Pradeep

A Project Report on Marketing Mix of AXIS BANK

ASummer Training Project Report

On

MARKETING MIX OF AXIS BANK

A report Submitted in partial fulfillment of the requirements of

BACHELOR OF BUSINESS ADMINISTRATION

(2010-2013)

Submitted to:: Submitted By:Mr. Gaurav Rawal(Project Guide)

Pradeep Kumar BBA VI SEM

ROLL NO. 9054546

INSTITUTE OF MANAGEMENT AND RESEARCH 8th Mile stone, Delhi Meerut Road Duhai, Ghaziabad

1 Pradeep Kumar


ACKNOWLEDGEMENT

While submitting the project report prepared by me on the topic “Marketing Mix of

Axis Bank” in Axis bank. I here acknowledge my humble gratitude & loyal thanks to Mr.

Anupam Singh (Branch Manager) who gave me an opportunity to work in Axis Bank.

I would like to thank Mr.Gaurav Rawal (IMR Ghaziabad) for encouraging me to

undertake this study. Last but not the least; I am thankful to all of my friends who have given

me their valuable suggestions in preparing the report.

(Pradeep Kumar)

2 Pradeep Kumar


PREFACE

Management training has gained rapid and tremendous importance over the past five

years. Management was previously considered as an inborn art or talent, but in today’s fast

developing world, these have been modified.

The report embodies the result of the project an extensive market research program

was accomplished. We deem it as a matter of great fortune to get summer training at Axis

bank.

The summer training was quite interesting, inspiring, satisfying, learning and

academically awarding.

3 Pradeep Kumar


Table Of Content

Executive summary 5-7

Introduction 8-15

Company Profile 16-42

Objective of the study 43-46

Research Methodology 47-48

Data analysis 49-57

SWOT analysis 58-60

Limitation 61-62

Marketing Strategy 63-97

Recommendations and Suggestions 98-100

Bibliography 101-102

Questionnaire 103-105

4 Pradeep Kumar


EXECUTIVE SUMMARY

5 Pradeep Kumar


EXECUTIVE SUMMARY

Operating in the oligopolistic market condition, banking sector is growing at a rapid pace in

the highly competitive environment with the presence of public, private and foreign banks.

Promoting competition is, however, one of the key objectives of financial sector

reforms.

With growing liberalization, foreign entrants are giving a challenge to the domestic

companies. Government’s policies like opening up the sector to FDI and amendments in The

Banking Regulation Act, 1949 are also encouraging banks to adopt ways and means to attract

more and more customers by identifying and satisfying their needs and wants.

Axis Bank being the country’s second largest bank after State Bank Of India has more than

560 branches and over 10000 ATMs across the country. This project was done in Axis Bank

to analyze the differentiation that banks provide in their products and services, identify the

effectiveness of advertisements and the level of awareness among customers, their attitude

towards banks and to identify the level of satisfaction among customers. A comparative ratio

analysis was done between Axis Bank, other Private Sector Banks and Nationalized Banks to

get the idea of the performance of these banks.

This result analysis showed that Axis Bank is having a good financial position in comparison

to other banks as it showed relatively more growth in profits from the previous quarter. PSU

banks in fact showed a decline in their profit after tax. Having its focus on retail banking and

6 Pradeep Kumar


thus increase in operating cost, Axis Bank’s cost to income ratio increased. But, overall

financial position of Axis Bank is better than other banks.

After making comparison between Axis Bank, other Private Sector Banks and Nationalized

Banks by collecting data from customers and personal interviews from the staff of Axis Bank

and State Bank Of India, it can be concluded that there are opportunities for Axis Bank to fill

the unsatisfied needs of customers of other banks especially nationalized banks which can

prove to be a milestone in its success story.

7 Pradeep Kumar


INTRODUCTION

8 Pradeep Kumar


OVERVIEW OF INDUSTRY AS A WHOLE

Indian Banking Sector

The Indian banking has come from a long way from being a sleepy business Institution into a

highly proactive and dynamic entity. This transformation has been largely brought about by

the large dose of liberalization and economic reforms that allowed banks to explore new

business opportunities rather than generating revenues from conventional streams (i.e.

borrowing and lending). The banking in India is highly fragmented with 30 banking units

contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks

(banks owned by the government) continue to be the major lenders in the economy due to

their sheer size and penetrative networks which assures them high deposit mobilization. The

Indian banking can be broadly categorized into nationalized, private banks and specialized

banking Institutions. The Reserve Bank of India acts as a centralized body monitoring any

discrepancies and shortcoming in the system. It is the foremost monitoring body in the

Indian financial sector. The nationalized banks (i.e. government-owned banks) continue to

dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial

banks operating in India, 223 banks are in the public sector and 51 are in the private

sector. The private sector bank grid also includes 24 foreign banks that have started their

operations here. Under the ambit of the nationalized banks come the specialized banking

institutions. These co-operatives, rural banks focus on areas of agriculture, rural

development etc., unlike commercial banks these co-operative banks do not lend on the basis

of a prime lending rate. They also have various tax sops because of their holding pattern and

lending structure and hence have lower overheads. This enables them to give a marginally

higher percentage on savings deposits. Many of these cooperative banks diversified into

specialized areas (catering to the vast retail audience) like car finance, housing loans, truck

finance etc. In order to keep pace with their public sector and private counterparts, the co-

operative banks too have invested heavily in information technology to offer high-end

computerized banking services to its clients.

The Indian banking has finally worked up to the competitive dynamics of the ‘new’ Indian

market and is addressing the relevant issues to take on the multifarious challenges of

globalization. Banks that employ IT solutions are perceived to be ‘futuristic’ and proactive 9 Pradeep Kumar


players capable of meeting the multifarious requirements of the large customer’s base.

Private Banks have been fast on the uptake and are reorienting their strategies using the

internet as a medium The Internet has emerged as the new and challenging frontier of

marketing with the conventional physical world tenets being just as applicable like in any

other marketing medium.

The Reserve Bank of India (RBI) is India’s central bank. Though public sector bank’s

currently dominate the banking industry, numerous private and foreign banks exist. India's

government-owned banks dominate the market. Their performance has been mixed, with a

few being consistent profitable. Several public sector banks are being restructured, and in

some the government either already has or will reduce its ownership.

Private and Foreign Banks

The RBI has granted operating approval to a few privately owned domestic banks; of these

many commenced banking business. Foreign banks operate more than 150 branches in India.

The entry of foreign banks is based on reciprocity, economic and political bilateral relations.

An inter-departmental committee approves applications for entry and expansion.

Capital Adequacy Norm

Foreign banks were required to achieve an 8 percent capital adequacy norm by March 1993,

while Indian banks with overseas branches had until March 1995 to meet that target. All

other banks had to do so by March 1996. The banking sector is to be used as a model for

opening up of India’s insurance sector to private domestic and foreign participants, while

keeping the national insurance companies in operation.

Banking

India has an extensive banking network, in both urban and rural areas. All large Indian banks

are nationalized, and all Indian financial institutions are in the public sector.

RBI Banking

The Reserve Bank of India is the central banking institution. It is the sole authority for

issuing bank notes and the supervisory body for banking operations in India. It supervises

10 Pradeep Kumar


and administers exchange control and banking regulations, and administers the government’s

monetary policy. It is also responsible for granting licenses for new ban branches. 25 foreign

banks operate in India with full banking Licenses. Several licenses for private banks have

been approved. Despite fairly broad banking coverage nationwide, the financial system

remains inaccessible to the poorest people in India.

Indian Banking System

The banking system has three tiers. These are the scheduled commercial banks; the regional

rural banks, which operate in rural areas, not covered by the scheduled banks; and the

cooperative and special purpose rural banks.

Scheduled and Now Scheduled Banks

The Indian banking can be broadly categorized into nationalized (government Owned), Private

Banks and specialized banking institutions, The Reserve Bank of India acts a centralized

body monitoring any discrepancies and shortcoming in the System. Since the nationalization

of banks in 1969, the public sector banks or the nationalized banks have acquired a place of

prominence and has since then seen tremendous progress. The need to become highly

customer focused has forced the slow-moving public sector banks to adopt a fast track

approach. The unleashing of products and services through the net has galvanized players at

all levels of the banking and financial institutions market grid to look anew at their existing

portfolio offering. Conservative banking practices allowed Indian banks to be insulated

partially from the Asian currency crisis. Indian banks are now quoting at higher valuation

when compared to banks in other Asian countries (viz. Hong Kong,

Singapore, Philippines etc.) That has major problems linked to huge Non Performing Assets

(NPAs) and payment defaults. Co-operative banks are nimble footed in approach and armed

with efficient branch networks focus primarily on the ‘high revenue’ niche retail segments.

There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200

regional rural banks; more than 350 central cooperative banks, 20 land development banks;

and a number of primary agricultural credit societies. In terms of business, the public sector

banks, namely the State Bank of India and the nationalized banks, dominate the banking

sector.

11 Pradeep Kumar


TYPES OF BANKS MARKET SHARE

State Bank of India and

Associates 08

Nationalized Banks 19

Domestic Private Sector Banks 25

New Domestic Private Sector

Banks 09

Foreign Banks 29

Complementing the roles of the nationalized and private banks are the specialized financial

institutions or Non Banking Financial Institutions (NBFI’s). With their focused portfolio of

products and services, these Non Banking Financial Institutions act as an important catalyst

in contributing to the overall growth of the financial services sector. NBFI’s offer loans for 12 Pradeep Kumar


working capital requirements facilitate mergers and acquisitions, IPO finance, etc. apart from

financial consultancy services. Trends are now changing as banks (both public and private)

have now started focusing on NBFC domains like long and medium-term finance, working

cap requirements.IPO financing to etc. to meet the multifarious needs of the business

community.

Commercial FinancingCommercial Financing

The commercial financing model in Indian banking can be broadly categorized into :

Project finance and working capital finance. These two segments form the pivot around

which banks operate.

Project Finance

Banks offer long term and short terms loans to business houses, corporations to setup their

projects. These loans are disbursed after the approval from the banks’ core credit validating

committee. In India, there are 11 national level land 46 state levels financial and investment

institutions that cater to long term funding requirements of the industry. The project finance

segment is highly competitive with various players offering innovative schemes to entice

corporate.

Working Capital

In order to meet the diverse needs and requirements of the business community, banks offer

working capital funds to corporate. Working capital finance is specialized line of business

and is largely dominated by the commercial banks. The Indian banking saw dramatic

changes in the last decade or so ever since the advent of liberalization and India’s integration

with the world economy. These economic reforms and the entry of private players saw

nationalized banks revamp their service and product portfolio to incorporate new, innovative

customer-centric schemes. The Indian banking finally woke up to the surging demands of

the ever-discerning Indian consumer. The need to become highly customer focused

(generated by high competitive levels) forced the slow-moving public sector banks to adopt

a fast track approach. Taking a leaf out of the private sector banks, the public sector banks

too went for major image changes (including corporate brand building exercises) and 13 Pradeep Kumar


customer friendly schemes. These customer friendly programs included revamping of the

product and service portfolio by introducing new product & service schemes (like credit

cards, hassle-free housing loan schemes, educational loans and flexi-deposit schemes)

integration of the branch network by using advance networking technology and customer

personalization programs (through ATMs and anytime banking etc.). Many banks have

started capitalizing on the recent stock market surge by adding (Initial Public Offering) IPO

financing options and schemes in their product mix. IPO finance has received a positive

response from the investors and is becoming popular amongst the business community. The

objective of all these strategies was very clear – to bridge the service & product gap that was

inherent in the banking system. To cater to the increasing customer demands and the surge

in business volumes, many public sector banks have ploughed back funds to invest heavily

in technology upgrades and systems like LANs, WANs, VSATs etc. Marketing and brand

building programs were also given a new thrust in the new liberalized banking scenario.

Promotional budgets were hiked to cater to the new and large discerning target audience.

Banks were now keen on marketing their products and service though various mediums to

reach their core customers. Direct marketing, Internet marketing, hoarding, press ads,

television sponsorships, image makeovers etc. became an integral part of a bank’s marketing

mix. To meet the personalized needs of the customer and in order to differentiate its

services, banks repositioned themselves in specialized fields, like housing loans, car finance,

educational loans etc. to optimally service the customer. Permission marketing became the

new strategy that banks began to propound i.e. feeding the customer (with his or her

consent) with product and service information and thereby enticing him towards the bank’s

product – service portfolio.

