CHAPTER-1

INTRODUCTION TO THE BANKING INDUSTRY

A SNAPSHOT OF THE BANKING INDUSTRY:

The Reserve Bank of India (RBI), as the central bank of the

country, closely monitors developments in the whole financial

sector.

The banking sector is dominated by Scheduled Commercial

Banks (SCBs). As at end-March 2002, there were 296 Commercial

banks operating in India. This included 27 Public Sector Banks

(PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also,

there were 67 scheduled co-operative banks consisting of 51

scheduled urban co-operative banks and 16 scheduled state co-

operative banks.

Scheduled commercial banks touched, on the deposit front, a growth of 14%

as against 18% registered in the previous year. And on advances, the growth was

14.5% against 17.3% of the earlier year.

State Bank of India is still the largest bank in India with the market share of

20% ICICI and its two subsidiaries merged with ICICI Bank, leading creating the

second largest bank in India with a balance sheet size of Rs. 1040bn.

Higher provisioning norms, tighter asset classification norms, dispensing with

the concept of ‘past due’ for recognition of NPAs, lowering of ceiling on exposure to

a single borrower and group exposure etc., are among the measures in order to

improve the banking sector.

A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to

strengthen the ability of banks to absorb losses and the ratio has subsequently been

raised from 8% to 9%. It is proposed to hike the CAR to 12% by 2004 based on the

Basle Committee recommendations.

Retail Banking is the new mantra in the banking sector. The home loans alone

account for nearly two-third of the total retail portfolio of the bank. According to one

estimate, the retail segment is expected to grow at 30-40% in the coming years.

Net banking, phone banking, mobile banking, ATMs and bill payments are the

new buzz words that banks are using to lure customers.

With a view to provide an institutional mechanism for sharing of information on

borrowers / potential borrowers by banks and Financial Institutions, the Credit

Information Bureau (India) Ltd. (CIBIL) was set up in August 2000. The Bureau

provides a framework for collecting, processing and sharing credit information on

borrowers of credit institutions. SBI and AXIS are the promoters of the CIBIL.

The RBI is now planning to transfer of its stakes in the SBI, NHB and

National bank for Agricultural and Rural Development to the private players. Also,

the Government has sought to lower its holding in PSBs to a minimum of 33% of total

capital by allowing them to raise capital from the market.

Banks are free to acquire shares, convertible debentures of corporate and units

of equity-oriented mutual funds, subject to a ceiling of 5% of the total outstanding

advances (including commercial paper) as on March 31 of the previous year.

The finance ministry spelt out structure of the government-sponsored ARC

called the Asset Reconstruction Company (India) Limited (ARCIL), this pilot project

of the ministry would pave way for smoother functioning of the credit market in the

country. The government will hold 49% stake and private players will hold the rest

51%- the majority being held by ICICI Bank (24.5%).

REFORMS IN THE BANKING SECTOR:

The first phase of financial reforms resulted in the nationalization of 14 major

banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn

resulted in a significant growth in the geographical coverage of banks. Every bank has

to earmark a minimum percentage of their loan portfolio to sectors identified as

“priority sectors”. The manufacturing sector also grew during the 1970s in protected

environs and the banking sector was a critical source. The next wave of reforms saw

the nationalization of 6 more commercial banks in 1980. Since then the number

scheduled commercial banks increased four-fold and the number of banks branches

increased eight-fold.

After the second phase of financial sector reforms and liberalization of the

sector in the early nineties, the Public Sector Banks (PSB) s found it extremely

difficult to complete with the new private sector banks and the foreign banks. The

new private sector banks first made their appearance after the guidelines permitting

them were issued in January 1993. Eight new private sector banks are presently in

operation. These banks due to their late start have access to state-of-the-art

technology, which in turn helps them to save on manpower costs and provide better

services.During the year 2000, the State Bank of India (SBI) and its 7 associates

accounted for a 25% share in deposits and 28.1% share in credit. The 20 nationalized

banks accounted for 53.5% of the deposits and 47.5% of credit during the same

period. The share of foreign banks ( numbering 42 ), regional rural banks and other

scheduled commercial banks accounted for 5.7%, 3.9% and 12.2% respectively in

deposits and 8.41%, 3.14% and 12.85% respectively in credit during the year 2000.

CLASSIFICATION OF BANKS:

The Indian banking industry, which is governed by the Banking Regulation

Act of India, 1949 can be broadly classified into two major categories, non-scheduled

banks and scheduled banks. Scheduled banks comprise commercial banks and the co-

operative banks. In terms of ownership, commercial banks can be further grouped

into nationalized banks, the State Bank of India and its group banks, regional rural

banks and private sector banks (the old / new domestic and foreign). These banks

have over 67,000 branches spread across the country. The Indian banking industry is a

mix of the public sector, private sector and foreign banks. The private sector banks are

again spilt into old banks and new banks.

Banking System in IndiaReserve bank of India (Controlling Authority)

Development Financial institutions Banks

IFCI IDBI ICICI NABARD NHB IRBI EXIM Bank ISIDBI

Commercial Regional Rural Land Development Co-operative Banks Banks Banks Banks

Public Sector Banks Private Sector Banks

SBI Groups Nationalized Banks Indian Banks Foreign Banks

CURRENT BANKING SCENARIO OF INDIA:

As per the Advance Estimates of GDP for 2008-09 released by the Central

Statistical Organization on 9, February, 2009, the growth of GDP at factor cost (at

constant 99-2000 prices) is estimated to grow at 7.1% during the year. The growth of

GDP during 2007-08 (Quick estimates) was 9.0%.

The International Monetary Fund (IMF) has forecast that India’s gross

domestic product (GDP) growth will slow dramatically to 6.25% in the fiscal year to

March, and to 5.25% in the following year. This is well below the 9% growth in the

year to March 2008 and even lower than the government’s prediction of 7.1% growth

in 2008-09.

The average growth in the first three quarters of the fiscal year was 6.9%. This

effectively means IMF expects the economy to grow only 4.4% in the last quarter.

As per the above estimates, the growth rate for Agriculture, Industry and

Services is estimated to be 2.6%, 4.8% and 9.6% respectively in 2008-09. In the quick

estimates for 2007-08, the corresponding growth rates for these three sectors were 4.9,

8.1 and 10.9% respectively.

After growing at 5.0% in 2006 and 4.9% in 2007, IMF estimates global GDP

growth to decelerate to 3.7% in 2008 in the wake of the current financial crisis. The

financial market turbulence in developed economies following the US sub-prime

mortgage crisis has reduced financial leverage, lowered credit availability and

negative wealth effects have emerged as risks to consumption and growth in advanced

economies, especially in the US. Continuing inflationary pressures from food and

commodity prices as well as high and volatile crude oil prices are other risks being

faced by the global economy.

India continued to be one of the fastest growing economies of the world.

During 2007-08, the Indian economy grew at a robust pace for the fifth consecutive

year. Real GDP growth, estimated at 8.7% in 2007-08, is in tune with the average

annual GDP growth of 8.7% in the five year period 2003-04 to 2007-08. Agriculture

and allied activities are estimated to grow by 2.6% in 2007-08, which is in line with

the average growth of 2.6% per annum during 2000- 01 to 2007-08. Food grains

production touched a record high in FY08, with total food grains production placed at

227.3 million tones, surpassing the target of 221.5 million tones and recording an

increase of 4.6% over the previous year. Industrial growth at 8.6% during 2007-08 has

moderated somewhat against 10.6% in the previous year.

The services sector maintained its double-digit growth at 10.6% during 2007-

08, higher than the long term average of 8.9% (2000-01 to 2007-08). Within services,

transport and communications and financial services recorded double-digit growth for

the last two years and are expected to maintain the growth momentum. Trade and

hotels showed higher growth of 12.1% in 2007-08 against 11.8% growth in 2006-07.

Another positive feature underpinning growth is the sharp rise in the rate of savings

and investment in recent years, which rose to 34.8% and 35.9% respectively in 2006-

07.

Towards the close of the fiscal year, higher inflation rate was noticed due to

rise in global prices of food, metals and crude oil. Inflation based on WPI declined

from 6.4% at the beginning of the fiscal year to a low of 3.1% by mid-October 2007,

partly reflecting moderation in the prices of some primary food articles and

manufactured products.

After hovering around 3% during November 2007, inflation began to edge up

from early December 2007 to touch 7.4% by 29 March 2008, mainly reflecting

hardening in prices of primary articles such as fruits and vegetables, oilseeds, raw

cotton and iron ore, as well as fuel and manufactured products such as edible oil/oil

cakes and basic metals, partly due to international commodity price pressures.

However, fiscal and monetary measures are being taken to contain inflation and

maintain high growth.

Need for a revolutionary approach towards privatization Nationalized banks

such as State Bank Of India (SBI), though pygmies in the international banking

market, are banking behemoths of India. They have branches spread over the entire

length and breadth of the country. SBI in particular is all-pervasive enjoying a

sprawling network of 9000 branches. Its blue and white shingle is visible to the

smallest hamlet. It has assets understood to be worth about Rs2,22,500 crore ($52

billion). SBI has a very conservative approach to accounting particularly when it

comes to declaration of its assets. Probably modesty does not permit the bank to

exhibit its strengths. In particular, it has real estate properties some of which are

heritage sites all over the country. These are estimated to collectively command a

value of Rs.30,000 crores. This, it is believed, does not get reflected in its book of

accounts.

