Download - Marketing Stragegy of Axis Bank

8/6/2019 Marketing Stragegy of Axis Bank

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SYNOPSIS

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SYNOPSIS

This project discusses marketing strategies of Axis bank and its competitors.

The researcher has talked about the products and services offered by the

company and the techniques of marketing towards its customers.

In chapter one, this project gives a brief introduction to the Indian Banking

industry. This chapter discusses the rapidly growing banking sector in India,

and various other points of importance.

In the introduction to the company, the history of the company is discussed

along with recent developments as well as its importance in India.In the research methodology chapter, the title of the project is given and

justified. The objective of the research is mentioned, scope and significance

of the research both to the company as well as to the researcher is explained.

The research technique and sampling method is given. Lastly the limitations

of the research have been mentioned.

In the facts and findings various sources through which information has been

collected are given.

Data analysis and interpretation is a combination reasons of the pie charts,

Graphs and conclusions derived from them.

Lastly the summary and conclusion describe the researchers personal

conclusions of the research.

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INTRODUCTION

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1 .1 OVERVIEW OF INDUSTRY AS A WHOLE

Indian Banking Sector

The Indian banking has come from a long way from being a sleepy business Institution

into a highly proactive and dynamic entity. This transformation has been largely brought

about by the large dose of liberalization and economic reforms that allowed banks to

explore new business opportunities rather than generating revenues from conventional

streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30

banking units contributing to almost 50% of deposits and 60% of advances. Indian

nationalized banks (banks owned by the government) continue to be the major lenders in

the economy due to their sheer size and penetrative networks which assures them highdeposit mobilization. The Indian banking can be broadly categorized into nationalized,

private banks and specialized banking Institutions. The Reserve Bank of India acts as a

centralized body monitoring any discrepancies and shortcoming in the system. It is the

foremost monitoring body in the Indian financial sector. The nationalized banks (i.e.

government-owned banks) continue to dominate the Indian banking arena. Industry

estimates indicate that out of 274 commercial banks operating in India, 223 banks are in

the public sector and 51 are in the private sector. The private sector bank grid also

includes 24 foreign banks that have started their operations here. Under the ambit of the

nationalized banks come the specialized banking institutions. These co-operatives, rural

banks focus on areas of agriculture, rural development etc., unlike commercial banks

these co-operative banks do not lend on the basis of a prime lending rate. They also have

various tax sops because of their holding pattern and lending structure and hence have

lower overheads. This enables them to give a marginally higher percentage on savings

deposits. Many of these cooperative banks diversified into specialized areas

(catering to the vast retail audience) like car finance, housing loans, truck finance

etc. In order to keep pace with their public sector and private counterparts, the co-

operative banks too have invested heavily in information technology to offer high-

end computerized banking services to its clients.

The Indian banking has finally worked up to the competitive dynamics of the new

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Indian market and is addressing the relevant issues to take on the multifarious challenges

of globalization. Banks that employ IT solutions are perceived to be futuristic and

proactive players capable of meeting the multifarious requirements of the large

customers base. Private banks have been fast on the uptake and are reorienting their

strategies using the internet as a medium The Internet has emerged as the new and

challenging frontier of marketing with the conventional physical world tenets being just

as applicable like in any other marketing medium.

The Reserve Bank of India (RBI) is Indias central bank. Though public sector banks

currently dominate the banking industry, numerous private and foreign banks exist.

India's government-owned banks dominate the market. Their performance has been

mixed, with a few being consistent profitable. Several public sector banks are being

restructured, and in some the government either already has or will reduce its ownership.

Private and Foreign Banks

The RBI has granted operating approval to a few privately owned domestic banks; of

these many commenced banking business. Foreign banks operate more than 150 branches

in India. The entry of foreign banks is based on reciprocity, economic and political

bilateral relations. An inter-departmental committee approves applications for entry and

expansion.

Capital Adequacy NormForeign banks were required to achieve an 8 percent capital adequacy norm by March

1993, while Indian banks with overseas branches had until March 1995 to meet that

target. All other banks had to do so by March 1996. The banking sector is to be used as a

model for opening up of Indias insurance sector to private domestic and foreign

participants, while keeping the national insurance companies in operation.

Banking

India has an extensive banking network, in both urban and rural areas. All large Indianbanks are nationalized, and all Indian financial institutions are in the public sector.

RBI Banking

The Reserve Bank of India is the central banking institution. It is the sole authority for

issuing bank notes and the supervisory body for banking operations in India. It supervises

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and administers exchange control and banking regulations, and administers the

governments monetary policy. It is also responsible for granting licenses for new ban

branches. 25 foreign banks operate in India with full banking Licenses. Several licenses

for private banks have been approved. Despite fairly broad banking coverage nationwide,

the financial system remains inaccessible to the poorest people in India.

Indian Banking System

The banking system has three tiers. These are the scheduled commercial banks; the

regional rural banks, which operate in rural areas, not covered by the scheduled banks;

and the cooperative and special purpose rural banks.

Scheduled and Now Scheduled Banks

The Indian banking can be broadly categorized into nationalized (government Owned),

Private Banks and specialized banking institutions, The Reserve Bank of India acts a

centralized body monitoring any discrepancies and shortcoming in the System. Since the

nationalization of banks in 1969, the public sector banks or the nationalized banks have

acquired a place of prominence and has since then seen tremendous progress. The need to

become highly customer focused has forced the slow-moving public sector banks to adopt

a fast track approach. The unleashing of products and services through the net has

galvanized players at all levels of the banking and financial institutions market grid to look

anew at their existing portfolio offering. Conservative banking practices allowed Indian

banks to be insulated partially from the Asian currency crisis. Indian banks are now

quoting at higher valuation when compared to banks in other Asian countries (viz. Hong

Kong,

Singapore, Philippines etc.) that have major problems linked to huge Non Performing

Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach

and armed with efficient branch networks focus primarily on the high revenue niche

retail segments.

There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200

regional rural banks; more than 350 central cooperative banks, 20 land development

banks; and a number of primary agricultural credit societies. In terms of business, the

public sector banks, namely the State Bank of India and the nationalized banks, dominate

the banking sector.

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MARKET SHARE

Types of Banks

State Bank of India and

Associates08

Nationalized Banks 19

Domestic Private Sector Banks 25

New Domestic Private Sector

Banks09

Foreign Banks 29

Complementing the roles of the nationalized and private banks are the specialized

financial institutions or Non Banking Financial Institutions (NBFIs). With their focused

portfolio of products and services, these Non Banking Financial Institutions act as an

important catalyst in contributing to the overall growth of the financial services

sector. NBFIs offer loans for working capital requirements, facilitate mergers and

acquisitions, IPO finance, etc. apart from financial consultancy services. Trends are now

changing as banks (both public and private) have now started focusing on NBFC domains

like long and medium-term finance, working cap requirements. IPO financing to etc. tomeet the multifarious needs of the business community.

Commercial FinancingCommercial Financing

7

80%

3%

5%6%

6%

National Banks

Corporation Banks

Private Banks

Multinational Banks

Money Lenders &

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The commercial financing model in Indian banking can be broadly categorized into

project finance and working capital finance. These two segments form the pivot around

which banks operate.

ProjectFinance

Banks offer long term and short terms loans to business houses, corporations to setup

their projects. These loans are disbursed after the approval from the banks core credit

validating committee. In India, there are 11 national level land 46 state level financial

and investment institutions that cater to long term funding requirements of the industry.

The project finance segment is highly competitive with various players

Offering innovative schemes to entice corporate.