New Generation Banking

The liberalize policy of Government of India permitted entry to private sector in the banking,

the industry has witnessed the entry of nine new generation private banks. The major

differentiating parameter that distinguishes these banks from all the other banks in the Indian

banking is the level of service that is offered to the customer. Verify the focus has always

been centered on the customer – understanding his needs, preempting him and consequently

delighting him with various configurations of benefits and a wide portfolio of products and

services. These banks have generally been established by promoters of repute or by ‘high

14 Pradeep Kumar


value’ domestic financial institutions. The popularity of these banks can be gauged by the

fact that in a short span of time, these banks have gained considerable customer confidence

and consequently have shown impressive growth rates. Today, the private banks corner

almost four per cent share of the total share of deposits. Most of the banks in this category

are concentrated in the high-growth urban areas in metros (that account for approximately

70% of the total banking business). With efficiency being the major focus, these banks have

leveraged on their strengths and competencies viz.

Management, operational efficiency and flexibility, superior product positioning and higher

employee productivity skills the private banks with their focused business and service

portfolio have a reputation of being niche players in the industry. A strategy that has allowed

these banks to concentrate on few reliable high net worth companies and individuals rather

than cater to the mass market these well-chalked out integrates strategy plans have allowed

most of these banks to deliver superlative levels of personalized services. With the Reserve

Bank of India allowing these banks to operate 70% of their businesses in urban areas, this

statutory requirement has translated into lower deposit mobilization costs and higher margins

relative to public sector banks.

Capital Market

Stock market volatility touches every participant directly/indirectly in the capital market.

General feeling is that the stock markets worldwide have become very fragile in the recent

past on account of various developments such as Asian crisis. Brazil Real fall and Russian

debacle. Many far-reaching stock reforms have been introduced in the Indian market for the

last few years. These reforms, in turn, changed market structure. Changing market structure

influences nature of stock price behavior.

15 Pradeep Kumar


PROFILE OF THE

ORGANISATION

16 Pradeep Kumar


ABOUT AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after the

Government of India allowed new private banks to be established. The Bank was promoted

jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I),

Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC)

and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New

India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India

Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding

(other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai.

Presently, the Bank has a very wide network of more than 701 branch offices and Extension

Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking

convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the

best industry practices internationally in order to achieve excellence.

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.

17 Pradeep Kumar


Chairman & CEO's Message

Welcome to the website of Axis Bank. Whether you are a customer or a visitor to this site, let

me tell you a little about the Bank and the various services which it offers.

At Axis Bank, it has been our constant endeavor to bring a sharper focus to the requirements

of our customers and we strive to leverage cutting-edge technology to provide the highest

levels of service to you. We are one of the few banks in India which has built up a fully

integrated centralized banking architecture to offer you banking services anywhere, anytime.

Our Internet banking initiative also provides convenience and real time transaction services.

We recognize the importance of the Internet as an increasingly indispensable medium of

communication and commerce. We endeavor, therefore, to bring to you through this website

a whole range of banking services. At present our Internet Banking module, connect, allows

you to view all your accounts with us, including savings, current and depository accounts, for

transactions and balance details, and to transfer funds between accounts within the Bank. We

provide facilities for bill payments, NRI services, a shopping mall, financial advice and retail

loans. Through our Bill Pay service on the net, you can pay your bills online. At the

Shopping Mall you can shop online. The NRI Services channel offers remittance facilities

and a lot more to Non-Resident Indians.

Notwithstanding the immense benefits that Internet Banking brings, the Bank also has other

distribution channels. At the end of June 2008, the Bank increased its reach to 433 cities,

towns and villages across the country through 713 Branches & Extension Counters and 2904

ATMs. The Bank offers a complete range of retail and corporate services, including retail

loans, corporate and business credit, forex and trade finance services, investment banking,

depository services and investment advisory services. Our deposit base currently stands at

over Rs. 88,900 crores with over 89 lakh accounts.

The Bank's International Debit Card, which comes with the Savings Bank Account,

personalized and carrying a unique insurance cover for every account holder, has received an

excellent response from customers, with over 90 lakh debit cards having been issued as at

18 Pradeep Kumar


end June 2008. We were the first bank to offer the AT PAR cheque facility, free of cost, to

all our Savings Bank customers in all the places across the country where the Bank is

Currently present. By virtue of this facility, customers can now use the AT PAR cheque to

make cheque payments (up to a ceiling of Rs. 50,000/- per instrument) to any beneficiary at

any of these places. We also offer the international Travel Currency Card in eight currencies.

The Travel Currency Card is a signature based pre-paid travel card that enables traveler’s

global access to their money, in the local currency of the country they are visiting, in a safe

and convenient way.

The Bank launched its Credit Card in Gold and Silver variants in August 2006, and these are

presently available in 56 cities across the country. Our latest offering is India's first EMV

standard based Platinum Credit Card.

I welcome you to Axis Bank and hope that you enjoy surfing through our website. And if you

are not already our customer, I invite you to become one, and to enjoy the Axis Bank

experience.

P.J. Nayak

Chairman and CEO

Our Mission and Values

Our Mission

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

clientele.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through

Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality stressed on

Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People

Compensation Policy

19 Pradeep Kumar


Objective of the Policy

The objective of this policy is to establish a system whereby the Bank compensates the

customer for any financial loss he/she might incur due to deficiency in service on the part of

the Bank or any act of omission or commission directly attributable to the Bank subject to the

terms prescribed under Paragraphs on 'Award of Compensation' and 'Force Majeure' at the

end.

Scope of the Policy

The Policy is based on principles of transparency and fairness in the treatment of our

customers.

The Policy prescribes compensation only for financial losses which customers have incurred

due to deficiency in the services offered by the Bank which can be measured directly and

limited to compensation specified for respective service as given below. As such, the

commitments under this Policy are without prejudices to any of the rights the Bank has/will

have in defending its position before any forum duly constituted to adjudicate the banker-

customer disputes.

The policy covers areas relating to:

a. Erroneous debiting of account

b. Debits towards service charges

c. Payment of cheques after acknowledgement of stop payment instructions

d. Payment of interest to customers for delayed collection of instruments

e. Collection instruments lost in transit

f. Funds transfers using NEFT/RTGS

g. Foreign exchange services

h. Failure to execute standing instructions

i. Erroneous debiting of account

If the Bank has raised an erroneous direct debit to an account, the entry shall be reversed

immediately on being informed of the erroneous debit after verifying the transaction.

In the event, the erroneous debit has resulted in a financial loss to the customer by way of

reduction in the minimum balance applicable for payment of interest on Savings Bank

20 Pradeep Kumar


deposit or payment of additional interest to the Bank in a loan account, the Bank shall

compensate the customer to the extent of such interest loss.

Erroneous transactions reported by customers in respect of Credit Card operations which

require reference to a merchant establishment will be handled as per the rules laid down by

the Card Association. Where a third bank is involved, compensation would be subject to

availability of information from the other bank.

Reversal of Erroneous Debits arising on Fraudulent or Other Transactions

In case of any fraud, if the Bank is convinced that an irregularity/fraud has been committed

by its staff towards any constituent, it will at once acknowledge its liability and pay the just

claim.

In cases where the Bank is at fault, it will compensate the customer without demur.

In cases where neither the Bank nor the customer is at fault, but the fault lies elsewhere in the

system, the Bank will compensate the customers upto a limit of 25% of the loss incurred by

the customer subject to a ceiling of Rs 25,000/-. This will, however, not preclude a higher

compensation being paid outside of this policy, depending on the merits of the case.

Bankers Fair Practice Code

About this code

This is a voluntary Code, which sets standards of fair banking practices for member banks of

Indian Banks' Association to follow when they are dealing with individual customers. It

provides valuable guidance to you for your day-to-day operations. The Code applies to:

Current, savings and all other deposit accounts

Pension, ppf accounts etc. Operated as agents of RBI/government

Collection and remittance services offered by the banks

Loans and overdrafts

Foreign-exchange services

Card products

Third party products offered through our network.

As a voluntary Code, it promotes competition and encourages market forces to achieve

higher operating standards for the benefit of customers. In the Code, 'you' denotes the

customer and 'we' the bank, the customer deals with. The standards of the Code are covered

21 Pradeep Kumar


by the four key commitments found in section 2. Unless it says otherwise, all parts of this

Code apply to all the products and services listed above, whether they are provided by

branches across the counter, over the phone, by post, through interactive electronic devices,

on the internet or by any other method.

Commitments outlined in this Code are applicable under normal operating environment. In

the event of force majeure, we may not be able to fulfill the commitments under this Code.

This code shall come into effect from 1st September, 2012.

Key Commitments

Our key commitments to you

We promise to:

Act fairly and reasonably in all our dealings with you by:

meeting the commitments and standards in this Code, for the products and services we offer,

and in the procedures and practices our staff follow making sure our products and services

meet relevant laws and regulations our dealings with you will rest on ethical principles of

integrity and transparency.

Help you to understand how our financial products and services work by giving you

information about them in plain Hindi and/or English and/or the local language

Explaining their financial implications and Helping you choose the one that meets your

needs.

Deal quickly and sympathetically with things that go wrong by:

Correcting mistakes quickly

Handling your complaints quickly

Telling you how to take your complaint forward if you are still not satisfied and

Reversing any bank charges that we apply due to our mistake.

Publicize this Code, put it on our website and have copies available for you on request.

Information

Helping you to choose products and services, which meet your needs?

22 Pradeep Kumar


Before you become a customer, we will:

give you clear information explaining the key features of the services and products you tell

us you are interested in give you information on any type of account facility which we offer

and may suit your needs tell you what information we need from you to prove your identity

and address and to comply with legal and regulatory requirements, and request for additional

information about you and your family to build a database but such information can be

furnished by you only if you wish and we will not compel you to give this information for

opening your account.

We will tell you if we offer products and services in more than one way [for example,

through ATMs on the internet, over the phone, in branches and so on] and tell you how to

find out more about them.

Once you have chosen an account or service, we will tell you how it works.

When you open a single account or a joint account, we will give you information on your

rights and responsibilities.

We recommend that you avail nomination facility offered on all deposit accounts, articles in

safe custody and safe deposit vaults.

We will guide you how we will deal with deposits and other assets held with us in the name

of a deceased person in the absence of nomination.

Interest Rates

You can find out about our interest rates by:

Looking at the notices in our branches

Phoning our branches.

Looking on our website; or

Asking our designated staff.

When you become a customer, we will give you information on the interest rates which apply

to your accounts, and when we will pay interest on your deposits or debit interest on your

loan accounts. We will also tell you our website address, and the other ways in which you

can find out about changes in the interest rates.

We will explain how we apply interest to your account.

23 Pradeep Kumar


Changes in Interest Rates

When we change the interest rates on our products, we will update the information on our

website within three working days.

Interest on Savings Accounts

At the time of opening of the account, we will inform you of the rate at which interest is paid

on your savings deposits [presently, it is regulated by Reserve Bank of India], how it is

calculated and its periodicity.

Charges

When you become a customer, we will give you upfront details of any charges applicable to

the products chosen by you.

You can also find out about our charges by: asking our staff at the branch where you have

your account looking on our website.

If we increase any of these charges or introduce a new charge, it will be notified at least one

month before the revised charges are levied / become due.

We will tell you the charge for any other service or product before we provide that service or

product, and at any time you ask.

We will give you details of any charges we levy for using ATMs.

Terms and Conditions

When you become a customer or accept a product for the first time, we will give you the

relevant terms and conditions for the service you have asked us to provide.

All written terms and conditions will be fair and will set out your rights and responsibilities

clearly and in plain language. We will only use legal or technical language where necessary.

Changes to Terms and Conditions

When you become a customer, we will tell you / notify about changes to terms and

conditions through our quarterly statement of accounts and the Bank's Website.

24 Pradeep Kumar


Normally, changes [other than interest rates] will be made with prospective effect giving

notice of at least one month. If the changes are to your disadvantage, you may close the

account at any time up to two months from the date of the notice without having to pay any

extra charges or interest for doing this.

Changes in the interest rates on our products [deposits and advances] from time to time will

be notified as per the Bank's policy/practice.

Advertising and Marketing

We will make sure that all advertising and promotional material is clear, fair, reasonable and

not misleading.

We will seek your specific consent for giving details of your name and address to any third

party, including other entities in our group, for marketing purposes.

