXISons/mutual funds/banks5.01%

6. Others 12.12%

Total 100%


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SHAREHOLDING

Companies Percentage

AXIS-I 33.56LIC 13.54

CDA 20.12

CitiCorp 3.83

Chrys Capital 3.83

Others 25.12

Shareholding

UTI-I

33%

LIC

14%CDA

20%

CitiCorp

4%

Chrys Capital

4%

Others

25% UTI-I

LIC

CDACitiCorp

Chrys Capital

Others


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Corporate Philosophy

AXIS bank as an organization has been built on the principles of professionalism, ethics and

financial expertise. It is AXIS banks firm belief that its existence and development are closely

interlinked with its ability to serve both retail and corporate clients well. Over the years, this belief

has evolved into its corporate philosophy of growth, innovation and stability.

Profitable growth is a key aspect of AXIS banks philosophy. AXIS bank has diversified into a

wide range of financial services and affiliated, aims to provide the benefits of universal banking to

its corporate and retail clients and its investors.

AXIS banks constantly endeavor to create products that best most the specific needs of its clients

and investors. In addition, AXIS bank also seeks to deliver these products effectively and

efficiently. It is therefore, sets for itself high standards of services and constantly strives to

improve upon them. The goal is to insure that dealing with AXIS bank is safe, simple and efficient.

AXIS bank values the trust that has been reposed in its financial expertise, both by its clients and

its investors. In all of AXIS banks investment offering, safety of investment is of paramount

importance. Therefore, AXIS bank attempts to pursue growth and innovations without

compromising on its stability.


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7.CONCLUSION

The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to

become a multinational bank. The Bank was successful in establishing a new identity in the

market in a short span of time. The Bank once again met with considerable success over the past

year and achieved all its key objectives.The Bank has developed a branch network which is built on customer-convenience and

service, helping it particularly in the acquisition of low-cost retail deposits, retail assets, lending toagriculture, SME and mid-corporate and facilitating the cross-selling of third-party products.


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STRENGTHS

The strengths are:

1AXIS Bank is the third largest player in the insurance industry in

India

2It is the largest home loan financing institution in India

3AXIS Bank is a 70 years old company (founded in UK)

4AXIS Bank enjoys the highest AAA credit rating, which ensures

highest safety of money

5Mutual Fund

6Personal Loan

WEAKNESSES

The weaknesses are:

Some customers are not satisfied with the service of AXIS

Bank


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Only 48 branches all over India

High insurance-period duration

High premium

Low awareness of AXIS Bank in rural areas

OPPORTUNITY

The opportunities are:

1Huge opportunity in insurance market

2Better products as compared to other industries

3Due to increase in literacy rates, literate people prefer AXIS Bank

4AXIS Bank gives opportunity to other businesses to grow in the

market

THREATS

The threats are:

1Tough competition from LIC, ICICI, BAJAJ ALLIANCE, and

BIRLA SUN LIFE

2Due to low premium, rural markets prefer LIC

3Threat for AXIS Bank because over 12 new companies are entering

the market

4Currently, AXIS Bank is the 3rd player in the market, and the major


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threat is to sustain that position in the face of competition

5

SURVEY FOR AWARENESS OF LIFE INSURANCE

RESEARCH METHODOLOGY

The technique of finding facts from raw data is known as sampling.

SAMPLING:

Sampling is simply the process of learning about the population on the

basis of the sample drawn for it. Under this method, small group of the

universe is taken as the representative of the whole mass and the results

are drawn. It is a method to make social investigation practicable and

easy.

SAMPLE:

A static sample is a miniature picture or cross section of an entire group

or an aggregate from which the sample is taken. A sample is the

reflection of the universe.


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I have taken a total of 300 samples from the Jaipur population.

CLUSTER SAMPLING

Under this method, the total population is divided into some recognizable

sub-division which are termed as clusters and a simple random selection

of these clusters is made and then the survey of each and every unit in the

selected cluster is done.

