FINANCIAL OVERVIEW OF AXIS BANK & COMPARATIVE

STUDY OF CURRENT ACCOUNT AND SAVING ACCOUNT

WITH OTHER BANKS

CERTIFICATE OF ORIGIN
This is to certify that

has worked in AXIS BANK LTD., under the able guidance

and supervision of
The period for which she was on training was for 6 weeks, starting from report has
the requisite standard for the partial fulfillment the . To the best of our knowledge no
part of this report has been reproduced from any other report and the contents are
based on original research.

ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task
remains incomplete without mentioning the people who make it possible. These are
the people whose constant guidance in several aspects of this report has made my
work successful. I feel delighted to express a few words of gratitude and response to
all those distinguished personalities who have guided and inspired me for the
successful completion of this report.
I deeply indebted to

my industry guide for giving me the opportunity to do this

project under his guidance. I express my sincere gratitude for the continuous guidance
and encouragement that he has provided me to carry out the project work.
I have gratification in expressing my sincere thanks to

my faculty guide for

providing the necessary advice and support during the course of this work.
Last, but not the least certainly, I pay sincere thanks to my family members and to all
my friends who have helped me directly or indirectly during the completion of work.

DIRECTORS CERTIFICATE
3

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

Bank and comparative study of current account and saving account with
other banks is carried by RAUSHAN AJIT student of PGDM II
(Banking & Finance) at AIT, School of Management, Greater Noida
under the supervision of Mr.RAHUL CHANDRA Faculty, AIT School of
Management Greater Noida.
This is an original work carried out by the said student to the best of my
knowledge and I recommended for the submission of this research
project.

Ex-Director
Prof. R. K. Verma
AIT School OF Management
Greater Noida

STUDENT DECLARATION
I am RAUSHAN AJIT student of APEEJAY Institute of Technology,
School of Management, Course PGDM (Banking & Finance), declare
that the project report titled Financial overview of Axis Bank and
comparative study of current account and saving account with other
banks is a genuine research work undertaken by me and it has not been
published anywhere earlier.

Date:
26/08/10
Place: GREATER NOIDA

RAUSHAN AJIT

TABLE OF CONTENTS
CHAPTER NO.

SUBJECT

PAGE NO.

Executive Summary

Introduction

2.1 objectives
Literature Review

4.0 Industry Profile

4.1 SWOT Analysis(Industry)
4.2 Company Profile
4.3 SWOT Analysis
4.4 AXIS BANK Financial Position

Analysis
5.1 Savings Account at AXIS Bank
5.2 Current Account at AXIS Bank
5.3 Fixed deposit at AXIS Bank

5.4 Ratio Analysis

Findings

Recommendations

Conclusion

Bibliography

10

Annexure-1
Income Statement
Annexure-2
Cash Flow Statement
Annexure-3

11

Balance Sheet
Case Study

12

Synopsis

EXECUTIVE SUMMARY
The banking sector in India has become very much competitive in last few years with
the increasing growth of private and public sector banks. Day by day the competition
is most stringent and crucial.
I undertook training in AXIS bank limited for profiling to understanding the banking
operation and services provided by axis bank.
This project is basically being formulated to make a comparison of the current
account, saving account ,FD facilities being provided by the different banks, like
ICICI,HDFC, YES BANK leveling with the presence of AXIS BANK. The market
needs are continuously changing and so are the needs of the current account & saving
account holders. So this project also represents the basic facilities being provided by
the covered banks and helps the required people to make their decisions while
choosing a bank for their current accounts, saving account & FD.
This study evolves a attempt to bring forward the various facilities being provided by
the top privatized banks as for the current account& saving account holders. Also the
significance of AXIS BANK has been brought forward in the report.
AXIS bank was established in and is working with larger assets side in private sector
banks. The quality of service is best among competitor.
Axis Bank is one of the fastest growing banks in the country and has an extremely
competitive and profitable banking franchise evidenced by:
Comprehensive portfolio of banking services including Corporate Credit, Retail
Banking, Business Banking, Capital Markets, Treasury and International Banking.
The major backup of any nation are the industrialists of the same and the prior to them
is the facility of the current accounts and customer of banks which open saving
account. Hence the facilities equipped in current accounts & saving account is always
a task for research.
The key learning that I learnt was the fact that I saw the real corporate world. What is
the pressure that each employee faces each day. I was working in a professional
working environment with professional working people. This was my real learning.
Apart from that I worked on real projects, learned how banks gives current account,
7

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

with different types of clients. Working on the real time project made me learnt how
to read a bank statement.. I would thank AXIS BANK to give me such a immense
opportunity to work with them. I learned there working and functioning of the bank.
Axis bank is one of the fastest growing banks in India and has extremely competitive
and profitable banking franchise. Axis bank is the first new generation private sector
bank to be established in India under the overall reform programme initiated by
Government of India in 1991.Axis bank started its operation from 1994.

INTRODUCTION
The corporate and the business world is always the back bone of any nation. So the
banking sector has always given its best to provide the same with the best available
services to make the purpose futile. Hereby in this report a comparison has been
made to bring forward the services being provided by various banks as related to the
current account, saving account.

OBJECTIVES:

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

2. Understand how banking activities actually takes place in AXIS
BANK.
3. To gain an insight and in depth knowledge about banking
products of AXIS BANK
4. Compare services being provided by axis bank with major competitor in the
market.

LITERATURE REVIEW
Saving account: A safe place to let the money flourish
Not long ago there were lesser number of banks in the country and the banking
services were also restricted to certain areas only. Usually, it used to take a huge
amount of time to make a single financial dealing. However, the situation has changed
in a better way after the stepping in of private and foreign banks in the country.
Nowadays, banking companies are chasing a customer-oriented approach, so as to
fulfill the needs of their consumers and to maintain that have also rolled-out several
new

products

and

services.

But it is the saving account, which the people of the country always depend upon. It is
the most beneficial investment instrument to place deposit money and earn interest.
The excellent aspect of this bank account is that it earns interest for the accountholder. It is something like an investment, where the person invests his/her earnings
and gains interest as a return gift. However, the interest rates are not too good in the
opinion of many of the clients across the country since, they change from bank to
bank.
Savings accounts services are offered by virtually every the banks in the nation, but
the State Bank of India comes out to be at the top among the best popular alternatives
available in the market, while Punjab National Bank and ICICI Bank are other
favorite

public

and

private

banking

organizations

in

India.

Going back to saving accounts again, SBI provides two types of saving accounts
which are saving account and saving plus account. Former account is for the
consumers who are looking forward to save for future monetary requirements,
whereas another bank account provides the advantage of saving account along with
term

deposit

account.

10

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

cash to other accounts is quite an easy process. The online banking functionality for
maintaining saving account is also rendered by nearly every banking firm via which
one can check cash balance and can carry out all the compulsory dealings through the
banking firm's business website. This assists an individual in doing away with long
queues in banks. But make sure, one had better choose his/her type of saving account
according to budgetary requirements.

Current Account
The current account is one of the two primary components of the balance of
payments, the other being the capital account. It is the sum of the balance of trade
(exports minus imports of goods and services), net factor income (such as interest and
dividends) and net transfer payments (such as foreign aid).
The current account balance is one of two major measures of the nature of a country's
foreign trade (the other being the net capital outflow). A current account surplus
increases a country's net foreign assets by the corresponding amount, and a current
account deficit does the reverse. Both government and private payments are included
in the calculation. It is called the current account because goods and services are
generally consumed in the current period.
Saving Account V/s Current Account
Savings Bank Account:
These bank accounts are maintained by private individuals as well as retail financial
institutions. The amount saved earns interest and is subject to the issue of checks, only
if there is a clause permitting the same in the regulations supervising the transactions
of the bank in question. The Savings Account enables the customers to repeatedly
save liquid assets and subsequently earn monetary return in the form of interest.
Savings Accounts are now offered by most credit unions, commercial banks, loan
associations and mutual savings banks. The account has little or no scope to obtain
additional funds, but the money set aside and interest earned may be accessed via any
ATM or bank branch. These accounts also come with a debit card facility to enable
quick transference of funds. A Savings Account makes it mandatory to maintain a
certain amount of fund-balance for a minimum period of time. There are no
11

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

Accounts offer the customer an itemized list or balance sheet of all financial
transactions conducted via a passbook or bank statement generated at the end of every
month.
Current Bank Account:
A Current Bank Account is a transactional account designed especially for the
business community. The account enables businessmen and entities to access flexible
payment methods and directly distribute money to vendors and suppliers from the
account. This is achieved via the check book facility, and special arrangements made
to accommodate standing orders, debit card payments and direct debits into the
account. A Current Account also comes along with an overdraft facility that enables
the businessman to borrow money from the bank to meet any urgent business
commitment. Current Accounts also come along with the 'offset mortgage' facility that
allows the business entity to purchase property and benefit from the reduction in the
rate of interest. This 'offsetting' of a credit balance is basically offered against the
incurred mortgage debt. Current Accounts attract a higher rate of interest, both earned
and payable, since the volume of transactions and savings are on the higher side.
These accounts are designed to make business transactions free of personal-handling
of liquid funds and ensure the availability of funds when most necessary via exclusive
Internet banking. The account is run with the primary aim of ensuring that profitable
business transactions do not run into deficit due to non-availability of funds.
Investing in Fixed Deposits
A fixed deposit account allows you to deposit your money for a set period of time,
thereby earning you a higher rate of interest in return. At the end of maturity period
the depositor gets its principal amount plus interest earned over the maturity period.
Fixed deposits also give you a higher rate of interest than a savings bank account. It is
one of the oldest and most popular forms of investment across India.

12

Benefits of FDs
Fixed deposit offer better returns than saving accounts to depositors. Moreover, there
are several forms of fixed deposits such as recurring deposits where depositors pay a
fixed amount at regular intervals and get back the amount with accumulated interest at
the end of the prescribed period.
1. You can avail loans up to 85% of the principal amount at a reasonable interest
rate.
2. Variable deposit periods ranging from 6 months to 120 months
3. You generally get interest once in 6 months
Downsides of FDs
Though FDs give depositors a fixed return on their investments, there are certain
drawbacks of FDs.
1. FDs are not so liquid i.e. it cannot be withdrawn before it expires. However, there
is a

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

bank.
2. Interest earned after FD maturity is taxable.

