SUMMER TRAINING REPORT ON

EVOLVEMENT OF AXIS BANK IN MODERN SCENARIO COMPLETED IN AXIS BANK

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT OF MASTER OF BUSINESS ADMINISTRATION

GURU GOVIND SINGH INDRAPRASTHA UNIVERSITY, DELHI

TRAINING SUPERVISOR Ms.Sulekha Munsi

SUBMITTED BY: ROMITA 114612039510

Batch No: - 2010-2012

Submitted to
Banarsidas Chandiwala Institute of Professional Studies Dwarka, New Delhi (affiliate to Guru Gobind Singh Indraprastha University)

DECLARATION
I affiliated to GURU GOBIND SINGH UNIVERSITY, hereby declare that the project report titledEVOLVEMETN OF AXIS BANK IN MODERN SCENARIO is an original work submitted by me to Banarsidas Chandiwala Institute of Professional Studies, Dwarka is a bonafide work undertaken during the period from 08/06/2011 to 19/07/2011 by me and same has not been submitted to any other institute for the reward of any other degree. The suggestions as approved by the faculty were duly incorporated

(Signature of the Student) Name: Romita Ranaut Enroll. No.: 11461203910

Date: /

/ 2011

BONAFIDE CERTIFICATE
This is to certify that as per best of my belief the project entitled Evolvement of axis bank in modern scenario is the bonafide research work carried out by Romita student of M.B.A., BCIPS, Dwarka, New Delhi, in partial fulfillment of the requirements for the Final Research Project of the Degree of Master of Business Administration. She has worked under my guidance.

Name: Project Guide Date: / / 2011

Name: Dr. Satish Taneja Director Date: / / 2011

CONTENTS
Acknowledgement Executive Summary i ii

CHAPTER 1: INTRODUCTION 1.1 Purpose of the study 1.2 Research Objectives of the study 1.3 Literature Review 1.4 Research Methodology of the study 1.4.1 Research Design 1.4.2 Data Collection 1.4.3 Limitation CHAPTER -2 : COMPANY PROFILE About the Organization CHAPTER -3 Findings and Analysis CHAPTER -4 Conclusion CHAPTER -5 SWOT Analysis CHAPTER - 6 Suggestions and Recommendations

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Bibliography

ACKNOWLEDGEMENT
I wish to thank a number of people who provided constructive criticism, support and helped me during the processing of the project. This project was made possible due to the combined efforts under taken by and my Project Coordinator who supported me while working on this project. I am thankful to the rest of the staff the college, who rendered every possible help they could by helping me refer the right sources for data collection for the project. I am also thankful to my friends and users who operated my project and provided me with valuable and prudent suggestions that helped me to improve and enhance the usability of the project.

EXECUTIVE SUMMARY
The traditional function of banking is limited to acceptance of Deposits and providing the credit in the market. Todays banking is known as Innovative banking. The coming together of information technology, communication and entertainment (ICE) has given rise to new innovations in the product design and their delivery in the banking and finance industry. Driven by new technologies, changing customer preferences, and increased competition, banks have taken to heavy investments in new distribution channels like advance automated teller machines, telephone systems, and on-line banking, one of the reasons for internet applications not to have picked up as expected so far have been the concerns about the security and lack of the legal framework related to such transactions. This hurdle has been reduced to a large extent in the recent past with framing of laws enabling financial transactions through electronic media. The most of the private and nationalized Indian banks have entered in the technology age and providing various types of electronic products and services to their customer. The objective of this project is to analysis the implementation of technology in Indian banks and understanding the customers perception. This study is based on the survey and the data which is collected through the issue of questionnaire to the banks customer. The results show that customers are satisfied with technology oriented banks products and services. The empirical findings not only determine the different parameters also provide guidelines to bankers to focus on the parameters on which they need to improve and spread the awareness of electronic banking products and services to each and every section of the society. In the successive chapters we will be talking about organization. .

We will also be discussing about the various products and services provided by the AXIS BANK LTD.

CHAPTER-1

INTRODUCTION ABOUT BANKING

OBJECTIVES:
The Indian Banking system has been operating successfully over the last two centuries. Several major banks in India are either offering e-banking services or planning to do so in the near future. With the growing Internet awareness among customers, increase in role of banks in e-business and growing reach of the internet, e banking would become an important part of the Indian banking sector in the years to come. The use of most modern and advance methods of equipment in banking industries is called E-BANKING. E-banking has given an opportunity for banks to find solutions to management problems like saving time, money and energy, reducing/minimizing paper works, abolition of waiting in queues, lack of communication, and lack of efficiency. The E-Banking is changing the banking industry and is having the major effects on banking relationships. E-banking involves the use of electronic devices for delivery of banking products and services. In other words a successful e-banking solution offers the following e-banking products and services: ATM (Automated Teller Machine), Cards- Credit card/Debit cards/Smart card, Mobile banking, Phone banking, Internet/online banking, Electronic fund system (EFT), Electronic clearing services (ECS), Electronic data interchange (EDI), D-mat account, Digital signature, Society for world wide interbank financial tele communication (SWIFT), Corporate Banking Terminals, Core banking solutions (CBS) etc. E-Banking as a medium of delivery of banking services and as a strategic tool for business development, has gained wide acceptance international and is fast catching up in India with more and more banking entering the day. The objective of the project is to make the mass market aware about the introduction of new technology in banking and getting them an opportunity to avail it and know their perception about such revolution change in banking..

Further more objectives of study are-: To focus on Modernization & Diversification in banking sector. To study the nature of product & services of AXIS BANK.

To examine their Financial & Market status. RESEARCH METHODOLOGY:

Primary data used with the help of questionnaire Secondary Data used with the help of internet, newspapers, and annual reports of AXIS BANK

LIMITATION OF STUDY:
Due to time, the project shows limited scope. The topic covers condense data.

Literature Review
INRODUCTION
In the beginning of 90s, there were so many deficiencies were prevailing in the Indian economy, particularly in the financial sector and also in the banking sector. The major deficiencies prevailing at the time of early 90s were productivity and efficiency of the system has suffered, its profitability has been eroded, several public sector banks and financial institutions have become weak financially, some public sector banks have been incurring losses year after year, their customer service was poor, their work technology was outdated and they were unable to meet the challenges of a competitive environment. Keeping in mind all the above said distortions in the economic, financial and banking sectors, the government of India and the RBI thought it was necessary to introduce reforms in the financial and baking sector also, so as to promote rapid economic growth and development with stability through the process of globalization, liberalization and privatization in the financial system so that the financial system becomes more competitive and gets integrated with the world economy through internationalizations of financial markets in the world.

Narasimham Committee Recommendations for Banking Sector Reforms

The government of India, under the chairmanship of Sh. M. Narasimham, an Ex-Governor of RBI, appointed the Narasimham Committee-I (NC-I) in April 1991. The committee examined all the aspects relating to the structural organization, functions and procedures of financial system and submitted its report on November 16, 1991. The NC-I had proposed wide ranging reforms for improving the financial viability of the banks, increasing their autonomy from government directions, restructuring unviable banks, allowing a greater entry of the private sector in banking, liberalizing the capital market, further improving the operational flexibility and competition among the financial institutions and setting up of proper supervisory system.

First Phase of Banking Sector Reforms(1991)

A number of reform initiations have been taken to improve or minimize the distortions impinging upon the efficient and profitable functioning of banks, especially reduction in SLR & CRR, transparent guidelines or norms for entry and exit of private sector banks, public sector banks allowed to direct access to capital markets, deregulation of interest rates, branch licensing policy has been liberalized, setting up of Debt Recovery Tribunals, asset classification and provisioning, income recognition and Asset Reconstruction Fund (ARF). These and other measures that have been taken would help the highly regulated and directed banking system to transform itself into one characterized by openness, competition, prudential and supervisory discipline.

