Company Profile

Company Profile

Axis Bank was established in the year 1943 on 19th February in Lahore. After

partition, Axis Bank shifted its Registered Office from Lahore to Amritsar paying

every rupee to its departing customers.

Axis Bank was nationalized on 15th April in 1980. Then Axis Bank had 307

branches with Rs. 282.61 crores as deposits and as advance Rs. 152.69.

The National Institute of Bank Management (NIBM), rated Axis Bank as

"Customer Friendly" Bank.

Axis Bank Limited is licensed by the Central Bank of Kenya as a commercial

Bank to carry out banking activities under Banking Act Chapter 488 of the Kenyan

laws.

The Bank started its’ operations in the year 2002, with new investments and Board

of Directors, by taking over the assets and liabilities

of the erstwhile Delphis Bank, from Central Bank of Kenya. It is a middle sized

Bank and one of the financially robust Banks in, Kenya in terms of shareholders

fund and liquidity.

Axis Bank Ltd has its’ Head Office at Finance House, Koinange Street- Nairobi.

Presently the Bank has a branch network of four branches in major towns namely

1 Nairobi.

2. Nakuru.

3 Eldoret, and

4 Kitale.

Introduction

INTRODUCTION

The Bank is managed by a professional team of management who are ably

supervised by a Board of Directors consisting of eminent personalities of society

having high level of integrity and professional skills in their respective areas of

operations. We are committed to provide quality banking Service to our customers,

however by strictly adhering to the Regulatory Guidelines as applicable within

Kenya and, internationally. Our emphasis always remains on carefully following

‘Know your Customers’ and ‘Anti Money Laundering’ Guidelines.

Corporate banking,Personal banking, Industrial finance, Agricultural

finance,Financing of trade, International banking

Axis Bank has been ranked 38th amongst top 500 companies by The Economic

Times. Axis Bank has earned 9th position among top 50 trusted brands in India.

Axis Bank India maintains relationship with more than 200 leading international

banks worldwide. Axis Bank India has Rupee Drawing Arrangements with 15

exchange companies in UAE and 1 in Singapore.

MANAGEMENT PROFILE

Name Designation

Sh.T.Y. Prabhu Chairman and Managing director

Sh. H Ratnakara Hegde Executive Director

Sh. S.C Sinha Executive Director

V Vijay Sai Reddy Director

R S Maharishi Director

U K Khaitan Director

K B R Naidu Director

Sumita Dawra Director

Sh. S.K Newley Director

Vijay Jagirdar Director

T Valliappan Director

C K Sabharwal Director

SCHEDULED COMMERCIAL BANKS IN INDIA (Competitors)

The commercial banking structure in India consists of:

Scheduled Commercial Banks in India Unscheduled Banks in India

Scheduled Banks in India constitute those banks which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches. The scheduled commercial banks in India comprise of State bank of India and its associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are the Scheduled Banks in India (Public Sector):

State Bank of India State Bank of Bikaner and Jaipur

State Bank of Hyderabad

State Bank of Indore

State Bank of Mysore

State Bank of Saurashtra

State Bank of Travancore

Andhra Bank

Allahabad Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Overseas Bank

Indian Bank

Oriental Bank of Commerce

Punjab National Bank

Punjab and Sind Bank

Syndicate Bank

Union Bank of India

United Bank of India

UCO Bank

Vijaya Bank

The following are the Scheduled Banks in India (Private Sector):

ING Vysya Bank Ltd Axis Bank Ltd

Indusind Bank Ltd

ICICI Bank Ltd

South Indian Bank

HDFC Bank Ltd

Centurion Bank Ltd

Bank of Punjab Ltd

IDBI Bank Ltd

YES BANK

The following are the Scheduled Foreign Banks in India:

American Express Bank Ltd. ANZ Gridlays Bank Plc.

Bank of America NT & SA

Bank of Tokyo Ltd.

Banquc Nationale de Paris

Barclays Bank Plc

Citi Bank N.C.

Deutsche Bank A.G.

Hongkong and Shanghai Banking Corporation

Standard Chartered Bank.

The Chase Manhattan Bank Ltd.

Dresdner Bank AG.

PRODUCTS AND SERVICES

Saving Accounts

How to Open an Account?

Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following :-

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

2. Furnish 2 photographs of all the prospective account holder(s).

3.. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.

4. Furnish PAN or declaration of Form No. 60 / 61as the case may be. The minimum balance will be:-

TypesIn Rural /

Semi Urban

branches

In Urban / Metropolitan

branches

Without Cheque Book Facility

Rs. 100 Rs. 500

With Cheque Book Facility

Rs. 500 Rs. 1000

FOR SENIORS CITIZENS AND PENSIONERS

Without Cheque Book Facility

Rs. 20 Rs. 20

With Cheque Book Facility

Rs. 250 Rs. 250

   

Current Account –

How to Open an Account?

