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FINANCIAL OVERVIEW OF AXIS BANK & COMPARATIVE
STUDY OF CURRENT ACCOUNT AND SAVING ACCOUNT
WITH OTHER BANKS
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CERTIFICATE OF ORIGIN
This is to certify that has worked in AXIS BANK LTD., under the able guidance
and supervision of
The period for which she was on training was for 6 weeks, starting from report has
the requisite standard for the partial fulfillment the . To the best of our knowledge no
part of this report has been reproduced from any other report and the contents are
based on original research.
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ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task
remains incomplete without mentioning the people who make it possible. These are
the people whose constant guidance in several aspects of this report has made my
work successful. I feel delighted to express a few words of gratitude and response to
all those distinguished personalities who have guided and inspired me for the
successful completion of this report.
I deeply indebted to my industry guide for giving me the opportunity to do this
project under his guidance. I express my sincere gratitude for the continuous guidance
and encouragement that he has provided me to carry out the project work.
I have gratification in expressing my sincere thanks to my faculty guide for
providing the necessary advice and support during the course of this work.
Last, but not the least certainly, I pay sincere thanks to my family members and to all
my friends who have helped me directly or indirectly during the completion of work.
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DIRECTORS CERTIFICATE
This is to certify that research project title Financial overview of Axis
Bank and comparative study of current account and saving account with
other banks is carried by RAUSHAN AJIT student of PGDM II
(Banking & Finance) at AIT, School of Management, Greater Noida
under the supervision of Mr.RAHUL CHANDRA Faculty, AIT School
of Management Greater Noida.
This is an original work carried out by the said student to the best of my
knowledge and I recommended for the submission of this research
project.
Ex-Director
Prof. R. K. Verma
AIT School OF Management
Greater Noida
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STUDENT DECLARATION
I am RAUSHAN AJIT student of APEEJAY Institute of Technology,
School of Management, Course PGDM (Banking & Finance), declare
that the project report titled Financial overview of Axis Bank and
comparative study of current account and saving account with other
banks is a genuine research work undertaken by me and it has not been
published anywhere earlier.
Date: 26/08/10 RAUSHAN AJITPlace: GREATER NOIDA
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TABLE OF CONTENTS
CHAPTER NO. SUBJECT PAGE NO.
1 Executive Summary
2 Introduction
2.1 objectives
3 Literature Review
4 4.0 Industry Profile
4.1 SWOT Analysis(Industry)
4.2 Company Profile
4.3 SWOT Analysis
4.4 AXIS BANK Financial Position
5 Analysis
5.1 Savings Account at AXIS Bank
5.2 Current Account at AXIS Bank
5.3 Fixed deposit at AXIS Bank
5.4 Ratio Analysis6 Findings
7 Recommendations
8 Conclusion
9 Bibliography
10 Annexure-1
Income Statement
Annexure-2
Cash Flow Statement
Annexure-3
Balance Sheet
11 Case Study
12 Synopsis
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EXECUTIVE SUMMARY
The banking sector in India has become very much competitive in last few years with
the increasing growth of private and public sector banks. Day by day the competition
is most stringent and crucial.
I undertook training in AXIS bank limited for profiling to understanding the banking
operation and services provided by axis bank.
This project is basically being formulated to make a comparison of the current
account, saving account ,FD facilities being provided by the different banks, like
ICICI,HDFC, YES BANK leveling with the presence of AXIS BANK. The market
needs are continuously changing and so are the needs of the current account & savingaccount holders. So this project also represents the basic facilities being provided by
the covered banks and helps the required people to make their decisions while
choosing a bank for their current accounts, saving account & FD.
This study evolves a attempt to bring forward the various facilities being provided by
the top privatized banks as for the current account& saving account holders. Also the
significance of AXIS BANK has been brought forward in the report.
AXIS bank was established in and is working with larger assets side in private sector
banks. The quality of service is best among competitor.
Axis Bank is one of the fastest growing banks in the country and has an extremely
competitive and profitable banking franchise evidenced by:
Comprehensive portfolio of banking services including Corporate Credit, Retail
Banking, Business Banking, Capital Markets, Treasury and International Banking.
The major backup of any nation are the industrialists of the same and the prior to them
is the facility of the current accounts and customer of banks which open saving
account. Hence the facilities equipped in current accounts & saving account is always
a task for research.
The key learning that I learnt was the fact that I saw the real corporate world. What is
the pressure that each employee faces each day. I was working in a professional
working environment with professional working people. This was my real learning.
Apart from that I worked on real projects, learned how banks gives current account,
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saving account, FD information there customers. I also learnt how to communicate
with different types of clients. Working on the real time project made me learnt how
to read a bank statement.. I would thank AXIS BANK to give me such a immense
opportunity to work with them. I learned there working and functioning of the bank.
Axis bank is one of the fastest growing banks in India and has extremely competitive
and profitable banking franchise. Axis bank is the first new generation private sector
bank to be established in India under the overall reform programme initiated by
Government of India in 1991.Axis bank started its operation from 1994.
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INTRODUCTION
The corporate and the business world is always the back bone of any nation. So the
banking sector has always given its best to provide the same with the best available
services to make the purpose futile. Hereby in this report a comparison has been
made to bring forward the services being provided by various banks as related to the
current account, saving account.
OBJECTIVES:
1. To understand the business and competitive environment of AXIS BANK.
2. Understand how banking activities actually takes place in AXIS
BANK.
3. To gain an insight and in depth knowledge about banking
products of AXIS BANK
4. Compare services being provided by axis bank with major competitor in the
market.
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LITERATURE REVIEW
Saving account: A safe place to let the money flourish
Not long ago there were lesser number of banks in the country and the banking
services were also restricted to certain areas only. Usually, it used to take a huge
amount of time to make a single financial dealing. However, the situation has changed
in a better way after the stepping in of private and foreign banks in the country.
Nowadays, banking companies are chasing a customer-oriented approach, so as to
fulfill the needs of their consumers and to maintain that have also rolled-out severalnew products and services.
But it is the saving account, which the people of the country always depend upon. It is
the most beneficial investment instrument to place deposit money and earn interest.
The excellent aspect of this bank account is that it earns interest for the account-
holder. It is something like an investment, where the person invests his/her earnings
and gains interest as a return gift. However, the interest rates are not too good in the
opinion of many of the clients across the country since, they change from bank to
bank.
Savings accounts services are offered by virtually every the banks in the nation, but
the State Bank of India comes out to be at the top among the best popular alternatives
available in the market, while Punjab National Bank and ICICI Bank are other
favorite public and private banking organizations in India.
Going back to saving accounts again, SBI provides two types of saving accounts
which are saving account and saving plus account. Former account is for the
consumers who are looking forward to save for future monetary requirements,
whereas another bank account provides the advantage of saving account along with
term deposit account.
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In addition to this, it also offers money transfer functionality, by which transferring
cashto other accounts is quite an easy process. The online banking functionality for
maintaining saving account is also rendered by nearly every banking firm via which
one can check cash balance and can carry out all the compulsory dealings through the
banking firm's business website. This assists an individual in doing away with long
queues in banks. But make sure, one had better choose his/her type of saving account
according to budgetary requirements.
Current Account
The current account is one of the two primary components of the balance of
payments, the other being the capital account. It is the sum of the balance of trade
(exports minus imports of goods and services), net factor income (such as interest and
dividends) and net transfer payments(such as foreign aid).
