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MARKETING PROJECT COMPANY: AXIS BANK
SUBMITTED TO: SUBMITTED BY: PROF. K.C.PRAKASH
ICFAI BUSINESS SCHOOL HYDERABAD
It is great pleasure to express my sense of gratitude to Prof.K.C.PRAKASH, ICFAI Business School, Hyderabad, without whose valuable guidance generous help and constant enthusiastic inspiration this assignment titled “CLASS PROJECT-AXIS BANK” would have never been a success. I was almost convinced that I was aware of the business & market forces that drive the Banking industry. However, once I started out working on the same, I realized how grossly inadequate my knowledge had been. I thank sir for giving me all the valuable inputs all along and guiding me to once again explore the sector I so much feel a part of.
PARTICULARS 1 5 2 3 4 5 6 7 8 9 10 11 12 13 14 COMPANY PROFILE MAJOR PLAYERSIN BANKING INDUSTRY DETAIL DESCRIPTION OF AXIS BANK ON THE 7 Ps FRAMEWORK PRODUCT AND SERVICES OF AXIS BANK COMPETITIVE ANALYSIS & ADVANTAGES MANAGER’S JOB RESPONSIBILITIES MARKET SHARE RELATED SERVICE INDUSTRY 10YR FROM NOW EXISTING PROMOTIONAL & PRICING STRATEGY GOVT.INDEX S. EXISTING MARKETING STRATEGY TO GAIN UPPER MARKET SHARE 54 RECOMMENDATIONS BIBLIOGRAPHY 60 62 4 . REGULATION 8 13 20 32 37 42 43 45 46 52 BANKING IN INDIA PAGE NO.NO.
though conservative. This is one of the main reasons of India's growth process. During those day’s public has lesser confidence in the banks. During the first phase the growth was very slow and banks also experienced periodic failures between 1913 and 1948. As an aftermath deposit mobilization was slow. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact. To streamline the functioning and activities of commercial banks. PHASE I: The General Bank of India was set up in the year 1786. Bank of Bombay (1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. mostly small.Nationalization of Indian Banks and up to 1991 PHASE III . There were approximately 1100 banks. the journey of Indian Banking System can be segregated into three distinct phases. They are as mentioned below: • • • PHASE I . The East India Company established Bank of Bengal (1809). Next came Bank of Hindustan and Bengal Bank. 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No.Early phase from 1786 to 1969 of Indian Banks PHASE II .BANKING IN INDIA: Without a sound and effective banking system in India it cannot have a healthy economy. Reserve Bank of India was vested with extensive powers for the supervision of banking in India as the Central Banking Authority. 23 of 1965).Indian Financial & Banking Sector Reforms after 1991. For the past three decades India's banking system has several outstanding achievements to its credit. HISTORY: The first bank in India. Indian banking system has reached even to the remote corners of the country. the Government of India came up with The Banking Companies Act. Abreast of it the savings 5 . These three banks were amalgamated in 1920 and Imperial Bank of India was established which started as private shareholders banks. mostly Europeans shareholders. From 1786 till today. was established in 1786. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors.
This step brought 80% of the banking segment in India under Government ownership. Phone banking and net banking is introduced. under the chairmanship of M Narasimham. funds were largely given to the traders. The following are the steps taken by the Government of India to Regulate Banking Institutions in the Country: • • • • • • • • 1949: Enactment of Banking Regulation Act.Banking in the sunshine of Government ownership gave the public implicit faith and immense confidence about the sustainability of these institutions. PHASE II: Government took major steps in this Indian Banking Sector Reform after independence. Moreover. PHASE III This phase has introduced many more products and facilities in the banking sector in its reforms measure. 1961: Insurance cover extended to deposits. 1975: Creation of regional rural banks.bank facility provided by the Postal department was comparatively safer. The entire system 6 . it nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and semi-urban areas. After the nationalization of banks. The country is flooded with foreign banks and their ATM stations. In 1991. 1959: Nationalization of SBI subsidiaries. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980 with seven more banks.000%. 1971: Creation of credit guarantee corporation. the branches of the public sector bank India raised to approximately 800% in deposits and advances took a huge jump by 11. 1969: Nationalization of 14 major banks. Efforts are being put to give a satisfactory service to customers. In 1955. 1980: Nationalization of seven banks with deposits over 200 crore. 1955: Nationalization of State Bank of India. a committee was set up by his name which worked for the liberalisation of banking practices.
FIGURE: SCHEDULED COMMERCIAL BANK IN INDIA: 7 . The financial system of India has shown a great deal of resilience. and banks and their customers have limited foreign exchange exposure. the foreign reserves are high. This is all due to a flexible exchange rate regime. It is sheltered from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered. the capital account is not yet fully convertible.became more convenient and swift.
The Oriental Insurance Corporation and United Insurance Company Ltd. This is the first bank in India to offer the AT PAR Cheque facility. Axis Bank was jointly promoted by the Administrator of the specified undertaking of the Unit Trust of India (UTI-I) Life Insurance Corporation of India (LIC) General Insurance Corporation Ltd.86 Crores with 47. customers can make cheque payments to any beneficiary at any of its existence place. the first bank to begin operations as new private banks in 1994 after the Government of India allowed new private banks to be established. National Insurance Company Ltd. Axis Bank in India had over 2. With the AT PAR cheque facility. The ceiling per instrument is Rs. Also with associates viz. The Travel Currency Card is a signature based pre-paid travel card which enables traveler’s global access to their money in local currency of the visiting country in a safe and convenient way. to all its Savings Bank customers in all the places across the country where it has presence. By the end of December 2004.The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the International Travel Currency Card. Axis Bank in India today is capitalised with Rs. Axis Bank has strengths in retail as well as corporate banking.000/-. The New India Assurance Company. Axis Bank India commits to adopt the best industry practices internationally to achieve excellence.COMPANY PROFILE: AXIS BANK Axis Bank India. 232. 50.. It has more than 200 branch offices and Extension Counters in the country with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country.7 million debit cards.50% public holding other than promoters. 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 EVOLUTION: 8 . without any charges.
Mr.'' The emergence of a "foreign expert" during the setting up of the UTI makes an interesting story. it (the UTI) has succeeded phenomenally in achieving its objective and has the largest share anywhere in the world of the domestic mutual fund industry. In the course of nearly four decades of its existence. neither did the Government of India own it nor contributes any capital. Nehru. including the UTI. where small pension funds are an important class of customers for the unit trusts. and asked the RBI to hold up the finalization of the unit trust proposals till the expert visited India. he had in mind the practice in the US. began corporate investment in the UTI. through Mr. The State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital each. and provided the dividends declared by the investing company were higher than the dividends received. as he was one of the principal architects of the ICICI. The Centre accepted the foreign expert's suggestion. Thus. had a sizeable shareholding. in which his bank. B.UTI was established in 1964 by an Act of Parliament. Woods offered. were completely exempt from corporate income tax. Mr. The announcement by the then Finance Minister that the Government of India was contemplating the establishment of a unit trust caught the eye of Mr. and given the mandate of running the UTI in the interest of the unit-holders. According to this concession. 9 . Again. Woods took a great deal of interest in the Indian financial system. the UTI was not created to earn profits. and the rest was contributed by scheduled commercial banks which were not nationalized then. the then President of the World Bank.K. the dividends received by a company from investments in other companies. The only point Mr. The RBI was asked to contribute one-half of its initial capital of Rs 5 crore. who was India's Executive Director on the World Bank. unlike other unit trusts and mutual funds. Sullivan made was that the provision to limit the ownership of units to individuals might result in unnecessarily restricting the market for units. This kind of structure for a unit trust is not found anywhere else in the world. the services of an expert. and the necessary amendments were made in the draft Bill. The Centre jumped at the offer. which received a boost from the tax concession given by the government in the 1990-91 Budget. First Boston Corporation Bank. While making this point. George Woods.