13

INDUSTRY PROFILE
INDIAN BANKING SYSTEM

RESERVE BANK OF INDIA

Central bank and Supreme monetary authority

STATE

PUBLC
SECTOR
BANK
COMMERCIAL BANK
FOREIGN
BANK

OTHER
NATIONAL
BANK

SCHEDULED BANK
CO-OPERATIVE

REGIONAL
RURAL
BANK

URBAN

PRIVATE
SECTOR
BANK

OLD

STATE
BANK
OF INDIA

14

NEW

HISTORY OF BANK
The first bank in India, though conservative, was established in 1786. the journey of
Indian Banking System can be segregated into three distinct phases.

PHASE-1 (1786 to 1969))

1786 : The General Bank of India

Next came Bank of Hindustan and Bengal Bank.

The East India Company established Bank of Bengal (1809), Bank of Bombay
(1840) and Bank of Madras (1843) as independent units and called it
Presidency Banks.

These three banks were amalgamated in 1920 and Imperial Bank of India was
established which started as private shareholders banks.

In 1865 Allahabad Bank was established and first time exclusively by Indians,
Punjab National Bank Ltd. was set up in 1894 with headquarters at Lahore.

Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.

Reserve Bank of India came in 1935.

During the first phase the growth was very slow Banks also experienced
periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. the Government of India
came up with The Banking Companies Act, 1949 which was later changed to
15

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

Reserve Bank of India was vested with extensive powers for the supervision of
banking in India as the Central Banking Authority.

16

PHASE- 2

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

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

It formed State Bank of India to act as the principal agent of RBI 7 Banks
formed subsidiary of State Bank of India were nationalised.

It was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14
major commercial banks in the country was nationalised.

The branches of the public sector bank India rose to approximately 800% in
deposits and advances took a huge jump by 11,000%.

PHASE- 3

This phase has introduced many more products and facilities in the banking
sector in its reforms measure.

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

his name which worked for the liberalisation of banking practices.

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

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

Phone banking and net banking was introduced.

The entire system became more convenient and swift.

Time was given more importance than money.

17

Nationalized Banks in India

Banking System in India is dominated by nationalized banks. The nationalizationof
banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister.
The major objective behind nationalization was to spread banking infrastructure
inrural areas and make available cheap finance to Indian farmers. Fourteen bankswere
nationalized in 1969.Before 1969, State Bank of India (SBI) was the only public
sector bank in India.SBI was nationalized in 1955 under the SBI Act of 1955.
The second phase of nationalization of Indian banks took place in the year
1980.Seven more banks were nationalized with deposits over 200 crores.
List of Public Sector Banks in India is as follows:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab and Sind Bank
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India (SBI)
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
18

 UCO Bank
Union Bank of India
United Bank of India s
Vijaya Bank

Private Banks in India

All the banks in India were earlier private banks. They were founded in the
preindependence era to cater to the banking needs of the people. But after
nationalization of banks in 1969 public sector banks came to occupy dominant role in
the banking structure. Private sector banking in India received a fillip in 1994 when
Reserve Bank of India encouraged setting up of private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle'
approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
Private Banks have played a major role in the development of Indian banking
industry. They have made banking more efficient and customer friendly. In the
process they have jolted public sector banks out of complacency and forced them to
become more competitive.
Major Private Banks in India is:
Bank of Rajasthan
Bharat Overseas Bank
Axis Bank
Catholic Syrian Bank
Centurion Bank of Punjab
Dhanalakshmi Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank

19

 IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank
SBI Commercial and International Bank
South Indian Bank
United Western Bank
UTI Bank
YES Bank

GROWTH TRENDS
The Indian banking market is growing at an astonishing rate, with assets expected to
reach US$1 trillion by 2010. An expanding economy, middle class, and technological
innovations are all contributing to this growth. The countrys middle class accounts
for over 320 million people. In correlation with the growth of the economy, rising
income levels, increased standard of living, and affordability of banking products are
promising factors for continued expansion. The Indian banking Industry is in the
middle of an IT revolution, focusing on the expansion of retail and rural banking.
Players are becoming increasingly customer-centric in their A approach, which has
resulted in innovative methods of offering new banking products and services. Banks
are now realizing the importance of being a big player and are beginning to focus
their attention on mergers and acquisitions to take advantage of economies of scale
and/or comply with Basel II
regulation. Indian banking industry assets are expected to reach US$1 trillion by
2010 and are poised to receive a greater infusion of foreign capital, says Prathima
Rajan, analyst in Celent's banking group and author of the report. The banking
industry should focus on having a small number of large players that can compete
globally rather than having a large number of fragmented players."

20

SWOT ANALYSIS OF BANKING INDUSTRY

STRENGTH

Indian banks have compared favourably on growth, asset quality and

profitability with other regional banks over the last few years. The banking
index has grown at a compounded annual rate of over 51 per cent since April
2001 as compared to a 27 per cent growth in the market index for the same
period.

Policy makers have made some notable changes in policy and regulation to
help strengthen the sector. These changes include strengthening prudential
norms, enhancing the payments system and integrating regulations between
commercial and co-operative banks.

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

Extensive reach: the vast networking & growing number of branches & ATMs.
Indian banking system has reached even to the remote corners of the country.

The government's regular policy for Indian bank since 1969 has paid rich
dividends with the nationalization of 14 major private banks of India.

In terms of quality of assets and capital adequacy, Indian banks are considered
to have clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region.

Foreign banks will have the opportunity to own up to 74 per cent of Indian
private sector banks and 20 per cent of government owned banks.
21

WEAKNESS

PSBs need to fundamentally strengthen institutional skill levels especially in

sales and marketing, service operations, risk management and the overall
organizational performance ethic & strengthen human capital.

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

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

only a few customer segments and geographies.

Structural weaknesses such as a fragmented industry structure, restrictions on

capital availability and deployment, lack of institutional support infrastructure,
restrictive labour laws, weak corporate governance and ineffective regulations
beyond Scheduled Commercial Banks (SCBs), unless industry utilities and
service bureaus.

Refusal to dilute stake in PSU banks: The government has refused to dilute its
stake in PSU banks below 51% thus choking the headroom available to these
banks for raining equity capital.

Impediments in sectoral reforms: Opposition from Left and resultant cautious

approach from the North Block in terms of approving merger of PSU banks
may hamper their growth prospects in the medium term.

OPPORTUNITY
22

The market is seeing discontinuous growth driven by new products and

services that include opportunities in credit cards, consumer finance and
wealth management on the retail side, and in fee-based income and investment
banking on the wholesale banking side. These require new skills in sales &
marketing, credit and operations.

Banks will no longer enjoy windfall treasury gains that the decade-long
secular decline in interest rates provided. This will expose the weaker banks.

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

Given the demographic shifts resulting from changes in age profile and
household income, consumers will increasingly demand enhanced institutional
capabilities and service levels from banks.

New private banks could reach the next level of their growth in the Indian
banking sector by continuing to innovate and develop differentiated business
models to profitably serve segments like the rural/low income and
affluent/HNI segments; actively adopting acquisitions as a means to grow and
reaching the next level of performance in their service platforms. Attracting,
developing and retaining more leadership capacity

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

alternative approaches to win the race for the customer and build a valuecreating customer franchise in advance of regulations potentially opening up
post . At the same time, they should stay in the game for potential acquisition
opportunities as and when they appear in the near term. Maintaining a
fundamentally long-term value-creation mindset.

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

With the growth in the Indian economy expected to be strong for quite some
time-especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to
be strong.

the Reserve Bank of India (RBI) has approved a proposal from the
government to amend the Banking Regulation Act to permit banks to trade in
commodities and commodity derivatives.

23

Liberalization of ECB norms: The government also liberalized the ECB norms
to permit financial sector entities engaged in infrastructure funding to raise
ECBs. This enabled banks and financial institutions, which were earlier not
permitted to raise such funds, explore this route for raising cheaper funds in
the overseas markets.

Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI
has allowed them to raise perpetual bonds and other hybrid capital securities to
shore up their capital. If the new instruments find takers, it would help PSU
banks, left with little headroom for raising equity. Significantly, FII and NRI
investment limits in these securities have been fixed at 49%, compared to 20%
foreign equity holding allowed in PSU banks.

THREATS

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

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

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

24

COMPANY PROFILE
Axis Bank was the first new generation private sector bank to be established in
India under the overall reform programme initiated by the Government of
India in1991, under which nine new banking licenses were granted.
The Bank was promoted by Unit Trust of India, the largest mutual fund in
India, holding 87% of the equity. Life Insurance Corporation of India (LIC),
General Insurance Corporation Ltd and its four subsidiaries who were the copromoters held the balance 13%. The Bank started its operations in 1994.
Axis Banks first capital raising post inception was in 1998 through a public
offering of primary shares and in subsequent years through equity allotment to
a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur
Vysya Bank and Chrys Capital leading to a dilution in UTIs shareholding in
the Bank. Further dilution of Promotors shareholding happened during Q4
ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a
GDR issue.The Bank today is capitalized to the extent of Rs. 358.56 crores
with the public holding (other than promoters) at 57.60%.
The Bank's Registered Office is at Ahmedabad and its Central Office is
located at Mumbai. Presently, the Bank has a very wide network of more than
701 branch offices and Extension Counters. The Bank has a network of over
2854 ATMs providing 24 hrs a day banking convenience to its customers. This
is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed
to adopting the best industry practices internationally in order to achieve
excellence.

25

HISTORY OF AXIS BANK

2004
Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible
Debenture Issue, issue fully subscribed
UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the
Administrator of the Specified Undertaking of the Unit Trust of India (UTI - I)
has been appointed as an Additional Director of the Bank w.e.f. January 20,
2004.
UTI Bank opens new branch in Udupi
UTI Bank, Geojit in pact for trading platform in Qatar
UTI Bank ties up with Shriram Group Cos
Unveils premium payment facility through ATMs applicable to LIC & UTI
Bank customers
Metaljunction (MJ)- the online trading and procurement joint venture of Tata
Steel and Steel Authority of India (SAIL)- has roped in UTI Bank to start off
own equipment for Tata Steel.
DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold
Incorporated, has secured a major contract for the supply of ATMs and
services to UTI Bank
HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m
Launches `Remittance Card' in association with Remit2India, a Web site
offering money-transfer services

2005
UTI Bank enters into a bancassurance partnership with Bajaj Allianz General
for selling general insurance products through its branch network

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

2006
UTI Bank unveils priority banking lounge

26

 UTI Bank launches operations of UBL Sales, its Sales Subsidiary -Inaugurates
its first office in Bengaluru

UTI Bank announces the launch of its Credit Card Business.