SBI enjoys a monopoly of the government business. The Reserve Bank of

India owns about 60% of the bank’s equity. To its credit, SBI mobilized $4.2 billion

through the Resurgent India Bonds (RIB) issue in just 3 months down the post-

Pokhran sanction period. This was the difficult time when the international credit

rating agencies had downgraded the country. SBI, time and again, does a rescue act

in the forex market to contain any volatility of the rupee.

SBI was formed under the SBI Act in 1955 with the takeover of Imperial

Bank and amalgamation of Bank of Bengal, Bank of Bombay, and Bank of Madras.

The government mopped up around 93% of the equity, leaving 7% to private

ownership. By this act the equity of RBI cannot be diluted below 55%. SBI enjoys a

pool of best managerial talent, assured government business, a countrywide network

of branches and strong brand credibility in the Indian market.

But, that numero uno position is sliding with the entry of sleeker private and

foreign banks into the Indian Banking scene. The bank is continuously restructuring

itself and for this, they even hire the services of foreign consultants but the pace has

to be hastened.

With the government offering an assured business, nationalized banks and

State Bank of India in particular should not take a complacent view. They should

evolve service-intensive products and make their employees customer-friendly. With

competition from private and foreign banks knocking at the door, the banks should

realize, size is no more an insurance against the onslaught of competition from sleek

private and foreign banks. A revolutionary approach to privatize ownership is the

need of the hour.

Virtual Banking:

SBI has yet to computerize its operations and network all its branches. The

computers currently available serve only to relieve the burden of the clerical staff of

maintaining manual ledgers and not to penetrate into areas of customer service.

ATMs, Anytime-Anywhere, round the clock and telephone banking is still a far cry.

These computers at the best remain only as desk ornaments. With the New Telecom

Policy (NTP) almost in place, telecom sector will soon be revolutionized. E-

commerce, telephone banking, consumer banking, Internet banking, insurance et al

are waiting just around the corner. At least in major metros, virtual banking will soon

take-over from the brick-mortar banks.

Privatization and Credit disbursement:

Talks about privatization of the bank’s ownership have been initiated but the

SBI act of 1955 does not permit RBI’s ownership to be diluted to below 55%. This

act is outdated and needs to be re-addressed. However, efforts have been initiated by

SBI to privatize its non – banking subsidiaries like SBI Caps, SBI Gilts, SBI Funds

Management, where SBI’s holding is about 85% of the equity. But the pace has to be

hastened so that investments thus released can migrate to more important areas like

development of new technologies and products in customer service and service

intensive areas. Privatization also helps to professionalize the banks’ day-to-day

operation, which will allow the management more freedom in decision making

during credit disbursement.

To aid privatization and effect a better price realization, the bank is

attempting to change – over its accounting and reporting procedures to comply with

US – GAAP norms. This is a prerequisite for trying out the ADR route, as it is

known that US market is by far the undisputed biggest market and can offer the best

price. At the moment, the SBI stock is undervalued at Rs.240 whereas experts expect

Rs.300 would be a more realistic value. Action on this front at blitzkrieg pace is the

need of the hour.

Manpower Retraining and not Retrenchment:

As a hangover of the past socialistic mindset, all the nationalized banks have

excess workforce. This is indeed a hot potato for the management of many

enterprises and is therefore being handled with kid gloves. In India, it is everyone’s

worry to look at business as a source of employment, while making money is

secondary. In this ocean of manpower, every institution does have its share of highly

skilled and talented manpower, which contribute to asset building. It is the semi

skilled manpower having outdated skills, which form the excess baggage. All banks

must invest in re-training the manpower so that they can migrate from the areas that

will be vacated by computerization. The level of Non-Performing-Assets (NPAs) is

still at very high levels and to start with, some of this excess manpower can cover

areas of debt recovery.

At the same time, one should also take note of the flight of talent from these

nationalized banks to newly set-up private and foreign banks. And, it is these new

banks’ top officials after migrating from the government banks are targeting at the

top corporate clients and thus poaching into the corporate business, which has been

the mainstay of the nationalized banks. This will soon become a problem of serious

proportion unless the banks initiate steps to stem the flow. It is difficult, to

exclusively address the problem of excess manpower by schemes such as voluntary

retrenchment scheme (VRS) because while attempting to remove dead wood, talent

also takes an exit. Many industries have faced this problem. Also it will be over

simplicity to state that the salaries should be raised because that will only start a

wage war. Instead, the banks should involve the services of international consultants

specialized in this field and take a holistic view of the problem. Retraining and

Rationalization of manpower commands higher priority over Retrenchment of

manpower.

New Products and New technologies:

Nationalized banks have generally been preoccupied with treasury business.

The new product areas that require greater penetration are personal banking, housing

finance, consumer durable finance, auto-finance, internet banking, insurance,

telephone banking et al. Development of these new areas call for heavy investments

and this cash - flow can only generated by privatization. In addition, surplus

manpower once retrained can be absorbed in the new ventures.

All nationalized banks and SBI in particular has the advantage of vast

network of branches and can therefore carry the new business to the remotest corner,

but to make this presence felt the banks have to move at blitzkrieg pace.

CAMEL: TOOL FOR MEASURING THE PERFORMANCE OF BANKS

An international bank-rating system where bank supervisory authorities rate

institutions according to six factors. The six factors are represented by the acronym

"CAMELS." The six factors examined are as follows:

C - Capital adequacy reflects the overall financial condition of a bank & also the ability of the management to meet the need for additional capital.

A - Asset quality To ascertain the component of non performing assets as a percentage of the total asset

M - Management quality To measure the efficiency of the management

E - Earnings To assess the quality of income generated by core activity

L - Liquidity to measure the ability of a bank to meet the demand from demand deposits in a particular year

On the Basis of CAMEL Rating Top Ten Banks in Performance

During 2008-2009

Public sector Banks Private sector Banks Foreign BanksBank of India Karur vysya bank Shinhan bank

Corporation Bank Yes bank Abu Dhabi commercial bankUnion Bank of India City Union Bank Mashreqbank P S C

Andhra bank Tamil Nadu Mercantile Bank Antwerp Diamond bank N VState bank of Patiala South Indian bank Bank of Tokyo-Mitsubishi

U F JBank of Baroda Federal Bank Calyon BankIndian Overseas Bank Jammu & Kashmir Bank Krung Thai Bank Public Co.State Bank of Hyderabad

Dhanalakshmi Bank State Bank of Mauritius

Punjab & Sind Bank Karnataka Bank Bank of America National Trust

Indian Bank Kotak Mahindra Bank Mizutto Corporate Bank

Banking Review-2009 NPAs rise for Private Banks, stable for PSBs

Gross NPAs movement of banks in Q1 has shown an interesting trend

Gross NPAs of all Private Banks that we have covered have seen a sequential

rise. However, asset quality of most PSBs remained stable, with flat to lower Gross

NPAs

NIMs of most banks saw a sequential decline

Decline was largely due to PLR cuts by banks towards the end of Q4FY08

Most banks have, however, raised their PLRs and deposit rates by 100-150bps in

June’08 and Q1FY09 NIMs should see a marginal improvement in Q2 on account of

PLR hikes However, as deposit re-pricing kicks in with a lag effect, NIMs may again

come under pressure.

Credit spreads saw a decline after a long time

After a long time, the sector saw a decline in credit spreads (Yield on advances

– Cost of deposits). Decline in credit spreads was largely due to inability of most

banks to raise PLR in Q1 even as interest rates were rising BOB, IOB, Corpbank and

BOI saw substantial fall in yields on credit book, resulting in compression of credit

spreads Canbank, PNB, Union Bank saw sequential improvement in credit spreads in

Q1

CASA saw a mixed trend

Among Public Sector Banks (PSBs), SBI, Canara and Union saw marginal

improvement in CASA on YoY basis Others like BOB, BOI, OBC saw a decline on

YoY basis Among private banks, AXIS bank lost out due to CBOP merger, ICICI

Bank saw improvement both on YoY and sequential basis

Overall credit growth was robust

Among PSBs BOI, BOB, SBI and IOB saw above 30% growth. Canbank,

Union and PNB were more moderate at 16-20%. Among Private banks, except for

ICICI, most showed above 40+% growth. Even for ICICI, consolidated book

(including overseas book) grew 20% YoY.

Credit growth has been very robust at 26% in Q1 against 24.6% last year

Banks which witnessed high credit growth

Axis, AXIS Bank and Yes Bank among private

BOB, BOI and SBI among PSBs

SBI showed a robust growth across all segments, except for mortgages

International credit grew 46% YoY

SME credit grew 23% YoY

Mid Corporate credit grew 31% YoY

Home Loans grew 17% YoY

Axis among the private banks and BoI amongst

PSBs continues to deliver high NII growth

Credit growth of ICICI, Canara, Union, PNB, OBC was lower than the averag

SWOT ANALYSIS : Banking Sector

Strength Weakness

Aggression towards development the

existing standards by banks. Strong

regulatory impact by central Bank to all

the banks. Presence of intellectual capital

Poor Technology infrastructure.

Ineffective risk measures. Presence of

more number of smaller banks that would

to face the change in implementation with

good quality.

likely to be Impacted adversely.

Opportunities Threats

Increasing Risk management Expertise.

Need significant Connection among,

business Credit & risk management and

Information Technology. Advancement

of technologies. Strong Asset Base would

help in bigger growth.

Inability to meet the additional Capital

Requirements. Loss of Capital to the

entire banking system due to merger and

acquisitions. Huge investment in

technology.

