[1]

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INTRODUCTION OF AXIS BANK

OVERVIEW OF AXIS BANK

Smt. Shikha Sharma,Managing Director, Axis Bank stated that It was becoming increasingly clear that the usage of the UTI brand by several shareholder-unrelated entities was becoming increasingly untenable, and we are now very pleased to assume our very own brand. The new name has grown on us over the last several weeks, and we were encouraged to adopt it as geometers conceive of an axis as a line of reference around which all else is measured, or as a line of stability around which the planets and spheres rotate! Further, while our name has changed, nothing else has. The promoters, the network, the teams, the products, the technology and the customer service remain the same. In recent years the Bank has gained considerable market share in products and services where technology underpinning and customer relationships are key differentiators. On this platform as Axis Bank, we will endeavor to build a high quality bank. Axis Bank has a strong banking franchise spanning Corporate Banking, Capital Markets and Retail Banking. Axis Bank has more than 7 million customers serviced through a wide network of 1103 Branch Offices and Extension Counters and over 4846 ATMs. Axis Bank is located at 676 cities, towns and villages. The Bank has business in excess of Rs.61942 crores, with deposits of Rs.141300 crores and Net Advances of Rs.104343 crores as on 30th September, 2010. Axis Bank has the third largest ATM network in India, it has the third largest base of debit cards in the country, and also has the third largest EDC network. Axis Bank provides payroll services to over 13389 corporates across 32 lakh salary accounts. Axis Bank is among the largest providers of Cash Management Services in the country catering to more than 6823 customers. For the last 3 years Axis Bank has been among the top 3 arrangers of corporate debt in India. Axis Bank is the agency bank for a number of State Governments and Departments of the Central Government.

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[3] Axis Bank is strongly capitalised. The Bank has recently issued fresh capital of Rs.4534 crores through a combination of GDR, QIP and preferential issue of shares to its promoters. Axis Banks capital adequacy ratio based on the additional capital raised and net customer assets as on 30.06.10 is estimated at just below 19%. The market capitalisation of the Bank as on 30th Sept, 2010 was Rs. 102814 crores, Axis Bank is the fifth largest Bank by market capitalisation in India.

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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. Previously it was known as UTI BANK, 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 InsuranceCompany Ltd. and United India Insurance Company Ltd.The Bank today is capitalized to the extent of Rs. 359 with the public holding (other than promoters) at 57.79%. 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 1103 branches and Extension Counters (as on 30th Sept 2010). The bank has a network of 0ver 4846 ATMs (as on 30th Sept 2010) 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. The company provides personal services which include accounts, deposits, loans, cards, investments, insurance, payments and other services. The bank also provides corporate services which include accounts, credit, capital market, treasury and cash management services. The bank also offers NRI banking, priority banking, mobile refill, locker and online shopping facilities. Axis Bank ensures a challenging and power packed work culture. It supports its employees to accomplish targets and provides them housing facilities, medical and health insurance, loan options and many other attractive benefits. It keeps its employees happy, which reflects in the employee satisfaction survey

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Board of Directors

The members of the Board are :

SHRI ADARSH KISHORE (CHAIRMAN)

Smt. Shikha Sharma Shri N.C. Singhal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri Ramesh Ramanathan Shri K. N. Prithviraj MD & CEO Director Director Director Director Director Director Director Director

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COMPANY PROFILE OF AXIS BANK

Year of Establishment Market Capitalisation Registered office

1994 Rs. 102814.67 (September, 2010) Ahmedabad

Central Office Branches No. of Branches ATM

Mumbai India, Hong Kong, UAE, Singapore and China 1103 4846

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AXIS BANK HIGHLIGHTS

Network 1103 branches and extension counters

4 foreign offices in Singapore, Hong Kong, Shanghai and Dubai 4846 ATMs reaches out to 676 cities, towns and villages across the country

Business (as on 30th Sept 10) Total Business over 61942 crores
Deposite: 39159 crores Advances : 22783 crores

Leadership positions:
Market Capitalisation: 102814.67 crores (sept 2010)4846 ATMs Among top 3 deployers in India 160 lakh debit cards Among top 3 issuers in India 169,000 EDC machines Among top 3 deployers in India 6823 CMS clients Among the top players Debt syndication - among the top 3 arrangers of corporate debt in India.

Profitability:
Financial Year 2010 Net Profit: 1813 crores Consistent track record of profitability Net profit increased by more than 38.28% y-o-y in the past 31 out of 33 quarters

Asset Quality:
Net NPA - 0.34% Gross NPA 1.12%

05-022008: 05-022009: 05-022010:

Banks see little scope for further reduction in lending rates Inflation slips to 5.07 pc; more scope for RBI to cut rates Inflation slips to 5.07% Inflation slips to 5.07 pc; more scope for RBI to cut rates

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History

Axis Bank started its financial operations in 1994. The bank was set up by a consortium of financial companies that include Life Insurance Corporation of India (LIC), The New India Assurance Company, Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), United India Assurance Limited, and The Oriental Insurance Corporation. Axis Bank of India was previously known as UTI Bank.

A Nationwied Banking Operations

Axis Bank presently has its registered office in Ahmedabad. The Central Office is located in Mumbai. Axis Bank of India currently conducts its operations through more than 1103 branches and ancillary extension counters. Day to day banking activities are further supplemented by the presence of 4847 ATMs scattered all over the Indian Republic. Axis Bank possess one of the largest ATM networks in India. Corporate banking is a special forte of Axis Bank. It also has expertise in retail banking. Asset quality of the bank is extremely high. Non Performing Assets (NPAs) of the bank is at a

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[10] comfortable low- below 1% of of its total loans. The bank also has higher transaction margins compared to comparable peer banks. Axis Bank's higher weightage on corporate banking also leads to diversification of credit risk. The bank provides Internet banking and phone banking facility to its customers. Both Life and non Life insurance services are provided by the bank. If you wish to know more about Axis Bank, please click on the following links:

Axis Bank Loans Axis Bank Jobs Axis Bank Online Banking

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CONCEPT & INTRODUCTION OF BANKING

History of Banking in India

Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.