Working Capital

In order to meet the diverse needs and requirements of the business community, banks

offer working capital funds to corporate. Working capital finance is specialized line of

business and is largely dominated by the commercial banks. The Indian banking saw

dramatic changes in the last decade or so ever since the advent of liberalization and

Indias integration with the world economy. These economic reforms and the entry of

private players saw nationalized banks revamp their service and product portfolio to

incorporate new, innovative customer-centric schemes. The Indian banking finally woke

up to the surging demands of the ever-discerning Indian consumer. The need to become

highly customer focused (generated by high competitive levels) forced the slow-moving

public sector banks to adopt a fast track approach. Taking a leaf out of the private sector

banks, the public sector banks too went for major image changes (including corporate

brand building exercises) and customer friendly schemes. These customer friendly

programs included revamping of the product and service portfolio by introducing new

product & service schemes (like credit cards, hassle-free housing loan schemes,

educational loans and flexi-deposit schemes) integration of the branch network by using

advance networking technology and customer personalization programs (through ATMs

and anytime banking etc.). Many banks have started capitalizing on the recent stock

market surge by adding (Initial Public Offering) IPO financing options and schemes in

their product mix. IPO finance has received a positive response from the investors and

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is becoming popular amongst the business community. The objective of all these

strategies was very clear to bridge the service & product gap that was inherent in the

banking system. To cater to the increasing customer demands and the surge in business

volumes, many public sector banks have ploughed back funds to invest heavily in

technology upgrades and

systems like LANs, WANs, VSATs etc. Marketing and brand building programs were

also given a new thrust in the new liberalized banking scenario. Promotional budgets

were hiked to cater to the new and large discerning target audience. Banks were now

keen on marketing their products and service though various mediums to reach their core

customers. Direct marketing, Internet marketing, hoarding, press ads, television

sponsorships, image makeovers etc. became an integral part of a banks marketing mix.

To meet the personalized needs of the customer and in order to differentiate its services,

banks repositioned themselves in specialized fields, like housing loans, car finance,

educational loans etc. to optimally service the customer. Permission marketing became

the new strategy that banks began to propound i.e. feeding the customer (with his or her

consent) with product and service information and thereby enticing him towards the

banks product service portfolio.

New Generation BankingThe liberalize policy of Government of India permitted entry to private sector in the

banking, the industry has witnessed the entry of nine new generation private banks. The

major differentiating parameter that distinguishes these banks from all the other banks in

the Indian banking is the level of service that is offered to the customer. Verify the focus

has always been centered on the customer understanding his needs, preempting him and

consequently delighting him with various configurations of benefits and a wide portfolio

of products and services. These banks have generally been established by promoters of

repute or by high value domestic financial institutions. The popularity of these banks

can be gauged by the fact that in a short span of time, these banks have gained

considerable customer confidence and consequently have shown impressive growth rates.

Today, the private banks corner almost four per cent share of the total share of deposits.

Most of the banks in this category are concentrated in the high-growth urban areas in

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metros (that account for approximately 70% of the total banking business). With

efficiency being the major focus, these banks have leveraged on their strengths and

competencies viz.

Management, operational efficiency and flexibility, superior product positioning and

higher employee productivity skills. The private banks with their focused business and

service portfolio have a reputation of being niche players in the industry. A strategy that

has allowed these banks to concentrate on few reliable high net worth companies and

individuals rather than cater to the mass market. These well-chalked out integrates

strategy plans have allowed most of these banks to deliver superlative levels of

personalized services. With the Reserve Bank of India allowing these banks to operate

70% of their businesses in urban areas, this statutory requirement has translated into

lower deposit mobilization costs and higher margins relative to public sector banks.

Capital Market

Stock market volatility touches every participant directly/indirectly in the capital market.

General feeling is that the stock markets worldwide have become very fragile in the recent

past on account of various developments such as Asian crisis. Brazil Real fall and Russian

debacle. Many far-reaching stock reforms have been introduced in the Indian market for

the last few years. These reforms, in turn, changed market structure. Changing market

structure influences nature of stock price behavior.

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COMPANY PROFILE

ABOUT AXIS BANK

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

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

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

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

Corporation of India (GIC) and other four PSU insurance companies, i.e. National

Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental

Insurance Company Ltd. and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding

(other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at

Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices

and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a

day banking convenience to its customers. This is one of the largest ATM networks in the

country.

The Bank has strengths in both retail and corporate banking and is committed to adopting

the best industry practices internationally in order to achieve excellence.

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.

SUUTI - Shareholding 27.11%

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

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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.

Shareholding PatternAs on 30/06/2008

Sr.

No.

Name of the Shareholders No. of

Shares Held

% Staketo

Total

A. Promoter Shareholding

1. Administrator of the Specified Undertaking of the

Unit Trust of India -UTI - I (SUUTI)

9,72,24,373 27.11

2. Life Insurance Corporation of India 3,71,95,831 10.37

3. General Insurance Corporation of India 81,23,331 2.27

4. The New India Assurance Company Limited 38,06,443 1.06

5. National Insurance Company Limited 26,81,740, 0.75

6. United India Insurance Company Limited 16,16,415 0.45

7. The Oriental Insurance Company Limited 14,89,118 0.42

Total Promoter Shareholding A 15,21,37,251 42.43

B. Non-Promoter Holding

8. Indian Financial Institutions (IFIs) 37,23,819 1.04

9. Mutual Funds 2,90,63,376 8.11

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10. Others (Individuals/Corporate

Bodies/HUF/Trusts/Banks)

4,24,54,676 11.84

Total Non-Promoter Indian Shareholding - B 7,52,41,871 20.99

C. Foreign Shareholding

11. FDI Route - GDRs Issue (2005 & 2007) 1,36,72,028 3.81

12. Foreign Financial Institutions (FIIs) 11,19,02,720 31.21

13. NRIs/OCBs/FBD 56,10,661 1.56

Total Non-Promoter Foreign Shareholding - C 13,11,85,409 36.58

Total A + B + C 35,85,64,531 100.00

Board of Directors

The Bank has 10 members on the Board. Dr. P. J. Nayak is the Chairman and CEO of the Bank.

The members of the Board are:

Dr. P.J. Nayak Chairman & CEO

Shri N.C. Singhal Director

Shri A.T. Pannir Selvam Director

Shri J.R. Varma Director

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri M.V. Subbiah Director

Shri Ramesh Ramanathan Director

Shri K. N. Prithviraj Director

Milestones

Mar-08 Axis Bank launches Platinum Credit Card, India's first EMV chip based card

Dec-07 Axis Bank gets AAA National Long-Term Rating from Fitch Ratings

Sept-07 Axis Bank ties up with Banque Prive Edmond de Rothschild Europe for Wealth

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Management

July-07 UTI Bank re-brands itself as Axis Bank

July-07 UTI Bank successfully raises USD 1050 million

July-07 UTI Bank ties up with Tata Motors Ltd. for Car Loans

June-07 UTI Bank's expansion into Asia supported by FRS

May-07 UTI Bank launches 'Spice Rewards' on the bankcards - India's first-ever merchant-

supported rewards program

April-07 UTI Bank opens a Financial Services Category I Branch in the DIFC in Dubai

Mar-07 UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans

Mar-07 UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the

country

Mar-07 UTI Bank launches Car Loans in association with Maruti Udyog Ltd

Mar-07 UTI Bank opens a Full Licence Bank Branch in Hong Kong

Feb-07 Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank Co -

Branded Credit Card Exclusively For Small Road Transport Operators (SRTOS)

