Project of Hena (Pgdfs)

8/9/2019 Project of Hena (Pgdfs)

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A

PROJECT REPORTON

REATAIL BANKING OF AXIS BANK

SUBMITTED BY

HENA AMBER

(PGDFS)

TO

UNIVERSITY OF PUNE, PUNE

IN PARTIAL FULFILLMENT OF

REQUIREMENT

FOR THE AWARD OF DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

SINHGAD BUSINESS SCHOOL,

ERANDAWANE, PUNE.


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D E C L A R A T I O N

I, the undersigned, hereby declare that the Project Report entitled RETAIL

BANKING OF AXIS BANK written and submitted by me to the

University of Pune, Pune in partial fulfilment of the requirements for the

award of degree of Master of Business Administration under the guidance of

MAM RACHANA PHADAKE is my original work and the conclusions

drawn therein are based on the material collected by myself.

Place : Pune

Date: 15th MARCH 10. HENA AMBER(PGDFS)


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GUIDES CERTIFICATE

This is to certify that the Project Report entitled RETAIL BANKING OF

AXIS BANK which is being submitted herewith for the award of the

degree of Master of Business Administration of University of Pune, Pune is

the result of the original research work completed by MISS HENA

AMBER under my supervision and guidance and to the best of my

knowledge and belief the work embodied in this Project Report has not

formed earlier the basis for the award of any degree or similar title of this or

any other University or examining body.

Place : Pune

Date: 15th March10 NAME: RACHANA PHADAKE


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EXECUTIVE SUMMARY

The project titled RETAIL BANKING OF AXIS BANK was basically a

research based project. The main motive behind doing this project is to

know the industry,

have an overview of retail banking,

know the different products available for retail banking by the bank,

current situation and problems and their solutions.

I have recommended :

Concentrate on increasing working capital ratio as it is decreasing

year by year.

Company should increase advertisement tools.

Satisfy existing customers.

Create awareness about different products of retail banking.

Research methodology used for this project is mainly observational method.

The analysis is done by simple table format analysis for simplicity of

understanding.

The project is done in various phases:

First phase: gathering information related to project.

Second phase: analysis of information gathered.

Third phase: findings and solutions.


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TABLE OF CONTENT

S NO. PARTICULARS PAGE NO.1 Industry Profile 01-05

2 Company Profile 06-08

3 Review of

Literature

09-35

4 Objective of

Research

36

5 Research

Methodology

37

6 Analysis and

Interpretation

38-44

7 Findings 45

8 Recommendations 46

9 Limitation 4710 Biblography 48

BANKING IN INDIA

Banking in India originated in the first decade of 18th century. The first

banks were, The General Bank of India, which started in 1786, and Bank of


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Hindustan, both of which are now defunct. The oldest bank in existence in

India is the State Bank of India, which originated in the "The Bank of

Bengal" in Calcutta in June 1806. This was one of the three presidency

banks, the other two being the Bank of Bombay and the Bank of Madras.

The presidency banks were established under charters from the British East

India Company. They merged in 1925 to form the Imperial Bank of India,

which, upon India's independence, became the State Bank of India. For

many years the Presidency banks acted as quasi-central banks, as did their

successors. The Reserve Bank of India formally took on the responsibility of

regulating the Indian banking sector from 1935. After India's independence

in 1947, the Reserve Bank was nationalized and given broader powers.

Early historyThe first fully Indian owned bank was the Allahabad Bank, established in

1865. However, at the end of late-18th century, there were hardly any banks

in India in the modern sense of the term. The American Civil War stopped

the supply of cotton to Lancashire from the Confederate States. Promoters

opened banks to finance trading in Indian cotton. With large exposure to

speculative ventures, most of the banks opened in India during that period

failed. The depositors lost money and lost interest in keeping deposits with

banks. Subsequently, banking in India remained the exclusive domain of

Europeans for next several decades until the beginning of the 20th century.

Foreign banks too started to arrive, particularly in Calcutta, in the 1860s.


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The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860,

and another in Bombay in 1862; branches in Madras and Pondichery, then a

French colony, followed. Calcutta was the most active trading port in India,

mainly due to the trade of the British Empire, and so became a banking

center.

The Bank of Bengal, which later became the State Bank of India .

Around the turn of the 20th Century, the Indian economy was passing

through a relative period of stability. Around five decades had elapsed since

the Indian Mutiny, and the social, industrial and other infrastructure had

improved. Indians had established small banks, most of which served

particular ethnic and religious communities.

The presidency banks dominated banking in India. There were also some

exchange banks and a number of Indian joint stock banks. All these banks

operated in different segments of the economy. The exchange banks, mostly

owned by Europeans, concentrated on financing foreign trade. Indian joint

stock banks were generally under capitalized and lacked the experience and

maturity to compete with the presidency and exchange banks. This

segmentation let Lord Curzon to observe, "In respect of banking it seems we

are behind the times. We are like some old fashioned sailing ship, divided by

solid wooden bulkheads into separate and cumbersome compartments."