For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reasons of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalisation of 14 major private banks of India. 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. Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

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[12] 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 mobilisation was slow. Abreast of it the savings bank facility provided by the Postal department was comparatively safer. Moreover, funds were largely given to traders.

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Phase II
Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it nationalised 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 nationalised in 1960 on 19th July,1969,major process of nationalisation 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 nationalised.

Second phase of nationalisation 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 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1961 : Insurance cover extended to deposits. 1969 : Nationalisation of 14 major banks. 1971 : Creation of credit guarantee corporation. 1975 : Creation of regional rural banks. 1980 : Nationalisation of seven banks with deposits over 200 core.

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After the nationalisation 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 liberalisation 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.

Nationalisation Of Banks In India

The nationalisation of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime

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[15] minister. It nationalised 14 banks then. These banks were mostly owned by businessmen and even managed by them.

Central Bank of India Bank of Maharashtra Dena Bank Punjab National Bank Syndicate Bank Canara Bank Indian Bank Indian Overseas Bank Bank of Baroda Union Bank Allahabad Bank United Bank of India UCO Bank Bank of India

Before

the steps of nationalisation of Indian banks, only State Bank of India (SBI) was

nationalised. It took place in July 1955 under the SBI Act of 1955. Nationalisation of Seven State Banks of India (formed subsidiary) took place on 19th July, 1960. The State Bank of India is India's largest commercial bank and is ranked one of the top five banks worldwide. It serves 90 million customers through a network of 9,000 branches and it offers -- either directly or through subsidiaries -- a wide range of banking services. The second phase of nationalisation of Indian banks took place in the year 1980. Seven more banks were nationalised with deposits over 200 crores. Till this year, approximately 80% of the banking segment in India were under Government ownership.

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[16] After the nationalisation of banks in India, the branches of the public sector banks rose to approximately 800% in deposits and advances took a huge jump by 11,000%.

1955 : Nationalisation of State Bank of India. 1959 : Nationalisation of SBI subsidiaries. 1969 : Nationalisation of 14 major banks. 1980 : Nationalisation of seven banks with deposits over 200 crores.

Scheduled Commercial Banks In India

The commercial banking structure in India consists of: Scheduled Commercial Banks in India Unscheduled Banks in India
Scheduled Banks in India constitute those banks which have been included in the Second

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[17] Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act. As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918 branches.The scheduled commercial banks in India comprise of State bank of India and its associates ( , nationalised banks (19), foreign banks (45), private sector banks (32), cooperative banks and regional rural banks. "Scheduled banks in India" means the State Bank of India constituted under the State Bank of India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of 1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934), but does not include a co-operative bank". "Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

Types of Banks:
Central Bank
The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a central board (headed by a Governor) appointed by the Central Government. It issues guidelines for the functioning of all banks operating within the country.

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Public Sector Banks

a. State Bank of India and its associate banks called the State Bank Group b. 20 nationalized banks c. Regional rural banks mainly sponsored by public sector banks

Private Sector Banks a. Old generation private banks b. New generation private banks c. Foreign banks operating in India d. Scheduled co-operative banks e. Non-scheduled banks Co-operative Sector
The co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories.

a. State co-operative Banks b. Central co-operative banks c. Primary Agriculture Credit Societies

Development Banks/Financial Institutions

Which provide funds to industrial sector for development purposes, few prominent development banks are as follows-

IFCI

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IDBI ICICI IIBI

Indian Banks Association (IBA)

The Indian Banks Association (IBA) was formed on the 26th September, 1946 with 22 members. Today IBA has more than 156 members comprising of Public Sector banks, Private Sector banks, Foreign banks having offices in India, Urban Co-operative banks, Developmental financial institutions, Federations, merchant banks, mutual funds, housing finance corporations, etc

The banking system

Almost 80% of the business are still controlled by Public Sector Banks (PSBs). PSBs are still dominating the commercial banking system. Shares of the leading PSBs are already listed on the stock exchanges. The RBI has given licences to new private sector banks as part of the liberalisation process. The RBI has also been granting licences to industrial houses. Many banks are successfully running in the retail and consumer segments but are yet to deliver services to industrial finance, retail trade, small business and agricultural finance.

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The PSBs will play an important role in the industry due to its number of branches and foreign banks facing the constrait of limited number of branches. Hence, in order to achieve an efficient banking system, the onus is on the Government to encourage the PSBs to be run on professional lines.

Deregulation of banking system

Prudential norms were introduced for income recognition, asset classification, provisioning for delinquent loans and for capital adequacy. In order to reach the stipulated capital adequacy norms, substantial capital were provided by the Government to PSBs. Government pre-emption of banks' resources through statutory liquidity ratio (SLR) and cash reserve ratio (CRR) brought down in steps. Interest rates on the deposits and lending sides almost entirely were deregulated. New private sector banks allowed to promote and encourage competition. PSBs were encouraged to approach the public for raising resources. Recovery of debts due to banks and the Financial Institutions Act, 1993 was passed, and special recovery tribunals set up to facilitate quicker recovery of loan arrears. Bank lending norms liberalised and a loan system to ensure better control over credit introduced. Banks asked to set up asset liability management (ALM) systems. RBI guidelines issued for risk management systems in banks encompassing credit, market and operational risks. A credit information bureau being established to identify bad risks. Derivative products such as forward rate agreements (FRAs) and interest rate swaps (IRSs) introduced.

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OBJECTIVES OF AXIS BANK

1).UNDERSTAND THE CUSTOMERS NEEDS:
After interacting with the different types of people, we came to know about their needs of saving money. We understand their difficulties they face regularly while opting the bank services.

