A PROJECT REPORT

ON

BUSINESS BANKING IN AXIS BANK

SUBMITTED TOMAEER’s MIT SCHOOL OF BUSINESS

BY

MAYANK GOVILRoll No. 260256

Batch No. 26th Batch

IN PARTIAL FULFILLMENT OFPOST GRADUATE DIMPLOMA IN MANAGEMENT

(PGDM)

May-June, 2009-10

MAEER’s MIT SCHOOL OF BUSINESS PUNE

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Table of C O N T E N T S

Chapter No. Title Page No. Declaration from student 4Certificate from organization 5Certificate from Guide 6Acknowledgement 7List of Tables 8List of Graphs 9Executive summary 10

I Introduction 1.1 Background of the study 131.2 Theoretical background of the topic 141.3 Company profile 161.4 Statement of the problem 251.6 Need of the study 261.5 Scope of the study 271.6 Objectives of the study 28II Research Methodology 2.1 Research design 302.2 Primary data 302.2 Secondary data 302.3 Sample design 30

2.3.1 Population 31 2.3.2 Sample size 31 2.3.3 Sampling method 31

2.4 Method of data collection 31 2.4.2 Instrument for data collection 31 2.4.3 Drafting of a questionnaire 31 2.4.4 Testing of questionnaire / Pilot survey 31

2.5 Field work 322.6 Data- analysis techniques 332.7 Limitations 33

2

III Data Processing and Analysis 34IV Findings 63V Conclusions 70VI Recommendations 72

Bibliography 74Appendices / annexure 76

A Questionnaires 77B List of contacts 81

3

DECLARATION

I, Mr. MAYANK GOVIL

hereby declare that this project report is the record of authentic work carried out by me

during the period from MAY to JUNE and has not been submitted to any other

University or Institute for the award of any degree / diploma etc.

SignatureName of the student(Mayank Govil)

Date:

4

CERTIFICATE FROM THE COMPANY

5

CERTIFICATE

This is to certify that Mr. MAYANK GOVIL of MAEER’s MIT School of Business has

successfully completed the project work titled BUSINESS BANKING IN AXIS BANK

in partial fulfillment of requirement for the completion of PGDM course as prescribed by

the MAEER’s MIT School of Business.

This project report is the record of authentic work carried out by him during the period

from MAY to JUNE. He has worked under my guidance.

Signature Name: Prof. Vrinda Kirpekar Project Guide (Internal)

Date:

Counter signed by

Signature Name Director

Date:

6

ACKNOWLEDGEMENTS

“The successful completion of any work would be incomplete unless we mention the name of the person, who made it possible, whose guidance and encouragement motivate us every time to get the success.” I consider it a privilege to express through the pages of this report, a few words of gratitude and respect to those who guided and inspired in the completion of project. I am deeply indebted to Sh. Rakesh Langer (VP and Branch Manager) for giving me the opportunity to undergo my project in their esteemed branch and their timely suggestion and valued guidance. I also want to give my vote of thanks to the employees of Axis Bank, Karol Bagh. They constantly encouraged me and showed the right path from day first till the completion of my project.

In the last but not the least, my grateful appreciation is also extended to Prof. Vrinda Kirpekar (internal project guide) who also helped me in difficult situations.

Prof. Vrinda Kirpekar Mr. Deepak Khanna(Internal Guide) (Company Guide)

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List of Tables

Table No. Title Page No. 123456789

Financial IndicatorsIncome and expencesFinancial Data of ICICI BankFinancial Data of Axis BankFinancial Structure of HDFC BankPrice Performance Comparison Comparison of Financial Data(Kotak)Comparison of Financial Data(PNB)List of contacts

232344444849535881

8

List of Graphs

Graph No. Title Page No. 123456789101112

Investment PortfolioDisclosures of LoansCash Management servicesCurrent Account GrowthCapital MarketSavings Bank AccountShareholdingMost valuable bankCustomer satisfactionOpinion about Axis BankAwareness about product and servicesTime taken to solve the query on telephone

202238394041426566676869

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EXECUTIVE SUMMARY

Objectives of the study:

To understand and analyze the business strategies of Axis Bank.

To understand an organization culture.

To understand the need of import – export business and also to get the information about the documents which are required at the time of transaction of goods and services.

To know and how to handle the pressure of work in an organization.

Methodology Adopted:

The methodology adopted for the present study was focused on discussion, interview and close observation. Through the project is based upon study research, it was necessary to collect maximum information from the organization.

The information regarding to the products and services of an organization can be get through the employees and the customers. There are two types of data through which we collect the information and execute the results afterwards. They are as follows:

Primary Data Secondary Data

Primary Data: It is the information which has never been discovered or found out or available in the written format. This data or information is totally new and helps very effectively and efficiently to solve the unanswered questions. There are two methods to get primary data:

The questionnaire method The observation method.

Secondary Data: It is that information or data which has been already found out by someone or available in the written format. As the data is already published and known in the general, that’s it is known as Secondary Data. We can get this type of data from:

Newspapers Internet Radio Books Television And many more

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Major Findings: To understand the major findings related to the business banking of two different banks, we visited four different types of banks and compared with the AXIS BANK. The four banks are as follows:

1) ICICI BANK2) HDFC BANK3) KOTAK MAHINDRA BANK4) PUNJAB NATIONAL BANK

Findings are mentioned in detail in the “Data Analysis portion” of the project report. Information regarding business banking, hence analysis and final execution is mentioned as follows on the basis of respective points:

Most valuable bank Customer satisfaction Opinion about Axis Bank Awareness about product and services Time taken to solve the query on telephone

Recommendations: This project served as a great learning experience. It gave the opportunity to work in an organization and its unique culture. Through this experience, we not only learned to adjust to each other’s schedules and attitudes, but we also learned to be more responsible.

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Chapter – I

Introduction

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1.1 Background of the study

Mainly, we take the project in our hand to understand something new, something different and to enhance our knowledge. While working in an organization, we also learn about the organization culture, how to handle the work pressure and to search study, not only we manage our professional life and the personal life.

We also do the research to know and to find some unanswered questions. By the help of research study, we not only get rid of our queries and problems but also got some new and primary information or data which helps the researcher in the further study.

There should be some purpose, objective and scope of the study because these contents of the report remain the research alive otherwise the research would be of no use. Not only are these contents necessary in the research but topics such as data analysis, findings and conclusions makes the complete research and execute the final result in time.

It is necessary to study the background of the study so that we can understand how to work on the research study and what should be the content so that the researcher can achieve its goal and present the findings on time.

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1.2 Theoretical background of the topic

Banking: A bank is a financial institution that provides banking and other financial services. By the term bank is generally understood an institution that holds a banking license.

Business: A business is a legally recognized organization designed to provide goods and/or services to consumers. Businesses are predominant in capitalist economies, most being privately owned and formed to earn profit that will increase the wealth of its owners and grow the business itself. The owners and operators of a business have as one of their main objectives the receipt or generation of a financial return in exchange for work and acceptance of risk.

Business Banking: It is a bank that provides checking accounts, savings accounts, and money market accounts and that accepts time deposits. It raises funds by collecting deposits from businesses and consumers via checkable deposits, savings deposits, and time (or term) deposits. It makes loans to businesses and consumers. It also buys corporate bonds and government bonds. Its primary liabilities are deposits and primary assets are loans and bonds.

Business banking can also refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses, as opposed to normal individual members of the public.

The role of business banking:

Business banks engage in the following activities:

Processing of payments by way of telegraphic transfer, EFTPOS, internet banking.

Issuing bank drafts and bank cheques. Accepting money on term deposit.

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Lending money by overdraft, installment loan. Providing documentary and standby letter of credit, guarantees, performance

bonds, securities underwriting commitments and other forms of off balance sheet exposures.

