CHAPTER 1- INTRODUCTION INTRODUCTION OF BANKING SYSTEM INTRODUCTION OF AXIS BANK

INTRODUCTION OF BANKING SYSTEM

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 Indias 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 Indias growth process. The governments 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 dials a pizza. Money has 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. 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 days 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.

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.

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.

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 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. 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 the banks, RBI , the Indian banks assoiciation (IBA) and top 20 banks like IDBI, HSBC, ICCI, 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 part has been well explained under three different heads namely.

History of Banking in India Nationalization of Banks in India Scheduled Commercial Banks in India

Major Banks in India

ABN-AMRO Bank Abu Dhabi Commercial Bank American Express Bank Andhra Bank Allahabad Bank Axis Bank (Earlier UTI 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 Western Bank Vijaya Bank Kotak Mahindra Bank Yes Bank

Facts files of banks in India

The first, the oldest, the largest, the biggest, get all such types of informations about Banking in India in this section. The first bank in India to be given an ISO Certification Canara Bank and Sind

The first bank in Northern India to get ISO 9002 certification for their Punjab selected branches Bank The first Indian bank to have been started solely with Indian capital Punjab Bank

National

The first among the private sector banks in Kerala to become a scheduled South Indian Bank bank in 1946 under the RBI Act India's oldest, largest and most successful commercial bank, offering the State Bank of India widest possible range of domestic, international and NRI products and services, through its vast network in India and overseas India's second largest private sector bank and is now the largest scheduled The Federal Bank commercial bank in India Limited Bank which started as private shareholders banks, mostly Europeans Imperial shareholders India Bank of

The first Indian bank to open a branch outside India in London in 1946 and Bank of India, the first to open a branch in continental Europe at Paris in 1974 founded in 1906 in Mumbai The oldest Public Sector Bank in India having branches all over India and Allahabad Bank serving the customers for the last 132 years The first Indian commercial bank which was wholly owned and managed by Central Indians India Bank of

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 In India

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), a Government of India Undertaking offers Domestic, NRI and Commercial banking services. OBC is implementing a GRAMEEN PROJECT in Dehradun District (UP) and Hanumangarh District (Raiasthan) 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 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 Banks 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 India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted a 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 Axis Bank Centurion Bank City Union Bank Dhanalakshmi Bank Development Credit Bank Federal Bank HDFC Bank ICICI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank South Indian Bank

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INDIAN BANKING INDUSTRY

The Indian banking sector has emerged as one of the strongest drivers of Indias economic growth. The Indian banking industry (US$ 1.22 trillion) has made outstanding advancement in last few years, even during the times when the rest of the world was struggling with financial meltdown. India's economic development and financial sector liberalization have led to a transformation of the Indian banking sector over the past two decades.

Today Indian Banking is at the crossroads of an invisible revolution. The sector has undergone significant developments and investments in the recent past. Most of banks provide various services such as Mobile banking, SMS Banking, Net banking and ATMs to their clients.

Indian banks, the dominant financial intermediaries in India, have made high-quality progress over the last five years, as is evident from several factors, including annual credit growth, profitability, and trend in gross non-performing assets (NPAs). While annual rate of credit growth clocked 23% during the last five years, profitability (average Return on Net Worth) was maintained at around 15% during the same period, while gross NPAs fell from 3.3% as on March 31, 2006 to 2.3% as on March 31, 2011.

The Indian banking sector is a mixture of public, private and foreign ownerships. The below table highlights top 10 banks which contributed 58% share of the total credit as on March 31, 2011. The State bank of India has recorded highest market share. The Net Interest Margin of HDFC Banks is 4.2% which is highest among others.

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COMPANY PROFILE

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PROFILE OF AXIS BANK

Axis Bank Limited

Type Traded as

Public company BSE: 532215, LSE: AXBC, NSE: AXISBANK Banking, Financial services 1994 (As UTI Bank)

Industry Founded

Headquarters Mumbai, Maharashtra, India Key people Adarsh Kishore (Chairman), Shikha Sharma(MD & CEO) Credit cards, consumer banking, corporate banking, finance and insurance, investment banking, mortgage loans, private banking, private equity, wealth management 274.82 billion (US$5 billion)(2012) 42.19 billion (US$767.86 million)(2012) 2.854 trillion (US$51.94 billion)(2012)

Products

Revenue Net income

Total assets

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Employees Website

33,587 (2012) www.axisbank.com

ABOUT AXIS BANK

Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd.

The Bank as on 31st December, 2011 is capitalized to the extent of Rs. 412.57 crores with the public holding (other than promoters and GDRs) at 53.63%.

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 1281 branches (including 169 Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 7591 ATMs (as on 30th September, 2011) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

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HISTORY OF AXIS BANK

Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name. Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.

As on the year ended March 31, 2009 the Bank had a total income of Rs. 13,745.04 crores and a net profit of Rs 1,812.93 crores. Axis Bank is one of the Big Four Banks of India with State Bank of India, ICICI Bank and HDFC Bank.

1993- The Bank was incorporated on 3rd December and Certificate of business on 14th December. The Bank transacts banking business of all description. UTI Bank Ltd. was promoted by Unit Trust of India, Life Insurance Corporation of India, General Insurance Corporation of India and its four subsidiaries. - The bank was the first private sector bank to get a license under the new guidelines issued by the RBI.

1997- The Bank obtained license to act as Depository Participant with NSDL and applied for registration with SEBI to act as `Trustee to Debenture Holders'. - Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and its four subsidiaries Rs 1.5 crores each

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1998- The Bank has 28 branches in urban and semi urban areas as on 31st July. All the branches are fully computerised and networked through VSAT. ATM services are available in 27 branches. - The company offers ATM cards, using which account-holders can withdraw money from any of the bank's ATMs across the country which are inter-connected by VSAT.

1999- UTI Bank and Citibank have launched an international co-branded credit card.

2000- The Bank has announced the launch of Tele-Depository Services for its depository clients. - UTI Bank has launch of `iConnect', its Internet banking Product.

