FINANCIAL OVERVIEW OF AXIS BANK & COMPARATIVE STUDY OF CURRENT ACCOUNT AND SAVING ACCOUNT

WITH OTHER BANKS

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CERTIFICATE OF ORIGIN

This is to certify that has worked in AXIS BANK LTD., under the able guidance

and supervision of

The period for which she was on training was for 6 weeks, starting from report has

the requisite standard for the partial fulfillment the . To the best of our knowledge no

part of this report has been reproduced from any other report and the contents are

based on original research.

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ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task

remains incomplete without mentioning the people who make it possible. These are

the people whose constant guidance in several aspects of this report has made my

work successful. I feel delighted to express a few words of gratitude and response to

all those distinguished personalities who have guided and inspired me for the

successful completion of this report.

I deeply indebted to my industry guide for giving me the opportunity to do this

project under his guidance. I express my sincere gratitude for the continuous guidance

and encouragement that he has provided me to carry out the project work.

I have gratification in expressing my sincere thanks to my faculty guide for

providing the necessary advice and support during the course of this work.

Last, but not the least certainly, I pay sincere thanks to my family members and to all

my friends who have helped me directly or indirectly during the completion of work.

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DIRECTOR’S CERTIFICATE

This is to certify that research project title “Financial overview of Axis

Bank and comparative study of current account and saving account with

other banks” is carried by RAUSHAN AJIT student of PGDM –II

(Banking & Finance) at AIT, School of Management, Greater Noida

under the supervision of Mr.RAHUL CHANDRA Faculty, AIT School

of Management Greater Noida.

This is an original work carried out by the said student to the best of my

knowledge and I recommended for the submission of this research

project.

Ex-Director

Prof. R. K. Verma

AIT School OF Management

Greater Noida

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STUDENT DECLARATION

I am RAUSHAN AJIT student of APEEJAY Institute of Technology,

School of Management, Course PGDM (Banking & Finance), declare

that the project report titled “Financial overview of Axis Bank and

comparative study of current account and saving account with other

banks” is a genuine research work undertaken by me and it has not been

published anywhere earlier.

Date: 26/08/10 RAUSHAN AJIT Place: GREATER NOIDA

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TABLE OF CONTENTS

CHAPTER NO. SUBJECT PAGE NO.

1 Executive Summary

2 Introduction

2.1 objectives3 Literature Review

4 4.0 Industry Profile

4.1 SWOT Analysis(Industry)

4.2 Company Profile

4.3 SWOT Analysis

4.4 AXIS BANK Financial Position

5 Analysis

5.1 Savings Account at AXIS Bank

5.2 Current Account at AXIS Bank

5.3 Fixed deposit at AXIS Bank

5.4 Ratio Analysis 6 Findings

7 Recommendations

8 Conclusion

9 Bibliography

10 Annexure-1

Income StatementAnnexure-2

Cash Flow Statement Annexure-3

Balance Sheet11 Case Study

12 Synopsis

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EXECUTIVE SUMMARY

The banking sector in India has become very much competitive in last few years with

the increasing growth of private and public sector banks. Day by day the competition

is most stringent and crucial.

I undertook training in AXIS bank limited for profiling to understanding the banking

operation and services provided by axis bank.

This project is basically being formulated to make a comparison of the current

account, saving account ,FD facilities being provided by the different banks, like

ICICI,HDFC, YES BANK leveling with the presence of AXIS BANK. The market

needs are continuously changing and so are the needs of the current account & saving

account holders. So this project also represents the basic facilities being provided by

the covered banks and helps the required people to make their decisions while

choosing a bank for their current accounts, saving account & FD.

This study evolves a attempt to bring forward the various facilities being provided by

the top privatized banks as for the current account& saving account holders. Also the

significance of AXIS BANK has been brought forward in the report.

AXIS bank was established in and is working with larger assets side in private sector

banks. The quality of service is best among competitor.

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 Markets, Treasury and International Banking.

The major backup of any nation are the industrialists of the same and the prior to them

is the facility of the current accounts and customer of banks which open saving

account. Hence the facilities equipped in current accounts & saving account is always

a task for research.

The key learning that I learnt was the fact that I saw the real corporate world. What is

the pressure that each employee faces each day. I was working in a professional

working environment with professional working people. This was my real learning.

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Apart from that I worked on real projects, learned how banks gives current account,

saving account, FD information there customers. I also learnt how to communicate

with different types of clients. Working on the real time project made me learnt how

to read a bank statement.. I would thank AXIS BANK to give me such a immense

opportunity to work with them. I learned there working and functioning of the bank.

Axis bank is one of the fastest growing banks in India and has extremely competitive

and profitable banking franchise. Axis bank is the first new generation private sector

bank to be established in India under the overall reform programme initiated by

Government of India in 1991.Axis bank started its operation from 1994.

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INTRODUCTION

The corporate and the business world is always the back bone of any nation. So the

banking sector has always given its best to provide the same with the best available

services to make the purpose futile. Hereby in this report a comparison has been

made to bring forward the services being provided by various banks as related to the

current account, saving account.

OBJECTIVES:

1. To understand the business and competitive environment of AXIS BANK.

2. Understand how banking activities actually takes place in AXIS

BANK.

3. To gain an insight and in depth knowledge about banking

products of AXIS BANK

4. Compare services being provided by axis bank with major competitor in the

market.

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LITERATURE REVIEW

Saving account: A safe place to let the money flourish

Not long ago there were lesser number of banks in the country and the banking

services were also restricted to certain areas only. Usually, it used to take a huge

amount of time to make a single financial dealing. However, the situation has changed

in a better way after the stepping in of private and foreign banks in the country.

Nowadays, banking companies are chasing a customer-oriented approach, so as to

fulfill the needs of their consumers and to maintain that have also rolled-out several

new products and services.

But it is the saving account, which the people of the country always depend upon. It is

the most beneficial investment instrument to place deposit money and earn interest.

The excellent aspect of this bank account is that it earns interest for the account-

holder. It is something like an investment, where the person invests his/her earnings

and gains interest as a return gift. However, the interest rates are not too good in the

opinion of many of the clients across the country since, they change from bank to

bank.

Savings accounts services are offered by virtually every the banks in the nation, but

the State Bank of India comes out to be at the top among the best popular alternatives

available in the market, while Punjab National Bank and ICICI Bank are other

favorite public and private banking organizations in India.

Going back to saving accounts again, SBI provides two types of saving accounts

which are saving account and saving plus account. Former account is for the

consumers who are looking forward to save for future monetary requirements,

whereas another bank account provides the advantage of saving account along with

term deposit account.

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In addition to this, it also offers money transfer functionality, by which transferring

cash to other accounts is quite an easy process. The online banking functionality for

maintaining saving account is also rendered by nearly every banking firm via which

one can check cash balance and can carry out all the compulsory dealings through the

banking firm's business website. This assists an individual in doing away with long

queues in banks. But make sure, one had better choose his/her type of saving account

according to budgetary requirements.

Current Account

The current account is one of the two primary components of the balance of

payments, the other being the capital account. It is the sum of the balance of trade

(exports minus imports of goods and services), net factor income (such as interest and

dividends) and net transfer payments (such as foreign aid).

The current account balance is one of two major measures of the nature of a country's

foreign trade (the other being the net capital outflow). A current account surplus

increases a country's net foreign assets by the corresponding amount, and a current

account deficit does the reverse. Both government and private payments are included

in the calculation. It is called the current account because goods and services are

generally consumed in the current period.

Saving Account V/s Current AccountSavings Bank Account:

These bank accounts are maintained by private individuals as well as retail financial

institutions. The amount saved earns interest and is subject to the issue of checks, only

if there is a clause permitting the same in the regulations supervising the transactions

of the bank in question. The Savings Account enables the customers to repeatedly

save liquid assets and subsequently earn monetary return in the form of interest.

Savings Accounts are now offered by most credit unions, commercial banks, loan

associations and mutual savings banks. The account has little or no scope to obtain

additional funds, but the money set aside and interest earned may be accessed via any

ATM or bank branch. These accounts also come with a debit card facility to enable

quick transference of funds. A Savings Account makes it mandatory to maintain a

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certain amount of fund-balance for a minimum period of time. There are no

restrictions on access to funds via withdrawals, payments or transfers. Savings

Accounts offer the customer an itemized list or balance sheet of all financial

transactions conducted via a passbook or bank statement generated at the end of every

month.

Current Bank Account:

A Current Bank Account is a transactional account designed especially for the

business community. The account enables businessmen and entities to access flexible

payment methods and directly distribute money to vendors and suppliers from the

account. This is achieved via the check book facility, and special arrangements made

to accommodate standing orders, debit card payments and direct debits into the

account. A Current Account also comes along with an overdraft facility that enables

the businessman to borrow money from the bank to meet any urgent business

commitment. Current Accounts also come along with the 'offset mortgage' facility

that allows the business entity to purchase property and benefit from the reduction in

the rate of interest. This 'offsetting' of a credit balance is basically offered against the

incurred mortgage debt. Current Accounts attract a higher rate of interest, both earned

and payable, since the volume of transactions and savings are on the higher side.

These accounts are designed to make business transactions free of personal-handling

of liquid funds and ensure the availability of funds when most necessary via exclusive

Internet banking. The account is run with the primary aim of ensuring that profitable

business transactions do not run into deficit due to non-availability of funds.

Investing in Fixed Deposits

A fixed deposit account allows you to deposit your money for a set period of time,

thereby earning you a higher rate of interest in return. At the end of maturity period

the depositor gets its principal amount plus interest earned over the maturity period.

Fixed deposits also give you a higher rate of interest than a savings bank account. It is

one of the oldest and most popular forms of investment across India.

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Benefits of FDs

Fixed deposit offer better returns than saving accounts to depositors. Moreover, there

are several forms of fixed deposits such as recurring deposits where depositors pay a

fixed amount at regular intervals and get back the amount with accumulated interest at

the end of the prescribed period.

 

1.    You can avail loans up to 85% of the principal amount at a reasonable interest

rate.

2.    Variable deposit periods ranging from 6 months to 120 months

3.    You generally get interest once in 6 months

 

Downsides of FDs

Though FDs give depositors a fixed return on their investments, there are certain

drawbacks of FDs.

 

1.    FDs are not so liquid i.e. it cannot be withdrawn before it expires. However, there

is a provision to cancel FDs which invites a penalty of 1-2% depending upon the

bank.

2.    Interest earned after FD maturity is taxable.

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INDUSTRY PROFILE

INDIAN BANKING SYSTEM

COMMERCIAL BANK

FOREIGNBANK

REGIONALRURALBANK

URBAN

PRIVATE SECTOR BANK

CO-OPERATIVE

SCHEDULED BANK

STATE BANKOF INDIA

OLD NEW

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RESERVE BANK OF INDIA Central bank and Supreme monetary authority

OTHER NATIONAL BANK

STATE

PUBLC SECTOR BANK

HISTORY OF BANK

The first bank in India, though conservative, was established in 1786. the journey of

Indian Banking System can be segregated into three distinct phases.

