Final Project Report

Summer Internship 2011 PGDM 2010-12

Summer Internship Project Reporton

“Axis Bank – An Insight Story”Undertaken at

Axis BankGurgaon

Prepared By:Rohit Jain

(Roll no: PGDM10-12/86)

Company Guide Faculty Guide Mrs. Priyanka Nautiyal Mr. Vipul SinghSr. Manager

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DECLARATION

I, hereby, declare that the information presented here is correct to the best of my knowledge and the analysis has been done as per the norms and guidelines prescribed by the institute. The required concepts and methodology have been utilized to analyze the primary and secondary data collected to reach the conclusion of the report.

The work presented here is not duplicated from any other source and also not submitted earlier for any other degree/diploma to any university.

Rohit Jain

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ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guide Mrs. Priyanka Nautiyal for her able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

This project is an attempt to share my experience & learning in a short span of time with Axis Bank.

I would also like to thank the entire team of Axis Bank for the constant support and help in the successful completion of my project.

Also, I am thankful to my faculty guide Mr. Vipul Singh of my institute, for hiscontinued guidance and invaluable encouragement.

Rohit Jain

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TABLE OF CONTENTS

Chapter Title Page No.

1. Executive Summary 5

2. Project Introduction 6

3. Industry Profile 7-9

3.1 Company Profile 10-21

3.1.1 Products and Services of Axis Bank 22-26

3.2 Priority Banking 26-29

3.2.1 Products & Services of Priority Banking 30-56

4. Research Methodology 57

4.1 Research Objective(s) 57

4.2 Research Design 58

4.3 Sample Design 59

4.4 Scope of the Study 60

4.5 Limitations 61

5. Data Collection 62

5.1 Primary Data 62

5.2 Secondary Data 62

6. Findings & Analysis 63-73

7. Recommendations 74-75

8. Bibliography 75

9. Questionnaire 76-78

10. Synopsis of The Project 78-79

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CHAPTER -1

EXECUTIVE SUMMARY

Axis Bank Ltd., formerly UTI Bank Limited, operates in four segments:

Treasury, Corporate/Wholesale Banking, Retail Banking and Other Banking Business

The Treasury segment includes investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account and for customers and central funding.

The Corporate/Wholesale Banking includes corporate relationships not included under Retail Banking, corporate advisory services, placements and syndication, management of public issue, project appraisals, capital market related services and cash management services.

The Retail Banking segment constitutes lending to individual/small business subject to the orientation, product and granularity criterion and also includes low-value individual exposures not exceeding the threshold limit of 5, 00, 00,000 as defined by Reserve Bank of India. It also includes liability products, card services and Internet banking services.

In India, all the retail banking segments are expected to witness a tremendous growth owing to the low cost of borrowing, changing customer attitudes towards borrowing and optimism regarding economic growth. Retail lending constitutes just 12.36% of the Indian banking system.

All around the world retail lending has been an established market however its rise in emerging economies like India has been of recent origin. If recent statistics on consumer finance are any indication, the last few years have been trend setting. The traditional debt-averse, middle-class Indians who lived within their thrifty means, never to venture beyond their means, seem to have given way to a new middle-class that is free from all inhibitions regarding conspicuous consumption. Unlike its predecessors, the middle-class of today has donned a new attitude; it attaches no social-stigma in taking loans for spending.

Apart from the above, one major service launched in the banking sector, concentrating on a particular segment of its customers is: PRIORITY BANKING

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CHAPTER -2

PROJECT INTRODUCTION

As a part of curriculum the students of PGDM have to undergo Summer Internship Program (SIP) wherein a student gets the knowledge about practical worklife, how the work is done in companies, how to get acquainted with working conditions and other many such things, etc. The main aim behind this program is that students get some work experience which will prove helpful when they face job interviews after they complete their studies. This program is generally provided by a company and it lasts for at least two months. Students as per their specialization can apply for SIP with the help of their college’s Placement Cell and get the opportunity to work in a company.

As a management student I also had to undergo SIP. I got the opportunity to complete this program in AXIS BANK LTD. for two months. Axis bank is one of the leading banks in private sector in India.

First of the two months has been devoted to training. My training started with the session on need and importance of banking system and then information about products and services which are provided by the Axis bank. From time to time I am learning some routine work done in the bank like RTGS, cheque clearing, issuing loan to the customers, locker facilities, opening Fixed Deposits etc. In the second month I have analyze all the data collected by me and other priority services provided to the priority customers because I am in the priority department.

The wholesale banking operations consist of the following transactions:

1. Opening of Account

2. Issue of Cheque book

3. International Debit / Credit Card

4. Issue of Demand Draft (DD)

5. Net banking

6. E-mail statement

7. Phone banking

8. Insta Query

9. Insta Alert

10. Passbook

11. Quarterly Account Statement

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12. Loan Facility CHAPTER -3

INDUSTRY PROFILE

WHAT IS BANK?

A bank is a financial institution whose primary activity is to act as a payment

agent for customers and to borrow and lend money.

An institution where one can place and borrow money and take care of financial affairs;

The first modern bank was founded in Italy in Genoa in 1406, its name was (Bank of St. George).

EVOLUTION OF BANKING SYSTEM IN INDIA

The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.

Evolution of Banking System can be summarized in following phases:-

Phase-1

General Bank Of India 1786(First Bank)

Reserve Bank Of India 1935

The Banking Company Act 1949

Slow Growth And Periodic Failure

Phase-2

Nationalization Of Imperial Bank Of India And Formation Of Sate Bank Of India(1955)

Nationalization of SBI and Subsidiaries (1960)

Insurance cover extended to deposits

Creation of credit guarantee corporation

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Creation of regional rural banks

Phase-3

New phase of Indian Banking System with the advent of Indian Financial & Banking Sector

Entry of Foreign Banks

Phone Banking and Net-Banking

Shelter from external macroeconomic

System become more convenient and swift

Major World Events in Banking Industry

Introduction of Paper Money- Bank Notes

Foundation of First Joint Stock Company (Dutch East India Company)-1602

The Bank of North America Founded – 1781

Rothschild family founds Euro wide banking- 1800

The Wall Street Crash of 1929, 9,000 banks close, wiping out a third of the money supply in the United States- 1930-33

The largest bank failure in history, The Washington Mutual collapses- 2008

Types of Banks

Central Bank – Every country has its central bank. Reserve Bank of India is the central bank of our country. It does not deal directly with the public. It accepts deposits from other banks and lends money to them. It is known as Banker’s Bank. It supervises and regulates the entire banking system in the country.

Commercial Bank – They accept deposits from the public and give loans to customers.They provide short term financial assistance to businessmen and traders. They pay interest on deposits and charge higher interest on loans. State Bank of India is the largest commercial bank of India.

Exchange bank- They provide foreign exchange and other facilities to importers and exporters. Citibank, bank of America, Hong Kong Bank.

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Industrial Bank – They provide long term and medium term loans to industrial concerns. They provide not only finance but technical and administrative assistance. They underwrite shares and debentures issued by industrial enterprises. Ex. IDBI, IFCI.Agricultural Bank – These provide financial assistance to farmers. They grant loan term loans against mortgage of land and are so called mortgage banks.

Cooperative Bank – They are formed both in villages and in cities. Rural cooperative banks provide credit facilities to farmers. Urban cooperative banks encourage savings and grant loans to their members.

Currently, India has:

88 commercial banks, out of these there are:

27 public sector banks (that is with the Government of India holding a stake)

31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and

38 foreign banks

According to a study by Dun & Bradstreet (an international research body)—"India's Top Banks 2008"—there has been a significant growth in the banking infrastructure.Taking into account all banks in India, there are overall

56,640 branches or offices, 893,356 employees and 27,088 ATMs.

FUNCTIONS OF BANKS

Accepting Deposits from public/others (Deposits).

Lending money to public (Loans).

Transferring money from one place to another (Remittances).

Acting as trustees.

Keeping valuables in safe custody.

Government business.

MAJOR PLAYERS

HDFC BANK

ICICI BANK

STANDARD CHARTERED BANK

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HSBC BANK

3.1 COMPANY PROFILE

Introduction to Axis bank

Axis Bank Limited, formerly UTI Bank, is a financial services firm that had 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), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company. UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.

Axis Bank is the first bank in the country to provide a secure debit card-based payment service.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. At the end of September 2010, The Bank has a very wide network of more than 1281 branches and Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs (as on 31st March, 2011).

FACT SHEET

IndustryBankingFinancial services

Founded 1995Headquarters Mumbai, India

Key people

Adarsh Kishore(Chairman)Shikha Sharma(MD & CEO)

Products

Investment BankingCommercial BankingRetail BankingPrivate BankingAsset ManagementMortgagesCredit Cards

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WHY THEY CHANGE THEIR NAME FROM UTI TO AXIS BANK

Axis Bank is born out of the pressure on UTI Bank to shed its brand name after the split of the erstwhile UTI.

The reason in the change in the bank’s name follows a year-long tiff between UTI Mutual Fund and the bank over the use of the brand name, UTI. After 2008 UTI bank was not prepared to accept terms and conditions (including royalty) from UTI AMC to use the name.

According to the deal between the government and the fund's four sponsors-SBI, LIC,PNB and Bank of Baroda- UTI's nine subsidiaries could use the brand name for free till January 2008.

Post January 2008 UTI bank, UTI securities, UTI technological services, UTI investor advisory services had to pay royalty to the fund house.

UTI mutual fund had suggested that the bank continue using the same brand beyond 2008 sans royalty fees, but wanted a non complete clause to be built in, besides seeking a joint brand promotion.

However, UTI bank opted for a new name and appointed a committee to select an appropriate name.

The committee short listed around 50 names before selecting "Axis".

We had to change our name to have our own brand and identity. we had to give up the name of UTI after using it for 13 years as we were not prepared to accept terms and conditions from UTI AMC to use the name -PJ Nayak ,chairman and CEO Axis bank.

Our central message is that nothing has changed except the name. The continuity is maintained through the color. WE chose AXIS as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal. -Hemant kaul, president retail banking, UTI bank.

The change in name was consider for avoiding confusion as several unrelated entities were using the UTI brand. ED(corporate strategy) R Ashok Kumar.

The bank has chalked out a strong communication campaign over the year. On August1,the bank will launch a nationwide advertisement campaign with a catchline, 'Twins both equal'.

