FORWARDING LETTER

To,
Nabandita Jain Maam
(Business Studies Teacher)
Delhi Public School
Ahom gaon,
Opposite Tirupathi Balaji Temple
N.H. 37, Guwahati- 781 035
Assam

This is to certify that Khushboo Agarwal of XI Section-C of Delhi Public

School Guwahati has collected the information regarding the project

entitled Survey of the quality of Bank Service provided by Axis Bank

Paltan Bazar Branch, Guwahati. The Information has been collected by

Khushboo Agarwal through personal observation, interview and

questionnaire method. The information given is Authentic and true to the

best of my knowledge.

Place :

Name & Designation

Date :
 Certificate

To,
Seema Maam
Delhi Public School
Ahom gaon ,
Opposite Tirupathi Balaji Temple
N.H. 37, Guwahati- 781 035
Assam

This is to certify that Girish Agarwal of XI D of Delhi Public School

Guwahati has collected the information regarding the project entitled

Survey of the quality of bank service provided by Axis Bank Paltan

Bazar Branch, Guwahati Information has been collected through personal

observation, interview and questionnaire method. The information given is

Authentic and true to the best of my knowledge.

Place :
 Name & Designation
Date :

Acknowledgement

With great pleasure, I am penning these lines to

express my sincere thanks to the various people
with whose help the completion of this project has
not been possible.

The project selected by me is on The Quality of

bank service provided by Axis Bank Paltan Bazar
branch. It will be incomplete on my part if I do
not acknowledge the help extended to me by
different persons. I am indebted to my teacher
Seema Maam for the guidance given to me and also
the ideas that I have gathered in my school. Lastly
I would also like to thank my parents and friends
for their valuable suggestions.
 Methodology

The methodology used in my project included the

following:-

Face to Face Interaction A short interaction was done

by me with an employee of the Axis Bank, PAltan Bazar
branch, where I gathered information regarding the
service offered by the bank to its valued customers and
discussed on how to make my project more informative
and accurate.

Questionnaire - A Questionnaire was prepared by me to

get the feedback of some of the Axis bank customers of
the same branch so as to know whether how much they
were satisfied by the services provided by the bank.

Referring to publications and other related sources

Internet was a great support to me to find out some of
the information regarding the project and also the news
paper as well as it updated me by the recent happenings
in the banking sector during the course of my project.
Personal Observation - As my family members are also
the customers of the same bank so it was easy to
personally observe the quality of service provided by the
bank as I also occasionally visited the bank with them.

Preface

This project aims to get an idea about the efficiency in

the working of the local branch of the Axis Bank. It aims
to find out the quality of services provided by the bank
to its customers.

Primarily, this project is conducted to know how satisfied

the customers are with the services provided by the Axis
Bank and weather this bank to the other private bank is
their preference or not.
 PART I

HISTORY OF INDIAN BANKING

BANKS

TYPES OF BANKS
 HISTORY OF INDIAN BANKING

Without a sound and effective banking system in India it cannot have a

healthy economy. 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.

For the past three decades India's banking system has several outstanding
achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact,
Indian banking system has reached even to the remote corners of the
country. This is one of the main reason of India's growth process.

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

Not long ago, an account holder had to wait for hours at the bank counters
for getting a draft or for withdrawing his own money. Today, he has a
choice. Gone are days when the most efficient bank transferred money from
one branch to other in two days. Now it is simple as instant messaging or dial
a pizza. Money have become the order of the day.

The first bank in India, though conservative, was established in 1786. From
1786 till today, the journey of Indian Banking System can be segregated into
three distinct phases. They are as mentioned below:

Early phase from 1786 to 1969 of Indian Banks

Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector
Reforms.
New phase of Indian Banking System with the advent of Indian Financial &
Banking Sector Reforms after 1991.
To make this write-up more explanatory, I prefix the scenario as Phase I,
Phase II and Phase III.

Phase I

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established Bank of
Bengal (1809), Bank of Bombay (1840) and Bank of Madras (1843) as
independent units and called it Presidency Banks. These three banks were
amalgamated in 1920 and Imperial Bank of India was established which
started as private shareholders banks, mostly Europeans shareholders.