PHASE-1 (1786 to 1969))

1786 : The General Bank of India

Next came Bank of Hindustan and Bengal Bank.

The East India Company established Bank of Bengal (1809), Bank of Bombay

(1840) and Bank of Madras (1843) as independent units and called it

Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was

established which started as private shareholders banks.

In 1865 Allahabad Bank was established and first time exclusively by Indians,

Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.

Between 1906 and 1913, Bank of India, Central Bank of India, Bank

of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.

Reserve Bank of India came in 1935.

During the first phase the growth was very slow Banks also experienced

periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. the Government of India

came up with The Banking Companies Act, 1949 which was later changed to

Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of

1965).

Reserve Bank of India was vested with extensive powers for the supervision of

banking in India as the Central Banking Authority.

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PHASE- 2

In 1955, it nationalised Imperial Bank of India with extensive banking

facilities on a large scale specially in rural and semi-urban areas.

It formed State Bank of India to act as the principal agent of RBI 7 Banks

formed subsidiary of State Bank of India were nationalised.

It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14

major commercial banks in the country was nationalised.

The branches of the public sector bank India rose to approximately 800% in

deposits and advances took a huge jump by 11,000%.

PHASE- 3

This phase has introduced many more products and facilities in the banking

sector in its reforms measure.

In 1991, under the chairmanship of M Narasimha, a committee was set up by

his name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations.

Efforts were being put to give a satisfactory service to customers.

Phone banking and net banking was introduced.

The entire system became more convenient and swift.

Time was given more importance than money.

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Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The nationalizationof

banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister.

The major objective behind nationalization was to spread banking infrastructure

inrural areas and make available cheap finance to Indian farmers. Fourteen bankswere

nationalized in 1969.Before 1969, State Bank of India (SBI) was the only public

sector bank in India.SBI was nationalized in 1955 under the SBI Act of 1955.

The second phase of nationalization of Indian banks took place in the year

1980.Seven more banks were nationalized with deposits over 200 crores.

List of Public Sector Banks in India is as follows:

➢ 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 and Sind Bank

➢ Punjab National Bank

➢ State Bank of Bikaner & Jaipur

➢ State Bank of Hyderabad

➢ State Bank of India (SBI)

➢ State Bank of Indore

➢ State Bank of Mysore

➢ State Bank of Patiala

➢ State Bank of Saurashtra

➢ State Bank of Travancore

➢ Syndicate Bank

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➢ UCO Bank

➢ Union Bank of India

➢ United Bank of India s

➢ Vijaya Bank

Private Banks in India

All the banks in India were earlier private banks. They were founded in the

preindependence era to cater to the banking needs of the people. But after

nationalization of banks in 1969 public sector banks came to occupy dominant role in

the banking structure. Private sector banking in India received a fillip in 1994 when

Reserve Bank of India encouraged setting up of private banks as part of its policy of

liberalization of the Indian Banking Industry. Housing Development

Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle'

approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.

Private Banks have played a major role in the development of Indian banking

industry. They have made banking more efficient and customer friendly. In the

process they have jolted public sector banks out of complacency and forced them to

become more competitive.

Major Private Banks in India is:

➢ Bank of Rajasthan

➢ Bharat Overseas Bank

➢ Axis Bank

➢ Catholic Syrian Bank

➢ Centurion Bank of Punjab

➢ Dhanalakshmi Bank

➢ Federal Bank

➢ HDFC Bank

➢ ICICI Bank

➢ IDBI Bank

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➢ IndusInd Bank

➢ ING Vysya Bank

➢ Jammu & Kashmir Bank

➢ Karnataka Bank

➢ Karur Vysya Bank

➢ Kotak Mahindra Bank

➢ SBI Commercial and International Bank

➢ South Indian Bank

➢ United Western Bank

➢ UTI Bank

➢ YES Bank

GROWTH TRENDS

The Indian banking market is growing at an astonishing rate, with assets expected to

reach US$1 trillion by 2010. An expanding economy, middle class, and technological

innovations are all contributing to this growth. The country’s middle class accounts

for over 320 million people. In correlation with the growth of the economy, rising

income levels, increased standard of living, and affordability of banking products are

promising factors for continued expansion. The Indian banking Industry is in the

middle of an IT revolution, focusing on the expansion of retail and rural banking.

Players are becoming increasingly customer-centric in their A approach, which has

resulted in innovative methods of offering new banking products and services. Banks

are now realizing the importance of being a big player and are beginning to focus

their attention on mergers and acquisitions to take advantage of economies of scale

and/or comply with Basel II

regulation. “Indian banking industry assets are expected to reach US$1 trillion by

2010 and are poised to receive a greater infusion of foreign capital,” says Prathima

Rajan, analyst in Celent's banking group and author of the report. “The banking

industry should focus on having a small number of large players that can compete

globally rather than having a large number of fragmented players."

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SWOT ANALYSIS OF BANKING INDUSTRY

STRENGTH

Indian banks have compared favourably on growth, asset quality and

profitability with other regional banks over the last few years. The banking

index has grown at a compounded annual rate of over 51 per cent since April

2001 as compared to a 27 per cent growth in the market index for the same

period.

Policy makers have made some notable changes in policy and regulation to

help strengthen the sector. These changes include strengthening prudential

norms, enhancing the payments system and integrating regulations between

commercial and co-operative banks.

Bank lending has been a significant driver of GDP growth and employment.

Extensive reach: the vast networking & growing number of branches &

ATMs. Indian banking system has reached even to the remote corners of the

country.

The government's regular policy for Indian bank since 1969 has paid rich

dividends with the nationalization of 14 major private banks of India.

In terms of quality of assets and capital adequacy, Indian banks are considered

to have clean, strong and transparent balance sheets relative to other banks in

comparable economies in its region.

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Foreign banks will have the opportunity to own up to 74 per cent of Indian

private sector banks and 20 per cent of government owned banks.

WEAKNESS

PSBs need to fundamentally strengthen institutional skill levels especially in

sales and marketing, service operations, risk management and the overall

organizational performance ethic & strengthen human capital.

Old private sector banks also have the need to fundamentally strengthen skill

levels.

The cost of intermediation remains high and bank penetration is limited to

only a few customer segments and geographies.

Structural weaknesses such as a fragmented industry structure, restrictions on

capital availability and deployment, lack of institutional support infrastructure,

restrictive labour laws, weak corporate governance and ineffective regulations

beyond Scheduled Commercial Banks (SCBs), unless industry utilities and

service bureaus.

Refusal to dilute stake in PSU banks: The government has refused to dilute its

stake in PSU banks below 51% thus choking the headroom available to these

banks for raining equity capital.

Impediments in sectoral reforms: Opposition from Left and resultant cautious

approach from the North Block in terms of approving merger of PSU banks

may hamper their growth prospects in the medium term.

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OPPORTUNITY

The market is seeing discontinuous growth driven by new products and

services that include opportunities in credit cards, consumer finance and

wealth management on the retail side, and in fee-based income and investment

banking on the wholesale banking side. These require new skills in sales &

marketing, credit and operations.

Banks will no longer enjoy windfall treasury gains that the decade-long

secular decline in interest rates provided. This will expose the weaker banks.

With increased interest in India, competition from foreign banks will only

intensify.

Given the demographic shifts resulting from changes in age profile and

household income, consumers will increasingly demand enhanced institutional

capabilities and service levels from banks.

New private banks could reach the next level of their growth in the Indian

banking sector by continuing to innovate and develop differentiated business

models to profitably serve segments like the rural/low income and

affluent/HNI segments; actively adopting acquisitions as a means to grow and

reaching the next level of performance in their service platforms. Attracting,

developing and retaining more leadership capacity

Foreign banks committed to making a play in India will need to adopt

alternative approaches to win the “race for the customer” and build a value-

creating customer franchise in advance of regulations potentially opening up

post . At the same time, they should stay in the game for potential acquisition

opportunities as and when they appear in the near term. Maintaining a

fundamentally long-term value-creation mindset.

reach in rural India for the private sector and foreign banks.

With the growth in the Indian economy expected to be strong for quite some

time-especially in its services sector-the demand for banking services,

especially retail banking, mortgages and investment services are expected to

be strong.

the Reserve Bank of India (RBI) has approved a proposal from the

government to amend the Banking Regulation Act to permit banks to trade in

commodities and commodity derivatives.

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Liberalization of ECB norms: The government also liberalized the ECB norms

to permit financial sector entities engaged in infrastructure funding to raise

ECBs. This enabled banks and financial institutions, which were earlier not

permitted to raise such funds, explore this route for raising cheaper funds in

the overseas markets.

Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI

has allowed them to raise perpetual bonds and other hybrid capital securities to

shore up their capital. If the new instruments find takers, it would help PSU

banks, left with little headroom for raising equity. Significantly, FII and NRI

investment limits in these securities have been fixed at 49%, compared to 20%

foreign equity holding allowed in PSU banks.

THREATS

Threat of stability of the system: failure of some weak banks has often

threatened the stability of the system.

Rise in inflation figures which would lead to increase in interest rates.

Increase in the number of foreign players would pose a threat to the PSB as

well as the private players.

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COMPANY PROFILE

Axis Bank was the first new generation private sector bank to be established in

India under the overall reform programme initiated by the Government of

India in1991, under which nine new banking licenses were granted.

The Bank was promoted by Unit Trust of India, the largest mutual fund in

India, holding 87% of the equity. Life Insurance Corporation of India (LIC),

General Insurance Corporation Ltd and its four subsidiaries who were the co-

promoters held the balance 13%. The Bank started its operations in 1994.

Axis Bank’s first capital raising post inception was in 1998 through a public

offering of primary shares and in subsequent years through equity allotment to

a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur

Vysya Bank and Chrys Capital leading to a dilution in UTI’s shareholding in

the Bank. Further dilution of Promotors’ shareholding happened during Q4

ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a

GDR issue.The Bank today is capitalized to the extent of Rs. 358.56 crores

with the public holding (other than promoters) at 57.60%.

The Bank's Registered Office is at Ahmedabad and its Central Office is

located at Mumbai. Presently, the Bank has a very wide network of more than

701 branch offices and Extension Counters. The Bank has a network of over

2854 ATMs providing 24 hrs a day banking convenience to its customers.

This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed

to adopting the best industry practices internationally in order to achieve

excellence.

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HISTORY OF AXIS BANK

2004

Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible

Debenture Issue, issue fully subscribed

UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the

Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I)

has been appointed as an Additional Director of the Bank w.e.f. January 20,

2004.

UTI Bank opens new branch in Udupi

UTI Bank, Geojit in pact for trading platform in Qatar

UTI Bank ties up with Shriram Group Cos

Unveils premium payment facility through ATMs applicable to LIC & UTI

Bank customers

Metaljunction (MJ)- the online trading and procurement joint venture of Tata

Steel and Steel Authority of India (SAIL)- has roped in UTI Bank to start off

own equipment for Tata Steel.

DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold

Incorporated, has secured a major contract for the supply of ATMs and

services to UTI Bank

HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m

Launches `Remittance Card' in association with Remit2India, a Web site

offering money-transfer services

2005

UTI Bank enters into a bancassurance partnership with Bajaj Allianz General

for selling general insurance products through its branch network

.UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in

Karnataka at Mangalore.

2006

UTI Bank unveils priority banking lounge

UTI Bank launches operations of UBL Sales, its Sales Subsidiary -Inaugurates

its first office in Bengaluru

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UTI Bank announces the launch of its Credit Card Business.

UTI Bank becomes the first Indian Bank to successfully issue Foreign

Currency Hybrid Capital in the International Market

UTI Bank Business Gold Debit Card MasterCard Launched – Designed for

business related spending by SMEs and self employed professionals

2007

AXIS Bank Ltd has informed that Fitch Ratings on December 14, 2007, has

upgraded the Bank's National Long-term rating to 'AAA(ind)' from 'AA+

(ind)'.

AXIS Bank Ltd hasappointed Shri K N Prithviraj as an Additional Director

on the Board at Directors of the Bank.

Company name has been changed from UTI Bank Ltd toAxis Bank Ltd.

2008

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

Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-

Madurai road on April 16.

2009

Axis Bank today said its board has recommended the appointment of Shikha

Sharma, currently chief of ICICI group's life insurance business, as its next

managing director and CEO.

Axis Bank has set up a new branch at Perumbavoor. The bank has a network

of 832 branches along with 8 extension counters and 3622 ATMs across the

country.

Axis Bank opened the new branch at Irinjalakuda while it has a network of

892 branches, 8 extension counters and 3,806 ATMs across the country.

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AXIS BANK- Mission and Values

Our Mission

Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through

Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality stressed on

Periodic Customer Service Audits

Maximizations of Stakeholder value

Success through Teamwork, Integrity and People

The banks business is divided into four segments:

Retail, corporate, treasury and merchant banking.

Apart from this the bank is also into insurance, investment banking, mortgage

financing, credit cards, and depository services amongst others.

it is also registered on the following exchanges:

OTCEI

BSE

NSE

London stock exchange

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The present shareholding pattern is as mentioned below:

(As on 30/06/2009)

Administrator of the Specified

Undertaking of the UTI

27.72%

LIC 10.49%

GIIC and four PSU Insurance Companies 5.50%

Non-Promoters’ Holding 42.32%

Others 13.97%

GROWTH PROSPECT OF AXIS BANK

Over the last five years, the CAGR for loan growth for the banking industry

has been 25-26 per cent; for Axis Bank it has been above 40 per cent.

Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1.7x the

industry average.

In FY09 its advances grew at the rate of 37.5 per cent.

In FY10 they are expected to grow at the rate of 27-28 per cent and in FY11 at

25 per cent.

For the banking industry as a whole, the loan book is expected to grow at 18

per cent in FY10 and 16 per cent in FY11.

Thus, Axis Bank’s fast pace of growth is expected to sustain over the next couple of

years.

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SWOT ANALYSIS OF AXIS BANK

STRENGHTS:

1) Online Services: AXIS Bank provides online services of all it’s banking facilities.

It also provides D-Mart account facilities on-line, so a person can access his account

from anywhere he is.

[D-Mart is a dematerialized account opened by a salaried person for purchase & sale

of shares of different companies.]

2) Advanced Infrastructure: Branches of AXIS Bank are well equipped with

advanced technology to provide the customers with taster banking services. All the

computerized machines are located in suitable manner & are very useful to the

customers & staff of the bank.

3) Friendly Staff: The staff of AXIS Bank in all branches is very friendly & help the

customers in all cases. They provide faster services along with bonding & personal

relationship with the customers.

4) 12 hrs. Banking services: Compared to other bank AXIS bank provides long hrs.

of services i.e. 8-8 services to the customers. This service is one of it’s kind & is very

helpful for the customers who are in urgent need of money.

5) Other Facilities to the Customers & Employees: AXIS Bank also provides other

facilities like drinking water facilities, proper sitting arrangements to the customers.

And there are also proper Ventilation & sanitary facilities for the employees of the

bank.

6) Late night ATM services: AXIS bank provides late night ATM services to the

customers. The ATM centers of AXIS bank works even after 11:00pm. at night in

certain branches.

30

WEEKNESSES:

1) High Bank Service Charges: AXIS bank charges highly to customers for the

services provided by them when compared to other bank & that is why it is only in

the reach of higher class of society.

2) Less Credit Period: AXIS bank provides credit facilities but only upto limited

period. Even when the credit period is not over it sends reminder letters to the

customers which may annoy them.

OPPORTUNITIES:

1) Bank –Insurance services: AXIS bank also provide insurance services. That

means the bank can have a tie-up with a insurance company. The bank will advertise

& promote the different policies introduced by the insurance company & convince

their customers to buy insurance policies.

2) Increase in percentage of Returns on increase: AXIS bank also provide higher

returns on deposits in comparison of the present situation. This will also upto large

extent help the bank earn profits & popularity.

3) Recruit professionally guided students: Bank & Insurance is a special non-aid

course where the students specialize in the functioning & services of the bank & also

are knowledge about various tax policies. The bank can recruit these students through

tie-ups with colleges. Such students will surely prove as an asset to the bank.

4) Associate with social cause: The bank can also associate itself with social causes

like providing relief aid patients, funding towards natural calamities. But this falls in

the 4th quadrant so the bank should neglect it.

31

THREATS:

1) Competition: AXIS Bank is facing tight competition locally as well as

internationally. Bank like ICICI, CITI Bank, HSBC, ABM, Standered Chartered,

HDFC also provide equivalent facilities like AXIS do and also AXIS do not have

consistency in its international operation.

2) Net Services: AXIS Bank provides all kind of services on-line. There can be easy

access to the e-mail ids of the customers through wrong people. The confidential

information of the customers can be leaked easily through the e-mail ids.

3) Decentralized Management: Each branch manager is given the authority of

taking decisions in their respective branches. The decisions made by different

managers are diverse and any one wrong decision can laid to heavy losses to the bank.

4) No Proper Facilities To Uneducated customers: AXIS Bank provides all

services through electronic computerized machines. This creates problems to the less

educated people. But this threat falls in the 4th quadrant so its negligible. The company

can avoid this threat.

32

AXIS BANK FINANCIAL POSITION

Rs in Crore

Particulars Mar 07 Mar 08 Mar 09

Deposits 58,785.60 87,626.22 117,374.11

Advances 36,876.48 59,661.14 81,556.77

Share Capital 281.63 357.71 359.01

Net worth 3,402.21 8,770.69 10,214.80

Book Value 120.80 245.19 284.53

Interest earned 4,560.40 7,005.32 10,835.49

Interest

expenditure2,993.32 4,419.96 7,149.27

Net profit 659.03 1,071.03 1,815.36

Net NPAs 0.61% 0.36% 0.35%

Total Assets 73,257.21 109,577.84 147,722.06

Return on

Assets1.10% 1.24% 1.44%

Source: www.axisbank.com

GROWTH DEMAND DEPOSITS

33

Source: www.axisbank.com

CARDS BUSINESS

Cards fee income (FY09 – FY08)

Issuance:

Over 533,000 credit cards in force till end March, 09.

3rd largest debit card base in the country

1st Indian bank to launch travel currency cards in 9 currencies US$, Euro,

GBP, AUD.

1st Indian bank to launch remittance card & meal card

34

Source: www.axisbank.com

COMPOSITION OF RETAIL ASSETS

Product wise composition of retail assets portfolio (March, 09)

Source: www.axisbank.com

35

REVENUE BREAK UP OF AXIS BANK

Source: www.axisbank.com

NETWORK

Increasing Reach

Source: www.axisbank.com

Segment Revenue Mar 09

Treasury 20,290.71

Corporate /wholesale banking

7280.14

Retail banking 6675.51

Other banking business

(5.40)

36

NEW INITIATIVES BY AXIS BANK:

Remittance Card:

A unique product that has changed the way money is sent across borders.

Available as a delivery mode for remittances made through the Web Portal

www.Remit2India.com.

Based on the remitter’s request, a personalized Remittance Card is prepared

for the beneficiary, which is preloaded with the funds remitted to him in INR.

VISA Money Transfer Service:

To send money from an AXIS Bank account to any of the VISA Cards issued

in India

To pay VISA credit card bills by giving the card number and making a direct

payment

The sender’s account would be debited instantaneously with the transferred

amount, but the funds will reach the beneficiary’s VISA Card within one or

two days.

The service has been enabled through all Axis bank’s ATMs and i-Connect

(Internet Banking)

EMV standard based Platinum Credit Card:

Card has an embedded chip, which stores cardholder’s information in an

encrypted format, thereby providing the highest level of security to the

cardholder against possible misuse.

Offers clear authentication of debit and credit payments combined with easy

fraud detection.

The chip cannot be duplicated, ruling out counterfeiting and skimming. This

makes your card safer and secure than any other card in India.

37

TYPES OF SAVING ACCOUNT AT AXIS BANK

1. Zero Balance Savings Account

Features:

No Average Quarterly Balance requirement

Free International Debit Card with an Accidental Insurance cover up to Rs 2

lakhs* (charges for the primary holder are waived)

Free mobile banking facility

Access through more than 1000 branches and over 4055 ATMs (as on 31st

March 2010)

At-Par cheque facility with the clearing limit of Rs 50,000

24x7 Tele banking & Internet banking

Free quarterly statements

Free monthly e-statement

Documentation:

An Account Opening Form duly filled

One latest passport size photograph

Initial cheque of Rs 5,500

Photo identity proof like PAN card, Passport, Driving License or Voters card

Proof of residence like recent utility bill or bank account/credit card statement,

and-

Any two of the following documents:

Latest paid Post-paid mobile bill with a minimum bill payment of Rs. 1000/-.

The amount paid should not include any late payment fee or outstanding

payments of previous months

Minimum Net Salary of Rs. 20,000/- or other bank account statement (non

Axis Bank) with minimum average balance of Rs 25,000/-. The latest

statement should be for a minimum period of three months.

Customer Loyalty Card (any of the renowned retail chains like Pantaloons,

Life Style, Shoppers Stop, Globus, Westside only). Local retail chains (like

Spencer, Big Bazar and any other) offering a loyalty card would not be

permissible for the time being.

38

Proof of having a Platinum or Titanium Credit Card. Credit card statement

needs to be accepted as proof of the same.

Proof of owning a four-wheeler. Copy of RC book/card can be accepted as a

proof of owning a four-wheeler

Proof of owning a House. As a proof of owning a house, sale deed or paid

electricity or water bill or House tax receipt can be accepted.