The entire branding exercise is expected to cost the bank around Rs. 50 crores.

Another huge task the bank proposes is to change the signages across 600 offices and 2457 ATM's in 346 cities, towns and villages.

The signages across eight major cities including Delhi, Bombay, Kolkata and Hyderabad would be changed immediately and in other 250 cities, by the end of

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September.

Vision 2015 and Core Values

VISION 2015 To be the preferred financial solutions provider excelling in customer delivery

through insight, empowered employees and smart use of technology.

Core Values Customer Centricity Ethics Transparency Teamwork Ownership

AWARDS & RECOGNITIONS

Following are the recognitions received by the Bank during the Year 2009:-

Business 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

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SWOT ANALYSIS

1. STRENGTH

• Extremely Competitive and Profitable Banking Franchise • Sound Technological Platform with Centralized Database and Operations• Support of various Promoters

2. WEAKNESS

• Not having Image UTI (fraud) • Higher cost • Market Capitalization Very Low

3. OPPORTUNITY • Large retail and corporate market • Wide scope in rural India • Other Activity (Non Banking Activity) • People have become more service oriented

4. THREAT

• Other better savings and investment options available (like Insurance, Mutual fund, Real-estate, Gold) • Government Rules and Regulations • Very tough competition with other Private sector (ICICI Bank, HDFC bank) or public sector (BOB, PNB) banks.

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Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 23.78%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.

The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing obligations and commitments to the investors, which it will uphold.

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Milestones

Mar-08 Axis Bank launches Platinum Credit Card, India's first EMV chip based card

Dec-07 Axis Bank gets AAA National Long-Term Rating from Fitch Ratings

Sept-07 Axis Bank ties up with Banque Privée Edmond de Rothschild Europe for Wealth Management

July-07 UTI Bank re-brands itself as Axis Bank

July-07 UTI Bank successfully raises USD 1050 million

July-07 UTI Bank ties up with Tata Motors Ltd. for Car Loans

June-07 UTI Bank's expansion into Asia supported by FRS

May-07 UTI Bank launches 'Spice Rewards' on the bankcards - India's first-ever merchant-supported rewards program

April-07 UTI Bank opens a Financial Services Category I Branch in the DIFC in Dubai

Mar-07 UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans

Mar-07 UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the country

Mar-07 UTI Bank launches Car Loans in association with Maruti Udyog Ltd

Mar-07 UTI Bank opens a Full Licence Bank Branch in Hong Kong

Feb-07 Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank Co - Branded Credit Card Exclusively For Small Road Transport Operators (SRTOS)

Feb-07 UTI Bank announces the launch of its Meal Card

Feb-07 UTI Bank announces the launch of its Gift Card

Feb-07 LIC Premium payment now through UTI Bank Branches

Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov-06 UTI Bank opens Priority Banking Lounge in Pune

Sep-06 UTI Bank launches operations of UBL Sales, its Sales Subsidiary - Inaugurates its first office in Bengaluru

Aug-06 UTI Bank announces the launch of its Credit Card Business

Aug-06 UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market

Aug-06 UTI Bank Business Gold Debit Card MasterCard Launched - Designed for business related spending by SMEs and self employed professionals

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Aug-06 UTI Bank announces the scheme of issuance of "Senior Citizen ID Card" in association with Dignity Foundation

Aug-06 UTI Bank rolls out its 2000th ATM

July-06 UTI Bank opens Representative Office in Shanghai

May-06 UTI Bank and LIC join hands to launch an Annuity Card for group pensioners of LIC

May-06 UTI Bank ties up with Geojit Financial Services to offer Online Trading service to its customers

Apr-06 UTI Bank opens its first international branch in Singapore

Jan-06 UTI Bank and UTI Mutual Fund to launch a new service for sale and redemption of mutual fund schemes through the Bank's ATMs across the country

Dec-05 UTI Bank wins International Financing Review (IFR) Asia 'India Bond House' award for the year 2005

Oct-05 UTI Bank extends banking services to the rural milk producers in Anand and Kheda districts in Gujarat

July-05 UTI Bank and Visa International launch Mobile Refill facility - Anytime, Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India

May-05 UTI Bank and Bajaj Allianz join hands to distribute general insurance products

Apr-05 UTI Bank launches Smart Privilege - a special bank account designed for women

Mar-05 MTNL ties up with UTI Bank for payment of telephone bills through the Bank's ATM network

Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million through Global

Mar-05 Depositary Receipts (GDRs)

Feb-05 UTI Bank appointed by Government of Karnataka as the sole banker for the Bangalore One (B1) project

Feb-05 UTI Bank launches a powerful version of Kisan Credit Card

Jan-05 UTI Bank ties up with Remit2India to launch the Remittance Card

Mar-04 UTI Bank enables premium payment of LIC policies through its ATMs.

Feb-04 Bilateral arrangement between State Bank of India (and its 7 associate member banks) and UTI Bank. comes into force with the commencement of operations (as on 3rd February '04) of the combined network of over 4000 ATMs

Feb-04 UTI Bank (by pursuing a proactive strategy of forging bilateral agreements and being a progressive player in the multi-lateral consortiums for shared

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ATM network) offers its customers access to over 7000 ATMs across the country - the largest to be offered by any bank in India so far.

Dec-03 Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This ATM is at the highest altitude in India.

Sep-03 The Bank's ATMs across the country crosses the thousand mark

Sep-03 Bank launches the Travel Currency Card.

Aug-03 The Bank's Debit Card crosses the one million mark.

Aug-03 Total Advances cross Rs 7,000 Crore.

May-03 Bank declares a net profit of Rs 192.18 crores for FY03, a growth of 43% over the previous year

Mar-03 Bank signs Agreement with Employees Provident Fund Organization (EPFO) for disbursement of Pension

Mar-03 Bank crosses the 800 ATM mark

Mar-03 The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs. 164.00 crores, through a

Mar-03 Preferential offer to Life Insurance Corporation of India (now constituting 13.54% of

Mar-03 the Bank's expanded equity), Citicorp Banking Corporation, Bahrain (holding 3.84%), ChrysCapital I,

Mar-03 LLC, Mauritius (holding 3.84%) and Karur Vysya Bank Ltd.(constituting 1.00%) The Bank also

Mar-03 Increases the authorised share capital of the Bank from Rs. 230 crores to Rs. 300 crores.

Feb-03 Bank, in a pioneering move, launches the AT PAR Cheque facility, free of cost, for all its Savings Bank customers.

Feb-03 Bank wins mandate to set up 14 ATMs at the Western Railway stations along the Mumbai division.

Oct-02 Bank launches Corporate iConnect? - the Internet Banking facility for Corporates

Aug-02 Bank signs MoU with BSNL regarding bill collection services across the country through both online and offline channels.

Apr-02 Bank opens its 500th ATM

Mar-02 Deposits Cross Rs.12, 000 Crore

Jan-02 The Bank's 100th branch opens at Tuticorin,Tamilnadu

Jan-02 The Bank opens an ATM at the Gol Dak-Khana, i.e. the New Delhi GPO, making it the first instance of a commercial bank setting up an ATM at any post-office in the country.

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Dec-01 Total Advances cross Rs 5,000 Crore

Nov-01 The deposit base for the Bank crosses Rs. 10,000 Crore

Sep-01 Private placement of 26% stake in the Bank to CDC Capital Partners. UTI holding reduces to 44.88%

Aug-01 Bank signs MoU with India Post for introducing value added financial products and services to customers of both organizations, including setting up of UTI Bank ATMs in post offices.

July-01 Bank ties up with Govt of Andhra Pradesh for collection of commercial tax

Dec-00 Bank opens its 200th ATM. It becomes the 2nd largest ATM network in the country, a position held even today.

Oct-00 Bank becomes fully networked

July-00 E-commerce initiatives announced

July-00 Financial Advisory Services offered beginning with marketing of US 64

Apr-00 UTI Bank calls off its proposed merger with Global Trust Bank and surges ahead on its own.

Apr-00 Bank launches its Internet banking module, iConnect Retail loans introduced for the first time by the Bank

Mar-00 Profits cross Rs 50 crore mark for the first time.

Feb-00 Bank adopts Finacle software from Infosys for core banking

Jan-00 Dr.P.J Nayak takes over as Chairman and Managing Director from Shri Supriya Gupta.

Sep-99 Cash management services (CMS) launched, Co branded credit card launched

Mar-99 Deposits cross Rs.3000 crores

Sep-98 UTI Bank goes public with a Rs. 71 crore public issue; Issue over-subscribed 1.2 times, over 1 lakh retail investors. UTI holding reduces to 60.85%

Jun-96 Crosses Rs.1000 crore deposit mark

Mar-95 Completes first profitable year in operation

Apr-94 First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan Singh, Hon'ble Finance Minister, Government of India.

Dec-93 UTI Bank comes into being

Dec-93 Registered office at Ahmedabad; Head office at Mumbai

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Board of Directors

The members of the Board are:

Dr. Adarsh Kishore Chairman

Smt. Shikha SharmaManaging Director & CEO

Shri S. K. ChakrabartiDeputy Managing Director

Shri J.R. VarmaDirector

Dr. R.H. PatilDirector

Smt. Rama BijapurkarDirector

Shri R.B.L. VaishDirector

Shri M.V. SubbiahDirector

Shri K. N. PrithvirajDirector

Shri V. R. KaundinyaDirector

Shri S. B. MathurDirector

Shri M. S. Sundara RajanDirector

Shri S. K. RoongtaDirector

Shri Prasad R. MenonDirector

Shareholding Pattern

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As on 30/09/2010

Sr. No.