Safekeeping of documents and other items in safe deposit boxes. Sale, distribution or brokerage, with or without advice, of insurance, unit trusts

and similar financial products as a “financial supermarket.” Traditionally, large commercial banks also underwrite bonds, and make markets

in currency, interest rates, and credit-related securities, but today large commercial banks usually have an investment bank arm that is involved in the mentioned activities.

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1.3 Company Profile

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd.

Headquarter:

Axis Bank 131, Maker Tower F, Cuffe Parade, Colaba Mumbai- 400002Maharashtra, India.India Phone: +91 22 6707 4407. Fax: +91 22 2218 6944URL- www.axisbank.com

Board of Directors:

The members of the Board are:

Shri. N.C. SinghalShri. J.R. VarmaDr. R.H. PatilSmt. Rama BijapurkarShri. R.B.L. VaishShri. M.V. SubbiahShri. Ramesh RamanathanShri. K. N. Prithviraj

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Our Mission and Values:

Our Mission

Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.

Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through o Providing quality service effectively and efficiently o "Smile, it enhances your face value" is a service quality stressed on o Periodic Customer Service Audits

Maximization of Stakeholder value Success through Teamwork, Integrity and People.

Facilities and Services:

Axis Bank its customers with all kinds of facilities that should be provided by a modern Bank. It deals with personalized as well as commercial banking. It has one of the largest spread ATM network in the country.

For Personal Sector:

Accounts Deposits Loans Cards Investments Insurance Payments Other services (Mobile refill, Locker, E-statement, IPO smart, online shopping).

For Corporate World:

Accounts Deposit Capital market Treasury Cash management services Government Business

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FINANCIAL SURVEY:

Axis Bank has announced its audited results for FY 2008-09, following the approval of its Board of Directors in a meeting held in Mumbai on 20th April 2009.

The Net Profit of the bank for the year was Rs 1,815.36 cr., a growth of 69.50% over the Net Profit of Rs 1,071.03 cr. during FY 2007-08.

The bank has ended FY 2008-09 with a capital adequacy ratio of 13.69%, and Net NPAs at 0.35% of Net Customer Assets.

The diluted EPS at Rs. 50.27 was 60.56% higher than in the previous year.

The Board of Directors has recommended a dividend of 100%.

RESULTS FOR Q4 FY 08-09:

Axis Bank has announced a Net Profit of Rs 581.45 cr. for the fourth quarter of the financial year 2008-09, a growth of 60.89% over the Net Profit of Rs 361.40 cr. for the fourth quarter of the financial year 2007-08.

The Net Interest Income for Q4 was Rs 1,032.60 cr., as compared to Rs 828.43 cr. during Q4 of the preceding year, a growth of 24.65% YOY.

The Net Interest Margin for Q4 was 3.37% as compared to 3.93% for Q4 of the preceding year.

The Net Advances have grown by 36.70% YOY. Further, the bank’s balance sheet size has grown by 34.81% YOY to Rs 147722.05 cr. as at end march 09 from Rs 109577.85 cr as at end march 08.

The Fee Income for Q4 was Rs 664.40 cr., as compared to Rs 468.21 cr. during Q4 of the preceding year, a growth of 41.90% YOY.

International Business:

The bank has five international offices at Singapore, Hong Kong and Dubai and representative offices in Shanghai and Dubai with focus on corporate lending, trade finance, syndication, investment banking, risk management and liability businesses. The total assets under overseas operations amounted to US$ 2.30 billion as at end march 09 as compared to US$ 1.66 billion as at end march 08, a growth of 39% YOY.

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Network Expansion:

The bank has a wide presence through its 835 branches & extension counters and 3,595 ATMs across 515 cities and towns. During the year the bank added 164 branches & extension counters and 831 ATMs. During Q4, it added 86 branches and 424 ATMs.

Net Interest Income (NII):

The bank registered a 25% YOY growth in Q4 in its NII of Rs 1,032.60 cr. as against Rs 828.43 cr. in Q4 of the preceding year. The industry-wide slowdown in the growth of CASA deposits and the steep rise in the cost of funds in the third quarter resulted in slower growth in NII.

Investment Portfolio:

The book value of the bank’s investment portfolio as of 31st march 2009 was Rs 46,330 cr. of which Rs 27,723 cr. was in government securities while Rs 18,607 cr. was in other investments including corporate bonds, equities, preference shares, mutual funds etc. 87% of the government securities have been classified in the bank’s HTM category while 98% of the corporate bond portfolio has been classified in the HFT and AFS categories. The distribution of the investment portfolio in the three categories as well as the modified duration in each category was as follows.

Category Percentage DurationHFT 0.75% 6.6 yearsAFS 42.35% 3.7 yearsHTM 56.90% 5 years

Percentage

HFTAFSHTM

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Percentage

TextilesAuto Units Trade

Disclosures on loan:

During the year, the bank restructured loans aggregating to Rs 996.17 cr., taking the cumulative total of loans restructured till 31st march 2009 to Rs. 1,625.87 cr. of which Rs 22.06 cr. comprise loans restructured a second time, in terms of the Reserve Bank of India dispensation.

This constitutes 1.74% of gross customer assets (GCA), as compared to 1.11% at the end of December 2008 and 0.92% at the end of March 2008.

The portfolio-wise breakup of loans restructured during the year is as follows:

Large/Mid-Corporate 48%SME 38%Capital Market 7%Agriculture 7%

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The sector-wise breakup of loans restructured during the year is as follows:

Textiles 20%Auto Ancillary Units 14%Trade 14%Real Estate 10%Others 42%

Textiles Auto Units Trade Real Estates0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

Percentage

Percentage

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Textiles

Auto Units

Trade

Real Estates

Others

0% 5% 10% 15% 20% 25% 30% 35% 40% 45%

Percentage

Percentage

Financial Indicators:

Particulars 31st Mar 09 31st Mar 08 GrowthDeposits 117374 87,626 34%Demand Deposits 50,644 40,027 27%Savings Bank 25,822 19,982 29%Current Accounts 24,822 20,045 24%Term Deposits 66,730 47,599 40%Net Advances 81,557 59,661 37%Large/Mid Corporate 41,211 29,026 42%SME Advances 16,077 11,536 39%Agricultural Advances 8,217 5,507 49%Retail Advances* 16,052 13,592 18%Investments 46,330 33,705 37%Balance Sheet Size 1,47,722 1,09,578 35%Net NPA 0.35% 0.36%Gross NPA 0.96% 0.72%Equity Capital 359.01 357.71 0.36%Net Worth 9,757 8,449 15%

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Capital Adequacy Ratio 13.69% 13.73%Tier – I 9.26% 10.17%Tier – II 4.43% 3.56%

*Retail Assets are defined as loans to individuals other than Agricultural Credit.*Rs. in cr.

Financial Performance FY 08-09 FY 07-08 GrowthNet Profit 1,815.36 1,071.03 69%EPS 50.27 31.31 61%

Income & ExpensesNet Interest Income 3,686.21 2,585.35 43%Other Income 2,896.88 1,795.49 61%Fee Income# 2,447.35 1,494.85 64%Trading Income 373.86 253.59 47%Miscellaneous Income 75.67 47.05 61% Operating Revenue 6,583.09 4,380.84 50%Core Op. Revenue* 6,209.23 4,127.25 50%Operating Expenses 2,858.21 2,154.92 33%Operating Profit 3,724.88 2,225.92 67%Core Op. Profit^ 3,351.02 1,972.33 70%

*Core Operating Revenue = Operating Revenue less Trading Income.

^ Core Operating Profit = Operating Profit less Trading Income.

# Includes customer foreign exchange earnings of R. 76.66 cr. for Q4 FY 08-09 and Rs 274.08 cr. for FY 08-09.

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1.4 Statement of the problem

In every working condition, there were some problems always occurred but finally we, anyhow, manage these unwanted problems. During summer training I also faced some real life problems but I managed all of them and reached to my target.

Due to engineering background, I was not aware of banking and their strategies. But as time passed, I leant a lot from the employees and it helped me to know more about banking.