We would like to provide you with the entire range of financial services products, some of

which are our own products while some others are the products of our

group/associate/entities or companies with whom we have tie-up arrangements. We will

however tell you about our associate / group entities or companies having business tie-up

arrangements with us and if you so desire, direct their staff / agents for marketing their

products.

25 Pradeep Kumar


Account Operations

Statements

To help you manage your account and check entries on it, we will give you account

statements at regular intervals unless this is not appropriate for the type of account you have

[like an account where you have a passbook].

We will normally provide you with a statement periodically as per our policy. S/B account

statements are directly sent to customers address at quarterly intervals and Current account

statement normally at monthly intervals. A customer may also obtain monthly statement on

S/B account from a branch on request.

You will also be able to see your last few transactions on ATM or through your internet

account wherever such facilities are available with us.

We will also send you statement of accounts by e-mail, if you so desire, provided we have

such facility with us.

Clearing Cycle / Collection Services

We will tell you about the clearing cycle, including when you can withdraw money after

lodging collection instruments and when you will start to earn interest.

We will give immediate credit to your account for outstation cheques lodged by you and will

allow you to draw against such instrument[s] under collection as per prevailing RBI

guidelines. [Presently, instruments upto Rs.15, 000 tendered by customers operating accounts

satisfactorily.]

We will pay interest on funds involved if collection is delayed beyond the normal period as

stipulated by RBI.

Cash Transactions

You should count notes and ensure correctness before leaving the cash counter.

Avoid writing anything on the face of the notes and co-operate with us by remitting notes in

unstapled / unstitched conditions as required under RBI's Clean Note Policy.

Direct debits and standing instructions

We will act upon mandates given by you for direct debits [say ECS] and other standing

instructions.

Cheques issued by you

26 Pradeep Kumar


We will keep original cheque paid from your account or copies, for such periods as required

by law.

If, within a reasonable period after the entry has been made on your statement, there is a

dispute about a cheque paid from your account, we will give you the copy of the cheque as

evidence.

We will tell you how we will deal with unpaid cheques and out-of-date [stale] cheques.

Accounts operated/services rendered as agents of Government and RBI [applicable only to

banks authorized to handle the business]

While opening Pension Accounts or investing in Relief / RBI Bonds, we will tell you about

operational guidelines for such accounts / transactions.

Foreign exchange services offered through authorized

offices

We will provide you details of the service, exchange rates and charges that apply to foreign

exchange transactions, which you are about to make. If this is not possible, we will tell you

how these will be worked out.

If you want to transfer money abroad, we will tell you how to do this and will give you:

A description of the services and how to use them details of when the money you have sent

abroad should get there and the reasons for possible delays the exchange rate applied when

converting to the foreign currency, and details of any commission or charges which you will

have to pay. If money is transferred to your bank account from abroad, we will tell you the

original amount received and charges, if any. If the sender has paid all charges, we will not

deduct charges when we pay the money into your account excepting what is charged by our

Foreign Correspondent Bank.

We will guide you about regulatory requirements or conditions relating to foreign exchange

services offered by us as and when required by you.

Protecting your Account

We will tell you what you can do to help protect your accounts. You can find out more about

what you can do to help in section 11 of this Code.

27 Pradeep Kumar


In the event your cheque book, passbook or ATM/Debit card has been lost or stolen, or that

someone else knows your PIN or other security information, we will, on your notifying us,

take immediate steps to try to prevent these from being misused.

Cards and PINs

We will only send you a card if you ask for one or to replace a card you already have.

If you do not recognize a card transaction that appears on your statement, we will provide

you with more details. In some cases, we will need you to give us confirmation or evidence

that you have not authorized a transaction.

We will give you your PIN [Personal Identification Number] separately from your card. We

will not reveal your PIN to anyone else.

We will tell you about our systems to allow you to choose or change your PIN. This should

make it easier for you to remember the PIN of your choice.

Protection Confidentiality

We will treat all your personal information as private and confidential [even when you are no

longer a customer]. We will not reveal transaction details of your accounts to a third party,

including entities in our group, other than in the following four exceptional cases when we

are allowed to do

If we have to give the information by law

If there is a duty towards the public to reveal the information

If our interests require us to give the information [for example, to prevent fraud] but we will

not use this as a reason for giving information about you or your accounts [including your

name and address] to anyone else, including other companies in our group, for marketing

purposes

If you ask us to reveal the information, or if we have your permission to provide such

information to our group/ associate /entities or companies when we have tie-up arrangements

for providing other financial service products.

Wherever we have installed CCTV for close surveillance as part of security arrangements,

the same will be indicated.

28 Pradeep Kumar


What You Can Do To Protect Your Accounts

This section is all about what you can do to help prevent your accounts being misused.

Communication Link

Please make sure you let us know as soon as possible when you change your:

Name

Address

Phone number or

E-mail address [if this is how we communicate with you].

29 Pradeep Kumar


Checking your Account

We recommend that you check your statement or passbook regularly. If there is an entry,

which seems to be wrong, you should tell us as soon as possible so that we can sort it out.

If we need to investigate a transaction on your account you should co-operate with us and the

police or any other authority, if we need to involve them.

Taking Care

Taking care of your cheques, passbook, cards, PINs and other security information is

essential to help prevent fraud and protect your accounts. Please make sure that you follow

the advice given below:

Do not keep your cheque book and cards together

Do not keep the blank cheque leaves signed

Do not allow anyone else to use your card, PIN, password or other security information

If you change your PIN you should choose your new PIN carefully

Always learn your PIN, password and other security information, and destroy the notice as

soon as you receive it

Never write down or record your PIN, password or other security information

Always take reasonable steps to keep your card safe in your personal custody and your PIN,

password and other security information secret at all times

Keep your card receipts safe and dispose them of carefully

Never give your account details password or other security information to anyone unless you

know who they are and why they need them.

If you send a cheque through the post, it will help to prevent fraud if you clearly write the

name of the person you are paying the cheque to. Write such cheques with carbon on the

reverse to avoid chemical alterations if you are paying a cheque into a bank account, always

write on the cheque the name of the account holder[ABC Bank Account XYZ].You should

draw a line through unused space on the cheque so unauthorized person cannot add extra

numbers or names.

30 Pradeep Kumar


Precautions While Using Internet Banking Facilities

Visit our internet banking site directly. Avoid accessing the site through a link from another

site and verify the domain name displayed to avoid spoof websites.

Ignore any e-mail asking for your password or PIN.

We advise you not to use cyber cafés to access our internet banking site.

We advise you to update your PC with latest anti-virus software regularly. A suitable firewall

installed in a computer to protect your PC and its contents from outsiders on the internet

would be an added security measure.

What to do if you lose your cheque book, passbook, or card, or if someone else knows your

PIN it is essential that you tell us as soon as you can if you suspect or discover that:

Your cheque book, passbook, card has been lost or stolen or someone else knows your PIN,

password or other security information.

The best way of telling us about the loss will usually be by phone, using the numbers we

have given you, or by e-mail to the address we have given you for this purpose.

Alternatively, you may send a written communication to us immediately.

Cancelling Payments

If you want to cancel a payment or series of payments you have authorized, you should do

the following:

To stop payment of a cheque or cancel standing instruction given, you must tell us in writing

To cancel a direct debit, you can either tell the originator of the direct debit or tell us. We

recommend you do both. It may not be possible to cancel payments if you do not give

enough notice of your decision to cancel.

Liability for Losses

If you act fraudulently, you will be responsible for all losses on your account. If you act

without reasonable care, and this causes losses, you may be responsible for them.

Unless you have acted fraudulently or without reasonable care, your liability for the misuse

of your card will be limited as indicated by us while issuing the card.

31 Pradeep Kumar


Loans and Advances

Before we lend you any money or increase your overdraft, credit card limit or other

borrowing, we will assess whether we feel you will be able to repay it.

If we offer you an overdraft, or an increase in your existing overdraft limit, we will tell you if

your overdraft is repayable on demand or otherwise.

Wherever possible, reasons for rejection of loans will be conveyed to you.

Grievance Redressal Mechanism of the Bank

The Bank is committed to extend the best possible services to its customers. However, if you

are not satisfied with our services and wish to lodge a complaint, please feel free to click

here.

After examining the matter in detail, we will send you our final response within a period of 8

working days from the date of receipt of your complaint by us. In case the resolution is likely

to take longer time, we will inform you of the same through an interim reply.

If you are not satisfied with the resolution of your grievance(s) or your complaint is not

responded to, you can escalate your complaint to the Complaints Management Team, at

Central Office by mailing to [email protected]

After examining the matter, we will send you our final response within a period of 8 working

days from the date of receipt of your complaint by us at Central Office. In case the resolution

is likely to take longer time, we will inform you of the same through an interim reply.

If you are a customer of any of our overseas branch, you can escalate your complaint to the

President, International Banking Department at Central Office by mailing to

[email protected]

After examining the matter, we will send you our final response within a period of 10

working days from the date of receipt of your complaint by the President, International

Banking Department at Central Office. In case the resolution is likely to take longer time, we

will inform you of the same through an interim reply.

If the resolution still does not meet your expectations, you can write to the Chief Compliance

Officer by mailing to [email protected]

After examining the matter, we will send you our final response within a period of 8 working

days from the date of receipt of your complaint by the Chief Compliance Officer. In case the

resolution is likely to take longer time, we will inform you of the same through an interim

reply.

32 Pradeep Kumar


Within 30 days of lodging a complaint with us, if you do not get a satisfactory response from

us and you wish to pursue other avenues for redressal of grievances, you may approach

Banking Ombudsman appointed by Reserve Bank of India under Banking Ombudsman

Scheme. Details of Banking Ombudsman are displayed in the branch notice board. Our staff

would explain the procedure in this regard.

Debits towards service charges

In the event any charge is levied in violation of the arrangement, the Bank will reverse the

same when pointed out by the customer subject to verification of the agreed terms and

conditions.

Where it is established that the Bank had issued and activated a Credit Card without the

written consent of the recipient, the Bank would reverse the charges immediately.

Payment of Cheques after acknowledgement of Stop Payment Instructions

In case a cheque has been paid, after stop payment instruction is acknowledged by the Bank,

the transaction shall be reversed within 2 working days of the customer intimating the

transaction to the concerned branch. Interest, if eligible, shall also be paid.

Collection of instruments within India

In case of outstation cheques and other instruments sent for collection to centres within the

country, the following time schedule shall be adhered to for realization by branches:

a. For local cheques the time lines for local clearing will apply.

b. For outstation cheques there will be the following two categories of time lines:-

i. Cheques drawn on Axis Bank centers other than in the North Eastern states to be credited

within 7 working days.

ii. Cheques drawn on Axis Bank centres in the North Eastern states to be credited within 10

working days.

For non-Axis Bank centres, the Bank shall ensure collections on a 'Best effort' basis as it will

have to depend on the correspondent/drawee banks for this purpose. Accordingly, an outer

limit of 21 working days has been provided for the purpose of collection from these centres.

33 Pradeep Kumar


In case there is delay in realization beyond the time lines mentioned above, the Bank will pay

compensation at the Savings Bank rate of interest for any delay beyond the stipulated period

for collection on the amount of the instrument.

There shall be no distinction between instruments drawn on the Bank's own branches or on

other banks for the purpose of payment of interest on delayed collection.

Collection of instruments Lost-in-transit

The Bank would observe the following policy in case of cheques lost in transit:

a. In respect of cheques lost in transit or in the clearing process or at the paying bank's

branch, the branch should immediately bring the same to the notice of the accountholder so

that the accountholder can inform the drawer to record 'stop payment' and can also take care

that other cheques issued by him are not dishonored due to non-credit of the amount of the

lost cheques/instruments.

b. The branch will reimburse the accountholder with related expenses for obtaining duplicate

instruments and also pay interest for reasonable delays occurred in obtaining the same.

c. If the cheque/instrument has been lost at the paying bank's branch, the collecting branch

will have a right to recover the amount reimbursed to the customer for the loss of the

cheque/instrument from the paying banker.

d. The Bank will compensate the account holder in respect of instruments lost in transit in the

following way:-

i. In case intimation regarding loss of instrument is conveyed to the customer after the time

limit stipulated for collection for various centres, interest will be paid for the period

exceeding the stipulated collection period at the savings bank rate of interest.

ii. In addition, the Bank will pay interest on the amount of the cheque for a further period of

15 days at savings bank rate to provide for likely further delay in obtaining duplicate

cheque/instrument and collection thereof.

iii. The Bank would also compensate the customer for any reasonable charges he/she incurs

in getting duplicate cheque/instrument upon production of receipt, in the event the instrument

is to be obtained from a Bank/institution who would charge a fee for issue of duplicate

instrument.

