A REPORT ONANALYSIS OF PRODUCT PORTFOLIO

ANDMANAGING THE CUSTOMER RELATIONSSIP MANAGEMANT IN AXIS BANK

EASTEARN INSTITUTE FOR INTERGRATED LEARNING IN MANAGEMENT

BY, SAMIR MALAKA

TABLE OF CONTENTS:-

1. ACKNOWLEDGEMENT 2. ABSTRACT 3. EXECUTIVE SUMMARY

a. INTRODUCTION OF COMPANY BAGROUND b. ROLE OF CRM IN BANK c. CRM OBJECTIES IN BANKING SECTOR d. PURPOSE OF THE PROJECT e. OBJECTIVE OF THE PROJECT f. SCOP OF THE PROJECT g. METHODOLOGY h. ANALYSIS i. LIMITATION OF THE STUDY j. CHARTS OF PRODUCT COMPARION k. ANALYSIS OF GRAPS l. CONCLUSION m. LERNI NG n. RECOMANDATIONS o. ANNEXURE p. FACTORE ANALYSIS TABLES

ACKNOWLEDGEMENT:-

As a part of the summer internship program, the project report and internship training has been a unique experiences in it self. The opportunity to work with a reputed bank, analyze a particular subject and make detail account of it was a great learning experience. It gives me immense pleasure to acknowledge MR. MANOJ KUMAR DAS Vice president of AXIS BANK for giving me the opportunity to work in a bank of such high repute. I would like to extend my deep acknowledgement to my faculty guide Prof. KALAYAN MUKHERJEE And my company guide Miss ANUMITA BANERJEE, Assistant manager of AXIS BANK for their extensive support and cooperation. I would like to take this opportunity to take thank them for their phenomenal help and continuous guidance. Their immense support and belief me give me the confidence to deliver my best. Under their esteemed supervision, I have learn various new concept and get a fair idea of how banking sector runs and this has helped me to enhance my knowledge and broaden my spectrum to a very large extent. They helped me to bridge the gap between theoretical knowledge and real business scenario. I would also like to thank Miss STUITY ROY AND MR.STURADU HALDER both are in Assistant Manager of AXIS BANK and the respondents for their valuable inputs and information which has immensely helped me to complete my study.

Last but on the least I would like to thank the numerous respondents for their kind cooperation and my institute EIILM Business school in Kolkata for providing valuable books which were used for my reference.

ABSTRACT:A commercial bank is financial institution thats accepts deposits and channels those deposits in to lending activities. Earlier the traditional backings activities were only restricted to accepting of deposited, lending money and providing miscellaneous services, like remittance facilities, locker facilities etc. But today the banking scenario has completely changed. Todays banking activities are characterized with high degree competition. With the presence of both public and foreign players, competitive forces have become more intense and will continue to grow stronger with the advent of more and more foreign players in the financial market. It is a major challenge faced by commercial banks these days. It is going through a major transformation. Traditional bank have long been exposed to external pressures. These pressures have been brought about by the influence of worldwide globalization and unceasing technological development. The challenges that are posing threats to AXIS BANK. 1. Technological revolution 2. Services proliferation 3. Rising competition 4. Rising fund costs and shrinking spreads 5. Disintermediation and securitization 6. Consolidation and geographic expansion 7. Globalization of banking 8. Deregulation

9. High value deposits for opening 10. Customer harassment 11. Business reputation 12. Poor usability 13. Complexity 14. Fragmentation

A significant threat is from foreign banks offering technology financial services across geographical boundaries and there by competing with traditional banks for their best business with in their own backward. Therefore, every bank is continuously trying to come up with new products and services portfolio having special feathers, schemes and better services to attract more and more customer. So along with acquisition of new customer, customer retention is the need of the hour to survive in such a competitive environment. In these current situation customer retention main essence of customer relationship management.

Customer Relationship Management is process which assists enterprise in managing its customer relationships in an organized way. It is a broadly recognized, widely implemented strategy to find, attract and win new customers, nature and retain those the company already has, entice former customer back into the fold, and reduce the cost of marketing and customer service. Creating is at the heart of every business.

Concept Of CRM:Customer Relationship Management (CRM) is a term given to the process of managing your relationship with your customers...better. It covers: Managing Leads Qualifying and Converting Leads Managing Opportunities Keeping track of Activities Management Reporting and Forecasting Summary of the Benefits Consider the various ways new customers interact with your business:-

These are broad categories, but your first contact with a customer, will likely be through one of these methods. Further more, the contact may be initiated by you, or simply by the customer. For example: Phone: You may cold-call a prospective list of customers or alternately, you may receive enquiries from customers who have simply seen your web site or an ad in the yellow pages. Email: You may receive email enquiries or people may reply in response to email based marketing initiatives such as newsletters. Web : You may receive enquiries from a web based "contact us" form. In addition, you may promote your web site through various marketing initiatives such as Google Ad words. Your business may have additional lead sources not covered here depending on your specific marketing methods. Perhaps you have door-to-door salesmen, or run campaigns via SMS text messaging. The point is, there are many sources from which you may receive contact from potential customers. As Marketing Experts Don Peppers and Martha Rogers say:The only value your company will ever create is the value that comes from customers the ones have now and the ones you will have in the future. Businesses succeed by getting, keeping and growing customers. Without customers, you dont have business.

