dipangshu final project work

SUMMER INTERNSHIP PROJECT REPORT

“A study on the operational activities with special reference to saving and investment pattern of retail customers at Axis bank”

(Nagpur Branch, Maharashtra)

In partial fulfilment for the course of

“Post Graduate Diploma in Management”

JAIPURIA INSTITUTE OF MANAGEMENT, NOIDA

A-32 A, Sector 62, Institutional Area, Noida- 201309 (U.P.)

Submitted by:

Dipangshu Sarkar

PGFB1415

Submitted to

Dr. Deepak Singh

DECLARATION

I hereby declare that the Summer Training Report entitled “A study on the operational activities with special reference to saving and investment pattern of retail customers at Axis bank” is an authentic record of my own work as a requirement of 8 weeks Summer Training during the period from 04 th May 2015 to 08th July 2015 for the award of degree of PGDM (Post Graduate Diploma in Management), Jaipuria Institute of Management, Noida under the guidance of Mr. Satyanarayan Goyal , Manager (Operation-CSO), Axis Bank Ltd (Nagpur Branch), Maharashtra.

Dipangshu Sarkar

Jaipuria Institute of Management

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ACKNOWLEDGEMENT

Every project is successful largely due to the efforts of the number of people who have always given their valuable advice or lent a helping hand. I sincerely appreciate the support and guidance of all those who have been instrumental in making this project a success.

I am highly indebted and take this opportunity to express gratitude to my Faculty Mentor, Dr. Deepak Singh for suggesting and valuable guidance for the present work of project and also like to thank Dr. Rajesh Sharma & Prof. Nidhi Singh.

I express my great thanks to my Industrial Mentor Mr. Satyanarayan Goyal, Manager (Operation-CSO) Axis Bank Limited for giving all the opportunity with all possible exposure in learning things and in execution of this project. I would also like to thank Mr. Asish More (Clearing Department), Mr. Virag kale (Government Nodal Officer), Mr. Aditya Sharma (Senior Manager, Forex Department), Mr. Rupesh Rathi (Sr. Manager, SME’s), Mr. Sujoy Deshmukh (DM, SME’s).

I am thankful to entire workforce of Axis Bank (Civil line branch), Nagpur for the time to time help extended by them.

I owe with great regards to my parents for encouraging me.

Dipangshu Sarkar

(Jaipuria Institute of Management)

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ContentsEXECUTIVE SUMMARY........................................................................................................................viii

PART A................................................................................................................................................1

ON THE JOB TRAINING...................................................................................................................1

CHAPTER – 1(A)................................................................................................................................2

INTRODUCTION................................................................................................................................2

1.1 BRIEF ABOUT INDIAN ECONOMY:.....................................................................................3

1.2 HISTORY OF BANKING.........................................................................................................5

1.2 (I) History of banking sector in India..................................................................................5

1.2 (II) Structure of Indian banking industry............................................................................7

1.2(III) Current economic trends of banking in India..............................................................7

1.3 COMPANY PROFILE............................................................................................................11

1.3(I) Promoters........................................................................................................................11

1.3 (II) Vision Statements and Core Value............................................................................12

1.3(III) Organizational Structure..............................................................................................12

1.3(IV) Overview of different business segments.................................................................13

1.3(V) Product and Services offered to the customers........................................................14

1.3(V) Financial performance..................................................................................................15

1.3(VI) SWOT Analysis............................................................................................................16

1.3 (VII) Market capitalization of banks in Indian banking industry....................................16

CHAPTER: - 2(A)...................................................................................................................................17

JOB DESCRIPTION................................................................................................................................17

2.1 Job Description.......................................................................................................................18

1. Clearing Department.........................................................................................................18

2. Government Business Department.................................................................................20

3. Front desk Department.....................................................................................................21

4. Small and Medium Enterprises.......................................................................................23

CHAPTER: - 3(A)...................................................................................................................................25

ANALYSIS AND FINDINGS.....................................................................................................................25

3.1 Clearing Department: -..........................................................................................................26

3.2 Government Business Department: -.............................................................................26

CHAPTER: - 4(A)...................................................................................................................................28

CONCLUSION AND SUGGESTION.........................................................................................................28

CHAPTER: - 5(A)...................................................................................................................................31

v

KEY LEARNINGS...................................................................................................................................31

5.1 Clearing Department.........................................................................................................32

5.2 Government Business Department.................................................................................32

5.3 Front desk Department.....................................................................................................32

5.4 Small and Medium Enterprises.......................................................................................32

PART B..............................................................................................................................................33

RESEARCH.......................................................................................................................................33

CHAPTER: -1(B)...............................................................................................................................34

INTRODUCTION..............................................................................................................................34

1.1 Introduction to the topic.........................................................................................................35

1.2 Objectives of the study..........................................................................................................36

1.3 Scope of the study..................................................................................................................36

1.4 Limitation of the study............................................................................................................36

CHAPTER: - 2(B)...................................................................................................................................37

REVIEW OF LITERATURE AND RESEARCH METHODOLOGY..................................................................37

2.1 Review of Literature...............................................................................................................38

2.2 Research Methodology..........................................................................................................40

2.2(I) Research Topic...............................................................................................................40

2.2(II) Sampling Procedure......................................................................................................40

CHAPTER: - 3(B)...................................................................................................................................41

HYPOTHESIS OF THE STUDY.................................................................................................................41

CHAPTER: - 4(B)...................................................................................................................................46

ANALYSIS AND FINDINGS.....................................................................................................................46

CHAPTER: - 5(B)...................................................................................................................................77

SUGGESTION, RECOMMENDATION AND CONCLUSION.......................................................................77

5.1 Suggestion and Recommendation.......................................................................................78

5.2 Conclusion...............................................................................................................................78

CHAPTER: - 6(B)...................................................................................................................................79

BIBLOGRAPHY AND ANNEXTURE.........................................................................................................79

6.2 Annexure.................................................................................................................................81

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Table of Contents

Table 1:- Gender...............................................................................................................................47Table 2:- Marital status.....................................................................................................................48Table 3:- Age.....................................................................................................................................49Table 4:- Education..........................................................................................................................50Table 5:- Occupation........................................................................................................................51Table 6:- Family structure................................................................................................................52Table 7:- Number of family members.............................................................................................53Table 8:- Income group....................................................................................................................54Table 9:- Yearly income...................................................................................................................55Table 10:- Yearly tax paid................................................................................................................56Table 11:- Monthly household expenditure...................................................................................57Table 12:- Types of account............................................................................................................58Table 13:- Common tenure of investment.....................................................................................59Table 14:- Amount of investment....................................................................................................60Table 15:- Yearly saving..................................................................................................................61Table 16:- Purpose of investment...................................................................................................62Table 17:- Awareness of investment option..................................................................................63Table 18:- Decided to invest............................................................................................................64Table 19:- Factors considered in investment................................................................................65Table 20:- Consult before Investment............................................................................................66Table 21:- After receiving maturity amount...................................................................................67Table 22: -Reinvestment.............................................................................................................68-70Table 23:- Satisfaction from return.................................................................................................71Table 24:- Satisfaction from current service..................................................................................72Table 25:- Satisfaction on investment charge..........................................................................73-74Table 26:- Satisfaction from knowledge of staff............................................................................75Table 27:- Satisfaction from settlement process..........................................................................76

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EXECUTIVE SUMMARYBanking industry is one the fastest growing sector after 1991 because entry of private player was allowed by Government of India. Earlier Indian banking industry was run by public sector banks. Some of the player was State bank of India, Punjab National Bank, IDBI bank, Canara bank and many more.

Axis bank Ltd came into existence in the year 1994 with advent of liberalization, privatization and globalization. It was promoted by some top know company such as LIC, GIC, NIC, The New India Assurance Company etc.

This report covers the topic “A study on the operational activities of departments within Axis bank with special reference to saving and investment pattern of retail customers.” Here in this topic it involves the working pattern of four departments – Clearing department, Government business department, Small and medium enterprises, and front desk department along with understanding the saving and investment of retail customer.

In Cleaning department my task was bring the cheques from the collection department to cleaning department and putting the data into excel and after that process it into the service branch for scan purpose and also gave suggestion how they can reduce maximum time to get cheque credited.

The Government business department deals with all the works related to the government activities or business such as payment of IT return, service tax, PMSBY etc. My task was to collect the form and verify the document. After that online process of the document has to be done. Suggestion to the department was to make customer educate how to us online gate way for payment so that mistake can be reduce and work can be process fast.

The Front desk department is basically the first customer touch point where first service encounter take place. Here the task was to help the front desk employee to solve the customer enquiry, reviewing the day to day works of the front desk dept such KYC. Some the challenge the department faces is less number of the employee to address to customer enquiry. The suggestion was given to front desk department was to strengthen the online customer enquiry so that number of visit of customer can be decreased.

At the last the small and medium department which deals in deciding CC limit, overdraft and term loan and provided limit to the customer on the basis of their financial statement, the bank statement, firm registration. The information of financial statement is put into CMA to find the Current ratio and adjusted ratio (Total outside liability/Total net worth). Some other checking back criteria is churning method from bank statement, Drawing power method. The suggestion was to introduce the online document upload facility fast so that process becomes fast.

Some of the suggestion for the departments was:-

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The clearing department should establish the scan facility which will reduce the time period for customer cheque credit.

The appointment of more Government nodal officers to manage the department effectively.

The second part of my SIP topic was to analysis the saving and investment pattern of retail customers in axis bank. Here to analysis the pattern I have used both primary and secondary data. The primary data was collected through structured questionnaire which was filled by the customer who visited in the bank and what they expect from the bank on their investment in the bank , through personnel interaction with the employees what they thinking about the various investment option advantages and loop holes exists. While analysing the factors that influence the customer’s investment pattern I have used some of the statistical test such as Chi-square and anova to identify the relation between the factors. The secondary data was collected from website, research paper on saving and investment, journals etc.

Hence the conclusion was drawn on customer response on questionnaire and suggestion was made on conclusion. Some of suggestions are:-

Most of the customers invest for the time period for less than 1 year. Hence the bank must try to increase the tenure period of customer by offering high interest rate. Bank provided rate of interest fixed deposit between 1 year but less than 13 month is 8.20% where as interest rate between 14 month and less than 15 month is 8.10%.

Bank has to work upon their settlement process at the time of maturity.

The suggestion can help the company to attract new customers and retain them for longer period of time.

The bank has to increase interest rate on the basis of time period. If the bank is providing 8.20 % between 1 year less than 13 month then the bank should provide more than 8.20% when exceed 1 year less than 13 month

Bank should introduce notification system of maturity date so that they can process the maturity amount timely.