CHAPTER - 2

INTRODUCTION TO AXIS BANK AND STATE BANK OF INDIA

The Bank was incorporated on 3rd December1993 and Certificate of business on 14th

December. The Bank transacts banking business of all description. UTI Bank Ltd.

was promoted by Unit Trust of India, Life Insurance Corporation of India, General

Insurance Corporation of India and its four subsidiaries.- The bank was the first

private sector bank to get a license under the new guidelines issued by the RBI.

1997. The Bank obtained license to act as Depository Participant with NSDL and

applied for registration with SEBI to act as `Trustee to Debenture Holders'.

Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and

its four subsidiarie Rs1. croreseach. 1998. The Bank has 28 branches in urban and

semi urban areas as on 31st July. All the branches are fully computerised and

networked through VSAT. ATM services are available in 27 branches.

The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10

each at a premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for

sale of 2,00,00,000 No. of equity shares for cash at a price of Rs 21 per share. Out of

the public issue 2,20,000 shares were reserved for allotment on preferencial basis to

employees of UTI Bank. Balance of3,47,80,000shareswereofferedtothepublic.

The company offers ATM cards, using which account-holders can withdraw money

from any of the bank's ATMs across the country which are inter-connected by VSAT.

UTI Bank has launched a new retail product with operational flexibility for its

customers.

UTI Bank will sign a co-brand agreement with the market, leader, Citibank

NA for entering into the highly promising credit card business.

UTI Bank promoted by India's pioneer mutual fund Unit Trust of India along with

LIC, GIC and its four subsidiaries. 1999 UTI Bank and Citibank have launched an

international co-branded credit card. UTI Bank and Citibank have come together to

launch an international co-branded credit card under the MasterCard umbrella.

UTI Bank Ltd has inaugurated an off site ATM at Ashok Nagar here, taking the total

number of its off site ATMs to 13.m 2000. The Bank has announced the launch of

Tele-Depository Services for its depository clients. UTI Bank has launch of

`iConnect', its Internet banking Product. UTI Bank has signed a memorandum of

understanding with equitymaster.com for e-broking activities of the site.

Infinity.com financial Securities Ltd., an e-broking outfit is typing up with UTI Bank

for a banking interface.

Geojit Securities Ltd, the first company to start online trading services, has

signed a Mowith UTI Bank to enable investors to buy\sell demat stocks through the

company's website. Indiabulls has signed a memorandum of understanding with UTI

Bank. UTI Bank has entered into an agreement with Stock Holding Corporation of

India for providing loans against shares to SCHCIL's customers and funding investors

in public and rights issues. ICRA has upgraded the rating of UTI Bank's Rs 500-crore

certificate of deposit programme to UTI Bank has tied up with L&T Trade.com for

providing customised online trading solution for brokers.

2007

AXIS Bank Ltd has informed that consequent upon handing over charge as

Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), Shri.

S B Mathur, the Nominee Director of SUUTI has resigned as a Director of the Bank

w.e.f. December 06, 2007. AXIS Bank Ltd has informed that Fitch Ratings on

December 14, 2007, has upgraded the Bank's National Long-term rating to

'AAA(ind)' from 'AA+(ind)'. AXIS Bank Ltd hasappointed Shri K N Prithviraj as an

Additional Director on the Board at Directors of the Bank. Company name has been

changed from UTI Bank Ltd toAxis Bank Ltd.

2008

Axis Bank launches Platinum Credit Card, India's first EMV chip based card

Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-Madurai

road on April 16.

2009

Axis Bank today said its board has recommended the appointment of Shikha

Sharma, currently chief of ICICI group's life insurance business, as its next managing

director and CEO. anches along with 8 extension counters and 3622 ATMs across the

country. Axis Bank, on Wednesday entered into a strategic alliance with Motilal

Oswal, the financial services firm, in order to facilitate the online trading for the

bank's customers. AXIS Bank Ltd has informed that the Board of Directors of the

Bank at its meeting held on June 01, 2009, inducted Smt. Shikha Sharma as an

Additional Director of the Bank. Axis bank has received final clearance from the

Securities and Exchange Board of India (SEBI) to begin its mutual fund operations

and will launch debt and equity schemes soon whereas IDBI Bank is awaiting the

regulator's permit for an entry. Axis Bank opened the new branch at Irinjalakuda

while it has a network of 892 branches, 8 extension counters and 3,806 ATMs across

the country.

2010

Axis Bank Limited has informed that at the meeting of the Board of Directors

held on January 15, 2010, the following decisions were taken: (1) To appoint Dr.

Adarsh Kishore, former Finance Secretary, Government of India and former

Executive Director, International Monetary Fund representing Bangladesh, Bhutan,

India and Sri Lanka, as the Non-Executive Chairman of the Bank, subject to RBI

approval; (2) To appoint Shri S.B. Mathur, former Chairman, LIC and the National

Stock Exchange of India, as an Additional Independent Director, with immediate

effect. AXIS Bank Ltd has appointed Shri M. S. Sundara Rajan, former CMD, Indian

Bank as an Additional Independent Director with immediate effect. The Bank's

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

Bank has a very wide network of more than 896 branches and Extension Counters (as

on 31st December 2009). The Bank has a network of over 4055 ATMs (as on 31st

December 2009) providing 24 hrs a day banking convenience to its customers. This is

one of the largest ATM networks in the country.The Bank has strengths in both retail

and corporate banking and is committed to adopting the best industry practices

internationally in order to achieve excellence.

MANAGING DIRECTOR & CEO’S LETTER TO THE SHAREHOLDERS

Adarsh Kishore ChairmanShikha Sharma Managing Director & CEOM. M. Agrawal Deputy Managing DirectorN. C. Singhal DirectorJ. R Varma DirectorR. H. Patil DirectorRama Bijapurkar DirectorR. B. L. Vaish DirectorM. V. Subbiah DirectorK. N. Prithviraj DirectorV. R. Kaundinya DirectorS. B. Mathur DirectorP. J. Oza Company SecretaryS. K. Chakrabarti Executive Director (Retail Banking, SME and Agri.)V. Srinivasan Executive Director (Corporate Banking)Somnath Sengupta Executive Director and CFOSnehomoy Bhattacharya Executive DirectorS. S. Bajaj President & Chief Compliance OfficerP. Mukherjee President - Large Corporates & International BankingVinod George President - Wholesale Banking Operations

M. V. Subramanian President - Business BankingRajagopal Srivatsa President - IT and Retail Banking OperationsS. K. Supekar President & Chief Audit ExecutiveB. Gopalakrishnan President - LawManju Srivatsa President - Retail Banking (Assets)Bapi Munshi President & Chief Risk OfficerC. Babu Joseph President - AdvancesSonu Bhasin President - Retail Banking (Liabilities)Sanjeev K. Gupta President - Finance & Accounts and Investor RelationsV. K. Bajaj President - Mid CorporatesSidharth Rath President - Infrastructure BusinessR. K. Bammi President - North ZoneS. K. Nandi President - West ZoneS. K. Mitra President - East ZoneC. P. Rangarajan President - South Zone

UNIT : AXIS BANK LIMITEDPlot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad - 500 081Tel. No. : 040-23420815 to 23420824 Fax No. : 040-23420814

REGISTERED OFFICErd 'Trishul', 3 Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge, Ahmedabad - 380 006.Tel. No. : 079-2640 9322 Fax No : 079-2640 9321 Email : p.oza@axisbank.com, rajendra.swaminarayan@axisbank.comWeb site : www.axisbank.comCentral Officeth Maker Towers 'F', 13 Floor, Cuffe Parade, Colaba, Mumbai - 400 005

HIGHLIGHTS

Profit after tax up 38.51% to Rs.2515.53 croresNet Interest Income up 35.76% to Rs.5004.40 croresFee & Other Income up 23.80% to Rs.3123.40 croresDeposits up 20.38% to Rs.141300.22 croresDemand Deposits up 30.38% to Rs.66029.54 croresAdvances up 27.94% to Rs.104343.12 croresRetail Assets up 29.72% to Rs.20822.90 croresNetwork of branches and extension counters increased from 835 to1035Total number of ATMs went up from 3,595 to4293Net NPA ratio as a percentage of net customer assets up to0.36% from 0.35%Earnings per share (Basic) increased from Rs. 50.61 to Rs.65.78Proposed Dividend up from 100% to120%

Capital Adequacy Ratio stood at 15.80%as against the minimum regulatory

norm of 9%

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

Core values

Customer satisfaction through

Providing quality service effectively and efficiently

“smile, it enhances your face value” a service quality stressed on

Periodic customers service audits

Maximization of stakeholder value

GOAL AND OBJECTIVES

AXIS’s main goals are as follows:

Develop close relationships with individual households,

Maintain its position as the premier housing finance institution in the

country,

Transform ideas into viable and creative solutions,

Provide consistently high returns to shareholders, and

To grow through diversification by leveraging off the existing client base.

Business Objectives

The primary objective of AXIS is to enhance residential housing stock in the

country through the provision of housing finance in a systematic and professional

manner, and to promote home ownership. Another objective is to increase the flow of

resources to the housing sector by integrating the housing finance sector with the

overall domestic financial markets.

Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial

Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore,

with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four

subsidiaries contributing Rs. 1.5 crore each.

Shareholding 24.09%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI

Act, 1963, with a view to encourage savings and investment. In December 2002, the

UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of

Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the

bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February

2003. In accordance with the Act, the Undertaking specified as UTI I has been

transferred and vested in the Administrator of the Specified Undertaking of the Unit

Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-

64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.

The Government of India has currently appointed Shri K. N. Prithviraj as the

Administrator of the Specified undertaking of UTI, to look after and administer the

schemes under UTI - I, where Government has continuing obligations and

commitments to the investors, which it will uphold.

