Axis Bank Project

A Study On The Benefit Of Marketing Strategies Of Axis Bank
Chapter 1
Introduction
A bank is a financial institution that accepts deposits from the public and
creates credit. Lending activities can be performed eiwhatther directly or indirectly
through capital markets. Due to their importance in the financial stability of a
country, banks are highly regulated in most countries. Most nations have
institutionalized a system known as fractional reserve banking under which banks
hold liquid assets equal to only a portion of their current liabilities. In addition to
other regulations intended to ensure liquidity, banks are generally subject
to minimum capital requirements based on an international set of capital standards,
known as the basel accords.
1. What is banking system

The domain banking system " keeps the day by day tally record as a
complete banking. It can keep the information of account type, account
opening form, deposit, withdrawal, and searching the transaction, transaction
report, individual account opening form, group account. The exciting part of
this project is; it displays transaction reports, statistical summary of account
type and interest, information. banking system " keeps the day by day tally
record as a complete banking. It can keep the information of account type,
account opening form, deposit, withdrawal, and searching the transaction,
transaction reports, individual account opening form, group account. The
major operations in the system are:
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Account opening form

Deposit
Withdrawal
Account type
Searching transaction
Transaction report
2. Need and important of banks

3. Collections of savings and advancing loans
Acceptance of deposit and advancing the loans is the basic function of
commercial banks. On this function, all other functions depend
accordingly. Bank operates different types of accounts for their
customers.
4. Money transfer
Banks have facilitated the making of payments from one place or
persons to another by means of cheques, bill of exchange and drafts,
instead of cash. Payment though cheques, draft is more safe and
convenient, especially in case of huge payments, this facility is a great
help for traders and businessmen. It really enhances the importance of
banks for business community.
5. Encourages savings
Banks perform an invaluable service by encouraging savings among
the people. They induce them to save for profitable investment for
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themselves and for national interest. These savings help in capital

formation.
6. Transfer savings into investment
Bank transfer the savings collected from the people into investment
and thus increase the amount of effective capital, which helps the
process of economic growth
7. Overdraft facilities
The banks allow the overdraft facilities to their trusted customers and
thus help them in overcoming of temporary financial difficulties.
1. Discounting bill of exchange
Importance of banks can be seen through the facility of discounting

bill of exchange. Banks discount their bill of exchange of consumers
and help them in the financial difficulties. By discounting bill of
exchange, they able to get the desire amount for investment they want.
2. Financing internal & external trade
Banks help merchants and traders in financing internal and external

trade by discounting foreign bill of exchange, issuing of letter of
credit and other guarantees for their customers
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3. Act as an agency-
The bank act as a agent and help their customers in the purchase and
sales of shares, provision of lockers payment of monthly and
dividends on stock.
4. Issue of travelers cheques
For the convenience and security of money for travelers and tourists,
bank provides the facility of travelers cheques. These cheques enable
the travelers and tourists to meet their expenses during their journey,
as these are accepted by issuing bankers, restaurants, and other
businessmen both at home and abroad. No doubt, this is also one of
the great functions of banks and shows the importance of banks for us
in more precise ways.
5. General utility services -
Existence of commercial banks is essential for contribution to general

prosperity. Banks are the main factors in raising the level of economic
development of the world. In addition to above-cited advantages,
banks also provide many services of general utilities to the customers
and the general public.
1.2.1 role of commercial banks in the economy
1) Acceptance of deposits, by opening different kinds of bank accounts
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2) Advancing of loans to needy persons through different methods and

requirements
3) Provisions of agency and general utility services to his customers
4) Making new investments in different organizations and increasing the
productive capacity of the country
5) Promote capital formation in the country by mobilizing and collection of
savings for the purpose of investments
6) Development of industries in the country according to the requirements
of the economy
7) A balanced development in the economy is achieved in different sectors
& regions through the resources of bank funds
8) Development in agricultural production is made possible by providing
different
VARIOUS TYPES OF BANK ACCOUNTS
1. Saving account
2. Regular savings
3. Current account
4. Recurring deposit account
5. Fixed deposit account
6. Demat account
7. Nri accounts
1. Saving account
A) basic savings bank deposit accounts (bsbda)

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1. This account will be considered as normal banking service.