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PART A

ON THE JOB TRAINING

1

CHAPTER – 1(A)

INTRODUCTION

2

1.1 BRIEF ABOUT INDIAN ECONOMY: -

Indian economy is considered as one of the world fastest developing economy and has position itself as the seventh largest economy in terms of Nominal GDP and third largest economy in Purchasing Power Parity (PPP). India’s Economy had been lining-up with more than 7% average growth rate for last two decades and with this average growth rate it has replaced China in the last quarter of FY 2014 as world‘s fastest growing major economy. With this growth rate of 7.3% the Gross Domestic Production of the country has increased from $1708.46 billion (Nominal) & $5845.36 billion (PPP) in 2011 to $2308.02 billion (Nominal) & $7996.62 billion (PPP) in 2015. As the per Goldman Sachs report India will be world 3 rd largest economy by 2035 after United State and China and its GDP will be close t0 $ 30 trillion. The major contribution in India’s GDP is from service sector which is 57% followed by Manufacturing sector which is about 26% and Agriculture sector which is around 17% of total GDP. In 2013-14 the total export was Rs 189,973,019.25 lacs which Rs 163431883.47 lacs and Rs 146,595,939.96 lacs in 2012-13 and 2011-12. The major export item in 2013-14 was meat and edible meat offal which around Rs 2721177.75 lacs, mineral fuels which was around Rs 39113537.96 lacs, Cereal Rs 6345211.92 lacs. The total import in 2013-14 was Rs 271735961.02 lacs followed by Rs 266916915.69 lacs in 2012-13 and Rs 234546324.5 lacs in 2011-12. The major import items in2013-14 was Iron and steel Rs 5490585.66 lacs, cotton – Rs 431006.27 lacs.

ANNUAL GROWTH OF INDIA’S GDP FROM 1999-2014

99-2000

2000-01

2001-02

2002-03

2003-14

2004-05

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

2011-12

2012-13

2013-14

0%

2%

4%

6%

8%

10%

12%

8.00%

4.10%

5.40%

3.90%

8.00%

7.10%

9.50% 9.60%

9.30%

6.70%

8.60%8.90%

6.70%

4.50%

4.70%

GRO

WTH

PER

CEN

TAG

E

3

Source:-Www. tradingeconomics.com

In 2014, Maharashtra became the largest contributor in gross domestic production which is about Rs 1476233 crores followed by Uttar Pradesh with Rs 886410 crores while Andaman & Nicobar Island contribute least among other state with Rs 5351 crores.

GROWTH IN PER-CAPITA INCOME OF INDIA

2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2014-150

1000

2000

3000

4000

5000

6000

3262.043513.9

3805.69 3901.384177.17

4546.594786.74

4966.815243.95

5565.05

US D

OLLA

R

(Source: www.tradingeconomics.com)

In 2013-14, Goa has highest per capita income among 33 Indian states and territories with INR 224138 followed by Delhi with per capita income around INR 219979 and that is followed by Sikkim in third, Chandigarh at forth and Pondicherry in fifth are the richest state in Indian economy. The top 5 states/UT with highest per capita income has less than 3 crores population. Bihar, Uttar Pradesh, Jharkhand, Assam, Manipur has least per capita income with less than Rs 50000.

HOUSEHOLD CONSUMPTION AND SAVING OF INDIA

2010-11 2011-12 2012-13 2013-14 2014-150

100

200

300

400

500

600

700

800

599646

673706

747

Consumption (Amount in US dollar)

2009-10 2010-11 2011-12 2012-13 2013-140

5000

10000

15000

20000

25000

13308

1639018329

20547 22124

Saving (Amount in INR)

4

Source: - Www.tradingeconomics.com

1.2 HISTORY OF BANKINGBanking industry is considered as a backbone for all type of economy whether it is developed, developing or under- develop economy. The concept of banking was originated in 4th century where the temple was considered as the safest place and most healthy people build temple for keeping their property safe. In Egypt, Greece, Rome Babylon temples was involved lending money in form loan to the public of their cities and has become the reason for many wars. In 1557 under the leadership of Philips II of Spain has managed to burden his kingdom with debt which has caused the world’s first bankruptcy. The reason behind was around 40% of Gross National Production (GDP) was used to finance the debt.

Adam Smith and Modern Banking

The concept of banking has become more standardized when Adam Smith coined the concept “Invisible hand theory” in his book “The Wealth of Nation” in the year 1776. According to the theory the individual try to maximize their wealth through trade and entrepreneurship which help the society to grow. With this money lender and the banker have restricted the government involvement in Banking sector and economy.

1.2 (I) History of banking sector in IndiaIn India the concept of banking came into picture in the early period of 18 century with the establishment of Bank of Hindustan in the year 1770 but it was liquidated in the year between 1829 to1832. In June 1906, British government have opened another bank in Calcutta which they named as Bank of Calcutta along with other two bank: - Bank of Bombay & Bank of Madras. These three banks merged themselves in 1926 to from Imperial Bank of India and after independence it changed it’s named to State Bank of India in 1955. After independent the Government of India nationalised Reserve bank of India in 1949 and passed Banking Regulation Act under which each bank have to follow the rules prescribed by RBI. In the year 1969 14 banks were nationalised and other six banks were nationalised thereafter. Basically before 1991 there was restriction from Indian government that no private player will be allowed to open any bank or no other foreign bank will allowed operating in India. But after Liberalization, Privatization and Globalization (LPG) most of private player and foreign player were given licensed to open bank in India. Banking industry in India can be classified to following types:-

1. Retail Banks: - The retail banks most focus on provided the service to the individual customer. Services offered by such bank include saving, providing personal loan, Home loan, term deposit etc.

2. Commercial Banks: - The main purpose of the bank is to accept the deposit from the public and lending of money to the public both individual and corporate. The commercial banks act as the financial intermediaries between

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the depositors of the money and borrowers of the money. The commercial bank can be divided into two types:-

Public sector banks: - Public sector banks are those banks where major stake is owned by govt and rest is owned by the public. Some of such banks are Punjab National Bank, Canara Bank, Bank of India etc.

Private Sector banks: - Private bank are those bank which are owned, controlled and managed by private promoters. Some of private banks are HDFC, ICICI, Axis, Kotak Mahindra etc.

Foreign Banks: - Foreign banks are those banks which are operating outside out the country it have been formed. For example HSBC, Standard Chartered bank.

Regional Rural Banks: - Regional rural bank was formed under RRB act in the year 1975. The purpose behind the formation was to provide credit facilities to rural and agriculture region. These banks are allowed to operate on that area which is specified by the government of India.

3. Investment Banks: - It is the financial institute that help the individual, corporate and government to raise funds by acting as agents in issuance of the securities. Whenever there is any merger, acquisition, or liquidation of the companies it help its customer with support such as sale of equity, foreign exchange .For example JPMorgan, Goldman Sachs, Barclays etc.

4. Cooperative Banks: - These banks are those bank which are controlled, owned, managed by the cooperative society under the Cooperative society Act 1912. There are three types of Cooperative Banks:-

Primary credit societies: - These banks operate on small villages/town and provide credit to public staying in that society.

Central cooperative banks:- These banks operate on district town and their function are similar to other banks.

State cooperative banks: - These banks operate in all the state of the country.

5. Specialized Banks: - These banks provide special service to their customer by providing huge financial support to business who are involved in export-import business, foreign exchange business etc. For example EXIM bank.

6. Central Banks: - These banks are known as “Banker of banks”. The central bank in India is “Reserve bank of India” and United State it is “Federal Bank”. They frame monetary policy, decide interest rate, control other banks, and manage foreign exchange.

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1.2 (II) Structure of Indian banking industry

(Source: - www.ibef.com,Banking March 2015)

1.2(III) Current economic trends of banking in IndiaThe banking plays a vital role in development of Indian economy. The total assets size of Indian banking industry has increased from US $ 250 billion in 2000 to US $ 1.8 trillion in 2013-14. The banking business to GDP has almost double it from 68 % to 135 % during the last decade. Even though the banking industry has been growing at faster rate but it has been facing challenges like deteriorating assets quality, government deficit, huge non-performing assets, and implementation of Basel III.

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RESERVE BANK OF INDIA

Banks

Scheduled Commercial Bank

Public Sector Banks (26)

Private Sector Banks (20)

Foreign Banks(43)

Urban Cooperative Banks (1606)

Rural Cooperative Credit institution (93550)

Cooperative Credit Institution

Financial Institution

All India financial Institution

State - Level Institution

Other Institution

Some of the key performance of the Indian banking industry:-

1. Credit growth: - As Indian economy is growing in faster rate there is also rise in credit growth from 17 %( approx) in 2013 to 18 %( approx) in 2014.

2. Growth in deposit: - Growth in deposit remained subdued in spite of having high interest rate offered in saving account with the bank. Growth increased from 14% in 2013 to 17% in 2014.

3. Growth in net interest rate: - the most of bank has said that there was increase in net interest rate which has increased from 17% in 2013 to 19% in the financial year 2013-14.

4. Growth in PAT: - Growth in PAT for most of the bank has increased sustainably. The average growth in PAT for Indian bank has increased from 14 % in 2013 to 21% in 2014.

5. Return on equity: - The return on equity has increased to 17% in FY 2013-14 from 16% in 2012-13.

Credit Growth Growth in deposit

Growth in net interest rate

Growth in PAT Return on equity

0%

5%

10%

15%

20%

25%

17%

14%

17%

14%

16%

18%17%

19%

21%

17%

2012-132013-14

(Source: CII survey on health of Indian Banking sector in current regulatory environment)

Projection on growth in credit sector wise: -

1. Corporate Loan: - the corporate loan segment has grown 19% in FY 2013-14 which was 17% in FY 2012-13 and expected to grow more in FY 2014-15.

2. Retail Loan: -The retail loan segment has declined to 23% in FY 2013-14 which was 24% in the FY 2012-13.

3. SME Loan: - Small and medium enterprise has been facing a economic slowdown. Hence growth in SME remains same for the FY 2012-13 and FY 2013-14 which was 20%.

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4. Agriculture Loan: - Agriculture loan has declined to 21 % in the FY 2013-14 from 23 % in the FY 2012-13.

Corporate Loan Retail Loan SME Loan Agriculture Loan0%

5%

10%

15%

20%

25%

17%

24%

20%

23%

19%

23%

20%21%

2012-132013-14

(Source: - CII survey on health of Indian Banking sector in current regulatory environment)

Growth in money supply from FY 2008 – 2014: -

2007-

082008-

092009-

102010-

112011-

122012-

132013-

14

0

100

200

300

400

500

600

700

800

900

1000

134 150190

269 282 283290212 223

262306 356 359 370

660 678736

859905 907

920

Currency with publicDeposit money of publicTime deposite

AM

ount

in U

SD b

ilion

(Source: - IBA statistic, RBI)

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1.2(IV) FUTURE GROWTH OF BANKING INDUSTRY

With Make in India concept the banking sector is going to play important role in development in Indian economic. It is expected that the Indian banking industry will be 3rd position in the world by 2025.According to the RBI around Rs 5 lakhs crore will be required by Indian banking sector under BASEL III.