BANKING PRIVILEGES

Priority Banking Lounge:

As a Priority banking customer you will have access to an exclusive 'Priority

Banking Lounge' at branches. This will allow you to conduct your financial

transactions in utmost comfort and confidentiality through an exclusive Relationship

Manager.

Dedicated Relationship Manager:

You will enjoy access to a dedicated Relationship Manager who will be your

one point contact at branch for all your banking transactions thus ensuring that you

would neither have to move from one counter to the other nor stand in queues to await

your turn.

Home Banking:

Experience the convenience of our home banking facilities. Avail of free cash

and cheque pick-up and delivery at your office or residence.

Exclusive Priority Banking International Debit card:

This card allows you free access to all VISA ATMs in India. The card also

comes with higher ATM withdrawal limits, higher POS transaction limits at merchant

establishments, enhanced insurance cover and a host of special discounts and offers.

You also get Preferential Interest Rates and lowered Processing Fees on select

Retail Loans.

Other Banking Privileges:

Enjoy a host of banking privileges like free at-par cheques, demand drafts and

pay orders, free passbook updates and monthly statements. You would also be entitled

to two free minor accounts, one free outward remittance per quarter and free Mobile

banking.

As a Priority Banking customer, there would be no issuance charges on Axis

Bank's Travel Currency Card.

Investment Privileges

Avail of assistance in financial planning. Investment advice, market

information reports, and invitations to investor meets are offered complimentary to

you.

Lifestyle Privileges

However, it's not all about just financial services. We aim to provide a

different Lifestyle experience through special offers on premium brands, movie

privileges, special events and lots more - especially for our Priority Banking

customers

Gold Credit Card

As an added privilege, Priority Banking customers may also apply for a Gold

Standard Credit Card and Gold Standard Secured Credit Card without any additional

fee, subject to the applicable terms and conditions.

Priority Banking customers would also be eligible for a 50% reduction on the

Issuance Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card. Rs. 500

will be charged as the annual maintenance charge for Priority Banking customers,

subject to the applicable terms and conditions

PERFORMANCE HIGHLIGHTS

PROFITABILITY

Sustained Growth : Robust Core Revenues

CONSISTENT NET PROFIT GROWTH

NET INTEREST MARGIN COST OF FUNDS

GROWING NET INTEREST INCOME

GROWING DEMAND DEPOSITS

FEES

CAPITAL MARKETS

A domain player in placement syndication of debt isssues.

Ranked No. 1 in Bloomberg league for ‘India Domestic Bonds’ for calendar

year 2008 and till quarter ended 30th June’ 09

Ranked No. 1 Debt Arranger by Prime Database for the quarter ended 30 th

Jun’ 09

Recent Awards:

- Asia Money 2009 : Best Domestic Debt House in India

- Euromoney 2008 : Best Debt House in India

- Finance Asia 2008 : Best Bond House in India

- IFR Asia: India Bond House 2008

SAVINGS BANK GROWTH

SHAREHOLDING

ABOUT STATE BANK OF INDIA

STATE BANK OF INDIA (SBI)

The evolution of State Bank of India can be traced back to the first decade of

the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta,

on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on

2 January 1809. It was the first ever joint-stock bank of the British India, established

under the sponsorship of the Government of Bengal. Subsequently, the Bank of

Bombay (established on 15 April 1840) and the Bank of Madras (established on 1

July 1843) followed the Bank of Bengal. These three banks dominated the modern

banking scenario in India, until when they were amalgamated to form the Imperial

Bank of India, on 27 January 1921.

An important turning point in the history of State Bank of India is the launch

of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving

the Indian economy in general and the rural sector of the country, in particular. Until

the Plan, the commercial banks of the country, including the Imperial Bank of India,

confined their services to the urban sector. Moreover, they were not equipped to

respond to the growing needs of the economic revival taking shape in the rural areas

of the country. Therefore, in order to serve the economy as a whole and rural sector in

particular, the All India Rural Credit Survey Committee recommended the formation

of a state-partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the

Imperial Bank of India, and integrating with it, the former state-owned or state-

associate banks. Subsequently, an Act was passed in the Parliament of India in May

1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This

resulted in making the State Bank of India more powerful, because as much as a

quarter of the resources of the Indian banking system were controlled directly by the

State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959.

The Act enabled the State Bank of India to make the eight former State-associated

banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried

out by the 480 offices comprising branches, sub offices and three Local Head Offices,

inherited from the Imperial Bank. Instead of serving as mere repositories of the

community's savings and lending to creditworthy parties, the State Bank of India

catered to the needs of the customers, by banking purposefully. The bank served the

heterogeneous financial needs of the planned economic development.

Branches

The corporate center of SBI is located in Mumbai. In order to cater to different

functions, there are several other establishments in and outside Mumbai, apart from

the corporate center. The bank boasts of having as many as 14 local head offices and

57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has

about 10000 branches, well networked to cater to its customers throughout India.

ATM Services

SBI provides easy access to money to its customers through more than 8500

ATMs in India. The Bank also facilitates the free transaction of money at the ATMs

of State Bank Group, which includes the ATMs of State Bank of India as well as the

Associate Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State

Bank of Indore, etc. You may also transact money through SBI Commercial and

International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.

Subsidiaries

The State Bank Group includes a network of eight banking subsidiaries and

several non-banking subsidiaries. Through the establishments, it offers various

services including merchant banking services, fund management, factoring services,

primary dealership in government securities, credit cards and insurance.

PRODUCTS AND SERVICES

Personal Banking

SBI Term Deposits SBI Loan For Pensioners SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

Contact

State Bank of India

CorporateCentre

MadamCamaRoad

Mumbai400021

India

Website: www.statebankofindia.com

KEY AREAS OF OPERATION

The business operations of SBI can be broadly classified into the key income

generating areas such as National Banking, International Banking, Corporate

Banking, & Treasury operations. The functioning of some of the key divisions is

enumerated below:

a) CORPORATE BANKING

The corporate banking segment of the bank has total business of around

Rs1,193bn. SBI has created various Strategic Business Units (SBU) in order to

streamline its operations.

These SBUs are as follows:

Corporate Accounts

Leasing

Project Finance

Mid Corporate Group

Stressed Assets Management

b) NATIONAL BANKING

The national banking group has 14 administrative circles encompassing a vast

network of 9,177 branches, 4 sub-offices, 12 exchange bureaus, 104 satellite offices

and 679 extension counters, to reach out to customers, even in the remotest corners of

the country. Out of the total branches, 809 are specialized branches.

This group consists of four business group which are enumerated below:

Personal Banking SBU

Small & Medium Enterprises

Agricultural Banking

Government Banking

c) INTERNATIONAL BANKING

SBI has a network of 73 overseas offices in 30 countries in all time zones and

correspondent relationship with 520 international banks in 123 countries. The bank is

keen to implement core banking solution to its international branches also. During

FY06, 25 foreign offices were successfully switched over to Finacle software. SBI has

installed ATMs at Male, Muscat and Colombo Offices. In recent years, SBI acquired

76% shareholding in Giro Commercial Bank Limited in Kenya and PT Indomonex

Bank Ltd. in Indonesia. The bank incorporated a company SBI Botswana Ltd. at

Gaborone.

d) TREASURY

The bank manages an integrated treasury covering both domestic and foreign

exchange markets. In recent years, the treasury operation of the bank has become

more active amidst rising interest rate scenario, robust credit growth and liquidity

constraints. The bank diversified its operations more actively into alternative assets

classes with a view to diversify the portfolio and build alternative revenue streams in

order to offset the losses in fixed income portfolio. Reorganization of the treasury

processes at domestic and global levels is also being undertaken to leverage on the

operational synergy between business units and network. The reorganization seeks to

enhance the efficiencies in use of manpower resources and increase maneuverability

of banks operations in the markets both domestic as well as international.

e) ASSOCIATES & SUBSIDIARIES

The State Bank Group with a network of 14,061 branches including 4,755

branches of its seven Associate Banks dominates the banking industry in India. In

addition to banking, the Group, through its various subsidiaries, provides a whole

range of financial services which includes Life Insurance, Merchant Banking, Mutual

Funds, Credit Card, Factoring, Security trading and primary dealership in the Money

Market.

1) Associates Banks:

SBI has seven associate banks namely

State Bank of Indore

State Bank of Travancore

State Bank of Bikaner and Jaipur

State Bank of Mysore

State Bank of Patiala

State Bank of Hyderabad

State Bank of Saurashtra

All associate banks have migrated to Core Banking (CBS) platform. Single

window delivery system has been introduced in all associate banks. SBI’s seven

associate banks are the first amongst the public sector banks in India to get fully

networked through CBS, providing anytime-anywhere banking to its customers to

facilitate a bouquet of innovative customer offerings.

2) Non-Banking Subsidiaries/Joint Ventures

i) SBI Life:

ii) SBI Capital Markets Limited (SBICAP)

iii) SBI DFHI LTD

iv) SBI Cards & Payments Services Pvt. Ltd. (SBICSPL)

v) SBI Funds Management (P) Ltd. (SBIFMPL)\

vi) Human Resources

NON BANKING SUBSIDIARIES:

The Bank has the following Non-Banking Subsidiaries in India :

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Factors & Commercial Services Pvt Ltd

State Bank of India’s operating profit and net profit for Q2’09 surged 54.5%

and 40.2% yoy, respectively, exhibiting a strong performance.

