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A

SUMMER TRAINING REPORT

ON

Comparative Study of Current Account and Saving Account Products of

Axis Bank with Peer Banks

SUBMITTED BY:

Riktesh Gupta(01201110)

GUIDED BY:

Ms. Kiranjit Kaur Virdi (Industry Mentor)

Prof. Meghna Dangi (Faculty Mentor)

Submitted for Partial Fulfillment of

Degree of Masters of Business Administration from

AURO University of Hospitality and Management

Surat.

Academic Year-2011-2013

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Declaration

I Riktesh Gupta hereby declares that this project entitled Comparison of Current account and

Saving account products of Axis bank with peer banks is an authentic work of mine under

the valuable guidance and supervision.

I also declare that facts and data in this report are true to the best of my knowledge. The report is

based on my work and my in-debtness to other works or publications, It has been duly

acknowledged. This report has not been previously submitted for the award of my

degree/diploma or any other similar examination.

Date:

Place:

Riktesh Gupta

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Acknowledgement

A project is never the sole product of a person whose name has appeared on the cover. Even the

best effort may not prove successful without proper guidance. For a good project one needs

proper time, energy, efforts, patience, and knowledge. But without any guidance it remains

unsuccessful. I have done this project (Comparison of Current account and Savings account

products of Axis bank with peer banks) with the best of my ability and hope that it will serve its

purpose.

To be or not to be is not anything which matters, how to be thankful is what really mattersIt was really a great learning experience and I am really thankful to my branch executives, who

not only helped me in the successful completion of this report but also spread his precious and

valuable time in expanding my knowledge base.

I wish to acknowledge my gratitude towards MS Kiranjit Kaur Virdi,Branch Head of Axis Bank

Varachha Branch,Devendra Mane,Branch Sales Manager of Varachha Branch,Prof Meghna

Dangi Faculty Mentor, my friends and all those persons who are responsible for the successful

completion of this project.

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Executive Summary

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

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

promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India

(UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India

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

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

Insurance Company Ltd. The bank is emerging as one of the fastest services rendering agency

not only in Indian economy but also in overseas.

In this project I have endeavoured to conduct a comparative analysis of Current and Saving

account products of Axis bank with peer banks. In order to do research more in-depth and to

arrive on better conclusions I have taken comparison along with nationalized and co-operative

banks. In initial phase of the project I have described the services of Axis bank in details and

have then compared its financial performance with its major competitors HDFC and ICICI bank.

The project is based on comparative study but I tried to relate it with not only comparison but

also with consumer preference and thereby tried to relate it with awareness level also.

Hypothesis is formed to the best of my abilities and tried to associate it with various

demographics and attributes. Next I have detailed my findings of the analysis and have

concluded the backdrops and also made SWOT analysis. In the end of this project have given

suggestions and also framed strategies to capture market share.

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Index

SR. no Title Page No

1 Chapter 1- Industry Profile 6

1.1 Industry Overview 7

1.2 History of Banking 9

1.3 Trends in Banking Industry 11

2 Chapter 2- Company Profile 12

2.1 Company History 13

2,2 Mission and Values 13

2.3 Board of Directors 13

2.4 Glimpse of Functioning of Axis Bank 14

2.5 Products and Services 18

2,6 Financial Overview 392.7 Competitors 43

3 Chapter 3- Theoretical Framework 45

4 Chapter 4- Research Methodology 47

5 Chapter 5- Analysis and Findings 51

6 Chapter 6- Conclusion and Recommendation 68

7 Chapter 7- Bibliography 71

8 Chapter 8- Annexure 73

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1. Industry Profile

1.1 Industry Overview

Banking system of a nation is the shadow ofnations economy. It is the lifeline of the nation and

people. A healthy and profitable banking system is

just like the backbone of nations economy.

It is necessary for a nation to achieve growth and

remain stable in this global world and global

economy. The Indian banking system, with one of the largest banking networks in the world, has

witnessed a series of reforms over the past few years like the deregulation of interest rates,

dilution of the government stake in public sector banks (PSBs) and the increased participation of

private sector banks. It has helped in ushering a new dawn of progress in Indian horizon.

1.2 History

Banking in India originated in the last decades of the 18th century. The first banks were The

General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now

defunct. The oldest bank in existence in India is the State Bank of India, a government-owned

bank that traces its origins back to June 1806 and that is the largest commercial bank in the

country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint

Stock bank in India.

Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took

over these responsibilities from the then Imperial Bank of India, relegating it to commercial

banking functions. After India's independence in 1947, the Reserve Bank was nationalized and

given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the

government then again nationalized the six next largest in 1980.

Despite this commendable progress, serious problem have emerged reflecting in a decline in

productivity and efficiency, and erosion of the profitability of thebanking sector. There has been

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deterioration in the quality of loan portfolio which, in turn, has come in the way of banks income

generation and enhancement of their capital funds.This led the government to set up a committee

named NarasimhamRao. The suggestions made by this committee resulted in to transformation

of hitherto highly regimented and over-bureaucratized banking system into market driven and

extremely competitive one.

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1.3Trends in Banking Industry

The Indian banking industry can be traced as far back as 1806 with the establishment of Bank of

Bengal, the industry was in a state of turmoil.

Under the British influence, Calcutta witnessed a surge in trading activities, giving rise to a

number of banking establishments during the period. Several banks, set up in order to finance

trading, went out of business.

For instance, Union bank, formed by Indian merchants, failed due to economic recession

during 1848-49 resulting in depositors losing money. Such events resulted in shifting the

reigns of the industry into the hands of Europeans till the early twentieth century.

From 1906 to1911, several banks were set up based on the principles of the Swadesi

movement. The movement inspired Indian businessmen and politicians to set up banks

for the Indian community and many new banks were launched to promote trade and

finance in communal groups. Some of the prominent ones among these are Bank of India,

Corporation Bank, Bank of Baroda, Indian bank, Canara Bank, and Central bank of India.

Bank of Bengal, along with its sister banks, Bank of Bombay and Bank of Madras, set up

by British East India Company, merged in 1921 to give birth to Imperial bank of India,

now known as State bank of India.

During 1914-1945, India went through several ups and downs politically and

economically and the effects were felt in the banking sector too. The World Wars

disrupted banking activities of the nation and almost 94 banks failed during this period.

After 1947, however, banking activities flourished.

After the partition of India, the government took drastic steps to regulate the banking

industry. For example, in 1948, additional powers and authority were vested in the

Reserve bank of India to monitor the functioning of the entire banking system.

Thepassing the Banking regulation-act in 1949, empowered RBI to further regulate,

inspect, and control Indian banks.

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The nationalization and liberalization of banks 1969 and 1991 respectively also boosted

the development of the Indian banking sector. Nationalization resulted in 91% of

government holding in the banking industry and liberalization paved the path for private

players to participate in the industry. As a result, banks like Oriental bank of Commerce,

HDFC bank, ICICI bank, and AXIS bank came into being. Foreign banks too were

permitted to set up their offices in India. The rationalization of FDI norms in 2002 also

allowed foreign players to acquire stakes in Indian banks.