The current account balance is one of two major measures of the nature of a country's
foreign trade (the other being the net capital outflow). A current account surplus
increases a country's net foreign assets by the corresponding amount, and a current
account deficit does the reverse. Both government and private payments are included
in the calculation. It is called the current account because goods and services are
generally consumed in the current period.
Saving Account V/s Current Account
Savings Bank Account:
These bank accounts are maintained by private individuals as well as retail financial
institutions. The amount saved earns interest and is subject to the issue of checks, only
if there is a clause permitting the same in the regulations supervising the transactionsof the bank in question. The Savings Account enables the customers to repeatedly
save liquid assets and subsequently earn monetary return in the form of interest.
Savings Accounts are now offered by most credit unions, commercial banks, loan
associations and mutual savings banks. The account has little or no scope to obtain
additional funds, but the money set aside and interest earned may be accessed via any
ATM or bank branch. These accounts also come with a debit card facility to enable
quick transference of funds. A Savings Account makes it mandatory to maintain a
certain amount of fund-balance for a minimum period of time. There are no
http://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Balance_of_tradehttp://en.wikipedia.org/wiki/Factor_incomehttp://en.wikipedia.org/wiki/Transfer_paymentshttp://en.wikipedia.org/wiki/Transfer_paymentshttp://en.wikipedia.org/wiki/Net_capital_outflowhttp://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://www.articlesbase.com/banking-articles/saving-account-a-safe-place-to-let-the-money-flourish-1410335.htmlhttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Balance_of_paymentshttp://en.wikipedia.org/wiki/Balance_of_tradehttp://en.wikipedia.org/wiki/Factor_incomehttp://en.wikipedia.org/wiki/Transfer_paymentshttp://en.wikipedia.org/wiki/Net_capital_outflow7/27/2019 50571336 Axis Bank Financial Overview of Axis Bank Comparative Study of Current Account and Saving Acc
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restrictions on access to funds via withdrawals, payments or transfers. Savings
Accounts offer the customer an itemized list or balance sheet of all financial
transactions conducted via a passbook or bank statement generated at the end of every
month.
Current Bank Account:
A Current Bank Account is a transactional account designed especially for the
business community. The account enables businessmen and entities to access flexible
payment methods and directly distribute money to vendors and suppliers from the
account. This is achieved via the check book facility, and special arrangements made
to accommodate standing orders, debit card payments and direct debits into the
account. A Current Account also comes along with an overdraft facility that enables
the businessman to borrow money from the bank to meet any urgent business
commitment. Current Accounts also come along with the 'offset mortgage' facility
that allows the business entity to purchase property and benefit from the reduction in
the rate of interest. This 'offsetting' of a credit balance is basically offered against the
incurred mortgage debt. Current Accounts attract a higher rate of interest, both earned
and payable, since the volume of transactions and savings are on the higher side.
These accounts are designed to make business transactions free of personal-handling
of liquid funds and ensure the availability of funds when most necessary via exclusive
Internet banking. The account is run with the primary aim of ensuring that profitable
business transactions do not run into deficit due to non-availability of funds.
Investing in Fixed Deposits
A fixed deposit account allows you to deposit your money for a set period of time,thereby earning you a higher rate of interest in return. At the end of maturity period
the depositor gets its principal amount plus interest earned over the maturity period.
Fixed deposits also give you a higher rate of interest than a savings bank account. It is
one of the oldest and most popular forms of investment across India.
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Benefits of FDs
Fixed deposit offer better returns than saving accounts to depositors. Moreover, there
are several forms of fixed deposits such as recurring deposits where depositors pay a
fixed amount at regular intervals and get back the amount with accumulated interest at
the end of the prescribed period.
1. You can avail loans up to 85% of the principal amount at a reasonable interest
rate.
2. Variable deposit periods ranging from 6 months to 120 months
3. You generally get interest once in 6 months
Downsides of FDs
Though FDs give depositors a fixed return on their investments, there are certain
drawbacks of FDs.
1. FDs are not so liquid i.e. it cannot be withdrawn before it expires. However, there
is a provision to cancel FDs which invites a penalty of 1-2% depending upon the
bank.
2. Interest earned after FD maturity is taxable.
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INDUSTRY PROFILE
INDIAN BANKING SYSTEM
COMMERCIAL BANK
FOREIGNBANK
REGIONALRURALBANK
URBAN
PRIVATESECTORBANK
CO-OPERATIVE
SCHEDULED BANK
STATEBANKOF INDIA
OLD NEW
RESERVE BANK OF INDIA
Central bank and Supreme monetary authority
OTHERNATIONALBANK
STATE
PUBLCSECTORBANK
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HISTORY OF BANK
The first bank in India, though conservative, was established in 1786. the journey of
Indian Banking System can be segregated into three distinct phases.
PHASE-1 (1786 to 1969))
1786 : The General Bank of India
Next came Bank of Hindustan and Bengal Bank.
The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks.
In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.
Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.
During the first phase the growth was very slow Banks also experienced
periodic failures between 1913 and 1948.
There were approximately 1100 banks, mostly small. the Government of India
came up with The Banking Companies Act, 1949 which was later changed to
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Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of
1965).
Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority.
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PHASE- 2
In 1955, it nationalised Imperial Bank of India with extensive banking
facilities on a large scale specially in rural and semi-urban areas.
It formed State Bank of India to act as the principal agent of RBI 7 Banks
formed subsidiary of State Bank of India were nationalised.
It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14
major commercial banks in the country was nationalised.
The branches of the public sector bank India rose to approximately 800% in
deposits and advances took a huge jump by 11,000%.
PHASE- 3
This phase has introduced many more products and facilities in the banking
sector in its reforms measure.
In 1991, under the chairmanship of M Narasimha, a committee was set up by
his name which worked for the liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations.
Efforts were being put to give a satisfactory service to customers.
Phone banking and net banking was introduced.
The entire system became more convenient and swift.
Time was given more importance than money.
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Nationalized Banks in India
Banking System in India is dominated by nationalized banks. The nationalizationof
banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister.
The major objective behind nationalization was to spread banking infrastructureinrural areas and make available cheap finance to Indian farmers. Fourteen bankswere
nationalized in 1969.Before 1969, State Bank of India (SBI) was the only public
sector bank in India.SBI was nationalized in 1955 under the SBI Act of 1955.
The second phase of nationalization of Indian banks took place in the year
1980.Seven more banks were nationalized with deposits over 200 crores.
List of Public Sector Banks in India is as follows:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab and Sind Bank
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India (SBI)
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
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UCO Bank
Union Bank of India
United Bank of India s
Vijaya Bank
Private Banks in India
All the banks in India were earlier private banks. They were founded in the
preindependence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role in
the banking structure. Private sector banking in India received a fillip in 1994 when
Reserve Bank of India encouraged setting up of private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them to
become more competitive.
Major Private Banks in India is:
Bank of Rajasthan
Bharat Overseas Bank
Axis Bank
Catholic Syrian Bank
Centurion Bank of Punjab
Dhanalakshmi Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
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IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank
SBI Commercial and International Bank
South Indian Bank
United Western Bank
UTI Bank
YES Bank
GROWTH TRENDS
The Indian banking market is growing at an astonishing rate, with assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth. The countrys middle class accounts
for over 320 million people. In correlation with the growth of the economy, rising
income levels, increased standard of living, and affordability of banking products are
promising factors for continued expansion. The Indian banking Industry is in the
middle of an IT revolution, focusing on the expansion of retail and rural banking.