 

Download or obtain Account Opening Form from the nearest branch, fill it up properly and deposit the same with the branch of your choice along with the following :-

   

1. Furnish proof of Residence (In the form of a copy of Ration Card/ Passport/ Driving License/ Electricity Bill/ Telephone Bill/ Identity Card issued by any reputed institution. ORIGINALS be shown only at the time of scrutiny of papers)/ Business address.

   

2. Furnish 2 photographs of all the prospective account holder(s).

   

3. Introduction about you from a person known to the bank preferably by an Account Holder of the Branch, whose account has run satisfactorily at least for the past six months.

   

4. Furnish undertakings/ documents/ declarations as applicable. Please refer Current Account opening form for details.

   

5. Furnish PAN or declaration of Form No.60 / 61 as the case may be.

   

6. Minimum deposits.

   

In Rural /

Semi Urban branchesIn Urban /

Metropolitan branchesRs. 500 Rs. 5000

 

Pragati Deposit Scheme

 

LAUNCH OF “Axis Bank PRAGATI ACCOUNT SCHEME”

Name of the scheme Axis Bank PRAGATI ACCOUNT SCHEME

Date of Commencement 14.08.2007

Eligibility ALL NEW CURRENT ACCOUNTS

Minimum Amount of Deposit and balance to be maintained

Urban & Metropolitan Rs.5000/-Rural & Semi-urban Rs.1000/-

Validity of Scheme For a limited period only

Add on Facilities 1. One Free ATM/ Debit Card for everyAccount. The ATM/Debit Card may also be permitted to the partners of the firm/Directors of the Company who are authorized to operate the

Account.

2. Free Personal Accident (Death) insurance cover of Rs. 1 Lac (1st year)

3. Waiver of 100% ABB Charges during the 1st year.

4. Free internet / Tele banking

5. Waiver of Demat Account Maintenance Charges (for One Year)

For Accounts maintaining Average daily Current Account Balance of Rs. 5 Lacs or more

Additional Benefits

1. Free Draft issuance Facility

2. Free RTGS Facility upto Rs.5 Lacs.(However, mandatory RBI charges plus applicable service tax shall be recovered.

Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards

Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, Axis Bank

Farmers Welfare Trust

Corporate Banking - Gold Card scheme for exporters, EXIM finance

Business Sector - Axis Bank Karigar credit card, Axis Bank Kushal Udhami, Axis Bank Pragati Udhami, Axis Bank Vikas Udhami

Flexi Fixed Deposit Scheme:-

We are pleased to inform that Flexi Deposit Scheme for the benefit of our depositor customers has been approved by the Board on 18th October 2006. This scheme shall come into operation w.e.f. 1st November 2006. The features of the scheme are as under:

PRODUCT & BENEFIT:

Through reverse sweep facility, the amount lying in Flexi Fixed Deposit shall be available to the depositor whenever there is a requirement of funds in his / her / their operative account i.e. savings / current account. As such, whenever the depositor issues a cheque or uses ATM card and the available balance in his/her connected Savings/Current Account is not sufficient, Reverse Sweep will automatically withdraw the required amount from Flexi Fixed Deposit account and the remaining amount in FFD will continue to earn the same rate of interest, as agreed upon in the contract. In such event, the amount from flexi fixed deposit shall be transferred to his / her / their savings / current account by following the LIFO (last in first out) method.

However, the funds to be transferred as a reverse sweep to Savings Bank/Current Account will also meet the requirement of maintaining minimum balance.

LOANS

Banks in India with the way of development have become easy to apply in loan market. The following loans are given by almost all the banks in the country:

Personal Loan Car Loan or Auto Loan

Loan against Shares

Home Loan

Education Loan or Student Loan

In Personal Loan, one can get a sanctioned loan amount between Rs 25,000 to 10, 00,000 depending upon the profile of person applying for the loan. SBI, ICICI, HDFC, HSBC are some of the leading banks which deals in Personal Loan.

Almost all the banks have jumped into the market of car loan which is also sometimes termed as auto loan. It is one of the fast moving financial products of banks. Car loan / auto loan are sanctioned to the extent of 85% upon the ex-showroom price of the car with some simple paper works and a small amount of processing fee.

Loan against shares is very easy to get because liquid guarantee is involved in it.

Home loan is the latest craze in the banking sector with the development of the infrastructure. Now people are moving to township outside the city. More number of townships is coming up to meet the demand of 'house for all'. The RBI has also liberalized the interest rates of home loan in order to match the repayment capability of even middle class people. Almost all banks are dealing in home loan. Again SBI, ICICI, HDFC, HSBC are leading.

The educational loan, rather to be termed as student loan, is a good banking product for the mass. Students with certain academic brilliance, studying at recognized colleges/universities in India and abroad are generally given education loan / student loan so as to meet the expenses on tuition fee/ maintenance cost/books and other equipment.

