Jyoti Anand, PGFA1121

Submitted to Prof Moid Uddin Ahmad

Submitted by Jyoti Anand PGFA1121 PGDM-G-A-2011-13

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

COMPANY PROFILE
AXIS Bank is one of the fastest growing banks in private sector. The Bank operates in four segments, namely treasury, retail banking, corporate/ wholesale banking and other banking business. The treasury operations include investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account, and for customers and central funding. Retail banking includes lending to individuals/ small businesses subject to the orientation, product and granularity criterion. It also includes liability products, card services, Internet banking, automated teller machines (ATM) services, depository, financial advisory services, and nonresident Indian (NRI) services. The corporate/ wholesale banking segment includes corporate relationships not included under retail banking, corporate advisory services, placements and syndication, management of publics issue, project appraisals, capital market related services, and cash management services. The Bank's registered office is located at Ahmedabad and their Central Office is located at Mumbai. The Bank has a very wide network of more than 1622 branches. The Bank has a very wide network of more than 1600 branches (including 169 Service Branches/CPCs as on 30th June, 2012). The Bank has a network of over 10,000 ATMs spread across 1050 centres in the country, providing 24 hrs a day banking convenience to their customers. The 10,000th ATM was opened in Kerala. This is one of the largest ATM networks in the country. The Bank has five whollyowned subsidiaries namely Axis Securities and Sales Ltd, Axis Private Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis Mutual Fund Trustee Ltd. Axis Bank was incorporated in the year 1993 with the name UTI Bank Ltd. The Bank was the first private banks to have begun operations after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd, The New India Assurance Company Ltd, The Oriental Insurance Company Ltd and United India Insurance Company Ltd. In the year 2001, the bank along with Global Trust Bank (GTB) had a merger proposal to create the largest private sector bank, but due to media's issues both the banks withdraw the merger proposal.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

In the year 2003, the Bank was given the authorized to handle Government transactions such as collection of Government taxes, to handle the expenditure related payments of Central Government Ministries and Departments and pension payments on behalf of Civil and Non-civil Ministries such as defence, posts, telecom and railways. In December 20003, the Bank launched their merchant acquiring business. In the year 2005, the Bank raised $239.3 million through Global Depositary Receipts. They won the award 'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT Infrastructure, delivery capabilities and innovative solutions. In December 2005, the Bank set up Axis Securities and Sales Ltd (originally incorporated as UBL Sales Ltd) to market credit cards and retail asset products. In October 2006, they set up Axis Private Equity Ltd, primarily to carry on the activities of managing equity investments and provide venture capital support to businesses. In the year of 2007, the bank again raised $218.67 million through Global Depository Receipts. They opened 153 new branches during the year, which includes 43 extension counters that have been upgraded to branches and 8 Service branches/ CPCs. They also opened new overseas offices at Singapore, Dubai and Hong Kong and a representative office in Shanghai. During the year 2007-08, the Bank opened 143 new branches, taking the number of branches to 651 which included 33 extension counters that have been upgraded to branches. Also, they expanded overseas with the opening of a branch at the Dubai International Finance Centre. The Bank changed their name from UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other unrelated entities with similar name. During the year 2008-09, the Bank opened 176 new branches that include 12 extension counters that have been upgraded to branches taking the total number of branches and ECs to 835. During the year, they opened 831 ATMs, thereby taking the ATM network of the Bank from 2,764 to 3,595. Also, they opened a Representative Office in Dubai. In May 2008, the Bank established Axis Trustee Services Company Ltd as a wholly owned subsidiary company, which is engaged in trusteeship activities. In December 2008, they launched their new investment advisory service exclusively for High Net Worth clients. In January 2009, the Bank set up Axis Asset Management Company Ltd to carry on the activities of managing a mutual fund business. Also, they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual fund business.
Jaipuria Institute of Management, Noida

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Jyoti Anand, PGFA1121

During the year 2009-10, the Bank opened 200 branches taking the total number of branches Extension Counters (ECs) to 1,035. In March 209, 2010, they opened their 1000 branch at Bandra West, Mumbai. In September 2009, Axis Bank launched the private banking business in the domestic market, christened 'Privee' to cater to highly affluent individuals and families offering them unique investment opportunities. During the year, the Capital Markets SBU was restructured with the debt capital market business (hitherto a part of the capital markets) carved into a separate vertical. As a result, the Bank's Capital Markets SBU comprises equity capital markets (ECM) business, mergers and acquisitions and private equity syndication. In February 24, 2010, the Bank launched the 'AXIS CALL & PAY on atom', a unique mobile payments solution using Axis Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based payment service over IVR. During the year 2010-11, 407 new branches were added to the Bank's network taking the total number of branches and extension counters (ECs) to 1,390. Of these, 564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in metropolitan and urban areas. The Bank is present in all states and Union Territories (except Lakshadweep) covering 921 centers. The ATM network of the Bank increased from 4,293 to 6,270. During the year, the Bank also opened a Representative Office in Abu Dhabi. This was in addition to the existing branches at Singapore, Hong Kong and DIFC (Dubai International Financial Centre) and representative offices at Shanghai and Dubai. In March 7, 2011, the Bank incorporated a new subsidiary namely Axis U.K. Ltd. as a private limited company registered in the United Kingdom (UK) with the main purpose of filing an application with Financial Services Authority (FSA), UK for a banking license in the UK and for the creation of necessary infrastructure for the subsidiary to commence banking business in the UK.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