By the 1900s, the market expanded with the establishment of banks such as

Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in

Mumbai - both of which were founded under private ownership. Punjab

National Bank is the first Swadeshi Bank founded by the leaders like Lala

Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in

particular inspired local businessmen and political figures to found banks of


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and for the Indian community. A number of banks established then have

survived to the present such as Bank of India, Corporation Bank, Indian

Bank, Bank of Baroda, Canara Bank and Central Bank of India.

Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The

nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi

the then prime minister. The major objective behind nationalization was to

spread banking infrastructure in rural areas and make available cheap

finance to Indian farmers. Fourteen banks were nationalized in 1969. Before

1969, State Bank of India (SBI) was the only public sector bank in India.

SBI was nationalized in 1955 under the SBI Act of 1955. The second phase

of nationalization of Indian banks took place in the year 1980. Seven more

banks were nationalized with deposits over 200 crores.

List of Public Sector Banks in India is as follows:

Allahabad Bank

Andhra Bank

Bank of Baroda

Bank of India

Bank of Maharashtra

Canara Bank

Central Bank of India Corporation Bank

Dena Bank

Indian Bank

Indian Overseas Bank

Oriental Bank of Commerce

Punjab and Sind Bank


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Punjab National Bank

State Bank of Bikaner & Jaipur

State Bank of Hyderabad

State Bank of India (SBI)

State Bank of Indore

State Bank of Mysore

State Bank of Patiala

State Bank of Saurashtra

State Bank of Travancore

Syndicate Bank

UCO Bank

Union Bank of India

United Bank of India s

Vijaya Bank

Private Banks in India

All the banks in India were earlier private banks. They were founded in the

preindependence era to cater to the banking needs of the people. But after

ationalization of banks in 1969 public sector banks came to occupy

dominant role in the banking structure. Private sector banking in India

received a fillip in 1994 when Reserve Bank of India encouraged setting up

of private banks as part of its policy of liberalization of the Indian Banking

Industry. Housing Development Finance Corporation Limited (HDFC) was

amongst the first to receive an 'in principle' approval from the Reserve Bank

of India (RBI) to set up a bank in the private sector. Private Banks have

played a major role in the development of Indian banking industry. They

have made banking more efficient and customer friendly. In the process they

have jolted public sector banks out of complacency and forced them to

become more competitive.

Major Private Banks in India is:


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Bank of Rajasthan

Bharat Overseas Bank

Axis Bank

Catholic Syrian Bank

Centurion Bank of Punjab Dhanalakshmi Bank

Federal Bank

HDFC Bank

ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank Karur Vysya Bank

Kotak Mahindra Bank

SBI Commercial and International Bank

South Indian Bank

United Western Bank

UTI Bank

YES Bank


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AXIS BANK

Axis bank was the first of the new banks to have begun its operations in

1994, after the government of India allowed new private banks to be

established. The bank was promoted jointly by the Administrator of the

specified undertaking of the Unit Trust of India (UTI-I) , Life Corporation of

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

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

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

The Bank today is capitalized to the extent of Rs. 403.63 crores with the

public holding (other than promoters and GDRs) at 53.72%.

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

located at Mumbai. The Bank has a very wide network of more than 896

branches and Extension Counters (as on 31st December 2009). The Bank

has a network of over 4055 ATMs (as on 31st December 2009) providing 24

hrs a day banking convenience to its customers. This is one of the largest

ATM networks in the country.

The banks have strengths in both retail and corporate banking and is

committed to adopting the best industry practices internationally in order to

achieve excellence.


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Promoters

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

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

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

and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 24.09%

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

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

2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of

India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament,

paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II

with effect from 1st February 2003. In accordance with the Act, the

Undertaking specified as UTI I has been transferred and vested in the

Administrator of the Specified Undertaking of the Unit Trust of India

(SUUTI), who manages assured return schemes along with 6.75% US-64

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

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

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

administer the schemes under UTI - I, where Government has continuing

obligations and commitments to the investors, which it will uphold.


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Board of Directors

The members of the Board are :

Dr. Adarsh Kishore Non-Executive Chairman

Smt. Shikha Sharma Managing Director & CEO

Shri M. M. Agrawal Deputy Managing Director

Shri N.C. Singhal Director

Shri J.R. Varma Director

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

RETAIL BANKING


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AN INTRODUCTION

Retail banking is typical mass-market banking where individualcustomers use local branches of larger commercial banks. Services

offered include: savings and checking accounts, mortgages, personal

loans, debit cards, credit cards, and so

Retail banking is, however, quite broad in nature - it refers to the dealing of

commercial banks with individual customers, both on liabilities and assets

sides of the balance sheet. Fixed, current / savings accounts on the liabilities

side; and mortgages, loans (e.g., personal, housing, auto, and educational) on

the assets side, are the more important of the products offered by banks.

Related ancillary services include credit cards, or depository services. Retail

banking refers to provision of banking services to individuals and small

business where the financial institutions are dealing with large number of

low value transactions. This is in contrast to wholesale banking where the

customers are large, often multinational companies, governments and

government enterprise, and the financial institution deal in small numbers of

high value transactions. The concept is not new to banks but is now viewed

as an important and attractive market segment that offers opportunities for

growth and profits. Retail banking and retail lending are often used as

synonyms but in fact, the later is just the part of retail banking. In retail

banking all the needs of individual customers are taken care of in a well-

integrated manner.