2008- Axis Bank launches Platinum Credit Card, India's first EMV chip based card - Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-Madurai road on April 16.

2009- Axis Bank today said its board has recommended the appointment of Shikha Sharma, currently chief of ICICI group's life insurance business, as its next managing director and CEO.

2010 - AXIS Bank Ltd has appointed Shri M. S. Sundara Rajan, former CMD, Indian Bank as an Additional Independent Director with immediate effect.

2011 - Axis Bank launches online trading platform Axis Direct - Axis Bank has launches pre-paid VISA card i.e. MY MONEY CARD. - Axis Bank opens new representative office in Abu Dhabi

2012 - Axis Bank partners with NIIT IFBI to introduce PG Diploma in Retail Banking. - Axis Bank inducts Schroders as a 25% partner in Axis AMC.
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- Axis Bank, Axis Capital, joined hands with Baird, an international, employee-owned financial services firm, to ofer investment banking services.

PROBLEM WHY THEY CHANGE THEIR NAME FROM UTI TO AXIS BANK

THERE ARE 3 MAIN REASONS

They had to give up the UTI name after using it for 13 years as we were not prepared to accept terms and conditions (including royalty) from UTI AMC. The decision to rebrand itself was taken by the bank as it was allowed to use the 'UTI' brand name for free till January 31, 2008, beyond which it had to pay royalty for using the name.

The recommendation for name change to Axis Bank has arisen from the existence of several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion that this generates

The name UTI bank was changed to AXIS bank as UTI gave a look of government sector bank. They had to change our name to have our own brand and identity.

Rebranding Exercise

The name was taken into effect consequent to the approval of shareholders, Reserve Bank of India and the central government (Registrar of Companies). The UTI brand is owned by UTI Asset Management Company . The bank would change logo and colour of logo the bank is likely to spend around Rs 50 crore in the re-branding exercise. The bank acquired the services of Ogilvy & Mather (O&M) to design and implement the rebranding campaign.

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THE NEW NAME OF AXIS

The new name was chosen considering the banks pan-Indian as well as international presence. The first time that a bank has dropped an established brand for an unknown name. The name Axis is chosen as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal.

THE NEW LOGO OF AXIS BANK

The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is moving on from a position of strength.

TAG LINE OF AXIS BANK

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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 23.57%

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 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.

Board of Directors
The members of the Board are : Dr. Adarsh Kishore Smt. Shikha Sharma Dr. R.H. Patil Smt. Rama Bijapurkar Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Shri Prasad R. Menon Shri R. N. Bhattacharyya Shri Samir K Barua Shri A K Dasgupta Shri Som Mittal Chairman Managing Director & CEO Director Director Director Director Director Director Director Director Director Director Director
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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.

VISION 2015
To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology.

CORE VALUES

Customer Centricity Ethics Transparency Teamwork Ownership

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AWARDS & RECOGNITIONS

Following are the recognition received by the Bank during the Year 2010:

1. Best Debt House in India - Euromoney 2010 2. Best Domestic Debt House in India - Asiamoney 2010 3. Best Bond House in India - Financeasia 2010 4. Best New Private Sector Bank, Rank 2 - FE Best Banks Award 2010 5. The Best of Asia-Pacifics Biggest Listed Companies- second year in a row - Forbes Fab 50 6. The Asset Awards 2010:Best Domestic Bank, India 7. The Asset Awards 2010:Best Domestic Bond House, India 8. Overall Winner & Consistent Performer -(Large Banks Category) - Business Today Best Bank Awards 2010 9. Fastest Growing Large Bank - Business Worlds Best Banks Award 2010 10. Ranked No. 1 in "overall experience with bank staff" and "overall branch facilities" by The Hindustan Times-MaRS Survey Report dated, 29th March, 2010

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IN YEAR 2011:

1. Bank of the Year India The Banker Awards 2011 2. Best Bank in the Private Sector - NDTV Profit Business Leadership Awards 2011 3. Best Bank - Outlook Money Awards 2011 4. The Best Domestic Bank India - The Asset Triple A Country Awards 2011 5. Fastest Growing Bank - Bloomberg UTV Financial Leadership Awards 2012 6. Most Productive Private Sector Bank- FIBAC 2011 Banking Awards 7. 3rd Strongest Bank in Asia -Pacific Region by Asian Banker 8. Brand Excellence Award- 2011(BFSI Sector) - Star News 9. Most Preferred Bank amongst retail consumers - CLSA survey on personal banking trends 10. Best Bond House India - 2011 by Finance Asia 11. Best Risk Master award - (Private Sector Category) FIBAC 2011 Banking Awards

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IN YEAR 2012:

1. Best Bank - CNBC- TV18 Indias Best Bank and Financial Institution Awards 2012 2. Consistent Performer - Indias Best Banks 2012 survey by Business Today & KPMG 3. Fastest Growing Large Bank - Dun & Bradstreet-Polaris Financial Technology Banking Awards 2012 4. Fastest Growing Large Bank Business world Best Banks Survey 2012 5. Best Bank - Runner Up - Outlook Money Awards 2012 6. Deal Maker of the Year in Rupee Bonds Business world Magna Awards - India's Best Deal Makers 2012 7. India Bond House of the year - IFR ASIA - Country Awards 2012 8. Best Domestic Bond House - The Asset Triple A Country Awards 2012 - Our Bank has been honored with this award for the Third year in a row. 9. The Best Emerging Bullion Dealing Bank of the year 2011-12 at 9th India International Gold Convention 10. Best Acquiring Institution in South Asia- Visa LEADER Award at Visas 2012 APCEMEA Security, Summit, Bali.

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AXIS BANK PRODUCT AND SERVICES

The various products offered at Axis Bank are:

H$ Wireless and Roaming Terminal (GPRS), Pc POS etc. Axis Bank enables wireless transaction processing with a very high speed available for all types of business. Now, no more long queues at the counter for processing bills and bust queues during peak hours. Eliminates the need for telephone connections as well, ideal during exhibitions and conferences.

