You are on page 1of 64

A

PROJECT

ON

WHOLE SALE BANKING OPERATIONS

IN AXIS BANK LTD

SUBMITTED TO

MR.SATYAGIT DEVADIGA

(BRANCH MANAGER)

MRS.ASHA SOHANDA

(HEAD FINANCE)

AXIS BANK

ULHASNAGAR BRANCH

PREPARED BY

VARSHA SURYAWANSHI

YADAVRAO TASGAONKAR INSTITUTE OF MANAGEMENT


STUDIES & RESEARCH

POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT

1
A

PROJECT REPORT

ON

WHOLESALE OF BANKING OPERATIONS

IN AXIS BANK

2
Certificate

This is to certify that miss Varsha M. Suryavanshi is the


student of Post graduate diploma in business
management in Yadavrao Tasgaonkar institute of
management studies & research has satisfactorily carried
and conducted their project report entitled WHOLE
BANKING OPERATIONS IN AXIS BANK LTD., as a
Summer Internship Project.

She has completed her project work under my guidance and


s u p e r v i s i o n . T h e p r o j e c t w o r k i s t h e o u t c o me o f
h e r o w n work.

Date:

Place:

Project Guide Director Project In charge

3
DECLARATION

I hereby declare that the project entitled WHOLESALE OF BANKING


OPERATIONS submitted for the PGDBM course is my Original work and
the project has not formed the basis for the award of any degree,
associate ship, fellowship or any other similar titles.

Signature of the Student:

Place:

Date:

4
ACKNOWLEDGEMENT

I present this project report on whole banking operations IN


AXISBANK LTD., with a sense of great pleasure and satisfaction. I
undersign with pleasure take this opportunity to thank all those related
directly or indirectly in preparation of this project

I started working on this project under the invaluable guidance


of H o n o r a b l e M i s s . A s h a S o n a n d a thankful for her valued
time given for the purpose. Without her co -operation our project work
would have been difficult to complete.

I express our sincere thanks to Mr.Sat ygit Devadiga, (Branch


Manager) inA x i s B a n k L t d . , a n d s t a f f i n t h a t
o r g a n i s a t i o n . I a m a l s o thankful to Dr Rajeev benara
[Director of our college] and prof.sherin Thomas [Project In charge]
to allow us to carryout this project

DATE:

PLACE:

5
INDEX
SR.NO TOPIC PAGE NO
CHAPTER 1 INTRODUCTION
1.1 Executive summery
1.2 Meaning/Definition
1.3 Important of study
1.4 Research objective
1.5 Research of methodolgy
1.6 limitation
CHAPTER 2 COMPANY PROFILE
2.1 Introduction company
2.2 Historical development
2.3 vision ,mission &objective of company
2.4 product information
2.5 financial position of company
CHAPTER 3 DATA ANALYSIS
3.1 Data presentation
3.2 introduction data analysis process
3.3
CHAPTER 4 COMPARATIVE ANALYSIS
4.1 Chronolgy comparative analysis
4.2 Industry comparative
CHAPTER 5 FINIDING &SUGGESTION

CHAPTER 6 RECOMMENDATION

CHAPTER 7 CONCLUSION

CHAPTER 8 BIBLIOGRAPHIES

CHAPTER 9 APPENDIX

6
CHAPTER 1
INTRODUCTION

7
INTRODUCTION

Executive Summary:

THE NATIONAL BUREAU'S Financial Research Program & Banking


operation has three major objectives: first, the comprehensive
reexamination of modern financial organization with reference to the
fundamental financial services that the constituent institutions render to
the community.

Second , the study of the effects of law and public regulation


and supervision on the functioning of the financial system and third, the
investigation of how instability in financing activities is related to general
economic instability.

These major aims are being accomplished through the conduct of a series
of projects, each devoted to a phase or process of the financial system, so
far as these can be delineated for separate study. The first project in the
series dealt with consumer installment financing and the second, the
results of which are summarized in the present volume, with business
financing. Projects in investment credit, agricultural finance, and urban
real estate finance are now in process.

The final attainment of original objectives will require further studies of


lending and investment technology, and also of the ways in which
financial institutions affect the economic system through their influence
on the volume of circulating media. From the beginning of the Program, a
standard method has been followed in the development of each project. A
pre-research survey determines the adequacy of existing knowledge about
the financing process that is to be considered, and appraises needs
for additional information. On the basis of the results of this survey,
a number of studies are initiated, some of a technical nature and limited in
scope, in order

( i ) to develop new data that may be essential to round out existing


knowledge and

(2) to examine in adequate detail those phases of the subject which


require intensive. The findings of these primary studies are then brought
together and integrated in a concluding analysis

8
MEANING OF BANKING

Bank is an important organ of the modern trade and


commerce. Banks in India are regulated by the Banking Regulation
Act, 1949. The banking activities in India are regulated by the
Banking Regulations Act, 1949. Under Section 5(b) of the said Act
Banking means, the accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on
demand or otherwise, and withdrawal by cheque, draft, order or
otherwise.

Any bank which transacts this business in India is


called a banking company. However, any company which is engaged
in the manufacturer of goods or carries on any trade and which accepts
deposits of money from the public merely for the purpose of financing
its business as manufacturer or trader shall not be deemed to transact
the business of banking. It may be mentioned that the Banking
Regulation Act, 1949 is not applicable to a primary agricultural
society, a co-operative land mortgage bank and any other co-operative
society except in the manner and to the extent specified in Part V of
the Act.