Maximizing customer value means cultivating long term customer relationship. Banks are now moving away from wasteful mass marketing to precision marketing designed to build strong customer relationships.

Key Concept OF CRM

Comprehensive strategy: CRM at one end links itself to SCM supply chain management and on the other hand the customer service and customer care. This makes a comprehensive strategy. Acquiring: This is about prospecting. Using effective sales promotion methods, prospective buyer can be acquired. It is about developing new customer as well as converting competitors customers. Selection: You cant please all people at all times. You may not be able to serve and satisfy all the customers at the same time. There may be customers who may not be willing to have long time relationships with you. As a consequence you need to have selectivity in the customers as well. Retaining: Once a right customer is selected, we need to provide the customer with a good product and a better service which exceeds the customer requirements. Only then can the customer be satisfied and retention of a customer can be possible. Partnering: Partnership is about constantly striving to create better value for each other i.e. the buyer and the seller. Interactive Communication: A clearly planned and focused two way, interactive communication is a very essential ingredient of CRM. A meaningful communication will always be an interactive communication. Technology + people: CRM is all about people and relating people to technology. This is all automation of people is all about?

Mutually Beneficial Long-term Relationship: It is all about the long-term relationship of the buyer and the seller. This overall results in the mutual benefit of both resulting in a long term relationship. Customer delight needs to be created instead only satisfying the customer. Customer service is about giving facilities and services that the customer asks for, or delivering service that is expected in todays competitive world. Most products require additional or long-term support from the organization. These traditional services include delivery, installation, lessons-in-usage, instruction manuals, repairs and maintenance etc. Customer care (and also customer delight) is going beyond the expectation check list. Customer care is being proactive in developing relationship with your customer. Always remember Good customers are worth keeping for life. Great services can create a great experience and customers delight.

Customer Relationship Management will derive the following benefits for AXIS BANK. Customer Attentions Increase profitability Improved planning Improved product development Higher sales productivity Added cross selling and up selling opportunities Streamlined sales and marketing process Improve customer services Increase call centre efficiency Better customer profiling and targeting Reduce expense Increase market share Quality and efficiency Decrease in overall costs Decision support Enterprise ability.

EXECUTIVE SUMMARY:-

Banking sector has been become highly competitive. Each and every bank in the sector is trying to increase its market share to become dominant players by acquiring new customer and by maximum retention of its existing customers base. The project throws light on the awareness level of customers regarding the bank product and services. I learnt about general factors leading to customer satisfaction and factors specific to distinct demographic profiles of customers. I also tried to find out the factors which contribute most to customer satisfaction. The analysis done in this project was to find out whether the targeted customer segment were well versed with their bank product (CASA products).From the graphs analyzed, it was evident that the awareness level of CASA and other bank product features is pretty low. It was also found the customers want prompt service at their banks branch. They prefer more of ATM counters then Teller counter since it saved time and it is much more convenient. In this report I have also attempted to make a comparative study of the different financial products. Though all commercial banks are providing more or less same product but still some banks have managed to attract more customer, like AXIS BANK. They are faced a high demand for financial products. It is because these banks are not only coming up with innovative products but also know to retain customers. These banks believe in the concept of Customer Relationship Management. A comparative chart is drawn showing the CRM initiatives adopted by certain selected banks. The study has revealed that there is a lot of ground to be covered by banks to implement CRM uniformly across the entire organization and extract maximum benefits from it. Banks are slowly realizing the importance benefits of CRM and are already taking initiatives to implement the same across the organization. No bank till now can claim to have fully implement CRM systems and practices the CRM philosophy in reality.

In my factors analysis three factors have been extracted which are follows: Awareness factor Technological factor Convenience factor

AWARENESS FACTOR TECHNOLO GICAL FACTOR CONVENENIENCE FACTOR

These three factors lead to customer satisfaction. But have to realize that these factors are not sufficient. Banks need to design customer centric strategies and implement systems in place that create greater customer convenience, respond to the voice of customers and in all create more customer satisfaction. Banks have realized that in order to survive in the competition it is necessary that they make a transition from a traditional bank to a relationship bank. This realization is also sinking in private sector banks which until recently used to function as traditional banks. It is going to take a mammoth and a disciplined effort to make complete transformation to a relationship focused organization.