In 1865 Allahabad Bank was established and first time exclusively by

Indians, Punjab National Bank Ltd. was set up in 1894 with headquarters at
Lahore. Between 1906 and 1913, Bank of India, Central Bank of India, Bank
of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up.
Reserve Bank of India came in 1935.

During the first phase the growth was very slow and banks also experienced
periodic failures between 1913 and 1948. There were approximately 1100
banks, mostly small. To streamline the functioning and activities of
commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act
1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of
India was vested with extensive powers for the supervision of banking in
india as the Central Banking Authority.

During those days public has lesser confidence in the banks. As an aftermath
deposit mobilisation was slow. Abreast of it the savings bank facility
provided by the Postal department was comparatively safer. Moreover, funds
were largely given to traders.

Phase II

Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalised Imperial Bank of India with extensive
banking facilities on a large scale specially in rural and semi-urban areas. It
formed State Bank of india to act as the principal agent of RBI and to
handle banking transactions of the Union and State Governments all over the
country.

Seven banks forming subsidiary of State Bank of India was nationalised in

1960 on 19th July, 1969, major process of nationalisation was carried out. It
was the effort of the then Prime Minister of India, Mrs. Indira Gandhi. 14
major commercial banks in the country was nationalised.

Second phase of nationalisation Indian Banking Sector Reform was carried

out in 1980 with seven more banks. This step brought 80% of the banking
segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:

1949 : Enactment of Banking Regulation Act.

1955 : Nationalisation of State Bank of India.
1959 : Nationalisation of SBI subsidiaries.
1961 : Insurance cover extended to deposits.
1969 : Nationalisation of 14 major banks.
1971 : Creation of credit guarantee corporation.
1975 : Creation of regional rural banks.
1980 : Nationalisation of seven banks with deposits over 200 crore.
After the nationalisation of banks, the branches of the public sector bank
India rose to approximately 800% in deposits and advances took a huge jump
by 11,000%.

Banking in the sunshine of Government ownership gave the public implicit

faith and immense confidence about the sustainability of these institutions.

Phase III

This phase has introduced many more products and facilities in the banking
sector in its reforms measure. In 1991, under the chairmanship of M
Narasimham, a committee was set up by his name which worked for the
liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts
are being put to give a satisfactory service to customers. Phone banking and
net banking is introduced. The entire system became more convenient and
swift. Time is given more importance than money.

The financial system of India has shown a great deal of resilience. It is

sheltered from any crisis triggered by any external macroeconomics shock
as other East Asian Countries suffered. This is all due to a flexible exchange
rate regime, the foreign reserves are high, the capital account is not yet
fully convertible, and banks and their customers have limited foreign
exchange exposure.
 BANK

A bank is a financial intermediary that accepts deposits and

channels those deposits into lending activities, either directly or
through capital markets. A bank connects customers with capital
deficits to customers with capital surpluses.

Banking is generally a highly regulated industry, and government

restrictions on financial activities by banks have varied over time
and location. The current set of global bank capital standards are
called Basel II. In some countries such as Germany, banks have
historically owned major stakes in industrial corporations while in
other countries such as the United States banks are prohibited
from owning non-financial companies. In Japan, banks are usually
the nexus of a cross-share holding entity known as the keiretsu.
In Iceland banks had very light regulation prior to the 2008
collapse.

The oldest bank still in existence is Monte dei Paschi di Siena,

headquartered in Siena, Italy, and has been operating
continuously since 1472.
 TYPES OF BANKS

Banks can be classified into the following:

1. Commercial banks Commercial banks are institutions

dealing in money. These are governed by Indian Banking
Regulation Act 1949.

2. Cooperative banks Cooperative Banks are governed by the

provisions of State Cooperative Societies Act and meant
essentially for providing cheap credit to their members. It
is an important source of rural credit.

3. Specialised banks Specialised Banks are foreign exchange

banks, industrial banks, development banks, export-import
banks catering to specific needs of these unique activities.
These banks provide financial aid to industries, heavy
turnkey projects and foreign trade.

