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Axis bankAxis bank

Reinventing bankingReinventing banking

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Indian Banking System

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History of Banking of India

The first bank in India was establishedin India in 1786.

The journey of Indian Banking can besegregated into 3 phases.

Phase 1 Phase 2 Phase 3

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Phase 1 1786-The general Bank of India.

1865-Allahabad bank was established

1906-1913-Central Bank of India, Bankof Baroda, Bank of India wasestablished.

1935- Reserve Bank of India came up.

Banks faced experienced periodicfailures between 1913 and 1948.

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Phase 2 In 1955, it nationalised Imperial Bank of India

with extensive banking facilities on a largescale specially in rural and semi-urban areas.

7 Banks formed subsidiary of State Bank ofIndia were nationalised.

14 major commercial banks in the country wasnationalised.

The branches of the public sector bank Indiarose to approximately 800% in deposits andadvances took a huge jump by 11,000%.

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Phase 3 This phase has introduced many more

products and facilities in the banking sectorin its reforms measure.

In 1991, under the chairmanship of MNarasimha, committee was set up by hisname which worked for the liberalisation ofbanking practices.

Phone banking and net banking wasintroduced.

Time was given more importance thanmoney.

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Emergence of Private Banks

Private banking in India was practiced since thebeginning of banking system in India.

The first Private Bank in India to receive an inprinciple approval from the Reserve Bank of India wasHousing Development Finance Corporation Limited.

It was incorporated in August 1994 as HDFC Bank

Limited with registered office in Mumbai andcommenced operations as Scheduled CommercialBank in January 1995.

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UTI BANK

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Introduction

Axis Bank (Formerly known as UTI) was oneof the few private banks to have beganoperations in 1994

The Bank was promoted jointly by theAdministrator of the specified undertaking ofthe Unit Trust of India (UTI)

Life Insurance Corporation of India (LIC).

General Insurance Corporation Ltd (GIC).

National Insurance Company Ltd. The New India Assurance Company.

The Oriental Insurance Corporation.

United Insurance Company Ltd.

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Journey FromUTI to AXIS

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1994-1997

Incorporated as UTI Bank,headquartered in Mumbai

First Branch inaugurated atAhmedabad

Completes first profitable year inoperation in 1995

Deposit crosses Rs.10bn mark in1996

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1998-2000

Successfully completes its IPO in 1998 andgets itself listed on NSE and BSE

Cash management services as well as credit

card launched Profit crosses Rs.500m in 2000

Launches Internet banking module, iConnectretail loans introduced

Financial advisory services and e-commerceintroduced

Second largest ATM network in the countrywith 200 ATMs

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2001-2005

Private placement of 26% stake to CDCCapital Partners

Deposit crosses Rs.100bn mark in 2001,advances crosses Rs.50bn

First commercial bank to open an ATMat a post office

Crosses the 1,000 ATM mark in 2003

Gets listed on the London StockExchange, raises $239.3m

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2006-2008

Opens its first international branch inSingapore

Opens Representative Office in Shanghai


Opens a Full Licence Bank Branch inHong Kong

Re-brands itself as Axis Bank

Mumbai, Jul 30 2007 : UTI Bank onMonday rechristened itself as Axis Bank.

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PROBLEM

WHY THEY CHANGE THEIR NAMEFROM UTI TO AXIS BANK??

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THERE ARE 3 MAIN REASONS

1. They had to give up the UTI name afterusing it for 13 years as we were notprepared to accept terms and conditions(including royalty) from UTI AMC

The decision to rebrand itself was taken bythe bank as it was allowed to use the 'UTI'brand name for free till January 31, 2008,beyond which it had to pay royalty forusing the name.

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2. The recommendation for name change to

Axis Bank has arisen from the existence ofseveral shareholder-unrelated entities usingthe UTI brand, and the consequent brandconfusion that this generates.

3. The name UTI bank was changed to AXISbank as UTI gave a look of governmentsector bank. They had to change our nameto have our own brand and identity.

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The new name AXIS

The new name was chosen consideringthe banks pan-Indian as well asinternational presence.

The first time that a bank has droppedan established brand for an unknownname.

The name Axis is chosen as it is simple

and it conveys a sense of solidity and asense of maturity. It also has auniversal appeal.

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Mission

Customer Service and ProductInnovation tuned to diverse needs ofindividual and corporate clientele.

Continuous technology up gradationwhile maintaining human values.

Progressive globalization and

achieving international standards. Efficiency and effectiveness built on

ethical practices.

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Core Values of Axis

Customer Satisfaction through

Providing quality service effectively andefficiently

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

Periodic Customer Service Audits

Maximizations of Stakeholder value

Success through Teamwork, Integrity andPeople

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Retail, corporate, treasury and merchantbanking.

Apart from this the bank is also into insurance,investment banking, mortgage financing, creditcards, and depository services amongst others.

It is also registered on the following exchanges: OTCEI

BSE NSE London stock exchange

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Services

Retail banking

Deposits schemes

Loans and advances

Personal loans Housing loans

Cards

Consumer durables

Auto loans

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Personal banking

Accounts

Term deposit

Fixed deposit Recurring deposit

Cards Different variant like: Gold plus card, Gold card,

Silver & silver plus cards.

