PROJECT STUDY

ON

“ TO ANALYZE THE PERCEPTION OF CUSTOMER TOWARDS THE SEVICES OF AXIS BANK, HANUMANGARH’’

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION OF RAJASTHAN TECHNICAL UNIVERSITY, KOTA

SUPERVISED BY: SUBMITTED BY:

MR.TEZ SINGH Kavita Rathore

(Branch Manager) MBA II year

FACULTY SUPERVISIOR:

MR. ADARSH PANDEY

SUBMITTED TO

SWAMI KESHVANAND INSTITUTE OF TECHNOLOGY, jjjjjjj jjjj MANAGEMENT & GRAMOTHAN

2009-2011

1

PREFACE

Theories are being developed, designed and stated on the groundwork of their

practical implementation and usage. Work experience seems to be the most effective

and indispensable factor of making an individual an adept. This is because one can’t

do without being exposed to varying circumstances and possible consequences.

Training not only develops individual skills and abilities but also provides proficiency

in work performance.

The researcher has done research in a Branch of AXIS BANK, at

HANUMANGARH, which constitute an essential part of two years MBA program at

SKIT, Jaipur. The research period consists of forty five working days. The researcher

selected the project study on the topic “CUSTOMER PERCEPTION ABOUT AXIS

BANK” It was really a great opportunity getting practical insight of the market.

Initially I felt that classroom study was irrelevant and to useless in any concern’s

working, but gradually I realized that all the basic fundamental concepts studied are

linked in one or the other ways to the organization. Further it could be said that theory

and practical training are supplementary to each other and help in drawing

meaningful conclusion and it’s just a matter of modifying the theory, so as to apply in

to given practical solution.

I sincerely believe that there is no better place to learn the practical side of

management studies than the industry itself.

2

ACKNOWLEDGEMENT

I would like to take this opportunity as a platform to thank various individuals,

without the support of whom, this project would not have been successful.

Firstly I would like to thanks Mr. TEJ SINGH NATHAWAT (Branch Manager) and

AXIS BANK for giving me an opportunity to work in such a reputed company and

guiding me in spite of his busy schedule.

I emphatically express the regards and gratitude towards my speculative guide

Mr. VINOD SETHI, for his expert & invaluable guidance, constant

encouragement, and constructive criticism to accomplish such laborious and

exhaustive work timely and perfectly.

I would also like to thank all the Employees of Axis Bank, Hanumangarh for their

invaluable help and cooperation in completing my project successfully.

I acknowledge my gratitude with sense of reverence to Prof. ADARSH PANDEY

and all the Faculty Members for providing me an opportunity to undertake my

project.

I solely claim all the responsibility for any shortcoming and limitation in this work.

I am grateful to the director of SWAMI KESHVANAND INSTITUTE OF TECHNOLOGY,

MANAGEMENT & GRAMOTHAN, JAIPUR for granting me the opportunity to prepare

such a report.

Kavita Rathore

MBA-IIYEAR

3

SUMMARY OF THE PROJECT STUDY

Banking Industry which is basically my concern industry around which my project

has to be revolved is really a very complex industry.

I am Kavita Rathore. I did my project study with AXIS BANK in 15 days.

I was assigned the task of doing survey on customers. I reported to sales

manager who acted as the delivery head of this project but somewhere an officer

also was very closely involved.

This comparison pushed me to revisit the plans/ strategy thought out by me. This

was of immense help in improving the quality of my inputs.

I learnt a lot during the project. Firstly it provided me much needed corporate

exposure (working with team, business communication, prioritizing work).

Though we are continuously given inputs on soft skills and business

communication during our program; but there is no better place to hone these

skills than the workplace

4

CONTENTS:

S.No.

Topic Page No.

1. Preface

2. Acknowledgement

3. Executive Summary

4. Chapter 1 : Introduction of the Industry 6-22

5. Chapter 2 :Introduction of the organization(AXIS BANK) 23-58

6. Chapter 3 : Introduction of Title. 61-79

7. Chapter 4 : Research Methodology

4.1 Objective of the study

4.2 Type of research

4.3 Sample size

4.4 Method of selecting sample

4.5 Limitation of study

80-87

8. Chapter 5 : Data Analysis & Interpretation 88-103

9. SWOT Analysis 104-105

10. Facts & findings 106-107

11. Recommendations & Suggestions 108-109

12 Conclusion 110-111

13 Bibliography 112

14. Appendix 113-115

5

INDUSTRY INTRODUCTION:

HISTORY OF INDUSTRY

The word "bank" reflects the origins of banking in temples. According to the famous

passage from the New Testament, when Christ drove the money changers out of the

temple in Jerusalem, he overturned their tables. Matthew 21.12. In Greece, bankers

were known as trapezitai, a name derived from the tables where they sat. Similarly, the

English word bank comes from the Italian banca, for bench or counter.

The history of banking is closely related to the history of money As monetary

payments became important, people looked for ways to safely store their money. As

trade grew, merchants looked for ways of borrowing money to fund expeditions.

The first banks were probably the religious temples of the ancient world, and were

probably established sometime during the 3rd millennium B.C. Banks probably predated

the invention of money. Deposits initially consisted of grain and later other goods

including cattle, agricultural implements, and eventually precious metals such as gold, in

the form of easy-to-carry compressed plates. Temples and palaces were the safest

places to store gold as they were constantly attended and well built. As sacred places,

temples presented an extra deterrent to would-be thieves. There are extant records of

loans from the 18th century BC in Babylon that were made by temple priests to

merchants. By the time of Hammurabi's Code, banking was well enough developed to

justify the promulgation of laws governing banking operations.

Global banking and capital market services proliferated during the 1980s and 1990s as

a result of a great increase in demand from companies, governments, and financial

institutions, but also because financial market conditions were buoyant and, on the

whole, bullish. Interest rates in the United States declined from about 15% for two-year

6

U.S. Treasury notes to about 5% during the 20-year period, and financial assets grew

then at a rate approximately twice the rate of the world economy. Such growth rate

would have been lower, in the last twenty years, were it not for the profound effects of

the internationalization of financial markets especially U.S. Foreign investments,

particularly from Japan, who not only provided the funds to corporations in the U.S., but

also helped finance the federal government; thus, transforming the U.S. stock market by

far into the largest in the world.

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 in every city and villages of all nook and

corners of the land.

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 had 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 of scheduled commercial

banks increased four-fold and the number of bank branches increased eight-fold. And

that was not the limit of growth.

7

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

in the early nineties, the Public Sector Banks (PSBs) found it extremely difficult to

compete 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.

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

accounted for a 25 percent share in deposits and 28.1 percent share in credit.

The 20 nationalized banks accounted for 53.2 percent of the deposits and 47.5

percent 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 percent, 3.9 percent and 12.2 percent respectively in deposits and 8.41

percent, 3.14 percent and 12.85 percent respectively in credit during the year

2000.about the detail of the current scenario we will go through the trends in

modern economy of the country.

8

BANKING STRUCTURE IN INDIA

Scheduled Banks in India

(A) Scheduled Commercial Banks

Public sector

Banks

Private sector

Banks

Foreign Banks

in India

Regional Rural

Bank

(28) (27) (29) (102)• Nationalized

Bank

• Other Public

Sector Banks

(IDBI)

• SBI and its

Associates

• Old Private

Banks

• New Private

Banks

(B) Scheduled Cooperative Banks

9

INTRODUCTION

The banking section will navigate through all the aspects of the Banking System

in India. It will discuss upon the matters with the birth of the banking concept in

the country to new players adding their names in the industry in coming few

years.

The banker of all banks, Reserve Bank of India (RBI), the Indian Banks

Association (IBA) and top 20 banks like IDBI, HSBC, ICICI, ABN AMRO, etc. has

been well defined under three separate heads with one page dedicated to each

bank.

However, in the introduction part of the entire banking cosmos, the past has been

well explained under three different heads namely:

• History of Banking in India

• Nationalization of Banks in India

• Scheduled Commercial Banks in India

The first deals with the history part since the dawn of banking system in India.

Government took major step in the 1969 to put the banking sector into systems

and it nationalized 14 private banks in the mentioned year. This has been

elaborated in Nationalization Banks in India. The last but not the least explains

about the scheduled and unscheduled banks in India. Section 42 (6) (a) of RBI

Act 1934 lays down the condition of scheduled commercial banks. The

descriptions along with a list of scheduled commercial banks are given on this

page.

10

HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy

economy. The banking system of India should not only be hassle free but it

should be able to meet new challenges posed by the technology and any other

external and internal factors.

For the past three decades India's banking system has several outstanding

achievements to its credit. The most striking is its extensive reach. It is no longer

confined to only metropolitans or cosmopolitans in India. In fact, Indian banking

system has reached even to the remote corners of the country. This is one of the

main reasons of India's growth process.

The government's regular policy for Indian bank since 1969 has paid rich

dividends with the nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for

getting a draft or for withdrawing his own money. Today, he has a choice. Gone

are days when the most efficient bank transferred money from one branch to

other in two days. Now it is simple as instant messaging or dial a pizza. Money

have become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786

till today, the journey of Indian Banking System can be segregated into three

distinct phases. They are as mentioned below:

• Early phase from 1786 to 1969 of Indian Banks

• Nationalization of Indian Banks and up to 1991 prior to Indian banking

sector Reforms.

• New phase of Indian Banking System with the advent of Indian Financial &

Banking Sector Reforms after 1991.

11

To make this write-up more explanatory, I prefix the scenario as Phase I, Phase

II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of

Hindustan and Bengal Bank. The East India Company established Bank of

Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as

independent units and called it Presidency Banks. These three banks were

amalgamated in 1920 and Imperial Bank of India was established which started

as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by Indians,

Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.

Between 1906 and 1913, Bank of India, Central Bank of India, Bank of Baroda,

Canara Bank, Indian Bank, and Bank of Mysore were set up. Reserve Bank of

India came in 1935.

During the first phase the growth was very slow and banks also experienced

periodic failures between 1913 and 1948. There were approximately 1100 banks,

mostly small. To streamline the functioning and activities of commercial banks,

the Government of India came up with The Banking Companies Act, 1949 which

was later changed to Banking Regulation Act 1949 as per amending Act of 1965

(Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers

for the supervision of banking in India as the Central Banking Authority.

During those day’s public has lesser confidence in the banks. As an aftermath

deposit mobilization was slow. Abreast of it the savings bank facility provided by

the Postal department was comparatively safer. Moreover, funds were largely

given to traders.

12

Phase II

Government took major steps in this Indian Banking Sector Reform after

independence. In 1955, it nationalized Imperial Bank of India with extensive

banking facilities on a large scale especially in rural and semi-urban areas. It

formed State Bank of India to act as the principal agent of RBI and to handle

banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India was nationalized in 1960

on 19th July, 1969, major process of nationalization was carried out. It was the

effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14 major

commercial banks in the country was nationalized.

Second phase of nationalization Indian Banking Sector Reform was carried out in

1980 with seven more banks. This step brought 80% of the banking segment in

India under Government ownership.

The following are the steps taken by the Government of India to Regulate

Banking Institutions in the Country:

• 1949: Enactment of Banking Regulation Act.

• 1955: Nationalization of State Bank of India.

• 1959: Nationalization of SBI subsidiaries.

• 1961: Insurance cover extended to deposits.

• 1969: Nationalization of 14 major banks.

• 1971: Creation of credit guarantee corporation.

• 1975: Creation of regional rural banks.

• 1980: Nationalization of seven banks with deposits over 200 crore.

13

After the nationalization of banks, the branches of the public sector bank India

rose to approximately 800% in deposits and advances took a huge jump by

11,000%.

Banking in the sunshine of Government ownership gave the public implicit faith

and immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking

sector in its reforms measure. In 1991, under the chairmanship of M

Narasimham, a committee was set up by his name which worked for the

liberalization of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are

being put to give a satisfactory service to customers. Phone banking and net

banking is introduced. The entire system became more convenient and swift.

Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is sheltered

from any crisis triggered by any external macroeconomics shock as other East

Asian Countries suffered. This is all due to a flexible exchange rate regime, the

foreign reserves are high, the capital account is not yet fully convertible, and

banks and their customers have limited foreign exchange exposure.

14

BANKS IN INDIA

In India the banks are being segregated in different groups. Each group has their

own benefits and limitations in operating in India. Each has their own dedicated

target market. Few of them only work in rural sector while others in both rural as

well as urban. Many even are only catering in cities. Some are of Indian origin

and some are foreign players.

All these details and many more is discussed over here. The banks and its

relation with the customers, their mode of operation, the names of banks under

different groups and other such useful information’s are talked about.

One more section has been taken note of is the upcoming foreign banks in India.

The RBI has shown certain interest to involve more of foreign banks than the

existing one recently. This step has paved a way for few more foreign banks to

start business in India.

15

MAJOR BANKS IN INDIA

• ABN-AMRO Bank

• Abu Dhabi Commercial Bank

• American Express Bank

• Andhra Bank

• Allahabad Bank

• Bank of Baroda

• Bank of India

• Bank of Maharastra

• Bank of Punjab

• Bank of Rajasthan

• Bank of Ceylon

• BNP Paribas Bank

• Canara Bank

• Catholic Syrian Bank

• Central Bank of India

• Centurion Bank

• China Trust Commercial Bank

• Citi Bank

• City Union Bank

• Corporation Bank

• Dena Bank

• Deutsche Bank

• Development Credit Bank

• Dhanalakshmi Bank

• Federal Bank

• HDFC Bank

• HSBC ICICI Bank

• IDBI Bank

• Indian Bank

• Indian Overseas Bank

• IndusInd Bank

• ING Vysya Bank

• Jammu & Kashmir Bank

• JPMorgan Chase Bank

• Karnataka Bank

• Karur Vysya Bank

• Laxmi Vilas Bank

• Oriental Bank of Commerce

• Punjab National Bank

• Punjab & Sind Bank

• Scotia Bank

• South Indian Bank

• Standard Chartered Bank

• State Bank of India (SBI)

• State Bank of Bikaner & Jaipur

• State Bank of Hyderabad

• State Bank of Indore

• State Bank of Mysore

• State Bank of Saurastra

• State Bank of Travancore

• Syndicate Bank

• Taib Bank

• UCO Bank

• Union Bank of India

• United Bank of India

• United Bank Of India

• United Western Bank

• UTI Bank

16

FACT FILES OF BANKS IN INDIA

The first, the oldest, the largest, the biggest, get all such types of information’s

about Banking in India in this section.

The first bank in India to be given an ISO Certification Canara Bank

The first bank in Northern India to get ISO 9002

certification for their selected branches

Punjab and Sind

Bank

The first Indian bank to have been started solely with

Indian capital

Punjab National

Bank

The first among the private sector banks in Kerala to

become a scheduled bank in 1946 under the RBI Act

South Indian

Bank

India's oldest, largest and most successful commercial

bank, offering the widest possible range of domestic,

international and NRI products and services, through its

vast network in India and overseas

State Bank of

India

India's second largest private sector bank and is now the

largest scheduled commercial bank in India

The Federal Bank

Limited

Bank which started as private shareholders banks,

mostly Europeans shareholders

Imperial Bank of

India

The first Indian bank to open a branch outside India in

London in 1946 and the first to open a branch in

continental Europe at Paris in 1974

Bank of India,

founded in 1906

in Mumbai

The oldest Public Sector Bank in India having branches

all over India and serving the customers for the last 132

years

Allahabad Bank

The first Indian commercial bank which was wholly

owned and managed by Indians

Central Bank of

India

17

Bank of India was founded in 1906 in Mumbai. It became the first Indian bank to

open a branch outside India in London in 1946 and the first to open a branch in

continental Europe at Paris in 1974.

PUBLIC SECTOR BANKS

Among the Public Sector Banks in India, United Bank of India is one of the 14

major banks, which were nationalized on July 19, 1969. Its predecessor, in the

Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the

amalgamation of four banks viz. Camilla Banking Corporation Ltd. (1914), Bengal

Central Bank Ltd. (1918), Camilla Union Bank Ltd. (1922) and Hooghly Bank Ltd.

(1932).

Oriental Bank of Commerce (OBC), Government of India Undertaking offers

Domestic, NRI and Commercial banking services. OBC is implementing a

GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District

(Rajasthan) disbursing small loans. This Public Sector Bank India has

implemented 14 point action plan for strengthening of credit delivery to women

and has designated 5 branches as specialized branches for women

entrepreneurs

The following are the list of Public Sector Banks in India

Allahabad Bank

Andhra Bank

Bank of Baroda

18

Bank of India

Bank of Maharastra

Canara Bank

Central Bank of India

Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab & Sind Bank

Punjab National Bank

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India

Vijaya Bank

PRIVATE SECTOR BANKS:

Private banking in India was practiced since the beginning of banking system in

India. The first private bank in India to be set up in Private Sector Banks in India

was IndusInd Bank. It is one of the fastest growing Bank Private Sector Banks in

19

India. IDBI ranks the tenth largest development bank in the world as Private

Banks in India and has promoted world class institutions in India.

The first Private Bank in India to receive an in principle approval from the

Reserve Bank of India was Housing Development Finance Corporation Limited,

to set up a bank in the private sector banks in India as part of the RBI's

liberalization of the Indian Banking Industry. It was incorporated in August 1994

as HDFC Bank Limited with registered office in Mumbai and commenced

operations as Scheduled Commercial Bank in January 1995.

ING Vysya, yet another Private Bank of India was incorporated in the year 1930.

Bangalore has a pride of place for having the first branch inception in the year

1934. With successive years of patronage and constantly setting new standards

in banking, ING Vysya Bank has many credits to its account.

LIST OF PRIVATE BANKS IN INDIA

Bank of Punjab

Bank of Rajasthan

Catholic Syrian Bank

20

Centurion Bank

City Union Bank

Dhanalakshmi Bank

Development Credit Bank

Federal Bank

HDFC Bank

ICICI Bank

AXIS BANK

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

South Indian Bank

United Western Bank

INDIAN BANKING INDUSTRY

21

The Indian banking market is growing at an astonishing rate, with Assets

expected to reach US$1 trillion by 2010. An expanding economy, middle class,

and technological innovations are all contributing to this growth.

The country’s middle class accounts for over 320 million People. In correlation

with the growth of the economy, rising income levels, increased standard of

living, and affordability of banking products are promising factors for continued

expansion.

The Indian banking market is growing at an astonishing rate, with Assets

expected to reach US$1 trillion by 2010. An expanding economy, middle class,

and technological innovations are all contributing to this growth.

The Indian banking Industry is in the middle of an IT revolution, Focusing

on the expansion of retail and rural banking. Players are becoming

increasingly customer - centric in their approach, which has resulted in

innovative methods of offering new banking products and services. Banks are

now realizing the importance of being a big player and are beginning to

focus their attention on mergers and acquisitions to take advantage of

economies of scale and/or comply with Basel II regulation.“Indian banking

industry assets are expected to reach US$1 trillion by 2010 and are poised to

receive a greater infusion of foreign capital,” says Prathima Rajan, analyst in

22

Celent's banking group and author of the report. “The banking industry should

focus on having a small number of large players that can compete globally rather

than having a large number of fragmented players."

INTRODUCTION TO ORGANISATION

23

COMPANY DESCRIPTION

AXIS Bank is the first new generation private sector bank to be established in

India under the overall reform programme initiated by the Government of India in

1991, under which nine new banking licenses were granted.

Unit Trust of India, the largest mutual fund in India, holding 87% of the equity,

promoted the Bank. Life Insurance Corporation of India (LIC), General Insurance

Corporation Ltd and its four subsidiaries who were the co-promoters held the

balance 13%. The Bank started its operations in 1994.

AXIS Bank’s first capital raising post inception was in 1998 through a public

offering of primary shares and in subsequent years through equity allotment to a

few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur Vysya

Bank and Chrys Capital leading to a dilution in AXIS’s shareholding in the Bank.

Further dilution of Promoters shareholding happened during Q4 of 2004, when the

Bank raised US$ 239.30 Million of Capital through a GDR issue.

MISSION

• Customer Service and Product Innovation tuned to diverse needs of

individual and corporate clientele.

• Continuous technology up gradation while maintaining human values.

• Progressive globalization and achieving international standards.

• Efficiency and effectiveness built on ethical practices.

24

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

• Leading through innovation to offer world class and competitive products

to customers.

• Building long term relationships with customers by creating a world-class

service experience through operational excellence and the innovative use

of technology.

• Have created a customer centered and result focused vision that inspires

each one of our Associates and has their buy in.

• Are committed to creating a High Performance Organization by creating

an environment that allows each our associates to perform at peak. As a

result recognized as an employer of choice.

• Committed to partnering with internal and external customers for mutual

success.

• Working with integrity, fairness and financial prudence in all our dealings

keeping the interests of our shareholders, customers and Associates par

amount.

25

CURRENT STATUS

Axis Bank is the third largest private sector bank in India. Axis Bank offers a vast

spectrum of services encompassing Large and Mid-Corporate Banking, SME

Banking, Agri-Business Banking, Retail Banking and International Banking.

Axis Bank has a network of over 1040 branches and over 4500 ATMs across the

country. The branches, spread across more than 650 cities and towns, enable the

Bank to reach out to a large cross-section of customers with an array of products

and services catering to both the retail and the corporate segment.

Axis Bank has presence in Singapore, Hong Kong, Shanghai and Dubai, and

seeks to expand further its international presence. Axis Bank has the second

largest EDC network, the third largest ATM network in India and also has the

fourth largest base of debit cards in the country. The market capitalisation of the

Bank as on June 29, 2010 was Rs. 50,114 crores (NSE) which makes the Bank

the fourth largest in terms of market capitalization amongst the Banks in India.

The Bank’s centralised database enables customers to operate their accounts

from anywhere in the country. The Bank’s website www.axisbank.com offers

comprehensive details about its various schemes.

HIGHLIGHTS

• Profit after tax up 38.51% to Rs. 2,514.53 crores

26

• Net Interest Income up 35.76% to Rs. 5,004.49 crores

• Fee & Other Income up 23.80% to Rs. 3,123.40 crores

• Deposits up 20.38% to Rs. 141,300.22 crores

• Demand Deposits up 30.38% to Rs66,029.54. crores

• Advances up 27.94% to Rs. 104,343.12 crores

• Retail Assets up 29.72% to Rs. 20,822.90 crores

• Network of branches and extension counters increased from 835 to 1,035

• Total number of ATMs went up from 3,595 to 4,293

• Net NPA ratio as a percentage of net customer assets up from 0.36% To 0.35%

BOARD OF DIRECTORS

Shikha Sharma

Managing Director & CEO

M. M. Agrawal

Deputy Managing Director

R. B. L. Vaish

Director

R. H. Patil

Director

N. C. Singhal

Director

BANK WINS OVER INVESTORS CONFIDENCE

27

AXIS Bank finished the June 2010 quarter with almost similar profit growth as in

the previous three quarters. But what helped it steal the show this time was a 39%

year-on year growth in its loan book. Given that the growth in aggregate banking

csredit stood at 20% in the June 2010 quarter, It is unlikely that any other large

bank will be able to grow its loan book at a faster rate than axis bank. This should

be positive news for investors since it affirms the bank’s ability to consistently

outperform its peers.

The bank’s credit to large and mid corporates grew by 55% in the June 2010

quarter. This was partially due to an increased demand of funds from the

corporate segment mainly on account of 3G, bradband wireless auction(BWA)

and advance tax payments .It might be difficult for the bank to maintain such a

high loan growth in future.

All this while the bank maintained a tight control on its assest quality. In

percentage terms ,its non-performing assests actually fell during the quarter

Among large banks, only HDFC Bank has a better asset quality than AXIS bank.