The total banking credit is expected to increase to US $ 2.4 trillion in 2017. The disposable income of Indian household is expected to grow at CAGR 3.6 % over the next 15 years.

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-140

20

40

60

80

100

120

140

160

180

200

17 23 2735

4460

75

105

142

174

Growth in ATM (000 units)

(Source: - IBA Statistic, Reserve Bank of India)

With development in infrastructure and technology base in India there has been a shift from traditional branch banking to online banking. ATM machine are not only to withdraw of money but now a days it also provide multiple facilities such as bill payment, fund transfer etc with has reduced the pressure of branches. In 2013-14 the total number of ATM has increased to 173697 and it is expected to increase twice by 2020. The total number of users in ATM in 2012 was 114 million which expected increase by 300 million user in 2020.

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1.3 COMPANY PROFILE Axis bank was the first private bank in India to start its operation in 1994, after Government of India allowed private players to start banking business. The bank was promoted in 1993 jointly by United Trust of India, Life Insurance Company, General Insurance Company, National Insurance Company, The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company.

Axis Bank has registered office in Ahmedabad and corporate office is located at Mumbai. Bank has wide range of network of 2589 branches and more than 12355 ATMs as on 31 March 2015. With wide ATMs network it became the first private bank in India to operate ATMs at one the highest sites at Thegu, Sikkim at the height of 4020 meter from sea level. The bank also operates outside India with eight international offices in Singapore, Shanghai, Hong Kong, Dubai, Colombo. The total assets of bank outside India were US $7.86 billion as on 31 March 2015.

1.3(I) Promoters The bank was set up with paid up capital of Rs 115 crore with UTI contribution of Rs 100 crore, LIC with Rs 7.5 crore and GIC and its other promoters with Rs 1.5 crore each. The shareholding of Unit trust of India was transferred to SUTTI which was established in 2003 with shareholding of 11.66%.

United Trust of India was set up under UTI act 1963 with a motive to encourage for saving and investment. In December 2002, the Parliament of India has replaced the UTI act 1963 with UTI act 2002 in which two new entity UTI – I and UTI – II. The government of India has appointed Mr. K.N.Prithviraj as a administrator of UTI look after UTI – I where government has continuing obligation and commitment to investor.

Board of Directors

Mr. Sanjiv Misra (Chairman) Mrs. Shikha Sharma ( Managing Director and CEO) Mr. K.N. Prithviraj (Director) Mr. V.R. Kaundinya (Director) Mr. Prasad R. Menon (Director) Mr. Samir K Barua (Director) Mr. Som Mittal (Director) Mrs. Ireena Vittal (Director) Mr. Rohit Bhagat (Director) Mrs. Usha Sangwan (Director)

11

Mr. S. Vishvanathan ( Executive Director & Head, Corporate banking) Mr. Sanjeev K Gupta (Executive Director & CFO) Mr. Sanjeev Kapoor (Company Secretary)

1.3 (II) Vision Statements and Core ValueVision 2015: -

“To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology”

Core Value: -

Customer Centricity

Ethics

Transparency

Teamwork

Ownership

1.3(III) Organizational Structure

1.3(IV) Overview of different business segments Retail Banking: - The bank aims to increase its market share through wide

retail franchise. The segment has become a key driver for bank’s growth

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Officer

Asst. Mang

Deputy Mang

Manager

Senior Mang

AVP

DVP

VP

SVP

President

strategy. The bank offer wide range of product across deposits, loans, investment solution etc in order to create a strong relation with the customers by providing a better high quality service. The bank provide retail loan to its customer with standardised appraisal and oversight mechanism. The bank is one of largest debit card issuer in the country which has increase from 142.99 lacs in 2013 to 147.89 lacs in 2014. The bank is 6 th largest credit card issuers in the country. In order to provide better service to NRI, bank has launch 24X7 helpdesk for NRI customer with free number.

Business Banking: - The Business banking focus on offering a range of current account product and cash management solution covering corporate, central and state government as well as small and medium business. In cash management service (CMS) business bank provided integration for both collection and payment between bank and corporate for endless transaction and information flow. The bank also provide MIS report to corporate for proper accounting and reporting the bank is also collect taxes on behalf of Government with its 406 authorised branches in 226 location across the country.

Corporate Credit: - The bank introduced various products for the corporate. The fee based business through loan syndication, trade finance and treasury business has grown. The internal and external rating of the credit facilities for the customer is done on continuous basis. The bank infrastructure business included project lending, project structuring etc.

Treasury: - Bank has a treasury which help to cover both domestic and international market. It participates in primary action of the RBI. With increase in export and import business the bank has emerged as one of the leading bank for foreign exchange and trade financial service. The GFID (Global Financial Institution Division) is responsible for business relation with financial institution across the geography.

Informational technology: - Technology is one the key resource to sustain in this modern competitive market. The bank is working continuously in improving in its information technology. The bank has received certification ISO 27001:2005 for keeping a standard of Information security management system. In 2011 the RBI working group has recommend the bank to look upon electronic banking, cyber fraud etc. Hence the bank has implemented many information security solution to protect customer data, external threat etc.

Agriculture: - The bank is playing an important role in the development in the agriculture sector. In order to provide a strategic agriculture lending where bank believe that agriculture is intensive and potential market exist. To grab the market where banking service is not developed the bank has formed 3 new ABC’s in Guwahati(Assam), Bhubaneswar (Odisha) and Patna (Bihar). The agriculture business in axis bank was operated through 759 branches. Apart from lending bank also participate in awareness campaigns which help the farmer in developing their skill in farming with the help of National Bank for

13

Agriculture and Rural Development (NABARD). As on 31 march 2013 the bank provide Rs 14845 crore as credit to farmer to agriculture land.

Human Resource Management: - The bank is working hard to provide a better skilled employee along with better working condition. The bank has arranged a training and education institute for the employee so that they can maintain a strong employer brand in the industry. It also arrange a regular feedback session for employees on policies and practices followed in the organization. Axis Leadership Practice (ALPs) which are introduced for different level of employees in order to understand the pattern in employee behaviour.

Corporate Social Responsibility: - the bank is aware about the Corporate Social responsibility which is engaged in uplifting the society. For this purpose the bank has setup- the Axis Bank Foundation which focuses on livelihood, poverty alleviation program, educations for the society. Presently the foundation is running 40 programs in 163 cities which targeted 7, 27,059 beneficiary.

.

1.3(V) Product and Services offered to the customersAccount

Saving Bank Accounts: - Following are the types saving bank account.1. Easy Access Saving Account.2. Prime Saving Account.3. Future Stars Saving Account.4. Prime Plus Saving Account.5. Women Saving Account.6. Pension Saving Account.

Current Bank Accounts: - Types of current bank account.1. Regular Current Account2. Exclusive Current Account3. Current Account By Industry4. Tailor Made Current Account

Deposit

Following are the few products which Axis bank offers to its customer for deposit:-Fixed Deposits, Tax Saver Tax Deposits, Fixed Deposit Plus, Recurring Deposit, Encash 24

Loan

14

Types of loan offer by the bank to its Customers. Some of them are: - Home loan, Car loan, Personnel loan, Goal loan, Loan against the property etc.

Foreign Exchange

Some of foreign exchange are:- Multi-currency Forex Trade, Travel Currency Card, Foreign currency cash.

Insurance Business:-

Insurance products are: - Life Insurance, Health Insurance, Home Insurance etc.

1.3(V) Financial performance 1. Total Deposit: - In the year 2014-15 the total deposit in saving and current

account has increased to 14.77% from 11.21% in the year 2013-14.2. Total Advance: - The total advance to both the retail and non retail has

increased from 16.81% in FY 2013-14 to 22.17% in FY 2014-15.3. Total Assets/Liabilities: - The total assets/liabilities have increased to

20.53% in the FY 2013-14 from 12.53 % in the FY 2013-14.4. Other Income: - the other income which included fee income, trading profit,

Misc.income has declined from 13.04% in the financial year 2013-14 to 12.96% in the year 2014-15.

5. Net Interest Margin: - the net income of the bank has grown to 3.91% in FY 2014-15 from 3.81% in the FY 2013-14.

Total Deposit Total Advance Total Assets/Liabilities

Other Income Net Interest Margin

0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

11.21%

16.81%

12.53% 13.04%

3.81%

14.77%

22.17%20.53%

12.96%

3.91%

2013-142014-15

1.3(VI) SWOT Analysis

15

STRENGTH1. Axis bank has largest ATM

network among the private bank.2. It become the first bank to

introduced Ping Pay and Fixed deposited plus.

3. A large number of portfolios in product and service.

4. One largest bank to provide loans for agriculture purpose.

WEAKNESS1. Less number of branches (2402) as

compared to its competitors.2. Lack in using updated technology as

compared to its competitors like ICICI .3. The shares of axis bank continuously

fluctuate which de-motivate shareholder.

OPPORTUNITY1. Have the opportunity to expand

in the rural areas.2. Have opportunities to open more

branches and become one of top 100 banks in world.

THREAT1. Entry of new banks in the Indian

market.2. Changes in repo rate and reverse repo

rate by RBI.3. Most of the government schemes are

offered by PSU banks.

1.3 (VII) Market capitalization of banks in Indian banking industry

HDFC SBI

ICICI Axis

Kotak M

ahindra

IndusInd

Bank o

f Borad

a Yes

Federa

l0

50000

100000

150000

200000

250000

300000250623

170277149690

111464 110857

49715 38634 270469895

Market capitalization

Banks

Amou

nt in

Cro

res R

upee

s

(Source: - www.moneycontrol.com)

16

CHAPTER: - 2(A)

JOB DESCRIPTION

2.1 Job DescriptionIt was my privilege to be a trainee at Axis bank limited (Civil line branch), Nagpur which is 10 largest branch of Axis bank in PAN India. I have been trained on various departments such as clearing, SME’s, front desk. Mentors from various departments

17

helped to understand the various type of the work they carried on daily basis. They started to allocate the task for better understanding of the work.

Title of the job: - Summer intern

Division: - Operation & Finance

Sub Division: - Clearing, SME’s, Front desk, Govt Business

Working hour: - 9.30 am to 7.00 pm

Summary: -

Axis bank internship program gave me an excellent opportunity in understanding the various banking operation and receiving the valuable on- the- job- training.