To understand the organization culture, is quite a tough job. In the earlier time, it was difficult to get into the culture, but I really appreciated to the employees who supported me a lot.

In the market survey, I faced with the transportation problem. Again due to the co-operation of the employees, this problem also had been solved.

I was also very confused regarding to the contents of the project report. To solve this matter, my internal and external guide helped me a lot and advised me on regular basis how to work on the project report.

As I was a new trainee in the bank, almost every one motivated me and supported me towards my work. Whatever problem I faced there, the employees were always there.

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I also appreciated my family and one of my friends who encouraged me in my difficult times and enhanced my moral support time to time.

1.5 Need of the study

Bank is an institution which deals in money and credit. It accepts deposits from the public and grants loans and advances to those who are in need of funds for various purposes.

Banking is an activity which involves acceptance of deposits for the purpose of lending or investing. In addition to accepting deposits and lending funds, banking also involves providing various other services along with its main banking activity. These are mainly agency services, but include several general services as well.

Now-a-days, there are different types of banks which provide so many different services and facilities to the customer for their comfort and easiness. It can be for account opening, loans, deposits, investment, insurance or payments. Every bank has its own functions, policies and offers. So, to understand these things, it is necessary to understand the banking sector. This sector also includes trading of foreign exchange which plays a major part in the global market. In fact, Axis Bank Treasury is a leading player in the foreign exchange market. Using sophisticated technology and experienced dealers, they are able to provide the cheapest-to-deliver spot and forward prices to our clients. Foreign exchange is all about currency market and export import business.

This all comes in business banking in Axis bank.

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1.6 Scope of the study

Banking activities are considered to be the life blood of the national economy. Without banking services, trading and business activities cannot be carried on smoothly. Banks are the distributors and protectors of liquid capital which is of vital significance to a developing country. Efficient administration of the banking system helps in the economic growth of the nation. Banking is useful to trade and commerce. Banking activities are useful to trade and industry in the following ways.

a) Money deposited in a bank remains safe. Precious articles too can be kept in the safe custody of banks in lockers.

b) Banks provide credit facilities to their customers. Customers with bank accounts also enjoy better credit in the business world.

c) Banks encourage the habit of saving and thrift among people.They mobilize savings and invest them in productive activities.Thus, they help in increasing the rate of savings and investment in the country.

d) Banks provide a convenient and safe means of transferring money from one place to another and facilitate business dealings or transactions.

e) Banks collect and realize bills, cheques, interest and dividend warrants etc. on behalf of their customers.

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f) Foreign trade is facilitated considerably with the help of banks which receive and make payments, provide credit and deal in foreign exchange. They protect importers from the risk of loss on account of exchange rate fluctuations. They issue letter of credit and provide information on the credit worthiness of importers. They also act as referees of their customers.

g) Banks meet the financial needs of small-scale business units which are located in economically backward areas.

h) Farmers and artisans in rural areas can also avail of bank credit for financing their activities.

1.7 Objectives of the study

The objectives of the study are as follows:

To understand the terms bank and banking,

To distinguish between banks and money lenders,

To classify the various types of banks,

To explain the nature and scope of banking activities,

To enumerate the advantages of commercial banks,

To describe how suspension of banking activities will affect trade, commerce and industry.

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Chapter - II

Research Methodology

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2.1 RESEARCH DESIGN:

Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project - the samples or groups, measures, treatments or programs, and methods of assignment, work together to try to address the central research questions.

Research design investigates the process of designing in fields. It is related to Design methods in general or for particular disciplines. A primary interpretation of research design is that it is concerned with undertaking research into the design process. Secondary interpretations would refer to undertaking research within the process of design. The overall intention is to better understand and to improve the design process.

2.2 Primary Data:

The data which is collected by new research is known as primary data. There are four types of primary data. They are as follows:

Personal interview Close observation Survey conduction Group discussion

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Hence the primary data which is collected for the report is based on close observation and survey conduction. Survey conduction has been done through the questionnaire.

2.3 Secondary Data:

The data which is already exist or known is known as secondary data. We can collect secondary data through:

Internet Books Newspaper Magazines Television Radio and many more.

The secondary data for the report is taken mainly from the internet and books. They remained as the best source for the data collection for making the project report.

2.3 Sample Design:

Sampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of statistical inference.The sampling process comprises several stages:

• Defining the population of concern• Determining the sample size• Implementing the sampling plan• Sampling and data collecting• Reviewing the sampling process

2.3.1 Population:

A population can be defined as including all people or items with the characteristic one wish to understand. Because there is very rarely enough time or money to gather information from everyone or everything in a population, the goal becomes finding a representative sample (or subset) of that population.

Sometimes that which defines a population is obvious. For example, a manufacturer needs to decide whether a batch of material from production is of high enough quality to be released to the customer, or should be sentenced for scrap or rework due to poor quality. In this case, the batch is the population.

2.3.2 Sample Size:

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It means the total number of items which we take out for the sampling process. For an example, to fill up the questionnaire for a particular survey, we can fill it up by 100 customers or people.Therefore the sample size would be 100. Customers can be randomly selected or we can focus on a particular segment (say Hotels, Jewelers, General shops and many more).

Formulas, tables, and power function charts are well known approaches to determine sample size.

2.3.3 Sampling Method:

A variety of sampling methods can be employed, individually or in combination. Factors commonly influencing the choice between these designs include:

• Nature and quality of the frame• Availability of auxiliary information about units on the frame• Accuracy requirements and the need to measure accuracy• Whether detailed analysis of the sample is expected• Cost/operational concerns

2.4 Method of data collection:

Good data collection involves:• Following the defined sampling process• Keeping the data in time order• Noting comments and other contextual events• Recording non-responses

2.4.2 Instrument for data collection:

Data can be collected in various formats. They can be in the written format, pdf file or may be a presentation or they can be stored in somewhere like computer hard disk, pen drive and floppy or memory card. We can also collect data in the form of primary data and secondary data. Through questionnaire method or observation method, we can collect the information or data related to the primary method whereas newspaper, radio, television, magazines, pamphlets, internet and many more other things helps us to collect the information or data which comes under the light of secondary data. These both types of data help us to execute the final result and solved many of the problems.

2.4.3 Drafting of a questionnaire:

Introduction and screening questions. Asking sensitive screening questions. A checklist of do's and don'ts in the questionnaire format. Pre-coding questions and planning the physical layout.

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Pre-testing a questionnaire with a workshop in revising questionnaires and pre-testing to avoid future troubles.

2.4.4 Testing of questionnaire / Pilot survey:

A preliminary piece of research conducted before a complete survey to test the effectiveness of the research methodology.

A survey, usually on a small scale, carried out prior to the main survey, primarily to gain information to improve the efficiency of the main survey. For example, it may be used to test a questionnaire, to ascertain the time taken by field procedure or to determine the most effective size of sampling unit.

The term “exploratory survey” is also used, but in the rather more special circumstance when little is known about the material or domain under inquiry.

Pilot survey contains clear, detailed questions on learning, teaching quality, teaching strategy, assessment methods, and workload.

2.5 Field work:

Field work is a general descriptive term for the collection of raw data. The term is mainly used in the natural and social sciences studies, such as in biology, ecology, environmental science, geology, geography, geophysics, paleontology, archaeology, anthropology, ethnomusicology, linguistics, and sociology, although it is also used in other subjects, such as in auditing. It is more technically known to scientific methodologists as field research.

Fieldwork emphasizes the integration of academic and hands-on learning. It gives the student an opportunity to apply course work to practical situations. It also allows the student to explore career options, gain valuable skills, and launch a career.

2.6 Data- analysis techniques:

Data analysis is a process of gathering, modeling, and transforming data with the goal of highlighting useful information, suggesting conclusions, and supporting decision making. Data analysis has multiple facets and approaches, encompassing diverse techniques under a variety of names, in different business, science, and social science domains.