2).DEVELOP CUSTOMERS RELATIONSHIP:

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[22] The objective of the project is to develop healthy customer relationship with the bankings services .We met with different types of people having different family background & educational qualification. The project gives us a way to interact with the people.

3).ANALYSIS OF CUSTOMERS EXPECTATION:

During the time of interaction with people, we made a rough data about their needs & analyse them betterly from which we came to know about their different types of expectations from the banking services.

4).SORTING OUT OF OPPORTUNITIES:

Customers expectation gave us a new way to improve the existing services & also help us to innovate for the new services, which opens a new door for different opportunities to grow.

Our Mission:

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

Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

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Customer Satisfaction through Providing quality service effectively and efficiently "Smile, it enhances your face value" is a service quality stressed on Periodic Customer. Service Audits Maximization of Stakeholder value Success through Team work, Integrity and People.

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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 27.02% 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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BANKING SERVICE
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BANKING SERVICES FUNDAMENTAL BANKING SERVICES

MODERN BANKING SERVICES

SAVING ACCOUNT CURRENT ACCOUNT FIXED DEPOSITS RECURRING ACCOUNT LOANS MONEY TRANSFER LOCKER

NET BANKING PHONE BANKING SMS BANKING ATM CREDIT CARD DEBIT CARD NRI SERVICES FINANCIAL ADVISORY

ACCOUNTS OFFERED BY AXIS BANK

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Zero Balance Savings Account

Easy Access Savings Account Prime Savings Account Corporate Salary Account Senior Privilege Smart Privilege Account Trust/NGO Savings Account Pension Savings Account Krishi Savings Account

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PRODUCTS

While various deposit products offered by the bank are assigned different names. The deposit products can be categorized broadly in to the following typesDemand Deposit means a deposit received by the bank which can be withdrawn on demand. Saving Deposit means a form of demand deposit which is subject to restriction as to the number of withdrawals as also the amounts of withdrwals permitted by the bank during specified period. Term deposit means a deposit received by the bank for a fixed period withdrawable only after the expiry of the fixed period and includes deposit such as Recurring/Reinvestment Income Certificates

FUNDAMENTAL BANKING SERVICES

Banking in India is so convenient and hassle free that one (individual, groups or whatever the case may be) can easily process transactions as and when required. The most common services offered by banks in India are as follow:

Bank accounts :It is the most common service of the banking sector. An individual
can open a bank account which can be either savings, current or term deposits.

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Loans :You can approach all banks for different kinds of loans. It can be a home loan,
car loan, personal loan, loan against shares and educational loans.

Money Transfer: Bnaks can transfer money from one corner of the globe to the other
by issuing demand drafts, money orders or cheques.

Credit and debit cards: Most banks offer credit cards to their customers which can be used to purchase products and services,or borrow money.

Lockers :Most banks have safe deposit lockers which can be used by the customers for
storing valuables, like important documents or jewellery.

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INTODUCTION OF MODERN BANKING

Modern banking in India is said to be developed during the British era. In the first half of the 19th century, the British East India Company established three banks the Bank of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. But in the course of time these three banks were amalgamated to a new bank called Imperial Bank and later it was taken over by the State Bank of India in 1955. Allahabad Bank was the first fully Indian owned bank. The Reserve Bank of India was established in 1935 followed by other banks like Punjab National Bank, Bank of India, Canara Bank and Indian Bank. In 1969, 14 major banks were nationalized and in 1980, 6 major private sector banks were taken over by the government. Today, commercial banking system in India is divided into following categories.

MODERN BANKING SERVICES

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Easy Banking:

This section is fully dedicated to the Tech Banking. A decade before, it was tough to belief that banking secctor will be at a finger tip. Now its possible. A mobile hand set with a connection is the only instrument needed to make a gateway to your banking transaction, the latest innovation of technology. Apart from the Mobile Banking, including of SMS Banking, Net Banking and ATMs are the major steps taken by the banks in India towards modernisation. With all these devises and systems, there is a complete freedom to experience. Check your account, transfer your fund, make payments and what more, do anything of everything what has been followed in physical banking since ages. But this time no standing for hours in front of cash counter and no time boundation in withdrawing your own money

NET BANKING:
Definition:
Electronic banking via the Internet: a system of banking in which customers can view their account details, pay bills, and transfer money by means of the Internet Net Banking is a system of banking in which customers can view their account details, pay bills, and transfer money by means of the Internet.Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from a browser software that runs Internet banking programs resident on the banks World Wide Web server, not on the users PC. Net Banker defines a true Internet bank as one that provides account balances and some transactional capabilities to retail customers over the World Wide

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[34] Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks. This service is provided free of cost by banks.

Net Banking is conducting ones banking or bank account online through a computer and a net connection. The system is updated immediately after every transaction automatically. In other words it is said that it is updated 'on-line, real time'. Through net banking one can check the status of his/her account, place queries and also can be facilitated with a wide range of transactions simultaneously. In India, the regulatory body has not yet sanctioned virtual bank, in abroad there are banks like EGG Bank or NET Bank, which only have a virtual presence without any physical branches.

Net Banking has three basic features.

They are as follows:

The banks offer only relevant informations about their products and services to the mass. Few banks provide interaction facility between the banks and its customers. Banks are coming up with arrangements of utility payments, like telephone bills, electricity bills, etc.

The current statistics show that hardly 10 per cent of Indian customers uses the internet for banking. Among all the facilities provided, the maximum of them uses only for checking balance or requesting for a cheque book. Very few customers uses the advance interactive services provided by the banks. According to HDFC and ICICI Bank, 17 per cent of ICICI customers use the Internet for banking and 10 per cent of HDFC customers prefer it.