MONEY TRANSFER

Beside lending and depositing money, banks also carry money from one corner of the globe to another. This act of banks is known as transfer of money. This activity is termed as remittance business. Banks generally issue Demand Drafts, Banker's Cheques, Money Orders or other such instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash Orders.

It has been only a couple of years that banks have jumped into the money transfer businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e. from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will further grow at a cumulative 12.1% average growth rate through 2009.

FUTURE OF BANKING IN INDIA

A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. The Indian banking system has witnessed a series of reforms in the past, like deregulation of interest rates, dilution of government stake in PSBs, and increased participation of private sector banks. It has also undergone rapid changes, reflecting a number of underlying developments. This trend has created new competitive threats as well as new opportunities. This paper aims to foresee major future banking trends, based on these past and current movements in the market.

Given the competitive market, banking will (and to a great extent already has) become a process of choice and convenience. The future of banking would be in

terms of integration. This is already becoming a reality with new-age banks such as YES Bank, and others too adopting a single-PIN. Geography will no longer be an inhibitor. Technology will prove to be the differentiator in the short-term but the dynamic environment will soon lead to its saturation and what will ultimately be the key to success will be a better relationship management.

OVERVIEW

If one were to say that the future of banking in India is bright, it would be a gross understatement. With the growing competition and convergence of services, the customers (you and I) stand only to benefit more to say the least. At the same time, emergence of a multitude of complex financial instruments is foreseen in the near future (the trend is visible in the current scenario too) which is bound to confuse the customer more than ever unless she spends hours (maybe days) to understand the same. Hence, I see a growing trend towards the importance of relationship managers. The success (or failure) of any bank would depend not only on tapping the untapped customer base (from other departments of the same bank, customers of related similar institutions or those of the competitors) but also on the effectiveness in retaining the existing base.

India has witness to a sea change in the way banking is done in the past more than two decades. Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a measured pace so that growth could be achieved without exposure to any macro-environment and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the government stake in public sector banks (PSBs), guidelines being issued for risk management, asset classification, and provisioning. Technology has made tremendous impact in banking. ‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial sector now operates in a more competitive environment than before and intermediates relatively large volume of international financial flows. In the wake of greater financial deregulation and global financial integration, the biggest challenge before the regulators is of avoiding instability in the financial system.

RISK MANAGEMENT

The future of banking will undoubtedly rest on risk management dynamics. Only those banks that have efficient risk management system will survive in the market in the long run. The effective management of credit risk is a critical component of comprehensive risk management essential for long-term success of a banking institution.

Although capital serves the purpose of meeting unexpected losses, capital is not a substitute for inadequate decontrol or risk management systems. Coming years will witness banks striving to create sound internal control or risk management processes. With the focus on regulation and risk management in the Basel II framework gaining prominence, the post-Basel II era will belong to the banks that manage their risks effectively. The banks with proper risk management systems would not only gain competitive advantage by way of lower regulatory capital charge, but would also add value to the shareholders and other stakeholders by properly pricing their services, adequate provisioning and maintaining a robust financial structure.

‘The future belongs to bigger banks alone, as well as to those which have minimized their risks considerably.’

ACHIEVEMENTS

Axis Bank announced its Q1FY2010 results on 29 July 2009, delivering

62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially

ahead of expectations on account of large treasury gains, apart from

healthy operating performance.

While the bank’s deposit growth was reasonably robust at 4.4%

sequentially and 26.5% y-o-y, unlike the peers its growth in advances

also remained strong at 38% y-o-y.

In spite of being at the forefront of PLR cuts, the bank posted a healthy

growth in Net Interest Income (NII) of 29% y-o-y.

Other Income surged 113% y-o-y, driven by strong treasury gains of

Rs355 crore during the quarter in line with industry trends, even as Fee

income was also robust at 45% y-o-y, on the back of strong balance sheet

growth.

Operating expenses were higher than expected on account of Rs150 crore

of provisions for imminent wage hikes.

Gross and Net NPA ratios remained stable sequentially at 1.8% and

0.2%, with the bank not adopting the guidelines of treating floating

provisions as part of tier 2 capital instead of adjusting against NPAs on

express permission from the RBI.

AWARDS AND DISTINCTIONS

Ranked among top 50 companies by the leading financial daily, Economic

Times.

Ranked as 323rd biggest bank in the world by Bankers Almanac (January

2006), London.

Earned 9th place among India's Most Trusted top 50 service brands in

Economic Times- A.C Nielson Survey.

Included in the top 1000 banks in the world according to The Banker,

London.

Golden Peacock Award for Excellence in Corporate Governance - 2005 by

Institute of Directors.

FICCI's Rural Development Award for Excellence in Rural Development – 2005

COMPANY’S MISSION AND VISION

Vision & Mission Statement

Our Vision

To be a sound all India, customer centric, efficient retail bank with

contemporary size, technology and human capital; endeavouring to enrich

lives across all sections of society; and committed to upholding the highest

standards of corporate governance.