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

UTI Bank Business Gold Debit Card MasterCard Launched Designed for
business related spending by SMEs and self employed professionals

2007
AXIS Bank Ltd has informed that Fitch Ratings on December 14, 2007, has
upgraded the Bank's National Long-term rating to 'AAA(ind)' from 'AA+
(ind)'.

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

the Board at Directors of the Bank.

Company name has been changed from UTI Bank Ltd toAxis Bank Ltd.
2008
Axis Bank launches Platinum Credit Card, India's first EMV chip based card
Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the CoutralamMadurai road on April 16.

2009
Axis Bank today said its board has recommended the appointment of Shikha
Sharma, currently chief of ICICI group's life insurance business, as its next
managing director and CEO.

Axis Bank has set up a new branch at Perumbavoor. The bank has a network
of 832 branches along with 8 extension counters and 3622 ATMs across the
country.

Axis Bank opened the new branch at Irinjalakuda while it has a network of
892 branches, 8 extension counters and 3,806 ATMs across the country.

27

AXIS BANK- Mission and Values

Our Mission

Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

Core Values

Customer Satisfaction through

Providing quality service effectively and efficiently
"Smile, it enhances your face value" is a service quality stressed on
Periodic Customer Service Audits

Maximizations of Stakeholder value

Success through Teamwork, Integrity and People

The banks business is divided into four segments:

Retail, corporate, treasury and merchant banking.

Apart from this the bank is also into insurance, investment banking, mortgage
financing, credit cards, and depository services amongst others.

it is also registered on the following exchanges:

OTCEI
BSE
NSE
London stock exchange

28

The present shareholding pattern is as mentioned below:

(As on 30/06/2009)
Administrator

of

the

Specified

27.72%

Undertaking of the UTI

LIC

10.49%

GIIC and four PSU Insurance Companies

Non-Promoters Holding

5.50%
42.32%

Others

13.97%

GROWTH PROSPECT OF AXIS BANK

Over the last five years, the CAGR for loan growth for the banking industry
has been 25-26 per cent; for Axis Bank it has been above 40 per cent.

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

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

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

For the banking industry as a whole, the loan book is expected to grow at 18
per cent in FY10 and 16 per cent in FY11.

Thus, Axis Banks fast pace of growth is expected to sustain over the next couple of
years.

29

SWOT ANALYSIS OF AXIS BANK

STRENGHTS:
1) Online Services: AXIS Bank provides online services of all its banking facilities.
It also provides D-Mart account facilities on-line, so a person can access his account
from anywhere he is.
[D-Mart is a dematerialized account opened by a salaried person for purchase & sale
of shares of different companies.]
2) Advanced Infrastructure: Branches of AXIS Bank are well equipped with
advanced technology to provide the customers with taster banking services. All the
computerized machines are located in suitable manner & are very useful to the
customers & staff of the bank.
3) Friendly Staff: The staff of AXIS Bank in all branches is very friendly & help the
customers in all cases. They provide faster services along with bonding & personal
relationship with the customers.
4) 12 hrs. Banking services: Compared to other bank AXIS bank provides long hrs.
of services i.e. 8-8 services to the customers. This service is one of its kind & is very
helpful for the customers who are in urgent need of money.
5) Other Facilities to the Customers & Employees: AXIS Bank also provides other
facilities like drinking water facilities, proper sitting arrangements to the customers.
And there are also proper Ventilation & sanitary facilities for the employees of the
bank.

30

6) Late night ATM services: AXIS bank provides late night ATM services to the
customers. The ATM centers of AXIS bank works even after 11:00pm. at night in
certain branches.

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

for the

services provided by them when compared to other bank & that is why it is only in
the reach of higher class of society.
2) Less Credit Period: AXIS bank provides credit facilities but only upto

limited

period. Even when the credit period is not over it sends reminder letters to the
customers which may annoy them.

OPPORTUNITIES:
1) Bank Insurance services: AXIS bank also provide insurance services. That
means the bank can have a tie-up with a insurance company. The bank will advertise
& promote the different policies introduced by the insurance company & convince
their customers to buy insurance policies.
2) Increase in percentage of Returns on increase: AXIS bank also provide higher
returns on deposits in comparison of the present situation. This will also upto large
extent help the bank earn profits & popularity.
3) Recruit professionally guided students: Bank & Insurance is a special non-aid
course where the students specialize in the functioning & services of the bank & also
are knowledge about various tax policies. The bank can recruit these students through
tie-ups with colleges. Such students will surely prove as an asset to the bank.

31

4) Associate with social cause: The bank can also associate itself with social causes
like providing relief aid patients, funding towards natural calamities. But this falls in
the 4th quadrant so the bank should neglect it.

THREATS:
1) Competition: AXIS Bank is facing tight competition locally as well as
internationally. Bank like ICICI, CITI Bank, HSBC, ABM, Standered Chartered,
HDFC also provide equivalent facilities like AXIS do and also AXIS do not have
consistency in its international operation.
2) Net Services: AXIS Bank provides all kind of services on-line. There can be easy
access to the e-mail ids of the customers through wrong people. The confidential
information of the customers can be leaked easily through the e-mail ids.
3) Decentralized Management: Each branch manager is given the authority of
taking decisions in their respective branches. The decisions made by different
managers are diverse and any one wrong decision can laid to heavy losses to the bank.
4) No Proper Facilities To Uneducated customers: AXIS Bank provides all services
through electronic computerized machines. This creates problems to the less educated
people. But this threat falls in the 4th quadrant so its negligible. The company can
avoid this threat.

32

AXIS BANK FINANCIAL POSITION

Rs in Crore
Particulars
Deposits
Advances
Share Capital
Net worth
Book Value
Interest earned
Interest

Mar 07
58,785.60
36,876.48
281.63
3,402.21
120.80
4,560.40

2,993.32
expenditure
Net profit
659.03
Net NPAs
0.61%
Total Assets
73,257.21
Return
on
1.10%
Assets

Mar 08
87,626.22
59,661.14
357.71
8,770.69
245.19
7,005.32

Mar 09
117,374.11
81,556.77
359.01
10,214.80
284.53
10,835.49

4,419.96

7,149.27

1,071.03
0.36%
109,577.84

1,815.36
0.35%
147,722.06

1.24%

1.44%

Source: www.axisbank.com

33

GROWTH DEMAND DEPOSITS

Source: www.axisbank.com

CARDS BUSINESS
Cards fee income (FY09 FY08)

Issuance:

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

3rd largest debit card base in the country

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

34

1st Indian bank to launch remittance card & meal card

Source: www.axisbank.com
COMPOSITION OF RETAIL ASSETS
Product wise composition of retail assets portfolio (March, 09)

Source: www.axisbank.com
35

REVENUE BREAK UP OF AXIS BANK

Segment Revenue

Mar 09

Treasury
20,290.71
Corporate /wholesale7280.14
banking
Retail banking
6675.51
Other
business

banking(5.40)

Source: www.axisbank.com

NETWORK
Increasing Reach

36

Source: www.axisbank.com

NEW INITIATIVES BY AXIS BANK:

Remittance Card:

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

Available as a delivery mode for remittances made through the Web Portal
www.Remit2India.com.

Based on the remitters request, a personalized Remittance Card is prepared

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

VISA Money Transfer Service:

37

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

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

The senders account would be debited instantaneously with the transferred

amount, but the funds will reach the beneficiarys VISA Card within one or
two days.

The service has been enabled through all Axis banks ATMs and i-Connect
(Internet Banking)

EMV standard based Platinum Credit Card:

Card has an embedded chip, which stores cardholders information in an

encrypted format, thereby providing the highest level of security to the
cardholder against possible misuse.

Offers clear authentication of debit and credit payments combined with easy
fraud detection.

The chip cannot be duplicated, ruling out counterfeiting and skimming. This
makes your card safer and secure than any other card in India.

TYPES OF SAVING ACCOUNT AT AXIS BANK

1. Zero Balance Savings Account
Features:

No Average Quarterly Balance requirement

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

lakhs* (charges for the primary holder are waived)

Free mobile banking facility

38

Access through more than 1000 branches and over 4055 ATMs (as on 31st
March 2010)

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

24x7 Tele banking & Internet banking

Free quarterly statements

Free monthly e-statement

Documentation:

An Account Opening Form duly filled

One latest passport size photograph

Initial cheque of Rs 5,500

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

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

Any two of the following documents:

Latest paid Post-paid mobile bill with a minimum bill payment of Rs. 1000/-.
The amount paid should not include any late payment fee or outstanding
payments of previous months

Minimum Net Salary of Rs. 20,000/- or other bank account statement (non
Axis Bank) with minimum average balance of Rs 25,000/-. The latest
statement should be for a minimum period of three months.

Customer Loyalty Card (any of the renowned retail chains like Pantaloons,
Life Style, Shoppers Stop, Globus, Westside only). Local retail chains (like
Spencer, Big Bazar and any other) offering a loyalty card would not be
permissible for the time being.

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

needs to be accepted as proof of the same.

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

proof of owning a four-wheeler

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

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

39

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

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

2. Krishi Savings Account

Features:
Average Balance Requirement:

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

average balance of Rs 1000 only.

International Master Debit Card:

The Krishi Savings Account entitles you to an International Master Debit Card
with which you can access your account anytime through the Axis Bank ATM
network free of cost. This card comes with:

A cash withdrawal limit of Rs 25,000 per day

Free Accident Insurance cover of Rs 2 lacs

Anywhere Banking:

Being a Krishi account holder, you are entitled to access our wide network of
more than 700 branches and 3000 ATMs across 440 cities. You can now easily
carry out your transactions through any of the branches or ATMs.

At Par Cheque Book :

Your Krishi Savings Account comes with the At-Par Cheque facility. This
facility enables you to encash the cheques as local instruments at any of the
440 centres where the Bank has its presence, at no extra cost. Moreover, you
can also issue cheques at other centers upto the limit of Rs 50,000.

Free monthly e-statement

Documentation:

For the purpose of address proof and identity proof obtaining a single
document with photo identity and address (like election identity card) will
suffice, provided the address mentioned in the document is the same as the
present place of residence of the customer.
40

In cases where documents like Election Commission identity card is not

available, a letter from a recognized public authority or a government servant
like Talati/Patwari or similar revenue official may be obtained duly complying
with the following:

The document should contain the name, photograph, residential address and
the approximate period of residence by the customer at the given address.

The letter should not be more than one month old and the public official /
government servant should affix his rubber stamp and signature on the letter.

The letter should have a provision for further certification by the public
official / government servant wherever the address of the customer is being
changed.