Minimum Landline Bill payment of Rs. 1500 in the name of the prospective

customer

Latest Income Tax return with paid tax of minimum Rs 1.5 lac

2. Krishi Savings Account

Features:

Average Balance Requirement:

This account is offered with the requirement of maintaining the half-yearly

average balance of Rs 1000 only.

International Master Debit Card:

The Krishi Savings Account entitles you to an International Master Debit Card

with which you can access your account anytime through the Axis Bank ATM

network free of cost. This card comes with:

A cash withdrawal limit of Rs 25,000 per day

Free Accident Insurance cover of Rs 2 lacs

Anywhere Banking:

Being a Krishi account holder, you are entitled to access our wide network of

more than 700 branches and 3000 ATMs across 440 cities. You can now

easily carry out your transactions through any of the branches or ATMs.

At Par Cheque Book :

Your Krishi Savings Account comes with the At-Par Cheque facility. This

facility enables you to encash the cheques as local instruments at any of the

440 centres where the Bank has its presence, at no extra cost. Moreover, you

can also issue cheques at other centers upto the limit of Rs 50,000.

Free monthly e-statement

Documentation:

39

For the purpose of address proof and identity proof obtaining a single

document with photo identity and address (like election identity card) will

suffice, provided the address mentioned in the document is the same as the

present place of residence of the customer.

In cases where documents like Election Commission identity card is not

available, a letter from a recognized public authority or a government servant

like Talati/Patwari or similar revenue official may be obtained duly complying

with the following:

The document should contain the name, photograph, residential address and

the approximate period of residence by the customer at the given address.

The letter should not be more than one month old and the public official /

government servant should affix his rubber stamp and signature on the letter.

The letter should have a provision for further certification by the public

official / government servant wherever the address of the customer is being

changed.

Krishi Savings Account should be opened only for farmers. Hence the

customers are required to submit a document supporting his/her occupation.

This document can be any of the following:

Certificate from the Village Administrative Officer or Patwari

Land document

3. Easy Access Savings Account

Features:

At Par Cheque Book as an Easy Access Savings Account Holder, you will

receive the "At-par" cheque book. You can encash these cheques as local

cheques at any of the 257 centers where the bank has a presence, at no extra

cost. Drafts are now history.

ATM Network Easy Access Savings Account also entitles you to an

International Debit Card with which you can access your account anytime at

all our ATMs - both, Visa enabled and our partner banks - across the country.

Withdrawals and deposits (money as well as cheques) are possible with your

40

Debit Card. And unlike most other ATMs, an Axis Bank ATM allows you to

withdraw upto Rs 40,000 per day.

Anywhere Banking You can transact through any of our branch offices all of

which are interconnected for your banking convenience. Transactions like

cash deposits, cash withdrawal, transfers and clearing deposits can all be

carried out wherever you happen to be.

The Tele banking service provides you instant access to your savings account.

It offers you a wide range of services over the phone such as Account

Information, Balance Inquiry, Transaction Details, Status of your Cheque

(available only during branch business hours) and even Statement of Account

on Fax

iConnect The idea of "your Bank on your desktop" is now a reality with

iConnect. You can lookup the status of your savings account, request your

new cheque book, undertake a range of financial transactions, avail financial

advisory services, get information on mutual funds and shop online by just

clicking the mouse.

Mobile Banking Mobile Banking enables you to bank with us through your

mobile phone irrespective of where you are. Avail facilities like balance

inquiry, debit or credit alerts, last three transaction details and cheque status.

Account Statement Quarterly statements are delivered free of cost.

Quarterly Interest Every quarter, interest would be credited at the rate of 3.5%

per annum in your account

41

4. Women saving account:

Features:

Jewellery Insurance on Debit Card

Zero Balance Minor Account

Round-the-Clock access through ATMs:

There could be an instance when at 3 am you could require cash. With our

round-the-clock access you can withdraw cash up to Rs. 40,000 per day,

deposit cash/cheques, transfer funds, print a mini statement and pay

insurance premiums (LIC), all through our ATM channel which is one of

the largest ATM networks in the country.

Anywhere Banking:

Imagine being in an unknown city and still having complete access to all

your transaction needs. As a customer of the bank, you are in control and

not restricted to the branch. So even if you are travelling, you can access

your account easily from any of the 700 plus Axis Bank offices spread

over 400 cities across the country.

At-par cheque facility:

Your cheque will be treated as a local cheque within the vast Axis Bank

network of over 700 offices across 400 cities in India. Now no more

running around to get a Demand Draft issued.

Monthly Account Statement

Free monthly e-statement

Additional discounts on loans

iConnect:

The Complete online banking experience: Its the age of Wi-Fi. All your

banking needs should be on your fingertips, with our i-connect you can

check your account status, transfer funds, place online request for a new

cheque book and many more features without even having to visit an Axis

Bank branch.

Financial Advisory Services:

Our Financial Advisor will assist you with your financial planning and

help you to earn maximum returns on your savings.

Discount on Retail Purchases:

42

Just live the feeling of walking into a store and getting amazing discounts

not available to others. As you are a valued customer for us, we shall

endeavour to provide you with discounts at various outlets, periodically.

All you have to do is use your new Smart Privilege Debit Card and avail of

discounts at these outlets. Details of such tie-ups will be sent to you on a

regular basis.

Eligibility Criteria:

Average quarterly balance of Rs 10,000 for metro and urban locations

Average quarterly balance of Rs 5,000 for semi-urban locations

Average quarterly balance of Rs 2,500 for rural locations

5. Pension Savings Account

Features:

Zero Balance Savings Account

Anywhere Banking - Available at all centers

Free Multi-city At Par Cheque Books

Free monthly e-statement

Free International Debit-cum-ATM Card for the primary & Joint holder. The

account can be opened jointly only with spouse.

Personal Accident Insurance Cover of Rs. 2 lakhs [To keep your personal

accident insurance cover activated, you should have made a purchase

transaction in 365 days prior to the day of the incident & should have

maintained an average quarterly balance of Rs 5,000 (urban & metropolitan

branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the

two quarters before the date of the incident.]*

Free Payorder & Demand Draft

Internet Banking - Available through "iConnect"

Tele-banking - Free, Available 24 hours at select centers

Mobile Banking Facility

Demat Account - Account opening charges waived

Safe Deposit Lockers - Preferential allotment

43

Eligibility:

All employees of central government and civil ministries who are covered

under the Central Government Civil Pension Scheme operated by Central

Pension Accounting Office, Department of Expenditure and Ministry of

Finance.

All employees of Armed Force (Army, Navy & Air Force) under Ministry of

Defence who are covered under the Defence Pension Scheme operated by

Pension Sanctioning Authority/Defence Unit.

All the employees of an establishment with a workforce strength of more than

20 (including contract employees) and who have opted to be members of the

EPS 95 scheme.

Existing members of "Member of Employees" Family Pension Scheme.

44

COMPERATIVE ANALYSIS OF AIXS BANK SAVING A/C WITH

OTHER BANKS SAVING A/C

1) AXIS BANK V/S YES BANK

FEATURES AXIS BANK YES BANK

NO. OF PRODUCTS six: zero balance saving a/c,

krishi saving a/c,

Easyaccess, prime, women’s

saving a/c, pension saving

a/c

Two: silver saving

account, gold savings

account.

Average quarterly account

balance

Nil for zero balance, 1000

for krishi saving a/c, Rs 5000

in metro city RS 2500 in

semi urban city and Rs 1000

in rural for easyaccess a/c,

for prime a/c same as for

easyaccess a/c, nil for

woman saving a/c, nil for

pension a/c

Rs.10,000 for silver

savings account and

Rs.100000 for gold savings

account.

Fee for non maintenance of

quarterly average balance

Annual a/c maintenance

charges 500 per annum for

zero balance a/c, 750 for all

saving a/c holders

Rs. 500 for silver savings

account and Rs.600 for

gold saving account.

Statement of account Quarterly free, and monthly

e-statement free (if asked

for).

Quarterly free for both.

ATM usage Unlimited free . Unlimited free on all the

banks in India.

Regular debit card 95 for all saving a/c holders, Rs.149 for silver savings

account, free for gold

45

savings account.

Gold debit card Rs.500 issuance fee Rs.799 issuance fee

D.D. Rs.50 for amt up to

Rs.10,000;Rs.2.50 per 1000

for amt up to 50,000;Rs 2 per

1000 for amt greater than

50,000

Min Rs.50 then Rs.2.5 per

1000 for savings account

and Rs.1.5 per 1000 for

gold savings account.

Pay order (P.O.) Upto 50,000 is Rs 50

Above 50,000 is Rs

2.50/1000

5 free for savings account

and 10 free for gold

savings account, per year

Branch transaction 3 transactions per quarter nil

for zero balance a/c, beyond

3 transaction Rs 100 per

transaction for zero balance

a/c, cheque book charges Rs

5 per cheque leaf for zero

balance a/c, no such charges

for other account holders

5 transactions for savings

account and 10 transactions

for gold savings account

are free per year

Personalized cheque books Free upto 20 leaves per

quarter , if above 1 cheque

book per quarter Rs 50

Free

Balance enquiry Free Free

46

INTERPRETATION:

Axis bank provides various kinds of saving bank account as compare to yes

bank which is showing that axis bank has segmented its market more

strategically.

Terms and condition are quite simple and reasonable to all its customers in

case of axis bank then to yes bank.

Axis bank is providing various kinds of saving bank account facilities to its

customers. so, its services rates are quite higher in comparison to yes bank.

Axis bank charge Rs 95 for issuing a regular debit card for its all saving

account holders which is almost half of the issuing charges of Yes bank to its

saving bank account holders.

DD & PO commission rates of axis bank are bit higher as to Yes bank.

47

2) AIXS BANK V/S ICICI BANK

FEATURES AXIS BANK ICICI BANK

NO. OF PRODUCTS six: zero balance saving a/c,

krishi saving a/c,

Easyaccess, prime, women’s

saving a/c, pension saving

a/c

Three: category A, B and

C.

Average quarterly account

balance

Nil for zero balance, 1000

for krishi saving a/c, Rs 5000

in metro city RS 2500 in

semi urban city and Rs 1000

in rural for easyaccess a/c,

for prime a/c same as for

easyaccess a/c, nil for

woman saving a/c, nil for

pension a/c

Rs.5000 for A, Rs.2000 for

B, and Rs.1000 for C.

Fee for non maintenance of

quarterly average balance

Annual a/c maintenance

charges 500 per annum for

zero balance a/c, 750 for all

saving a/c holders

Rs.750 per qtr for A & B

and Rs.100 per qtr for C.

Statement of account Quarterly free, and monthly

e-statement free (if asked

for).

Free physical statement per

qtr otherwise Rs.200 per

month for physical form.

Free e-statement per

month.

ATM usage Unlimited free . Rs.20/month for cash

withdrawal & and Rs.60

for same with non partner

banks.