The bank also reported a drop in the percentage of low-cost-current account and

saving account (CASA) deposits on a sequential basis .CASA deposits formed

40% of its total deposits at the end of the quarter compared with 47% at the end

of the previous quarter .But It should not be misconstrued as negative sign since

CASA share had been a onetime spike in the previous quarter due to retiring of

high cost term deposits .Otherwise, its CASA share had hovered around 40-43%

in the earlier quarters.

Though it is unlikely that the bank will maintain such a high growth in its advances

,its profit growth is expected to be high. This is because its books are clean and

28

provision coverage adequate. The provision coverage at 77% is well above the

minimum 70% prescribed by RBI. This shows that it will not require higher

provisioning ,which in turn will allow its profit to grow at a high rate.

PRODUCTS OF AXIS BANK:

• ACCOUNTS

• Zero Balance Savings Account

Presenting, Axis Bank's Zero Balance Savings Account. At Axis Bank

it has been our constant endeavor to create products specifically

catering to the customer needs. The account while offering a whole

range of services also addresses the latent need of having an

account without the hassle of maintaining an average quarterly balance.

Features

• No Average Quarterly Balance requirement

• Free International Debit Card with an Accidental Insurance cover up to Rs

2 lakhs* (charges for the primary holder are waived)

• Free mobile banking facility

• Access though more than 675 branches and more than 2800 ATMs

• At-Par cheque facility with the clearing limit of Rs 50,000

• 24x7 Telebanking & Internet banking

• Free quarterly statements

Conditions Apply

• Initial funding of Rs. 5,500.

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• Account maintenance fee of Rs. 500 per annum.

Documentation

• An Account Opening Form duly filled

• One latest passport size photograph

• Initial cheque of Rs 5,500

• Photo identity proof like PAN card, Passport, Driving License or Voters

card

• Proof of residence like recent utility bill or bank account/credit card

statement, and-

• Any two of the following documents:

• Latest Post paid mobile bill with a minimum bill payment of Rs.

1,000

• Minimum Net Salary Rs. 20,000 or other bank account statement

with minimum day end balance of Rs 25,000

• Frequent Flyer Card or Customer Loyalty Card (any of the

renowned retail chain)

• Proof of owning a Gold/Platinum Credit Card

• Proof of owning a house or a four-wheeler

• Easy Access Savings Account

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Presenting, Axis Bank's Easy Access Savings Account. The account is an

endeavor by the Bank to understand the consumers' needs and redefine

banking to suit your requirements for a truly comfortable banking

experience. Easy Access Savings Account gives you instant access to

your money anywhere, anytime. Possessing a range of unmatched

features, it has been devised to better suit the convenience of our eclectic

client base.

Feature

• At Par Cheque Book

As an Easy Access Savings Account Holder, you will receive the "At-par"

cheque book. You can en cash these cheques as local cheques at any of

the 257 centers where the bank has a presence, at no extra cost. Drafts

are now history.

• ATM Network

Easy Access Savings Account also entitles you to an International Debit

Card with which you can access your account anytime at all our ATMs -

both, Visa enabled and our partner banks - across the country.

Withdrawals and deposits (money as well as cheques) are possible with

your Debit Card. And unlike most other ATMs, an Axis Bank ATM allows

you to withdraw up to Rs 40,000 per day.

• Anywhere Banking

You can transact through any of our branch offices all of which are

interconnected for your banking convenience. Transactions like cash

deposits, cash withdrawal, transfers and clearing deposits can all be

carried out wherever you happen to be.

• Tele banking

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Our Tele banking service provides you instant access to your savings

account. It offers you a wide range of services over the phone such as

Account Information, Balance Inquiry, Transaction Details, Status of your

Cheque (available only during branch business hours) and even

Statement of Account on Fax.

• I Connect

The idea of "your Bank on your desktop" is now a reality with I Connect.

You can look up the status of your savings account, request your new

cheque book, undertake a range of financial transactions, avail financial

advisory services, get information on mutual funds and shop online by just

clicking the mouse.

• Mobile Banking

Mobile Banking enables you to bank with us through your mobile phone

irrespective of where you are. Avail facilities like balance inquiry, debit or

credit alerts, last three transaction details and cheque status.

• Account Statement

Quarterly statements are delivered free of cost. Customers can also avail

the facility of monthly online statements through iConnect (our Internet

banking channel).

• Quarterly Interest

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

nnnn account

32

.

Documentation

To open EasyAccess Savings Account with Axis Bank, you just need to

provide:

• Two passport size color photographs (latest) for each applicant

• Introduction related documents:

• Introduction by an existing Axis Bank customer, whose account is at

least 6 months old with a suitable proof of address, or

• A letter from the manager of your existing bank, verifying identity and

signature, or

• A copy of your passport along with a self-signed cheque

• Any one document from each of the following groups:

• Group I

Voter ID card* or Defense or Police or Govt. Dept. ID Card, or Pan Card

or Driving License or Photo Credit Card (*along with self-signed cheque).

• Group II

Latest copy of electricity bill or telephone bill or bank account statement

or credit card statement or insurance premium receipt or letter from

employer certifying address or NSC giving current address or existing

house lease agreement

AQB Requirement: Rs. 5,000

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Prime Savings Account

Want a customized savings account to suit your specific financial

requirements?

At Axis Bank, we have always strived to pace our products with the growing

needs of our customers. The Prime Savings account has therefore been created

with the customer specific financial requirements in mind.

• Wider accessibility

• Greater convenience

• More comfort

• Enhanced privileges

• Added speed

Features

• At Par Cheque Facility with an enhanced limit up to Rs. 1,00,000

• Free 6 cash withdrawal transactions per quarter at other bank ATM's

• Free monthly statement of account

• Free DD/PO (drawn on Axis Bank Centers)

• Free Passbook

• Increased cash deposit/withdrawal limits at non home branches

• Option of automatic movement of excess funds in the savings account to

higher earning fixed deposits

• Access through more than 671 offices & 2764 ATMs

• 24*7 Telebanking, Internet banking and Mobile Banking

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Documentation

• An account opening form duly filled.

• 2 Latest passport size color photographs.

• Photo proof of identity PAN card, passport, Driving License or A letter from

the Bank Manager verifying identity, signature and address along with a

self signed cheque.

• Proof of residence like recent electricity bills or telephone bills or credit

card statements.

Salary Savings Account (The complete financial solution)

Salary Savings Account from Axis Bank will do the job for you. We know how

important employee satisfaction is for an organization to grow to its full potential.

Which is why we have tailored our Salary Savings Account not only to be a

convenient way for you to manage salaries (across various centers, through our

centralized database), but also provide your employees with a range of value

added benefits.

Salary Savings Account comes with a host of facilities that give your employees

access to the complete gamut of banking services (including overdrafts, loans

and zero-balance requirements) on a preferential basis. Making it the perfect

incentive for your employees.

Features

1 Balance Requirement No minimum balance

2 Anywhere Banking Available across the country

3 Cheque books Multi-city at-par Cheque Book

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4 International Debit cum ATM

Card

Personal Accident Insurance cover of upto

Rs 2 Lacs per cardholder

[To keep your personal accident insurance

cover activated, you should have made a

purchase transaction in 365 days prior to the

day of the incident & should have maintained

an average quarterly balance of Rs 5,000

(urban & metropolitan branches) or Rs 2,500

(rural & semi-urban branches) as the case may

be in the two quarters before the date of the

incident.]*

Cash withdrawal of upto Rs 25,000 daily

Purchase protection and Zero Card Liability

Accepted at more than I million ATMs and

more than 26 million Point of Sale terminals

worldwide

5 Computerized Statements Free on a quarterly basis

Free monthly statements on email (Customer

has to register for Internet Banking)

6 Joint Account Facility Available

7 Flexi (2-in-1) Encash

Deposits*

Available subject to terms and conditions

8 Demand Drafts Free Demand Drafts drawn on Axis Bank

Branches

9 Overdraft Facility Upto 50% of net salary at Personal Loan rates*

10 Outstation Cheques Free collection, only out-of-pocket expenses to

be recovered

11 Demat Account Available

12 Financial Advisory Services Available

13 Power Loans* Power Homes - Housing Loans

Personal Power - Personal Loans

Study Power - Educational Loans

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Consumer Power - Consumer Loans

Power Drive - Vehicle Loans

14 Optional Gold Debit Card Access to any Bank ATM

15 Credit Cards Available

16 Online Trading Available

17 Built-In Insurance (Medical

and Burglary) scheme

Unique facility of availing Insurance option in

built in the account available

18 Built-in SIP scheme Unique facility of availing SIP option in built in

the account available

19 Priority Banking Reduced balance criteria for availing Priority

Banking that entitles you to exclusive banking

and lifestyle privileges

20 Internet Banking Available as iConnect with enhanced features

like free bill payments (e.g., electricity bills) and

electronic payment of premiums (LIC -

Insurance Premium) at select centers. Online

shopping and E-Brokering

21 Telebanking Free (available for 24 hours at select centers)

22 Mobile Banking Available

23 Nomination Facility Available

24 Funds Transfer Transfer funds from your Salary Power account

to any bank account in India free of charge.

25 Meal Card The best substitute for the traditional Meal

coupons/vouchers.

26 Gift Card Prepaid, Rupee Denominated, Non Reload

able card - Ideal for Gifting.

Note: Salary Power is a special account offered to customers with regular direct

salary credits coming into this account. In case, the monthly salary is not credited

into the account for more than 3 consecutive months, the special features offered

under Salary Power account shall stand withdrawn and the account shall be

37

treated as Normal Saving Account under our standard charge structure and all

charges shall be levied and applied as applicable to normal savings accounts.

Women's Savings Account

In today's busy world it's tough being a workingwoman. Right from shuttling

between a job and family to taking care of her finances she has to be on her

heels all the time. Keeping this ideal in mind, we at Axis Bank have designed a

38

savings account best suited for the woman of today. Now with the Smart

Privilege Account you can manage your money, your life and enjoy a host of

lifestyle privileges as well. What's interesting is that the Smart Privilege Account

ensures that you have enough time for all those important things in life.

Smart Advantage

Smart Advantage is an exclusive insurance cover specially designed for the

holders of Special Women's Account that covers woman related diseases. This

insurance protects the woman against the risk of serious illness. It gives the

policyholder the security of knowing that a guaranteed cash sum will be paid in

case she is diagnosed with a life-threatening illness. The insurance is available at

a nominal premium to existing Special Women's Account holders.

Eligibility and Documentation

• Average quarterly balance of Rs 10,000 for metro and urban locations

• Average quarterly balance of Rs 5,000 for semi-urban and rural locations

Documentation Required

To open a Smart Privilege account with Axis Bank, you just need to provide:

• Latest Passport size color photographs

• Identity Proof Voter ID Card* or Defense /Police/Govt. Dept. ID Card or

Pan Card or Driving License or Photo Credit Card or Passport OR

A letter from the manager of your existing bank, verifying identity and

signature

• Address Proof

• Initial deposit amount of at least Rs 10,000 & Rs 5000 as the case may

be.

39

Senior Citizen's Account

Axis Bank's Senior Citizen Savings Account has been designed keeping in mind

the fact that a senior citizen's banking requirements are wholly different and

require special consideration.

FEATURES

Dedicated Relationship Managers

Free At-Par Cheque book

Free International VISA Debit Cards for primary and joint account holders

Free Monthly Statement of Accounts and Free Passbook

Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank branches

Free Inward Remittances

Free Outward Remittances once a year

Faster credits to foreign cheques providing you prompt availability of funds

remitted by your near and dear ones abroad

Cheque pickup and Cash delivery services

Anywhere Banking

Telebanking

Free Mobile Banking

iConnect

Customized Loan Offerings

Eligibility

40

• A Minimum Average Quarterly balance of Rs 10,000 in your savings

account. No penal charges will be levied for non-maintenance of

Average Quarterly Balance in the first quarter of account opening.