Although the appointment was to be made in consultation with the Reserve Bank. SUUTI SHARE HOLDINGS-27. trusteeship. 1963. forex. direct finance.33% Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act. 1. with UTI contributing Rs. the Government could appoint a person of its choice as Chairman even if the Bank did not approve of him. BUSINESS DESCRIPTION: The Bank's principal activities are to provide commercial banking services which include merchant banking. treasury and other related financial services. The RBI draft of the UTI charter stipulated that the Chairman will be nominated by it. with a view to encourage savings and investment. 10 . venture capital fund. The Government-RBI power game started with the finalization of the UTI charter itself.Rs. advisory.5 crore GIC and its four subsidiaries contributing Rs. 115 crore. PROMOTERS: UTI Bank Ltd. paving the way for the bifurcation of UTI into 2 entities. This added to the volatility of the UTI funds. and one more nominee would be on the Board of Trustees. 7. LIC . UTI-I and UTI-II with effect from 1st February 2003. the UTI Act. 2006 the Bank open-end 1 overseas branch in Singapore. the Centre changed this stipulation.The result was a phenomenal increase in corporate investment which accounted for 57 per cent of the total capital under US-64 scheme. UTI. 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act. The Bank has 463 branches and 263 extension counters throughout India. has been promoted by the largest and the best Financial Institution of the country. 2002 by the Parliament. While finalizing the draft Bill. infrastructure finance. The Bank was set up with a capital of Rs. Because of high liquidity the corporate sector used the UTI to park its liquid funds.5 crore each. The Chairman was to be nominated by the Government. In December 2002. 100 crore. The corporate lobby which perhaps subtly opposed the establishment of the UTI in the public sector made use of it for its own benefits later. albeit in consultation with RBI. During April.
126.96.36.199.96 2.514 28. Total Promoter Shareholding A B.95 35. Foreign Shareholding 7 FDI Route GDR Issue 8 Foreign Financial Institutions 12.82. A.786 11.45.96 0.09 100 (FIIs) 9 NRIs/OCBs Total Non-Promoter Foreign Shareholding C Total A+ B + C BOARD OF DIRECTORS: 11 .12 8.SHARE HOLDING PATTERN: AS ON 25-05-07 Sr.22.08.I) 2 Life Insurance Corporation of India 3 General Insurance Corporation of India and four PSU Insurance Companies.18 40. Non-Promoter Holding 4 Indian Financial Institutions (IFIs) 5 Mutual Fund 6 Others (Individuals/Corporate Bodies/HUF/Trusts/Banks) Total Non-Promoter Indian Shareholding B C.188.8.131.52 No.557 4.39.38 184.108.40.2069 3.22.394 2.33.084 2.33.26. No.224 10. Name of the Shareholders Promoter Shareholding 1 Administrator of the Specified Undertaking of the Unit Trust of India (UTI .36.34 5.46 16. of Shares Held % Stake to Total 7.035 42.067 5.936 220.127.116.11 0.13.070 27.661 10.94.230 3.33 1.62.
H.C.R.B.V. DESIGNATION Chairman & Managing Director Director Director Director Director Director Director Director Director Director Director MAJOR PLAYER IN THE BANKING INDUSTRY: 12 . Singhal Shri A. J. Efficiency and effectiveness built on ethical practices. Integrity and People. Progressive globalization and achieving international standards. Dr. Nayak is the Chairman and Managing Director of the Bank. it enhances your face value" is a service quality stressed on o Periodic Customer Service Audits Maximization of Stakeholder value Success through Teamwork. Pannir Selvam Shri J. P.L.T.B.The Bank has 11 members on the Board. Rama Bijapurkar Shri R. Continuous technology upgradation while maintaining human values. CORE VALUES: Customer Satisfaction through o Providing quality service effectively and efficiently o "Smile. R. Varma Dr. Mathur Shri M. P.J. Nayak Shri Surendra Singh Shri N. Subbiah Shri Ramesh Ramanathan MISSION AND VALUES: OUR VALUES: Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. The members of the Board are: NAME Dr. Patil Smt. Vaish Shri S.
as part of the RBI's liberalization of the Indian Banking Industry in 1994. Wholesale Banking. giving the customer a one-stop window for all his/her banking requirements. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'. RETAIL BANKING SERVICES: The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. and treasury products to wholesale and retail customers. Cash management. blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. WHOLE SALE BANKING SERVICES: The Bank's target market ranges from large. 13 . The products are backed by world-class service and delivered to the customers through the growing branch network. For these customers. BUSINESS SUMMARY: HDFC Bank Limited offers a range of commercial and transactional banking services. Trade services. It operates in three segments: Retail Banking. including Working capital finance. with its registered office in Mumbai. Treasury Services. as well as through alternative delivery channels like ATMs.HDFC HISTORY: The 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. the Bank provides a wide range of commercial and transactional banking services. India. Transactional services.
Net Banking Mobile Banking. the Government of India and representatives of Indian industry. the bank has three main product areas – Foreign Exchange and Derivatives. Equities. These and fine pricing on various treasury products are provided through the bank's Treasury team. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998. ICICI History HISTORY: ICICI Bank was originally promoted in 1994 by ICICI Limited. Local Currency Money Market & Debt Securities. TREASURY: Within this business. The Treasury business is responsible for managing the returns and market risk on this investment portfolio. the bank is required to hold 25% of its deposits in government securities. Phone Banking. To comply with statutory reserve requirements. and was its wholly-owned subsidiary. corporate need more sophisticated risk management information. The principal objective was to create 14 . and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. an equity offering in the form of ADRs listed on the NYSE in fiscal 2000. ICICI was formed in 1955 at the initiative of the World Bank. an Indian financial institution. advice and product structures. ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001. With the liberalization of the financial markets in India.
The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations. have been integrated in a single entity. with ICICI Bank. 3. ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.10 billion for fiscal 2007. ICICI Personal Financial Services Limited and ICICI Capital Services Limited. and the move towards universal banking. ICICI Bank is 15 .a development financial institution for providing medium-term and long-term project financing to Indian businesses. greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. entry into new business segments. 2007 and profit after tax of Rs. ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services. the ICICI group's financing and banking operations. Consequent to the merger. the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities.58 billion (US$ 79 billion) at March 31. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002. BUSINESS SUMMARY ICICI Bank is India's second-largest bank with total assets of Rs. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits. both directly and through a number of subsidiaries and affiliates like ICICI Bank. both wholesale and retail. In 1999. and access to the vast talent pool of ICICI and its subsidiaries. particularly fee-based services. In the 1990s. seamless access to ICICI's strong corporate relationships built up over five decades. higher market share in various business segments. In October 2001. the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries. by the High Court of Gujarat at Ahmedabad in March 2002. and would create the optimal legal structure for the ICICI group's universal banking strategy. 31. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry.446. and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Our UK subsidiary has established a branch in Belgium. Sri Lanka and Dubai International Finance Centre and representative offices in the United States. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking. Russia and Canada. United Arab Emirates. Hong Kong. life and non-life insurance. Bahrain. Malaysia and Indonesia.the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation*. The Bank currently has subsidiaries in the United Kingdom. SERVICES PROVIDED: PERSONAL BANKING: Deposits Loans Investments Cards Insurance Demat Services Online Services Property Services NRI BANKING: Money Transfer Bank Accounts Property Solutions Insurance Loans BUSINESS BANKING: Corporate Net Banking Cash Management Trade Services FX Online SME Services Online Taxes Custodial Services SBI 16 . China. Bangladesh. branches in Singapore. The Bank has a network of about 950 branches and 3.300 ATMs in India and presence in 17 countries. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). Thailand. South Africa. venture capital and asset management.