4. Central bank The central bank of any country supervises

controls and regulates the activities of all the commercial
banks of that country. It also acts as a government banker.
It controls and coordinates currency and credit policies of
any country. The RESERVE BANK OF INDIA is the central
bank of India.
 PART II
1. ABOUT AXIS BANK
2. SERVICES PROVIDED BY THE BANK
3. SERVICE CHARGES AND FEES
4. INTERPRETATION OF Q2FY11 PERFORMANCE
5. A GLIMPSE ON THE ANNUAL REPORT 2010:-

A. AUDITORS REPORT
B. BALANCE SHEET
C. PROFIT AND LOSS ACCOUNT
D. CASH FLOW STATEMENT
E. SCHEDULES FORMING PART OF THE BALANCE
SHEET
F. SCHEDULES FORMING PART OF THE PROFIT
AND LOSS ACCOUNT

6.ACCOLADES EARNED BY THE BANK DURING THE

YYYEAR 2010
 ABOUT AXIS BANK

Axis Bank was the first of the new private banks to have begun 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 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.

The Bank as on 31st December, 2010 is capitalized to the extent of Rs.

409.90 crores with the public holding (other than promoters and GDRs) at
53.62%.

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 1281
branches (including 169 Service Branches/CPCs as on 31st December, 2010).
The Bank has a network of over 5303 ATMs (as on 31st December, 2010)
providing 24 hrs a day banking convenience to its customers. This is one of
the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to
achieve excellence.

Vision 2015 and Core Values

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
SERVICES PROVIDED BY THE BANK

Normal Current Account

Our Normal Current Account gives you the optimum value for your money. At
Monthly Average Balance (MAB) of Rs. 10,000*, this account takes you into
an all-new world of banking.

Features

Home Branch Cash Deposit Facility

Free upto Rs. 1.2 Lacs per month
Inter Branch Cash Deposit Facility
Deposit cash up to Rs. 2 Lacs per day at a remote branch for instant credit
into your account.
Non-Cash Services
Free Anywhere Banking, DD & PO transactions up to Rs. 12 Lacs per month.
Intercity Cash Withdrawal Facility
Cash withdrawal upto Rs. 5 Lacs per day at a remote branch.
Fund Transfer
Completely free Funds Transfer & local cheque collection and payments
across Axis Bank locations all over the country.
Free Transactional Package
Free upto 25 transactions (Cash / Clearing / Transfer) per month.
Other ancillary services
Mobile Alerts
ATM cum International Business Debit Card
Phone Banking
Corporate iConnect
Daily free account statements through e-mail
Easy Access Savings Account

The account is an endeavor by the Bank to understand the consumers' needs

and redefine banking to suit your requirements for a truly comfortable
banking experience. EasyAccess Savings Account gives you instant access to
your money anywhere, anytime. Possessing a range of unmatched features, it
has been devised to better suit the convenience of our eclectic client base.

You can avail of all these services with a minimum quarterly average balance
of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and
Rs. 1,000 in rural centers.

At-par cheque
ATM Network
Anywhere Banking
Telebanking
iConnect
SMS Banking
Quarterly account statement
Quarterly interest @ 3.5 % per annum
Free monthly e-statement.
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.

Transfer of shares and settlements

Transfer and settlements have never been easy as it is under the depository
system. All that is required is an instruction slip from you. If you are selling
securities then it has to be a delivery instruction slip. If you are purchasing
securities it has to be a receipt instruction slip or one time standing
instructions for credit.

Receipt of Corporate Benefits

Even securities entitlements like bonus and rights can be credited to your
demat account electronically. All you have to do is to choose the right option
in the share application form. Cash benefits like dividends and interest will
be forwarded to you directly and not through the depository. MICR code in
Bank details in your demat account would ensure credit of cash corporate
action to your respective bank account.

Dematerialisation of shares

At your request we arrange to convert your physical holdings into electronic

form. To do this you would be require to open a demat account with NSDL
through us called "Beneficiary Owner Account" in the name and style in
which the shares are held by you. After opening demat account, you can
lodge the share certificates with us accompanied by a Dematerialisation
Request Form (DRF), separate for each scrip. You are required to only make
sure that NSDL has admitted that scrip for dematerialisation. You can get
this verified at our branches offering demat services.