• You should be a Indian Resident

• Age as on date of account opening should be greater than or equal to 60

years

• DEPOSITS

Fixed Deposits

Safety, Security and Growth

Axis Bank offers simple reinvestment Fixed Deposits (at very competitive

interest rates), which can be opened with a minimum investment of

Rs 10,000. You can make additions to your deposit in multiples of Rs 1,000

each. The tenure of your deposit must be a minimum of 6 months.

Deposit Schemes:

• Rollover only Principal:

Only the principal amount will be rolled over. The interest will be either

credited to your designated account or paid out.

• Rollover Principal and Interest accrued in Reinvestment Deposit:

This will rollover both the deposit and the interest accrued for the same

tenure at the interest rate applicable on the maturity date.

On or before the maturity date, you can make the following changes in the

rollover instructions of the deposit:

• Change in tenure

• Change in maturity instructions

41

• Change in payment instructions

• Change in principal (only reduced amount)

• Change rollover of Principal to rollover of Principal + Interest, or vice

versa.

Documentation

The following documents are required when applying for a Fixed Deposit

An Individual, Hindu Undivided

Family, Sole Proprietorship

Concern

A valid passport or a valid driving license

An introduction by any other bank or an

introduction by an Axis Bank Savings Account

holder for the last six months

A photograph

Trusts

Copy of the Trust Deed

Copy of the registration certificate

Copy of the Resolution of The Trustees

Authorizing the members concerned to open

and operate the account

Photographs of the members operating the

account

Associations / Clubs

Bye-laws of the Association

Copy of the Resolution by the board authorizing

the members concerned to open and operate

the account

Photographs of the members operating the

account

Partnership Firm Partnership Deed

Letter from partners approving the persons

concerned to open and operate the account

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Photographs of the persons operating the

account

Benefits

• Hassle free opening of a fixed deposit from the comfort of your

home/office

• Seamless transfer of funds from your savings account to higher interest

earning fixed deposits

• Flexibility in deciding the amount, tenure, interest payment and maturity of

your deposit

• Open a fixed deposit at any branch of your choice

Recurring Deposits

Power of compounding

Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build

up your savings through regular monthly deposits of fixed sum over a fixed

period of time.

Features

• Recurring deposits are accepted in equal monthly installments of minimum

Rs 1,000 and above in multiples of Rs 500 thereafter.

• The fixed numbers of installments for which a depositor can opt are 12,

24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

• Transfer of Accounts - a recurring deposit account can be transferred from

one office of the Bank to another branch.

43

• The amount of installment once fixed, cannot be changed.

• Installment for any calendar month is to be paid on or before the last

working day of the month. Where there is delay in payment of installment,

one can regularize the account by paying the defaulted installment

together with a penalty (at present it is @ PLR plus 4 % for the period of

delay).Fraction of a month will be treated as full month for the purpose of

calculating the penalty.

• The total amount repayable to a depositor, inclusive of interest, depends

on the amount of monthly installments and the period of deposit.

Encash 24

The Encash 24 (Flexi Deposit) gives the liquidity of a Savings Account coupled

with high earnings of a Fixed Deposit. This is achieved by creating a Fixed

Deposit linked to your Savings Account providing you the following unique

facilities:

• Maximum Returns:

Your money is no longer idle. As soon as the balance in your

Savings Account crosses over Rs 25,000, the excess, in multiples

of Rs 10,000 will be transferred automatically to a higher interest

earning Fixed Deposit Account. The maturity of fixed or term

deposits formed as a result of transfer of money from the Savings

Bank account will be for a maximum period of 181 days and the

interest will be calculated on simple interest rate basis.

• Maximum Liquidity:

The money parked in Fixed Deposits as a result of the above

mentioned sweep out from your Savings account can be easily

accessed by issuing a cheque, withdrawing through ATM etc. This

amount is automatically reverse swept from the most recently

formed Fixed Deposit in units of Rs 5,000 to the Savings account

44

whenever the balance in your Savings account falls below

Rs 25,000. The amount broken form your Fixed Deposit will earn

interest rates at the applicable rate for the period that the deposit

was held with the Bank. The remaining amount of Fixed Deposit will

continue to earn the contracted rate of interest

• Auto Renewal:

On maturity of your linked Fixed Deposit, the Bank will

automatically renew it for a maximum period of 181 days.

How do I sign up for Encash 24?

All you have to do is to open a Savings Account and sign up an ENCASH 24

declaration form. A minimum average quarterly balance of Rs 10,000 must be

maintained in your Savings Account to avail the Encash 24 facility.

Priority Banking customers wishing to avail of Encash 24 Facilities, need to

maintain a minimum total relationship of Rs 5 Lacs only, in their Encash 24

Account. As soon as the balance in the Priority Banking Savings Account

crosses over Rs 1, 00,000 the excess balance, in multiples of Rs 50,000 will be

transferred automatically to the Fixed Deposit Account.

Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to Bank

Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide

Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.

The salient points of the scheme notification are; (a) Fixed tenure without

premature withdrawal. (b) Year is defined as a financial year. (c) Amount limited

to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed

45

Deposit Receipt that shall be the basis of claiming tax benefit. (e) Term deposit

under this scheme cannot be pledged to secure a loan.

Benefits of tax break u/s 80C of IT Act Benefit Illustrator Example

Assume that a customer invests Rs 100,000 in this scheme @ 8% p.a. in fixed

deposit for five years. He will get a benefit of Rs 30,600 at 30.6 % on the eligible

investment of INR 100,000 assuming that he is in Rs 2, 50,000 lac to Rs 1,

00,000 lac tax bracket, thus his effective investment would be Rs 69,400. He

would earn Rs 8000 (08 percent on 1 lac) as interest per annum, which would

translate to a return of 11.5 percent on the effective investment of Rs 69,400.

Tax advantage, Rate of Interest

• The provision of Section 80C whereby a deduction of up to Rs 100,000 is

allowed while computing total income of an individual or HUF in respect of

the life insurance premium, contribution to Provident Fund etc has being

amended to include fixed deposit with a scheduled bank of a period of not

less than five years. Accordingly, an individual or HUF shall now be

entitled to deduction of up to Rs 100,000 in case he makes a fixed deposit

of the period of five years or more. This exemption shall be part of the Rs

100,000 exemption presently available in respect of life insurance

premium, contribution to PF etc.

• High Rate of Interest for senior citizens as well as normal customers in

view of the long term lock-in period enshrined in the scheme

Eligibility

All individual depositors and H.U.F. who have a PAN number are eligible to open

a fixed deposit account. Any individual who is a Resident Indian and has attained

18 years of age can open a Fixed Deposit account;

• In his or her individual capacity, or

• In individual capacity on joint basis.

• Term deposit shall be of following types, namely: -

46

• Single holder type deposits:

The single holder type deposit receipt shall be issued to an

individual for himself or in the capacity of the Karta of the Hindu

undivided family.

• Joint holder type deposits:

The joint holder type deposit receipt may be issued jointly to two

adults or jointly to an adult and a minor, and payable to either of the

holders or to the survivor: Provided that in the case of joint holder

type deposit, the deduction from income under section 80C of the

Act shall be available only to the first holder of the deposit who

should be a PAN holder.

Special Scheme for Savings Bank Account:

Savings account for students:

• Eligibility: Age of the student should be between 12 years and 25 years. For

medical students the upper age limit could be 30 years. The student must

possess valid identification of an institution.

Features:

• - Minimum average quarterly balance (AQB) of Rs. 500. 14

• - Free International Debit Card.

• - Quarterly statement of account.

• - Tele-banking

• iConnect™ Internet Banking

• Savings account for Demat customers:

• Eligibility: Demat account customers of the Bank.

• Features:

• - Minimum average quarterly balance (AQB) of Rs. 1000.

• - Free International Debit Card.

47

• - Quarterly statement of account.

• - Tele-banking

• iConnect™ Internet Banking

• RETAIL ASSETS

• Retail Credit is emerging as one of the focus areas of most of the banks in the

country. The retail credit business here is still very small compared to some of the

developed countries of the world. The business is also in a nascent stage if

compared to the corporate loans in the country and comprises of around 20 % of

the total commercial bank loans.

• The retail credit business is quite well established in tier I cities of the country.

However, it is still in the evolving stage in tier II cities and in the nascent stage in

tier III cities. Consequently, the consumers of tier I cities are the most aware lot,

with the consumers in the tier III cities having a substantially lower awareness. In

spite of this, the level of awareness and the demand from consumers has

increased rapidly in the last couple of years due to the emergence of new

aggressive players in the market.

STUDY POWER

48

Purpose: To provide financial support to deserving/meritorious students for

pursuing higher professional / technical education in India and abroad. To be

provided to meritorious students who have obtained admission to career-oriented

courses, e.g. medicine, engineering, management, either at the graduate or post-

graduate level. This would cover studies proposed in domestic or overseas

institutions.

• Quantum of Loan: The quantum of finance under the scheme is capped at Rs.7.5

lakhs for studies in India and Rs. 15 lacs for studies abroad, which would cover

tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of

loan would be Rs.50, 000

Expenses Considered for the Loan:

- Fees payable to college/university/hostel

- Examination/Library/Laboratory fees

- Purchase of Books/Equipment/Instruments

- Caution/refundable deposits supported by the Institution s bills/receipts

- Travel expenses/passage money for studies abroad

- Purchase of computers (when essential for the completion of the course)

Any other expenses required to complete the course, like study tours/project

work/thesis, etc.

LIFE INSURANCE

In December 2006, AXIS Bank entered into a Bancassurance tie up with MetLife,

for sales of life insurance products through all its branches. MetLife was selected

by AXIS Bank after an extensive assessment of complementary strengths of all

the insurance companies of India.

49

The Bancassurance alliance with MetLife is a referral model whereby leads

generated by the bank are executed by MetLife staff stationed at the bank

branches.

PRODUCTS

• Met Bhavishya - This is a non-par money back policy that provides

guaranteed returns that specially designed to meet children’s educational

expenses at different

• Met Adv Plus - Unit-linked - Met Advantage Plus is a Unit-linked Pension

Plan. It comes with the maximum number of advantages. For one, it ensures that

you lead a comfortable lifestyle. Always. More importantly, it helps you plan

ahead, keeping in mind the escalating cost

• Met Smart Plus - Met Smart Plus is a Unit Linked Life Insurance product,

whole life plan that mature at the age 100. The premium paid is used partly for

insurance cover and the balance is invested in funds to buy unit

• MET Suvidha - a flexible endowment plan, combines savings with security that

provides the unique option of flexibility of choosing both, the term of the policy

and the premium paying term. It gives the flexibility of choosing a term anywhere

bt530

ACHIEVEMENTS:

Business was launched in the Month of December. Performance was however

built up from January and February with record business in March, which is an

Industry record, by itself. Axis Bank – MetLife Partnership has already managed

50

to grab the 3rd place in the Industry in terms of business launched in the month of

March.

Also for the first time in Axis Bank, cash-like incentives have been introduced in

this product line. The incentive campaign seeked to optimize the existing

resources of Bank for lead generation for Life Insurance products while taking

care not to cannibalize the bank’s products and/or shift focus from the core

activities. Integration of life insurance products with the bank’s core activities was

the essence of this incentive campaign. Cash-like incentives will thus be given to

the lead generators to encourage sales of life insurance products, while protecting

the core activity of the various sales channels.

Financial Advisory Services (Mutual Fund)

What is Mutual Fund?

It is a fund established in the form of a trust to raise money through the sale

of units to the public or section of the public under one or more schemesfor

investing in securitiesincluding money market instruments.

Asset Management Company is an organization, which invests in a

diversified portfolio of financial securities on behalf of a pool of subscribers to its

scheme.

Product Portfolio

• At Axis Bank Personal Investment Product team we adopt a strong research

driven recommendation model to help clients choose the best funds based on

qualitative and quantitative parameters.

51

• Apart from this a dedicated financial advisor can also be assigned to the

customer to ensure that the investment requirements are taken care of, smoothly

and efficiently. Our advisors understand the investors profile and lead them

through a structured financial planning process to devise financial solutions best

suited to him. The financial advisors will also help the investor to choose the right

investment products in line with their investment goals.