PRINCIPLE OF CLUSTER SAMPLING

The principles that are basic to cluster sampling are:

1Clusters should be drawn from a sample which is in tune with the cost and

other limitations of the survey

2The number of sampling unit in each cluster should be approximately same

Details about cluster sampling from the project:

Age No. of Samples

25-35 100

35-45 100

45-55 100

55 & above 100

AREA OF SURVEY


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Gopal pura Mod, Vasundra colony, Tonk patak, Adaresh colony, Ajmery

Get, Johari Bazar, Bapu-bazar, Chada rasta,Etc.

CONTENTS OF SURVEY

Awareness in Different Age Group

Group No. of Samples

25-35 100

35-45 100

45-55 100

55 & above 100

Purpose of Insurance

Group No. of Samples


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Businessmen 100

Government employees 50

Private employees 50

Degree of Awareness in Different Gender of Society

Male 100

Female 50

8.Questionnaire

QUESTIONNAIRE ANALYSIS AND INTERPRETATION

Q1. What is your age group?


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According to the survey, maximum numbers of people belong to the age group of 18-25 years. So

we can say that most of the respondents may be the priority customers.

Q2. What is your Occupation?


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distribution of responders according to their occupation

(a) Business, 8

(b) Salaried, 25

(c) Self Employed,

7

(d) others, 10

0

5

10

15

20

25

30

various occupations

no.ofrespnodersi

n

a

particular

occupati

on

category

The above graph shows the occupation of the sample respondents.50% of the respondents belong

to the category of salaried employees.16% of the respondents are into Business.

14% of the responds are self employed and the rest 20% into other occupation.


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Q3. Under which range your Household Income falls?

household income rang

(a) < 2 lakhs

4%

(b) 2-5 lakhs

30%

(c) 5-10 lakhs

38%

(d) > 10lakhs

28%


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The graph above depicts the household income range of the respondents. The income range of the

maximum respondents lie in the 5-10 lakhs category whereas only 4% i.e. only 2 respondents

income falls in the category of < 2 lakhs.


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Age Group 18-25 years

i) Occupation

distr ibut io n of occupat ion fo r the age category

2

1 4

4

7

0

2

4

6

81 0

1 2

1 4

1 6

(a ) B us ine ss (b ) S ala ried (c ) S elf E m p lo y ed (d) ot h e rs

occupat ions av ia l

no.

ofresponserso

fage

paritcular

18-25

yrs

ofage

for

particular

occupa

tion


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In this age group, maximum no. of the respondents are salaried employees.

Out of the total sample population, 7 respondents out of 27 are neither into job, nor business. They

have either invested into the share or commodity markets or they are students.

Out of 27, 4 respondents are self employed i.e. they have joined their family business.

Remaining 2 respondents out of 27 in this age group are into business.


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proportions of responders income level for the age group 18-25 yrs

(a) < 2 lakhs

7%

(b) 2-5 lakhs

41%(c) 5-10 lakhs

37%

(d) > 10lakhs

15%

The above graph shows the income level of the respondents in the age group of 18-25 years.

In this age group, maximum no. of respondents has an income in the range of 2-5 lakhs.

10 of out of 27 respondents in this age group has an income range between 5-10 lakhs.

Around 20% of this age group has an income above 10 lakhs and the remaining 10% are below 2

lakhs


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Distribution of Income for the Age group 25-35 yrs

0%

27%

37%

36%

10 Lacs

Out of the sample population, 11 respondents are in the age group of 25-35 years.

37% of the total respondents in this age group have an annual income of 5-10 lakhs.

36% of the respondents i.e. 4 respondents annual income is above 10 lakhs.

The remaining 27% of the respondents i.e. 3 of them have an annual income between 2-5 lakhs.


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10. Bibliography/References

BooksDr. I.M. Pandey- Financial Management, Vikas Publication DelhiM.Y. Khan P.K. Jain- Financial Management, Tata Mc Graw Hill

Publishing company Limited, New Delhi

Websites www.axisbank.com

www.infinancials.com

www.google.com

www. axisbank.com/xmlapplication/aboutus/financials/images/

Annual -Report -2007.pdf