A PROJECT REPORT ON REATAIL BANKING OF AXIS BANK SUBMITTED BY HENA AMBER (PGDFS) TO UNIVERSITY OF PUNE, PUNE IN PARTIAL FULFILLMENT

OF REQUIREMENT FOR THE AWARD OF DEGREE OF MASTER OF BUSINESS ADMINISTRATION SINHGAD BUSINESS SCHOOL, ERANDAWANE, PUNE.

DECLARATION
I, the undersigned, hereby declare that the Project Report entitled “RETAIL BANKING OF AXIS BANK” written and submitted by me to the University of Pune, Pune in partial fulfilment of the requirements for the award of degree of Master of Business Administration under the guidance of MAM “RACHANA PHADAKE” is my original work and the conclusions drawn therein are based on the material collected by myself.

Place : Pune Date: 15th MARCH’ 10. HENA AMBER(PGDFS)

GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “RETAIL BANKING OF AXIS BANK” which is being submitted herewith for the award of the degree of Master of Business Administration of University of Pune, Pune is the result of the original research work completed by “MISS HENA AMBER” under my supervision and guidance and to the best of my knowledge and belief the work embodied in this Project Report has not formed earlier the basis for the award of any degree or similar title of this or any other University or examining body.

Place : Pune Date: 15th March’10 NAME: RACHANA PHADAKE

EXECUTIVE SUMMARY
The project titled “ RETAIL BANKING OF AXIS BANK” was basically a research based project. The main motive behind doing this project is to  know the industry,  have an overview of retail banking,  know the different products available for retail banking by the bank, current situation and problems and their solutions. I have recommended :  Concentrate on increasing working capital ratio as it is decreasing year by year.  Company should increase advertisement tools.  Satisfy existing customers.  Create awareness about different products of retail banking. Research methodology used for this project is mainly observational method. The analysis is done by simple table format analysis for simplicity of understanding. The project is done in various phases: First phase: gathering information related to project. Second phase: analysis of information gathered. Third phase: findings and solutions.

TABLE OF CONTENT
S NO. 1 2 3 4 5 6 7 8 9 10 PARTICULARS Industry Profile Company Profile Review of Literature Objective of Research Research Methodology Analysis and Interpretation Findings Recommendations Limitation Biblography PAGE NO. 01-05 06-08 09-35 36 37 38-44 45 46 47 48

BANKING IN INDIA
Banking in India originated in the first decade of 18th century. The first banks were, The General Bank of India, which started in 1786, and Bank of

Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

Early history
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s.

The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center. The Bank of Bengal, which later became the State Bank of India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India. There were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The Swadeshi movement in particular inspired local businessmen and political figures to found banks of

and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

Nationalized Banks in India
Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.

List of Public Sector Banks in India is as follows:
             Allahabad Bank Andhra Bank Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Indian Bank Indian Overseas Bank Oriental Bank of Commerce Punjab and Sind Bank

 Punjab National Bank  State Bank of Bikaner & Jaipur  State Bank of Hyderabad            State Bank of India (SBI) State Bank of Indore State Bank of Mysore State Bank of Patiala State Bank of Saurashtra State Bank of Travancore Syndicate Bank UCO Bank Union Bank of India United Bank of India s Vijaya Bank

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

                    

Bank of Rajasthan Bharat Overseas Bank Axis Bank Catholic Syrian Bank Centurion Bank of Punjab Dhanalakshmi Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank IndusInd Bank ING Vysya Bank Jammu & Kashmir Bank Karnataka Bank Karur Vysya Bank Kotak Mahindra Bank SBI Commercial and International Bank South Indian Bank United Western Bank UTI Bank YES Bank

AXIS BANK
Axis bank was the first of the new banks to have begun its operations in 1994, 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 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. The Bank today is capitalized to the extent of Rs. 403.63 crores with the public holding (other than promoters and GDRs) at 53.72%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 896 branches and Extension Counters (as on 31st December 2009). The Bank has a network of over 4055 ATMs (as on 31st December 2009) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The banks have strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

Promoters
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each. SUUTI - Shareholding 24.09% Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing obligations and commitments to the investors, which it will uphold.