jewels.HISTORY: The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. indigo. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). however. it was the first joint-stock bank of British India sponsored by the Government of Bengal. cotton. Primarily Anglo-Indian creations. which began to be financed later. sugar and jute. Loans against goods like opium. plate. All commodities. Demand promissory notes were signed by the borrower in favor of the guarantor. the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. keeping cash accounts and receiving deposits and issuing and circulating cash notes. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. treasure.one lakh and the period of accommodation confined to three months only. Their evolution was. or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework. bullion. A unique institution. shaped by ideas culled from similar developments in Europe and England. land or other real property was. cotton piece goods. The security for such loans was public securities. Loans were restricted to Rs. which was in turn endorsed to the bank. were either pledged or hypothecated to the bank. including tea. mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. commonly called Company's Paper. Lending against shares of the banks or on the mortgage of houses. BUSINESS SUMMARY: The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities. 17 . however. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. salt woolens.
is an outcome of the professional commitment of its Founder. YES BANK has adopted international best practices. and offers comprehensive banking and financial solutions to all its valued customers. YES BANK is the only Greenfield license awarded by the RBI in the last 12 years. while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. Rana Kapoor and his highly competent top management team. Indians were the principal borrowers against deposit of Company's paper. But the main function of the three banks. A key strength and differentiating feature of YES BANK is its knowledge driven approach to banking and an unprecedented customer experience for its retail banking and wealth management clients. SERVICES PROVIDED: PERSONAL BANKING: AGRICULTURAL BANKING CORPORATE BANKING NRI BANKING YES BANK: HISTORY: YES BANK. service driven. the highest standards of service quality and operational excellence. private Indian Bank catering to “Emerging India”. India’s new age private sector Bank. associated with the finest pedigree investors.forbidden. as far as the government was concerned. customer centric. was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities. to establish a high quality. 18 .
Indian Overseas Bank was the first Bank to venture into consumer credit. IOB had the unique distinction of commencing business on the inaugural day itself in three branches simultaneously .70 crores and Advances of Rs 44. On the eve of Nationalization in 1969. IOB has specialized branches to 19 . IOB had 1427 branches in India and 6 branches overseas.Ct.YES BANK is built on a foundation of trust. As of March 2003. In 1977. governed by transparency and committed to responsible banking.M.90 crores. IOB had 195 branches in India with aggregate deposits of Rs 67. the Bank made a beginning in computerization in the areas of inter-branch reconciliation and provident fund accounts. It introduced the popular Personal Loan scheme. SERVICES PROVIDED: FINANCIAL TRUST: HUMAN CAPITAL: KNOWLEDGE BANKING TECHNOLOGY EDGE: CORPORATE GOVERNANCE: RESPONSIBLE BANKING: INDIAN OVERSEAS BANK: HISTORY: Indian Overseas Bank (IOB) was founded on February 10. The result is an unstinted commitment to growing your wealth.at Karaikudi and Chennai in India and Rangoon in Burma (presently Myanmar) followed by a branch in Penang. backed by cutting-edge technology.M. Besides the Bank has a network of over 240 ATMs and 243 Extension Counters. IOB opened its branch in Seoul and the Bank opened a Foreign Currency Banking Unit in the free trade zone in Colombo in 1979. In 1964. Chidambaram Chettyar. 1937 by Shri. strengthened by knowledge. IOB was one of the 14 major banks that were nationalized in 1969.
20 . These seven are: Product. there is a "Seven P Formula" that should be used to continually evaluate and reevaluate your business activities. Industrial finance. markets.cater to the exclusive needs of Commercial & Industrial credit. customers and needs change rapidly. company must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace. SERVICES PROVIDED: Saving Bank Deposits No Frills SB Accounts Current Account Fixed Deposit Reinvestment Deposit Recurring Deposit Account Annuity Deposit Plan Multiple Investment Scheme Cumulative Benefit Deposit Multiple Deposit Account 7P FRAME WORK IN AXIS BANK: Once the marketing strategy is developed. hi-tech agriculture and foreign exchange. As products. Price Promotion Place Process Positioning People. Small Scale industries.
develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right business at this time. or mix of products and services. is your product or service superior in some significant way to anything else available? If so. Are these the right products or services for our customers today? Compared to your competitors. could you develop an area of superiority? Should you be offering this product or service at all in the current marketplace? Product variety. appropriate and suitable for the market and the customers of today?" Develop a habit of assessing your business honestly and asking. quality and its features. Ask critical questions such as.PRODUCT To begin with. Products and Services on offered by AXIS Bank: Accounts • • • • • • Easy Access Accounts Prime Savings Account Salary Account Women’s Saving Account Senior Privilege Account Defense Salary Account Trust & NGO Savings Account Azzadi –No frills 21 • • . "Is the current product or service. Is there a market for the service on offer? Is the market growing or shrinking? Is the service new or established? The competition prevailing in the market for the service on offer? The USP of the product. what is it? If not.
Deposits: • • • • Loans: • • • • • • • • Home loan Personal loan Loan Against Property Loan Against Security Car Loans Study Loans Two Wheeler Loan Consumer Loan Fixed Deposits Recurring deposits Encash 24 Tax Saver Fixed Deposits Investments: • • • • • Online Trading Mutual Funds Fixed Income Depository Services E Depository Services Insurance: • • • Health Insurance Family Health Health Guard 22 .• • RFC (D) Account Pension savings Account.
as in nature. to remain competitive. and the interest you can charge will more than make up for the delay in cash receipts. 23 . The use of technology is the strategic differentiator for AXIS bank that helps in cost minimization and creating efficiency for the customer. Sometimes you can combine products and services together with special offers and special promotions. they may lose a percentage of their customers. AXIS bank has developed innovative strategies against its competitors with respect to pricing by use of technology. it may be appropriate to raise your prices. but the remaining percentage generates a profit on every sale. Sometimes you need to lower your prices. Could this be appropriate for you? Sometimes you need to change your terms and conditions of sale.25 per cent (9 per cent). The creation of centralized processing system linking all its branches has been a major strategic move in this regard. Many companies have found that the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing them. Sometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers. The pricing mechanism and features of various HDFC products are as follows: Home Loans: Floating rates: For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at 9. By raising their prices.• PRICES Hospital Cash The second P in the formula is price. In business. Be open to the need to revise your prices. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Be open to the possibility that your current pricing structure is not ideal for the current market. by spreading your price over a series of months or years. At other times. be open to revisiting that area. you can sell far more than you are today. if necessary. to survive and thrive in a fast-changing marketplace. Sometimes. whenever you experience resistance or frustration in any part of your sales or marketing activities.
Minimum Investment Amount: The Bonds will be issued for a minimum amount of Rs 1. The rate for loans of 5 years and above up to 10 years is now at 9.000 (face value) and in multiples thereof. FIXED INCOME Investment Plans: Rs 250 (student account) Free Free Free Investors can choose from cumulative and non-cumulative bond options. Cheque Book.75 per cent (9. Rs 500 (student account) Charges on non maintenance thereof Rs750 per quarter(urban &semi urban) Rs 500 (Rural branch). SAVINGS ACCOUNT: Description of Charges Minimum Average Quarterly Balance Regular Savings Account Rs 5000 (urban).00% per annum and are payable half-yearly. 24 . Rs 1000 (Rural branch).50 per cent). Interest Rate: Bonds will bear interest @ 8. The interest rate for above ten years now stands at 10. Rs 2500(Semi Urban).25 per cent (10 per cent). Pass Book Issuance Account Statements Phone Banking and Net banking .