PC POS As the name suggests, this is a PC-based credit/debit transaction processing application which leverages the connectivity of the PC (CDMA, LAN, and VSAT). Thus it eliminates the need for dedicated telephone connections thereby generating significant savings on capital equipment cost and maintenance expenses. It utilizes existing PC equipment and infrastructure to bring credit card processing functionality to the merchant?s countertop. It replaces the EDC terminal but combines the stability and security of an EDC terminal based system with the feature-richness, flexibility, and ease-of-use of a PC desktop application.

ETM (Everywhere teller machine) Axis Bank is the first acquirer to enable withdrawal of cash at Point of Sale terminals as per RBI guidelines issued in 2009. Currently, the facility of cash withdrawal using plastic cards is available only at Automatic Teller Machine (ATMs) and certain EDC terminals installed at financial institutions exclusively for cash withdrawal. ETM will ease the process of withdrawing cash when an ATM facility is not available in the reach of a Debit cardholder and is expected to ease the cash management for the Retailers..The facility enables "Cash Back" as well as "Purchase with Cash Back". Now customers can walk into merchant outlets and withdraw cash up to Rs 1000/- per day per debit card.

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Dynamic Currency Conversion ( A foreigner can pay in his home currency thereby evading exchange fluctuations)

Axis Bank gives the option of Dynamic Currency Conversion to our merchants. DCC is a facility that enables the conversion of the purchase price of goods or service from the merchants currency to the billing or home currency of the cardholder. Axis Bank DCC automatically converts the sale price from INR to cardholder's home currency at the time of transaction. The entire transaction takes place at the Point-of-Sale terminal giving the option to cardholder to have the transaction processed in INR or in his/her home currency.

Standing Instruction Standing Instruction and Recurring Payments (SIRP) is an auto debit facility given to credit/debit cardholders for payment of their bills of recurring nature. Axis Bank provides the facility to merchants who would want to accept card payments which can include Insurance companies for premium collections, mobile service providers, utility bill collectors, subscription merchants etc.

EMI EMI stands for Equated Monthly Installments. EMI is offered through merchant outlets. Essentials of Merchant EMI plan are as follow:

0% Processing Fee 0% Interest Rate for cardholders Multiple Tenure options: 3, 6, 9, 12 Merchant is charged with a Nominal Subvention Rate.

It is a 0% interest loan without any Processing Fees. This makes it all the more attractive to the cardholder. No documentation required at the time of conversion to EMI. This increases customer propensity for higher ticket purchases. EMI conversions are applicable for a minimum purchase of Rs.5000 & above only. Now, the credit cardholders can avail 3, 6, 9 and 12 months EMI on their purchases.

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Axis Bank Services

Personal Banking
Personal Banking offers:

Account

Zero Balance Savings Account A savings account that doesnt require a minimum balance. Krishi Savings Account This product has been specially designed for farmers and others employed in the allied agricultural activities sector. It is easy to operate and allows you to transact immediately. Easy Access Savings Account Instant access to your money anywhere, anytime. Prime Savings Account Access to a wide network of over 1281 branches and one of the largest ATM networks. Corporate Salary Account It is is designed to offer payroll solutions through in a 24 X 7 environment. Womens Savings Account Manage your money, your life, and instant access to your money anywhere, anytime. Demat Account Avail the depository-related services by just opening an account with NSDL through Axis Bank. Senior Citizens Account It is designed by keeping an eye on Senior citizens banking requirements which is totally different and require special consideration. Defence salary Account Absolutely free and no minimum balance is required. Specially designed for defence forces. Trust/NGO Savings Account It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs.

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Resident Foreign Currency (Domestic) RFC(D) Account Theres no need to wonder how to keep your foreign currency safe, fluctuations in forex market, or if you regularly issue cheques and drafts for payments abroad. Azzadi No Frills Experience a host of unparalleled features and heightened convenience. Pension Savings Account Specially designed for Pensioners (Existing & Prospective) of Central Govt.

Deposits

Fixed Deposits, Recurring Deposits, Encash 24, Tax Saver Fixed Deposit

Loans

Home Loan, Car Loan, Personal Loan, Loan Against Shares, Loan Against Property, Loan Against Security, Study Loan, Consumer Loan

Cards

Credit Cards, Debit Cards, Prepaid Cards

Investments

Mohur Gold, Online Trading, Mutual Funds, Demat Account, A Smile Solution, Kal Bhi, Aaj Bhi

Insurance

Life Insurance 1) Life Insurance Products 2) 5 For Life, Health Insurance 1) Family Health 2) Silver Health, Motor Insurance, Jewellery Insurance, Personal Accident Safe Guard, Home 1) Safe Home 2) Safe Home Plus, Travel Companion, Critical Illness, Business advantage

Payments

Bill Pay, Electronic Clearing Service, Tax Payments 1) Tax e-Payments 2) Direct Tax Payments 3) Pension Disbursement

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Other Services

Mobile Refill, Locker, Online Shopping, IPO Smart, E-Statement

Corporate Banking

Accounts

Normal Current Account At Monthly Average Balance (MAB) of Rs. 10,000, you can have an optimum value for your money. Business Advantage Account It comes with a host of privileges while requiring you to maintain Rs. 25,000 as Monthly Average Balance. Business Select Account Monthly Average Balance requirement shall be Rs 50,000. Business Classic Account A Monthly Average Balance of Rs 1 lac. Business Privilege Account Maintain Rs 5 lacs monthly average balance to opt for the great facilities. Channel One Account Minimum Monthly Average Balance requirement of Rs. 10 lacs (Rs. 5 lacs at Semi Urban / Rural branches). Current Account for Govt. Organizations No Minimum Balance Stipulation and host of other services without any charges. Current Account for Banks Special relationship with over 1000 Co-operative Banks/Private Sector Banks/MNC Banks/Public Sector Banks across the country. Current Account for Builders & Real Estate Monthly average balance of Rs. 5 lacs. Capital Market Current Account It comes with wider choice of variants for brokers. Krishi Current Account The product with half yearly average balance requirements. Business Global Current Account It satisfies the need of Exporters / Importers for both domestic & foreign transactions. Club 50 Current Account Half yearly average balance of Rs. 50 lacs (Rs. 25 lacs at Semi Urban / Rural branches).