• Axis offer a unique 'One Page Portfolio Snapshot' report across investment

products to our customers investing in Mutual Funds. This report can be viewed

through our Internet Banking module.

.

ONLINE TRADING SERVICES

Online trading A/c is a new initiative in the wealth management product portfolio of

AXIS bank.This product was launched in the month of May2006.AXIS bank tied

up with a brokerage firm, Geogit Financial Services Limited (GFSL) for providing

online trading services to its customers.To avail this service a customer is

required to open a 3-in-1 account with Axis bank.

The saving bank account and the demat account are to be opened with Axis bank

andTrading account with GFSL.

Online Trading service offered by Axis Bank is a 3-in-1 integrated seamless and

hassle free way to invest and trade in the equities market whenever and wherever

you want through the Internet. The orders can be placed over phone as well if not

accessible to the Internet. The facility helps to trade in the Cash market, Margin

trading and Derivatives. IPOs can also be applied through this facility.

Online Trading A/C s is currently being sold through the Sales channel for

bundled products. The Sales executives complete the documentation and send

the form to Online Trading Desk, CPU for processing. SB a/c opening department

opens the SB a/c, Demat Department opens the Demat a/c and once form is

52

Complete in all respect, the form is sent to Geojit for opening Online Trading A/c.

Geojit opens the account and generates a unique trading code for the client. The

SB a/c and Demat a/c are then linked to the Online Trading a/c to give a seamless

experience to the customer.

• A special sales force dedicated to selling only the Trading accounts is being set

up within the Bank and would be operational from the 2nd quarter of financial year

07-08.

• The product development to extend this product to the Non Resident Indians is

also underway.

• The team needs to regularly coordinate with the Demat team, IT team and the

Trading partner for the smooth running of the product.

• The Online trading department is in the evolution phase. At Central office

currently a four-member team handles the development and sales of this product.

Mostly operational issues have been touched upon so far and there is more to do

in terms of promoting the product and to focus on being counted as one of the

leading service providers.

• GOLD COINS

Axis bank has started retail sales of gold coins in April 2007.The coins are

sourced from Switzerland and sold through select Axis bank branches.The gold

coin retail business is a joint initiative of the treasury, treasury operations and the

Retail Banking Department.While the procurement and pricing part is taken care

of by the other two departments, the ones of sales and sales strategy lies with the

retail banking department.

The coin sales takes place through the various channels in the retail banking

structure as well as through corporate sales sourced through other departments of

the bank.The retail business has immense potential in terms of fee income.The

main challenge in this product is to design different strategies across geographies

and customer types utilizing different channels to push sales through branches.

53

INVESTMENT

Financial assessment of client is the strategic centerpiece of our advisory

processes.Our work with a client begins with understanding their needs in detail

and what he or she wants to achieve-family,financial modeling to create side-by-

side comparisons of how different choices will affect our client’s financial situation.

After completing the assessment, we introduce various instruments and compare

their impact on long-term outcomes for the client. By creating and comparing

different scenarios, we can demonstrate in detail the outcomes of each, and the

client can determine which scenario best accomplishes his or her objective

Equity:

Axis feel that a long-term investment in good stock offers higher growth. It have

tailored two sets of model portfolios, namely High risk & Low risk. The weightage

given to stocks and sectors makes the portfolio high risk or low risk. Depending on

client’s objective we recommend him either high risk or low risk portfolio. The

team of experts keep regular track of stocks, which form part of Model portfolio.

Depending on company’s performance and other developments we recommend

suitable strategy to our clients.

Mutual Fund:

The team of analysts identifies excellence in investment management through

cutting edge research of various schemes and fund houses. The team evaluates

54

the performance of a scheme and the consistency of that performance relative to

other schemes. Supported by this expertise we recommend investments to our

clients in different funds with impressive track record and a disciplined approach.

It study various parameters and performance measures like returns in last few

years, experience of fund managers, nature of Fund, constituents of the fund, and

portfolio diversification measures. Depending on client’s profile we recommend

investment in a mutual fund and therefore structure a portfolio most appropriately.

• Deal Execution:

Axis execute trades on behalf of our clients through channel brokers. Relationship

Managers send the orders to dealing team in a prescribed format. The onus of

verifying Cash balance and other details is on Relationship Managers. There are

three modes of placing an order which are listed below in the order of their

preference:

Deal Execution

Execution of Equity deals:

• Dealing team, after receiving order in prescribed format and through specified

medium, sends it to the channel brokers via email. Brokers after executing the

trade send the confirmation to the dealing team, which in turn is sent to the

relationship managers. In exigencies, wealth managers do place order over

phone, which is enabled with voice recording system. Call center team manages

voice recording system

Summary of trades that are executed in a day is sent to operations team after

market hours along with trade orders and confirmations for reconciliation purpose.

Execution of Mutual Fund deals:

Dealing team, after receiving order prescribed format and through specified

medium, sends it to the operation team, which executes Mutual Fund deals.

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Knowledge sharing:

To educate our clients we publish below mentioned publications at regular

intervals

CARDS DIVISION:

AXIS Bank Credit Cards

Core Credit Card Variants

AXIS Bank has formally launched its credit cards on August 3, 2006. The Bank is

offering its credit cards on the Visa platform and has four core variants – Gold,

Silver, Gold Plus and Silver Plus.

The Bank offers the following attractive benefits in addition to the standard credit

card features:

• Complimentary flight vouchers: Gold Plus cardholders will be entitled to a

complimentary return flight voucher and Silver Plus cardholders to a one-way

flight voucher. The customers can choose from 29 destinations across the

country.

• Fabulous discounts on hotels: Gold Plus cardholders will get a guaranteed 50%

discount at 120 hotels in the country all year round. Silver Plus cardholders will be

entitled to a 10 – 50 % discount at 1500 hotels worldwide.

• Comprehensive insurance package: This includes an air accident insurance of

Rs. 20 lac for the Gold card customers, personal accident policy, zero lost card

liability, purchase protection and loss of baggage / passport.

• Fuel surcharge waiver across all pumps is available for all the Gold Plus

customers. The same benefits are also extended to add on cardholders making it

a very attractive package for the customers.

• The Bank also plans to launch its Platinum card variant soon. These cards will

have an embedded chip and will be EMV compliant which will offer additional

security against card frauds. The Bank has tied up with a rewards solution

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provider to enable instant rewards and surprises for their customers on the basis

of the recency, frequency and value of transactions.

• The Bank has set up a fully owned subsidiary UBL Sales for managing the card

sales and to enable it to focus on the quality of acquisition along with a quick ramp

up of the business at a national level.

DEBIT CARD:

• A Debit Card provides on-line direct electronic payment from a Bank Account

for payments at Merchant Establishments (shops, restaurants, petrol pumps

etc.), and access to ATMs for cash withdrawals and inquiries. It can be used

both as an ATM Card and as a method of payment (instead of cash /

cheques) when purchasing goods and services.

• The difference between a Debit Card and a Credit Card is the difference

between "debit" and "credit." Debit means "subtract." When you use a debit

card, you are subtracting your money from your own bank account. Debit

cards allow the customer to spend only what is in the customer’s bank

account. It is a quick transaction between the merchant and the customer’s

personal bank account.

• Credit is money made available to the customer by a bank or other financial

institution, like a loan. The amount the issuer allows the customer to use is

determined by the customer’s credit history, income, debts, and ability to pay.

The customer may use the credit with the understanding that he will repay the

amount, plus interest if the customer does not pay in full each month. The

customer will receive a monthly statement detailing the charges and payment

requireme

COMPETITOR

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The main competitor of is AXIS bank is SBI because this bank is totally taken by

government after this bank ICICI bank is the main competitor of AXIS bank

.There are different types of segment operation semment, investment and

services, demat and NRI services.The competitor from the operation segment

are State Bank of India(SBI), ICICI, Housing Development and Financial

corporation(HDFC) etc.From the investment And service sector HDFC standard

life insurance corporation, ,Reliance Life Insurance Corporation, SBI Life

insurance,Life Insurance Corporation of India.In demat section India

bull,Anangram,SBI,HDFC,India Infoline are the main competitor of AXIS

bank.There are some other company who also compete with the AXIS bank

After the SBI the HDFC & ICICI bank is the main competitor of AXIS bank.

HDFC Bank Ltd. is a commercial bank of India, incorporated in August 1994,

after the Reserve Bank of India allowed establishing private sector banks. The

Bank was promoted by the Housing Development Finance Corporation, a

premier housing finance company (set up in 1977) of India. HDFC Bank has

1,500 branches and over 2,890 ATMs, in 530 cities in India, and all branches of

the bank are linked on an online real-time basis. As of September 30, 2008 the

bank had total assets of INR 1006.82 billion.

State Bank of India is the largest bank in India. It is also, measured by the

number of branch offices and employees, the second largest bank in the world.

[citation needed] The bank traces its ancestry back through the Imperial Bank of

India to the founding in 1806 of the Bank of Calcutta, making it the oldest

commercial bank in the Indian Subcontinent. The Government of India

nationalised the Imperial Bank of India in 1955, with the Reserve Bank of India

taking a 60% stake, and renamed it the State Bank of India. In 2008, the

Government took over the stake held by the Reserve Bank of India.SBI provides

a range of banking products through its vast network in India and overseas,

including products aimed at NRIs. With an asset base of $126 billion and its

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reach, it is a regional banking behemoth. SBI has laid emphasis on reducing the

huge manpower through Golden handshake schemes and computerizing its

operations.The State Bank Group, with over 16000 branches , has the largest

branch network in India. It has a market share among Indian commercial banks

of about 20% in deposits and advances, and SBI accounts for almost one-fifth of

the nation’s loans.There are some other banks which gives challenging some

how in the banking and service sectorthey are:

• Allahabad Bank

• Andhra Bank

• Bank of Baroda

• Bank of India

• Bank of Maharashtra

• Canara Bank

• Central Bank of India

• Corporation Bank

• Dena Bank

• IDBI Bank

• Indian Bank

• Indian Overseas Bank

• Oriental Bank of Commerce

• Punjab & Sind Bank

• Punjab National Bank

• Syndicate Bank

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• UCO Bank

• Union Bank of India

• United Bank of India

• Vijaya Bank

INTRODUCTION TO TOPIC:

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Meaning of Customer PERCEPTION :

Introduction:

Perception is the process by which we receive and interpret information from the world around us. The world around us consists of various kinds and levels of physical energy. Our knowledge of the world comes through our sense organs, which react to these energies. Certain wavelengths of electromagnetic radiation stimulate our eyes. Our ears sense certain kinds of mechanical vibrations in the air. Our noses and tongues are sensitive to certain chemical stimuli. Sense organs in our skin respond to pressure, temperature changes, and various stimuli related to pain. Sense organs in our joints, tendons, and muscles are sensitive to body movement and position.

The sense organs change the various environmental energies into nervous impulses, which go to the brain. Through the psychological process of perception, the patterns of energies become known as objects, events, people, and other aspects of the world.

The process of perception does not reveal objects and events of the world. We see light and colour, but there is no light or colour in the electromagnetic waves that stimulate the eyes. In the same way, there is no music or noise in the vibrations that stimulate the ear. The brain organizes and interprets nervous impulses from the eyes as light and colour, and impulses from the ears as sound. Together, the sense organs and the brain transform physical energy from environmental stimuli into information about the events around us.

When looking at the illustration on this page, you may first see only a complicated pattern of dark and light areas. As you study the pattern, your first perception may change, particularly if you are told that a bearded man is in the picture. After you have seen the man, it will be almost impossible not to see him when you look at the picture again.

This picture emphasizes two important points about perception. First, stimulation of the sense organs alone does not determine the nature of what is perceived. Second, perception is a dynamic process of "working on" sensory data to produce perceptual objects and events. The "work" involves many physical, physiological, and psychological factors.