Krishi Savings Account should be opened only for farmers. Hence the
customers are required to submit a document supporting his/her occupation.
This document can be any of the following:

Certificate from the Village Administrative Officer or Patwari

Land document

3. Easy Access Savings Account

Features:

At Par Cheque Book as an Easy Access Savings Account Holder, you will
receive the "At-par" cheque book. You can encash these cheques as local
cheques at any of the 257 centers where the bank has a presence, at no extra
cost. Drafts are now history.

ATM Network Easy Access Savings Account also entitles you to an

International Debit Card with which you can access your account anytime at
all our ATMs - both, Visa enabled and our partner banks - across the country.
Withdrawals and deposits (money as well as cheques) are possible with your
Debit Card. And unlike most other ATMs, an Axis Bank ATM allows you to
withdraw upto Rs 40,000 per day.

Anywhere Banking You can transact through any of our branch offices all of
which are interconnected for your banking convenience. Transactions like cash

41

deposits, cash withdrawal, transfers and clearing deposits can all be carried out
wherever you happen to be.

The Tele banking service provides you instant access to your savings account.
It offers you a wide range of services over the phone such as Account
Information, Balance Inquiry, Transaction Details, Status of your Cheque
(available only during branch business hours) and even Statement of Account
on Fax

iConnect The idea of "your Bank on your desktop" is now a reality with
iConnect. You can lookup the status of your savings account, request your new
cheque book, undertake a range of financial transactions, avail financial
advisory services, get information on mutual funds and shop online by just
clicking the mouse.

Mobile Banking Mobile Banking enables you to bank with us through your
mobile phone irrespective of where you are. Avail facilities like balance
inquiry, debit or credit alerts, last three transaction details and cheque status.

Account Statement Quarterly statements are delivered free of cost.

Quarterly Interest Every quarter, interest would be credited at the rate of 3.5%
per annum in your account

42

4. Women saving account:

Features:

Jewellery Insurance on Debit Card

Zero Balance Minor Account

Round-the-Clock access through ATMs:

There could be an instance when at 3 am you could require cash. With our
round-the-clock access you can withdraw cash up to Rs. 40,000 per day,
deposit cash/cheques, transfer funds, print a mini statement and pay
insurance premiums (LIC), all through our ATM channel which is one of
the largest ATM networks in the country.

Anywhere Banking:

Imagine being in an unknown city and still having complete access to all
your transaction needs. As a customer of the bank, you are in control and
not restricted to the branch. So even if you are travelling, you can access
your account easily from any of the 700 plus Axis Bank offices spread
over 400 cities across the country.

At-par cheque facility:

Your cheque will be treated as a local cheque within the vast Axis Bank
network of over 700 offices across 400 cities in India. Now no more
running around to get a Demand Draft issued.

Monthly Account Statement

Free monthly e-statement

Additional discounts on loans

iConnect:

The Complete online banking experience: Its the age of Wi-Fi. All your
banking needs should be on your fingertips, with our i-connect you can
check your account status, transfer funds, place online request for a new
cheque book and many more features without even having to visit an Axis
Bank branch.

Financial Advisory Services:

Our Financial Advisor will assist you with your financial planning and
help you to earn maximum returns on your savings.
43

Discount on Retail Purchases:

Just live the feeling of walking into a store and getting amazing discounts
not available to others. As you are a valued customer for us, we shall
endeavour to provide you with discounts at various outlets, periodically.
All you have to do is use your new Smart Privilege Debit Card and avail of
discounts at these outlets. Details of such tie-ups will be sent to you on a
regular basis.

Eligibility Criteria:

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

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

Average quarterly balance of Rs 2,500 for rural locations

5. Pension Savings Account

Features:

Zero Balance Savings Account

Anywhere Banking - Available at all centers

Free Multi-city At Par Cheque Books

Free monthly e-statement

Free International Debit-cum-ATM Card for the primary & Joint holder. The
account can be opened jointly only with spouse.

Personal Accident Insurance Cover of Rs. 2 lakhs [To keep your personal
accident insurance cover activated, you should have made a purchase
transaction in 365 days prior to the day of the incident & should have
maintained an average quarterly balance of Rs 5,000 (urban & metropolitan
branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the
two quarters before the date of the incident.]*

Free Payorder & Demand Draft

Internet Banking - Available through "iConnect"

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

44

Mobile Banking Facility

Demat Account - Account opening charges waived

Safe Deposit Lockers - Preferential allotment

Eligibility:

All employees of central government and civil ministries who are covered
under the Central Government Civil Pension Scheme operated by Central
Pension Accounting Office, Department of Expenditure and Ministry of
Finance.

All employees of Armed Force (Army, Navy & Air Force) under Ministry of
Defence who are covered under the Defence Pension Scheme operated by
Pension Sanctioning Authority/Defence Unit.

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

20 (including contract employees) and who have opted to be members of the
EPS 95 scheme.

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

45

COMPERATIVE ANALYSIS OF AIXS BANK SAVING A/C WITH

OTHER BANKS SAVING A/C
1) AXIS BANK V/S YES BANK

FEATURES
NO. OF PRODUCTS

AXIS BANK
YES BANK
six: zero balance saving a/c, Two: silver
krishi saving a/c,

account,

saving

gold

savings

Easyaccess, prime, womens account.

saving a/c, pension saving
a/c
Average

quarterly

account Nil for zero balance, 1000 Rs.10,000

balance

for krishi saving a/c, Rs 5000 savings

for

silver

account

and

in metro city RS 2500 in Rs.100000 for gold savings

semi urban city and Rs 1000 account.
in rural for easyaccess a/c,
for prime a/c same as for
easyaccess

a/c,

nil

for

woman saving a/c, nil for

pension a/c
Fee for non maintenance of Annual
a/c maintenance Rs. 500 for silver savings
quarterly average balance

charges 500 per annum for account and Rs.600 for

zero balance a/c, 750 for all gold saving account.

Statement of account

saving a/c holders

Quarterly free, and monthly Quarterly free for both.
e-statement free (if asked

ATM usage

for).
Unlimited free .

Unlimited free on all the

Regular debit card

95 for all saving a/c holders,

banks in India.
Rs.149 for silver savings
account,

free

savings account.

46

for

gold

Gold debit card

Rs.500 issuance fee

D.D.

Rs.50

for

amt

Rs.799 issuance fee

up

to Min Rs.50 then Rs.2.5 per

Rs.10,000;Rs.2.50 per 1000 1000 for savings account

for amt up to 50,000;Rs 2 per and Rs.1.5 per 1000 for
1000 for amt greater than gold savings account.
Pay order (P.O.)

50,000
Upto 50,000 is Rs 50
Above

Branch transaction

50,000

5 free for savings account

is

Rs and

10

free

for

gold

2.50/1000
savings account, per year
3 transactions per quarter nil 5 transactions for savings
for zero balance a/c, beyond account and 10 transactions
3 transaction Rs 100 per for gold savings account
transaction for zero balance are free per year
a/c, cheque book charges Rs
5 per cheque leaf for zero
balance a/c, no such charges

Personalized cheque books

for other account holders

Free upto 20 leaves per Free
quarter , if above 1 cheque

Balance enquiry

book per quarter Rs 50

Free

47

Free

INTERPRETATION:
Axis bank provides various kinds of saving bank account as compare to yes
bank which is showing that axis bank has segmented its market more
strategically.
Terms and condition are quite simple and reasonable to all its customers in
case of axis bank then to yes bank.
Axis bank is providing various kinds of saving bank account facilities to its
customers. so, its services rates are quite higher in comparison to yes bank.
Axis bank charge Rs 95 for issuing a regular debit card for its all saving
account holders which is almost half of the issuing charges of Yes bank to its
saving bank account holders.
DD & PO commission rates of axis bank are bit higher as to Yes bank.

48

2) AIXS BANK V/S ICICI BANK

FEATURES
NO. OF PRODUCTS

AXIS BANK
ICICI BANK
six: zero balance saving a/c, Three: category A, B and
krishi saving a/c,

C.

Easyaccess, prime, womens

saving a/c, pension saving
a/c
Average

quarterly

account Nil for zero balance, 1000 Rs.5000 for A, Rs.2000 for

balance

for krishi saving a/c, Rs 5000 B, and Rs.1000 for C.

in metro city RS 2500 in
semi urban city and Rs 1000
in rural for easyaccess a/c,
for prime a/c same as for
easyaccess

a/c,

nil

for

woman saving a/c, nil for

pension a/c
Fee for non maintenance of Annual
a/c maintenance Rs.750 per qtr for A & B
quarterly average balance

charges 500 per annum for and Rs.100 per qtr for C.
zero balance a/c, 750 for all

Statement of account

saving a/c holders

Quarterly free, and monthly Free physical statement per
e-statement free (if asked qtr otherwise Rs.200 per
for).

month for physical form.

Free

ATM usage

Unlimited free .

e-statement

month.
Rs.20/month

for

per
cash

withdrawal & and Rs.60

for same with non partner
Regular debit card

95 for all saving a/c holders,

banks.
Rs.99 per annum for all the
products.

49

D.D.

Rs.50

for

amt

up

to Rs.2 per thousand rupees

Rs.10,000;Rs.2.50 per 1000 or part thereof, subject to a

for amt up to 50,000;Rs 2 per minimum of Rs.50
1000 for amt greater than
Branch transaction

50,000
3 transactions per quarter nil Rs.2.50/
for zero balance a/c, beyond thousand,
3 transaction Rs 100 per min

of

subject

to

Rs.30

transaction for zero balance and max of Rs.10000

a/c, cheque book charges Rs
5 per cheque leaf for zero
balance a/c, no such charges
Personalized cheque books

for other account holders

Free upto 20 leaves per 2 payable at par cheque
quarter , if above 1 cheque books of 25 leaves each
book per quarter Rs 50

free in a quarter, Rs.50/for additional cheque book

Balance enquiry

of 25 leaves.
Rs.10 with partner banks &

Free

Rs.25 with non partner

banks.

50

INTERPRETATION:
ICICI bank saving bank account categorization is quite simple to understand
from a view point of costumer as to axis bank.
Quarterly saving bank account charges are quite similar in both the banks,
only difference of account holder categorization is the point of difference here.
For category C account holders, ICICI BANK is charging very nominal
maintenance fee from its customers, but in AXIS bank no such thing is done
for its customers.

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

ATM usage is unlimited free under axis bank, but Rs. 20 for normal customers
and Rs. 60 for non bank account holders is charged by ICICI bank.