Name of the ShareholdersNo. of shares held

% stake to Total

A Promoter Shareholding    

1Administrator of the Specified Undertaking of the Unit Trust of India - (SUUTI)

    97,224,373 23.78

2 Life Insurance Corporation of India     39,262,917 9.60

3 General Insurance Corporation of India       7,725,000 1.89

4 The New India Assurance Company Limited       4,102,455 1.00

5 National Insurance Company Limited       2,340,901 0.57

6 The Oriental Insurance Company Limited       1,492,462 0.37

7 United India Insurance Company Limited       1,197,979 0.29

Total promoter shareholding A    153,346,087 37.51

B Domestic shareholders  

8 Indian FIs and Banks       6,057,313 1.48

9 Indian MFs     16,403,478 4.01

10Others (Indian bodies corporate/Indian residents/Directors/relatives/CM/Trust/Banks)

    44,894,743 10.98

Total domestic shareholding B     67,355,534 16.47

C Foreign shareholders  

11 FIIs    152,238,989 37.24

12 FDI (GDR)     35,468,725 8.68

13Foreign Bodies - DR Foreign Banks/Foreign National/NRIs

         431,878 0.11

Total Foreign shareholding C    188,139,592 46.02

Total A+B+C    408,841,213 100.00

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Credit Ratings

Fitch India w.e.f. 20th October, 2010

Subordinated Debt AAA(Ind) Stable Outlook

Perpetual Tier I AA+(Ind) Stable Outlook

Unsecured Subordinated Upper Tier II AA+(Ind) Stable Outlook

Subordinated Lower Tier II AAA(Ind) Stable Outlook

Support Rating 3

Individual Rating C

ICRA Ltd.

Certificate of Deposits A1+

Subordinated Debit LAAA

Upper Tier II Bonds LAA+

Hybrid Tier I LAA+

CRISIL

Certificate of Deposits P1+

CARE Ratings w.e.f. 11th November 2008

Subordinated Tier II Bonds AAA

3.1.1 PRODUCTS AND SERVICES OF AXIS BANK Axis Bank offers the following services:-

Personal Banking

Accounts Deposits

Loans Cards

Agri & Rural Banking

Agri Business Microfinance Financial Inclusion Rural Banking

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Forex Investments Insurance Payment Other Services

Corporate Banking

Accounts Credit Capital Market Treasury Cash Management Services Govt Business

NRI Banking

Accounts Credit Remittances Services

Priority Banking

Accounts Deposits Loans Cards Investments Payments Remittances Other Services

24X7 Banking

PERSONAL BANKING

ACCOUNTSEasy Access Savings Account Krishi Savings AccountPrime Savings Account Salary AccountWomen’s Saving Account Priority AccountDemat Account Senior Citizen’s AccountDefence Salary Account Trust/NGO Salary AccountAzaadi – No frills Account Pension saving Account

DEPOSITSFixed Deposits Recurring DepositsEncash 24 Tax Saver F.D.

LOANSHome Loan Car LoanPersonal Loan Loan Against Property

CARDS

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Credit CardsInfinite Credit Card Shriram Credit CardTitanium Smart Traveler Credit Card Signature Credit CardPlatinum Advantage Credit Card Platinum Credit CardEasy Credit Card Gold Credit CardSilver Credit Card E- shop CardCorporate Credit Card Trust Chemists Credit CardDebit CardsPriority Platinum Debit Card MyDesign-Image Debit CardTitanium Rewards Debit Card Classic Debit CardGold Debit Card Gold Plus Debit CardBusiness Gold Debit CardPrepaid CardsTravel Currency Card Payroll CardCorporate Gift Card Gift CardRewards Card Remittance CardMeal Card Annuity Card

FOREXTravel Currency Cards India Travel CardOutward Remittances Foreign Currency Travellers ChequesForeign Currency Cash

INVESTMENTSMohur Gold Online TradingMututal Funds Demat Account8% Saving Bonds

INSURANCELife InsuranceMax New York life Gain Plus Max New York life Whole Life ParticipatingMax New York life Partner Plus Max New York life Gain Platinum ProtectMax New York life Shiksha Plus II Max New York life Flexi fortuneMax New York life college PlanHealth InsuranceFamily Health Silver HealthHomeSafe Home Sage Home plusMotor Insurance Jewellery InsurancePersonal Accident Travel companionCritical IIllness Business Advantage

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PAYMENT TRANSFERSBill PayElectronic Clearing Service Outward RemittanceTax PaymentsDirect Tax Payments Pension Disbursement

Other ServicesPrepaid Mobile Recharge LockerOnline shipping IPO SmartE-Statement

Accounts

EasyAccess Savings Account

The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. EasyAccess Savings Account gives you instant access to your money anywhere, anytime.

You can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers.

Krishi Savings Account

Axis Bank offers a unique savings account which is easy to operate and allows you to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and others employed in the allied agricultural activities sector.

This account is offered with the requirement of maintaining the half-yearly average balance of Rs 1000 only.

Prime Savings Account

At Axis Bank, we have always strived to pace our products with the growing needs of our customers. The Prime Savings account has therefore been created with your specific financial requirements in mind.

You can avail of all these services with a minimum average balance of Rs 25,000 in metro/urban/semi-urban centers and Rs 10,000 in rural centers.

Salary Account

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Axis Bank, believe in providing total financial solutions to the employer as well as the employee, through the salary relationship. We understand that each employee in an organization is at a different station of life having different financial and banking needs.One solution may not fit all. Therefore, each employee in an organization is offered a zero balance salary account and associated privileges commensurate with her/his net monthly salary.

Women's Savings Account

The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Women's Savings Account gives you instant access to your money anywhere, anytime.

Priority Account – Resident

A service that would ensure not only the highest level of Priority but also preferential treatment to selected customers.

Demat Account

Axis Bank is a registered member (Depository Participant) of NSDL. In this system, physical security holdings are converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first depository. You can avail of all the depository-related services by just opening an account with NSDL through Axis Bank.

Senior Citizen's Account

It has been designed keeping in mind the fact that a Senior citizen's banking requirements are wholly different and require special consideration.

Defence Salary Account

It is a product designed keeping in mind how tough a life in the Defence Forces is. Not only does it come to you absolutely free, no minimum balance is required either.

Trust/NGO Savings Account

It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organizations can devote all of their time to their noble motivations.A Savings Account for your Trust with Average Quarterly Balance (AQB) of Rs. 25,000.

Pension Savings Account

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It is specifically, designed for Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly different and require special consideration

3.2 PRIORITY BANKING

In a segmentation study undertaken in 2002, it was found that 2.72 %of Axis Bank’s retail customers contribute to nearly 49.05% of the total retaildeposits.

The clients that bring a larger share of business to the Bank expect a differentiatedstandard of service. This also makes business sense, as more often than not, most ofthe business in a particular branch flows from a handful of clients.

Hence, Priority Banking was launched in order to cater to the needs of the high networth customers within the bank.

The product has at its core the thought of providing differentiation in service andtreatment to a segment of its customers with a view towards:

Customer retention,

Customer acquisition and

Cross selling.

The services made available in this branch:

Plush Lobby with waiting area, plasma TV. Etc. Business Center- for outstation customers travelling to the city for business, equipped with Internet, fax and conference call facilities. Meeting/ discussion rooms for the customers to bank with their Relationship Manager in comfort and confidentiality. Internet access zone

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Children’s play area- for keeping the customer’s children engaged while they are being advised on their banking/ investments. Conference area- to hold small events, private screenings, customer meets at the branch on a regular basis. Lifestyle privileges are an integral part of the Priority Banking offering.

Priority Banking Lounge

As a Priority banking customer you will have access to an exclusive 'Priority BankingLounge' at branches. This will allow you to conduct your financial transactions inutmost comfort and confidentiality through an exclusive Relationship Manager.

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Dedicated Relationship Manager

You will enjoy access to a dedicated Relationship Manager who will be your onepoint contact at branch for all your banking transactions thus ensuring that you wouldneither have to move from one counter to the other nor stand in queues to await yourturn.

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3.2.1 PRODUCTS & SERVICES OF PRIORITY BANKING

Accounts

Priority Account - ResidentWe present to you Axis Bank - Priority. A service that would ensure not only the highest level of Priority but also preferential treatment to selected customers like you.

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Personalized Services

Relationship Team You will enjoy access to Relationship Team who will be your point of contact

at branch for all your banking transactions thus ensuring that you would neither have to move from one counter to the other nor stand in queues to await your turn.

Preferred recognition across branches Complimentary three Zero Balance Priority accounts in family relationship Personalized cheque book with unlimited at-par facilities Invitation to events Annual Gifts

Convenience

Complimentary Anywhere Banking Priority Processing of all requests Free Mobile Banking Free Internet Banking Monthly Mutual Fund Navigator and Market Reports Monthly e-statements Consolidated physical quarterly statements

Preferential Pricing

Complimentary Demat Account Preferential lending solutions Discounts On Travel Cards Preferential rates on Forex services Gold Bars at preferential rates

Services on Priority

Virtual Relationship Manger Preferred recognition across all Axis Bank branches Separate queue at CPU for account opening Priority at Call centre Flexible Eligibility Criteria

Eligibility Criteria (Individual)

Minimum Average Quarterly Balance in Savings Rs. 2 lakhs

Client with Term deposit Relationship Rs. 10 lakhs &

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above

Client with Weighted deposits (Savings Account,Current Account, Term Deposit) (AND/OR)

Investment in Mutual Fund & Life Insurance (with minimum Rs.50,000 in Savings)

Rs. 5 lakhs & above

Eligibility Criteria (Family)

Family of 4 with Total Weighted Deposits (Savings Account,Current Account, Term Deposit)

Investment in Mutual Fund & Life Insurance (with minimum Rs. 1 lakh in Savings)

Rs.10 lakhs & above

Special Benefits to Priority Salary Customers

Unlimited Cheque book facility DD/PO free of any charge 3 per month Complete Waiver on annual charges for Priority Platinum Debit Card Complete Waiver on 1st year Annual Maintenance Charges on a Demat A/c and

50% off on Annual Maintenance Charges from 2nd Year onwards

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Priority Platinum Debit Card

Complimentary Exclusive Platinum Debit Card Enhanced ATM Withdrawal limit of Rs. 1 lac Higher Transaction limit (POS) limit of Rs.4 lacs Enhanced Personal Accident Insurance Cover of Rs. 5 lacs Exclusive benefits on Dining, Health, Personal Care ,Apparels, Jewellery ,Services &

Travel Enhanced Lost Card liability Protection Zero Fuel Surcharge Complimentary access to Airport Lounges at select Domestic & International Airports

in India

Features

Free usage at all Visa ATMs The Priority Platinum debit card gives you free usage at all Visa ATMs in India, even at ATMs of other banks.

Zero Fuel Surcharge On using your Priority Platinum Debit Card for fuel purchases, you get a full waiver of fuel surcharge that would be normally applicable otherwise.