These banks implemented innovative forms of banking like ATMs, mobile banking, phone

banking, internet banking, and debit/credit cards. The private players constantly improved

services in order to retain customers and win the severe competition which had become a feature

of the Indian banking industry. Currently, private banks are going through a series of mergersand acquisitions and public sector banks are shrinking in the form of manpower, equity, and non-

performing assets.

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2. Company Profile

Axis Bank is one of the fastest growing banks in private sector. The Bank operates in four

segments, namely treasury, retail banking, corporate/ wholesale banking and other banking

business.Today, Axis Bank ranks amongst the top 10 private banks in India.

2.1 Company History

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

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

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

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

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

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

Company Ltd. . Previously called UTI Bank, The name of the Bank was changed in 2007 as

there was brand confusion because many unrelated shareholder entities such as UTI Securities,

UTI Technological Service and UTI Investor Services were also sharing the UTI brand.

Moreover, the name was changed to connote stability and solidarity as well as was in line with

the banks expanding operations across geographical boundaries.

2.2 Mission and Values of Axis Bank.

2.2.1 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.

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2.2.2 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

Maximisation of Stakeholder value

Success through Teamwork, Integrity and People

2.3 Board of Directors

Adarsh Kishore Chairman

Shikha Sharma Managing Director & CEO

Rama Bijkurpar Director

K. N. Prithviraj Director

V. R. Kundiya Director

S. B. Mathur Director

Prasad. R. Menon Director

R. N. Bhattacharya Director

Samir. K .Bareua Director

A. K. Dasgupta Director

Som Mittal Director

P. J. Ozza Company Secretory

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2.4 Glimpse of Functioning of Axis Bank

Journey from UTI to AXIS

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

January 2008 as per government directives. On July 30, 2007, UTI Bank, the third largest private

sector bank in India, officially changed its name to Axis Bank. The Bank today is capitalized to

the extent of Rs. 359.76 crores with the public holding (other than promoters) at 57.79%.This is

one of the largest ATM networks in the country.

Human Resource in Axis

The ultimate aim of the Human Resources function is to build and manage a motivated pool of

professionals by grooming internal resources and recruiting the right skills from the market,

develop a high performance work-ethic and create a culture of continuous learning and skill

development. The Bank aims in creating and developing human capital to realise its vision of

nurturing a mutually beneficial relationship with its employees. Employee engagement and

learning, leadership development, enhancing productivity and building multiple communication

platforms thus occupied centre stage in the Banks HR objective during the year.

The Bank has tied up with training and educational institutions to build alternate pipelines for

recruiting trained manpower through a cost-effective and time-efficient process.

In a major initiative, the Bank launched Axis Academic Interface Program (AAIP) with the 2-

fold purpose: building long-term partnership with Institutions to offer youngsters an

understanding about the financial services industry, and creating Axis Bankers.So far, the Bank

has tied up with Manipal University, NIIT, IFBI and Guwahati University.

The total employee strength of the Bank stood at 31,738 as compared to 26,435 in the previous

year. The Bank has a young workforce with an average age of 29 years. The equal opportunity

employer policy of the Bank contributes strongly to the Axis Bank brand.

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Systems Overview in Axis

The ultimate aim of the systems function at axis bank is to constantly keep in terms with the

upgrade of the technology. And provide the customers the best services with the help of this

advancement in technology.

Operations Overview in Axis

Operations function focuses on restructuring of the banking operations to reflect a modern

approach to banking. And for this an operational framework has been established in order that all

transactions are handled with precision. Operational parameters and control functions were

refined to ensure efficient functioning of branches.

Future of Axis Bank

Due to flattening of the world, the organization competitive playing field is being levelled. New

players are entering into the market. Axis will have to face stiff completion with its existing as

well as with new players in giving best services to its customer base and function globally.

Miles-stones Achieved

Time-line Milestones/Event

2006-2009 Opens its first international branch

in Singapore

Opens Representative Office in

Shanghai

Crosses the 2,000 ATM mark in 2006

Opens a Full Licence Bank Branch in

Hong Kong

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Re-brands itself as Axis Bank

Launches Platinum Credit Card,

India's first EMV chip based card


2001-2005 Private placement of 26% stake to

CDC Capital Partners

Deposit crosses Rs.100bn mark in

2001, advances crosses Rs.50bn

First commercial bank to open an

ATM at a post office

100th branch open at Tuticorin,

Tamilnadu


Gets listed on the London Stock

Exchange, raises $239.3m

1998-2000 Successfully completes its IPO in

1998 and gets itself listed on NSE and

BSE

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Cash management services as well as

credit card launched

Profit crosses Rs.500m in 2000

Launches Internet banking module,

iConnect retail loans introduced

Financial advisory services and e-

commerce introduced

Second largest ATM network in the

country with 200 ATMs

1993-1997 Incorporated as UTI Bank,

headquartered in Mumbai

First Branch inaugurated at

Ahmedabad

Completes first profitable year in

operation in 1995

Deposit crosses Rs.10bn mark in

1996

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2.5 Products and Services

1. Accounts

2. Deposits

3. Safe deposit locker

4. Loans

5. Foreign Exchange

6. Investment

As a part of project we will only threw light of information on Accounts.

1. Savings Account.

A ) Easy Access Savings Account:

The account is an endeavour by the bank to understand the consumers' needs and redefine

banking to suit customers requirements for a truly comfortable banking experience. Easy Access

Savings Account gives them instant access to their money anywhere, anytime. Possessing a

range of unmatched features, it has been devised to better suit the convenience of their eclectic

client base.

Customers can avail of all these services with a minimum quarterly average balance of

Rs.10000in metro or urban centers, Rs.5000 in semi urban centers and Rs.2500 in rural centers.

Features

At Par Cheque Book

As an Easy Access Savings Account Holder, you will receive the "At-par" cheque book. One can

en-cash 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.

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ATM Network

Easy Access Savings Account also entitles them to an International Debit Card with which they

can access their account anytime at all Axis bankATMs - both, Visa enabled and Axis banks

partner banks - across the country. Withdrawals and deposits (money as well as cheques) are

possible with Debit Card. And unlike most other ATMs, an Axis Bank ATM allows one to

withdraw upto Rs 40,000 per day.

Anywhere Banking

One can transact through any of Axis banks branch offices all of which are interconnected for

their banking convenience. Transactions like cash deposits, cash withdrawal, transfers and

clearing deposits can all be carried out wherever happen to be.

Telebanking

Telebanking service provides customer instant access to their savings account. It offers customer

a wide range of services over the phone such as Account Information, Balance Inquiry,

Transaction Details, Status of customer Cheque (available only during branch business hours)

and even Statement of Account on Fax.

Internet Banking

The idea of "your Bank on your desktop" is now a reality with Internet Banking. Customer can

look-up the status of their savings account, request, 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.

Free SMS Banking

SMS Banking enables customer of Axis to bank with them through their mobile phone

irrespective of where they are. Avail facilities like balance inquiry, debit or credit alerts, last

three transaction details and cheque status.

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Account Statement

Quarterly statements are delivered free of cost.

Quarterly Interest

Every quarter, interest would be credited at the rate of 3.5% per annum in your account

Free monthly e-statement

Axis Bank offers the facility of free monthly e-statement.

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B. Prime Savings Account:

At Axis Bank, they have always strived to pace their products with the growing needs of their

customers. The Prime Savings account has therefore been designed to suit customer financial

requirements.