Services provided by Net Banking

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Queries

Check Balance See Statement Inquire about cheque status Ask for a Statement Ask for a Cheque Book Inquire about Fixed Deposit Inquire about TDS details See Demat Account Update profile

Transactions

Stop a Cheque Pay Bills Ask for a Demand Draft Transfer funds between your accounts Transfer funds to a third party Request for a new Fixed Deposit Shop Online Pay Bank Credit Card Dues

Advantages of Net Banking

It removes the traditional geographical barriers as it could reach out to customers of different countries/legal jurisdiction. This has raised the question of jurisdiction of law/supervisory system to which such transactions should be subjected.

It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges. Security of banking transactions, validity of electronic contract, customers' privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users.

It poses a strategic risk of loss of business to those banks who do not respond in time to this new technology, being the efficient and cost effective delivery.

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[36] To date, more banks have established an advertising presence on the Internet primarily in the form of informational or interactive web sitesthan have created transactional web sites. However, a number of Banks that do not yet offer transactional Internet banking services have indicated on their web sites that they will offer such banking activities in the future. Although Internet banks offer many of the same services as do traditional brick-and-mortar Banks, analysts view Internet banking as a means of retaining increasingly sophisticated customers, of developing a new customer base, and of capturing a greater share of depositor assets. A typical Internet bank site specifies the types of transactions offered and provides information about account security. * Availability of inquiry and transaction services around the clock; * worldwide connectivity; * Easy access to transaction data, both recent and historical; and * Direct customer control of international movement of funds without intermediation of financial institutions in customers jurisdiction. *it allows you to make instant payments of your electricity, telephone, gas and other bills. You can also give standing instructions to the bank to pay your recurring bills automatically.

Automated Teller Machine (ATM)

The first bank to introduce the ATM concept in India was the Hongkong and Shanghai Banking Corporation (HSBC). It was in the year 1987. Now, almost every commercial banks gives ATM facilities to its customers. The first bank to cross 1,000 marks in installing ATMs in India is ICICI. SBI is following the concept of 'ATMs in Quantity'. But Private Sector Banks have taken the lead. ICICI, UTI, HDFC and IDBI counts more than 50% of the total ATMs in India. Public Sector Banks are also taking the installation of ATMs seriously for Indian market. They are either setting up their own ATM centres or entering into tie-ups with other banks. The

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[37] Corporation Bank has the second largest network of ATMs amongst the Public Sector Banks in India.

'Swadhan' scheme:
The Indian banks have also come up with a 'Swadhan' scheme. Under this scheme, the banks can use each other's ATM at a cost, usually Rs. 35 extra from their customers. The main feature of 'Swadhan Card' are as follows:

No exchange fee charged to change an old ATM card for a Swadhan card. Rs. 3,000 fixed as the ceiling on withdrawal. Exception made for select customers who can withdraw up to Rs10,000. Still, this is lower than the average withdrawal of Rs15,000 by regular ATMs.

IBA gives banks the discretion to decide a higher maximum amount for withdrawal. Transactions conducted through any of the member banks appear on a bank statement, which is given only by your own bank.

All transactions conducted in any of the member banks appear on the bank statement, but only your own bank will provide this.

Note :- No overdraft facility is available on Swadhan cards.

How 'Swadhan Card' works:
All informations and transactions are routed among member institutions through a switch. The switch transmits the information and/or data to bank which has issued the card or to its processor, which on the other hand either approves or declines the transaction request and notifies the switch. The decision of the card-issuing bank's is then routed by the switch to the processor of the ATM, which completes the transaction. The accounts among members are settled and

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[38] account balances are transmitted at the end of the day to each member institution.

Cost of setting ATM center:

Approximately Rs.1mn it takes for the setting of an ATM center. Rs.1.2-1.4mn per annum is needed for its maintenance. To keep the cost in equilibrium position, there should be around 250300 transactions per day per ATM. To overcome or to reach the break-even point, the banks are always encouraging its customers to use the ATMs. Banks like HDFC and Citibank even charge penalty if a customer visits the branch. NCR India and HMA Die bold are the main two players in this market to set up ATMs in India. The market, according to them is whopping 100% and they are very optimistic to see 30,000 ATMs in India very soon.

Mobile Banking:
"The account that travels with you". This is needed in today's fast business environment with unending deadlines for fulfillment and loads of appointments to meed and meetings to attend. With mobile banking facilities, one can bank from anywhere, at anytime and in any condition or anyhow. The system is either through SMS or through WAP. (Check out for SMS Banking under different head) Mobile Banking is the hottest area of development in the banking sector and is expected to replace the credit/debit card system in future. In past two years, mobile banking users has increased three times if we compare the use of either debit card or credit card. Moveover 85-90% mobile users do not own credit cards. Mobile banking uses the same infrastructure like the ATM solution. But it is extremely easy and

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[39] inexpensive to implement. It reduces the cost of operation for bankers in comparison to the use of ATMs. Using compact HTML and WAP technologies, the following operations can be conducted through advanced mobile phones which can is further viewed on channels such as the Internet via the Channel Manager.

Bill payments Fund transfers Check balances Any many more which is also available in SMS Banking.

In countries like Korea, two SIM Card is used in mobile phones. One for the telephonic purpose and the other for banking. Bank account data is encrypted on a smart-card chip. About 3.3 million transactions were reported by Bank of Korea in 2004.

