Bharat

PREFACE MBA is not just learning but it is learning by doing. And it is during this program of Master of Business Administration that we, “The Tomorrow’s managers” undergo summer training in between the two-year of study. This report is the outcome of six weeks of exhaustive training at the AXIS BANK, BUNDI. The idea and intention of taking training in this field came up to me because of tremendous changes in banking services. These days presence of banking as service industry for anyone is must and no individual can ignore it. To have an insight on this emerging domain of BANKS in India and its potential as a career led me to AXIS to do my summer project in this field. The purpose of training was to provide practical exposure of working environment, along with learning of operational aspects of Banking Industry and the role managers play in the sectors. During our training the task assigned to us was comparative analysis of Current Accounts and Financial Analysis of 4 year’s annual report. It had been an enriching and experience that gave me immense knowledge and brief insight of a banking industry.

Acknowledgement Concentration, dedication and application are necessary but not sufficient to achieve any goal. They must be awarded by guidance, assistance and cooperation of some people to make it enable. Gratitude is short lived but when put in black and white; one hopes it to enjoy a longer life. Many people have given their valuable time and ideas to enable us to complete our project and project report. We are deeply indebted to all for their ideas and assistance, and we bear the entire responsibility for weaknesses in the project. I cannot forget the wholehearted support, which has given me an expert and learned supervision of Mr. SACHIN CHODARY, Relationship Manager, and Business Banking at Axis Bank Bundi branch, for giving us the opportunity to undergo this projection in company. We are highly obliged to express our praise and profound thanks to Mr. Vishal Arora, Mr. Kamal Ramnani, and Mr. Lokesh Sharma for their expert guidance and co-operation throughout the making of our project and I am highly obliged to them for supervision, encouragement and valuable advice. I am also indebted to my teachers Miss. Jyoti Kandpal who have been constant source of inspiration and provided guidance to me at every point of time. Lastly I would like to thank all those, who have, directly or indirectly, helped me in making the project.

Chapter: 1 1. Object of Study 1.1 EXECUTIVE SUMMARY As a part of curriculum every management student is required to undergo about eight weeks of practical training in an organization where he/she gets acquainted about the management concepts take their shape to be finally implemented as policies and programs. The student is therefore introduced to the practical aspects of the text he has learned and gets a better understanding of the concept. I was assigned a summer project on behalf of AXIS BANK – JAIPUR. I had to analyze the –  BUSINESS BANKING SERVICES (CURRENT ACCOUNTS) OF AXIS BANK AND ITS COMPARISON WITH OTHER BANKS AND  THE FINANCIAL GROWTH OF THE BANK IN FISCAL YEAR 2007-08. AXIS Bank earlier known as UTI Bank was the first new generation private sector bank to be established in India under the overall reform programmed initiated by the government of India in 1991 under which nine new banking licenses were granted. Axis Bank is one of the fastest growing banks in the country and has an extremely competitive and profitable banking franchise evidenced by –  Comprehensive portfolio of banking services including Corporate Credit, Retail Banking, Business Banking, Capital Market, Treasury and International Banking.  Sound technological platform with centralized database and operations enabling 24*7*365 ‘Anywhere Banking’, in order to render the dest customer service to its more than 2.5 million customer base. 1.2 Training Profile:  In my summer training the profile that assigned to me was to do market research, sales, customer interaction and customer survey.  Along with this my work was to pitch walk-in customers and make them understand about the investment schemes and to call to the customers and to make them aware about bank’s new schemes and facilities like zero balance current accounts for e-tax payment etc.  I did market research regarding the GICs to know that which insurance company is preferred by most automobile dealers.

1.3 Research Methodology: For collecting the data regarding my project I went in the different banks to gain the information about their current account products, their business banking services and core competencies they offer to attract the customers. I collected financial data through internet and annual magazines of Axis. 1.4 Analysis: As the competition intensifies the difference between features of Current Accounts makes it narrowing down the cost, product features and offers. A customer not only opens his account in any bank due to its BRAND VALUE but also because of its CUSTOMER SERVICES exist as a CORE COMPETENCY OF AXIS. 1.5 Findings: Business banking services of Axis Bank are more customized having segmented current account products for different segments covering corporate, institutions, central and government undertakings. Axis bank has small pool of customers in comparison to other banks but due to its customer centric approach it has more satisfied customers and this is the main reason of its increasing financial gains in successive years. 1.6 Conclusion: The CUSTOMER SATISFACTION and MARKET SHARE HOLDING is a very sensitive issue. Due to the cut-throat competition with other banks there is a need to regular check in all the parameters of banking.

Chapter: 2 2.1 Industrial Profile: 2.1.1 History Banks have influenced economies and politics for centuries. Historically, the primary purpose of a bank was to provide loans to trading companies. Banks provided funds to allow businesses to purchase inventory, and collected those funds back with interest when the goods were sold. For centuries, the banking industry only dealt with businesses, not consumers. Banking services have expanded to include services directed at individuals, and risk in these much smaller transactions are pooled. 2.1.2 Origin of the word The name bank derives from the Italian word banco "desk/bench", used during the Renaissance by Florentines bankers, who used to make their transactions above a desk covered by a green tablecloth. However, there are traces of banking activity even in ancient times. In fact, the word traces its origins back to the Ancient Roman Empire, where moneylenders would set up their stalls in the middle of enclosed courtyards called macella on a long bench called a bancu, from which the words banco and bank are derived. As a moneychanger, the merchant at the bancu did not so much invest money as merely convert the foreign currency into the only legal tender in Rome—that of the Imperial Mint. 2.1.3 Banking in India: Banking in India

Central bank

Reserve Bank of India

Nationalized banks

State Bank of India · State Bank of Mysore · Allahabad Bank · Andhra Bank · Bank of Baroda · Bank of India · Bank of Maharashtra · Canara Bank · Central Bank of India · Corporation Bank · Dena Bank · Indian Bank · Indian Overseas Bank · Oriental Bank of Commerce · Punjab & Sind Bank · Punjab National Bank · Syndicate Bank · Union Bank of India · United Bank of India · UCO Bank ·

Vijaya Bank · IDBI Bank

Private banks

Axis Bank · Bank of Rajasthan · Bharat Overseas Bank · Catholic Syrian Bank · Centurion Bank of Punjab · City Union Bank · Development Credit Bank · Dhanalakshmi Bank · Federal Bank · Ganesh Bank of Kurundwad · HDFC Bank · ICICI Bank · IndusInd Bank · ING Vysya Bank · Jammu & Kashmir Bank · Karnataka Bank Limited · Karur Vysya Bank · Kotak Mahindra Bank · Lakshmi Vilas Bank · Nainital Bank · Ratnakar Bank · SBI Commercial and International Bank · South Indian Bank · Tamilnad Mercantile Bank · YES Bank

Foreign banks

Citibank · HSBC Deutsche Bank

Regional banks

South Malabar Gramin Bank

Services

National Electronic Fund Transfer (NEFT) CashTree · Cashnet

· Standard Chartered

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2.1.4 Traditional banking activities Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. Banks borrow money by accepting funds deposited on current account, accepting term deposits and by issuing debt securities such as banknotes and bonds. Banks lend money by making advances to customers on current account, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks provide almost all payment services, and a bank account is considered indispensable by most businesses, individuals and governments. Non-banks that provide payment services such as remittance companies are not normally considered an adequate substitute for having a bank account.

Banks borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses, but non-bank lenders provide a significant and in many cases adequate substitute for bank loans, and money market funds, cash management trusts and other non-bank financial institutions in many cases provide an adequate substitute to banks for lending savings to. 2.1.5 Definition The definition of a bank varies from country to country. Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as: • • •

conducting current accounts for his customers paying cheques drawn on him, and collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, and this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking' (Section 2, Interpretation). Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques do not depend on how the bank is organised or regulated. The business of banking is in many English common law countries not defined by statute but by common law, the definition above. In other English common law jurisdictions there are statutory definitions of the business of banking or banking business. When looking at these definitions it is important to keep in mind that they are defining the business of banking for the purposes of the legislation, and not necessarily in general. In particular, most of the definitions are from legislation that has the purposes of entry regulating and supervising banks rather than regulating the actual business of banking. However, in many cases the statutory definition closely mirrors the common law one. Examples of statutory definitions: •

"banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation).