The initial data analysis uses descriptive statistics to answer the following four questions:

1. What is the quality of the data?2. What is the quality of the measurements?3. Did the implementation of the study fulfill the intentions of the research design?4. What are the characteristics of the data sample?

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2.7 Limitations:

There are some limitations comes in the research methodology. They are as follows:

Access to information Access to resources Time management Access to experts for editing, proofreading, and guidance Support from organizations and participants

It is easy to find and collect data; however, we also need to be aware of the limitations.

The data can be general and vague and may not really help companies with decision making.

The information and data may not be accurate. The source of the data must always be checked.

The data maybe old and out of date. The sample used to generate the secondary data maybe small. The company publishing the data may not be reputable.

Chapter - III

Data Processing and Analysis

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BUSINESS BANKING

Definition: Business banking is different from personal banking in that all of your company's financial requirements such as money transfers, BACS payments, salary payments, overdrafts etc are all looked after or can be looked after by a dedicated banking advisor.

In addition as a business banking customer your company will have access to a variety of different products that are not available to the domestic banking customer.

Benefits:

With Business Banking facilities you and your company have the freedom and the peace of mind to pay employees and suppliers on set dates and in a variety of different ways.

You can choose to pay your employees by BACS (Banks Automated Credit System) which involves sending payments to your employees accounts a set number of days in advance so that they reach their accounts on a set date or you can pay them yourself over the internet using a money transfer system.

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Business Banking also allows for the use of a company credit card subject to status and availability which can be useful for business trips. It also provides the company with the flexibility to move money between accounts at the touch of a button.

Company may also be eligible for a business loan which can be used for the purchase of office equipment, stock, materials or start-up costs. These loans can be paid back over an extended period of time with lower interest rates and the option to top up if necessary.

BUSINESS BANKING IN AXIS BANK

Business banking is very essential to maximize the profit for any bank. Taking care of it, Axis Bank provides so many services and products to their customers. The bank provides different type of accounts, loans, cards, insurance and many more. Some of the products and services are as follows:

Account Section:

Personal accounts:

Zero Balance Savings Account Krishi Savings Account Easy Access Savings Account Prime Savings Account Corporate Salary Account Women's Savings Account Senior Citizen's Account Defense Salary Account Trust/NGO Savings Account Azaadi - No Frills RFC(D) Account Pension Savings Account

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Corporate accounts:

Normal Current Account Business Advantage Account Business Classic Account Business Privilege Account Channel One Current Account Club 50 Business Current Account Current Accounts for Banks Current Account for Builders & Real Estate Capital Market Current Account Business Global Current Account

Services:

Mobile refill Locker Online shopping IPO smart Online trading E-Statement PAN assistance Locker NRI local post box Online donations

Financial growth due to these products and services:

The rapid growth in the bank’s core businesses are as follows:

Total net advances grow 37% YOY to Rs 81,557 cr. Total investments grow 37% YOY to Rs 46,330 cr. Total assets register a 35% YOY growth, rising to Rs 1,47,722 cr. Fees grow by 42% YOY, rising to Rs 664.40 cr. Share of demand deposits in total deposits at 43%.

Recent Awards:

Euro money 2008: Best Debt House in India. Finance Asia 2008: Best Bond House in India. Asia Money 2008: Best Domestic Debt House in India. IFR Asia: India Bond House 2008.

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Cash Management Services:

FY 08 FY 090

200000

400000

600000

800000

1000000

1200000

No. of clients

No. of clients

Year No. of clientsFY 08 746286FY 09 1083004

Capital adequacy at 13.69% with tier - I capital at 9.26%. Collection of Central Government Taxes on behalf of CBDT and CBEC,

including through e- Payments. Collection of State Taxes on behalf of seven State Governments and UTs. Collections & Payments for Central Government Ministries - Railways, Urban

Development and Housing & Urban Poverty Alleviation.

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Collections under e-Governance initiatives of 4 State Governments and Chandigarh.

Current Account Growth:

Mar'05 Mar'06 Mar'07 Mar'08 Mar'090

5000

10000

15000

20000

25000

30000

Current Accounts

Current Accounts

Year Current Accounts Mar'05 7155 Mar'06 7970 Mar'07 11304 Mar'08 20045 Mar'09 24822

Wide Range of Products. Customized offerings for various business segments.

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Growth aided by “Club 50” and “Channel One”. Broad-based sales strategy. Focused approach for Corporate, Institutions & Government.

Capital Market:

Rs. in Cr.

FY 08FY 09

Year Rs. in cr. FY 08 57327 FY 09 69062

A dominant player in placement and syndication of debt issues. Ranked No.1 in the Bloomberg league table for ‘India Domestic Bonds’ for the

calendar year 2008 and quarter ended 31st March 2009.

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Ranked No. 1 Debt arranger by Prime Database for the 9 month period ended 31st December 2008.

Savings Bank Account:

Mar'05 Mar'06 Mar'07 Mar'08 Mar'090

5000

10000

15000

20000

25000

30000

Current Accounts

Current Accounts

Year Current Accounts Mar'05 4891 Mar'06 8066 Mar'07 12126 Mar'08 19982 Mar'09 25822

Wide Network - Branch and ATM Channel reach. Bank’s own sales channel. Focused strategy for niche customer segments.

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Corporate and Government payroll accounts.

Shareholding:

Value

UTILICFIIsOthers

Particulars Value UTI 27.08 LIC 10.36 FIIs 23.43 Others 39.13

Share Capital - Rs. 359.01 cr. Net Worth - Rs. 9,757.45 cr. Book Value per share - Rs. 284.50

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Market Price as on 17/04/09 - Rs. 503.25 Market Cap as on 17/04/09 - Rs. 18,067 cr.

Profile of ICICI Bank:

ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby becoming the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

Branches & ATMs:

ICICI Bank has a wide network both in Indian and abroad. In India alone, the bank has 1,420 branches and about 4,644 ATMs. Talking about foreign countries, ICICI Bank has made its presence felt in 18 countries - United States, Singapore, Bahrain, and Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia.

Products & Services:

Personal Banking NRI Banking Business Banking

Head Office:

ICICI Bank9th Floor, South TowersICICI Towers, Bandra Kurla ComplexBandra (E)Mumbai

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Phone: 91-022-653 7914Website: www.icicibank.co

COMPARISION OF AXIS BANK WITH ICICI BANK:

No doubt, ICICI bank is a major competitor of any bank, whether it can be Government bank or private bank. Today, each person wants his one of the account in the ICICI bank. But when we compared the financial data of ICICI bank with Axis bank, we found the following results:

Financial data of ICICI bank:

PE ratio 21.94EPS (Rs) 33.76Sales (Rs cr.) 7,529.69Face Value (Rs) 10Net profit margin (%) 10.51Last dividend (%) 100Return on average equity 8.94

Financial Data of Axis Bank:

PE ratio 15.49EPS (Rs) 50.57Sales (Rs cr.) 3,039.22Face Value (Rs) 10Net profit margin (%) 13.31Last dividend (%) 100Return on average equity 17.77

Interest margin of Axis Bank is 3.15%, is still hovering close to the 3% mark whereas for ICICI Bank, it is 2.60%. The margin for ICICI Bank is lower than Axis Bank.

ICICI Bank is right into the resistance zone of Rs 480-485 that’s where it’s come after the 10% rise. So, we would prefer an Axis Bank if it’s a trading call over ICICI Bank because probably it will face much more resistance than Axis at those levels.

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ICICI Bank products and services:

Transaction Banking Treasury Banking Investment Banking Capital Markets Custodial Services International Banking Rural & Agriculture Banking

Other Services : Mobile refill, Online donations, E-statements, Locker, Online shopping, CMS, Loans, Credit and Debit cards, Insurance, Payments, Deposits, Investments and Foreign exchange, ATM, Internet Banking, FX Online, Online Confirmations, Multi Pay, Online Trade, Phone Banking, Online Tax, De-mat account, Electronic fund transfer, card to card transfer and many more.