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Shipping and Maritime current account Specially designed and customized to meet the banking requirements of the Shipping and Maritime industry. Inland Road Transport Current Account Specially designed and customized to meet the banking requirements of the inland road transport industry. Travel, Tourism, and Hospitality Current Account Exclusively designed and customized to meet the banking requirements of players in travel, tourism & hospitality industry. Local Current Account To fulfill all kinds of local business requirements. Current Account for Pharma A banking product for: Retail Chemists, C & F agent, Wholesalers, Stockists / Retailers in the, Pharma segment, and Pharmacists. Cash Management Current Account Get double benefit of a current account and cash management service clubbed into one. Current Account for Chartered Accountants It is exclusively designed to fulfill the needs of Chartered Accountants.

Credit Large Corporates

Working Capital Finance, Term Loans, Trade Services, Structured Finance, Supply Chain Management, Overseas Transactions

Agri Business

Kisan Power, Powertrac, Commodity Power, Contract Farming, Arthia Power

SME Standard SME Fast Track Microfinance Capital Market

Debt Solutions, Equity Solutions, Private Equity, Mergers & Acquisitions, Advisory Services, Trusteeship Services, Depository Services, E-Depository Services, Capital Market Funding, Custodial Services, e-Broking
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Govt. Business

Authorisation, Direct Tax Payment, Indirect Tax Payment, State Tax Payment, Pension Disbursement, Other Services, e-Payments, e-Governance Tie-ups, Online Tax Payment, New Pension System (NPS)

Cash Management Services

Payment Solutions, Collection Solutions

Treasury

Forex, International Business, Money Market, Constituent SGL Facilities, Retailing of Government Securities

Priority Banking

Accounts

Resident It not only ensures the highest level of Priority but also preferential treatment to selected customers like you. NRI It permits a NRI to hold and maintain foreign currency earnings in Indian rupees.

Loans

Home Loan, Personal Loan, Loan Against Property, Loan Against Security, Car Loan, Study Power, Consumer Power

Deposits

Fixed Deposits, Recurring Deposits, Encash 24

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Investments: Resident Indians

Mohur Gold, Online Trading, Mutual Funds, Depository Services, e-Depository Services

Investments: NRI

PIS Account, PAN Assistance

Payments

Bill Pay, Electronic Clearing Service, Tax Payments: 1) Direct Tax Payments 2) Pension Disbursement

Cards Priority Debit Card Credit Cards:

Platinum Credit Card, Gold Plus Credit Card, Gold Credit Card, Silver Credit Card, Secured Credit Card, eShop Card

Travel Currency Card Remittance Card Gift Card

Remittances

SWIFT, Partner Banks

31

NRI Accounts

NRE Savings Account It permits a NRI to hold and maintain foreign currency earnings in Indian rupees. NRO Savings Account Any person resident outside India may open NRO account and conveniently deposit and manage local rupee fund. NRI Prime Account - Look forward to some truly exclusive benefits. NRI Priority You and your family members resident in India enjoy an unmatched banking experience. Portfolio Investment Scheme(PIS) Account - NRIs can invest in shares of Indian companies, in secondary market. NRE Salary Account - Minimum of ten NRI employees can opt for Axis Bank NRI salary accounts. Resident Foreign Currency (RFC) Account - It can be opened, held and maintained by a person resident in India with an authorized dealer.

Services

PAN Assistance, Locker, NRI Local Post Box

Deposits

NRE Rupee Deposit, NRO Rupee Deposit, FCNR Deposit, RFC Term Deposit

Remittances

Axis Remit, SWIFT, Partner Banks, Exchange House Tie-ups, NRI Connect

Other Services

Mobile Refill, Locker, Online Shopping

32

BRANCHES AND OFFICES OF AXIS BANK IN INDIA:

BRANCHES:
Axis Bank has branches in 34 states and Union Territories in India.

ANDAMAN & NICOBAR ASSAM CHHATTISGARH DELHI HARYANA JHARKHAND MADHYA PRADESH MEGHALAYA ORISSA RAJASTHAN TRIPURA WEST BENGAL

ANDHRA PRADESH BIHAR DADRA & NAGAR HAVELI GOA HIMACHAL PRADESH KARNATAKA MAHARASHTRA MIZORAM PONDICHERRY SIKKIM UTTAR PRADESH

ARUNACHAL PRADESH CHANDIGARH DAMAN & DIU GUJRAT JAMMU & KASHMIR KERALA MANIPUR NAGALAND PUNJAB TAMIL NADU UTTARAKHAND

33

INSTITUTION INFORMATION:

The Corporate Office

Axis Bank Limited, Corporate Office, Bombay Dyeing Mills Compound, Pandurang Budhkar Marg, Worli, Mumbai - 400 025 Tel: (022) 2425 2525

Registered Office

Axis Bank Limited, "TRISHUL", Third Floor, Opp. Samartheshwar Temple, Nr. Law Garden, Ellisbridge, Ahmedabad - 380 006

WEBSITE:
http://www.axisbank.com

Competitors of Axis Bank

Given below are the names of the major competitors of this bank: 1. State Bank of India 2. ICICI Bank 3. HDFC Bank

34

SWOT analysis of Axis Bank

Here is a SWOT of Axis Bank One of the fastest growing banks in India.