Instant Identification The aesthetically designed Priority Platinum debit card with the Axis bank Priority logo would identify you as our Axis Bank Priority customer at any of our branches across India where the service is being offered. It would also help you avail of the various privileges we offer from time to time.

Higher Transaction Limits Especially for Axis Bank Priority Platinum Debit cardholders, the daily ATM Cash Withdrawal Limit has been enhanced to Rs 1,00,000 per day at all Axis Bank ATMs. The daily POS limit is Rs 4,00,000 at Merchant Establishments, subject to the balances held in the account.

No issuance Charges on Primary and one add-on card No issuance Charges and get waiver on Annual charges of Rs 200 subject to Rs 50,000 POS transactions in a year.

Enhanced Insurance Coverage* The Axis Bank Priority Platinum Debit Card comes with special insurance features that protect you and your loved ones.

Zero Lost Card Liability As an Axis Bank Debit Card customer, you will be insured for risk of loss due to fraudulent use of a lost or stolen or missing debit card. All you need to do is communicate the loss of your card by calling our 24-hour customer service number.

Purchase Protection All consumer durable goods purchased using the debit card are insured against fire, natural calamity, burglary and housebreaking up to 90 days from the date of purchase. You will be eligible for a combined lost card liability and purchase protection of up to Rs 1.5 lakh.

Personal Accident Cover In the unfortunate event of loss of life in a mishap, the

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customer's beneficiaries will receive the benefit of accident insurance of Rs 5 lakh.

Exclusive Offers We regularly tie up with leading restaurants, shopping establishments, hotels, resorts etc, to bring you exclusive discounts and offers from time to time. These offers would be valid only when you utilize your Priority Platinum Debit Card to make the payments.

Rewards Program The Priority Platinum Debit Card Rewards Programme allows customer to earn reward points on your spends at merchant outlets. The accumulated reward points can be redeemed for gift coupons from leading retailers, restaurants, international brands, leather products, cosmetics etc. You will earn 1 reward point for every Rs 100 of domestic spends and 3 reward points for every Rs 100 international spends done using your Priority Platinum Debit Card.

24-Hour Emergency Helpline You can call our Emergency Helpline for Card Blocking 91-22- 67987700. Our Customer Service Executives will assist you.

Conditions Apply

Other/Correspondent Bank commission and fees will be charged wherever applicable.

Axis Bank does not guarantee returns on any of the investments. Axis Bank Priority is offered in select Branches/Cities only. Axis Bank is entitled in its absolute discretion to provide or refuse all loan, credit card

and credit facilities. Any offering under Axis Bank Priority will be subject to a formal application being

received for the same and at the absolute discretion of the bank. All standard terms, conditions of the bank/RBI apply.

Deposits

Fixed Deposits

Axis Bank offers you simple reinvestment Fixed Deposits which can be opened with a minimum investment of Rs 10,000. You can make additions to your deposit in multiples of Rs 1,000 each. The tenure of your deposit must be a minimum of 6 months.

Deposit Schemes

Reinvestment Deposits

In a reinvestment deposit, the interest accrued to your deposit at the end of each quarter

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is invested along with the principal. The tenure of your deposit must be a minimum of 6 months. At the end of the quarter, the interest and the principal are both rolled over, and the interest is calculated on the total sum. Income tax is deducted at source.

Automatic Rollover

As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on maturity (for both the principal and interest). You can select this option in the Account Opening Document (AOD). The options available are:

Rollover only Principal:Only the principal amount will be rolled over. The interest will be either credited to your designated account or paid out.

Rollover Principal and Interest accrued in Reinvestment Deposit:This will rollover both the deposit and the interest accrued for the same tenure at the interest rate applicable on the maturity date.

On or before the maturity date, you can make the following changes in the rollover instructions of the deposit:

Change in tenure Change in maturity instructions Change in payment instructions Change in principal (only reduced amount) Change rollover of Principal to rollover of Principal + Interest, or vice versa.

Withdrawals

All encashments or withdrawals of Fixed Deposits can only be made at the branch where the deposit was booked.

Method of calculation of interest

For deposits with tenure of 6 months & above, interest is calculated on a quarterly basis.

Interest earned during the previous quarter is added to the Principal for calculation of interest. Interest on this amount is calculated every quarter.

For deposits with tenure of below 6 months, interest is calculated at Simple Interest. Please note that the period of Fixed Deposit is considered in number of days.

In the event the depositor chooses to receive the periodic interest payments on a quarterly basis, interested is calculated and paid on quarterly rests.

On premature withdrawal of the deposit, interest shall be paid only for the period for which the deposit is maintained with the Bank and at the rate applicable for such period.

Tax at source is deducted as per the Income Tax regulations prevalent from time to time.

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The Growth Chart of Axis Bank’s Priority Banking Segment

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From the year 2006, the revenue from Priority Banking is continuously increasing.In 2006, the revenue was Rs.11 crs which shooted up to Rs. 22 crs. In 2008, therevenue was Rs. 29 crs. In 2009, the revenue was Rs. 35 crs. In 2010, the revenue was Rs. 50 crs. And the expected revenue from the 2011 is calculated to be Rs. 70 crs.

Recurring Deposits

Features

Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter.

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Recurring Deposit accounts can be opened for a minimum period of 12 months and in multiples of 12 months thereafter, upto a maximum of 120 months.

The amount of installment once fixed, cannot be changed . Installment for any calendar month is to be paid on or before the last working day of

the month. Where there is delay in payment of installment, one can regularise the account by paying the defaulted installment together with a penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a month will be treated as full month for the purpose of calculating the penalty.

The total amount repayable to a depositor, inclusive of interest, depends on the amount of monthly installments and the period of deposit.

Encash 24

The Encash 24 (Flexi Deposit) gives you the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to your Savings Account providing you the following unique facilities:

Maximum Returns

Your money is no longer idle. As soon as the balance in your Savings Account crosses over Rs. 25,000, the excess, in multiples of Rs. 10,000 will be transferred automatically to a higher interest earning Fixed Deposit Account. The maturity of fixed or term deposits formed as a result of transfer of money from the Savings Bank account will be for a maximum period of 181 days and the interest will be calculated on simple interest rate basis.

Maximum Liquidity

The money parked in Fixed Deposits as a result of the above mentioned sweep out from your Savings account can be easily accessed by issuing a cheque, withdrawing through ATM etc. This amount is automatically reverse swept from the most recently formed Fixed Deposit in units of Rs. 5,000 to the Savings account whenever the balance in your Savings account falls below Rs. 25,000. The amount broken form your Fixed Deposit will earn interest rates at the applicable rate for the period that the deposit was held with the Bank. The remaining amount of Fixed Deposit will continue to earn the contracted rate of interest.

Auto Renewal

On maturity of your linked Fixed Deposit, the Bank will automatically renew it for a maximum period of 181 days.

How do I sign up for Encash 24?

All you have to do is to open a Savings Account and sign up an ENCASH 24 declaration form. A minimum average quarterly balance of Rs 10,000 must be maintained in your Savings Account to avail the Encash 24 facility.

Priority Banking customers wishing to avail of Encash 24 Facilities, need to maintain a

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minimum total relationship of Rs 5 lacs only, in their Encash 24 Account. As soon as the balance in the Priority Banking Savings Account crosses over Rs 1, 00,000 the excess balance, in multiples of Rs 50,000 will be transferred automatically to the Fixed Deposit Account.

Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.

The salient points of the scheme notification are: (a) Fixed tenure without premature withdrawal.

(b) Year is defined as a financial year.

(c) Amount limited to Rs. 100 minimum and Rs. 100,000 maximum.

(d) Bank will issue a Fixed Deposit Receipt that shall be the basis of claiming tax benefit.

(e) Term deposit under this scheme cannot be pledged to secure a loan.

Tax Advantage

The provision of Section 80C whereby a deduction of up to Rs 100,000 is allowed while computing total income of an individual or HUF in respect of the life insurance premium, contribution to Provident Fund etc has being amended to include fixed deposit with a scheduled bank of a period of not less than five years. Accordingly, an individual or HUF shall now be entitled to deduction of up to Rs 100,000 in case he makes a fixed deposit of the period of five years or more. This exemption shall be part of the Rs 100,000 exemption presently available in respect of life insurance premium, contribution to PF etc.

High Rate of Interest for senior citizens as well as normal customers in view of the long term lock-in period enshrined in the scheme.

Eligibility

All individual depositors and H.U.F. who have a PAN number are eligible to open a fixed deposit account. Any individual who is a Resident Indian and has attained 18 years of age can open a Fixed Deposit account;

In his or her individual capacity, or

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In individual capacity on joint basis.

Term deposit shall be of following types, namely: -

Single holder type deposits

The single holder type deposit receipt shall be issued to an individual for himself or in the capacity of the Karta of the Hindu undivided family.

Joint holder type deposits

The joint holder type deposit receipt may be issued jointly to two adults or jointly to an adult and a minor, and payable to either of the holders or to the survivor: Provided that in the case of joint holder type deposit, the deduction from income under section 80C of the Act shall be available only to the first holder of the deposit who should be a PAN holder.

Features

Two schemes :GRI (Reinvestment Type) and TDGQI (Quarterly Interest Type). Minimum and Maximum Deposit Amount: The minimum deposit amount will

be INR 100 or multiples thereof and maximum deposit amount will be INR 100,000.

Lock-in-Period: Since there is an underlying tax advantage u/s 80C of IT Act, there would be a lock in period of at least 5 years on the FD under this scheme.

Type of deposit: Two types of deposits are to be offered under the scheme, one providing for quarterly compounding/reinvestment of interest (RIC scheme) and the other providing for quarterly payout of Interest (QIC scheme) to the designated operative account of the depositor.

Premature closure of Fixed Deposits: A minimum lock in period of 5 years is stipulated to enable the deposit to be assessed as exempt from taxable income u/s 80C of the IT Act.

The maturity period of a term deposit receipt of any denomination shall be five years commencing from the date of the receipt.

No term deposit shall be en-cashed before the expiry of five years from the date of its receipt

Fixed Deposit Receipt: As per the scheme notification, tax benefits under this scheme are to be claimed through the Fixed Deposit receipt issued by the Bank.