VISION & VALUES
VISION 2015:
To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology

CORE VALUES:
Customer Centricity Ethics Transparency Teamwork Ownership

Highlights: (2011-12)
             Profit after tax up 25.19% to `4,242.21 crores Net Interest Income up 22.17% to `8,017.75 crores Fee & Other Income up 22.33% to `5,058.66 crores Deposits up 16.31% to `220,104.30 crores Demand Deposits up 17.56% to `91,422.03 crores Advances up 19.21% to `169,759.54 crores Retail Assets up 35.34% to `37,570.33 crores Network of branches and extension counters increased from 1,390 to 1,622 Total number of ATMs went up from 6,270 to 9,924 Net NPA ratio as a percentage of net customer assets down to 0.25% from 0.26% Earnings per share (Basic) increased from `82.95 to `102.94 Proposed Dividend up from 140% to 160% Capital Adequacy Ratio stood at 13.66% as against the minimum regulatory norm of 9%

During 2011-12, The Bank continued to perform well, both in terms of business growth as well as the financial results reported. The business model of the Bank and the customer-centric branch banking model adopted by it has not only helped maintain existing relationships but has also resulted in new business and customer acquisition, both in the retail and corporate segments. In the backdrop of several negative factors in the environment, including the slow-down of the economy, tightness of liquidity and hardening interest rates, the Bank has performed well, as stated above, by leveraging upon its basic strengths: an infrastructure of branches and other channels created for maximum reach, a well developed retail franchise and a number of key corporate relationships.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

PRODUCT RANGE
Liabilities Products: These are deposit and fund based products. These products are the
liability for the bank as it has to pay certain percentage of interest on these deposits to the customer. The main liabilities products are:

Savings Account:- It includes a series of different kinds of savings account like;
Axis Bank's Easy Access Savings Account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit their requirements for a truly comfortable banking experience. Easy Access Savings Account gives them instant access to their money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of eclectic client base. Prime Savings Account is suited for upper class with a host of features and privileges as well as meets specific financial requirements. The Future Stars Savings Account is an exclusive account being offered for children inculcate the discipline of savings in children. This account will act like a piggy bank for the child where their money will be kept safe and earn interest as well. Women's Savings Account (an account that goes beyond logical boundaries) gives the women customer instant access to her money anywhere, anytime. With the Women's Savings Account, one can manage her money and her life. Furthermore Axis Bank's Women's Savings Account ensures that one has enough time for all the important things in life. Axis Bank's Senior Citizen Savings Account (fun doesn’t have to stop with age) has been designed keeping in mind the fact that a Senior citizen's banking requirements are wholly different and require special consideration.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

Pension Savings Bank Account from Axis Bank is specifically, designed for Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly different and require special consideration. Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organizations can devote all of their time to their noble motivations.

Current Account:- It includes;
Axis Bank's Azaadi Account is a savings account that doesn't require a minimum balance. It makes one experience a host of unparalleled features and heightened convenience. One qualifies for Azaadi if the sum total of all credits to his account does not exceed Rs 1 lac during the Financial year. A Resident Foreign Currency (Domestic) Account, RFC(D), with Axis Bank entitles you to maintain non-interest bearing current account in four major currencies (USD, EURO, GBP and Japanese Yen). There will be no ceiling on the balances held in the account. Cheque books denominated in USD or GBP or EURO or Yen will be issued on these accounts with 25 leaves. The cheques thereby branded as RFC (Domestic) Account will not be presented in clearing and will be payable only at the issuing branch.

Salary Account:- It comprises of;
Easy Access Salary Account under Salary power scheme is a special account offered to customers with regular direct salary credits coming into this account. Prime Salary account under which customers enjoys more benefit than Easy Access Salary Account.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

Axis Wealth Privileges: Exclusive premium service through Banking Privileges, Lifestyle privileges & Investment privileges, Access to Premium Banking branches and Dedicated Wealth Manager for all banking needs Defence Salary Account (Power Salute) is an account of the brave men and women who defend our nation. Especially for them, Axis Bank has created a salary account that understands their life in defence forces.