Feb-07 UTI Bank announces the launch of its Meal Card

Feb-07 UTI Bank announces the launch of its Gift Card

Feb-07 LIC Premium payment now through UTI Bank Branches

Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov-06 UTI Bank opens Priority Banking Lounge in Pune

Sep-06 UTI Bank launches operations of UBL Sales, its Sales Subsidiary - Inaugurates its

first office in Bangalore

Aug-06 UTI Bank announces the launch of its Credit Card Business

Aug-06 UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency

Hybrid Capital in the International Market

Aug-06 UTI Bank Business Gold Debit Card MasterCard Launched - Designed for

business related spending by SMEs and self employed professionals

Aug-06 UTI Bank announces the scheme of issuance of "Senior Citizen ID Card" in

association with Dignity Foundation

Aug-06 UTI Bank rolls out its 2000th ATM

July-06 UTI Bank opens Representative Office in Shanghai

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May-06 UTI Bank and LIC join hands to launch an Annuity Card for group pensioners of

LIC

May-06 UTI Bank ties up with Geojit Financial Services to offer Online Trading service to

its customers

Apr-06 UTI Bank opens its first international branch in Singapore

Jan-06 UTI Bank and UTI Mutual Fund to launch a new service for sale and redemption

of mutual fund schemes through the Bank's ATMs across the country

Dec-05 UTI Bank wins International Financing Review (IFR) Asia 'India Bond House'

award for the year 2005

Oct-05 UTI Bank extends banking services to the rural milk producers in Anand and

Kheda districts in Gujarat

July-05 UTI Bank and Visa International launch Mobile Refill facility - Anytime,Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India

May-05 UTI Bank and Bajaj Allianz join hands to distribute general insurance products

Apr-05 UTI Bank launches Smart Privilege - a special bank account designed for women

Mar-05 MTNL ties up with UTI Bank for payment of telephone bills through the Bank's

ATM network

Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million

through Global

Mar-05 Depositary Receipts (GDRs)

Feb-05 UTI Bank appointed by Government of Karnataka as the sole banker for the

Bangalore One (B1) project

Feb-05 UTI Bank launches a powerful version of Kisan Credit Card

Jan-05 UTI Bank ties up with Remit2India to launch the Remittance Card

Mar-04 UTI Bank enables premium payment of LIC policies through its ATMs.

Feb-04 Bilateral arrangement between State Bank of India (and its 7 associate member

banks) and UTI Bank. comes into force with the commencement of operations (as

on 3rd February '04) of the combined network of over 4000 ATMs

Feb-04 UTI Bank (by pursuing a proactive strategy of forging bilateral agreements and

being a progressive player in the multi-lateral consortiums for shared ATM

network) offers its customers access to over 7000 ATMs across the country - the

largest to be offered by any bank in India so far.

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Dec-03 Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This ATM

is at the highest altitude in India.

Sep-03 The Bank's ATMs across the country crosses the thousand mark

Sep-03 Bank launches the Travel Currency Card.

Aug-03 The Bank's Debit Card crosses the one million mark.

Aug-03 Total Advances cross Rs 7,000 Crore.

May-03 Bank declares a net profit of Rs 192.18 crores for FY03, a growth of 43% over the

previous year

Mar-03 Bank signs Agreement with Employees Provident Fund Organization (EPFO) for

disbursement of Pension

Mar-03 Bank crosses the 800 ATM mark

Mar-03 The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs. 164.00

crores, through a

Mar-03 Preferential offer to Life Insurance Corporation of India (now constituting 13.54%

of

Mar-03 the Bank's expanded equity), Citicorp Banking Corporation, Bahrain (holding

3.84%), ChrysCapital I,

Mar-03 LLC, Mauritius (holding 3.84%) and Karur Vysya Bank Ltd.(constituting 1.00%)

The Bank also

Mar-03 Increases the authorised share capital of the Bank from Rs. 230 crores to Rs. 300

crores.

Feb-03 Bank, in a pioneering move, launches the AT PAR Cheque facility, free of cost,

for all its Savings Bank customers.

Feb-03 Bank wins mandate to set up 14 ATMs at the Western Railway stations along the

Mumbai division.

Oct-02 Bank launches Corporate iConnect? - the Internet Banking facility for Corporates

Aug-02 Bank signs MoU with BSNL regarding bill collection services across the country

through both online and offline channels.

Apr-02 Bank opens its 500th ATM

Mar-02 Deposits Cross Rs.12, 000 Crore

Jan-02 The Bank's 100th branch opens at Tuticorin,Tamilnadu

Jan-02 The Bank opens an ATM at the Gol Dak-Khana, i.e. the New Delhi GPO, making

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it the first instance of a commercial bank setting up an ATM at any post-office in

the country.

Dec-01 Total Advances cross Rs 5,000 Crore

Nov-01 The deposit base for the Bank crosses Rs. 10,000 Crore

Sep-01 Private placement of 26% stake in the Bank to CDC Capital Partners. UTI holding

reduces to 44.88%

Aug-01 Bank signs MoU with India Post for introducing value added financial products

and services to customers of both organizations, including setting up of UTI Bank

ATMs in post offices.

July-01 Bank ties up with Govt of Andhra Pradesh for collection of commercial tax

Dec-00 Bank opens its 200th ATM. It becomes the 2nd largest ATM network in the

country, a position held even today.Oct-00 Bank becomes fully networked

July-00 E-commerce initiatives announced

July-00 Financial Advisory Services offered beginning with marketing of US 64

Apr-00 UTI Bank calls off its proposed merger with Global Trust Bank and surges ahead

on its own.

Apr-00 Bank launches its Internet banking module, iConnect Retail loans introduced for

the first time by the Bank

Mar-00 Profits cross Rs 50 crore mark for the first time.

Feb-00 Bank adopts Finacle software from Infosys for core banking

Jan-00 Dr.P.J Nayak takes over as Chairman and Managing Director from Shri Supriya

Gupta.

Sep-99 Cash management services (CMS) launched, Co branded credit card launched

Mar-99 Deposits cross Rs.3000 crores

Sep-98 UTI Bank goes public with a Rs. 71 crore public issue; Issue over-subscribed 1.2

times, over 1 lakh retail investors. UTI holding reduces to 60.85%

Jun-96 Crosses Rs.1000 crore deposit mark

Mar-95 Completes first profitable year in operation

Apr-94 First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan Singh,

Hon'ble Finance Minister, Government of India.

Dec-93 UTI Bank comes into being

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Dec-93 Registered office at Ahmedabad; Head office at Mumbai

Chairman & CEO's Message

Welcome to the website of Axis Bank. Whether you are a customer or a visitor to thissite, let me tell you a little about the Bank and the various services which it offers.

At Axis Bank, it has been our constant endeavour to bring a sharper focus to the

requirements of our customers and we strive to leverage cutting-edge technology to

provide the highest levels of service to you. We are one of the few banks in India which

has built up a fully integrated centralised banking architecture to offer you banking

services anywhere, anytime. Our Internet banking initiative also provides convenience

and real time transaction services. We recognize the importance of the Internet as an

increasingly indispensable medium of communication and commerce. We endeavour,

therefore, to bring to you through this website a whole range of banking services. At

present our Internet Banking module, iConnect, allows you to view all your accounts

with us, including savings, current and depository accounts, for transactions and balance

details, and to transfer funds between accounts within the Bank. We provide facilities for

bill payments, NRI services, a shopping mall, financial advice and retail loans. Through

our Bill Pay service on the net, you can pay your bills online. At the Shopping Mall you

can shop online. The NRI Services channel offers remittance facilities and a lot more to

Non-Resident Indians.