9
DEFINATION OF BANKING :

A bank is a financial institution and a financial


intermediary that accepts deposits and channels those
deposits into lending activities, either directly or
through capital markets
.A bank connects customers that have capital deficits to
customers with capital surpluses. Due to their critical
status within the financial system and the
economy generally, banks are highly regulated in most
countries. Most banks operate under a system known as
fractional where they hold only a small reserve of the
funds deposited and lend out the rest for profit
They are generally subject to minimum capital
requirements which are based on an international set of
capital standards, known as the Basel Accords.

10
MEANING OF WHOLESALE BANKING
OPERATIONS

Wholesale banking is the provision of services by banks to


the likes of Mortgage Brokers, large corporate clients, mid-sized
companies, real estate developers and investors, international trade
finance businesses, institutional customers (such as pension funds and
government entities/agencies), and services offered to other banks or
other financial institutions.

Wholesale finance means financial services, which are


conducted between financial services companies and institutions such as
banks, insurers, fund managers, and stockbrokers.
Modern wholesale banks are engaged in: finance wholesaling,
underwriting, market making, consultancy, mergers and acquisitions,
fund management.
Wholesale banking in India is set for a period of sharp
growth. Revenues from wholesale banking activities are likely to more
than double over the next five years as infrastructure investment,
expansion by Indian companies overseas, and further Indianization of
multinational businesses, among other trends, drive new business.
Foreign players and the countrys domestic banks, however, will find
themselves in a tough commercial environment and must overcome a
range of challenges if they are to maintain, or assume, a leading position
in the market.
Prospects for Indias wholesale banking market are intriguing.
Wholesale banking revenues, which in India account for close to 30
percent of total banking revenues, are expected to more than double, from
roughly $16 billion in fiscal 2010 to between $35 billion and $40 billion
by 2015 (Exhibit 1). McKinseys analysis shows that returns on equity
are typically in the range of 15 percent to 30 percent.

11
RESEARCH OF OBJECTIVE

1. Different products and services provided by the bank.

2. To raise the performance standards of the bank

3. To serve our clients by expanding the banks network of


branches

4. To enhance our corporate finance services

5. To maintain a prudent credit policy

6. Customers perception about the different products.

7. The brand image of the bank.

8. What are the problems faced by these sales executives daily


basis.

9. How to communicate with the customers.

10. Different techniques of dealing with the customers.

11. How to convince and convert a customer into a real


customer

12
RESEARCH OF METHODOLOGY

1. RESEARCH PLAN:

a) Preliminary Investigation:

In which data on the situation surrounding the problems shall be gathered


to arrive at
The correct definition of the problem.
An understanding of its environment.

The preliminary investigation is the process of studying the systems


request and preparing a recommendation. The purpose of the preliminary
investigation is to determine if the systems request is worth pursuing into
the analysis phase and to perform some initial project management
planning tasks. After that prepare reports,

Describe the major sections of the preliminary report


Describe the organization of the preliminary report
Develop the major recommendation of the preliminary report

b) Exploratory Study:
To determine the approximate area where the problem lies.

Exploratory research is conducted into an issue or problem where there


are few or no earlier studies to refer to. The focus is on gaining insights
and familiarity for later investigation. Secondly, descriptive research
describes phenomena as they exist. Here data is often quantitative and
statistics applied. It is used to identify and obtain information on a
particular problem or issue. Finally causal or predictive research seeks to
explain what is happening in a particular situation. It aims to generalize
from an analysis by predicting certain phenomena on the basis of
hypothesized general relationships.

Types of exploratory system

Secondary Data
Experience Surveys
Case Analyses
Qualitative research
13
2. RESEARCH DESIGN:

Research was initiated by examining the secondary data to gain


insight into the problem. By analyzing the secondary data, the
study aim is to explore the short comings of the present s y s t em
a n d pr i ma r y d a t a w i l l h el p t o v a l i d a te t he a n a l y s i s
o f s e co n d a r y da ta b es i de s o n unrevealing the areas which
calls for improvement.

3. DEVELOPING THE RESEARCH PLAN:

The data for this research project has been collected through
self Administration. Due to time limitation and other constraints
direct personal interview method is used. A structured
q u e s t i o n n a i r e w a s f r a me d a s i t i s l e s s t i me c o n s u mi n g ,
g e n e r a t e s s p e c i f i c a n d t o t h e p o i nt information, easier to tabulate
and interpret. Moreover respondents prefer to give direct answers. In
questionnaires open ended and closed ended, both the types of questions
has been used.

14
METHOD OF DATA COLLECTION

DATA COLLECTION:

Primary data:
Informal interview with manager and other
staff members at Axis Bank.
Prepare the Questionnaires in which
The questionnaires can be broadly categorized
into two types:
i) Structured questionnaire .
ii) Unstructured questionnaires.

Secondary data:
It refers to the statistical material which is not originated by the
investigator himself but obtained from someone else's records, or
when Primary data is utilized for any other purpose at some
subsequent enquiry it is termed as Secondary data. This type of
data is generally taken from newspapers, magazines, bulletins,
reports, journals etc. e.g. if the data published by RBI on currency,
National Income, Exports or Imports, is used in some other
15
statistical enquiry, it will be termed as Secondary data. Data
collected by the following ways

Books
websites
database at Axis Bank
library research

LIMITATION OF THE STUDY:

As the credit appraisal is one of the crucial areas for


any bank, some of the Technicalities are not
revealed.
Credit appraisal system includes various types of
detail studies for different areas of analysis, but
due to time constraint, our analysis was of limited
areas only.