Our Mission

To provide the finest banking services by upgrading human capital

and infusing advanced technology, thereby achieving total customer

satisfaction; and being reckoned as the “Best Bank” in the Industry on

all efficiency parameters.

To enhance shareholders’ wealth by ensuring sound growth of

business and make valuable contributions to national economic growth.

VALUES AND ETHICS

Bonding and Integrity

Ethical conduct

Periodic disclosure

Confidentiality and fair dealing

Compliance with rules and regulations

CUSTOMERS SATISFACTION

Customer satisfaction refers to the extent to which customers are happy with the

products and services provided by a business.

Customer satisfaction levels can be measured using survey techniques and

questionnaires

DEFINITIONS:

Definition 1: Customer satisfaction is equivalent to making sure that product and

service performance meets customer expectations.

Definition 2: Customer satisfaction is the perception of the customer that the

outcome of a business transaction is equal to or greater than his/her expectation.

Definition 3: Customer satisfaction occurs when acquisition of products and/or

services provides a minimum negative departure from expectations when

compared with other acquisitions.

Gaining high levels of customer satisfaction is very important to a business

because satisfaction customers are most likely to be loyal and to make repeat

orders and to use a wide range of services offered by a business

There are many factors which lead in high levels of customer satisfaction

including.

Products and services which are customer focused and hence provide high levels of

value for money.

What is clear about customer satisfaction is that customers are most likely to

appreciate the goods and services that they buy if they are made to feel special.

BENEFITS OF CUSTOMER SATISFACTION

The importance of customer satisfaction and support is increasingly becoming a

vital business issue as organization realize the benefits of Customer Relationship

Management (CRM) for providing effective customer service. Professionals

working within customer-focused business or those running call centers or help

desks, need to keep informed about the latest customer satisfaction techniques for

running a valuable customer service function. From small customer service

departments to large call centers, the importance of developing a valued

relationship with customers using CRM is essential to support customer and long-

term business growth.

What Do Customers Want?

Before we begin to create tools to measure the level of satisfaction, it is important

to develop a clear understanding of what exactly the customer wants. We need to

know what our customers expect from the products and services we provide.

Customer expectations have two types –

Expressed

Implied

Expressed Customer Expectations are those requirements that are written down n

the contract and agreed upon by both parties for example, product specifications

and delivery requirements. Supplier’s performance against these requirements is

most of the items directly measurable.

Implied Customer Expectations are not written or spoken but are the ones the

customer would ‘expect’ the supplier to meet nevertheless. For example, a

customer would expect the service representative who calls on him to be

knowledgeable and competent to solve a problem on the spot.

There are many reasons why customer expectations are likely to change overtime.

Process improvements, advent of new technology, changes in customer’s priorities,

improved quality of service provided by competitors are just a few examples.

The customer is always right. Supplier’s job is to provide the customer what he/she

wants, when he/she wants it. Customer satisfaction is customer’s perception that a

supplier has met or exceeded their expectations.

WHAT CONSTITUTES SATISFACTION?

We cannot create customer satisfaction just by meeting customer’s requirements

fully because these have to be met in any case. However failing short is certain to

create dissatisfaction

Major Attributes of customer satisfaction in banking industry can be

summarized as:

Product quality

Premium Outflow

Return on Investment

Services

Responsiveness and ability to resolve complaints and reject reports.

Overall communication, accessibility and attitude.

WHAT ARE THE TOOLS?

Customer expectations can be identified using various methods such as:

Periodic contract reviews

Market research

Telephonic interviews

Personal visits

Warranty records

Informal discussions

Satisfaction surveys

Depending upon the customer base and available resources, we can choose a

method that is most effective in measuring the customer’s perceptions. The

purpose of the exercise is to identify priorities for improvements. We must

develop a method or combination of methods that helps to continually improve

service.

CUSTOMER SATISFACTION SURVEYS

Formal survey has emerged as by far the best method of periodically the customer

satisfaction. The survey are not marketing tools but an information—gaining tool.

Enough homework needs to be before embarking on the actual survey. This

includes:

Defining Objectives of the Survey

Design Survey approach

Develop questionnaires and forms

Administer Survey (Email, Telephone or Post)

Method of compiling data and analyzing the findings

Format of the report to present the findings

There is no point in asking irrelevant questions on a customer satisfaction

questionnaire. The basic purpose is to find out what we are doing right or

wrong. Where is the scope for improvement, where do we stand vis-à-vis other

suppliers. How we can serve the customer better?

A customer satisfaction measurement survey should at least identify the

following objectives:

Importance to customers (Customers priorities)

Customer’s perception of supplier’s performance

Your performance relative to customer’s priorities.

Priorities for improvement

Survey forms should be easy to fill out with minimum amount of time and efforts

on customer’s part. They should be designed to actively encourage the customer to

complete the questions. Yet they must provide accurate data should also be

sufficiently reliable for management decision making. This can be achieved by

incorporating objective type questions where customer has to “rate” on scale of say

1 to 10. For repeated surveys, you could provide the rating that was previously

accorded by the customer. This works like a reference point for the customer.