Regular debit card 95 for all saving a/c holders, Rs.99 per annum for all the

48

products.

D.D. Rs.50 for amt up to

Rs.10,000;Rs.2.50 per 1000

for amt up to 50,000;Rs 2 per

1000 for amt greater than

50,000

Rs.2 per thousand rupees

or part thereof, subject to a

minimum of Rs.50

Branch transaction 3 transactions per quarter nil

for zero balance a/c, beyond

3 transaction Rs 100 per

transaction for zero balance

a/c, cheque book charges Rs

5 per cheque leaf for zero

balance a/c, no such charges

for other account holders

Rs.2.50/

thousand, subject to

min of Rs.30

and max of Rs.10000

Personalized cheque books Free upto 20 leaves per

quarter , if above 1 cheque

book per quarter Rs 50

2 payable at par cheque

books of 25 leaves each

free in a quarter, Rs.50/-

for additional cheque book

of 25 leaves.

Balance enquiry Free Rs.10 with partner banks &

Rs.25 with non partner

banks.

49

INTERPRETATION:

ICICI bank saving bank account categorization is quite simple to understand

from a view point of costumer as to axis bank.

Quarterly saving bank account charges are quite similar in both the banks,

only difference of account holder categorization is the point of difference here.

For category C account holders, ICICI BANK is charging very nominal

maintenance fee from its customers, but in AXIS bank no such thing is done

for its customers.

By analyzing the two banks DD and PO rates, charges under axis bank are

higher than to ICICI bank.

ATM usage is unlimited free under axis bank, but Rs. 20 for normal customers

and Rs. 60 for non bank account holders is charged by ICICI bank.

50

3) AXIS BANK V/S HDFC BANK

FEATURES AXIS BANK HDFC BANK

NO. OF PRODUCTS six: zero balance saving a/c,

krishi saving a/c,

Easyaccess, prime, women’s

saving a/c, pension saving

a/c

Three products: regular,

savings plus & savings max;

each of which are further

divided into option 1 and 2.(I

have taken comparative

product that is option 1 of

regular savings acc.)

Average quarterly account

balance

Nil for zero balance, 1000

for krishi saving a/c, Rs 5000

in metro city RS 2500 in

semi urban city and Rs 1000

in rural for easyaccess a/c,

for prime a/c same as for

easyaccess a/c, nil for

woman saving a/c, nil for

pension a/c

Rs.5000

Fee for non maintenance of

quarterly average balance

Annual a/c maintenance

charges 500 per annum for

zero balance a/c, 750 for all

saving a/c holders

Rs.750 per qtr.

Statement of account Quarterly free, and monthly

e-statement free (if asked

for).

Monthly statements to be

Collected from branch.

Quarterly statements sent by

post

ATM usage Unlimited free . First 4 withdrawals free of

cost from any cirrus network

ATM

Regular debit card 95 for all saving a/c holders, Rs.100 plus taxes

D.D. Rs.50 for amt up to Rs.50 for amt up to 10000,

51

Rs.10,000;Rs.2.50 per 1000

for amt up to 50,000;Rs 2 per

1000 for amt greater than

50,000

Rs.75 for amt greater than

10000 and up to up 50000,

Rs. 2.50 per 1000 or part

thereof (Min Rs.150) for amt

greater than 50000

Pay order (P.O.) Upto 50,000 is Rs 50,

Above 50,000 is Rs

2.50/1000

Same as above.

Branch transaction 3 transactions per quarter nil

for zero balance a/c, beyond

3 transaction Rs 100 per

transaction for zero balance

a/c, cheque book charges Rs

5 per cheque leaf for zero

balance a/c, no such charges

for other account holders

Free 3 free in the qtr & Rs.

60 per additional transaction

on non-maintenance of Min

balance (cash

deposit/withdrawal)

Personalized cheque books Free upto 20 leaves per

quarter

if above 1 cheque book per

quarter Rs 50

Free, Rs.5 per leaf on non

maintenance of Min balance

Balance enquiry Free Free

INTERPRETATION:

52

Here also AXIS bank saving account services are more than to HDFC saving

bank account services.

AQB is same for various saving bank account holders under HDFC bank, and

different AQB for different saving account holders is required under AXIS

bank.

Non maintenance account charges are also kept same under HDFC bank

account, and different charges for different account holders are set under

AXIS bank.

AXIS bank is providing unlimited free ATM usage, and only first four

withdrawals are free under HDFC bank.

DD and PO charges are higher under HDFC bank then AXIS bank.

HDFC bank charges Rs.60 extra after first 3 bank transactions made by the

customers, charges are differently set as per to different account holders by

AXIS bank.

53

Sav

ings

dep

osit

s (R

s. b

n)

CURRENT A/C & SAVING A/C GROWTH OF ICICI BANK

Focus on CASA deposits

450

400

350

300

250

200

150

100

50

-

2003 2 004 2005 2006 2007 2 008 2009

Years

2003 2004 2005 2006 2007 2008 2009

CASA RATIO 15.5% 23% 24.5% 22.7% 21.8% 26.1% 28.7%

BRANCHES 446 469 562 614 755 1262 1419

Source: www.icici.com

CURRENT ACCOUNT & SAVING ACCOUNT GROWTH OF HDFC BANK

%

60.0

55.0

50.0

45.0

40.0

3QFY08 4QFY08 1QFY09 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10

Source: www.hdfc.com

54

CURRENT ACCOUNT & SAVING ACCOUNT GROWTH OF

AXIS BANK

Source: www.axisbank.com

55

BASIC FEATURES OF AXIS BANK CURRENT A/C

Overview

At Axis Bank, we are committed to creating an easy and comfortable banking

environment for your business. 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.

Axis Bank brings different kinds of current accounts for different types of businesses.

Select the one that best suits your business requirements.

Axis Bank's Current Accounts come equipped with the following features to give

maximum value for your money.

Features:

Anywhere Banking:

Our Current Account allows you to bank from all our branches and extension

counters. You can deposit cash, withdraw cash, deposit cheques, and issue 'at-

par' cheques at any of our branches. So bank at your own convenience.

Instant Fund Transfer:

You can transfer funds instantly between any of our branches. Funds transfers

can be effected online, right from your desktop, through our internet banking

services.

Internet Banking:

Axis Bank presents Corporate iConnect - a unique NetBanking 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

56

another. You can also execute bulk payments like salary and commission

across Axis Bank network, right from your desktop.

At-Par (Multicity) Cheque book:

Enjoy the benefits of multicity cheque book 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.

57

TYPES OF CURRENT A/C AT AXIS BANK

1. Normal current a/c:

Features:

At-Par Cheque Facility:

Issue cheques payable at par at any of our branches / outlets, presently over

800 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 drawn on any of our branches

and a wide network of correspondent bank locations.

Outstation Cheque Collection:

Avail outstation cheques collection through all our branches.

Other ancillary services:

Mobile Alerts

ATM cum International Debit Card

58

2. Business advantage a/c:

Features:

At-Par Cheque and Local Cheque Deposit Facility:

Issue cheques payable at par at any of our branches / outlets, presently over

800 across the country.

This facility is free for 10 transactions and upto Rs 15 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 on Axis Bank locations.

Free Fund Transfer Facility:

Upto 12 transactions per month across Axis Bank network almost

instantaneously.

Outstation Cheque Collection:

Avail outstation cheques collection through all our branches.

Other ancillary services:

Mobile Alerts

ATM cum International Debit Card

Phone Banking

Corporate iConnect

59

3. Club 50 current a/c:

Features:

Enhanced Transactional Benefits

Higher free home branch cash deposit limit upto Rs. 1.5 cr. per month

Maintain the required half yearly average balance and enjoy free non - home

branch cash deposit upto Rs. 2 lacs per day

As high as 1500 transactions free per month

1200 Anywhere Banking transactions free per month

Customized Cheque Stationery with Hologram

Customized Cheque stationery with Hologram for additional safeguard of

banking transactions.

Lifestyle Benefits / Privileges:

Enjoy lifestyle benefits / privileges like free subscription to magazines and

books, access to Business center at all our Priority Banking branches at select

locations, Priority Savings Bank accounts for all authorized signatories

(Directors, Partners or Proprietors), etc.

Free Doorstep Banking:

Deposit cash/cheques, withdraw cash or have demand drafts/pay orders

delivered at your office free of cost.

Free RTGS / NEFT Facility:

Maintain your required half yearly average balance and enjoy the benefits of

free RTGS / NEFT facility all through.

Free Cheque Books:

Avail the facility of free cheque books every month.

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.

60

COMPERATIVE ANALYSIS OF AXIS BANK CURRENT A/C

WITH OTHER BANKS CURRENT A/C

I) AXIS BANK V/S HDFC BANK

FEATURES AXIS HDFC

Number of products Three: normal, business

advantage, club 50

Four: plus, trade, premium,

and regular

Average quarterly balance :Rs. 10000 for metro/ urban

branches &

Rs. 5000 for semi urban/rural

branches for normal

:Rs 25000 for metro/

Urban & Rs 12500 for semi

urban/rural for business

advantage.

: Rs 50lacs for metro/urban

& Rs 25lacs for semi

urban/rural for club 50.

Rs.100000 for plus,

Rs.40000 for trade, Rs.25000

for premium, & Rs.10000 for

regular

Fee for non maintenance of

AQB

;Rs. 400 for both metro &

rural in case of normal.

:Rs 450 for both metro&

rural for business advantage

:club 50: Rs 5000 per 6

months if balance is b/w

10lacs to 20lacs & Rs 10000

per 6 months if balance is

Rs.600 for plus, Rs.1200 for

trade, Rs.900 for premium

and Rs.750 for regular.

61

less than 10lacs for

metro/urban

: Rs 5000 per 6 month if

balance is b/w 5lacs to

10lacs & Rs 10000 is

balance is less than 5lacs for

rural.

Statement of account Free (physical or e-mail) Free once in a month

Issue of cheque book Normal: 1st 25 cheque leaves

are free than upto 50 per

month Rs 2/leaf & b/w 51 to

250 Rs 5/leaf & above 251

Rs 8/leaf

Business advantage: same as

for normal

Club 50: free

PAP cheque books; 300

leaves free pm for plus, 200

leaves free pm for trade, 100

leaves free pm for premium

and Rs.2 per leaf for regular

ATM usage Free usage of axis bank,

Rs.1.50 on withdrawal from

other banks

Free usage of HDFC bank

ATMs.

Issue of international debit

card

Free for 1st year, Rs.150

there after, for club 50 free

Free for first year

Transfer from one account

to other (intercity)

Free for all Free for all

D.D/P.O. Normal: ad valorem charges

Rs 1.00/1000 & transaction

charges Rs 50 per P.O

: for D.D ad valorem charges

Rs 1.50/1000 &

transaction charges Rs 50

Business abvantage:

ad valorem charges free &

transaction charges 3 per day

Free up to 50 DDs per

month. Above 50

transactions, charges @ Rs.

