Final Project - Nikhil Warade

CHAPTER – 1 INTRODUCTION OF MARKETING INTRODUCTION OF MARKETING The essence of marketing is an exchange or a transaction, intended to satisfy human needs or wants. That is marketing is a human activity directed at satisfying needs and wants, through an exchange process. A demand is a want for which the consumer is prepared to pay a price. A want is anything or a service the consumer desires or seeks. Wants become demands when backed by purchasing power. A need is anything the consumer feels to keep himself alive and healthy. A transaction consists of a value between two parties. The aim of marketing is to make sales in order to earn reasonable profit for the producer.

DEFINITION "Marketing includes those business activities which are involved in the flow of goods and services from production to consumption."

OBJECTIVES : 1.

Marketing is a continue process, It is an going process.

2.

To develop the marketing field.

3.

To develop guiding policies and their implementation for good result.

4.

To suggest solutions by studying the problems relating to marketing.

5.

To find sources for further information concerning the market problems.

6.

To take appropriate actions in the course of actions.

1

IMPORTANCE OF MARKETING 1.

Marketing is a connecting link between the consumer and the producer.

Marketing process brings new and new items to retail shops, from where the consumers can have them. 2.

Marketing helps in increasing the living standard of people. Because of mass

production, costs of manufacturing and marketing have come down. These facilitate the fixing of cheaper rates and are a boon to the society. Thus, reduction in price will result in a higher standard of living. 3.

Marketing helps to increase the nation's income. Efficient system of marketing

reduces the cost to the minimum; this in turn lowers the prices and the consumer's purchasing power increases. This will increase the national income. 4.

Marketing removes the imbalances of supply by transferring the surplus to

deficit areas, through better transport facilities. 5.

Marketing includes all activities in the creation of utilities-form, place, time

and possession.

CHAPTER – 2 BANKING IN INDIA 2

BANKING IN INDIA Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the " The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to from the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

A)

History : Without a sound that and effective banking system in India it can not have a

healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. The first bank in India, though conservative, was established in 1786 till today, the journey of Indian Banking system can be segregated into three distinct phases. They are as mentioned below : 

Early phase from 1786 to 1969 of Indian Banks.



Nationalization of Indian Banks and up to 1991 prior to Indian Banking sector

Reforms. 

New phase of Indian Banking system with the advent of Indian Financial of

Banking sector Reforms after 1991.

B)

Nationalization & Liberalization: 3

By the 1960 the, Indian banking industry has become an important tool to Facilitate the development of the Indian economy. At the same time, it has emerged as a large employer and a debate has ensued about the possibility to nationalize the banking industry. Indira Gandhi, the then Prime Minster of India expressed the insertion of the GOJ in the annual conference of the All India Congress Meeting in a paper entitled stray thoughts on Bank Nationalization. In the early 1990 the then Narsimha Rao government embarked on a policy of liberalization, licensing a small number of private banks. These came to be know as New Generation teach-savvy

new generation banks to be set up.) Which later

amalgamated with Oriental Bank of commerce, UTI Bank (Now re-named as Axia Bank), ICICI Bank HDFC Bank.

C)

Current Situation : Currently (2007), banking in India is generally fairy nature in terms of supply,

product rang and reach even though reach in rural India still remains a challenge for the private sector and foreign Banks. The Reserve Bank of India is an autonomous body, with minimal pressure from the government. The stated Policy of the Bank on the Indian Rupee is to manage volatility but without any fixed exchange rate and this has mostly been true.

CHAPTER – 3 INTRODUCTION OF AXIS BANK

4

AXIS BANK Axis Bank is a private sector Indian bank. The bank has a net worth of Rs. 2872.19 crores. Public holding of Axis Bank shares stands at 57.60% ending 31st March, 2008. Dr. P.J Nayak is the Chairman and Chief Executive Officer.

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

A Nation wide Banking Operations : Axis Bank presently has its registered office in Ahmedabad. The Central Office is located in Mumbai. Axis Bank of India currently conducts its operations through more than 700 branches and ancillary extension counters. Day to day banking activities are further supplemented by the presence of 2854 ATMs scattered all over the Indian Republic. Axis Bank possesses one of the largest ATM networks in India.

Corporate banking is a special forte of Axis Bank. It also has expertise in retail banking. Asset quality of the bank is extremely high. Non Performing Assets (NPAs) of the bank is at a comfortable low- below 1% of of its total loans. The bank also has higher transaction margins compared to comparable peer banks. Axis Bank's higher weightage on corporate banking also leads to diversification of credit risk. The bank provides Internet banking and phone banking facility to its customers. Both Life and non Life insurance services are provided by the bank.

INTRODUCTION OF AXIS BANK Axis Bank formerly UTI Bank was the first of the new private banks to begin operations in 1994. The bank has been promoted jointly by the Unit Trust of India, 5

Life Insurance Corporation of India, General Insurance Corporation Ltd., and it's associates, viz. National Insurance Company Ltd., The New India Assurance Company, The Orievdal Insurance Corporation and United Insurance Company Ltd., The Bank has a very wide network of more then 450 branch offices and 1891 ATMs.

LOCATION The bank's registered office @ is at Ahmedabad and it's central office is located at Mumbai.

UTI Bank is now Axis Bank 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 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 colour 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 lakhs customers and communicating to them the name change would be the prime exercise for the bank. Immediately, the bank will replace signages in 8 metro cities while in other 250 ities 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, payorders have been resigned to reflect the new look. 6

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 restore 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.

UTI Bank on Monday rechristened itself as Axis Bank. Announcing the new name, PJ Nayak, chairman & CEO, Axis Bank, said the bank has ambitious plans to diversify into non-banking financial sector. He, however, refused to elaborate further on the bank's diversification plans. The bank, with a customer base of six million, is planning inorganic growth for its ventures dealing with new areas. It is also overhauling its corporate banking with the involvement of McKinsey. "We had to change our name to have our own brand and identity. We had to give up the UTI name after using it for 13 years as we were not prepared to accept terms and conditions (including royalty) from UTI AMC to use the name," explained Nayak, adding that the new name was chosen considering the bank's pan-Indian as well as international presence. "Now we will be seen without a public sector connotation," he averred. According to Nayak, who a two-year term as chairman and CEO, the bank would go in for international expansion sometime down the line. The bank is well capitalized after raising over $ 1 billion recently and is adding 150 branches and 584 ATMs. Axis Bank is the fifth larged bank in terms of capitalization and will have a Rs. 1 lakh crore balance sheet by end March 2008.

7

Type Founded Headquarters Key people

Public BSE : 532215 1994, India. India P.J. Nayak, Chairman & CEO Financial

Industry Employees Website

Commercial banks 13,389(2007) [1] www.axisbank.com

Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun operations in 1994,after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd.,

SHARE CAPITAL 

Authorized share capital :

Rs. 300 Crores



Paid up Share Capital

:

Rs. 232.86 Crores

Company Profile Description : Axis Bank is moving ahead with the times, and with ever expanding horizons comes a new quest. We at Axis Bank would like you to be part of the quest and also chart your career path. So if you are a banking professional looking for an opportunity to drive your career on the road to success, work with us. We are looking for someone just like you Axis Bank has more than 2450 ATMs and 580 offices across 347 centers in India. The career opportunities are for all locations across Bank's branches in the States of Tamil Nadu, Kerala, Andhra Pradesh and Karnataka.

AXIS BANK INDIA OFFICE 

The Registered Office : Axis Bank Limited 8

"TRISHUL", Third Floor, Opp. Smartheshwar Temple Nr. Law Garden, Eltisbridge, Ahmedabad-380 006 Email : [email protected], [email protected]



The central office : Axis Bank Limited 131, Market Tower-Fc Cuffe Parade, Colaba, Mumbai – 400 005 Tel. : (022)67074407 Fax : (022)-22186944, 22181429

Board of Directors The Bank has 10 members on the Board. Dr. P.J. Nayak is the Chairman and CEO of the Bank. The members of the Board are :

Jharkhand AXIS Bank Voltas House, Near Ram Mandir Bistupur, Jamshedpur -831 001

AXIS Bank Satabdi Tower, 1 Sand Line Road, New Planning Area, Sakchi, Jamshedpur - 831001

AXIS Bank No. 4, 5 A, 5b, Ward No. 15 Ground Floor, Below Bata Showroom Main Road, Albert Ekka Chowk Ranchi -834001

AXIS Bank Shri Ram Plaza, First Floor, Bank More Dhanbad -826 001

Kerala AXIS Bank 41/419, Ground Floor, Chicago Plaza, Rajaji Road Ernakulum, Kochi - 682 035 AXIS Bank "Karupalli Arcade" YMCA Cross Road Calicut -673 001