Space should always be provided for the customers own opinions this enables them

to state any additional requirements or report any shortcomings that are not

covered by the objective questions.

Normally, we deal various personnel at various levels in the customer’s

organization—the buyer, user, receiving inspector, finance and purchase person

etc. surveying a number of respondents for each customer gives a complete

perspective of customer satisfaction. It may be necessary to device a different

questionnaire for each of them.

Respondents must be provided a way to express the importance they attach to

various survey parameters. Respondents should be asked to give a weighting

factor, again on a rating scale of say, 1 to 10, for each requirement. This gives a

better indication of relative importance of each parameter towards overall customer

satisfaction and makes it easier for suppliers to prioritize their action plans by

comparing the performance rating (scores) with importance rating (weighing).

`CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behavior and

consumer decision making process.

Most of the consumer research focused on adopter categories, habits, attitudes and

intentions rather that on actually measuring the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence

buying behaviour.

The process can be depicted as follows:-

Need recognition- realization of the difference between the desired and the

current situation that serves as a trigger for entire process.

Search for information.

Pre purchase alternative evaluation.

Consumption(utilization of the procured option)

Post purchase alternative re-evaluation.

Divestment(disposal of the unconsumed product and it’s remnants)

WAYS FOR MAINTAINING RELATIONS WITH THE CUSTOMERS

ADOPTED BY Axis Bank

The ability of the banking industry to achieve the socio-economic objectives and in

the process bringing more and more customers into its fold will ultimately depend

on the satisfaction of the customers. We have a strong belief that a satisfied

customer is the foremost factor in developing our business.

A need was felt by us at Axis Bank that in order to become more customers

friendly the Bank should come out with Charter of its services for the customers.

Citizens' Charter concept was considered as a base instrument to fill this need and

accordingly this document was prepared. This document was made in consultation

with the users and highlights our Bank's commitments towards the customer

satisfaction, thus ensuring accountability and responsibility amongst its officials

and staff. This Code for customers not only explains our commitment and

responsibilities along with the redressed methods but also specifies the obligation

on the part of customers for healthy practices in Customer-Banker relationships.

This is not a legal document creating rights and obligations. The Code has been

prepared to promote fair banking practices and to give information in respect of

various activities relating to customer service.

We wish to acknowledge the initiative taken by the Ministry of Finance,

Government of India and Ministry of Administrative Reforms and Public

Grievances for encouraging us to bring out this Code.

We maintain constant consultations with our clientele through various Seminars,

Customer Meets, etc. to evaluate improve and widen the range of service to

customer. However, all our customers are requested to keep us informed of their

experiences about the various services rendered by the Bank and feel free to

comment on this Code. We intend to bring it out in many Regional Languages in

subsequent years.

COMMON PRACTICES FOLLOWED BY Axis Bank BRANCHES

Display business hours.

Render courteous services.

Attend to all customers present in the banking hall at the close of business hours.

Provide separate 'Enquiry' or 'May I help you' counter at large branches.

Offer nomination facility to all deposit accounts (i.e. account opened in individual capacity) and all safe deposit locker hirers (i.e. individual hirers).

Display interest rates for various deposit schemes from time to time.

Notify change in interest rates on advances.

Provide details of various deposit schemes/services of the Bank.

Issue Demand Drafts, Pay Orders, etc.

Display Time-Norms for various banking transactions.

Pay interest for delayed credit of outstation cheques, as advised by Reserve Bank of India (RBI) from time to time.

Review of Literature

CONSUMER RESEARCH IN DIFFERENT DISCIPLINES

A considerable body of literature exists on consumption, consumer behaviour and consumer decision making process.

Most of the consumer research focused on adopter categories, habits, attitudes and intentions rather that on actually measuring the satisfaction level with the service.

CONSUMER SATISFACTION PROCESS

The paramount goal of marketing is to understand the customer and to influence buying behavior.

The process can be depicted as follows:-

Need recognition- realization of the difference between the desired and the

current situation that serves as a trigger for entire process.

Search for information.

Pre purchase alternative evaluation.

Consumption(utilization of the procured option)

Post purchase alternative re-evaluation.

Divestment(disposal of the unconsumed product and it’s remnants)

WAYS FOR MAINTAINING RELATIONS WITH THE CUTOMERS ADOPTED BY PNB

The ability of the banking industry to achieve the socio-economic objectives and in

the process bringing more and more customers into its fold will ultimately depend

on the satisfaction of the customers. We have a strong belief that a satisfied

customer is the foremost factor in developing our business.

A need was felt by us at Axis Bank that in order to become more customers

friendly the Bank should come out with Charter of its services for the customers.