Todays retail banking sector is characterized by three basic


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characteristics:

Multiple products (deposits, credit cards, insurance, investments

and securities).

Multiple channels of distribution (call center, branch, internet).

Multiple customer groups (consumer, small business, and

corporate).

Scope for Retail Banking in India

All round increase in economic activity.

Increase in the purchasing power. The rural areas have the large

purchasing power at their disposal and this is an opportunity to

market Retail Banking.

India has 200 million households and 400 million middleclass

population more than 90% of the savings come from the house hold

sector. Falling interest rates have resulted in a shift. Now People

Want To Save Less And Spend More.

Nuclear family concept is gaining much importance which may lead

to large savings, large number of banking services to be provided are

day-by-day increasing.

Tax benefits are available for example in case of housing loans the

borrower can avail tax benefits for the loan repayment and the

interest charged for the loan.

Challenges to Retail Banking in India


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The issue of money laundering is very important in retail banking.

This compels all the banks to consider seriously all the documents

which they accept while approving the loans.

The issue of outsourcing has become very important in recent past

because various core activities such as hardware and software

maintenance, entire ATM set up and operation (including cash,

refilling) etc., are being outsourced by Indian banks.

Banks are expected to take utmost care to retain the ongoing trust

of the public. Customer service should be at the end all in retail banking.

Someone has rightly said, It takes months to find a good customer

but only seconds to lose one. Thus, strategy of Knowing Your

Customer (KYC) is important. So the banks are required to adopt

innovative strategies to meet customers needs and requirements

in terms of services/products etc.

The dependency on technology has brought IT departments

additional responsibilities and challenges in managing, maintaining

and optimizing the performance of retail banking networks. It is

equally important that banks should maintain security to the

advance level to keep the faith of the customer.

The efficiency of operations would provide the competitive edge for

the success in retail banking in coming years.

The customer retention is of paramount important for the

profitability if retail banking business, so banks need to retain their

customer in order to increase the market share.


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One of the crucial impediments for the growth of this sector is the

acute shortage of manpower talent of this specific nature, a

modern banking professional, for a modern banking sector.

If all these challenges are faced by the banks with utmost care and

deliberation, the retail banking is expected to play a very important role in

coming years, as in case of other nations.

RETAIL BANKING OF AXIS BANKAN OVERVIEW OF THE PRODUCT

1. ACCOUNTS

Easy Access Savings Account

Possessing a range of unmatched features, it has been devised to better suit

the convenience of eclectic client base of bank.

Features:

At Par-cheque.

ATM Facility.

Tele-banking.

iConnect i.e. Internet Banking.

Mobile Banking.

Free Anywhere Banking facility.

Quarterly statement of account.

Free Monthly E-Statement.


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One can avail of all these services with a minimum quarterly average

balance of Rs5,000 in metro or urban centers, and Rs2,500 in semi urban

centers and Rs1,000 in rural centres.

Senior Privilege

Because life begins at sixty

Eligibility: Savings Bank customers with 60 years of age or above as on the

date of account opening.

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.

Customised Loan Offerings.


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Complimentary Financial Planning.

Silver Health - Medical Insurance for Senior Citizens.

Smart Privilege Account(For the woman of today)

In today's busy world it's tough being a working woman. 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, Axis Bank have

designed a savings account best suited for the woman of today.

Features:

Jewellery Insurance on Debit Card.

Dedicated Relationship Manager.

Zero Balance Minor Account.

Round-the-Clock access through ATMs.

Anywhere Banking.

At-par cheque facility.

Demand Draft issued.

Monthly Account Statement.

Additional discounts on loans.

Financial Advisory Services.

Discount on Retail Purchases.

Trust/NGO Savings Account

Thoughtful banking for people who spend their lives thinking of others

Axis Bank's Trust Account is an effort to offer thoughtful banking for people

who spend their lives thinking of others. It is a complete banking solution


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for Trusts, Associations, Societies, Government Bodies, Section 25

companies and NGOs, so that the organisations can devote all of their time

to their noble motivations.

Features:

A Savings Account for Trust with a concessional Average Quarterly.

A multi-city at-par cheque facility with no limit on clearing payments

at centers across the country wherever bank are present.

Free Anywhere Banking across all Branches and Extension Counters

and over all ATMs.

Free Demand Drafts or Pay Orders as and when required to remit

funds.

Free collection of cheques at outstation locations.

Monthly Statement of Account delivered at doorstep.

Facility for collecting donations in account through our network of

Branches and Extension Counters across the country, as well as

through iConnect - Internet Banking facility.

Monthly statement of account.

Free Internet Banking facility.

Free Demat account.

Assistance for Foreign Contribution (Regulation) Act accounts for

receiving donations from abroad.

Free collection of cheques.

Doorstep banking services.

Zero Balance Savings Account


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Save at Zero

Saving Money is now easier

Features:

No Average Quarterly Balance requirement.