•

"banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] ... or with a period of call or notice of less than that period;

2. paying or collecting cheques drawn by or paid in by customers. 3. Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has lead legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques. Accounting for bank accounts Bank statements are accounting records produced by banks under the various accounting standards of the world. Under GAAP and IFRES there are two kinds of accounts: debit and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are Assets and Expenses. This means you credit credit accounts to increase their balances and you debit debit accounts to increase their balances. This also means you debit your savings account everytime you deposit money into it (and the account is normally in deficit) and you credit your credit card account everytime you spend money from it (and the account is normally in credit). However, if you read your bank statement, it will say the opposite- that you have credited your account when you deposit money, and you debit when you withdraw it. If you have cash in your account you have a positive or credit balance and if you are overdrawn it will say you have a negative or a deficit balance. The reason for this is because the bank, and not you, has produced the bank statement. Your savings might be your assets, but it is the bank's liability, so your savings account is a liability account which is a credit account and should have a positive credit balance. Your loans are your liabilities but the bank's assets so they are debit accounts which should have a negative balance. Below where bank transactions, balances, credits and debits are discussed, they are done so from the viewpoint of the account holder which is traditionally what most people are used to seeing. 2.1.6 Wider commercial role However the commercial role of banks is wider than banking, and includes: • • • • •

issue of banknotes (promissory notes issued by a banker and payable to bearer on demand) processing of payments by way of telegraphic transfer, EFTPOS, internet banking or other means issuing bank drafts and bank cheques accepting money on term deposit lending money by way of overdraft, installment loan or otherwise

•

• • •

providing documentary and standby letters of credit (trade finance), guarantees, performance bonds, securities underwriting commitments and other forms of off balance sheet exposures safekeeping of documents and other items in safe deposit boxes currency exchange sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products as a 'financial supermarket'

2.1.7 Economic functions The economic functions of banks include: 1. issue of money, in the form of banknotes and current accounts subject to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par and effectively transferable by mere delivery in the case of banknotes, or by drawing a cheque, delivering it to the payee to bank or cash. 2. netting and settlement of payments -- banks act both as collection agent and paying agents for customers, and participate in inter-bank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economise on reserves held for settlement of payments, since inward and outward payments offset each other. It also enables payment flows between geographical areas to offset, reducing the cost of settling payments between geographical areas. 3. credit intermediation -- banks borrow and lend back-to-back on their own account as middle men 4. credit quality improvement -- banks lend money to ordinary commercial and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and the bank's own capital which provides a buffer to absorb losses without defaulting on its own obligations. However, since banknotes and deposits are generally unsecured, if the bank gets into difficulty and pledges assets as security to try to get the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position. 5. maturity transformation -- banks borrow more on demand debt and short term debt, but provide more long term loans. Bank can do this because they can aggregate issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintain reserves of cash, invest in marketable securities that can be readily converted to cash if needed, and raise replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets) because they have a high and more well known credit quality than most other borrowers.

2.1.8 Law of banking Banking law is based on a contractual analysis of the relationship between the bank and the customer. The definition of bank is given above, and the definition of customer is any person for whom the bank agrees to conduct an account. The law implies rights and obligations into this relationship as follows: 1. The bank account balance is the financial position between the bank and the customer, when the account is in credit, the bank owes the balance to the customer, when the account is overdrawn, the customer owes the balance to the bank. 2. The bank engages to pay the customer's cheques up to the amount standing to the credit of the customer's account, plus any agreed overdraft limit. 3. The bank may not pay from the customer's account without a mandate from the customer, e.g. a cheque drawn by the customer. 4. The bank engages to promptly collect the cheques deposited to the customer's account as the customer's agent, and to credit the proceeds to the customer's account. 5. The bank has a right to combine the customer's accounts, since each account is just an aspect of the same credit relationship. 6. The bank has a lien on cheques deposited to the customer's account, to the extent that the customer is indebted to the bank. 7. The bank must not disclose the details of the transactions going through the customer's account unless the customer consents, there is a public duty to disclose, the bank's interests require it, or under compulsion of law. 8. The bank must not close a customer's account without reasonable notice to the customer, because cheques are outstanding in the ordinary course of business for several days. These implied contractual terms may be modified by express agreement between the customer and the bank. The statutes and regulations in force in the jurisdiction may also modify the above terms and/or create new rights, obligations or limitations relevant to the bank-customer relationship. 2.1.9 Entry regulation Currently in most jurisdictions commercial banks are regulated by government entities and require a special bank licence to operate. Usually the definition of the business of banking for the purposes of regulation is extended to include acceptance of deposits, even if they are not repayable to the customer's order, however money lending, by itself, is generally not included in the definition.

Unlike most other regulated industries, the regulator is typically also a participant in the market, i.e. government owned bank (a central bank). Central banks also typically have a monopoly on the business of issuing banknotes. However, in some countries this is not the case, e.g. in the UK the Financial Services Authority licences banks and some commercial banks, such as the Bank of Scotland, issue their own banknotes in competition with the Bank of England, the UK government's central bank. Some types of entity may be partly or wholly exempt from bank licence requirements and are regulated by separate regulators, e.g. building societies and credit unions. The requirements for the issue of a bank licence vary between jurisdictions but typically incude: 1. Minimum capital 2. Minimum capital ratio 3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or senior officers 4. Approval of the bank's business plan as being sufficiently prudent and plausible. 2.1.10 Banking channels Banks offer many different channels to access their banking and other services: • •

•

•

•

A branch, banking centre or financial centre is a retail location where a bank or financial institution offers a wide array of face-to-face service to its customers ATM is a computerised telecommunications device that provides a financial institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank. Mail is part of the postal system which itself is a system wherein written documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers. Telephone banking is a service provided by a financial institution which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity). Online banking is a term used for performing transactions, payments etc. over the Internet through a bank, credit union or building society's secure website

2.1.11 Types of banks Banks' activities can be divided into retail banking, dealing directly with individuals and small businesses; business banking, providing services to mid-market business; corporate banking, directed at large business entities; private banking, providing wealth management services to high net worth individuals and families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profits. Central banks are normally government owned banks, often charged with quasiregulatory responsibilities, e.g. supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis. 2.1.12 Types of retail banks •

• • • • • •

• • •

Commercial bank: the term used for a normal bank to distinguish it from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses. Community Banks: locally operated financial institutions that empower employees to make local decisions to serve their customers and the partners Community development banks: regulated banks that provide financial services and credit to under-served markets or populations. Postal savings banks: savings banks associated with national postal systems. Private banks: manage the assets of high net worth individuals. Offshore banks: banks located in jurisdictions with low taxation and regulation. Many offshore banks are essentially private banks. Savings bank: in Europe, savings banks take their roots in the 19th or sometimes even 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative, while in others socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and mediumsized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralised distribution network, providing local and regional outreach and by their socially responsible approach to business and society. Building societies and Lanrdesbanks: conduct retail banking. Ethical banks: banks that prioritize the transparency of all operations and make only what they consider to be socially-responsible investments. Islamic banks: Banks that transact according to Islamic principles.

2.1.13 Types of investment banks •

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Investment banks "underwrite" (guarantee the sale of) stock and bond issues, trade for their own accounts, make markets, and advise corporations on capital markets activities such as mergers and acquisitions. Merchant banks were traditionally banks which engaged in trade finance. The modern definition, however, refers to banks which provide capital to firms in the form of shares rather than loans. Unlike venture capital firms, they tend not to invest in new companies.

2.1.14 Both combined •

Universal banks, more commonly known as financial services companies, engage in several of these activities. For example, First Bank (a very large bank) is involved in commercial and retail lending, and its subsidiaries in tax-havens offer offshore banking services to customers in other countries. Other large financial institutions are similarly diversified and engage in multiple activities. In Europe and Asia, big banks are very diversified groups that, among other services, also distribute insurance, hence the term bancassurance is the term used to describe the sale of insurance products in a bank. The word is a combination of "banque or bank" and "assurance" signifying that both banking and insurance are provided by the same corporate entity.

2.1.12 Islamic banking (other types of Banks) •

Islamic banks adhere to the concepts of Islamic law. Islamic banking revolves around several well established concepts which are based on Islamic canons. Since the concept of interest is forbidden in Islam, all banking activities must avoid interest. Instead of interest, the bank earns profit (mark-up) and fees on financing facilities that it extends to the customers.

2.1.13 Size of global banking industry Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a record $74.2 trillion. This follows a 5.4% increase in the previous year. EU banks held the largest share, 53%, up from 43% a decade earlier. The growth in Europe’s share was mostly at the expense of Japanese banks whose share more than halved during this period from 21% to 10%. The share of US banks remained relatively stable at around 14%. Most of the remainder was from other Asian and European countries. . The US had by far the most banks (7,540 at end-2005) and branches (75,000) in the world. The large number of banks in the US is an indicator of its geography and regulatory structure, resulting in a large number of small to medium sized institutions in its banking system. Japan had 129 banks and 12,000 branches. In 2004, Germany, France, and Italy had more than 30,000 branches each—more than double the 15,000 branches in the UK.