TV Banking is the newest service from the ICICI Bank. By this service, you can operate your account related information and queries in your television sets on channel no. 98. Dish TV is collaborated with ICICI Bank to provide this service to the customers.

Axis Bank products and services:

Axis Bank also provides almost similar kind of services and products except TV Banking. Name and types of accounts are different but there is a negotiable change in their services. But let us compare the Local current account of both banks.

Local current account of ICICI Bank:

ICICI’s Local Current Account is for businesses with primarily local transactions.

Benefits:

Discounted charges on local transactions. Higher free cash deposits limit at base branch location; up to 30 times of the

minimum Average Balance required. Free cheque collection and payment at base location. Free unlimited fund transfer. Free Mobile Banking through SMS alerts as well as account information through

your mobile.

Local current account of Axis Bank:

Small businesses rising on the growth graph need the right kind of nurturing and appropriate solution for their growing banking requirements.

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Recognizing these needs, Axis Bank present the Local Current Account geared to answer all kinds of local business requirements.

Features:

Zero Balance facility. 75 free transactions every month. Get a rebate of 15% every quarter on annual charges. Upfront annual fee. Other services like Mobile Banking, Phone Banking, and Corporate internet-

connect Daily account statements through e-mail.

Some main differences between the two banks:

Both banks give e-statements to their customers but Axis Bank also provides passbook to those customers who maintains their account balance above one lakh. These customers are known as priority customers.

ICICI Bank offers Young Stars savings account and its services up to the age of 18 years and Self Help savings account at the minimum balance of Rs 1000/-.

ICICI Bank offers more services to its NRI customers but Axis Bank is having more coverage on corporate sector.

Lockers are provided at discounted rate in ICICI Bank but in Axis Bank the lockers can also be operated after banking hours.

Axis Bank is distributing its dividend at Rs 10 per share but ICICI Bank is distributing its dividend at Rs 11per share.

If we compare the two banks with respect to their total financial survey, the customer will definitely prefer Axis Bank as the bank is much stronger in financial data but if the customer looks at the products and services, he will go for ICICI Bank. So we can say that both banks are almost on the same edge.

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Profile of HDFC Bank

Housing Development Finance Corporation Limited, more popularly known as HDFC Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive an 'in principle' approval from RBI, for setting up a bank in the private sector. The following year, it started its operations as a Scheduled Commercial Bank. Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across India.

Amalgamations:

In 2002, HDFC Bank witnessed its merger with Times Bank Limited (a private sector bank promoted by Bennett, Coleman & Co.). With this, HDFC and Times became the first two private banks in the New Generation Private Sector Banks to have gone through a merger. In 2008, RBI approved the amalgamation of Centurion Bank of Punjab with HDFC Bank.

Head Office:

HDFC Bank,

Ramon House, 169,

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Backbay Reclamation,

H T Parekh Marg, Churchgate,

Mumbai – 400020

Phone: +91 (22) 66316000, 66636000, 66316060

Fax: +91 (22) 22048834 Website: www.hdfc.com

COMPARISION OF AXIS BANK WITH HDFC BANK:

HDFC Bank, India's second-largest private sector lender, plays a major role in today’s banking. Its wide network and services attracts the large number of customers. This bank beat forecasts with a 45% jump in quarterly profit. We compared HDFC bank with Axis Bank on the following parameters:

Customer Service: This service is very good in Axis bank. They replied all the emails. In HDFC, emails have never been answered and documents have never been mailed when requested through email. Even queries posted in their portal are unanswered.

Pre Payment Charges: They are nil in Axis bank, even when at the time of transfer loan to other bank. HDFC has recently raised these charges to 3% for transfer to other bank.

Rate change for new and old customers: There is no concept of new and old in Axis Bank. They change the rate equally for all customers. HDFC Bank on other hand, charge different rate not only to new and old customers but also there is difference between old customers too.

Rate reset: It is applied on monthly basis in Axis bank while it is applied on quarterly basis in HDFC Bank. While this does not make difference but when rate gets low you tend to get the benefit immediately.

The above information shows that Axis Bank has scored big over HDFC Bank. HDFC Bank has big reputation but its action does not reflect its stature at all.

Financial Structure of HDFC Bank and Axis Bank:

Bank Accumulate Current Price Target priceHDFC Rs 1330 Rs 1590Axis Rs 740 Rs 960

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Both banks delivered strong numbers for FY08 even in a ‘not very easy’ environment. 3 year CAGR of Total Business garnered by Axis Bank is 33% than that of 22% by HDFC Bank.

FY08 HDFC Bank Axis BankAdv Growth 35% 62%Dep Growth 48% 49%PAT Growth 39% 63%CASA 55% 46%NII / Total Income 70% 59%Adj BVPS (Rs) 316 229NIM (calculated) 4.9% 3.3%ROE (calculated) 17.7% 18.1%ROA (calculated) 1.42% 1.17%Balance Sheet (bn.) Rs 1332 Rs 1096

As can be observed from the above table, HDFC Bank has a greater share of low-cost deposits in its total deposits (CASA) and also higher margins (NIM) compared to Axis Bank. However, looking at the returns generated on net worth (ROE) and the growth in advances and profits, Axis Bank appears to be gearing up well to reduce the gap existing in the margins as well as the total balance sheet size. The same is supported by the fact that the CAGR of the Total Business garnered by Axis Bank for the last 3 years has been 33% compared to 22% by HDFC Bank.

Price performance comparison:

Value (23/May/08) 8232 Rs 800 Rs 1383% change Bankex Axis Bank HDFC BankFrom Apr, 2008 7% 2% 5%From Jan, 2008 -28% -17% -20%From 23/May/07 8% 38% 24%From 52-week high -34% -37% -23%

Both HDFC Bank and Axis Bank command the highest levels of CASA ratio in the industry. According to our analysis, HDFC Bank’s average CASA ratio comes to around 56% for FY08, even though, on a point-to-point basis the CASA fell from 58% as of FY07 to 55% as of FY08. For Axis Bank, the CASA as of FY07 was 40% and increased to 46% as of FY08 giving an average CASA of 43%.

Products and Services:

HDFC Bank: HDFC bank provides current account in two types of banking.

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Personal Banking: This type of banking contains eight types of current accounts. They are as follows:

Plus Current Account Trade Current Account Premium Current Account Regular Current Account RFC - Domestic Account Flexi Current Account

Services: HDFC Bank offers many types of services to its customers.

Payment Services Access Your Bank

Payment Services :

Net safe, Bill pay, Insta pay, Direct pay, Visa money transfer, Online donation, Merchant services, Prepaid refill, RTGS funds transfer, Electronic funds transfer, Online payment of direct tax and DVAT, Religious offerings.

Access Your Bank:

Net banking, Credit card online, One view, Insta alerts, Mobile banking, Insta query, ATM, Phone banking, Email statements, Branch network, Loans, Credit and Debit cards, Insurance, Payments, Investments and Foreign exchange.

Axis bank: This Bank offers many types of current accounts for their customers in the corporate sector. They are as follows:

Normal current account, Business Advantage account, Business classic account, Channel One, Current Account for Govt. Organizations, current account for Builders & Real Estate, Capital Market current account, Krishi current account, Business Global current account, Club 50 current account, Shipping and Maritime current account, Inland Road Transport current account, Travel and Tourism and Hospitality current account, Local current account.

Accessing Services:

Mobile refill, online donations, IPO smart, E-statements, Locker, Online shopping, CMS, PAN assistance, NRI local post box.

Other Services:

Loans, Credit cards and Debit cards, Insurance, Payments, Remittances, Deposits, Investments, Foreign exchange, ATM.

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Some main differences between the two banks:

Pre payment charges are nil in Axis Bank but HDFC banks charges at 3 percent.

HDFC bank changes the rates for its old and new customers. This partiality is absent in Axis Bank.

Rate reset is applied on quarterly basis in HDFC Bank and monthly basis in Axis Bank.