KRA’s: -

1. Clearing DepartmentThe department basically deals with the process of collecting the customer cheques specially the outgoing cheques (other bank cheques) from the drop box. After that dividing the cheques on the basis of: - a) CTS cheques and b) non CTS cheques. Again CTS cheques are divided on two criteria: - a) cheques amount below Rs 25000/- and cheques amount above Rs 25000/- and then putting all the information related to cheques into excel such as MICR number, cheque number and amount and all the cheques are stamped with axis bank stamp and its is process to service branch account for scanning purpose and the scanned cheques sent to the Mumbai office from where its send to respective branches for verification and if there any issues it is revered back to the bank and the message is sent to the customer for not clearing of cheques and ask to collect back to the cheques or sometimes bank courier the return cheques to the respective customer on their address if the cheques remain uncollected for long time. Non CTS cheques are process once a week i.e. on Saturday as per RBI guideline.

Objectives of training: - To understand day to day operation of clearing department. To understand different customer enquiry and problem.

Job Responsibility:- Collecting cheques from cheque drop box. Dividing the cheques on CTS and non CTS cheques with respective

amount. Excel sheet entry of cheques details. Stamping and process it to the service branch “Wardi

18

Flow chart of Clearing department:-

2. Government Business DepartmentThis department basically deals all the works related to the government works. It accepts the fill up form of such as MHARD, IT return, PMBSY etc. After accepting the offer it verify all the document that customer have

19

Customer Cheques

Cheques are put into drop box

Collecting of cheques by clearing dept. from drop

box

CTS(Cheque Transaction system) cheques

Cheques Below Rs 25000/-

Data of cheques in Excel such as MICR,Cheque

number,Amount

Sent to service branch (Wardi branch) for

scaning.

Scanned Cheques are sent to mumbai

branch( HO )

Scanned are sent to respective branch based

on MICR code for approving of cheques

Amount Credited to the party

Not clear cheque

Cheques Above Rs 25000/-

Non CTS Cheques ( Only sent to serive branch on

saturday

Return back to respective Customer via tele-calling, message, courier

Return back to respective branches

submitted to him, the document may be PAN card, ADHAR card, bank details, pay slip etc. If there is any mistake or rectification is required the he sent it back to the customer to make it correct so that it can be processed and if there is no such mistake or ratification required with the form then he process the document to next step. The next step involve two step:- (A) Filling the document in online about the detail of the customer. It may in the case of payment of taxes such as IT return, VAT tax etc. in GBM (Government business nodal) or in finacle or in easy pay. (B) Processing the document or form to the Head Office such as Public provident fund scheme etc and if there is any issues or mistake it is sent back to the officer for rectification. Once it is returned from head office to the nodal officer then he directly sent back the document to the customer for rectification.

Objective of training: -Objective behind training with the Government business department was:- To know more about various Governments earning and which tax are paid

to which department and how bank help customers to make payment. To understand various problems and enquiry of the customers.

Job Responsibility: - In the department the responsibility was to collected form such as form

281, IT returns, form 15G & 15H from customers. After collecting the form all the details of the form has to be verified such

whether the name of the customers matches with the identify proof/ address proof provided by the customers.

After verifying the details of the form have to filled online and then process it to the nodal officer for online payment.

Flow chart of Government Business Department:

20

3. Front desk DepartmentLike other department front desk department plays a vital role in solving the enquiry and the problem faced by customer in the banking transaction. It is only department where direct service encounter take place between the bank customers and bank employee take place. Front desk department are further divided into sub department such as DD, NEFT/RTGS, Customer Care, and Cash Counter.

Flow Chart of Front desk Department:-

21

Customer

Filled up form (MHADA,IT return,

PMBSY etc)

Submitted to Government nodal

officer for vertification

Verification of document by

government nodal officer

If retifiaction Required If no retifaction Required

Data are feed up into into the finacle or

Government module along with the cheques

Sent to HO for the apporav in case of

Public provident Fund

If any retification required or document

required

Return back to the

customer

Return back to the

customer

Return to the bank / GNO

Objectives of training: - To understand working environment of the department. To understand various investment option with the Axis bank.

Job responsibility:- Understanding the process followed in the banks related to RTGS/NEFT

and DD/PO Verifying all the passed customer cheques from various departments such

as DD/PO department, RTGS/NEFT and cash counter department in term of Ultra Violet stamp and signature verified stamp and signature of authorised employee.

22

Customer

Front desk department

DD/PO department

Customer cheques

Verfication of cheques in terms of balance in customer

account,signature, UV

Debitinng the customer account and crediting the

DD/PO account of axis bank on behalf of beficary name

Provide customer with printed DD/PO

RTGS/NEFT department

Customer Cheques

Verfication of cheques in terms of balance in

customer account,signature, UV

Filling a details in finacle of customer and

beificary account

Debited the customer accounts and crediting the benificary account

Customer care department

customer enquiry

ATM/Debit card/Credit card problem/ Saving

account issue etc

Enquiry related to various investment

option

Upto date balance enquiry/ Inward

cheques

Claim related to the maturity amount from

investment avenues

Cash Counter

Major issues/ problem faced by department in relation to customer are transferred to Assistant

Vice President/ Vice President

Verifying the number of kit (all the types of card) available in the stock with the update information in finacle

4. Small and Medium Enterprises

As per Axis Bank guidelines Small and Medium Enterprises are those with turnover up to Rs 150 crores. The segment with SME’s are: - 1. Small Enterprise Group (SEG) with exposure size up to 5 crores including funding to micro/tiny enterprises 2. Medium Enterprise Group (MEG) with exposure size greater than 5 crores. This department is generally involved to provide limit to the customer so that they can run their business smoothly. This limit can be fund base limit and non fund base limit. In case of fund base limit it included:- Cash credit limit, over draft limit, Overdraft limit, term loan limit and in case of non fund base limit it include:- Letter of credit and Bank guarantee. Some of the products of SME’s are:-

a. MSE Power: - Eligibility: - Only manufacturing unit and it should be micro or small enterprises as defined by MSMED act. Amount of loan: - Minimum Rs 10 lacs and Maximum Rs 500 lacs.

b. Services Power:- Eligibility: - Only service enterprises and it should be micro or small enterprises as defined by MSMED act. Amount of loan: - Minimum Rs 10 lacs and Maximum Rs 500 lacs.

c. Business MPower Overdraft:- Eligibility: - Proprietor concern/ Partnership firms/ companies/ Trust. Amount of loan: - Minimum Rs 10 lacs and Maximum Rs 500 lacs.

Objectives of the study:- To understand the various task related to the department. Understand how to solve the customer enquiry and problems.

Job Responsibility: - Preparing the check list of documents for the customer and get back to

the customer in case of deficiency documents. Preparing CMA (credit monitoring appraisal) and reviewing the CMA

reports. Visit to the customer business place for inspection.

SMALL AND MEDIUM ENTERPRISES DEPARTMENT FLOWCHART

23

24

Customer Request

Know your client

Ask to fill up application form

and list of document

Checking of documents

CIBIL,RBI defaulter risk, ECGC

defaulter risk

If all checking shows poitive

Credit Monitoring Assessment

Rating

Template Non Template

Sanction Committee

Property Valuation

Documentation

Payment of stamp Duty

Issue of limit

If name appears

Reason for such default

CHAPTER: - 3(A)

ANALYSIS AND FINDINGS

25

3.1 Clearing Department: -Clearing department is one of the important departments not only for Axis bank but for any bank because its working has direct impact on satisfaction level of customers. In order to perform the job in clearing department the employees should have knowledge of Microsoft excel and words. Since all the works such as data entry are made in MS excel and words. And this MS excel sheet are used to tally with the number of the cheques and with their details in the service branches.The employees should have the knowledge about the different types of cheques and rules prescribed by the Reserve Bank of India on it. For example the outward CTS cheques can processed every day where as outward non CTS cheques are processed only in the Saturday. Before the cheques are sent to the service department the cheques are verified properly from the bank end. Generally verification is done with respect to authenticity of cheque.In spite of doing all the works with sincerity the employees face the lot of challenges in terms of partially completed cheques which is difficult to process. Another challenges that the bank faced was return back cheques without any issues and hence it have to process again as per the procedure prescribed by the Axis bank norms. The procedure of followed by the bank is too lengthy and it required time to get customer account credit minimum 2 days.

3.2 Government Business Department: -The Government Business Department help the customers in solving their enquiries related to Government of India and state Government such as payment IT returns, service tax, Form 281, Form 15G & 15H. The department is managed by Government nodal officer. In order to run the department the nodal officer should have sound knowledge about finance, law, taxation, finacle software. Nodal officer working style is mostly same throughout the India and hence if there is any issue or problem he reports to AVP (operation). Form 281 is generally payment of TDS; Form 15G (non senior citizen) & 15H (senior citizen) is declaration from customer that their income is not taxable. Apart from having better working environment conditions the government nodal officer face certain challenges. These challenges are:-1. The customer don’t have document prescribed by RBI such as PAN card,

Adhar card, Driving licence that are to be submitted with form 281, form 15G or 15H.

2. The hand written form submitted by the customer to the officer has lots of errors.

3. Entire department is run by single nodal officer so it becomes difficult to handle large customer at single point of time.

4. In the era of advance technology the bank do most of the work manually hence the work process is too lengthy.

26

3.3 Front desk Department:-

It is only the department where first service encounter take place between the customers and the service provider. There satisfaction level of customer total dependent upon the service provided to them. To perform the job in front desk department the employee should know how to handle customer enquiry, should have sound knowledge in usage of finacle software, MS excel & words, knowledge of various investment option etc. All the departments such as DD, NEFT/RTGS, Customer care and Cash counter are interrelated to each other. All unsolved enquiry are directly transferred to the AVP (operational head)/ branch head so that they can solved it from their end. In spite of having smooth systemic work flow they face lots of problem or challenges such as:-1. Since front desk department is place where first service encounter take

place so this leads to overcrowding in single desk. Hence it is very difficult to control large number of customers in single desk.

2. Most of customers who want their enquiry or problem to solve first. So it create barrier for the employees to perform their jobs.

3.4 Small and Medium Enterprises:-

This department is involve in providing loan to the customer in form of Cash credit limit, overdraft limit, term loan to the customer so that they can run their business effectively and efficiently. Before providing loan to the customer it required lot of analysis with the help of following:-1. Preparing of Credit Monitoring Assessment in order to calculate Current

ratio and total outside liability/owner net worth.2. Analysis of drawing power of the individual.3. Analysis of document such as partnership deed, current account, IT

returns.

Hence in order to perform the job in small and medium enterprises the employees should have the knowledge on accountancy, law, ratios, good command in MS excel and words. Hence the qualification it required is Chartered Accountant, MBA (Finance). Some of the challenges the employee faces are:-

1. Lacks of documents:- The customer don’t submitted most of document for verification. Hence it is very difficult to evaluate the performance of the customer business.

2. Most of the customer CIBIL score is less 720. If the CIBIL score is less than 720 it means that customer is not repaying the loan instalment in time.