Strengths

Axis bank has been given the rating as one of top three positions in terms of fastest growth in private sector banks Financial express has given number two position and BT-KPMG has rated AXIS bank as the best bank with some 26 parameters The bank has a network of 1,493 domestic branches and 8,324 ATMs The bank has its presence in 971 cities and towns The banks financial positions grows at a rate of 20% every year which is a major positive sign for any bank The companys net profit is Q3FY12 is 1,102.27 which has a increase of 25.19% growth compared to 2011

Weaknesses

Gaps Majorly they concentrated in corporate, wholesale banking, treasury services, retail banking Foreign branches constitute only 8% of total assets Very recently the bank started focusing its attention towards personal banking and rural areas The share rates of AXIS bank is constantly fluctuating in higher margins which makes investors in an uncomfortable position most of the time There are lot of financial product gaps in terms of performance as well as reaching out to the customer There are many fraudulent activities involved in credit cards as the banks process credit card approval even without verification of original documents Their financial consultants are not wise enough to guide the customers towards right investments Customer service has to improve a lot in order to be in race with other major players

35

Opportunities

Acquisitions to fill gap In 2009, Alliance with Motilal Oswal for online trading for 10 million customers In 2010, acquired Enam Securities Pvt Ltd broking and investment banking In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business No. of e-transactions increased from 0.7 million to around 2 million Geographical expansion to rural market 80% of them have no access to formal lending 46% use informal lending channels 24% unregulated money lenders Now number of branches increased to 1493 from 339. Last quarter there were 48 new branches opened across the Nation Since its a new age banking there are lot of opportunities to have the advance technicalities in banking solutions compared to existing major players The assets in their international operations are growing at a very faster pace with a growth rate of 9%. The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response in terms of attracting new customers in personal banking segment

Threats

Since 2009, RBI has increased CRR by 100 basis points Increased repo rate reverse repo rate by 50 points 11 times of late Increasing popularity of QIPs due to ease in fund raising RBI allowed foreign banks to invest up to 74% in Indian banking Government schemes are most often serviced only by govern banks like SBI ,Indian Banks, Punjab National Bank etc ICICI and HDFC are imposing strong threats in terms of their expansion in customer base by their aggressive marketing strategies

36

REVIEW OF LITERATURE

37

REVIEW OF LITERATURE

Rampersad (2007) This study examines the Ethnicity and Customer Satisfaction in the fianancial service sector with the purpose is to describe research carried out to determine whether South Floridas heterogeneous retail banking customer have differing perception of the importance of service quality dimensions; and to ascertain whether various ethnic groups report different levels of customer satisfaction with their retail banks. As a group, 230 banking customers rated reliability and responsiveness as having the greatest impact on their satisfaction levels. In general, the results of this study offer significant implications for retail banks seeking to improve ustomer satisfaction and striving for better retention rates, using customer-oriented processes and training programs within an increasingly diverse market place. Although significant research has been done regarding issues and factors contributing to satisfaction in the banking industry.

Grigoroudis (2001) examines customer satisfaction represents a modern approach for quality in enterprises and organization and serves the development of a truly customer- focused management and culture. Measuring customer satisfaction offers an immediate, meaningful and objective feedback about client preferences and expectation. In this way, companies performance may be evaluate in relation to a set of satistisfaction dimension that indicate the strong and weak point of business organization. This paper presents an original customer satisfaction survey in the private bank sector. The implemented methodology is based on the principles of multicriteris analysis and preference disaggregation modeling. The most important results are focused on the determination of the critical service dimension and the segmentation to customer clusters with distinctive preferences and expectations.

Brownlie (1993) This study analysis that the nature and direction of the satisfaction that are delivered to consumers of bank services are highlighted. The non metric multidimensional scaling technique enabled respondents perception to be represented spatially. It is revealed that respondents had high levels of satisfaction with regard to the location and accessibility of branches and ATMs and acceptance of the current levels of banking fees; but expressed some caution in their evaluation of new and improved services.

Dougall (1996) This study states that customer satisfaction and critical for banks; and investigates the major determinants of customer satisfaction and future intention in retail bank sector, indentify the determinants which include service quality dimensions (e.g. competitive
38

interest rates), service problems, service recovery and products used. Find in particular, that service problems and the banks service recovery ability have major impact on customer satisfaction and intention to switch.

Choong (2006) This study examines the impact of several retention- relevant constructs that influence consumer decision to say with or leave their banks in New Zealand. These constructs were rated by customer as having strong effects on loyalty to their banks. Demographic characteristics (i.e, age, gender, education level and income ) were also assessed for their contribution to intention of staying with or finding alternatives banks. Results suggest that the most important constructs were customer satisfaction , followed by corporate image and switching barriers. There was also evidence that customer age group and level of education contributed to explaining respondents propensity to stay with their current banks.

39

RESEARCH METHODOLOGY

40

RESEARCH METHODOLOGY

OBJECTIVES OF THE STUDY:

The following are the main objectives of the study: To know the customer awareness towards various Product and Services of Axis Bank. To study the customer satisfaction level towards the services offered by Axis Bank. To identify the problems incurred by the customers

Sample size:
The sample size of the research is 100 respondents.

Sampling Technique:
The sampling method used in the present study is judgemental sampling.

Sampling unit:
It consist of account holders of Axis Bank, Resident in Amritsar city.

Data collection method:

Primary data:
Primary data is collection during the study with the questionnaire on the basis of which analysis, interpretation and finding of the study has been concluded.

Secondary data:
Secondary data are those, which have already been collected by some other person for their purpose and published. Secondary data are usually in the shape of finished products.

41

Two types of secondary data were collected for the preparation of the project work: Internal Data: It was generated from companys brochures, manuals and annual reports. External Data: It was generated from magazines, research books, intranet and internet.

Tools for presentation:

Finding have been shown in the forms of graphs and charts.

LIMITATIONS OF THE STUDY

a) Due to shortage of time and resources the sample size of 100 respondants has been taken for the study, soon the current study may hold true picture. b) Lack of knowledge on the part of respondants may effects the result of the study. c) The study is limited to Amritsar city. So the current study may not hold true for any other population.