Features:-

Wider accessibility

As a Prime Savings account holder, one can enjoy access to a wide network of over 1000

branches and one of the largest ATM networks (6890 ATMs as on 30th June, 2011) in India

giving easy access to ones account from almost any corner of the country.

Greater convenience

To simplify daily banking, prime Savings account comes with a Titanium Debit Card. This

unique card comes with withdrawal and POS limit of Rs. 50,000 per day.Debit Card also comes

with a comprehensive insurance cover inclusive of zero lost card liability, purchase protection of

Rs.50000 and personal accident insurance up to Rs. 3 lakhs.

[To keep customers personal accident insurance cover activated, they should have made a

purchase transaction in 90 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.]*

More comfort

Through o 24 hour Internet Banking and Tele Banking services, customer of Axis bank can

enjoy the ease of banking from home or office. Through these comprehensive services, one can

access a range of facilities including online funds transfer, requests for a new chequebook, online

shopping and information on mutual funds.

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Enhanced privileges

Prime savings customer are eligible for special offers and discounts on locker fee,demat and

online trading accounts

Added speed

Through the 'At Par' cheque facility, customer of Axis bank have the unique advantage to en-

cash their cheques as a local cheque at more than 330 centres where the bank has a presence at

no extra cost. In addition the account enables one to issue cheques without any limit, which will

be treated as 'At Par' across these locations. They can avail of all these services with a minimum

average balance of Rs 25,000 in metro/urban centers and Rs 10,000 in semi-urban/rural centers

or with a TD of Rs 100,000 for a minimum period of 6 months. .

Additional Features at a glance

Free Titanium Debit Card

o Enhanced ATM and POS limits of Rs.50,000 (Annual charge waiver offered on

POS transaction of Rs. 50,000 p.a./ 10 POS transactions of any value in year)

o 10 Free transactions at other bank ATMs

o International Debit card with an Accidental Insurance cover uptoRs. 3 lakhs

o Lounge Access at airports

Channels

o Free quarterly statement of account

o Free SMS Banking Facility

o 24*7 Phone Banking, Internet Banking and Mobile Banking Facility

o Free monthly e-statement / free passbook facility.

Other Features

o Two Demand Drafts/Pay Orders free per month

o Increased cash deposit/withdrawal limits at non home branches

o Option of automatic movement of excess funds in the savings account to higher

earning fixed deposits

o Access through more than 1419 Branches & 6890 ATMs (As on 30th June, 2011)

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C. Future Stars Savings Account:-

The Future Stars Savings Account is an exclusive account being offered for children inculcate

the discipline of savings in children. This account will act like a piggy bank for the child where

their money will be kept safe and earn interest as well. The child of age 12 years and above can

also make smart purchases by way of an exclusive debit card. They will also learn to bank at an

early age in a better and convenient way. This scheme of savings account has certain unique

features specifically needed and used by this target group in order to have better and long term

relation with the bank.

Features

This savings account is loaded with unique features as below:

This Product can be offered to the children in the category of less than 18 years of age. The

account has an average quarterly balance of Rs. 2500/- for branches in Urban / Metro / Semi

Urban areas and average quarterly balance will be Rs. 1000/- for branches in Rural areas.

The Average Quarterly Balance shall be NIL if a Fixed Deposit of Rs 25,000/- or Recurring

Deposit of Rs. 2000/- per month is maintained. The fixed deposit should be for a minimum

period of 6 months and the recurring deposit should be for a minimum period of 12 months.

Free personalized cheque book.

Free ATM card with daily withdrawal limit of Rs. 1500/- for children below the age of 12

years.

Visa Classic Debit Card for children above the age of 12 years will be offered at Issuance

Fee of Rs. 95/- and with annual fee of Rs. 100/-.

The child of age 12 years and above can also opt for an Image debit card with his / her own

attractive picture or any other photo they choose.

Automated Facility fortransferring funds to the childs account from the parents account on a

monthly basis.

Free Internet banking facility. The idea is to make the child internet savvy and expose them

to the online banking environment.

Online forums with interactive tutorials and games about money.

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Free SMS Banking.

Free monthly e-statements / Quarterly Physical Statements.

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D. Prime Plus Savings Account:-

In Axis Bank, financial products and services are designed by keeping in mind customers tastes

and preferences. The Prime Plus account is specially designed for those who want extra features.

Features

Wider accessibility

As a Prime Plus Savings account holder, one can enjoy access to a wide network of over 1470

branches and one of the largest ATM networks (more than 8000 ATMs as on 31 Jan 2012) in

India giving easy access to your account from almost any corner of the country.

Greater convenience

To simplify daily banking, prime plus savings account comes with a Titanium Debit Card. This

unique card comes with withdrawal limit of Rs 50,000 per day and POS limit of Rs. 75,000 per

day. Debit Card also comes with a comprehensive insurance cover inclusive of zero lost card

liability, purchase protection of Rs.75,000 and personal accident insurance up to Rs. 3 lakhs.

[To keep personal accident insurance cover activated, one should have made a purchase

transaction in 90 days prior to the day of the incident & report the incident within 60 days of

occurrence.]*

More comfort

Through 24 hour Internet Banking and Tele Banking services, one can enjoy the ease of banking

from home or office. Through these comprehensive services, one can access a range of facilities

including online funds transfer, requests for a new chequebook, online shopping and information

on mutual funds.

Enhanced privileges

As a Prime Plus savings customer one is eligible for special offers and discounts on locker fee,

demat account and bullion.

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25% waiver on first year locker rent (subject to availability)

100% waiver on first year Demat account AMC

Attractive discount on bullion

Added speed

Through the 'At Par' cheque facility, onehave the unique advantage to en-cash their cheques as a

local cheque at more than 971 centres where the bank has a presence at no extra cost. In addition

the account enables one to issue cheques without any limit, which will be treated as 'At Par'

across these locations. One can avail of all these services with a minimum average balance of Rs

1 lakh in metro/urban centres and Rs 75,000 in semi-urban/rural centres or with a TD of Rs

5,00,000 for a minimum period of 6 months.

Additional Features at a glance

Free Titanium Debit Card

Zero issuance fees and waiver of annual charge of Rs 200 offered on POS transaction of

Rs. 50,000 p.a./ 10 POS transactions of any value in year

Enhanced ATM withdrawal limit of Rs 50,000 and POS limits of Rs.75,000

10 Free transactions at other bank ATMs International Debit card with an Accidental Insurance cover up-to Rs. 3 lakhs

Lounge Access at airports

Attractive reward points -1 point for every Rs 200 spent

Channels

Free quarterly statement of account

Free SMS Banking Facility 24*7 Phone Banking, Internet Banking and Mobile Banking Facility

Free monthly e-statement / free passbook facility.
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Other Features

Two Demand Drafts/Pay Orders free per month at Axis Bank locations

Two free Payable At-par cheque books per quarter

25 % waiver on first year locker rent (subject to availability)

Attractive discounts on demat account and bullion

Increased cash deposit/withdrawal limits at non home branches

Option of automatic movement of excess funds in the savings account to higher earning

fixed deposits

Access through more than 1470 Branches & 8000 ATMs (As on 31th Jan, 2012)

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E. Women's Savings Account

Presenting, Axis Bank's Women's Savings Account. The account is an endeavour by the Bank to

understand the consumers' needs and redefine banking to suit your requirements for a truly

comfortable banking experience. Women's Savings Account gives you instant access to your

money anywhere, anytime. With the Women's Savings Account, you can manage your money

and your life and Furthermore Axis Bank's Women's Savings Account ensures that you have

enough time for all the important things in life.

