PROJECT ON AXIS BANK

By Group A4 (MBA)

MICROANALYSIS

History of Banking Sector

Pre Independence Nationalization Liberalization

Apex Bank RBI

Commercial Banks
Public Banks Private Banks

Co-operative Banks Development Banks

Industry Trends

E-cheques Real Time Gross Settlement Electronic Funds Transfer Electronic Clearing Service Automatic Teller Machine Point of Sale Terminal Tele Banking Electronic Data Interchange Bank Rate Cash Reserve Ratio Inflation Money Supply (M3) Statutory Liquidity Ratio Repo Open Market Operations

Terms Related to the Banking Sector

MICROANALYSIS

Bank History

Established in 1994 as UTI Bank Was promoted by

Union Trust of India (UTI) Life Insurance Corporation (LIC) General Insurance Corporation Ltd. and its four subsidies

Came up with an IPO in 1998 Launched a co branded International Credit Card with MasterCard Started e-banking services in 2000 Got listed on London Stock Exchange in 2005 Name changed to AXIS Bank in 2007

PROMOTERS
% Stake
Administrator of the Specified Undertaking of the Unit Trust of India - (SUUTI) Life Insurance Corporation of India General Insurance Corporation of India The New India Assurance Company Limited National Insurance Company Limited

United India Insurance Company Limited

The Oriental Insurance Company Limited Indian Financial Institutions (IFIs) Mutual Funds Others (Individuals/Corporate Bodies/HUF/Trusts/Banks) FDI Route - GDRs Issue (2005, 2007 & 2009) Foreign Financial Institutions (FIIs) NRIs/OCBs/FBD/FB-DR/Foreign Bank/Foreign Nationals

CORPORATES ASSOCIATED
P J Nayak Chairman and CEO 2007 2009 Shikha Sharma Current CEO and MD appointed in 2009 Adarsh Kishore Non Executive Chairman

CURRENT POSITION OF THE COMPANY

3rd largest private sector bank and 9th largest overall 1042 Branches and 4474 ATMs (as on 30th June, 2010)

Market Cap. (` cr.) Net Interest Income ICICI Bank HDFC Bank Axis Bank Kotak Mahindra YES BANK 1,11,980.90 1,00,555.04 56,696.97 29,812.51 10,844.44 25,706.93 16,172.91 11,638.02 3,255.62 2,369.71 Net Profit Total Assets

4,024.98 2,948.69 2,514.53 561.11 477.74

3,63,399.71 1,83,270.78 1,80,647.87 37,436.31 36,382.50

SWOT

Strengths

Competitive and profitable banking franchise High level of services Knowledge of Indian Market Supported by various promoters Services updated by latest technology Competitiveness of cost of services Market capitalization is low Positioning UTI fraud Customer service Large retail and corporate market Wide scope in the rural market Competitive banking services Foreign Markets Established Governments Banks Established and growing MNC Banks Advent and growth of foreign Banks Inflation and rising lending rates

Weakness

Opportunities

Threats

FINANCIAL ANALYSIS
Growth
80 30,000,000

NET PROFIT

70

25,000,000
60 20,000,000 50

40
Growth 30

15,000,000 NET PROFIT

10,000,000 20 5,000,000 10 0 Mar ' 06 Mar ' 07 Mar ' 08 Mar ' 09 Mar ' 10 Mar ' Mar ' Mar ' Mar ' Mar ' 06 07 08 09 10

FINANCIAL HIGHLIGHTS
Profit after tax up 38.51% to ` 2514.53 crores Net Interest Income up 35.76% to ` 5004.49 crores Earnings per share (Basic) increased from ` 50.61 to ` 65.78. Proposed Dividend up from 100% to 120% Capital Adequacy Ratio stood at 15.80% as against the minimum regulatory norm of 9% Growth of bank at 38.51% and 69.50% against sector growth of 20.64% and 14.13% for the previous two years

MARKETING STRATEGY

Product
Banking and Savings Corporate Finance Investment and Insurance Loans and Borrowings

Place
Branches 1042 ATMS 4474

Price

Customers get value for money Lower fee charge Advertising Print Media Publicity Personal Selling Sales Promotions

Promotions

HR POLICIES
Training and Development of employees Monitoring and improving employee performance Compensation and Reward Administration Grievance Handling

DIFFERENTIAL STRATEGY
Service above others Customer based & service oriented Max coverage, innovative products and services Services provided

Remittance Card EMV based platinum credit card

CSR INITIATIVES
Axis Bank Foundation set up in 2006 Transfers 1% of net profit to the Foundation Supporting 41 NGOs 536 education centers covered 47055 children covered 24 SMEs exclusively focusing on MSMEs

AWARDS & SIGNIFICANT EVENTS

Business World ,Best Bank Fastest Growing Large Bank Awards Business Awards Today,Best Bank India's Best Bank, India's Fastest Growing Bank, India's Most Consistent Bank Best Bank 2009 MARCH 95 NDTV Profit Business Best bank Private Sector Leadership Awards 2009 DECEMBER 00

Date
DECEMBER93

Event
Registered office at Ahmedabad, head office at Mumbai. First branch of UTI inaugurated at Ahmedabad. Completes first profitable year. Bank opens 200th ATM, 2nd largest ATM network in the country. Deposit base for crosses ` 10,000 cr. bank

APRIL 94 ET Intelligence Group

Forbes Fab 50

The Best of Asia Pacific's Biggest Listed Company

Best New bank,Rank 1 Private Sector

NOVEMBER 01 JANUARY 02 MARCH 05 AUGUST 06 JULY 07

FE Best Banks Award

Banks 100th branch opens at Tuticorin, Tamil Nadu. Issue of Global Depository Receipts(GDR) Launch of Credit card. UTI turns to AXIS. AXIS Bank Platinum Card. launches

Talisma

Customer Appreciation Award 2009 Best Private Bank

D & B Best Bank Awards

Lafferty Award

Best Annual Report-India

MARCH 07

CONCLUSION
Axis Bank has shown substantial growth in the past few years. The change in name to have seemed to achieved its goal as the net profits and total incomes are growing way over the growth rate of the sector. It may not be long before Axis Bank overtakes HDFC Bank in terms of Net Income and Total Income to become the no. 2 bank in Private Sector in India.

THANK YOU