42

DATA ANALYSIS AND INTERPRETATION

43

TABLE 4.1 : GENDER WISE DISTRIBUTION

Options No. of respondants %age of respondants Male 55 55% Female 45 45% Total 100 100%

FIGURE 4.1 : GENDER WISE DISTRIBUTION

%age of gender

50%

50%

Male Female

INTERPRETATION:
From the above table & figure that 55% respondants are belonging to the category of male and the remaining 45% respondants are belonging to the category of female.

44

TABLE 4.2: AGE WISE DISTRIBUTION

Options No. of respondants %age of respondants 18-25 20 20% 26-40 27 27% 41-65 42 42% Above 65 11 11% Total 100 100%

FIGURE 4.2: AGE WISE DISTRIBUTION

Age of respondants
11% 20% 18-25 26-40 41-65 42% 27% above65

Interpretation:
From the above table it is revealed that 20% respondants are belonging to the age group of 18-25 and 27% respondants are belonging to the age group of 26-40 respondants. And 42% respondants are belonging to the age group of 41-65 & 25% respondants are belonging to the category of above 65.

45

TABLE 4.3 : QUALIFICATION WISE DISTRIBUTION

Options No. of respondants %age of respondants Under graduation Graduate 50 35 Post graduate 15 Total 100

50%

35%

15%

100%

FIGURE 4.3: QUALIFICATION WISE DISTRIBUTION

Percentage
15%

under graduate 50% 35% graduate post graduate

Interpretation:
From the above & figure it is revealed that maximun respondants are belonging to the category of undergraduate, 35% respondents are belonging to the category of graduate and 12% of respondants to the category of Post graduate.

46

TABLE 4.4: OCCUPATION WISE DISTRIBUTION

Option Service Business 15 15% Profession 10 10% Student 8 8% Other Total (housewife) 32 100 32% 100%

No. of 35 respondants %age of 35% respondants

%age of respondants

service business profession student other

Interpretation:
From the above table & figure it is revealed that 35% respondants are falling under the category of service, 15% of respondants are falling under to the category of business, 10% are falling under the category of profession, 8% are falling under the category of Student & remaining 325 are falling under the category of others ( housewife, labour).

47

TABLE 4.5: ANNUAL INCOME WISE DISTRIBUTION

Option No. of respondants %age of respondants Below 3,00,000 60 60% 3,00,0005,00,000 30 30% 5,00,0018,00,000 10 10% Above 8,00,000 0 0% Total 100 100%

FIGURE 4.5: ANNUAL INCOME WISE DISTRIBUTION

%age
0% 10%

Below 3,00,000 30% 60% 3,00,000-5,00,000 5,00,001-8,00,000 above 8,00,000

Interpretaion:
From the above table & figure it is revealed that 60% of respondants are falling under the category of income below 3,00,000 and 30% are belonging to the category of between 3,00,0005,00,000, 10% are falling under between 5,00,001- 8,00,000.

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TYPES OF DEPOSIT SCHEMES AVAILED

Table 4.6: Number and %age of respondants types of deposit schemes have availed the most Options No. of respondants %age of respondants Saving 60 60% Current 10 10% Recurring 7 7% Fixed Deposits 23 23% Total 100 100%

Figure 4.6: %age of respondants types of deposit schemes have availed the most

23% saving current 7% 60% 10% recurring deposit fixed deposits

Interpretation:
From the above table & figure it is revealed that, 60% said that they are availed saving deposit, 10% respondants said that they availed current account in Axis Bank. Similarly, 7% respondants said they availed recurring account and 23% said they availed fixed deposit account in Axis Bank.

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FACTORS RESPONSIBLE FOR AVAILING DEPOSIT SCHEME OF BANK

Table 4.7: Number and %age of respondants citing factors responsible for availing deposit schemes Options No. of respondants %age respondants Convenient location 60 50% Prompt service 32 27% Good image of bank 10 8% Having branches all over India 4 3% and abroad Trust 14 12% Any other 0 0 Total 120 100% Figure 4.7: %age of respondants citing factors responsible for availing deposit schemes
0% convenient location 3% 12% prompt service 8% 50% good image of bank having branches all over india and abroad trust any other

27%

Interpretation: From the above table & figure it is revealed that majority of respondants
(50%) said that they availed deposit schemes of Axis Bank because of convenient location, 27% said that they availed deposit scheme because of prompt service. Note: Since the above question is multi-choice question so the customer have chosen than one option

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RESPONDANTS FACING DIFFICULTY WHILE OPENING THE ACCOUNT

Table 4.8: number & %age of respondants face difficulty while opening an account Option Yes No Total No. of respondants 5 95 5% %age of respondants 5% 95% 100%

Figure 4.8: %age of respondants face difficulty while opening the account

5%

yes no

95%

Interpretation: From the above table & figure that majority of 95% respondants said that
they have not faced any difficulty while opening the account, 5% said that they faced difficulty while opening an account in Axis Bank.

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REASONS FOR PROBLEM

Table 4.9: Number & %age of respondants citing the reasons responsible for their problem Options Difficulty in getting information Non cooperative staff Any other ( formalities) Total No. of respondants 3 4 1 8 %age of respondants 38% 49% 13% 100%

Figure 4.9: %age of respondants citing the reasons responsible for their problem

13% difficulty in getting information non cooperative staff any other 49%

38%

Interpretation:
From the above table & figure it is revealed that maximum respondants said that they faced difficulty because of non cooperative staff in Axis bank.

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TYPE OF LOAN AVAILED BY THE RESPONDANTS

Table 4.10: Number & %age of respondants type of loan being availed Options Housing loan Car loan Education loan Personal loan Total No. of repondants 5 2 2 3 12 %age of respondants 43% 16% 16% 25% 100%

Figure 4.10 %age of respondants type of loan being availed

25% 43% housing loan car loan education loan 16% personal loan

16%

Interpretation:
From the above table & figure it is revealed that 43% respondants that they are availed housing loan, 16% said that they are availed car loan, 16% respondants said that they are availed education loan& 25% said that they are aviled personal loan in Axis Bank.