AXIS Bank 2/2421, Condor Plaza M.G. Road, Pattom Thiruvananthapuram – 695 004 AXIS Bank No. IX - 311, A/ 2 Century Towers, Near YWCA, 9

AXIS Bank City Centre, XXV/1130, Round West, Thrissur – 680001

13th Main, M.C.Road, Kottayam – 686001

Karnataka AXIS Bank No. 9, M. G. Road Block A Bangalore -560001

AXIS Bank Essel Towers, Bunts Hostel Circle, Mangalore - 575 003

AXIS Bank 55/5, 30th Cross, 13th Main Jayanagar, 4th Block Bangalore - 560 011

AXIS Bank Kalburgi Plaza 163/20A, Main Road, Deshpandenagar Hubli -580 029

AXIS Bank Site No. 43, Varthur Main Road Marathahalli, Bangalore -560 037

AXIS Bank CTS No. 5854, Congress Road Tilakwadi, Belgaum -590 006

AXIS Bank Gr. Floor, No.6/A, J.P. Nagar III Phase Bannaragatta Main Road Bangalore -560 076 AXIS Bank 233, 2nd Main, Between 15th And 16th Cross, Sampige Road, Malleswaram, Bangalore - 560003 AXIS Bank G.G. Arcade, Service Road, No.2940/E-5, West Of Chord Road, Opp. Maruti Mandir, Vijayanagar II Stage, Bangalore

AXIS Bank Haripriya Complex, Temple Road, V V Mohalla, Mysore -570 002 AXIS Bank No. 821, Renuka Extension, Onkarappa Lane, P.B. Road Davangere -577 002 AXIS Bank Door/S No.8, Main Road, Siddartha Complex, Parvathi Nagar, Bellary -583 103 AXIS Bank Shaan Complex, 453, Green Street Karwar -581 301 10

AXIS Bank No.119, 80 Feet Road, 7th Block, Industrial Layout, Koramangala, Bangalore -560 095

AXIS Bank Jawali Complex Super Market Gulbarga -585 101

Maharashtra AXIS Bank Universal Insurance Bldg. Ground Floor Sir. P. M. Road, Fort Mumbai -400 001 AXIS Bank Nand Nandan Bhavan, Sodawalla Lane Borivali (W), Mumbai -400 092

AXIS Bank Royal Accord IV, Main Road Lokhandwala Complex Andheri (W), Mumbai - 400 053 AXIS Bank Mangal Mahal Turner Road, Bandra (W) Mumbai -400 050 AXIS Bank A/G3, "Delphi-A Wing", Hiranandani Business Park, Powai, Mumbai - 400076 AXIS Bank Konark Darshan, Plot No. 53 New Survey No. 1000 (Part), CTS No. 1195 Zaver Road, Next To Jain Temple Mulund (West),

AXIS Bank Balwant Chapekar Chowk, Station Road, Near Post Office, Chinchwad Gaon, Pimpri-Chinchwad, Pune - 411033 AXIS Bank The Pentagon, Shahu College Road, Off. Pune-Satara Road, Parvati, Sahakar Nagar, Pune – 411009 AXIS Bank Parmar House 2413 East Street Gen. Thimayya Road Camp Pune – 411 001 AXIS Bank M. G. House,Rabindranath Tagore Road, Besides Board Office Civil Lines, Nagpur - 440001 AXIS Bank Mohan Three Wheelers Ltd. Showroom Dheeraj Baug, LBS Marg, Naupada, Thane (W)400602 AXIS Bank No.1,1A,101 & 101A, Vardhaman Chambers Premises CSL, Plot 84, Sector 17, 11

Mumbai -400 080 AXIS Bank 81, Dev Kunj Veer Savarkar Marg, Shivaji Park, Dadar, Mumbai -400 028 AXIS Bank Nageshwardham, Sector 44, Nerul, Navi Mumbai - 400706 AXIS Bank Sterling Plaza, Plot No.1262/B Jangli Maharaj Road Near Deccan Gymkhana, Pune -411004 AXIS Bank Infotech House, Plot No. 57, Mayur Complex, Next To Jog High School, Kothrud, Pune - 411029 AXIS Bank Gr. Floor, Gulshan Tower, Mofussil Plots, Nr. Panchsheel Talkies NH No. 6, Near Jaistambh Chowk, Amravati -444 60

Vashi -400 705 AXIS Bank Malpani Pride, Behind Raymond Retail Shop New Pandit Colony, Sharanpur Road Nashik -422 005 AXIS Bank Ground Floor, Hotel 'Panchshil' Building 517, Shivaji Park Station Road, Kolhapur -416 001 AXIS Bank Sakar' Building, Adalat Road Near Kranti Chowk, Aurangabad -433 001 AXIS Bank Hotel Sanket Complex, 189/6, Tilak Road, Ahmednagar -414 001

Madhya Pradesh AXIS Bank Star Arcade, Plot No.165 A & 166 Zone - I, M.P.Nagar, Bhopal -462 011

AXIS Bank 124, Napier Town Commercial Automobiles Building Shastri Bridge Chowk Jabalpur -482001.

AXIS Bank "Kamal Palace" 1, Yeshwant Colony

AXIS Bank Ground Floor, Kanwal Complex, Shrimant 12

Yeshwant Niwas Road Indore - 452 003

Madhavrao Scindia Marg, Gwalior -474002

AXIS Bank 16/2, Sneh Nagar Main Road, Sapna Sangita Road, Indore – 452001

AXIS Bank Upper Ground Floor, Tiwari Towers Rewa Road, Satna -485 001

MANIPUR AXIS Bank 47, THANGAL BAZAR, Imphal -795001

Meghalaya AXIS Bank O.B. Shopping Mall, Police Bazar Junction, Jail Road Shillong -793 001

MIZORAM AXIS Bank House No. A/69/A, Chanmari Aizawl, AIZAWL – 796007

NAGALAND AXIS Bank UT Complex, Opp. UBC Church, KOHIMA – 797001

New Delhi AXIS Bank "Statesman House" 148, Barakhamba Road New Delhi 110 001 AXIS Bank A-11, Vishal Enclave, Rajouri Garden Delhi 110 027 AXIS Bank Plot No. 2, Ground Floor Centre For Social Research Building

AXIS Bank Plot No.1, Amar Bhavan 11433, G T Karnal Road Shakti Nagar, New Delhi 110007 AXIS Bank Gitarattan Jindal Public School D-14-15 Pocket, Main Road, Sector 7, Rohini, New Delhi 110 085 AXIS Bank C3/21, Janakpuri, 13

Nelson Mandela Road Vasant Kunj, New Delhi 110 070 AXIS Bank D 81, Malviya Nagar New Delhi 110 017 AXIS Bank S-266, Greater Kailash - II New Delhi 110 048 AXIS Bank 18, Netaji Subhash Marg Daryaganj, New Delhi 110 002 AXIS Bank B-81, Defence Colony New Delhi 110 024

New Delhi 110058 AXIS Bank 6/83, Padam Singh Road, Western Extension Area Karol Bagh, New Delhi 110005 AXIS Bank Plot No. 22, LSC, Mayur Vihar -Phase II, New Delhi 110091 AXIS Bank B-2/11, Paschim Vihar, New Delhi 110063 AXIS Bank A-13, Swasthya Vihar, Vikas Marg, New Delhi 110092

Orissa AXIS Bank C/O. Archbishop's House Satyanagar, Bhubaneshwar -751 007

AXIS Bank Subhra Plaza, O T Road, Padhuan Pada Balasore -756 001

AXIS Bank Hotel Pushpak, Kalpana Square, Bhubaneshwar – 751014

AXIS Bank Ground Floor, Mangal Kunj, Kachery Road Rourkela -769 012

AXIS Bank Jayashree Plaza, 34, Dolamondai, Badambadi Cuttack -753 009

AXIS Bank Shreeram Market Complex Main Road, Angul -759 122

AXIS Bank Time World, Plot No. 1195, Ward No. 20, Tata Benz

AXIS Bank RR Mall, Ashok Talkies Road V.S.S. Marg, 14

Square Berhampur- 760 005

Sambalpur -768 001

Pondicherry AXIS Bank No. 164, Bussy Street Pondicherry 605 001

Punjab AXIS Bank Shop No.3, LGF Surya Towers 108, The Mall Ludhiana 141 001 AXIS Bank 50, Badri Dass Colony, Mahavir Marg, Near BMC Chowk, Jalandhar 144 001 AXIS Bank SCO 343-344, SECTOR 35B, Chandigarh – 160 022

AXIS Bank 50, Court Road, Amritsar 143 001 AXIS Bank 4464/5, Rajwara Road, Opposite Head Post Office, The Mall Road Patiala 147 001 Axis Bank Life Insurance Corporation ( LIC ) Of India, Jeevan Prakash Building, Sector 17-B, Chandigarh - 160017