2.1.14 Bank crisis Banks are susceptible to many forms of risk which have triggered occasional systemic crises. Risks include liquidity risk (the risk that many depositors will request withdrawals beyond available funds), credit risk (the risk that those who owe money to the bank will not repay), and interest rate risk (the risk that the bank will become unprofitable if rising interest rates force it to pay relatively more on its deposits than it receives on its loans), among others. Banking crises have developed many times throughout history when one or more risks materialize for a banking sector as a whole. Prominent examples include the U.S. Savings and Loan crisis in 1980s and early 1990s the Japanese banking crisis during the 1990s, the bank run that occurred during the Great Depression, and the recent liquidation by the central Bank of Nigeria, where about 25 banks were liquidated. 2.1.15 Challenges within the banking industry The banking industry is a highly regulated industry with detailed and focused regulators. All banks with FDIC-insured deposits have the FDIC as a regulator; however, for examinations, the Federal Reserve is the primary federal regulator for Fed-member state banks; the Office of the Comptroller of the Currency (“OCC”) is the primary federal regulator for national banks; and the Office of Thrift Supervision, or OTS, is the primary federal regulator for thrifts. State non-member banks are examined by the state agencies as well as the FDIC. National banks have one primary regulator—the OCC. Each regulatory agency has their own set of rules and regulations to which banks and thrifts must adhere. The Federal Financial Institutions Examination Council (FFIEC) was established in 1979 as a formal interagency body empowered to prescribe uniform principles, standards, and report forms for the federal examination of financial institutions. Although the FFIEC has resulted in a greater degree of regulatory consistency between the agencies, the rules and regulations are constantly changing. In addition to changing regulations, changes in the industry have led to consolidations within the Federal Reserve, FDIC, OTS and OCC. Offices have been closed, supervisory regions have been merged, staff levels have been reduced and budgets have been cut. The remaining regulators face an increased burden with increased workload and more banks per regulator. While banks struggle to keep up with the changes in the regulatory environment, regulators struggle to manage their workload and effectively regulate their banks. The impact of these changes is that banks are receiving less hands-on assessment by the regulators, less time spent with each institution, and the potential for more problems slipping through the cracks, potentially resulting in an overall increase in bank failures across the United States.

The changing economic environment has a significant impact on banks and thrifts as they struggle to effectively manage their interest rate spread in the face of low rates on loans, rate competition for deposits and the general market changes, industry trends and economic fluctuations. It has been a challenge for banks to effectively set their growth strategies with the recent economic market. A rising interest rate environment may seem to help financial institutions, but the effect of the changes on consumers and businesses is not predictable and the challenge remains for banks to grow and effectively manage the spread to generate a return to their shareholders. The management of the banks’ asset portfolios also remains a challenge in today’s economic environment. Loans are a bank’s primary asset category and when loan quality becomes suspect, the foundation of a bank is shaken to the core. While always an issue for banks, declining asset quality has become a big problem for financial institutions. There are several reasons for this, one of which is the lax attitude some banks have adopted because of the years of “good times.” The potential for this is exacerbated by the reduction in the regulatory oversight of banks and in some cases depth of management. Problems are more likely to go undetected, resulting in a significant impact on the bank when they are recognized. In addition, banks, like any business, struggle to cut costs and have consequently eliminated certain expenses, such as adequate employee training programs. Banks also face a host of other challenges such as aging ownership groups. Across the country, many banks’ management teams and board of directors are aging. Banks also face ongoing pressure by shareholders, both public and private, to achieve earnings and growth projections. Regulators place added pressure on banks to manage the various categories of risk. Banking is also an extremely competitive industry. Competing in the financial services industry has become tougher with the entrance of such players as insurance agencies, credit unions, check cashing services, credit card companies, etc. As a reaction, banks have developed their activities in financial instruments, through financial market operations such as brokerage and trading and become big players in such activities. 2.1.16 Profitability A bank generates a profit from the differential between the level of interest it pays for deposits and other sources of funds, and the level of interest it charges in its lending activities. This difference is referred to as the spread between the cost of funds and the loan interest rate. Historically, profitability from lending activities has been cyclical and dependent on the needs and strengths of loan customers. In recent history, investors have demanded a more stable revenue stream and banks have therefore placed more emphasis on transaction fees, primarily loan fees but also including service charges on an array of deposit activities and ancillary services (international banking, foreign exchange, insurance, investments, wire transfers, etc.). Lending activities, however, still provide the bulk of a commercial bank's income.

In the past 10 years American banks have taken many measures to ensure that they remain profitable while responding to increasingly changing market conditions. First, this includes the Gramm-Leach-Bliley Act, which allows banks again to merge with investment and insurance houses. Merging banking, investment, and insurance functions allows traditional banks to respond to increasing consumer demands for "one-stop shopping" by enabling cross-selling of products (which, the banks hope, will also increase profitability). Second, they have expanded the use of risk-based pricing from business lending to consumer lending, which means charging higher interest rates to those customers that are considered to be a higher credit risk and thus increased chance of default on loans. This helps to offset the losses from bad loans, lowers the price of loans to those who have better credit histories, and offers credit products to high risk customers who would otherwise been denied credit. Third, they have sought to increase the methods of payment processing available to the general public and business clients. These products include debit cards, pre-paid cards, smart cards, and credit cards. They make it easier for consumers to conveniently make transactions and smooth their consumption over time (in some countries with under-developed financial systems, it is still common to deal strictly in cash, including carrying suitcases filled with cash to purchase a home). However, with convenience of easy credit, there is also increased risk that consumers will mismanage their financial resources and accumulate excessive debt. Banks make money from card products through interest payments and fees charged to consumers and transaction fees to companies that accept the cards. The growth in the Indian Banking Industry has been more qualitative than quantitative and it is expected to remain the same in the coming years. Based on the projections made in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan, the report forecasts that the pace of expansion in the balance-sheets of banks is likely to decelerate. The total assets of all scheduled commercial banks by end-March 2010 is estimated at Rs 40,90,000 crores. That will comprise about 65 per cent of GDP at current market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at an annual composite rate of 13.4 per cent during the rest of the decade as against the growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that there will be large additions to the capital base and reserves on the liability side. The Indian Banking Industry can be categorized into non-scheduled banks and scheduled banks. Scheduled banks constitute of commercial banks and co-operative banks. There are about 67,000 branches of Scheduled banks spread across India. As far as the present scenario is concerned the Banking Industry in India is going through a transitional phase. The Public Sector Banks(PSBs), which are the base of the Banking sector in India account for more than 78 per cent of the total banking industry assets. Unfortunately they are burdened with excessive Non Performing assets (NPAs), massive manpower and lack of modern technology. On the other hand the Private Sector Banks are making tremendous progress. They are leaders in Internet banking, mobile banking, phone banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the Indian Banking Industry.

In the Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in the Indian Banking Industry.

2.2 Company Profile: Axis Bank , previously called UTI Bank, was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the dministrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company , The Oriental Insurance Corporation and United Insurance Company Ltd. UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country.P J Nayak is its Chairman and Managing Director. Banks registered office is located in Ahmedabad and its Central Office is in Mumbai. The bank provides 24 hrs banking convenience to its customers through its largest ATM network in the country with 2595 ATMs and network of 608 branches

Head Office:

2.2.1 Institution Information : Axis Bank Limited “TRISHUL” III Floor, Opp. Samrateshwer Temple, Nr. Law Garden, Ellisbridge Ahemedabad – 380006 Gujarat India

Website:

http://www.axisbank.com/

No. of branches

608

No. of ATMs

2595

Customer Care Number

Mumbai (002)67074407, 011-2331 1051 /052/ 067, Chennai 044 – 2855 1515 / 2859 2264,

The erstwhile UTI Bank has changed its name to Axis Bank effective July 30, 2007. This is the first time that a bank has gone in for a brand-change

voluntarily; earlier names of banks have been changed either due to a merger or an acquisition. UTI brand was given in 1994 by its promoters and UTI Bank could use the brand only till January 2008 as per Govt directives. Many unrelated shareholder entities like UTI Technological Services, UTI Investor Services and UTI Securities were carrying the UTI brand. Axis refers to a line of reference, stability and maturity. The new logo of the bank has the same color as the previous UTI logo but now uses the alphabet ‘A’ from the word Axis. The bank is also publicizing the change through campaign titled “Twins both equal”. Axis Bank has business of Rs.102,000 crore with a market capitalization of Rs.21,817 crore making it the fifth largest in India . It has 60 lakh customers and communicating to them the name change would be the prime exercise for the bank. Immediately, the bank will replace signage’s in 8 metro cities while in other 250 cities by September. It is also informing customers about the brand change though Internet and mobile banking, ATM, call centers, newspapers and radio. Even elements like cheque books, welcome kits, and pay orders have been resigned to reflect the new look. Now with a name having universal appeal, the bank would now work towards becoming a multinational bank and diversifying into other financial services like AMC, insurance and restructure operations to reflect a modern approach to banking. However, the bank also has a task in its hand to communicate to the customers and public about its nature as having a UTI name prefixed would have implied that it has been a quasi-government bank. It would also have to educate about its shareholding to further expand itself into the retail business. Axis Bank in India today is capitalized with Rs. 282.65 Crores with 57.05% public holding other than promoters. It has more than 574 branch offices and Extension Counters in the country with over 2428 Axis Bank ATM proving to be one of the largest ATM networks in the country. It commits to adopt the best industry practices internationally to achieve excellence. It has strengths in retail as well as corporate banking. By the end of June 2007, Axis Bank in India had over 60 lakhs debit cards. This is the first bank in India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank customers in all the places across the country where it has presence. 2.2.2 Few milestones of the Axis bank:

Mar. 07:

Axis Bank joins hands with IIFCL to provide leverage for infrastructural projects in the country.