Second Phase of Banking Sector Reforms (1998)

The recommendations of the NC-I in 1991 provided the blueprint for the first generation reforms of the financial sector. The period 1992-97 witnessed the laying of foundations for reforms in the banking system. Cataclysmic changes were taking place in the world economy, coinciding with the movement towards global integration of financial services. Against such backdrop, the committee NC-II, appointed for the said purpose generated its report in 1998, provided the roadmap for the second-generation reform process. The NC-II examined the second-generation of reforms in terms of three broad interrelated issues: (i) Action that should be taken to strengthen the foundation of the banking system (ii) Strengthening procedures, upgrading technology and HRD and (iii) Structural changes in the system

Information Technology and Bank Transformation

The second banking sector reforms gave much importance to the modernization and technology up gradation. The IT Act, 1999 started the speedy process of e-banking. E-Banking: Delivery of banks services to a customer at his office or home by using electronic technology can be termed as e-banking. The quality, range and price of these e-

services decide a banks competitive position in the industry. The virtual financial services can be largely categorized as follows:

Automated Teller Machines:

- Cash withdrawals - Details of most recent balance of account - Mini-statement - Statement ordering facility - Deposit facility - Payments to third parties

EFTPoS : EFTPoS card used to initiate transactions:

- Authorization and transaction capture processes take place electronically. - Transaction confirmed manually. - Funds not debited electronically.

Remote Banking Services:

- Balance enquiry - Statement ordering - Funds transfer (payment) to third parties - Funds transfer between customers different accounts - Order travelers cheques and other financial instruments.

Services Not Available Through Remote Banking:

- Cash withdrawal - Cash/ cherub deposit - Sale of the more complex types of financial services such as life insurance mortgages and (pensions).

Smart Cards:
(i) Stored value cards (ii) As a replacement for all types of magnetic stripes cards like ATM Cards, Debit/Credit Cards, Charge Cards etc. - One smart card to carry out all these functions - One smart card can contain the functionality of several different types of cards issued by different banks while running different types of networks. - Smart card a truly powerful financial token, giving user access - STM - Debit facility - Charge facilities - Credit facilities - Electronic purse facilities at national and international level.

Internet Banking:
The latest wave in IT is Internet banking. It is becoming more obvious that the Internet has unleashed a revolution that is affecting every sphere of life. Internet is an interconnection of computer communication networks spanning the entire globe, crossing all geographical boundaries. Touching lifestyles in every sphere the Net has redefined methods of communication, work, study, education interaction, health, trade and commerce. The Net is changing everything, from the way we conduct commerce, to the way we distribute information. Being an interactive two-way medium, the Net, through innumerable websites, enables participation by individual in B2B and B2C commerce, visits to shopping malls, books-stores, entertainment sides, and so on cyberspace.

Bank Transformation
1. The term transformation in Indian Banking Industry relates to intermediately stage when the industry is passing from the earlier social banking era to the newly conceived technology based customer - centric and competitive banking. The activities of banks have grown in multi-directional as well as in multi-dimensional manners.

2. During transformation, all known parameters of the earlier regime continuously change.

3. The current transformation process in the Indian Banking has many aspects. They pertain to: (i) Capital Restructuring (ii) Financial Re-engineering (iii) Information Technology (iv) Human Resource Development

DEFINITION OF BANKING
The Banking Regulation Act, 1949 defines the term Banking as accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise [Section 5 (b)]. A banking company must perform two essential functions, viz., (a) accepting of deposits, and (b) lending or investing the same. If the purpose of acceptance of deposits is not to lend or invest, the business will not be called banking business. Accordingly, any company which is engaged in the manufacture of goods or carries on any trade and which accepts deposits of money from the public merely for the purpose of financing its business are not a banking company. The phrase deposits of money from the public is quite significant. The banker accepts deposits of money and not of anything else. The word public implies that a banker accepts deposits of money from any one who offers his/her money for such purpose. The banker, however, can refuse to open an account in the name of a person who is considered as an undesirable person, e.g., a thief, a robber, etc. Acceptance of deposits should be the major business of a banker. The definition also specifies the time and mode of withdrawal of the deposits. The deposited money should be repayable to the depositor on demand made by the latter or according to the agreement reached between the two parties. The essential feature of banking business is that the banker does not refund the money on his own accord, even if the period for which it was deposited expires. The depositor must make a demand for the same. The Act also specifies that the withdrawal should be effected through an order, cheque, and draft or otherwise. It implies that the demand should be made in a proper manner and through an instrument in writing and not merely by verbal order or a telephonic message. The underlying principle of the business of banking is that the resources mobilised through the acceptance of deposits must constitute the main stream of funds which are to

be utilized for lending or investment purpose. The banker is, thus, an intermediary and deals with the money belonging to the public. Section 7 of the Banking Regulation Act, 1949 makes it essential for every company carrying on the business of banking in India to use as part of its name at least one of the word- bank, banker, banking or banking company.

EVOLUTION OF BANKS IN INDIA

Ancient Hindu scriptures provide enough evidence of the existence of money lending business in India. Mahajans, Shroff, Sahukars, etc. were enjoyed in banking business. In the beginning of the 18th century, the East India Company set up a few commercial banks on moderns lines. In 1770, first Indian bank known as the Bank of Hindustan was started and was closed down twenty years later. Later, the East India Company started three Presidency banks with Government participation. These were: the Bank of Calcutta (1806), the Bank of Bombay (1840) and the Bank of Madras (1843). These banks had the financial participation by the Government also. During the 18th century, some other banks were also opened by Agency Houses in Madras and Calcutta. All these banks failed. Since all the banks emerged due to Agency Houses failed, the need of banking regulation in India was seriously felt. As a result, Companies Act, 1833 was brought into force. The impact of the Agency Houses got slowly reduced. Allahabad Bank came into existence in 1865 and Alliance Bank of Simla in 1875. The first purely Indian joint stock bank known as the Oudh Commercial Bank was set up in 1880 and the Punjab National Bank was launched in 1894. The Swadeshi movement in the country in 1906 encouraged the Indian entrepreneurs to start many new banks. There were as many as 648 commercial banks in India by the end of 1947. As many as 161 banks failed in quick succession during 1913-1914 and the peoples faith in the baking system was shaken. Thus, there was a great need of an institution to control and regulate banking in the country. As a result, the Reserve Bank of India was set up in 1935 for regulating the banks in the country and to act as a banker to the Government. In 1923, the three Presidency banks were amalgamated into Imperial Bank of India. This bank played an important role in the economy of the country. After, independence, it was nationalised in 1955 and renamed as the State Bank of India. The State Bank of India opened a large number of branches in rural and semi-urban areas.

BANKING AFTER INDEPENDENCE

When the country attained independence in 1947, there were 648 commercial banks with 4,819 branches in India. Because of frequent failure of banks in the country, the Government of India decided to regulate and reform the banking system. The Reserve Bank of India was nationalised in 1949 and the Banking Companies Act was passed in the same year. The name of this Act was later changed to Banking Regulation Act in 1965. Enactment of the Banking Companies Act was an important landmark for the smooth progress of commercial banks in the country. State Bank of India was created by nationalisation of the Imperial Bank of India in 1955. The State Bank of India has opened a large number of branches in rural and semiurban areas and has launched several schemes for the farmers, artisans and small scale units. A scheme of Social Control on banks was enforced through statutory measures with effect from 1st February, 1969. The banking industry saw a revolution after 14 major commercial banks were nationalised in June, 1969. More than 90% of the bank deposits came under the control of the Government. Preference was given to rural areas while opening branches. Targets of lending were also fixed for agriculture, artisans, unemployed youth, small scale units, etc. Regional Rural Banks scheme was launched on 2nd October, 1975. Six more leading commercial banks were nationalised in 1980. As a result of the recommendations of Sivaraman Committee, Agricultural Credit Department, Rural Planning and Credit Cell and Agricultural Refinance and Development Corporation were combined together to set up National Bank for Agriculture and Rural Development (NABARD) in July 1982. Later, the Export and Import Bank of India (Exim Bank) and the National Housing Bank were set up in 1948 and 1988 respectively.