Rematerilialisation - You have the option to convert your electronic shares

back to physical shares.

Pledge-Hypothecation - You can also avail loan against shares by pledging

shares in your demat account. This process is also much faster than in the
case of physical shares.

Freezing or Locking of Accounts - You can also keep your accounts frozen or
locked for the span of time desired by you. No debits from your account will
be made during this period.

Speed-e facility - With the introduction of settlement on T+2 basis,

instruction for delivery of securities to broker's account is required
immediately after sale of securities. Hence time available for submission of
delivery instructions is limited. Axis Bank now permits submission of delivery
instructions in electronic form using Internet based service called Speed-e.
Physical delivery instructions need not be submitted in case you are
submitting the instructions on Speed-e.

Functioning of Speed-e - Speed-e is an Internet based service offered by

NSDL through which demat account holders (including brokers) can submit
delivery instructions to us through Speed-e website http://speed-e.nsdl.com
and also view the status of such instruction.

i-Connect Depository Services - You can access your holding and transaction
statement of your demat account through internet services / website.

Tele Depository Services - Dial-Your-Demat - Access your Demat Account(s)

through a telephone from any of the access centers. Just dial the Tele-
Depository Services number and get all information about your account on
Voice, Fax or even email. Dial-Your-Demat is available 24 hours a day, 365
days a year. This service offers you a wide range of facilities such as:

Balance inquiry - Statement of Demat account by fax or phone or email

Transaction details by fax or phone or email
Holding details by fax or phone or email
Overdue cum Holding details by fax or phone or email
Rejection details by fax or phone or email

Auto E-mailer Services - You can register for auto e-mailer services for
getting holding and transaction statement on the registered mail id at the
frequency defined by you i.e. either daily/weekly/monthly.

Fixed Deposits

Axis Bank offers you simple reinvestment Fixed Deposits (at very
competitive interest rates), which can be opened with a minimum investment
of Rs 10,000. You can make additions to your deposit in multiples of Rs 1,000
each. The tenure of your deposit must be a minimum of 6 months.

Deposit Schemes

Reinvestment Deposits - In a reinvestment deposit, the interest accrued to

your deposit at the end of each quarter is invested along with the principal.
The tenure of your deposit must be a minimum of 6 months. At the end of
the quarter, the interest and the principal are both rolled over, and the
interest is calculated on the total sum. Income tax is deducted at source.

Automatic Rollover - As a Fixed Deposit holder, you can avail of the facility
for automatic rollovers on maturity (for both the principal and interest). You
can select this option in the Account Opening Document (AOD). The options
available are:

Rollover only Principal - Only the principal amount will be rolled over. The
interest will be either credited to your designated account or paid out.
Rollover Principal and Interest accrued in Reinvestment Deposit:
This will rollover both the deposit and the interest accrued for the same
tenure at the interest rate applicable on the maturity date.

On or before the maturity date, you can make the following changes in the
rollover instructions of the deposit:

Change in tenure
Change in maturity instructions
Change in payment instructions
Change in principal (only reduced amount)
Change rollover of Principal to rollover of Principal + Interest, or vice versa.

Withdrawals - All encashments or withdrawals of Fixed Deposits can only be

made at the branch where the deposit was booked.

Method of calculation of interest - For deposits with tenure of 6 months &

above, interest is calculated on a quarterly basis.
Interest earned during the previous quarter is added to the Principal for
calculation of interest. Interest on this amount is calculated every quarter.
For deposits with tenure of below 6 months, interest is calculated at Simple
Interest. Please note that the period of Fixed Deposit is considered in
number of days.

In the event the depositor chooses to receive the periodic interest

payments on a quarterly basis, interested is calculated and paid on quarterly
rests.

On premature withdrawal of the deposit, interest shall be paid only for the
period for which the deposit is maintained with the Bank and at the rate
applicable for such period.

Tax at source is deducted as per the Income Tax regulations prevalent from
time to time.
 PART IV
QUESTIONNARIE
REPORT ANALYSIS
PERSONAL OBSEVATION
BIBLIOGRAPHY