In the event a cheque or an instrument accepted for collection is lost-in-transit or in the

clearing process or at the paying bank's branch (after it has been handed over to the bank for

collection by the customer), the Bank shall, immediately on coming to know the loss, bring

34 Pradeep Kumar


the same to the notice of the account holder so that he/she can inform the drawer to record

stop payment and also take care that cheques, if any, issued by him/her are not dishonoured

due to non-credit of the amount of lost cheques/instruments. The bank would provide a

certificate to evidence the loss of instrument to enable the customer to obtain a duplicate

from the drawer.

Funds transfers using NEFT/RTGS

The rate of compensation in case of delays in crediting the remittance proceeds received

through NEFT/RTGS beyond one day after receipt of the message at our gateway shall be at

the prevailing Repo Rate.

Foreign Exchange Services

It is the Bank's experience that the time norms for collection of instruments drawn on banks

in foreign countries differ from country to country and even within a country, from place to

place. The time norms for return of instruments cleared provisionally also vary from country

to country. Therefore, no compensation shall be paid for any delay in collection of cheques

designated in foreign currencies and sent to foreign countries.

The Bank will compensate the customer for undue delays in affording credit once proceeds

are credited to the Nostro Account of the Bank with its correspondent with full particulars.

The compensation in such cases shall be restricted to the extent of eligible interest at Savings

Bank rate which shall be calculated for the period after 30 days from the date our Nostro

account with the Correspondent bank has been credited.

The foreign exchange rate on the date of credit to our Nostro account shall be the basis for

calculation of interest irrespective of the rate prevailing on the date of claim/calculation/

settlement.

Failure to execute Standing Instructions

In case of any failure to execute Standing Instructions (and if it is directly attributable to the

Bank), the Bank shall compensate the customer to the extent of the financial loss not

exceeding Rs.100 per occasion subject to providing proper supporting documents for having

35 Pradeep Kumar


incurred the loss. In addition, service charges, if any, recovered for execution of the Standing

Instruction shall also be refunded.

Award of Compensation

The compensation as per this Policy is payable to a customer only in those cases where any

act of omission or commission is directly attributable to the Bank.

No claim could be considered based on qualitative aspects like reputation damages, loss of

image in the society, loss of business, loss of income etc.

The amount of compensation is restricted to the financial loss of the customer arising out of

the amount in the books of the Bank only and in any case, to the maximum limits prescribed

for various services given above.

The amount of compensation is restricted to the financial loss of the customer arising out of

the amount in the books of the Bank only and in any case, to the maximum limits prescribed

for various services given above.

Wherever applicable, the compensation shall be paid by replicating the effect obtained

through back-valuation of the affected transaction.

In case of compensation payable against deficiency in the service provided by an agency

nominated by the Bank, the compensation shall be the same as prescribed above.

36 Pradeep Kumar


ORGANIZATIONAL CHART OF AXIS BANK

37 Pradeep Kumar


1 Force Majeure

The Bank shall not be liable to compensate customers for delayed credit, if some unforeseen

event (including but not limited to civil commotion, sabotage, accident, fire, natural disasters

or other "Acts of God", war, damage to the bank's facilities or of its correspondent bank(s),

absence of the usual means of communication or all types of transportation, etc.) beyond the

control of the Bank which may prevent it from performing its obligations within the specified

service delivery parameters.

Axis Bank - Company Profile Snapshot

Company Profile: Axis Bank

Ticker: 532215

Exchanges: OTH BOM

2008 Sales: 88,162,000,000

Major Industry: Financial

Sub Industry: Commercial Banks

Country: INDIA

Employees: 9980

Business Description

38 Pradeep Kumar


Axis Bank formerly known as UTI Bank Ltd. The Group's principal activities are to provide

commercial banking services which include merchant banking, direct finance, infrastructure

finance, venture capital fund, advisory, trusteeship, forex, treasury and other related financial

services. The Bank has 651 branches and 2,764 ATMs.

PROBLEMS OF THE ORGANISATION

The erstwhile UTI Bank has changed its name to Axis Bank effective July 30, 2007. This is

the first time that a bank has gone in for a brand-change voluntarily; earlier names of banks

have been changed either due to a merger or an acquisition.

UTI brand was given in 1994 by its promoters and UTI Bank could use the brand only till

January 2008 as per Govt directives. Many unrelated shareholder entities like UTI

Technological Services, UTI Investor Services and UTI Securities were carrying the UTI

brand.7

Axis refers to a line of reference, stability and maturity. The new logo of the bank has the

same colour as the previous UTI logo but now uses the alphabet ‘A’ from the word Axis. The

bank is also publicizing the change through campaign titled “Twins both equal”.

Axis Bank has business of Rs.102,000 crore with a market capitalization of Rs.21,817 crore

making it the fifth largest in India. It has 60 lakh customers and communicating to them the

name change would be the prime exercise for the bank.

Immediately, the bank will replace signage’s in 8 metro cities while in other 250 cities by

September. It is also informing customers about the brand

change though Internet and mobile banking, ATM, call centres, newspapers and radio. Even

elements like cheque books, welcome kits, pay orders have been resigned to reflect the new

look.

Now with a name having universal appeal, the bank would now work towards becoming a

multinational bank and diversifying into other financial services like AMC, insurance and

restructure operations to reflect a modern approach to banking.

However, the bank also has a task in its hand to communicate to the customers and public

about its nature as having a UTI name prefixed would have implied that it has been a quasi-

39 Pradeep Kumar


government bank. It would also have to educate about its shareholding to further expand

itself into the retail business.

40 Pradeep Kumar


COMPETITION INFORMATION

RANKING BANK

1 CITY BANK

2 ICICI BANKING CORPORATION

3 HDFC BANK

4 AMERICAN EXPRESS

5 HSBC

6 STANDARD CHARTERED GRINDLAYS

7 STATE BANK OF INDIA

8 CANARA BANK

9 IDBI BANK

10 BANK OF AMERICA

11 ABN- AMRO BANK

12 GLOBAL TRUST BANK

13 BANK OF INDIA

14 CORPORATION BANK

15 BANK OF BARODA

16 DEUTSCHE BANK

17 PUNJAB NATIONAL BANK

18 BANK OF MAHARASHTRA

19 AXIS BANK

20 DENA BANK

21 BANK OF PUNJAB

22 BANK OF NOVA SCOTIA

23 CREDIT LYONNAIS

24 ANDHRA BANK

25 SYNDICATE BANK

26 UCO BANK

27 INDUSIND BANK

28 ORIENTAL BANK OF COMMERCE

41 Pradeep Kumar


29 BANK OF MADURA

30 KARUR VYSYA BANK

31 TAMILNADU MERCHANTILE BANK

32 STATE BANK OF PATIALA

33 JAMMU & KASHMIR BANK

42 Pradeep Kumar


OBJECTIVES

43 Pradeep Kumar


OBJECTIVE

The following study was done parallel when an individual or a group of individual are

current Marketing strategies of Axis Bank.

This project on identifying alternative channels of recruitment and employee retention has

been carried on behalf of Marketing Strategies of Axis Bank with the objective of

understanding the best strategies practices. The study is aimed at analysis of the current

Marketing strategies process for the entry level Customers and identifying alternative

channels of recruiting them.

MANAGERIAL USEFULNESS OF THE STUDY

Research simply means a search for facts – answers to questions and solutions to problems. It

is a purposive investigation. It is an organized enquiry.

In other words research means search for knowledge and research methodology is a

systematic way to solve he research problem. It is a science of study how the search is

actually done. It presents the source of data collection, the sampling procedures and tools of

investigation and limitations of the study. My research project has a specified framework for

collecting the data in an effective manner. Such framework is called “research design”.

OBJECTIVES

To study the benefits of this product provided by various banks.

To make comparative analysis with all the leading banks.

The primary purpose of this study is to present a clear picture of To recommend

strategies to enhance the promotion of banks.

How banking started in India.

44 Pradeep Kumar


To increase the competition in this sector so that the common people has the advantage of

enjoying quality services at a reasonable cost.

Insurance has a far reaching effect in synchronizing between the various service sectors.

So if this sector can grow, the prospects of the various other services sector remains to be

promising.

To know the consumer feedback.

To know the marketing strategies adopted to promote these products.

To make the private players responsible to the investors and not to the government

45 Pradeep Kumar


SCOPE OF STUDY

The research process consists of series of closely related activities. At times, first step

determines the nature to the last step to be undertaken why a research study has been

undertaken, how the research problem has been defined, in what way and why the

hypothesis has been formulated, what data has been collected and what particular

methods has been adopted and a host of similar other questions are usually answered

when we talk of research methodology concerning a research problems or study.

46 Pradeep Kumar


RESEARCH METHODOLOGY

47 Pradeep Kumar


RESEARCH METHODOLOGY

Sampling unit

Sample Unit: Retailers and Wholesalers.

Sample Size :It was not possible to cover the entire population of approximately

21000 Retailers in the Delhi and their remote locations where they are Located 250

retailers were studied by me for this research (nearly 2% of the population ).

Sample Procedure: To obtain a representative

Karkardumma

Biddya Vihar

Laxmi Nagger

Sakerpur

Sample, a probability sample of the population was drawn i.e. Cluster (area) sample,

where Delhi City was divided into 14 Area sample under five blocks of similar

Category-

Sampling Technique

While above two are best suited for explorative research, Survey research is best

suited for my purpose i.e.for Descriptive Research.

Sampling Area

IV Sampling Size 250 Retailers

48 Pradeep Kumar


DATA ANALYSIS

49 Pradeep Kumar


DATA ANALYSIS

1. Do you Know about Axis Bank?

(a) Yes - 92%

(b) No - 8%

Figures 1, 92% people out of 100 are aware of Axis Bank.

figure 1

50 Pradeep Kumar


2. Have you ever opted for services & products from Axis Bank?

(a) Yes - 61%

(b) No - 39%

figure 2

61% out of 100 people have opted for services & products from Axis Bank

51 Pradeep Kumar


3. How can open Savings Bank Accounts current account AXIS BANK?

(a) IDBI Bank 19%

(b) HDFC Bank 8%

(c) Axis Bank 42%

(d) CITI Bank 7%

(e) GE Capital 12%

(f) ABN AMRO Bank 2%

(g) Others 10%

Figure 3

%out of 100 want to open savings account vid Axis Bank.

52 Pradeep Kumar


4. How did you come to know about Home loan?

(a) Advertisement - 76%

(b) Word of Mouth - 14%

(c) Referred by your company / Friend- 10%

Figure 4

76% out of 100 came to know about home loans offered by Axis Bank through

Advertisement.

53 Pradeep Kumar


5. What made you select this particular bank for the services & Products?

Emi

Brand name

Procedures

Facilities

Policies

Advertisement

Figure 5

78% out 100 chose Axis Bank because of its Emi’s.

54 Pradeep Kumar


6. How do you like the Marketing strategy by different banks?

(a) Good - 68%

(b) Average - 19%

(c) Bad - 13%

Figure 6

68% out of 100 people find Marketing Strategies by Axis Bank as Good.

19% out of 100 people find Marketing Strategies by Axis Bank as Average.

13% out of 100 people find Marketing Strategies by Axis Bank as Bad.