51

3) AXIS BANK V/S HDFC BANK

FEATURES
NO. OF PRODUCTS

AXIS BANK
HDFC BANK
six: zero balance saving a/c, Three products:
krishi saving a/c,

regular,

savings plus & savings max;

Easyaccess, prime, womens each of which are further

saving a/c, pension saving divided into option 1 and 2.(I
a/c

have

taken

comparative

product that is option 1 of

regular savings acc.)
Average quarterly account Nil for zero balance, 1000 Rs.5000
balance

for krishi saving a/c, Rs 5000

in metro city RS 2500 in
semi urban city and Rs 1000
in rural for easyaccess a/c,
for prime a/c same as for
easyaccess

a/c,

nil

for

woman saving a/c, nil for

pension a/c
Fee for non maintenance of Annual
a/c maintenance Rs.750 per qtr.
quarterly average balance

charges 500 per annum for

zero balance a/c, 750 for all

Statement of account

saving a/c holders

Quarterly free, and monthly Monthly statements to be
e-statement free (if asked Collected

ATM usage

from

branch.

for).

Quarterly statements sent by

Unlimited free .

post
First 4 withdrawals free of
cost from any cirrus network

Regular debit card

95 for all saving a/c holders,

D.D.

Rs.50

for

amt

up

ATM
Rs.100 plus taxes

to Rs.50 for amt up to 10000,

Rs.10,000;Rs.2.50 per 1000 Rs.75 for amt greater than

for amt up to 50,000;Rs 2 per 10000 and up to up 50000,
52

1000 for amt greater than Rs. 2.50 per 1000 or part

Pay order (P.O.)

50,000

thereof (Min Rs.150) for amt

Upto 50,000 is Rs 50,

greater than 50000

Same as above.

Above
Branch transaction

50,000

is

Rs

2.50/1000
3 transactions per quarter nil Free 3 free in the qtr & Rs.
for zero balance a/c, beyond 60 per additional transaction
3 transaction Rs 100 per on non-maintenance of Min
transaction for zero balance balance

(cash

a/c, cheque book charges Rs deposit/withdrawal)

5 per cheque leaf for zero
balance a/c, no such charges
Personalized cheque books

for other account holders

Free upto 20 leaves per Free, Rs.5 per leaf on non
quarter

maintenance of Min balance

if above 1 cheque book per

Balance enquiry

quarter Rs 50
Free

Free

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

53

 AQB is same for various saving bank account holders under HDFC bank, and
different AQB for different saving account holders is required under AXIS
bank.

Non maintenance account charges are also kept same under HDFC bank
account, and different charges for different account holders are set under AXIS
bank.

AXIS bank is providing unlimited free ATM usage, and only first four
withdrawals are free under HDFC bank.
DD and PO charges are higher under HDFC bank then AXIS bank.
HDFC bank charges Rs.60 extra after first 3 bank transactions made by the
customers, charges are differently set as per to different account holders by
AXIS bank.

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

54

Focus on CASA deposits

450
400

Savings deposits (Rs. bn)

350
300
250
200
150
100
50
2003 2 004 2005 2006

2007

2 008 2009

Years
2003

2004

2005

2006

2007

2008

2009

CASA RATIO

15.5%

23%

24.5%

22.7%

21.8%

26.1%

28.7%

BRANCHES

446

469

562

614

755

1262

1419

Source: www.icici.com

CURRENT ACCOUNT & SAVING ACCOUNT GROWTH OF

HDFC BANK

%
60.0
55.0
50.0
45.0
40.0
3QFY08 4QFY08 1QFY09 2QFY09 3QFY09 4QFY09 1QFY10 2QFY10 3QFY10 4QFY10

Source: www.hdfc.com

55

CURRENT ACCOUNT & SAVING ACCOUNT GROWTH OF AXIS

BANK

Source: www.axisbank.com

56

BASIC FEATURES OF AXIS BANK CURRENT A/C

Overview
At Axis Bank, we are committed to creating an easy and comfortable banking
environment for your business. We realize that different businesses need different
solutions according to their size, nature and scale of operations. We also understand
what you need to add impetus to your business. Our range of Current Accounts
comes geared to answer all kinds of business requirements. Each of our Current
Accounts has been customized to ensure efficient management, quick transfers and
instant availability of your funds across our network.
Axis Bank brings different kinds of current accounts for different types of businesses.
Select the one that best suits your business requirements.
Axis Bank's Current Accounts come equipped with the following features to give
maximum value for your money.
Features:
Anywhere Banking:

Our Current Account allows you to bank from all our branches and extension
counters. You can deposit cash, withdraw cash, deposit cheques, and issue 'atpar' cheques at any of our branches. So bank at your own convenience.

Instant Fund Transfer:

You can transfer funds instantly between any of our branches. Funds transfers
can be effected online, right from your desktop, through our internet banking
services.

Internet Banking:

Axis Bank presents Corporate iConnect - a unique NetBanking platform for its
current account customers. Available with multiple user IDs, depending on
your needs. Access your account at any time form anywhere. You can transfer
funds to your own accounts or to third party accounts within Axis Bank &
Inter Bank covering over 25,000 branches of various banks.

Corporate

iConnect also permits transaction initiation by one user and approval by

57

another. You can also execute bulk payments like salary and commission
across Axis Bank network, right from your desktop.
At-Par (Multicity) Cheque book:

Enjoy the benefits of multicity cheque book with Axis Bank's current
accounts. You can issue cheques payable at par at all our branches across the
country. Your cheques will be treated as local cheques at more than 375
locations as on January 31, 2008.

ATM or Debit Card:

With every Current Account (for proprietary and partnership concerns), you
can avail upto 2 ATM cum Debit cards, which allow you round the clock
access to your account from any of all our ATMs all over the country. You can
withdraw upto Rs 40,000 a day.

Free Monthly Account Statement

By courier and daily on email.

Mobile Banking:

Mobile Banking will enable you to bank with us through your mobile phone
irrespective of where you are.

Phone Banking:

Phone banking or Tele-banking service can help you access your account from
your telephone anytime you want.

58

TYPES OF CURRENT A/C AT AXIS BANK

1. Normal current a/c:
Features:
At-Par Cheque Facility:

Issue cheques payable at par at any of our branches / outlets, presently over
800 across the country.

Inter Branch Cash Deposit Facility:

Deposit cash upto Rs. 50,000 per day at a remote branch for instant credit into
your account.

Home Branch Cash Withdrawal

Free upto 50 transactions for unlimited amount per month.

Local Cheque Deposit Facility

Deposit cheques at any Axis Bank branch and get the credit into your account.

Demand Drafts:

Avail Demand Drafts at very nominal charges drawn on any of our branches
and a wide network of correspondent bank locations.

Outstation Cheque Collection:

Avail outstation cheques collection through all our branches.

Other ancillary services:

Mobile Alerts

ATM cum International Debit Card

59

2. Business advantage a/c:

Features:
At-Par Cheque and Local Cheque Deposit Facility:

Issue cheques payable at par at any of our branches / outlets, presently over
800 across the country.

This facility is free for 10 transactions and upto Rs 15 lacs per month and at
nominal charges beyond free limit.

Pay Orders:

Free 3 Pay Orders per day from your branch.

Inter Branch Cash Deposit Facility:

Deposit cash upto Rs. 75,000 per day at a remote branch for instant credit into
your account.

Intercity Cash Withdrawal Facility:

Cash withdrawal upto Rs 2,00,000 per day at a remote branch.

Home Branch Cash Withdrawal:

Free 75 transactions per month for unlimited amount.

Demand Drafts:

Free 10 Demand Drafts upto Rs 3 lacs per month on Axis Bank locations.

Free Fund Transfer Facility:

Upto 12 transactions per month across Axis Bank network almost

instantaneously.

Outstation Cheque Collection:

Avail outstation cheques collection through all our branches.

Other ancillary services:

Mobile Alerts

ATM cum International Debit Card

60

Phone Banking

Corporate iConnect

3. Club 50 current a/c:

Features:

Enhanced Transactional Benefits

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

Maintain the required half yearly average balance and enjoy free non - home
branch cash deposit upto Rs. 2 lacs per day

As high as 1500 transactions free per month

1200 Anywhere Banking transactions free per month

Customized Cheque Stationery with Hologram

Customized Cheque stationery with Hologram for additional safeguard of

banking transactions.

Lifestyle Benefits / Privileges:

Enjoy lifestyle benefits / privileges like free subscription to magazines and

books, access to Business center at all our Priority Banking branches at select
locations, Priority Savings Bank accounts for all authorized signatories
(Directors, Partners or Proprietors), etc.

Free Doorstep Banking:

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

delivered at your office free of cost.

Free RTGS / NEFT Facility:

Maintain your required half yearly average balance and enjoy the benefits of
free RTGS / NEFT facility all through.

Free Cheque Books:

Avail the facility of free cheque books every month.

Free DD's on Non Axis Bank locations:

Avail the facility of free demand drafts on Non Axis Bank locations upto a
certain limit.

Free International Business Gold Debit Card / Gold Plus Credit Card:
61

Get free International Business Gold Debit Card / Gold Plus Credit Card to
enjoy a host of benefits.

COMPERATIVE ANALYSIS OF AXIS BANK CURRENT A/C

WITH OTHER BANKS CURRENT A/C
I) AXIS BANK V/S HDFC BANK

FEATURES
Number of products

AXIS
Three: normal,

HDFC
business Four: plus, trade, premium,

Average quarterly balance

advantage, club 50
and regular
:Rs. 10000 for metro/ urban Rs.100000
branches &

for

plus,

Rs.40000 for trade, Rs.25000

Rs. 5000 for semi urban/rural for premium, & Rs.10000 for
branches for normal

regular

:Rs 25000 for metro/

Urban & Rs 12500 for semi
urban/rural

for

business

advantage.
: Rs 50lacs for metro/urban
&

Rs

25lacs

for

semi

urban/rural for club 50.

Fee for non maintenance of ;Rs. 400 for both metro & Rs.600 for plus, Rs.1200 for
AQB

rural in case of normal.

trade, Rs.900 for premium

:Rs 450 for both metro& and Rs.750 for regular.

rural for business advantage

:club 50: Rs 5000 per 6

months if balance is b/w
62

10lacs to 20lacs & Rs 10000

per 6 months if balance is
less

than

10lacs

for

metro/urban
: Rs 5000 per 6 month if
balance is b/w 5lacs to
10lacs

&

Rs

10000

is

balance is less than 5lacs for

Statement of account

rural.
Free (physical or e-mail)

Issue of cheque book

Normal: 1st 25 cheque leaves PAP

Free once in a month

cheque

books;

300

are free than upto 50 per leaves free pm for plus, 200
month Rs 2/leaf & b/w 51 to leaves free pm for trade, 100
250 Rs 5/leaf & above 251 leaves free pm for premium
Rs 8/leaf

and Rs.2 per leaf for regular

Business advantage: same as

for normal
Club 50: free
ATM usage

Free usage of axis bank, Free usage of HDFC bank

Rs.1.50 on withdrawal from ATMs.

other banks
Issue of international debit Free for 1st year, Rs.150 there Free for first year
card
after, for club 50 free
Transfer from one account Free for all
to other (intercity)
D.D/P.O.