Players are becoming increasingly customer-centric in their A approach, which has
resulted in innovative methods of offering new banking products and services. Banks
are now realizing the importance of being a big player and are beginning to focus
their attention on mergers and acquisitions to take advantage of economies of scale
and/or comply with Basel II
regulation. Indian banking industry assets are expected to reach US$1 trillion by
2010 and are poised to receive a greater infusion of foreign capital, says Prathima
Rajan, analyst in Celent's banking group and author of the report. The banking
industry should focus on having a small number of large players that can compete
globally rather than having a large number of fragmented players."
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SWOT ANALYSIS OF BANKING INDUSTRY
STRENGTH
Indian banks have compared favourably on growth, asset quality and
profitability with other regional banks over the last few years. The banking
index has grown at a compounded annual rate of over 51 per cent since April
2001 as compared to a 27 per cent growth in the market index for the same
period.
Policy makers have made some notable changes in policy and regulation to
help strengthen the sector. These changes include strengthening prudential
norms, enhancing the payments system and integrating regulations between
commercial and co-operative banks.
Bank lending has been a significant driver of GDP growth and employment.
Extensive reach: the vast networking & growing number of branches &
ATMs. Indian banking system has reached even to the remote corners of the
country.
The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.
In terms of quality of assets and capital adequacy, Indian banks are considered
to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region.
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Foreign banks will have the opportunity to own up to 74 per cent of Indian
private sector banks and 20 per cent of government owned banks.
WEAKNESS
PSBs need to fundamentally strengthen institutional skill levels especially in
sales and marketing, service operations, risk management and the overall
organizational performance ethic & strengthen human capital.
Old private sector banks also have the need to fundamentally strengthen skill
levels.
The cost of intermediation remains high and bank penetration is limited to
only a few customer segments and geographies.
Structural weaknesses such as a fragmented industry structure, restrictions on
capital availability and deployment, lack of institutional support infrastructure,
restrictive labour laws, weak corporate governance and ineffective regulations
beyond Scheduled Commercial Banks (SCBs), unless industry utilities and
service bureaus.
Refusal to dilute stake in PSU banks: The government has refused to dilute its
stake in PSU banks below 51% thus choking the headroom available to these
banks for raining equity capital.
Impediments in sectoral reforms: Opposition from Left and resultant cautious
approach from the North Block in terms of approving merger of PSU banks
may hamper their growth prospects in the medium term.
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OPPORTUNITY
The market is seeing discontinuous growth driven by new products and
services that include opportunities in credit cards, consumer finance and
wealth management on the retail side, and in fee-based income and investment
banking on the wholesale banking side. These require new skills in sales &
marketing, credit and operations.
Banks will no longer enjoy windfall treasury gains that the decade-long
secular decline in interest rates provided. This will expose the weaker banks.
With increased interest in India, competition from foreign banks will only
intensify.
Given the demographic shifts resulting from changes in age profile and
household income, consumers will increasingly demand enhanced institutional
capabilities and service levels from banks.
New private banks could reach the next level of their growth in the Indian
banking sector by continuing to innovate and develop differentiated business
models to profitably serve segments like the rural/low income and
affluent/HNI segments; actively adopting acquisitions as a means to grow and
reaching the next level of performance in their service platforms. Attracting,
developing and retaining more leadership capacity
Foreign banks committed to making a play in India will need to adopt
alternative approaches to win the race for the customer and build a value-
creating customer franchise in advance of regulations potentially opening up
post . At the same time, they should stay in the game for potential acquisition
opportunities as and when they appear in the near term. Maintaining a
fundamentally long-term value-creation mindset.
reach in rural India for the private sector and foreign banks.
With the growth in the Indian economy expected to be strong for quite some
time-especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to
be strong.
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the Reserve Bank of India (RBI) has approved a proposal from the
government to amend the Banking Regulation Act to permit banks to trade in
commodities and commodity derivatives.
Liberalization of ECB norms: The government also liberalized the ECB normsto permit financial sector entities engaged in infrastructure funding to raise
ECBs. This enabled banks and financial institutions, which were earlier not
permitted to raise such funds, explore this route for raising cheaper funds in
the overseas markets.
Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI
has allowed them to raise perpetual bonds and other hybrid capital securities to
shore up their capital. If the new instruments find takers, it would help PSUbanks, left with little headroom for raising equity. Significantly, FII and NRI
investment limits in these securities have been fixed at 49%, compared to 20%
foreign equity holding allowed in PSU banks.
THREATS
Threat of stability of the system: failure of some weak banks has oftenthreatened the stability of the system.
Rise in inflation figures which would lead to increase in interest rates.
Increase in the number of foreign players would pose a threat to the PSB as
well as the private players.
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COMPANY PROFILE
Axis Bank was the first new generation private sector bank to be established in
India under the overall reform programme initiated by the Government of
India in1991, under which nine new banking licenses were granted.
The Bank was promoted by Unit Trust of India, the largest mutual fund in
India, holding 87% of the equity. Life Insurance Corporation of India (LIC),
General Insurance Corporation Ltd and its four subsidiaries who were the co-promoters held the balance 13%. The Bank started its operations in 1994.
Axis Banks first capital raising post inception was in 1998 through a public
offering of primary shares and in subsequent years through equity allotment to
a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur
Vysya Bank and Chrys Capital leading to a dilution in UTIs shareholding in
the Bank. Further dilution of Promotors shareholding happened during Q4
ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a
GDR issue.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.
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HISTORY OF AXIS BANK
2004
Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible
Debenture Issue, issue fully subscribed
UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the
Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I)
has been appointed as an Additional Director of the Bank w.e.f. January 20,
2004.
UTI Bank opens new branch in Udupi
UTI Bank, Geojit in pact for trading platform in Qatar
UTI Bank ties up with Shriram Group Cos
Unveils premium payment facility through ATMs applicable to LIC & UTI
Bank customers
Metaljunction (MJ)- the online trading and procurement joint venture of Tata
Steel and Steel Authority of India (SAIL)- has roped in UTI Bank to start off
own equipment for Tata Steel.
DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold
Incorporated, has secured a major contract for the supply of ATMs and
services to UTI Bank
HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m
Launches `Remittance Card' in association with Remit2India, a Web site
offering money-transfer services
2005
UTI Bank enters into a bancassurance partnership with Bajaj Allianz General
for selling general insurance products through its branch network
.UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in
Karnataka at Mangalore.
2006
UTI Bank unveils priority banking lounge
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UTI Bank launches operations of UBL Sales, its Sales Subsidiary -Inaugurates
its first office in Bengaluru
UTI Bank announces the launch of its Credit Card Business.
UTI Bank becomes the first Indian Bank to successfully issue Foreign
Currency Hybrid Capital in the International Market
UTI Bank Business Gold Debit Card MasterCard Launched Designed for
business related spending by SMEs and self employed professionals
2007
AXIS Bank Ltd has informed that Fitch Ratings on December 14, 2007, has
upgraded the Bank's National Long-term rating to 'AAA(ind)' from 'AA+
(ind)'.
AXIS Bank Ltd hasappointed Shri K N Prithviraj as an Additional Director
on the Board at Directors of the Bank.
Company name has been changed from UTI Bank Ltd toAxis Bank Ltd.
2008
Axis Bank launches Platinum Credit Card, India's first EMV chip based card
Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-
Madurai road on April 16.
