Comparative Study on Saving Accounts of Axis Bank

COMPARATIVE STUDY ON SAVING COMPARATIVE STUDY ON SAVING ACCOUNTS OF AXIS BANK VERSUS ACCOUNTS OF AXIS BANK VERSUS THE SBI AND DO THE CUSTOMER THE SBI AND DO THE CUSTOMER

PROFILING OF THE SAMEPROFILING OF THE SAME

Presented by:Presented by:

Anurag SinghAnurag Singh

(PGFB0909)(PGFB0909)

AXIS BANKAXIS BANK

Bank was the first new generation private sector bank to be established inBank was the first new generation private sector bank to be established in

India under the overall reform programme initiated by the Government ofIndia under the overall reform programme initiated by the Government of

India in 1991, under which nine new banking licenses were granted. The India in 1991, under which nine new banking licenses were granted. The Bank started its operations in 1994.Bank started its operations in 1994.

The Bank has a very wide network of more than 701 branch offices and The Bank has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a network of over 2854 ATMs Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.of the largest ATM networks in the country.

The Bank was promoted by Unit Trust of India, the largest mutual fund in The Bank was promoted by Unit Trust of India, the largest mutual fund in

India, holding 87% of the equity.India, holding 87% of the equity.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60% . public holding (other than promoters) at 57.60% .

International Presence International Presence

The Bank has five international offices - branches at The Bank has five international offices - branches at Singapore, Hong Kong and Dubai (at the DIFC) andSingapore, Hong Kong and Dubai (at the DIFC) and representative offices at representative offices at Shanghai and DubaiShanghai and Dubai, which focus on , which focus on corporate lending, trade finance, syndication, investment corporate lending, trade finance, syndication, investment banking, risk management and liability businesses. The total banking, risk management and liability businesses. The total assets under overseas operations were USD 3.10 billion as on assets under overseas operations were USD 3.10 billion as on 31st March 2010.31st March 2010.

State Bank of IndiaState Bank of India

The origin of the State Bank of India goes back to the first The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809).of Bengal (2 January 1809).

State Bank of India is the largest and one of the oldest State Bank of India is the largest and one of the oldest commercial bank in India, in existence for more than 200 commercial bank in India, in existence for more than 200 years. Indian central bank namely Reserve Bank of India years. Indian central bank namely Reserve Bank of India (RBI) is the major share holder of the bank with 59.7% stake.(RBI) is the major share holder of the bank with 59.7% stake.

Contd…Contd…

The bank is listed on the Bombay Stock Exchange, National Stock The bank is listed on the Bombay Stock Exchange, National Stock Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Exchange, Kolkata Stock Exchange, Chennai Stock Exchange and Ahmedabad Stock Ahmedabad Stock

The bank has a branch network of over 14,000 branches (including The bank has a branch network of over 14,000 branches (including subsidiaries). Apart from Indian network it also has a network of 73 subsidiaries). Apart from Indian network it also has a network of 73 overseas offices in 30 countries in all time zones, Correspondent overseas offices in 30 countries in all time zones, Correspondent relationship with 520 International banks in 123 countries. It accounts for relationship with 520 International banks in 123 countries. It accounts for 35% of the total foreign exchange in India. 35% of the total foreign exchange in India.

International Presence International Presence

The bank has 92 branches, agencies or offices in 32 countries. The bank has 92 branches, agencies or offices in 32 countries. It has branches of the parent in It has branches of the parent in Colombo, Dhaka, FrankfurtColombo, Dhaka, Frankfurt, , Hong Kong, Johannesburg, London and environs, LosHong Kong, Johannesburg, London and environs, Los Angeles, Male in the Maldives, Muscat, New York, OsakaAngeles, Male in the Maldives, Muscat, New York, Osaka, , Sydney, and TokyoSydney, and Tokyo. It has . It has offshoreoffshore banking units in the banking units in the Bahamas, Bahrain, and Singapore, and representative officesBahamas, Bahrain, and Singapore, and representative offices in Bhutan and Cape Town.in Bhutan and Cape Town.

TYPES OF SAVING ACCOUNTSTYPES OF SAVING ACCOUNTS

AXIS BANKAXIS BANK SBISBI

Easy access saving account Easy access saving account Saving Account Saving Account Smart Privilege Account Smart Privilege Account Saving Plus Account Saving Plus Account Trust/ NGO Saving Account Trust/ NGO Saving Account Senior Citizen Saving Senior Citizen Saving

AccountAccount Zero Balance Saving Account Zero Balance Saving Account NRI Bank Account NRI Bank Account Salary Account Salary Account Salary Account Salary Account Power Salute Power Salute Demat Account Demat Account Azaadi-No Frills AccountAzaadi-No Frills Account Non-Resident/ NRE Saving AccountNon-Resident/ NRE Saving Account Senior Privilege AccountSenior Privilege Account Pension Saving AccountPension Saving Account Prime Saving AccountPrime Saving Account Demat AccountDemat Account Priority AccountPriority Account

Comparative Analysis…Comparative Analysis…

The features of the accounts offered are more or less same like The features of the accounts offered are more or less same like overdraft facility, tele-banking service, multicity cheque overdraft facility, tele-banking service, multicity cheque facility etc.facility etc.