Citizens' Charter concept was considered as a base instrument to fill this need and

accordingly this document was prepared. This document was made in consultation

with the users and highlights our Bank's commitments towards the customer

satisfaction, thus ensuring accountability and responsibility amongst its officials

and staff. This Code for customers not only explains our commitment and

responsibilities along with the redressed methods but also specifies the obligation

on the part of customers for healthy practices in Customer-Banker relationships.

This is not a legal document creating rights and obligations. The Code has been

prepared to promote fair banking practices and to give information in respect of

various activities relating to customer service.

We wish to acknowledge the initiative taken by the Ministry of Finance,

Government of India and Ministry of Administrative Reforms and Public

Grievances for encouraging us to bring out this Code.

COMMON PRACTICES FOLLOWED BYAxis Bank BRANCHES

Display business hours. Render courteous services. Attend to all customers present in the banking hall at the close of business

hours. Provide separate 'Enquiry' or 'May I help you' counter at large branches. Offer nomination facility to all deposit accounts (i.e. account opened in

individual capacity) and all safe deposit locker hirers (i.e. individual hirers). Display interest rates for various deposit schemes from time to time. Notify change in interest rates on advances. Provide details of various deposit schemes/services of the Bank. Issue Demand Drafts, Pay Orders, etc. Display Time-Norms for various banking transactions. Pay interest for delayed credit of outstation cheques, as advised by Reserve

Bank of India (RBI) from time to time. Accord immediate credit in respect of outstation and local cheques upto a

specified limit subject to certain conditions, as advised by RBI from time to time.

Provide complaint/suggestion box in the branch premises. Display address of Regional/Zonal and Central Offices as well as Nodal

Officer dealing with customer grievances/complaints.               

Objective

OBJECTIVE OF THE STUDY

To have an insight into the attitudes and behaviors of customers.

To find out the differences among perceived service and expected

service.

To produce an executive service report to upgrade service characteristics.

To understand consumer’s preferences.

To access the degree of satisfaction of the consumers

Scope of The Study

SCOPE OF THE STUDY

This study is limited to the consumers with in New Delhi city. The study

will be able to reveal the preferences, needs, satisfaction of the customers

regarding the banking services, It also help banks to know whether the existing

products or services these are offering are really satisfying the customers’ needs.

Research Methodology

REASERCH METHODOLOGY

A descriptive study tries to discover answers to the questions who, what, when,

where, and, sometimes, how. The researcher attempts to describe or define a

subject, often by creating a profile of a group of problems, people, or events.

Such studies may involve the collection of data and the creation of a distribution of

the number of times the researcher observes a single event or characteristic (the

research variable), or they may involve relating the interaction of two or more

variables. Organizations that maintain databases of their employees, customers,

and suppliers already have significant data to conduct descriptive studies using

internal information. Yet many firms that have such data files do not mine them

regularly for the decision-making insight they might provide.This descriptive study

is popular in business research because of its versatility across disciplines. In for-

profit, not-for-profit and government organizations, descriptive investigations have

a broad appeal to the administrator and policy analyst for planning, monitoring,

and evaluating. In this context, how questions address issues such as quantity, cost,

efficiency, effectiveness, and adequacy.

Descriptive studies may or may not have the potential for drawing powerful

inferences. A descriptive study, however, does not explain why an event has

occurred or why the variables interact the way they do.

SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present

study, 100 respondents were selected at random. All the 100 respondents were the

customers of different branches of Axis Bank.

METHOD OF DATA COLLECTION

To know the response, the researcher used questionnaire method. It has been designed as a primary research instrument. Questionnaires were distributed to respondents and they were asked to answer the questions given in the questionnaire.

The questionnaires were used as an instrumentation technique, because it is an important method of data collection. The success of the questionnaire method in collecting the information depends largely on proper drafting. So in the present study questions were arranged and interconnected logically. The structured questionnaire will reduce both interviewers and interpreters bias.

Further, coding and analysis was done for each question’s response to reach into findings, suggestions and finally to the conclusion about the topic.

TYPES OF DATA

Every decision poses unique needs for information, and relevant strategies can be

developed based on the information gathered through research. Research is the

systematic objective and exhaustive search for and study of facts relevant to the

problem

Research design means the framework of study that leads to the collection and

analysis of data. It is a conceptual structure with in which research is conducted. It

facilitates smooth sailing of various research operations to make the research as

effective as possible.

PRIMARY DATA

Primary data are those collected by the investigator himself for the first time and

thus they are original in character, they are collected for a particular purpose.

A well-structured questionnaire was personally administrated to the selected

sample to collect the primary data.

Limitation

LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning

there are several limitations, which handicapped the research viz,

1. Time Constraints:

The time stipulated for the project to be completed is less and thus there are

chances that some information might have been left out, however due care is taken

to include all the relevant information needed.

2. Sample size:

Due to time constraints the sample size was relatively small and would definitely

have been more representative if I had collected information from more

respondents.