Advances growth to slow down: SBI recorded a handsome 37% yoy growth

in advances, translating into an 18% sequential growth in the first half. However,

this momentum is likely to decelerate considerably in the second half of 2008-09.

Robust rise in deposits: State Bank of India’s deposit base surged 28% yoy

and its CASA ratio improved from 39.45% to 39.71% over the same period. On a

quarterly basis, the bank’s deposits grew by 10.3%.

Improvement in the credit-deposit ratio: The Bank’s credit-deposit ratio

increased from 68.9% in Q2’08 to 73.8% this quarter. This was following a

robust 37% yoy increase in advances, which exceeded the 28% growth in

deposits over the same period.

Increase in the NII and NIM: SBI’s net interest income (NII) increased by 45%

yoy to reach Rs. 54.6 bn.

Profitability: The Bank’s ROE declined from 17.38% for H1’08 to 14.63%

for H1’09. The return on assets (annualized), however, increased from 0.99%

in Q2’08 to 1.13% in Q2’09.

CHAPTER - 3

SERVICE QUALITY

SERVICE AND ITS CHARACTERSTIC

Banks are investing a lot of money on web technologies and are therefore

expecting numerous benefits on their investments. The intensifying competition on

today’s market has forced banks to seek profitable ways to differentiate themselves.

Companies have moved their focus from products and services toward a customer-

centered focus as a tool to gain competitive advantages and a great return on already

made investments. The success in these customer- centered businesses is to deliver high

service quality. Already in the end of the 1980’s researchers were determined that if the

companies wanted to succeed they needed to give the development of service quality

the highest priority. The delivery of high service is a challenging task and to provide

their customers with high service quality companies must know what their customers

want and need. Because of factors that are unique to services, companies face

difficulties while delivering service quality: intangibility, heterogeneity, inseparability

and perishability. Because services are intangible they can not be felt, smelled or tasted

which makes it hard for customers to evaluate the service quality. Furthermore, services

are not possible to store for later use, they are consumed immediately. Therefore

companies need to offer other visible indicators where customers could evaluate the

delivered service quality. Services heterogeneity means that services are not produced

by single unit and then distributed to customers. This means that the quality of services

varies depending on who provides them as well as when, where and how services are

provided.

Here the focus is on the employee and the way in which the service is delivered

and perceived by the customer will depend on the employee. Services are perishable

which means that they are consumed when they are provided and can not be stored.

Service has many definitions, one definition has been chosen that describe it in

summary: “A service is something that can be bought and sold, but which you cannot

drop on your foot.” Both managers and academic researchers have in recent years given

a great deal of interest in measurement of customer satisfaction and perceived service

quality. Spreng et al (1996) discuss the difference between customer satisfaction and

perceived service quality and suggest that these are not the same and that companies

need to take both into consideration. This because companies need to know whether

they should focus on having satisfied customers or to deliver the maximum service

quality. Perceived service quality is according to Parasuraman et al “a global judgment

of, or, attitude relating to the superiority of the service” and this definition can be found

in other service literature. The definition of the customer satisfaction has not the same

clear definition but Spreng et al use the definition “an evaluative, affective or emotional

response.”

SERVICE QUALITY MODEL

THE SERVICE QUALITY MODEL

THE GAPS IN THE MODEL

Gap 1: Customer Expectations – Management Perceptions Gap

Gap 2: Management Perceptions - Service Quality Specifications Gap

Gap 3: Service Quality Specifications - Service Delivery Gap

Gap 4: Service Delivery - External Communications Gap

Gap 5: Expected Service - Perceived Service Gap (or the Service Performance

Gap)

Customer Expectations - Management Perceptions Gap

Collect data on customer expectations

Relate customer data to overall service strategy

Increase management contact with customers

Increase internal communications

Track performance on satisfaction

Inappropriate Quality Service Standards

Leadership commitment

“Can’t be done” - create possibilities

Standardise tasks

Goal setting - based on service goals

The Service-Performance Gap.

Provide data on performance, on definition of standards for excellent service

Provide opportunity to change and to grow

Provide training - educate employees about customers

Harmonise roles - define in customer service terms

Develop team environment - work together

Empower people to solve problems

Provide support to employees to create highperformance service

The Promise-Delivery Gap

Break down barriers between departments

Communicate freely

Understand and mentor internal customers

Standardise and communicate policies and procedures

Communicate standards, policies and procedures to customers

Emphasise primary characteristics\

Manage customer expectations

Expected Service - Perceived Service Gap

This gap is the result of the other gaps

This is the gap the customer notices

Feedback on this gap (complaints) is diagnostic of the other gaps

Here is where we obtain information that provides the imperative for

improvement.

Proactively seeking feedback here is essential to improvement Service

Dimensions: The Long List

Reliability

Responsiveness

Competence

Access

Courtesy

Communication

Credibility

Security

Understanding/Knowing the customer

Tangibles

SERVICE QUALITY OF AXIS BANK

They will act fairly and reasonably in all our dealings with you by:

Meeting the commitments and standards for the products and services we

offer, and in the procedures and practices our staff follow;

Making sure our products and services meet relevant laws and regulations;

ensuring that our dealings with you will rest on principles of integrity and

transparency.

They will help you to understand how our financial products and services work

by:

giving you information about the products ;

explaining their financial implications.

General Information

Before you become a customer, we will:

Give you information explaining the key features of the services and products

you are interested in

Tell you what information they need from you to prove your identity and

address in order to comply with legal and regulatory requirements, and Once

you have chosen an account or service, they will tell you how it works. When

you open a single account or a joint account, they will give you information on

your rights and responsibilities

Interest Rates

You can find out about our interest rates by:

calling our branch;

looking at our website; or

asking our designated staff.

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

rates which apply to your accounts and the periodicity of payment of interest. In case

of loan accounts you will be given the relevant information relating to the interest

rates. We will explain how we apply interest to your account.

Loans And Advances

If they offer you an overdraft, or an increase in your existing overdraft limit,

we will tell you if your overdraft is repayable on demand or otherwise.

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

Changes in interest rates

When they change the interest rates on their products, they will update the

information on our website.

At the time of opening of the account they will inform you of the rate at which

interest is paid on your savings deposits, how it is calculated and its periodicity

Charges

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

applicable to the products chosen by you.

You can also find out about our charges by asking our staff at the branch or by

looking at our website.

If they increase any of these charges or introduce a new charge, you will be

notified before the revised charges are implemented.

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

service or product, and at any time you want such information

Terms And Conditions

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

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

provide.

Changes to Terms and Conditions

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

and conditions through a separate communication, or through their statement of

accounts or the Bank's Website.

Normally, changes in your account facility, if any, will be made with

prospective effect and with adequate notice. If the changes are to your disadvantage,

you may close the account at any time up to two months from the date of the notice

without having to pay any extra charges or interest for doing this.

Advertising And Marketing

They will make sure that all advertising and promotional material is clear,

fair, reasonable and not misleading. They will seek your specific consent for giving

details of your name and address to any third party, including other entities in our

group, for marketing purposes. We would like to provide you with the entire range of

financial services and products. Some of the products offered could be from our

associates / group companies or companies with whom we have specific

arrangements. They will inform you, if you so desire, of the third party products

marketed at our branch.

They might enter into arrangements with third party service providers for

marketing our products. They will however tell you about their associate / group

entities or companies having business tie-up arrangements with us if you so desire.

Statements

To help you manage your operative account [Savings / Checking / Overdraft]

and check entries on it, they will give you account statements at regular intervals.

Savings Bank & Current account statements are directly sent to customers address at

monthly intervals. No statements are sent to customers for term deposit accounts.

The Bank at its discretion and with your concurrence may send statement of

accounts through e-mal. Do check with the branch in case you need such services.

Cash Transactions

You should count notes and ensure correctness before leaving the cash

counter. The branch may have restrictions on certain cash transactions and you are

advised to check with the branch before contemplating any large cash transactions.

Fund Transfer

If you want to transfer money, they will give you:

A description of the services and how to use them time involved in the

remittance of funds and the reasons for possible delays

The exchange rate applied when converting to another currency, and

Details of any commission or charges which you will have to pay.

If money is transferred to your bank account from abroad, they will tell you

the original amount received and charges, if any at our end.

Confidentiality

They will treat all your personal information as private and confidential [even

when you are no longer a customer]. They will not reveal transaction details of your

accounts to a third party, including entities in our group, other than in the following

cases:

Information revealed part of the outsourcing arrangement:

Axis Bank, Hong Kong Branch has outsourcing arrangements with Axis Bank,

India. The details are given below:

The Head Office of AXIS Bank Ltd. (AXIS Bank), having its place of

business in India and carrying on the business of banking in India as licensed

under the applicable laws and regulations of India, has decided to implement

the system to integrate and centrally manage and process the back office

operations of its overseas branches, including AXIS Bank Ltd., Hong Kong, at

the head office level in India.

In implementing the outsourcing system the Hong Kong Branch of the Bank

and AXIS Bank have entered into a Master Service Level Agreement (the

"Agreement" which includes such agreement as from time to time amended

and varied) which, provides that customers' data confidentiality under the

Personal Data (Privacy) Ordinance and Hong Kong's common law on

customer secrecy shall be recognized and protected.

If they have to give the information by law

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

If you ask them to reveal the information, or if they have your permission to

provide such information to their group/ associate /entities or companies when

they have tie-up arrangements for providing other financial service products.

Communication Link

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

Name

Address

Phone number or

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

Checking your account

They recommend that you check your statement regularly. If there is an entry,

which seems to be wrong, you should tell them as soon as possible so that they can

sort it out. If they need to investigate a transaction on your account you should co-

operate with them and any other authority, if they need to involve them.