CURRENT ACCOUNT: 25 . Presently there is no tax deduction at source at the time of interest payment. Taxation: Interest on the Bonds will be taxable under the Income Tax Act. Maturity: The Bonds shall mature on the expiration of six years from the date of issue. Maximum Investment Amount: There is no upper limit for investment in the Bonds. 1961 as applicable according to the relevant tax status of the Bonds holder.
FIXED DEPOSITS: 26 .
PERIOD DEPOSITS 7 days to 14 days 30 days to 45 days 15 days to 29 days 46 days to 60 days 61 days to less than 3 months 3 months to less than 4 months 4 months to less than 6 months 6 months to less than 9 months 9 months to less than 1 year 1 year to less than 2 years 2 years to less than 3 years 3 Years to less than 5 years 5 Years upto 10 years INTEREST RATES ON DOMESTIC DEPOSITS Interest Rate on Deposits Below Rs 15 lakhs 4 3 5 5.5 6 6 7 8 9 9 8 8 (%) Interest Rates for Senior citizen 4 3 5 5.5 6 6 7 8 9 9 8 8 PROMOTION 27 .5 6 6 8 9 10 10 9 9 Int Rate 15-50 Lakhs 1 4 3 5 5.
telemarketing. direct sales force. and also provide value add to the customers for their faith and loyalty. Many companies use a combination of one or more of these 28 . These promotions are scientifically designed based on data analysis and data mining in order to have maximum impact on the target audience.The third habit in marketing and sales is to think in terms of promotion all the time. internet advertizing . Some companies use direct selling. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. Even small changes in your advertising can lead immediately to higher sales. Some sell by telemarketing.This promo are targeted at all those customers who avail a personal loan. Wheels of fortune . Personalized promos by sending mailers about various products on offer to all those who come in contact during the mass promotion strategies. car or a two wheeler loan. PLACE The fourth P in the marketing mix is the place where your product or service is actually sold. Some sell through catalogs or mail order. sending their salespeople out to personally meet and talk with the prospect. The focus of the promotions are not just confined to acquisition of new products but also extends to creating product awareness. brokers. AXIS bank has devised an aggressive promotional strategy through its diversified distribution mix which includes tied agencies and alternate channels like banks. Small changes in the way you promote and sell your products can lead to dramatic changes in your results. Some of the promotional activities undertaken are: Cross Selling exercises Organizing school level painting competitions in order to create awareness about the environmental concerns and the wild life to promote kids advantage account. The promotional strategies are carried out with an objective of positioning AXIS bank as a one stop financial super market. There will be lucky draw at the end of the promo and the winners would get exotic prizes. enhancing usage. You can sell your product in many different places.
Axis bank is widely spread in India and its core banking operations has huge network – • • 580 branches and extension counters foreign offices – in Singapore. It includes geographic spread. How do people think and talk about you when you're not present? How do people think and talk about your company? What positioning do you have in your market. POSITIONING The next P is positioning. your waiting rooms. thereby lowering the operating costs. Everything affects your customer's confidence about dealing with you. Shanghai and Dubai 2457 ATMs reaches out to 350 cities. dealer ships that facilitate network establishment. people from their first impression about you within the first 30 seconds of seeing you or some element of your company. the habit of thinking continually about how you are positioned in the hearts and minds of your customers. Process refers to the way your product or service appears from the outside. Remember. Hong Kong. Everything counts. It refers to those activities of the company that makes the product available to target consumers. Small improvements in the process or external appearance of your product or service can often lead to completely different reactions from your customers. PROCESS The fifth element in the marketing mix is the process. your brochures. your product or service.methods. towns and villages across the country AXIS bank owns a wholly owned distribution channel with dedicated workforce. Packaging refers to your people and how they dress and groom. your correspondence and every single visual element about your company. in terms of the specific words people use when they describe you and your offerings to others? 29 . distribution channels. you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process. Everything helps or hurts. It refers to your offices. It uses its network base to good effect to sell customized products. With regard to the process of your company. Develop the habit of standing back and looking at every visual element in the process or service through the eyes of a critical prospect.
1500 crores per month on the payment front. Your ability to select. with the skills and abilities to do the job you need to have done. PEOPLE The final P of the marketing mix is people. AXIS bank values its human resources very highly and is on a constant endeavor to continuously develop its human resources by laying strong emphasis on training development. An essential ingredient to any service provision is the use of appropriate staff and people.AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible to maximum customer. It's amazing how many entrepreneurs and businesspeople will work extremely hard to think through every element of the marketing strategy and the marketing mix.5000 crores per month on the collection front and about Rs. recruit. hire and retain the proper people. EMPLOYEE PRODUCTIVITY: 30 . CENTRALISED COLLECTION AND PAYMENT HUB The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and payment activity under the Bank’s Cash Management Services (CMS) across the country. is more important than everything else put together. CENTRALISED PHONE BANKING CENTRE The Bank’s Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone. in a specific way. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. handling multiple queries in about 7000 calls per day. It has also come up with some phone banking centre and centralized collection and payment hub. handling on an average about Rs. Recruiting the right staff and training them appropriately in the delivery of service is essential if the organization has to obtain competitive advantage. It possesses a highly motivated team of professionals and has the lowest employee turnover rate in the industry. and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person.
of employees Business per employee (in Rs. It provides challenging and exciting growth opportunities for its employees in order to push the employees unleash their maximum potential.22 All Bank Bank Avg Avg 2003-04 2004-05 2005-06 2005-06 2005-06 185 250 348 259 680 3447 4761 6553 4189 10458 808 8.Private ITEM No. lakh) Profit per employee (in Rs.69 677 4.02 1020 8.84 From the above data it is clearly evident that Axis bank is growing at a good rate as there number of branches are also increasing along with the increase in the employee also showing the environment provided by Axis bank.79 2002-03 137 2338 926 8.6 423. lakh) 2001-02 112 1721 896 7. of offices No. One of the key features of any growing business is 31 .07 1021 8. Its profit per employee is also showing a positive trend and is above the average of both the private bank and the all the bank category.74 2.
and the demands of specialized businesses. The training system in the Bank focuses on upgrading the professional skills of each individual 32 . The Bank has generally successfully managed the important challenge of acquisition of talent to keep pace with the rapid network expansion. given the current buoyancy in the Indian economy as also the lucrative opportunities available for skilled personnel in the growing financial services sector. During the year. with the staff complement increasing by 1. a major challenge was the retention of manpower. Training is an area of continuing focus for the Bank in order to ensure that its professionals are equipped to maintain high standards of customer service.761 at end-March 2005 to 6. The Bank has been successful in achieving this.the recruitment and retention of human resources.792 during the year from 4. The scope of training is continually improved and refined in consultation with business groups.553 at endMarch 2006.
000 per day facilitating transfer of funds. and in-house and external domain skills programmes. deposits of cash/cheques and payment of insurance premium (LIC). we have always strived to pace our products with the growing needs of our customers. Continuous training. The Prime Savings account has therefore been created with your specific financial requirements in mind. • • Wider Accessibility: 500 branches and one of the largest ATM networks in India.employee through classroom sessions. the opportunity to work on challenging tasks. Amongst the significant retention tools is a well-structured performance-linked scheme of variable pay and employee stock options to all employees across grades and functions. you have the unique advantage to encash your cheques as a local cheque at more than 330 centers where the bank has a presence at no extra cost • Other Accounts in this category: SALARY POWER SMART PRIVILEGE ACCOUNT SENIOR PRIVILEGE PENSION SAVINGS ACCOUNT 33 . and job rotation are part of the Bank’s talent retention strategy. Greater Convenience: International Debit Card with withdrawal limit of Rs 40. DETAILED DESCRIPTION OF PRODUCTS AND SERVICES: PERSONAL ACCOUNTS: PRIME SAVINGS ACCOUNT Axis Bank. • • More Comfort: 24 hr Internet Banking and Tele Banking services Enhanced Privileges: provide you a passbook and monthly statement of account to keep you updated on all your transactions Added Speed: 'At Par' cheque facility. outbound training.