Notwithstanding the immense benefits that Internet Banking brings, the Bank also has

other distribution channels. At the end of June 2008, the Bank increased its reach to 433

cities, towns and villages across the country through 713 Branches & Extension Counters

and 2904 ATMs. The Bank offers a complete range of retail and corporate services,

including retail loans, corporate and business credit, forex and trade finance services,

investment banking, depository services and investment advisory services. Our deposit

base currently stands at over Rs. 88,900 crores with over 89 lakh accounts.

The Bank's International Debit Card, which comes with the Savings Bank Account,

personalised and carrying a unique insurance cover for every account holder, has

received an excellent response from customers, with over 90 lakh debit cards having been

issued as at end June 2008. We were the first bank to offer the AT PAR Cheque facility,

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free of cost, to all our Savings Bank customers in all the places across the country where

the Bank is currently present. By virtue of this facility, customers can now use the AT

PAR cheque to make cheque payments (upto a ceiling of Rs. 50,000/- per instrument) to

any beneficiary at any of these places. We also offer the international Travel Currency

Card in eight currencies. The Travel Currency Card is a signature based pre-paid travel

card that enables travelers global access to their money, in the local currency of the

country they are visiting, in a safe and convenient way.

The Bank launched its Credit Card in Gold and Silver variants in August 2006, and these

are presently available in 56 cities across the country. Our latest offering is India's first

EMV standard based Platinum Credit Card.

I welcome you to Axis Bank and hope that you enjoy surfing through our website. And if

you are not already our customer, I invite you to become one, and to enjoy the Axis Bank

experience.

P.J. Nayak

Chairman & CEO

Our Mission and Values

Our Mission

Customer Service and Product Innovation tuned to diverse needs of individual and

corporate clientele.

Continuous technology upgradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through

Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality stressed on

Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People

Compensation Policy

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Objective of the Policy

The objective of this policy is to establish a system whereby the Bank compensates the

customer for any financial loss he/she might incur due to deficiency in service on the partof the Bank or any act of omission or commission directly attributable to the Bank

subject to the terms prescribed under Paragraphs on 'Award of Compensation' and 'Force

Majeure' at the end.

Scope of the Policy

The Policy is based on principles of transparency and fairness in the treatment of our

customers.

The Policy prescribes compensation only for financial losses which customers have

incurred due to deficiency in the services offered by the Bank which can be measured

directly and limited to compensation specified for respective service as given below. As

such, the commitments under this Policy are without prejudices to any of the rights the

Bank has/will have in defending its position before any forum duly constituted to

adjudicate the banker-customer disputes.

The policy covers areas relating to:

a. Erroneous debiting of account

b. Debits towards service charges

c. Payment of cheques after acknowledgement of stop payment instructions

d. Payment of interest to customers for delayed collection of instruments

e. Collection instruments lost in transit

f. Funds transfers using NEFT/RTGS

g. Foreign exchange services

h. Failure to execute standing instructions

Erroneous debiting of account

If the Bank has raised an erroneous direct debit to an account, the entry shall be reversed

immediately on being informed of the erroneous debit after verifying the transaction.

In the event, the erroneous debit has resulted in a financial loss to the customer by way of

reduction in the minimum balance applicable for payment of interest on Savings Bank

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deposit or payment of additional interest to the Bank in a loan account, the Bank shall

compensate the customer to the extent of such interest loss.

Erroneous transactions reported by customers in respect of Credit Card operations which

require reference to a merchant establishment will be handled as per the rules laid down

by the Card Association. Where a third bank is involved, compensation would be subject

to availability of information from the other bank.

Reversal of Erroneous Debits arising on Fraudulent or Other

Transactions

In case of any fraud, if the Bank is convinced that an irregularity/fraud has been

committed by its staff towards any constituent, it will at once acknowledge its liability

and pay the just claim.

In cases where the Bank is at fault, it will compensate the customer without demur.

In cases where neither the Bank nor the customer is at fault, but the fault lies elsewhere in

the system, the Bank will compensate the customers upto a limit of 25% of the loss

incurred by the customer subject to a ceiling of Rs 25,000/-. This will, however, not

preclude a higher compensation being paid outside of this policy, depending on the merits

of the case.

Bankers Fair Practice Code

About this code

This is a voluntary Code, which sets standards of fair banking practices for member

banks of Indian Banks' Association to follow when they are dealing with individual

customers. It provides valuable guidance to you for your day-to-day operations. The

Code applies to:

Current, savings and all other deposit accounts

Pension, ppf accounts etc. Operated as agents of rbi/government

Collection and remittance services offered by the banks

Loans and overdrafts

Foreign-exchange services

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Card products

Third party products offered through our network.

As a voluntary Code, it promotes competition and encourages market forces to achieve

higher operating standards for the benefit of customers. In the Code, 'you' denotes the

customer and 'we' the bank, the customer deals with. The standards of the Code are

covered by the four key commitments found in section 2. Unless it says otherwise, all

parts of this Code apply to all the products and services listed above, whether they are

provided by branches across the counter, over the phone, by post, through interactive

electronic devices, on the internet or by any other method.

Commitments outlined in this Code are applicable under normal operating environment.

In the event of force majeure, we may not be able to fulfill the commitments under this

Code.

This code shall come into effect from 1st September, 2004.

Key Commitments

Our key commitments to you

We promise to:

Act fairly and reasonably in all our dealings with you by:

meeting the commitments and standards in this Code, 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 our dealings with you will rest on ethical

principles of integrity and transparency.

Help you to understand how our financial products and services work by Giving you

information about them in plain Hindi and/or English and/or the local language

Explaining their financial implications and Helping you choose the one that meets your

needs.

Deal quickly and sympathetically with things that go wrong by:

Correcting mistakes quickly

Handling your complaints quickly

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Looking on 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 when we will pay interest on your deposits or debit interest

on your loan accounts. We will also tell you our website address, and the other ways in

which you can find out about changes in the interest rates.

We will explain how we apply interest to your account.

Changes in Interest Rates

When we change the interest rates on our products, we will update the information on our

website within three working days.

Interest on Savings Accounts

At the time of opening of the account, we will inform you of the rate at which interest is

paid on your savings deposits [presently, it is regulated by Reserve Bank of India], how it

is calculated and its periodicity.

Charges

When you become a customer, we will give you upfront 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 where you have

your account looking on our website.

If we increase any of these charges or introduce a new charge, it will be notified at least

one month before the revised charges are levied / become due.

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

service or product, and at any time you ask.

We will give you details of any charges we levy for using ATMs.

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Terms and Conditions

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

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

All written terms and conditions will be fair and will set out your rights and

responsibilities clearly and in plain language. We will only use legal or technical

language where necessary.

Changes to Terms and Conditions

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

conditions through our quarterly statement of accounts and the Bank's Website.

Normally, changes [other than interest rates] will be made with prospective effect giving

notice of at least one month. 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.

Changes in the interest rates on our products [deposits and advances] from time to time

will be notified as per the Bank's policy/practice.

Advertising and Marketing

We will make sure that all advertising and promotional material is clear, fair, reasonable

and not misleading.

We 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 products, some

of which are our own products while some others are the products of our

group/associate/entities or companies with whom we have tie-up arrangements. We will

however tell you about our associate / group entities or companies having business tie-up

arrangements with us and if you so desire, direct their staff / agents for marketing their

products.

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Account Operations

Statements

To help you manage your account and check entries on it, we will give you account

statements at regular intervals unless this is not appropriate for the type of account you

have [like an account where you have a passbook].

We will normally provide you with a statement periodically as per our policy. S/B

account statements are directly sent to customers address at quarterly intervals, and

Current account statement normally at monthly intervals. A customer may also obtain

monthly statement on S/B account from a branch on request.