27

CHAPTER: - 4(A)

CONCLUSION AND SUGGESTION

28

4.1 Clearing Department

The department follows a lengthy process hence time requirement also increase in order to get the cheque credited. At least 2 days to get cheque credited. In order to reduce the time and cost it is important that the scan facility should be established in the bank only rather sending to the service branch.

Q. How establishment of a scan facility within bank will help in reducing the cost and reduced the time to credit the cheque?(A) Costing for employee:-- Distance between civil line branch and wardi service branch= 6 km (approx)- Travelling expenditure for every km= Rs 5/- km.- Every time up and down expenditure= Rs (6 * 5)* 2 = Rs 60.- Number of time visit on an average is 3 times = Rs (60*3) =Rs 180/- per day.- In a month 26 days = Rs (180*26) = Rs 4680/- (approx).- Salary paid to the employee = Rs 13000/- (approx).- Monthly expenditure = Rs 13000 + Rs 4680 = Rs 17680/-(approx).- Yearly expenditure = Rs (17680*12) = Rs 212160/-(approx).(B) Costing for scanner facility: -- Purchase of scanner machine – Rs 70000/-(assume life time 3 years.) Cost for 1st year – Rs 24000/-. Yearly employees salary- Rs (10000* 12) = Rs 120000/-. Yearly electricity cost – Rs (2500*12) = Rs 30000/-.- Total expenditure = Rs (24000+120000+30000) =Rs 174000/-

(C) Total saving per year: - Rs 212160- Rs 174000 = Rs 38160.

Secondly, like the ATM machine which provide immediate cash to the customers in the same introducing the cheque accept machine which immediately could credit the account of the customer without taking time.

4.2 Government Business Department

The rules for the Government business department are made by the Reserve bank of India and Government of India. Hence the nodal officer has to follow the prescribed rules and regulation. Most of the customer has insufficient knowledge about various benefits that they can avail from the government for the investment made. For example as per the rule of the Government any interest income above Rs10000 is taxable so individual whose individual income don’t fall under the income tax slab can get rebate by making declaration through form 15 G. Hence it is important for nodal officer to make customer aware of various benefits and how to use online for payment of various taxes without visiting to the bank.

29

4.3 Front desk Department

Since the customers is not familiar with online service of bank hence they have to totally depend on the bank or even though the customers know how to use the online facilities they will not use the online rather they feel it is more convenient to go bank to solve their enquiries and problems.Therefore whenever the customers come to bank with their enquiry or problems the bank employee should help the customers to solve their enquiries or problem by their own through online. For example if customer want to change his mobile number then bank may help them with word format how without going to bank they can change their mobile number in bank.

4.4 Small and Medium Enterprises

The department involve more manual work hence it generally required lot of time to provide credit facilities. They must try to shift online so that they easily find out whether the customer is eligible to get credit.

30

Go to any Axis bank ATM

Insert your Debit/credit card and

put the pin when asked

Go to Special menu

Click on Phone number/ Apply

passbook online etc

Put earlier mobile number and Date of Birth and request for

change

Type the new mobile number and press

confirm

CHAPTER: - 5(A)

KEY LEARNINGS

31

5.1Clearing Department1. What were the stages are involve in collecting outward cheques of

customers from collection department till credit.2. The RBI rules and regulation established for the cheques.3. How to solve the customer enquiry related to cheques?

5.2 Government Business Department1. Learn about various different type of form related to government such as

form 281, 15 G, 15 H etc.2. How to use finacle software and Government business module for online

form fill up3. Helping the customer on in solving the enquiry related to Government

business model.

5.3Front desk Department1. Learned about various investment options such as PMBSY, Hybrid mutual

fund etc with the Axis bank and criteria’s such as tax benefits, interest rate included in each of the investment.

2. Since it is only the department where customers and employees meet each other first. Here my learning was what are the enquiries and problems customers bring with them and how to solve their enquiries and problems so that their satisfaction level is always high.

5.4Small and Medium Enterprises1. My learning in SME’s department was how to prepared CMA (Credit

Monitoring Appraisal) sheet through profit and loss account and balance. From CMA sheet how to prepared CMA report and analysing the CMA report for approving CC limit or Overdraft limit or term loan. And other method such drawing power method and maximum banking power.

2. What are the documents required before approving the limit such as collateral, registration certificate of company or partnership deed.

3. Learned the various criteria should be followed during physical inspection of the customers business.

32

PART B

RESEARCH

33

CHAPTER: -1(B)

INTRODUCTION

34

1.1 Introduction to the topic

Banking is the one of the sector which reflects the country’s economy. This sector helps in the development of economy through funding. Now the question arise how banks arrange the fund that it distributed to the public? The answer of the question is from the customer saving and investment in their banks.

Researches says that over the period of time a customer can make money through saving but it is always better to invest in portfolio for long run financial goals. Investment means taking risk and the success in the investment depends upon the ability to diversify the risk. Investment is the current commitment of money for a period that will reimburse for future inflation, uncertainty. In country like India which face the enormous task of sufficient capital in their development effort. Having high capital output ratio in India it requires high interest on saving and investment in order to attain high level of growth. In 1980 Mr. P.V. Narsimha Rao said that “increase in saving will be use for increased in capital formation and that increase in capital formation will lead to economic growth”

In an investment there are three dimensions.

Some of the investment avenues of the Axis bank are:-

1. Fixed Deposit 2. Recurring Deposit 3. Public Provident Fund 4. Insurance 5. Pension scheme. 6. Share & stock.

35

Today’ Scarifies Prospective gain in future

Investment

Time

1.2 Objectives of the study

Some of the objectives of the study are as follows:-

1. To study the whether there is any impact of income into the amount of investment in the axis bank.

2. To identify what are the factors that influences the retail customer while investment

3. To identify what are the other sources the investor would prefer to invest apart from Axis bank and the reason of such investment.

1.3 Scope of the study The project is aimed to how to attract more number of customers and motivating

them to investment in the bank for long period. With respect to that the project also tries to identify the satisfaction level of the customer who have already invest and how it can improve on those elements where it is lacking behind.

Although the study was conducted on real time data, but the study is limited only Civil line branch, Nagpur. The analysis and recommendation was for only Axis bank Civil line branch, Nagpur.

1.4 Limitation of the study(i) The study was conducted in only one branch (Civil line branch, Nagpur).

(ii) The customers were not cooperative.

(iii) Number of respondents for the study was 52.

36

CHAPTER: - 2(B)

REVIEW OF LITERATURE AND RESEARCH

METHODOLOGY

37

2.1 Review of LiteratureRetail banking aims to provide many financial services under one roof for their customer. Some of the financial services are opening of accounts (saving, current, corporate), forex service, providing loan facilities, mutual fund etc

Review of literature helps the researcher to proceed in their research in the right direction. There are various research conducted in retail banking.

1. Prof. Ujwala Bairagi and Prof. Charu Rastogi of MIT School of Management, Pune, Maharashtra conducted research on “The Saving Pattern and investment preference of Individual household with the special references to Pune city”. The objectives of the study are as follow:-a. To study how social, economical, educational and occupation factors

determined the preference of individual saving and investment.b. To suggest the investor about various investment option available with

financial institute.

Researcher has concluded that: -a) investor like professionals, businessman pays less attention in evaluating the pros and cons in investment.

b) There has been increase in number of working women hence they must be made aware about various investment option.

2. Another research was conducted by Prof. CA Yogesh P Patel and Prof CS Charul Y Patel of S.K Somaiya college of Arts, Science and Arts on “Investment perspective of the salaried people with special reference to the private sector”. The aim of the study was:-

a. To study the behaviour of salaried person working in private sector and their perception towards investment alternatives.

b. Also to provide the factor to be considered while investment.

Research has conducted that the salaries people are more concerned with following factor while making investment: - 1. Risk and Return 2. Tax factors.

3. Prof. Amruth Raj Nippatlapalli of V.R. College, Vikrama Simhapuri University, India conducted a research on “The Customer satisfaction level of commercial banks with the special reference to State Bank of India”. Customer satisfaction is one of major indictor which leads to purchase and loyalty. The objective of the study was:-

a. To study satisfaction level of customer towards the State Bank of India

38

b. To evaluate the merits and demerits of State Bank of India.

The researchers came with conclusion that the satisfaction level on the awareness related to online transaction, interest rate on loan, ATM facilities is negative.

4. Dr. Ananthapadhmanabha Achar conducted a research on “Saving and Investment behaviour of teacher” in August 2012. The objectives of the research were as follows:-

a. What are the major saving and investment avenues currently used by the teacher community?

b. What are the perceptions of teaching community on their investment?c. Factors that are responsible varying saving and investment patterns

across different region.

Researcher involved lots of factors while doing his research on saving and investment on teacher community. Some of them are factor infusing investment decision, Purpose of investment etc

5. A study was done on “ Gold and Investor’s perception in different market condition” by Purav Parikh and Anurika Vaish of MBA department, Indian Institute of Information Technology, Allahabad (U.P). The study mostly focuses on the inflation, deflation of the country which has direct impact on return from the gold. The study finds that due to high inflation in the country it has positive impact on the gold. The researcher concluded that at any point the performance of gold remain stable during different market condition.

6. A research was conducted on “Investment attitudes of the women towards the different sources of securities” by Dr. R.Sellappan, Ms. S. Jamuna, Ms. TNR. Kavitha and its published Global Research Analysis on Feb’2013. The purpose of the study to know about the marital status and age factor influencing the women behaviour towards financial institution. The research concluded that married women are curious to invest then unmarried women and it was also founded that younger are more interested to invested in mutual fund, insurance then older.

39

2.2 Research Methodology

2.2(I) Research Topic: -“A study on saving and investment pattern of retail customer in Axis bank”

2.2(II) Sampling Procedure1. Data collection: - Data collection is a process of collecting data using various

type of methods and instrument. The purpose of data collection is to gather information which will help to researcher to take decisions on the research problem. There are two methods of data collection:- 1) Primary Data and 2) Secondary DataA) Primary Data: - In primary data collection, the data are collected using

techniques such as interview and questionnaire. B) Secondary Data: - In secondary data collection, the data can be collected

using the research paper, journals, newspaper, magazines.2. Research Design: -The research design that will be used in this research will

be descriptive because it is pre-planned and structure design which gives us the prefect result.

3. Sampling Method: -Sampling Method: - Convenience sampling method.Survey Method: - Questionnaire and interview.Sample Size: - 52

40

CHAPTER: - 3(B)

HYPOTHESIS OF THE STUDY

41

1. H1: - There is a significant relation between marital status and yearly investment in Axis bank.

Marital and Investment Amount Cross tabulation

Count

Investment Amount Total

Below Rs

1,00,000

1,00,001-

Rs2,00,000

Rs 2,00,001-Rs

3,00,000

Above Rs

4,00,000

Marital

Married 19 5 2 1 27

Unmarried 19 1 3 0 23

Widow 1 1 0 0 2

Total 39 7 5 1 52

Chi-Square Tests

Value df Asymp. Sig. (2-sided)

Pearson Chi-Square 5.873a 6 .438

Likelihood Ratio 6.090 6 .413

Linear-by-Linear

Association.097 1 .756

N of Valid Cases 52

a. 10 cells (83.3%) have expected count less than 5. The minimum expected count is .04.