25/- per DD for plus, Free up

to 30 DDs per month. Above

30 transactions, charges @

Rs. 25/- per DD for trade;

DD Amount Up to Rs.

50,000 charges Rs. 40/- per

62

free above that Rs 50 per PO

: for DD ad valorem charges

free upto 3lacs above that Rs

1/1000 &

Transaction charges free

upto 10 DD per month above

that Rs 50 per DD.

Club 50: DD & PO free.

DD, Above Rs. 50,000 and

up to Rs. 100,000- Rs. 25/-,

Above Rs. 100,000- Free for

premium and DD Amount

Up to Rs.50,000 charges

Rs.40/- per DD, Above

Rs.50,000 and up to

Rs.100,000- Rs.25/-, Above

Rs.100,000- Free for regular.

Balance enquiry Information not available Rs.25 for all

INTERPRETATION:

AQB is broadly categorized for rural and urban areas under AXIS bank,

but no such rural and urban classification is made by HDFC bank for its

current account customers.

As per to different heads categorization charges are charged by both the

banks from its current account holders under the fee charged by them for

maintaining their AQB balances.

ATM usage is unlimited free under HDFC bank for its holders of account,

but Rs. 1.50 is charged by in case of AXIS bank account transaction from

other ATM’S.

Different DD and PO rates are applied by both the banks according to the

kinds of account facilities they are providing to their ultimate customers.

2) AXIS BANK V/S YES BANK

63

FEATURES AXIS BANK YES BANK

Number of products Three: normal, business

advantage, club 50

Four: CA 30, CA 70, CA 200

and CA 500.

Average quarterly balance :Rs. 10000 for metro/ urban

branches &

Rs. 5000 for semi urban/rural

branches for normal

:Rs 25000 for metro/

Urban & Rs 12500 for semi

urban/rural for business

advantage.

: Rs 50lacs for metro/urban

& Rs 25lacs for semi

urban/rural for club 50.

Rs.30000, Rs.70000,

Rs.200000 and Rs.500000

respectively for the above

products.

Fee for non maintenance of

AQB

;Rs. 400 for both metro &

rural in case of normal.

:Rs 450 for both metro&

rural for business advantage

:Rs 5000 per 6 months if

balance is b/w 10lacs to

20lacs & Rs 10000 per 6

months if balance is less than

10lacs for metro/urban

: Rs 5000 per month if

balance is b/w 5lacs to

10lacs & Rs 10000 is

balance is less than 5lacs.

Rs.1500, Rs.3000, Rs.4500,

and Rs.6000 respectively for

the above products

64

Statement of account Free (physical or e-mail) Free once in a month.

Issue of cheque book Normal: 1st 25 cheque leaves

are free than upto 50 per

month Rs 2/leaf & b/w 51 to

250 Rs 5/leaf & above 251

Rs 8/leaf

Business advantage: same as

for normal

Club 50: free

unlimited free for all.

ATM usage Free usage of axis bank,

Rs.1.50 on withdrawal from

other banks

Information not available.

Issue of international debit

card

Free for 1st year, Rs.150

there after, for club 50 free

Information not available.

Transfer from one account

to other (intercity)

Free for all Rs.25 lakhs per month

subsequent 0.50 per Rs.1000

for CA 25, Rs.50 lakhs per

month subsequent 0.50 per

Rs.1000 for CA 75, and

unlimited for the rest.

D.D/P.O. Normal: ad valorem charges

Rs 1.00/1000 & transaction

charges Rs 50 per P.O

: for D.D ad valorem charges

Rs 1.50/1000 &

transaction charges Rs 50

Business abvantage:

ad valorem charges free &

transaction charges 3 per day

free above that Rs 50 per PO

: for DD ad valorem charges

free upto 3lacs above that Rs

DD:2 Free Per Month

Min-Rs.100 Max-Rs.5000

for CA 25, 5 Free Per Month

subsequent Rs.1.75 per

rs.1000 or part there of Min-

Rs.100 Max-Rs.5000 for CA

75, 5 Free Per Month

subsequent Rs.1.50 per

rs.1000 or part there of

Min- Rs.100 Max-Rs.5000

for CA 200 and free for CA

65

1/1000 &

Transaction charges free

upto 10 DD per month above

that Rs 50 per DD.

Club 50: DD & PO free.

500.

PO: 2 Free Per Month

Subsequent 0.75 per

Rs.1000. Min- Rs.75 Max-

Rs.5000 for CA 25, 5 Free

Per Month. Subsequent 0.75

per Rs.1000. Min- Rs.75

Max- Rs.5000 for CA 75 and

free for the rest.

Balance enquiry Information not available Information not available.

66

FIXED DEPOSITS AT AXIS BANK

Axis Bank offers you simple reinvestment Fixed Deposits (at very competitive

interest rates), which can be opened with a minimum investment of Rs 10,000. You

can make additions to your deposit in multiples of Rs 1,000 each. The tenure of your

deposit must be a minimum of 6 months.

Deposit Schemes:

Reinvestment Deposits:

In a reinvestment deposit, the interest accrued to your deposit at the end of each

quarter is invested along with the principal. The tenure of your deposit must be a

minimum of 6 months. At the end of the quarter, the interest and the principal are both

rolled over, and the interest is calculated on the total sum. Income tax is deducted at

source.

Automatic Rollover:

As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on

maturity (for both the principal and interest). You can select this option in the

Account Opening Document (AOD). The options available are:

Rollover only Principal:

Only the principal amount will be rolled over. The interest will be either credited to

your designated account or paid out.

Rollover Principal and Interest accrued in Reinvestment Deposit:

This will rollover both the deposit and the interest accrued for the same tenure at the

interest rate applicable on the maturity date.

On or before the maturity date, you can make the following changes in the rollover

instructions of the deposit:

Change in tenure

Change in maturity instructions

Change in payment instructions

Change in principal (only reduced amount)

67

The following documents are required when applying for a Fixed Deposit

An Individual, Hindu Undivided Family,

Sole Proprietorship Concern

A valid passport or a valid driving license

An introduction by any other bank or an

introduction by an Axis Bank Savings

Account holder for the last six months

A photograph

Trusts Copy of the Trust Deed

Copy of the registration certificate

Copy of the Resolution of The Trustees

Authorizing the members concerned to

open and operate the account

Photographs of the members operating

the account

Associations / Clubs Bye-laws of the Association

Copy of the Resolution by the board

authorizing the members concerned to

open and operate the account

Photographs of the members operating

the account

Partnership Firm Partnership Deed

Letter from partners approving the

persons concerned to open and operate

the account

Photographs of the persons operating the

account

68

TYPES OF FIXED DEPOSITS AT AXIS BANK

1. Recurring Deposits:

Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up

your savings through regular monthly deposits of fixed sum over a fixed period of

time.

Features:

Recurring deposits are accepted in equal monthly installments of minimum

Rs 1,000 and above in multiples of Rs 500 thereafter.

The fixed number of installments for which a depositor can opt are 12, 24, 36,

39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

Transfer of Accounts - a recurring deposit account can be transferred from one

office of the Bank to another branch.

The amount of installment once fixed, cannot be changed.

Installment for any calendar month is to be paid on or before the last working

day of the month. Where there is delay in payment of installment, one can

regularize the account by paying the defaulted installment together with a

penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a

month will be treated as full month for the purpose of calculating the penalty.

The total amount repayable to a depositor, inclusive of interest, depends on the

amount of monthly installments and the period of deposit.

2. Encash 24:

The Encash 24 (Flexi Deposit) gives you the liquidity of a Savings Account coupled

with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit

linked to your Savings Account providing you the following unique facilities:

Maximum Returns:

Your money is no longer idle. As soon as the balance in your Savings Account

crosses over Rs 25,000, the excess, in multiples of Rs 10,000 will be transferred

automatically to a higher interest earning Fixed Deposit Account. The maturity of

fixed or term deposits formed as a result of transfer of money from the Savings Bank

69

account will be for a maximum period of 181 days and the interest will be calculated

on simple interest rate basis.

Maximum Liquidity:

The money parked in Fixed Deposits as a result of the above mentioned sweep out

from your Savings account can be easily accessed by issuing a cheque, withdrawing

through ATM etc. This amount is automatically reverse swept from the most recently

formed Fixed Deposit in units of Rs 5,000 to the Savings account whenever the

balance in your Savings account falls below Rs 25,000. The amount broken form your

Fixed Deposit will earn interest rates at the applicable rate for the period that the

deposit was held with the Bank. The remaining amount of Fixed Deposit will continue

to earn the contracted rate of interest.

Auto Renewal:

On maturity of your linked Fixed Deposit, the Bank will automatically renew it for a

maximum period of 181 days.

3. Tax Saver Fixed Deposit:

In the Finance Bill of 2006, the government had announced Tax benefits to Bank

Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide

Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.

The salient points of the scheme notification are; (a) Fixed tenure without premature

withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100

minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt

that shall be the basis of claiming tax benefit.

Benefits of tax break u/s 80C of IT Act Benefit Illustrator Example:

Assume that a customer invests Rs 100,000 in this scheme @ 8% p.a. in fixed deposit

for five years. He will get a benefit of Rs 30,600 at 30.6 % on the eligible investment

of INR 100,000 assuming that he is in Rs 2,50000 lac to Rs 10,0000 lac tax bracket,

thus his effective investment would be Rs 69,400. He would earn Rs 8000 (08 percent

on 1 lac) as interest per annum, which would translate to a return of 11.5 percent on

the effective investment of Rs 69,400.

INTERST RATE OF FD AT AXIS BANK

70

Interest rate normal For senior citizen

(As on 31st mar, 2010)

PERIOD

DEPOSITS

On

Deposits

Below

Rs 15

lakhs

on Deposits of Rs

15 lakhs < Rs 50

Lakhs

on Deposits of

Rs 50 lakhs <

Rs 1 Crore

on Deposits

below Rs. 50

lakhs

on Deposits

of Rs 50

lakhs < Rs 5

Crore

7 days to 14 days - 1.00 1.00 - -

15 Days to 29 Days 2.50 2.50 2.50 2.50 2.50

30 days to 45 days 3.00 3.00 3.00 3.00 3.00

46 days to 60 days 3.50 3.50 3.50 3.50 3.50

61 days to less than 3

months

4.00 4.00 4.00 4.00 4.00

3 months to less than

4 months

4.50 4.50 4.50 4.50 4.50

4 months to less than

6 months

5.00 5.00 5.00 5.00 5.00

6 months to less than

9 months

6.00 6.00 6.00 6.75 6.75

9 months to less than

1 year

6.00 6.00 6.00 6.75 6.75

1 year to less than 14

months

6.50 6.50 6.50 7.25 7.25

14 months to less than

2 Years

6.60 6.60 6.60 7.35 7.35

2 years to less than 30

months

7.00 7.00 7.00 7.75 7.75

30 months to less than

3 years

7.00 7.00 7.00 7.75 7.75

3 years to less than 5 7.