Rajasthan AXIS Bank O-15, Green House Ashok Marg, C-Scheme Jaipur -302 001 AXIS Bank A-31, Kanchan Appts., Opp. LBS College, Tilak Nagar, Jaipur - 302004 AXIS Bank Showroom No.4 Panchratna Apartments 818, Chopasni Road Jodhpur -342 001

AXIS Bank 414, Shopping Centre Kota -324 007 AXIS Bank Shree Gaurav Complex, Daga Maidan Near Dak Bunglow and Railway Station, Rani Bazaar Road, Bikaner -334 001 AXIS Bank AMC No.481-485/10 Kutchery Road, India Motor Circle

AXIS Bank 151-152, Ground Floor, 15

Parihar Bhawan, Chetak Marg Udaipur - 313 001

Sikkim AXIS Bank New Market, M.G. Road, Opp. Hotel Tashe Delek Gangtok 737 101, Sikkim

Tamil Nadu AXIS Bank 82, Dr.Radhakrishnan Salai Mylapore Chennai -600 004

AXIS Bank Door No. 4 Goods Shed Street Madurai -625 001

AXIS Bank No.18, Mahatma Gandhi Road, Shastri Nagar (Nr.Adyar Bus Depot), Chennai -600 041

AXIS Bank No.75 E/1, Salai Road, Near Thillai Nagar Arch, Thillai Nagar, Tiruchirapalli -620 018

AXIS Bank Dev’s Ark , F-33, 2nd Avenue, Annanagar, Chennai - 600040 AXIS Bank Opposite Spencers Plaza, Anna Salai, Chennai - 600002 AXIS Bank Vigneswar Cresta, No.1095, Avinashi Road Pappanaickenpalayyam, Coimbatore - 641 037

AXIS Bank Door No.115-1A, Sharptronics Shopping Complex, Omalur Main Road, Salem -636 009 AXIS Bank 12, East Car Street Tirunelveli -627 00

Tripura AXIS Bank Banik Tower, HG Basak Road, Agartala -799 001

Uttar Pradesh 16

AXIS Bank B2-B3, Sector 16 Noida - 201 301 AXIS Bank K-21 & K-22, Sector-18, Noida - 201301 AXIS Bank Ground Floor, Block No.41/4a, Friends Tower Sanjay Place, Agra - 282 002

AXIS Bank Hotel Crystal Plaza, G-2/47, Civil Lines Boundary Road, Meerut -250 001, AXIS Bank 148, Civil Lines, Bareilly -243 001 AXIS Bank 28b, Civil Station M.G. Marg, Civil Lines Allahabad -211 001

AXIS Bank 25-B, Ashok Marg Sikander Bagh Chauraha Lucknow -226 001

AXIS Bank C-19/134, M-B, Ground & 1st Floor Shastri Nagar, Sigra Varanasi -221 002

AXIS Bank 102/44, Hewett Road, Shivaji Marg, Lucknow – 226001

AXIS Bank Omji Complex, Ramghat Road Niranjan Puri, Aligarh 202 001

AXIS Bank Khasra No. 567, Near Hindustan Aeronautics Ltd. (HAL), Faizabad Road, Indira Nagar, Lucknow - 226016

AXIS Bank Plot No. 560, Mohalla Purdilpur AD Chowk, Bank Road Gorakhpur 273 001

AXIS Bank 18/179, The Mall, Opp. Phool Bagh, Kanpur -208 001,

AXIS Bank City Plaza Building Natraj Cinema Complex Civil LInes Jhansi – 284 001

Uttaranchal AXIS Bank 56, Raipur Road Dehradun – 248 001

AXIS Bank 343/29, Civil Lines Roorkee -247 667

AXIS Bank 17

Plot No. 20, Awas Vikas Colony, Nainital Road, Rudrapur -263153

West Bengal AXIS Bank Ground & First Floors 7, Shakespeare Sarani Kolkata 700 071

AXIS Bank P-249, Manshabari, Late Town, Block-B, Kolkata 700089

AXIS Bank BD 20, Sector 1 Salt Lake City Kolkota – 700 06

AXIS Bank Spectrum House, Sevoke Road Siliguri -734 401

AXIS Bank 20, Gariahat Road,Kolkata -700 019

AXIS Bank No.101/N, Shahid Khudiram Sarani City Centre, Durgapur – 713101

AXIS Bank 76/69, Diamond Harbour Rd. Behala Chowrasta Kolkata -700 008 AXIS Bank Ground Floor , Mukti Chambers 4 Clive Row, Dalhousie Square Kolkata – 700 001

AXIS Bank 37, G. T. Road, Burdwan -713101 AXIS Bank 180/1, Malancha Road Kharagpur – 721 304 AXIS Bank 126 A, Bidhan Sarani, 5 Point Crossing Shyambazar Kolkata -700 004

CHAPTER – 4 RESEARCH METHODOLOGY

18

MEANING OF RESEARCH Research as a scientific and systematic search for pertinent information on a specific topic. In fact, research is an of scientific investigation. It is an academic activity and as such the term should be used in a technical sense. Research is thus an original contribution to the existing stock of knowledge making for its advancement. It is a per suite of truth with the help of study, observation, comparison and experiment. In short, the search for knowledge through objective & systematic method of finding solution to a problem is "Research".

DEFINITION : 1.

According to Advanced Learner's Dictionary, "A research is a careful investigation or inquiry especially through search for new facts in any branch of knowledge."

2.

According to Clifford Woody, "Research comprises defining and redifming problems, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data; making deductions and reaching conclusions; and at last carefully testing the conclusions to determine whether they fit the fonnulating hypothesis."

TYPE OF RESEARCH 1.

Descriptive vs. Analytical.

2.

Applied vs. Fundamental.

3.

Quantitative vs. Qualitative.

4.

Conceptual vs. Empirical.

5.

Some Other Types of Research.

1.

Descriptive vs. Analytical.

19

Descriptive research includes surveys and fact-finding enquiries of different kinds. The main feature of this method is that the researcher has no control over the variables; he can only report what has happened or what is happening. For Eg:- Survey method of all kinds, including comparative and co relational methods.

2.

Applied vs. Fundamental. Research can either be applied (or action) research or fundamental (to basic or pure) research. Applied research aims at finding a solution for an immediate problem frying a society or an industrial/business organization. For eg:- Research studies, concerning human behaviour carried on with a view to make generalization about human behaviour.

3.

Quantitative vs. Qualitative. Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity. Qualitative research, on the other hand, is concerned with qualitative phenomenon.

4.

Conceptual vs. Empirical. Conceptual research is that related to some abstract idea(s) or theory. It is generally used by philosophers and thinkers to develop new concepts. On the other hand, empirical research relies on experience or observation alone. It is databased research.

5.

Some Other Types of Research. 1.

One-time researches or long-term research

2.

Field-setting research or laboratory research

3.

Clinical or Diagnostic research

4.

Historical research

5.

Conclusion-oriented research.

20

RESEARCH PROCESS Preparation of the report or the thesis :Finally, the researcher has to prepare the report of what has been done by him. Writing of report must be done with great care keeping in view the following : The layout of the report should be as follows :1.

The preliminary pages.

2.

The main text.

3.

The end Matter.

1.

The preliminary pages :In this case the report should carry title and depth followed by acknowledgements and foreword. Then there should be a table of content followed by a list of tables and list of graphs and V charts, if any given in the report.

2.

The main text. The main text of the report should have the following parts-

a.

Introduction – It should contain a clear statement of the objective of the research and an explanation of the methodology adopted in accomplishing the research.

b.

Summary of Findings – After introduction there would appear a statement of findings and recommendations in non-technical language.

c.

Main Report – The main body of the report should be presented in logical sequence.

d.

Conclusion – 21

Towards the end of the main text, researcher should again put down the results of his research clearly and precisely. In fact, it is final summing up.

3.

The end Matter :At the end of the report, appendices should be enlisted in respect of all technical data. Bibliography, i.e. list of books, journals, reports, etc., Index should also be given specially in a published research report.

RESEARCH METHODOLOGY Research methodology is a way to systematically solve the research problem. In it we study the various steps that are generally adopted by a researcher in studying his research problem along with the logic behind them. It is necessary for the researcher to know not only the research method/techniques but also the methodology.

Eg :-

An architect, who designs a building, has to consciously

evaluate the basis of his decisions, i.e., he has to evaluate why and on what basis he selects particular size, number and location of doors, windows and ventilators, uses particular materials and not others and the like. "Thus, when we talk of research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique and why we are not using others so that research results are capable of being evaluated either by the researcher himself or by others."

QUALITIES OF GOOD RESEARCH 1.

The research procedure used should be described in sufficient detail to permit another researcher to repeat the research for further advancement. 22

2.

The procedural design of the research should be carefully, planned to yield results that are as objective as possible.