Free International Debit Card with an Accidental Insurance cover up

to Rs2 lakhs* (charges for the primary holder are waived).

Free mobile banking facility.

Access through 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.

Salary Power

The complete financial solution

Salary Savings Account is not only a convenient way to

manage salaries (across various centres, through our

centralised database), but also provide employees with a

range of value added benefits.

Features:

Anywhere banking.

Cheque books.

International ATM-cum-DEBIT cards.

Computerised statements.

Joint Account facility.

Demand drafts.


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Overdrafts facility.

Outstation cheques.

Demat accounts.

Financial advisory services.

Power loans.

Optional Gold Debit Card.

Credit cards.

Online Trading.

Built-in-Insurance schemes.

Internet Banking.

Telebanking.

Mobilebanking.

Fund Transfer.

Meal Card.

Gift Card.

Power Salute

Salute to the defence forces

Defence Salary Account from Axis Bank is a product designed to show

appreciation to defence force work.

Features:

At-par Cheque Facility.

Additional Debit Card.

Financial Advisory Services.

All the features of SALARY POWER SAVING ACCOUNT.


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2. 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. One can make additions to deposit in multiples of Rs 1,000 each.

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

Different types of deposits are:

a. Reinvestment Deposits:

Here the interest accrued to deposit at the end of each quarter is invested

along with the principal. The tenure of deposit must be a minimum of 6

months. At the end of the quarter, the interest and the principal are both

rolled over, and the interest is calculated on the total sum. Income tax is

deducted at source.

b. Automatic Rollover:

Here there is facility for automatic rollovers on maturity (for both the

principal and interest). One can select this option in the Account Opening

Document (AOD). The options available are:

* Rollover only Principal:

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

credited to designated account or paid out.

* Rollover Principal and Interest accrued in Reinvestment Deposit:


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

tenure at the interest rate applicable on the maturity date.

Withdrawals :

All encashments or withdrawals of Fixed Deposits can only be made at the

branch where the deposit was booked.

Recurring Deposits

Power of compounding

Features :

Recurring deposits are accepted in equal monthly installments ofminimum Rs 1,000 and above in multiples of Rs 500 thereafter.

Transfer of Accounts

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 regularise 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.

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 Savings Account providing following unique

facilities:

Maximum Returns:


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As soon as the balance in 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 isautomatically reverse swept from the most recently formed Fixed Deposit in

units of Rs 5,000 to the Savings account whenever the balance in your

Savings account falls below Rs 25,000. The amount broken from 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 linked Fixed Deposit, the Bank will automatically renew it

for a maximum period of 181 days.

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


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a Fixed Deposit Receipt that shall be the basis of claiming tax benefit. (e)

Term deposit under this scheme cannot be pledged to secure a loan.

3. LOANS

Personal Loan

Quick and easy personal loans

Features:

Loans are available from Rs 1 lac to Rs 20 lacs.

Repayment tenures from 12 to 60 months.

Attractive interest rates.

A balance transfer facility available for those who want to retire any

higher cost debt.

Loans available against repayment track record of any existing auto,

personal or home loan.

Zero balance SB account facility for personal loan customers.

Home Loan

Quick and easy home loans

Features:


Balance Transfer facility.

Doorstep service.


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Nil Prepayment charges.

Car Loan

Quick and easy car loans

Features:

Loan value calculated as per the on-road-price of the vehicle.


LTV of upto 85% of the on-road-price on selected models.

Loans available for salaried and self employed individuals,

proprietorships and partnership firms.

Special schemes for Axis Bank Salary accountholders.

No income proof schemes available.

Loans offered from Rs. 1 lac onwards.

Loans tenure from 1 year to 7 years.

Study Loan

High Study LoanHigher education within your reach

AAxis Bank's Study Power aims to provide financial support to deserving

students for pursuing higher professional or technical education in India and

abroad. The loan would be provided to students who have obtained

admission to career-oriented courses eg, medicine, engineering, management

etc., either at the graduate or post-graduate level.

Quantum of Loan:

The quantum of finance under the scheme is capped at Rs 10.00 lacs for

studies in India and Rs 20.00 lacs for studies abroad, which would cover


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

of loan would be Rs 50,000.

Margin:

No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin

for studies within India and 15% for higher studies overseas.

Consumer Power

Easy and affordable consumer loans

Axis Bank's Consumer Power scheme will help you acquire the consumer

durables you need. A new TV, a washing machine, a refrigerator or an AC...

the possibilities are endless.

Terms :

One can apply for as little as Rs 25,000, or as much as Rs 2 lacs. The

maximum loan amount cannot exceed 85% of the cost of the durable, or 12

times your net monthly salary (or equivalent of net annual income for self-

employed persons), whichever is lower. You are charged a competitive

interest rate, and you can choose to repay your loan in 12, 24 or 36 Equated

Monthly Installments. If you are a salaried employee, your Equated Monthly

Installments will be collected directly from your employer under the check-

off facility. For others, post-dated cheques will be collected

Loan Against Shares

Individuals are only eligible to apply.


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Overdraft facility against single and combination of scrips.