Tax Deducted at Source: Fixed Deposits with the bank shall be subject to Tax Deduction at source as per Income Tax Act 1961.

Interest on these term deposits shall be liable to tax under the Act, on the basis of annual accrual or receipt, depending upon the method of accounting followed by the assessee.

The tax on such interest shall be deducted in accordance with the provisions of section 194A or section 195 of the Act.

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Loans

Home loan

Features of Home Loan

Attractive interest rates Balance Transfer facility Doorstep service Nil Prepayment charges

Loan Purposes

Purchase of a plot of land & construction of house Construction of a house on plot of land already owned Purchase of a new house/flat Purchase of old house/flat. The residual age of the property as confirmed by our

empanelled valuators at the maturity of the loan should not be less than 10 years Extend/Renovate/Repair of a house or flat already owned by self Take over of existing housing loan

Eligibility

A) Salaried Individuals

Any individual who is in permanent service in Government or reputed companies. The applicant in all the cases should be above 24 years of age at the time of loan

commencement and up to the age of 60 years or less at the time of loan maturity.

B) Professionals

Professionals (ie, doctors, engineers, dentists, architects, chartered accountants, cost accountants, company secretary, management consultants only) can apply

The applicant should be above 24 years of age at the time of loan commencement and up to 65 years or less at the time of loan maturity

C) Self Employed Individuals

Any individual filing Income Tax returns can apply The applicant in all the cases should be above 24 years of age at the time of loan

commencement and up to 65 years or less at the time of loan maturity.

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Documents Required

Loan amount

Minimum salary should be Rs.15000 p.m.

Salary slab Loan % Upto 20000 50%20000-1lac 55%Above 1lac 60%

In case of resale of flat agreement - 80% finance of costIn case of plot - 75%finance of register value or market value

whichever is less

Interest Rates & Charges

Rate of interest

Fixed - 14%p.a. Floating

Upto 25 lacs -10.25%25 lacs to 75 lacs -10.5%Above 75lacs -10.75%

Charges

1% of loan amount as a processing fee. This is a one time fee charge on the whole amount loan taken by the customer.

Terms and Conditions

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Repayment

Repayment period for home loans shall not exceed 25 years. Repayment period of pre-allotment bookings of housing loans shall not exceed 1½

year Repayment period of improvement or renovation or extension of existing property

shall not exceed 10 years.

Security

Equitable mortgage of the property to be financed by way of deposit of title deeds.

Penalty for early closure

Nil

Other Conditions

Bank reserves the right to reject any application without assigning reasons thereof The applicant will undertake to inform the Bank as and when there is a change in

address or employment

Loan Against Property

Loan against property - ResidentialLoan against property - Commercial

Eligibility and documentation are same as home loan

Rate of InterestFor Residential - 12.75%For Commercial - 13.75%

You can take loan on your residential property and on your commercial property and after sanction loan we can use that amount for any purpose.

Loan amount is calculated on the market value of the property and 50-55% of the value of the property loan sanction to the customer.

There is no any prepayment charge and processing fee is 1%

Repayment: Repayment period for Loan Against Property is maximum 15 years.

Personal Loan

Loans for salaried individuals of select companies Special loans for doctors, chartered accountants, engineers, architects, CS and

ICWA

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Loans are available from Rs 1 lac to Rs 10 lacs Repayment tenures from 12 to 60 months Attractive interest rates A balance transfer facility available for those who want to retire any higher cost debt

Eligibility

Minimum age of applicant: 21 years Maximum age of applicant at loan maturity: 60 years

Documentation Same as above

Rate of interest

CO. listed ROISuper CAT A 14.5%CAT A 15.5%CAT B 17%CAT C 19%CAT D NA

For closure/Prepayment/part payment charges - NIL

Car Loan

Loan value calculated as per the ex-showroom price of the vehicle Attractive interest rates LTV of upto 90% of the ex-showroom price on selected models Loans available for salaried and self employed individuals, proprietorships and

partnership firms and Companies Loans offered from Rs. 1 lac onwards Loans tenure from 1 year to 5 years

Eligibility

Salaried Individuals

Minimum age of applicant: 21 years Maximum age of applicant at loan maturity: 60 years Income: Minimum Net Annual Salary of Rs. 1.8 Lac p.a. Income Eligibility: As per latest salary slip or Form 16 Employment: Minimum 2 yrs of continuous employment

Self-employed Individuals

Minimum age of applicant : 21 years Maximum age of applicant at loan maturity : 65 years Income: Minimum Net Annual Business income of Rs. 1.8 Lac p.a. Income Eligibility : As per latest ITR and computation of income Employment: Minimum 3 yrs in same line of business.

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Documentation Same as above

Processing fee - 3500 to 5000 according to their categoryFor closure/prepayment charges - 5%

Rate of interest

Car category <35 months 36-60 monthsCAT A 14.50% 14.25%CAT B 14.25% 13.25%CAT C 14.50% 12.75%CAT C+ 14.50% 12.50%

Credit Card

Rate of interest charge is 2.95%Card is issued within 20-25 days after completed all formalities

Yearly charge on gold credit card - Rs. 250Yearly charge on platinum credit card - Rs. 500

Issuance of Credit Card

On the basis of salary

Salary upto Rs. 20000 p.m. (minimum with axis bank)Salary Rs. 20000 to 50000 p.m. (minimum in other bank and no relation with axis bank)

Salary 20000+ Gold cardSalary 33000+ Platinum cardSalary 1lac + Signature card

On the basis of saving

In this we fill up all the data regarding customer to the system then system will decide whether card is issue or not to that according to their dealing with the bank. The variety of the card is also decided by the system.

Credit card can be issued against the Fixed deposit but FD should be minimum of

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Rs.25000

Rate of interest on this is 1.95%.

80% of the value of the FD gets financed for the credit card.

Rs. 25000 FD - Easy gold cardAbove Rs. 25000 FD - Platinum card

Travel Currency Card

Bon Voyage

Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable experience. Available off the shelf at your nearest Axis Bank Branch and select FFMCs (Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores.

With it you can attend to your business, enjoy the delightful tourist spots, dine out, and take in the breathtaking landscape and exotic culture of the country without worrying about money changers and converting your traveller's cheques into local currency.

The Travel Currency Card gives you a 24-hour access to your money. Withdraw funds in the local currency from any Visa or Visa Plus ATM's (Automated Teller Machine) as well as pay for all your purchases in any country you visit, anywhere in the world.

Features

Travel Across the Globe The Axis Bank Travel Currency Card is a prepaid foreign currency card, which is currently available in the denominations of US Dollars, Euro, Great Britain Pound, Australian Dollar, Canadian Dollar, Singapore Dollar, Swiss Francs, Swedish Kroner, Japanese Yen, Dirhams (AED) and Saudi Riyals (SAR). The Card is available off the shelf at your nearest Axis Bank Branch and select FFMCs. All you need to do is fill in a simple application form along with relevant documents and you can walk out with the card in your hand, loaded with the required amount of foreign currency.

The minimum requirements on the 11 currency denominations are USD-250; EURO-200; GBP-150; AUD-300; CAD-300; SGD-350; CHF-300, SEK-1500, JPY 30000, AED 950 and SAR 950. The maximum amount of foreign currency that can be loaded on to the card is as per the extant guidelines of the Reserve Bank of India.The Travel Currency Card USD variant is available on Visa as well on MasterCard platform. The other currency variants, i.e. EUR,GBP,AUD, CAD, SGD, CHF, SEK, JPY, AED and SAR are Visa Flag unembossed Cards that can be used to withdraw cash from 1 million Visa or Visa Plus ATMs and for purchase transactions at over 14 million merchant outlets across the world.

Convenience The Travel Currency Card lets you carry and use your money in the denomination you want. You can withdraw cash from an ATM or shop for very small

45

amounts. You need not carry loose change anymore that you are left with when you encash your Traveler's Cheques.

Also you have unlimited access to your money at any time - day or night. You don't have to waste precious time looking for moneychangers to encash your Traveler's Cheque. With the Travel Currency Card you can pay directly at all Visa enabled merchant outlets (shops, restaurants, hotels, grocery stores etc.)

Security A secure 4 digit PIN helps to secure all your cash withdrawal transactions. If your card is lost or misplaced all you need to do is call on the 24-Hour Customer Service Number, your card will be immediately blocked to secure your money and a replacement card will be sent to you upon request. As a cardholder you can also access Visa's Global Customer Assistance Service (GCAS), which can be used to report a lost or stolen card, get emergency cash assistance or emergency card replacement and make inquiries (charges applicable).

Insurance The Cards comes with a Comprehensive Travel Insurance to provide you the peace of mind when you travel abroad. The Insurance cover becomes available to you upon payment of the Card Issuance fee.

You also get insurance coverage equivalent of upto Rs 2,00,000 for Loss of Card from the time you report the loss to us. Please note that it is mandatory to lodge a Police Complaint/FIR for making a claim in the event of loss and misuse of the card.

Unutilised balance Choose your option refill or refund or transfer to a dollar account.When you return from your trip, you can choose to

1. Get your balance on the card encashed

2. Transfer it to a Resident Foreign Currency Domestic Account

3. Or simply let the balance on your Card (upto $2000 as per RBI Regulation) remain so that you can use it for any future trips.

The date of expiry is indicated on the card. During this time you can use your card as many times as you wish. You can also refill it on your subsequent trips. All you need to do is fill in a reload coupon and attach the necessary documents. Your card will be reloaded with additional amount within 24 Hours.

Investments

Mutual Funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market

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instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciations realized are shared by its unit holders in proportion to the number of units owned by them.

Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.Our Offering

As Axis Bank Financial Advisory team, we adopt a strong research driven recommendation model to help you choose the best funds based on qualitative and quantitative parameters.

Apart from this, a dedicated Relationship Manager can also be assigned to you to ensure that your investment requirements are taken care of, smoothly and efficiently. Our advisors understand your profile and lead you through a structured financial planning process to devise financial solutions best suited to you. The advisors will also help you choose the right investment products in line with your investment goals.

Advantages of investing in Mutual Funds

Professional Management

Asset Management Companies (AMC) are managed by professionals and carry out the specialized investment activity.

Diversification

Diversification among a number of investments helps reduce the risk of any single holding.

Convenient Administration

The facility of making investments through service centers as well as through the Internet ensures convenience.