Mar 07:

AXIS Bank comes up with full license bank branch in Hong Kong .

Feb 07:

Finance minister Shri P. Chidambaram introduces Shriram – AXIS Bank Co - Branded Credit Card especially for Small Road Transport Operators (SRTOS).

Aug 06:

AXIS Bank holds the position of being the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market.

Aug 06:

AXIS Bank launches the beneficial scheme of issuance of "Senior Citizen ID Card" in collaboration with Dignity Foundation.

Dec 05:

AXIS Bank adds International Financing Review (IFR) Asia 'India Bond House' award for the year 2005 in its appreciation record.

Jul 05:

AXIS Bank and Visa International launch Mobile Refill facility - Anytime, Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India.

Mar 05:

AXIS Bank gets counted on the London Stock Exchange, raises US$ 239.30 million through Global.

2.2.3 Share Capital of Axis Bank ·

Authorised Share Capital :Rs. 300 Crores

·

Paid Up Share Capital : Rs. 232.86 Crores

2.2.4 Branch Network At the end of April 2008,the Bank has a very wide network of more than 671 branch offices and Extension Counters. The Bank has a network of over 2764 ATMs. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. . 2.2.5 AXIS Axiom An axis is a line of stability around which each planet rotates . The earth’s axis concepts the polar coordinates and impacts everything from our sense of time to the passing of seasons. A bank is akin to the axis of our financial world. In its fundamental role it connects the two poles of the financial system – the savers and the users of money. Of course, it has a much larger role to play, and its

impact is nearly universal – spanning as it does- the individualized needs of an account holder to the institutional requirement of governments. The term Axis represents the bank presence, and signifies the universality of its services. It speaks of the transnational ambitions we nurture . It was a time for renaming and Axis is what the bank today is.  Wide Branch Network including the third largest number of ATMs spanning the country The convenience of 24 * 7 phone and banking facility  Comprehensive range of product offering for the retail and corporate sectors encompassing retail loans, corporate credit, forex, investment banking, depository and investment advisory services  Broad spectrum of clients from individuals and corporates to the central and state governments  Consistently clocked profits and distributed dividends  Steady augmentation of the asset base through increased investments and advances  Growing international presence  The core of all your banking needs delivered 2.2.6 The Axis Banks Products: Priority banking service offers you a host of banking, investment and lifestyle privileges, which will enrich banking experience of customers. As a priority banking customer, a dedicated relationship manager will cater to all customer’s banking needs at the branch. One can enjoy special privileges on saving bank account, such as free pick-up and drop of cheques and cash, monthly account statement, multi-city at Par chequebook anywhere banking facility, free passbook updates etrc. A complimentary priority banking international debit card comes packed with a host of facilities such as free usage at all VISA ATMs in India, Zero fuel surcharge and exciting reward point scheme. The complimentary financial advisory services of the bank will help the customer’s investment needs and decisions. In addition, Priority banking offers some unique concierge assistance services. Priority banking customers also enjoy a host of lifestyle privileges such as invitation to exclusive film screenings, investment conferences, music concerts etc, and special offers pertaining to shopping, dining and travel. Bank is also take care of the special banking requirements of the NRI customers by offering them the Priority Banking – NRI services. Beside this AXIS offers a comprehensive range of innovative products and financial services that would be available to customers. Just some of these are given below – 2.2.7 Easy Access Through Various Channels:

Axis Bank account is accessible through a number of channels. A fast growing network of over 2400 ATM’s backs up an ever increasing nation wide network of more than 500 offices. Customers can also avail telebanking, internet banking (iConnect), and mobile banking facilities. 2.2.8 Term Deposit: Axis bank offer a range of options like reinvestment plan, monthly income and quarterly income schemes, ranging in duration from 15 days to 10 years that enable one to put his saving to work in a manner of his choice. 2.2.9 Locker Facility: Customers can avail of Safe Deposit locker facilities at most of our branches. As a priority banking customer one can enjoy preferential allotment of lockers. 2.2.10 Financial Authority Advisor: Axis bank offer its customers complete personal finance solutions. Through financial advisory services bank understand customers investment requirements and design a tailor-made financial solution to customers. 2.2.11 Online Trading: AXIS bank in alliance with Geojit Financial Services offers you an Online Trading Account, which will let its customers trade in the comfort of home or office either through internet or the phone. 2.2.12 Wealth Advisory Services: Wealth advisory Services from AXIS Bank is focused on the health creation, wealth protection and wealth transmission neet of customers. 2.2.13 Depository Services: AXIS Bank a registered member (Depository Participant) of NSDL, presents DP Services, to cater to requirements of Transfer of shares, Receipt of corporate benefits, Dematerialization and Rematerialization of customers securities, Pledge – Hypothecation of securities, and Freezing of accounts. 2.2.14 Current Accounts: We realize that different businesses need different solutions according to their size, nature and scale of operations. We also understand what you need to add impetus to your business. Our range of Current Accounts comes geared to answer all kinds of business requirements. Each of our Current Accounts has

been customized to ensure efficient management, quick transfers and instant availability of your funds across our network. 2.2.15 Salary Account: Salary Savings Account comes with a host of facilities that give your employees access to the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) on a preferential basis. Making it the perfect incentive for your employees

2.2.16 Retail Loans: AXIS Bank offers products like personal loans, Educational loans, Home Loans, Loans against shares vehicle loans and anything one have dreamed of. 2.2.17 NRI Services: AXIS Bank offer its NRI cutomers a plethora of services customized to their needs, such as an entire bouquet of NRI Deposit Products & Services, free international debit card with a personal accident insurance cover, portfolio 2.2.18 Travel Currency Card: 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 2.2.19 Remittance Card: Money at your doorstep Axis Bank's Remittance Card is meant for people who receive remittances from abroad. It aims to make the procedure of receiving money from your loved ones abroad easy and hassle free. Thereby rendering the age-old instruments like Demand Drafts and Pay Orders obsolete. This card is brought to you 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 you, as the beneficiary of the remitted funds, have access to anytime and anywhere. 2.2.20 Resident Foreign Currency (RFC) Account:

RFC accounts can be opened, held and maintained by a person resident in India with an authorized dealer for depositing eligible foreign exchange funds once the individual has ceased to be a NRI. Citizens of India or PIOs who have been non-residents for a continuous period of not less than one year and have become resident in India on or after 18 April, 1992. 2.2.21 Trust & Saving Account: Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organizations can devote all of their time to their noble motivations. 2.2.22 Cash Management Services: Axis Bank offers a wide range of collection and payment services to meet your complex cash management needs. Payments received from your buyers and made to your suppliers are efficiently processed to optimise your cash flow position and to ensure the effective management of your business' operating funds. The flow of receivables and payables can also be seen through our web solution Above all our quick adaptation of the latest technology differentiates us from the other competing banks. 2.2.23 Payment Of Government Taxes: 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.  Corporation Tax - Tax on Companies and Tax Deducted at Source from Companies  Income Tax  Interest Tax and Expenditure Tax  Gift Tax  Wealth Tax  Fringe Benefit Tax (FBT)  Securities Transaction Tax (STT)  Banking Cash Transaction Tax (BCTT)  Other Tax Deducted or collected at source (TDS or TCS) on salaries of Employees, income from Fixed Deposits, Vendor Payments, Rent, Income from Game Shows or Lottery, etc.  Any other Direct Tax including Advance Tax

Verified by Visa (VBV) is an easy to use, secured online payment service from Axis Bank that lets you shop securely online with your existing Axis Bank Visa Debit Card. This service through a simple checkout process, confirms your identity when you make purchases on the Internet. Through a personal assurance message it also reassures you of the authenticity of the online store.

2.2.24 Debit Cards that can be registered to Verified by Visa Gold Debit Card

International Debit Card

International Debit Card

NRI International Debit Card

Power Salute Debit Card

Priority Debit Card

Smart Privilege Debit Card

Chapter: 3 3.1 INTRODUCTION TO CURRENT ACCOUNTS 3.1.1 What is Current account?  A running account supporting unlimited withdrawals and deposits  A current account is meant for convenience and not to save money 3.1.2 Who needs a Current Account? Businessman, Joint stock companies, Institutions, Public authorities, public corporations etc. Any business that has numerous banking transactions needs a current account 3.1.3 Benefits: 1. Card Convenience: Get your free ATM cum DEBIT Card and have access to the widest network of over 5400 ATMs across the country to withdraw cash, enquire about your balance, etc. Moreover, your card enables you to shop at more than 23,000 Merchant Establishments in India . You can also avail yourself of our International ATM-cumDebit Card which can be used within as well as outside India , at a nominal fee. 2. Easy and Wide Accessibility Transact at your convenience, saving time and cost through SBI internet Banking You can also withdraw cash from Maestro endorsed ATMs and from ATMs of HDFC Bank, UTI Bank, Andhra Bank, Punjab National Bank, Corporation Bank, etc., at a nominal fee. 3. Monitoring Your Account

Monitor and control your funds through SBI Internet Banking or/ and through Passbook/ statement of account facility.Alternatively, access your account by downloading Instant SBI on your computer. 4. Transaction Ease  Unlimited number of payments  Make payments by giving us standing instructions  Remit funds from any part of the country to your account.  Upcountry Cheque Collection facility.