Board of Directors
The members of the Board are : Dr. Adarsh Kishore Smt. Shikha Sharma Shri M. M. Agrawal Shri N.C. Singhal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Non-Executive Chairman Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director Director

RETAIL BANKING

AN INTRODUCTION

“Retail banking is typical mass-market banking where individual customers use local branches of larger commercial banks. Services offered include: savings and checking accounts, mortgages, personal loans, debit cards, credit cards, and so” Retail banking is, however, quite broad in nature - it refers to the dealing of commercial banks with individual customers, both on liabilities and assets sides of the balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages, loans (e.g., personal, housing, auto, and educational) on the assets side, are the more important of the products offered by banks. Related ancillary services include credit cards, or depository services. Retail banking refers to provision of banking services to individuals and small business where the financial institutions are dealing with large number of low value transactions. This is in contrast to wholesale banking where the customers are large, often multinational companies, governments and government enterprise, and the financial institution deal in small numbers of high value transactions. The concept is not new to banks but is now viewed as an important and attractive market segment that offers opportunities for growth and profits. Retail banking and retail lending are often used as synonyms but in fact, the later is just the part of retail banking. In retail banking all the needs of individual customers are taken care of in a wellintegrated manner. Today’s retail banking sector is characterized by three basic

characteristics:  Multiple products (deposits, credit cards, insurance, investments and securities).  Multiple channels of distribution (call center, branch, internet).  Multiple customer groups (consumer, small business, and corporate).

Scope for Retail Banking in India
 All round increase in economic activity.  Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and this is an opportunity to market Retail Banking.  India has 200 million households and 400 million middleclass population more than 90% of the savings come from the house hold sector. Falling interest rates have resulted in a shift. “Now People Want To Save Less And Spend More.”  Nuclear family concept is gaining much importance which may lead to large savings, large number of banking services to be provided are day-by-day increasing.  Tax benefits are available for example in case of housing loans the borrower can avail tax benefits for the loan repayment and the interest charged for the loan.

Challenges to Retail Banking in India

 The issue of money laundering is very important in retail banking. This compels all the banks to consider seriously all the documents which they accept while approving the loans.  The issue of outsourcing has become very important in recent past because various core activities such as hardware and software maintenance, entire ATM set up and operation (including cash, refilling) etc., are being outsourced by Indian banks.  Banks are expected to take utmost care to retain the ongoing trust of the public.  Customer service should be at the end all in retail banking. Someone has rightly said, “It takes months to find a good customer but only seconds to lose one.” Thus, strategy of Knowing Your Customer (KYC) is important. So the banks are required to adopt innovative strategies to meet customer’s needs and requirements in terms of services/products etc.  The dependency on technology has brought IT departments’ additional responsibilities and challenges in managing, maintaining and optimizing the performance of retail banking networks. It is equally important that banks should maintain security to the advance level to keep the faith of the customer.  The efficiency of operations would provide the competitive edge for the success in retail banking in coming years.  The customer retention is of paramount important for the profitability if retail banking business, so banks need to retain their customer in order to increase the market share.

 One of the crucial impediments for the growth of this sector is the acute shortage of manpower talent of this specific nature, a modern banking professional, for a modern banking sector. If all these challenges are faced by the banks with utmost care and deliberation, the retail banking is expected to play a very important role in coming years, as in case of other nations.

RETAIL BANKING OF AXIS BANK
AN OVERVIEW OF THE PRODUCT 1. ACCOUNTS Easy Access Savings Account Possessing a range of unmatched features, it has been devised to better suit the convenience of eclectic client base of bank. Features:  At Par-cheque.  ATM Facility.  Tele-banking.  iConnect i.e. Internet Banking.  Mobile Banking.  Free Anywhere Banking facility.  Quarterly statement of account.  Free Monthly E-Statement.

One can avail of all these services with a minimum quarterly average balance of Rs5,000 in metro or urban centers, and Rs2,500 in semi urban centers and Rs1,000 in rural centres. Senior Privilege Because life begins at sixty Eligibility: Savings Bank customers with 60 years of age or above as on the date of account opening. Features:  Dedicated Relationship Managers.  Free At-Par Cheque book.  Free International VISA Debit Cards for primary and joint account holders.  Free Monthly Statement of Accounts and Free Passbook.  Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank Branches.  Free Inward Remittances.  Free Outward Remittances once a year.  Faster credits to foreign cheques providing you prompt availability of funds remitted by your near and dear ones abroad.  Cheque pickup and Cash delivery services.  Anywhere Banking.  Telebanking.  Free Mobile Banking.  iConnect.  Customised Loan Offerings.