The major difference in the accounts of both the banks are that The major difference in the accounts of both the banks are that Axis bank provides PRIORITY BANKING service which SBI Axis bank provides PRIORITY BANKING service which SBI

do not provide to the account holders.do not provide to the account holders. Visibility of Axis bank is much less when compared to SBI.Visibility of Axis bank is much less when compared to SBI. Interests provided by both the banks are same for the saving Interests provided by both the banks are same for the saving

account holders. account holders.

About the research…About the research…

This research study is an attempt made for the comparative studyThis research study is an attempt made for the comparative studyon saving account offered by Axis Bank and State Bank of Indiaon saving account offered by Axis Bank and State Bank of Indiaand also to find out the factors which customers give preference inand also to find out the factors which customers give preference inopening an account.opening an account. The The OBJECTIVEOBJECTIVE of this research study is two fold. First of this research study is two fold. First objective of the study is:objective of the study is:

To do a comparative analysis of the saving accountsTo do a comparative analysis of the saving accounts offered by Axis Bank and State Bank of India.offered by Axis Bank and State Bank of India. To study the reason for choosing an account in a bank.To study the reason for choosing an account in a bank.

RESEARCH Methodology…RESEARCH Methodology…

Sample size : Sample size : 5050

Sampling Technique : Sampling Technique : Simple Random SamplingSimple Random Sampling

TechniqueTechnique

Data Gathering Tool : Data Gathering Tool : QuestionnaireQuestionnaire

ANALYSIS OF DATAANALYSIS OF DATA No. of respondents 50No. of respondents 50

Business menBusiness men 1616 32%32%

Service ClassService Class 1414 28%28%

StudentsStudents 1111 22%22%

Others Others 99 18%18%

Age SegregationAge Segregation Out of the 50 respondents, Out of the 50 respondents, AgeAge 28 respondents28 respondents(56%)(56%) were of the age group of 32-40 were of the age group of 32-40 22 respondents22 respondents(44%)(44%) were of the age group of 22-31 were of the age group of 22-31

Out of these respondents the maximum respondents who use Out of these respondents the maximum respondents who use internet baking were business men, next in the row is the Service internet baking were business men, next in the row is the Service class and students. class and students.

Student are the maximum users of the ATM facility with service Student are the maximum users of the ATM facility with service class following next.class following next.

Business men though use ATM but mostly they hold Credit cards Business men though use ATM but mostly they hold Credit cards and rely on it for their transaction.and rely on it for their transaction.

Most of the students were holding saving bank account, service Most of the students were holding saving bank account, service class holding salary account plus saving account and business men class holding salary account plus saving account and business men holding mostly current account but they do hold a saving account.holding mostly current account but they do hold a saving account.

IN WHICH BANK DO YOU HAVE IN WHICH BANK DO YOU HAVE THE ACCOUNT?THE ACCOUNT?

No. of respondent 50.No. of respondent 50.

SBI 28 SBI 28 Axis Bank 22Axis Bank 22 Other 10Other 10

28

22

10

0

5

10

15

20

25

30

SBI Axis Bank Any Other

What type of Account do the What type of Account do the customers prefer?customers prefer?


Saving Account 35Saving Account 35 Current Account 15Current Account 15

0

5

10

15

20

25

30

35

Saving Account Current Account

What is the frequency of What is the frequency of operation with your Bank?operation with your Bank?


Daily 14Daily 14 Four times in a week 5Four times in a week 5 Quarterly 2Quarterly 2 Twice in a week 6Twice in a week 6 Weekly 13Weekly 13 Monthly 10Monthly 10

0

2

4

6

8

10

12

14

Daily Four Times In a Week

Quarterly Twice in a Week

Weekly Monthly

You generally Access your AccountYou generally Access your Account


By visiting Bank 30By visiting Bank 30 Through internet banking 16Through internet banking 16 Using ATM Machine 25Using ATM Machine 25

42%

23%

35%

bank internet banking ATM

Are you Satisfied with the Are you Satisfied with the services of your bank?services of your bank?


Yes 38Yes 38

NO 12NO 12

0

5

10

15

20

25

30

35

40

YES NO

Which of the Banking facility you Which of the Banking facility you like the most?like the most?