5. Other Facilities:    

Overdraft Facility. Transfer of accounts between our wide network of branches without any charge. Nomination Facility - Available. Low minimum balance requirements

3.1.4 BUSINESS BANKING SERVICES OF AXIS BANK: Axis Bank is committed to creating an easy and comfortable banking environment for its customer’s business. It realizes that different businesses need different solutions according to their size, nature and scale of operations. It also understands what a customer needs to add impetus to his business. Its range of Current Accounts comes geared to answer all kinds of business requirements. Axis Bank brings different kinds of current accounts for different types of businesses. One can select the one that best suits to his business requirements. Axis Bank's Current Accounts come equipped with the following features to give maximum value for your money. Features: Anywhere Banking Banks Current Account allows its customers to bank from all our branches and extension counters. One can deposit cash, withdraw cash, deposit cheques, and issue 'at-par' cheques at any of its branches. Instant Fund Transfer customers can transfer funds instantly between any of banks branches. Funds transfers can be effected online, right from customers desktop, through internet banking services.

Internet Banking Axis Bank presents Corporate iConnect - a unique Net Banking platform for its current account customers. Available with multiple user IDs, depending on your needs. Access your account at any time form anywhere. You can transfer funds to your own accounts or to third party accounts within Axis Bank & Inter Bank covering over 25,000 branches of various banks. Corporate iConnect also permits transaction initiation by one user and approval by another. You can also execute bulk payments like salary and commission across Axis Bank network, right from your desktop. At-Par (Multicity) Chequebook Enjoy the benefits of multicity chequebook with Axis Bank's current accounts. You can issue cheques payable at par at all our branches across the country. Your cheques will be treated as local cheques at more than 375 locations as on January 31, 2008. ATM or Debit Card With every Current Account (for proprietary and partnership concerns), you can avail upto 2 ATM cum Debit cards, which allow you round the clock access to your account from any of all our ATMs all over the country. You can withdraw upto Rs 40,000 a day. Free Monthly Account Statement By courier and daily on email. Mobile Banking Mobile Banking will enable you to bank with us through your mobile phone irrespective of where you are. Phone Banking Phone banking or Tele-banking service can help you access your account from your telephone anytime you want.

3.2 CURRENT ACCOUNT PRODUCTS: 3.2.1 Normal Current Account At a Monthly Average balance of Rs 10,000 this account takes you into the all new world of banking. At-Par Cheque Facility Enjoy the benefits of payable 'At-Par' chequebook at very nominal charges. Issue cheques payable at par at any of our branches / outlets, presently 575 across the country. Inter Branch Cash Deposit Facility Deposit cash upto Rs. 50,000 per day at a remote branch for instant credit into your account. Home Branch Cash Withdrawal Free upto 50 transactions for unlimited amount per month. Local Cheque Deposit Facility Deposit cheques at any Axis Bank branch and get the credit into your account. Demand Drafts Avail Demand Drafts at very nominal charges. You can issue demand drafts at any of our branches / outlets, presently 575 and a wide network of correspondent bank locations. Outstation Cheque Collection Avail outstation cheques.

3.2.2 Business Advantage Account

As your business grows, so do your banking requirements. For that you need an account that can keep pace with your growth. Business Advantage Account, at a Monthly Average balance of Rs 25,000 is just right for you. At-Par Cheque and Local Cheque Deposit Facility Issue cheques payable 'At-Par' and deposit cheques for local clearing at any of our branches / outlets, presently 575 across the country. This facility is free for 10 transactions and upto Rs 10 lacs per month and at nominal charges beyond free limit. Pay Orders Free 3 Pay Orders per day from your branch. Inter Branch Cash Deposit Facility Deposit cash upto Rs. 75,000 per day at a remote branch for instant credit into your account. Intercity Cash Withdrawal Facility Cash withdrawal upto Rs 2,00,000 per day at a remote branch. Home Branch Cash Withdrawal Free 75 transactions per month for unlimited amount. Demand Drafts Free 10 Demand Drafts upto Rs 3 lacs per month, payable at other Axis Bank locations. Free Fund Transfer Facility 12 transactions upto Rs 10 lacs per month. Outstation Cheque Collection Avail outstation cheques. 

3.2.3 Business Classic Account: Business Classic Account from Axis Bank helps you co-ordinate your finances perfectly with total control on your funds. So enjoy the power. All at a Monthly Average Balance of Rs 1 lac. At-Par Cheque Facility Free 20 transactions upto Rs 50 lacs per month for issue of 'at-par' cheques and deposit for local collections.

Pay Orders Free 5 Pay Orders per day from your branch Inter Branch Cash Deposit Facility Deposit cash upto Rs. 1 lacs per day at a remote branch for instant credit into your account. Intercity Cash Withdrawal Facility Cash withdrawal upto Rs 3 lac per day at a remote branch. Home Branch Cash Withdrawal Free 100 transactions for unlimited amount. Demand Drafts Maximum 10 Demand Drafts per day free. Free Outstation Collection On Axis Bank network with faster realization. Only out of pocket expenses to be recovered. Fund Transfer Free 20 transactions upto Rs 50 lacs per month across Axis Bank network. Almost Instantaneously

3.2.4 Business Privilege Account: Enjoy the host of privileges with our Business Privilege Account. If you can maintain Rs 5 lacs monthly average balance, opt for the great facilities on offer with this account. Demand drafts at correspondent bank locations will be available at very nominal charges. Pay Order Facility Free 10 Pay Orders per day from your branch. Demand Drafts Maximum 12 Demand Drafts per day free. Inter Branch Cash Deposit Facility Upto Rs. 2 lacs each day at a remote branch. Intercity Cash Withdrawal Upto Rs 3 lacs per day at remote branch.

Home Branch Cash Withdrawal Free 100 transactions for unlimited amount. Free At-Par Cheque Facility and Free Local Cheque Collection 40 transactions upto Rs 90 lacs per month. Free Fund Transfer 40 transactions upto Rs 1..5 crores per month across Axis Bank locations all over the country. Free Outstation Collection On Axis Bank network with faster realization. Only out of pocket expenses to be recovered.

3.2.5 Club 50 Current Accounts: At a half yearly average balance of Rs. 50 lacs this current account smoothly fulfills your daily banking requirement. It gives you the freedom to concentrate on what you do best - growing your business and attaining new heights of success. Salient Features Enhanced Transactional Benefits Enhanced product free limits & transactional limits. Customized Cheque Stationery with Hologram Customized Cheque stationery with Hologram for additional safeguard of banking transactions. Lifestyle Benefits / Privileges* Enjoy lifestyle benefits / privileges like subscriptions to magazines and books. Free Doorstep Banking Deposit cash/cheques, withdraw cash or have demand drafts/pay orders delivered at your office free of cost. Free DD's on Non Axis Bank locations

Avail the facility of free demand drafts on Non Axis Bank locations upto a certain limit. Free International Business Gold Debit Card / Gold Plus Credit Card* Get free International Business Gold Debit Card / Gold Plus Credit Card to enjoy a host of benefits 

3.2.6 Channel One: Channel One is Axis Bank's Premium Current Account with Minimum Monthly Average Balance requirement of Rs 10 lacs. Doorstep Banking Doorstep Banking and designated relationship manager are the salient features which include services like free cheque and DD pick up, PO delivery and cash pick up or delivery at nominal cost. Cheque Protection Facility Cheque protection upto Rs 50,000. Inter Branch Cash Deposit Facility Deposit cash upto Rs. 2 lacs per day. Free Cash Deposit Upto Rs. 100 lacs per month at Home branch. Free Anywhere Banking Without limit. Free Fund Transfers Without limit. Pay orders and Demand Drafts 15 Pay Orders & 15 Demand Drafts per day free..

3.2.7 Business Global Current Account: A current account for Exporters / Importers that satisfies their banking needs for both domestic & foreign transactions.

Salient Features Zero Balance Current Account To facilitate your domestic transactions, Business Global brings you a zero balance current account. Rebates Enjoy rebates on current account charges and forex services*. Avail specialised Forex services with least cost    

Export / Import Bill Collection Foreign Inward / Outward Remittance Foreign DD Issue Foreign Cheque Collection

Inland Demand Drafts / Pay Orders Enjoy 10 free DDs per day and 5 free POs per day of unlimited amount. Enhanced transaction limits Avail the facility of higher free limits for funds transfer and Anywhere Banking. Travel Currency Debit Card 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.

3.2..7 Current Account for Govt Organizations: The Government Organisations/Bodies (Central Govt./State Govt./Local Govt./Autonomous) are offered Current Accounts with no Minimum Balance Stipulation and host of other services without any charges as under. Account Management Services:  Current Account with No Minimum Balance Stipulation.  Free Anywhere Banking Facility at all Axis Bank Locations.  Free Cash Deposit Facility.