SMS Banking:
Businesses are in move. So is to be your money. You may have to thank the banks which are providing banking at the send-of-your-sms. The technology is at its highest level to move your money while you are on the move. If you are having non-WAP enabled mobile handset, you can use the facility of SMS services. The following operations can be easily used by the service provider:

Balance enquiry Last three transactions Cheque payment status Cheque book request Statement request Demat - Free Balance Holding Demat - Last two Transactions Bill Payment

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[40] The SMS facility brings peace of mind to customers and opens doors to many more technological possibilities and innovative services. It is very similar to how an ATM works. To use ATM, a card is necessary and to use SMS service, a mobile phone is needed. In both the cases, secret number is necessary to access. SMS banking is also very much safe. First, one authenticates the mobile number with the authentications key. Second, the customer uses secret Mobile Personal Iddentification Number (MPIN). A new concept has been developed by Bank of Punjab Ltd. They call it "Mobile Wallet". With the support of this technology, a customer can make payment and receive payment of account of buy/sell (merchants) through SMS. In this system, a buyer sends a message for buying and the bank in return sends a message confirming the purchase both to the merchant as well as to the buyer. Debit card number is the key field which is used for the authenticity of the customer.

The processes of the service are simplified as under:

Customer has to send "REG(one space)(Account Number)(one space)(Debit Card Number)" as an SMS to bank's mobile number 9810999992 for registration. For e.g. "REG 06SB11052122 5047531105000109109" Bank will confirm the registration with the return message.

After that customer will visit nearest branch to collect the service brochure and get it filled.

Registration will be a one time process.Once registered, customer would be able to buy things from any of the registered merchant of the bank.

The transaction will be validated online and immediately funds will be transferred from customer account to merchant account.

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Bank would send transaction confirmation as an message to both merchant and customer(buyer).

An SMS report will be sent to both merchant & buyer everyday stating the total number of transaction & total amount of transaction made during previous one day.

Note :- There is obviously a limit to the volume of transactions now. Generally with 3 invalid login attempts, SMS Banking services are locked. Immediately contact the branch for unlocking the services. In case one forgets the password, obtain a new password from the branch. To log out, choose the "Log out" option in the handset and SMS Banking session

Credit Card:

Credit cards in India is gaining ground. A number of banks in India are encouraging people to use credit card. The concept of credit card was used in 1950 with the launch of charge cards in USA by Diners Club and American Express. Credit card however became more popular with use of magnetic strip in 1970. Credit card in India became popular with the introduction of foreign banks in the country. Credit cards are financial instruments, which can be used more than once to borrow money or buy products and services on credit. Basically banks, retail stores and other businesses issue these.

Major Banks issuing Credit Card in India:

State Bank of India credit card (SBI credit card) Bank of Baroda credit card or BOB credit card ICICI credit card HDFC credit card

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IDBI credit card ABN AMRO credit card Standard Chartered credit card HSBC credit card Citibank Credit Card

Precautions taken after receiving credit card:

To Avoid:

Bending the Card. Exposure to electronic devices and gadgets. Direct exposure to sunlight. Be cautious about disclosing your account number over the phone unless you know you're dealing with a reputable company.

Never put your account number on the outside of an envelope or on a postcard. Draw a line through blank spaces on charge or debit slips above the total so the amount cannot be changed.

Don't sign a blank charge or debit slip. Tear up carbons and save your receipts to check against your monthly statements. Cut up old cards - cutting through the account number - before disposing of them. Open monthly statements promptly and compare them with your receipts. Report mistakes or discrepancies as soon as possible to the special address listed on your statement for inquiries. Under the FCBA (credit cards) and the EFTA (ATM or debit cards), the card issuer must investigate errors reported to them within 60 days of the date your statement was mailed to you.

Keep a record - in a safe place separate from your cards - of your account numbers, expiration dates, and the telephone numbers of each card issuer so you can report a loss quickly.

Carry only those cards that you anticipate you'll need.

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To Do:

Please sign on the signature panel on the reverse of the Card immediately with a nonerasable ball-point pen (preferably in black ink). This will ensure that the benefits of membership are yours and yours alone.

Keep the Card in a prominent place in your wallet. You will notice if it is missing.

Reasons credit card being rejected at retail outlet:

One may have exceeded the borrowing limit or defaulted (constantly) on minimum payment due.

The Card is hotlisted. The card has crossed its expiration date. Non-receipt of dues of one-card blocks future transactions on any other card(s) held of the same card-issuing bank.

The magnetic stripe on the reverse of the card is damaged i.e. has been scratched or exposed to continuous heat/direct sunlight or magnetic field-like card kept near a TV set / other electronic appliances.

Systems or technology failures have in rare instances also led to non acceptance of cards when swiped through an Electronic Terminal.

Global player in credit card market

MasterCard:
Master Card is a product of Master Card International and along with VISA are distributed by

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[44] financial institutions around the world. Cardholders borrow money against a line of credit and pay it back with interest if the balance is carried over from month to month. Its products are issued by 23,000 financial institutions in 220 countries and territories. In 1998, it had almost 700 million cards in circulation, whose users spent $650 billion in more than 16.2 million locations.

VISA Card:
VISA cards is a product of VISA USA and along with MasterCard is distributed by financial institutions around the world. A VISA cardholder borrows money against a credit line and repays the money with interest if the balance is carried over from month to month in a revolving line of credit. Nearly 600 million cards carry one of the VISA brands and more than 14 million locations accept VISA cards.

American Express:
The world's favorite card is American Express Credit Card. More than 57 million cards are in circulation and growing and it is still growing further. Around US $ 123 billion was spent last year through American Express Cards and it is poised to be the world's No. 1 card in the near future. In a regressive US economy last year, the total amount spent on American Express cards rose by 4 percent. American Express cards are very popular in the U.S., Canada, Europe and Asia and are used widely in the retail and everyday expenses segment.

Diners Club International:

Diners Club is the world's No. 1 Charge Card. Diners Club cardholders reside all over the world and the Diners Card is a alltime favourite for corporates. There are more than 8 million Diners Club cardholders. They are affluent and are frequent travelers in premier businesses and institutions, including Fortune 500 companies and leading global corporations.

