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Axis Bank Aapka SolutionBanking On Technology & Market
Segment For Competitive Space
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ABOUT Axis Bank
Dr. Adarsh Kishore Chairman
Smt. Shikha Sharma Managing Director & CEO
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ABOUT Axis Bank
Incorporated as UTI Bank, headquartered in
Mumbai
First Branch inaugurated at Ahmadabad
Completes first profitable year in operation in
1995
Deposit crosses Rs.10bn mark in 1996
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.
Opens its first international branch in
Singapore
Opens Representative Office in Shanghai
Crosses the 2,000 ATM mark in 2006
Opens a Full Licence Bank Branch in Hong
Kong Re-brands itself as Axis Bank
Mumbai, Jul 30 2007 : Join with UTI Bank
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Current Shareholding Pattern of Axis Bank
.
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The Axis banks business is divided into four
segments:
Retail, corporate, treasury and merchant
banking.
Apart from this the bank is also into insurance,
investment banking, credit financing, credit
cards, and depository services etc .
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Services
Retail banking
Deposits schemes
Loans and advances
Personal loans
Housing loans
Cards
Consumer durables
Auto loans
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Personal banking
Accounts
Term deposit
Fixed deposit
Recurring deposit
Cards
Different variant like: Gold plus card, Gold card, Silver & silver
plus cards.
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Corporate banking
Accounts
Normal Current Account
Trust/NGO Savings Account
Services
Private Equity, Mergers & Acquisitions
Advisory Services
Capital Market Funding
E-Broking
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Axis Bank Performance
As on the year ended March 31, 2010 the
Bank had a net profit of Rs 2514.53crores
The bank now has 1035 branches including
extension networks across 30 States and 4
Union Territories.
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The bank also has overseas offices in Singapore,
China, Hong Kong and Dubai.
Crosses the 4,293 ATM mark in Mar 2010
Axis Bank share is now trading at Rs 1359.00 (18th
Aug2010).
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Axis Financial Position
Particulars Mar 07 Mar 08 Mar 09
Deposits 58,785.60 87,626.22 117,374.11
Advances 36,876.48 59,661.14 81,556.77
Share Capital 281.63 357.71 359.01
Net worth 3,402.21 8,770.69 10,214.80
Book Value 120.80 245.19 284.53
Interest earned 4,560.40 7,005.32 10,835.49
Interest expenditure 2,993.32 4,419.96 7,149.27
Net profit659.03 1,071.03 1,815.36
Net NPAs 0.61% 0.36% 0.35%
Total Assets 73,257.21 109,577.84 147,722.06
Return on Assets 1.10% 1.24% 1.44%
Rs in crs.
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Axis Bank Ratio Analysis
Particulars Mar 07 Mar 08 Mar 09
Capital Adequacy Ratio 11.57 13.73 13.69
Net profit margin 12.01 12.22 13.31
Operating Expense / Total Inc 23.26 26.20 24.95
Return on Net worth (%) 19.37 12.21 17.77
Net Interest Income/total funds 4.01 4.74 4.98
Non Interest Income/total funds 0.03 0.02 0.06
Net Profit / Total Funds 1.07
1.17
1.41
Earning per share 23.40 29.94 50.57
Equity Dividend (%) 45.00 60.00 100.00
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Comparative Ratio Analysis
Particulars Axis HDFC
Capital Adequacy Ratio 13.69 13.60%
Net profit margin 13.31 11.35
Operating Expense / Total Inc 24.95 35.06
Return on Net worth (%) 17.77 15.32
Net Interest Income/total funds 4.98 6.86
Net Profit / Total Funds 1.41 1.42
Earning per share 50.57 52.77
Equity Dividend (%) 100.00 100.00
Net Interest margin (%) 3.33 4.40
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Comparative Reach Analysis
Banks Branches ATMs Cities
Axis 1035 4293 515
HDFC 1416 3382 550
ICICI 950 3500 21,408
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Axis Bank
Marketing Overview
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Mission
Customer Service and Product Innovationtuned to diverse needs of individual andcorporate customers.
Continuous technology up gradation whilemaintaining human values.
Progressive globalization and achieving
international standards. Efficiency and effectiveness built on ethical
practices.
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Marketing Objectives
Axis Bank want to achieve following marketingobjectives by the end of the year 2011.
To get the market capitalization 500 Crore
To get the 200 Crore retail investment.
To get 125 Crore Corporate investments. To get the 175 Crore Capital investments.