2009
Axis Bank today said its board has recommended the appointment of Shikha
Sharma, currently chief of ICICI group's life insurance business, as its next
managing director and CEO.
Axis Bank has set up a new branch at Perumbavoor. The bank has a network
of 832 branches along with 8 extension counters and 3622 ATMs across the
country.
Axis Bank opened the new branch at Irinjalakuda while it has a network of
892 branches, 8 extension counters and 3,806 ATMs across the country.
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AXIS BANK- Mission and ValuesOur 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
Maximizations of Stakeholder value
Success through Teamwork, Integrity and People
The banks business is divided into four segments:
Retail, corporate, treasury and merchant banking.
Apart from this the bank is also into insurance, investment banking, mortgage
financing, credit cards, and depository services amongst others.
it is also registered on the following exchanges:
OTCEI
BSE
NSE
London stock exchange
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The present shareholding pattern is as mentioned below:
(As on 30/06/2009)
Administrator of the Specified
Undertaking of the UTI
27.72%
LIC 10.49%
GIIC and four PSU Insurance Companies 5.50%
Non-Promoters Holding 42.32%
Others 13.97%
GROWTH PROSPECT OF AXIS BANK
Over the last five years, the CAGR for loan growth for the banking industry
has been 25-26 per cent; for Axis Bank it has been above 40 per cent.
Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1.7x the
industry average.
In FY09 its advances grew at the rate of 37.5 per cent.
In FY10 they are expected to grow at the rate of 27-28 per cent and in FY11 at
25 per cent.
For the banking industry as a whole, the loan book is expected to grow at 18
per cent in FY10 and 16 per cent in FY11.
Thus, Axis Banks fast pace of growth is expected to sustain over the next couple of
years.
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SWOT ANALYSIS OF AXIS BANK
STRENGHTS:
1) Online Services: AXIS Bank provides online services of all its banking facilities.
It also provides D-Mart account facilities on-line, so a person can access his account
from anywhere he is.
[D-Mart is a dematerialized account opened by a salaried person for purchase & sale
of shares of different companies.]
2) Advanced Infrastructure: Branches of AXIS Bank are well equipped with
advanced technology to provide the customers with taster banking services. All the
computerized machines are located in suitable manner & are very useful to the
customers & staff of the bank.
3) Friendly Staff: The staff of AXIS Bank in all branches is very friendly & help the
customers in all cases. They provide faster services along with bonding & personal
relationship with the customers.
4) 12 hrs. Banking services: Compared to other bank AXIS bank provides long hrs.
of services i.e. 8-8 services to the customers. This service is one of its kind & is very
helpful for the customers who are in urgent need of money.
5) Other Facilities to the Customers & Employees: AXIS Bank also provides other
facilities like drinking water facilities, proper sitting arrangements to the customers.
And there are also proper Ventilation & sanitary facilities for the employees of the
bank.
6) Late night ATM services: AXIS bank provides late night ATM services to the
customers. The ATM centers of AXIS bank works even after 11:00pm. at night incertain branches.
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WEEKNESSES:
1) High Bank Service Charges: AXIS bank charges highly to customers for the
services provided by them when compared to other bank & that is why it is only in
the reach of higher class of society.
2) Less Credit Period: AXIS bank provides credit facilities but only upto limited
period. Even when the credit period is not over it sends reminder letters to the
customers which may annoy them.
OPPORTUNITIES:
1) Bank Insurance services: AXIS bank also provide insurance services. That
means the bank can have a tie-up with a insurance company. The bank will advertise
& promote the different policies introduced by the insurance company & convince
their customers to buy insurance policies.
2) Increase in percentage of Returns on increase: AXIS bank also provide higher
returns on deposits in comparison of the present situation. This will also upto large
extent help the bank earn profits & popularity.
3) Recruit professionally guided students: Bank & Insurance is a special non-aid
course where the students specialize in the functioning & services of the bank & also
are knowledge about various tax policies. The bank can recruit these students through
tie-ups with colleges. Such students will surely prove as an asset to the bank.
4) Associate with social cause: The bank can also associate itself with social causes
like providing relief aid patients, funding towards natural calamities. But this falls in
the 4th quadrant so the bank should neglect it.
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THREATS:
1) Competition: AXIS Bank is facing tight competition locally as well as
internationally. Bank like ICICI, CITI Bank, HSBC, ABM, Standered Chartered,
HDFC also provide equivalent facilities like AXIS do and also AXIS do not have
consistency in its international operation.
2) Net Services: AXIS Bank provides all kind of services on-line. There can be easy
access to the e-mail ids of the customers through wrong people. The confidential
information of the customers can be leaked easily through the e-mail ids.
3) Decentralized Management: Each branch manager is given the authority of
taking decisions in their respective branches. The decisions made by different
managers are diverse and any one wrong decision can laid to heavy losses to the bank.
4) No Proper Facilities To Uneducated customers: AXIS Bank provides all
services through electronic computerized machines. This creates problems to the less
educated people. But this threat falls in the 4th quadrant so its negligible. The company
can avoid this threat.
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AXIS BANK FINANCIAL POSITION
Rs in Crore
Particulars Mar 07 Mar 08 Mar 09
Deposits 58,785.60 87,626.22 117,374.11
Advances 36,876.48 59,661.14 81,556.77
Share Capital 281.63 357.71 359.01
Net worth 3,402.21 8,770.69 10,214.80
Book Value 120.80 245.19 284.53
Interest earned 4,560.40 7,005.32 10,835.49
Interestexpenditure
2,993.32 4,419.96 7,149.27
Net profit 659.03 1,071.03 1,815.36
Net NPAs 0.61% 0.36% 0.35%
Total Assets 73,257.21 109,577.84 147,722.06
Return on
Assets1.10% 1.24% 1.44%
Source: www.axisbank.com
GROWTH DEMAND DEPOSITS
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Source: www.axisbank.com
CARDS BUSINESS
Cards fee income (FY09 FY08)
Issuance:
Over 533,000 credit cards in force till end March, 09.
3rd largest debit card base in the country
1st Indian bank to launch travel currency cards in 9 currencies US$, Euro,
GBP, AUD.
1st Indian bank to launch remittance card & meal card
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Source: www.axisbank.com
COMPOSITION OF RETAIL ASSETS
Product wise composition of retail assets portfolio (March, 09)
Source: www.axisbank.com
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REVENUE BREAK UP OF AXIS BANK
Source: www.axisbank.com
NETWORK
Increasing Reach
Segment Revenue Mar 09
Treasury 20,290.71Corporate /wholesale
banking7280.14
Retail banking 6675.51
Other bankingbusiness
(5.40)
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Source: www.axisbank.com
NEW INITIATIVES BY AXIS BANK:
Remittance Card:
A unique product that has changed the way money is sent across borders.
Available as a delivery mode for remittances made through the Web Portal
www.Remit2India.com.
Based on the remitters request, a personalized Remittance Card is prepared
for the beneficiary, which is preloaded with the funds remitted to him in INR.
VISA Money Transfer Service:
To send money from an AXIS Bank account to any of the VISA Cards issued
in India
To pay VISA credit card bills by giving the card number and making a direct
payment
The senders account would be debited instantaneously with the transferred
amount, but the funds will reach the beneficiarys VISA Card within one or
two days.
The service has been enabled through all Axis banks ATMs and i-Connect
(Internet Banking)
EMV standard based Platinum Credit Card:
Card has an embedded chip, which stores cardholders information in an
encrypted format, thereby providing the highest level of security to the
cardholder against possible misuse.
