TABLE OF CONTENT Chapter Name Page no. 1 Logo of the company 2 2 Introduction History ,Vision, core values, organizational structure, address of Head office and few other branch offices 3-10 3 Business portfolio 11-14 4 Marketing strategy, service mix and competitive strategy 15-18 5 Corporate 19-24 1
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TABLE OF CONTENT
Chapter Name Page no.
1 Logo of the company 2
2 Introduction
History ,Vision, core
values, organizational
structure, address of
Head office and few
other branch offices
3-10
3 Business portfolio 11-14
4 Marketing strategy,
service mix and
competitive strategy
15-18
5 Corporate governance 19-24
6 Expansion plan 25-27
7 Financial analysis 28-31
8 Share price analysis 32-34
9 Achievements 35-40
10 Competitors 41
11 Bibliography 42
Bar graph (showing expansion in branches and ATM) -- 26
VisionTo be the preferred brand for total financial banking solAXISons for both corporate and individuals Mission o Customer Service and Product Innovation tuned to diverse needs of Individual and corporate clientele.
o Continuous technology up gradation while maintaining human values.
o Progressive globalization and achieving international standards.
o Efficiency and effectiveness built on ethical practices.Values o Customer Satisfaction through
Providing quality service effectively and efficiently
Smile, it enhances your face value" is a service quality stressed on
Periodic Customer Service Auditso Maximization of Stakeholder value o Success through Teamwork, Integrity and People Vision20 15 and Core Values VISION 2015: o To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology CO REVALUES
The main products of AXIS Bank are Saving Account, Current Account and Demat Account. The other products are Home loan, personal loan, Insurance, Credit cards, etc.
For better marketing of products, the products are categorized under Axis Bank and Axis Sales.
The price of the product depends upon the services provided by the Bank on the respective product to the customers. Detailed pricing changes from time to time and the same can be found on the website of Axis bank.
PLACE
Place plays an important role in tangibilizing service offerings. Quality of service is perceived by many customers in the form of place of delivery- locational appeal, interiors, ambience, etc. If a bank is located in a crowded market the place or location will be a negative tangibilizes. Providing excellent tangibles in the form of place or location and interiors is particularly important for appealing to the customers segment. More recently, some of the private banks in India like AXIS Bank are providing very attractive tangibles in the form of their locations, exteriors and interiors.
PROMOTION
Promotion can tangibilize services in different forms:
Visualization tangibilizes services through hoardings, TV and print campaigns or advertisements. Physical representation in services has a good promotional appeal to customers like use of colors to symbolize wealth and status. Service providers use documentation in their promotions in support of their claims for dependability, popularity and responsiveness
PEOPLE
People are a common factor in every service. And people tangibilize services. Good people (means good performance) make good or successful services. Bad performers deliver bad services.
PROCESS
Customer defined business process- Process innovations and continuous improvement
through people involvement.
Result oriented approach- Each process has been designed by first planning the desired
results.
Axis Bank is constantly taking initiatives to offer the best in class service that seek to
enhance customer experience.
PHYSICAL EVIDENCE
Reduce paper usage- Due to technological innovations such as use of Finacle software for
core banking solutions.
It has positioned it self as a bank which gives higher standard of services through product
innovation.
Satisfies the diverse need of individual and corporate clients.
o Segmentation: These banks consider the customer service as the base for
segmentation. These banks segment their market on the basis of the customer who give emphasis on the services and believe in using technically advance product.
o Targeting: These banks are targeting the people of the urban and sub-urban areas
who believe in higher set of product and want speedy services. o Positioning:
These banks are positioned as the technically advance and delivering higher set of customer services.
Competitive Strategy of Axis Bank
o For the private sector banks Axis bank has differentiated against these banks on the base of the maximum area
coverage. In this group some banks have no reach to the some part of the country. So Axis bank has got the advantage of reach in terms of this segment. The level of service is same in almost all banks but Axis bank has also got the advantage of the product innovation which not all the banks are doing in this group.
Competitive Strategy of Axis Bank
o For the government sector banks Axis bank has differentiated itself from this group on the base of the high level of
service quality and through product innovation. In terms of the reach Axis bank is not anyway near to these but it has created a different set of segment of the people who believe in the higher set of services.