You will also be able to see your last few transactions on ATM or through your internetaccount wherever such facilities are available with us.

We will also send you statement of accounts by e-mail, if you so desire, provided we

have such facility with us.

Clearing Cycle / Collection Services

We will tell you about the clearing cycle, including when you can withdraw money after

lodging collection instruments and when you will start to earn interest.

We will give immediate credit to your account for outstation cheques lodged by you and

will allow you to draw against such instrument[s] under collection as per prevailing RBI

guidelines. [Presently, instruments upto Rs.15,000 tendered by customers operating

accounts satisfactorily.]

We will pay interest on funds involved if collection is delayed beyond the normal period

as stipulated by RBI.

Cash Transactions

You should count notes and ensure correctness before leaving the cash counter.

Avoid writing anything on the face of the notes and co-operate with us by remitting notes

in unstapled / unstitched conditions as required under RBI's Clean Note Policy.

Direct debits and standing instructions

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We will act upon mandates given by you for direct debits [say ECS] and other standing

instructions.

Cheques issued by you

We will keep original cheques paid from your account or copies, for such periods as

required by law.

If, within a reasonable period after the entry has been made on your statement, there is a

dispute about a cheque paid from your account, we will give you the copy of the cheque

as evidence.

We will tell you how we will deal with unpaid cheques and out-of-date [stale] cheques.

Accounts operated/services rendered as agents of Government and RBI [applicable only

to banks authorized to handle the business]

While opening Pension Accounts or investing in Relief / RBI Bonds, we will tell you

about operational guidelines for such accounts / transactions.

Foreign exchange services offered through authorized offices

We will provide you details of the service, exchange rates and charges that apply to

foreign exchange transactions, which you are about to make. If this is not possible, we

will tell you how these will be worked out.

If you want to transfer money abroad, we will tell you how to do this and will give you:

A description of the services and how to use them details of when the money you have

sent abroad should get there and the reasons for possible delays the exchange rate applied

when converting to the foreign currency, and details of any commission or charges which

you will have to pay. If money is transferred to your bank account from abroad, we will

tell you the original amount received and charges, if any. If the sender has paid all

charges, we will not deduct charges when we pay the money into your account excepting

what is charged by our Foreign Correspondent Bank.

We will guide you about regulatory requirements or conditions relating to foreign

exchange services offered by us as and when required by you.

Protecting your Account

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We will tell you what you can do to help protect your accounts. You can find out more

about what you can do to help in section 11 of this Code.

In the event your cheque book, passbook or ATM/Debit card has been lost or stolen, or

that someone else knows your PIN or other security information, we will, on your

notifying us, take immediate steps to try to prevent these from being misused.

Cards and PINs

We will only send you a card if you ask for one or to replace a card you already have.

If you do not recognize a card transaction that appears on your statement, we will provide

you with more details. In some cases, we will need you to give us confirmation or

evidence that you have not authorized a transaction.

We will give you your PIN [Personal Identification Number] separately from your card.

We will not reveal your PIN to anyone else.

We will tell you about our systems to allow you to choose or change your PIN. This

should make it easier for you to remember the PIN of your choice.

Protection

ConfidentialityWe will treat all your personal information as private and confidential [even when you

are no longer a customer]. We will not reveal transaction details of your accounts to a

third party, including entities in our group, other than in the following four exceptional

cases when we are allowed to do

If we have to give the information by law

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

If our interests require us to give the information [for example, to prevent fraud] but we

will not use this as a reason for giving information about you or your accounts [including

your name and address] to anyone else, including other companies in our group, for

marketing purposes

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If you ask us to reveal the information, or if we have your permission to provide such

information to our group/ associate /entities or companies when we have tie-up

arrangements for providing other financial service products.

Wherever we have installed CCTV for close surveillance as part of security

arrangements, the same will be indicated.

What You Can Do To Protect Your Accounts

This section is all about what you can do to help prevent your accounts being misused.

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

We recommend that you check your statement or passbook regularly. If there is an entry,

which seems to be wrong, you should tell us as soon as possible so that we can sort it out.

If we need to investigate a transaction on your account you should co-operate ith us and

the police or any other authority, if we need to involve them.

Taking Care

Taking care of your cheques, passbook, cards, PINs 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 and cards together

Do not keep the blank cheque leaves signed

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

If you change your PIN you should choose your new PIN carefully

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Always learn your PIN, password and other security information, and destroy the notice

as soon as you receive it

Never write down or record your PIN, password or other security information

Always take reasonable steps to keep your card safe in your personal custody and your

PIN, password and other security information secret at all times

Keep your card receipts safe and dispose them of carefully

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 send a cheque through the post, it will help to prevent fraud if you clearly write the

name of the person you are paying the cheque to. Write such cheques with carbon on the

reverse to avoid chemical alterations

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.

Precautions While Using Internet Banking Facilities

Visit our internet banking site directly. Avoid accessing the site through a link from

another site and verify the domain name displayed to avoid spoof websites.

Ignore any e-mail asking for your password or PIN.

We advise you not to use cyber cafs to access our internet banking site.

We advise you to update your PC with latest anti-virus software regularly. A suitable

firewall installed in a computer to protect your PC and its contents from outsiders on the

internet would be an added security measure.

What to do if you lose your cheque book, passbook, or card, or if someone else knows

your PIN It is essential that you tell us as soon as you can if you suspect or discover that:

your cheque book, passbook, card has been lost or stolen or someone else knows your

PIN, password or other security information.

The best way of telling us about the loss will usually be by phone, using the numbers we

have given you, or by e-mail to the address we have given you for this purpose.

Alternatively, you may send a written communication to us immediately.

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Canceling Payments

If you want to cancel a payment or series of payments you have authorized, 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 either tell the originator of the direct debit or tell us. We

recommend you do both. It may not be possible to cancel payments if you do not give

enough notice of your decision to cancel.

Liability for Losses

If you act fraudulently, you will be responsible for all losses on your account. If you act

without reasonable care, and this causes losses, you may be responsible for them.

Unless you have acted fraudulently or without reasonable care, your liability for the

misuse of your card will be limited as indicated by us while issuing the card.

Loans and Advances

Before we lend you any money or increase your overdraft, credit card limit or other

borrowing, we will assess whether we feel you will be able to repay it.

If we 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.

Grievance Redressal Mechanism of the Bank

The Bank is committed to extend the best possible services to its customers. However, if

you are not satisfied with our services and wish to lodge a complaint, please feel free to

click here.

After examining the matter in detail, we will send you our final response within a period

of 8 working days from the date of receipt of your complaint by us. In case the resolution

is likely to take longer time, we will inform you of the same through an interim reply.

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If you are not satisfied with the resolution of your grievance(s) or your complaint is not

responded to, you can escalate your complaint to the Complaints Management Team, at

Central Office by mailing to [email protected]

After examining the matter, we will send you our final response within a period of 8

working days from the date of receipt of your complaint by us at Central Office. In case

the resolution is likely to take longer time, we will inform you of the same through an

interim reply.

If you are a customer of any of our overseas branch, you can escalate your complaint to

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

[email protected]


working days from the date of receipt of your complaint by the President, International

Banking Department at Central Office. In case the resolution is likely to take longer time,

we will inform you of the same through an interim reply.

If the resolution still does not meet your expectations, you can write to the Chief

Compliance Officer by mailing to [email protected]


working days from the date of receipt of your complaint by the Chief Compliance

Officer. In case the resolution is likely to take longer time, we will inform you of the

same through an interim reply.