INDIAN BANKING SYSTEM

The Indian banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories, non-scheduled banks and scheduled banks. Scheduled banks comprise commercial banks and the co-operative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the State Bank of India and its group banks, regional rural banks and private sector banks (the old / new domestic and foreign). These banks have over 67,000 branches spread across the country. The Indian banking industry is a mix of the public sector, private sector and foreign banks. The private sector banks are again spilt into old banks and new banks. Reserve bank of India (Controlling Authority)

Development Financial institutions

Banks

IFCI IDBI ICICI NABARD NHB Commercial operative Banks

IRBI

EXIM Bank

ISIDBI CoBanks

Regional Rural Banks

Land Development Banks

Public Sector Banks

Private Sector Banks

SBI Groups Banks

Nationalized Banks

Indian Banks

Foreign

CURRENT SCENARIO

The industry is currently in a transition. On the one hand, the Public Sector Bank`s, which are the mainstay of the Indian Banking System are in the process of shedding their flab in terms of excessive manpower, excessive non Performing Assets (NPA`S) and excessive governmental, while on the other hand the private sector banks are consolidation themselves through mergers and acquisitions. The private players however cannot match the Public Banker`s great reach great size and access to low cost deposits. Therefore one of the means for them to combat the Private Sector Bank`s has been through the merger and acquisition (M & A) route. Over the last two years, the industry has witnessed several such instances. Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena, while the Public Sector Banks are providing safety to their money kept in bank. Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on the retail segment. Banks with their phenomenal reach and a regular interface with the retail investor are the best placed to enter into the insurance sector. Banks in India have been allowed to provide fee-based insurance services without risk participation invest in an insurance company for providing infrastructure and services support and set up of a separate joint venture insurance company with risk participation. The last decade has seen many positive developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favorably with banking sectors in the region on metrics like growth, profitability and nonperforming assets (NPAs). A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. However, improved regulations, innovation, growth and value creation in the sector

remain limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. Indias banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatory framework will also be critical to their success. The failure to respond to changing market realities has stunted the development of the financial sector in many developing countries. A weak banking structure has been unable to fuel continued growth, which has harmed the long-term health of their economies. In this white paper, we emphasise the need to act both decisivelyand quickly to build an enabling, rather than a limiting, banking sector in India

INTEREST RATE POLICY:

The RBI has been operating the interest rate policy in a flexible manner in tune with the development requirements of the economy. The bank rate is their standard rates of discounts or advance to both banks and financial institutions. It provides refinance to banks varying dates, depending upon purpose and security under section 78 of the RBI. Simultaneously banks borrowing and lending rated have been fixed by the RBI with in the broad spectrum, from the lower rate of 4% DRI loans to vehicle section c to maximum lending rate of 17% for general purposes, There are multiple cities of rates to suit the needs of sectarian developments and to meet socio economic obligations of the government. Some rationalization of these rates also attempted to later. The discount and rediscounts rates on bills, government borrowings rates, etc. Have been revised recently to bring them in line with the more realistic market Oriented rates.The bank rate fixed by the RBI in 1990 to 91 was 10% per annum and has since been brought down by stages to 6% p.a. by 2004 to 05. Inflation has been stubborn over the past few months and the RBI has been constantly hiking interest rates in an attempt to control inflation, at the cost of slowing economic growth. The Reserve Bank of India on 16 july 2011 raised its benchmark rates by 25 basis points to 7.50 per cent, hiked reverse repo rates by 25 bps to 6.50 per cent in a move to arrest surging inflation in Asia's third largest economy.Other policy rates such as the statutory liquidity ratio and the cash reserve ratio - the minimum quantum of money against deposits

which the banks have to retain as cash or specified government securities - have been left untouched.Some short-term deceleration in growth may be unavoidable in bringing inflation under control and the central bank needs to persist with its anti-inflationary stance, the Reserve Bank of India said in its mid-quarter policy review

NEW GENERATION BANKING

Information Technology (IT) is very powerful in todays world, and financial institutions are the backbone of the Indian economy. Indian Banking Industry today is in the midst of an IT revolution. Nearly, all the nationalised banks in India are going for information technology based solutions. The application of IT in Banks has reduced the scope of traditional or conventional banking with manual operations. Nowadays banks have moved from disbursed to a centralised environment, which shows the impact of IT on banks. Banks are using new tools and techniques to find out their customers need and offer them tailor made products and services. The impact of automation in banking sector is difficult to measure.

Major Reform Initiatives

Some of the major reform initiatives in the last decade that have changed the face of the Indian banking and financial sector are: Interest rate deregulation. Interest rates on deposits and lending have been deregulated with banks enjoying greater freedom to determine their rates. Adoption of prudential norms in terms of capital adequacy, asset classification, income recognition, provisioning, exposure limits, investment fluctuation reserve, etc. Reduction in pre-emptions lowering of reserve requirements (SLR and CRR), thus releasing more lendable resources which banks can deploy profitably Government equity in banks has been reduced and strong banks have been allowed to access the capital market for raising additional capital. Banks now enjoy greater operational freedom in terms of opening and swapping of branches, and banks with a good track record of profitability have greater flexibility in recruitment. New private sector banks have been set up and foreign banks permitted to expand their operations in India including through subsidiaries. Banks have also been allowed to set up Offshore Banking Units in Special Economic Zones.

 New areas have been opened up for bank financing: insurance, credit cards, infrastructure financing, leasing, gold banking, besides of course investment banking, asset management, factoring, etc. New instruments have been introduced for greater flexibility and better risk management: e.g. interest rate swaps, forward rate agreements, cross currency forward contracts, forward cover to hedge inflows under foreign direct investment, liquidity adjustment facility for meeting day-to-day liquidity mismatch. Several new institutions have been set up including the National Securities Depositories Ltd., Central Depositories Services Ltd., Clearing Corporation of India Ltd., Credit Information Bureau India Ltd. Limits for investment in overseas markets by banks, mutual funds and corporates have been liberalized. The overseas investment limit for corporates has been raised to 100% of net worth and the ceiling of $100 million on prepayment of external commercial borrowings has been removed. MFs and corporates can now undertake FRAs with banks. Indians allowed to maintain resident foreign currency (domestic) accounts. Full convertibility for deposit schemes of NRIs introduced. Universal Banking has been introduced. With banks permitted to diversify into long-term finance and DFIs into working capital, guidelines have been put in place for the evolution of universal banks in an orderly fashion. Technology infrastructure for the payments and settlement system in the country has been strengthened with electronic funds transfer, Centralised Funds Management System, Structured Financial Messaging Solution, Negotiated Dealing System and move towards Real Time Gross Settlement. Adoption of global standards. Prudential norms for capital adequacy, asset classification, income recognition and provisioning are now close to global standards. RBI has introduced Risk Based Supervision of banks (against the traditional transaction based approach). Best international practices in accounting systems, corporate governance, payment and settlement systems, etc. are being adopted.