 Complimentary Financial Planning.  Silver Health - Medical Insurance for Senior Citizens. Smart Privilege Account (For the woman of today) In today's busy world it's tough being a working woman. Right from shuttling between a job and family to taking care of her finances she has to be on her heels all the time. Keeping this ideal in mind, Axis Bank have designed a savings account best suited for the woman of today. Features:  Jewellery Insurance on Debit Card.  Dedicated Relationship Manager.  Zero Balance Minor Account.  Round-the-Clock access through ATMs.  Anywhere Banking.  At-par cheque facility.  Demand Draft issued.  Monthly Account Statement.  Additional discounts on loans.  Financial Advisory Services.  Discount on Retail Purchases. Trust/NGO Savings Account Thoughtful banking for people who spend their lives thinking of others 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 organisations can devote all of their time to their noble motivations. Features:  A Savings Account for Trust with a concessional Average Quarterly.  A multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever bank are present.  Free Anywhere Banking across all Branches and Extension Counters and over all ATMs.  Free Demand Drafts or Pay Orders as and when required to remit funds.  Free collection of cheques at outstation locations.  Monthly Statement of Account delivered at doorstep.  Facility for collecting donations in account through our network of Branches and Extension Counters across the country, as well as through iConnect - Internet Banking facility.  Monthly statement of account.  Free Internet Banking facility.  Free Demat account.  Assistance for Foreign Contribution (Regulation) Act accounts for receiving donations from abroad.  Free collection of cheques.  Doorstep banking services. Zero Balance Savings Account

Save at Zero Saving Money is now easier Features:  No Average Quarterly Balance requirement.  Free International Debit Card with an Accidental Insurance cover up to Rs2 lakhs* (charges for the primary holder are waived).  Free mobile banking facility.  Access through more than 675 branches and more than 2800 ATMs.  At-Par cheque facility with the clearing limit of Rs 50,000.  24x7 Telebanking & Internet banking.  Free quarterly statements. Salary Power The complete financial solution Salary Savings Account is not only a convenient way to manage salaries (across various centres, range of value added benefits. Features:  Anywhere banking.  Cheque books.  International ATM-cum-DEBIT cards.  Computerised statements.  Joint Account facility.  Demand drafts. through our centralised database), but also provide employees with a

 Overdrafts facility.  Outstation cheques.  Demat accounts.  Financial advisory services.  Power loans.  Optional Gold Debit Card.  Credit cards.  Online Trading.  Built-in-Insurance schemes.  Internet Banking.  Telebanking.  Mobilebanking.  Fund Transfer.  Meal Card.  Gift Card. Power Salute Salute to the defence forces Defence Salary Account from Axis Bank is a product designed to show appreciation to defence force work. Features:  At-par Cheque Facility.  Additional Debit Card.  Financial Advisory Services.  All the features of SALARY POWER SAVING ACCOUNT.

2. DEPOSITS Fixed Deposits Safety, Security and Growth Axis Bank offers simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000. One can make additions to deposit in multiples of Rs 1,000 each. The tenure of your deposit must be a minimum of 6 months. Different types of deposits are: a. Reinvestment Deposits: Here the interest accrued to deposit at the end of each quarter is invested along with the principal. The tenure of deposit must be a minimum of 6 months. At the end of the quarter, the interest and the principal are both rolled over, and the interest is calculated on the total sum. Income tax is deducted at source. b. Automatic Rollover: Here there is facility for automatic rollovers on maturity (for both the principal and interest). One can select this option in the Account Opening Document (AOD). The options available are: * Rollover only Principal: Only the principal amount will be rolled over. The interest will be either credited to designated account or paid out. * Rollover Principal and Interest accrued in Reinvestment Deposit:

This will rollover both the deposit and the interest accrued for the same tenure at the interest rate applicable on the maturity date. Withdrawals : All encashments or withdrawals of Fixed Deposits can only be made at the branch where the deposit was booked. Recurring Deposits Power of compounding Features :  Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter.  Transfer of Accounts  The amount of installment once fixed, cannot be changed .  Installment for any calendar month is to be paid on or before the last working day of the month. Where there is delay in payment of installment, one can regularise the account by paying the defaulted installment together with a penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a month will be treated as full month for the purpose of calculating the penalty. Encash 24 The Encash 24 (Flexi Deposit) gives the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to Savings Account providing following unique facilities:  Maximum Returns:

As soon as the balance in Savings Account crosses over Rs 25,000, the excess, in multiples of Rs 10,000 will be transferred automatically to a higher interest earning Fixed Deposit Account. The maturity of fixed or term deposits formed as a result of transfer of money from the Savings Bank account will be for a maximum period of 181 days and the interest will be calculated on simple interest rate basis.  Maximum Liquidity: The money parked in Fixed Deposits as a result of the above mentioned sweep out from your Savings account can be easily accessed by issuing a cheque, withdrawing through ATM etc. This amount is automatically reverse swept from the most recently formed Fixed Deposit in units of Rs 5,000 to the Savings account whenever the balance in your Savings account falls below Rs 25,000. The amount broken from Fixed Deposit will earn interest rates at the applicable rate for the period that the deposit was held with the Bank. The remaining amount of Fixed Deposit will continue to earn the contracted rate of interest.  Auto Renewal: On maturity of linked Fixed Deposit, the Bank will automatically renew it for a maximum period of 181 days. Tax Saver Fixed Deposit In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006. The salient points of the scheme notification are; (a) Fixed tenure without premature withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue

a Fixed Deposit Receipt that shall be the basis of claiming tax benefit. (e) Term deposit under this scheme cannot be pledged to secure a loan.

3. LOANS
Personal Loan Quick and easy personal loans Features:  Loans are available from Rs 1 lac to Rs 20 lacs.  Repayment tenures from 12 to 60 months.  Attractive interest rates.  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, personal or home loan.  Zero balance SB account facility for personal loan customers. Home Loan Quick and easy home loans Features:  Attractive interest rates.  Balance Transfer facility.  Doorstep service.

 Nil Prepayment charges. Car Loan Quick and easy car loans Features:  Loan value calculated as per the on-road-price of the vehicle.  Attractive interest rates.  LTV of upto 85% of the on-road-price on selected models.  Loans available for salaried and self employed individuals, proprietorships and partnership firms.  Special schemes for Axis Bank Salary accountholders.  No income proof schemes available.  Loans offered from Rs. 1 lac onwards.  Loans tenure from 1 year to 7 years. Study Loan High Study Loan Higher education within your reach AAxis Bank's Study Power aims to provide financial support to deserving students for pursuing higher professional or technical education in India and abroad. The loan would be provided to students who have obtained admission to career-oriented courses eg, medicine, engineering, management etc., either at the graduate or post-graduate level. Quantum of Loan: The quantum of finance under the scheme is capped at Rs 10.00 lacs for studies in India and Rs 20.00 lacs for studies abroad, which would cover

tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs 50,000. Margin: No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin for studies within India and 15% for higher studies overseas.

Consumer Power Easy and affordable consumer loans Axis Bank's Consumer Power scheme will help you acquire the consumer durables you need. A new TV, a washing machine, a refrigerator or an AC... the possibilities are endless. Terms : One can apply for as little as Rs 25,000, or as much as Rs 2 lacs. The maximum loan amount cannot exceed 85% of the cost of the durable, or 12 times your net monthly salary (or equivalent of net annual income for selfemployed persons), whichever is lower. You are charged a competitive interest rate, and you can choose to repay your loan in 12, 24 or 36 Equated Monthly Installments. If you are a salaried employee, your Equated Monthly Installments will be collected directly from your employer under the checkoff facility. For others, post-dated cheques will be collected

Loan Against Shares  Individuals are only eligible to apply.

 Overdraft facility against single and combination of scrips.  Interest charged on actual amount utilised - no EMI or post dated cheques required.  Shares can be pledged from any Depository Partcipant across the country.

Asset Power (Loan Against Property) Your property now equals ready cash Features:  Attractive interest rates .  Balance Transfer facility available with additional finance.  Doorstep service.  You can avail the following four products under Asset Power.  Loan against property – Residential,  Loan against property – Commercial,  Loan for purchase of commercial property,  Take-over of existing loan with additional refinance (Balance Transfer).  Lease Rental Discounting (LRD). Loan Against Security

Unlock your financial assets  Overdraft against mutual funds.  Individuals are only eligible to apply.  Maximum limit upto 50% of valuation.  Overdraft facility against more than 300 schemes.  Overdraft tenure of 12 months.  Loan or overdraft against NSC or KVP or LIC policy.  Option to either borrow lump sum or withdraw as and when required.

4. CARDS CREDIT CARDS
Platinum Advantage Credit Card Platinum Privileges:  Highest Level of Security: The Platinum Chip offers clear authentication of credit payments combined with easy fraud detection. The chip cannot be duplicated, ruling out counterfeiting and skimming. This makes your card safer and secure than any other card in India.  25% cash back on Movie ticket bookings.