16
CHAPTER 2
COMPANY PROFILE

17
INTRODUCTION OF COMPANY

Axis Bank is a private bank recognized in 1994 when the Government of


India make permission to have a private banks in a country. Axis
Bank was previously known as UTI Bank started by the Administrator of
the Specified Undertaking of the Unit Trust of India, Life Insurance
Corporation of India (LIC), General Insurance Corporation Ltd., National
Insurance Company Ltd., The New India Assurance Company,
The Oriental Insurance Corporation and United India Insurance Company
UTI

Axis Bank has grown very rapidly and take its total income to Rs
13,745.04 crore and a net profit of Rs. 1,812.93 crore. Mr. Adarsh
Kishore is the chairman of the Axis Bank and after Mr.P .J.Nayak. Shikha
Sharma become the managing director and CEO of the bank. Axis Bank
is the first to render a secure debit card payment service. Excellent ATM
services are providing by the Axis Bank and is one of the huge ATM
networks in India.

Axis Bank is one of the india's most advanced banks when it comes to
technology. Following are the 24 hours and weekly services rendered by
the Axis bank for the benefit of the custom

Axis Bank Limited is an India-based bank. It operates in four segments:


treasury operation, which includes investments in sovereign and
corporate debt, equity funds, trading operations, derivative trading and
foreign exchange operations on the account, and for customers and
central funding; retail banking, which includes lending to
individuals/small businesses subject to the orientation, product and
granularity criterion, and also includes liability products, card services,
Internet banking, automated teller machines services, depository, and
nonresident Indian services; corporate/wholesale banking, which includes
corporate relationships not included under retail banking, corporate
advisory services, placements and syndication, project appraisals, capital
market related services, and cash management services, and other
banking business. In June 2012, HSBC Holdings PLCs indirect wholly
owned subsidiary, HSBC Iris Investments (Mauritius) Ltd, sold its 4.73%
interest in the Company.

18
HISTRORICAL DEVELOPMENT

1993 :

The Bank was incorporated on 3rd December and Certificate of business


on 14th December. The Bank transacts banking business of all
description. UTI Bank Ltd. was promoted by Unit Trust of India, Life
Insurance Corporation of India, General Insurance Corporation of India
and its four subsidiaries.

The bank was the first private sector bank to get a license under the new
guidelines issued by the RBI.

1997 :

The Bank obtained license to act as Depository Participant with NSDL


and applied for registration with SEBI to act as `Trustee to Debenture
Holders'.

Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5
crores, GIC and its four subsidiaries Rs 1.5 crores each.

1998 :

The Bank has 28 branches in urban and semi urban areas as on 31st July.
All the branches are fully computerized and networked through VSAT.
ATM services are available in 27 branches.

The Bank came out with a public issue of 1,50,00,000 No. of equity
shares of Rs 10 each at a premium of Rs 11 per share aggregating to Rs
31.50 crores and Offer for sale of 2,00,00,000 No. of equity shares for
cash at a price of Rs 21 per share. Out of the public issue 2,20,000 shares
were reserved for allotment on preferential basis to employees of UTI
Bank. Balance of 3,47,80,000 shares were offered to the public.

The company offers ATM cards, using which account-holders can


withdraw money from any of the bank's ATMs across the country which
are inter-connected by VSAT.

19
UTI Bank has launched a new retail product with operational flexibility
for its customers.

UTI Bank will sign a co-brand agreement with the market, leader,
Citibank NA for entering into the highly promising credit card business.

UTI Bank promoted by India's pioneer mutual fund Unit Trust of India
along with LIC, GIC and its four subsidiaries.

1999 :

UTI Bank and Citibank have launched an international co-branded credit


card.

UTI Bank and Citibank have come together to launch an international co-
branded credit card under the MasterCard umbrella.

UTI Bank Ltd has inaugurated an off site ATM at Ashok Nagar here,
taking the total number of its off site ATMs to 13.m

2000 :

The Bank has announced the launch of Tele-Depository Services for its
depository clients.

UTI Bank has launch of `iConnect', its Internet banking Product.

UTI Bank has signed a memorandum of understanding with


equitymaster.com for e-broking activities of the site.

Infinity.com financial Securities Ltd., an e-broking outfit is typing up


with UTI Bank for a banking interface.

Geojit Securities Ltd, the first company to start online trading services,
has signed a MoU with UTI Bank to enable investors to buy\sell demat
stocks through the company's website.

India bulls has signed a memorandum of understanding with UTI Bank.


UTI Bank has entered into an agreement with Stock Holding Corporation
of India for providing loans against shares to SCHCIL's customers and
funding investors in public and rights issue.

20
ICRA has upgraded the rating og UTI Bank's Rs 500-crore certificate of
deposit programmed to A1+. UTI Bank has tied up with L&T Trade.com
for providing customized online trading solution for brokers.

2001:

UTI Bank launched a private placement of non-convertible debentures to


raise up to Rs 75 crore. - UTI Bank has opened two offsite ATMs and one
extension counter with an ATM in Mangalore, taking its total number of
ATMs across the country to 355.