Features

Free At-par Cheque book

As a Women's Savings Account holder, one will receive free "At-par" cheque book, which

empowers them to en-cash their cheques as local cheques at any of the Axis Bank branch center.

ATM Network

Women's Savings Account also entitles to an International Debit Card with which one can access

account anytime at all ATMs - both, Visa enabled and partner banks - across the country.

Withdrawals and deposits (money as well as cheques) are possible with their Debit Card. Andunlike most other ATMs, an Axis Bank ATM allows to withdraw up to Rs.40,000 per day.

Anywhere Banking

You can transact through any of branch offices all of which are interconnected for banking

convenience. Transactions like cash deposits, cash withdrawal, transfers and clearing deposits

can all be carried out wherever you happen to be.

Telebanking

Telebanking service provides one with instant access to account. A wide range of services such

as Account Information, Balance enquiry, Transaction Details, Status of cheques (Available only

during branch business hours) and Statement of Account on Fax can be availed over the phone.

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Internet Banking

The idea of "your Bank on your desktop" is now a reality with Internet banking. You can look-up

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.

Free SMS Banking

SMS 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 Interest

Every quarter, interest would be credited at the rate of 4% per annum in your account.


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F. Senior Citizen's Account:-

The account is an endeavour by the Bank to understand the consumers' needs and redefine

banking to suit their requirements for a truly comfortable banking experience. Senior citizen

Savings Account gives them instant access to their money anywhere, anytime. Axis Bank's

Senior Citizen Savings Account has been designed keeping in mind the fact that a Senior

citizen's banking requirements are wholly different and require special consideration.

Features:-

Free At-par Cheque book

As a "Senior Citizen" Savings Account holder, they will receive free "At-par" cheque book,which empowers to en-cash your cheques as local cheques at any of the Axis Bank branch

center.

ATM Network

Senior Citizen Savings Account also entitles them to an International Debit Card with which they

can access their account anytime at allATMs - both, Visa enabled and their partner banks -

across the country. Withdrawals and deposits (money as well as cheques) are possible with DebitCard. And unlike most other ATMs, an Axis Bank ATM allows to withdraw upto Rs.40,000 per

day.

Anywhere Banking

One can transact through any of the branch offices all of which are interconnected for ones

banking convenience. Transactions like cash deposits, cash withdrawal, transfers and clearing

deposits can all be carried out wherever it happen to be.

Telebanking

Telebanking service provides them with instant access to their account. A wide range of services

such as Account Information, Balance enquiry, Transaction Details, Status of their Cheques

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(Available only during branch business hours) and Statement of Account on Fax can be availed

over the phone.

Internet Banking

The idea of "your Bank on your desktop" is now a reality with Internet Banking. Customers can

lookup the status of your savings account, request 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.

Free SMS Banking

SMS Banking enables customer to bank with them through theirr mobile phone irrespective ofwhere they are. Avail facilities like balance inquiry, debit or credit alerts, last three transaction

details and cheque status.

Additional Features at a Glance

Account Statement


Quarterly Interest

Every quarter, interest would be credited at the rate of 4% per annum in your account.



Free Senior Citizen ID card

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G. Pension Savings Account:-

Pension Savings Bank Account from Axis Bank is specifically, designed for Pensioner's

(Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry

keeping in mind the fact that a Pensioner's banking requirements are wholly different and

requires special consideration.

Benefits

Timely communication to the customer on receipt of the PPO

No delays in commencement of pension disbursals - The Bank is handling the

disbursement of Pension under a Centralised Pension Disbursement Module wherein the

Pensioner records are credited centrally through its Centralised Pension Payment Hub

(CCPH) at Mumbai.

Timely issue of Form- 16A for tax deducted at source in the immediately previous

financial year

Timely revisions based on changes in rates of Pension or Dearness Allowance, done

centrally from the CCPH

Features

Zero Balance Savings Account

Anywhere Banking - Available at all centers

Free Multi-city At Par Cheque Books


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

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Internet Banking - Available through "I Connect"

Tele-banking - Free, Available 24 hours at select centers

Mobile Banking Facility

Demat Account - Account opening charges waived

Safe Deposit Lockers - Preferential allotment

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2. Current Accounts

A Business Prime- It has three types of accounts

1) Business Advantage Current Account:-

It has a low monthly average balance requirement of only Rs 25000(Rs 12500 for Semi Urban/

Rural Branches) and is suitable for small firms and proprietors.

Features

Higher free Home Branch Cash

Deposit limit of 300000 per month

Unlimited free Home Branch Cash withdraw

Unlimited free fund transfer between Axis Banks Accounts

Free Non-cash transaction limit of Rs 30 lakh per month

50 cheque leaves and total of 50 transaction per month free

2) Business Select Current Account:-

The Business Select Current Account requires a Monthly Average Balance of Rs 50000

(Rs 25000 for Semi Urban/ Rural Branches). It offers a flexible cash deposit limit of up to 12

times the monthly average balance, at no extra charge. Suitable for seasonal business and

business spread over multiple locations.

Features

Cash Deposits of up to Rs 6 lakh at no charges

Flexibility to increase cash deposits of up to 12 times monthly average balance at noextra charge

Unlimited free fund transfer between Axis Bank Accounts

Free Non-cash transaction limit of Rs 60 lakh per month

100 cheque leaves and total of 100 transactions per month free

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3)Business Classic Current Account:-

With a Monthly Average Balance requirement of Rs 1 lakh (Rs 50000 for Semi Urban/ Rural

Branches) a Business Select Account is suited for small medium and micro enterprises with

limited cash flows.

Features

Free Home Branch Cash Deposit of up to Rs 12 lakh per month.

Unlimited free Home Branch Cash withdrawal

Unlimited free funds transfer between Axis Bank Accounts

Free Non-cash transaction limit of Rs 1.2 crore per month

200 cheque leaves and total of 200 transaction per month free

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B. Business Priority- The business priority account has 2 types of accounts with specialised

features and services.

1) Business Privilege Current Account:-

Business privilege Current Account with a Monthly Average Balance requirement of only Rs 5

lakh (Rs 2.5 lakh at Semi urban/ Rural Branches) comes with lots of features suited for small and

medium business enterprises.

Features

Free Home Branch Cash Deposit of up to Rs 60 lakh per month

Free Non-Home Branch Cash Deposit of up to Rs 12.50 lakh and cash withdrawal of upto Rs 25 lakh per month

Free Non-cash transaction limit of Rs 6 crore per month

500 cheque leaves and total of 500 transactions per month free

Free RTGS/NEFT facility

2)Channel One Current Account

The channel One Current Account offers premium personalised doorstep services whilst

requiring a Minimum Monthly Average balance of only Rs 10 lakh (Rs 5 lakh at Semi Urban/

Rural Branches).