Offers clear authentication of debit and credit payments combined with easy
fraud detection.
The chip cannot be duplicated, ruling out counterfeiting and skimming. This
makes your card safer and secure than any other card in India.
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TYPES OF SAVING ACCOUNT AT AXIS BANK
1. Zero Balance Savings Account
Features:
No Average Quarterly Balance requirement
Free International Debit Card with an Accidental Insurance cover up to Rs 2
lakhs* (charges for the primary holder are waived)
Free mobile banking facility
Access through more than 1000 branches and over 4055 ATMs (as on 31st
March 2010)
At-Par cheque facility with the clearing limit of Rs 50,000
24x7 Tele banking & Internet banking
Free quarterly statements
Free monthly e-statement
Documentation:
An Account Opening Form duly filled
One latest passport size photograph
Initial cheque of Rs 5,500
Photo identity proof like PAN card, Passport, Driving License or Voters card
Proof of residence like recent utility bill or bank account/credit card statement,
and-
Any two of the following documents:
Latest paid Post-paid mobile bill with a minimum bill payment of Rs. 1000/-.
The amount paid should not include any late payment fee or outstanding
payments of previous months
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Minimum Net Salary of Rs. 20,000/- or other bank account statement (non
Axis Bank) with minimum average balance of Rs 25,000/-. The latest
statement should be for a minimum period of three months.
Customer Loyalty Card (any of the renowned retail chains like Pantaloons,Life Style, Shoppers Stop, Globus, Westside only). Local retail chains (like
Spencer, Big Bazar and any other) offering a loyalty card would not be
permissible for the time being.
Proof of having a Platinum or Titanium Credit Card. Credit card statement
needs to be accepted as proof of the same.
Proof of owning a four-wheeler. Copy of RC book/card can be accepted as a
proof of owning a four-wheeler Proof of owning a House. As a proof of owning a house, sale deed or paid
electricity or water bill or House tax receipt can be accepted.
Minimum Landline Bill payment of Rs. 1500 in the name of the prospective
customer
Latest Income Tax return with paid tax of minimum Rs 1.5 lac
2. Krishi Savings Account
Features:
Average Balance Requirement:
This account is offered with the requirement of maintaining the half-yearly
average balance of Rs 1000 only.
International Master Debit Card:
The Krishi Savings Account entitles you to an International Master Debit Card
with which you can access your account anytime through the Axis Bank ATM
network free of cost. This card comes with:
A cash withdrawal limit of Rs 25,000 per day
Free Accident Insurance cover of Rs 2 lacs
Anywhere Banking:
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Being a Krishi account holder, you are entitled to access our wide network of
more than 700 branches and 3000 ATMs across 440 cities. You can now
easily carry out your transactions through any of the branches or ATMs.
At Par Cheque Book : Your Krishi Savings Account comes with the At-Par Cheque facility. This
facility enables you to encash the cheques as local instruments at any of the
440 centres where the Bank has its presence, at no extra cost. Moreover, you
can also issue cheques at other centers upto the limit of Rs 50,000.
Free monthly e-statement
Documentation:
For the purpose of address proof and identity proof obtaining a single
document with photo identity and address (like election identity card) will
suffice, provided the address mentioned in the document is the same as the
present place of residence of the customer.
In cases where documents like Election Commission identity card is not
available, a letter from a recognized public authority or a government servantlike Talati/Patwari or similar revenue official may be obtained duly complying
with the following:
The document should contain the name, photograph, residential address and
the approximate period of residence by the customer at the given address.
The letter should not be more than one month old and the public official /
government servant should affix his rubber stamp and signature on the letter.
The letter should have a provision for further certification by the publicofficial / government servant wherever the address of the customer is being
changed.
Krishi Savings Account should be opened only for farmers. Hence the
customers are required to submit a document supporting his/her occupation.
This document can be any of the following:
Certificate from the Village Administrative Officer or Patwari
Land document
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3.Easy Access Savings Account
Features:
At Par Cheque Book as an Easy Access Savings Account Holder, you will
receive the "At-par" cheque book. You can encash these cheques as local
cheques at any of the 257 centers where the bank has a presence, at no extra
cost. Drafts are now history.
ATM Network Easy Access Savings Account also entitles you to an
International Debit Card with which you can access your account anytime at
all our ATMs - both, Visa enabled and our partner banks - across the country.
Withdrawals and deposits (money as well as cheques) are possible with your
Debit Card. And unlike most other ATMs, an Axis Bank ATM allows you to
withdraw upto Rs 40,000 per day.
Anywhere Banking You can transact through any of our branch offices all of
which are interconnected for your banking convenience. Transactions like
cash deposits, cash withdrawal, transfers and clearing deposits can all be
carried out wherever you happen to be.
The Tele banking service provides you instant access to your savings account.
It offers you a wide range of services over the phone such as Account
Information, Balance Inquiry, Transaction Details, Status of your Cheque
(available only during branch business hours) and even Statement of Account
on Fax
iConnect The idea of "your Bank on your desktop" is now a reality with
iConnect. You can lookup the status of your savings account, request your
new cheque book, undertake a range of financial transactions, avail financial
advisory services, get information on mutual funds and shop online by just
clicking the mouse.
Mobile Banking Mobile Banking enables you to bank with us through your
mobile phone irrespective of where you are. Avail facilities like balance
inquiry, debit or credit alerts, last three transaction details and cheque status.
Account Statement Quarterly statements are delivered free of cost.
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Quarterly Interest Every quarter, interest would be credited at the rate of 3.5%
per annum in your account
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4. Women saving account:
Features:
Jewellery Insurance on Debit Card
Zero Balance Minor Account
Round-the-Clock access through ATMs:
There could be an instance when at 3 am you could require cash. With our
round-the-clock access you can withdraw cash up to Rs. 40,000 per day,
deposit cash/cheques, transfer funds, print a mini statement and pay
insurance premiums (LIC), all through our ATM channel which is one of
the largest ATM networks in the country.
Anywhere Banking:
Imagine being in an unknown city and still having complete access to all
your transaction needs. As a customer of the bank, you are in control and
not restricted to the branch. So even if you are travelling, you can access
your account easily from any of the 700 plus Axis Bank offices spread
over 400 cities across the country.
At-par cheque facility:
Your cheque will be treated as a local cheque within the vast Axis Bank
network of over 700 offices across 400 cities in India. Now no more
running around to get a Demand Draft issued.
Monthly Account Statement
Free monthly e-statement
Additional discounts on loans
iConnect: The Complete online banking experience: Its the age of Wi-Fi. All your
banking needs should be on your fingertips, with our i-connect you can
check your account status, transfer funds, place online request for a new
cheque book and many more features without even having to visit an Axis
Bank branch.
Financial Advisory Services:
Our Financial Advisor will assist you with your financial planning and
help you to earn maximum returns on your savings.
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Discount on Retail Purchases:
Just live the feeling of walking into a store and getting amazing discounts
not available to others. As you are a valued customer for us, we shall
endeavour to provide you with discounts at various outlets, periodically.All you have to do is use your new Smart Privilege Debit Card and avail of
discounts at these outlets. Details of such tie-ups will be sent to you on a
regular basis.