UTI Bank has recorded a 62 per cent rise in net profit for the quarter
ended September 30, 2001, at Rs 30.95 crore. For the second quarter
ended September 30, 2000, the net profit was Rs 19.08 crore. The total
income of the bank during the quarter was up 53 per cent at Rs 366.25
crore.

2002:

UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a
Director of the Bank w.e.f. January 02, 2002. A C Shah, former chairman
of Bank of Baroda, also retired from the bank's board in the third quarter
of last year. His place continues to be vacant. M Damodaran took over as
the director of the board after taking in the reins of UTI. B S Pandit has
also joined the bank's board subsequent to the retirement of K G Vassal.

UTI Bank Ltd has informed that Shri Paul Fletcher has been appointed as
an Additional Director Nominee of CDC Financial Service (Mauritius)
Ltd of the Bank. And Shri Donald Peck has been appointed as an
Additional Director (nominee of South Asia Regional Fund) of the Bank.

UTI Bank Ltd has informed that on laying down the office of Chairman
of LIC on being appointed as Chairman of SEBI, Shri G N Bajpai,
Nominee Director of LIC has resigned as a Director of the Bank.

2002 :

B Paranjpe & Abid Hussain cease to be the Directors of UTI Bank.

UTI Bank Ltd has informed that in the meeting of the Board of Directors
following decisions were taken: Mr Yash Mahajan, Vice Chairman and

21
Managing Director of Punjab Tractors Ltd was appointed as an
Additional Director with immediate effect. Mr N C Singhal former Vice
Chairman and Managing Director of SCICI was appointed as an
Additional Director with immediate effect.

ABN Amro, UTI Bank in pact to share ATMs.

UTI Bank Ltd has informed BSE that a meeting of the Board of
Directors of the Bank is scheduled to be held on October 24, 2002 to
consider and take on record the unaudited half yearly/quarterly financial
results of the Bank for the half year/Quarter ended September 30, 2002.

UTI Bank Ltd has informed that Shri J M Trivedi has been appointed as
an alternate director to Shri Donald Peck with effect from November 2,

2003 :

UTI Bank Ltd has informed BSE that at the meeting of the Board of
Directors of the company held on January 16, 2003, Shri R N Bharadwaj,
Managing Director of LIC has been appointed as an Additional Director
of the Bank with immediate effect.

UTI Bank, the private sector bank has opened a branch at Nellore. The
bank's Chairman and Managing Director, Dr P.J. Nayak, inaugurating the
bank branch at GT Road on May 26. Speaking on the occasion, Dr Nayak
said, "This marks another step towards the extensive customer banking
focus that we are providing across the country and reinforces our
commitment to bring superior banking services, marked by convenience
and closeness to customers.

UTI Bank Ltd. has informed the Exchange that at its meeting held on
June 25, 2003 the BOD have decided the following: 1) To appoint Mr. A
T Pannir Selvam, former CMD of Union Bank of India and Prof. Jayanth
Varma of the Indian Institute of Management, Ahmadabad as additional
directors of the Bank with immediate effect. Further, Mr. Pannier Selvam
will be the nominee director of the Administrator of the specified
undertaking of the Unit Trust of India (UTI-I) and Mr. Jayanth Varma
will be an Independent Director. 2) To issue Non-Convertible Unsecured
Redeemable Debentures upto Rs.100 crs, in one or more tranches as the
Bank's Tier - II capital.

22
UTI has been authorised to launch 16 ATMs on the Western
Railway Stations of Mumbai UTI filed suit against financial institutions
IFCI Ltd in the debt recovery tribunal at Mumbai to recover Rs.85c

23
Vision , Mission & objective of company

Mission

Customer service and product innovation tuned to diverse


needs of individual and corporate clientele.
Continuous technology up gradation while maintaining
human values.
Progressive globalization and achieving international
standards.

Core values

Customer satisfaction through


Providing quality service effectively and efficiently
smile, it enhances your face value a service quality
stressed on
Periodic customers service audits
Maximization of stakeholder value

24
PRODUCT INFORMATION

Axis bank provide a service through various product

1. Accounts
2. Deposits
3. Safe deposit Locker
4. Loan
5. Cards
6. Forex
7. Investment
8. Insurance

25
Accounts

Saving Current Salary


Account Account Account

Deposits

Fixed Tax Saver Incash


Recuring 24 Interest
Deposit fixed Deposit rate
deposit

26
Loan

Home Car Education Personal Loan


Loan Loan Loan Loan against
Property

Cards

Credit Card Debit Card Prepaid Card

27
Insurance

Life Health Home Vehical Travel


Insurance Insurance Insurance insurance Insurance

Jwellary
insurance

Forex
Travel foreign Foreign Outward For
currency currency Exchange remittan NRI
cash cash Rate ces MTS