Return Potential

By allocating the right asset mix Mutual Funds offer a chance of higher potential returns. The high concentration of risky assets would lead to a higher return and vice-versa.

Low Costs

Given its size, an AMC would be in a position to negotiate better brokerage terms for the sale and purchase of its investments.

Liquidity

Open-ended schemes offer liquidity through on-going sale and repurchase facility.

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Thus the investor does not have to worry about finding a buyer for their investments.

TransparencyInformation available through fact sheets, offer documents, annual reports and promotional materials helps provide the investor with the knowledge about their investments.

Flexibility

Mutual Funds offer flexibility in terms choosing a scheme that matches the investment to an investor's investment objective.

Choice of Schemes

The investors can chose from various kinds of schemes available to them. The investors with a higher appetite for risk can go for more aggressive schemes while those needing a fixed sum every month can go for MIPs and so on.

Tax Benefits

For equity funds, dividends received from equity schemes of Mutual Funds (i.e. schemes with equity exposure of more than 65%) are completely tax-free. Neither does the Mutual Fund have to pay dividend distribution fee nor does the investor have to pay income tax.

Types of Funds

By Structure

Open Ended

These are schemes that do not have a fixed maturity. The mutual fund ensures liquidity by announcing sale and repurchase price for the unit of an open-ended fund.

Close Ended

These are schemes that have a fixed maturity. The money of the investor is locked in for the period. Occasionally, closed-end schemes provide a re-purchase option to the investors, either for a specified period or after a specified period. Liquidity in these schemes is provided through listing in a stock market; however this option is not yet available in India. By Investment Objective

Equity Schemes

Equity schemes primarily invest in shares. Based on the objective investments could be in growth stocks where earnings growth is expected to be high or value stocks where the view of the fund manager is that current valuations in the markets do not reflect the

48

intrinsic value.

Various kinds of equity schemes are:

Equity Diversified

All non-theme and non-sector funds can be classified as equity diversified funds.

Mid Cap

These funds invest in companies from different sectors. However they put a restriction in terms of the market capitalization of a company, ie, they invest largely in BSE Mid Cap Stocks.

ELSS

ELSS is an open-ended equity growth scheme that is offered by mutual funds in line with existing ELSS guidelines. The investments under this type of scheme are subject to a lock-in period of 3 years and, as per the Finance Act 2005, are allowed the benefit of income deduction up to Rs 1, 00,000.

Thematic

These schemes invest in various sectors but restrict themselves to a particular theme eg, services, exports, consumerism etc.

Sector Specific

These are schemes that invest in a particular sector for example IT. They have a high degree of risk associated with them as if that particular sectors does not perform then their returns will suffer.

Flexicap

These kinds of schemes invest across market caps.

Debt or Income Schemes

Such a fund invests in interest bearing securities mainly government securities and corporate bonds. This fund earns returns for its investors from interest income on its investments and profits on trading securities. In terms of risk, this type of fund is the least risky.

Money Market Schemes

These schemes invest in short term debt instruments issued by the government, corporate or banks. These are typically investments in short term papers like the CPs and CDs etc.

Hybrid Schemes

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Balanced Schemes

Balanced schemes invest in a mix of equity and debt. The debt investments ensure a basic interest income, which the fund manager hopes to top with a capital gain from the investment in equities. However loses can eat into basic interest income and capital.

Monthly Income Plans

MIPs are suitable for conservative investors who along with an exposure to debt do not mind a small exposure to equities. These funds aim to provide consistency in returns by investing a major part of their portfolio in debt market instruments with a small exposure to equities. Thus an MIP would be suitable for conservative investors who along with protection of capital seek some capital appreciation as MIPs have an exposure to equities. However the monthly income is not assured.

Frequently Used Terms

Net Asset Value (NAV) Net Asset Value is the market value of the assets of the scheme minus its liabilities. The per unit NAV is the net asset value of the scheme divided by the number of units outstanding on the Valuation Date.

Sale Price Price paid while investing in a scheme. May include sales load. Also called Offer Price.

Load This is the price of buying a unit. Most funds sell units at a premium to its underlying net asset value, and purchase them at the net asset value. When the fund company charges a load when it sells units, it is called entry load. When it charges a load at the time of buying the units back from an investor, it is called exit load.

Repurchase Price Repurchase Price is the price at which a close-ended scheme repurchases its units. May include Backend load. Also called Bid Price.

Redemption Price Redemption Price is the price at which an open-ended scheme repurchases its units and a close-ended scheme redeems its units on maturity. Prices here are NAV related.

Sales Load Sales Load is the charge collected by a scheme when it sells its units. Also called Front End Load. Schemes that do not charge a load are called No Load Schemes.

Repurchase or 'Back-end' Load Repurchase or 'Back-end' Load is a charge collected by a scheme when it buys back the units from the scheme.

SIP or Systematic Investment Plan refers to the practice of investing a constant amount regularly, generally every month. SIP ensures that the investors' acquisition costs are approximated to the average NAV, as when the market will go up more units will be bought and when the markets come down fewer units will be bought. However it does not offer protection from losses.

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SWP This is a mirror image of an SIP only here the investor withdraws a constant amount regularly. This is again aimed at getting averaging effect mentioned above.

Dividend versus Growth Among the investors who subscribe to a scheme some might want a regular flow of income while others might prefer their income from the scheme to grow within the scheme itself. The dividend option caters to the first kind of investors by offering the investors divided at regular interval. Each time the dividend is declared the NAV of the scheme will fall. The growth option is for the second kind of investors.

Institutional versus Regular There is a significant difference between time and cost implications between servicing one investor who has invested Rs 1 crore and servicing 1,000 investors who have each invested Rs 10,000 although the AUM is same for both the cases. Thus funds differentiate between the classes of investors on the above grounds by offering different options or plans of the same scheme to different kinds of investors. The institutional plan being offered to the big investors and regular for the small.

Equity Linked Saving Scheme

Equity Linked Saving Scheme (ELSS) Equity Linked Saving Scheme is an open-ended equity growth scheme that is offered by mutual funds in line with existing ELSS guidelines. The investments under this type of scheme are subject to a lock-in period of 3 years and, as per the Finance Act 2005, are allowed the benefit of income deduction up to Rs. 1,00,000. ELSS offers the benefits of tax saving and capital gains. Instead of spreading your investments across different instruments such as PPF, ELSS, NSC and infrastructure bonds, you can now invest the entire limit of Rs. 100,000 available under Sec 80C in ELSS.

Advantages of ELSS

Lock-in for three years prevents unnecessary withdrawals and allows your money to grow over a period of time

Investments in equity over a long-term delivers better returns than that of other savings instruments and similar to other equity schemes

Tax savings and high returns Flexibility to Invest in small amounts through a Systematic Investment Plan

Systematic Investment Plan

Systematic Investment Plan (SIP) is a convenient way to accumulate wealth in a disciplined manner over a long-term period. It helps you to invest regularly in small installments and thereby build wealth over a period of time.

SIP is a method of investing in a mutual funds scheme. Mutual fund schemes are offered by the Asset Management companies (AMC) to customers through a distributor. The Bank acts as a distributor of Mutual Fund products for the AMC to the customers. A

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customer wanting to invest in a mutual fund scheme can avail of the Systematic Investment Plan option through Axis Bank.

Advantages of SIP Power of Compounding

SIP helps you to start investing at an early age to meet the greater expenses of your life. Saving a small sum of money regularly makes money work with greater power of compounding with significant impact on wealth accumulation.Rupee Cost Averaging

SIP minimizes the effects of investing in volatile markets. It helps you average out your cost by generating superior returns in the long run. It reduces the risk associated with lump sum investments. Since you get more units when the NAV drops and fewer when it rises, the cost averages out over time Thus the average cost of your investment is often reduced.

Convenience and Regularity

SIP gives you the convenience to pay through Axis Bank Electronic clearance service (ECS) or Auto Debit. You can decide the amount and the mutual fund scheme. A fixed amount will automatically get debited from your account on a date specified by you.Disciplined approach towards investment

Since you invest regularly, it makes you disciplined in your savings, which leads to wealth accumulation. Disciplined investing is vital to earning good returns over a longer time frame.

How to invest in SIP?

Step 1: Select a mutual fund scheme of your choice with the payment option as SIP

Step 2: Decide the Investment periodicity (frequency of making payments). You can choose to make your investment on a monthly or quarterly basis.

Step 3: Select the minimum investment amount. For instance, if you choose to invest Rs 12,000 every year with a monthly SIP Option. Therefore you would be investing Rs 1,000 every month in your fund. By the end of a year, you would have invested Rs 12,000 in your fund.

Step 4: The amount gets converted into units, depending on the Net Asset Value (NAV). NAV is the market value per unit of a fund. If the NAV in the first month is Rs 20, you will get 50 units. Similarly in the next month if the NAV is Rs 25, you will get 40 units. The following month if the NAV is Rs 18, then you will get 55.56 units. So, after three months, you would have 145.56 units. On an average, you would have paid around Rs 21 per unit.

Step 5: The units get accumulated over a period of time. You can stay invested till the time you wish and redeem your units when you wish to exit from the scheme. The units

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are redeemed at the market value (NAV) and you get back your money with returns.

For investing in SIP, all you need to do is visit your nearest Axis Bank branch and just fill up a simple application form. You can also fill in your personal details on the "Apply Now" link on our website and our relationship manager will get in touch with you shortly.

Payments

1) Bill Pay

Axis Bank's Bill Pay service enables you to make secure payments from the comfort of your home or office. So its time to say goodbye to late payment fines, long queues, lost bills, and commissions paid to local errand boys.

2) Electronic Clearing Service

ECS is an electronic clearing system that facilitates paperless credit / debit transaction directly linked to your account and also provides for a faster method of effecting periodic and repetitive payments.

3) Outward Remittance

Send money abroad in a secure and convenient way. Axis Bank offers Outward Remittance facilities enabling you to remit money abroad through reliable and quick transactions.

Send money abroad for reasons more than one: education, medical purpose, gifting, maintenance for loved ones or donation for a cause.

4) Tax e-Payments

You can pay your Income / Other Direct Taxes, as well as Central Excise & Service Tax* through iConnect from your account online and get on-line acknowledgement of the payment by way of a Cyber Receipt, including Challan Identification Number (CIN) immediately after making the payment.