53

RATING BY RESPONDANTS TO THE FACTORS CONSIDERED AT THE TIME OF AVAILING LOAN

Table 4.11: Score given by respondants to the factors for considered while taking the loan (1-least imp.) (5-most imp.) Options Interest rate Instalments Processing time Formalities charges 5 9 2 0 0 1 4 2 7 0 0 3 3 1 1 2 2 6 2 0 1 0 10 1 1 0 1 10 0 1 Total score 56 44 16 26 38

Figure 4.11: Score given by respondants to the factors for considered while taking the loan
70 60 50 40 30 20 10 0 interest rate instalments processing rate formalities charges

Interpretation:
From the above table & figure it is revealed that the most importance factor are interest rate while talking the loan and least importance are given to processing time.

54

SERVICES AVAILED BY RESPONDANTS

Table 4.12: Number & %age of respondants services being availed

Options ATM Demand draft Cash credit Lockers Overdraft limit Net banking Mobile banking Core banking total

No. of respondants 40 20 2 20 3 10 23 2 120

%age of respondants 32% 17% 2% 17% 3% 8% 19% 2% 100%

Figure 4.12 : %age of respondants services being availed

2%

19% 32%

ATM demand draft cash credit

8% 3%

lockers overdraft limit net banking mobile banking 17% 17% core banking

2%

Interpretation:
From the above table & figure it is revealed that maximum respondants i.e. 32% have availed ATM service & only 2% respondants using core banking of Axis Bank.

55

SATISFACTION LEVEL OF RESPONDANTS

Table 4.13: Number & %age of respondants level of satisfaction with regard to basic services Options Highly satisfied 5 35 Satisfied 4 42 17 26 20 Neutral 3 23 3 47 65 Dissatisfied Highly dissatisfied 2 1 0 0 1 7 5 0 0 0 Total scores 412 89 359 335

Deposit & Withdrawals Renewal of 2 FD Services of 20 cash counter Updating of 10 passbooks

Figure 4.13: %age of respondants level of satisfaction with regard to basic services
450 400 350 300 250 200 150 100 50 0 deposit & withdrawals renewal of FD services of cash counter updating of passbooks 89 412 359 335

Interpretation:
From the above table & figure it is revealed that maximum scores are given to the services of deposits and withdrawals (412) by the respondants & lowest score are given to the renewal of FD (89) in Axis Bank.

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SATISFACTION LEVEL OF RESPONDANTS

Table 4.14: Number & %age of respondants level of satisfaction with regard to value added services Options Hihly satisfied 5 2 4 0 15 0 2 20 Satisfied 4 20 15 2 5 2 5 3 Neutral 3 14 1 0 0 1 3 0 Dissatisfied Highly dissatisfied 2 1 2 2 0 0 0 0 0 0 0 0 0 0 0 0 Total score

ATM Demand Draft Cash Counter Lockers Overdraft Limit Net Banking Mobile Banking

148 83 8 95 11 36 112

Figure 4.14: %age of respondants level of satisfaction with regard to value added services
160 140 120 100 80 60 40 20 0 ATM demand draft cash credit lockers overdraft limit net banking mobile banking 8 11 36 95 83 112 148

Interpretation:
From the above table & figure it is revealed that the maximum are given to the ATM services by the repondants &lowest score given to the core banking and cash credit services in Axis Bank.

57

SATISFACTION LEVEL OF RESPONDANTS

Table 4.15: Number & %age of respondants level of satisfaction with regard to extra facilities Options Highly satisfied 5 3 Satisfied 4 15 Neutral 3 65 Dissatisfied Highly dissatisfied 2 1 15 2 Total score

Sitting and Waiting arrangement Drinking water Air Condition Magazines Lighting

302

0 65 0 17

0 30 0 48

2 5 0 28

68 0 77 7

30 0 23 0

202 460 177 375

Figure 4.15: %age of respondants level of satisfaction with regard to extra facilities
500 450 400 350 300 250 200 150 100 50 0 sitting and waiting arrangement drinking water air condition magazines lighting 202 177 302 375 460

Interpretation: From the above table & figure it is revealed that maximum scores are given to the Air Condition (460) & minimum scores to the Magazines (177) by the respondants in Axis Bank.

58

RESPONDANTS OPTION REGARDING CREATING AWARENESS ABOUT PRODUCTS AND SERVICES

Table 4.16: Number & %age of respondants the most opinion regarding creating awareness about products and services in near future Options Conducts more training More advertisements Invitation to customer in branch Any other Total No. of respondants 25 45 38 0 108 %age of respondants 23% 42% 35% 0% 100%

Figure 4.16: %age of respondants the most opinion regarding creating awareness about products and services in near future

10% conducts more tarining programmes 19% more advertisements invitation to customer in branch any other 16%

55%

Interpretation: From the above table & figure it is revealed that maximum respondants i.e. maximum respondants (32%) have given importance to the advertisements through which the bank should aware customers about different products and services in near future.

59

RESPONSE OF RESPONDANTS
Table 4.17: Number & %age of respondants response to shift their account Options Yes No Total No. of respondants 5 95 100 %age of respondants 5% 95% 100%

Figure 4.17: %age of respondants response to shift their account

5%

yes no

95%

Interpretation:
From the above table & figure it is revealed that majority of the respondants are not willing to shift their account to another bank and only 5% respondants are willing to shift their account to another bank in near future because of incooperative staff & more hidden charges.

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FINDINGS
According to the survey, Majority of the respondants have saving account with bank. Most of the respondants aware about the products and service being offend by the Axis Bank. According to the survey majority of the customer were not faced any difficulty but some of the customer not satisfied because according to them staff of bank didnt given personal attention and introduction while opening the account. Some people want to the change in the behavior of the staff of the banks. Maximum respondants were give more importance to interest rate at the time of availing the loan. Maximum respondants of the Axis Bank say ATMs were not always in the working condition. According to the survey customer were not satisfied with the facilities of drinking water and magazines of the bank. Majority of the people were satisfied with the basic services because they didnt have to wait for long and they Deposit & Withdraw the cash with in few minutes. According to the survey, maximum people suggest to the bank for more advertisement and Conduct fares regarding Services to awaring the customer about products and services in the near future. Views of the customers were mostly in favour about the banks overall performance.