Taking care

Taking care of your cheques and other security information is essential to help

prevent fraud and protect your accounts. Please make sure that you follow the advice

given below:

Do not keep your cheque book which will be accessible by unauthorized

persons

Do not keep the blank cheque leaves signed

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

Always learn your password and other security information and destroy the

notice as soon as you receive it

Never write down or record your password or other security information

Always take reasonable steps to keep your cheque book in your personal

custody and your password and other security information secret at all times

Never give your account details password or other security information to

anyone unless you know who they are and why they need them.

If you are paying a cheque into a bank account, always write on the cheque the

name of the account holder [ABC Bank Account - XYZ]. You should draw a line

through unused space on the cheque so unauthorized person cannot add extra numbers

or names. Ignore any e-mail asking for your password or account number. What to do

if you lose your chequebook, or if someone else knows your password?

It is essential that you send a written communication to us immediately if you suspect

or discover that:

your cheque book has been lost or stolen or

someone else knows your password or other security information.

Cancelling Payments

If you want to cancel a payment or series of payments you have authorised,

you should do the following:

To stop payment of a cheque or cancel standing instruction given, you must

tell us in writing

To cancel a direct debit, you can inform the originator of the direct debit

Feedback and Suggestions

they will always put their customers first and treat your feedback with the

utmost importance. In order to improve their services and fulfill our role as your right

partner, they would like to know more about your needs and hear your feedback.

Please provide feedback on our services. Your suggestions will help us to improve our

services. Such suggestions / feedback may be sent to customercarehk@axisbank.com

What can a complaint be about?

The complaint can be about:

Any aspect of the services provided by the branch

The behaviour and decision of the staff

Practices, Policies and Procedures

Where to make a Complaint?

The details of the Branch Complaint Handling Officer along with their e-mail

IDs are given below:

Mr. Cyril Anand,

Chief Executive Officer

Axis Bank Ltd.

Hong Kong Branch

Room No.805 - 809

Alexandra House,

18 Chater Road,

Central Hong Kong

Tel No. : 00852-36564000

Fax No : 00852- 2522 7821

Email : complaintshk@axisbank.com:

Level One

The complaints will be resolved by the Complaint Handling Officer within 7

working days from the date of receipt.

Level Two

In case the complaint remains unresolved after 7 working days or is

unsatisfactorily resolved, the customer has the option to escalate the complaint to the

President, International Banking Department at the Central Office,by mailing to

cib.co@axisbank.com, who will arrange to resolve the complaint within 10 working

days from the date of receipt. The customer has the option of escalating the

unresolved or unsatisfactory resolved complaints to the Chief Compliance Officer at

Central office after expiry of 10 working days by mailing to cco@axisbank.com

Level Three

In case the customer is not satisfied with the final resolution, the customer

may consider escalating the complaint to the local statutory body/regulator. In such a

situation the branch would provide to the relevant local authority the complete details

of the complaint including the investigation details and the related documents.

What is the Complaints Escalation Procedure?

If unsatisfied with the resolution by the branch, the customer can escalate

complaint to the President, International Banking Department at the Central

Office by emailing to cib.co@axisbank.com

President, International Banking Department at the Central Office will arrange

to resolve the complaint with in 10 working days.

The customer has the option of escalating the unresolved or unsatisfactory

resolved complaints to the Chief Compliance Officer at Central Office after

expiry of 10 working days by emailing to cco@axisbank.com

In case the customer is not satisfied with the outcome of resolution, the

customer may consider escalating the complaint to the local, statutory

body/regulator

CHAPTER - 4

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology is a way to systematically study & solve the research

problems. If a researcher wants to claim his study as a good study. He must clearly

state the methodology adopted in conducting the research so that it may be judged by

the reader whether the methodology of work done is sound or not.

MEANING OF RESEARCH

Research is defined as “a scientific & systematic search for pertinent

information on a specific topic.” Research is an art of scientific investigation.

Research is systematized effort to gain new knowledge.

The Research Methodology here includes :

Type of Research

Research Problems

Research Design, Hypothesis

Source of Data

Sampling Design

Sample Size

Data collection method

Analysis of Data

Interpretation

Beneficiaries of project

Objective of Study

Limitations

TYPES OF RESEARCH

The basic types of research are as follows:

Analytical Research

In this the researcher has to use facts or information already available, and

analyze these to make a critical evaluation of material.

Quantitative Research

It is based on measurement of a quantity or an amount.

RESEARCH PROBLEM

The first step while conducting research is careful definition of Research

Problem. It refers to some difficulty, which a researcher experiences in the context of

either a theoretical or practical situation and wants to obtain a solution for the same.

My research is related to working capital problem.

RESEARCH DESIGN

A research design is a framework for the study and is used as a guide in

collection and analyzing the data. It is a strategy specifying which approach will be

used for gathering and analyzing the data. It also includes the time and cost budget

since most studies are done under these two constraints.

SOURCES OF DATA

The task of data collection begins after a research problems has been defined

and research design/plan chalked out. While deciding about the sources of data

collection to be used for the study, the researcher problem defines the nature of

sources of the sources of data.

Primary Data

Primary Data are those, which are collected afresh and for the first time. It

may be described as those data that have been observed and recorded by the

researchers for the first time to their knowledge.

Secondary Data

Secondary Data are those which have been collected by someone else and

which have already been through the statistical process. For example libraries,

literature, periodicals etc.

I have used secondary data in my study.

SAMPLING DESIGN

A Sample Design is a definite plan for obtaining s sample from a given

population. It refers to the technique or the procedure the researcher would adopt in

selecting items for the sample. Sample Design is determined before data are collected.

SAMPLE SIZE

A part of Population is known as sample. The process of drawing a sample

from a larger population is called Sampling. Following sampling is designed in order

to execute the survey.

Sample Area: : KURUKSHETRA

Sample size: 100 AXIS customers

100 SBI customers

Sample Design: Samples selected in the survey are those who are the

customers of either AXIS or SBI or both

UNIVERSE AND SURVEY POPULATION

The aggregate of all the units pertaining to a study is called Population or

Universe.

The universe for the study is considering the whole world for different sources

of fund.

DATA COLLECTION METHOD

There are many different methods for data collection. The researcher would

have to decide regarding the type of data and accordingly he will have to select one or

the other method of data collection. Important ones for collecting primary data are:

Observation method, interviews, questionnaires, through schedules etc

ANALYSIS OF DATA

The collected data in the study has been presented and analyzed using the

various graphs for satisfaction level, score of various factors on the particular

dimensions, and overall dimension score and is compared with other service.

Also data is analyzed through performance matrix

INTERPRETATION

Interpretation is concerned with relationships within the collected data,

partially overlapping analysis. Interpretation also extends beyond the data of the study

of other research, theory and hypothesis..

BENEFICIARIES OF PROJECT:

Beneficiary of this project is to the bank, to improve the customer satisfaction

in the dimension in which they are lagging.

Key findings and analysis will helpful to them for provide better services to

customers.

For researchers, to know the competitive advantage of both the banks and their

services.

OBJECTIVE OF THE STUDY

Any project to be meaningful should have certain objectives. The main

objectives and the specific objectives met by the project undertaken are.:

1. The main objectives of this study were to examine the level of service

quality in Private banking industry from the perspective of bank customers

2. To assess and compare the overall service performance of SBI and

AXIS bank.

3. To know in which service quality dimension the bank is performing

well and in which dimension it needs improvement.

4. To know customers requirements or expectation for service.

5. To examine Gender wise customers’ expectations and perceptions of

service quality provided by the Private banks in Hissar District

6. To identify whether there is difference in expectation & perception of

service quality of male & female customers.

7. To identify the main attributes of service quality in which male &

female (separately) are more

LIMITAIONS OF STUDY

The study was restricted to two banks, so the competitive scenario could not

be studied.

Inadequate time was the major constraint during the whole project.

All the answers given by the respondents have been assumed true.

It difficult to gather sufficient data relating to financial management.

Although, I tried my best to learn the possible during my stay, but still time

and resources constraints came in my way to learn more.

Data could not be available hence, it became difficult to analyze the

company’s performance .

Although, all the employees of AXIS are highly co-operative and devoted

their valuable time on me, but still I was unable to use their knowledge due to

their busy schedule.

CHAPTER - 5

ANALYSIS AND INTERPRETATION

1. Modern looking equipment

From the graph it is clearly seen that for AXIS and SBI most of the

respondents are fall in satisfaction range.

For AXIS highest frequency is observed in satisfactory level, whereas

for SBI highest frequency is observed in neither satisfied nor

dissatisfied range.

So, for modern looking equipment AXIS bank has more number of

satisfied responses as compared to SBI.

2. Visually appealing physical facilities

For both the banks highest frequency is observed in neither satisfied

nor dissatisfied range.

And most of the respondents for both the banks are less satisfied as far

as visually appealing physical facilities concerned, as in level 3 i.e.

dissatisfied more numbers of respondents are there for both the banks.

AXIS bank has more satisfied customers, so for visually appealing

physical facilities AXIS bank has good response as compared to SBI.

3. Neat appearing employees

From the graph, SBI respondents are showing more positive response then

that of AXIS respondents, and also respondents fall in satisfied range is

more in case of SBI then that of AXIS.

Also there are more numbers of respondents in moderate and strongly

agreed zone for SBI as compared to AXIS. And for AXIS most of the

respondents are present in 3,4 and 5 level of satisfaction, so respondents

are not satisfied for AXIS.