 5% cash back on Dining at all restaurants.  5% Savings on Fuel Spends.  Comprehensive Insurance Cover.

Easy Platinum/Gold Credit Card A Credit Card for every wallet! Benefits on your Easy Platinum/Gold Credit Card:  Guaranteed Approval.  Axis Bank Easy Credit Card is 100% assured.  Easy Documentation.  Lower Interest Rate of 1.95% p.m  Fast Delivery of the Card  Credit Limit as high/ low as you want  Higher Cash Withdrawal from Day One  *Free credit period of up to 50 days  Fuel Surcharge waiver of 2.5% at all Petrol Pumps.

Silver Credit Card Sheer Surprises coming your way Exclusive Benefits:

 Plus point Rewards.  E-Shops Cards.  Comprehensive Insurance Cover.  Mobile Alerts.  Global Acceptance.  Interest Free Period.  Revolve Period.  Balance Transfer.  Cash Advance Facility.  Dial A Draft.  Auto Debit Facility.  EMI Facility. E- SHOP CARDS MAKING YOUR ONLINE SHOPPING MORE SECURE A virtual credit card that allows you to shop online securely without divulging your credit card details. CORPORATE CREDIT CARDS AN EXPENSE MANAGEMENT SOLOTION

Axis Bank's Corporate Card offers the best travel and expense management solution to corporates with global acceptance and customized solutions powered by VISA. Axis Bank Corporate Card comes with two liability options:

1. Corporate Liability: Corporate Liability Corporate Cards are an effective way of managing travel policies and negotiating preferential terms with key suppliers. These cards are issued after credit assessment of the corporate; who in turn defines the limit on individual cards. The corporate bears the liability for the entire outstanding amount on the cards. The payment is made directly to the Bank once a month instead of multiple payments to individual employees/suppliers. Exposure risk of the Corporate is mitigated by the fact that the card is a charge card wherein the full payment is to be made at the end of each month with no revolve allowed on the outstanding. 2. Individual Liability: Individual Liability Cards based on the same lines as the personal Credit Cards are an effective way for the employees to keep their personal and official expenses separate while at the same time simplifying the reimbursement process. Individual employees are assessed for assignment of credit limit on each card and are solely liable for the payment of spends done on the card.

DEBIT CARDS Priority Platinum Chip Debit Card The benefits of Priority Platinum Chip Debit Card includes:

 Exclusively Designed Welcome Kit.  Free Unlimited Domestic and International ATM Usage.  Higher Transaction Limits.  Chip-enabled Card Providing Added Security.  Enhanced Insurance Coverage.  Special Offers.  Rewards Programme.  24-Hour Emergency Helpline.  Customer Service Contact.

Priority Debit Card The Priority Banking Debit Card is an International Visa Debit card meant exclusively for Priority Banking customers. It comes with a host of enhanced benefits, which include:  Free usage at all Visa ATMs.  Zero Fuel Surcharge.  Instant Identification.  Higher Transaction Limits.

 No Issuance Charges.  Free Add-on Card.  Enhanced Insurance Coverage.

Classic Debit Card Easy access to your account, no matter where you are A deposit access program, the Debit Card redefines convenience. Apart from being an ATM (Automated Teller Machine) Card used for withdrawing cash, it also enables you to shop and make cashless purchases. You can use the card to make payments at shops, department stores, restaurants, petrol pumps and many more outlets in India and overseas. Gold Debit Card Earn while you shop The benefits of Axis Bank Gold Debit Card include :  Flexibility of usage.  Worldwide reach.  Reward program.  Zero Fuel Surcharge.  Special offers and discounts at merchant establishments on card usage.  Additional safety and enhanced insurance.  Enhanced limits for cash withdrawal.  24-Hour Emergency Helpline.  Customer Service Contact.

Gold Plus Debit Card Exclusive card for exclusive you The benefits of Axis Bank Gold Plus Debit Card include:  Instant identification.  Flexibility of usage.  Worldwide reach.  Zero Fuel Surcharge.  Special offers and discounts on card usage.  Access to Airport Lounges.  Reward program.  Additional safety and enhanced insurance.  Enhanced limits for cash withdrawal.  24-hour Emergency Helpline.  Customer Service Contact. Business Gold Debit Card Exclusive value deals for great business savings The benefits of Axis Bank Business Gold Debit Card include:  Instant identification.  Flexibility of usage.  Worldwide reach.  Zero Fuel Surcharge.