 Credit delivery mechanism has been reinforced to increase the flow of credit to priority sectors through focus on micro credit and Self Help Groups. The definition of priority sector has been widened to include food processing and cold storage, software upto Rs 1 cr, housing above Rs 10 lakh, selected lending through NBFCs, etc. RBI guidelines have been issued for putting in place risk management system in banks. Rish management Committees in banks address credit risk, market risk and operational risk. Banks have specialised committees to measure and monitor various risks and have been upgrading their risk management skills and system

The face of banking is changing rapidly. Competition is going to be tough and with financial liberalisation under the WTO, banks in India will have to benchmark themselves against the best in the world. For a strong and resilient banking and financial system, therefore, banks need to go beyond peripheral issues and tackle significant issues like improvements in profitability, efficiency and technology, while achieving economies of scale through consolidation and exploring available cost-effective solutions. In today scenario the technology captures the banking sectores. It provides a no. of solution to the customer and helps to upsurge the growth of ti. The dramatic changes in banking sector that brought technology services are listed below:Technology-Oriented Services in Indian Banks: 1. ATM (Automated Teller Machine) 2. Plastic Money 3. Electronic Payment System 4. EDI (Electronic Data Interchange) 5. Mobile Banking 6. Tele Banking 7. Internet Banking 8. Online shopping and electronic payment

Top Ten Banks of India 2011

Ever since the emergence of banking in India in the last decades of the 18th century, the sector witnessed a considerable growth irrespective of economic volatility and unstable political premise. Banking sector of India still maintains its reputation as one of the most persistently lucrative sector that runs on regular government intervention and well-conceived economic policies. Reserve Bank of India, considered the supervisor of all the commercial banks in India, is the main regulator and these financial institutions have to adhere to its governance. India has about 88 commercial banks including 31 private banks, 27 public sector banks and 38 foreign banks. The country has an aggregate of 53,000 bank branches and 17,000 ATMs. Public sector banks dominate the segment with 75%of the total assets of the industry held by them. Following are the names of the best banks in India. 1. State Bank of India: SBI is the oldest bank of India and also Indias largest commercial bank. This government owned bank was established in the year 1806.It is also the second largest bank in the globe. The bank provides a wide array of banking products through their effective network not only on India but also overseas. The bank has about 16,000 branches and is also accountable for one-fifth of the loans of India. It has about 8500 ATMs across the nation. 2. ICICI Bank: This is the second largest bank in India with about 1,419 branches and 4,644 ATMs spread countrywide. It is among the top commercial banks of India providing a wide range of banking services through varied delivery channels. Besides offering high-end banking facilities like Internet banking, Phone Banking and Mobile Banking, ICICI also plays a pivotal role in the domains of investment banking, venture capital and asset management and life and non-life insurance. It has its presence in 18 countries across the world including UK, Canada, Russia and others.

3. AXIS Bank: One of the top private banks in India, it was earlier known as the Unit Trust of India (UTI) since it was promoted by the same organization. It was first among the new private banks to have started its operations in the year 1994. AXIS has its significant presence in about 4509 districts of India with a wide network of over 729 branch offices and Extension Counters. With around 3171 ATMs, the bank provides round the clock banking convenience. This Indina bank has amassed a capital of more than Rs. 350 crores and enjoys equal sway over retail and corporate banking. 4. HDFC Bank: It is also among the top banks of India offering various banking services for the customers like Personal Banking, NRI Services, Net Banking, Online Remittances and others. The year 2008 has been very prosperous for HDFC as it won a host of awards for being the best retail bank and also the best among other Indian banks to adopt Information Technology. With a total income of more than Rs. 5,400 crores, it demands a significant position in Indian banking industry. The bank has about 1,500 branches and 2,890 ATMs in 530 Indian cities. 5. HSBC: The first ATM provider of India, HSBC Bank is one of Indias top banks with its operational base extending consitently. This commercial bank of India first started to function in 1853. It opens up ample banking services for the customers apart from cash management, financial planning and business banking facility. It has a provision of 150-in-branch and off-branch ATMs and phone banking for 24 hours. 6. Reserve Bank of India: Referred as the Central Bank of India, RBI is a premier bank of India having about 22 regional offices across the nation and most of the offices are in the capitals of the Indian states. RBI is fully owned by Government of India and it performs myriad range of services from supervising and regulating financial system to managing exchange control. Established

in 1935, RBI remains the most prestigious entity playing the guardian of all commercial banks of India. 7. Punjab Bank of India (PNB): Has been in operation since 1895, PNB is a trusted name in the banking segment of India. It is among the few other public sector banks of India that runs special schemes for senior citizens, army personnel, students and women. Despite the recessive tendency in Indian economy, PNB has managed to eke out profit on a sustained manner. 8. Central Bank of India: This is one of the largest and oldest commercial banks in India. The bank has its office in about 27 states in India with 270 extension counters and 3,168 branches. Founded in the year 1911, this is Indias first commercial bank that was completely managed and owned by Indians. With an average business of around 2,000 crore, Central Bank of India has a significant presence in Indias financial orbit. 9. Union Bank of India: This PSU unit has convinced the customers that they are Good people to bank with. More than 50% of share capital of Union Bank of India is held by Indian government. Around 27,000 employees work together to fulfill the banks mission to reduce the gap between expectations and deliverables. 10. Bharat Overseas Bank Ltd Bharat Overseas Bank (BOB) was a private bank based in Chennai, India. In 2007 it merged with Indian Overseas Bank, which took over all the bank's employees, assets, and deposits. BOB was established in 1973 order to take over for the Bangkok branch of the Indian Overseas Bank. It was one of the few private banks that the Reserve Bank of India permitted to have a branch outside of India, and was the only bank representing India in Thailand.

CHAPTER-2

INTRODUCTION ABOUT

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 30th June, 2011 is capitalized to the extent of Rs. 411.88 crores with the public holding (other than promoters and GDRs) at 52.87%. 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 6270 ATMs (as on 31st March, 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.

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.

BOARD OF DIRECTORS
The Bank has 9 members on the Board. Smt. Shikha Sharma is the Managing Director & CEO of the Bank. The members of the Board are : SMT. SHIKHA SHARMA SHRI M. M. AGRAWAL 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 K. N. PRITHVIRAJ MANAGING DIRECTOR & CEO D EPUTY MANAGING DIRECTOR(DESIGNATE) DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR DIRECTOR

Our Mission And Values

Our Mission
Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

Vision 2015 and Core Values 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

Axis Bank is new name for UTI Bank

UTI Bank began its operations in 1994 when 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 Ltd. and its associates viz. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. UTI Bank Ltd. was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC (General Insurance Corporation) and its four subsidiaries contributing Rs. 1.5 crore each. The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 420 branch offices and Extension Counters. UTI Bank has a network of over 1841 ATMs, which is one of the largest ATM networks in the country. India's third largest private sector bank, UTI Bank, has gone for an image makeover, changing its name to Axis Bank Ltd. The rebranding, which came into effect July 30, includes change in its logo and its color. The Registrar of Companies (RoC) has issued a fresh certificate of incorporation to UTI Bank in the name of 'Axis Bank Ltd.' The bank had appointed an internal committee and also sought help from its official advertising agency, O&M, for the name change. UTI Bank has contributed to the resurgence of the UTI brand in last five six years. The bank had a role to play in this. The bank has retained the burgundy color, but has changed the logo. The logo uses the alphabet 'A' from the word Axis. 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. Earlier, the bank's logo used the letters U, T and I. Their central message is that nothing has changed except the name. The continuity is maintained through the color. The committee had short listed 50-odd names. Finally, Bank chooses the name Axis from a group of ethnic, traditional and funky names. Axis is simple and it conveys a sense of solidity and a sense of maturity. This name also has a universal appeal. They had to change their name to have own brand and identity. The bank have to give up the UTI name after using it for 13 years as they were not prepared to accept

terms and conditions from UTI AMC to use the name. UTI Bank decided to choose the new name considering the bank's pan-Indian as well as international presence. The bank would go in for international expansion sometime down the line. "Moving on to Axis would only reinforce the fact that they are a board-driven private bank, as against the previous image which had a quasi-governmental touch, and in that sense, the brand-change will be actually beneficial," The bank is likely to spend around Rs. 50 crore ($12.5 million) in the re-branding exercise in the year 2008. The change in name was considered for avoiding confusion as several unrelated entities were using the UTI brand. The board of directors of UTI Bank had, on April 30 2007, approved the proposal to change its name to Axis Bank. UTI Asset Management Company owns the UTI brand.