Interest charged on actual amount utilised - no EMI or post dated

cheques required.

Shares can be pledged from any Depository Partcipant across the

country.

Asset Power (Loan Against Property)

Your property now equals ready cash

Features:

Attractive interest rates .

Balance Transfer facility available with additional finance.

Doorstep service.

You can avail the following four products under Asset Power.

Loan against property Residential,

Loan against property Commercial,

Loan for purchase of commercial property,

Take-over of existing loan with additional refinance (BalanceTransfer).

Lease Rental Discounting (LRD).

Loan Against Security


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Unlock your financial assets

Overdraft against mutual funds.

Individuals are only eligible to apply.

Maximum limit upto 50% of valuation.

Overdraft facility against more than 300 schemes.

Overdraft tenure of 12 months.

Loan or overdraft against NSC or KVP or LIC policy.

Option to either borrow lump sum or withdraw as and when required.

4. CARDS

CREDIT CARDS

Platinum Advantage Credit Card

Platinum Privileges:

Highest Level of Security:

The Platinum Chip offers clear authentication of credit payments combined

with easy fraud detection. The chip cannot be duplicated, ruling outcounterfeiting and skimming. This makes your card safer and secure than

any other card in India.

25% cash back on Movie ticket bookings.


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5% cash back on Dining at all restaurants.

5% Savings on Fuel Spends.

Comprehensive Insurance Cover.

Easy Platinum/Gold Credit Card

A Credit Card for every wallet!

Benefits on your Easy Platinum/Gold Credit Card:

Guaranteed Approval.

Axis Bank Easy Credit Card is 100% assured.

Easy Documentation.

Lower Interest Rate of 1.95% p.m

Fast Delivery of the Card

Credit Limit as high/ low as you want

Higher Cash Withdrawal from Day One

*Free credit period of up to 50 days

Fuel Surcharge waiver of 2.5% at all Petrol Pumps.

Silver Credit Card

Sheer Surprises coming your way

Exclusive Benefits:


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Plus point Rewards.

E-Shops Cards.

Comprehensive Insurance Cover.

Mobile Alerts.

Global Acceptance.

Interest Free Period.

Revolve Period.

Balance Transfer.

Cash Advance Facility.

Dial A Draft.

Auto Debit Facility.

EMI Facility.

E- SHOP CARDS

MAKING YOUR ONLINE SHOPPING MORE SECURE

A virtual credit card that allows you to shop online securely without

divulging your credit card details.

CORPORATE CREDIT CARDS

AN EXPENSE MANAGEMENT SOLOTION


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Axis Bank's Corporate Card offers the best travel and expense management

solution to corporates with global acceptance and customized solutions

powered by VISA.

Axis Bank Corporate Card comes with two liability options:

1. Corporate Liability: Corporate Liability Corporate Cards are an effective

way of managing travel policies and negotiating preferential terms with key

suppliers. These cards are issued after credit assessment of the corporate;

who in turn defines the limit on individual cards. The corporate bears the

liability for the entire outstanding amount on the cards. The payment is

made directly to the Bank once a month instead of multiple payments to

individual employees/suppliers. Exposure risk of the Corporate is mitigated

by the fact that the card is a charge card wherein the full payment is to be

made at the end of each month with no revolve allowed on the outstanding.

2. Individual Liability: Individual Liability Cards based on the same lines as

the personal Credit Cards are an effective way for the employees to keeptheir personal and official expenses separate while at the same time

simplifying the reimbursement process. Individual employees are assessed

for assignment of credit limit on each card and are solely liable for the

payment of spends done on the card.

DEBIT CARDS

Priority Platinum Chip Debit Card

The benefits of Priority Platinum Chip Debit Card includes:


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Exclusively Designed Welcome Kit.

Free Unlimited Domestic and International ATM Usage.

Higher Transaction Limits.

Chip-enabled Card Providing Added Security.

Enhanced Insurance Coverage.

Special Offers.

Rewards Programme.

24-Hour Emergency Helpline.

Customer Service Contact.

Priority Debit Card

The Priority Banking Debit Card is an International Visa Debit card meant

exclusively for Priority Banking customers. It comes with a host of

enhanced benefits, which include:

Free usage at all Visa ATMs.

Zero Fuel Surcharge.

Instant Identification.

Higher Transaction Limits.


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No Issuance Charges.

Free Add-on Card.

Enhanced Insurance Coverage.

Classic Debit Card

Easy access to your account, no matter where you are

A deposit access program, the Debit Card redefines convenience. Apart from

being an ATM (Automated Teller Machine) Card used for withdrawing

cash, it also enables you to shop and make cashless purchases. You can usethe card to make payments at shops, department stores, restaurants, petrol

pumps and many more outlets in India and overseas.

Gold Debit Card

Earn while you shop

The benefits of Axis Bank Gold Debit Card include :

Flexibility of usage.

Worldwide reach.

Reward program.


Special offers and discounts at merchant establishments on card

usage.

Additional safety and enhanced insurance.

Enhanced limits for cash withdrawal.

24-Hour Emergency Helpline.