55 Pradeep Kumar


7. What motivates you for selecting any bank for home loan.

(a) EMI - 76%

(b) Brand name - 4%

(c) Procedures - 9%

(d) Facilities - 3%

(f) Policies - 8%

Figure 7

76% people chose Axis Bank for its Emi’s in home loans

56 Pradeep Kumar


8. Which Bank would you prefer if you have never applied for Car Loan?

(a) IDBI Bank - 12%

(b) HDFC Bank - 17%

(c) AXIS Bank - 15%

(d) CITI Bank - 7%

(e) GE Capital - 5%

(f) ABN AMRO Bank - 3%

Fi

gure 8

56% people would prefer Axis Bank for car loans

57 Pradeep Kumar


SWOT ANALYSIS

58 Pradeep Kumar


SWOT ANALYSIS

STRENGHTS

1. Market position is strong

2. Aggressive foreign bank

3. Shareholders return has grown more than 7 times

4. Maintains a position as a leading Asian Cash Management provider

5. Brand – Axis Bank modern and dynamic look appeals to the growing middle income

earners

6. One of the most profitable MNC in India

7. Improved product proposition

8. Better geographic balances

9. Multi-cultural organization that offers opportunities to good managers

WEAKNESS

1. HDFC, IDBI, ABN-AMBRO, Citibank and HSBC are dominant players

2. Has disadvantage due to last entry

3. Fewer locations as compared to other MNC banks

4. Service delivery perception is weak

OPPORTUNITIES

1. Branch expansion for rapid growth

2. Increase focus on value creation in whole banking

3. Improve shareholders return

4. Build market share in consumer banking as consumer banking continues to offer

highest potential for growth

5. Broadening of the demographic base

6. Tie ups with master card networks

59 Pradeep Kumar


7. Integrated sales and service approach

8. Can offer a complete corporate package into under proposed corporate relationship

THREATS

1. IDBI is pitching in quite aggressively

2. Citibank is expanding in new markets

3. Competitive products and offers from IDBI and HDFC

4. Proposed networking of all branches in next 6 months

5. Reduced business in OECD business.

60 Pradeep Kumar


LIMITATION

61 Pradeep Kumar


LIMITATION

1. Satisfaction being a relative term cannot be much commented on as it varies from

individual to individual and can only be measured if the respondent has also experienced the

services of a similar organization in a similar sphere.

2. One major constraint was the small sample size as it may lead to slight variations in the

end result.

3. A few customers were either quite reluctant to part with their precious time or had

problems in attaching weights and emphasis to different attributes.

4. Customers in refinance cases were in direct contact with the dealers and were more

bothered with getting the delivery of the car rather than handling the delays on availing the

finance as it did not directly affect them.

5. There is bound to be a subjective bias in the results because of inconsistency and selective

perception about the opinions of the respondents.

62 Pradeep Kumar


MARKETING STRATEGY

63 Pradeep Kumar


MARKETING STRATEGY OF AXIS BANK

Deposits schemes

Savings bank accounts

Opening of Accounts

Savings Bank Accounts should be opened in accordance with the Bank’s rules framed for the

conduct and maintenance of such accounts and also in conformity with the directives issued

by Reserve Bank of India and India Banks Association from time to time.

Minimum Deposit

The minimum amount with which a Savings Bank Account can be opened is Rs. 100/- for

non Computerized Branch & Rs, 500/- for Computerized Branch. It should be ensured that

this minimum balance is maintained by the account holder at all times. However a minimum

balance of Rs. 250/- should be maintained in the account if cheque book facility is required

by the account holder. If the minimum balance of Rs. 250/- is not maintained in such an

account in any month, the Branch should charge service charges on such accounts at the rate

fixed by the Bank from time to time.

The minimum amount with which Savings Bank Account can be opened is Rs. 100/- in Rural

& Semi-Urban, Rs. 250/- in Urban & Metro.

For all branches except computerized branches minimum amount of balance should be:

(i) Rs. 100/- for Savings Bank Account without cheque book facility

(ii) Rs. 250/- with cheque book facility.

Rs, 500/- for computerized branches with or without cheque book facility.

If the minimum balance of Rs. 250/- or Rs. 500/- as the case may be is not maintained in

such account the Branch should charge service charges on such accounts at the rate fixed by

Bank from time to time.

The following institutions are permitted by R.B.I. to open Savings Bank

Accounts

(i) Small Farmers’ Development Agency (SFDA)

64 Pradeep Kumar


(ii) Marginal Farmers’ &Agricultural Laborers’ Development Agency (MFALDA)

(iii) Drought Prone Area Programme (DPAP)

(iv) District Development Authority (DDA)

(v) “District Rural Development Agency/Society (DRDA/DRDS)

(vi) Integrated Rural Development Programme (IRDP) and its sub-scheme- Development

of Women and Children in Rural Areas (DWCRA).

(vii) State level Khadi and Village Industries Board (KVIB)

(viii) Integrated Tribal Development Agency (ITDA)

(ix) Agricultural Produce Market Committee (APMC)

(x) Fish Farmers’ Development Agency (FFDA)

(xi) University/College Teachers ‘/Employees’ Provident Fund Accounts

(xii) Municipal Employees’ Provident Fund Accounts

(xiii) Gujarat Scheduled Caste Economic Development Corporation

(xiv) Self help groups (registered or unregistered)

(xv) Nagar Panchayat, Nagar Palikas and Municipal Bodies in relation to funds given as

subsidy under Jawahar Rozgar Yojana towards the Scheme of Urban Micro

Enterprises (SUME) provided the account is opened with a Public Sector Bank i.e.

State Bank of India, its subsidiaries or any other nationalized Bank) funds of the

Jawahar ‘Rozgar Yojana (Central Share as well as State Share) can be kept in Savings

Bank Account to be opened by Zillah Parishad DRDA/ Gram Panchayat. The interest

amount accrued on such deposits shall be treated as JRY additional resources.

(xvi) Any other Institutions permitted by RBI from time to time.

Who Can Open Savings Bank Accounts Current Account

The account can be opened by the following:

(i) An individual in his/her own name

(ii) An individual jointly with other personals

(iii) An employee can opened only one Bank account & if he/she is already having more

than one account in same or in different Bank intimation can be send to his employer

in writing with detail of such account & also the reason therefore. Such intimation

65 Pradeep Kumar


should be given to the Bank whenever he desires to open another account in the same

or other Bank.

(iv) A guardian on behalf of minor

(v) One person for another person with the stipulation that the deposit can be withdrawn

by the latter on his/her attaining majority or some other specified time.

(vi) A minor above the age of 10 years and who knows how to read and write, (in his own

name or jointly with any other person) subject to certain conditions laid down for

opening Minor Saving accounts.

(vii) A Hindu undivided family (H.U.F.) only if the HUF is not engaged in

trading/business activity and such account is opened in the name of Karta.

(viii) The following categories of Institutions/Organizations can, as per directives of

Reserve bank of India open Savings Bank Accounts on usual terms of payment of

interest:

(a) Societies registered under Societies Registration act, 1860 or by other corresponding

law in force in a State or Union territory.

(b) Companies governed by the Companies Act, 1956”which have been licensed by the

Central Government under Sec.25 of the said Act or corresponding provision in the

Indian Companies Act, 1913 and permitted not to add to their names the words

“Limited” or ‘Private limited”.

(c) Organizations I Institutions which are exempted from payment of Income Tax under

Income Tax Act1961.

(d) Institutions specifically charged with the task of rendering social or economic

assistance to the weaker and under-privileged sections of society, not falling under

3.5 below and whose entire income is exempted from payment of Income Tax under

the payment of Income tax Act, 1961.

Interest free Savings Bank Accounts

Branches should not open Savings Bank Accounts of ineligible application not even Interest

Free Account. They include other Banks, Regional Rural Banks, Co-Operative Banks, Land

Development Banks, Government Developments bodies depending upon budget allocation

for performance of their functions, Municipal Corporations/Committees, Panchayat Samitis,

state Housing Boards, Water and Sewerage/Drainage Boards, State Text Book Publishing

66 Pradeep Kumar


Corporations/societies, Metropolitan Development Authority State / District level Housing

Co-operative Societies etc. or any ,trading, business or professional (e.g. advocates,

Chartered Accountants) concerns whether such concerns are proprietary, partnership firm,

Company or association.

Current Accounts

A current account is a running and active account which may be operated upon any number

of times during a working day. There are no restrictions as to the number and amount of

withdrawals from a current account. These accounts are normally opened by businessmen,

joint stock companies, institution, public authorities and public corporations. No interest is

payable on these accounts arid hence they are a source of comparatively low cost lendable

resources to the Bank. All efforts should therefore be made to mobilize maximum deposits in

Current Accounts.

Special Features of Current Accounts

The Reserve Bank of India prohibits permanent of interest on balances laying in current

accounts. Except in the following cases:

(a) On current account balances of Regional Rural Banks at half percent below the

borrowing rate fixed for RRBs for borrowing from the sponsor Bank.

(b) In case of balances laying in current account in the name of deceased individual

depositor or sole proprietorship firm from the date of death of the depositor, till the

date of repayment to the legal heirs, representatives or nominee at the rate of interest

on Savings Bank account applicable on the date of payment.

There are no restrictions on the number and amount of withdrawals.

34

Third party cheques and cheques with proper/regular endorsements are collected for the

credit of current account balances.

Overdraft facilities can be given to deserving current account holders on request as per

prescribed procedure.

Incidental charges are levied on all current accounts to recover a portion of cost of

maintenance, stationery and other services rendered to current account customers.

67 Pradeep Kumar


The facility of overprinting of names on cheque forms is generally extended to customers

keeping sizeable balances and having large operations in their accounts. However, printing of

the customer’s logo on the cheques is not permitted.

Who can open Current Accounts?

Any person(s) or parties capable of entering into contract (i.e. a person who is not a minor, is

not insane or an undischarged insolvent) can open a Current Account. These are:

(i) Individuals-Singly or jointly

(ii) Joint Hindu Undivided Family

(iii) Firms-Proprietorship or Partnership

(iv) Clubs and Associations

(v) Joint Stock Companies

(vi) Executors and Administrators

(vii) Trustees

(viii) Liquidators

(ix) Local Authorities/Corporations

Opening of Current Account of Individual/s

While opening a current account of individual/s, the Bank’s prescribed form should be use

(See Annexure 1, 2 and 3). The individuals desiring open the account should be guide to fill

up the form properly and legibly. Alterations,’ if any, should be authenticated by the,

depositors. Two copies of passports size photographs of depositor be obtained and affixed on

the form. The guidance for filling up the form will include the following aspects:

Title of the account.

Initial deposit.

The status of account holder.

Declarations regarding the banking/borrowing arrangements.

Address.

Operating instructions.

Nominations.

Name(s) and Specimen Signature(s).

Introduction.

Signature of the Officer.

Issuance of cheque book.

68 Pradeep Kumar


Accounts of Sole Proprietorship Concerns

It is an account in the name of a firm or business owned by one individual who is its

proprietor. It is operated upon by the individually in his capacity as the sole Proprietor of the

firm. The name of the account may be different from the name ‘Of the proprietor.

All the formalities for opening a current account as mentioned in paragraph 4 above have to

be completed.

Joint Hindu Family Account (Hindu Undivided Family

Accounts)

Generally, a Joint Hindu Family has some property owned by all the members as ancestral

property. The ownership of such property passes on to the members of the family according

to the Hindu Law. According to Mktakshara School of Hindu Law, every male member of

the family acquires an. interest in the joint property by birth. After the enforcement of Hindu

Succession Act 1956, the share of the deceased coparcener who was a member of the Joint

Hindu Family divisible amongst the wife, daughters and other relatives as given in the Act. A

daughter is a member of the H.U.F. only till she is unmarried.

While opening and conducting an account in the name of Joint Hindu Family, a has to bear in

mind the following aspects

(i) The family business and its assets are managed by the eldest male member known as

Karta. The sons, grandsons, great grandsons lineally descended from a common

ancestor are called Co-parceners. The H. U. F. also includes their wives.

(ii) Joint Hindu Family firm is not a partnership; therefore, it is not governed by the

Partnership Act.

(iii) The account should be opened in the name of the Karta or in the name of family

business.

(iv) The form for “Jointly Family Declaration” (Annexure 9) should be obtained duly

signed by Karta and other major members of Joint Hindu Family y.

(v) The names all the minors with their date of birth/ages should be noted on the account

opening form.

69 Pradeep Kumar


Inoperative Current Accounts

In this cases where there are no operations for 6 months or more and minimum balance is not

being maintain as shown below, a service charge of Rs. 25/-per every 6 months. (March &

September) should believed, till the balance is reduced to Rs. 100/-. There’ after the account

should be closed and the balance should be appropriate under advice to the Account holder

with a request to return the unutilized cheque leaves an9 to get the Pass book updated.

Minimum Balance in Current Account:

Metro Urban Semi-Urban Rural

3000 3000 1000 1000

In account where, the minimum balance is over the above and there are no transactions for 6

months or more, the account holder should be contacted to operate the account. Alternatively,

a suggestion should be made to them to open a Savings Bank account if eligible to do so. If

not so eligible, and want their Current Account to continue, the same be allowed and a

service charge should be levied as per H. 0. circular issued from time to time.