Reinvestment Deposits: In a reinvestment deposit. 48. 24. • • Encash 24 34 . 36.a recurring deposit account can be transferred from one office of the Bank to another branch. You can select this option in the Account Opening Document (AOD). 63. the interest accrued to your deposit at the end of each quarter is invested along with the principal. The fixed number of installments for which a Depositor can opt are 12. 84. you can avail of the facility for automatic rollovers on maturity (for both the principal and interest). 72. Transfer of Accounts . Features: • Recurring deposits are accepted in equal monthly installments of minimum Rs 1. 60.000 and Above in multiples of Rs 500 thereafter. 39. 96. The tenure of your deposit must be a minimum of 6 months. 108 and 120 months. which can be opened with a minimum investment of Rs 10. The options available are: • • RECURRING DEPOSITS Power of compounding 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.DEPOSITS Fixed Deposits Axis Bank offers a simple reinvestment Fixed Deposits (at very competitive interest rates).000. Automatic Rollover: As a Fixed Deposit holder.
• ASSET POWER (Loan Against Property) A take-over of your existing loan with refinancing is also possible with Asset Power. Features Attractive interest rates 35 .000 to Rs 20 lacs Repayment tenures from 12 to 60 months Attractive interest rates Free personal accident insurance cover with personal loan Loans can be used for any purpose with no questions asked regarding the end use of the loan A balance transfer facility available for those who want to retire any higher cost debt Loans available against repayment track record of any existing auto. minimal documentation and quick approval. chartered accountants. LOANS POWER HOUSE: Axis Bank's Power Home puts an end to your Real Estate troubles.The ENCASH 24 (Flexi Deposits) gives you the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. personal or home loan Loans available against proof of life insurance policy or premium receipts Zero balance SB account facility for personal loan customer’s Simple procedure. This is achieved by creating a Fixed Deposit linked to your Savings Account providing you the following unique facilities. CS and ICWA . Features: • • • • Attractive interest rates Balance Transfer facility Doorstep service Option to choose from floating rate or fixed rate Free Property & Personal accident insurance. engineers. PERSONAL POWER: Features: • • • • • • Loans for salaried and self employed individuals Special loans for doctors. architects. Loans are available from Rs 50.
Commercial Loan for purchase of commercial property Take-over of existing loan with additional refinance (Balance Transfer) Lease Rental Discounting (LRD) CORPORATE BANKING Working Capital Finance . The products are designed to add value to supply and distribution channels by providing unique solutions to meet their working capital requirements. while mitigating the credit and price risk at the same time. Supply Chain Management Axis Bank provides integrated commercial and financial solutions to the supply and distribution channels of a corporate. providing a gamut of products for both exports and imports. with dedicated Front-Desk and Specialists. These products are designed to ease the liquidity position of the client and come with a number of other facilities such as Internet Banking. Structured Finance Axis Bank provides tailor made solutions to meet our clients' requirements. Balance Transfer facility available with additional finance Doorstep service Four products under Asset Power Loan against property . 36 . Trade Services Axis Bank has emerged as one of the leading banks in providing trade finance services. speedy processing of documents and provide comprehensive and timely MIS. Phone Banking etc.Residential Loan against property .
The Bank has successfully managed various debt issuances of mid and large size which includes plain vanilla loans or bonds. Hence time available for submission of delivery instructions is limited. private placement of equity. The Trusteeship Group presently services over 150 clients including leading public and private sector corporate as well as Banks and Financial Institutions including international funding agencies in respect of various debt instruments issued within the country and also for various secured Foreign Currency Convertible Bonds and External Commercial Borrowings. Monitoring Agency and Facility Agency and predominantly acts as Trustee to privately placed debt issuances. Axis Bank now permits submission of delivery instructions in electronic form using Internet based service called Speed-e. The Bank has acted as Lead Book Running Managers. is a SEBI registered Debenture Trustee in the business of Debenture Trusteeship. instruction for delivery of securities to broker's account is required immediately after sale of securities. Physical delivery instructions need not be submitted in case you are submitting the instructions on Speed-e. domestic borrowings and external commercial borrowings.000 crores. At present the aggregate value of the Trusteeship portfolio is approximately Rs 1.CAPITAL MARKETS Debt Solutions Axis Bank is a leading provider of debt solutions in the form of bond or debenture issuances and loan syndication. overseas fund raising through FCCB and GDR and debt syndication. The Bank is the largest bond house in the country and has been ranked first in respect of various domestic and international league tables in respect of domestic debt issuances. Security Trusteeship. co-arrangers and advisors to a number of equity issuances or offers. EDepository Services With the introduction of settlement on T+2 basis. and structured term loans to meet the specific requirements of the clients and the projects. CAPITAL MARKET FUNDING: 37 . Equity Solutions We are SEBI registered Category I Merchant Banker. 00. The Bank's Capital Markets Department has developed significant expertise in the area of public or rights issue management. Trusteeship Services Axis Bank Ltd.
69 2886 2889 40114 21527 YES 6 4189 677. 38 . • COMPETETIVE ANALYSIS AND ADVANTAGES OF AXIS BANK: Below in the table is shown a comparative analysis of AXIS Bank with the other major players in the banking industry.15 865 694 6566 2856 From the above data it is clear that AXIS bank is among the top three private players in the banking industry.86 8.Axis Bank is a clearing bank for following exchanges: • • • • • National Stock Exchange of India Limited (NSE) The Stock Exchange. and Mumbai. Business No of No of Per Profit Per Capital Reserves Interest & Bank Branches Employees Employee employee Surplus Income Deposits Investments ICICI 563 24479 905 10 22556 13784 165083 717547 HDFC 515 14878 758 7. Mumbai (BSE) National Commodity and Derivative Exchange (NCDEX) Multi Commodity Exchange (MCX) All the Settlement related activities for these exchanges are carried out through its Capital Market Division.39 5300 4475 55797 28394 AXIS/UTI 348 6553 1022 8. Fort Branch.56 573 190 2910 1350 Kotak Mahindra 78 DATA: 2005-2006 3597 352 4.
39 . Comparison of capital reserves and surplus and interest income of Axis bank and its competitors.The above doughnut clearly indicates that the branches of the Axis bank is increasing Business per employee of Axis bank and its competitors.
OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE The Bank has been able to turn in an impressive business performance and record good financial results for the fifth year in succession. encouraging.8%.3% in the current fiscal.Comparison of Deposits and investments of Axis bank and its competitors. External conditions have also been favorable with a growing level of foreign exchange reserves. owing to the efficacy of its business model which aspires to be customer-centric. The economic growth indices in the current year have been good and the GDP growth is expected to be around 8. therefore. Agriculture and Allied sectors are expected to grow at a rate of 2. The overall macro-economic prospects for 200607 are.2% indicative of industrial recovery and the services sector by 9. 40 . Non-food bank credit is expected to grow at 25. modest inflation inspite of spiraling global crude prices and the laying of institutional foundations for faster development of infrastructure. COMPETETIVE ADVANTAGES OF AXIS BANK: The Economic Survey of 2005-06 has affirmed that significant features of dynamic growth in recent years include a new industrial resurgence. pick-up in investment.1% for fiscal 2006. In order to maintain the GDP growth at over 8% in coming years and accelerate growth in industry. substantial investments will be required in infrastructure.