5) Direct Tax Payment

The assessees or taxpayers can pay Income or Other Direct Taxes as listed below at 214 authorised branches of Axis Bank across the country and also by online mode through 'e-Payment' Facility' in case they maintain Accounts with Axis Bank. Other Services

1) Prepaid Mobile Recharge

With Axis Bank's mobile recharge facility, you no longer have to worry about losing your mobile connectivity anytime of the day or night. Axis Bank's prepaid mobile recharge facility enables you to recharge your mobile over the internet.

Now all Axis Bank customers can use their Savings Bank Account to recharge their

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prepaid mobile phone instantly using iConnect. The process of recharging is hassle free and instantaneous.

The facility can be used by all Internet Banking users who have registered for netsecure.

How does it work?

To avail this facility, all you need to do is follow the steps given below:

You have to simply log in to iConnect using his login ID and password to access this facility.

You can see the following options in the menu under Mobile Recharge:

Recharge mobile Register mobile number Check status View registered mobile

To start recharging, you have to do the following:

Register the mobile number by clicking on the "Register Mobile number" option. For security purposes, this option is Netsecure enabled. You can register as many numbers as you want.

Click on "Recharge mobile" option and start recharging the registered mobiles. You have to enter login id and transaction password to complete the transaction.

You can view registered mobile numbers through "View registered mobile" and check the status of past recharges through "check status" options.

Important Points

The facility is available only for Prepaid Mobile Phones. You have to enter the correct mobile number; Axis Bank will not be responsible for

the correctness of the mobile number being entered by the user. Axis Bank sends a recharge request to mobile operator for the amount entered by

the customer. You have to check with the mobile operator for increase in talk-time limit and validity

period on the recharge amount. On successful top up, mobile operator will send the confirmation through SMS within

15 minutes. In case you do not receive any confirmation, you have to check with the mobile operator.

Even on successful debit of the recharge amount from the account, if the talk-time limit does not increase for any reason, the recharge amount will be refunded to your account within 4 working days.

Limits on Transactions

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Recharge Limit per transaction - Rs 1,000 Recharge Limit per mobile number per day - Rs 3,000 Time between two consecutive recharges - 15 minutes

2) Locker

Details regarding lockers in Axis bank:-

In Axis bank locker facility cannot be provided to all the customers because there is more demand and less supply of lockers in the bank. In other words, customer’s credibility is kept in mind while providing this facility. There are two ways to operate the locker :

1) Joint – In this type of locker, signature of all the persons in whose names the locker has been allocated, are mandatory each time the locker needs to be operated.

2) Other – In this type of locker, signature of any one person out of all the holders to a locker is sufficient at the time of operating the locker. Documents :-

Identity proof and address proof is required to open the locker.

In one year, it is necessary to operate the locker at least once otherwise the bank may withdraw this facility from the concerned customer.

It is not possible for a customer to get his locker transferred to another branch of the bank. In this case he will have to open a new locker in the other branch and submit all the required documents once again for this purpose. When the locker holder wants to operate his locker then he has to sign the required documents in the bank, followed by the bank verifying his signature and photograph against those present in its records.

Bank charges an annual maintenance fees from the customer. This amount is decided in accordance with the size of the locker provided and may range from Rs.1000 to 2000.

3) Online Shopping

Safe and Secure Internet Payment

Axis Bank offers you the convenience of shopping at many major Online stores from the comfort of your home or office. All you need is an internet enabled PC. You can choose & then get the items delivered at your doorstep. You can also avail of numerous online services, get to know about the current special offers/discounts and get a preview of the new items added on to the shelves by these online retailers/service providers. You can shop as much as you like and conveniently make instant payments by debiting your

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account through the secured payment channel, iConnect - Our internet banking platform.

4) E-Statement

Axis Bank offers the facility of E-Statement. E-Statement is secure and electronic way to receive statement of accounts from the Bank.

Advantages

Prompt delivery

Person specific delivery

No hassle of physical record maintenance

Monthly statements on email id within a week of the following month

Password protected for security

CHAPTER -4

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.

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When we talk about research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique so that research results are capable of being evaluated either by the researcher himself or by others.

4.1 RESEARCH OBJECTIVE

PRIMARY OBJECTIVE

This particular study was designed with the objective of “Evaluating and analyzing the success of Priority Banking Products and Services of Axis Bank”

The Primary Objectives of the study are as follows:

• Understanding the concept of Priority Banking.

• Understanding the various promotional measures taken by the Bank for promoting Priority Banking.

• Assessing the growth in the total volume.

SECONDARY OBJECTIVE

• Determining the position of Axis Bank vis-a-vis its competitors.

4.2 RESEARCH DESIGN

Research design stands for the planning of methods to be adopted for collecting the relevant data and techniques to be used in their analysis .It is a plan in advance for data collection and analysis and is needed for the research report.

The objective of the study was formulated before commencing the research.

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The sample size was not decided in advance as the population was covered for a new concept “Priority Banking”.

The research type followed in the study is exploratory, analytical and descriptive in which specific forecasting and narration of facts is gathered.

The type of data used during research is Primary as well as Secondary Data.

The method of data collection was decided in advance and a rigid procedurewas followed for the collection of data, such as preparing questionnaire in a manner so as to avoid redundancy and not missing any of the important part.

Newspapers and Internet has been extensively used for data collection.

4.3 SAMPLE DESIGN

Type of UniverseAs many customers who are coming to the Bank for availing Priority Services.

Sampling Unit1 Branch is taken into Account- Gurgaon, Sector-14 Branch.

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Sampling procedureSince the total area of interest is a big one and the concept is still under promotionalstage, we select a branch where customers from almost every financial background.Thus, Quota Sampling is the most appropriate sampling technique in this study.

Number of customers coming to the Bank:Sample size of customers n = 31

4.4 Scope of the Study

Each and every project study along with its certain objectives also have scope for future. And this scope in future gives to new researches a new need to research a new project with a new scope. Scope of the study not only consist one or two future business plan but sometime it also gives idea about a new business which becomes much more profitable for the researches then the older one.

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Scope of the study could give the projected scenario for a new successful strategy with a proper implementation plan. Whatever scope I observed in my project are not exactly having all the features of the scope which I described above but also not lacking all the features.

Research study could give an idea of network expansion for capturing more market and customer with better services and lower cost, with out compromising with quality.

In future customer requirements could be added with the product and services for getting an edge over competitors.

Consumer behavior could also be used for the purpose of launching a new product with extra benefits which are required by customers for their account (saving or current )and/or for their investments.

Factors which are responsible for the performance for bank can also be used for the modification of the strategy and product for being more profitable.

4.5 LIMITATIONS

• Only population of a Branch at Gurgaon was surveyed so that report cannot be depended upon for other areas.

• Customers are least interested in filling up the questionnaire.

• Limited no. of customer visits the bank. Being priority customers, the

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customers prefer doorstep services.

• Customers are not ready to answer subjective questions.

• Data available on the websites is not up to date.

CHAPTER - 5

DATA COLLECTION

Collection: - From the sample of 31 customers’ data has been collected regardingtheir experience with the priority banking segment, using a questionnaire which has

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been filled by me on my system.

Data Sources: Primary as well as secondary data has been collected.

Sources of Collecting Primary and Secondary Data

For the purpose of project, data is very much required which works as a food for process which will ultimately give output in the form of information. So before mentioning the source of data for the project I would like to mention that what type of data I have collected for the purpose of project and what it is exactly.

5.1 Primary Data

It is the data collected first hand relating to specific queries and problems. Its main advantage is that the information is up-to-date. On the other hand, it is expensive and time consuming.

Primary data is basically the live data which I collected while doing cold calls with the customers and I shown them list of question for which I had required their responses. In some cases I got no response form their side and than on the basis of my previous experiences I filled those fields.

Source: Main source for the primary data for the project was questionnaires which I got filled by the customers or some times filled myself on the basis of discussion with the customers.

5.2 Secondary Data It is the information which has been already collected for other purposes and is readily available in some form. Its advantage is that it is readily available and cheap while its disadvantage is that the data may be irrelevant.

Sources of collecting Secondary Data Internal Sources Financial books from various libraries providing information on banking sector. Newspapers like Economic Times, Financial Express etc. providing various articles on the banking sector and priority banking

CHAPTER - 6

FINDINGS AND ANALYSIS

ANALYSIS:

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To determine the age groups of Priority Customers.

FINDINGS:

The age group of consumers were divided into 4 groups i.e. 20-30, 30-40, 40-50 and 50 & above. Out of 31 consumers 9.7% belong to 1st group,19.4% belong to 2nd group, 25.8% belong to 3rd group and 45.2% belong to 4th group.

ANALYSIS:

To identify the qualification of the Priority Customers.Educational Qualification of the

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CustomerMatriculatioProfessionaPost GraduateFINDINGS:

Out of 31 priority customers, maximum customers are Post-Graduate and theminimum level of qualification is Matriculation. This means, major part of thePriority Customers are well educated and thus, can perform their banking transactionsvia e-mails and other modern techniques.

ANALYSIS:

To identify the Occupation of the Priority Customers.

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FINDINGS:The above graph shows that almost customers from every field would like to havepreference as far as their banking transactions are concerned and want to avail thebenefits of priority banking.

ANALYSIS:

To identify the Annual Household Income of the Priority Customers.

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FINDINGS:

Out of 31 general mobile users, maximum customers are from the income group of10 lakhs or below, there are very less customers who earns more than Rs. 20 lakhsannually as income.

ANALYSIS:

To determine the Service Satisfaction from the Relationship Manager.

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FINDINGS:The survey states that maximum customers under Priortiy Banking are somewhatsatisfied from the services given by their Relationship Managers. There are very veryless customers who marked their dissatisfation from the services rendered by theRelationship Managers.

ANALYSIS:

To determine the most demanded Service of Axis’s Priority Banking.

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FINDINGS:

All the customers would like to use plastic money, thus hold ATMs and Credit Cards.Other than this, customers having fixed deposits would like to avail the facility ofpriority banking.

ANALYSIS:

To determine the strengths of the Relationship Managers.