 No Chequebook Issue Charges. Payment Services: Free At Par Payable Cheque Facility with no limit on the amount of the cheque at all Axis Bank centres across the country. The Multi-city At Par Cheque book enables the cheques to be treated as local cheques across any of the centres across the country where Axis Bank is present.  Free Instant Online Funds Transfer Facility to Axis Bank Beneficiary Accounts.  Free Demand Drafts/ Pay Orders on all Axis Bank Locations.  Free Demand Drafts on Non-Axis Bank Centres, on a case to case basis. Collection Services: Free Local Cheque Collection Facility - Deposit cheques at any Axis Bank Branch and get the credit into the Account as per local clearing cycle. Free Outstation Cheque Collection Facility - Collection of outstation cheques drawn on any Axis Bank location with assured faster realization (only out of pocket expenses to be charged). Other Value-Added Services  Account Statements: Monthly Account Statement delivered at doorstep as well as Daily Account Statement through e-mails.  Internet Banking Facility - Corporate iConnect.  Delivery & Pick-up of Cheques and Cash from Office premises

3.3 Current Account for Banks: One of the fastest growing New Generation Private Sector Banks presently having more than 575 branches / outlets and 2,500 plus ATM's which are interconnected to each other on a Real Time Online mode giving you the convenience of having a bank account in any of the more than 330 locations where we have our presence. We have a special relationship with over 650 Co-operative Banks/Private Sector Banks/MNC Banks/Public Sector Banks across the country. We have a dedicated business unit to take care of the banking requirements of these Banks.. We offer the following services under Correspondent Banking arrangement.

       

Payable at Par-Cheque Drawing Arrangement Up Country Cheque Collection (UCC) - Axis Bank Locations Remote Pay Outs Constituent's Subsidiary General Ledger Account Corporate Demat Account Foreign cheque collection Collateralized Borrowing & Lending Operations (CBLO) Trading in Government & Corporate securities

3.3.1 Current Account for Builders & Real Estate: At a monthly average balance of Rs. 5 lacs this account comes loaded with special facilities and benefits, most appropriate for your businesses. Salient Features Home Branch Cash Deposit Deposit cash upto Rs. 1.30 crores free per month at your home branch. Non Home Branch Cash Withdrawal Free cash withdrawal upto Rs. 5 lakhs per day from any branch location. Free Anywhere Banking You can deposit cheques / transfer funds at any of our branches / outlets, presently 575, absolutely free of cost and you will get the credit as if these transactions were done at your home branch. Free Doorstep Services Free local Cash / Cheque pickup and delivery of cash upto Rs. 2 lacs per day. Cluster facility A facility, which allows you to maintain the required balances in your accounts in totality, without the compulsion of maintaining the required balances in individual accounts.

Zero Balance account for Vendors & Suppliers: A facility, which allows seamless settlement of funds between you & your vendors & suppliers i.e. architects, cement suppliers, iron & steel, construction material, construction equipments, paint dealers, sub contractors, etc.. Franking facility Enjoy the facility of Doorstep delivery of franked documents at select authorized centres. Customized Cheque Printing Customized Cheque Printing at a nominal cost.

3.3.2 Capital Market Current Account: The current account product for brokers comes with wider choice of variants and you may choose the one variant, which suits you the best.     

CAP Normal: MAB - Rs. 10,000/CAP Advantage: MAB - Rs. 25,000/CAP Business Classic: MAB - Rs. 1,00,000/CAP Business Privilege: MAB - Rs. 5,00,000/CAP Channel One: MAB - Rs. 10,00,000/-

Salient Features Free anywhere banking Irrespective of variant you choose you can pay / deposit cheques at any of our branches / outlets, presently 575 absolutely, free of cost and you will get the credit as if these transactions were done at your home branch. Free Funds Transfer Instant Funds Transfer across all locations absolutely free. Payments through fastest mode Flat charge of Rs. 50/- per outward RTGS transfer. Inward remittance to your account is free. Customized Cheque Printing

Customized Cheque printing at nominal cost. You may also avail the benefits of our robust technology for bulk printing of your payment instruments with least turn around time.

3.4 Krishi Current Account: The product with half yearly average balance requirements captures the seasonality nature and is packed with host of powerful features and incentives for higher balances. Salient Features Half Yearly Average Balance There are different Half Yearly Average Balances (HABs) for different category of locations. (Urban - Rs. 10,000/-, Semi Urban - Rs. 5,000/-, Rural - Rs. 2,500/-) Anywhere Banking You can deposit cheques / transfer funds at any of our branches / outlets, presently 575, absolutely free of cost and you will get the credit as if these transactions were done at your home branch. Rebate for Higher balances The product comes with reward in the form of rebate on transaction charges, if you maintain higher balances. Higher the balances you maintain higher is the scale of rebate. At Par (Multicity) Chequebook Enjoy the benefits of multicity chequebook with Axis Bank's current accounts. You can issue cheques payable at par at all our branches across the country.. Free Fund transfer between Krishi accounts

Opening accounts of wholesaler / retailer and farmer at any location would also help you for instant funds transfer without any cost.

3.5 Comparative Analysis of Current Accounts Features Accounts Balance Require Non Maintenance Charges

Free Limit

Charges above free limit Home branch limit

Axis Bank Normal 10000 Monthly

HDFC Bank Regular 10000 quarterly

ICICI Bank Standard 10000 quarterly

IDBI Basic 10000 quarterly

Rs. 600/- per month if MAB is 5000-10000. Rs 300/- per month if MAB is less than 5000.

Rs. 750/- per quarter if AQB<10000/-

Rs 750/- per quarter AQB<=5000/-. Rs. 600/- per quarter if AQB>5000/but <=7500/-. Rs. 450/- per quarter if AQB between 750010000/-. Home Branch Cash Deposit Limit Rs 10000/- per Rs. 2 lacs. per Up to 50000/month month or 25 per month transaction. Which is lower. Rs. 2/- per Rs. 2 per Denomination thousand. thousand. Wise Min. Rs. 50/Cash Withdrawal No limit. No limit No limit (Free up to 50 transactions per

Rs 565/- per quarter if AQB is 10000-5000/Rs. 1125/- per quarter if AQB is less than 5000/-.

Rs 1 lacs. per month Rs. 2.20/- per thousand. Min. Rs. 60/No limit

Charges above free limit Inter branch limit Transactions Charges above free limit On branch DD

Pay Order

Transactions Cheque Book Charges

Any where banking

Cash pick up facility Cheque pick up facility RTGS

min.) Rs. 25/- per transactions Max. withdrawal Rs. 1 lac. per day. Rs. 2/- per thousand

Free

Free

Rs. 50000/- per day

Rs. 50000/- per day

Rs. 2/- per thousand

Rs. 2/- per thousand

Demand Draft & Pay Order Rs. 1.50/- per Up to 50000/Rs 1.50/- per thousand Rs 40/- per DD thousand. Rs. 25/- for 50000100000/-. Rs 1/- per As above. Rs 1/- per thousand. thousand. Min. Rs. 50/ATM (Cash Withdrawal) Free up to 4 Free Free withdrawals per day. Rs. 2 per leaf. Rs. 2/- per leaf. Up to 200 cheques leaves issued to customer per month. Above that Rs. 2/- per leaf. Payable at par Payable at par Available at is cheques. cheques. rs. 1/- per Cheque would thousand. be treats as Min. rs 25/-. local. NA NA Rs. 1.30/- per visit limit rs 2 lacs. NA NA Rs 1.30/- per visit limit rs 2 lacs. RTGS & NEFT 0.25% of the Collection free. Payments Rs amount. Payment Rs. 25/- per Min. Rs. 50/100/- per thousand. Max. Rs. transaction 1500/-

Free Rs. 100000/per day Rs. 2.75/- per thousand. Min. 60/- rs Rs. 1.25/- per thousand.

Rs. 1.25/- per thousand Rs. 25000/- per day. First cheque book free additional Rs. 2.50/- per leaf.

Available at is rs 2.50/- per thousand. NA NA

Collection free. Payments Rs 1.50/- per thousand.

NEFT

Free

Free

Collection free. Payments Rs 1.50/- per thousand.

Free

Rs. 50/- for less than 2 lacs. Rs. 100/- for more than 2 lacs. Free

Internet Banking Mobile Banking Account Statement Charges

Free Free

Free

Free

Free

Free

Free

Free

Free

Features

Axis Bank Business Classic Rs. 1 lacs. Monthly

HDFC Bank Bank Plus

ICICI Bank Gold

IDBI Bronze Plus

Rs. 1 lacs. Quarterly

Rs. 1 lacs. Quarterly

Rs. 1 lacs. Quarterly

Rs. 600/- per quarter if AQB<=50000/Rs 1500 per quarter if AQB<100000 but >50000

Rs. 300/- if AQB<50% Rs. 2250/- if AQB is between 50%75%. Rs. 10500/- if AQB>1 lacs. Up to Rs. 8 lacs. Per month

Between 1 lac50000/- is Rs. 2805/- per quarter Less than 50000/- is Rs. 4530/- per

Cash Deposit Limit

Rs. 800/- per month if MAB is between 50000/Rs. 1200/- per month if MAB is less than 50000 Rs. 10 lacs. Per month

Charge above free limit

Rs. 2.50/- per 1000/-

Denomination wise

Inter Branch Free Limit Charge above free limit

Nil

Rs. 2.20/- per 1000/Min. Rs. 60/Nil

Accounts Balance Maintenance Non Maintenance Charges

Home Branch

Rs. 4.50/- per 1000/-.