41 . real-time and on-line access for all types of transactions.Information technology is continuously leveraged in providing value added products and services as well as multiple-delivery channels to customers in a manner that is cost-effective and which offers the Bank’s customers easy. The availment of opportunities emanating from the upswing in the corporate credit cycle. sound treasury management. is solidly anchored in the strategy adopted by it. Maintenance of high standards of customer service. The sizeable network of branches. extension counters and ATMs has equipped the Bank with an impressive reach across the country and is supported by channels such as the Internet and mobile phone banking. as the Bank enjoys a first-mover advantage vis-à-vis other private sector banks in many of these centers. SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE: BUSINESS CONTINUITY CENTRE: UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC) In Bangalore which replicates the entire centralized database with a view to enable the Bank to run smoothly in case of any eventuality affecting the Bank’s Data Centre in Mumbai. despite a tightening of overall liquidity leading to a hardening of interest rates in the closing stages of the fourth quarter. is expected to sustain the momentum of growth of low cost deposits. Enhanced cost efficiency by leveraging on technology that is continuously upgraded. reflected the fact that the primary Goals of the Bank of increasing its market share in various businesses and improving its quality of earnings by enhancing its core income streams. Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously through WAN on the back-up database at the BCC. The key factors which contributed to the healthy performance of the Bank during the year were the Continued thrust on improvement in the quality of earnings through an emphasis on core income streams such as net interest income and fee based income. product diversification and internal control. The steady widening of this reach to smaller cities and towns. A focus on improvement in asset quality through rigorous credit and risk appraisal. The strong performance. including in district headquarters.
In addition to opening and disbursing more than 3000 Schematic loans every month. SERVICE BRANCHES The Bank’s Service Branches in the 8 major metros take care of centralized clearing activity.1500 crores per month on the payment front. handling multiple queries in about 7000 calls per day.000 Such loan accounts. RETAIL ASSETS MANAGEMENT GROUP The Bank’s Retail Assets Management Group (RAMG) is the operations hub of the entire Retail asset distribution structure. Handling more than one lakh cheques every day for outward and inward clearing. and handles the entire post – dated cheque presentation and several Kinds of repayments for all these accounts. ATM BACKEND CELL The ATM Backend Cell handles the entire cash management and reconciliation of balances pertaining to ATMs across the country and ends up tallying over four lakh Transactions by the end of the day.5000 crores per month on the collection front and about Rs. handling on an average about Rs.CENTRALISED PHONE BANKING CENTRE The Bank’s Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone. DATA CENTRE The Bank’s Data Centre in Mumbai. CENTRALISED COLLECTION AND PAYMENT HUB The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and Payment activity under the Bank’s Cash Management Services (CMS) across the country. It is a real time 24x7 setup which manages 270 products and services of the Bank with a database size of 1850 GB supporting on an average 42 lakh transactions per day 42 . the centralized IT powerhouse is like the central nervous system of the Bank. it is responsible for the maintenance of more than 100.
Bankers who work with commercial or corporate customers may be based in branches or may work from specialized area or regional offices. Most retail bankers work in high street branches. Typical work activities Responsibilities and work activities may vary between retail and corporate and commercial banking. Bankers may work as managers in high street branches providing operational support on a day-to-day basis. Banks operate in a fiercely competitive marketplace where change is common. JOB RESPONSIBILITIES OF A MANAGER Job description A banker is responsible for establishing and maintaining positive customer relationships. regional or head offices. CENTRALISED PROCESSING UNIT The Bank’s Centralised Processing Unit (CPU) is the backbone of the Bank. managing production and delivery of the entire range of deliverables to customers across the country within 24 – 72 hours from the time the customer opens the account. Products and services offered have to develop to satisfy the expectations and demands of customers and working with staff and customers to achieve targets has become a very major part of the role. or in more specialized posts in corporate or commercial departments at area. while some work in regional or head offices. The CPU currently handles about 8500 new accounts every day. planning and delivering effective sales strategies and monitoring the progress of new and existing financial products.to service over 42 lakh customer accounts and adding new customers @ 8000 per day. dealing with both private and corporate customers. 43 .
22 22.42 4560. assuming overall accountability for products and services.03 44 .889.Bankers who have area and regional responsibilities adopt a strategic role and. checking accounts and initiating action if they are overdrawn without arrangement or are in excess of agreed arrangements. • • • • • • • • • • MAJOR COMPETITORS AND THEIR MARKET SHARE: Total Market Cap Asset Name of the Bank ICICI BANK HDFC BANK AXIS BANK Net Sales Net Profit All values in Cr 99.994. Responsibilities for both retail and corporate and commercial bankers may include: • implementing the delivery of sales strategies and targets and motivating employees to meet these.998. such as consumer lending.071. visiting business customers and attending meetings and conferences with them and other professionals. usually delegate supervision of day-to-day operations to staff in branch outlets. establishing and maintaining effective relationships with new and existing customers.02 141.52 560.4 659. managing and supporting staff and facilitating appropriate continuing professional development (CPD).29 3.110. establishing their needs and advising on the suitability of services. submitting proposals to the credit department for approval. networking with appropriate professionals.388. whilst retaining overall accountability for service and product delivery. overdrafts.13 6. Representing the bank within the wider community.607. communicating.473. implementing and monitoring compliance with corporate standards and procedures. unsecured loans. current account transactions.941.45 22. credit cards and personal loans.22 39. processing data to produce accurate facts.141. where appropriate. evaluating new and renewal lending proposals. figures and reports.02 1.89 119. negotiating terms with customers and.
435.039.34 49.25 1.711.76 31.256.25 1.18 1.1 190.445.44 34.041.371.37 55.262.38 38.436.31 6.33 1.63 30.88 2.01 30.98 1354.624.899.987.866.18 5.188.002.KOTAK MAHINDRA YES BANK JK BANK FEDERAL BANK KARNATAKA 26.53 1.668.04 Comparison of these top 10 private banks : On the basis of their market Capitalization On the basis of their Total Assets: 45 .256.03 121.76 27.220.49 225.21 177.55 CENTURION BANK 6.06 INDUS IND 1.32 274.60 3.28 141.81 BANK 2.728.
On the basis of their Net Profit: On the basis of their Sales: 46 .
The Indian banking system. dilution of the government stake in public sector banks (PSBs). with one of the largest banking networks in the world. has witnessed a series of reforms over the past few years like the deregulation of interest rates. 47 .BANKING INDUSTRY 10 YEARS HENCE: A healthy banking system is essential for any economy striving to achieve good growth and yet remain stable in an increasingly global business environment. More autonomy to fix salary levels proportionate to performance. and the increased participation of private sector banks. Key banking reforms needed: Encourage voluntary consolidation among banks Allow public sector banks to fix salary levels proportionate to performance Permit banks to issue preference shares to raise capital. Indian banks (both public and private) have not only been keen to tap the domestic market but also to compete in the global market place. New foreign banks have been equally keen to gain a foothold in the Indian market. Offer Competitive compensation packages at all levels to improve employee productivity. The growth of the retail financial services sector has been a key development on the market front.
Scope of improvement includes: Diversification of markets beyond big cities. EXISTING PRICING AND PROMOTIONAL STRATERGIES: In the banking industry the pricing strategies is concerned with the rate of interest these banks offer to the customers on there investments and also the rate of interest they levy on the customers for different type loans. Economic growth.Strengths of the banking industry Regulatory systems. FIXED DEPOSITS INTEREST RATES: PERIOD INTEREST RATES ON DOMESTIC DEPOSITS (%) Interest Rates for Senior citizen 4 3 5 1 4 3 5 DEPOSITS Interest Rate on Deposits Below Rs 15 lakhs 4 3 5 Int Rate 15-50 Lakhs 7 days to 14 days 30 days to 45 days 15 days to 29 days 46 days to 60 days 48 . Human resources systems. infrastructure and labor inflexibilities. These also include service charges they charge on the customer for the services they offer. Technological advancement. High transaction costs. size of banks. Risk assessment systems Credit quality.