365 Days Banking 15365 Days Banking 15 Phone Banking 8Phone Banking 8 Internet Banking 12Internet Banking 12 Door Step Banking 10Door Step Banking 10 Multicity Banking 5Multicity Banking 5

0

2

4

6

8

10

12

14

16

365 Days Banking Phone BankingInternet Banking Door step BankingMulticity Banking

Which is the most important Which is the most important factor for you for choosing an factor for you for choosing an account?account?


High interest rates 24High interest rates 24 Min. balance limit 10Min. balance limit 10 Attractive services 6Attractive services 6 Door step Banking 6Door step Banking 6 Free Add on Card 4Free Add on Card 4

48%

20%

12%

12%

8%

High interest rates Min. Balance limit

attractive services Door step Banking

Free Add on Card

What according to you can be the What according to you can be the reason for choosing a particular reason for choosing a particular saving account?saving account?

No. of respondent 50.No. of respondent 50. Average Quarterly Balance 17 Average Quarterly Balance 17 Services provided by the bank 14Services provided by the bank 14 Interest rates 19Interest rates 19

34%

28%

38%

Average Quarterly Balance

Services Provided by the bank

Interest Rates

Findings & Conclusion…Findings & Conclusion…

The study reveals that every person irrespective of gender The study reveals that every person irrespective of gender holds at least one type of saving account in the bank. holds at least one type of saving account in the bank.

The study also reveals that Interest Rate is the factor which the The study also reveals that Interest Rate is the factor which the customers give preference over other factors while opening customers give preference over other factors while opening their account.their account.

Average Quarterly Balance (AQB), and other services Average Quarterly Balance (AQB), and other services provided are also factors which are given importance while provided are also factors which are given importance while opening an account by the customers. opening an account by the customers.

Contd…Contd… Most of the customers whom I met were having account in Most of the customers whom I met were having account in public public

sector bank (64%) and only (36%) hold account in private banks.sector bank (64%) and only (36%) hold account in private banks.

Consumers having saving account were more in numbers (70%) than those Consumers having saving account were more in numbers (70%) than those having Current account (30%).having Current account (30%).

Generally the consumers visit or operate their account by Weekly (13) or Generally the consumers visit or operate their account by Weekly (13) or daily (14) and very few of them visit their bank quarterly (2) and four times in daily (14) and very few of them visit their bank quarterly (2) and four times in a week (5) or twice in a week (6) and only (10) of them operate monthly.a week (5) or twice in a week (6) and only (10) of them operate monthly.

Most of the consumers were operating their accounts by visiting bank (42%), Most of the consumers were operating their accounts by visiting bank (42%), and after that most of the consumers use their ATM card for operating their and after that most of the consumers use their ATM card for operating their account (35%). Internet banking is not so popular in India (23%).account (35%). Internet banking is not so popular in India (23%).

Most respondents whom I visited were satisfied with the services of their Most respondents whom I visited were satisfied with the services of their bank (76%) and few of them having some problems (24%).bank (76%) and few of them having some problems (24%).

Contd…Contd…

It was found out that 365 days banking is much preferable It was found out that 365 days banking is much preferable facility of the banks (30%) after that internet banking (24%), facility of the banks (30%) after that internet banking (24%), then door step banking (20%), then phone banking (16%) and then door step banking (20%), then phone banking (16%) and at last multi-city banking (10%).at last multi-city banking (10%).

High interest rate (48%) is the important factor for the High interest rate (48%) is the important factor for the consumer and minimum balance limit (20%) comes after that, consumer and minimum balance limit (20%) comes after that, door step banking and additional services have equal (12%) door step banking and additional services have equal (12%) importance for the consumers. importance for the consumers.

The most important factor which the consumers give The most important factor which the consumers give preference while choosing an account is the Average Quarterly preference while choosing an account is the Average Quarterly Balance (38%), then to the Interest rate by the banks (34%) Balance (38%), then to the Interest rate by the banks (34%) and at last to the Service provided(28%) the bank .and at last to the Service provided(28%) the bank .

RECOMMENDATION & SUGGESTIONRECOMMENDATION & SUGGESTION The company should try to improve its image among the customers The company should try to improve its image among the customers

in comparison to its nearer competitors ICICI, HDFC, ING Vysya in comparison to its nearer competitors ICICI, HDFC, ING Vysya etc.etc.

The company should diversify in small cities and rural areas, which The company should diversify in small cities and rural areas, which are highly potential.are highly potential.

Company’s promoter unit should use proper medium Company’s promoter unit should use proper medium of advertisement.of advertisement.

The most important thing is to obtain feedback from its customers The most important thing is to obtain feedback from its customers so that it can improve lacking areas. so that it can improve lacking areas.

Initial amount of operating the saving account should be reduced, Initial amount of operating the saving account should be reduced, so that the general public may be attracted towards it.so that the general public may be attracted towards it.

In the present scenario customers more importance to the services In the present scenario customers more importance to the services and hospitality, so proper attention should be given to these areas.and hospitality, so proper attention should be given to these areas.