00

7.00 7.00 7.75 7.75

5 years upto 10 years 7. 7.00 7.00 7.75 7.75

71

00

INTEREST RATES ON TAX SAVER DEPOSITS

5 years only (Amount Capped at Rs. 1 lac

per customer per Financial Year)

INTEREST RATES(%) (p.a.)

Regular Depositor (Individual & HUF) 7.25

Senior Citizen (Individual) 8.00

72

FD INTEREST RATE AT ICICI BANK

Normal interest rate Interest rate for senior citizen

(As on 31st Mar, 2010)

Term Deposits

(All Maturities)

Less than Rs.15

Lakhs (w.e.f

April 08, 2010)

For Deposits

Rs.15 Lakhs

and above but

less than

Rs.1.Crore

(w.e.f April 08,

2010)

Less than Rs.15

Lakhs (w.e.f

April 08, 2010)

For Deposits

Rs.15 Lakhs

and above but

less than

Rs.1.Crore

(w.e.f April 08,

2010)

7-14 daysN.A 3.50 N.A 4.00

15-29 days3.50 3.50 4.00 4.00

30-45 days3.50 3.50 4.00 4.00

46-60 days3.50 3.50 4.00 4.00

61-90 days 3.50 3.50 4.00 4.00

91 days to 120

days 5.25 4.00 5.75 4.50

121 days to 180

days5.25 4.25 5.75 4.75

181 days to 210

days6.00 5.50 6.50 6.00

211 days to 269

days6.00 6.00 6.50 6.50

270 days to less

than 1 year 6.00 6.00 6.50 6.50

1 year to 389

days6.25 6.25 6.75 6.75

73

390 days

6.75 6.75 7.25 7.25

391 days to 589

days6.25 6.25 6.75 6.75

590 days

6.75 6.75 7.25 7.25

591 days to less

than 2 years 6.25 6.25 6.75 6.75

2 years to 989

days7.00 7.00 7.50 7.50

990 days 7.25 7.25 7.75 7.75

991 days to less

than 3 years7.00 7.00 7.50 7.50

3 years to less

than 5 years7.50 7.50 8.00 8.00

5 years upto 10

years7.75 7.75 8.25 8.25

74

AXIS BANK RATIO ANALYSIS

1. Capital Adequacy Ratio from March 2008 – March 2010.

Capital Adequacy Ratio

11.57%

13.73% 13.69%

10.00%

10.50%

11.00%

11.50%

12.00%

12.50%

13.00%

13.50%

14.00%

2008 2009 2010

Year

Per

cen

tag

e

Capital Adequacy Ratio

Interpretation:

In above analysis, it has been found that capital adequacy ratio is increasing year by

year in 2008 it was 11.57%, in 2009 it increased to 13.73% & in 2010 it slightly

decreased to 13.69%.

2. Net Profit Margin

Net Profit Margin

12.01% 12.22%

13.31%

11.00%

11.50%

12.00%

12.50%

13.00%

13.50%

2008 2009 2010

Year

Per

cen

tag

e

Net Profit Margin

Interpretation:

75

In above analysis, it has been found that net profit margin is increasing year by year in

2008 it was 12.01%, in 2009 it increased to 12.22% & in 2010 it increased

to13.31%.it show that Axis bank profit margin is increasing yr by yr which shows that

Axis bank have high margin of safety. Its means sales are increasing.

3. Operating Expense

Operating Expense

23.26%

26.20%24.95%

21.00%

22.00%

23.00%

24.00%

25.00%

26.00%

27.00%

2008 2009 2010

Years

Per

cen

tag

e

Operating Expense

Interpretation:

In above analysis, it’s clear that operating expense is increasing year by year in 2008

it was 23.26%, in 2009 it increased to 26.20% & in 2010 it slightly decreased to

24.95%. In 2009 operating expense increased to 26.20% which shows that in this year

investors get less profit but in 2010 operating expenses decreased.

4. Return On Net Worth:

76

Return on Net Worth

19.37%

12.21%

17.77%

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2008 2009 2010

Year

Per

cen

tag

e

Return on Net Worth

Interpretation:

In above analysis, it has been found that return on net worth is changing year by year

in 2008 it was 19.37%, in 2009 it decreased to 12.71% & in 2010 it increased to

17.77%. Return on net worth measures a corporation's profitability by revealing how

much profit a company generates with the money shareholders have invested. In

above analysis its is clearly shown that in 2008 axis bank generate good amount of

profit through its share holders investment but in 2009 it decreased ,and 2010 it

increased to 17.77% .  

5. Net Interest Income

77

Net Interest Income

4.01%4.74% 4.98%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

2008 2009 2010

Year

Per

cen

tag

e

Net Interest Income

Interpretation:

In above analysis, it has been found that net interest income is increasing year by year

in 2008 it was 4.01%, in 2009 it increased to 4.74% & in 2010 it increased to 4.98%.

Which show that Axis bank income after paying interest on deposits is increasing year

by year which shows that bank have good margin b/w interest received and interest

paid.

6. Non Interest Income

Non Interest Income

0.03%0.02%

0.06%

0.00%

0.01%

0.02%

0.03%

0.04%

0.05%

0.06%

0.07%

2008 2009 2010

Year

Per

cen

tag

e

Non Interest Income

Interpretation:

78

In above analysis, it has been found that non interest income is changing year by year

in 2008 it was 0.03%, in 2009 it decreased to 0.02% & in 2010 it increased to 0.06%.

7. Net Profit

Net Profit

1.07% 1.17%1.41%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

2008 2009 2010

Year

Pe

rce

nta

ge

Net Profit

Interpretation:

In above analysis, it has been found that non interest income is increased year by year

in 2008 it was 1.07%, in 2009 it increased to 1.17% & in 2010 it increased to 1.41%.

In above analysis it is clearly shown this net profit of Axis bank is increasing year by

year which show that Axis bank sales increasing & and it also manage its expenses

very efficiently

8. Earning Per Share

79

Earning Per Share

23.40%29.94%

50.57%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

2008 2009 2010

Year

Pe

rce

nta

ge

Earning Per Share

Interpretation:

In above analysis, it has been found that non interest income is increased year by

year in 2008 it was 23.40%, in 2009 it increased to 29.94% & in 2010 it increased

to 50.57%.It shows that share value oh share is increasing and share holder

earning more year by year.

9. Equity Dividend

80

RECOMMENDATIONS

• AXIS Bank needs to lower its interest rate charged from the customer as

compared to other banks so that more number of customers can be attracted.

• AXIS bank needs to have an efficient customer service system to provide

better services to the customer.

Interpretation:

In above analysis, it has been found that non interest income is increased year by year

in 2008 it was 45%, in 2009 it increased to 60% & in 2010 it increased to 100%. Is

show investors get high amount of divided on there investment which is increasing

year by year.

FINDINGS

81

When I compare saving a/c of axis bank with other banks I found that axis

bank provide more varieties of saving a/c to its customer than its competitor

banks.

But services charges of axis bank are quite higher than its competitors.

By analyzing the DD and PO rates, charges under axis bank are higher than to

its competitor’s banks.

Average quarterly balance maintenance charges are also high in axis bank.

When I compare current a/c of axis bank with its competitors banks I found

that AQB is broadly categorized for rural and urban areas under AXIS bank,

but no such rural and urban classification is made by its competitors banks for

its current account customers.

Different DD and PO rates are applied by the banks according to the kinds of

account facilities they are providing to their ultimate customers.

Average quarterly balance is less and broadly categorized current a/c is offer

by axis bank to its customers. As compare to its competitors.

DD & PO charges are different for different current a/c holders in axis bank.

After doing ratio analysis I found that Axis bank profit margin is increasing yr

by yr which shows that Axis bank have high margin of safety. Its means sales

are increasing .which is good for future growth.

In 2008 operating expense of Axis bank is low in comparison of yr 2009

which shows that in 2009 Axis bank does not manage its operating expenses

efficiently. but in 2010 bank have less operating expenses as compare to 2009.

I also found that in axis bank have good return on net worth in 2008 which shows

that axis bank generate good amount of profit through its share holders

investment ,but in 2009 it decreased ,and 2010 it increased to 17.77% .  

Axis bank also generate good amount of through is net interest income in 2008

, but in 2009 it was slightly decreased . And 2010 it increased further.

Axis bank net profit is also increasing year by year which is good sing for

future growth and this growth also help them in attracting new investors &

customers.

EPS is also increasing every years which shows that Axis bank market share

value is increasing & market share is also increased in past few years.

RECOMMENDATION

82

• AXIS bank should need to lower the charges rate if the balance falls below

Average quarterly balance.

• AXIS bank should work on their field networking and services to enhance

more credibility.

• A wide publicity to be given about the organization and its products through

various means of communications to keep growth moments.

• AXIS bank should target customers that are ranging between 25-30 age group

because it was found that they are more interested in taking Business loan & to

apply for new account

.

• If AXIS bank wants to compete their rivals like ICICI & HDFC they should

minimize, the AQB so, that they can increase customer database.

• New and different product should be launched to attract more customers.

• Customer service should be improved.

• To eliminate the dissatisfaction proper workshop and awareness programs like

campaigning are helpful and held on the client origination.

CONCLUSION

83

My experience with Axis Bank Ltd. is outstanding. While working in Axis Bank I

found that this bank has developed manifold in short period of time due to facilities

and services provided to their customer and this growth rate can be keep it up if they

start to go in semi-urban areas. In last couple of years they have opened new many

branches and they should open many more. The working staffs are very co-operative

in nature and due to that the bank will also get good benefit. Axis Bank has provided

their customer Net-banking facilities and due to that transactions are done fast.

Charges at Axis Bank are when I compare it with Yes bank and ICICI bank. Charges

are high because Axis bank provides more variety of account to its customer. And

when I compare Axis bank to HDFC bank charges of axis bank is less than HDFC

bank.

Axis bank also provide ATM services 24 hours , also give free balance enquiry

To its account holder , it also provide addition services to its account holders like bill

payment , tax payment, mobile all this addition services are free of cost . But Axis

bank competitor charge for this services.

Axis bank also provide i-connect facility to it’s a/c which is unique service introduced

by axis bank which is plus point of axis bank against its competitors. ICICI is closest

competitor of axis bank because there is slightly difference between charges and it

also provides almost similar types of facilities.

Axis bank categorized its account according to regional wise like metro city, urban,

rural, semi-urban and charged according to persons income, average quarterly balance

maintenance is also different for different account holder. Fee for non maintenance of

quarterly average balance is charged by axis bank according to a/c holder’s category.

But ICICI, HDFC charges quit similar fee for non-maintenance of AQB from there

a/c holders.

Past record of axis bank shows that net profit, net interest of Axis bank, is increasing

year by year this is only because they offer more varieties of account to there

customer according to there needs, business profile. And Yes bank, & other

competitors of Axis bank does not provide varieties of account to there customer.