Total business is 33 percent of Axis Bank in comparison with 22 percent of HDFC Bank.

There is extended banking hours to operate lockers in Axis Bank. This service is not provided by HDFC Bank.

You can prefer passbook or e-statement to know your account balance in HDFC Bank but Axis Bank provides passbook to those customers who maintains their account balance above one lakh. These customers are known as priority customers.

Better customer services in Axis Bank than that of HDFC Bank.

Valuation and Recommendation:

It has been observed that both the banks, i.e. HDFC Bank and Axis Bank provide different types of products and services to their customers. When we compared both the banks, we found that HDFC Bank provide more services to the customers in comparison with Axis Bank. But Axis Bank is more dedicated to the corporate sector as the bank offer many types of accounts in comparison with HDFC Bank.Based on a FY10E BVPS of Rs 306 and Rs 506 for Axis Bank and HDFC Bank respectively, we recommend accumulation of the stocks with a price target of Rs 960 for Axis Bank and Rs 1590 for HDFC Bank.

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HDFC Bank is unable to make the best use of its higher interest earnings capacity and is losing this advantage to higher costs. The‘net efficiency’ for HDFC Bank has been constantly falling while it has remained at reasonably higher levels for Axis Bank.

This analysis supports our view to rate Axis Bank on par with HDFC Bank, justifying the fact that the valuation premium cannot be attached to only HDFC Bank.

Profile of Kotak Mahindra Bank:

Kotak Mahindra Bank is one of India's leading financial private banking institutions. It offers banking solutions that covers almost every sphere of life. Some of its financial services include commercial banking, stock broking, mutual funds, life insurance and investment banking. Established under the brand of Kotak Mahindra Finance Ltd in 1984, it was given the license to carry on with banking business by the Reserve Bank of India in February 2003. It is the first company in the Indian banking history to convert to be converted from a private financial institution to a bank.

Branches and Business:

Within a small span of 6 years, the bank has spread it wings in several sphere of finances. Presently, spread in 82 cities in India, the bank caters to the needs of its 5.9 million customers spread throughout the length and breadth of country and even abroad. By the end of FY 2007-2008, the Kotak Mahindra Bank had about 178 branches spread all over the country and it plans to add some more branches by the end of FY 2010.

Registered Office:

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Kotak Mahindra Bank Limited,36-38A,Nariman Bhavan, 227 Nariman Point, Mumbai, India - 400 021 North India -1800 116022 Rest of India-1800 226022      E-mail: service.bank@kotak.comURL: www.kotak.com

COMPARISION OF AXIS BANK WITH KOTAK MAHINDRA BANK:

Established in 1985, The Kotak Mahindra group has long been one of India's most reputed financial organizations. In February 2003, Kotak Mahindra Finance Ltd, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI).The bank reported a 48.22% jump in net profit to Rs 102.57 cr. on a 14.32% jump in total income to Rs 918.09 cr. in Q4 March 2009 over Q4 March 2008.

Comparison of Financial data:

Particulars Kotak Mahindra Axis BankPE ratio 85.42 15.49EPS (Rs) 7.99 50.57Sales (Rs cr.) 803.03 3039.22Face Value (Rs) 10 10

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Net profit margin (%) 10.37 13.31Last dividend (%) 7.5 100Return on avg. equity 8.17 17.77

It is clear from the financial data of both the banks that Kotak Mahindra bank is far behind with Axis Bank. The bank has less services and products, branches and networks in comparison with Axis Bank. So regarding to financial data, any customer would like to open its account in Axis Bank.

Products and services in Business Banking:

Kotak Mahindra Bank offers unparalleled advantages with :

Neo Current Account

Edge Current Account

Pro Current Account

Elite Current Account and Ace Current Account

Key Features:

Minimum account balance required is nil. 2 Way Sweep for liquidity and higher returns. Free-up country cheque collection for 13 locations. Personalized cheque book. Free demand drafts. Free cheque collection. Free At -Par Cheque facility to Free Trading Account Free demat account. NEFT payments RTGS payments Utility Bill payments through BillPay Credit Card payments through Visa Money Transfer Buying / redemption of mutual fun

These current accounts have been designed to help the customer effectively in the contemporary business environment, including a 2-Way Sweep feature that delivers liquidity combined with higher returns.

Services:

Banking & Savings

Banking Accounts

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Demat Deposits NRI Services Convenience Banking

Investments & Insurance

Life Insurance Mutual Funds Share Trading Structured Products Gold Estate Planning

Loans & Borrowings

Car Finance Home Loans Loans Against Property Personal Loans

Corporate & Institutional

Corporate Finance Investment Banking Institutional Equities Treasury

Axis bank: This Bank offers many types of current accounts for their customers in the corporate sector. They are as follows:

Normal current account, Business Advantage account, Business classic account, Channel One, Current Account for Govt. Organizations, current account for Builders & Real Estate, Capital Market current account, Krishi current account, Business Global current account, Club 50 current account, Shipping and Maritime current account and many more.

Key Features:

Pay Order Facility Demand Drafts Inter Branch Cash Deposit Facility Intercity Cash Withdrawal Home Branch Cash Withdrawal Free At-Par Cheque Facility

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Free Local Cheque Collection Free Fund Transfer Free Outstation Collection Doorstep Banking Cheque Protection Facility Free Cash Deposit Free Anywhere Banking Pay orders and Demand Drafts Enhanced Transactional Benefits Customized Cheque Stationery with Hologram Payments through fastest mode Customized Cheque Printing

Accessing Services:

Mobile refill Online donations IPO smart E-statements Locker Online shopping CMS PAN assistance NRI local post box.

Other Services:

Loans Credit cards and Debit cards Insurance Payments Remittances Deposits Investments Foreign exchange ATM.

Valuation:

After comparison of both the banks, it is clear that Axis Bank is more preferable than Kotak Mahindra Bank. Features of account, products and services of Axis Bank provide more comfort to its customers. Share price of Axis Bank is also more than the Kotak

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Bank due to good financial growth. So the above analysis strongly prefers Axis Bank to Kotak Mahindra Bank.

Profile of Punjab National Bank:

With its presence virtually in all the important centre of the country, Punjab National Bank offers a wide variety of banking services which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. Among the clients of the Bank are Indian conglomerates, medium and small industrial units, exporters, non-resident Indians and multinational companies. The large presence and vast resource base have helped the Bank to build strong links with trade and industry.

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Punjab National Bank (PNB) is the second largest government-owned commercial bank in India. Having more than Rs 3.5 cr. customer, Punjab National Bank has one of the largest branch networks in India. The bank's assets for financial year 2007 were about US$60 billion.

Another step taken by PNB in meeting the changing aspirations of its clientele is the launch of its Debit card, which is also an ATM card. It enables the card holder to buy goods and services at over 99270 merchant establishments across the country.

Head Office

Punjab National Bank. 7, Bhikhaiji Cama Place, New Delhi - 110066 Phone: 91-11-2371 6185Fax: 91-11-26196176 Website: www.pnbindia.com

COMPARISION OF AXIS BANK WITH PUNJAB NATIONAL BANK:

Strong correspondent banking relationship which Punjab National Bank maintains with over 200 leading international banks all over the world enhances its capabilities to handle transactions world-wide. Besides, bank has Rupee Drawing Arrangements with 15 exchange companies in the Gulf and one in Singapore. Bank is a member of the SWIFT and over 150 branches of the bank are connected through its computer-based terminal at Mumbai.

Comparison of financial data:

Particulars PNB Axis Bank

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PE ratio 6.55 15.49EPS (Rs) 98.03 50.57Sales (Rs cr.) 5,242.57 3039.22Face Value (Rs) 10 10Net profit margin (%) 13.76 13.31Last dividend (%) 200 100Return on avg. equity 23.52 17.77

The financial data of Punjab National Bank is much stronger than the Axis Bank. It shows the growth of Punjab National Bank in the share market and the profit the bank is getting. Sales and EPS ratio also goes in the favor of Punjab National Bank.