Features

Relationship Manager Services

Free Cash deposit up to Rs 1.2 crore per month (in the Home Branch)

Free Doorstep Banking

Free RTGS/NEFT facility

Free cheque book up to 1000 leaves with cheque protection facility

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CBusiness Wealth

1) Club 50 Current Account:-

A unique and un-parallel product in the industry, this premium Current Account offers flexibilityto maintain a half yearly average balance of Rs 50 lakh (Rs 25 lakh at Semi Urban/ Rural

Branches) instead of maintaining a Monthly Average Balance. It is therefore suitable for

businesses that do not have regular monthly cash flows but still require premium banking

services.

Features

Relationship Manager Services Free Cash deposit up to Rs 2 crore per month (in the Home Branch)

Continuous cheque stationery with hologram

Free gold credit card

Value added benefits like free subscription to magazines, complimentary Priority

Banking Account and other lifestyle benefits and privileges

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D.Normal Current Account:-

Normal Current Account with a Monthly Average Balance requirement of only Rs 10000 (Rs

5000 for Semi Urban/ Rural Branches)

Features

Cash deposit of up to Rs 120000 per month

Unlimited free Home Branch Cash Withdrawal

Unlimited free fund transfer between Axis Bank Accounts

Free Non Cash transaction limit of Rs 120000 per month

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2.6Financials Over-View

Balance Sheet

Capital & Liabilities Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Total Share Capital 413.2 410.55 405.17 359.01 357.71

Equity Share Capital 413.2 410.55 405.17 359.01 357.71

Share Application

Money0 0 0.17 1.21 2.19

Preference Share

Capital0 0 0 0 0

Reserves 22,395.34 18,588.28 15,639.27 9,854.58 8,410.79

Revaluation Reserves 0 0 0 0 0

Net Worth 22,808.54 18,998.83 16,044.61 10,214.80 8,770.69

Deposits 220,104.30 189,237.80 141,300.22 117,374.11 87,626.22

Borrowings 34,071.67 26,267.88 17,169.55 10,185.48 5,624.04

Total Debt 254,175.97 215,505.68 158,469.77 127,559.59 93,250.26

Other Liabilities &

Provisions8,643.27 8,208.86 6,133.46 9,947.67 7,556.90

Total Liabilities 285,627.78 242,713.37 180,647.84 147,722.06 109,577.85

Assets

Cash & Balanceswith RBI

10,702.92 13,886.16 9,473.88 9,419.21 7,305.66

Balance with Banks,

Money at Call3,230.99 7,522.49 5,732.56 5,597.69 5,198.58

Advances 169,759.54 142,407.83 104,343.12 81,556.77 59,661.14

Investments 93,192.09 71,991.62 55,974.82 46,330.35 33,705.10

Gross Block 3,583.67 3,426.49 2,107.98 1,741.86 1,384.70

Accumulated

Depreciation1,395.12 1,176.03 942.79 726.45 590.33

Net Block 2,188.55 2,250.46 1,165.19 1,015.41 794.37

Capital Work In

Progress70.77 22.69 57.24 57.48 128.48

Other Assets 6,482.93 4,632.12 3,901.06 3,745.15 2,784.51

Total Assets 285,627.79 242,713.37 180,647.87 147,722.06 109,577.84

Contingent

Liabilities449,976.11 429,069.63 296,125.58 104,428.39 78,028.44

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Bills for collection 64,895.87 57,400.80 35,756.32 29,906.04 16,569.95

Book Value (Rs) 551.99 462.77 395.99 284.5 245.13

Income Statement

Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Incomes

Interest Earned 21,994.65 15,154.81 11,638.02 10,835.49 7,005.32

Other Income 5,420.22 4,632.13 3,945.78 2,896.88 1,750.59

Total Income 27,414.87 19,786.94 15,583.80 13,732.37 8,755.91

Expenditure

Interest expended 13,976.90 8,591.82 6,633.53 7,149.27 4,419.96Employee Cost 2,080.17 1,613.90 1,255.82 997.66 670.25

Selling and AdminExpenses

2,478.47 2,406.59 2,443.05 1,572.83 952.61

Depreciation 342.24 289.59 234.32 188.67 158.11

MiscellaneousExpenses

4,294.88 3,496.55 2,502.55 2,008.57 1,483.94

Preoperative Exp

Capitalised0 0 0 0 0

Operating Expenses 6,867.53 5,734.55 5,066.76 3,590.42 2,454.03

Provisions &

Contingencies2,328.23 2,072.08 1,368.98 1,177.31 810.88

Total Expenses 23,172.66 16,398.45 13,069.27 11,917.00 7,684.87

Net Profit4,242.21 3,388.49 2,514.53 1,815.36 1,071.03

Extraordinary Items 0 0 0 0 0

Profit brought

forward4,969.77 3,427.43 2,348.09 1,553.87 1,029.07

Total 9,211.98 6,815.92 4,862.62 3,369.23 2,100.10

Preference Dividend 0 0 0 0 0

Equity Dividend 770.07 670.36 567.45 420.52 251.64

Corporate Dividend

Tax0 0 0 0 0

Per Share Data

Earnings Per Share

(Rs)102.67 82.54 62.06 50.57 29.94

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Equity Dividend (%) 160 140 120 100 60

Book Value (Rs) 551.99 462.77 395.99 284.5 245.13

Appropriation

Transfer to

Statutory Reserves

1,112.46 836.95 867.43 600.62 294.6

Transfer to Other

Reserves0 338.84 0.31 0 -0.01

Proposed

Dividend/Transfer to

Govt

770.07 670.36 567.45 420.52 251.64

Balance c/f to

Balance Sheet7,329.45 4,969.77 3,427.43 2,348.09 1,553.87

Total 9,211.98 6,815.92 4,862.62 3,369.23 2,100.10

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Ratios Analysis

1. Current Ratio

Current Ratio Mar '12 Mar '11 Mar '10 Mar '09 Mar '08CA/CL 0.03 0.02 0.03 0.03 0.03

Interpretation

Compared to last year there is again improvement in companys liquidation . As it again came as

same as in that of year 2010, 2009 and 2008 we can say that firm is maintaining its policy.

2. Quick Ratio

Quick Ratio Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Liquid Assets/

Liquid Liabilities21.63 19.6 19.19 9.52 9.23

Interpretation

As the quick ration increases over a period of time firms is more likely to meet its short-term

obligations. The liabilities are at lesser risk and even investors stake is in good hold as company

is able to make payments.

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3. Total Asset Turnover Ratio

Total Asset

Turn-over Ratio Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Sales/ Total Asset0.1 0.09 0.09 0.11 0.1

Interpretation

A higher total asset turnover ratio is more favourable than a lower one. As we can see from the

table that companys manager are using assets efficiently in order to generate revenue. Though in

last year it increased but compared to 2008-09 it is still less due to a drastic change in policies of

R.B.I.

4. Dividend Pay-out Ratio

Dividend Pay-out

Ratio Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Dividend/ Earnings16.79 18.22 20.64 20.98 20.47

Interpretation

As compared to year 2010-2011 last years dividend is less. The reason behind is the inflation rate

was on continuous hike and the depression that slowly increasing in European countries. The

year of 2008-09 was the most luckiest both for bank and its invstors.