Milestones
YEAR 1993 MAJOR EVENTS Incorporated as UTI Bank Limited 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.

2001

The bank along with Global Trust Bank (GTB) had a merger proposal to create the largest private sector bank, but due to media's issues both the banks withdraw the merger proposal.

2003

It was authorized to handle Government transactions such as collection of Government taxes, to handle the expenditure related payments of Central Government Ministries and Departments and pension payments on behalf of Civil and Non-civil Ministries such as defence, posts, telecom and railways. Also, it launched merchant acquiring business.

2005

The Bank raised $239.3 million through Global Depositary Receipts. It won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure, delivery capabilities and innovative solutions. Also, it set up Axis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd) to market credit cards and retail asset products

2006

It set up Axis Private Equity Ltd, primarily to carry on the activities of managing equity investments and provide venture capital support to businesses.

2007

Again, it raised $218.67 million through Global Depository Receipts and opened 153 new branches & extension centres during the year. Also, it opened new overseas offices at Singapore, Dubai and Hong Kong and a representative office in Shanghai. The name of the bank changed to Axis Bank with effect from July 30, 2007.

2008

It established Axis Trustee Services Company Ltd as a wholly owned subsidiary company, which is engaged in trusteeship activities. In December 2008, it launched new investment advisory service exclusively for High Net Worth clients.

2009

The Bank set up Axis Asset Management Company Ltd to carry on the activities of managing a mutual fund business. Also, it incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual fund business. Axis Bank launched the private banking business

2011

Launch of 'Idea MyCash', Powered by Axis Bank And E wallet card Idea MyCash', a facility aimed at providing basic banking services including money transfer, using the mobile platform, was flagged off by IDEA Cellular, the third largest mobile operator in the country, in association with Axis Bank. The eWallet Card is an electronic payment service which is offered by the Bank to its customers without any cost.

Subsidiaries

Name of subsidiary
Axis Securities and Sales Limited

Business
Marketing credit cards and retail asset products. It is also into retail broking It is primarily to carry on the activities of managing equity investments and provide venture capital.

Axis Private Equity Limited

Axis Trustee Services Limited

It is into the trusteeship businesses such as acting as a debenture trustee, the trustee to various securitisation trusts

Axis Mutual Fund Trustee Limited Axis Asset Management Company Limited

The company was formed to act as the trustee for the mutual fund business It is in the mutual fund business

PRODUCTS AND SERVICES

Axis Bank offers its products and services in four distinct categories personal, non-resident Indian, corporate and priority banking. In personal banking section, Axis Bank offers products and services like accounts, cards, deposits, investment, loans and insurance. In priority banking section, Axis Bank provides accounts, investments, deposits, payments, loans, remittances and cards.

In corporate section, Axis Bank offers products and services like accounts, treasury, credit, cash management services, capital market products and services and government business. Services and products like accounts, remittances and deposits are provided to its customers by Axis Bank in non-resident Indian banking category.

PERSONAL BANKING SECTION

1)
(a)

ACCOUNTS:
Easy Access Account

The product is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Easy Access gives customer instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of bank eclectic client base. Customer can avail of all these services with a minimum average balance of Rs 5,000 in metro or urban centers, and Rs 2,500 in semi urban centers. Some of its features are: At Par Cheque Book: ATM Network: Anywhere Banking:

Telebanking: Mobile Banking: Account Statement:

(b) Azaadi Account- No Frills

A savings account that doesn't require a minimum balance. Customer qualifys for Azaadi Account if: The sum total of all credits to account does not exceed Rs 1 lack during the Financial year, Customers do not intend to maintain an account balance higher than Rs 50,000 at any given instant

(c) Prime Savings Account

The Prime Savings account has been created with your specific financial requirements in mind: Wider Accessibility of ATMs. Greater Convenience of payment through debit card. 24 hr Internet Banking and Tele Banking services.

(d) Senior Privilege

Axis Bank's Senior Savings Account has been designed keeping in mind the fact that a senior citizen's banking requirements are wholly different and require special consideration.

(e) Salary Power

The bank have prepared Salary Savings Account for service class customers. Salary Saving Account is not only convenient way for customer to manage salaries (across

various centres, through centralised database), but also provide customer with a range of value added benefits. Some of its features are: No minimum balance required. Anywhere Banking. International Debit cum ATM card with withdrawal upto Rs 25,000 daily.

(f) Power Salute

Defence Salary Account from Axis Bank is a product designed keeping in mind how tough a life in the Defence Forces is. Not only does it come to them absolutely free, no minimum balance is required either. Customer can also access the entire Axis Bank network, including more than 2400 ATMs and 550 branch offices (and growing) no matter where you are posted. Some of its features are: At-Par Cheque Facility Additional Debit Card

Financial Advisory Services

(g) Pension Savings Account

This type of account is specifically designed for Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly different and require special consideration. Some benefits are:

Timely communication to the customer on receipt of the PPO No delays in commencement of pension disbursals - The Bank is handling the disbursement of Pension under a Centralised Pension Disbursement Module wherein the Pensioner records are credited centrally through its Centralised Pension Payment Hub (CCPH) at Mumbai.

Timely issue of Form- 16A for tax deducted at source in the immediately previous financial year.

Timely revisions based on changes in rates of Pension or Dearness Allowance, done centrally from the CCPH.

2.)

DEPOSITS:

(a) Fixed Deposits

Axis Bank offers simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000. Customer can make additions to his deposit in multiples of Rs 1,000 each. The tenure of the deposit must be a minimum of 6 months.

(b) Encash 24
The ENCASH 24 (Flexi Deposits) gives the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to Savings Account providing you the following unique facilities:

Maximum Returns: As soon as the balance in Savings Account crosses over Rs 25,000, the excess, in multiples of Rs 10,000 will be transferred automatically to a higher interest earning Fixed Deposit Account.

Maximum Liquidity: The money parked in Fixed Deposits as a result of the above mentioned sweep out from Savings account can be easily accessed by issuing a cheque, withdrawing through ATM etc.

Auto Renewal: On maturity of linked Fixed Deposits, the bank will automatically renew it for a maximum period of 181 days.

(c) Recurring Deposits

Axis Bank's Recurring Deposit scheme will allow customer with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Some of features are:

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

The fixed number of installments for which a depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

A recurring deposit account can be transferred from one office of the Bank to another branch.

(d) Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006. The salient points of the scheme notification are; (a) Fixed tenure without premature withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt that shall be the basis of claiming tax benefit. (e) Term deposit under this scheme cannot be pledged to secure a loan.

3.)

LOANS

(a) Power Home

Axis Bank's Power Home puts an end to your Real Estate troubles. Augment your reach and buy the house that you've set your heart on. Features of Power Home Loan

1. 2. 3. 4.

Attractive interest rates Balance Transfer facility Doorstep service Nil Prepayment charges

(b) Study Power

Axis Bank's Study Power aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The loan would be provided to students who have obtained admission to career-oriented courses eg, medicine, engineering, management etc., either at the graduate or post-graduate level.

(c) Asset Power (Loan Against Property)

In this type of loan system, bank provides loan to customer against their property i.e. property is kept in the form of security. Property kept as security can be commercial or residential. Customer can also apply for this loan if they need funds to acquire new property. A take-over of existing loan with refinancing is also possible with Asset Power. Some of features are:

Attractive interest rates. Balance Transfer facility available with additional finance. Doorstep service.

(d) Two Wheeler Loan

In this type of loan service, bank tries to provide money to customer so that he can buy a two wheeler.