Up to Rs. 10 lacs. Per month or 50 transaction. (which ever is lower) Rs. 2/- per 1000/Min. Rs.50/Rs. 1 lacs. Per day Rs. 3/- per 1000/-.

Nil

Denomination wise (charges plus Rs. 2 per 1000/-) Cash Withdrawal Limit No Limit Free Free

Free

Rs. 6 lacs. Per month

Max. Rs. 20000/- per day Charge Free

Limit Inter Branch Limit

Transaction charges Home branch DD

Pay Order

Inter Branch DD

ATM (cash withdrawal)

Cheque Book Charges

Any where banking

Free up to 100 transaction Max. withdraw Free up to 50000/- per day Rs. 1 lac. Per limit Rs. 3 lacs. 50000/- per day day Per day Free up to 4 per transaction Rs. 2/- per Rs. 2/- per Rs. 2/- per Rs. 2.75/- per 1000/1000/1000/1000/Min. Rs. 25/Min. Rs. 50/Demand Draft & Pay Order Free up to 10 Free up to 50 At location A Free up to Rs. 5 DDs per day DDs per month. free. lacs. Per day Above that Rs. Above that Rs. At location B Above that Rs. 25/- per 25/- per free up to Rs. 1/- per instrument instrument 10 lacs. Per day instrument Above that Rs. Min. Rs. 60/0.50/- per 1000/Min. Rs. 30/per instrument 5 POs per day Free up to 50 Free Free free POs per month. Above that Rs. Above that Rs. 25/- per PO 50/- per PO Rs. 1.50/- per Rs. 2/- per Rs. 1.50/- per Free up to Rs. 1 1000/1000/1000/lac. Per month Min. Rs. 25/Min. Rs 50/Min. 40/- per Above that Rs. per DD per instrument instrument 2.25/- per 1000/Min. Rs. 60/Free Free Free Limit Rs. Domestic Rs. 50000/- per day 20/International Rs 110/-. Up to 100 300 cheque Up to 500 3 cheque book leaves per leaves per cheque leaves per quarter free month Rs. 2/month per month. Additional Rs. leaf Beyond it Rs. Above that Rs. 2.25/- per leaf Above that Rs. 2/- per leaf 2/- per leaf 5/- per leaf Rs. 1/- per Fund transfer Location at A Clearing and 1000/-. free free, at B fund transfer Min. Rs. 25/Clearing location free up free up to 60 transaction free to 40 lacs. Per lacs.

up to 100 lacs. Per month. Above that Rs. 0.50/- per 1000/Min. Rs. 25/Rs. 300 per month RTGS & NEFT Free

month Above that Rs. 0.50/- per 1000/Min Rs. 25/-

Above that Rs. 1/- per 1000/Min. Rs. 60/-

Free once a day

NA

Rs. 0.25/- per 1000 Min. Rs. 250/per transaction Max. Rs 1500/-

Inward transaction free Outward Rs. 1.50/- per 1000/Min. 100/Max. 1500/Inward transaction free Outward transaction Rs.25/- per transaction

Cash pick up

NA

RTGS

0.25% of amount

NEFT

Free

Free

Mobile banking Internet banking Accounts Statement

Free Free

Free Free

Rs 50 for transaction value of less than 2 lacs. Rs. 100/- for transaction value of Rs. 2 lacs.and above Free Free

Free

Free

Free

Features

Axis Bank Privilege Rs 5,00,000/monthly

ICICI Bank Platinum Rs. 5,00,000/quarterly

IDBI Gold 5,00,0000/quarterly

Rs 1200/- per month if MAB is between rs 2,50,000/- & rs 5 lacs Rs 1600/- per month if MAB is less than rs 2,50,000/-

If QAB<=50% Rs 10,000/- per quarter If QAB>50% but <=75% Rs 7500/- per quarter If QAB>75% but <100% Rs

Between rs 5-4 lacs – rs 2,245/per quarter Less than rs 4 lacs- rs 2 lacs – rs 3,365 per quarter Less than rs 2 lacs – rs 1 lacs

Min account balance required Non Maintenance Charges

Free Free Free

5000/- per Quarter

Home branch free limt Charges above free limit Interbranch free limit Charges above free limit

Home branch limit

Transaction Charges Interbranch limit

Transaction charges

On branch DD

Cash Deposit Limit Rs. 30 lacs. per Up to rs month 25,00,000/- per month, Rs 2 per rs Denomination 1000/wise charges as below Nil Nil Rs 4.50 per rs Denomination 1000/wise charges as Rs 100 per below plus rs transaction 2/- per rs 1000/(at the time of deposit) Cash Withdrawal Limit No limit No limit for self (free up to 100 cheques transactions per month) Above free Free limit rs 25 per transaction Max Only for self withdrawal cheques – limit rs 3 lacs specified per day process to be followed Rs 2 per rs Rs 2/- per rs 1000 1000/- for amount above rs 50,000/- per day Demand Draft & Pay Order Free up to 12 At category A DDs per day location- Free Above that rs At category B 25 per day location- free

-- rs 4,530 per quarter Less than rs 1,00,000 – rs 5,615 per quarter Rs 40 lacs per month Rs 2.20/- per 1000/(min rs 60) Nil Rs 4.50 per 1000/min rs 60 (Max up to rs 50,000/allowed)

1 lac per day

Rs 2..75 per 1000/- for amount above rs 1 lac (min rs 60) Free

On branch PO

Non branch DD

ATM (cash withdrawal ) Cheque book charges

Anywhere banking (Clearing & transfer)

10 Pos per day free Above that rs 25 per DD Rs 1.50/- per 1000 min Rs 50 per DD

Up to 100 leaves per month rs 2 per leaf Above 100 leaves per month rs 5 per leaf Free up to rs 1.50/- crore per month Rs 0.30/ rs 1000/- above free limit

Cash pick up

NA

Cheque pick up

NA

upto rs 15 lac per day Above that rs 0.50/Per rs 1000/Min rs 30/- per instrument Free

Rs 1.50/- per rs 1000/- min rs 40/- per instrument

Upto 500 cheque leavesRs 2/- per leaf More than 500 cheque leavesRs 5/- per leaf

Payment FREE at A location At B locationfree up to 80 lacs per month Above that rs 0.50/- per rs 1000/- min rs 25/- per transaction Rs 130/- per visit Rs 2 lac per day at base branch only Once a day cheque pick up free

Free

Free up to rs 30 lacs per month Above that rs 2.50/- per 1000/Rs 50,000 per day 5 cheque books per quarte Free Additional leaf at rs 2.25 per leaf.

Clearing & transfer – free up to rs 3 crore Above that rs 3 crore rs 3 per 1000/( min rs 60)

NA

NA

RTGS

NEFT

Mobile Banking (day end balance) Internet banking Account statement

RTGS & NEFT 0.25% of the Rs 0.25/- per rs amount 1000/- subject (min 50, max to min of rs 1500) 250/- per transaction and max of rs 1500/- per transaction Free Rs 50/- for transaction value of less than rs 2,00,000/- & rs 100/- for transaction value of rs 2,00,00,000/and above Free Free

Free

Free

Free

Free

Inward transactionFree Outward rs 1.50 per 1000/(min rs 100 & max rs 1500) Inward transactions Free Outward rs 25/per transaction

Free

Free

3.6 BUSINESS BANKING : GROWTH IN 2008 Business banking continued to focus on offering the best in transactional banking services by leveraging the Bank’s strengths in terms of network and technology. The bank has consistently focus on procuring low-cost funds by offering a range of Current Account products across all segments covering corporates, institutions, Central and State Government Ministries and Undertakings as well as small business customers. Cross selling of transactional banking products to develop account relationship, aided by product innovation and a customer centric apporoch has borne fruit in the form of growing current account balances and increasing realization of transaction banking fee. Sourcing of current account deposits continued to be the focus area and as on 31 st March 2008, current account balances stood at Rs. 11,304 crores a year earliar, refleting a year

on year growth of 77%. During the year the bank sourced 1,38,765 new current accounts against 97,857 accounts the previous year. There was a greater focus on the acquisition of high value current accounts, thus accelerating the pace of growth in current account balances. Additionally, the focus was also to understand the requirements of various business segments and thereby introduce segment based current account products for effectively targeting the diverse requirements of different segments. On a daily average basis, current accounts grew to a level of Rs. 11,834 crores in 2007-08 against Rs. 7,193 crores during the last year.