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JCB Cards:
The JCB Card has a merchant network of 10.93 million in approximately 189 countries. It is supported by over 320 financial institutions worldwide and serves more than 48 million cardholders in eighteen countries world wide. The JCB philosophy of "identify the customer's needs and please the customer with Service from the Heart" is paying rich dividends as their customers spend US $ 43 billion annually on their JCB cards.

Grace / Interest Free Period:

The number of days you have on a card before a card issuer starts charging you interest is called grace period. Usually this period is the number of days between the statement date and the due date of payment. Grace periods on credit cards are usually 2-3 weeks. However, there is likely to be no grace for balances carried forward from previous month and fresh purchases thereafter if any.

Debit Card
Debit cards, also known as check cards look like credit cards or ATM cards (automated teller machine card). It operate like cash or a personal check. Debit cards are different from credit cards. Credit card is a way to "pay later," whereas debit card is a way to "pay now." When we use a debit card, our money is quickly deducted from the bank account. Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline stations, and restaurants. Its an alternative to carrying a checkbook or cash. With debit card, we use our own money and not the issuer's money. In India almost all the banks issue debit card to its account holders.

Banking service for NRIs:

Non Resident Indians or NRIs can open accounts in almost all Indian banks. The three types of accounts that NRIs can open are:

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[46] o Non-Resident (Ordinary) Account - NRO A/c o Non-Resident (External) Rupee Account - NRE A/c o Non-Resident (Foreign Currency) Account - FCNR A/c

Day-to-day:

Free Private Banking no subscription for enjoying the benefits of everyday private banking Overdraft subject to eligibility, helping you to plan your finances Private Banking chequebook, perfect when cash or cards wont do Monthly statements get a complete list of transactions and your balance by post or online. You can also print a mini-statement from any NatWest cash machine

Payments and withdrawals:

Private Banking debit card is the easy way to pay Private Banking credit card Withdraw your money at almost every UK cash machine

Financial Advisory:
Whether you're planning for your retirement or looking to cultivate your assets, we have the resources to identify solutions to help you pursue those plans.

Retirement Planning Investment Planning College Planning Insurance Planning

Private Client Services:

Today and through the years ahead, we will work with high net worth individuals and institutions to help build, preserve and transition wealth.

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Private Banking Concierge banking

Private Trust Trusts and estate planning

Private Investment Counsel Portfolio management

Private Financial Consultants* Personalized investment advice

Institutional Trust:
Our team of industry-certified professionals have the expertise to meet the unique needs of financial, corporate and non-profit organizations, school districts and government entities.

Trustee Services Retirement Plan Services

EXPECTATION FROM MODERN BANKING INDUSTRY:

Most 15 years since the Indian Banking sector was liberalized and paradigm shift is all happened in the Indian Banking services. All banks have either totally implemented 'core banking' or halfway through.

Based on extensive survey across the various parts of the country, regarding expectations from Indian Banking Industry , certain opinions were derived

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security issues around Internet banking, better customer service, electronic clearing system (same day settlement)

Safe Internet Banking:

The results summarizes general and detailed customer opinions and expectations regarding Internet banking security issues. The banking services sectors needed actionable and relevant information to develop, manage, and market the Internet services they provide. The information technology is becoming an important factor in the future development of financial services industry and specially banking industry in India. Banks are faced with a number of important questions, for example, how to take full advantage of new technology opportunities, how e developments change the ways customers interact with the financial services provider etc. If we go through the data, we will find that India has an internet penetration of 3.6% only which requires attention of Indian banks. We have some of our limitations which need to be reviewed and necessary strategy is to be sorted out to make the facility more popular and more reachable among the general masses.

Some of the limitations are

Higher rural population Adoption of technology by banks Lack of long term planning Lack of awareness among potential users

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CUSTOMER SERVICES
Banking Industry needs to maintain profitable customer relationships in order to build the superior brand value by delivering greater customer satisfaction and loyalty. Customers in emerging market like India have increasing service demands, therefore, banks should adopt innovative and differentiate ways to tackle their customers. It is imperative to charter a vision of the future of CRM, involving marketing, sales and services, to help banks refine their customer experience delivery in an effort to attract and retain a banks most-valued customers. Customer services have become increasingly important and consumers are no longer driven by price. But eventually banks across the globe are failing to keep up the expectations. The gap is because the banks are not delivering what customer expectations are. Customer switch to different financial provider in search of better customer satisfaction. Banks need to take up the issue as a serious concern. Though banks are exceeding the expectations in terms of reforming technology based services but the result is not in tune with the responses perceived by the client. This throws up a challenge to banks. Technology alone cannot give a sustainable competitive advantage for the banks.Beyond a point, IT along with 'personal touch' will be necessary for the banks to retain existing clients and to attract new ones. Banks have to incorporate this in their operational strategy. We should never forget that a very high percentage in rural areas is capable to handle new technology if presented to them in their mother tongue. We cannot ignore the fact that the one way of implementation goes through rural India.

E-Clearing system for same day settlement of fund :

A new system of cheque clearing to be introduced by banks, where scanned copies of cheques are transmitted by collecting banks to drawee banks instead of sending the cheques physically for clearing. To give shape to its vision, the RBI envisaged in its document that the Indian Retail Clearing function, in its entirely, could be entrusted to a separate legal entity at national level and

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[50] Reserve Bank can provide settlement services for all the clearing system, besides being the regulator and supervisor of the payment and settlement system.To achieve this objective, the RBI requested the Indian Banks Association to set up, in consultation with the member banks, a single umbrella organization for retail payments system in India on a robust technology platform having regard to optimization of resource use through consolidation of existing infrastructure and building up of new infrastructure to enable national reach in a seamless manner and provide service of the highest quality to the banks customers at affordable optimal price. To conclude, the various areas where the banking industry needs to user in advanced technological are as follows: (a) To develop a robust retail payment system with security. (b) To evolve standards and procedures as are necessary to promote efficiency, safety, soundness, security and cost effectiveness of the payment system and settlement processes. (c) Ensure constant upgradation to meet the best international standards. (d) To focus on customer-centric initiative with emphasis on product innovations and on high quality service levels. (e) To identify and control all risks (settlement, credit, liquidity, operational and systemic) and preserve the integrity of the system. (f) To work with RBI towards national clearing facility and national settlement of funds including introduction of new mechanism for the same. (g) To create the necessary environment for moving towards electronic based clearing system and reduce dependence on paper based clearing. (h) To extend its services in an inclusive manner covering rural and remote areas so that the benefits are not denied to any sections of the society.