Business Profile of Punjab National Bank: Punjab National Bank was established in the year, 1895 in Lahore. PNB provides a wide variety of services, which include corporate and personal banking, industrial finance, agricultural finance, financing of trade and international banking. PNB serves over 35 million customers through its wide network of 4,520 branches, which include 439 extension counters. The Bank was recently ranked 21st amongst top 500 companies by Economic Times.

Financials:

The bank reported a growth in standalone net profit for the quarter ended December 2008. During the quarter, the profit of the bank rose 85.76% to Rs 10,058.20 million from Rs 5,414.50 million in the same quarter last year. Interest earned for the quarter rose 45.61% to Rs 52947 million, while total income for the quarter rose 51.47% to Rs 62,399.1 million, when compared with the prior year period. It posted earnings of Rs 31.90 a share during the quarter, registering 85.79% growth over previous year period.

Recent Developments:

The bank launched its online trading services in association with Net worth Stock broking.

The bank inked a pact with UAE Exchange & Financial Services for establishing remittance arrangement under money transfer service scheme (MTSS) through the remittance products namely ` Xpress Money` and ` Money Gram`.

The company announced that it has executed an agreement with the Oriental Insurance Company for bancassurance - general insurance under the provisions of IRDA`s `Referral Arrangement`.

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The bank has announced that it has received a total Rs 2,205 billion under PNB tier bonds series IV issue.

The bank has announced that Royal Monetary Authority of Bhutan has accorded an in-principle approval for setting up the `Druk PNB Bank`.

PNB has launched the concept of "Any Time, Any Where Banking" through Centralized Banking Solution (CBS) and has introduced On line Payment Facility for railway reservation through IRCTC Payment Gateway Project and On line Utility Bill Payment Services.

Business Profile of Axis Bank:

Axis Bank formerly known as UTI Bank is promoted by Unit Trust of India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), and its four subsidiaries. Presently, the bank has a network of more than 450 branch offices and over 1,891 ATMs.

The bank has restructured its business into four strategic profit centers, viz. corporate, retail, merchant and treasury banking. It has also diversified into investment banking, insurance, credit cards, mortgage financing, depository services and more. The bank is also acting as a clearing house for NSE and has also tied up with companies in e-commerce.

The bank has a very wide network of more than 578 branch offices and extension counters. It has a network of over 2,383 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.

Financials:

The bank reported a phenomenal rise in standalone net profit for the quarter ended March 2009. During the quarter, the profit of the company rose 60.89% to Rs 5,814.50 million from Rs 3,614 million in the same quarter last year.

Interest earned for the quarter jumped 50.80% to Rs 30,392.20 million, while total income for the quarter jumped 51.05% to Rs 38,847.30 million, when compared with the prior year period.

It posted earnings of Rs 16.20 a share during the quarter, registering 60.24% growth over previous year period.

Recent Developments:

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The company has tied up with Times-of-Money (a non-bank e-payments service provider) to launch Axis Remit, the bank`s own branded online remittance service.

The bank has invested Rs 2.50 billion in Lavasa Corporation, a subsidiary of Hindustan Construction Company in the form of convertible preference shares and convertible debentures. Based upon this investment the equity valuation of Lavasa works out to be Rs100 billion.

Axis Bank allotted 481,691 equity shares of Rs 10 each to the employees of the bank under ESOP. The paid up share capital of the bank increase to 356,223,999 equity shares from 355,742,308 equity shares.

UTI Bank, the country`s third largest private sector lender officially changed its name to Axis Bank. The bank is planning to spend around Rs 500 million in the re-branding exercise.

UTI Bank has approved the allotment of unsecured redeemable non-convertible debentures to various investors on private placement basis as the bank`s Tier 1 capital aggregating to Rs 2,140 million.

As we compared the financial data of both the banks, i.e., Punjab National Bank and Axis Bank, the valuation goes in the favor of Punjab National Bank. The main advantage is that it is a Government sector bank which allows it to cover more area in the country and spread its network even to the villages.

Products and Services:

Generally, Punjab National Bank offers its customers these types of services:

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep, PNB Vidyarthi SF Account, PNB Mitra SF.

Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer.

Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Account, Mahabachat Schemes, and Multi Benefit Deposit.

Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards.

Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers Welfare Trust.

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Corporate Banking - Gold Card scheme for exporters, EXIM finance.

Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami, PNB Vikas Udhami.

Latest on PNB - . Another step taken by Punjab National Bank of India is the launch of its ATM- cum- Debit card.

Apart from these, the PNB also offers locker facilities, senior citizens schemes, PPF schemes and various E-services like e-statement, internet banking.

Axis Bank: Axis Bank offers many types of accounts for their customers. They are as follows:

Savings Account - Zero Balance Savings Account, Easy Access Savings Account, Prime Savings Account, Corporate Salary Account, Women's Savings Account, Senior Citizen's Account, Defense Salary Account, Trust/NGO Savings Account, Pension Savings Account and many more.

Current Account - Normal current account, Channel One, current account for Builders & Real Estate, Capital Market current account, Club 50 current account, Shipping and Maritime current account, Inland Road Transport current account, Travel and Tourism and Hospitality current account, Local current account and many more.

Accessing Services:

Mobile refill, Online donations, IPO smart, E-statements, Locker, Online shopping, CMS, PAN assistance, NRI local post box, Internet Banking, Phone Banking, Mobile Banking.

Other Services:

Loans, Credit cards and Debit cards, Insurance, Payments, Remittances, Deposits, Investments, Foreign exchange, D-Mat accounts, Online Trading, ATM, Cheque Truncation System, collection of Property tax of Municipal Corporation Of Delhi.

No doubt, that Axis Bank offers more products and services to the customers than the products and services of Punjab National Bank. So with respect to this, the result goes in the favor of Axis Bank.Customer should prefer Axis Bank to Punjab National Bank.

Some more comparisons:

PNB and Axis Bank raise rates:

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A day after the Reserve Bank of India’s (RBI) monetary-tightening measures, banks on began raising interest rates, affecting the hike for the second time in a month.

Punjab National Bank (PNB), the country’s second-largest public sector lender, announced a percentage point increase in the prime lending rate (PLR) to 14 per cent, while raising deposit rates by 75-100 basis points. The maximum deposit rate on offer will be 9.75 per cent a year.

Axis Bank, the third-largest private sector lender, however, opted for a more moderate PLR increase of 50 basis points. In a statement, the bank said its PLR will increase from 15.25 per cent to 15.75 per cent with effect from today. PNB’s rate hike will take effect from August 1. 

Axis Bank, PNB is good buy for long-term investors :

Since March 09 the benchmark Nifty index of the NSE has lifted by 78% hence the bank shares have moved up by higher margins, but not of all the banks. After analyzing the stock market current position the Axis Bank, Punjab National Bank are still in a very good position and a good buy for long-term investors in case growth and historical assessment are taken into account.

There are also some bank stocks which appear to be underestimated. From March ‘05 to July’ 07, Axis Bank did business at a P/E of 20-25 when net profit growth was 20-50 %. Currently the stock is trading at a P/E of 14, with net profit growth of 69% in FY 2009. The conclusion is that stock markets have not been giving it the best it deserves to show the faster rate of growth.

Valuation:

Punjab National Bank is the 2nd largest bank in the Government sector while Axis Bank is the 3rd largest bank in the private sector. Punjab National Bank is much stronger in the savings account which helps to increase its growth in the urban areas as well as in the rural areas but on the other hand, Axis Bank is having more coverage on the corporate world which is no longer useful for the rural areas. So Punjab National Bank is better for the general accounts and Axis Bank is better for the corporate sector and products and services offered by the bank.

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Chapter - IV

Findings:

In data processing and analysis part, we have already mentioned the valuation between the two banks. In that part, we figured out that some banks are financially stronger in comparison with the other banks and some bank offers more products and provides more services to the customers in comparison with the other bank.