In all such cases, as in the case of unsatisfactory accounts it is desirable to give sufficient

notice before closing down the account.

FDS (Fixed Deposit Scheme)

In a term deposit scheme the investment can be made from 15 days to 10 years and

interest is payable as per chart at quarterly intervals. Monthly payment of interest is also

made on specific request at discounted rates.

Interest may also be drawn at half-yearly intervals at the option of the depositor where

upon the interest as per chart will be compounded at quarterly/ intervals.

As an illustrative example, if a deposit of Rs.l0,000/- is placed for five years at 11% p a.,

the interest receipt options would be as follows:

70 Pradeep Kumar


Quarterly interest Rs. 275.00

Half yearly interest Rs.5 57.56

Monthly interest Rs. 90.83

A thoughtful feature of this scheme is that if the account holder also holds a savings bank

account, and if a cheque is required to be returned for want of funds, money can be arranged

to be automatically transferred from the FD account. This facility is available for deposits of

Rs.1000/- and above and on specific request.

SDS (Samruddhi Deposit Scheme)

This is a cumulative deposit scheme where deposits are accepted in periods which are

multiples of three months. The interest as per chart is compounded at quarterly intervals and

paid on maturity along with the deposit amount.

Axis Bank Savifix Deposit

Axis Bank Savifix takes care of your hard earned money at high Fixed Deposit rates and

liquid like saving. It’s a wonderful product at customer’s disposal. Grab it, as the balance

amount in Fixed Deposit will earn Fixed Deposit Interest for the period it remained in the

Fixed Deposit at the contracted rate on the date it was made Fixed Deposit. If customers

already have Saving Account at Axis Bank’s computerized branch convert it to Savifix RD

RD (Recurring Deposit)

This is a scheme for accumulation of savings. Deposits are accepted under the scheme in

monthly installments for a predetermined period, Interest at rates given in the chart are added

on the accumulated balance and compounded at quarterly intervals.

Installments under the scheme can be remitted at any branch of the bank for onward

remittance to the branch where the account is maintained.

LLRD (Loan Linked Recurring Deposits

This is a scheme similar to the RD scheme with a facility to take a loan equivalent to three

times the maturity value of the deposit for purchase of a consumer durable. The loan is

71 Pradeep Kumar


however restricted to 75% of the value of the consumer durable or Rs.75, 000/ whichever is

lower.

AXIS Bank Freedom Deposit Scheme

Axis Bank Freedom Deposit is a Liquid Fixed Deposit. What this means is that upto 90% of

the initial principal amount can be withdrawn by simply writing out a cheque. Meanwhile the

whole amount will continue to get interest for the entire period. The Axis Bank Freedom

Deposit requires a minimum period of 1 year and a maximum of 5 years. Individuals, in

single or joint names, corporate bodies and firms can open a Axis Bank Freedom Deposit.

(P.S.: Interest rates are subject to change without notice. Under cumulative interest schemes,

the total interest payable or the maturity value gets mod if Tax Deduction at Source (TDS)

becomes applicable. At present TDS is applicable for domestic deposits where annual

interest payable during a financial year is Rs.10, 000/- or higher and in case of NRO accounts

irrespective of the amount)

Any Time Facility

ICICI, as a part of its investor-friendly measures, has introduced a unique concept – any time

facility – in select cities. This enables investors to sell select Axis Bank safety bonds at

market related prices, all through the year.

Under this facility, an investor can access his savings by selling back a maximum of 50

bonds a day to Axis Bank directly, without going through the BSE or the NSE, where the

Axis Bank safety bonds are listed eligibility investors and bond holders. However,

applications can be made by:

Individuals in their own names or in the names of their minor children to whom they

are natural/legal guardians.

Joint holders (not exceeding three).

Hindu undivided families through the Karta.

Companies, corporate, trusts, scientific and/or industrial research organizations,

societies registered under the applicable laws in India.

Provident / superannuation / gratuity funds.

Public financial institutions, statutory corporations, registered partnership firms,

association of persons.

72 Pradeep Kumar


Mutual funds.

Commercial / co-operative / regional rural banks.

NRIs, OCBs, FIIs, foreign nationals, foreign corporate or their nominees/ agents,

subject to RBI permission.

b. Procedure

Just fill the application form and submit it at any of the authorized collection centers in your

city, along with the bond certificate(s) and uncased interest warrants, if any and you will

receive an acknowledgement slip. Submit a separate application form for each code of bond.

Submit a separate application form for each folio number. An investor can sell up to a

maximum of 50 bonds on any day. After verification and scrutiny of the application form and

the attached certificate(s) and warrants, a cheque will be issued and sent to you. The payment

cheque/ warrant would be issued in the name of the sole/ first bondholder.

c. Electronic clearing service (ECS) facility

The reserve bank of India (RBI) has introduced the concept of ECS through the

clearing house to obviate the need for issuing and handling paper instruments and thereby

facilitate improved customer service. Axis Bank may make available such facility at the

centre where the RBI provides the facility.

Prices of bonds

The bonds are sold as per a price card issued by Axis Bank on a weekly basis to reflect the

prevalent market rates. The price card with the current rates for sale for each of the bonds

available under this facility will be made available at all designated collection centers and

leading brokers in your city.

The price of the bond depends upon the accumulation of interest on the bond and the interest

rates prevailing at the time of sale.

The price applicable is the price as on the date the application form is submitted to the

designated collection centre

73 Pradeep Kumar

http://www.icici.com/bonds/atf/pf_bndatfman603.htm


2. GOI RELIEF FUNDS

RELIEF BOND - BASIC FEATURES

Relief bonds were first introduced in December 1987 to tide over drought conditions then

prevalent in India. The main features of these bonds are as follows:

MATURITY PERIOD 5 YEARS

RATE OF INTEREST 8.0% PER ANNUM

RISK ATTACHED Low risk

MINIMUM INVESTMENT RS. 1,000/-

MAXIMUM INVESTMENT RS 2 LAKHS

LOAN FACILITY AVAILABLE

OVERALL LIQUIDITY GOOD

DATE OF ISSUE

THE DATE OF ISSUE OF BONDS WILL BE

DATE OF RECEIPT OF SUBSCRIPTION IN

CASH OR THE DATE OF REALISATION OF

DRAFT/PAY ORDER AS THE CASE MAY

BE.

RELIEF BOND -PAYMENT OF INTEREST

Non-cumulative: interest will be paid uniformly at the half yearly rests on 1st July

and 1st January every year by crediting the bond holder's account or by pay

order/demand draft. Broken period interest from the date of issue upto 30th June or

30th December as the case may be will be paid.

Cumulative: interest at the rate of 8.0% per annum compounded with half yearly

rests, will be paid to the investor on maturity along with principal.( the maturity value

of the bonds shall be Rs 1516/- for every rs1000/-).further, interest at the rate of 8.0%

per annum will be payable to such of the holders who do not encash their bonds on

the expiry of five years, at half yearly rests or compounded with half yearly rests as

the case may be. Such interest will be payable from the date maturity till the bonds

are redeemed.

74 Pradeep Kumar


Relief bond -tax concessions

Income-tax: interest on the bonds will be exempt from income-tax under the income-

tax act, 1961.

Wealth tax : the bonds will be exempt from wealth-tax under the wealth- tax act,

A nomination made by a holder may be varied by a fresh nomination or may be

cancelled by giving notice in writing to the bank

If nominee is a minor, the holder of bond ledger account may appoint any person to

receive the bond/amount due in the event of his/her death during the minority of the

nominee.

Relief bond - eligibility

Individual in his or her individual capacity.

Individual capacity on joint basis

Individual on behalf of a minor as father/ mother/ legal guardian

Hindu undivided family (HUF)

Non-resident Indian (NRI) without right of repatriation

Nomination

A sole holder or a sole surviving holder of a bond may nominate one or more person

who shall be entitled to the bond and payment thereon in the event of his/her death.

When two or more persons are nominated, in the event of death of a nominee, the title

of the bonds vests in the surviving nominee/s.

A nomination made by a holder may be varied by a fresh nomination or may be

cancelled by giving notice in writing to the bank.

If the nominee is a minor, the holder of bond ledger account may appoint any person

to receive the bond/amount due in the event of his/her death during the minority of

the nominee.

75 Pradeep Kumar


3. MUTUAL FUNDS

Features

Mutual funds online works as below :

Investor clicks on mutual funds bazaar on the site and selects the fund he/she wants to

invest in

After selecting the fund the investor clicks on applications

A screen is displayed to the investor, which gives option to invest online if he/she is

an Axis Bank internet banking customer or download form

When customer chooses to invest through Axis Bank internet banking, he is displayed

"online application" form. He/she has to fills the form online and submits the same

Upon submitting the customer is taken to Axis Bank internet banking log in screen

and after log in, directly to the payment authorization screen

Customer authorizes the transaction and he is taken back to mutual fund online

Customer is displayed the application number and transaction confirmation code

The customer gets mutual funds unit of date if application is within cutoff time. In

case of post applicant will get units upon allotment being made

The mutual fund approaches customer/s for their signatures. The first applicant, who

should be an Axis Bank internet banking customer, should sign as Axis Bank records.

The mutual fund may seek verification of first applicant's signatures from Axis Bank

The transaction is complete for the Axis Bank internet banking customer at this point

of time

When customer chooses to download application, he is displayed "download

application" form. He/she has to fills the form, sign it and submits the same in a

designated branch of Axis Bank along with payment instrument.

76 Pradeep Kumar


Liquid plan

TYPE OPEN-ENDED LIQUID DEBT FUND

INVESTMENT PATTERN MONEY MARKET 80% & DEBT INSTRUMENTS 20%

FUND OBJECTIVE TO GENERATE STEADY AND CONSISTENT RETURNS FROM A

BASKET OF HIGH QUALITY LIQUID DEBT INSTRUMENTS.

INVESTMENT HORIZON SUITABLE FOR INVESTORS LOOKING FOR STEADY RETURNS

ARE RELATIVELY LOW RISK ACROSS A MEDIUM TO LONG

TERM HORIZON.

NET ASSET VALUE CALCULATED & DECLARED ON EVERY BUSINESS DAY.

BUSINESS DAY A DAY OTHER THAN (1) SATURDAY AND SUNDAY, (2) A DAY

ON WHICH BANKS ARE CLOSED IN MUMBAI OR (3) A DAY ON

WHICH SALE AND REDEMPTION OF UNITS IS SUSPENDED BY

THE TRUSTEES.

APPLICATION

AMOUNT

RS. 15,000/-( PLUS IN MULTIPLES OF RE. 1)

MIN. ADDITIONAL

INVESTMENT

RS. 5000/-

PORTFOLIO

DISCLOSURES

NA

ENTRY LOAD NIL

EXIT LOAD NIL

REDEMPTION

CHEQUES ISSUED

WITHIN 1 BUSINESS DAY

MINIMUM

REDEMPTION AMT.

RS. 100/-

CUT OFF TIME 12.00 NOON

77 Pradeep Kumar


SYSTEMATIC

INVESTMENT PLAN

MONTHLY: MINIMUM RS. 9000 + 6 POST-DATED CHEQUES FOR

RS. 1,500 EACH. QUARTERLY: MINIMUM RS. 9000 + 2 POST-

DATED CHEQUES FOR RS. 4,500 EACH.

SYSTEMATIC

WITHDRAWAL PLAN

MINIMUM OF RS. 5000/-AND MULTIPLES THEREOF.

SWITCH FACILITY AVAILABLE

TAX BENEFITS CAPITAL GAINS TAX, INDEXATION BENEFITS AND SEC 54EA &

54EB.

NOMINATION

FACILITY

AVAILABLE

MODE OF HOLDING SINGLE, JOINT OR ANYONE OR SURVIVOR

DATE OF ALLOTMENT JUNE 24, 1998

Income plan

TYPE OPEN-END DEBT FUND

78 Pradeep Kumar


INVESTMENT

PATTERN

DEBT SECURITIES 75% & MONEY MARKET & CASH 25%

FUND OBJECTIVE GENERATE STEADY AND CONSISTENT RETURNS FROM A BASKET OF

HIGH QUALITY DEBT INSTRUMENTS THROUGH PROACTIVE

MANAGEMENT AIMED AT CONTROLLING CREDIT, INTEREST RATE,

LIQUIDITY AND VALUATION RISKS.