28
CUSTOMER SERVICE IN BANKING OPERATION
Customers of foreign and new private banks are discouraged by these
banks from transacting through bank branches. These banks often refuse
to give an acknowledgement on the deposit slip if the cheques are
deposited at branch counters. Following instructions will bring relief to a
large section of customers.
Cheque Drop Box Facility :
RBI's Committee on Procedures and Performance Audit on Public
Services has recommended that both the drop box facility and the facility
for acknowledgement of the cheques at the regular collection counters
should be available to customers and no branch should refuse to give an
acknowledgement if the customer tenders the cheques at the counters. We
agree with the recommendation and advise that it is important that there is
no curtailment of the rights of the depositor to obtain an
acknowledgement by going to the concerned counter.
Issue of Cheque Books:
The Committee has observed that some banks do not allow depositors to
collect their cheque book at the branch but insist on dispatching the
cheque book by courier to the depositor. Further, it is stated by the
Committee that the depositor is forced to sign a declaration that a
dispatch by the courier is at the depositor's risk and consequence and that
the depositor shall not hold the bank liable in any manner whatsoever in
respect of such dispatch of cheque book. Committee has observed this as
an unfair practice and advised banks to refrain from obtaining such
undertakings from depositors. Banks should also ensure that cheque
books are delivered over the counters on request to the depositors or his
authorized representative.
Statement of Accounts / Pass Books:
The Committee has noted that banks invariably show the entries in
depositors passbooks / statement of accounts as "By Clearing" or "By
Cheque". Further, in the case of Electronic Clearing System (ECS) and
RBI Electronic Funds Transfer (RBIEFTR) banks invariably do not
provide any details even though brief particulars of the remittance are
provided to the receiving bank. In some cases computerized entries use
sophisticated codes which just cannot be deciphered.
29
With a view to avoiding inconvenience to depositors, banks are advised
to avoid such inscrutable entries in passbooks / statements of account and
ensure that brief, intelligible particulars are invariably entered in
passbooks / statements of account. Banks may also ensure that they
adhere to the monthly periodicity prescribed by us while sending
statement of accounts.

SAVING ACCOUNT INFORMATION

Our Saving Bank account help you to plan and save for your
future financial requirements. your saving remain liquid, safe and earn
moderate interest.

If a person has limited income and wants to save money for future needs
,the Saving Bank account is most suited for his purpose .this type of
account can be opened with a minimum initial deposit that varies from
bank to bank .money can be deposited any time in this account
.withdrawals can be made either by signing a withdrawal form or by
issuing a cheque or by using ATM card .Normally bank put some
restriction on the number of withdrawal from this account .Interest is
allowed on the balance of deposited in the account .the rate of interest on
saving bank account changes from time to time. A minimum balance has
to be maintained in the account as prescribed by the bank.

BENEFITS OF SAVING ACCOUNT

Card Convenience :
Get your free ATM cum Debit card and have access to the widest
network of ATMs across the country to withdraw cash ,enquire
about your balance ,etc .moreover ,your card enable you to shop at
a large of number of Merchant establishments in India
Easy and wide accessibility :
Transaction at your convenience ,saving time and cost through
AXIS Internet Banking .can also withdraw cash from Maestro
endorsed ATMs of other bank under bilateral sharing ,at a nominal
fee.
Monitoring your account :

30
There is a flexibility that you can monitor and control your funds
through Axis Internet Banking or and through Passbook /statement
of account facility. There is also an alternative facility that you can
also, access your account by downloading Instant bank.
Moderate Earning:
Saving Bank account earn you an interest at the rate of 3.5% p.a.
Compounded half yearly.
Money Multipliers:
Earn Interest at Term Deposit rates through Saving plus account
.link your Saving Bank account to your Multi option
Deposit(MOD) Account to earn additional interest an your surplus
money and get the facility of automatic unitized break up of MOD
i8n case there is a shortfall in your SB account to honor the cheque
drawn by you.

CURRENT ACCOUNT INFORMATION

A current account is not a bank account but a simple account within the
accountancy system of the office ,which is included in the account. All
the funds received from a particular client (by transfers)are credited to the
account .all fees and charges are debited from the account

Big businessmen ,companies and institution such as school, colleges and


hospitals have to make payment through their bank account .since there
are restrictions on number of withdrawals from saving bank account ,that
type of account is not suitable for them. they need to have an account
from which withdrawals can be made any number of times . For that
purpose banks open current account for them

Like saving bank account ,this account also requires certain minimum
amount of deposit while opening the account .on this deposit bank does
not pay any interest on the balances. Rather the account holder pays
certain amount each year as operation charge

For the convenience of the account holders bank also allow withdrawals
of amount in excess of the balance of deposit.this facility is known as
overdraft facility .it is allowed to some specified customers and up to
certain limit subject to previous agreement with the bank concerned

31
Payment rule of current account:

Every payment must indicate the name of the person making the
payment and must contain the necessary information to enable the office
to establish the purpose of the payment.

NO FRILLS ACOUNT:

This account comes with very low minimum balance as well as low /nil
charge,to cater to the need of individuals from the vast section of
population who are ,otherwise ,not fulfilling certain condition of our
exiting saving bank account requirements.

32
BANKING CHANNELLS

Branches

Bank electronic channels allow customers to access their accounts and


perform various financial transactions. These channels include
Automated Teller Machines (ATM), Call Center, Cash Deposit Machines
(CDM), Internet, and Mobile Banking. Please click on the any of the
channels for more details.

ATMs

Access you account round the clock. The only bank with the largest and
most spread ATM network. The Banks ATMs are located in commercial
and residential areas, petrol filling stations, airports, and other places,
which are conveniently accessible.

Easy Deposits

A deposit machine, accepts cash, and counts the notes, gives you access
for depositing cash in your account or any other customer account in
Bank. Non Bank customers can use this channel to pay their utility bills
and Mobiles Top ups. Deposit your cash the safe and easy way.