Axis bank targets all segment of customer with various types of products and

services. I interacted with a a lot of customers and collect their feedback on the

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given services of company, and feedback are positive response from all point of

view. Customers are beneficiary from both sides monetary as well as non

monetary-

Customer perception is an important component of our relationship with our customers. Given that 90% plus of our orders at some point involve the phone, how we handle the telephone is essential to creating a perception for our customer that aligns with the company mission of service.

What is perception?

According to Stephen P Robbins, Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. The term originated from a Latin word ‘percepio’ meaning receiving, collecting, action of taking possession, apprehension with the mind or senses.

Fred Luthans has defned Perception as a complicated interactions of selection, organization and interpretation of stimuli. According to Luthans, the perceptual process comprises of External environment—Confrontation—Registration—Interpretation—Feedback—Behaviour—Consequence.

Definition of perception :

Perception is a process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment.

“If everyone perceived everything the same way , things would be a lot simpler”. -- Moorhead & Griffin

“Perception may be defined as a process by which individuals organize and interpret their sensory impressions n order to give meaning to their environment”. -- S. P. Robbins

People in organization are bombarded constantly by thousands of visual, auditory, tactile, gustatory and olfactory stimuli. the critical question in study of

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perception is that why do different people have different views for same activity. So this is only being able to answered by studying and defining perception.Perception is defined as the process of selecting, organizing and interpreting or attaching meaning to the events happening in the environment.

In simple terms, perception is understood as the act of seeing what is there to be seen. But what is seen is influenced by the individual, the object, and the situation.

Principles of perception.

There are a number of general principles that help us understand the process of perception. One of the most important is the principle of closure. It tells us that we have the general tendency to perceive things as complete and unified. We tend to "fill in" parts that are missing, or parts that conform to an overall impression.

The principle of constancy states that despite changes that occur in stimulation, we have a strong tendency to perceive objects as constant in size, shape, color, and other qualities. For example, an orange will be perceived with its characteristic color under different kinds of light.

The opposite of the principle of constancy is also important. Sometimes an object or pattern of stimulation will remain constant, but the perceived effect will vary. Look at the grey and black cubes in the illustration on this page. At one moment you will see three complete cubes, and at another you may see five.

Another important principle relates to perceptual context. The perception of an object or event depends in part on the context (surrounding conditions). Look at the two rectangles containing the words World Book in the illustration on this page. The words are printed with the same ink. Do they look the same? Background intensity and colour may affect the colour and intensity of elements upon it. To most people, grey surrounded by black appears brighter and somewhat larger. This effect is called visual induction. Notice, too, that the effect is opposite to that observed with the two grey triangles with black and white detail. In this case, the grey with black detail appears darker rather than brighter.

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Perception pyramid :

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Understanding perception

Types of perception :

Perception has three levels of complexity:

• Detection

• Recognition

• Discrimination

Detection refers to whether people can sense that they are being stimulated by some form of energy. For example, a light may be so dim they can barely detect its presence.

Recognition means being able to identify as well as detect a particular pattern of stimulation.

Discrimination means being able to perceive one pattern of stimulation as different from another. For example, a person may hear slight differences between two similar musical tones.

The field of study that deals with levels of perception is called psychophysics. Experimental psychologists investigate the relationships between the physical properties of stimulus patterns and the perceived effects of the stimuli. For example, they may study the relationship between sound frequency and the perceived.

Perception is based on :

• Genes• Personality• Culture• Experience

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How Does Perception Work ?

Perception is influenced by :

the perceiver

the target

the situation

Factors affecting perception

Various factors influence what and how we perceive. Our perceptions are influenced by the ways our bodies are structured to receive and process stimuli from the environment. Our perceptions also reflect our emotions, needs, expectations, and learning.

Receptors :

Each sensory system, such as vision, hearing, or touch, has its own specialized body parts. These parts are called receptors, and they change energies from the environment into nervous impulses. The human eye, for example, has two major kinds of receptors in the retina (the light-sensitive part of the eye). These receptors are called rods and cones. The rods respond to the intensity of light, but not to different frequencies of light (different colours). The cones do respond to different frequencies of light, and are called colour receptors. The rods allow us to see in dim light, and the cones enable us to see colours and sharp detail in bright light. Thus, the particular ways that receptors are structured and function help determine the perceptual effects related to them.

The brain:

Certain physical and functional features of the brain also determine some aspects of perception. The part of the brain that serves vision has different kinds of cells that respond only under certain conditions of stimulation. Some of these cells respond only when a light goes off. Others respond when a light comes on, but they stop responding if the light stays on. Such cells also are arranged in special ways in the brain, and this fact is related to how we perceive. For example, some cells are arranged in columns or in clusters. Such arrangements are related to how we perceive edges and forms. Experiments suggest that some cells in the brain allow us to perceive movement.

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Learning, emotion, and motivation.

Much evidence points to the conclusion that early experience, learning, emotion, and motivation are important in defining what and how we perceive. Part of this accumulating evidence comes from experiments that compare how people in different cultures perceive things. The perception of such things as form, colour, pain, and touch may differ from culture to culture, depending on habits and customs, and training of children.

A simple example of how learning can affect perception is provided by reading the phrases inside the two triangles in the illustration on the next page. Did you fail to see the duplicate word in each phrase? Most people do, and some continue to do so even with many repeated readings. In learning to perceive words and sentences, we learn not to perceive each letter and word separately. Instead, we become able to scan the overall pattern and "fill in" the remainder. A poor reader is more likely than a good reader to see the duplicate word in each phrase.

Some illusions are related to learning and past experience. An illusion is not a false perception, as many people believe, but one that is inconsistent with another perception. Since perception does not literally reveal the environment, no sensory system is closer to some absolute truth than any other. We tend to check visual illusions against touch, but touch can involve illusory effects, too. Look at the two triangular patches of grey containing black and white detail in the illustration on this page. If you see the patches as being different shades of grey, you are experiencing an illusion. The patches are the same shade of grey.

Emotions and motivation can have an important effect on perception. Sometimes a severe emotional disturbance can prevent perception completely, as when emotional shock causes individuals to lose their hearing temporarily. We are more likely to perceive those aspects of our environment that are related to our motives. For example, motivation can affect the perceived characteristics of objects. To hungry people, food may appear larger or more colourful than usual.

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Understanding perception :

Perceptual Selectivity :

• Perceptual selection is the process by which people filter out irrelevant or less significant information so that they can deal with the most important matters.

Perceptual Selection is determined by

External Factors

Internal Factors

External Factors affecting perceptual selection:

Size

Intensity

Repetition

Novelty and familiarity

Contrast

Motion

Size: The larger the size, the more likely it is to be perceived. The tallest person in the office will invariably be noticed.

Intensity: The more intense an external factor (bright light, loud noise, high pitch sound etc.) the more likely it is to be perceived. One may notice that the TV commercials always have high pitch as compared to normal telecast.

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Contrast: External factors that stand out against the background or things that are not which people expect are more likely to be perceived.

Motion: A moving factor is more likely to be perceived than stationary factor. Films (motion pictures) attract people more than a static picture.

Repetition: A repeated factor is more likely to be noticed. Marketing managers use this principle in trying to get attention of the prospective customers.

Novelty and familiarity: Either novelty or familiarity will can attract attention. People would quickly notice a person riding an elephant on a busy street in Delhi. On the other hand, one is likely to spot a familiar face in a crowd or a familiar voice even if there is a lot of noise and confusion.

A combination of these or similar factor may be operating at any time to affect perception. Along with the internal factors, they determine whether any particular stimulus is more or less likely to be noticed.

Internal factors affecting perceptual selection :

Personality

Learning

Motivation

Personality:

Personality has an interesting influence on what and how people perceive. For example, conscientious people tend to pay more attention to external environmental cues than does a less conscientious person. Less conscientious

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persons are impulsive, careless, and irresponsible. They see their environment as hectic and unstable which affects the way they make perceptual selections. On the other hand, more conscientious people organize their perceptions into neat categories, allowing themselves to retrieve data quickly and in an organized manner. In other words, they are careful, methodical, and disciplined in making perceptual selections.

Learning:

Learning determines the development of perceptual sets. A perceptual set is an expectation of a particular interpretation based on past experiences with the same or an identical object. In organizational settings, past experiences of the managers and employees influence their perceptions to a great extent.

Motivation:

A person’s most urgent needs and desires at any particular time can influence perception. People perceive things that promise to help satisfy their needs and that they have found rewarding in the past. Also, according to Pollyanna principle, people process pleasant event more efficiently and accurately than they do unpleasant events. For example, an employee who receives both positive and negative feedback during the appraisal meeting may more easily and clearly remember the positive statements than the negative ones.

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Perceptual Organization :

Figure-ground:

Perceived objects stand out as separable from their general background. In the context of organizations, a company may import a new technology in order to compete in the globalized economy. Here import of a new technology is a figure and global competitive environment is the background. The employees will immediately notice the installation of new technology whereas the global competitive environment is not visible by naked eyes.

Perceptual grouping: There is a general tendency among individuals to group several stimuli together into a recognizable pattern. There are certain underlying uniformities in grouping. When simple cons constellations of stimuli are presented to people, they tend to group them together by closure, continuity, proximity, and similarity.

Closure:

An individual may perceive a whole while one actually does not exists. The person’s perceptual process closes the gaps that are unfilled by from sensory inputs. In a formal organization, employees may either see a ‘whole’ that does not exits or not be able to put the pieces together into a ‘whole’ that does exists. For example, head of a project team may take the view that the entire team agrees to his plan of action whereas there are differing views among the team members, which remains unarticulated in a formal manner. On the other hand, a functional team might view/perceive that their objectives are the objectives of the whole company.

Continuity:

An individual tend to perceive continuous lines/patterns. This leads to inflexible thinking on the part of organizational members (both managers and employees). Thus, only the obvious, continuous patterns or relationships are perceived. For example, a new design for some production process or product may be limited to obvious flows or continuous lines/patterns. New innovative ideas or designs may not be perceived.

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Proximity:

A group of stimuli that are close together will be perceived as a whole pattern of parts belonging together. For example, several employees in an organization may be identified as a single group because of physical proximity. Several workers who work on a particular process may be viewed as a single whole. If the output is low and the supervisor reports a number of grievances from the group, the management may perceive that all the workers working on that particular process are trouble makers whereas in some of them might be loyal and dedicated employees.

Similarity:

The greater the similarity of stimuli, the greater is the tendency to perceive them as a common group. Similarity is conceptually related to proximity but in most cases stronger than proximity. In an organization, all employees who wear blue collars may be perceived as a common group, when in reality, each employee is a unique individual. This might also lead to perceptual error termed as stereotyping.

Perceptual Constancy:

There are two issues. While objective reality of stimuli remains unchanged, people’s subjective reality also remains constant. That is, the individual is likely to give meaning to stimuli in the same way whenever exposed to them unless and until objective reality has been revealed more broadly by way of undoing the perceptual errors. For example, a manager in the company who believes that female employees are poor performers would continue to have the same perception until and unless the latter prove that they are better than their male colleagues.

Perceptual Context:

It gives meaning and value to simple stimuli in the environment. The organizational culture and structure provide the primary context in which workers and managers perceive things. Thus, a verbal order, an e-mail message, a new policy, a suggestion, a raised eyebrow, a pat on the back takes on special meaning and value when placed in the context of work organization.

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Process of Perception :

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CUSTOMER PERCEPTION:

Customer perception is an important component of our relationship with our customers. Given that 90% plus of our orders at some point involve the phone, how we handle the telephone is essential to creating a perception for our customer that aligns with the company mission of service.

In today’s globalising economy competition is getting more and more fierce. That means it becomes more difficult for products and services to differentiate themselves from other offerings than ever before. Not only is the number of competitive offerings rising due to globalisation of production, sourcing, logistics and access to information. Many products and services face new competition from substitutes and from completely new offerings or bundles from industry outsiders. Since product differences are closed at an increasing speed and many companies try to win the battle for customers by price reductions, products and services tend to become commodities.