So for neat appearing employees SBI respondents has more satisfaction

level.

4. Visually appealing materials associated with the services

Here, for AXIS bank there are slightly more numbers of respondents which

are fall in satisfied range then from SBI. Also most of the respondents fall in

neither dissatisfied nor satisfied and satisfied area for both the banks.

Here it is difficult to say that which bank is performing better in visually

appealing materials associated with the services.

5. Keeping promise to do something by certain time

Here from the graph it is clearly seen that respondents of SBI are having more

satisfaction than that of AXIS, as more numbers of respondents are fall in

satisfaction level.

For both the banks most of the respondents are fall in neither satisfied nor

dissatisfied level and satisfied level. So for this factor both the banks are

relatively not performing well as per resondents.

Overall for this question SBI respondents are showing more satisfaction than

that of AXIS.

6. Showing sincere interest in solving a customer’s problem

Here from the graph, SBI and AXIS have nearly the same kind of responses,

but AXIS has slightly more numbers of satisfied repondents as compared to

SBI for showing sincere interest in solving a customer’s problem, so for this

factor AXIS is performing slightly well over SBI.

Here both the banks have more numbers of respondents who are fall in level 4

i.e. neither satisfied nor dissatisfied so both the banks can improve the level of

satisfaction by improving on this variable.

7. Performing the service correctly the first time

Here for SBI highest frequency is observed in satisfied level, whereas for

AXIS it is in neither dissatisfied nor satisfied level.

Total number of respondents for SBI are more in satisfaction level, whereas

for AXIS most of the respondents are fall in dissatisfied and neither

dissatisfied nor satisfied level.

So for performing the service correctly the first time SBI respondents are

agreed compared to AXIS respondents.

Also for this factor AXIS is underperforming compared to SBI.

8. Providing the service at the time the service was promised

From the graph, the responses are nearly similar for both AXIS as well as SBI.

So for providing the service at the time the service was performed both the

bank has similar kind of responses. Hence there is not so much difference in

providing the service at the time the service was performed.

Also there are very few respondents for both the banks which are highly or

moderatley satisfied, so both the banks need to improve satisfaction level on

this factor, so satisfaction level of their customers will improve.

9. Insisting on error free records

There is quite large difference among the respondents for insisting on error

free records, SBI respondents are showing more positive response as

compared to AXIS respondents.

Also AXIS respondents are more on dissatisfaction level than SBI

respondents.

So respondents of SBI are agree with the statement as compared to AXIS

respondents.

For this factor AXIS need improvement so satisfaction level of their customer

will improve, whereas for SBI they are performing well.

10. Employees telling customers exactly what services will be performed

Here from the graph it is clearly seen that almost all the respondents for both

the banks are falling in satisfied and neither dissatisfied nor satisfied level.

But number of respondents for SBI are more satisfied for employees telling

customers exactly what services will be performed.

Also there are very few respondents which are moderately and highly agreed

with the statements for both the banks.

So for both the banks there is a scope of improvement on this factor so

satisfaction level of customers can be improved.

11. Employees giving prompt service to customers

Here for SBI highest frequency is observed in satisfaction level, whereas for

AXIS it is in neither dissatisfied nor satisfied level.

So for employees giving prompt service to customers SBI respondents are more agreed over AXIS respondents.

Here AXIS need improvement as there are less numbers of satisfied respondents.

12. Employees always being willing to help customers

Here, more number of the respondents of AXIS is falling in satisfaction level

as compared to SBI respondents.

SBI respondents are mainly falling in lower side of satisfaction level.

So, for the statement employees always being willing to help customers AXIS

respondents are more agreed than of SBI respondents.

13. Employees are never too busy to respond to

customers’ requests

From the graph, SBI respondents are more in number in satisfaction level as

compared to AXIS respondents.

Highest frequency of respondents for both AXIS and SBI is fall in neither

dissatisfied nor satisfied level.

Also there are quite more numbers of respondents for both the banks which

are dissatisfied.

So, for the statement that employees are never too busy to respond to

customer’s request SBI respondents are more agreed as compared to AXIS

respondents, the satisfaction level is slightly low for both the banks.

14. The behavior of employees instilling confidence in their customers

From the graph it is seen that, there are more number of respondents for SBI

who are satisfied as compared to AXIS respondents.

Also most of the respondents for both the banks are falling in neither

dissatisfied nor satisfied and satisfied level.

So for the statement that the behavior of employees instilling confidence in

their customers, SBI respondents are more agreed as compared to AXIS

respondents.

15. Customers feeling safe in their transactions

Here, for SBI highest frequency of respondents is observed in satisfied level,

whereas for AXIS it is in moderately satisfied level.

But for AXIS respondents they are nearly equally distributed in neither

dissatisfied nor satisfied to highly satisfied level, whereas for SBI in satisfied

level there is quite large peak of respondents.

So for the staement customer feeling safe in there transactions AXIS has more

number of respondents which are moderate to highly satisfied level and for

SBI respondents in satisfied zone are more.

Also here for AXIS numbers of respondents in moderate and highly satisfied

are more compared to SBI, but due to large number of respondents in satisfied

level for SBI lead them to more stronger position.

16. Employees being consistently courteous with their customers

Here from the graph, respondents of both the banks have nearly the same type

of responses, except in level 5 i.e. satisfied where more noumber of AXIS

respondents are fall.

For both the banks, there are more numbers of satisfied respondents so both

the banks are performing well on this criteria.

So here for the statement employees being consistently courteous with their

customers, AXIS has slightly more number of satisfied respondents.

17. Employees having the knowledge to answer customers’ questions

For this question the respondents are distributed all over the satisfaction scale

for both the banks.

So here there are more number of dissatisfied respondents as well as more

number of satisfied respondents for both the banks.

Highest frequency is observed in level 5 i.e. satisfied respondents.

But there are more number of respondents for SBI who are agreed with

statement hence for employees having the knowledge to answer customers’

question SBI is ahead of AXIS.

18. Giving customers indivdual attention

Here for AXIS there are more numbers of respondents who are agreed with

the question as compared to SBI respondents.

But here there is minor difference in the responses of respondents for both the

banks.

So level of satisfaction of respondents for both the banks is almost same for

this question.

Both the banks need to convert low satisfied customers to more satisfied

customers by improving the performance of this factor.

19. Operating hours convenient to all their customer

There are more numbers of satisfied respondents for AXIS as compared to

SBI.

Highest frequency of respondents for both the banks is at level 4 i.e. neither

dissatisfied nor satisfied.

Also there are slightly more numbers of respondents on dissatisfied level for

both the banks, so they have to improve in this factor.

20. Employees giving customers personal attention

Here from the graph, we can say that SBI has more number of respondents

who are dissatisfied as compared to AXIS respondents.

Also highest frequency of respondents for AXIS is at level 4 i.e. neither

dissatisfied nor satisfied, whereas for SBI it is at level 3 i.e. dissatisfied.

So for employees giving customers personal attention AXIS has better

response as compared to SBI. Also for both the banks there are quite large

numbers of repondents who are not agreed with statement.

21. Having the customers’ best interest at heart

Here most of the respondents for both the banks are fall in dissatisfaction

zone.

Also highest frequency is observed in level 3 i.e. dissatisfied for both the

banks.

So as far as for this question both the banks have negative response and they

need to improve it.

22. The employees understanding the specific needs of customers

From the graph, there are more numbers of respondents who are disagree with

this statement for both the banks.

But for SBI there are more numbers of repondents which are falling in level 4

and for AXIS more numbers of respondents are falling in level 5.

So for this question AXIS has comparatively good response. But both the

banks have below average response.

CHAPTER - 6

FINDINGS

AXIS has more satisfaction level of respondents for dimensions tangibility and

empathy; whereas SBI has more satisfaction level of respondents for

remaining three dimensions i.e. reliability, responsiveness, and assurance.

Most of the respondents for both the banks are less satisfied as far as visually

appealing physical facilities concerned and neat appearing employees are

concerned.

The difference in score was more for SBI, so AXIS was lagging more on

reliability dimension.

Insisting on error-free records the difference in score was huge for SBI in comparison

to AXIS. Also there is moderate difference in score for performing the service

correctly the first time for SBI over AXIS. Hence AXIS needs to improve on these

two factors as far as reliability dimension is concerned.

For these three factors keeping promise to do something by certain time,

providing the service at the time the service was promised and, performing the

service correctly the first time both the banks can improve the level of

satisfaction as there were less number of respondents who were satisfied.

For employees telling customers exactly what services will be performed

difference is so large for SBI over AXIS so AXIS has to focus on this factor to

improve score on responsiveness dimension.

Whereas for SBI they are almost performing well on responsiveness

dimension, but they need improvement on employees always being willing to

help customers.

Employees telling customers exactly what services will be performed and

employees are never to busy to respond to customers’ request for these two

questions both the banks had less satisfaction of customers so by focusing on

this to factors they can improve satisfaction level.

Both the banks are performing nearly same on dimension assurance, as there

was slight difference in the score.

Customers feeling safe in their transaction for this question, AXIS has more

number of respondents which were moderate to highly satisfied level and for

SBI respondents in satisfied zone were more but there were less number of

respondents in moderate to highly satisfied level so due to more numbers of

respondents in satisfied level, score of SBI is more.

Employees having enough knowledge to answer customers’ questions, here

both the banks need to improve on this factor as there were more numbers of

respondents in level 3 and level 4 for both the banks, so by focusing on this

they can improve satisfaction level of their customers.