Within 30 days of lodging a complaint with us, if you do not get a satisfactory response

from us and you wish to pursue other avenues for redressal of grievances, you may

approach Banking Ombudsman appointed by Reserve Bank of India under Banking

Ombudsman Scheme. Details of Banking Ombudsman are displayed in the branch notice

board. Our staff would explain the procedure in this regard.

Debits towards service charges

In the event any charge is levied in violation of the arrangement, the Bank will reverse

the same when pointed out by the customer subject to verification of the agreed terms and

conditions.

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Where it is established that the Bank had issued and activated a Credit Card without the

written consent of the recipient, the Bank would reverse the charges immediately.

Payment of Cheques after acknowledgement of Stop Payment Instructions

In case a cheque has been paid, after stop payment instruction is acknowledged by the

Bank, the transaction shall be reversed within 2 working days of the customer intimating

the transaction to the concerned branch. Interest, if eligible, shall also be paid.

Collection of instruments within India

In case of outstation cheques and other instruments sent for collection to centres within

the country, the following time schedule shall be adhered to for realization by branches:

a. For local cheques the time lines for local clearing will apply.

b. For outstation cheques there will be the following two categories of time lines:-

i. Cheques drawn on Axis Bank centers other than in the North Eastern states to be

credited within 7 working days.

ii. Cheques drawn on Axis Bank centres in the North Eastern states to be credited within

10 working days.

For non-Axis Bank centres, the Bank shall ensure collections on a 'Best effort' basis as it

will have to depend on the correspondent/drawee banks for this purpose. Accordingly, an

outer limit of 21 working days has been provided for the purpose of collection from these

centres.

In case there is delay in realization beyond the time lines mentioned above, the Bank will

pay compensation at the Savings Bank rate of interest for any delay beyond the stipulated

period for collection on the amount of the instrument.

There shall be no distinction between instruments drawn on the Bank's own branches or

on other banks for the purpose of payment of interest on delayed collection.

Collection of instruments Lost-in-transit

The Bank would observe the following policy in case of cheques lost in transit:

a. In respect of cheques lost in transit or in the clearing process or at the paying bank's

branch, the branch should immediately bring the same to the notice of the accountholder

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so that the accountholder can inform the drawer to record 'stop payment' and can also

take care that other cheques issued by him are not dishonoured due to non-credit of the

amount of the lost cheques/instruments.

b. The branch will reimburse the accountholder with related expenses for obtaining

duplicate instruments and also pay interest for reasonable delays occurred in obtaining

the same.

c. If the cheque/instrument has been lost at the paying bank's branch, the collecting

branch will have a right to recover the amount reimbursed to the customer for the loss of

the cheque/instrument from the paying banker.

d. The Bank will compensate the account holder in respect of instruments lost in transit in

the following way:-

i. In case intimation regarding loss of instrument is conveyed to the customer after the

time limit stipulated for collection for various centres, interest will be paid for the period

exceeding the stipulated collection period at the savings bank rate of interest.

ii. In addition, the Bank will pay interest on the amount of the cheque for a further period

of 15 days at savings bank rate to provide for likely further delay in obtaining duplicate

cheque/instrument and collection thereof.

iii. The Bank would also compensate the customer for any reasonable charges he/she

incurs in getting duplicate cheque/instrument upon production of receipt, in the event the

instrument is to be obtained from a Bank/institution who would charge a fee for issue of

duplicate instrument.

In the event a cheque or an instrument accepted for collection is lost-in-transit or in the

clearing process or at the paying bank's branch (after it has been handed over to the bank

for collection by the customer), the Bank shall, immediately on coming to know the loss,

bring the same to the notice of the account holder so that he/she can inform the drawer to

record stop payment and also take care that cheques, if any, issued by him/her are not

dishonoured due to non-credit of the amount of lost cheques/instruments. The bank

would provide a certificate to evidence the loss of instrument to enable the customer to

obtain a duplicate from the drawer.

Funds transfers using NEFT/RTGS

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The rate of compensation in case of delays in crediting the remittance proceeds received

through NEFT/RTGS beyond one day after receipt of the message at our gateway shall be

at the prevailing Repo Rate.

Foreign Exchange Services

It is the Bank's experience that the time norms for collection of instruments drawn on

banks in foreign countries differ from country to country and even within a country, from

place to place. The time norms for return of instruments cleared provisionally also vary

from country to country. Therefore, no compensation shall be paid for any delay in

collection of cheques designated in foreign currencies and sent to foreign countries.

The Bank will compensate the customer for undue delays in affording credit once

proceeds are credited to the Nostro Account of the Bank with its correspondent with full

particulars. The compensation in such cases shall be restricted to the extent of eligible

interest at Savings Bank rate which shall be calculated for the period after 30 days from

the date our Nostro account with the Correspondent bank has been credited.

The foreign exchange rate on the date of credit to our Nostro account shall be the basis

for calculation of interest irrespective of the rate prevailing on the date of

claim/calculation/ settlement.

Failure to execute Standing Instructions

In case of any failure to execute Standing Instructions (and if it is directly attributable to

the Bank), the Bank shall compensate the customer to the extent of the financial loss not

exceeding Rs.100 per occasion subject to providing proper supporting documents for

having incurred the loss. In addition, service charges, if any, recovered for execution of

the Standing Instruction shall also be refunded.

Award of Compensation

The compensation as per this Policy is payable to a customer only in those cases where

any act of omission or commission is directly attributable to the Bank.

No claim could be considered based on qualitative aspects like reputation damages, loss

of image in the society, loss of business, loss of income etc.

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Force Majeure

The Bank shall not be liable to compensate customers for delayed credit, if some

unforeseen event (including but not limited to civil commotion, sabotage, accident, fire,

natural disasters or other "Acts of God", war, damage to the bank's facilities or of its

correspondent bank(s), absence of the usual means of communication or all types of

transportation, etc.) beyond the control of the Bank which may prevent it from

performing its obligations within the specified service delivery parameters.

Axis Bank - Company Profile Snapshot

Company Profile: Axis Bank

Ticker: 532215

Exchanges: OTH BOM

2008 Sales: 88,162,000,000

Major Industry: Financial

Sub Industry: Commercial Banks

Country: INDIA

Employees: 9980

Business DescriptionAxis Bank formerly known as Uti Bank Ltd. The Group's principal activities are to

provide commercial banking services which include merchant banking, direct finance,

infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and

other related financial services. The Bank has 651 branches and 2,764 ATMs.

1 .2 P RO BL EM S O F T HE OR GA NI SA TI ON

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The erstwhile UTI Bank has changed its name to Axis Bank effective July 30, 2007. This

is the first time that a bank has gone in for a brand-change voluntarily; earlier names of

banks have been changed either due to a merger or an acquisition.

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

January 2008 as per Govt directives. Many unrelated shareholder entities like UTI

Technological Services, UTI Investor Services and UTI Securities were carrying the UTI

brand.7

Axis refers to a line of reference, stability and maturity. The new logo of the bank has the

same colour as the previous UTI logo but now uses the alphabet A from the word Axis.

The bank is also publicizing the change through campaign titled Twins both equal.

Axis Bank has business of Rs.102,000 crore with a market capitalization of Rs.21,817

crore making it the fifth largest in India. It has 60 lakh customers and communicating to

them the name change would be the prime exercise for the bank.

Immediately, the bank will replace signages in 8 metro cities while in other 250 cities by

September. It is also informing customers about the brand change though Internet and

mobile banking, ATM, call centres, newspapers and radio. Even elements like cheque

books, welcome kits, pay orders have been resigned to reflect the new look.