3. Accuracy :

It is difficult to know if all the respondents gave accurate information; some

respondents tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and

collection of data was very difficult. Therefore, the study had to be carried out

based on the availability of respondents.

Data Analysis & Interpretation

TABLE:- 1

PERCENTAGE OF PEOPLE HAVING BANK ACCOUNT

GRAPH

Graphical representation of the people having bank account

Bank Account Percentage

Yes 93%

No 7%

Total 100%

Analysis: - From the above table and graph it can be seen that only 7% of the people having no bank account while the other 93% have theirs in different banks. This data is presented in both the table and graphical presentation.

Interpretation: So we can conclude most of the people have accounts in various banks for having different reasons like , to have safety of money, to transact easily with others etc.

TABLE-2

Transaction of different banks in the market

Graph

Banks percentage

SBI 22%OBC 24%PNB 20%AXIS 11%ICICI 13%Other 10%

Analysis: - From the former table and graphs we can see people have accounts like in SBI 22% , in OBC 24%,in PNB20%, in AXIS 11%,inICICI 13% and in other banks there are only 10% accounts among all the respondents.

Interpretation: It is concluded here that OBC have its popularity of having alarge no. of accounts in the studied area for its best service in all sectors.

TABLE : 3

SHARE OF DIFFERENT TYPES OF ACCOUNTS

SL. No.

NATURE OF ACCOUNTS

NUMBER OF RESPONDEN

TS

PERCENTAGE OF

RESPONDENTS

1. Saving A/Cs 78 78%

2. Current A/Cs 9 9%

3. Fixed Deposits 4 4%

4. Loans 3 3%

5. Others 6 6%

Total 100 100%

Analysis: Above table shows that 78% respondents have Saving A/Cs, and 9%

have Current A/Cs and rest of the respondents have 13% share of other A/Cs in

total (which includes fixed deposits, loans, and other products)

Interpretation: This means most of the respondents are having Saving A/Cs

which means the bank deposits are enriching as Saving A/Cs share is most.

TABLE- 5

THE CUSTOMERS SATISFACTION WITH INTEREST RATE OF Axis Bank

Satisfied Percentage

Yes 82

No 18

Total 100

Classification Based on level of customer satisfaction with the interest provided by Axis Bank

Analysis: - The customers are satisfied largely on the interest rate of Axis Bank compare to any other banks i.e. 82% which is elaborated in the above table and graphs.

Interpretation: so we can concluded that the customers are satisfied with the interest rate of Axis Bank.

TABLE- 6

HOW THE CUSTOMERS SATISFIED WITH INTEREST RATES OF BANKS

SL NO. NAME OF BANKS

NO. OF RESPONDENTS

PERCENTAGE OF RESPONDENTS

1 SBI 26 26%

2 PNB 15 15%

3 Axis bank 36 36%

4 ICICI 9 9%

5 OTHERS 14 14%

TOTAL 100 100%

GRAPH

Classification Based on level of customer satisfaction with the interest rate of banks.

Analysis: The above table shows that 36% of the respondents prefer Axis bank firstly. Thereafter they prefer other banks like SBI,PNB etc. Likewise SBI-26%, PNB-15%, ICICI-9% and other banks 14%.

Interpretation: From these all it can be concluded that a major part of the customers are satisfied with the interest rate of Axis Bank.

TABLE:7

CONSUMERS WILLINGNESS TO SHIFT THEIR A/C s TO OTHER BANKS

SL. No. RESPONSES NUMBER OF PERCENTAGE OF

RESPONDENTS RESPONDENTS

1. Shift 8 8%

2. Doesn’t shift 92 92%

TOTAL 100 100 %

Analysis: From this table it can be noted that the majority of consumers (92%)

doesn’t like to shift their A/Cs to other banks.

Interpretation: The reason can be increasing customer satisfaction and quality

services offered by the bank.

TABLE: 8

SATISFACTION OF RESPONDENTS WITH SERVICES OFFERED BY Axis Bank BRANCH

SL. No. RESPONSE NUMBER OF RESPONDENTS

PERCENTAGE OF RESPONDENTS

1. Satisfied 89 89%

2. Not satisfied 11 11%

TOTAL 100 100 %

Analysis: From the above table it could be inferred that 89% of the consumers are

satisfied with the service and quality of products of their bank. Only 11% of

consumers are not satisfied.

Interpretation: Most of the respondents are satisfied with the service offered by

Axis Bank. Presently the bank offers varieties of services and the customers are

getting a good rate of return from their deposits. Customers are getting good

service from the bank.

TABLE:9

RATINGS OF THE SERVICES OFFERED BY THE RESPONDENT’S LIFE INSURANCE COMPANY

SL. No. RATINGSNUMBER OF

RESPONDENTSPERCENTAGE OF

RESPONDENTS

1. EXCELLENT 05 5%

2. VERY GOOD 09 9%

3. GOOD 76 76%

4. AVERAGE 06 6%

5. POOR 04 4%

TOTAL 100 100 %

Analysis: From this table it could be inferred that 76% of the consumers have

rated service offered as ‘good’, 9% of them have rated them as ‘very good’, and

05% of them have rated as excellent and average’ while only 4% have rated aspoor

.Interpretation: Service offered by the bank is improving day by day. Returns

consumers are getting are also attractive. Majority of the customers rates good,

very good and excellent because of the customer service offered by the bank.