61 days to less than 3 months 3 months to less than 4 months 4 months to less than 6 months 6 months to less than 9 months 9 months to less than 1 year 1 year to less than 2 years 2 years to less than 3 years 3 Years to less than 5 years 5 Years upto 10 years 5.5 6 6 7 8 9 9 8 8 5.5 6 6 8 9 10 10 9 9 5.5 6 6 7 8 9 9 8 8 49 .
SAVING ACCOUNTS AND OTHER CHARGES:
defying the theory "the best quality will always sell". The awareness campaign titled ‘UTI Bank is now Axis Bank. and in survival. everything is the same except the name’.Source:www. has been created by O&M and is the brainchild of Sumanto Chattopadhyay. superior services. Branding is termed as a part of offering. BRAND NAME: UTI has officially announced the change of its name to ‘Axis Bank’.com PROMOTIONAL STRATERGIES: In early 1950's most of the markets were choking with surplus products on offer. 53 .utibank. In today's era with increasing competition. The emergence of Branding as a value in offering has kept many organizations leaders. is that not important enough to revisit Brand as a marketing offering (Product or Service). The brand can be associated with superior product. or easy access. created in the mind of customer and consumer of superior values that he or she perceives and ready to pay for. superior sales after services.
The campaign very much focused on the idea on the awareness of the bank changing its name to ‘Axis Bank’. It is a contemporary. the signages of the 600 or so branches will also change to reflect the new name. Television is given priority as it gives the maximum reach among the mass media channels. a multimedia campaign was unfolded on August 1 that will go on for the next few weeks. the change of name from UTI Bank to Axis Bank is precisely just a name change. It seeks to reassure customers that the change of name will in no way affect the services offered by the bank.500-odd ATM locations is also being used to convey the name change message. On the creative point of view. Everything else about the brand remains the same. And of course. the 2. but are identical in every other way. Axis is a strong name with an international aura to it. Some interesting innovations are planned in the print medium. Besides the mass media channels. This campaign will run on Television Outdoor Print Radio and other 360-degree media. On radio. BROADSHEET WAY: The first campaign that was featured was a false cover page for Mid-Day going the broadsheet way. the name change is being expressed in a slightly different manner. MARKETING INITIATIVES: On the marketing initiatives. in keeping with the nature of the medium. It is very much in keeping with UTI’s success story in the private banking arena.The decision to re-brand the bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand. LOGO DESIGN: The logo design of Axis Bank is based on the letter ‘A’.siblings whose names are different. universal and solid design that retains the burgundy color of the original UTI logo as a link to its heritage 54 . On the thought process the creative platform adopted for the name change is based primarily on twins -.
order or otherwise. of deposits of money from the public." As per Section 5(b) of Banking Regulation Act. whether directly or indirectly" 55 . certain provisions of the Banking Regulation Act are also applicable to the State Bank of India. 1949 a "Banking Company" means any company which transacts the business of banking in India. banking means the accepting. 1956 and includes a foreign company within the meaning of Section 591 of that Act. whether incorporated or not. which primarily transacts or has as one of its principal objects. any corresponding new bank. National Housing Bank Act. for the purpose of lending or investment. repayable on demand or otherwise. 1987 defines a housing finance institution as under: "Housing finance institution includes every institution. 1949. As per Section 5(d) of Banking Regulation Act.GOVERNMENT REGULATION IN BANKING: Banking Regulation Act. company means any company as defined in Section 3 of the Companies Act. 1987 Section 2(d) of the National Housing Bank Act. Any company which is engaged in the manufacture of goods or carries on any trade and which accepts the deposits of money from public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause. draft. the transacting of the business of providing finance for housing. a regional rural bank and any subsidiary bank. 1949 As per Section 5(c) of Banking Regulation Act. and withdrawals by cheque. 1949 . "Corresponding new bank" has been defined under clause (ee) of section 2 of the DICGC Act to mean a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 or 1980. 1949. As per section 51 of Banking Regulation Act.
for any purpose or under any scheme of arrangement by whatever name called monies in lump sum or otherwise. the carrying on of any class of insurance business. • the acquisition of shares. stock. conducting or supervising. whether in cash or kind. which is similar thereto. "non-banking financial company" means: . by way of subscriptions or by sale of units. as foreman. or other instruments or in any other manner and awarding prizes or gifts. managing.a financial institution which is a company. As per Section 45-I (f) of the RBI act. to persons from whom monies are collected or to any other person. bonds. of chits or kuries as defined in any law which is for the time being in force in any State. 1972. 56 . or any business. whether by way of making loans or advances or otherwise. under any scheme of arrangement or in any other manner. • • • • collecting. letting or delivering of any goods to a hirer under a hire-purchase agreement as defined in clause (c ) of section 2 of the Hire-Purchase Act. or lending Tiny manner. agent or in any other capacity. 1934 Section 2(d) of the National Housing Bank Act. 1987 defines a housing finance institution as under "Financial Institution" means any non-banking institution which carries on as its business or the financing. a non banking institution which is a company and which has as its principal business the receiving of deposits. of any activity other than its own. or disbursing monies in any other way.Reserve Bank of India Act. debentures or securities issued by a government or local authority or other marketable securities of a like nature.
the Bank also placed subordinated bonds of Rs. New initiatives such as Wealth Management will enable the Bank to advice and to cross- sell third party products to high net-worth customers. In this sense. On the successful conclusion of the GDR offering. Reinforcement of the international remittance business. In addition. The Bank continued to attract investor interest from domestic and foreign institutional investors.000 crores in the market in order to raise Tier II capital to the extent eligible.EXISTING MARKETING STRATERGIES TO GAIN UPPER MARKET SHARE: Going forward. 57 . The Bank is focusing on developing an asset structure that was sensitive to the importance of increasing the proportion of low risk weighted assets. the Bank will continue to derive benefit from the infrastructure created over the years and pursue a strategy of profitable growth through stronger corporate relationships and an accelerated retail customer expansion program me driven by the Bank’s multiple channels. the Bank mobilized Rs. in order that capital is more efficiently deployed. commencing with the first branch in Singapore. the Bank seeks to be protective of its capital.03 million). 1. CAPITAL MANAGEMENT The Bank believes in the continual enhancement of shareholder value by an efficient use of available capital in a manner that leads to a high return on equity. leading to a very visible increase in trading volumes and price. 1. syndication of debt and NRI business. will create opportunities for cross-border trade finance.122 crores (equivalent to US Dollars 257. and these include: Growth in credit to the SME and agriculture sectors that will be driven by a network of rural and semi urban branches supported by organizational reinforcement in the form of SME cells and agriculture clusters. An expansion in the overseas branch and representative office network. The Bank has already tied up with various banks and exchange houses in the Gulf for tapping the high-volume remittance business emanating from this region. The Bank continues to identify new thrust areas to sustain its growth.
The key driver underpinning the profitability of the retail banking business has been the Bank’s customer-centric vision. the Bank is in a position to adopt the Standardised approach for credit risk and it is strengthening the internal credit rating architecture and archiving the internal rating migration data to prepare for an eventual migration to the Internal Rating Based (IRB) approach. under both the Basic Indicator approach as well as the Standardised approach. The Bank is in readiness to calculate capital charge on operational risk. and has mapped its activities to the eight business lines defined in the Basel II Accord. where the constant endeavour is to introduce customer segments. Introduction of customized products and services to cater to the specific needs of different 58 .PREPAREDNESS FOR IMPLEMENTATION OF THE BASEL II ACCORD The Bank is in the process of identifying an appropriate software system and data management solution for a phased adoption of the Basel II framework in the area of credit risk. The Bank has also undertaken internal studies on several lines of business for an evaluation of the risk profile. the Bank has continued to provide a sustained thrust to retail banking through a continuously expanding network and a growing sales force with customer relationship skills. capturing of losses incurred and identifying key risk indicators (KRIs). In the first instance. manifested in the strategic interplay of product differentiation and innovation on the one hand customer segmentation on the other. RETAIL BANKING With a view to attaining an increasingly significant position in the burgeoning retail financial services sector in the country. that has enabled the distribution of a wide range of products to a fast expanding customer base.
and presently offers the largest available access to over 18. ATM: The Bank has also continued its earlier pioneering efforts in persuading other banks to participate in ATM sharing. based on alliances with other banks and multi-bank shared payment 59 .This has resulted in a substantial growth of retail banking business during 2005-06 The thrust on customer segmentation has been a strategic success. as evident from the strong business growth across various customer segments during 2005-06.000 ATMs in the country to its customers.