Result: - Since p- value is .438 which is more than .05. Hence we reject the alternative hypothesis (H1) and accept the null hypothesis.

Conclusion: -There is no significant difference between marital status and yearly investment in Axis bank.

43

2. H1: - There is a significant relationship between the family income and monthly consumption expenditure.

Family Income and Monthly consumption Cross tabulation

Count

Consumption Total

Below Rs

10000/-

Between Rs

10001/- to Rs

20000/-

Between Rs

20001/- to Rs

30000/-

Above Rs

30000/-

Family Income

Rs1,00,001- Rs

3,00,0004 7 0 1 12

Rs 300001- Rs 600000 2 2 9 5 18

Rs 600001-

Rs12000000 3 3 15 21

Above Rs1200000 0 0 0 1 1

Total 6 12 12 22 52

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)



Linear-by-Linear Association 20.515 1 .000

N of Valid Cases 52


Result: - Since p- value is .000 which is less than .05. Hence we accept the alternative hypothesis (H1) and reject the null hypothesis (Ho).

Conclusion: - There is a significant relationship between the family income and monthly house hold consumption of individual.

44

3. H1: - There is a relationship between the amount of investment and period of investment.

Investment Amount and Period of Investment Cross tabulation

Count

Period of investment Total

Less than 1

year

1 year - 3

years

3 years-

5years

More than 5

years

Investment Amt

Below Rs 1,00,000 24 6 5 4 39

1,00,001- Rs2,00,000 2 3 1 1 7

Rs 2,00,001-Rs

3,00,0000 3 1 1 5

Above Rs 4,00,000 0 0 0 1 1

Total 26 12 7 7 52

Chi-Square Tests

Value Df Asymp. Sig. (2-sided)



Linear-by-Linear Association 6.630 1 .010

N of Valid Cases 52


Result: - Since p- value is 0.059 which is more than 0.05. Hence we accept the null

hypothesis (Ho) and reject the alternative hypothesis (H1).

Conclusion: - There is no relationship between the amount of investment and period of investment.

45

4. H1: - There is a significant relationship between returned offered and amount of investment in axis bank.

Investment Amount

Duncan

Return Offer N Subset for alpha = 0.05

1

Neutral 3 1.33

Satisfied 25 1.36

Dissatisfied 13 1.38

Highly Satisfied. 7 1.43

Highly Dissatisfied 4 1.50

Sig. .746

Means for groups in homogeneous subsets are displayed.

a. Uses Harmonic Mean Sample Size = 5.930.

b. The group sizes are unequal. The harmonic mean of the group sizes is used. Type I error levels are not

guaranteed.

ANOVA

Investment Amount

Sum of Squares df Mean Square F Sig.

Between Groups .090 4 .022 .037 .997

Within Groups 28.218 47 .600

Total 28.308 51

Result: - Since p- value is 0.997 which is more than 0.05. Hence we rejected alternative hypothesis and accept the null hypothesis.

Conclusion: - There is no significant difference between returned offered and amount of investment.

46

CHAPTER: - 4(B)

ANALYSIS AND FINDINGS

47

TOPIC: - “A study on saving and investment pattern of retail customer in Axis bank, Nagpur Branch”

Q1. Gender:

Table 1

Sl No Gender Number of respondents Percentage

1 Male 38 73

2 Female 14 27

Total 52 100

Chart 1

73%

27%

Pie chart showing percentage of male and female

MaleFemale

Interpretation: -

The table along with the pie chart shows that 73 % of the respondents who are bank are male and 27% of the respondents are female.

48

Q 2: -Marital Status:-

Table 2

Sl. No Status Number of respondents Percentage

1 Married 27 52

2 Unmarried 23 44

3 Divorced 0 0

4 Widow 2 4

Total 52 100

Chart 2

52%44%

4%

Marital status of respondents

MarriedUnmarriedDivorcedWidow

Interpretation: -

From the table and chart of marital status it can be concluded that 52% of the respondent are married where as 44% of the respondent are unmarried and 4% of the respondent are widow.

49

Q 3:- Age of the respondents:-

Table 3

Sl no. AgeNumber of

respondents Percentage1 Below 30 years 27 52

231 years-40

years 18 34

341 years - 50

years 3 64 Above 50 4 8

Total 52 100

Chart 3

52%

34%

6%

8%

Age of respondents

Below 30 years31 years-40 years41 years - 50 yearsAbove 50

Interpretation: -

Out of the total 52 respondents, who are the customer of axis bank 52% of the respondents are below 30 years, 34% of the respondents are between 31 years to 40 years, 6% of the respondents are between 41 years and 50years, and remaining 8% of the respondents are above 50 years.

50

Q 4:- Educations background of the respondents: -

Table 4

Sl no. EducationNumber of

respondents Percentage

1 Under Graduate 1 2

2 Graduate 17 33

3 Post Graduate 30 57

4 Professional 4 8

Total 52 100

Chart 4

2%

33%

57%

8%

Educational background of respondents

Under GraduateGraduatePost GraduateProfessional

Interpretation: -

Out of the total respondents 57% of them are post graduate, 33% of them are only graduates, 8% of the respondents have professional degree and the remaining 2% of them are under graduate.

Q 5:- Occupation:-

51

Table 5

Chart 5

Public Private Government Business Retired 0

5

10

15

20

25

30

35

40

3

37

10

1 1

Occupation of respondents

Occupation

Num

ber o

f res

pond

ents

Interpretation: -

Out of 52 respondents, 37 respondents are in private sector, 3 respondents are from public sector, 10 respondent are working with government and remaining 1 respondent have business and 1respondent is retired.

Q6: - Family structure: -

52

Sl no. OccupationNumber of

respondents Percentage1 Public 3 62 Private 37 713 Government 10 194 Business 1 25 Retired 1 2

Total 52 100

Table 6

Sl no. Family StructureNumber of

respondentsPercentag

e

1 Nuclear family 35 67

2 Joint Family 17 33

Total 52 100

Chart 6

67%

33%

Family Structure of respondents

Nuclear familyJoint Family

Interpretation: -

Out of total respondent, 67% of respondents have said that they have nuclear family and 33% of the respondent said that they have joint family.

Q 7: - Numbers of members in a family: -

53

Table 7

Sl no.Numbers of family

membersNumber of customers Percentage

1 1 to 2 5 10

2 3 to 5 28 54

3 More than 5 19 36

Total 52 100

Chart 7

5

28

19

Number of family members of the respondents

1 to 23 to 5More than 5

Interpretation:-

10% of the respondent said that in their family only 1-2 member are there, 54% of the respondent said that they have 3 to 5 members in their family and remaining 36% said that they have more than 5 members in their family.

Q 8: - Income group:-

54

Table 8

Sl no. Income groupNumber of


1 Single Income 26 50

2 Multiple Income 26 50

Total 52 100

Chart 8

Single Income Multiple Income0

5

10

15

20

25

3026 26

Income group of the respondents

No.

of r

espo

ndnt

s

Interpretation: -

50 % of the respondent said they belong from single income group where as 50% of other respondent said that they belong from multiple income groups.

Q 9:- Yearly Income of the respondents: -

55

Table 9

Sl no. Yearly Income

Number of respondents Percentage

1 Below Rs 1 lacs 0 0

2 Rs 1 lacs - Rs 3 lacs 12 23



5 Above Rs 12 lacs 1 02

Total 52 100

Chart 9

Below Rs 1 lacs Rs 1 lacs - Rs 3 lacs

Rs 3 lacs - Rs 6 lacs

Rs 6 lacs - Rs 12 lacs

Above Rs 12 lacs0

5

10

15

20

25

0

12

18

21

1

Yearly Income of respondents

No.

of r

espo

nden

ts

Interpretation:-

Out of 52 respondents, 12 said that their yearly income is between 1 lacs and 3 lacs, 18 respondents said between Rs 3 lacs and Rs 6 lacs, 21 respondents said between Rs 6 lacs and 12 lacs, and remaining 1 respondent said above Rs 12 lacs.

Q 10:- How much tax return filled for last financial year?

56

Table 10

Sl no. Tax Return Filled


1 Below Rs 20000/- 13 25

2Between Rs 20001/- and Rs

40000/- 6 12


60001/- 8 154 Above Rs 60001/- 25 48

Total 52 100

Chart 10

Below Rs 20000/- Between Rs 20001/- and Rs 40000/-

Between Rs 40001/- and Rs 60001/-

Above Rs 60001/-0

5

10

15

20

25

30

13

6 8

25

Tax return filled by respondents

No.

of r

espo

nden

ts

Interpretation: -

Out of 52 respondents, 13 respondents said that their last year tax return filling was below Rs 20000/- , 6 respondents they paid between Rs 20001/- and Rs 40000/- as tax from their income, 8 respondents pays between Rs 40001/- and remaining 25 respondents pay above Rs 60001/-.

Q 11: - What is your monthly household expenditure?

57

Table 11

Sl no. Monthly Household Expenditure


1 Below Rs 10000/- 6 12


20000/- 12 23


30001/- 12 23

4 Above Rs 30001/- 22 42

Total 52 100

Chart 11

Below Rs 10000/- Between Rs 10001/- and Rs 20000/-

Between Rs 20001/- and Rs 30001/-

Above Rs 30001/-0

5

10

15

20

25

6

12 12

22

Average Monthly Household consumption

No.

of r

espo

nden

ts

Interpretation: -

6 respondents out of 52 respondents said that their monthly household expenditure is below Rs 10000/- where as each 12 respondents said that their monthly household expenditure is between Rs 10001/- to Rs 20001/- and between Rs 20001/- to Rs 30000/- and remaining 22 said above Rs 30001/-.

Q 12: -Types of account owned by respondents in Axis Bank:-

58

Table 12

SL no. Type of Account


1 Saving 23 442 Loan 3 6

3Retail Exchange foreign

a/c 6 124 CC A/c 6 125 Joint A/c 5 106 Demat A/c 1 27 Current A/c 0 08 More than 1 8 16

Total 52 100

Chart 12

Savin

gLo

an

Retail E

xchan

ge fo

reign

a/c

CC A/c

Joint A/c

Demat

A/c

Current

More than

10

5

10

15

20

2523

36 6 5

1 0

8

Types of accounts hold by respondents

No.

of r

espo

nden

ts

Interpretation: -

44% of customers have said that they saving bank account, 6 %( app.) said that they have loan a/c with the bank, each 11% of respondent said that they have retail exchange foreign a/c and cc a/c, 1% said demat a/c and 15% said that they have more than one account with axis bank.