 Special offers and discounts on card usage.  Reward program.  Additional safety and enhanced insurance.  Enhanced limits for cash withdrawal.  24-hour customer service.  Customer Service Contact.

5. INVESTMENTS
Mohur Gold Axis Bank brings to you Mohur Gold coins/bars in the purest form! Made in Switzerland, Mohur Gold coins/bars carry the Assay certification of being 24 carat, 99.99% pure! It comes to you in a specialized packaging that is tamper proof so that its purity is preserved. Available in 5 gms, 8 gms, 10 gms, 20 gms & 50 gms, it is on offer in select branches of Axis Bank. Online Trading Investing and trading @ click of a mouse Axis Bank in alliance with Geojit Financial Services now offers you an Online Trading Account. Trade from the comfort of your home or office either through the Internet or the Phone. This service provides you with an integrated Savings Bank Account, Demat Account and an Online Trading Account to give you a convenient and paper free trading experience. Mutual Funds

Invest smartly Facility provided:  As Axis Bank Financial Advisory team, we adopt a strong research driven recommendation model to help you choose the best funds based on qualitative and quantitative parameters.  Apart from this, a dedicated Relationship Manager can also be assigned to you to ensure that your investment requirements are taken care of, smoothly and efficiently. Our advisors understand your profile and lead you through a structured financial planning process to devise financial solutions best suited to you. The advisors will also help you choose the right investment products in line with your investment goals.  We offer a unique 'One Page Portfolio Snapshot' report across investment products to our customers investing in Mutual Funds. This report can be viewed through our Internet Banking module. Demat Account Axis Bank is a registered member (Depository Participant) of NSDL. In this system, physical security holdings are converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first depository. You can avail of all the depository-related services by just opening an account with NSDL through Axis Bank. Tax Saving Investments When investing for tax, invest in the right way

Instrument Life Insurance

Benefit One should consider a life insurance cover, especially if there are dependents and/or there will be an additional member in the family soon. One should look at an insurance cover, which could initially be a basic term cover (which would be available at a lower premium rate, considering the age). Postmarriage, one can go in for another policy that can provide for the enhanced requirements of family.

Section under which benefit is eligible

tax

Amount paid upto Rs.1,00,000 as premium of life insurance policy is eligible for deduction under Section 80(C). Proceeds or withdrawals from life insurance policies are exempt from tax under Section 10 (10D). Maximum possible deduction available is Rs.30,990

Child Plans Child Plans are instrumental in building a corpus for the child's future needs like education, marriage, setting up a career, etc.

Amount paid upto Rs.1,00,000 as premium of life insurance policy is eligible for deduction under Section 80(C). Proceeds or withdrawals from life insurance policies are exempt from tax under Section 10 (10D). Maximum possible deduction available is Rs.30,990 Amount paid upto Rs.15,000 as premium of health insurance policy is deductible under Section 80(D). An additional deduction of Rs.15,000/- is allowed if premium is paid for medical insurance of parents. If parents are senior citizens, then the deduction applicable is Rs.20,000. So maximum

Health Insurance Plan

Health insurance is extremely important for all individuals to protect themselves from the financial burden of a medical emergency.

possible deduction available is Rs. 35,000. Mutual Fund Equity Linked Saving Scheme One can opt for an equity- Investments made under linked savings scheme for the Equity-Linked Saving equity portion. Schemes are eligible for deductions under Section 80(C). The limit under this section is Rs.1,00,000. The maximum possible deduction available is Rs.30,990. Investments in diversified equity schemes are not eligible for tax benefit.

Mutual Fund Schemes

6. OTHER SERVICES Apart from above services there are various other services also which axis bank provides. They are:  Insurance services for LIFE, HEALTH, MOTOR, JEWELLERY, PERSONAL ACCIDENT, HOME, CRITICAL ILLNESS.  Payment facility by BILL PAY, ELECTRONIC CLEARING SERVICES, VISA MONEY TRANSFER, TAX E-PAYMENTS, DIRECT TAX PAYMENT, PENSION DISBURSEMENT.  Mobile Re-Fill.  Locker.  Online Shopping.  IPO SMART.  E-Statement.

Hence these are various products of AXIS BANK available for Retail Banking.

OBJECTIVES OF THE RESEARCH
For a successful research, defining the objective is very important because it makes clear for the researcher the problem and the ways to find the solutions for it. This project was carried to ascertain the Retail Banking Operations of AXIS BANK. Following are the objective of research:  To know the scope of Retail banking of AXIS BANK.  To analyze and identify the potential scope of improvement for Axis bank in Reatail banking.