3.7 FINANCIAL HIGHLIGHTS 2008  Profit after tax up 62.52% to Rs. 1,071.03 crores  Net interest income up 76.07% to Rs. 2,585.35 crores  Fee & other income up 65.91% to Rs. 1,367.75 crores  Deposits up 49.06% to Rs. 87,626.22 crores  Demand deposits up 70.84% to Rs. 40,026.99 crores  Advances up 61.79% to Rs. 59,661.14 crores  Retail assets up 52.24% to Rs. 13,591.68 crores  Network of branches & extension counters increased from 561 to 671  Total no of ATMs went up from 2341 to 2764  Net NPA ratio as a percentage of net customer assets down to 0.36% from 0.61%  Earning per share (basic) increased from Rs. 23.50 to 32.15  Proposed dividend up from 45% to 60%  Capital adequacy ratio stood at 13.73% as against the minimum regulatory norm of 9%

3.8 Financial Position Of the Bank

Balance Sheet Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Mar ' 04

357.71 2.19 8,410.79

281.63 8.98 3,111.60

278.69 13.44 2,593.50

273.80 13.42 2,134.39

231.58 1.63 904.84

87,626.22 96,396.91

58,785.60 62,187.81

40,113.53 42,999.16

31,712.00 34,133.60

20,953.90 22,091.95

1,384.70 590.33 794.37

1,098.93 450.55 648.38

898.68 345.33 553.34

764.78 261.98 502.80

593.58 184.65 408.93

Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity shares outstanding (Lacs)

128.48 33,705.10

24.82 26,897.16

14.37 21,527..35

15.64 14,274.95

26.22 7,792.76

2,784.51 7,556.90 -4,772.38 29,855.57

1,892.07 5,873.80 -3,981.73 23,588.62

1,679.98 4,051.03 -2,371.05 19,724.02

2,071.38 1,828.68 242.70 15,036.08

896.10 1,530.46 -634.36 7,593.55

94,598.40 3577.10

67,744.86 2816.31

45,043.14 2786.91

23,441.83 2737.96

16,802.75 2315.81

Profit & Loss Account

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Mar ' 04

8,750.68

5,461.60

3,594.46

2,299.23

2,115.52

670.25 74.41 1,551.27 2,295.92 2,034.80 13.86 2,048.66 4,419.96 158.11 1,890.54 734.86 1,086.21 -15.18 1,071.03 2,100.10 251..64

381.35 29.62 864.23 1,275..19 1,193.09 21..24 1,214.32 2,993.32 111.86 1,102.46 418.82 661.94 -2.91 -31.80 627.23 1,358.26 148.79

240.20 17.05 575.74 833.00 950.90 6.34 957.24 1,810.56 92.19 865.05 246.35 486.78 -1.70 485.08 682.49 112.55

176.85 11.47 302.21 490.53 615.71 34.52 650.24 1,192.98 81.58 568.66 180.03 326.17 -2..39 10.80 334.58 516.68 87.75

121.25 10.81 468.82 600.88 493.20 1.44 494.64 1,021.45 61.89 432.75 177.52 272.88 -1.49 6.93 278.31 400.78 65.31

Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend

Preference dividend Dividend tax Retained earnings

1,848.47

1,209.47

569.94

428.93

335.47

Cash Flow

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Mar ' 04

Profit before tax

1,646.27

996.24

731.30

503.81

429.62

Net cash flow-operating activity

5,960.45

5,295.53

240.17

4,334.19

2,177.38

Net cash used in investing activity

-4,702.52

-3,655.58

-2,097.47

-5,829.62

-190.94

Net cash used in fin. activity

4,325.79

1,637.01

996.21

1,108.22

107.06

Net inc/dec in cash and equivalent

5,585.94

3,276.46

-861.09

-387.20

2,093.50

Cash and equivalent begin of year

6,918.31

3,641.84

4,502.94

5,663.21

3,569.71

Cash and equivalent end of year

12,504.24

6,918.31

3,641.84

5,276.01

5,663.21

Ratios Particular Per share ratios Adjusted EPS (Rs) Adjusted cash EPS (Rs) Reported EPS (Rs) Reported cash EPS (Rs) Dividend per share Operating profit per share (Rs) Book value (excl rev res) per share (Rs) Book value (incl rev res) per share (Rs.) Net operating income per share (Rs) Free reserves per share (Rs) Profitability ratios Operating margin (%) Gross profit margin (%) Net profit margin (%) Adjusted cash margin (%) Adjusted return on net worth (%) Reported return on net worth (%) Return on long term funds (%) Leverage ratios Long term debt / Equity Total debt/equity Owners fund as % of total source Fixed assets turnover ratio Liquidity ratios Current ratio Current ratio (inc. st loans) Quick ratio

Mar ' 08

Mar ' 07

Mar ' 06

Mar ' 05

Mar ' 04

30.37 34.79 29.94 34.36 6.00 56.88 245.13 245.13 244.63 208..03

23.50 27.48 23.40 27.37 4.50 42.36 120.49 120.49 193.93 86.60

17.47 20.77 17.41 20.71 3.50 34.12 103.06 103.06 128.98 75.38

11.91 14.89 12.22 15.20 2.80 22.49 87.96 87.96 83.98 54.08

11.78 14.46 12.02 14.69 2.50 21.30 49.07 49.07 91.35 20.84

23.25 21.44 12.22 14.19 12.38 12.21

21.84 19.79 12.01 14.11 19.50 19.42

26.45 23.88 13.47 16.07 16.94 16.88

26..77 23.23 14.33 17.47 13.54 13.89

71.17

120.06

88.56

70.55

9.99 9.09 6.32

17.32 5.45 4.97

13.97 6.68 4.00

13.17 7.05 3.01

18.44 5.14 3.56

0.36 0.02 9.23

0.32 0.02 7.39

0.41 0.03 6.52

1.13 0.06 11.55

0.58 0.03 9.17

23.31 20.38 13.14 15.81 24.01 24.49 129.51

3.9 Graphic Presentation of the Ratios

1.2 1 0.8 0.6 0.4 0.2 0 Mar, 08

Mar, 07

Mar,06

Mar,05

Mar,04

Chart shows the Current Ratio of five years

14 12 10 8

Quick Ratio

6 4 2 0 Mar, 08

Mar, 07

Mar, 06

Mar, 05

Mar. 04

Chart Shows the Quick Ratio of five years

7 6 Mar, 08 Mar, 07 Mar, 06 Mar, 05 Mar, 04

5 4 3 2 1 0 Mar, 08 Mar, 07 Mar, 06 Mar, 05 Mar, 04 Chart shows the dividend per share of five years

18.44

9.99

17.32 13.17

13.97

Char shows the ratio between debts and equity

Mar, 08 Mar, 07 Mar, 06 Mar, 05 Mar,04

3.10 FINANCIAL RESULTS: Axis Bank posts strong Q4 results, declares 60 percent dividend: India's banking major, Axis Bank announced strong fiscal results, posting a net profit to Rs.1071.03 crore ($267.75 million), a year-on-year (YoY) growth of 62.52 percent , from Rs.659.03 crore ($164.75 million). For the fourth quarter, the net profit increased 70.56 percent to Rs.361.40 crore ($90.35 million) from Rs.211.89 crore ($52.97 million) a year earlier, on loan growth and fees from advising clients, the bank said. The private sector lender said its revenue for the year ended March 31, 2008, including interest revenue, rose to Rs.8800 crore ($2.2 billion) from Rs.5472 crore ($1.368 billion). On a stand-alone basis, its interest grew 53.61 percent to Rs.7005 crore ($1.75 billion) from Rs.4560 crore ($1.14 billion) earned during the previous corresponding year. The total income for the quarter ended March 31, 2008 stood at Rs.2571.90 crore ($642.97 million) as compared to Rs.1642.61 crore ($410.65 million) during the same period a year ago. The bank's net interest income , the difference between what it paid for funds and what it earned from lending, rose 88.72 percent to Rs.828.43 crore ($207.10 million) in the fourth quarter, from a year earlier. Earnings per share (EPS) for the whole fiscal year ended March 31, 2008, was Rs.31.31 up from Rs.22.79, a YoY growth of 37.38 percent.

3.11 RECOMMENDATIONS: As an short term experience with AXIS – BUNDI Branch it is very difficult to put forward some recommendation, as the brand like AXIS is already enriched in its management and services channels. Yet, being student of management I would like to propose some thoughts as with expected acceptance and not to be taken as personal notion. Innovate products – as with low cost and less risk funds. Marketing through promotion tools as print and visual media as followed in the campaign of promotion. Targeting immigration consultancy offices and educational institutes. Shortening of process time. Maintain the brand value. Exposure provided to the trainees must be continued. Boosting more social and Environment friendly activities as presently followed. Arrange presentations and seminars in Business schools. Enhance more access to middle income group as it compose maximum share of population of Bundi. Design products and schemes which are very youth oriented.

3.12 REFRENCES :  www.axisbank.com  www.asianbanker.com  www.ibtimes.com  www.labnol.org  www.icici.com  www.idbi.com  www.hdfc.com  www.axisbankservices.html  finance.indiamart.com  en.wikipedia.org  Axis bank’s brochures  14 th annual report