Call Centers

Your convenience to conduct banking activities anywhere and anytime


via a 24 hr service .

Internet Banking

This service is provided through the Internet. Customers can perform


financial services and access their accounts from anywhere in the world
by logging on to www.axisbank.co.in

Mobile Banking

This channel allows you to avail various information and services on your
mobile handset and is divided into alert facility, which keeps you updated
on transaction in your account .

33
Financial position of company
Balance Sheet of Axis Bank ------------------- in Rs. Cr. -------------------
Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths


Capital and Liabilities:
Total Share Capital 413.20 410.55 405.17 359.01
Equity Share Capital 413.20 410.55 405.17 359.01
Share Application Money 0.00 0.00 0.17 1.21
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 22,395.34 18,588.28 15,639.27 9,854.58
Revaluation Reserves 0.00 0.00 0.00 0.00
Net Worth 22,808.54 18,998.83 16,044.61 10,214.80
Deposits 220,104.30 189,237.80 141,300.22 117,374.11
Borrowings 34,071.67 26,267.88 17,169.55 10,185.48
Total Debt 254,175.97 215,505.68 158,469.77 127,559.59
Other Liabilities & Provisions 8,643.27 8,208.86 6,133.46 9,947.67
Total Liabilities 285,627.78 242,713.37 180,647.84 147,722.06
Mar '12 Mar '11 Mar '10 Mar '09

12 mths 12 mths 12 mths 12 mths

Assets
Cash & Balances with RBI 10,702.92 13,886.16 9,473.88 9,419.21
Balance with Banks, Money at Call 3,230.99 7,522.49 5,732.56 5,597.69
Advances 169,759.54 142,407.83 104,343.12 81,556.77
Investments 93,192.09 71,991.62 55,974.82 46,330.35
Gross Block 3,583.67 3,426.49 2,107.98 1,741.86
Accumulated Depreciation 1,395.12 1,176.03 942.79 726.45
Net Block 2,188.55 2,250.46 1,165.19 1,015.41
Capital Work In Progress 70.77 22.69 57.24 57.48
Other Assets 6,482.93 4,632.12 3,901.06 3,745.15
Total Assets 285,627.79 242,713.37 180,647.87 147,722.06

Contingent Liabilities 449,976.11 429,069.63 296,125.58 104,428.39


Bills for collection 64,895.87 57,400.80 35,756.32 29,906.04
Book Value (Rs) 551.99 462.77 395.99 284.50

34
CHAPTER 3
DATA ANALYSIS

35
INTRODUCTION OF DATA ANALYSIS PROCESS

36
Profit & Loss Statement Of Axis Bank
Rs. in Cr. Mar 2012 Mar 2011 Mar 2010 Mar 2009

I. INCOME :

Interest Earned 21,994.90 15,154.86 11,639.05 10,829.11

Other Income 5,487.19 4,671.45 3,964.21 2,996.74

TOTAL 27,482.09 19,826.31 15,603.26 13,825.85

II. EXPENDITURE :

Interest expended 13,969.18 8,588.61 6,632.63 7,148.92

Operating Expenses 6,099.89 4,860.47 3,762.39 2,882.00

Provisions and Contingencies 3,194.51 3,032.55 2,730.10 1,982.00

TOTAL 23,263.58 16,481.63 13,125.12 12,012.92

III. PROFIT/LOSS

Profit before Minority Interest and P/L 4,218.51 3,344.68 2,478.14 1,812.93
of Assoc. Co.

Minority Interest after PAT 0.00 0.00 0.00 0.00

Profit/Loss of Associate Company 1.27 -4.77 0.00 0.00

Profit after Minority Interest and P/L of 4,219.78 3,339.91 2,478.14 1,812.93
Assoc. Co.

Prior Year Adjustments 0.00 0.00 0.00 0.00

Profit brought forward 4,864.45 3,371.63 2,328.95 1,537.20

TOTAL 9,084.23 6,711.54 4,807.09 3,350.13

IV. APPROPRIATIONS

Transfer to Statutory Reserves 1,060.55 847.12 628.63 453.84

Transfer to Other Reserves 52.97 329.49 239.36 146.82

Proposed Dividend / Transfer to 770.26 670.48 567.47 420.52


Government

Balance c/f to Balance Sheet 7,200.45 4,864.45 3,371.63 2,328.95

37
TOTAL 9,084.23 6,711.54 4,807.09 3,350.13

Equity Dividend 661.13 574.76 486.21 359.01

Corporate Dividend Tax 109.13 95.72 81.26 61.51

Equity Dividend (%) 160.00 140.00 120.00 100.00

Earning Per Share (Rs.) 99.48 79.02 59.16 48.78

Book Value 548.93 460.23 394.62 284.00

Extraordinary Items 12.22 -4.40 -2.73 -4.97

Total Profit & Loss By Year


30,000.00

25,000.00

20,000.00

15,000.00 Profit
Income
10,000.00

5,000.00

0.00
2009 2010 2011 2012

38
Analysis of Income & Expenditures
Year Income Expenditures
2009 13,825.85 12,012.92
2010 15,603.26 13,125.12
2011 19,826.31 16,481.63
2012 27,482.09 23,263.58

30,000.00

25,000.00

20,000.00

income
15,000.00
Expenditures
Ratio
10,000.00

5,000.00

0.00
2009 2010 2011 2012

39
SWOT ANALYSIS OF AXIS BANK

STRENGTH:
1. Extremely Competitive and Pro Banking Services Include Co
Markets, Treasury.
2. Retail Banking Savings Bank Rs. 19,982 Cr. As On 31st
March .
3. Corporate Banking Current AC at end March08 to Rs. 24,822
4. Support of various Promoters
5. Strong technology
6. Total Deposits Rs 1,17,374 crore
7. Net Advances Rs 81,557 crore
8. Net NPA 0.35%.