3.

The researcher should report with complete frankness, flaws in procedural design and estimate their effect upon the findings.

4.

The analysis of the data should be sufficiently adequate.

5.

Conclusions should be confined to those justified by the data of research.

A)

HYPOTHESIS Hypothesis is usually considered as the principal instrument in Research: Its

main function is to suggest mew experiments and observation. In fact, many experiments are carried out with the deliberate object of testing hypothesis. Hypothesis means a mere assumption or some supposition to be proved or disproved. Thus a hypothesis may be defined as a proposition set forth as an

explanation for the

occurrence of some specified group of phenomena either asserted merely as a provisional conjecture to guide some investigation. A research hypothesis is a predictive statement, capable of being test by scientific methods, that relates and independent variables to some dependent variables.

FEATURES 

Hypothesis should be clear and precise. If is not clear and precise, the

inferences drawn on its basis cannot be taken as reliable. 

Hypothesis should be capable of being tested. 1



Hypothesis should state relationship between variable, if it happens. To be

relational hypothesis. 

Hypothesis should be limited in scope and must be specific.



All concerned should state hypothesis as per as possible in most simple terms

so that the same is easily understandable. 

Hypothesis should be consistent with most known facts.



Hypothesis should be amenable to testing within a reasonable time.

23



Hypothesis must explain the facts that gave rise to the need for explanation.

Thus hypothesis must actually explain what it claims to explanation. Thus hypothesis must actually explain what it claims to explain, it should have empirical reference.

B)

HYPOTHESIS OF AXIS BANK (Aims of Objects)

a)

Incorporate new capital

b)

Revise earnings to incorporate new capital and most recent operating performance.

c)

Continue to use the our (VA methodology) and PBY multiples as benchmarks roll over benchmarks to FY09 from FY08 previously.

d)

Factor in slightly higher asset and fee growth rates; given Axis Bank's own business momentum, as also the relatively sustained growth outlook that the market appears to offer.

e)

Their new target price is Rs. 675.20% higher than our previous target of Rs. 560.

C)

COLLECTION OF DATA There are two types of collection data 1. Primary data

2.

Secondary data

1.

Primary data : The primary data are those, which are collected afresh and for the first time, and thus happen to be original in character.

2.

Secondary data : The secondary data on he other hand are those which have already been collected by someone else and which have already been passed through the statistical process.

Methods of collection primary data : 24

a. b. c. d. e. i. ii. iii. iv. v. vi. vii.

Observation method Interview method Through Questionnaires Through Schedules Other method, which include the following:Warranty cards Distributor or store audits Pantry audits Consumer panels Use of mechanical devices Projective techniques Depth interviews

METHODS OF COLLECTION OF SECONDARY DATA Secondary data may either be published data or unpublished data usually published data are available in – a.

Various publications of the central, state are local government.

b.

Various publications of foreign governments of of V international

bodies. c.

Technical and trade journals.

d.

Books, magazines and newspapers.

e.

Reports and publications of various associations connected with

business and industry, banks, stock exchanges, etc. f.

Reports prepared by research scholars. Universities, economists, etc. in

different fields. g.

Public records & statistics, historical documents, and other sources of

published information. The sources of unpublished data are many they ma found in the dairies, letters, unpublished biographies and autobiographies and through private individuals and organizations.

COLLECTION OF DATA FOR THE PROJECT For making this project I have collected the information as given below :1)

I have referred the websites of axis bank to collect the information. 25

2)

3)

4)

I have also referred the newspapers like :a)

The Hitavada

b)

Times of India

c)

The Indian Express

Same information are collect from magazines like :a)

Business Today

b)

India Today

I have also referred the following books :a)

Modern Marketing – (R.S.N. Pillai)

b)

Service Marketing – ( S.M. Jha)

CHAPTER - 5 CREDIT CARDS OF AXIS BANK 26

Axis Bank entered into credit card business in 2006 and already has over 10 credit card. Axis Bank issue VISA credit card. The bank offers a variety of cards like Silver classic credit card, Silver Plus, Gold Classic and Gold Plus card. Bank also offers special purpose credit cards like Gift card , Travel currency card and Remittance free. The standard credit cards (Silver and Gold) issued by the bank provides free insurances cover ranging from Rs.3 lakh to 5 lakh. The bank also offers special services like 24/7 personal concierge for its credit card customers.

*Axis Bank Shop Card - Total security -You set the limits - Accepted everywhere - One Consolidated Statement -It"s free

Axis Bank Corporate Credit Card -Streamlining Payments -Keeping track of costs -Get a better deal -4th Line Embossing -Savings through online bookings

Axis Bank Corporate Credit Card - Individual Gold Corporate Card -Petrol Surcharge Waiver -Protection through insurance -Travel Benefits -A unique online MIS

Axis Bank Corporate Credit Card - Individual Silver Corporate Card -Petrol Surcharge Waiver -Protection through insurance -Travel Benefits A unique Online MIS

Axis Bank Subhiksha Credit Card -Regular offers & discounts on the card -Zero Surcharge -Mobile Alerts -Revolve Facility -Auto Debit Facility

27

Axis Bank Gold Plus Credit Card -Pluspoint Rewards -Comprehensive Insurance Cover -eShop Card -Mobile Alerts -Revolve Facility -Cash Advance Facility -Auto Debit Facility -EMI facility

Axis Bank Silver Credit Card -Pluspoint Rewards -eShop Card -Comprehensive Insurance Cover -Revolve Facility -Cash Advance Facility -Auto Debit Facility Mobile Alerts EMI Facility

Axis Bank Gold Credit Card -Pluspoint Rewards -eShop Card -Comprehensive Insurance Cover -Mobile Alerts -Revolve Facility -Cash Advance Facility -Auto Debit Facility EMI Facility

Axis Bank silver Plus Credit Card -Pluspoint Rewards -eShop Card -Comprehensive Insurance Cover -Mobile Alert -Revolve Facility -Cash Advance Facility -Auto Debit Facility -EMI Facility

Axis Bank Shriram Credit Card -Transport Operator can withdraw cash from the ATM -Buy fuel -Buy tyres -Buy oil 28

-Buy batteries -Can make purshases at any VISA merchant outlet in the country

Axis Bank Secured Credit Card(Gold Plus) -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

Axis Bank Secured Credit Card (Silver) -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

Axis Bank Secured Credit Card (Gold) -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

CHAPTER – 6 MARKETING POLICIES ADOPTED BY AXIS BANK 29

The marketing team is responsible for an array of activities – much of which we all see every day, be it – • • • • • • •

TV commercials Press Out door hoardings News articles Product Brochures Direct mails On ground Activities like stalls. Given the breadth of activities that companies were involved in, company-

received dozens of queries, from their internal customers every day. Through this section company aim to resolve some of the most common request of customer. HDFC, standard success is rooted in its philosophy to always offer the customer a choice. This has been the riving force behind its multichannel distribution strategy, which includes advisors, banks and corporate agents. Following are the Marketing team of HFC, standard which will support the support the marketing strategies :-

Brand And Communication :Its been recognized as India's most trusted private Life Insurance Brand. It's the one private Insurance Company that 92% of customers are aware of it's a super brand. The brand and communication team strives to further this very image of company and its product amongst customer. It conducts research, create ads, and negotiate deals, dopes on ground activities and work with the media to high got a range of different massages.

Market Research: Customer Insight mining- this single-minded proposition describe the research team. Dedicated to discovering the way customer mind receives, assimilates and processes information, the research team test product and communication. Aiding other departments working with different team within organization, understanding problems and finding solution from a business perspective, providing actionable insight based on statistical deduction and analytical thinking is the way research team operates. 30

Product Development: The product development team, along with the actuarial product team, structures company's products uniquely the strike a chord with customer. It then supports the sales of these products through continuous competitor comparisons, market in sighting, benefit illustrations, sales stories on ground help.

Channel Marketing : Be it product brochures or the OTC forms, Umbrellas, Or visibility support at the office of company channel partners, the channel marketing tarn has develop it all. Streamlining the creation and deployment across various sales channels and partners, the team derives down cost and orchestrates hi- profile product launches that spur the sales team on,

Direct Marketing: Direct marketing taps data bases to generates high quality leads for profitable business, mainly through tele marketing with the twin engines of instalnsure and online marketing, DM leverage the ever growing digital space. The philosophy is to be innovative and be interactive, cut through the clutter and inspire action.