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2.7 Competitors

The major competitor of Axis bank is HDFC bank and ICICI bank in private sector. Though

nationalized bank and co-operative bank also there but its not proper to compare their financials

as it is funded by R.B.I up to greater extent. Their service level is also not high as that of private

bank and nor they are costly.

Comparative Table showing brief of income statement of Competitors of Axis bank

Income

Statement Hdfc Bank Axis Bank ICICI BANK HDFC/Axis bank ICICI/Axis bank

Net Sales Rs M 276,056 219,949 379,949 125.50% 57.90%

Other income Rs M 54,524 54,872 286,634 99.40% 19.10%

Total revenues Rs M 330,580 274,821 666,583 120.30% 41.20%

Gross profit Rs M 260,845 208,534 365,884 125.10% 57.00%

Depreciation Rs M 88,071 60,999 295,520 144.40% 20.60%

Interest Rs M 151,061 139,691 250,132 108.10% 55.80%

Profit before

tax

Rs M76,237 62,716 106,866 121.60% 58.70%

Minority

Interest

Rs M-300 0 -2,947 - 0.00%

Prior Period

Items

Rs M0 0 0 - -

Extraordinary

Inc (Exp)

Rs M0 0 0 - -

Tax Rs M 23,466 20,518 27,490 114.40% 74.60%

Profit after tax Rs M 52,471 42,198 76,429 124.30% 55.20%

Gross profit

margin

%94.5 94.8 96.3 99.70% 98.50%

Effective tax

rate

%30.8 32.7 25.7 94.10% 127.20%

Net profit

margin

%19 19.2 20.1 99.10% 95.40%

Table shows that HDFC and Axis bank are one of the close competitors but still large share iswith ICICI bank. Though ICICI and HDFC are competitors the share price in 2011 was of Axis

bank is higher than that of its competitors. The EPS is also as high as 74.5 rs while that of ICICI

bank is 54.1 and of HDFC is just 15.9 rs respectively.

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Theoretical Frame work

Economic literature pays a great deal of attention to the performance of banks, expressed in

terms of competition, concentration, efficiency, productivity and profitability. This research

provides an all-embracing framework for the various existing theories in this area and illustrates

these theories with practical applications.

The research is carried on to know the customer preference regarding the current account and

saving account products of various banks and to check the level of satisfaction they have and by

combining them to know their awareness level. Evaluating a broad field of research, the research

describes a market share of bank and demonstrates how several widely-used models can be fitted

into this framework. The results include a set of recommendations for a future research agenda

also.

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4.1Research Plan

4.1.1. Research Outline

The study has been carried out for comparison of current and saving account products of Axis

bank with peer banks. The customer segment chosen for this study is income group of all class

along with aged people.

4.1.2. Research Objective

Primary Objective:

To thoroughly study the products & services of Axis Bank.

To compare the banking products and services offered by Axis Bank and otherNationalized and Co-operative Bank.

To study the customers expectations, behaviour, responses & preferences for varioussaving accounts and Current account of Axis Bank.

To study the marketing strategies adopted by Axis Bank to maintain & increase its

market share & to retain its customers.

Secondary Objective:

To study banking operations.

To get the knowledge about marketing strategies of bank.

4.1.3. Research Design

4.1.3.1 Data sources

Primary data sources:

Employees, aged person men and women from all class of society are interviewed personally and

their preference is recorded on basis of questionnaire.

Secondary data sources:

Articles on internet, annual reports and guidelines published by R.B.I

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4.1.3.2 Research Approaches

The research was conducted through getting responses from the chosen sample population units

by administering questionnaires. Along with the questionnaires, most of the respondents were

also interviewed.

4.1.3.3 Research Instrument

The instrument used was Questionnaire. The questionnaire had three major parts, one about

current and savings account, the second part is about preference for banks, especially Axis, SBI

and co-op banks while the third part dealt with questions on perception of individual towards the

services provided by their respective banks.

4.2Sampling size-120 questionnaires

4.1.3.5 Sampling Frame- Surat

4.1.3.6 Sampling method

The sample was selected through convenient sampling by randomly surveying the respondents.

4.1.4. Research Process:

Origin and formulation of research problem

Formulation of research design

Selection of sources of data

Decision of data collection techniques

Sampling decision

Field work to collect data

Analysis of data

Preparation of research report

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4.1.5 Data Analysis

The tools used for analysis and classification of data are hypothesis calculated by means of chi0-

square and presented with the help of bar, column and pie charts. Data analysis is also done

through ranking and rating scales.

4.1.6Duration of the Study:

Duration of the study is 8 weeks.

4.1.7Limitations

Research is only done in Surat city.

Respondents are biased toward their current bank.

Time is 8 weeks, so much of economic fluctuations are not seen.

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5.1 Analysis

1. Which type of account you have?

A/c Respondents PercentageSavings 53 44.16

Current 45 37.5

Salary 19 15.83

HUF 3 2.5

Interpretation

Out of 120 respondents the majority of respondents were of saving account and current account.

Even in saving and current account the major share of bank is Axis bank it holds 23 saving

account and 24 current accounts. HDFC is giving tough competition to Axis bank but Axis bank

is still able to uphold its share from its competitors. While in salary account the major share is of

State bank of India it holds 16 out of 19 accounts. This is due to its minimal charges along with

the image of nationalized associated with it. HUF-Hindu Undivided Family account is a special

type of account where information of all member is taken along with their PAN card and is

handled by only 1 person i.e. karta. It is less prevalent due to lengthy paper work and is not in

existent also in many banks.

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2. How often do you visit the branch?

Visit Respondents Percentage

Daily 9 7.5

Weekly 34 28.33Fortnightly 29 24.17

Monthly 48 40

Interpretation

Out of 120 customers interviewed the majority of customer visits branch monthly. Even though

number of branches today is located near home/office place the transaction is so effective that it

can be done without coming to branch. Monthly visit to branch is mostly due to entry in pass-

book or for statement if it is not reachable within the time period given by bank.

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3. May we know your most frequent point of interaction with bank?

Interaction

Respondents

out of 120 Percentage

Visit Branch 44 36.67

ATM 102 85

Phone Banking 76 63.33

Drop-Box 88 73.33

Internet Banking 91 75.83

Mobile Banking 68 56.67

Interpretation

As a most frequent point of interaction customer give lesser preference to visiting of branch and

give greater importance to e-banking i.e. internet banking. On survey we analysed that out of 40

customers of Axis bank only few said that he has to come frequently to bank. While the case is

opposite in co-operative banks. Most of them said their frequent point of interaction is by visiting

branch. As the net banking facility is not so well in nationalized bank i.e. State bank of India

HDFC and Axis bank has greater share in it and thats the reason where nationalized banks are

lacking in providing service as well as safety in terms of security. Drop box, phone banking and

mobile banking are slowly adopted by co-operative bank but Axis bank is the best service

provider in it. Customer gets minute to minute information in seconds and it has also developed

its app.

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4. Have you started e-banking or Non branch banking?

YesInternet banking 29

Mobile banking 18No Not Started 73

Interpretation

Due to insecurity from cyber-crimes customers of Surat still prefer branch banking,out of 120

only 47 customers give preference to non-branch banking. And of that 47 also only 29 are in

favour of e-banking while others are in favour of mobile banking. The customers who favour this

are the undoubtedly ones the customers of private bank. Nationalized bank still encounters

problems with their servers and co-operative bank are not able to afford it. Of 73 customers who

have not yet started E-banking most of them belongs to co-operative bank.