Q 13: - Common tenure of investment in axis:

59

Table 13

Sl no. Common TenureNumber of

respondents Percentage1 Less Than 1 year 26 502 1 year - 3 years 12 243 3 year - 5 years 7 134 More than 5 years 7 13

Total 52 100

: -

Graph 13

Less Than 1 year 1 year - 3 years 3 year - 5 years More than 5 years0

5

10

15

20

25

30 26

12

7 7

Number of years

Num

ber o

f cus

tom

ers

Interpretation: -

About 50% of customers invest their money less than 1 year, 24% of customers invest their money for 1year–3 years, and each 13% of customers invested money for 3 years – 5years and above 5 years.

:

Q 14: - Yearly investment in axis bank products:

60

Table 14

Sl no.

Yearly Investment



2Rs 1 lacs - Rs 2

lacs 7 13

3Rs 2 lacs - Rs 3

lacs 5 10

4Rs 3 lacs &

Above 1 2

Total 52 100

Chart Number: -14

Below Rs 1 lacs Rs 1 lacs - Rs 2 lacs Rs 2 lacs - Rs 3 lacs Rs 3 lacs & Above0

5

10

15

20

25

30

35

40

39

7 51

Total amount invested by respondents yearly in axis bank products.

No. o

f res

pond

ents

Interpretation: -

Out of the total 52 responded, 39 said that they invested less than Rs1 lakh in various investment avenues, 7 respondent said that they invested between Rs 1 lakh and Rs 2 lakh, 5 respondents said that they invest between Rs 2 lakh and Rs 3 Lakh and remaining 1 respondent said he/she invested more than Rs 3 lakh.

Q 15:- Yearly saving in the Axis bank: -

61

Table 15

Sl no. Yearly Investment



2Rs 1 lacs - Rs 2

lacs 13 25

3Rs 2 lacs - Rs 3

lacs 13 25

4 Rs 3 lacs & Above 1 2

Total 52 100

Chart 15

Below Rs 1 lacs Rs 1 lacs - Rs 2 lacs Rs 2 lacs - Rs 3 lacs Rs 3 lacs & Above0

5

10

15

20

25

25

13 13

1

Yearly saving by respondents in axis bank

No. o

f res

pond

ents

Interpretation: -

Out of the total 52 respondents, 25 respondents said that they save less than Rs1 lakh in various investment avenues, 13 respondents said that they save between Rs 1 lakh and Rs 2 lakh, 13 respondents said that they save between Rs 2 lakh and Rs 3 Lakh and remaining 1 respondent said he/she save more than Rs 3 lakh.

Q 16: - Purpose of investment.

62

Table 16

Sl no. Purpose of investment

Number of customers

Percentage

1 To arrange for the inflation in the future 3 6

2To maintain same standard of living in

old age 8 163 Tax Saving 20 384 For money growth 4 85 Good rate of return 4 86 Safety of money 6 127 More than 1 7 13

Total 52 100

Chart 16

To

arran

ge fo

r the i

nflation in

the f

uture

To m

aintai

n same s

tandard

of livin

g in old ag

e

Tax S

aving

For m

oney gr

owth

Good rate

of retu

rn

Safet

y of m

oney

More than

1048

121620

38

20

4 4 6 7

Purpose of investment

Num

ber o

f res

pond

ents

Interpretation: -

Out of 52 respondents, 20 respondent said that the main purpose of the investment is tax saving, 8 respondent said that they invest to maintain the same standard of living, 3 respondents said that the main reason to arrange for the inflation in the future, each of 4 respondent told about money growth and good rate of return, 6 respondents said safety of money and remaining 7 respondents gave more than 1 reasons.

Q 17: - Various investment option customer aware of axis bank.

63

Table 17

Sl no.

Aware of various investment options


1 Fixed Deposit 4 82 Recurring Deposit 0 03 Public Provident Fund 3 64 Insurance 6 115 Mutual Fund 6 116 National Pension Scheme 1 27 Shares ans Stock 1 28 More than 1 30 60

Total 52 100

Chart 17

Fixed Deposit

Recurring Deposit

Public Provident

Fund

Insurance Mutual Fund

National Pension Scheme

Shares ans Stock

More than 1

0

5

10

15

20

25

30

35

4

03

6 6

1 1

31

Aware about various investment options

No.

of r

espo

nden

ts

Interpretation: -

Out of 52 respondents, 4 respondents said they are about fixed deposit, 0 respondent said they are aware about recurring deposit in axis bank, 3 respondents said that they are aware about PPF, 6 respondent about insurance, 6 respondents in mutual fund, 1 in national pension scheme, 1 in shares and stock and 31 respondent said that they are aware about more than 1 investment options.

64

Q 18:- Investment option where customer have invested or decided to invest in future?

Table 18

Sl no.

Invested/Decided to Invest on option

Number of respondents

Percentage

1 Fixed Deposit 9 172 Recurring Deposit 1 23 Public Provident Fund 4 84 Insurance 11 215 Mutual Fund 9 176 National Pension Scheme 3 67 Shares ans Stock 2 48 More than 1 13 25

Total 52 100

Chart 18

Fixed Deposit

Recurring Deposit

Public Provident

Fund

Insurance Mutual Fund

National Pension Scheme

Shares ans Stock

More than 1

0

2

4

6

8

10

12

14

9

1

4

11

9

32

13

Investment/Decided to invest on various investment

No.

of re

spon

dent

s

Interpretation: -

Out of total investment, 9 respondents said they have invested or likely to invested in fixed deposit, 1 respondent said they have invested or likely to invested in recurring deposit, 4 respondents said in favour of PPF, 11 respondent in insurance, 9 respondents in mutual fund, 3 in national pension scheme, 2 in shares and stock and 13 respondent said that they have invested more than 1 investment options.

65

Q 19: - Factor considered most while investing in various avenues:-

Table 19

Sl No FactorsNumber of


1 Good Return 7 13

2 Safety 9 17

3 Both 36 69

Total 52 100

Chart 19

Good Return Safety Both0

5

10

15

20

25

30

35

40

79

36

Factors that are considered while investment by the customers

No. o

f res

pond

ents

Interpretation: -

Out of 52 respondents, 7 respondents said that the most important factor that they considered while investing in various investment avenue is good return, 9 respondents said that they considered safety as an important factor, and remaining 36 respondents said that they included both good return and safety.

66

Q 20: - People whom customer consult before investment in Axis bank?

Table 20

Sl no. Consulting


1 Use my own Knowledge 10 192 Spouse 5 103 Parents 3 64 Relatives 4 85 Bank Staff 6 126 Expert View 7 137 Rating (by CRISIL, CARE, ICRA) 4 88 More Than 1 13 25

Total 52 100

Chart 20

Use my own

Knowledge

Spouse Parents Relatives Bank Staff

Expert View

Rating (by CRISIL, CARE,

ICRA)

More Than 1

0

2

4

6

8

10

12

14

10

5

34

67

4

13

People whom customer consult before making investment

No. o

f res

pond

ents

Interpretation: -

10 respondents said that while investing they use their own knowledge, 5 respondent said that they ask their spouse before investment, 3 respondent consult their parents, 4 of them consult their relatives, 6 respondents consult bank staff, 7

67

respondent consult with expert, 4 respondents see rating and remaining 13 respondent use more than one factors.

Q 21: - After receiving maturity amount from investment.

Table 21

Sl no. Use of maturity amount


Percentage

1 Reinvest in same option 12 23

2 Investment in another option 9 17

3 Use for other purpose 31 60

Total 52 100

Chart 21

Reinvest in same option Investment in another option

Use for other purpose

0

5

10

15

20

25

30

35

129

31

Use of maturity amount from investment option

No.

of r

espo

nden

ts

Interpretation:-

Chart represent that 12 respondent are ready to reinvest their maturity amount from earlier investment to same investment option, 9 respondent said they are likely to invest in other investment option of bank, remaining 31 respondents said that they will use their maturity amount for other purpose.

68

Q 22:-

a. Do you want to reinvest your maturity amount in Axis bank product?

Table 22 (A)

Sl no.

Reinvest of maturity Amount


Percentage

1 Yes 32 61

2 No 20 39

Total 52 100

Graph 22 (A)

61%

39%

Respondents who want to reinvest their ma-turity amount in Axis bank

YesNo

Interpretation: -

The pie chart shows the total number of respondents who want to reinvested their maturity amount again in Axis bank products. 61% respondent said they are more interested to invest again to axis bank product and 39% respondent said they are not interested at all.

69

b. If no, which investment you want to invested your maturity amount?

Table Number: - 22 (B)

Sl no. Investment of maturity Amount


Percentage

1 Real Estate 10 50

2 Commodity market 5 25

3 Other Banks or Financial Institution 2 10

4 Government Stock 2 10

5 Personnel Use 1 5

Total 20 100

Chart Number: - 22 (B)

50

25

10

10

5

Percentage

Real EstateCommodity marketOther Banks or Financial Insi-tutionGovernment StockPersonnel Use

Interpretation: -

The pie chart along with the table represent those respondent who said “no” to axis bank products and would like to invested in other investment option. 50% of the respondents said that they are likely to invested in real estate, 25% respondent said they would likely to invest in commodity market, 10% said in other banks and

70

financial institute, 10% said government stock or security and 5% said they want to use for personal purpose

c. Reasons for investment in other company or industry:-

Table Number: 22 (c)

Sl no. Reason for investment


Percentage

1 High Return 9 45

2 More Safety 5 25

3 Can’t Say 6 30

Total 20 100

Chart Number: - 22(c)

High Return More Safety Cant Say0

1

2

3

4

5

6

7

8

9

109

5

6

Reason for investing in other company or industry

No.

of r

espo

nden

ts

Interpretation:-

The graph representing that out of 20 respondents who “no” gave the reason, 9 respondents said that the reason they want to invested in other options apart from axis bank because they feel that the other investment gives more return than axis bank product give on investment, 5 respondents said that it is more safety in other investment then investing in Axis bank investment and 6 respondent didn’t said anything.

71

Q 23:- Are you satisfied with the return offered by the bank on the investment that you made?

Table 23

Sl no.

Satisfaction level from returned


Percentage

1 Highly Dissatisfied 4 8

2 Dissatisfied 13 25

3 Neutral 3 6

4 Satisfied 25 48

5 Highly Satisfied 7 13

Total 52 100

Chart 23

Highly Dissatified Dissatisfied Neutral Satified Highly Satified0

5

10

15

20

25

4

13

3

25

7

Satification level of respondents from return

No.

of r

espo

nden

ts

Interpretation: -

Out of 52 respondents, 4 respondents said that he is highly dissatisfied with the return from investment , 13 respondents said that they are dissatisfied with the return they are expected to get from bank, 3 respondents are in neutral, where as

72

respondents said that satisfied with the return and remaining 7 respondents said that they are highly satisfied.