(e) Loan Against Security

Overdraft against shares

Only individuals are permitted to apply. HUFs, limited companies, partnerships and sole proprietors are not eligible. Facility available against more than 500 approved scrips. Shares can be pledged from any Depository Participant across the country.

Overdraft against mutual funds

Only individuals are permitted to apply. Maximum limit upto 50% of valuation. Overdraft possible against more than 250 schemes.

Loan or overdraft against NSC or KVP or LIC policy

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

Loan or overdraft against RBI Bonds or US 64 Bonds

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

4.) CARDS
(a) Gold Credit Card
Axis Bank's Gold Plus Credit Card goes beyond meeting expectations. There is always more to enjoy and more to gain with a Gold Plus Credit Card. Apply for Gold Plus Credit Card and claim a complimentary return flight voucher.

(b) Gold Debit Card

Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of enhanced benefits and exclusive reward program. Meant for valued Axis Bank

customers, it is a result of bank constant endeavour to understand customer requirements and design products and services with you in mind. Some of benefits are:

Flexibility of usage. Worldwide reach. Zero petrol surcharge. Special offers and discounts at merchant establishments on card usage.

(c) Debit Card

Modern times necessitate that you need to have access to your money anytime and anywhere. The Axis Bank International Debit Card addresses this need. A deposit access program, the Debit Card redefines convenience. Apart from being an ATM (Automated Teller Machine) Card rd used for withdrawing cash, it also enables to shop and make cashless purchases. Cutomer can use the card to make payments at shops, department stores, restaurants, petrol pumps and many more outlets aaina India and overseas.

(d) Silver Plus Credit Card

For people who seek more out of everything, Axis Bank presents the Silver Plus Credit Card. With it customer can get added features and benefits. Apply for an Axis Bank Silver Plus Credit Card and get a complimentary one way flight voucher.

(e) Business Gold Debit Card

The Business Gold Debit Card is an effort from Axis Bank to offer customers the very best deals possible through a debit card. Available only to the most privileged current account holders, the Business Gold Debit Card mirrors great business success and achievement with a host of enhanced benefits and exclusive value deals

(f) Remittance Card

Axis Bank's Remittance Card is meant for people who receive remittances from abroad. It aims to make the procedure of receiving money from loved ones abroad easy and

hassle free. Thereby rendering the age-old instruments like Demand Drafts and Pay Orders obsolete. This card is brought in association with www.Remit2India.com , a global online money transfer service of Times Online Money Limited. Funds remitted through www.Remit2India.com are directly loaded onto the Remittance Card, which customer, as the beneficiary of the remitted funds, have access to anytime and anywhere.

(g) Secured Credit Card

Axis Bank Secured Credit Card is issued against collateral in the form of a Term Deposit account with the Bank. Some of benefits are: Lower Finance Charges (0.99% p.m.- 1.49% p.m.). Income document requirement waived off. Flexibility to set your own Credit Limit on the basis of the FD amount. Term Deposit continues to earn interest.

(h) Travel Currency Card

Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable experience. Available off the shelf at the nearest Axis Bank Branch and select FFMCs (Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores. With it customer can attend his business, enjoy the delightful tourist spots, dine out, and take in the breathtaking landscape and exotic culture of the country without worrying about money changers and converting traveller's cheques into local currency.

(i) Meal Card

Axis Bank have always strived hard to understand the different payment needs of corporates and come up with products to efficiently meet these needs. In continuation with endeavours, bank bring the Axis Bank Meal Card, a Compensation and Benefits tool targeted at providing tax-free Meal allowances to customers employees as provided by Section 115WB of the Income Tax Act of India. The Axis Bank Meal Card is a prepaid

card designed to replace the inefficient paper voucher system in the market. It is a far more operationally efficient way to provide customers employees with a meal allowance and eliminates the logistical hassles associated with the procurement, stock-keeping and distribution of paper-based Meal Vouchers.

5.)

INVESTMENT

(a) MOHUR Gold Coins

Axis Bank brings to you 'MOHUR' - Gold Coins in the purest form! Made in Switzerland, 'MOHUR' Gold Coins carry the Assay certification of being 24 carat, 99.99% pure! It comes in a specialized packaging that is tamper proof so that its purity is preserved.Available in 5 gms, 8 gms & 10 gms it is on offer in select branches of Axis Bank.

(b) Online Trading

Axis Bank in alliance with Geojit Financial Services now offers an Online Trading Account. Trade from the comfort of home or office either through the Internet or the Phone. This service provides an integrated Savings Bank Account, Demat Account and an Online Trading Account to give a convenient and paper free trading experience. Axis Bank Online Trading Customer would also have the flexibility to get an insight to a complete range of Corporate Information, Reuter News and Research Tools which would help him to take timely Investment decisions.

(c) Mutual Funds

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.

(d) Fixed Income

8.5% Relief Bonds, 1999: Issued by Reserve Bank of India (RBI) are available for sale at Axis Bank counters. Investors can choose from cumulative and non-cumulative bond options. Bonds will bear interest @ 8.00% per annum and are payable half-yearly. For the investors opting for the non-cumulative option the interest will be paid on February 1 and August 1 every year. For investor choosing cumulative Bonds interest will be payable on maturity along with the principal. The value of every Rs 1,000 invested in these bonds will be Rs 1,601 (principal + interest) at the end of six years. The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof.

(e) Depository Services

Axis Bank is a registered member (Depository Participant) of NSDL. In this system, physical security holdings are converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first depository. Customer can avail of all the depository-related services by just opening an account with NSDL through Axis Bank. Some of the depositories services are: Transfer of shares and settlements Receipt of Corporate Benefits Dematerialisation of shares Rematerilialisation Pledge-Hypothecation Freezing or Locking of Accounts

6.)

INSURANCE

(a) Jewellery Insurance

Jewellery forms an integral part of our culture & our lives, be it any occasion or even a regular day. However, these valuables need to be safeguarded against various risks,

which may not be covered under other policies. Jewellery Insurance safeguards this asset for customer, securing it against all risks. The only product of its kind in the industry, provides complete security for jewellery, when it is worn by the policyholder in person or while being carried to the bank lockers. Absolute security & coverage is given against burglary & fire, in respect of items kept at bank locker.

(b) Smart Advantage

Smart Advantage is a women-specific Critical Illness insurance plan that has been designed for Smart Privilege customers keeping in mind the critical illnesses and other attendant risks that are especially faced by women. A guaranteed cash sum will be paid in case the insured is diagnosed with a life-threatening illness. The benefit amount under this policy helps to take care of heavy medical costs for treatment of critical illness. Hence provides protection from the economic impact of critical illness.

(c) Family Health

Only Axis Bank offers the advantage of insuring not just customers but their entire family with one policy. Banks Family Health insurance programme provides a comprehensive health insurance that covers customer, their spouse and 3 dependent children up to the age of 18 years. This scheme has been started with the collaboration of Bajaj Alliance Life Insurance.

(d) Safe Home

Axis Bank realize the need to make customers home as secure in reality, that is why, safe home, in association with Bajaj Allianz General Insurance means - , an insurance policy exclusively designed for Axis Bank customers, which provides protection for property and valuables at home.

(e) Silver Health

Health care costs are high and getting higher. As the age of an individual increases the health care costs increase manifold and become a burden on the individual. Senior

citizens have to pay out of their hard earned savings to meet the expenses. Bajaj Allianz's Silver Health Plan for senior citizens protects them and their spouse in case they need expensive medical care. They get cashless benefit or medical reimbursement for hospitalization expenses due to illness or accidents.

(f) Travel Companion

Travel for business or pleasure, international travel involves risk. Medical treatment abroad can be expensive and one never knows when one would require it. Having to spend for medical bills in foreign currency can be expensive proposition. Bajaj Allianz's Travel Companion is specially designed to help travelers deal with such situations while overseas travel.