Free for all

Normal: ad valorem charges Free up to 50 DDs per

Rs 1.00/1000 & transaction month.
charges Rs 50 per P.O

Above

50

transactions, charges @ Rs.

: for D.D ad valorem charges 25/- per DD for plus, Free up

Rs 1.50/1000 &

to 30 DDs per month. Above

transaction charges Rs 50

30 transactions, charges @

Business abvantage:

Rs. 25/- per DD for trade;

ad valorem charges free & DD Amount Up to Rs.

63

transaction charges 3 per day 50,000 charges Rs. 40/- per

free above that Rs 50 per PO

DD, Above Rs. 50,000 and

: for DD ad valorem charges up to Rs. 100,000- Rs. 25/-,

free upto 3lacs above that Rs Above Rs. 100,000- Free for
1/1000 &

premium and DD Amount

Transaction charges free upto Up to Rs.50,000 charges

10 DD per month above that Rs.40/-

Balance enquiry

per

DD,
and

Above

Rs 50 per DD.

Rs.50,000

up

Club 50: DD & PO free.

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

Information not available

Rs.100,000- Free for regular.

Rs.25 for all

INTERPRETATION:
AQB is broadly categorized for rural and urban areas under AXIS bank,
but no such rural and urban classification is made by HDFC bank for its
current account customers.
As per to different heads categorization charges are charged by both the
banks from its current account holders under the fee charged by them for
maintaining their AQB balances.
ATM usage is unlimited free under HDFC bank for its holders of account,
but Rs. 1.50 is charged by in case of AXIS bank account transaction from
other ATMS.
Different DD and PO rates are applied by both the banks according to the
kinds of account facilities they are providing to their ultimate customers.

2) AXIS BANK V/S YES BANK

64

to

FEATURES
Number of products

AXIS BANK
YES BANK
Three: normal, business Four: CA 30, CA 70, CA 200

Average quarterly balance

advantage, club 50
and CA 500.
:Rs. 10000 for metro/ urban Rs.30000,
branches &

Rs.70000,

Rs.200000 and Rs.500000

Rs. 5000 for semi urban/rural respectively for the above

branches for normal

products.

:Rs 25000 for metro/

Urban & Rs 12500 for semi
urban/rural

for

business

advantage.
: Rs 50lacs for metro/urban
&

Rs

25lacs

for

semi

urban/rural for club 50.

Fee for non maintenance of ;Rs. 400 for both metro & Rs.1500, Rs.3000, Rs.4500,
AQB

rural in case of normal.

and Rs.6000 respectively for

:Rs 450 for both metro& the above products

rural for business advantage
:Rs 5000 per 6 months if
balance is b/w 10lacs to
20lacs & Rs 10000 per 6
months if balance is less than
10lacs for metro/urban
: Rs 5000 per month if
balance is b/w 5lacs to
10lacs
Statement of account

&

Rs

10000

balance is less than 5lacs.

Free (physical or e-mail)

65

is
Free once in a month.

Issue of cheque book

Normal: 1st 25 cheque leaves unlimited free for all.

are free than upto 50 per
month Rs 2/leaf & b/w 51 to
250 Rs 5/leaf & above 251
Rs 8/leaf
Business advantage: same as
for normal
Club 50: free

ATM usage

Free usage of axis bank, Information not available.

Rs.1.50 on withdrawal from

other banks
Issue of international debit Free for 1st year, Rs.150 there Information not available.
card
after, for club 50 free
Transfer from one account Free for all

Rs.25

to other (intercity)

subsequent 0.50 per Rs.1000

lakhs

per

month

for CA 25, Rs.50 lakhs per

month subsequent 0.50 per
Rs.1000 for CA 75, and
D.D/P.O.

unlimited for the rest.

Normal: ad valorem charges DD:2 Free Per Month
Rs 1.00/1000 & transaction Min-Rs.100
charges Rs 50 per P.O

Max-Rs.5000

for CA 25, 5 Free Per Month

: for D.D ad valorem charges subsequent

Rs.1.75

per

Rs 1.50/1000 &

rs.1000 or part there of Min-

transaction charges Rs 50

Rs.100 Max-Rs.5000 for CA

Business abvantage:

75,

Free

ad valorem charges free & subsequent

Per
Rs.1.50

Month
per

transaction charges 3 per day rs.1000 or part there of

free above that Rs 50 per PO

Min- Rs.100 Max-Rs.5000

: for DD ad valorem charges for CA 200 and free for CA

free upto 3lacs above that Rs 500.
1/1000 &

PO:

Free

Transaction charges free upto Subsequent

Per

Month

0.75

per

10 DD per month above that Rs.1000. Min- Rs.75 Max66

Rs 50 per DD.

Rs.5000 for CA 25, 5 Free

Club 50: DD & PO free.

Per Month. Subsequent 0.75

per Rs.1000. Min- Rs.75
Max- Rs.5000 for CA 75 and

Balance enquiry

Information not available

free for the rest.

Information not available.

FIXED DEPOSITS AT AXIS BANK

Axis Bank offers you simple reinvestment Fixed Deposits (at very competitive
interest rates), which can be opened with a minimum investment of Rs 10,000. You

67

can make additions to your deposit in multiples of Rs 1,000 each. The tenure of your
deposit must be a minimum of 6 months.
Deposit Schemes:
Reinvestment Deposits:
In a reinvestment deposit, the interest accrued to your deposit at the end of each
quarter is invested along with the principal. The tenure of your deposit must be a
minimum of 6 months. At the end of the quarter, the interest and the principal are both
rolled over, and the interest is calculated on the total sum. Income tax is deducted at
source.
Automatic Rollover:
As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on
maturity (for both the principal and interest). You can select this option in the Account
Opening Document (AOD). The options available are:
Rollover only Principal:
Only the principal amount will be rolled over. The interest will be either credited to
your designated account or paid out.
Rollover Principal and Interest accrued in Reinvestment Deposit:
This will rollover both the deposit and the interest accrued for the same tenure at the
interest rate applicable on the maturity date.
On or before the maturity date, you can make the following changes in the rollover
instructions of the deposit:
Change in tenure
Change in maturity instructions
Change in payment instructions
Change in principal (only reduced amount)
The following documents are required when applying for a Fixed Deposit
An Individual, Hindu Undivided Family, A valid passport or a valid driving license
Sole Proprietorship Concern

An introduction by any other bank or an

68

introduction by an Axis Bank Savings

Account holder for the last six months
A photograph
Copy of the Trust Deed

Trusts

Copy of the registration certificate

Copy of the Resolution of The Trustees
Authorizing the members concerned to
open and operate the account
Photographs of the members operating
the account
Bye-laws of the Association

Associations / Clubs

Copy of the Resolution by the board

authorizing the members concerned to
open and operate the account
Photographs of the members operating
the account
Partnership Deed

Partnership Firm

Letter

from

partners

approving

the

persons concerned to open and operate

the account
Photographs of the persons operating the
account

TYPES OF FIXED DEPOSITS AT AXIS BANK

1. Recurring Deposits:

69

Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up
your savings through regular monthly deposits of fixed sum over a fixed period of
time.
Features:

Recurring deposits are accepted in equal monthly installments of minimum

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

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

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

office of the Bank to another branch.

The amount of installment once fixed, cannot be changed.

Installment for any calendar month is to be paid on or before the last working
day of the month. Where there is delay in payment of installment, one can
regularize the account by paying the defaulted installment together with a
penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a
month will be treated as full month for the purpose of calculating the penalty.

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

amount of monthly installments and the period of deposit.

2. Encash 24:
The Encash 24 (Flexi Deposit) gives you the liquidity of a Savings Account coupled
with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit
linked to your Savings Account providing you the following unique facilities:
Maximum Returns:
Your money is no longer idle. As soon as the balance in your Savings Account crosses
over Rs 25,000, the excess, in multiples of Rs 10,000 will be transferred automatically
to a higher interest earning Fixed Deposit Account. The maturity of fixed or term
deposits formed as a result of transfer of money from the Savings Bank account will
be for a maximum period of 181 days and the interest will be calculated on simple
interest rate basis.

70

Maximum Liquidity:
The money parked in Fixed Deposits as a result of the above mentioned sweep out
from your Savings account can be easily accessed by issuing a cheque, withdrawing
through ATM etc. This amount is automatically reverse swept from the most recently
formed Fixed Deposit in units of Rs 5,000 to the Savings account whenever the
balance in your Savings account falls below Rs 25,000. The amount broken form your
Fixed Deposit will earn interest rates at the applicable rate for the period that the
deposit was held with the Bank. The remaining amount of Fixed Deposit will continue
to earn the contracted rate of interest.
Auto Renewal:
On maturity of your linked Fixed Deposit, the Bank will automatically renew it for a
maximum period of 181 days.
3. Tax Saver Fixed Deposit:
In the Finance Bill of 2006, the government had announced Tax benefits to Bank
Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide
Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.
The salient points of the scheme notification are; (a) Fixed tenure without premature
withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100
minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt
that shall be the basis of claiming tax benefit.
Benefits of tax break u/s 80C of IT Act Benefit Illustrator Example:
Assume that a customer invests Rs 100,000 in this scheme @ 8% p.a. in fixed deposit
for five years. He will get a benefit of Rs 30,600 at 30.6 % on the eligible investment
of INR 100,000 assuming that he is in Rs 2,50000 lac to Rs 10,0000 lac tax bracket,
thus his effective investment would be Rs 69,400. He would earn Rs 8000 (08 percent
on 1 lac) as interest per annum, which would translate to a return of 11.5 percent on
the effective investment of Rs 69,400.