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FUTURE PLANNING
1).UNDERSTANDING THE ORGANISATION CULTURE / STRUCTURE:
While studying on project we understand about the culture of organization & how to keep them maintain.We get the essence of culture

Individual Initiative:

The degree of responsibility , freedom , and independence that individual have.

Risk Tolerence:

The degree to which employees are encouraged to be aggressive , innovative , and risk-seeking.

Direction:

The degree to which the organization creates clear objectives and performance expectations.

Control:

The number of rules & regulations , and the amount of direct supervision that is used to oversee and control employee behaviour.

Communication Patterns:

The degree to which organizational communications are restricted to the formal hierarchy of authority.

Management Support:

The degree to which managers provide clear communication , assistance and support to their subordinates.

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2).PROVIDING QUALITY SERVICES:

The focus of study is on providing quality services to the customers , which make sure them about their investment of money & their security.

3).MAKING AWARE ABOUT THE PRODUCTS:

The study focused on the making of awaring about the products to the customers by establishing their values & vision.

4).SUPERVISION IN FINANCIAL STABILITY:

Study help us to maintain the financial stability of banking keeps us on regular supervision on it . While studying , we keep regular check on the market position of the different banks.

5).RAISING THE SHARE IN THE MARKET:

Studys importance lies in the fact of knowing that how we raise the shares of AXIS BANK in the market.

6).UNDERSTANDING THE CONCEPT OF BANKING:

While working on this project , we came to know what exactly bank is & what is happening there . This make theconcept of banking clear to us.

7).IMPLICATION OF THE RECENT FINANCIAL CRISIS:

The study makes us to know about the various implications of the financial crisis on banking.

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Need for study

To make customers aware of all services of axis bank. To create positive image among the customers so that they will prefer axis bank over any other private and govt bank.

To find out the how customers perceive services provided by bank.

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LITERATURE REVIEW

Uppal & Chawla ,(2009) study about modern banking services. An Empirical Study customer perceptions about modern banking services highlighted -

about the customer perceptions about modern banking services in India. The research methodology included survey of 1200 respondents in Ludhiana and respondents included public , private and foreign bank sector .The present study investigated the customer perceptions regarding the necessity of e-banking services , bank frauds , future of ebanking , preferences of banking customers regarding banks , comparative study of banking services in various groups of banks, preferences regarding the use of e-channels and the problems faced by e-banking customers .The study depicted that customers of all bank groups are interested in e-banking services but at the same they face problems like inadequate knowledge , poor knowledge , lack of infrastructure and difficulty they face in opening an account .The paper thus framed suitable strategies like customer education, seminars, proper meetings , proper installation of ATM machines ,proper networking and infrastructure facilities etc .

El-Sherbini et al. (2007) investigated through his study on,Bank customer Behavior perspectives towards internet banking services in Kuwait the customers perspectives

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[58] of internet banking, their perceived importance for it, usage patterns and problems rising on its utilization. The paper discussed the strategic implications of the research findings. Empirical data were gathered from bank customers in Kuwait to achieve the research objectives. All bank customers in Kuwait were considered as population of research interest. The results showed the perceived importance of internet banking services by customers, current and potential use of IB services in Kuwait and problems perceived by bank customers in using IB. The research paper main hypothesis tested that top five services that were considered relative important in Kuwait banks were "Review account balance", "Obtain detailed transactions histories, "Open accounts", Pay bills" and Transfer funds between own accounts.

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RESEARCH OBJECTIVE

The project has very wide scope and it is based on the study of peoples perception towards the new era banking and their facilities which are being rendered to the local people of sultanpur region.

PRIMARY OBJECTIVES OF THE STUDY

The objective of the project is to find customer perception towards modern banking services.

SECONDARY OBJECTIVES OF THE STUDY

To find out the customers satisfaction. Strength and Weaknesses of Axis Bank.

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RESEARCH PROBLEM

This research has been done to understand the perception of sultanpur customers of axis bank that are they interested in the modern banking services. What are their liking and disliking towards the bank. Are they aware of modern banking and taking the facilities. The various modern banking which axis bank is providing till what extent these customers are using and taking their benefits.

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Research methodology
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Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically. It is necessary for the researcher to know not only the research methods / techniques but also the methodology or it is necessary for the researcher to design his methodology for his problem as the same may differ from problem to problem.

TYPE OF RESEARCH
DESCRIPTIVE RESEARCH

It is understood, that descriptive research design lays the foundation of a good research design which would satisfy the research objectives. For my report I have stressed upon descriptive research and is being carried out by personal survey.

UNIVERSE
Universe is also called population, which refers to the entire group of item which a researcher wants to study. For my study SULTANPUR city was universe for my survey. SAMPLING UNIT Customers of the axis bank who were having their accounts in the bank.

SAMPLE SIZE
Sample size refers to number of people to be selected from the universe to study the pattern of behaviour of whole universe. And for this study I surveyed 300 people in different parts of sultanpur city.

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SAMPLING TECHNIQUE
I used CONVENIENCE SAMPLING. It is NON-PROBABILITY sampling method. It means selecting sample units in just hit and miss fashion. That is taking responses of people whom we happen to meet. This sampling also means selecting whatever respondent is conveniently available.