(g) Safe Guard

Axis Bank and Bajaj Allianz General Insurance present 'Safe Guard' personal Accident Insurance cover. A unique policy that offers insurance coverage at premiums that are extremely competitive and exclusively meant for Axis Bank customers. Safe Guard offers insurance coverage in case of: Accidental death, Accidental permanent total disability, Accidental permanent partial disability,

(h) Motor Insurance

Motor vehicle is an invention which has made daily commuting easy. It is convenient, fast and saves time. Though it is easy to own a vehicle it is expensive maintaining a motor vehicle especially in case of damage caused due to some unavoidable circumstances or accidents. Bajaj Allianz's Motor Vehicle Policy helps in maintaining your vehicle in such situation.

7. PAYMENT:
(a) Bill Pay
Axis Bank's Bill Pay service enables to make secure payments from the comfort of customers home or office. So its time to say goodbye to late payment fines, long queues, lost bills, and commissions paid to local errand boys.

(b) Direct Tax Payment

The Bank is authorised for Collection of Income or Other Direct Taxes on behalf of Central Board of Direct Taxes (CBDT) w.e.f 1 October, 2003. The assessees or taxpayers can pay Income or Other Direct Taxes as listed below at 214 authorised branches of Axis Bank across the country.

(c) Pension Disbursement

The Bank is authorised by RBI and Central Pension Accounting Office (CPAO) for disbursement of Central Civil Pension through its 218 authorised branches across the country. This facility can be availed by opening a Pension Payment Savings Bank Account with any authorised Axis Bank Branch and thereafter pension will directly be debited in customers account. 8.) FOREX Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable experience. Available off the shelf at your nearest Axis Bank Branch and select FFMCs (Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores. The Travel Currency Card gives you a 24-hour access to your money. Withdraw funds in the local currency from any Visa or Visa Plus ATM's (Automated Teller Machine) as well as pay for all your purchases in any country you visit, anywhere in the world.

a) India Travel Card

Presenting the Axis Bank India Travel Card, a unique prepaid debit card to secure your currency needs when you travel in India. Loaded with a host of unique features, the India Travel Card is designed to make your trip more enjoyable and free from foreign currency exchange hassles

Features
o

Easily Available Available over the counter, at a large network of licensed Money Changers and 192 centrally located Axis Bank branches

o o o o o o o o o o o o

Convenient One-time conversion of foreign currency at competitive exchange rates Load upto Rs. 50,000 on the card at any point of time Reloadable at 192 Axis Bank branches Fully refundable to Indian Rupees

Simple to use Shop at over 470,000 outlets Withdraw cash anytime, anywhere at over 59,000 ATMs Safe More secure way of carrying currency Facility to change PIN at over 5000 Axis Bank ATMs Request for a new PIN / Lost card replacement at 192 Axis Bank branches Check usage with online statements

b) Outward Remittance

Send money abroad in a secure and convenient way. Axis Bank offers Outward Remittance facilities enabling you to remit money abroad through reliable and quick transactions.

Send money abroad for reasons more than one: education, medical purpose, gifting, maintenance for loved ones or donation for a cause. c) Foreign Currency Travellers Cheques A tried and tested way of carrying foreign exchange overseas. American Express Traveler's cheques are widely accepted globally as a mode of payment in many parts of the world. It is always worthwhile taking some of your foreign exchange in travelers' cheques as it is a great backup to cash and cards. The beauty of Travelers' Cheques is that they can be replaced if they are lost or stolen. It always helps if you keep a record of your travelers' cheque numbers in a safe place, preferably a copy with you (but not with your cheques) and another copy at home (or somewhere where someone can fax them to you if you need to make a claim for lost cheques).

d) Foreign Currency Cash Cash is the oldest and commonest method of carrying foreign exchange overseas. Carrying small amount of local currency or internationally acceptable currency variants in your wallet when you travel overseas is reassuring and convenient - especially to make payments for the services you may require on your arrival at the destination. According to FEMA guidelines, the maximum amount of currency that can be availed of for any purpose of travel is the equivalent of USD 2,000.

9.) OTHERS:
(a) Mobile Refill
With Axis Bank's mobile refill facility, customer no longer have to worry about losing their mobile connectivity anytime of the day or night. Axis Bank's mobile refill facility enables to refill mobile over the Internet, on the ATM and even through SMS.

(b) Lockers
Axis Bank also provides lockers to its esteemed customers. Any customer that wants locker facility can contact to any branch of Axis Bank. No need of any documentation.

(c) Online Shopping

Axis Bank offers the convenience of shopping at many major Online stores from the comfort of home or office. All customer needs is an internet enabled PC. He can choose & then get the items delivered at his doorstep. He can also avail numerous online services, get to know about the current special offers/discounts and get a preview of the new items added on to the shelves by these online retailers/service providers. Payment can be made by debiting account through the secured payment channel, iConnect Axis Banks internet banking platform. A critical illness plan means customer can insure himself against the risk of serious illness in much the same way as they insure their car and house. It will give the same security of knowing that a guaranteed cash sum will be paid if the unexpected happens and customer is diagnosed with a critical illness.

d) E-Statement Axis Bank offers the facility of E-Statement. E-Statement are secure and electronic way to receive statement of accounts from the Bank.

Advantages

Prompt delivery Person specific delivery No hassle of physical record maintenance Monthly statements on email id within a week of the following month Password protected for security

SWOT ANALYSIS

Environmental Scan

Internal Analysis

External Analysis

Strength

Weaknesses Opportunities

Threats

SWOT Matrix

STRENGTH
Support of various promoters High level of services Knowledge of Indian markets

WEAKNESSES
Not having good image Market capitilazation is very low Not been fully able to positon itself correctly

OPPORTUNITIES
Growing Indian banking sectors People are becoming more service oriented

 In the global markets

THREATS
From different competitors Foreign banks Governments banks Future market trends

CHAPTER-3

ANALYSIS & INTERPRETATION

Total number of customers who filled the questionnaire is 100.

1) If given an option, which bank will you prefer to deal with as a customer?

PREFER TO DEAL
40% 35% 30% 25% 20% 15% 10% 5% 4% 0% bank of baroda standard charted a bank axis bank hdfc bank sbi 4% 3% 22% DEALING 31% 36%

Among the total customers, 36% customers are in favor of SBI. These customers prefer to deal with SBI, the reason being it is a public bank and it is located in every nook and corner of the city. The second preference of the customers is Axis bank, 31% customers favor this bank for banking activity. Thus, giving tough competition to SBI. 22% customers are in favor of HDFC Bank. Bank of Baroda, Standard chartered and Karnataka bank are also preferred by some customers.

2) Are you aware about E-banking?

120 100 80 60 40 20 0 Yes No Yes No

All the respondents have acknowledged their awareness of the e-banking concepts (i.e. 100%)

3) Do you think E-banking is more convenient & suitable as compare to traditional banking ?

Convenient and suitable

Agreed Disagreed

Almost 92.1% of the respondents agree that the electronic services are more convenient and suitable in present life. On the other hand 7.9% respondents disagree

4) Usage of ATM is easier, authenticated and safe?

Safe and Secured

Yes NO

It is revealed that 90.7% of the respondents think that using an ATM is easier, authenticated and safe for conducting banking transaction and 9.3% of the respondents deny this statement 5) Which banks ATM you use the most, for cash withdrawal?

Using ATM
40% 35% 30% 25% 20% 15% 10% 5% 0% 36% 26% 22%

4%

6% 2%

4%

ATM

Among the total no. of customers, 36% customers said that they use Axis banks ATM the most for cash withdrawal because its location covers almost all the areas of the city. The next preference is HDFC Bank and 26% customers said that they use HDFC banks ATM because they are convenient with it. The third preference is SBI and 22% people are in favour of this

bank. The reason being it is a public bank. 6% are totally loyal to their existing ICICI bank. PNB, BOB and Standard chartered are also preferred by some customers.