 To know peoples perception about the products of Axis bank in Retail banking.  To study and compare the performance of Axis Bank Vs Competitors in Retail banking.  To identify the problems and solutions of Reatil banking of Axis bank.

RESEARCH METHODOLOGY
Research may be defined as the research for knowledge through an objective. It is a way to systematically solve the research problem. It includes the various steps that are generally adopted by a researcher. I have adopted the research design. RESEARCH DESIGN A Research design is the specification of the method and procedures for acquiring the information needed. DATA COLLECTION

There may be different types of information and data. Some of the information may be published or unpublished, complete or uncomplete, reliable or unreliable, biased or unbiased, primary or secondary data. TOOLS FOR ANALYSIS Statistical Tools: Graphs and Ratio analysis. Primary data: Market survey. Secondary data: Company records , Websites. This research is performed mainly by taking help of company’s records, annual reports, official websites through internet.

ANALYSIS AND INTERPETATION

2009 CURRENT ASSETS, LOANS AND ADVANCES LESS: CURRENT LIABILITIES AND PROVISIONS 3745.14

2008 278451

2007 1892.07

2006 1679.98

2005 2071.38

9947.66

7556.90

5873.80

4051.03

1828.68

TOTAL NET WORKING CAPITAL

(6202.52)

(4772.38)

(3981.73)

(2371.05)

242.70

Interpretation: Here we can see that the current liabilities of the bank is very high but on the other hand bank don’t have enough assets so the result is Working Capital of the Bank is decreasing year by year which is not a good sign for the bank. Its shows the bank don’t have a enough money to pay their day to day expenses. WORKING CAPITAL TURNOVER RATIO YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation: The working capital turnover ratio is used to analyze the relationship between the money used to fund operations and the sales generated from these operations. In a general sense, the higher the working capital turnover, the better because it means that the company is generating a lot of sales compared to the money it uses to fund the sales. In the case of AXIS BANK working capital turnover ratio is negative in most of the year only in the year 2004-05 is a positive as well as high. So its shows the bank has used a more funds in compare to generate sales which is not show a good sign for bank. RATIO CALCULATED 7.92 (12.1) (1.14) (1.46) (1.98)

PROFITABILITY RATIOS: OPERATING MARGIN YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation: The data shows that Operating profit margin is increasing which is good for the bank. GROSS PROFIT MARGIN YEAR RATIO CALCULATED 2004-2005 23.23 2005-2006 23.88 2006-2007 19.79 2007-2008 21.44 2008-2009 23.31 Interpretation: Here we can see that the there is no much up and downs in Gross profit margin of AXIS BANK but in the year 2007-08 Gross Profit Margin has increased from 19.79 to 21.44, it’s a 8.43 % growth in gross profit margin of bank that shows the and also same in the case of year 2008-2009, which shows that the performance of bank is increasing which is a good sign for bank. NET PROFIT MARGIN RATIO CALCULATED 26.77 26.45 21.84 23.25 28.31

YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation:

RATIO CALCULATED 14.33 13.47 12.01 12.22 13.31

Net profit margin of AXIS BANK is not up to mark. After the year 2004-05 to 2007-08 it is continuously decreasing which is a major issue of concern for bank. In year 2008-09 there is only a slight change in margin. MANAGEMENT EFFECTIVENESS RETURN ON ASSETS YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009
Year Calculated Ratio

RATIO CALCULATED 1.21% 1.18% 1.10% 1.24% 1.28%

Interpretation: Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings. In the case of AXIS BANK ROA is decreasing from the year 2004-2005 to 2006-07 but after the year 2006-07 it has increased so we can say that previously the bank was not utilize their assets efficiently but now the bank is doing which may be a good sign for bank in future.