INTERST RATE OF FD AT AXIS BANK

71

Interest rate normal

For senior citizen

(As on 31st mar, 2010)

On
PERIOD
DEPOSITS

on Deposits of Rs on Deposits of on

Deposits on Deposits

Deposits 15 lakhs < Rs 50 Rs 50 lakhs < below Rs. 50 of

Below
Rs

Lakhs

Rs 1 Crore

lakhs

15

Crore

7 days to 14 days

1.00

1.00

15 Days to 29 Days

2.50

2.50

2.50

2.50

2.50

30 days to 45 days

3.00

3.00

3.00

3.00

3.00

46 days to 60 days

3.50

3.50

3.50

3.50

3.50

61 days to less than 3 4.00

4.00

4.00

4.00

4.00

months
3 months to less than 4.50

4.50

4.50

4.50

4.50

4 months
4 months to less than 5.00

5.00

5.00

5.00

5.00

6 months
6 months to less than 6.00

6.00

6.00

6.75

6.75

9 months
9 months to less than 6.00

6.00

6.00

6.75

6.75

1 year
1 year to less than 14 6.50

6.50

6.50

7.25

7.25

months
14 months to less than 6.60

6.60

6.60

7.35

7.35

2 Years
2 years to less than 30 7.00

7.00

7.00

7.75

7.75

months
30 months to less than 7.00

7.00

7.00

7.75

7.75

7. 7.00

7.00

7.75

7.75

7. 7.00

7.00

7.75

7.75

00
5 years upto 10 years
00

72

50

lakhs < Rs 5

lakhs
-

3 years
3 years to less than 5

Rs

INTEREST RATES ON TAX SAVER DEPOSITS

5 years only (Amount Capped at Rs. 1 lac INTEREST RATES(%) (p.a.)
per customer per Financial Year)
Regular Depositor (Individual & HUF)

7.25

Senior Citizen (Individual)

8.00

73

FD INTEREST RATE AT ICICI BANK

Normal interest rate

Interest rate for senior citizen

(As on 31st Mar, 2010)

For

Deposits

Rs.15
Term Deposits
(All Maturities)

7-14 days
15-29 days
30-45 days
46-60 days
61-90 days
91 days to 120
days
121 days to 180
days
181 days to 210
days
211 days to 269
days
270 days to less
than 1 year
1 year to 389
days
390 days
391 days to 589
days

For

Lakhs

Rs.15

Deposits
Lakhs

Less than Rs.15 and above but Less than Rs.15 and above but
Lakhs

(w.e.f less

April 08, 2010)

than Lakhs

Rs.1.Crore

(w.e.f less

April 08, 2010)

than

Rs.1.Crore

(w.e.f April 08,

(w.e.f April 08,

2010)

2010)

N.A

3.50

N.A

4.00

3.50

3.50

4.00

4.00

3.50

3.50

4.00

4.00

3.50

3.50

4.00

4.00

3.50

3.50

4.00

4.00

5.25

4.00

5.75

4.50

5.25

4.25

5.75

4.75

6.00

5.50

6.50

6.00

6.00

6.00

6.50

6.50

6.00

6.00

6.50

6.50

6.25

6.25

6.75

6.75

6.75

6.75

7.25

7.25

6.25

6.25

6.75

6.75

74

590 days
591 days to less
than 2 years
2 years to 989
days
990 days
991 days to less
than 3 years
3 years to less
than 5 years
5 years upto 10
years

6.75

6.75

7.25

7.25

6.25

6.25

6.75

6.75

7.00

7.00

7.50

7.50

7.25

7.25

7.75

7.75

7.00

7.00

7.50

7.50

7.50

7.50

8.00

8.00

7.75

7.75

8.25

8.25

AXIS BANK RATIO ANALYSIS

1. Capital Adequacy Ratio from March 2008 March 2010.

75

Interpretation:
In above analysis, it has been found that capital adequacy ratio is increasing year by
year in 2008 it was 11.57%, in 2009 it increased to 13.73% & in 2010 it slightly
decreased to 13.69%.
2. Net Profit Margin

Interpretation:
In above analysis, it has been found that net profit margin is increasing year by year in
2008 it was 12.01%, in 2009 it increased to 12.22% & in 2010 it increased
to13.31%.it show that Axis bank profit margin is increasing yr by yr which shows that
Axis bank have high margin of safety. Its means sales are increasing.
76

3. Operating Expense

Interpretation:
In above analysis, its clear that operating expense is increasing year by year in 2008
it was 23.26%, in 2009 it increased to 26.20% & in 2010 it slightly decreased to
24.95%. In 2009 operating expense increased to 26.20% which shows that in this year
investors get less profit but in 2010 operating expenses decreased.

4. Return On Net Worth:

77

Interpretation:
In above analysis, it has been found that return on net worth is changing year by year
in 2008 it was 19.37%, in 2009 it decreased to 12.71% & in 2010 it increased to
17.77%. Return on net worth measures a corporation's profitability by revealing how
much profit a company generates with the money shareholders have invested. In
above analysis its is clearly shown that in 2008 axis bank generate good amount of
profit through its share holders investment but in 2009 it decreased ,and 2010 it
increased to 17.77% .

5. Net Interest Income

78

Interpretation:
In above analysis, it has been found that net interest income is increasing year by year
in 2008 it was 4.01%, in 2009 it increased to 4.74% & in 2010 it increased to 4.98%.
Which show that Axis bank income after paying interest on deposits is increasing year
by year which shows that bank have good margin b/w interest received and interest
paid.
6. Non Interest Income

Interpretation:

79

In above analysis, it has been found that non interest income is changing year by year
in 2008 it was 0.03%, in 2009 it decreased to 0.02% & in 2010 it increased to 0.06%.

7. Net Profit

Interpretation:
In above analysis, it has been found that non interest income is increased year by year
in 2008 it was 1.07%, in 2009 it increased to 1.17% & in 2010 it increased to 1.41%.
In above analysis it is clearly shown this net profit of Axis bank is increasing year by
year which show that Axis bank sales increasing & and it also manage its expenses
very efficiently

8. Earning Per Share

80

Interpretation:
In above analysis, it has been found that non interest income is increased year by
year in 2008 it was 23.40%, in 2009 it increased to 29.94% & in 2010 it increased
to 50.57%.It shows that share value oh share is increasing and share holder
earning more year by year.

9. Equity Dividend

81

RECOMMENDATIONS

AXIS Bank needs to lower its interest rate charged from the customer as
compared to other banks so that more number of customers can be attracted.

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

better services to the customer.

Interpretation:
In above analysis, it has been found that non interest income is increased year by year
in 2008 it was 45%, in 2009 it increased to 60% & in 2010 it increased to 100%. Is
show investors get high amount of divided on there investment which is increasing
year by year.

FINDINGS

82

When I compare saving a/c of axis bank with other banks I found that axis
bank provide more varieties of saving a/c to its customer than its competitor
banks.

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

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

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

When I compare current a/c of axis bank with its competitors banks I found
that AQB is broadly categorized for rural and urban areas under AXIS bank,
but no such rural and urban classification is made by its competitors banks for
its current account customers.

Different DD and PO rates are applied by the banks according to the kinds of
account facilities they are providing to their ultimate customers.

Average quarterly balance is less and broadly categorized current a/c is offer
by axis bank to its customers. As compare to its competitors.

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

After doing ratio analysis I found that Axis bank profit margin is increasing yr
by yr which shows that Axis bank have high margin of safety. Its means sales
are increasing .which is good for future growth.

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

which shows that in 2009 Axis bank does not manage its operating expenses
efficiently. but in 2010 bank have less operating expenses as compare to 2009.

I also found that in axis bank have good return on net worth in 2008 which shows
that axis bank generate good amount of profit through its share holders investment
,but in 2009 it decreased ,and 2010 it increased to 17.77% .

Axis bank also generate good amount of through is net interest income in 2008
, but in 2009 it was slightly decreased . And 2010 it increased further.

Axis bank net profit is also increasing year by year which is good sing for
future growth and this growth also help them in attracting new investors &
customers.

EPS is also increasing every years which shows that Axis bank market share
value is increasing & market share is also increased in past few years.

83

RECOMMENDATION

AXIS bank should need to lower the charges rate if the balance falls below
Average quarterly balance.

AXIS bank should work on their field networking and services to enhance
more credibility.

A wide publicity to be given about the organization and its products through
various means of communications to keep growth moments.

AXIS bank should target customers that are ranging between 25-30 age group
because it was found that they are more interested in taking Business loan & to
apply for new account

If AXIS bank wants to compete their rivals like ICICI & HDFC they should
minimize, the AQB so, that they can increase customer database.

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

Customer service should be improved.

To eliminate the dissatisfaction proper workshop and awareness programs like

campaigning are helpful and held on the client origination.

84

CONCLUSION
My experience with Axis Bank Ltd. is outstanding. While working in Axis Bank I
found that this bank has developed manifold in short period of time due to facilities
and services provided to their customer and this growth rate can be keep it up if they
start to go in semi-urban areas. In last couple of years they have opened new many
branches and they should open many more. The working staffs are very co-operative
in nature and due to that the bank will also get good benefit. Axis Bank has provided
their customer Net-banking facilities and due to that transactions are done fast.
Charges at Axis Bank are when I compare it with Yes bank and ICICI bank. Charges
are high because Axis bank provides more variety of account to its customer. And
when I compare Axis bank to HDFC bank charges of axis bank is less than HDFC
bank.
Axis bank also provide ATM services 24 hours , also give free balance enquiry
To its account holder , it also provide addition services to its account holders like bill
payment , tax payment, mobile all this addition services are free of cost . But Axis
bank competitor charge for this services.
Axis bank also provide i-connect facility to its a/c which is unique service introduced
by axis bank which is plus point of axis bank against its competitors. ICICI is closest
competitor of axis bank because there is slightly difference between charges and it
also provides almost similar types of facilities.
Axis bank categorized its account according to regional wise like metro city, urban,
rural, semi-urban and charged according to persons income, average quarterly balance
maintenance is also different for different account holder. Fee for non maintenance of
quarterly average balance is charged by axis bank according to a/c holders category.
But ICICI, HDFC charges quit similar fee for non-maintenance of AQB from there a/c
holders.
Past record of axis bank shows that net profit, net interest of Axis bank, is increasing
year by year this is only because they offer more varieties of account to there
customer according to there needs, business profile. And Yes bank, & other
competitors of Axis bank does not provide varieties of account to there customer.
They only provide two, three types of a/c. Market share of axis bank is also increasing
year by year which is show in earning per share ratio as compare to its competitors

85

In addition, Axis bank offers corporate restructuring advisory services, mergers and
acquisitions advisory services, acquisition funding arranging services, infrastructure
and project advisory services, techno-economic feasibility reports, and business plan
preparation and bid process management, as well as acts as debenture trustees and
trustees for securitization issues. Market share of axis bank is also