6) Kindly rate the below mentioned banks as per the ambience and infrastructure facilities provided to the customers?

Rating of banks on the basis of ambience & infrastructure

50% 40% 30% 20% 10% 0% 42% 16% 23% 13% 7% Rating of banks on the basis of ambience & infrastructure

Axis HDFC SBI bank

ICICI PNB

42% people said that AXIS BANK is the best 23% people said that SBI is the best 16% people said that HDFC is the best 13% people said that ICICI is the best 6% people said that PNB is the best

7) Are you aware about the e-wallet card of axis bank?

No Yes

It is revealed that 63% respondent are not aware about the e-wallet card and rest of are aware 8) Do you agree the product that purchased was according to your need?

Yes No

72% respondents said that they were satisfied where 28 % respondents didnt find the products as per their needs.

9) Competition between Axis bank ,Hdfc bank, UTI bank and Central bank on basis of their no. of debit card holders
COMPARISION ON THE BASIS OF NO. OF DEBIT CARD HOLDERS
45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ICICI UTI AXIS BANK CENTRAL

10) What do you think is Debit better card than Credit card ?

Sales

YES NO

As per respondents feedback, it is found that 76.3% respondent think that use of Debit card is better than Credit card and 23.7% negated this statement.

11) Is credit card transaction safe and secure ?

Yes No

It is also found that 81.2% think that card transaction is safe and secure and 18.8% respondents faced problem

12) Have you Encountered the processing error while transaction with card?

Yes No

12% respondent encountered the error whereas 88% didnt encounter.

13) Are Online banking transitions save time?

Sales

Yes No

On the basis of analysis of respondents feed back, it is found 85% respondents feel that online banking system save time and 15% doesnt support it.

14) Learning to use a net banking is easier for customer.

Yes No

It is found that 81.1% respondent think that learning to use a net banking/online banking is easier but 18.9% disagree with this statement.

15) Do you think mobile banking services are more useful?

Sales

Yes 2nd Qtr

It is further observed that 77% respondents think that mobile banking services are more useful but 23% do not agree

16) Do you find EFT services is more secure and Time saving?

Yes No

80.9% respondents feel that it is more secure and 19.1% said that it is not safe and secure.

CHAPTER-4

CONCLUSION

CONCLUSION
E-banking has provided ease and flexibility in banking operations. Today, in India, almost every private as well as nationalized bank is providing IT based products and services to their customers and co-operative banks have recently entered in the same. The Financial Reforms that were initiated in the early 90s and the globalization and liberalization measures brought in a completely new operating environment to the Banks that were till then operating in highly protected milieu. Services and Products like Anywhere Banking, Tele-Banking, Internet Banking, Web Banking, E Banking, e-commerce, e-business, etc. have become the buzzwords of the day and the Bank are trying to cope with the competition by offering innovative and attractive packaged technology-based services to their customers. On the basis of the analysis, it can be concluded that usage of banking services is still not wide open. In a country like India, where urban population is less educated, the utility of banking services is not properly realized. It is found that only educated, well to do persons, and male forms the majority of the users. Even though a majority of Indian and Foreign banks have introduced the advance e-banking facilities, but it is observed that a large numbers of bank users do not proper to use these services. This may be due to the ignorance of the system of e-banking or because of the distrust in the computer system. From the above, this can be concluded that there is an urgent need of spreading the awareness among the common people. They should feel that their money is more safe and secure with the banks. As a conscious strategy of building a network of branches and ATMs with effective penetration, the Bank continued to enlarge its geographical coverage of centres with potential for growth, especially in the areas with potential for low-cost CASA deposits, lending to retail, agriculture and SME segments and the distribution of third party products. During the year, 407 new branches were added to the Banks network taking the total number of branches and extension counters (ECs) to 1,390. Of these, 564 branches/ECs are in semi-urban and rural areas and 826 branches/ECs are in metropolitan and urban areas. The Bank is present in all states and Union Territories (except Lakshadweep) covering 921 centres. The ATM network of the Bank increased from 4,293 last year to 6,270 as on 31 March, 2011. During the year, the Bank also opened a Representative Office in Abu Dhabi.

CHAPTER 5

SUGGESTIONS & RECOMMENDATIONS

SUGGESTIONS & RECOMMENDATIONS

As Axis Bank is the 3rd largest private bank in India, therefore, it has contributed a lot towards the progress of banking sector from the past 15 years since its establishment. The 1st private bank to be opened in India emphasis on modernization, expansion and diversification of private banks. The bank tried to make a good image of private banks on public by providing every kind of services to its customers that they expect from banks. Hence, people were getting less dependent on nationalized banks. Axis Bank has not only given a new form of banking of private banks but also has maintained its growth speed after increase in competition due to more private banks coming in banking sector. Some of the important conclusions and recommendations are listed below: . AXIS: To maintain the growth at steady rate. Maximum promotion of products and increase in advertisements.. Deeply analyses competitors strategy and work on it, clearly. Providing services to customers in best of their manner. There is a need for better promotion for the investment products & services. The bank should advertise its products through television because it will reach to the masses AXIS should concentrate on insisting on error free records, on performing the service correctly the first time and employees telling customers exactly what services will be performed Educate the customers about the benefits of e- banking Tapping the opportunities and trying to vanish the weakness Use its strength optimally to give its competitors a disadvantageous position

BIBLIOGRAPHY

BIBLIOGRAPHY
http://www.medianama.com/2011/06/223-axis-bank-launches-e-wallet-card-why-only-addressfear/ http://teleguru.in/2011/03/idea-mycash-mobile-banking-service-powered-by-axis-bank/

http://www.axisbank.com/aboutus/aboutaxisbank/About-Axis-Bank.asp
http://www.bseindia.com/downloads/BankingSector.pdf http://breport.myiris.com/BCL1/UTIBANK_20110308.pdf http://www.axisbank.com/xmlapplication/aboutus/financials/images/Annual-Report-2011.pdf

QUESTIONNAIRE

Personal Information
1. Gender Male Female

2. Age 25 years and below 36-45 years 26-35 years Above 45 years

3. Education Below H.Sc. Graduate Completed school education Post Graduate

4. Occupation Own business Professional Housewife Government employee Student Other

5. Income Less than 1 lakh p.a.

3-5 lakh p.a.

1-3 lakh p.a.

More than 5 lakh p.a.

QUERIES.
1) If given an option, which bank will you prefer to deal with as a customer?

a) Bank of Baroda.. b) sbi c) axis bank. D) Hdfc e) standard chaterterd ..f) Other bank. 2) Are you aware about the e-banking? Yes . No

3) Do you think E-banking is more convenient & suitable as compare to traditional banking? Yes . No

4) According to you Usage of ATM is easier, authenticated and safe? Yes . No

5) Which banks ATM you use the most, for cash withdrawal? a) Bank of Baroda.. b) sbi c) axis bank. D) Hdfc e) standard chaterterd .. f) other bank 5) Are you satisfied with bank charging amount on ATM access? Yes . No

6) Do you use credit cards? Yes . No

7) Which bank credit cards do you prefer to use? a) Bank of Baroda.. b) SBI c) Axis bank. D) HDFC e) Standard Chaterterd .. f) Other bank . 8) In your opinion credit card charges are heavier? Yes . No

9) Do you think Debit card is better than credit card? Yes. No

10) Does Credit transaction very safe and secure? Yes. No 11) Have you Encountered the processing error while transaction with card? Yes. No 12) Do you think online banking transitions are financially secured? Yes. No

13) Learning to use a net banking is very easier for customer/user Yes. No

14) Are Mobile banking services more useful? Yes. No

15) Do you find EFT services is more secure and Time saving? Yes. No

16) What changes would you recommend so as to enhance your satisfaction level? .