EARNING PER SHARE (RS) YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 RATIO CALCULATED 11.83 17.41 23.40 29.94 50.57

Interpretation: Earning per share is increasing year by year which is a good sign for an investors of axis bank it shows that an investor can invest in AXIS Bank to get good profit. LEVERAGE RATIOS DEBT EQUITY RATIO YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation: The debt equity ratio is calculated to measure the extent to which debt financing has been used in business. It indicates what proportion of equity and debt the company is using to finance its assets. As a generaL rule there should be a mix of owner fund and outside fund. The AXIS BANK is having high debt equity ratio in the year 2004-05 and 2006-07 its means the bank was very aggressive in financing its growth with debt. RATIO CALCULATED 13.17 13.97 17.32 9.99 10.89

FIXED ASSET TURNOVER RATIO YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation: Fixed assets are used in the business for producing goods to be sold. The effective utilization of fixed assets will result in increased production and reduced cost. Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficiently utilized. In the case of AXIS BANK the fixed asset turnover ratio is continuously increasing from the year 2005-06 to 2007-08 and in the year 2008-09 it was very high. It reflects that bank was utilizing their assets in a efficient manner. LIQUIDITY RATIO CURRENT RATIO YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation: Current ratio indicates the short term financial soundness of the company. It judges whether current assets are sufficient to meet the current liabilities. The company must be able to meet its current obligations out of the current RATIO CALCULATED 1.13 0.41 0.03 0.03 0.03 RATIO CALCULATED 3.01 4.00 4.97 6.32 7.78

assets. The standard current ratio is 2:1 it means the company should have such total current assets which are twice of their current liabilities but in the case of AXIS BANK the current ratio does not match up with standard ratio. And it is not increasing continuously year by year and it shows the bank doesn’t have enough assets to pay their liabilities. QUICK RATIO YEAR 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretation: It is an indicator of a company's short-term liquidity. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is called liquid because it can be easily converted in to cash. The higher the quick ratio, the better the position of the company. It is said that standard ratio of liquidity must be 1:1. So we can say that in the case of AXIS BANK the ratio is more than standard ratio in every year. So its shows the bank is able to meet their short term obligation which is good for the bank. RATIO CALCULATED 11.55 6.52 7.39 9.23 9.52

TOTAL DEPOSITS AND BORROWINGS
DEPOSITS 2005 31712.00 2006 40113.53 2007 58785.60 2008 2009 87626.22 117374.11

BORROWINGS Interpretation:

1781.41

2680.93

5195.60

5624.04

10185.48

Both Saving Bank deposits and current bank deposits is increasing year by year which is a good sign for the bank and it’s shows the image of bank is becoming more good in the eyes of customers and public and the customers have satisfied with the services of bank so the result they are keeping more faith on bank and that’s why they are depositing more money in the bank.

TOTAL ADVANCES
2005 ADVANCES 15,602.92 Interpretation: Here it shows a positive increase in advances which is a good sign for the bank. 2006 22,314.23 2007 36,876.48 2008 59,661.14 2009 81,556.77

FINDINGS
 Working Capital of the Bank is decreasing year by year which is not a good sign for the bank.  In the year 2007-08 Operating Margin was 23.25, in the year 2008-09 it is 28.31. This shows that Operating profit margin is increasing which is good for the bank.

 In the year 2007-08 Gross Profit Margin was 21.44, in the year 200809 it was 23.31. This shows that Gross profit margin is increasing which is good for the bank.  Net profit margin is increasing year by year.  Fixed Assets Turnover ratio is increasing which shows that fixed assets are efficiently utilized.  Current Ratio is increasing which is showing a sound financial position of the company.  Quick Ratio of the bank is increasing it shows that position of the bank is improving.  Earning per share is increasing which shows that a investor can invest in AXIS Bank to get good profits.  Total deposits and borrowings are increasing are increasing which means customers are satisfied with bank.  Total advances are also increasing year by year which is a good sign for bank.

RECOMMENDATIONS

 Company should provide promotional programs and schemes.  Satisfy existing customers.

 Aggressive advertisement campaign should be adopted in order to attract customers.  Create awareness about different accounts, deposits and loans, i.e. all products of Retail banking.  Attract customers by providing better facility than other competitors of Axis bank.  Should work on increasing working capital ratio.

LIMITATIONS

 The survey took much time due to calculation of each and every ratio of Axis bank.  The scope of project was quite wide , thus it was difficult to have a proper and equal reach in the scope.  Due to expenditure of money on collection of data , this research could not be done efficiently.  Due to lack of time, the survey of some area in retail banking of axis bank was missed.  The data may be uncomplete due to lack of proper source of information.  The project may be untrue due to my individual opinion as it may vary with individual opinions.

BIBLOGRAPHY

Books:  Dr. I.M. Pandey - Financial Management, Vikas Publication

Delhi.  M.Y. Khan, P.K. Jain - Financial Management , Tata Mc Graw Hill Publishing company Limited, New Delhi

Websites:  www.axisbank.com  www.google.com  www.moneycontrol.com  www.infinancials.com

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