5. Awareness about ATM and Internet Transaction

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Respondentsout of 120 Percentage

ATM

Cheque book request 37 30.83

Fund Transfer 98 81.67

Mobile Recharge 78 65

Internet

Cheque book request 78 65

Fund Transfer 88 73.33

Fixed deposit application 61 50.83

Bill payment/purchases 97 80.83

Demand draft request 19 15.83

Interpretation

The bar diagram shows the awareness level of customer who have ever used the services either

from internet or from ATM machines. The services from ATM are few and normally customer

use ATM only for withdrawing cash and some time for recharge of mobile. The reason for not

using ATM machines mostly for fund transferring is that customers are not aware that their ATM

machine can perform other services too. Internet services are widely used for online fund transfer

and also for payment of purchases made. According to one survey online shopping is the best

ideal mode to save your pocket expenses as you get variety of things on just easy go click.

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6. May we know your major reasons for bank branch visits?

Reason

Respondents

out of 120 Percentage

DD/PO 89 74.17

Funds Transfer(Rtgs/Neft) 109 90.83

Statement 89 74.167

Cheque Deposit 59 49.17

FD opening and renewal 78 65

Cash withdraw/ Deposit 63 52.5

A/c opening 65 54.17

Interpretation

The majority of the customers are coming for branch visit is due to Fund transfer i.e. RTGS and

NEFT. The percentage is as high as 90 which is quite dominant. Due to urgency of funds private

bank like Axis and HDFC RTGS is much speedily done within minutes. Though compared to

Axis HDFCS RTGS processing speed is high but the difference is not much and is not much

effective.

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7. May we know your reason for bank branch selection?

Reason Respondents Percentage

Near to home/office 81 67.5

Convenient to do transaction 87 72.5

Services of bank is attractive 82 68.33

Attractive brand name 93 77.5

The following table showing bank wise reason customer preferred for bank branch selection.

Reason AXIS HDFC SBI CO-OP

Near to home/office 12 16 23 30

Convenient to do transaction 14 13 28 32

Services of bank is attractive 17 17 31 17

Attractive brand name 19 17 38 19

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Interpretation

The various reasons for selecting bank branch are showed in table. The customer who opt for

brand name are mostly of nationalized bank where conveniency to do transaction are rare. One

who goes for services are mostly of private banks. As here we can see that out of 40 respondents

of private bank Axis bank is leading in terms of services as well as brand name. Though number

of branches is less than HDFC its on expansion stage and will soon come out of it with strong

customer base.

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8. Ratings on a scale of 3 according to perception people having for banks.

AXIS HDFC SBI COPERATIVE

Attributes / Ratings 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4

Customer Care 2 5 6 7 6 4 5 5 13 10 16 1 20 6 4 10

Bank Charges 8 6 4 2 4 2 9 5 5 7 20 8 9 8 15 8

Behaviour of

staff/personalized

attention 4 1 8 7 3 7 5 5 13 16 9 2 15

1

0 9 6

Working hour 3 4 7 6 2 3 10 5 8 19 8 5 16 8 10 6

Location 2 5 9 4 1 3 10 6 5 7 18 10 19 9 7 5

Turnaround time 3 2 7 8 3 1 10 6 5 7 15 13 13

1

5 9 3

Grievances/querieshandling 4 5 7 4 1 3 6

10 9 13 10 8 3

20 7 10

Interpretation

The customer of Axis bank are the most happiest in terms of attributes. Though the cost is much

high but customers are ready to pay for the services if they are beneficial. On the other hand SBI

customer are happy in cost as its less but services are worst even more worse than co-operative

banks

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5.2 Hypothesis

A.) H0: There Is No Association Between Income and Choice of Account.

H1: There Is Association Between Income and Choice of Account.

B.) H0: There Is No Association Between Occupation and Choice of Account.

H1: There Is No Association Between Occupation and Choice of Account.

C) H0: There Is NoRelation Between Banks and Attribute.

H1: There Is Relation Between Banks and Attribute.

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Table 1 Association of Income with Choice of Account

Income

less than 1lac 1lac-3lac 3lac-5lac more than 5 lac Total

Choice of A/c

Saving a/c 21 15 11 6 53

Current A/c 7 10 12 16 45

Salary A/c 9 5 3 2 19

Huf a/c 0 3 0 0 3

Total37 33 26 24 120

Chi-Value 24.21198172

DF 9

critical value 16.92

HO is Rejected

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At 5% level of significance, and degree of freedom is 9, the critical value is 24.21198172. Chi

square Values are more than the Critical Value, hence null hypothesis is rejected. This means

there is association of income with choice of Account.

0

5

10

15

20

25

Choice of

A/c

Saving a/c Current A/c Salary A/c Huf a/c

1. Association of Income with

Choice of Account income less

than 1lac


Choice of Account income 1lac-

3lac


Choice of Account income 3lac-

5lac


Choice of Account income morethan 5 lac

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Table 2 Association of Occupation with Choice of Account

Occupation

Business-man Profession Salaried Person Others Total

Choice of A/c

Saving a/c 14 13 12 14 53

Current A/c 28 13 3 1 45

Salary A/c 0 11 4 4 19

HUF a/c 0 0 0 3 3

Total42 37 19 22 120

Chi-Value 47.5043

DF 9

critical value 16.92

Ho is rejected

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At 5% level of significance, and degree of freedom is 9, the critical value is 47.5043 . Chi square

Values are more than the Critical Value, hence null hypothesis is rejected. This means there is

association of Occupation with Choice of Account.

0

5

10

15

20

25

30

Choice of

A/c

Saving a/c Current

A/c

Salary A/c HUF a/c

2. Association of Occupation with

Choice of Account Occuption

Business-man



Profession



Salaried Person

2. Association of Occupation withChoice of Account Occuption Ohers

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5.3 Swot analysis

STENGTHS

Brand name Support of various promoters High level of services Knowledge of Indian market

WEAKNESS

Market capitalization is very low

Not been fully able to position itself correctly

OPPORTUNITIES

Growing Indian banking sectors People are becoming more service oriented In the global market Dissatisfied customers

THREATS

From the various competitors Foreign banks Government banks Future market trends Advent of MNC banks

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5.4 Findings

The research conducted shows that the results are more in favour of private banks. It suggested

that a large market share has been captured by Axis Bank and HDFC Bank. Out of two Axis

bank is enjoying the maximum market share. The reason is that some of the services like

withdrawing fund at any moment, not giving but maintaining average balance in account are the

reasons for that.

Most of the people said that they visit the branch half-monthly or monthly. The customers who

visit the branch daily are mostly that customer who doesnt have remote services of bank and

they are co-operative banks. The customers most frequent point of interaction is ATM.

Customer are less aware about e-banking but Axis bank is doing good campaigning by making

its customer aware about net banking and also its benefits and by providing security levels in net

banking its customers are satisfied.

Attribute ratings are also among all Axis bank is ruling over its competitors. Last 3years reportshowed that deposits in Axis bank increased by more than 10% which is much good rate inspite

of many changes in policies of R.B.I.