Eligibility Criteria:
Average quarterly balance of Rs 10,000 for metro and urban locations
Average quarterly balance of Rs 5,000 for semi-urban locations Average quarterly balance of Rs 2,500 for rural locations
5. Pension Savings Account
Features:
Zero Balance Savings Account
Anywhere Banking - Available at all centers
Free Multi-city At Par Cheque Books
Free monthly e-statement
Free International Debit-cum-ATM Card for the primary & Joint holder. The
account can be opened jointly only with spouse.
Personal Accident Insurance Cover of Rs. 2 lakhs [To keep your personal
accident insurance cover activated, you should have made a purchase
transaction in 365 days prior to the day of the incident & should have
maintained an average quarterly balance of Rs 5,000 (urban & metropolitan
branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the
two quarters before the date of the incident.]*
Free Payorder & Demand Draft
Internet Banking - Available through "iConnect"
Tele-banking - Free, Available 24 hours at select centers
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Mobile Banking Facility
Demat Account - Account opening charges waived
Safe Deposit Lockers - Preferential allotment
Eligibility:
All employees of central government and civil ministries who are covered
under the Central Government Civil Pension Scheme operated by Central
Pension Accounting Office, Department of Expenditure and Ministry of
Finance.
All employees of Armed Force (Army, Navy & Air Force) under Ministry of
Defence who are covered under the Defence Pension Scheme operated by
Pension Sanctioning Authority/Defence Unit.
All the employees of an establishment with a workforce strength of more than
20 (including contract employees) and who have opted to be members of the
EPS 95 scheme.
Existing members of "Member of Employees" Family Pension Scheme.
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COMPERATIVE ANALYSIS OF AIXS BANK SAVING A/C WITH
OTHER BANKS SAVING A/C
1) AXIS BANK V/S YES BANK
FEATURES AXIS BANK YES BANK
NO. OF PRODUCTS six: zero balance saving a/c,
krishi saving a/c,
Easyaccess, prime, womens
saving a/c, pension savinga/c
Two: silver saving
account, gold savings
account.
Average quarterly account
balance
Nil for zero balance, 1000
for krishi saving a/c, Rs 5000
in metro city RS 2500 in
semi urban city and Rs 1000
in rural for easyaccess a/c,
for prime a/c same as for
easyaccess a/c, nil for
woman saving a/c, nil for
pension a/c
Rs.10,000 for silver
savings account and
Rs.100000 for gold savings
account.
Fee for non maintenance of
quarterly average balance
Annual a/c maintenance
charges 500 per annum for
zero balance a/c, 750 for all
saving a/c holders
Rs. 500 for silver savings
account and Rs.600 for
gold saving account.
Statement of account Quarterly free, and monthly
e-statement free (if asked
for).
Quarterly free for both.
ATM usage Unlimited free . Unlimited free on all the
banks in India.
Regular debit card 95 for all saving a/c holders, Rs.149 for silver savings
account, free for gold
savings account.
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Gold debit card Rs.500 issuance fee Rs.799 issuance fee
D.D. Rs.50 for amt up to
Rs.10,000;Rs.2.50 per 1000
for amt up to 50,000;Rs 2 per
1000 for amt greater than
50,000
Min Rs.50 then Rs.2.5 per
1000 for savings account
and Rs.1.5 per 1000 for
gold savings account.
Pay order (P.O.) Upto 50,000 is Rs 50
Above 50,000 is Rs
2.50/1000
5 free for savings account
and 10 free for gold
savings account, per year
Branch transaction 3 transactions per quarter nil
for zero balance a/c, beyond
3 transaction Rs 100 per
transaction for zero balance
a/c, cheque book charges Rs
5 per cheque leaf for zero
balance a/c, no such charges
for other account holders
5 transactions for savings
account and 10 transactions
for gold savings account
are free per year
Personalized cheque books Free upto 20 leaves per
quarter , if above 1 cheque
book per quarter Rs 50
Free
Balance enquiry Free Free
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INTERPRETATION:
Axis bank provides various kinds of saving bank account as compare to yes
bank which is showing that axis bank has segmented its market more
strategically. Terms and condition are quite simple and reasonable to all its customers in
case of axis bank then to yes bank.
Axis bank is providing various kinds of saving bank account facilities to its
customers. so, its services rates are quite higher in comparison to yes bank.
Axis bank charge Rs 95 for issuing a regular debit card for its all saving
account holders which is almost half of the issuing charges of Yes bank to its
saving bank account holders. DD & PO commission rates of axis bank are bit higher as to Yes bank.
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2) AIXS BANK V/S ICICI BANK
FEATURES AXIS BANK ICICI BANK
NO. OF PRODUCTS six: zero balance saving a/c,
krishi saving a/c,
Easyaccess, prime, womens
saving a/c, pension saving
a/c
Three: category A, B and
C.
Average quarterly account
balance
Nil for zero balance, 1000
for krishi saving a/c, Rs 5000
in metro city RS 2500 in
semi urban city and Rs 1000
in rural for easyaccess a/c,
for prime a/c same as for
easyaccess a/c, nil for
woman saving a/c, nil forpension a/c
Rs.5000 for A, Rs.2000 for
B, and Rs.1000 for C.
Fee for non maintenance of
quarterly average balance
Annual a/c maintenance
charges 500 per annum for
zero balance a/c, 750 for all
saving a/c holders
Rs.750 per qtr for A & B
and Rs.100 per qtr for C.
Statement of account Quarterly free, and monthly
e-statement free (if asked
for).
Free physical statement per
qtr otherwise Rs.200 per
month for physical form.
Free e-statement per
month.
ATM usage Unlimited free . Rs.20/month for cash
withdrawal & and Rs.60
for same with non partner
banks.
Regular debit card 95 for all saving a/c holders, Rs.99 per annum for all the
products.
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D.D. Rs.50 for amt up to
Rs.10,000;Rs.2.50 per 1000
for amt up to 50,000;Rs 2 per
1000 for amt greater than
50,000
Rs.2 per thousand rupees
or part thereof, subject to a
minimum of Rs.50
Branch transaction 3 transactions per quarter nil
for zero balance a/c, beyond
3 transaction Rs 100 per
transaction for zero balance
a/c, cheque book charges Rs
5 per cheque leaf for zero
balance a/c, no such charges
for other account holders
Rs.2.50/
thousand, subject to
min of Rs.30
and max of Rs.10000
Personalized cheque books Free upto 20 leaves per
quarter , if above 1 cheque
book per quarter Rs 50
2 payable at par cheque
books of 25 leaves each
free in a quarter, Rs.50/-
for additional cheque book
of 25 leaves.
Balance enquiry Free Rs.10 with partner banks &
Rs.25 with non partner
banks.
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INTERPRETATION:
ICICI bank saving bank account categorization is quite simple to understand
from a view point of costumer as to axis bank.
Quarterly saving bank account charges are quite similar in both the banks,only difference of account holder categorization is the point of difference here.
For category C account holders, ICICI BANK is charging very nominal
maintenance fee from its customers, but in AXIS bank no such thing is done
for its customers.
By analyzing the two banks DD and PO rates, charges under axis bank are
higher than to ICICI bank.
ATM usage is unlimited free under axis bank, but Rs. 20 for normal customersand Rs. 60 for non bank account holders is charged by ICICI bank.
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3) AXIS BANK V/S HDFC BANK
FEATURES AXIS BANK HDFC BANK
NO. OF PRODUCTS six: zero balance saving a/c,
krishi saving a/c,
Easyaccess, prime, womens
saving a/c, pension saving
a/c
Three products: regular,
savings plus & savings max;
each of which are further
divided into option 1 and 2.(I
have taken comparative
product that is option 1 of
regular savings acc.)