Now with a name having universal appeal, the bank would now work towards becoming

a multinational bank and diversifying into other financial services like AMC, insurance

and restructure operations to reflect a modern approach to banking.

However, the bank also has a task in its hand to communicate to the customers and public

about its nature as having a UTI name prefixed would have implied that it has been a

quasi-government bank. It would also have to educate about its shareholding to further

expand itself into the retail business.

1 .3 C OM PE TI TI ON I NF OR MA TI ON

Ranking BANK

1 CITY BANK 2 ICICI BANKING CORPORATION

3 HDFC BANK

4 AMERICAN EXPRESS

5 HSBC

6 STANDARD CHARTERED GRINDLAYS

7 STATE BANK OF INDIA

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8 CANARA BANK

9 IDBI BANK

10 BANK OF AMERICA

11 ABN- AMRO BANK

12 GLOBAL TRUST BANK

13 BANK OF INDIA14 CORPORATION BANK

15 BANK OF BARODA

16 DEUTSCHE BANK

17 PUNJAB NATIONAL BANK

18 BANK OF MAHARASHTRA

19 AXIS BANK

20 DENA BANK

21 BANK OF PUNJAB

22 BANK OF NOVA SCOTIA

23 CREDIT LYONNAIS

24 ANDHRA BANK 25 SYNDICATE BANK

26 UCO BANK

27 INDUSIND BANK

28 ORIENTAL BANK OF COMMERCE

29 BANK OF MADURA

30 KARUR VYSYA BANK

31 TAMILNADU MERCANTILE BANK

32 STATE BANK OF PATIALA

33 JAMMU & KASHMIR BANK

1.4 S.W.O.T ANALYSIS OF THE ORGANISATION STRENGHTS

Market position is strong

Aggressive foreign bank

Shareholders return has grown more than 7 times

Maintains a position as a leading Asian Cash Management provider

Brand Axis Bank modern and dynamic look appeals to the growing middle

income earners

One of the most profitable MNC in India

Improved product proposition

Better geographic balances

Multi-cultural organization that offers opportunities to good managers

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WEAKNESS

HDFC, IDBI, ABN-AMBRO, Citibank and HSBC are dominant players

Has disadvantage due to last entry

Fewer locations as compared to other MNC banks

Service delivery perception is weak

OPPORTUNITIES

Branch expansion for rapid growth

Increase focus on value creation in whole banking

Improve shareholders return

Build market share in consumer banking as consumer banking continues to offer

highest potential for growth

Broadening of the demographic base

Tie ups with master card networks

Integrated sales and service approach

Can offer a complete corporate package into under proposed corporate

relationship

THREATS

IDBI is pitching in quite aggressively

Citibank is expanding in new markets

Competitive products and offers from IDBI and HDFC

Proposed networking of all branches in next 6 months

Reduced business in OECD business

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OBJECTIVE OF THE

PROJECT

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2.1 SIGNIFICANCE

The following study was done parallel when an individual or a group of individual are

current Marketing strategies of Axis Bank.

This project on identifying alternative channels of recruitment and employee retentionhas been carried on behalf ofMarketing Strategies of Axis Bankwith the objective of

understanding the best strategies practices. The study is aimed at analysis of the current

Marketing strategies process for the entry level Customers and identifying alternative

channels of recruiting them.

2 .2 M AN AG ER IA L US EF UL NE SS OF T HE S TU DY

Research simply means a search for facts answers to questions and solutions to

problems. It is a purposive investigation. It is an organized enquiry.

In other words research means search for knowledge and research methodology is a

systematic way to solve he research problem. It is a science of study how the search is

actually done. It presents the source of data collection, the sampling procedures and tools

of investigation and limitations of the study. My research project has a specified

framework for collecting the data in an effective manner. Such framework is called

research design.

2.3 OBJECTIVES

To study the benefits of this product provided by various banks.

To make comparative analysis with all the leading banks.

To recommend strategies to enhance the promotion of banks.

The primary purpose of this study is to present a clear picture of how banking

started in India.

To increase the competition in this sector so that the common people has the

advantage of enjoying quality services at a reasonable cost

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Insurance has a far reaching effect in synchronizing between the various service

sectors. So if this sector can grow, the prospects of the various other services

sector remains to be promising.

To know the consumer feedback.

To know the marketing strategies adopted to promote these products.

To make the private players responsible to the investors and not to the

government

2.4 SCOPE OF STUDY

The research process consists of series of closely related activities. At times, the

first step determines the nature to the last step to be undertaken why a research

study has been undertaken, how the research problem has been defined, in what

way and why the hypothesis has been formulated, what data has been collected

and what particular methods has been adopted and a host of similar other

questions are usually answered when we talk of research methodology concerning

a research problems or study.

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RESEARCH

METHODOLOGY

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RESEARCH METHODOLOGY

Sampling unit

Sample Unit : Retailers and Wholesalers.

Sample Size :It was not possible to cover the entire population of approximately

21000 Retailers in the Delhi and their remote locations where they are Located

250 retailers were studied by me for this research (nearly 2% of the population ).

Sample Procedure : To obtain a representative sample , a probability sample of

the population was drawn i.e. Cluster ( area ) sample , where Delhi City was

divided into 14 Area sample under five blocks of similar Category-

Sampling Technique

While above two are best suited for explorative research, Survey researchis best

suited for my purpose i.e.for Descriptive Research.

Sampling Area

Connaught Place

South Extension.

Green Park

Defence Colony, Karol Bagh, Lajpat Nagar

iv Sampling Size250 Retailers

LIMITATION

The sample size of customers and prospects is fairly small and consistent

conclusions cannot be drawn on the information provided.

Satisfaction being a relative term cannot be much commented on as it

varies from individual to individual and can only be measured if the

respondent has also experienced the services of a similar organisation in a

similar sphere.

One major constraint was the small sample size as it may lead to slight

variations in the end result.

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A few customers were either quite reluctant to part with their precious

time or had problems in attaching weights and emphasis to different

attributes.

Customers in refinance cases were in direct contact with the dealers and

were more bothered with getting the delivery of the car rather than

handling the delays on availing the finance as it did not directly affect

them.

There is bound to be a subjective bias in the results because of

inconsistency and selective perception about the opinions of the

respondents.

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CONCEPTUAL

DISCUSSION

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Marketing Strategy of Axis Bank

Deposits schemes

Savings bank accounts

Opening of Accounts

Savings Bank Accounts should be opened in accordance with the Banks rules framed for

the conduct and maintenance of such accounts and also in conformity with the directives

issued by Reserve Bank of India and India Banks Association from time to time.

Minimum Deposit

The minimum amount with which a Savings Bank Account can be opened is Rs. 100/- for

non Computerised Branch & Rs, 500/- for Computerised Branch. It should be ensured

that this minimum balance is maintained by the account holder at all times. However a

minimum balance of Rs. 250/- should be maintained in the account if cheque book

facility is required by the account holder. If the minimum balance of Rs. 250/- is not

maintained in such an account in any month, the Branch should charge service charges on

such accounts at the rate fixed by the Bank from time to time.

The minimum amount with which Savings Bank Account can be opened is Rs. 100/- in

Rural & Semi-Urban, Rs. 250/- in Urban & Metro.

For all branches except computerised branches minimum amount of balance should be:

(i) Rs. 100/- for Savings Bank Account without cheque book facility

(ii) Rs. 250/- with cheque book facility.

Rs, 500/- for computerised branches with or without cheque book facility.

If the minimum balance of Rs. 250/- or Rs. 500/- as the case may be is not maintained in

such account the Branch should charge service charges on such accounts at the rate fixed

by Bank from time to time.