Balance sheet of Axis Bank Mar'05 Sources of funds Owner's fund Equity share capital 273.8 Share application money 13.4 Preference share capital Reserves & surplus 2,134.3 Loan funds Secured loans Unsecured loans 31,712.0

Mar'08

Mar'07

Mar'06

357.71

281.63

278.69

2.19

8.98

13.44

-

-

8,410.79

-

3,111.60

-

-

87,626.22

58,785.60

31

2,593.50 40,113.53

Total 34,133.6 Uses of funds Fixed assets Gross block 764.7 Less : revaluation reserve Less : accumulated deprecation 216.9 Net block 502.8 Capital work-in-progress 15.6 Investments 14,274.9 Net Current assets Current assets, loans & advance 2,071.3

96,396.91

62,187.81

42,999.16

1,384.70

1,098.93

898.68

-

-

590.33

450.55

794.37

648.38

128.48

26,897.16

21,527.35

2,784.51

1,892.07

1,679.98

5,873.80

4,051.03

-3,981.73 -

NRI services

3)

Retail Loans

4)

Corporate banking

5)

Treasury Capital Markets 32

-2,371.05 -

23,588.62

19,724.02

-

-

-

67,744.86

45,043.14

2816.31

2,786.91

SERVICES PROVIDED BY AXIS BANK

2)

14.37

33,705.10

7,556.90 1,828.6 Total net current assets -4,772.38 242.7 Miscellaneous expenses not written Total 29,855.57 15,036.0 Notes : Book value of unquoted investments Market value of quoted investments Contingent liabilities 94,598.40 23,441.8 Number of equity shares outstanding (Lacs) 3,577.10 2,737.9

Consumer banking

553.34

24.82

Less: current liabilities & provisions

1)

345.33

6)

Financial advisory services.

Other Services Accounts

Deposits

• EasyAccess Savings Account

• Fixed Deposits

• Prime Savings account

• Recurring Deposits

• Salary Savings Account

• Encash 24

• Power salute: A salute to the

• Tax Saver Fixed Deposit

defence forces • Azaadi • Senior Privilege Savings Account • For the woman of today – Smart Privilege Savings Account • A complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs • Pension Savings Bank Account, Loans

Cards Apart from Gold & Silver credit

• Power Homes

cards, Axis Bank provides

• Power Drive • Personal Power

• Axis Bank Meal Card

• Study Power

• Axis Bank Gift Card

• Asset Power

• LIC co-branded Annuity Card 33

• Two Wheeler Loan • Loan Against Security • Consumer Power Capital Markets

Credit

• Debt Solutions

• Working Capital Finance

• Equity Solutions

• Term Loans

• Private Equity, Mergers &

• Trade Services and Trade

Acquisitions

Finance

• Advisory Services

• Structured Finance

• Trusteeship Services

• Supply Chain Management

• Depository Services

• Overseas Financing and

• Capital Market Funding

Transactions

• e-Broking

• SME Standard Products • Power Trac AXIS BANK Personal Loan

Introduction

Axis bank offers personal loan under personal power scheme. Salaried persons, self employed individuals, professionals can apply for personal loan. Bank has simple procedure, minimal documentation and speedy approval process of the loan. Bank also gives balance transfer facility for those who want to retire any higher cost debt. Highlights Loan Scheme Loan Type Loan Amount Tenure

Salaried Personal Power Term Loan The loan amount sanctioned is dependant on the income and other eligibility criteria of applicants 34

Self Employed Personal Power Term Loan The loan amount sanctioned depends on the income and other eligibility requirements of

Interest Rate

Min. - 12 Yrs. Min. - 15 % Max. - 22 %

the applicant. Min. - 12 Yrs. Min. - 15 % Max. - 23 %

Salaried 2%

Self Employed 2%

Fees & charges Processing Fee

AXIS BANK LAUNCHES AXISREMIT SERVICE FOR NRIS NRI customers can use Axis Remit to transfer money online from their local bank account to the receiver's account anywhere in India. Wednesday, November 19, 2008: Axis Bank has tied up with Times of Money, India's non-bank e-payments service provider, to launch a new online remittance service – Axis Remit. With Axis Remit, the bank will provide high-speed online money transfer services for NRIs belonging to major geographies viz. USA, UK, Euro Zone (Euro Currency Area), Canada, Australia, Singapore, Hong Kong and UAE using Times of Money's white-labelled remittance platform. Times of Money's solutions will provide the technology platform for Axis Remit. The back-office functions relating to remittances would also be handled by Times of Money. Hemant Kaul, executive director, retail banking, Axis Bank, said, "Axis Remit is the new online remittance service from Axis Bank, representing a significant entry of the Bank into the fast growing remittance business. Under this service, NRI customers in USA, UK, Europe, Australia, Singapore, Hong Kong and UAE would be able to use Axis Remit to transfer money online from their local bank account to the receiver's account anywhere in India. In recent years, there has been a large-scale migration of NRIs to online remittance channels from traditional remittance routes, and we intend to be a major player in this arena. The key strengths of Axis Remit will be our transparent pricing policy, superior customer service and faster Turn-AroundTime." "We are proud to partner with Axis Bank to launch this very significant service for 35

NRIs and be an enabler of the cross border flows that make India the world's largest destination of inward remittances," added Avijit Nanda, president, Times of Money.

AXIS BANK ICONNECT Axis Bank iConnect or Internet banking service brings the entire bank to you in just a split second with a mere click of your mouse. Nor you can check your axis bank account status, submit for any queries online and carry out instant transactions to and from your Axis/ UTI Bank accounts. All you have to do is register yourself for axis bank net banking by filling up an application form available for download on axis bank official website or from the axis bank branches. You will be notified of the activation of your Internet banking account, and a username and I-PIN (internet personal identification number) will be issued to you by the bank. Now all you have to do is fill in your Axis Bank Internet login in the net banking username box on the Axis Bank Website homepage. You will then be directed to your respective bank account and will be able to carry out any necessary transactions.

The basic features of Axis Bank online banking facility include: Balance enquiry for savings account, current or corporate accounts, term deposits and loan accounts. • • • • • • •

Online transactions Ministatement of past six transactions Access to personal account information Cheque Book requests Direct credits and debits to your account Check status of the instruction Payment Gateway for online utility and other bill payments

AXIS BANK, TIMES OF MONEY JOIN HANDS Mumbai: Axis Bank, has tied up with Times of Money to launch Axis Remit, the

bank's

own

branded

online

36

remittance

service.

Times of Money is a leading non-bank e-payments service provider. With Axis Remit, the bank will provide high-speed online money transfer services for NRIs belonging to the US, UK, Euro zone, Canada, Australia, Singapore, Hong Kong and the UAE, using Times of Money's remittance platform and knowhow,

a

press

release

issued

here

said.

Times of Money's white-labelled `hosted on demand' solutions will provide the technology platform for Axis Remit and the back-office functions relating to remittances would also be handled by Times of Money. "This alliance integrates Axis Bank's core strengths in NRI banking and service delivery with Times of Money's domain knowledge and technical expertise in crossborder remittances, creating a smoother and satisfying remittance experience to NRIs situated across the globe," the release said.

CHAPTER – 7 GROWTH OF AXIS BANK GROWTH 37

New name new game more growth more business Axis Bank is currently establishing its new identity in the market place, it's high visibility advertising campaign goes with the byline, "New name same bank." a)

Higher asset growth momentum

b)

Broder business Mix through new initiatives in credit cards, international,

wealth, distribution business and forays in private equity and institutional broking.

AXIS BANK RIDES ON CORE BUSINESS GROWTH Net profit rises 60%; robust fee income, trading gains help

Mumbai, Oct. 15 Buoyed by a higher net interest income resulting from the growth in advances and investments, AXIS Bank has recorded a 60.46 per cent growth in its net profit for the quarter ended September 30, 2007.

The net profit rose to Rs 227.82 crore, against Rs 141.98 crore in the corresponding quarter of the previous fiscal. "We have done away with the expensive term deposits due to the surplus liquidity in the system, which has contributed positively to the high net interest income," said Dr. P.J. Nayak, Chairman, AXIS Bank.

The bank's net interest income rose 72.88 per cent at Rs. 588.67 crore (Rs 340.51 crore). The net interest margin increased to 3.28 per cent (2.92 per cent).

38

"The net profit on the back of margin expansion (which was partly supported by capital raising), more than 50 per cent advances growth, robust fee income and unexpectedly high trading gains," said Mr. Vishal Goyal, an analyst with Edelweiss Capital Ltd. The capital adequacy ratio is at 17.59 per cent (11.52 per cent). The bank has raised about Rs. 872.24 crore by way of GDR offering, Rs. 1,752 crore through QIP and Rs. 1,903 crore through a preferential allotment to promoters in the quarter under consideration.

Profit line

The fee-based income grew by 69 per cent to Rs 288 crore (Rs 170.38crore). The bank's success in placement and syndication of corporate bounds is reflected in the rise in feebased income, said Dr. Nayak. The cost of funds increased 76 basis points to 6.18 per cent (5.42 per cent). The share of low cost deposits (Savings Bank and Current Account) rose to 45 per cent of the total deposits, against 40 per cent last year. "The low cost CASA deposits which used to be in the range of 40-42 per cent have seen a new high. It will be a challenge for us to maintain it at these levels," said Dr. Nayak.