INVESTMENT

HORIZON

SUITABLE FOR INVESTORS LOOKING FOR STEADY RETURNS IS

RELATIVELY LOW RISK ACROSS A MEDIUM TO LONG TERM

HORIZON.

NET ASSET VALUE CALCULATED & DECLARED ON EVERY BUSINESS DAY

BUSINESS DAY A DAY OTHER THAN (1) SATURDAY AND SUNDAY, (2) A DAY ON

WHICH BANKS ARE CLOSED IN MUMBAI OR (3) A DAY ON WHICH

SALE AND REDEMPTION OF UNITS IS SUSPENDED BY THE TRUSTEES.

APPLICATION

AMOUNT

RS. 5,000/-( PLUS IN MULTIPLES OF RE. 1)

MIN. ADDITIONAL

INVESTMENT

RS. 500/-

PORTFOLIO

DISCLOSURES

MONTHLY

ENTRY LOAD NIL

EXIT LOAD NIL (0.50% IF EXIT WITHIN 6 MONTHS)

79 Pradeep Kumar


REDEMPTION

CHEQUES ISSUED

WITHIN 3 BUSINESS DAYS

MINIMUM

REDEMPTION AMT.

RS. 500/-

CUT OFF TIME 3.00 P.M.

SYSTEMATIC

INVESTMENT PLAN

MONTHLY: MINIMUM RS. 3000 + 6 POST-DATED CHEQUES FOR RS.

500 EACH. QUARTERLY: MINIMUM RS. 3000 + 2 POST-DATED

CHEQUES FOR RS. 1,500 EACH.

Systematic

withdrawal plan

Minimum of rs. 500/-and multiples thereof.

Switch facility Available

Tax benefits Tax free dividend, capital gains tax, indexation benefits and sec

54ea & 54eb

Nomination facility Available

Mode of holding Single, joint or anyone or survivor

Date of allotment July 9, 1998

Systematic investment

plan

Not available

Systematic withdrawal

plan

Not available


Tax benefits Tax free dividend, capital gains tax, indexation benefits and sec

54ea & 54eb

Nomination facility Available


Date of allotment August 19, 1999

80 Pradeep Kumar


Growth plan

type Open-ended equity fund

Investment

pattern

Equity & equity related 95% & debt, money market and cash 5%

Fund objective To seek to generate long-term capital appreciation from a portfolio that

is invested predominantly in equity and equity related securities.

Investment

horizon

Suitable for investors who seek an exposure to the stock market on a

long-term basis.

Net asset value Calculated & declared on every business day

Business day A day other than (1) Saturday and Sunday, (2) a day on which banks and

stock exchanges are closed in Mumbai or (3) a day on which sale and

redemption of units is suspended by the trustees.

Application

amount

Rs. 5,000/-(plus in multiples of re. 1)

Min. Additional

investment

Rs. 500/-

Portfolio

disclosures

Quarterly

Entry load 1.5%

Exit load Nil

Redemption

cheques issued

Ol;within 3 business days

Minimum

redemption amt.

Rs. 500/-

Cut off time 3.00 pm

81 Pradeep Kumar


Systematic

investment plan

Monthly: minimum Rs. 3000 + 6 post-dated cheques for rs. 500 each.

Quarterly: minimum Rs. 3000 + 2 post-dated cheques for rs. 1,500 each.

Systematic

withdrawal plan

Minimum of Rs. 500/-and multiples thereof.


Tax benefits Tax free dividend, capital gains tax, indexation benefits and sec 54ea &

54eb

Nomination

facility

Available


Date of allotment July 9, 1998

82 Pradeep Kumar


Tax plan

type Open-ended equity linked saving scheme

Investment

pattern

Equity & equity related 90% & debt, money market and cash 10%

Fund objective To seek to generate long-term capital appreciation from a portfolio that is

invested predominantly in equity and equity related securities.

Investment

horizon

Suitable for investors seeking to benefit from sec. 88 tax concessions.


Business day A day other than (1) Saturday and Sunday, (2) a day on which banks or

national stock exchange are closed in Mumbai or (3) a day on which sale

and redemption of units is suspended by the trustees/amc.

Application

amount

Rs. 500/-(plus in multiples of re. 1)

Min. Additional

investment

Rs. 500/-

Portfolio

disclosures

Quarterly

Entry load 1%

Exit load Nil

Redemption

cheques issued

Within 3 business days after lock-in period of 3 years.

FMCG

83 Pradeep Kumar


type Open-ended FMCG Sectoral fund

Investment pattern Equity & equity related in FMCG companies 90% in & debt, money

market and cash 10%

Fund objective To seek to generate long-term capital appreciation from a portfolio that

is invested predominantly in equity and equity related securities of

FMCG companies.

Investment horizonSectoral fund, suitable for investors seeking an exposure to the FMCG

sector.


Business day A day other than (1) Saturday and Sunday, (2) a day on which banks or

national stock exchange are closed in Mumbai or (3) a day on which sale

and redemption of units is suspended by the trustees/amc.

Application

amount

Rs. 5,000/-(plus in multiples of re. 1)

Min. Additional

investment

Rs. 500/-

Portfolio

disclosures

Quarterly

Entry load 1%

Exit load Nil

Redemption

cheques issued

Within 3 business days

Minimum

redemption amt.

Rs. 500/-

Cut off time 3.00 p.m

Systematic

investment plan

Monthly: minimum rs. 3000 + 6 post-dated cheques for rs. 500 each.

Quarterly: minimum rs. 3000 + 4 post-dated cheques for rs. 750 each.

84 Pradeep Kumar


Systematic

withdrawal plan

Minimum of rs. 500/-and multiples thereof.


Tax benefits Tax free dividend, capital gains tax, indexation benefits and sec 54ea &

54eb

Nomination

facility

Available


Date of allotment March 31, 1999

85 Pradeep Kumar


Cards

1. Credit cards

2. Pick a card

Presently, they have three main types of cards

True Blue

Bandhan: add-on card with self-set limits

Web based access to get details about your statements, payment status and requests

24-hour customer call centre

Access to all visa approved atms

Lowest annual fee of rs 300

Dial-a-draft at a 1% fee

Accepted across 1,10,000 merchant establishments in india and Nepal

Accident insurance of up to rs 3 lakh

Purchase protection of rs 10,000

Credit shield of rs 10,000

Earn while you spend: Axis Bank plus reward program

Airlines and railway bookings

Accepted at select petrol pump stations

2.Sterling silver

Bandhan : add on card with self set-limits web-based access to get details about your

statements, payment status and requests

24-hour customer call center


Comprehensive insurance (household, baggage, hospitalization, personal accident) for

both primary and add-on cards.

Dial-a-draft at 1% fee

Balance transfer at 1.75%

Comprehensive travel benefits

86 Pradeep Kumar


Purchase protection of rs 20,000

Credit shield of rs 25,000


International validity at over 18 million merchant establishments globally

Accident insurance of up to Rs 6 lakh

Airlines and railway bookings


3.Solid gold

International validity at over 18 million merchant establishments globally

Invitation annual fee of rs 1,200

Web based access to get details about your statements, payment status and requests

24-hour customer call centre


Dial-a-draft for free

Balance transfer at 1.5%

Zero lost card liability

Complimentary global one calling card

Access to global customer assistance services

Purchase protection up to Rs 40,000

Credit shield of Rs 50,000

Comprehensive travel benefits

Bandhan: add-on card with self set limits

Comprehensive insurance (household, baggage, hospitalization, personal accident) for

both primary and add-on cards

Airline and railway bookings



Basic features

Bandhan: you can freely present a maximum of two add-on cards to your wife, sister,

brother, parents or children above 18 years of age. To apply for this add-on card, referred to

87 Pradeep Kumar


as "bandhan", just call the Axis Bank24-hour customer call centre and place your request

with an executive. A form will be sent to you.

\Self set limit: the only card that allows you to pre-define your own credit limits. you can

request for a limit lower than what your are eligible for. You can even preset the monthly

spending limits on the "bandhan" card. Any transactions over the specified 'spend limit'

will be declined. This monthly spending limit can be reset every billing cycle by just

calling the Axis Bank24-hour customer call centre and place your request with the

executive. Your credit limit will be changed on-line and come in to force from the next

billing cycle.

Balance transfer facility: if you own credit cards issued by other banks and wish to apply for

an Axis Bank credit card, you can transfer the outstanding balance from your other card(s) on

to the Axis Bank credit card. This transferred outstanding will attract an interest rate of just

1.75% for the sterling silver card and 1.50% in case of a solid gold card. And what’s more,

this beneficial rate of interest is applicable for six months (this special interest rate will not be

applicable for new purchases). You can transfer any amount from a minimum of rs 2,000 to a

maximum 75% of the available credit limit on your Axis Bank credit card.

Photo-card: you have the option of having your photograph and signature digitally imprinted

on the front of the card. This provides you extra security at any of the merchant

establishments. In fact, it can be used as a proof of identification.

In the interest of your own security, we strongly recommend that you opt for a photo-card. If

you had decided not to opt for a photo card when applying, just call the Axis Bank24-hour

customer call centre and place your request with the executive. A form will be sent to you.

You are then required to mail the completed form to us at: Axis Bank credit card operations

p.o. Box 7931

Tulsiwadi.

Mumbai – 400 034

A photo-card will be yours at no extra cost.

Wide acceptance: your Axis Bank credit card is affiliated to visa and is welcomed at all visa

merchant establishments (look for the visa logo at 1,10,000 establishments across india and

Nepal).

88 Pradeep Kumar


The solid gold card and sterling silver card are accepted globally by over 18 million visa card

- accepting establishments worldwide.

"Axis Bank internet banking" web based access: we offer you "Axis Bank internet banking" -

secure access to information on your credit card transactions on the web. This will web-

enable you to:

View previous billing cycle details

View current billing cycle details

View payment status

Duplicate pin mailer request

Request for a replacement card

Apply for an add-on card

24-hour customer care: the Axis Bank24-hour customer call centre is equipped with a state-

of-the-art system that ensures your queries being handled efficiently and promptly.

Cash advance facility: you can withdraw cash on your card, 24-hours a day, from any visa

participating member bank atm. During banking hours you can also withdraw cash, over-the-

counter, from any Axis Bank branch across the country.

For your protection we have limited the maximum withdrawal to rs 15,000 in a single day.

Transaction charges as applicable will be charged.

Dial-a-draft: to order a draft from the convenience of your home, simply call the Axis

Bank24-hour customer call centre and ask for a draft, payable anywhere in India and

favoring any company or individual (you can order a draft up to the available limit cash limit

on your account). The draft will be delivered to your mailing address.

For each draft request, a transaction fee of 1.0% of the amount withdrawn, subject to a

minimum of rs 50, will be levied. However, for the gold card holders, no transaction fee will

be levied.

In addition to the transaction fee, a service charge will also be levied from the date of

transaction to the date of repayment. The amount of the draft will be billed in your monthly

credit card statement.

Revolving credit facility: when you receive your bill, you need not pay the entire bill amount.

You have the flexibility of selecting any of the following payment options:

Pay the total amount due.

89 Pradeep Kumar


Pay only the minimum amount due (5% of the bill amount subject to a minimum of rs

100) and the balance can be carried forward to subsequent statements.

Pay any amount ranging from the minimum amount due to the total amount due.

Auto debit facility: if you have an account with any Axis Bank branch, you have the option

of making the payment of your monthly credit statement (either the minimum amount due or

the total amount due) directly through your bank account. Simply give a written instruction

to the Axis Bank to directly debit the payment from your account every month or call the

Axis Bank the 24-hour call centre.

Lost card liability: in case the card is lost or stolen, call the Axis Bank24-hour customer call

centre and report the loss of your card. A new card will be sent to you within 72 hours of

reporting this loss.

You are protected from any financial liability arising out of transactions done on your

missing card, from the time you report the loss to us. The lost card liability (48 hours pre-

reporting) is restricted to a maximum amount of rs 2,500 in the case of true blue and sterling

silver card holders and zero liability in case of solid gold card holders.

utility payments: you now have the convenience of paying your utility bills - telephone and

mobile phone bills through your Axis Bank credit card

Purchase protection: anything you buy on your Axis Bank credit card is insured against

damage or loss due to fire or theft. You can claim the value of the product damaged or lost

within 90 days of date of purchase. Purchase protection for our true blue card holders is rs

10,000, rs 20,000 for our sterling silver card holders and rs 40,000 for our solid gold card

holders.