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Gold Plus Debit Card

Exclusive card for exclusive you

The benefits of Axis Bank Gold Plus Debit Card include:

Instant identification.


Worldwide reach.


Special offers and discounts on card usage.

Access to Airport Lounges.

Reward program.



24-hour Emergency Helpline.


Business Gold Debit Card

Exclusive value deals for great business savings

The benefits of Axis Bank Business Gold Debit Card include:

Instant identification.


Worldwide reach.



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Special offers and discounts on card usage.

Reward program.



24-hour customer service.


5. INVESTMENTS

Mohur Gold

Axis Bank brings to you Mohur Gold coins/bars in the purest form! Made in

Switzerland, Mohur Gold coins/bars carry the Assay certification of being

24 carat, 99.99% pure! It comes to you in a specialized packaging that is

tamper proof so that its purity is preserved. Available in 5 gms, 8 gms, 10gms, 20 gms & 50 gms, it is on offer in select branches of Axis Bank.

Online Trading

Investing and trading @ click of a mouse

Axis Bank in alliance with Geojit Financial Services now offers you an

Online Trading Account. Trade from the comfort of your home or office

either through the Internet or the Phone. This service provides you with an

integrated Savings Bank Account, Demat Account and an Online Trading

Account to give you a convenient and paper free trading experience.

Mutual Funds


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Invest smartly

Facility provided:

As Axis Bank Financial Advisory team, we adopt a strong researchdriven recommendation model to help you choose the best funds

based on qualitative and quantitative parameters.

Apart from this, a dedicated Relationship Manager can also be

assigned to you to ensure that your investment requirements are

taken care of, smoothly and efficiently. Our advisors understand

your profile and lead you through a structured financial planning

process to devise financial solutions best suited to you. The

advisors will also help you choose the right investment products in

line with your investment goals.

We 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.

Demat Account

Axis Bank is a registered member (Depository Participant) of NSDL. In this

system, physical security holdings are converted into electronic (or in other

words, dematerialized) holdings. Axis Bank has been enrolled as a

Depository Participant by the NSDL - India's first depository. You can avail

of all the depository-related services by just opening an account with NSDLthrough Axis Bank.

Tax Saving Investments

When investing for tax, invest in the right way


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Instrument Benefit Section under which tax

benefit is eligible

Life

Insurance

One should consider a life

insurance cover, especially if

there are dependents and/orthere will be an additional

member in the family soon.

One should look at an

insurance cover, which could

initially be a basic term cover

(which would be available at a

lower premium rate,

considering the age). Post-

marriage, one can go in foranother policy that can

provide for the enhanced

requirements of family.

Amount paid upto Rs.1,00,000

as premium of life insurance

policy is eligible for deductionunder Section 80(C). Proceeds

or withdrawals from life

insurance policies are exempt

from tax under Section 10

(10D). Maximum possible

deduction available is

Rs.30,990

Child Plans Child Plans are instrumental in

building a corpus for the

child's future needs like

education, marriage, setting up

a career, etc.

Amount paid upto Rs.1,00,000

as premium of life insurance

policy is eligible for deduction

under Section 80(C). Proceeds

or withdrawals from life

insurance policies are exemptfrom tax under Section 10

(10D). Maximum possible

deduction available is

Rs.30,990

Health

Insurance

Plan

Health insurance is extremely

important for all individuals to

protect themselves from the

financial burden of a medical

emergency.

Amount paid upto Rs.15,000

as premium of health

insurance policy is deductible

under Section 80(D). An

additional deduction ofRs.15,000/- is allowed if

premium is paid for medical

insurance of parents. If parents

are senior citizens, then the

deduction applicable is

Rs.20,000. So maximum


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possible deduction available is

Rs. 35,000.

Mutual

Fund

EquityLinked

Saving

Scheme

One can opt for an equity-

linked savings scheme for the

equity portion.

Investments made under

Equity-Linked Saving

Schemes are eligible fordeductions under Section

80(C). The limit under this

section is Rs.1,00,000. The

maximum possible deduction

available is Rs.30,990.

Mutual

Fund

Schemes

Investments in diversified

equity schemes are not eligible

for tax benefit.

6. OTHER SERVICES

Apart from above services there are various other services also which axis

bank provides. They are:

Insurance services for LIFE, HEALTH, MOTOR, JEWELLERY,

PERSONAL ACCIDENT, HOME, CRITICAL ILLNESS.

Payment facility by BILL PAY, ELECTRONIC CLEARING

SERVICES, VISA MONEY TRANSFER, TAX E-PAYMENTS,

DIRECT TAX PAYMENT, PENSION DISBURSEMENT.

Mobile Re-Fill.

Locker.

Online Shopping.

IPO SMART.

E-Statement.


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Hence these are various products of AXIS BANK available for Retail

Banking.

OBJECTIVES OF THE RESEARCH

For a successful research, defining the objective is very important because it

makes clear for the researcher the problem and the ways to find the solutions

for it. This project was carried to ascertain the Retail Banking Operations of

AXIS BANK.

Following are the objective of research:

To know the scope of Retail banking of AXIS BANK.