Competitive Strategy of Axis Bank
o For the International Banks
For these types of banks Axis bank differentiated itself on the base of the reach and coverage to the people. The service level is some what same or these are providing good services than Axis bank is
Code of Conduct for DirectorsList of Do's and Don't's Applicable to the Directors of Private Sector Banks (As Circulated by Reserve Bank of India)The Board of Directors of Axis Bank has Adopted the same at its meeting held on 18th February, 2005Do's * Attend the Board Meetings regularly and effectively. * Study the Board papers thoroughly and use the good offices of the Chief Executive for eliciting any information at the Board meeting. * Ask the Chairman to furnish you with the Board papers and follow-up reports on a definite time schedule.* Involve yourself as Director on the Board thoroughly in the matter of formulation of general policy and also ensure that performance of the bank is monitored adequately at Board levels.* Be familiar with the broad objective of the bank and the policy laid down by the Government and the Reserve Bank.*All constructive ideas for the better management of the bank and for making valuable contribution would be welcome.* You must work as a team and not sponsor or be prejudiced against individual proposals. The management on its part is supposed to furnish full facts and complete papers in advance.* Try to give as much of your wisdom, guidance and knowledge as possible to the management.* Try to analyze the trends of economy, assist in the discharge of management's responsibility to public and formulation of measures to improve customer service and be generally of constructive assistance to the bank management.Don't's* Do not send any instruction to any individual officer of the Bank or give direction to individual officer in any matter.* Do not involve yourself in any matter relating to personnel administration - whether it is appointment, transfer, posting or a promotion or a redressal of individual grievances of any employee.* Do not interfere in the day-to-day functioning of the Bank.* Do not approach or influence for sanction of any kind of facility from an individual branch manager or any other officer.* Do not involve yourself in the routine or every day business and in the management functions.* Do not participate in the Board discussion, if a proposal in which you are directly or indirectly interested comes up for discussion. Disclose your interest will in advance to the Chief Executive.* Do not reveal any information relating to any constituent of the Bank to anyone as you are under oath of secrecy and fidelity.* Directors should not send for individual officers of the Bank or give directions to such officers on any matter.
* You should discourage the individual employee or unions approaching you in any matter.* You may indicate your directorship of the Bank on your visiting card/letter head, but the logos or distinctive design of the bank should not, however, be displayed on the visiting card/ letterhead.* Directors should not directly call for papers/files/notes recorded by various departments for scrutiny etc. In respect of agenda items to be discussed in the meetings, all information/ clarification that they may require for taking a decision will be made available by the executive.* Directors are expected to ensure confidentiality of the Bank's agenda papers/notes. Ordinarily, it is suggested that by way of abundant precaution, the Board papers may be returned to the Bank after the meeting.* Do not sponsor any loan proposal, building and sites for Bank's premises, enlistment or empanelment of contractors, architects, doctors, lawyers etc. Do not do anything, which will interfere with and/or be subversive of maintenance of discipline, good conduct and integrity of the staff.Code of Conduct for EmployeesThe Board of Directors of Axis Bank has adopted the same at its meeting held on 18th February,
2005
Code of Conduct Every officer shall undertake and perform his duties in such capacity and at such places
as he may be directed by the Bank.
Every officer shall maintain good conduct, discipline, punctuality and show courtesy
and attention to all persons in their transactions or dealings with the Bank.
. Every officer shall discharge his duties with utmost integrity, honesty, devotion and
diligence and do nothing which is unbecoming of him or which is likely to tarnish the
image of the Bank. Cases of fraud and dishonesty will attract penalty of dismissal.
An officer shall maintain secrecy about the affairs of the Bank and its customers and
will sign a declaration of fidelity and secrecy in the prescribed form.
No officer shall engage in any trade or business or accept employment or fee for any
work done by him outside the Bank.
No officer shall take an active part in politics and stand for election anywhere outside
the Bank.
No officer shall indulge in gambling or speculative activities in any shares, stocks,
securities, commodities or valuables. He can, however, make bonafide investment of his
own funds in such securities as he may wish to buy.
As Per SEBI (Investment Advice by Intermediaries) (Amendment) Regulations, 2001, it will be
necessary that whenever any of our employees in the course of providing investment advices,
speaks about any type of security (be it the Bank's shares or any other shares or debentures) to 20
of any member of his / her family* or in the name of any other person;all financial securities and bank deposits including cash balances owned or acquired or held by the officer;debts and other liabilities incurred by the officer directly or indirectly, including loans from the Bank.For the purpose of this Rule "Family" means
Spouse, whether residing with the officer or not, but does not include a legally separated spouseChildren or step children or adopted children of the officer whether residing with the officer or not and dependent wholly on such officer but does not include children or step children of whose custody the officer has been deprived of by or under any law; andAny other person related to, by blood or marriage to the officer or to the officer's spouse and wholly dependent upon such officer.The Bank may also, at any time, by general or special order, require an officer to furnish within
a period to be specified in the order, a statement of moveable or immoveable property owned,
held or acquired by the officer or on the officer's behalf or by any member of the officer's family
as may be specified in the order. Such a statement shall, if so required by the Bank include the
details of the means by which or the sources from which such property was acquired.
