PROJECT ON AXIS BANKBy Group A4 (MBA)

MICROANALYSIS

History of Banking Sector Pre Independence Nationalization Liberalization

Apex Bank – RBI Commercial Banks

Public Banks Private Banks

Co-operative Banks Development Banks

Industry Trends E-cheques Real Time Gross Settlement Electronic Funds Transfer Electronic Clearing Service Automatic Teller Machine Point of Sale Terminal Tele Banking Electronic Data Interchange

Terms Related to the Banking Sector Bank Rate Cash Reserve Ratio Inflation Money Supply (M3) Statutory Liquidity Ratio Repo Open Market Operations

MICROANALYSIS

Bank History Established in 1994 as UTI Bank Was promoted by

Union Trust of India (UTI) Life Insurance Corporation (LIC) General Insurance Corporation Ltd. and its four

subsidies Came up with an IPO in 1998 Launched a co branded International Credit Card

with MasterCard Started e-banking services in 2000 Got listed on London Stock Exchange in 2005 Name changed to AXIS Bank in 2007

PROMOTERS

CORPORATES ASSOCIATED

P J Nayak – Chairman and CEO 2007 – 2009 Shikha Sharma – Current CEO and MD

appointed in 2009 Adarsh Kishore – Non Executive Chairman

CURRENT POSITION OF THE COMPANY

3rd largest private sector bank and 9th largest overall

1042 Branches and 4474 ATMs (as on 30th June, 2010)

  Market Cap. (` cr.) Net Interest Income

Net Profit Total Assets

ICICI Bank 1,11,980.90 25,706.93 4,024.98 3,63,399.71

HDFC Bank 1,00,555.04 16,172.91 2,948.69 1,83,270.78

Axis Bank 56,696.97 11,638.02 2,514.53 1,80,647.87

Kotak Mahindra 29,812.51 3,255.62 561.11 37,436.31

YES BANK 10,844.44 2,369.71 477.74 36,382.50

SWOT Strengths

Competitive and profitable banking franchise High level of services Knowledge of Indian Market Supported by various promoters Services updated by latest technology

Weakness Competitiveness of cost of services Market capitalization is low Positioning UTI fraud Customer service

Opportunities Large retail and corporate market Wide scope in the rural market Competitive banking services Foreign Markets

Threats Established Governments Banks Established and growing MNC Banks Advent and growth of foreign Banks Inflation and rising lending rates

FINANCIAL ANALYSIS

FINANCIAL HIGHLIGHTS

Profit after tax up 38.51% to ` 2514.53 crores Net Interest Income up 35.76% to ` 5004.49

crores Earnings per share (Basic) increased from `

50.61 to ` 65.78. Proposed Dividend up from 100% to 120% Capital Adequacy Ratio stood at 15.80% as

against the minimum regulatory norm of 9% Growth of bank at 38.51% and 69.50%

against sector growth of 20.64% and 14.13% for the previous two years

MARKETING STRATEGY Product

Banking and Savings Corporate Finance Investment and Insurance Loans and Borrowings

Place Branches – 1042 ATMS – 4474

Price Customers get value for money Lower fee charge

Promotions Advertising Print Media Publicity Personal Selling Sales Promotions

HR POLICIES

Training and Development of employees Monitoring and improving employee

performance Compensation and Reward Administration Grievance Handling

DIFFERENTIAL STRATEGY

Service above others Customer based & service oriented Max coverage, innovative products and

services Services provided

Remittance Card EMV based platinum credit card

CSR INITIATIVES

Axis Bank Foundation set up in 2006 Transfers 1% of net profit to the Foundation Supporting 41 NGOs 536 education centers covered 47055 children covered 24 SMEs exclusively focusing on MSMEs

AWARDS & SIGNIFICANT EVENTSBusiness World ,Best Bank Awards

Fastest Growing Large Bank

Business Today,Best Bank Awards 

India's Best Bank, India's Fastest Growing Bank, India's Most Consistent Bank

ET Intelligence Group Best Bank 2009

NDTV Profit Business Leadership Awards 2009 

Best bank Private Sector

Forbes Fab 50 The Best of Asia Pacific's Biggest Listed Company

FE Best Banks Award Best New Private Sector bank,Rank 1

Talisma  Customer Appreciation Award 2009

D & B Best Bank Awards  Best Private Bank

Lafferty Award  Best Annual Report-India

Date Event

DECEMBER‘93 Registered office at Ahmedabad, head office at Mumbai.

APRIL ‘94 First branch of UTI inaugurated at Ahmedabad.

MARCH ‘95 Completes first profitable year.

DECEMBER ‘00 Bank opens 200th ATM, 2nd largest ATM network in the country.

NOVEMBER ‘01 Deposit base for bank crosses ` 10,000 cr.

JANUARY ‘02 Bank’s 100th branch opens at Tuticorin, Tamil Nadu.

MARCH ‘05 Issue of Global Depository Receipts(GDR)

AUGUST ‘06 Launch of Credit card.

JULY ‘07 UTI turns to AXIS.

MARCH ‘07 AXIS Bank launches Platinum Card.

CONCLUSION

Axis Bank has shown substantial growth in the past few years.

The change in name to have seemed to achieved its goal as the net profits and total incomes are growing way over the growth rate of the sector.

It may not be long before Axis Bank overtakes HDFC Bank in terms of Net Income and Total Income to become the no. 2 bank in Private Sector in India.

THANK YOU