SBI has to improve in all the aspects for the dimension empathy as AXIS is

performing well on this dimension. Mainly they have to focus on giving

customers individual attention and employees giving customers personal

attention as they were more lagging behind in these factors in comparison of

AXIS.

Both the banks need to improve its service for employees giving customers

personal attention, operating hours convenient to all their customers, having

the customers’ best interest at heart and the employees understanding the

specific needs of customers as there were more numbers of respondents who

were either not satisfied or less satisfied.

CHAPTER - 7

SUGGESTIONS

AXIS:

AXIS needs to improve on mainly these three factors i.e. Promise, Doing it

right and Competency as these factors are more important for banking industry

and they are lagging on these factors as compared to SBI.

AXIS should maintain these four factors i.e. Promptness, Willingness,

Competency and Understanding as in these factors either AXIS is performing

well or doing up to the mark and these four factors are important for banking

industry.

AXIS should deemphasize on factor Appearance and Approachable as in these

factors they are performing well, but these factors have less importance as

compared to other factors.

AXIS should concentrate on insisting on error free records, on performing the

service correctly the first time and employees telling customers exactly what

services will be performed.

SBI:

SBI should improve its performance on Understanding and Credibility as these

factors are important for banking industry and they are lagging in these two

factors.

SBI should concentrate on employees always being willing to help customers,

on giving customers individual attention, on employees giving customers

personal attention.

As SBI is performing poorly in all the aspect of empathy dimension, so SBI

should concentrate on this dimension more.

SBI should maintain these five factors i.e. Appearance, Promises, Doing it

right, Competency, and Approachable in these factors either SBI is performing

well or doing up to the mark and these four factors are important for banking

industry.

SBI should deemphasize on factor Promptness as in this factor they are

performing well, but these factors have less importance as compared to other

factors.

BOTH AXIS AND SBI:

Both the banks should increase satisfaction level of their customers by mainly

focusing on following factors:

Keeping promise to do something by certain time.

Providing services at the time the service was promised.

Performing the services correctly the first time.

As on above factor, most of the respondents shows neither satisfied nor

dissatisfied, so by improving this factors satisfaction level can be improve.

CONCLUSION

CONCLUSOIN

1. AXIS is doing well on the tangibility and empathy dimension,

whereas SBI performing well on reliability, responsiveness and assurance

dimensions.

2. Mainly SBI is doing well on insisting on error free record,

employees telling customers exactly what service will be performed and

employees are never too busy to respond to customers’.

3. Whereas AXIS is performing well on giving customers

individual customers and employees always being willing to help customers.

4. Both the banks need to improve on empathy dimension.

5. Both the banks need to improve its service for employees

giving customers personal attention, operating hours convenient to all their

customers, having the customers’ best interest at heart and the employees

understanding the specific needs of customers as there were more numbers of

respondents who were either not satisfied or less satisfied.

6. They always ready to serve their customer.

7. Now AXIS taking steps to increase the safety level of their

customer.

BIBLIOGRAPHY

REFERENCE BOOKS:

1) Zeithamal V. A., Gremler D.D., Bitner M.J., and Pandit A.: “Service

Marketing Integrated Customer Focus Across The Firm”, Fourth Edition, pp.

156-172.

2) Zillur Rahman, “Service Quality: Gap in the Indian Bank Industry” The ICFAI

Journal of Marketing Management, Feb. 2005, pp 37-50.

WEBSITES:

1) ideas.repec.org/a/ipf/finteo/v31y2007i2p185-201

2) marketing.byu.edu/download/measurementanalysis/servqual

3) http://areas.kenan-flagler.unc.edu/Marketing/FacultyStaff/zeithaml/Selected

%20Publications/SERVQUAL-%20A%20Multiple-Item%20Scale%20for

%20Measuring%20Consumer%20Perceptions%20of%20Service

%20Quality.pdf

4) business.mapsofindia.com/banks-in-india

5) rbidocs.rbi.org.in/rdocs/Speeches/PDFs/86160.pdf

6) www.researchandmarkets.com/reports/4020/indian_banking_industry

7) www.mckinsey.com/locations/india/mckinseyonindia/pdf/india_banking_

2010.pdf

8) media.wiley.com/product_data/excerpt/34/04713931/0471393134.pdf

9) www.marketresearch.com/product/display.asp?productid=2156584&g=1

10) www.sbi.co.in/

11) www.AXISbank.com/

12) www.experiencefestival.com/banking_in_india_-_current_scenario

13) http://pmindia.nic.in/eac_report_09.pdf

QUESTIONNAIRE

Sr. no.____

Questionnaire

The data/information gathered through this questionnaire would be strictly used for

academic purpose only. All the responses and data will be kept CONFIDENTIAL.

Dear Sir/Madam,

I am the student of GLS-MBA conducting a study on SERVQUAL analysis of

banking sector with emphasis on State Bank of India and AXIS Bank.

SERVQUAL for AXIS

Please rate the following 22 SERVQUAL instruments by circling the number from

“strongly disagree=1” to “strongly agree=7” accordingly to your perception.

1 Modern looking equipment 1 2 3 4 5 6 7

2 Visually appealing physical facilities 1 2 3 4 5 6 7

3 Neat-appearing employees 1 2 3 4 5 6 7

4 Visually appealing materials associated with the service 1 2 3 4 5 6 7

5 Keeping promise to do something by a certain time 1 2 3 4 5 6 7

6 Showing sincere interest in solving a customer’s problems 1 2 3 4 5 6 7

7 Performing the service correctly the first time 1 2 3 4 5 6 7

8 Providing the service at the time the service was promised 1 2 3 4 5 6 7

9 Insisting on error-free records 1 2 3 4 5 6 7

10 Employees telling customers exactly what services will be performed 1 2 3 4 5 6 7

11 Employees giving prompt service to customers 1 2 3 4 5 6 7

12 Employees always being willing to help customers 1 2 3 4 5 6 7

13 Employees are never too busy to respond to customers’ requests 1 2 3 4 5 6 7

14 The behavior of employees instilling confidence in their customers 1 2 3 4 5 6 7

15 Customers feeling safe in their transactions 1 2 3 4 5 6 7

16 Employees being consistently courteous with their customers 1 2 3 4 5 6 7

17 Employee having the knowledge to answer customers’ questions 1 2 3 4 5 6 7

18 Giving customers individual attention 1 2 3 4 5 6 7

19 Operating hours convenient to all their customers 1 2 3 4 5 6 7

20 Employees giving customers personal attention 1 2 3 4 5 6 7

21 Having the customers’ best interests at heart 1 2 3 4 5 6 7

22 The employees understanding the specific needs of customers 1 2 3 4 5 6 7

Personal Information

1. Gender

Male Female

2. Age

25 years and below 26-35 years

36-45 years Above 45 years

3. Education

Below H.Sc. Completed school education

Graduate Post Graduate

4. Occupation

Own business Government employee

Professional Student

Housewife Other

5. Income

Less than 1 lakh p.a. 1-3 lakh p.a.

3-5 lakh p.a. More than 5 lakh p.a.

Sr. no.____

Questionnaire

The data/information gathered through this questionnaire would be strictly used for

academic purpose only. All the responses and data will be kept CONFIDENTIAL.

Dear Sir/Madam,

I am the student of GLS-MBA conducting a study on SERVQUAL analysis of

banking sector with emphasis on State Bank of India and AXIS Bank.

SERVQUAL for SBI

Please rate the following 22 SERVQUAL instruments by circling the number from

“strongly disagree=1” to “strongly agree=7” accordingly to your perception.

1 Modern looking equipment 1 2 3 4 5 6 7

2 Visually appealing physical facilities 1 2 3 4 5 6 7

3 Neat-appearing employees 1 2 3 4 5 6 7

4 Visually appealing materials associated with the service 1 2 3 4 5 6 7

5 Keeping promise to do something by a certain time 1 2 3 4 5 6 7

6 Showing sincere interest in solving a customer’s problems 1 2 3 4 5 6 7

7 Performing the service correctly the first time 1 2 3 4 5 6 7

8 Providing the service at the time the service was promised 1 2 3 4 5 6 7

9 Insisting on error-free records 1 2 3 4 5 6 7

10 Employees telling customers exactly what services will be

performed

1 2 3 4 5 6 7

11 Employees giving prompt service to customers 1 2 3 4 5 6 7

12 Employees always being willing to help customers 1 2 3 4 5 6 7

13 Employees are never too busy to respond to customers’ requests 1 2 3 4 5 6 7

14 The behavior of employees instilling confidence in their

customers

1 2 3 4 5 6 7

15 Customers feeling safe in their transactions 1 2 3 4 5 6 7

16 Employees being consistently courteous with their customers 1 2 3 4 5 6 7

17 Employee having the knowledge to answer customers’

questions

1 2 3 4 5 6 7

18 Giving customers individual attention 1 2 3 4 5 6 7

19 Operating hours convenient to all their customers 1 2 3 4 5 6 7

20 Employees giving customers personal attention 1 2 3 4 5 6 7

21 Having the customers’ best interests at heart 1 2 3 4 5 6 7

22 The employees understanding the specific needs of customers 1 2 3 4 5 6 7

Personal Information

1. Gender

Male Female

2. Age

25 years and below 26-35 years

36-45 years Above 45 years

3. Education

Below H.Sc. Completed school education

Graduate Post Graduate

4. Occupation

Own business Government employee

Professional Student

Housewife Other

5. Income

Less than 1 lakh p.a. 1-3 lakh p.a.

3-5 lakh p.a. More than 5 lakh p.a.