86

BIBLIOGRAPHY

www.axisbank.com

www.google.com

www.finance.india.mart.com

Journals & Brouchers of Axis Bank

Business and economics magazine

Economics times

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ANNEXURE - 1
INCOME STATEMENT

Currency in
Millions of Indian Rupees

As of:

Mar 31
Mar 31
Mar 31
2007
2008
2009
Reclassified Reclassified Reclassified

Mar 31
2010

Revenues

10,099.1

17,959.2

Other Revenues

-2,676.1

-5,796.4

TOTAL REVENUES

22,107.7

38,015.2

Cost of Goods Sold

1,289.8

1,907.6

GROSS PROFIT

20,817.9

36,107.6

44,620.3 59,361.6

Selling General & Admin Expenses, Total

8,627.9

14,869.5

20,357.5 25,704.1

Other Operating Expenses

2,275.9

4,890.0

OTHER OPERATING EXPENSES,

TOTAL

10,903.8

19,759.5

26,491.0 34,580.1

OPERATING INCOME

9,914.1

16,348.1

18,129.3 24,781.4

EBT, EXCLUDING UNUSUAL ITEMS

9,914.1

16,348.1

18,129.3 24,781.4

EBT, INCLUDING UNUSUAL ITEMS

9,914.1

16,348.1

18,129.3 24,781.4

Income Tax Expense

3,371.6

5,756.7

Earnings from Continuing Operations

6,542.5

10,591.4

18,129.3 24,781.4

NET INCOME

6,542.5

10,591.4

18,129.3 24,781.4

NET INCOME TO COMMON

INCLUDING EXTRA ITEMS

6,542.5

10,591.4

18,129.3 24,781.4

NET INCOME TO COMMON

EXCLUDING EXTRA ITEMS

6,542.5

10,591.4

18,129.3 24,781.4

88

29,159.3 39,642.1
-19,093.9

27,301.0

46,867.3 62,405.3
2,247.0

6,133.5

--

3,043.8

8,876.0

--

4-Year
Trend

ANNEXURE 2
Cash Flow Statement

Currency in
Millions of Indian Rupees

As of:

Mar 31
Mar 31
Mar 31
2007
2008
2009
Reclassified Reclassified Reclassified

Mar 31
2010

NET INCOME

6,542.5

10,591.4

18,129.3

24,781.4

Depreciation & Amortization

1,120.1

1,593.0

1,902.2

2,378.7

DEPRECIATION & AMORTIZATION,

TOTAL

1,120.1

1,593.0

1,902.2

2,378.7

(Gain) Loss from Sale of Asset

29.1

151.8

82.0

44.9

(Gain) Loss on Sale of Investment

1,657.2

1,043.1

2,005.7

607.4

Asset Writedown & Restructuring Costs

17.7

213.2

661.5

564.7

Other Operating Activities

-763.8

-371.5

-2,093.4

-1,672.0

Provision for Credit Losses

1,986.3

4,760.4

8,370.7

13,561.3

Change in Other Working Capital -144,427.8

-244,927.6

-223,081.7

279,669.7

CASH FROM OPERATIONS -133,811.7

-226,944.3

-194,026.2

239,403.4

Capital Expenditure

-2,273.9

-4,417.4

-3,883.3

-4,149.3

Sale of Property, Plant, and Equipment

34.9

126.4

399.9

189.7

Investments in Marketable & Equity

Securities

-34,264.6

-44,515.7

-91,764.6

-46,793.1

CASH FROM INVESTING

-36,503.7

-48,806.8

-95,247.9

-50,752.7

Long-Term Debt Issued

17,128.1

--

19,050.6

18,214.3

TOTAL DEBT ISSUED

17,128.1

--

19,050.6

18,214.3

Long Term Debt Repaid

--

-720.8

--

--

TOTAL DEBT REPAID

--

-720.8

--

--

Issuance of Common Stock

359.4

45,466.8

388.6

39,031.7

Common Dividends Paid

-1,117.4

-1,488.1

-2,516.0

-4,205.5

TOTAL DIVIDEND PAID

-1,117.4

-1,488.1

-2,516.0

-4,205.5

Other Financing Activities

186,714.9

288,343.2

297,383.1 239,210.0

CASH FROM FINANCING

203,085.0

331,601.2

314,306.3 292,250.5

Foreign Exchange Rate Adjustments

-5.0

22.1

106.6

-204.1

NET CHANGE IN CASH

32,764.6

55,872.1

25,138.8

1,890.2

89

4-Year
Trend

ANNEXURE - 3
BALANCE SHEET

Capital and Liabilities:

Total Share Capital
Equity Share Capital
Share Application Money
Preference Share Capital
Reserves
Revaluation Reserves
Net Worth
Deposits
Borrowings
Total Debt
Other Liabilities & Provisions
Total Liabilities

Assets
Cash & Balances with RBI
Balance with Banks, Money at
Call
Advances
Investments
Gross Block
Accumulated Depreciation
Net Block
Capital Work In Progress
Other Assets
Total Assets
Contingent Liabilities
Bills for collection
Book Value (Rs)

Mar '08
12 mths

Mar '09
12 mths

Mar '10
12 mths

357.71
357.71
2.19
0.00
8,410.79
0.00
8,770.69
87,626.22
5,624.04
93,250.26
7,556.90
109,577.85
Mar '08
12 mths

359.01
359.01
1.21
0.00
9,854.58
0.00
10,214.80
117,374.11
10,185.48
127,559.59
9,947.67
147,722.06
Mar '09
12 mths

405.17
405.17
0.17
0.00
15,639.27
0.00
16,044.61
141,300.22
17,169.55
158,469.77
6,133.46
180,647.84
Mar '10
12 mths

7,305.66

9,419.21

9,473.88

5,198.58

5,597.69

5,732.56

59,661.14
33,705.10
1,384.70
590.33
794.37
128.48
2,784.51
109,577.84
78,028.44
16,569.95

81,556.77
46,330.35
1,741.86
726.45
1,015.41
57.48
3,745.15
147,722.06
104,428.39
29,906.04

104,343.12
55,974.82
2,107.98
942.79
1,165.19
57.24
3,901.06
180,647.87
296,125.58
35,756.32

245.13

284.50

395.99

CASE STUDY

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COMPANY PROFILE
With a central office in Mumbai, AXIS Bank has 841 branches and more than 3,600
ATMs in 521 locations across India. AXIS also has international offices in Singapore,
Hong Kong, Shanghai and Dubai, with a focus on corporate lending, trade finance,
syndication, investment banking, risk management, and liability businesses. In the
financial year ending March 31, 2009, AXIS Bank reported net profits of USD $370
million a nearly 70 percent growth over the previous year.
CHALLENGES
AXIS Bank is negotiating a variety of business challenges that are both unique to the
organization and familiar to the industry as a whole, including high data volumes, rapid
growth, tighter competition, and an increasing number of fraudulent and undesirable
transactions. The banks top internal challenges include operational risk management,
high personnel turnover rates, tighter regulatory demands, on-site internal audit gaps, and
meeting customer requirements in a competitive market.
India has also been affected by the recent global downturn, which has changed how top
management in every organization, including Axis Bank and regulators, view risk within
the enterprise. The audit committee is demanding mechanisms that increase confidence in
internal audit processes and technical practices. The AXIS audit team also needs to
analyze 100 percent of its corporate transactions, negotiate multiple data platforms,
access source data without compromising integrity, and achieve a more standardized,
repeatable approach to data analysis.

CHALLENGS FACED BY AXIS BANK

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Processing time for large volumes of data

Mitigating operational risk

Accessing data

SOLUTION
After reviewing multiple technology solutions, AXIS managers chose ACL audit
analytics to support a strategic audit and risk monitoring plan. The team crafted several
key ACL goals and developed more than 50 ACL scripts to monitor daily transactions and
identify exceptions such as income leakage or regulatory and compliance violations.
ACL extracts data from the companys backup server during non-peak hours and
analyzes this data to generate exception reports, which are automatically sent to the
appropriate stakeholders. Extraction, analysis and report distribution used to be
performed manually, but with ACL, these key steps are now automated without any
human intervention.
AXIS Bank also took an innovative approach to its work plan by dividing audit staff into
three teams responsible for supervising ad-hoc analyses, data analysis automation, and
fraud assessments and investigations. These teams work from the central Mumbai office,
but ACL analytics are now being used to strengthen controls in a number of additional
bank departments and offices
KEYBENEFITS

Direct access with full population data coverage

Time savings, fewer data anomalies and quick risk mitigation

Income recoveries, costs savings and higher audit confidence

RESULTS

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The AXIS Bank audit team has successfully used ACL software to implement a
company-wide monitoring and data analysis strategy. Transactions from the banks 841
branches are routinely analyzed and exceptions are quickly delivered to appropriate
internal stakeholders. Trend analyses show that total data deviations have dropped by
approximately 30 to 50 percent since the ACL implementation. The team has a direct
database link and can analyze entire data populations with almost no delay between
transaction and analysis. This full coverage has boosted confidence and eliminated
inadvertent biases from limited sample sizes.
By automating data analysis with ACL, the AXIS audit team has been able to cut
processing times by 50 to 60 percent and has reduced the resources required for analysis
by 20 to 30 percent freeing audit staff to perform other value-added activities.
Providing advance exception reports to field auditors has also cut on-site exception
verification times by 20 percent a number that AXIS expects will rise to 50 percent as
the process matures. Off-site data analysis makes it easier for auditors to plan field audits
and has enabled the department to enhance its audit coverage without adding more staff
members.
Most dramatically, the AXIS ACL implementation has identified significant revenue
leakages and over 50 percent of the detected shortfalls have already been recovered.
Unusual or suspicious transactions are easier to identify and the team has detailed
historical data to analyze patterns at the branch level. With a focused, ongoing ACL data
analysis strategy, AXIS is effectively addressing key operational risks and providing
solutions that increase confidence and regulatory compliance

SYNOPSIS
93

Company Name AXIS BANK

Student Name RAUSHAN AJIT
Industry Guide Mrs. CHANDNI GARG
Faculty Guide Mr. RAHUL CHANDRA

The objective of this project was to gain an insight and in depth knowledge about
banking products of AXIS BANK, & Compare services being provided by axis bank with
major competitor in the market (ICICI,HDFC,YES BANK).

Perception about Industry Guide

My industry guide Mrs. Chandni Garg, has been of immense help during the entire period
of my summer internship. It is only under his guidance that I have been able to complete
my report and make it as useful as it is. He has been a wonderful mentor, who has given
me an understanding of entire products & services being provided by AXIS BANK to its
customer and overview of core banking also. I would love to work under his guidance in
future.

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