Global one calling card: this calling card is a special complimentary offer to all our globally

valid credit cards (solid gold and sterling silver). It offers the flexibility of making calls while

traveling overseas with out being surcharged. There is also a special global tariff plan, details

of which are available at (011) 647 38 74 and (011) 647 38 75 (between 9.30 am - 6.00 pm

from Monday to Saturday). You can also fax your queries at (011) 647 38 77. To avail of this

facility you will have to mail the completed global one form to the address indicated on the

form

Temporary credit limit enhancement: there will be times when you feel the need for an

increase in your credit limit to enable you to make increased purchases on your card. To avail

90 Pradeep Kumar


of the temporary credit limit enhancement, all you need to do is to call our customer call

centre and make your request. The executive will be able to increase the limit on-line.

Please note that this facility is available only after 9 months of membership and based on

credit history.

Rewards Program

Axis Bank plus - rewards program is a special bonus plan that allows you to earn points

every time you use your card. These reward points are awarded for all types of transactions,

except fees (joining, annual, and renewal), balance transfers and service charge transactions.

Earning points: every Rs 100 spent on the card, earns you one reward point. In effect, a spend

of Rs 2,500 will amount to 25 reward points, which is equivalent to a value of Rs 25 given

back to you. When you use your card for high-value purchases (booking an airline ticket,

buying a consumer durable), you earn more reward points instantly.

First time usage bonus: the first time you use your Axis Bank credit card, 25 bonus points are

credited complimentarily to your rewards account.

Accelerator points: when your spends in any billing cycle exceed rs. 5,000, you earn an

additional 10% points over and above the normal reward points.

Redemption: to begin redeeming your reward points, you need to have a minimum of 150

points. The redemption of reward points can be done annually against a reward catalogue or

against your renewal fees.

INSURANCE FREEBIES

Insurance: Axis Bank offers you the most comprehensive insurance related benefits. In

addition to accident insurance, we offer you medical insurance, credit shield, purchase

protection, baggage insurance and household insurance.

91 Pradeep Kumar


feature / benefit Blue Silver Gold

Personal accident insurance

Air accident Rs 3 lakh Rs 6 lakh

*(Rs 3 lakh)

Rs.15 lakh

*(rs.6 lakh)

Any other accidentRs 1 lakh Rs 2 lakh

*(Rs 1lakh)

Rs.5 lakh

*(rs.2 lakh)

Household insurance Nil Rs.50,000 Rs.1,00,000

Baggage insurance Nil Rs.10,000 Rs.25,000

Hospitalization benefit policy Nil Rs.25,000 Rs.75,000

* Figures in brackets indicate insurance on add-on cards.

International insurance benefits:

feature / benefit Blue Silver Gold Remarks

Delay in flight Nil Usd 250

Time excess of

12 hrs

Usd 250

Time excess of 12

hrs

Also applicable for globally

valid supplementary gold

cards

Delay in receipt

of checked

baggage

Nil Usd 300

Time excess of

12 hrs

Usd 300

Time excess of 12

hrs

Also applicable for globally


cards

Loss of checked

baggage

Nil Usd 1200 Usd 1200 Also applicable for globally


cards

Missing of flight

due to transit



cards

Loss of travel

documents



cards

Hijacking Nil Usd 250 per hour Usd 250 per hour Also applicable for globally

92 Pradeep Kumar


Maximum of

12hrs plus time

excess of 12

hours

Maximum of 12hrs

plus time excess of

12 hours


cards

Travel benefits

Now you can leave your travel and hotel bookings to us. All you need to do is call the local

travel office of Cox & Kings in your city to take care of all your travel needs – be it business

or leisure travel. All your railway and airline reservations, hotel bookings, car rentals and

even travel-related documentation will be taken care of.

That's not all. We offer you a substantial discount of 2.5%* on basic domestic airfares and

4.5%* on basic international airfares. All you need to do is to book your tickets through Cox

& Kings and charge it to your Axis Bank credit card.

d. Alerts

Free yourself of all the trouble of keeping track of various things to remember pertaining to

credit card/s.

You can set alerts for:

Due date reminders

When your credit card limit is approaching

Documents - salaried (any one)

Pay slip#

Pay

certificat

e

Itr Salary

certificate* Form 16

Appointment letter

within come details

Public ltd Yes No Yes Yes Yes Yes

Psu / govt Yes Yes Yes No Yes No

Mnc Yes No Yes Yes Yes Yes

Pvt ltd No No Yes No Yes No

Proprietors No No Yes No Yes No

93 Pradeep Kumar


hip

Partnership No No Yes No Yes No

# Not greater that two months old

* Original

Documents - self employed

Itr

Pvt ltd Yes

Proprietorship Yes

Partnership Yes

Professionals Yes

Basic features

Combining the acceptability of a credit card and the prudence of an atm card, the

Axis Bank cash debit card is a most convenient accessory for you. No more fear of

overspending. No more searching for the nearest atm. Only more comfort and convenience!

With the Axis Bank cash card you can shop using visa electron's on-line debit program, and

debit your Axis Bank account directly when transacting at any visa accredited member

establishment or atm across the world!

The ncash card comes packed with the following features:

Direct on-line debit to your savings account. Accepted at over 30,000 merchant

establishments & 1,000 visa atms all over India. International card, offering deposit access at

over 11 million merchant establishments’ visa atms all over the world. 24 hour customer call

centre - 1901333444 (all regions except Baroda, Ahmedabad) for Baroda - 98250-07222 for

Ahmedabad - 6566399. Attractive reward points for purchases. Itemized billing on your

bank statement. Zero lost card liability. Annual charges: Rs 99/-

Rewards Program:

The bank will reward your ability to spend wisely. Our special cash reward program will

credit 1 loyalty point to your account for every Rs. 100 that you spend at merchant

establishments. You will need to accumulate at least 100 loyalty points within a period of 6

94 Pradeep Kumar


months before the loyalty points are redeemed in your account. Each loyalty point will carry

a redemption value of re. 1.

Lost card, insurance:

In case your card is lost or stolen, you just need to call our 24 hour customer call centre at

1901333444 (all regions except Baroda, Ahmedabad) for Baroda - 98250-07222 for

Ahmedabad - 6566399. A new card will be issued and sent to you within 1 week of reporting

this loss. You are protected from any financial liability arising from any purchase

transactions done on your card, from the time you report the loss to us.

With the Axis Bank cash card you can shop using visa electron's on-line debit program, and

debit your Axis Bank account directly when transacting at any visa accredited member

establishment or atm across the world!

ATM

ATM features Axis Bank ATMs is the easiest and the fastest way to directly access your

account. Round the clock. Round the year. Only ATMs cards are issued in the following

branches.

With the Axis Bank ATM card, you can :

Operate up to 10 accounts with a single ATMs card of yours in the same branch.

Withdraw up to rs.15,000 if the ATMs is on-line per day per card (connected to our

central switch), or rs.3,000 if the ATMs is off-line. (Rs. 25000 for Axis Bank select

customers)

Deposit up to 30 notes at one time. You can also deposit your cheques through the

ATMs (only available on ATMs with deposit facility)

BENEFITS

Same day clearance - your cash deposits made during business hours will be credited

to your account on the same day.

Transfer funds between your accounts in the same branch and view the balance in

your account (when the ATMs are on-line).

95 Pradeep Kumar


Cheque book request - you can even request for a cheque book for any of your

accounts linked to your card through the ATMs

Mini-statement - you can get a mini-statement listing the last ten transactions in any

of your accounts linked to your ATMs card (currently this is only possible with on-

line ATMs)

Eligibility

To posses an Axis Bank ATMs card, you must be: Over 18 years of age and a

savings account holder with authority to operate the account in an individual capacity

or a current account holder (only for a current account in individual name,

proprietorship or partnership)

Basic features

Collector is a smart new drop-box placed at all Axis Bank branches, extension counters

& ATMs centers spread all over Mumbai. It is a quick, convenient and highly effective

mechanism to

Collect bill payment for service providers. Instrument sorting, clearing and

preparation of daily MIS add further value to the entire proposition.

Installment payment

Customer survey feedback

Application form collection

Card drop prospects generation

Data base generation

Locations

Our collectors are located in office localities, commercial areas, airports, petrol

pumps and popular routes taken by office going population. And most importantly in

residential areas too.

96 Pradeep Kumar


FINDINGS

AND

RECOMMENDATIONS

97 Pradeep Kumar


FINDINGS AND RECOMMENDATIONS

1. It was found that all the branches have not been able to contribute their due share to the

overall growth of the bank.

2. About 14% of the branches have show decline in deposits levels whereas about 16% of

branches could not show even 5% growth in deposits.

3. It was also found that the market share of the Bank in deposits was l,6l°/ in March

1999, which has been coming down and reached 1.22% in 2004. During 2004-2005 the

growth in banks aggregate deposits was 1.09% as against the banking industry growth of

1 7.29% which has resulted in to further slippage in Bank market share to 1 .6% in

March, 2005.

4. There is a need for improving the corporate dealing as it is a necessary for the

survival of any organization in the corporate world.

5. The bank requires aggressive advertising through the print and the electronic media,

as very less proportion of population is aware of Dena Bank.

6. Computerizations of all the branches should be done as early as possible.

7. To improve its accessibility, the bank should increase its ATM network.

8. The bank should initiate services like online trading and E-commerce.

9. The reasonable balanced growth of all the branches is necessary for overall

development of the Bank.

10. There is a need for improving the growth in Retail Banking because the pace of

growth in retail banking is very slow in spite of good product lines.

11. The NPA (Non Performing Assets) management should be the most crucial concern

area for the Bank therefore the Bank should plan and implement certain corrective

measures to decrease its NPAs.

98 Pradeep Kumar


Recommendations

After completing my can say that Axis Bank is one of the top banks performing in India. It

was started in 1955 and since then it has kept it’s dignity in spite of increasing competition. It

has collaborated with certain foreign companies in order to increase its asset value and

goodwill. It has been dealing in many products like accounts, demits, loans, cards etc.

The marketing strategies adopted by the bank are innovative and impressive. Since majority

of population stays in villages the bank has to explore the rural markets also. In addition to

this the bank should have a branch in every city of the country. By keeping a regular check

the operating cost can be minimized.

The main aim of the bank should be bringing money from other countries to india. From the

findings it is clear that there is an intense competition in banking industry and as a result

prices are declining at a regular pattern. The reason for this increasing competition is the

increase in demand and aggressive promotional campaigns done by the banks.

99 Pradeep Kumar


BIBLIOGRAPHY

100 Pradeep Kumar


BIBLIOGRAPHY

The information has been derived from various reliable sources:

1. Books and authors:

Banking theory law and practices by “Sundharam and Varshney”

Research methodology by “C R Kothari”.

Marketing research by “S L Gupta”

2. Newspapers and magazines:

Economic times

Times of India

H.T

India Today

3. Web-sites:

http://www.axisbank.com/

http://www.axisbank.com/xmlapplication/aboutus/financials/images/Annual-Report-2008.pdf


101 Pradeep Kumar



http://www.axisbank.com/


Questionnaire

102 Pradeep Kumar


ANNEXURE

Questionnaire

1. Name: _____________________________

Age : _____

2. Occupation

Service

Profession

Business

Others

3. Do you know about products & services of Axis Bank ?

Yes

No

4. Have you ever opted for services & products from any other bank?

Yes

No

5. If Yes,

Which Bank have you taken from?

IDBI Bank

HDFC Bank

UTI Bank

CITI Bank

6. How often you visit your bank?

0-3 times

4-6 times

7-9 times

Above 10 times

7. How did you come to know about the services & products?

Advertisement

Word of Mouth

103 Pradeep Kumar


Referred by your Friend

Referred by relatives

8. What made you select this particular bank for the services & products?

Convenient location

Procedures

Facilities

Working hours

Advertisement

9. How do you like the services & products by your bank?

Very good

Good

Neutral

Bad

Very bad

10. Would you like to make any suggestions about your bank?

________________________________________

________________________________________

________________________________________

________________________________________

104 Pradeep Kumar


THANKS

105 Pradeep Kumar

Pradeep

Documents

largest bank

foreign banks

private sector banks

nationalized banks

psu banks

state bank of india

banking sector

result analysis