Average quarterly accountbalance
Nil for zero balance, 1000for krishi saving a/c, Rs 5000
in metro city RS 2500 in
semi urban city and Rs 1000
in rural for easyaccess a/c,
for prime a/c same as for
easyaccess a/c, nil for
woman saving a/c, nil forpension a/c
Rs.5000
Fee for non maintenance of
quarterly average balance
Annual a/c maintenance
charges 500 per annum for
zero balance a/c, 750 for all
saving a/c holders
Rs.750 per qtr.
Statement of account Quarterly free, and monthly
e-statement free (if asked
for).
Monthly statements to be
Collected from branch.
Quarterly statements sent by
post
ATM usage Unlimited free . First 4 withdrawals free of
cost from any cirrus network
ATM
Regular debit card 95 for all saving a/c holders, Rs.100 plus taxes
D.D. Rs.50 for amt up to
Rs.10,000;Rs.2.50 per 1000for amt up to 50,000;Rs 2 per
Rs.50 for amt up to 10000,
Rs.75 for amt greater than10000 and up to up 50000,
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1000 for amt greater than
50,000
Rs. 2.50 per 1000 or part
thereof (Min Rs.150) for amt
greater than 50000
Pay order (P.O.) Upto 50,000 is Rs 50,
Above 50,000 is Rs
2.50/1000
Same as above.
Branch transaction 3 transactions per quarter nil
for zero balance a/c, beyond
3 transaction Rs 100 per
transaction for zero balance
a/c, cheque book charges Rs
5 per cheque leaf for zerobalance a/c, no such charges
for other account holders
Free 3 free in the qtr & Rs.
60 per additional transaction
on non-maintenance of Min
balance (cash
deposit/withdrawal)
Personalized cheque books Free upto 20 leaves per
quarter
if above 1 cheque book per
quarter Rs 50
Free, Rs.5 per leaf on non
maintenance of Min balance
Balance enquiry Free Free
INTERPRETATION:
Here also AXIS bank saving account services are more than to HDFC saving
bank account services.
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AQB is same for various saving bank account holders under HDFC bank, and
different AQB for different saving account holders is required under AXIS
bank.
Non maintenance account charges are also kept same under HDFC bank
account, and different charges for different account holders are set under
AXIS bank.
AXIS bank is providing unlimited free ATM usage, and only first four
withdrawals are free under HDFC bank.
DD and PO charges are higher under HDFC bank then AXIS bank.
HDFC bank charges Rs.60 extra after first 3 bank transactions made by the
customers, charges are differently set as per to different account holders byAXIS bank.
CURRENT A/C & SAVING A/C GROWTH OF ICICI BANK
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Savin
gsdeposits(Rs.
bn)
Focus on CASA deposits
450
400
350
300
250
200
150
100
50
-
2003 2004 2005 2006 2007 2008 2009
Years
2003 2004 2005 2006 2007 2008 2009
CASA RATIO 15.5% 23% 24.5% 22.7% 21.8% 26.1% 28.7%
BRANCHES 446 469 562 614 755 1262 1419
Source: www.icici.com
CURRENT ACCOUNT & SAVING ACCOUNT GROWTH OFHDFC BANK
%
60.0
55.0
50.0
45.0
40.0
3QFY08 4QFY08 1QFY09 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10
Source: www.hdfc.com
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CURRENT ACCOUNT & SAVING ACCOUNT GROWTH OF
AXIS BANK
Source: www.axisbank.com
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BASIC FEATURES OF AXIS BANK CURRENT A/C
Overview
At Axis Bank, we are committed to creating an easy and comfortable banking
environment for your business. We realize that different businesses need different
solutions according to their size, nature and scale of operations. We also understand
what you need to add impetus to your business. Our range of Current Accounts
comes geared to answer all kinds of business requirements. Each of our Current
Accounts has been customized to ensure efficient management, quick transfers and
instant availability of your funds across our network.
Axis Bank brings different kinds of current accounts for different types of businesses.
Select the one that best suits your business requirements.
Axis Bank's Current Accounts come equipped with the following features to give
maximum value for your money.
Features:
Anywhere Banking:
Our Current Account allows you to bank from all our branches and extension
counters. You can deposit cash, withdraw cash, deposit cheques, and issue 'at-
par' cheques at any of our branches. So bank at your own convenience.
Instant Fund Transfer:
You can transfer funds instantly between any of our branches. Funds transfers
can be effected online, right from your desktop, through our internet banking
services.
Internet Banking:
Axis Bank presents Corporate iConnect - a unique NetBanking platform for its
current account customers. Available with multiple user IDs, depending on
your needs. Access your account at any time form anywhere. You can transfer
funds to your own accounts or to third party accounts within Axis Bank &
Inter Bank covering over 25,000 branches of various banks. Corporate
iConnect also permits transaction initiation by one user and approval by
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another. You can also execute bulk payments like salary and commission
across Axis Bank network, right from your desktop.
At-Par (Multicity) Cheque book:
Enjoy the benefits of multicity cheque book with Axis Bank's current
accounts. You can issue cheques payable at par at all our branches across the
country. Your cheques will be treated as local cheques at more than 375
locations as on January 31, 2008.
ATM or Debit Card:
With every Current Account (for proprietary and partnership concerns), you
can avail upto 2 ATM cum Debit cards, which allow you round the clock
access to your account from any of all our ATMs all over the country. You
can withdraw upto Rs 40,000 a day.
Free Monthly Account Statement
By courier and daily on email.
Mobile Banking: Mobile Banking will enable you to bank with us through your mobile phone
irrespective of where you are.
Phone Banking:
Phone banking or Tele-banking service can help you access your account from
your telephone anytime you want.
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TYPES OF CURRENT A/C AT AXIS BANK
1. Normal current a/c:
Features:At-Par Cheque Facility:
Issue cheques payable at par at any of our branches / outlets, presently over
800 across the country.
Inter Branch Cash Deposit Facility:
Deposit cash upto Rs. 50,000 per day at a remote branch for instant credit into
your account. Home Branch Cash Withdrawal
Free upto 50 transactions for unlimited amount per month.
Local Cheque Deposit Facility
Deposit cheques at any Axis Bank branch and get the credit into your account.
Demand Drafts:
Avail Demand Drafts at very nominal charges drawn on any of our branches
and a wide network of correspondent bank locations.
Outstation Cheque Collection:
Avail outstation cheques collection through all our branches.
Other ancillary services:
Mobile Alerts
ATM cum International Debit Card
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2. Business advantage a/c:
Features:
At-Par Cheque and Local Cheque Deposit Facility:
Issue cheques payable at par at any of our branches / outlets, presently over
800 across the country.
This facility is free for 10 transactions and upto Rs 15 lacs per month and at
nominal charges beyond free limit.
Pay Orders:
Free 3 Pay Orders per day from your branch.
Inter Branch Cash Deposit Facility:
Deposit cash upto Rs. 75,000 per day at a remote branch for instant credit into
your account.
Intercity Cash Withdrawal Facility:
Cash withdrawal upto Rs 2,00,000 per day at a remote branch.
Home Branch Cash Withdrawal:
Free 75 transactions per month for unlimited amount.
Demand Drafts:
Free 10 Demand Drafts upto Rs 3 lacs per month on Axis Bank locations.