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0

5101520StrengthsFINDINGS:

Out of 31 customers, 29 thinks that Relationship Managers are wise and 20 says theRelationship Managers have the Knowledge of the products they are offering, theRMs are spontaneous and fairly have decision taking skills too.

ANALYSIS:

To identify the weaknesses of the Relationship Managers.

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FINDINGS:

Maximum customers say that the RMs have Weak Persentation Skills with this theyhave less customer contact and do not do regular follow-ups.

ANALYSIS:

To determine the type of Banking Customers prefer.

FINDINGS:

Out of 25 customers 15 of them use pre-paid connections and 10 use post paidconnections.

ANALYSIS:

To determine the average ranking of the Relationship Managers.0RankingFINDINGS:

Out 31 customers surveyed, 16 rate their RMs at 3 on the scale of 5 may be due to theweaknesses mentioned above . There are customers who rate their RMs towards themaximum rating 0f 4 & 5.

ANALYSIS:

To analyze the Promotional part of Priority Banking.

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FINDINGS:

Nearly all the Priority Customers came to know about the Priority Banking via AxisBank’s Welcome Kit. This shows that Axis Bank is not using or using very littlepromotional measures other than their own welcome kits.

ANALYSIS:

To determine the quality of relationship with Axis Bank.

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Relationship Quality

ExcellentGoodAverageFairPoorFINDINGS:

Maximum customers are happy with the way they are getting services and the qualityof the relationship they have with the Axis Bank. Almost everyone rates theRelationship Quality with Axis Bank between Excellent, Good & Average.

ANALYSIS:

To determine the other services used by the Axis Bank’s customers from other

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Banks.

FINDINGS:

Existing Priority Customers are also availing different services from Banks other thanAxis Bank. Major protion of the services availed is covered by Fixed Deposits andDemat Accounts.

ANALYSIS:

To determine the Professional Services required by customers.

FINDINGS:

13 out of 31 customers require a Financial Advisor and Porfolio Manager, who canadvise them with their investments. Businessmen require the services of CharteredAccountant.

ANALYSIS:

To determine the frequency of visits to the Bank by Priority Customers.

FINDINGS:Management professionals, retired customers and service class customers are the onewho hardly go to the banks for performing any transactions and customers frombusiness class are the one who visit bank very frequently.

CHAPTER - 7

RECOMMENDATIONS

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As the research was conducted with the objective of understanding the concept ofPriority Banking launched by Axis Bank, customer’s expectations from the priorityservices and suggesting the remedial course of action for Axis Bank in regards toPriority Banking.

Recommendations made:

• The target customers should be customers from all age groups and specifically from the age group of 50 & above, as these customers, due to their age constraints, would like to have services without visiting the bank.

• The Relationship Managers should improve their Presentation skills, should do regular follow-ups and should improve decision taking skills as well.

• Axis Bank should start using some more Promotional Measures other than its own Welcome Kit. Welcome Kit will only target the existing customers but not the general public. The bank should opt for the following promotional measures:

- Brand Ambassador - Advertisements- Television and News Papers - Hoardings

• The company should aim at improving the Promotion of Priority Banking Segment of Axis Bank.

• Demat and Fixed deposits are the services which the existing customers of Axis Bank are availing from other Banks as well. The bank should work to capture these two markets as well so as to increase its overall volume.

• The Customers are also availing services of Professionals like Financial Advisors, Portfolio Managers and Chartered Accountants from outside. To grab some more customers Axis Bank should think of providing these services as well.

• The Credit giving regulations of Axis Bank is quite stringent, which, on one hand pulling the NPAs down but also affecting the bank’s credit business.

• Proper training should be given to the staff so that the staff can improve their skills.

• The problem of Pin Codes is the major problem as far as i-connect banking is concerned. There is a huge scope to improve this particular area at Axis Bank.

• The downgrading limit of the Priority Customers should be either reduced or some more provisions should be kept to attract the new customers and retain the existing ones.

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• If the good amount of Fixed Deposits are their in the Bank of a particular customers than the limit of Rs. 1,00,000 minimum balance for a priority account should be made flexible.

• The facility of Delivery/pickup of Cash/cheque should be improvised so as to remove this limitation as compared to Standard Chartered Bank.

• The ATM withdrawal per day limit should also be revised from Rs. 50, 000/- per day as ABN AMRO Bank is offering Rs. 1,00,000/- per day withdrawal limit.

CHAPTER - 8

BIBLIOGRAPHY

www.axisbank.com

wikipedia.org/wiki/Axis_Bank

www.moneycontrol.com/india/.../banks.../axis-bank/AB16

connect.in.com/profile/Axis_Bank/292983

money.rediff.com/companies/axis-bank-ltd/.../balance-sheet

in.reuters.com/money/quotes/incomeStatement?symbol

www.financialexpress.com/news/...Bank...Axis-Bank/207688/

CHAPTER - 9

QUESTIONNAIRE

Questionnaire for Priority Bank Customers

Name:

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Age □ Below 20 yrs.□ 20-30 yrs.□ 30-40 yrs.□ 40-50 yrs.□ 50 yrs. and above

Education □ Matriculation□ Undergraduate□ Graduate□ Professional□ Post- Graduate

Occupation □ Management Professional□ Medical Practitioner□ Service□ C.A./C.S./Lawyer□ Banker□ Businessman□ Others…………………………..

Your approximate annual householdincome

□ upto Rs.10 Lakhs□ Rs. 10-20 Lakhs□ Rs. 20-30 Lakhs□ Rs. 30-40 Lakhs□ Rs. 40 Lakhs & above

How satisfied are you with the servicesyou received from your RelationshipManager?

□ Very satisfied□ Somewhat satisfied□ Neither satisfied nor dissatisfied□ Somewhat dissatisfied□ Dissatisfied

What are the strong points of yourRelationship Manager?

□ Wise□ Dedication□ Spontaneous□ Decision Taking Skills□ Knowledge about the products

What are the weaknesses of yourRelationship Manager?

□ Weak presentation Skills□ Less Knowledge about the products□ No regular follow-ups□ Less customer contacts

Rate your Relationship Manager on thescale of 55- Highest +ve1- Lowest -ve

□ 1□ 2□ 3□ 4□ 5

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How satisfied are you with the speed inwhich the services/ products aredelivered?

□ Very satisfied□ Somewhat satisfied□ Neither satisfied nor dissatisfied□ Somewhat dissatisfied□ Dissatisfied

You came to know about PriorityBanking via:

□ Axis Bank’s Welcome Kit□ Friends□ Relatives□ Promotions□ Walk-ins

How easy was it to find the informationon the scheme?

□ Very Easy□ Easy□ Difficult□ Very Difficult

Would you recommend yourfriends/relatives for Priority BankingServices of Axis Bank?

□ Yes□ No

How do you rate the overall quality ofyour relationship with Axis Bank,considering all of your experiences withthem?

□ Excellent□ Good□ Average□ Fair□ Poor

Do you have any other relationship withAxis Bank?

□ ATM Cards□ Bonds□ Car Loans□ Credit Cards□ Current Account□ Fixed Deposits□ Others…………………………..

Do you have an account with otherbank(s)?

□ Loans□ Demat□ Savings Account□ Fixed Deposits□ Current Account□ No other Account□ Others…………………………..

Do you use the services of : □ Chartered Accountant□ Financial Advisor□ Portfolio Manager□ Not Required

Which of the following services do youuse?

□ Mobile Banking□ Internet Banking

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□ Phone Banking□ Relationship Manager

ReIniCHAPTER - 10

SYNOPSIS

AXIS BANK

Priority Banking

Student’s Name: Rohit JainIndustry Guide: Mrs. Priyanka Nautiyal- Priority BankingFaculty Guide: Mr. Vipul Singh

The primary objective of this project was to understand the concept of priority banking and promotional measures used by Axis Bank. And suggesting remedial course of actions for improving this particular segment.The secondary objective is to make a comparison of Axis Bank with other competitors and suggesting remedial actions.

The findings after doing the research work was that the bank’s priority segment covers the customers from all age groups but customers from age group of 50 yrs. & above are more attracted towards priority banking. Most customers and qualified and come from all income groups & educational back grounds.

Customers are somewhat satisfied with the services given by their Relationship Managers. Thus, maximum customers are interested in performing any banking transaction through their Relationship Manager. Their wise behavior and good knowledge of the products are their strengths but they are weak as far as their presentation skills are concerned.

Credit cards, ATM cards and fixed deposit are the major services customer’s opt under priority banking because plastics money is today’s trend and fixed deposits help customers to become priority customers. The promotional measures used by the bank is either its own welcome kit,which can only attracts existing customers to the priority segment or the pamphlets.

The conclusions drawn on the basis of the project workdone were that:

• The target customers should be customers from all age groups and specifically from the age group of 50 & above, as these customers, due to their age constraints, would like to have services without visiting the bank.

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• The Relationship Managers should improve their Presentation skills, should do regular follow-ups and should improve decision taking skills as well. Proper training programmes should be organized.• Axis Bank should start using some more Promotional Measures other than its own Welcome Kit. Welcome Kit will only target the existing customers but not the general public. The bank should opt for the followingpromotional measures:

- Brand Ambassador- Advertisements- Television and NewsPapers- Hoardings

• The Customers are also availing services of Professionals like Financial Advisors, Portfolio Managers and Chartered Accountants from outside.To grab some more customers Axis Bank should think of providing these services as well.• The Credit giving regulations of Axis Bank is quite stringent, which, on one hand pulling the NPAs down but also affecting the bank’s credit business.• The problem of Pin Codes is the major problem as far as i-connect banking is concerned. There is a huge scope to improve this particular area at Axis Bank.• The downgrading limit of the Priority Customers should be either reduced or some more provisions should be kept to attract the new customers and retain the existing ones.• If the good amount of Fixed Deposits are their in the Bank of a particular customers than the limit of Rs. 1,00,000 minimum balance for a priority account should be made flexible.

Perception about the industry guide:

My industry guide, Mrs. Priyanka Nautiyal- Priority Banking, is not only the thorough professionals but also very intelligent persons. They all have immense knowledge in their respective fields. They have guided me with patience and explained me the intricacies of the project, made me aware of my goals and showed me the way in which I should achieve them. They not only taught me professionalism but also have been friends, guides andmentors during my period of training. It has bean a pleasure working with them and I hope that in future also I encounter people of their caliber and patience.

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