TABLE- 10

Which product of Axis Bank is beneficiary to Customer?

GRAPH

Classification Based on level of various types of account provided by banks.

Analysis: - It is seen that more customer have savings account like 47% in Axis Bank. Likewise there are 23% current account , 17% fixed deposit ,5% loan and only 8% insurance.

Interpretation: So it is clear that there are more savings account in Axis Bank as compare to other accounts and services.

Product Percentage

Saving A/c (SA) 47%

Current A/C (CA) 23%

Fixed Deposit (FD) 17%

Loan A/C (LA) 05%

Insurance (INS) 08%

Total 100%

FINDING

Findings

1..Most of the respondents are having Saving A/Cs .

2. Most of the respondents are satisfied with the service offered by Axis Bank.

3. Majority of the customers rates good, very good and excellent because of the customer service offered by the bank .4. people are now looking forward for better customer service in addition to the

brand name in which they are investing and the returns they are getting.

5. The reason can be increasing customer satisfaction and quality services offered

by the bank.

RECOMMENDATIONS

RECOMMENDATIONS

With regard to banking products and services, consumers respond at different rates,

depending on the consumer’s characteristics. Hence I Axis Bank should try to

bring their new product and services to the attention of potential early adopters.

Due to the intense competition in the financial market, Axis Bank should

adopt better strategies to attract more customers.

Return on investment company reputation and premium outflow are most

preferred attributes that are expected by the respondents. Hence greater focus

should be given to these attributes.

Axis Bank should adopt effective promotional strategies to increase the

awareness level among the consumers.

Axis Bank should ask for their consumer feedback to know whether the

consumers are really satisfied or dissatisfied with the service and product of

the bank. If they are dissatisfied, then the reasons for dissatisfaction should

be found out and should be corrected in future.

The Axis Bank brand name has earned a lot of goodwill and enjoys high

brand equity. As there is intense competition, Axis Bank should work hard

to maintain its position and offer better service and products to consumers.

The bank should try to increase the Brand image through performance and

service then, only the customers will be satisfied.

Majority of the people find banking important in their life, so Axis Bank

should employ the strategies to convert the want in to need which will enrich

their business.

Conclusion

CONCLUSIONS

The project entitled “A STUDY TO UNDERSTAND THE CUSTOMER

SATISFACTION AT Axis Bank” has helped me in studying satisfaction about

services and products offered to consumers.

Since the opening up of the banking sector, private banks are in the fray each one

trying to cover more market share than the other.

Yet, Axis Bank is far behind SBI, PNB. Axis Bank must also be alert what with

Private Banks (ICICI, HDFC) breathing down its neck.

I am sure the bank will find my findings relevant and I sincerely hope it uses my

suggestions enlisted, which I hope will take them miles ahead of competition.

In short, I would like to say that the very act of the concerned management at Axis

Bank in giving me the job of critically examining consumer satisfaction towards

financial products and services of the company is a step in their continual mission

of making all round improvements as a means of progress.

I am sure the bank has a very bright future to look forward to and will be a

trailblazer in its own right.

BIBLIOGRAPHY

BIBLIOGRAPHY

Books

Axis Bank Ltd.’s prospectus, publications etc.

Varshney P.N;Banking Law and Practice”:Sultan Chand and Sons;2005

Research Methodology - Methods and Techniques by C.R.Kothari.

Web Sites

htpp://www. Axis Bank.com

http:// www.oriantalbankofcommerce.com

http:// www.wekipedia.com

http://www.rbi.com

Annexure

Questionnaire

Customer Feedback Form

Name of Customer

……………………………………………………………….....................................

Address………………………………………………………………………………

……………………..

A/C No………………………......Age………….Sex……………Contact

no……………………………..

1. Do you have any bank account?

Yes No

2. If yes, than in which bank you have done your transaction?

SBI OBC PNB AXIS ICICI

Others ____________

3. Which type of account you have?

SAVING A/C CURRENT A/C FIXED

DEPOSIT A/C

4. Why you choose Axis Bank?

Customer service Brand name interest others

5. Do you satisfied with the interest provided by your bank?

Yes No

6. Which bank provided better interest rate?

SBI PNB Axis Bank ICICI Other

7. Are you interested to sift the account to other bank?

Shift Doesn’t shift

8. Are you satisfied with the service provided by Axis Bank?

Satisfied Not satisfied

9. How you rate the insurance product of Axis Bank?

Excellent Very good Good Average Poor

10. Which product of Axis Bank would you like?

S A C A L A Insurance

Other