The staffs of the Axis bank is the best in handling its customers with great dignity and courtesy;

where at the same time that of State Bank of India are on bad side. Though customers are using

ATM they are not much aware of its services. They mostly use it for withdrawing cash.

The reason for coming to branch is mostly for Fund Transfer and DD/PO. Customer like the

pick-up services of cheques by Axis bank. Axis bank is much powerful in creating its brand

name as its marketing tool. By opening branches in the remote places in Surat city many

customer are able to cater its services and has started increasing market share.

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6.1 Conclusion

Marketing plays a vital role in the growth and development of the country the development of the

marketing has always kept pace with the economic growth of the country. Now the modern marketing

faces the high competition. The consumer needs are satisfied only when information are collected from

the consumers. Our modern marketing is a consumer oriented marketing. It begins with consumer and

ends with consumer.

The findings of the study reveals that most of the customers preferred banking with private banks and that

to with HDFC and Axis bank. Bank account is necessity and net banking is day by day getting more

preferred, hence those who will provide the best service with least cost will surely going to rule the

market.

Axis banks promotional campaign with its brand ambassador Amir Khan has also helped in

getting customer attraction and as Axis bank has tied up with various universitys for their

banking it shows that it is the best service provider in it. Though the customers of Kissan account

were not satisfied with bank they are positively handled.

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6.2 Recommendations

On the basis of conclusion and recommendations it is recommended that Axis bank should adopt

marketing tools in order to get more customers attraction. It is not at all ethical to change the

average balance maintaining rules without informing the customers about that and charging them

as high as 750rs. Head branch should note that Kissan account holder should be either contacted

on phone or face to face and should be explained the changes made in account. Bank lost its

many customers due to this 1 mistake. The bank should make following strategies for

overcoming bottlenecks it facing from customer and for increasing market share.

1 Plastic card

As many customer are unaware about using ATM card a detailed manual of operating in multiple

language should be given. The issuance fee and maintaining fee from 2nd

year should be lessened

as its high. Even its quality should be improved. The number of transaction in normal ATM card

should be increased to more than 10 minimum from other than Axis bank.

2 Zero Balance Account

As a part of promotional campaign bank should provide this facility at stipulated time period

such as 1 month or some weeks in a year. This will increase the goodwill of the bank and also

help in word of mouth advertisements.

3. New Account Kit

As a part of companys policy of Axis bank cheque book of new account will be sent by head

branch from Bombay. It takes approx. 5-6 days in arrival. It is much time if bank is able toshorten it to 2 days by establishing regional network in every state it will help its customer to

start transact speedily and is also helpful in competition.

4. Acknowledging Customers

There is no 1 in world who doesnt like appreciation. Every season customers should be greeted

on occasions as well as special festive offers should be made aware through post. Remember a

happy customer will call 3 more customer but dissatisfied customer will take your 10 customer

like what happen Kissan Account.

5. Employees development.

They are the real asset of the company. Infect Axis bank is known for its employee strength

which is low yet the best resources in Indian banking. But inside picture is slightly different.

They are much pressurized. So in order to overcome this various small trips in a month to be

given to them and also their family get-to-gather should be made as they least get time in routine.

The above strategies are as per my research base.

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Bibliography

1. http://economictimes.indiatimes.com/axis-bank-

ltd/infocompanyhistory/companyid-9175.cms

2. http://www.indiainfoline.com/Markets/Company/Background/Company-

Profile/Axis-Bank-Ltd/532215

3. http://www.equitymaster.com/research-it/compare/comp_sectr.asp

4. http://www.equitymaster.com/research-

it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-

BANK-LIMITED-ICICI-BANK

5. http://smartinvestor.business-standard.com/BSCMS/PDF/religare-

hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdf
http://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cmshttp://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cmshttp://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cmshttp://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cmshttp://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cmshttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://www.equitymaster.com/research-it/compare/comp_sectr.asphttp://www.equitymaster.com/research-it/compare/comp_sectr.asphttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://smartinvestor.business-standard.com/BSCMS/PDF/religare-hdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdfhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXIS-BANK-LIMITED-ICICI-BANKhttp://www.equitymaster.com/research-it/compare/comp_sectr.asphttp://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://www.indiainfoline.com/Markets/Company/Background/Company-Profile/Axis-Bank-Ltd/532215http://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cmshttp://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid-9175.cms

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ANNEXURE

Questionnaire

Dear Sir/Madam;

Greetings!!!

As students of Auro University and as a requirement of practical training for our summer internship, may we request your good selves topart with your experience on Current Account and Saving Account products of banks.

We confirm that this survey is just for our summer internship and all your provided information shall be strictly kept confidential.Kindlyhelp and advice

Hardik Shah/Riktesh Gupta

Name: __________________________

Contact No: _____________________

Type of account: _________________

1. Can we know your age group? 2. May we know your occupation?

o 20-30 years

o 31-40 years

o 41-50 years

o 51 & above

3. May we know your annual income? 4. How often do you visit the branch?

o Less than 1 lac

o 1-3 laco 3lac-5 lac

o More than 5 lac

5. May we know your most frequentpoint of interaction with the bank?

o Visit Brancho ATMo Phone Bankingo Drop Boxo Internet Banking

o Mobile Banking

o Businessmano Professiono Salaried persono Others please specify_______

o Dailyo Weeklyo Fortnightlyo Monthly

Address:_________________________________

Account held with bank:_____________________

6. Have you started e-

banking/Nonbranch banking?

o Yes- Internet Banking

-Mobile Banking

o No

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7. Awareness about Internet and ATM transaction, Have you ever applied for services from:

ATM INTERNET BANKING

Cheque book requisition Cheque book requisition

Fund transfer Fund transfer

Mobile Recharge Fixed deposit application

Bill Payment/ Purchases

Demand Draft request

8. May we know your major reasons for branch visit?

o DD/PO

o Funds Transfer(Rtgs/Neft)o Statement

o Cheque Deposit

o FD opening and renewal

o Cash withdraw/ Deposit

o A/c opening

9. May we know the reasons for your bank branch selection?

o Near toHome

o Convenient To Do Transactions

o

Brand Name of the banko Services of the Bank is attractive

10. Please rate the following banks on the scale of 3 where 1is the least and 3 is the most according to yourperception you are having for reputation of the banks.

Private Bank Nationalized Bank Co-operative Bank
http://www.projects4mba.com/questionnaire-to-analyze-customers-view-towards-current-and-saving-account-of-idbi-bank/250/http://www.projects4mba.com/questionnaire-to-analyze-customers-view-towards-current-and-saving-account-of-idbi-bank/250/http://www.projects4mba.com/questionnaire-to-analyze-customers-view-towards-current-and-saving-account-of-idbi-bank/250/http://www.projects4mba.com/questionnaire-to-analyze-customers-view-towards-current-and-saving-account-of-idbi-bank/250/

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11. Please rate the following attributes on the basis of your perception about your bank out of 4, where 1 isthe least/disappointing and 4 is the most/excellent

S.NO ATTRIBUTES

1.Variety of Saving bank account

/Current account

2. Customer care

3. Bank Charges

4.Behaviour of the staff/ personalized

attention

5. Working Hours

6. Location

7. Turnaround time

8. Grievance/queries handling

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Documents

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