Third Party Products (Investment Product): Those products of third party which are
sold by banks;    Mutual Funds-- Axis Bank offers options from 12mutual fund companies Life Insurance-- Axis Bank has a corporate agency agreement with Max New York Life , one of the most reputed Life Insurance companies in India. General Insurance-- Axis Bank has a Corporate Agency partnership with Bajaj Allianz General Insurance Company to distribute General Insurance products.  The various General Insurance products available for sale at Axis Bank branches are:  Health Insurance  Motor Insurance  Jewellery Insurance  Personal Accident Cover  Home Insurance  Travel Insurance  Critical Illness  Business Advantage  Gold and Silver Mohur-- Certified Gold and Silver bars

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

Assets Products:- Those products which bring income for the bank; Loans: Home Loans- Axis Bank offers loans for land purchase so that buy plots and create one’s
own dream home the way he wants. It also provides home renovation loans that will help one refurbish your home without worrying about upfront costs. The attractive interest rates on land purchase loans as well as home improvement loans, and Axis Bank’s reputation for customer service make its housing finance products a great choice for customers.

Car Loans- Axis Bank offers uniquely tailored Car Loan products that take the pain and
hassle out of buying a car. Flexible, transparent, quick, and cost-effective, Car Loans put the joy back into owning a car.

Personal Loans- Axis Bank's Personal Loans offers loan for going on dream holiday, buying
the latest lifestyle gizmo, gifting lovely diamond ring, renovating house or just squash a temporary cash crunch.

Education Loan- Axis Bank's Study Power aims to provide the much needed financial
support to deserving students for pursuing higher professional or technical education in India and abroad. The education loan would be provided to those students who have obtained admission to career-oriented courses e.g. medicine, engineering, management etc., either at the graduate or post-graduate level.

Loans Against Property- Axis Bank's Loan Against Property gives loan against property.
Be it commercial or residential, one can also apply for this loan if he need funds to acquire new property. A take-over of existing loan with refinancing is also possible with Loan Against Property”

Loans Against Share- one can raise loan against his shares. Loans Against Securities- provides loan against securities.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

Cards:
Titanium Smart Traveler Credit Card Platinum Advantage Credit Card Visa Signature Credit Card Visa Infinite Credit Card Titanium Rewards Card Prepaid Cards My Money Card Gift Cards

Agri Business Loans:
Kisan Power Power Gold Arthia Power Agro Power

Foreign Exchange:
Travel Card Outward Remittances Foreign Currency Demand Drafts Foreign Currency Cash Foreign Currency Travelers’ Cheques India Travel Card Inward Remittances: AXISREMIT Online AXISREMIT Direct Money Transfer Operators - (Money Gram, Easy Remit, Express Money) Wire Transfers

Trade Finance Services:
Over the last few years Axis Bank has emerged as one of the leading banks in providing trade finance services, providing a gamut of products for both exports and imports. It serves a wide range of customers across varying industries, segments and regions.

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

Balance Sheet of Axis Bank

------------------- in Rs. Cr. -------------------

Mar '12 12 mths 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 413.20 413.20 0.00 0.00 22,395.34 0.00 22,808.54 220,104.30 34,071.67 254,175.97 8,643.27 285,627.78 Mar '12 12 mths 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) 10,702.92 3,230.99 169,759.54 93,192.09 3,583.67 1,395.12 2,188.55 70.77 6,482.93 285,627.79 449,976.11 64,895.87 551.99

Mar '11 12 mths

410.55 410.55 0.00 0.00 18,588.28 0.00 18,998.83 189,237.80 26,267.88 215,505.68 8,208.86 242,713.37 Mar '11 12 mths

13,886.16 7,522.49 142,407.83 71,991.62 3,426.49 1,176.03 2,250.46 22.69 4,632.12 242,713.37 429,069.63 57,400.80 462.77

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

Profit & Loss account of Axis Bank
Mar '12 12 mths Income Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses Net Profit for the Year Extraordionary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per share data (annualised) Earning Per Share (Rs) Equity Dividend (%) Book Value (Rs) Appropriations Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total 1,112.46 0.00 770.07 7,329.45 9,211.98 102.67 160.00 551.99 13,976.90 2,080.17 2,478.47 342.24 4,294.88 0.00 6,867.53 2,328.23 23,172.66 4,242.21 0.00 4,969.77 9,211.98 0.00 770.07 0.00 21,994.65 5,420.22 27,414.87

------------------- in Rs. Cr. -------------------

Mar '11 12 mths 15,154.81 4,632.13 19,786.94 8,591.82 1,613.90 2,406.59 289.59 3,496.55 0.00 5,734.55 2,072.08 16,398.45 3,388.49 0.00 3,427.43 6,815.92 0.00 670.36 0.00 82.54 140.00 462.77 836.95 338.84 670.36 4,969.77 6,815.92

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Jaipuria Institute of Management, Noida

Jyoti Anand, PGFA1121

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Jaipuria Institute of Management, Noida

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