WEAKNESS:

1. Not having Image UTI (fraud)

2. Higher cost

3. Customer service

4. Market Capitalization Very Low

OPPORTUNITY

1. Large retail and corporate market

2. Wide scope in rural India

3. Other Activity (Non Banking Activity)

4. People are become more service oriented

40
0.00%10.00%20.00%30.00%40.00%50.00%60.00%70.00%80

THREAT

1. Other better Saving, investment option available (like


Insurance, Mutual fund, Real-estate,Gold)
2. Government Rules And Regulation

3. Very high competition with Private sector (


ICICI Bank, HDFC bank) or public sector (BOB, PNB)
Bank.

4. Capital Market slow-down

5. Rising Rates

6. Future Market Trends

41
CHAPTER 4
COMPARATIVE
ANALYSIS

42
Segment wise Revenue

Particulars (Rs.mn.) Q4 FY12


Wholesale Banking 40109.30
Treasury Operations 21155.10
Retailing Banking 71150.30
Other Banking Operations 9041.60
Total 141456.30

Revenue

Wholesale Treasury
Other Banking Banking
Operations Operations
18% 9%
41%

Retailing Banking
32%

Recommends Dividend

AXIS Bank Ltd has recommended a dividend of Rs. 16 per share (160%)
for the year ended March 31, 2012.

AXIS Bank Ltd has allotted 2,89,831 equity shares of Rs. 10/- each,
under ESOP

43
Scheme of the Bank. The paid up share capital of the Bank will
accordingly get increased to 41,42,90,946 equity shares from
41,40,01,115 equity shares. Axis Bank inducts Schroder as a 25% partner
in Axis AMC Axis Bank has reached an agreement to sell 25 per cent of
the share capital of its wholly owned subsidiary, Axis Asset Management
Company Ltd (Axis AMC) to Schroder Singapore Holdings Pvt Ltd, a
wholly owned subsidiary of Schroder.

Schroder is a global asset management company with


187.3 billion under management as at 31 December 2011.

44
Comparison with Other Banks

Name Last Price Market Cap. Net Interest Net Profit


(Rs. cr.) Income

HDFC Bank 588.00 138,528.06 27,286.35 5,167.07

ICICI Bank 963.85 111,133.68 33,542.65 6,465.26

Axis Bank 1,038.00 43,011.40 21,994.65 4,242.21

Kotak Mahindra 536.50 39,848.36 6,180.24 1,085.05

IndusInd Bank 333.30 15,639.36 5,359.20 802.61

Yes Bank 360.50 12,793.33 6,307.35 976.99

Federal Bank 410.70 7,024.92 5,558.39 776.79

ING Vysya Bank 380.65 5,725.64 3,856.81 456.30

Karur Vysya 414.00 4,437.27 3,270.37 501.72

JK Bank 907.00 4,396.94 4,835.58 803.25

South Ind Bk 23.40 2,655.79 3,583.43 401.65

StanChart IDR 100.00 2,400.00 - -

City Union Bank 51.85 2,116.58 1,696.77 280.25

Karnataka Bank 95.70 1,802.21 3,112.88 246.07

DCB 40.75 980.74 716.97 55.08

Lakshmi Vilas 70.85 691.08 1,519.26 107.02

Dhanlaxmi Bank 50.25 427.81 1,393.66 -115.63

Goldman BEES 2,858.80 293.32 - -

45
Comparison with Other Banks
160,000.00

140,000.00

120,000.00

100,000.00
Axis Bank
80,000.00
HDFC Bank
60,000.00 ICICI Bank

40,000.00

20,000.00

0.00
Last Price Market Price Net Intrest Price Net Profit

We can see above graph except HDFC & ICICI bank Axis bank has a
good Progress in The banking sector. In short period of time axis bank
compete with big private banking sector firm HDFC & ICICI bank.

46
Balance Sheet Comparison with Other Bank

Balance Sheet ------------------- in Rs. Cr. -------------------


Axis Bank HDFC Bank ICICI Bank Kotak Mahindra

Mar '12 Mar '12 Mar '12 Mar '12

Capital and Liabilities:


Total Share Capital 413.20 469.34 1,152.77 370.34
Equity Share Capital 413.20 469.34 1,152.77 370.34
Share Application Money 0.00 0.30 2.39 0.00
Preference Share Capital 0.00 0.00 0.00 0.00
Reserves 22,395.34 29,455.04 59,250.09 7,610.41
Revaluation Reserves 0.00 0.00 0.00 0.00
Net Worth 22,808.54 29,924.68 60,405.25 7,980.75
Deposits 220,104.30 246,706.45 255,499.96 38,536.52
Borrowings 34,071.67 23,846.51 140,164.91 16,595.52
Total Debt 254,175.97 270,552.96 395,664.87 55,132.04
Other Liabilities & Provisions 8,643.27 37,431.87 17,576.98 2,553.67
Total Liabilities 285,627.78 337,909.51 473,647.10 65,666.46
Axis Bank HDFC Bank ICICI Bank Kotak Mahindra