The net advances grew by 53.5 per cent to Rs. 44,701 crore, with agricultural advances growing by 83.67 per cent to Rs 3,365 crore, and advances to large and mid corporate growing by 66.29 per cent to Rs. 22,687 crore. 39

The bank plans to have wholly owned subsidiaries for its mutual fund and trusteeship business. The bank was already into trusteeship business, but now wants a separate subsidiary to increase focus. Talking about the investment need for the subsidiaries Dr. Nayak said, "Our capital adequacy is high and we can meet investment requied for these subsidiaries." The bank's stock was up by 9.45 per cent at Rs. 813.35 on the BSE today.

AXIS BANK SOLID GROWTH WITH STABILITY Over the past several years Axis Bank has reflected a stupendous growth It is the third largest private sector bank in the country after ICICI bank and HDFC bank with a network of 594 branches with 2500 ATM centers. This network should cross 700 branches and 3000 ATM centers by Fy 08. Most of the new branches are likely to be set up in Tier – II and Tier- III cities, which would help increase its presence in the unbanked areas.

C.M.P Market cap Adjusted Book Value Fy 08 Adjusted Book Value Fy 09 Price to B.V (Fy 09 EPS Fy 08 EPS FY09 PE Fy 08 PE Fy09 Net Interest Margin Fy09

Rs 825 Rs 28,825 crores Rs 234 Rs 270 3.05 times Rs 30 Rs 45 27.5 times 18.33 times 3.2% 40

CASA Fy 08 RoA (Fy 09) RoE (Fy 09)

45% 1.2% 16.67%(affected by recent equity

Capital Adequacy ratio (Sept

dilution) 17.59%

2007) CAGR Fy 08- to Fy 11

35%-40% CAGR

While Banks are commoditized businesses the clutch of new generation private sector banks are getting out of that commodity trap and investing in businesses and resources that generate a stream of fee based income: Most of these private sector banks are a great proxy on insurance and AMC as they derive a significant part of their fee income from distributing these products without necessarily taking on the risks for the same. Fee based income is RoE and EPS accretive, does not require capex and creates a annuity income stream from one year of effort. For example if a Bank locks in a customer with a ULIP plan for 30 years then the effort for year 1 will generate revenues for the Bank for the next 29 years so incremental growth in terms of adding new customers each year would be tremendous. Consistent growth: Over the past 31 quarters the bank has grown its net profit in excess of 30% y-o-y in 29 out of those 31 quarters. Even in the two quarters that it did not grow its net profit it was more of a case of extraordinary expense write off because of valuing G-Sec on mark to market basis. The important tools in evaluation of banking companies are RoA, NPA, CASA and NIM while CASA and NIM are the drivers it is actually the RoA that sets the pace in terms of market cap expansion and is one of the best efficiency indicators of capital usage. Recently Axis Bank has raised capital and retired high cost debt thereby increasing its Net interest margin to 3.2% from 2.9% in the same quarter last year. The management expects to maintain NIM at around 3.2% in the quarters to come. In the 41

last quarter CASA grew to 45.4%, an increase of 540 bps YoY. Axis compares very favorably with HDFC bank on all efficiency parameters. Though HDFC Bank is still ahead to Axis in terms of CASA, NIM, and RoA the recent trend in the results of Axis Bank indicates that within the next 12-18 months Axis should get closer to HDFC bank in terms of efficiency parameters. Wider Business Model vs. HDFC bank: A few factors that favor such a efficiency hike in Axis bank to HDFC bank are: 

While HDFC bank is retail focused Axis bank derives 24% of its business from retail clients and the bank intends to slowly increase its thrust into that segment.



Axis Bank recently applied to SEBI for setting up an AMC. Now HDFC Bank cannot set up an AMC because its parent HDFC already has one so there is a conflict of interest here. Tomorrow Axis could get into anything within the financial services space whether it is brokerage or Insurance but HDFC bank is handicapped by its parent (for conflict of interest) in terms of such an extension.

Declining NPA’s, Increasing fee incomes, Robust CASA growth with expanding RoA’s are the drivers that could catapult Axis Bank closer to the level of HDFC bank’s valuation. Robust fee Income growth The past few years (2002-07) has seen the company grow its fee income at a stupendous CAGR of 51 %. As the fee income grows at a higher rate to the interest income the proportion of fee income in the overall revenues is increasing at a brisk pace. This will create adequate trigger for a PE rerating in the times to come. Axis Bank has already entered the insurance distribution business with MetLife as its partner. Other businesses like asset management, investment banking, Private Equity and wealth management will help the bank to maintain its growth in fee based Income growth. 42

The Bank sells Mutual Funds, Insurance, On-Line Broking, Portfolio Management Services (Non-discretionary) and Gold Coins to retail customers as part of its fee income initiative. Excellent Asset Quality: The asset quality of the bank has shown a remarkable improvement Gross NPAs as a proportion of gross customer assets declined to 0.95% in Q2FY08 as compared to 1.22% in Q2FY07. Similarly, net NPAs as a proportion of net customer assets also declined to 0.55% in Q2FY08 as compared 0.74% in Q2FY07. Wealth Management forays: The Bank also intends to enter the wealth management business in a big way and has set up a US $ 500 million offshore infrastructure fund, with a $50 million proprietary seed investment. The Bank will leverage its Corporate and SME loan book to create investment opportunities for the infrastructure fund. Direct Sales Channel: Presently Retail Assets constitute 24% of the Bank’s total advances, and the Bank continues to grow this field slowly. Generally Direct selling Agents (DSA’s) form a large part of the distribution costs in selling retail loans. To overcome this cost centre Axis bank has set up a subsidiary (UBL Sales Ltd). This subsidiary would minimize cost and focus on better distribution of products and services as well as maintain the quality of clients so acquired. To increase its thrust in the Retail loan space Axis has set up 70 Asset Centers(RACs) •

Issued over 300,000 Credit Cards since its launch in August last year.

•

3rd largest debit card base (64 lacs) in the country.

•

1st Indian Bank to launch Travel Currency Cards in multiple currencies -US$,

Euro, GBP, AUD and CAD. •

1st Indian Bank to launch Remittance Card and Meal Card.

•

Installed base of over 54,000 EDCs and growing.

•

Cards business a significant contributor to Retail Fees. Debt Syndication: Axis is a dominant player in Placement and Syndication of

debt issues and was ranked 4th by Bloomberg in the Underwriters League Table for 43

the Indian Domestic Bonds for the first six months of calendar year 2007. Along with this the Project Advisory Services mandates have shown a secular increase. Float: The Bank Gets a big float of free cash in its initiative from collecting taxes on behalf of seven State Governments and Union Territories. It is the designated bank for collection & payments for Central Government Ministries Railways, Urban Development and Housing & Urban Poverty Alleviation and is also a banker to the e-Governance initiatives of 5 State Governments.

Being bankers to such organizations helps the bank in getting free cash float which in turn reduces the cost of funds and boasts the Net interest margin. In fact HDFC Bank derives a big amount of its float from being a banker to the NSE. Cash management services also increase the float and with 2592 clients CMS is becoming a big origin for float and high CASA base.

International Forays: Axis bank has already set up branches in Singaporeand Dubai with a representative office in Shanghai and Hong Kong. It intends to be an international Bank with a Pan Asian presence. These foreign branches will help it focus on offshore corporate and capital markets businesses. The Bank has tied up with Banque Privee Edmond de Rothschild Europe which will enable Axis bank to offer investment opportunities in global financial products for overseas Indians. It will offer the joint product through its international branches. Customer relationships are being handled by Axis Bank, while Banque Privee Edmond provides expertise for global wealth management. The total asset under overseas operations was US$ 1.24 billion as at end September’07. The Takeover Trigger: Sometime back HSBC had taken a 15% stake in Axis Bank and was subsequently directed by RBI to bring that stake down to fewer than 5%. Along with HSBC, Citigroup also has a stake near the threshold 5% limit indicating that as the RBI opens the banking sector for liberalization in 2009 these banks could see a flurry of activity. That would act more then just an icing on the 44

cake and could result in a serious PE Re-rating.We discussed this possibility in the thread"

AXIS BANK - TRANSFORMING UTI BANK INTO A GLOBAL MODERN BANK 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 brandchange 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 colour as the previous UTI logo but now uses the alphabet ‘A’ from the word Axis. The bank is also publicising the change through campaign titled “Twins both equal”. Axis Bank has business of Rs.102,000 crore with a market capitalisation 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 signages 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 centres, newspapers and radio. Even elements like cheque books, welcome kits, payorders 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.