The above statement of Asset and Liabilities should be furnished in the enclosed format on or
before 30th June every year.
Non-submission of the above annual statements by officers would constitute an act of
misconduct under the Bank's Staff Rules for which disciplinary action may be taken by the
Bank.
Officers posted in branches and zonal offices should submit the form to their respective Zonal
Heads. Zonal Heads and officers in Central Office should submit their forms to the Senior Vice
President, HR Department at Central Office.
An officer, as a general rule, shall not accept gifts or other benefits other than of
nominal value from any individual or concern having official dealings with the Bank or
from any officer junior to him/her so as to avoid any possibility of such gifts or benefits
even appearing to compromise business or official relationships. Officers must use their
discretion in being satisfied that the gifts are indeed of nominal value.
No officer shall take or give or attempt to take or give any undue assistance or use or
attempt to use any unfair methods or means in respect of any examination or test
conducted or held by the Bank or any other authority or institution.
courteous and respectful manner and not take improper advantage of their position.
The Board Members and Senior Managers shall deal fairly with all stakeholders.
The Board Members and Senior Managers shall comply with all applicable laws, rules and regulations.
The Board Members and Senior Managers shall act in good faith, responsibly, with due care, competence and diligence, without allowing their independent judgment to be subordinated.
The Board Members and Senior Managers shall not use the Company’s property or position for personal gain.
The Board Members and Senior Managers shall not accept from or give to stakeholders, gifts or other benefits not customary in normal social interaction.
The Board Members and Senior Managers shall not use any information or opportunity received by them in their capacity as Directors or senior management in a manner that would be detrimental to the Company’s interests.
The Board Members and Senior Managers shall not use confidential information acquired in the course of their service as Directors or senior management for their personal advantage or for the advantage of any other entity.
The Board Members and Senior Managers shall help create and maintain a culture of high ethical standards and commitment to compliance.
Notes:
1. A Director or senior manager who has concerns regarding compliance with this Code should raise those concerns with the Chairman of the Board and the Chairman of the Audit Committee, who will determine what action shall be taken to deal with the concern.
2. There may be situations in which a Director would be in breach of his duty of confidentiality to another entity were he to disclose a conflict of interest to the Board of the Company. In such a situation, it shall be sufficient for the Director concerned to abstain from any participation in the matter concerned, without disclosing the nature of the conflict.
3. For this purpose “senior management” shall mean members of management one level below the executive directors and shall include all functional heads.
Axis Bank is looking to expand its operations and about 150-200 branches maybe opened across the country. Meanwhile, for the same reason about 4,500-5,000 employees may be hired for the financial year 2009-2010.About 300-350 people have actually been taken from tier-II and tier-III B schools and 50 freshers have been hired from the top B schools including IIMs and SP Jain. The main sectors where they are looking to hire are retail, small and medium enterprise (SME) and agriculture in particular. Increments are also expected for the financial year, but that would definitely be in line with the performance. However the exact numbers of increments and hires which will be happening in the financial year 2009-2010 will be decided in April.
Banks are now considering issue of dollar bonds to raise funds to finance their expansion plans.
Axis Bank will raise $300-500mn by issuing dollar bonds having a tenure of five and half years.
The bonds are likely to be priced about 280bps over US treasury bonds of similar maturity.
The notes have been rated ‘BBB-’ by S&P. The outlook on Axis has been revised to ‘stable’
from ‘negative,’ in line with the revision of India’s sovereign rating by S&P last week.
On 24 March, Bank of India sold 5-1/2 year, 4.75% priced dollars bonds to yield 235 basis
points more than similar maturity Treasuries, The Bank had hired Barclays Capital, Citigroup,
Deutsche Bank, HSBC and RBS for the deal.
Bank of India revived its dollar bond sale after scrapping a similar plan last month citing poor
market conditions. The issue is the lender’s fourth in US dollars and the notes are rated BBB-.
Branch & ATM Expansion
As on the quarter ended June 30, 08 the bank has 693 branches, 20 extensioncounters and 2904 ATMs most of which are concentrated in the mass affluentlocations in the metro and urban cities. It plans to open total 150 branches and450 ATMs in FY09 (42 branches and 140 ATMs already opened in Q1 FY09)
TRANSACTION NOTECARD BUSINESS The banks card business which comprises of credit cards, debit cards, pre-paid cardsand merchant acquiring business is a major contributor to the retail fee income.Ú The credit card business was launched in Aug 06 and over 486,000 cards havebeen issued till end June 08.Ú The total debit card base of the bank as on June 3th, 2008 stood at 9.98 mn,