To analyze and identify the potential scope of improvement for Axis

bank in Reatail banking.


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To know peoples perception about the products of Axis bank in Retail

banking.

To study and compare the performance of Axis Bank Vs Competitors

in Retail banking.

To identify the problems and solutions of Reatil banking of Axis

bank.

RESEARCH METHODOLOGY

Research may be defined as the research for knowledge through an

objective. It is a way to systematically solve the research problem. It

includes the various steps that are generally adopted by a researcher. I have

adopted the research design.

RESEARCH DESIGN

A Research design is the specification of the method and procedures for

acquiring the information needed.

DATA COLLECTION


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There may be different types of information and data. Some of the

information may be published or unpublished, complete or uncomplete,

reliable or unreliable, biased or unbiased, primary or secondary data.

TOOLS FOR ANALYSIS

Statistical Tools: Graphs and Ratio analysis.

Primary data: Market survey.

Secondary data: Company records , Websites.

This research is performed mainly by taking help of companys records,

annual reports, official websites through internet.

ANALYSIS AND INTERPETATION

2009 2008 2007 2006 2005

CURRENT ASSETS,

LOANS AND

ADVANCES

3745.14 278451 1892.07 1679.98 2071.38

LESS: CURRENT

LIABILITIES AND

PROVISIONS

9947.66 7556.90 5873.80 4051.03 1828.68


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TOTAL NET

WORKING

CAPITAL

(6202.52) (4772.38) (3981.73) (2371.05) 242.70

Interpretation:

Here we can see that the current liabilities of the bank is very high but on the

other hand bank dont have enough assets so the result is Working Capital of

the Bank is decreasing year by year which is not a good sign for the bank. Its

shows the bank dont have a enough money to pay their day to day

expenses.

WORKING CAPITAL TURNOVER RATIO

YEAR RATIO CALCULATED

2004-2005 7.92

2005-2006 (12.1)

2006-2007 (1.14)

2007-2008 (1.46)2008-2009 (1.98)

Interpretation:

The working capital turnover ratio is used to analyze the relationship

between the money used to fund operations and the sales generated from

these operations. In a general sense, the higher the working capital turnover,

the better because it means that the company is generating a lot of sales

compared to the money it uses to fund the sales. In the case of AXIS BANK

working capital turnover ratio is negative in most of the year only in the year

2004-05 is a positive as well as high. So its shows the bank has used a more

funds in compare to generate sales which is not show a good sign for bank.


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PROFITABILITY RATIOS:

OPERATING MARGIN


2004-2005 26.77

2005-2006 26.45

2006-2007 21.84

2007-2008 23.25

2008-2009 28.31

Interpretation:

The data shows that Operating profit margin is increasing which is good for

the bank.

GROSS PROFIT MARGIN


2004-2005 23.23

2005-2006 23.88

2006-2007 19.79

2007-2008 21.44

2008-2009 23.31

Interpretation:

Here we can see that the there is no much up and downs in Gross profit

margin of AXIS BANK but in the year 2007-08 Gross Profit Margin has

increased from 19.79 to 21.44, its a 8.43 % growth in gross profit margin of

bank that shows the and also same in the case of year 2008-2009, which

shows that the performance of bank is increasing which is a good sign for

bank.

NET PROFIT MARGIN


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2004-2005 14.33

2005-2006 13.47

2006-2007 12.012007-2008 12.22

2008-2009 13.31

Interpretation:

Net profit margin of AXIS BANK is not up to mark. After the year 2004-05

to 2007-08 it is continuously decreasing which is a major issue of concern

for bank. In year 2008-09 there is only a slight change in margin.

MANAGEMENT EFFECTIVENESS

RETURN ON ASSETS


2004-2005 1.21%

2005-2006 1.18%

2006-2007 1.10%

2007-2008 1.24%

2008-2009 1.28%

Year Calculated Ratio

Interpretation:

Return on assets (ROA) is an indicator of how profitable a company is

relative to its total assets. ROA gives an idea as to how efficient

management is at using its assets to generate earnings. In the case of AXIS

BANK ROA is decreasing from the year 2004-2005 to 2006-07 but after the

year 2006-07 it has increased so we can say that previously the bank was not

utilize their assets efficiently but now the bank is doing which may be a

good sign for bank in future.


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EARNING PER SHARE (RS)


2004-2005 11.832005-2006 17.41

2006-2007 23.40

2007-2008 29.94

2008-2009 50.57

Interpretation:

Earning per share is increasing year by year which is a good sign for an

investors of axis bank it shows that an investor can invest in AXIS Bank to

get good profit.

LEVERAGE RATIOS

DEBT EQUITY RATIO


2004-2005 13.172005-2006 13.97

2006-2007 17.32

2007-2008 9.99

2008-2009 10.89

Interpretation:

The debt equity ratio is calculated to measure the extent to which debt

financing has been used in business. It indicates what proportion of equity

and debt the company is using to finance its assets. As a generaL rule there

should be a mix of owner fund and outside fund. The AXIS BANK is having

high debt equity ratio in the year 2004-05 and 2006-07 its means the bank

was very aggressive in financing its growth with debt.