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RESEARCH DESIGN

Research design: This research focuses on perception of people on modern banking and smooth functioning of the organization.. Types & Sources of data:

Secondary data: -

C.R.Kothari Websites

Primary data: -

Response from senior managers and employees collected through survey. Response from customers collected through survey Research Instruments used: Interview Survey (Designed by self) Questionnaire

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COLLECTION OF DATA
Data can be of two types1).Primary data 2).Secondary data For this study, I select PRIMARY DATA through Questionnaire technique. Primary data can be collected either through experiment or through survey.In the case of survey, data can be collected by any one or more of the following ways:

(a).By Observation:
We collect information by way of our own observation , without interviewing the respondents. The information obtained relates to what is currently happening and is not complicated by either the past behaviour or future intentions or attitudes of respondents.

(b).Through Personal Interview:

We collect the primary data through personal interview of the respondents. This method is usually carried out in a structured way where output depends upon the ability of the interviewer to a large extent.

(c).Through Telephone Interview:

We collect information by contacting the respondents on telephone itself. We call them and take the answers of the question which are asked in the Questionnaire.

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DATA ANALYSIS & INTERPRETATION

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RESEARCH AND FINDING

Our research reveals:

*Sample size:
The sample size of 300 customers have been chosen by making them filling the questionnaire.

According to Income:

Since it is an small city so the no of accounts in the axis bank is limited. Survey reveals that involvement of low income group customers towards modern banking is high. Henceforth, the maximum no of accounts in bank are of youths and they are aware of modern banking.

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*Profession:

This is the pie chart below which gives the statistical data which gives the percentage of the accounts as per the profession.
Out of 300 customers, 65% of young working generation, 25% of business man and 10% are the others who are involved in modern banking.

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*Age:
80% of the customers having age between 20-40 yrs go for the modern banking. It is because they are the person of market and theyare having their salary accounts mainly in private banks so they are aware of modern banking.

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Percentage of accounts customers are having along with other banks :

This is the statistical data of the customers who are having the accounts in the GOVT BANKS, OTHER PRIVATE BANKS, along with AXIS BANK.

In all 300 customers there are 80% customers are having accounts in government banks and it was a majority section.along with this 30% were having in private banks and 25% were having in others bank.

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Types of services which axis bank is rendering :

In all 300 customers this graph shows the statistical data that 65% are having saving bank account,20% are having current account,10% are using the service of credit card and rest 5% are using the rest services of axis bank.

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Percentage of facilities & services which customers are taking:

This is the statistical data which tells about the modern banking facilities which axis bank is providing and customers are rendering like. All the customers are having ATM cards and also having the facility of mobile banking, 25% of customers are also enjoying the net banking facility. the 10% and rest 5% are enjoying the credit cards and other facilities.

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Satisfaction Level
Survey reveals that 70% customers are satisfied from private banking services And remaining 30% are satisfied from govt bank..Besides this,most of the customers prefer govt bank due to other reasons like: Since they are existing from very long. And customers are having good relations with govt bank since then.

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SWOT ANALYSIS

The axis bank is one of the best service rendering bank of private sector. Sultanpur branch is having an one of the best quality manager named mr.amit kumar and employees. 1:Brand name. 2:Support of various promoters. 3:High level of services. 4:Good knowledge of Indian market.

WEAKNESS
1:Not having good image. 2:Lack of trust on private banks. 3:Not able to position correctly.

OPPORTUNITIES
1:Technology. 2:Growing Indian banking sector. 3:People becoming more service oriented. 4:Dissatisfied customers. 5:Rural market.

THREATS
1:Government banks. 2:Future market trends.

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SUGGESTIONS
Major number of people knows but still large number of investors is not investing in it. So company should focus on advertisement to induce more people to invest. S 1:Company should launch policy with enough transperancy and profitability. 2:Some promotional activity should be organized for getting more sales. 3:Strong In-house research & market Intelligence. 4:Must capture rural markets. 5:Capture dissatisfied customers of other banks. 6:Employees must be humble towards their customers.

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CONCLUSION
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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.

It is increasingly evident that the economy offers opportunities but no security! Therefore, the future will belong to those who develop good internal controls, checks and balances and a sound market strategy. Business Growth, Cost Efficiency and Evolution are therefore regarded as key drivers which will have to be addressed.

Survey reveals that the Services provided by the private banks are more satisfactory than the other banks. As per the existing customers of axis bank, private bank services are expensive , but they serve best. It also reveals that modern banking is more reliable than the traditional banking . Apart from this, survey also reveals that SULTANPUR is small city and the no of accounts are limited and of them the maximum belongs to youth working segment who are between the age of 20-40 yrs and the rest belong to the businessman and other group people. Besides this ,customers prefer govt. banks over other including axis bank.

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BIBLIOGRAPHY

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BOOKSResearch Methodology C.R. Kothari (2nd edition,Wishwa prakashan)

WEBSITESwww.Axis bank. Com www.thehindubusinessline.com www.scribd.com

OTHERS*Suggestions of banks staffs *Seniors & friends view

QUESTIONNAIRE

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(1).Customer Profilea).Customers Nameb).Customers Agec).Annual Incomed).Family Dependante).Source of Income(i).Service (ii).Business (iii).Self dependant f). Qualificationg). Marital Statush). Gender-

(2). Whether you preferred/availing services from

a). Nationalized b). Private c). Both

(3).Accounts as per
a) Income

b) c)

Age

Profession

(4).Your basic services you avail

a).SB b).CA c).credit card d).any other- - - - -

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(5).Are you satisfied from the present services of your existing banker?
- Yes/No -If yes, why?- - - - -If no, why?- - - - -

(6). Which service you are availing?

a).ATM b).Credit card c).Internet banking d).Mobile banking e).Any other - - - - - -

(7).Your Suggestion- - - - -

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