45

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 OPENS DUBAI REPRESENTATIVE OFFICE Axis Bank, one of India's largest banks with a market capitalization of $8.1 billion, has opened a representative office in Dubai, and is targeting the large number of NRIs working in the UAE.

46

The large number of Non-Resident Indians (NRIs) working in the Middle East region provides good business opportunities for Indian banks, said Dr. P.J. Nayak, chairman and chief executive for Axis Bank, which used to be called UTL Bank. He was in Dubai to officiate at the opening of the bank's latest representative office, which will cater to the various banking needs of NRIs in the UAE. The representative office will be primarily engaged in promoting the bank's retail NRI products and services, as well as supporting transactions between its branches in India and NRIs based the UAE. He said, "Personal banking transactions between the UAE and Inida are growing rapidly, and our representative office in Dubai will complement the corporate banking services offered out of our existing branch in the DIFC for facilitating part of the banking needs of Indians based in the UAE." RD Frank, who is leading the bank's operation in the GCC, said the representative office will be offering the same products as those offered in India. "As a representative office, we are not allowed to hold any assets. The new office will instead be a marketing front for all products that we offer out of India." Mohammed Akram, head of the new Dubai office, has targeted $246.6 million worth of deposits for the branch this year and admitted that the main challenge for the new entity would be other Indian banks, "but we are well-prepared for it." He also said the bank was seriously considering providing Islamic banking solutions and will definitely apply for the necessary licenses once an Islamic financial framework has been established in India. The bank also has plans to set up full branches in other GCC countries, said Frank, However, getting a licence is difficult and at the moment, the only options for the bank were to open either a representative office, or form an alliances with local banks. It already has a deal in place with Qatar's Doha Bank, UAE-based Rakbank and the Abu Dhabi Commercial Bank. It is also looking at similar tie-ups with other banks in the region, he added. 47

Axis Bank to venture into MF business The country’s third-largest private sector lender Axis Bank is all set to enter the mutual fund business in the next six to eight months. Siddharth Rath, the bank’s senior vice-president and head of capital markets, told Business Standard that the bank has received in-principle approval from the Securities and Exchange Board of India (Sebi) to set up its own asset management company (AMC). The bank is now waiting for the equity markets to stabilise before launching its first fund. “We received Sebi’s in-principle approval last month. The launch of our first fund will depend on the conditions of the markets, and investor confidence. We will have a balanced mix of equity, liquid and debt funds in our portfolio,” said Rath. With its entry into the mutual funds business, Axis Bank would become the 36th AMC in the industry, which has been witnessing a continuous erosion in total assets under management (AUM) for almost a year. At the end of October, the industry’s AUM stood at around Rs 432,000 crore, recording a decline of nearly 19 per cent from about Rs 532,000 crore at the end of October 2007. According to Sebi norms, a company requires a minimum capital base of Rs 10 crore to set up its own AMC. “We will invest as much capital as required to form our own fund house. Our initial investment will be Rs 25-30 crore,” said Axis Bank Executive Director M M Agarwal. In June, the bank had received the Reserve Bank of India’s (RBI) approval to set up its own AMC. So far, the bank has been distributing mutual funds of other AMCs for its private banking customers. “The new company will be a wholly-owned subsidiary of the bank and will carry out asset management business,” said Rath.

48

The bank has plans to employ up to 500 people for managing and distributing mutual funds across the country. Rath said the bank has already identified the CEO, chief investment officer, head of marketing, and other vertical heads for managing and distributing the bank’s mutual fund schemes. The executive, however, refused to divulge the identities of these people, explaining the business plans are still being firmed up. Rath said that initially, the bank will market and distribute its products through the bank’s own network of about 750 branches across the country, without tying up with other banks. Axis Bank is setting up another joint venture AMC with Banque Privee Edmond de Rothschild Europe, which is part of the LCF Rothschild Group, to provide investment advisory services for private banking and wealth management in India.

Axis Bank to open its Asset Management Company Private lender, Axis Bank is soon going to foray into mutual fund business. The bank plans to commence this new venture in the coming six to eight months period.

The bank has received an approval from the Securities and Exchange Board of India (SEBI) to start its independent asset management firm and now it is waiting for the equity markets to stabilize before rolling out the first fund.

Siddharth Rath, the bank's senior vice-president and head of capital markets said, "We received Sebi's in-principle approval last month. The launch of our first fund

49

will depend on the conditions of the markets, and investor confidence. We will have a balanced mix of equity, liquid and debt funds in our portfolio." "The new company will be a wholly-owned subsidiary of the bank and will carry out asset management business," added Rath. The bank received a green signal from the Reserve Bank of India for this new foray in the month of June. Until now the bank has been disturbing mutual funds of other asset management companies (AMCs) to its customers. From the past one year, the asset management industry in the country is facing erosion in total assets under management (AUM). At the end of October 2008, the industry' AMU showed a fall of about 19% to Rs 432,000 crore against 532,000 crore, for the same period a year ago. As per the SEBI instructions, a company needs to have a minimum capital base of Rs 10 crore to set up its own AMC. "We will invest as much capital as required to form our own fund house. Our initial investment will be Rs 25-30 crore," said Axis Bank Executive Director M M Agarwal. In order to manage and distribute new funds across the country, the bank plans to employ up to 500 people. Rath confirmed that the bank has already decided on the important designations like CEO, chief investment officer, head of marketing, and other vertical heads. However he did not disclose the identities of these people stating that the business plans are still on the process. Rath also told that in the starting, the bank plans to market and distribute these funds from its own branches without joining with any other bank. Axis Bank has about 750 branches across the country. With this entry, Axis Bank will become 36th AMC in the industry.

The bank also plans for a joint venture AMC with Banque Privee Edmond de Rothschild Europe. This European firm is a part of the LCF Rothschild Group and through this tie-up Axis Bank will offer the Indian customers with investment advisory services for private banking and wealth management. 50

CHAPTER – 8 MILESTONES OF AXIS BANK Mar-08 :

Axis Bank launches Platinum Credit Card, India's first EMV chip based card

Dec-07 :

AXIS Bank gests AAA National Long-Term Rating from Fitch Ratings

Sept-07:

Axis Bank ties up with Banque Privee Edmond de Rothschild Europe for Wealth Management

July-07 :

UTI Bank re-brands itself as Axis Bank

July-07 :

UTI Bank successfully raises USD 1050 million

July-07 :

UTI Bank ties up with Tata Motors Ltd. for Car Loans

June-07:

UTI Bank's expansion into Asia supported by FRS

May07 :

UTI Bank's launches 'Spice Rewards' on the bankcards-India's first ever merchant-supported rewards program

51

April-07:

UTI Bank opens a Financial Services Category I Branch in the DIFC in Dubai

Mar-07 :

UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans

Mar-07 :

UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the country

Mar-07 :

UTI Bank launches Car Loans in association with Maruti Udyog Ltd

Mar-07 :

UTI Bank opens a Full Licence Bank Branch in Hong Kong

Feb-07 :

Finance Minister Shri P. Chidambaram Launches Shriram-UTI Bank Co-Branded Credit Card Exclusively For Small Road Transport Operators (SRTOS)

Feb-07 :

UTI Bank announces the launch of its Meal Card

Feb-07 :

UTI Bank announces the launch of its Gift Card

Feb-07 :

LIC Premium payment now through UTI Bank Branches

Jan-07 :

UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov-06 :

UTI Bank opens Priority Banking Lounge in Pune

Sep-06 :

UTI Bank launches operations of UBL Sales, its Sales SubsidiaryInaugurates its first office in Bangalore

Aug-06 :

UTI Bank announces the launch of its Credit Card Business

Aug-06 :

UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency Hybrid Capital in the International Market

Aug-06 :

UTI Bank Business Gold Debit Card Master Card Launched- Designed for business related spending by SMSs and self employed professionals

Aug-06 :

UTI Bank announces the scheme of issuance of "Senior Citizen ID Card" in associaton with Dignity Foundation

Aug-06 :

UTI Bank rools out its 2000th ATM

July-06 :

UTI Bank opens Representative Office in Shanghai

May-06 :

UTI Bank and LIC join hands to launch an Annuity Card for group pensioners of LIC

May-06 :

UTI Bank ties up with Geojit Financial Services to offer Online Trading service to its customers

Apr-06 :

UTI Bank opens its first international branch in Singapore

Jan-06 :

UTI Bank and UTI Mutual Fund to launch a new service for sale and redemption of mutual fund schemes through the Bank's ATMs across the country 52

Dec-05 :

UTI Bank wins International Financing Review (IFR) Asia 'India Bond House' award for the year 2005

Oct-05 :

UTI Bank extends banking services to the rural milk producers in Anand and kheda district in Gujarat

July-05 :

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

May-05 :

UTI Bank and Bajaj Allianz join hands to distribute general insurance products

Apr-05 :

UTI Bank launches Smart Privilege- a special bank account designed for women

Mar-05 :

MTNL ties up with UTI Bank for payment of telephone bills through the Bank's ATM network

Mar-05 :

UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million through Global

Mar-05 :

Depositary Receipts (GDRs)

Feb-05 :

UTI Bank appointed by Government of Karnataka as the sole banker for the Bangalore One (B1) project

Feb-05 :

UTI Bank launches a powerful version of Kisan Credit Card

Jan-05

UTI Bank ties up with Remit2India to launch the Remittance Card

:

Mar-05 :

UTI Bank enables premium payment of LIC policies through its ATMs.