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FIXED ASSET TURNOVER RATIO

YEAR RATIO CALCULATED2004-2005 3.01

2005-2006 4.00

2006-2007 4.97

2007-2008 6.32

2008-2009 7.78

Interpretation:

Fixed assets are used in the business for producing goods to be sold. Theeffective utilization of fixed assets will result in increased production and

reduced cost. Fixed Assets Turnover ratio is increasing which shows that

fixed assets are efficiently utilized. In the case of AXIS BANK the fixed

asset turnover ratio is continuously increasing from the year 2005-06 to

2007-08 and in the year 2008-09 it was very high. It reflects that bank was

utilizing their assets in a efficient manner.

LIQUIDITY RATIO

CURRENT RATIO


2004-2005 1.13

2005-2006 0.41

2006-2007 0.03

2007-2008 0.03

2008-2009 0.03

Interpretation:

Current ratio indicates the short term financial soundness of the company. It

judges whether current assets are sufficient to meet the current liabilities.

The company must be able to meet its current obligations out of the current


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assets. The standard current ratio is 2:1 it means the company should have

such total current assets which are twice of their current liabilities but in the

case of AXIS BANK the current ratio does not match up with standard ratio.

And it is not increasing continuously year by year and it shows the bank

doesnt have enough assets to pay their liabilities.

QUICK RATIO


2004-2005 11.55

2005-2006 6.52

2006-2007 7.392007-2008 9.23

2008-2009 9.52

Interpretation:

It is an indicator of a company's short-term liquidity. The quick ratio

measures a company's ability to meet its short-term obligations with its most

liquid assets. It is called liquid because it can be easily converted in to cash.The higher the quick ratio, the better the position of the company. It is said

that standard ratio of liquidity must be 1:1. So we can say that in the case of

AXIS BANK the ratio is more than standard ratio in every year. So its

shows the bank is able to meet their short term obligation which is good for

the bank.

TOTAL DEPOSITS AND BORROWINGS

2005 2006 2007 2008 2009

DEPOSITS 31712.00 40113.53 58785.60 87626.22 117374.11


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BORROWINGS 1781.41 2680.93 5195.60 5624.04 10185.48

Interpretation:

Both Saving Bank deposits and current bank deposits is increasing year by

year which is a good sign for the bank and its shows the image of bank is

becoming more good in the eyes of customers and public and the customers

have satisfied with the services of bank so the result they are keeping more

faith on bank and thats why they are depositing more money in the bank.

TOTAL ADVANCES2005 2006 2007 2008 2009ADVANCES 15,602.92 22,314.23 36,876.48 59,661.14 81,556.77

Interpretation:

Here it shows a positive increase in advances which is a good sign for the

bank.

FINDINGS

Working Capital of the Bank is decreasing year by year which is not a

good sign for the bank.

In the year 2007-08 Operating Margin was 23.25, in the year 2008-09

it is 28.31. This shows that Operating profit margin is increasing

which is good for the bank.


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In the year 2007-08 Gross Profit Margin was 21.44, in the year 2008-

09 it was 23.31. This shows that Gross profit margin is increasing

which is good for the bank.

Net profit margin is increasing year by year.

Fixed Assets Turnover ratio is increasing which shows that fixed

assets are efficiently utilized.

Current Ratio is increasing which is showing a sound financial

position of the company.

Quick Ratio of the bank is increasing it shows that position of the

bank is improving.

Earning per share is increasing which shows that a investor can invest

in AXIS Bank to get good profits.

Total deposits and borrowings are increasing are increasing which

means customers are satisfied with bank.

Total advances are also increasing year by year which is a good sign

for bank.

RECOMMENDATIONS

Company should provide promotional programs and schemes.

Satisfy existing customers.


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Aggressive advertisement campaign should be adopted in order to

attract customers.

Create awareness about different accounts, deposits and loans, i.e. all

products of Retail banking.

Attract customers by providing better facility than other competitors

of Axis bank.

Should work on increasing working capital ratio.

LIMITATIONS


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The survey took much time due to calculation of each and every ratio

of Axis bank.

The scope of project was quite wide , thus it was difficult to have a

proper and equal reach in the scope.

Due to expenditure of money on collection of data , this research

could not be done efficiently.

Due to lack of time, the survey of some area in retail banking of axis

bank was missed.

The data may be uncomplete due to lack of proper source of

information.

The project may be untrue due to my individual opinion as it may

vary with individual opinions.

BIBLOGRAPHY


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Books:

Dr. I.M. Pandey - Financial Management, Vikas Publication

Delhi.

M.Y. Khan, P.K. Jain - Financial Management , Tata Mc Graw Hill

Publishing company Limited, New Delhi

Websites:

www.axisbank.com

www.google.com

www.moneycontrol.com

www.infinancials.com
http://www.axisbank.com/http://www.google.com/http://www.moneycontrol.com/http://www.infinancials.com/http://www.axisbank.com/http://www.google.com/http://www.moneycontrol.com/http://www.infinancials.com/


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Documents

Project of Hena (Pgdfs)