Communication skill of the company official should be more sharp Communication skill of the company official should be more sharp and accurate, so that they can easily communicate with the and accurate, so that they can easily communicate with the customers and provide them full and accurate information.customers and provide them full and accurate information.

BIBLIOGRAPHYBIBLIOGRAPHY

1.1. WEBSITES:WEBSITES:

www.google.co.inwww.google.co.in

www.sbi.comwww.sbi.com

www.sbi.co.inwww.sbi.co.in

www.axisbank.comwww.axisbank.com

www.wikipedia.orgwww.wikipedia.org

2. 2. PRODUCT MANUAL- AXIS BANKPRODUCT MANUAL- AXIS BANK

3. 3. PRODUCT MANUAL- SBIPRODUCT MANUAL- SBI

QuestionnaireQuestionnaire a). Name of the Respondent : a). Name of the Respondent : b). Contact No. :b). Contact No. : c). E-Mail ID :c). E-Mail ID : d). Gender : d). Gender : Male / FemaleMale / Female OCCUPATIONOCCUPATION STUDENTSTUDENT BUSINESSBUSINESS SERVICESERVICE ANYOTHERANYOTHER

INCOME PER MONTHINCOME PER MONTH

DEPENDENTDEPENDENT

UP TO Rs.5000UP TO Rs.5000

Rs.6000-10,000Rs.6000-10,000

Rs.11,000-20,000Rs.11,000-20,000

MORE THAN Rs.20,000MORE THAN Rs.20,000 DO YOU HAVE AN ACCOUNT IN ANY BANK?DO YOU HAVE AN ACCOUNT IN ANY BANK?

YESYES

NONO

IF YES, THEN WHICH ACCOUNT DO IF YES, THEN WHICH ACCOUNT DO YOU HAVE?YOU HAVE?

- SAVING ACCOUNT - SAVING ACCOUNT

- CURRENT ACCOUNT- CURRENT ACCOUNT

IN WHICH BANK DO YOU HAVE THE IN WHICH BANK DO YOU HAVE THE ACCOUNT?ACCOUNT?

AXIS BANKAXIS BANK SBISBI ANY OTHERANY OTHER

WHAT IS THE FREQUENCY OF OPERATION WHAT IS THE FREQUENCY OF OPERATION WITH YOUR BANK?WITH YOUR BANK?

DAILYDAILY FOUR TIMES IN A WEEKFOUR TIMES IN A WEEK BI-WEEKLYBI-WEEKLY QUARTERLY QUARTERLY TWICE IN A WEEKTWICE IN A WEEK WEEKLYWEEKLY MONTHLYMONTHLY ANYOTHERANYOTHER

YOU GENERALLY ACCESS YOUR ACCOUNT?YOU GENERALLY ACCESS YOUR ACCOUNT?

BY VISITING BANKBY VISITING BANK THROUGH INTERNET BANKINGTHROUGH INTERNET BANKING USING ATM MACHINEUSING ATM MACHINE

ARE YOU SATISFIED WITH THE SERVICES OF YOUR ARE YOU SATISFIED WITH THE SERVICES OF YOUR BANK?BANK?

- YES- YES - NO- NO WHICH OF THE BANKING FACILITY YOU PREFER WHICH OF THE BANKING FACILITY YOU PREFER

MOST? MOST? 365 DAYS BANKING 365 DAYS BANKING PHONE BANKINGPHONE BANKING INTERNET BANKINGINTERNET BANKING DOOR STEP BANKINGDOOR STEP BANKING MULTICITY BANKINGMULTICITY BANKING ANY OTHERANY OTHER

WHICH IS THE MOST IMPORTANT FACTOR FOR WHICH IS THE MOST IMPORTANT FACTOR FOR

YOU FOR CHOOSING AN ACCOUNT?YOU FOR CHOOSING AN ACCOUNT? HIGH INTEREST RATEHIGH INTEREST RATE MIN. BALANCE LIMITMIN. BALANCE LIMIT ATTRACTIVE SERVICESATTRACTIVE SERVICES DOOR STEP BANKINGDOOR STEP BANKING FREE ADD ON CARDFREE ADD ON CARD ANY ADDITIONAL SERVICESANY ADDITIONAL SERVICES

WHAT ACCORDING TO YOU CAN BE THE REASON WHAT ACCORDING TO YOU CAN BE THE REASON FOR CHOOSIN A PARTICULAR SAVING ACCOUNT?FOR CHOOSIN A PARTICULAR SAVING ACCOUNT? AVERAGE QUARTERLY BALANCEAVERAGE QUARTERLY BALANCE SERVICES PROVIDED BY THE BANKSERVICES PROVIDED BY THE BANK INTEREST RATESINTEREST RATES

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Comparative Study on Saving Accounts of Axis Bank