INTRODUCTION:COMPANY BACKGROUND: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. The Bank as on 31st December, 2011 is capitalized to the extent of Rs. 412.57 cores with the public holding (other than promoters and GDRs) at 53.63%. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence

MILSTONES:-

1993:- The bank was the first private sector bank to get a license under the new guidelines issued by the RBI. 1997:- Rupees 100 cores was contributed by UTI, the rest from LIC Rs 7.5 cores, GIC and its four subsidiaries Rs 1.5 cores each. 1998 - The Bank has 28 branches in urban and semi urban areas as on 31st July. All the branches are fully computerized and networked through VSAT. ATM services are available in 27 branches.

- UTI Bank has launched a new retail product with operational flexibility for its

customers. 1999:- UTI Bank and Citibank have come together to launch an international co-branded credit card under the MasterCard umbrella. 2000:- The Bank has announced the launch of Tele-Depository Services for its depository clients. - UTI Bank has launch of `iConnect', its Internet banking Product. - ICRA has upgraded the rating og UTI Bank's Rs 500-crore certificate of deposit programmed to A1+. 2001 - UTI Bank launched a private placement of non-convertible debentures to raise up to Rs 75 corer. - UTI Bank has opened two offsite ATMs and one extension counter with an ATM in Mangalore, taking its total number of ATMs across the country to 355. 2002:-ABN Amro, UTI Bank in pact to share ATMs. -UTI Bank Ltd has informed BSE that a meeting of the Board of Directors of the Bank is scheduled to be held on October 24, 2002 to consider and take on record the unaudited half yearly/quarterly financial results of the Bank for the half year/Quarter ended September 30, 2002.. 2003:-UTI has been authorized to launch 16 ATMs on the Western Railway Stations of Mumbai Division. -UTI filed suit against financial institutions IFCI Ltd in the debt recovery tribunal at Mumbai to recover Rs.85cr in dues-.

-Unveils pre-paid travel card 'Visa Electron Travel Currency Cards. 2004:- -Unveils premium payment facility through ATMs applicable to LIC & UTI Bank customers -Launches `Remittance Card' in association with Remit2India, a Web site offering money-transfer services 2005:-. -UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in Karnataka at Mangalore. 2006:-UTI Bank unveils priority banking lounge

- UTI Bank launches operations of UBL Sales, its Sales Subsidiary - Inaugurates its first office in Bangalore -UTI Bank announces the launch of its Credit Card Business - UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market - UTI Bank Business Gold Debit Card MasterCard Launched - Designed for business related spending by SMEs and self employed professionals 2007:-AXIS Bank Ltd has informed that Fitch Ratings on December 14, 2007, has

upgraded the Bank's National Long-term rating to 'AAA(ind)' from 'AA+(ind)'. - Company name has been changed from UTI Bank Ltd to Axis Bank Ltd. 2008:- Axis Bank launches Platinum Credit Card, India's first EMV chip based card

- Axis Bank set up its branch at Slangy at Meenakshi Nagar on the CoutralamMadurai road on April 16. 2009:- Axis Bank has set up a new branch at Perumbavoor. The bank has a network of

832 branches along with 8 extension counters and 3622 ATMs across the country. - - Axis Bank opened the new branch at Irinjalakuda while it has a network of 892 branches, 8 extension counters and 3,806 ATMs across the country. 2010:- Axis Bank Limited has informed that at the meeting of the Board of Directors held

on January 15, 2010, the following decisions were taken: (1) To appoint Dr. Adarsh Kishore, former Finance Secretary, Government of India and former Executive Director, International Monetary Fund representing Bangladesh, Bhutan, India and Sri Lanka, as the Non-Executive Chairman of the Bank, subject to RBI approval; (2) To appoint Shri .S.B. Mathur, former Chairman, LIC and the National Stock Exchange of India, as an Additional Independent Director, with immediate effect. MISSION AND VALUE: Customer service and product innovation tuned to diverse needs of individual and corporate client. Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices To adopt latest technology on a continuous basis To enter international arena through branch network To build proactive ,professional and involved workforce To innovate products and services to cater to diverse sections of society To ensure quick and efficient response to customer expectations

VISSION: To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology To be a forward looking bank To be a techno-savvy bank

To be a customer centric bank To serve divers sections of the society ALUECORE V: Customer satisfaction through: Providing quality service effectively and efficiently. Smile, it enhances your face value is a service quality stressed on

Periodic customer service Audits.

Maximization of stakeholder value. Success through Teamwork Integrity and people. Ownership Transparency

Role of crm in bankSThe idea of CRM is that it helps businesses use technology and human resources gain insight into the behavior of customers and the value of those customers. If it works as hoped, a business can provide better customer service, make call centers more efficient, cross sell products more effectively, help sales staff close deals faster, simplify marketing and sales processes, discover new customers, and increase customer revenues. The organization must look into all of the different ways information about customers comes into a business, where and how this data is stored and how it is currently used.