On the other hand, customer behaviour becomes more hybrid. On one hand, customers are increasingly price sensitive – searching for bargains at marketplaces like ebay or buying their groceries at discount markets. On the other hand they enjoy branded and luxury goods. One and the same person may plan a weekend trip with a no-frills airline and a stay at a five-star-hotel.

In the result, customers have a wider choice of often less distinguishable products and they are much better informed. For many offerings the balance of power shifts towards the customer. Customers are widely aware of their greater power, which raises their expectations on how companies should care for them.

Bringing it all together, it becomes ever more difficult to differentiate a product or service by traditional categories like price, quality, functionality etc.

In this situation the development of a strong relationship between customers and a company could likely prove to be a significant opportunity for competitive advantage. This relationship is not longer based on features like price and quality alone. Today it is more the perceived experience a customer makes in his various interactions with a company (e.g. how fast, easy, efficient and reliable the process is) that can make or break the relationship. Problems during a single transaction can damage a so far favourable customer attitude.

The consequence for companies is that they have to adapt their ways of competing for customers. Traditionally, companies have focused their efforts of customer relationship management on issues like customer satisfaction and targeted marketing activities like event marketing, direct marketing or advertising. Although doubtless necessary and beneficial, these activities are not longer

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enough. They narrow the relationship between company and customer down to a particular set of contacts in which the company invests its efforts. Most likely this will produce not more than a satisfied customer who is well aware of the companies offerings and has a positive attitude towards them. However, a satisfied customer is not necessarily a loyal one.[2]

If a customer is satisfied that means that a product of service has met his expectations and that he was not dissatisfied by it. Customer satisfaction is doubtlessly very important. It is the precondition for repeat purchases and it prevents the customer from telling others about his disappointing experiences. A loyal customer, however, is more than a customer who frequently purchases from a company.

The difference is the emotional bond which links the customer so closely to the company that he develops a clear preference for these products or brands and is even willing to recommend them to others. Loyal customers truly prefer a product, brand or company over competitive offerings. Thus loyalty goes beyond a rational decision for known quality or superior price-performance-ratio. It is about the customers’ feelings and perceptions about the brand or product.

When the customer makes his buying decision, he evaluates the benefits he perceives from a particular product and compares them with the costs. The value a customer perceives when buying and using a product or service go beyond usability. There is a set of emotional values as well, such as social status, exclusivity, friendliness and responsiveness or the degree to which personal expectations and preferences are met. Similarly, the costs perceived by the customer, normally comprise more than the actual price. They also include costs of usage, the lost opportunity to use an other offering, potential switching costs etc. Hence, the customer establishes an equation between perceived benefits and perceived costs of one product and compares this to similar equations of other products.

Based on this, customer loyalty can be understood as to how customers feel about a product, service or brand and whether their perceived total investments with a it live up to their expectations.

The important point here is the involvement of feelings, emotions and perceptions. In today’s competitive marketplace, these perceptions are becoming much more important for gaining sustainable competitive advantage.

Customer perceptions are influenced by a variety of factors. Besides the actual outcome – i.e. did the product or service deliver the expected function and did it fulfil the customers need – the whole process of consumption and all interactions involved are of crucial importance. In today’s globalised information driven economy this can also comprise issues like

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How other customers or influencing groups perceive the product or brand

The degree to which the customer feels the actual marketing campaign addresses the most important issues

Responsiveness and service quality of any affiliates, e.g. distribution partners

Customer perceptions are dynamic. First of all, with the developing relationship between customer and company, his perceptions of the company and its products or services will change.

The more experience the customer accumulates, the more his perceptions will shift from fact-based judgements to a more general meaning the whole relationship gains for him. Over time, he puts a stronger focus on the consequence of the product or service consumption.

Moreover, if the customers’ circumstances change, their needs and preferences often change too. In the external environment, the offerings of competitors, with which a customer compares a product or service will change, thus altering his perception of the best offer around. Another point is that the public opinion towards certain issues can change. This effect can reach from fashion trends to the public expectation of good corporate citizenship. Shells intention to dump its Brent Spar platform into the ocean significantly altered many customers perception of which company was worth buying fuel from.

Research has been don on the impact of market share on the perceived quality of a product.[3] Depending on the nature of the product and the customers’ preferences, increasing market share can have positive or negative effects on how the customer perceives the product.

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Positive effects of increasing market share on customer perception Increasing market share can send out positive signals by acting as an

indicator of superior quality that is recognised by more and more other

customers. This effect is particularly strong for premium priced products.

Customers normally assume that a product must be of exceptional quality if it can

gain such an unexpected market success despite its high price.

Many brands offer positive emotional benefits of using a product that is

popular in the markets.

The value of a product or service can rise through increasing number of

users of the same product, e.g. number of members of an online community,

better availability of software for popular computer systems.

Negative effects of increasing market share on customer perception For premium and luxury products, customers may translate an

increasing market share into a loss of exclusivity and thus perceive it as less

valuable.

The quality of services may suffer if they are consumed by increasing

numbers of users. Diseconomies of scales and congestions can be observed with

busy airports and many other services so that customers may look out for other

providers that promise more timely service and convenience.

The concept of customer perception does not only relate to individual customers

in consumer markets. It is also valid in business to business situations. For

example, a competitor benchmarking survey of a large industrial supplier

revealed that the market leader, although recognised for excellent quality and

service and known to be highly innovative, was perceived as arrogant in some

regions. If we take into consideration that there are about four other large players

with a similar level of quality and innovative ideas, this perceived arrogance could

develop into a serious problem. Customers here are well aware the main

characteristics of all the offerings available at the market are largely comparable.

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So they might use the development of a new product generation of their own to

switch to a supplier that can serve them not better or worse, but with more

responsiveness and understanding.

Companies have done a lot to improve customer satisfaction and customer

relationships in the past. As discussed above, this will not be enough any more.

Any serious effort to manage customer perceptions starts with a good

measurement system. Companies must be truly willing to look at the whole

process of interaction through the customers eyes. For many companies, this

requires a more or less extensive shift in mindset, since most departments from

development to sales will be involved.

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RESEARC H METHODOLOGY:

1. MEANING OF RESEARCH

Research in common parlance refers to a search for knowledge.

One can also define research as:

“A scientific and systematic search for pertinent information on a specific

topic.”

According to Clifford Woody:

“Research comprises defining and redefining problems, formulating

hypothesis or suggested solutions, collecting, organizing and evaluating

data, making deductions and reaching conclusions and at last carefully

testing the conclusions to determine whether they fit the formulating

hypothesis.”

In general terms ‘research’ refers to:

“The systematic method consisting of enunciating the problem ,formulating

a hypothesis ,collecting the facts or data ,analyzing the facts and reaching

certain conclusions either in the form of solutions towards the concerned

problem or in certain generalizations for some theoretical formulation.”

Research methodology is a systematic way, which consists of series of action

steps, necessary to effectively carry out research and the desired sequencing to

these steps. The marketing research is a process of involves a no. of inter-

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related activities, which overlap and do rigidly follow a particular sequence. It

consists of the following steps:-

• Formulating the objective of the study

• Designing the methods of data collection

• Selecting the sample plan

• Collecting the data

• Processing and analyzing the data

• Reporting the findings

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STEPS:

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Objective of Study

Research Design

Sample Design

Data Collection

Data Analysis

Report of findings

2. OBJECTIVE OF THE STUDY

The objective of the study can be divided into two parts:

• Primary Objective

• Secondary Objective

• PRIMARY OBJECTIVE

The primary objective of the study is to gain knowledge about the customer

perception about AXIS Bank through extensive market survey and customer

orientation programmes so that the bank can use this study for the further

operations.

• SECONDAR Y OBJECTIVE:

1. To study customer perception about AXIS BANK Ltd

2. To help in increasing the business of the bank

3. To identify the major attributes of customer perception.

4. To increase the awareness of AXIS Bank Ltd. In people.

5. To identify and study the various ways of ensuring customer satisfaction

adopted by AXIS BANK Vs HDFC,ICICI & SBI.

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PREPARING THE RESEARCH DESIGN:

“A research design is the arrangement of conditions for collection and analysis of

data in a manner that aims to combine relevance to the research purpose with the

economy in procedure.”

In fact the research design is the conceptual structure within which research is

conducted, it constitutes the blue print for the collection, measurement and

analysis of the data. As such the design includes an outline of what the

researcher will do from writing the hypothesis and its implications to the final

analysis of the data.

DATA COLLECTION TECHNIQUES:

This project consists of two parts.

The first part is a study of the banking industry, AXIS Bank using secondary

data sources. This secondary information has been sourced from the internet

and from business related magazines and newspapers

.

The second part of the study has been done using an exploratory research

process and a structured questionnaire was developed for this purpose. For the

collection of primary data this was the only method used. The reason I used this

method is because a need was felt for the free influx of information about the

products. Also this method allowed the use of skills gained in class.

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The researcher selected “Questionnaire Method” taking into consideration the

nature of investigation , and scope of the inquiry, financial resources ,available

time and the desired degree of accuracy. The questionnaire served as a base for

ready machine processing of data and analysis.

SAMPLE DESIGN:

The population considered for the purpose of the survey was people residing in

Hanumangarh.

UNIVERSE: HANUMANGARH (JUNCTION AND TOWN)

SAMPLE SIZE: 50 customers

I have restricted the sample size to 50 respondents. This was done keeping in

mind the time constraints and the fact that I felt that this number would be

enough to serve the information needs required to show the trends.

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TYPE OF RESEARCH :

Descriptive Research

SAMPLING METHOD:

Randomly Sampling

A random sample gives every unit of the population a known and non-zero

probability of being selected. Since random sampling implies equal probability to

every unit in the population, it is necessary that the selection of the sample must

be free from human judgment.

There is some confusion between the two terms ‘random sampling’ and

‘unrestricted’ random sampling. In the latter case, each unit in the population has

an equal chance of being selected in the sample. Such a sample is drawn ‘with

replacement’, which means that the unit selected at each draw is replaced into

the population before another draw is made from it, ‘As such, a unit can be

included more than once in the sample. Most statically theory relates to

‘unrestricted random sampling. In order to distinguish between these two sample.

I.e. sample, without replacement and sample with replacement, the terms

‘sample random sample’ and ‘unrestricted random sample’ are used. If the latter

is devised in such a manner that no unit can be included more than once, it will

then be known as the simple random sampling.

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It may be noted that while both sample random sampling and unrestricted

random sampling give an equal probability to each unit of the population for

being included in the sample, there are other sample design too which provide

equal probability to the units. The process of randomness is the very core of

simple and unrestricted random sampling. The selection of a sample must be

free from bias, which can be ensured only when the process of selection is free

from human judgment.

DATA COLLECTION METHOD:

Questionnaire Method

LIMITATIONS: -

• Lack of interest shown by the respondents resulted in incomplete

responses.

• Time Period allotted for the project compared to Geographical area

was quite less.

• Poor and ambiguous responses were there because of some

respondents responded without clearly understanding the questions.

But this was minimized as far as possible because the interviewer

assisted the respondents.

• Financial constraint: Resources allotted was scarce.

• Contacting the customers was a difficult job.

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ANALYSIS & INTERPRETATION:

Q 1: -AGE OF PEOPLE

Inference:- The above chart is showing that 45% of the customers are between

Less than 29 years of age who avails maximum banking and investing services.

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Q2.WHICH OCCUPATION DO YOU BELONG ?

OCCPATION SERVICE BUSINESS STUDENT OTHERS

% OF RESPODENTS

44 28 8 20

88

45%

10%

35%

10%

INTERPRETATION;

This pie chart clearly reveals that service holders have occupied major chunk of people. They can enjoy the all facilities which are available on AXIS Bank’s account. Businessman has also liked it but their contribution in this pie chart could be said satisfactory reason for this could be attributed to availability of under product, which really suits them, is current account.

Q3.HOW MUCH OF YOUR GROSS INCOME GOES FOR INVESTMENT?