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Axis Bank Shift In Strategy
A. Corporate assets being the focus areaB. Focus on retail finance segment
C. Physical & Technology infrastructure
improvement
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Current Strategy
A. Managing the changing customer needs
B. Risk Management
C. Dealing with regulations
D. Keeping pace with technology
E. Product and service innovation
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Complementary Strategies for Business
Growth & Development
Strategic grouping and joint partnerships
Tie up with Maruti and Hyundai for selling
car loansTie up with Bajaj Allianz General Insurance
ATM sharing based on alliances such as SBI
and multibank payment networks
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Value Chain Activities
It Outsourcing selected value chain activities
1.Outsourcing recruitments to
monsterindia.com2. Outsourcing print action to Xerox
3. ATM management
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Offensive (unsatisfied) Strategic
Moves
Superior Customer Service
Range of services on ATM machine
Aggressive growth in card business
Expansion of environmental reach
Financial Advisory Services
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Use of Internet
I-Connect net banking service
Internet based electronic payment portal
E-Payment facility for payment of centralexcise & service tax
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SWOT ANALYSIS OF AXIS BANK
STRENGTHS:
Brand Name
Support of various promoters.
High level of services.
Knowledge of Indian market.
WEAKNESS:
Not having good image.
Market capitalization is very low.
Not been fully able to position itselfcorrectly.
OPPORTUNITIES:
Growing Indian banking sectors.People are becoming more service
oriented.
In the global market.
Dissatisfied Customers.
Business advising for smaller Players
THREATS:
Advent of MNC banks
Foreign banks
Govt. banks
Future market trends.
SWOT
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Positioning strategy
Axis bank has positioned itself as a bankwhich gives higher standard of servicesthrough product innovation for the diverse
need of individual & corporate clients. So theywant to highlight following points in theirpositioning statement:
Customer oriented
Service oriented Product innovation
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Features Of Axis Bank
Anywhere Banking
Instant Fund Transfer
Internet Banking At-Par (Multicity) Chequebook
ATM cum Debit Card
Mobile Banking , Mobi
Phone Banking
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TECHNOLOGICAL ADVANCEMENTS
Extensive Network .
Centralized transaction processing system
Centralized Phone Banking system
Mobile Alert Service.
NEFT ( National Electronic Fund Transfer)
Real Time Gross Settlement (RTGS).
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New plans
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Tie-ups with various Govt. Departments:
Govt. Departments:
MCD - Municipal Tax or Fees ePayments
MCD - eTendering Project Sampark - Utility Bill ePayments
Bangalore One Project - Utility Bill ePayments
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Alternate Channels:
ATM Channel
Internet Banking Channel
Mobile Banking Channel
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ATM Channel
All its ATMs are connected to Base24 ATM switch
The Bank through its ATMs offers the following services:
Banking Services Mobile Banking Services
Bill Payment e.g.: BSNL, MTNL
Life Insurance Corporation Premium Payment
Purchase and recovery of UTI Mutual Fund Schemes
through the ATM.
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Internet Banking Channel:
Axis bank provides a number of value-added services on the
Internet banking platform
Services:
a) Funds Transfers
b) Bill payment
c) Shopping
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Mobile Banking Channel:
Debit or credit in your account:
Receive alerts on your mobile phone every time there is a
debit or credit in your Axis Bank account for more than
Rs. 5,000
You can also request for the following information:
- Balance
- Last three Transactions- Know the status of your cheque
- Request security balance in demat account
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Growth Prospects of Axis
Over the last five years, the CAGR (Compound AnnualGrowth Rate) for loan growth for the banking industry
has been 25-26 per cent for Axis Bank it has been
above 40 per cent.
In FY09 its advances grew at the rate of 37.5 per cent. In FY10 they are expected to grow at the rate of 27-28
per cent and in FY11 at 25 per cent.
For the banking industry as a whole, the loan book is
expected to grow at 18 per cent in FY10 and 16 per
cent in FY11.
Thus, Axis Banks fast pace of growth is expected to
sustain over the next couple of years.
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Core Values of Axis
Customer Satisfaction through
Providing quality service effectively and efficiently
Periodic Customer Service Audit
Maximizations of Stakeholder value Success through Teamwork, honesty and People
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Conclusion !!!!
AXIS bank has differentiated itself very well on the basis of
high level service and product quality.
They have successfully implemented the change and due tothis their market share has increased only despite of tough
competition overcome.