Mar '12 Mar '12 Mar '12 Mar '12

Assets
Cash & Balances with RBI 10,702.92 14,991.09 20,461.29 2,016.49
Balance with Banks, Money at Call 3,230.99 5,946.63 15,768.02 618.06
Advances 169,759.54 195,420.03 253,727.66 39,079.23
Investments 93,192.09 97,482.91 159,560.04 21,566.81
Gross Block 3,583.67 5,930.24 9,424.39 955.41
Accumulated Depreciation 1,395.12 3,583.05 4,809.70 505.45
Net Block 2,188.55 2,347.19 4,614.69 449.96
Capital Work In Progress 70.77 0.00 0.00 0.00
Other Assets 6,482.93 21,721.64 19,515.39 1,935.91
Total Assets 285,627.79 337,909.49 473,647.09 65,666.46

Contingent Liabilities 449,976.11 844,374.61 858,566.64 17,319.52


Bills for collection 64,895.87 39,610.71 64,457.72 6,166.00
Book Value (Rs) 551.99 127.52 524.01 107.75

47
The segment-wise break-up of restructured
assets as on 31st March 2012 is as follows

Large and Mid-Corporate Credit 79%


SME 8%

Agri. including Micro finance 8%

Capital Markets 5%

Asseta %

Large and Mid-Corporate


Credit
SME

Agri. including Micro finance

Capital Markets

48
The sector-wise breakup of restructured assets
as on 31st March 2012 was as follows:

Textiles 16%
Edible Oils 14%
Petroleum 14%
Shipping 13%
Micro finance 8%
Others 35%

Sectorwise assets

Textiles
Others 16%
35%
Edible Oils
14%

Petroleum
14%
Shipping
13%

Micro finance
8%

49
We see from the above graph that amongst organic means of expansion, branch expansion
finds favor with banks while strategic alliances is the most popular inorganic method for
banks considering scaling up their operations. On the other hand, new ventures and buyout
portfolios are the least popular methods for bank expansion.

50
CHAPTER 5
FINDING & SUGGESTION

51
FINDINGS & SUGGETIONS

Finding:

1. Bank is having 853 branches over the country.

2. The number of branches should be increase.

Suggestions :

1. Number of branches should be increase cover a wider area in


various state

2. A wide publicity to be given about the organization & its product


trough various means of communication to keep growth moments.

3. More number of training & educational programs should be


included in the bank schedule.

4. Developing a learning culture through continuous learning process.

52
CHAPTER 6
RECOMMENDATION

53
RECOMMENDATION

Thought satisfied the manager needs to build up


confidence in his people that he is making sincere efforts
while doing the operations.
The necessary discussion between the managers &
subordinators regarding performance must be done in right
time & Right way.
The reporting Officer clearly conveys to his subordinates
what type of output he wants from them.
Number of branches should be increase cover a wider area
in various state

A wide publicity to be given about the organization & its


product trough various means of communication to keep
growth moments.

More number of training & educational programs should


be included in the bank schedule.

Developing a learning culture through continuous learning


process.

54
CHAPTER 7
CONCLUSION

55
CONCLUSION

Axis bank has developed manifold in short period of time due to facilities
& services provide to their customer & this growth rate can be keep it up
if they start to go in semi urban areas. In last couple of year they have
opened so many branches & they should open many more.

The working staff is very cooperative nature & due to that the
bank will also get good benefit.

Axis bank has provided their customer Net Banking facility &
due to that transaction are done fast , charges at axis bank are on lower
side when we compare it with other

Finance management is the backbone of any organizations and


hence yields a number of job options ranging from strategic financial
planning to sales.

56
CHAPTER 8
BIBLIOGRAPHIES

57
BIBLIOGRAPHY

1. Banking & Finance

2. Banking Development In India

3. Basic Of Banking

4. Bank Leaflet & Boucher

5. Bank Marketing

6. Internet

58
CHAPTER 9
ANNEXURE

59
Questionnaires
1.Nameof Reaspondent_________________________________________
____________________________________________________________.
2.ContactPerson_______________________________________________
____________________________________________________________.
3.ContactNo.__________________________________________________
__________________
4.MonthlyTransaction___________________________________________
__________________
5.Do you Have Current Account?
(a) Yes
(b) No

6.If Yes which banks-


ICICI
HDFC
Kotak Mahindra Bank
Axis Bank
NationalizedBanks_____________________________________________________

Co-OperativeBanks____________________________________________________

7. Which Factors do you consider for opening a Current


Account ?

Accessibility Cheque Pick up

Net Banking Mobile Banking

At Par Cheques NEFT

RTGS Minimum Balance

DD/ Pay Order Free Cheque

Debit Card Cash deposit

8. Which mode of transaction do you avail frequently?


a) Cheque
b) ( b) DD
c) (c) Pay Order

60
9 Which type of transaction do you made
(a) Inter city (b) Intra city (c) Both

10 Does your bank assist you in case of any problem


(a) Yes (b) No

11. What are the additional Benefits do you expect from a Current Account?

_____________________________________________________________________
_____________________________________________________________________

61
62
63
64