61

CONCLUSION
I conclude that customer satisfaction is very necessary for run a business and to earn a profit but motive of Axis Bank is not to earn a profit only but also to raise their standard of living of general people. I observe that Axis Bank provide good services to their customer like locker facility, mobile banking, net banking, credit card facility, etc. most of the people were satisfied with the basic services because they didnt have to wait for long and they Deposit & Withdraw the cash within few minutes. The employees of the Axis Bank are try to tackle to every difficult situation. Employees of Axis Bank can complete their work according to the guidelines provide by reserve bank of India (RBI). Customer of this bank suggest to improve the facility of ATM machines and setting up ATM facility at each branch. With this proper water facilities providing to customer in summer season. After survey conclusion overall performance of Axis Bank is Excellent.

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RECOMMENDATIONS
Because of the stiff competition bank, focus on advertisement and promotion and aware the customer about services. ATM facility is most important now days so open ATM at every branch. Saturday should be made as a full working day so that people will easily transact at any time in day. They face many difficulties on Saturday. Proper feedback system should be there and feedback forms should be kept for the customer. The customer coming into the bank should fill up these forms and it should be collected on daily basis. By analysis these bank will easily come across its feedback and accordingly modify them. So that customer will feel proud of themselves as well as their bank. Interior space should be extended so that people will freely move during rush hours. Bank should open may I help you counter for customer.

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BIBLIOGRAPHY
There is an immense need and flow of information. While conducting the analysis as well as while writing the report, which was gathered through various sources mentioned below:Websites Refferd: http://www.indiweb.in/banking/axis-bank-services http://www.axisbank.com http://en.wikipedia.org/wiki/Axis_Bank http://www.moneycontrol.com/company-facts/axisbank/history/AB16 http://www.axisbank.hk/aboutus/ourmissionandvalues/Our-Mission-And-Values.asp http://www.axisbank.com/business-banking/merchant-solutions/products-offered.aspx http://finance.indiamart.com/investment_in_india/banking_in_india.html http://www.rbi.org

Books references: Customer Satisfaction measurement simplified (Jeffrey Gitomer) Customer Satisfaction measurement & management- (Naumann Giel) Banking Theory & Practice- (Niti Soni) ( Vandana Gautam) Terrence Levesque, Gordon H.G Me Dougall, (1996) Determinants of customer satisfied in retail banking International Journal of Banking Marketing Vol. 14 Iss:7,pp.12-20 European Journal of Operational Research Customer Satisfaction Measurement in the private bank sector Volume 130, Issue 2,16 April 2001, page 347-360

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ANNEXURE

65

QUESTIOBBAIRE

Dear Sir/Madam I am a student of Global Institute of Management. I am conducting a project on CUSTOMER SATISFACTION REGARDING PRODUCT AND SERVICES OFFERED BY AXIS BANK. I request you to Kindly fill the questionnaire follow and I assure you that the data generated shall be kept confidential.

PERSONAL INFORMATION
Name: ________

Gender:
a) Male ( ) b) Female ( )

Age:
a) 18-25 ( ) b) 26-40 ( )

Qualification:
a) Under Graduate ( ) c) Post Graduate ( ) b) Graduate ( ) d) Illiterate ( )

Occupation :
a) Service ( ) c) Profession ( ) e) Others ( ) b) Business ( ) d) Student ( )

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Annual Income:
a) b) c) d) Below 3,00,000 ( ) 3,00,000 -- 5,00,000 ( ) 5,00,001 8,00,000 ( ) Above 8,00,000 ( )

1 ) Which type of account do you avail the most in Axis Bank?

a) b) c) d) Saving ( ) Current ( ) Recurring Deposit ( ) Fixed deposit ( )

2) Why did you open account with this Bank?

a) b) c) d) e) f) Convenient location ( ) Prompt services ( ) Good image of Bank ( ) Having branches all over India and Abroad ( ) Trust ( ) Any other please specify ( )

3) a) Did you face any difficulty while opening the account?

No difficulty ( ) Not much ( ) Great difficulty ( )

b) What were the reasons if you faced difficulty?

Difficulty in getting information ( ) Non co-operative staff ( ) Any other ( please specify ) ( )

67

4) What type of Loans have you availed?

a) b) c) d) e) Housing Loan ( ) Car Loan ( ) Education Loan ( ) Personal Loan ( ) Other _____

5) Factor considered at the time of availing the Loan? (Please specify) (1- least important) (2-most important)

Option Interest rate Installments Processing time Formalities Charges

6) Have you availed the following other facilities?

a) b) c) d) e) f) g) h) ATM ( ) Demand draft ( ) Cash credit ( ) Lockers ( ) Overdrafts limits ( ) Net banking ( ) Mobile banking ( ) Core banking ( )
68

7) Give your satisfaction level with respect to the following services?

Option

Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

Deposit & withdrawal Renewal of FD Services of cash counter Up dating passbooks

8) Give your satisfaction level with respect to following value added services?

Option

Highly satisfied

Satisfied

Neutral

Dissatisfied

Highly dissatisfied

ATM Demand draft Cash credit Lockers Overdraft limit Net banking Mobile banking

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9) What is your opinion regarding the following facilities? (Please rate)

Opinion Sitting and waiting Arrangement Drinking water Air condition Magazines Lighting

Highly Satisfied

Satisfied

Neutral

Dissatisfied

Highly Dissatisfied

10) According to your opinion what bank should do to make the bank customer aware about products and services in near future?
a) b) c) d) Conduct more training programs ( ) More Advertisement ( ) Invitation to customer in branch ( ) Any other specify ________

11) Are you willing to shift your account to other bank?

a) Yes ( ) b) No ( )

12) Suggestion if any _____________________

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