They only provide two, three types of a/c. Market share of axis bank is also increasing

year by year which is show in earning per share ratio as compare to its competitors

In addition, Axis bank offers corporate restructuring advisory services, mergers and

acquisitions advisory services, acquisition funding arranging services, infrastructure

and project advisory services, techno-economic feasibility reports, and business plan

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preparation and bid process management, as well as acts as debenture trustees and

trustees for securitization issues. Market share of axis bank is also

BIBLIOGRAPHY

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www.axisbank.com

www.google.com

www.finance.india.mart.com

Journals & Brouchers of Axis Bank

Business and economics magazine

Economics times

ANNEXURE - 1

INCOME STATEMENT

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Currency inMillions of Indian Rupees

As of: Mar 312007

Reclassified

Mar 312008

Reclassified

Mar 312009

Reclassified

Mar 312010

4-YearTrend

Revenues 10,099.1 17,959.2 29,159.3 39,642.1

Other Revenues -2,676.1 -5,796.4 -19,093.9-

27,301.0

TOTAL REVENUES 22,107.7 38,015.2 46,867.3 62,405.3

Cost of Goods Sold 1,289.8 1,907.6 2,247.0 3,043.8

GROSS PROFIT 20,817.9 36,107.6 44,620.3 59,361.6

Selling General & Admin Expenses, Total

8,627.9 14,869.5 20,357.5 25,704.1

Other Operating Expenses 2,275.9 4,890.0 6,133.5 8,876.0

OTHER OPERATING EXPENSES, TOTAL

10,903.8 19,759.5 26,491.0 34,580.1

OPERATING INCOME 9,914.1 16,348.1 18,129.3 24,781.4

EBT, EXCLUDING UNUSUAL ITEMS 9,914.1 16,348.1 18,129.3 24,781.4

EBT, INCLUDING UNUSUAL ITEMS 9,914.1 16,348.1 18,129.3 24,781.4

Income Tax Expense 3,371.6 5,756.7 -- --

Earnings from Continuing Operations 6,542.5 10,591.4 18,129.3 24,781.4

NET INCOME 6,542.5 10,591.4 18,129.3 24,781.4

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

6,542.5 10,591.4 18,129.3 24,781.4

NET INCOME TO COMMON EXCLUDING EXTRA ITEMS

6,542.5 10,591.4 18,129.3 24,781.4

ANNEXURE – 2

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Cash Flow Statement

Currency inMillions of Indian Rupees

As of: Mar 312007

Reclassified

Mar 312008

Reclassified

Mar 312009

Reclassified

Mar 312010

4-YearTrend

NET INCOME 6,542.5 10,591.4 18,129.3 24,781.4

Depreciation & Amortization 1,120.1 1,593.0 1,902.2 2,378.7

DEPRECIATION & AMORTIZATION, TOTAL

1,120.1 1,593.0 1,902.2 2,378.7

(Gain) Loss from Sale of Asset 29.1 151.8 82.0 44.9

(Gain) Loss on Sale of Investment 1,657.2 1,043.1 2,005.7 607.4

Asset Writedown & Restructuring Costs 17.7 213.2 661.5 564.7

Other Operating Activities -763.8 -371.5 -2,093.4 -1,672.0

Provision for Credit Losses 1,986.3 4,760.4 8,370.7 13,561.3

Change in Other Working Capital -144,427.8 -244,927.6 -223,081.7-

279,669.7

CASH FROM OPERATIONS -133,811.7 -226,944.3 -194,026.2-

239,403.4

Capital Expenditure -2,273.9 -4,417.4 -3,883.3 -4,149.3

Sale of Property, Plant, and Equipment 34.9 126.4 399.9 189.7

Investments in Marketable & Equity Securities

-34,264.6 -44,515.7 -91,764.6 -46,793.1

CASH FROM INVESTING -36,503.7 -48,806.8 -95,247.9 -50,752.7

Long-Term Debt Issued 17,128.1 -- 19,050.6 18,214.3

TOTAL DEBT ISSUED 17,128.1 -- 19,050.6 18,214.3

Long Term Debt Repaid -- -720.8 -- --

TOTAL DEBT REPAID -- -720.8 -- --

Issuance of Common Stock 359.4 45,466.8 388.6 39,031.7

Common Dividends Paid -1,117.4 -1,488.1 -2,516.0 -4,205.5

TOTAL DIVIDEND PAID -1,117.4 -1,488.1 -2,516.0 -4,205.5

Other Financing Activities 186,714.9 288,343.2 297,383.1 239,210.0

CASH FROM FINANCING 203,085.0 331,601.2 314,306.3 292,250.5

Foreign Exchange Rate Adjustments -5.0 22.1 106.6 -204.1

NET CHANGE IN CASH 32,764.6 55,872.1 25,138.8 1,890.2

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ANNEXURE - 3

BALANCE SHEET

Mar '08 Mar '09 Mar '1012 mths 12 mths 12 mths

Capital and Liabilities:Total Share Capital 357.71 359.01 405.17Equity Share Capital 357.71 359.01 405.17Share Application Money 2.19 1.21 0.17Preference Share Capital 0.00 0.00 0.00Reserves 8,410.79 9,854.58 15,639.27Revaluation Reserves 0.00 0.00 0.00Net Worth 8,770.69 10,214.80 16,044.61Deposits 87,626.22 117,374.11 141,300.22Borrowings 5,624.04 10,185.48 17,169.55Total Debt 93,250.26 127,559.59 158,469.77Other Liabilities & Provisions 7,556.90 9,947.67 6,133.46Total Liabilities 109,577.85 147,722.06 180,647.84

Mar '08 Mar '09 Mar '1012 mths 12 mths 12 mths

AssetsCash & Balances with RBI 7,305.66 9,419.21 9,473.88Balance with Banks, Money at Call

5,198.58 5,597.69 5,732.56

Advances 59,661.14 81,556.77 104,343.12Investments 33,705.10 46,330.35 55,974.82Gross Block 1,384.70 1,741.86 2,107.98Accumulated Depreciation 590.33 726.45 942.79Net Block 794.37 1,015.41 1,165.19Capital Work In Progress 128.48 57.48 57.24Other Assets 2,784.51 3,745.15 3,901.06Total Assets 109,577.84 147,722.06 180,647.87Contingent Liabilities 78,028.44 104,428.39 296,125.58Bills for collection 16,569.95 29,906.04 35,756.32

Book Value (Rs) 245.13 284.50 395.99

CASE STUDY

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COMPANY PROFILE

With a central office in Mumbai, AXIS Bank has 841 branches and more than 3,600

ATMs in 521 locations across India. AXIS also has international offices in Singapore,

Hong Kong, Shanghai and Dubai, with a focus on corporate lending, trade finance,

syndication, investment banking, risk management, and liability businesses. In the

financial year ending March 31, 2009, AXIS Bank reported net profits of USD $370

million – a nearly 70 percent growth over the previous year.

CHALLENGES

AXIS Bank is negotiating a variety of business challenges that are both unique to the

organization and familiar to the industry as a whole, including high data volumes, rapid

growth, tighter competition, and an increasing number of fraudulent and undesirable

transactions. The bank’s top internal challenges include operational risk management,

high personnel turnover rates, tighter regulatory demands, on-site internal audit gaps, and

meeting customer requirements in a competitive market.

India has also been affected by the recent global downturn, which has changed how top

management in every organization, including Axis Bank and regulators, view risk within

the enterprise. The audit committee is demanding mechanisms that increase confidence in

internal audit processes and technical practices. The AXIS audit team also needs to

analyze 100 percent of its corporate transactions, negotiate multiple data platforms,

access source data without compromising integrity, and achieve a more standardized,

repeatable approach to data analysis.

CHALLENGS FACED BY AXIS BANK

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Processing time for large volumes of data

Mitigating operational risk

Accessing data

SOLUTION

After reviewing multiple technology solutions, AXIS managers chose ACL audit

analytics to support a strategic audit and risk monitoring plan. The team crafted several

key ACL goals and developed more than 50 ACL scripts to monitor daily transactions

and identify exceptions such as income leakage or regulatory and compliance violations.

ACL extracts data from the company’s backup server during non-peak hours and

analyzes this data to generate exception reports, which are automatically sent to the

appropriate stakeholders. Extraction, analysis and report distribution used to be

performed manually, but with ACL, these key steps are now automated without any

human intervention.

AXIS Bank also took an innovative approach to its work plan by dividing audit staff into

three teams responsible for supervising ad-hoc analyses, data analysis automation, and

fraud assessments and investigations. These teams work from the central Mumbai office,

but ACL analytics are now being used to strengthen controls in a number of additional

bank departments and offices

KEYBENEFITS

Direct access with full population data coverage»»

Time savings, fewer data anomalies and quick »»risk mitigation

Income recoveries, costs savings and higher »»audit confidence

RESULTS

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The AXIS Bank audit team has successfully used ACL software to implement a

company-wide monitoring and data analysis strategy. Transactions from the bank’s 841

branches are routinely analyzed and exceptions are quickly delivered to appropriate

internal stakeholders. Trend analyses show that total data deviations have dropped by

approximately 30 to 50 percent since the ACL implementation. The team has a direct

database link and can analyze entire data populations with almost no delay between

transaction and analysis. This full coverage has boosted confidence and eliminated

inadvertent biases from limited sample sizes.

By automating data analysis with ACL, the AXIS audit team has been able to cut

processing times by 50 to 60 percent and has reduced the resources required for analysis

by 20 to 30 percent – freeing audit staff to perform other value-added activities.

Providing advance exception reports to field auditors has also cut on-site exception

verification times by 20 percent – a number that AXIS expects will rise to 50 percent as

the process matures. Off-site data analysis makes it easier for auditors to plan field audits

and has enabled the department to enhance its audit coverage without adding more staff

members.

Most dramatically, the AXIS ACL implementation has identified significant revenue

leakages and over 50 percent of the detected shortfalls have already been recovered.

Unusual or suspicious transactions are easier to identify and the team has detailed

historical data to analyze patterns at the branch level. With a focused, ongoing ACL data

analysis strategy, AXIS is effectively addressing key operational risks and providing

solutions that increase confidence and regulatory compliance

SYNOPSIS

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Company Name – AXIS BANK

Student Name – RAUSHAN AJIT

Industry Guide – Mrs. CHANDNI GARG

Faculty Guide – Mr. RAHUL CHANDRA

The objective of this project was to gain an insight and in depth knowledge about

banking products of AXIS BANK, & Compare services being provided by axis bank with

major competitor in the market (ICICI,HDFC,YES BANK).

Perception about Industry Guide

My industry guide Mrs. Chandni Garg, has been of immense help during the entire period

of my summer internship. It is only under his guidance that I have been able to complete

my report and make it as useful as it is. He has been a wonderful mentor, who has given

me an understanding of entire products & services being provided by AXIS BANK to its

customer and overview of core banking also. I would love to work under his guidance in

future.

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