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The following institutions are permitted by R.B.I. to open Savings Bank

Accounts

(i) Small Farmers Development Agency (SFDA)

(ii) Marginal Farmers &Agricultural Laborers Development Agency (MFALDA)(iii) Drought Prone Area Programme (DPAP)

(iv) District Development Authority (DDA)

(v) District Rural Development Agency/Society (DRDA/DRDS)

(vi) Integrated Rural Development Programme (IRDP) and its sub-scheme-

Development of Women and Children in Rural Areas (DWCRA).

(vii) State level Khadi and Village Industries Board (KVIB)

(viii) Integrated Tribal Development Agency (ITDA)

(ix) Agricultural Produce Market Committee (APMC)

(x) Fish Farmers Development Agency (FFDA)

(xi) University/College Teachers /Employees Provident Fund Accounts

(xii) Municipal Employees Provident Fund Accounts

(xiii) Gujarat Scheduled Caste Economic Development Corporation

(xiv) Self help groups (registered or unregistered)

(xv) Nagar Panchayat, Nagar Palikas and Municipal Bodies in relation to funds given

as subsidy under Jawahar Rozgar Yojana towards the Scheme of Urban Micro

Enterprises (SUME) provided the account is opened with a Public Sector Bank

i.e. State Bank of India, its subsidiaries or any other nationalized Bank). Funds of

the Jawahar Rozgar Yojana (Central Share as well as State Share) can be kept in

Savings Bank Account to be opened by Zilla Parishads DRDA/ Gram Panchayats.

The interest amount accrued on such deposits shall be treated as JRY additional

resources.

(xvi) Any other Institutions permitted by RBI from time to time.

Who Can Open Savings Bank Accounts Current Account

The account can be opened by the following:

(i) An individual in his/her own name

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(ii) An individual jointly with other personals

(iii) An employee can opened only one Bank account & if he/she is already having

more than one account in same or in different Bank intimation can be send to his

employer in writing with detail of such account & also the reason therefore. Such

intimation should be given to the Bank whenever he desires to open another

account in the same or other Bank.

(iv) A guardian on behalf of minor

(v) One person for another person with the stipulation that the deposit can be

withdrawn by the latter on his/her attaining majority or some other specified time.

(vi) A minor above the age of 10 years and who knows how to read and write, (in his

own name or jointly with any other person) subject to certain conditions laid

down for opening Minor Saving accounts.

(vii) A Hindu undivided family (H.U.F.) only if the HUF is not engaged in

trading/business activity and such account is opened in the name of Karta.

(viii) The following categories of Institutions/Organisations can, as per directives of

Reserve bank of India open Savings Bank Accounts on usual terms of payment of

interest:

(a) Societies registered under Societies Registration act, 1860 or by other

corresponding law in force in a State or Union territory.

(b) Companies governed by the Companies Act, 1956which have been licensed by

the Central Government under Sec.25 of the said Act or corresponding provision

in the Indian Companies Act, 1913 and permitted not to add to their names the

words Limited or Private limited.

(c) Organizations I Institutions which are exempted from payment of Income Tax

under Income Tax Act1961.

(d) Institutions specifically charged with the task of rendering social or economic

assistance to the weaker and under-privileged sections of society, not falling

under 3.5 below and whose entire income is exempted from payment of Income

Tax under the payment of Income tax Act, 1961.

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Interest free Savings Bank Accounts

Branches should not open Savings Bank Accounts of ineligible application not even

Interest Free Account. They include other Banks, Regional Rural Banks, Co-Operative

Banks, Land Development Banks, Government Developments bodies depending upon

budget allocation for performance of their functions, Municipal

Corporations/Committees, Panchayat Samitis, state Housing Boards, Water and

Sewerage/Drainage Boards, State Text Book Publishing Corporations/societies,

Metropolitan Development Authority State / District level Housing Co-operative

Societies etc. or any ,trading, business or professional (e.g. advocates, Chartered

Accountants) concerns whether such concerns are proprietary, partnership firm,

Company or association.

Current Accounts

A current account is a running and active account which may be operated upon any

number of times during a working day. There are no restrictions as to the number and

amount of withdrawals from a current account. These accounts are normally opened by

businessmen, joint stock companies, institution, public authorities and public

corporations. No interest is payable on these accounts arid hence they are a source of

comparatively low cost lendable resources to the Bank. All efforts should therefore be

made to mobilize maximum deposits in Current Accounts.

Special Features of Current Accounts

The Reserve Bank of India prohibits permanent of interest on balances laying in current

accounts. Except in the following cases:

(a) On current account balances of Regional Rural Banks at half percent below the

borrowing rate fixed for RRBs for borrowing from the sponsor Bank.

(b) In case of balances laying in current account in the name of deceased individual

depositor or sole proprietorship firm from the date of death of the depositor, till

the date of repayment to the legal heirs, representatives or nominee at the rate of

interest on Savings Bank account applicable on the date of payment.

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There are no restrictions on the number and amount of withdrawals.

Third party cheques and cheques with proper/regular endorsements are collected for the

credit of current account balances.

Overdraft facilities can be given to deserving current account holders on request as per

prescribed procedure.

Incidental charges are levied on all current accounts to recover a portion of cost of

maintenance, stationery and other services rendered to current account customers.

The facility of overprinting of names on cheque forms is generally extended to customers

keeping sizeable balances and having large operations in their accounts. However,

printing of the customers logo on the cheques is not permitted.

Who can open Current Accounts

Any person(s) or parties capable of entering into contract (i.e. a person who is not a

minor, is not insane or an undischarged insolvent) can open a Current Account. These

are:

(i) Individuals-Singly or jointly

(ii) Joint Hindu Undivided Family

(iii) Firms-Proprietorship or Partnership

(iv) Clubs and Associations

(v) Joint Stock Companies

(vi) Executors and Administrators

(vii) Trustees

(viii) Liquidators

(ix) Local Authorities/Corporations

Opening of Current Account of Individual/s

While opening a current account of individual/s, the Banks prescribed form should be

use (See Annexure 1, 2 and 3). The individuals desiring open the account should be guide

to fill up the form properly and legibly. Alterations, if any, should be authenticated by

the, depositors. Two copies of passports size photographs of depositor be obtained and

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affixed on the form. The guidance for filling up the form will include the following

aspects:

Title of the account.

Initial deposit.

The status of account holder.

Declarations regarding the banking/borrowing arrangements.

Address.

Operating instructions.

Nominations.

Name(s) and Specimen Signature(s).

Introduction.

Signature of the Officer.

Issuance of cheque book.

Accounts of Sole Proprietorship Concerns

It is an account in the name of a firm or business owned by one individual who is its

proprietor. It is operated upon by the individually in his capacity as the sole Proprietor of

the firm. The name of the account may be different from the name Of the proprietor.

All the formalities for opening a current account as mentioned in paragraph 4 above haveto be completed.

Joint Hindu Family Account (Hindu Undivided Family Accounts)

Generally, a Joint Hindu Family has some property owned by all the members as

ancestral property. The ownership of such property passes on to the members of the

family according to the Hindu Law. According to Mktakshara School of Hindu Law,

every male member of the family acquires an. interest in the joint property by birth. Afterthe enforcement of Hindu Succession Act 1956, the share of the deceased coparcener

who was a member of the Joint Hindu Family divisible amongst the wife, daughters and

other relatives as given in the Act. A daughter is a member of the H.U.F. only till she is

unmarried.

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While opening and conducting an account in the name of Joint Hindu Family, a has to

bear in mind the follo