Feb-04 :

Bilateral arrangement between State Bank of India (and its 7 associate member banks) and UTI Bank. Comes into force with the commencement of operation (as on 3rd February' 04) of the combined network of over 4000 ATMs.

Feb-04 :

UTI Bank (by pursuing a proactive strategy of forging bilateral agreements and being a progressive player in the multi-lateral consortiums for shared ATM network) offers its customer's access to over 7000 ATMs across the country- the largest to be offered by any bank in India so far.

Dec-03 :

Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This ATM is at the highest altitude in India

Sep-03 :

The Bank's ATMs across the country crosses the thousand mark

Sep-03 :

Bank launches the Travel Currency Card.

Aug-03 :

The Bank's Debit Card crosses the one million mark.

Aug-03 :

Total Advances cross Rs. 7,000 Crore. 53

May-03 :

Bank declares a net profit of Rs. 192.18 crores for FY03, a growth of 43% over the previous year

Mar-03 :

Bank signs Agreement with Employees Provident Fund Organization (EPFO) for disbursement of Pension

Mar-03 :

Bank crosses the 800 ATM mark

Mar-03 :

The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs. 164.00 crores, through a

Mar-03 :

Preferential offer to Life Insurance Corporation of India (now constituting 13.54% of

Mar-03 :

the Bank's expanded equity), Citicorp Banking Corporation, Bahrain (holding 3.84%), Chrys Capital I,

Mar-03 :

LLC, Mauritus (holding 3.84%) and Karur Vysya Bank Ltd. (constituting 1.00%) The Bank also

Mar-03 :

Increases the authorized share capital of the Bank from Rs. 230 crores to Rs. 300 crores.

Feb-03 :

Bank, in a pioneering move, Iaunches the AT PAR Cheque facility, freeof cost, for all its Savings Bank customers.

Feb-03 :

Bank wins mandate to set up 14 ATMs at the Western Railway stations along the Mumbai division.

Oct-02 :

Bank launches Corporate iConnect? the Internet Banking facility for Corporate

Aug-02 :

Bank signs MoU with BSNL regarding bill collection services across the country through both online and offine channels.

Apr-02 :

Bank opens its 500th ATM

Mar-02 :

Deposits Cross Rs. 12,000 Crore

Jan-02

:

The Bank's 100th branch opens at Tuticorin, Tamilnadu

Jan-02

:

The Bank opens an ATM at the Gol Dak-Khana, i.e. the New Delhi GPO, making it the first instance of a commercial bank setting up an ATM at any post-office in the country.

Dec-01 :

Total Advances cross Rs. 5,000 Crore

Nov-01 :

The deposit base for the Bank crosses Rs. 10,000 Crore

Sep-01 :

Private placement of 26% stake in the Bank to CDC Capital Partners. UTI holding reduces to 44.88%

54

Aug-01 :

Bank signs MoU with India Post for introducing value added financial products and services to customers of both organizations, including setting up of UTI Bank ATMs in post offices.

July-01 :

Bank ties up with Govt. of Andhra Pradesh for collection of commercial tax

Dec-00 :

Bank opens its 200th ATM. It becomes the 2nd largest ATM network in the country, a position held even today.

Oct-00 :

Bank becomes fully networked

July-00 :

Financial Advisory Services offered beginning with marketing of US 64

Apr-00 :

UTI Bank calls off its proposed merger with Global Trust Bank and surges ahead on its own.

Apr-00 :

Bank launches its Internet banking module, iConnect Retail lians introduced for the first time by the Bank

Mar-00 :

Profits cross Rs. 50 crore mark for the first time.

Feb-00

:

Bank adopts Finacle software from Infosys for core banking

Jan-00

:

Dr. P. J. Nayak takes over as Chairman and Managing Director from Shri Supriya Gupta.

Sep-99

:

Cash management services (CMS) launched, Co branded credit card launched

Mar-99

:

Deposits cross Rs. 3000 crores

Sep-98

:

UTI Bank goes public with a Rs. 71 crore public issue; issue oversubscribed 1.2 times, over 1 laakh retail investors. UTI holding reduces to 60.85%

Jun-96

:

Crosses Rs. 1000 crore deposit mark

Mar-95 :

Completes first profitable year in operation

Apr-94 :

First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan Singh, Hon'ble Finance Minister, and Government of India.

Dec-93 :

UTI comes into being

Dec-93 :

Registered office at Ahmedabad ; Head office at Mumbai

Online Trading

55

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

AXIS BANK ONLINE BANKING :

Axis Bank Online Banking is an effective way of conducting banking transactions from a remote location. The user of the Axis Bank online banking system requires a User ID and Password to access the secure network. The brand name of Axis Bank Internet banking is iConnect.

Net Banking Features : The iConnect facility can be used for the following banking functions: Depository Account functions like Transactions Statement, Status of Instruction Display and Statement of Holding Balance inquiry on the Internet for Current Account, Savings Bank Account, Loan Account and Term Deposits.

Online Transaction Queries like: Viewing Personal

of

Account

transaction

of

information

accounts may

as also

per be

client

parameters.

viewed

online

Quick View functions like the synopsis of the last 6 transactions in a particular account.

56

Funds Transfer Facility (FTF) is available. The FTF facility of iConnect enables the client to make utility bill payments and purchase railway tickets.

Particulars : Axis Bank net banking involves nominal charges. Transactions up to Rs. 1 lakh incurs a bank charge of Rs. 20. Transactions above Rs. 1 lakh incur a fee of Rs.2.00 per 1000. Any transaction above Rs.10 lakhs carry a charge of Rs. 1.50 per 1000. Money transfers up to Rs. 2,00,000 between two bank branches involves no charge. This service is available in all major Indian metros and important cities. Issuance of demand drafts are restricted to places where the bank has branches. Axis Bank will transfer any amount of money from the customer's account provided the amount of money is present in the bank.

Axis Bank News •

Banks gear up to trade in currency futures on Friday

•

MBA students can now assess their employability

•

MTM losses take a toll on banks' Q1 profits

•

PNB, Axis Bank raise rates

•

Perfect Axis

•

Fabulous Friday: Sensex up 524 pts

•

Axis Bank Q1 net up 89% despite higher provisions

•

Axis Bank: A creditable show

•

SUUTI to offload 17% in Axis Bank

•

Inflation hits 7-yr high

•

Yes, Axis Bank securitise Rs 1k cr oil company loans

•

Axis PE invests Rs. 126 cr in Harish Chandra

•

SBI clients may lose Rs. 700 cr

•

Angel Broking : Buy Axis Bank, target Rs. 1268

•

Editorial : The Axis example

•

Axis Bank Q4 net up 71% 57

•

RIL: Margin pressures

CHAPTER – 9 CONCLUSION & RECOMMENDATION CONCLUSION After making this project on Axis Bank. It is concluded that. 1)

Axis Bank is the nationalize bank having branches in all most all the states to the India.

2)

Axis Bank carried out various marketing policies to influence the customer for choosing their services or products to and many other.

58

3)

Axis Bank adopted following policies. Market research product development, product development, channel marketing direct marketing.

4)

It also provides various services. 1) 2) 3) 4) 5)

Consumer banking NRI services Corporate banking Treasury capital market Company Detail loans

It also provide internet banking. Through Advertising promotion, Axis bank mode customer influence to purchase their service at maximum customer satisfaction. Recommendation: While Axis bank has provided an annualized return of over 49% (without including dividends), since the Bank’s IPO in September 1998 and investors could peg down their return estimates Axis does remain one of the best bets to play the Indian Financial services industry. It is found attractive over HDFC Bank in terms of valuation with regard to growth, efficiency and asset quality. Maybe the change in name from to Axis Bank from UTI Bank should indicate to the general investing community that Axis is not a PSU Bank and deserves a better valuation then to what it is getting.

CHAPTER – 10 BIBLIOGRAPHY BIBLIOGRAPHY 1)

2)

Website : a)

www.axisbank.com

b)

www.axissales.in

Newspaper 59

3)

a)

The Hitavada

b)

Times of India

Magazine a)

4)

Business today

Books a)

Modern Marketing – (R.S.N. Pillai)

b)

Service Marketing – (S.M. Jha)

60