But this comparison is mainly dependent upon secondary data. To visit a bank and getting information can be a part of primary data but it can also be a secondary data, because you go there and just got some vouchers related to the accounts, offers, products and services.

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So to get the primary data, the best option is to make questionnaire and fill it by the common people so that we can understand that in today’s world what customer wants from the bank. It also helps us to find our final result and understand the customer. It is an easy method but also very much time consuming and sometimes depends upon the work.

So to fill up the requirement of primary data, the questionnaire has been filled up by 100 people and some different and shocking results came into light. These results are mentioned as follows on the basis of respective points:

Most valuable bank Customer satisfaction Opinion about Axis Bank Awareness about product and services Time taken to solve the query on telephone

Most valuable bank:

Bank PercentageICICI 35HDFC 12AXIS 20PNB 25

OTHERS 8

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ICICI HDFC AXIS PNB OTHERS0

5

10

15

20

25

30

35

Percentage

Percentage

The result shows that ICICI bank is the most preferred bank in all respective, whether regarding to financial data or regarding to products and services. After that, Axis Bank is the most preferred bank which captured the 2nd place. In the Government sector, Punjab National Bank is the most preferred bank among the 100 people.

Customer Satisfaction:

Satisfaction Percentage

Excellent 72

Very Good 19

Good 5

Satisfactory 3

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Poor 1

Percentage

ExcellentVery GoodGoodSatisfactoryPoor

The graph shows that the customers are well satisfied with the products and services and the interaction with the bank employees of Axis Bank. It is the most important thing that the customer should satisfy with the bank services. Growth of a bank is very much dependent on the customer satisfaction.

Opinion about Axis Bank:

Opinion Percentage

Excellent 81

Very Good 14

Good 3

Satisfactory 1

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Poor 1

Percentage

ExcellentVery GoodGoodSatisfactoryPoor

The common opinion about the Axis Bank of general 100 people is very much satisfactory. It means the customer thinks that the bank can grow more & can be the leader of all the private banks in the future. It is a very good sign for the growth of the bank. It can also motivate the Axis Bank employees to work more efficiently and effectively.

Awareness about Products & Services:

Aware Percentage

Yes 94

No 6

67

Yes

No

0 10 20 30 40 50 60 70 80 90 100

Percentage

Percentage

It is a very good sign that 94 out of 100 customers are aware of the products and services of Axis Bank. Six customers is a negotiable figure but it also should be less than this. It also shows that the bank employees are more interactive with the customers and aware them regularly about the new products, services and offers. Positive interaction between the customers and employees spreads the growth of the bank.

Telephone Queries:

Time Taken Percentage

0-2 minutes 8

2-5 minutes 61

5-10 minutes 27

Call Again 4

68

0-2 mins 2-5 mins 5-10 mins Call Again0

10

20

30

40

50

60

70

8

61

27

4

Percentage

Percentage

The table shows that the bank takes the normal time to solve the query of a customer on the telephone. Even to give information about the balance of any customer account on phone, normally takes 2-5 minutes. Sometimes there is a problem of networking and data transfer speed, which allows to the customer to wait little bit more or very rarely that the customer has to call again to solve the query. It also shows that the employees are more dedicated to solve the queries of their customers.

Chapter - V

Conclusions

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This project served as a great learning experience. It gave the opportunity to work in an organization and its unique culture. Through this experience, we not only learned to adjust to each other’s schedules and attitudes, but we also learned to be more responsible.

In addition to this, we also got an in-depth view of the banking and its strategies. We vividly experienced how to face the situation and the problem of the customer at the most complicated time. It teaches us how to survive in an organization and its culture.

Current objectives are to continue with analysis of the data collected, and also continue to meet with faculty and administration to identify additional strategies for solving the problems identified. The ultimate goal of the project is to achieve the solution of the problem and know the market through the market survey method or questionnaire method.

On the basis of the various findings, following conclusions can be made:

1. This project report clearly depicts that business banking is more effective and efficient for the growth of the bank.

2. It is also efficient in case of related benefits such as priority banking.

3. Query handling is more convenient through the implementation of telephonic services.

4. Internet enabled banking process provides high degree of transparency and accuracy plus security.

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Chapter - VI

Recommendations

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On the basis of findings and conclusions of the project, I can make the following recommendations.

1. Axis Bank should also provide accounts and services to the doctors as they have no such type of account especially for the doctors.

2. Query handling should also be faster and the handler should also have internet facility so that the person can also handle account related information.

3. There should be a free tea/coffee service for the priority customers and paid service for the regular customer.

4. Bank should also have a LCD screen in which the advertisements of products and services of Axis Bank keep going on in the regular basis.

5. Bank should provide transportation services to the senior citizen customers. 6. Bank should also provide discount or any other offer on the locker facility.

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Bibliography

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Websites visited:

www.axisbank.com

www.icicibank.com

www.hdfcbank.com

www.kotakmahindrabank.com

www.punjabnationalbank.com

www.google.com

Pamphlets Referred:

AXIS BANK

ICICI BANK

HDFC BANK

KOTAK MAHINDRA BANK

PUNJAB NATIONAL BANK

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Annexure

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A QUESTIONNAIRES

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Feedback Form (For Axis Bank Customers)

Name: Occupation: 1. Which type of account do you have? □ Current Account □ Saving Account □ other (specify)

2. How many accounts do you have in Axis bank?

□ 1 □ 2-3 □ 4-5 □ More than 5

3. How far is the distance between bank and your home / office?

□ 0-2 km □ 2-4 km □ 4-8 km □ More than 8 km

4. Do you aware of all the services and products of Axis Bank?

□ Yes □ No

5. What is the satisfaction level about services and products?

□ Excellent □ Very good □ Good □ Satisfactory □ Un-satisfactory

6. Which bank you prefer most excluding Axis Bank?

□ ICICI □ SBI □ HDFC □ PNB □ other (specify)

7. How much time bank takes to solve your problem?

□ 0-2 mins □ 2-5 mins □ 5-10 mins □ Call again

8. What is the interaction between you and the bank?

□ Excellent □ Very good □ Good □ Satisfactory □ Un-satisfactory

9. Do you want tea/coffee/snacks services from the bank?

□ Yes □ No

10. Do you want transportation service from the bank at low price?

□ Yes □ No

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Problems which you are facing with Axis Bank:

Suggestions:

Thank You for your co-operation….

Mayank Govil

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Feedback Form (For non-Axis Bank customers)

Name: Occupation:

1. Which bank you prefer most for opening your first account?

□ ICICI □ Axis □ PNB □ HDFC □ other (specify)

2. How far is the bank from your home / office?

□ 0-1 km □ 2-4 km □ 4-6 km □ More than 6 km

3. Do you want tea/coffee/snacks services from the bank?

□ Yes □ No

4. Do you want transportation service from the bank at low price?

□ Yes □ No

5. Give your opinion about Axis Bank in comparison with others?

□ Excellent □ Very good □ Good □ Satisfactory □ Un-satisfactory

6. Are you aware of all the services and products of your bank?

□ Yes □ No 7. How much time your bank takes to solve your query?

□ 0-2 mins □ 2-5 mins □ 5-10 mins □ Call again

Problems which you are facing with your preferred Bank:

Suggestions:

Thank you for your co-operation…..

Mayank Govil

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B LIST OF CONTACTS

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Particulars Numbers

Axis Bank, Karol Bagh, New Delhi 011-45400733 011-41451988 011-41451175

Mr. Deepak Khanna +919871875219 +919899097804

Mr. Rajiv Walia +919999756599

Mr. Rohit Goel +919871789191

Mr. Rajiv Ranjan +919868599456

Mr. Gaurav Saini +919711192281

Mr. Rohan Kumar +919899087156

Mr. Dilshad Ali +919999984629

Mr. Sumit Kumar +919873286827 +919891959117

Mrs. Mou Sen +919654016100

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