Free Fund Transfer Facility:
Upto 12 transactions per month across Axis Bank network almost
instantaneously.
Outstation Cheque Collection:
Avail outstation cheques collection through all our branches.
Other ancillary services:
Mobile Alerts
ATM cum International Debit Card
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Phone Banking
Corporate iConnect
3. Club 50 current a/c:
Features:
Enhanced Transactional Benefits
Higher free home branch cash deposit limit upto Rs. 1.5 cr. per month
Maintain the required half yearly average balance and enjoy free non - home
branch cash deposit upto Rs. 2 lacs per day
As high as 1500 transactions free per month
1200 Anywhere Banking transactions free per month
Customized Cheque Stationery with Hologram
Customized Cheque stationery with Hologram for additional safeguard of
banking transactions.
Lifestyle Benefits / Privileges:
Enjoy lifestyle benefits / privileges like free subscription to magazines and
books, access to Business center at all our Priority Banking branches at selectlocations, Priority Savings Bank accounts for all authorized signatories
(Directors, Partners or Proprietors), etc.
Free Doorstep Banking:
Deposit cash/cheques, withdraw cash or have demand drafts/pay orders
delivered at your office free of cost.
Free RTGS / NEFT Facility:
Maintain your required half yearly average balance and enjoy the benefits of
free RTGS / NEFT facility all through.
Free Cheque Books:
Avail the facility of free cheque books every month.
Free DD's on Non Axis Bank locations:
Avail the facility of free demand drafts on Non Axis Bank locations upto a
certain limit.
Free International Business Gold Debit Card / Gold Plus Credit Card:
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Get free International Business Gold Debit Card / Gold Plus Credit Card to
enjoy a host of benefits.
COMPERATIVE ANALYSIS OF AXIS BANK CURRENT A/CWITH OTHER BANKS CURRENT A/C
I) AXIS BANK V/S HDFC BANK
FEATURES AXIS HDFC
Number of products Three: normal, business
advantage, club 50
Four: plus, trade, premium,
and regular
Average quarterly balance :Rs. 10000 for metro/ urban
branches &
Rs. 5000 for semi urban/rural
branches for normal
:Rs 25000 for metro/
Urban & Rs 12500 for semi
urban/rural for business
advantage.
: Rs 50lacs for metro/urban
& Rs 25lacs for semi
urban/rural for club 50.
Rs.100000 for plus,
Rs.40000 for trade, Rs.25000
for premium, & Rs.10000 for
regular
Fee for non maintenance of
AQB
;Rs. 400 for both metro &
rural in case of normal.
:Rs 450 for both metro&
rural for business advantage
:club 50: Rs 5000 per 6
months if balance is b/w
Rs.600 for plus, Rs.1200 for
trade, Rs.900 for premium
and Rs.750 for regular.
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10lacs to 20lacs & Rs 10000
per 6 months if balance is
less than 10lacs for
metro/urban
: Rs 5000 per 6 month if
balance is b/w 5lacs to
10lacs & Rs 10000 is
balance is less than 5lacs for
rural.
Statement of account Free (physical or e-mail) Free once in a month
Issue of cheque book Normal: 1st
25 cheque leaves
are free than upto 50 per
month Rs 2/leaf & b/w 51 to
250 Rs 5/leaf & above 251
Rs 8/leaf
Business advantage: same as
for normal
Club 50: free
PAP cheque books; 300
leaves free pm for plus, 200
leaves free pm for trade, 100
leaves free pm for premium
and Rs.2 per leaf for regular
ATM usage Free usage of axis bank,
Rs.1.50 on withdrawal from
other banks
Free usage of HDFC bank
ATMs.
Issue of international debit
card
Free for 1st year, Rs.150
there after, for club 50 free
Free for first year
Transfer from one account
to other (intercity)
Free for all Free for all
D.D/P.O. Normal: ad valorem charges
Rs 1.00/1000 & transaction
charges Rs 50 per P.O
: for D.D ad valorem charges
Rs 1.50/1000 &
transaction charges Rs 50
Business abvantage:
ad valorem charges free &
Free up to 50 DDs per
month. Above 50
transactions, charges @ Rs.
25/- per DD for plus, Free up
to 30 DDs per month. Above
30 transactions, charges @
Rs. 25/- per DD for trade;
DD Amount Up to Rs.
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transaction charges 3 per day
free above that Rs 50 per PO
: for DD ad valorem charges
free upto 3lacs above that Rs
1/1000 &
Transaction charges free
upto 10 DD per month above
that Rs 50 per DD.
Club 50: DD & PO free.
50,000 charges Rs. 40/- per
DD, Above Rs. 50,000 and
up to Rs. 100,000- Rs. 25/-,
Above Rs. 100,000- Free for
premium and DD Amount
Up to Rs.50,000 charges
Rs.40/- per DD, Above
Rs.50,000 and up to
Rs.100,000- Rs.25/-, Above
Rs.100,000- Free for regular.
Balance enquiry Information not available Rs.25 for all
INTERPRETATION:
AQB is broadly categorized for rural and urban areas under AXIS bank,
but no such rural and urban classification is made by HDFC bank for its
current account customers.
As per to different heads categorization charges are charged by both thebanks from its current account holders under the fee charged by them for
maintaining their AQB balances.
ATM usage is unlimited free under HDFC bank for its holders of account,
but Rs. 1.50 is charged by in case of AXIS bank account transaction from
other ATMS.
Different DD and PO rates are applied by both the banks according to the
kinds of account facilities they are providing to their ultimate customers.
2) AXIS BANK V/S YES BANK
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FEATURES AXIS BANK YES BANK
Number of products Three: normal, business
advantage, club 50
Four: CA 30, CA 70, CA 200
and CA 500.
Average quarterly balance :Rs. 10000 for metro/ urban
branches &
Rs. 5000 for semi urban/rural
branches for normal
:Rs 25000 for metro/
Urban & Rs 12500 for semi
urban/rural for business
advantage.
: Rs 50lacs for metro/urban
& Rs 25lacs for semi
urban/rural for club 50.
Rs.30000, Rs.70000,
Rs.200000 and Rs.500000
respectively for the above
products.
Fee for non maintenance of
AQB
;Rs. 400 for both metro &
rural in case of normal.
:Rs 450 for both metro&
rural for business advantage
:Rs 5000 per 6 months if
balance is b/w 10lacs to
20lacs & Rs 10000 per 6
months if balance is less than
10lacs for metro/urban
: Rs 5000 per month if
balance is b/w 5lacs to
10lacs & Rs 10000 is
balance is less than 5lacs.
Rs.1500, Rs.3000, Rs.4500,
and Rs.6000 respectively for
the above products
Statement of account Free (physical or e-mail) Free once in a month.
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Issue of cheque book Normal: 1st 25 cheque leaves
are free than upto 50 per
month Rs 2/leaf & b/w 51 to
250 Rs 5/leaf & above 251
Rs 8/leaf
Business advantage: same as
for normal
Club 50: free
unlimited free for all.
ATM usage Free usage of axis bank,
Rs.1.50 on withdrawal from
other banks
Information not available.
Issue of international debit
card
Free for 1st year, Rs.150
there after, for club 50 free
Information not available.
Transfer from one account
to other (intercity)
Free for all Rs.25 lakhs per month
subsequent 0.50 per Rs.1000
for CA 25, Rs.50 lakhs per
month subsequent 0.50 per
Rs.1000 for CA 75, and
unlimited for