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Corporate banking

Accounts

Normal Current Account

Trust/NGO Savings Account Services

Private Equity, Mergers & Acquisitions

Advisory Services

Capital Market Funding

E-Broking

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RECENT DEVELOPMENTS

Shikha Sharma was named as the bank'smanaging director and CEO on 20 April 2009.

As on the year ended March 31, 2009 the Bankhad a net profit of Rs 1,815.36crores

The bank now has 835 branches including

extension networks across 30 States and 4 UnionTerritories.

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The bank also has overseas offices inSingapore, China, Hong Kong and Dubai.


Launches Platinum Credit Card, India's

first EMV chip based card

Axis Bank is now trading at Rs 911.85(17th sep).

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MARKETINGOBJECTIVES

Axis Bank wanttoachieve following marketing

objectives bythe endofthe year 2011.

To get the market capitalization 500 Crore

To get the 200 Crore retail investment.

To get 125 Crore Corporate investments.

To get the 175 Crore Capital investments.

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SWOTANALYSIS OFAXIS BANK

STRENGTHS:

Brand Name

Support of various promoters.

High level of services.

Knowledge of Indian market.

WEAKNESS:

Not having good image.

Market capitalization is very low.

Not been fully able to position itselfcorrectly.

OPPORTUNITIES:

Growing Indian banking sectors.

People are becoming more serviceoriented.

In the global market.

Dissatisfied Customers.

Business advising for smaller Players

THREATS:

Advent of MNC banks

Foreign banks

Govt. banks

Future market trends.

SWOT

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PESTLEANALYSIS OFAXIS BANK

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AXIS BANKFIVEFORCEMODEL

NEW ENTRYYes bank

Deutsche Bank

IndianOverseas Bank

VijayaBank

AXIS

BANK

BUYINGPOWER

OF

CUSTOMER

THREATOF

SUPPLIERS

(RBI)

THREAT OFSUBSTITUTES(SHAREHOLDER OFCAPITAL MARKET)

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STRATEGIES

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Core Competence Strategy

Forthe private sectorbanks:

Differentiationonthe basis ofarea coverage.

RestrictedReach.

Levelof service is the same.

Axis gotadvantage because ofProductInnovation.

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Forthe government sectorbanks

High levelof service quality andthrough

product innovation.

AXIS notany where near, but has createdadifferent setof segment.

People whobelieve inthe higher setofservices

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Forthe InternationalBanks :

Differentiated itselfonthe base ofthe reachand coverage tothe people.

Service level is somewhat same.

Inthe future these banks may create aproblem.

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STPANALYSIS

Segmentation strategy Demographics variables

Location Metros & divisional cities

Occupation Business persons

Salaried class (both Govt. andprivate)

Working woman

Age Senior citizens

Minor

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Targeting strategy

Target market

Corporate bankingmarket: This markettargettheindustries and fulfiltheir financialneeds.

Capitalmarket: This segment is targetedonthe long

term needs ofthe individualas wellas of industries

Retail bankingmarket: This segment is forthe retail

investorandprovide them shortterm financial credit

fortheirpersonal, householdneeds.

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Targeting strategy

Selective specialization strategy

Here the bank selected a number of segments, each

objectively attractive & appropriate. There may be little

orlow synergy among the segment but each segmentproves to be worth full for it.

If we take the example of cards then Axis bank have

separate set of credit cards, each targeted at differentset of people i.e. segment and each one has its own

importance forthe bank.

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Positioning strategy

Axis bank has positioned itselfas a bank which

gives higher standard of services through

product innovation for the diverse need ofindividual & corporate clients. So they want to

highlight following points in their positioning

statement:

Customer centric

Service oriented

Product innovation

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How their strategy changed after

rebranding:

Earlier they were only customer

centric

Now they have added Service centricand product innovation into theirstrategy.

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StrategicTie-ups

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Tie- upwith Banque Privee Edmondde Rothschild Europe:

Axis Bank and Banque Privee Edmond deRothschild Europe have signed an agreement onSeptember 19, 2007 in Luxembourg.

Agreement enabled both organisations to worktogether and provide Wealth Managementsolutions to overseas Indians.

The tie-up will also enable Axis Bank to offerinvestment opportunities in global financial

products for overseas Indians and will offer thejoint products through its branches in Hong Kong,Singapore and Dubai.

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Tie-ups with various Govt.Departments:

Govt. Departments:

DGFT ePayments

MCD - Municipal Tax or Fees ePayments MCD - eTendering Project

Sampark - Utility Bill ePayments

Bangalore One Project - Utility Bill ePayments

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Growth Prospects of Axis

Over the last five years, the CAGR for loan growth for thebanking industry has been 25-26 per cent; for Axis Bank ithas been above 40 per cent.

Nonetheless, the bank is still expected to grow its loan

portfolio at 1.5-1.7x the industry average. In FY09 its advances grew at the rate of 37.5 per cent.

In FY10 they are expected to grow at the rate of 27-28 percent and in FY11 at 25 per cent.

For the banking industry as a whole, the loan book is

expected to grow at 18 per cent in FY10 and 16 per cent inFY11.

Thus, Axis Banks fast pace of growth is expected to sustainover the next couple of years.

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Conclusion !!!!

AXIS bank has differentiated itself very well on thebasis of high level service and product quality.

They have successfully implemented the change anddue to this their market share has increased onlydespite of tough competition prevails.

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Thank you..

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