89

0-10% 10%-20% 20%-30% 30%-above

16 1911

4

Series 1Series 1

With the survey an attempt was made to find out that how much part of the

income of bank customers goes for investment. Out of 50 customers 16 persons

invest 0-10% of their income, 19 invest 10%-20%, 11 invest 20%-30% and only 4

persons invest around 30% and above of their income. Among the persons who

invest around 0-10% mostly fall in the income level of 0-1.5 lac. While looking at

the data it seems that bank customer are conscious about investing the money

and earning good returns.

Q 4: - IN WHICH BANK OR ANY OTHER FINANCIAL INSTITUTE

DOES YOUR BANKING AND INVESTMENT WITH?

90

8%

35%

10%

47%

institution

Axis

SBI

ICICI

Others nationalize bank

Inference:- This reveals that people do banking with SBI Bank as compare to

other banks.

Q5.ARE YOU SATISFIED WITH THE SERVICES YOUR BANK IS PROVIDING?

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When customers were asked a question regarding their satisfaction with their

respective banks 42 customers respond in a positive way and say that they are

fully satisfied with their present bank because of their excellent services, good

product line, and additional benefits that they give to their customers but in the

survey 8 customers are such also who are not satisfied with their banks because

of unnecessary expenses, poor services etc.

6. WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU

MOST OPEN SAVING ACCOUNT IN ANY BANK?

92

YES NO

42

8

Series 1Series 1

37%

17%15%

21%

10%

People Like To Open an A/c

ATM

CHEQUE BOOK

Internet Banking

working Hour

Value added Services

Mainly ATM facility attracts people much.

7:-WHICH TYPE OF SERVICE PREFERS THE MOST BY YOU?

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50%

20%

15%

5%10%

services prefer most by customer

ATM

Net Banking

Core Banking

Mobile Banking

Retail Banking

8:-WHICH OF FOLLOWING BANKS DO YOU HAVE ACCOUN

94

20

118

6 5

SBI ICICI Axis Hdfc Others

Customer Having Bank A/CCustomer Having Bank A/C

9:-WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?

95

18

8

16

8

Saving Current Fixed Deposit Others

Customer Having A/CCustomer Having A/C

10:-HOW DO YOU COME TO KNOW ABOUT THESE SERVICES?

96

Advertisement36%

Friends & Relative

29%

Selling agent21%

Others14%

Awareness

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11:-WHAT THE PEOPLE THINK ABOUT THE BANKS?

49%

33%

7%11%

People Think About Bank

Security

Saving

Imposition of a burden of expenses

Others

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12-WHAT A RESPONDENT SEE IN PURCHASE OF NEW PLAN FROM BANKS?

Standing and goodwill of the

company 41%

Product range of the company

13%

Services being given by the company

28%

Advertisement being released by

the company18%

Peope See In Perchasing New Plan

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13:-IS AXIS BANK PROVIDE BETTER FACILITIES THAN SBI, ICICI & HDFC BANK?

38%

45%

17%

Services

Yes No Cant Say

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14:-HOW WOULD YOU RATE PRODUCT OFFERED AXIS BANK THAN OTHER?

Very Good Good Moderate Less Poor

Rating 5 4 3 2 1

34%

28%

17%

13%8%

Product Range

Very Good Good Moderate Less Poor

15:-HOW WOULD YOU RATE PRODUCT SERVICE / PRODUCT VS. COST BY AXIS BANK?

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14%

30%45%

11%

Cost

Very High High Moderate Less

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16:-HOW WOULD YOU RATE SERVICES OFFERED BY AXIS

BANK?

Extremely Satisfaction

12%

Satisfaction34%

Moderate20%

Dissatisfaction26%

Extremely Dissatisfaction

8%

Satisfaction

SWOT ANALYSIS:

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STRENGTHS

• AXIS bank enjoys a very good reputation and goodwill in the minds of

general public.

• The bank has a wide range of products in order to suit the needs of

every segment of the society.

• The bank also has a very good ATM Network with over 4000 ATMs,

which have been placed very well in different parts of the country at

prominent places.

• AXIS Bank has a very good network of 1035 branches that are spread

across different cities of the country and it is still expanding on that number.

• The bank currently has a very good customer base and it is

expanding very fast on it.

• AXIS Bank staff is a blend of experience and young personality which

is a well knit team sincerely devoted to their work.

• AXIS Bank has the state of the art and fully computerized

technology .All the branches of the bank are networked so that any account

holder can make transaction in any branch of the bank irrespective of the fact

that he ahs a account with that branch or not.

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WEAKNESS

• Less awareness amongst the general masses.

• Unawareness about the different services of AXIS bank like NRI

schemes, foreign remittance.

• Relatively the number of branches is less as compare to the other

private banks.

• The numbers of marketing executives are very low.

OPPORTUNITIES

• People’s dissatisfaction towards nationalized banks in terms of service

has turned out to be a blessing for private banks. AXIS bank with its brand image

can be benefitted to a large extent by this opportunity.

• Their lies great scope in forex department which if utilized to a greater

extent can yield much better results, so AXIS bank can increase its business

volume by exploring export segments.

THREAT

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• Reorganization of public sector bank-all the public sector banks have

started to redefine their services in order to attract customer’s attention.

• Stringent norms by RESERVE BANK OF INDIA at any time in future

can be a threat to private banks as their activities could be adversely

affected.

FACTS & FINDINGS

• Most of the respondents are either serviceman or businessman.

Serviceman have occupied a major chunk and businessman has also

liked it but their contribution in this bar could be said satisfactory.

• Most of the customer wants quick service and proper information while

dealing with the products and services of Axis. Factor like less formalities

of document while opening an account and variety of product do not make

a big impact on customer behavior.

• It was found from the study that bank believes in quality service rather

than quantity of service.

• The officials employed are very much enthusiastic about their job.

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• The officials try to make best relation with the customers.

• The marketing strategy of the bank is very attractive.

• The bank always tries to attract customers with innovative offers

• The important facts which we could conclude from our data regarding the

buying behavior of individuals are that people give maximum importance

to the income growth.

• Regarding the acceptance of AXIS Bank as a financial institution over

other banks it is analyzed that though a lot of our sample population was

aware about it and had invested in it.

• Talking of its the market share of the leading players it was found that

AXIS rules when it comes to an age group of under 50 due to the

credibility and trust it has gained in all past years. This age groups prefer

to explore the leading private players including AXIS Bank.

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• In hanumangarh, only AXIS Bank is providing the facility of deposit

through ATM machines.

• But still people mostly prefer SBI BANK in HANUMANGARH.

• In HANUMANGARH, there is only two ATM machines of AXIS Bank, that’s

why people does not prefer AXIS Bank.

RECOMMENDATIONS & SUGGESTIONS:

• Effective marketing research activities should be organized.

• Customers/client’s complaints should be considered and try to short

out with minimum time.

• Increase the sources for reliable information.

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• We know that the products and services offered by the bank are the best

but more or less similar are offered by other banks as well e.g. Citibank,

standard chartered etc,so promotional campaigns are must in this era of

stringent competition.

• The bank should consistently try to improve and upgrade its

technology with the global standard in order to provide excellent customer

satisfaction

• Ethical codes and conducts should be followed by the organization.

• We know that in this world of intense competition everyone is trying

to prove itself best in its respective field therefore we can conclude that there

is always an edge of improvement and hence the brand should work on that.

• Establish and coordinate business relation with big corporate

houses across the country.

• AXIS can improve upon its efficiency by not changing its staff

frequently. By doing this bank can continue to create, maintain and grow

strong relationship with its existing customers.

• In Hanumangarh , there is only two ATM machines of AXIS BANK

that’s why people does not prefer AXIS BANK. So they should establish

more ATMS.

• Idea behind this is that staff which is already working for bank is

well acquainted with the nature and wants of the existing customers.

• Bank has to conduct customer awareness programs.

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CONCLUSION:

• Customer perception means consumers can evaluate a product along

several levels. Its basic characteristics are inherent to the generic version

of the product and are defined as the fundamental advantages it can offer

to a customer.

• Generic products can be made distinct by adding value through extra

features, such as quality or performance enhancements.

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• The final level of consumer perception involves augmented properties,

which offer less tangible benefits, such as customer assistance,

maintenance services, training, or appealing payment options.

During the project study, I found customer perception and views about product

and services of AXIS BANK.

• On the above basis of survey, researcher can recommended that though

the customer are satisfied with the services provided by AXIS BANK.

There is a vast scope of improvement in the level of satisfaction .Ths can

be taking care of suggestion given by different customers. It was also

observed that through the bank has launched various innovative products.

• Comparative study of financial products and services of AXIS BANK with

other banks shows that 38 % customer satisfied with the product and

services of AXIS BANK.

• Most of the people want quick services and proper information when they

visit a bank first time and while opening an account in the bank.

• So as a conclusion ,we can say that most of customer or people are

satisfied with the products and services of AXIS BANK.

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BIBLIOGRAPHY:

Books:-

Literature provided by the bank

Research methodology methods and techniques (C.R Kothari)

Websites:-

www.banknet India.com

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www.axisbank.com

Google.com

Wikipedia.org

PERSONNEL

(1)MR.TEZ SINGH NATHAWAT (Branch Manager)

(2)MR.VINOD SETHI (Sales Manager)

(3)MR.PRADEEP CHAHAR

(4)MR.GAURAV SHARMA and the whole Banks staff

ANNEXURE

QUESTIONNAIRE;

Dear SIR/MADAM, I am conducting survey on AXIS BANK. I shall be very

thankful to give your valuable time to me for answering my questions.

Name: _____________________________________

Add: ________________________________________

Contact no: ____________________________________

Gender Male Female

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Income: ≤ 1 laces 1—3 laces 3—5 laces 5—7 laces

1:- In which age group do you belong?

(a) <29 (b) 30-39

(c) 40-49 (d) > 50

2:- Which occupation do you belong?

(a) Service (b) Business

(c) Student (d) Others

3 :- WHICH OF THE FOLLOWING ATTRIBUTES COMPELLED YOU MOST TO

OPEN SAVING ACCOUNT IN ANY BANK?

(a) ATM cum DEBIT Cards

(b) Cheque Book

(c) Internet Banking/ Phone Banking

(D) Working Hours (e) Value Added Services

4:-Which TYPE OF SERVICE PREFERS THE MOST by you?

(a) ATM SERVICE

(b) INTERNET BANKING

(c) MOBILE BANKING

(d) CORE BANKING

(e) RETAIL BANKING

5:- Which of following banks do you have account?

a) ICICI Bank

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(b) SBI Bank

(c) HDFC BANK

(D) AXIS Bank

(e) Other Pls specify ________________

6:- WHAT TYPE OF ACCOUNT DO YOU HAVE IN BANK?

(a) Saving

(B) Current

(c) Fixed

(d) NRI

(e) Others Pls specify ________________________________________

7:-How many services offered by your banks?

(a) D-Mat A/C

(b) Mutual Funds

(c) E-Instructions

(d) LI & GI

(e) Others

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8:- How would you know about these services?

(a) Advertisements

(b) Friends and Relatives

(c) Direct Selling Agents

(d) Others Pls specify _______________

9:- What the people think about the Banks?

(a) Necessity for protection security

(b) Imposition of a burden of expenses

(c) A compulsory tool for SAVING

(d) Others Pls specify _______________

10:- What a respondent see in purchase of new plan from Banks?

(a) Standing and goodwill of the company

(b) Product range of the company

(c) Advertisement being released by the company

(d) Services being given by the company

11:- Is AXIS Bank Provide better facilities than SBI, ICICI & HDFC Bank?

(a) Yes

(b) No

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(c)Can`t Say

12:- How would you rate product offered AXIS Bank than other?

Low 1 – 2 – 3 – 4 – 5 High

13:- How would you rate product service / product vs. cost by AXIS Bank?

Low 1- 2 -3 -4 -5 High

14:- How would you rate services offered by AXIS Bank?

(a) Extremely Satisfied

(b) Satisfied

(c) Moderate

(D) Not satisfied

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