Networks. The Bank has also provided value additions on its versatile ATM machines. Hutch. The Bank has tied up with UTI Mutual Fund to launch a new service that will help customers of the Bank to subscribe as well as redeem UTI Mutual Fund schemes through the Bank’s nationwide network of 1.891 ATMs. as also mobile banking services and mobile refill facilities for Airtel. including LIC premium payment and telephone bill payments for service providers like MTNL and BSNL. The Bank’s future thrust is on: marketing approach product innovation risk management systems Financial Advisory Rigorously designed back-office processes contribute to the strength of the Bank’s retail lending strategy Wealth Advisory Services 60 . Orange and Idea cellular service providers.
During the year. 1.79 crores to Rs.61% from 27.337. driven by alliances with various banks and exchange houses in the Gulf region. The Bank has since received a license and set up a branch in April 2006 in Singapore.INTERNATIONAL BANKING The Bank continued to provide a business focus on tapping business from the NRI community by offering a wide range of banking.60 crores. the Bank has embarked on an active international expansion programme in key Asian markets.87 crores to Rs. the aggregate NRI deposits grew by 48. CORPORATE BANKING 61 .37% from Rs. investment and advisory services to them. the number of savings bank NRI accounts grew by 82.1. During the same period. 638. 295. Globalisation of financial markets across economies and the significant increase in international trade in recent years provides opportunities for the Bank to render banking and related services through a presence in overseas centers.90% from Rs. tax consultancy and investments in real estate. This Bank’s first overseas branch. 683. Keeping this in view. The accelerated growth. The Bank has also partnered with the Ministry of Overseas Indians to offer an Internet based electronic remittances portal to facilitate remittances from NRIs. The portal also provides information services relating to investments in financial markets.84 crores with the NRI savings bank balances growing by 115. is attributable to Initiatives that have focused on deepening of existing relationships and a simultaneous expansion of the customer base.018 to 49. The Bank has also obtained the necessary approval from the regulators in China for setting up a Representative Office in Shanghai and is now in the process of completing the related formalities for opening an office. both in terms of account acquisition and savings bank balances of NRI business.134.
The syndication and underwriting of corporate loan activities of the Bank took off during the year. channel Finance. In order to give an impetus to the SME segment and to agricultural lending. in order to provide convenient and low cost transaction services to the suppliers of milk to the Co-operative. Create backward and forward linkages for all players in the agriculture business chain so as to provide composite financing across the food chain. Management of public Rights issues. The Bank continued with the strategy of diversifying its customer base. In this direction 6 state-specific and 4 city-specific SME cells were set up.Corporate Banking offers various loan and fee-based products and services to large corporate. there was a significant organizational reinforcement by setting up SME cells Adopting a cluster-centric approach for agricultural lending in areas with rich potential for such activity. including deeper penetration in higher yielding segment. Placement Syndication. 9 agricultural clusters were formed which focused on agricultural lending. 62 . including setting up low cost rural ATMs at Anand. The Bank experimented with new delivery models for credit. Trusteeship services. and providing several other fee-based services like Capital restructuring. CAPITAL MARKETS The Bank’s Capital Markets business encompasses investing and trading in corporate debt and equity. In the area of agricultural lending. SMEs and to the agriculture sector. Such application of technology provides customer convenience as well as product innovation. The Bank will continue to: Open more rural branches as also set up agricultural clusters to boost its agricultural business. SMEs and agricultural finance segments.
3 laces. The Bank aims to be a significant player in the cards business. 63 . The Bank was the first Indian bank to introduce the travel currency card. Financial advisory skills with technical advisory skills by forming alliances. The card is issued in five currencies: U. Portfolio management services. which changes the way inward remittances. Canadian Dollar. The Bank also maintains an investment and proprietary trading portfolio in corporate bonds and equities. The Bank is also the first to introduce Remittance Cards.S. Future Strategies: Project advisory services with a focus on infrastructure and other core sectors. which is positioned as a convenience alternative to the travelers’ cheque. SAILIENT FEATURES: Today 14. Dollar. Capital market related services.6% of our customers are registered for mobile banking. Appraisals Advisory services. are sent to India. Australian Dollar. a foreign denominated pre-paid card. Depository related services. During 2005-06. Pound Sterling Euro on the VISA flag platform. The debit card base of the Bank grew to 40 lacs during the year from 30. foreign currency sales by the Bank through the travel currency card exceeded US Dollars 63 million.
UTI Bank is a pioneer in adopting new technologies in the banking sector. Direct remittances are facilitated via tie-ups with major Banks in the US. supporting customers became a challenging task. Rewards Card. agents and distributors. RECOMMENDATIONS TO THE COMPANY TO GAIN UPPER MARKET SHARE: UTI Bank was one of the first private banks to launch operations in the country in 1994. UTI Bank has the largest ATM network of its kind in India. UTI has a very large network of branch offices and extension counters across the country. An IT savvy bank. The growth of retail and consumer lending in India must be seen as arising from a strong growth in incomes amongst the middle class and the more affluent segments. Efficient service and timely support were the deciding factors for customers to remain loyal to any particular bank. leading to changes in consumer behavior. and constitutes the rationale for the growth in retail lending. Europe and South Asia. As the services stack expanded. it is likely to sustain over the medium term and beyond. which brought Customer Relationship Management (CRM) into sharp focus.084 POS terminals. CRM: Privatization opened up the Indian banking sector. BPO: 64 . a pre-paid Rupee card for corporate to facilitate quick payments to their employees. Using the latest technologies. as against 12. the Bank has installed 21. UK. after the Government of India passed a resolution in favor of privatization. As on 31st March 2006.067 POS terminals at the end of the previous year. allowing a large number of players to offer retail banking services in the country. With over 1700 ATMs. As the demographically induced shift is structural rather than cyclical. UTI Bank introduced quality services to enhance the banking experience of its customers.
www. www. By running their CRM infrastructure on an open.com 2.finance. Setting up a state of the art call center facility that could provide quality support to customers across the country became vital to further this goal.com 4.org 6. The bank has set the lead for the hundreds of BPOs and call centers in the country to follow. standards based platform . A dedicated response center would allow branch operators to divert all customers’ queries to the helpdesk number and focus on their core responsibilities instead. A failover and redundancy solution was required to guarantee high availability of services and ensure uninterrupted call traffic.com 5. www. Also. For handling large call volumes.india.moneycontrol. The bank was also looking to avoid a situation where customers would be put on hold for long periods of time. The bank wanted a solution that could accommodate growth over a long period of time. www.in 3. www.BPOs can achieve significant TCO reduction along with high performance and security.mart.google.rbi. a single window service with a populated knowledgebase would introduce a high degree of standardization in the replies given to customer queries.UTI Bank wanted to establish itself as a customer focused bank and carve a niche for itself amidst the widespread competition.banknetindia. The call center was expected to eliminate the load of routine queries that branch operators had to handle. BIBLIOGRAPHY: 1. www. the application infrastructure was also required to be perfectly scalable.co.utibank.com 65 . Conclusion UTI Bank has been turned into an Open Source believer after the success of its call center project.