Role of CRM in banking sectors are as follows:-

Consumers largely select their banks based on how convenient is the location of bank to their homes or offices. The pressures of competitive and dynamic markets have contributed to the growth of CRM in the Financial Services Sector. Analysis suggest that a 5% increase in customer retention can increase profitability by 35% in banking business,50% in insurance and brokerage and125% in the customer credit card market. Private Banks have traditionally viewed themselves as exceedingly Customer Centric offering what they believe to be highly personalized services to the high net worth customers.

CRM Objectives In Banking sector Objective of CRM in Banking Sector are as follows: Responses to campaigns Shipping and fulfillment dates Sales and purchase data Account information Web registration data Service and support records Demographic data Web sales data To spread awareness among the potential as well as existing customer with respect to knowledge about the new CASA deposits schemes and initiatives launched by the bank with an intention to generate cross selling opportunity.

CRM would also make Indian bankers realize that the purpose of their business is to create and keep the Customer and to view the entire business process as consisting of a tightly integrated effort to discover, create and satisfy customer needs.

PURPOSE OF THE PROJECT: ANALYSIS OF PRODUCT PORTFOLIO

MAINTAINING CUSTOMER RELATIONSHIP MANAGEMENT

ANALYSIS AND RECOMMENDATION

ANALYSIS OF PRODUCT PORTFOLIO

MAINTANING CUSTOMER RELATIONSHIP MANAGEMENT

ANALYSIS AND RECOMMENDATION

The purpose of my project is to compare the product portfolio offered by in Axis bank. In my survey, I have chosen three private banks Axis bank, HDFC bank and ICICI bank. I have also chosen three nationalized banks STATE BANK OF INDIA, BANK OF MAHARASHTRA and UNITED BANK OF INDIA and one multi national

corporation, i.e. Standard Chartered. This analysis would enable to understand which bank doing better in terms of providing better and new products and services. We have often seen that different banks are providing same financial products with more or less same facilities but still these banks do not manage to attract new customers. Even if they manage to attract new customers, they are not able to retain those customers. It is because banks which are able to retain customers are not only providing services which are mentioned in the product catalogue but are also doing some extra services for their customers. This is primarily one reason why such banks are facing a high demand for their products and services. This bank have realized that, to stay ahead of in this competitive market one has constantly think from the perspective of customers. In a sector like banking where customers are the pillars of an organization, AXIS or all commercial bank realized how much important of CRM. The Customer Relationship Management (CRM) is essential and one of the vital roles of customers oriented.

SCOP OF THE PROJECT:Today banks realize of Customer Relationship Management (CRM) and its potential to help them acquire new customer retain existing ones and maximize their lifetime value. We are understand that Customer Relationship Management is a sound business strategy to identify the banks most profitable customers and prospect and devote time and attention to expanding account relationship with those customers through individualized marketing, re-pricing, discretionary decision making, customer handling of smiling face and customer service all delivered through the various sales channels that the banks uses channel. In literature, many definitions have been given to describe Customer Relationship Management. The main difference among these definition is technological and relationship aspects of CRM. Some authors from marketing background emphasize technological of CRM while others consider IT perspective of CRM.

From marketing aspect, CRM is define as a combination of business process and technology that seeks to understand a companys customers from the perspective of who they are, what they do and what they are like.{Could well 1998} Technological definition of CRM has also been defined as the market place of the future is undergoing a technology driven metamorphosis.{peppers and Rogers 1995} At this point, close relationship with customers will require a strong coordination between IT and marketing departments to provide a long term retention of selected customers. Therefore, IT and Marketing departments must be work closely to implement CRM efficiently. Therefore, this project highlights how implementation of some of the basis aspects of Customer Relationship Management (CRM) can help banks to retain customer by creating greater customer satisfaction and awareness there by increasing profitability and market share of the bank in long run.

METHODOLOGY:Data collection has been done on the basis of primary source as well as secondary source. Primary sources are the reference generated from customer survey. Secondary sources are the references generated from

To conduct a successful research the selection of method is very important. There are different types of procedure that can be followed. For my project I am following the random sampling method. The following are details of the methodology: Sample Technique:- Random Sampling

Sample Frame:- Data collected by interview Data collection tools:- Questionnaire prepared under the supervision of my faculty guide and industry guide. Sample unit:- Prospective customers having a basic knowledge of banking. Sources of Data:a. Primary sources Data collected from the Bank employees b. Secondary Sources: From various bank websites From various bank leaflets and product brochures

METHDOLOGY FLOW CHART:-