Q 24:- Are you satisfied with the current service by the bank on the investment?

Table 24

Sl no.

Satisfaction level from current service


1 Highly Dissatisfied 1 22 Dissatisfied 4 83 Neutral 16 314 Satisfied 26 505 Highly Satisfied 5 9

Total 52 100

Chart 24

Highly Dissatified Dissatisfied Neutral Satified Highly Satified0

5

10

15

20

25

30

14

16

26

5

Satisfaction level of respondents from current service

No.

of r

espo

nden

ts

Interpretation: -

Out of 52 respondents, 1 respondent said that he is highly dissatisfied with the current service related to investment from bank, 4 respondents said that they are dissatisfied with the service, 16 respondents are in neutral, whereas 26 respondent

73

said that satisfied with the service and remaining 5 respondents said that they are highly satisfied.

Q 25 (A) : Are you aware with about the various charge that bank deducted from your investment?

Table 25 (A)

Sl no. Awareness of chargesNumber of


1 Yes 47 90

2 No 5 10

Total 52 100

Chart 25(A)

90%

10%

Pie Chart Showing customer awarness related to charges

YesNo

Interpretation: -

74

Both table and chart shows that 90% of the respondents are aware about various charge such as processing fee that bank deducted on various investment option and 10% respondents are not aware about the charges.

Q 25 (B):- If “yes” are you convinced with charges of the bank:-

Table 25 (B)

Sl no.

Satisfaction level for charges


Percentage


2 Dissatisfied 9 19

3 Neutral 2 4

4 Satisfied 27 57


Total 47 100

Chart 25 (B)

Highly Dissatisfied Dissatisfied Neutral Satisfied Highly Satisfied0

5

10

15

20

25

30

5

9

2

27

4

Satisfaction level of customer related to charges

No.

of r

espo

nden

ts

Interpretation:-

75

Out of 52 respondents, 5 respondents said that they are highly dissatisfied with the charges bank implemented on the investment, 9 respondents said that they are dissatisfied with the charges, 2 respondents are in neutral, 27 respondents are satisfied with the charges and remaining 4 are highly satisfied.

Q 26: - Are you satisfied with the knowledge of staff and customer inquiry on the product where customers want to invest?

Table 26

Sl no.

Satisfaction level for staff Knowledge and customer inquiry



2 Dissatisfied 1 2

3 Neutral 6 12

4 Satisfied 37 71


Total 52 100

Chart 26


5

10

15

20

25

30

35

40

1 1

6

37

7

Satisfaction level of staff knowledge and solv-ing customer enquiry

No.

of

resp

onde

nts

Interpretation: - Out of 52 respondents, 1 respondent said that he/she highly dissatisfied with the staff knowledge and solving customer enquiry,1 respondent said that he/she

76

dissatisfied with the staff knowledge and solving customer enquiry, 6 respondents are neutral i.e they are neither satisfied nor dissatisfied, 37 respondents said that they are satisfied with the staff knowledge and solving customer enquiry, and remaining 7 respondents said that they are highly satisfied with staff knowledge and solving customer enquiry.Q 27: - Are you satisfied with the settlement process of bank at the time of maturity of investment?

Table 27

Sl no.

Satisfaction level of settlement process



2 Dissatisfied 2 4

3 Neutral 24 46

4 Satisfied 21 40


Total 52 100

Chart 27


5

10

15

20

25

30

02

2421

5

Satisfaction level of respondents with set -tlement process

No.

of r

espo

nden

ts

Interpretation:- Out of 52 respondents, 2 respondent said that they dissatisfied with the settlement process of investment avenues, 24 respondents are neutral i. They are neither

77

satisfied nor dissatisfied, 21 respondents said that they are satisfied with settlement procedure of axis bank with their investment at the time of maturity, and remaining said that they are highly satisfied.

CHAPTER: - 5(B)

SUGGESTION, RECOMMENDATION AND

CONCLUSION

78

5.1 Suggestion and Recommendation

Analysis was done to find out the saving and investment pattern of the retail customers. One the basis analysis following suggestion can be provided to the company

1. Most of the customers hold is mostly saving account specially salary accounts. So bank can provided free credit card while issuing debit card.

2. Most of the customers invest for the time period for less than 1 year. Hence the bank must try to increase the tenure period of customer by offering high interest rate. Bank provided rate of interest fixed deposit between 1 yrs but less than 13 month is 8.20% where as interest rate between 14 month and less than 15 month is 8.10%. So they should increase the interest rate of the basis of time period.

3. Most of the customers invested for less than Rs 1 lacs. In order to make customers spent more that should give more interest rate on high investment. Bank gives same rate of interest to customer who have invested between 15 lacs and 1 crore in fixed deposit as same to the customer who have fixed deposit between Rs 1 crore and less than 5 crores which is 8.10% for 13month less than 14 month.

4. From the graph of the occupation most of the respondents have a private job so the facilities provided to them by their organization is much lower than central government provided so the bank can do lots of cross selling such as with life insurance coverage providing medical insurance.

5. Most of the customers prefer to use their maturity amount for other purpose because they feels that if they invested on other invested they can gain more return what bank offer to them in return. Hence bank should to communicate with the customers that the investments they are making are safer than any other type of investment.

6. Out of 52 customers it has been seen that most of the married customer invest on various product than unmarried customer. Research says that unmarried customer specially youth between the ages 17-24 like to spend more. So bank can target with lot of bringing new offer such as youth credit cards with low interest rate.

7. Bank should have workup on their settlement process at the time of maturity.

5.2 Conclusion Axis bank is one of the largest banks with large number of customers and has a wide portfolio base. But the amount of saving and investment made is too small which range below Rs 100000/-. Hence it is necessary for the bank to see that what the other option is available with the customers and why they are attract to invest in that option. If possible they should work on that factor which attracts customers most. The bank should work upon cross selling rather focus in single product selling at a point of time i.e. portfolio selling.

79

CHAPTER: - 6(B)

BIBLOGRAPHY AND ANNEXTURE

80

6. 1 Bibliography:-

Books: -

Deepak Chawla, N. S. Research methodology. Vikas.

Fred R. David, F. R. Strategic Management. (15th, Ed.) Pearson.

H.L.Ahuja, D. Modern Macroeconomics. S.Chand.

IIBF. Legal and Regulatory Aspect of Banking. (3rd, Ed.) Macmillan education.

IIBf. (September 2013). Small and Medium Enterprises in India. Taxmann.

Philip Kotler, G. A. Principal of Marketing. (13th, Ed.) Pearson.

Research paper: -

“Investment attitude of women towards the difference sources” by Dr. R.Sellepa, Feb 2013.

“Investment perspective of salary people with special reference to private sector” by Prof. CA Yogesh P Patel & CS Charul Y Patel, Asia Pacific Journal, Oct-2012.

“The saving pattern and investment preference of individual household with special reference to pune city” by Dr. Ujalla Bairangi & Prof. Charu Rastogi

Website: -

www. ibef.com

www. investopedia.com

www. axisbank.com

www. rbi.com

www. tradingeconomics.com

www. statistictimes.com

www. moneycontrol.com

81

6.2 Annexure: -

Questionnaire

PART A

1. Name& Customer: __________________________________2. Gender: a) Male b)Female3. Marital Status: a) Married b) Unmarried c)Divorced4. Age: a) Below 30 b) 31-40 c) 41-50 d) Above 505. Education: a) Under-Graduate b)Graduate c)Post Graduate

d)Professional Degree6. Occupation: a) Public b) Private c) Government d) Business7. Family Structure: a) Nuclear Family b) Joint Family8. How many members are there in your family?

a. 1-2 b.3-5 c. More than 59. Are you in:- a) Single Income Group b) Multiple Income10. Income(In Rs): a) Below 100000 b) 100001- 300000 c) 300001-600000

d) 600001- 1200000 e) Above 120000011.How much tax you pay? ________________________________12.Monthly household expenditure? ___________________________________

PART B

1. What type of banking account is owned by you in Axis Bank?

a) Saving A/c b) Loan A/c c) Retail Exchange Foreign A/c d) CC A/c e) Joint A/c f) Demat A/c

2. What is your common tenure of Investment in Axis Bank?

a) Less than 1 year b) 1 year – 2 years c) 3 years – 5 years 4) More than 5 years

3. What is the amount that you investment yearly in Axis Bank Products?

a) Below Rs 100000 b) Rs 100001- Rs200000 c) Rs 200001-Rs 300000 d) Above Rs 400000.

4. What is your yearly saving in Axis Bank?

82

a) Below Rs 100000 b) Rs 100001- Rs200000 c) Rs 200001- Rs 300000 d) Above Rs 400000.

5. What is the purpose of your Investment and saving?

a) To arrange for the inflation in the future b) To maintain the same standard of living in old age c) Tax Saving d) For money growth e) good rate of return f) Safety of money

6. What are the various investment options you are aware of Axis Bank?

a) Fixed Deposit b) Recurring Deposit c) Public Provident Fund d) Insurance e) Mutual fund f) National Pension Scheme g) Govt Scheme h) Shares and Stock

7. Which of these investment options you like to invest this year or already invested in our bank?

a) Fixed Deposit b) Recurring Deposit c) Public Provident Fund d) Insurance e) Mutual fund f) National Pension Scheme g) Govt Scheme h) Shares and Stock

8. What are the factors you considered as important while choosing investment option?a) Good Return b) Safety c) Both

9. For making any investment decision, who are the people you consult most before investment in Axis bank?

a) Use my own Knowledge b) Spouse c) Parents d) Relatives e) Bank Staff f) Expert View g) Rating (by CRISIL, CARE, ICRA)

10. After receiving the maturity amount of investment what you do?

a) Reinvest in same option. b) Investment in another option c) Use for other purpose

11. If you reinvest your maturity amount do you go with same Axis Bank product?

a) Yes b) No

If No,

a) Which other company product you are going to invested your money?____________________

b) Reasons for investment on other company? ____________________

PART 3

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1. Are you satisfied with the return offered by the bank on the investment that you made?a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied

e) Highly Satisfied.

2. Are you satisfied with the current service offered by the bank on the investment?a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied e)

Highly Satisfied.3. Are you aware with about the various charges that bank deducted from your

investment amount?a) Yes b) No

If “yes”, are convinced with the charges of the bank.

a) Very Much b) Somewhat c) Undecided d) Not Really e) Not at all4. Are you satisfied with knowledge of staff and customer inquiry on the product

that you want to invest?a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied


5. Are you satisfied with settlement process of bank at the time of maturity of your investment?a) Highly Dissatisfied b) Dissatisfied c) Neutral d) Satisfied


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