2. For this account, maintenance of minimum balance is not required.
5. The above facilities will be given without any charge. There will be no
charge levied for non-operation/ activation of in-operative basic saving bank
deposit account.
6. For this account, overdraft facility will be provided up to rs. 5000/-.
b) basic saving bank deposit accounts small scheme (bsbds)

1. These are accounts with relaxed kyc, with a minimum document requirement
of self-attested address proof & photograph.
2. Total credit should not exceed 1lakh rupees in a year.
3. Maximum balance should not exceed rs. 50,000/- at any time.
4. Cash withdrawals & transfers must not exceed rs.10, 000/- in a month.
5. Remittance from foreign account cannot be credited to this account without
completing normal kyc formalities.
2) regular savings bank account
1. Any resident individual- single accounts, two or more individuals in joint

accounts, associations, clubs etc., are eligible for this account.
2. Modest credit option available to the depositor.
3. Two free cheque books will be issued per year.
4. Internet banking facility will be provided without any charge.
5. Balance enquiry, neft, bill payment, mobile recharge etc., are provided
through mobile phones.
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6.students can open this account with zero balance by providing the required
documents.
3) current account
1. Any resident individual- single accounts, two or more individuals in

joint accounts, associations, limited companies, religious institutions,
educational institutions, charitable institutions, clubs etc., are eligible for
this account.
2. Payments can be done unlimited number of times.
3. Funds can be remitted from any part of the country to the corresponding
account.
4. Overdraft facility will be available.
5. Internet banking facility is available.
4) recurring deposit account
1. Cumulative deposit scheme
1. Any resident individual- single accounts, two or more individuals in
joint accounts, associations, clubs, institutions/agencies specifically
permitted by the rbi etc., are eligible to open this account in single/joint
names.
2. Periodic/monthly installments can be for any amount starting from as
low as rs.50/- onwards.
3. Account can be opened for any period ranging from 6 months to 120
months, in multiple of 1 month.
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5) fixed deposit account

A) short deposit receipt
Banks accepts deposits from customers varying from 7 days to a

maximum of 10 years.
The period of 7 days & above but not exceeding 179 days deposits is
classified as short deposits.
The minimum amount that can be deposited under this scheme is rs. 5
lakh for a period of 7-14 days.
b) fixed deposit receipt

Any resident individual- single accounts, two or more individuals in
joint accounts, associations, minors, societies, clubs etc., are eligible for
this account.
The minimum fdr in metro & urban branches is rs. 10,000/- & in rural &
semi urban & for senior citizens is rs.5000/- .
For the subsidy kept under the government sponsored schemes, margin
money, earnest money & court attached/ordered deposits, minimum
amount criteria will not be applicable.
6. Demat account
Used to conduct stress-free transactions on the shares.
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An individual, non-resident indian, foreign institutional investor, foreign

national, corporate, trusts, clearing houses, financial institution, clearing
member, mutual funds, banks and other depository account.
7) nri accounts:-
A)nro(non-resident-ordinary-rupees)account:-
b)nre(non-resident-external-rupees)account:-
c) fcnr ( foreign currency non-resident ) account:-
Account opening
Nre Nris/pios/ocis(individuals/entities-of-bangladesh/pakistan require prior approval of rbi
Nro Any individual resident outside india
4. Financial services.
financial services are the economic services provided by the finance

industry, which encompasses a broad range of businesses that manage money,
including credit, union banks, credit card companies, insurance companies,
accountancy companies, consumer-finance companies, stock brokerages,
investment funds, individual managers and some government sponsored
enterprises
4.1 fund based services.
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Fund based financial services involve provision of fund against assets, bank
deposits, etc. Fund based income comes mainly from interest spread (the difference
between the interested earned and interested paid), lease rentals, income from
investment in capital market and real estate. Major part of the income is earned
through fund-based activities. At the same time, it involves a large share of
expenditure also in the form of interest and brokerage.
Fund based services are as follows:-

1. Equipment leasing :-
lease is contractual arrangement in which owner of the equipment (lessor),
provides the equipment for the use to another person (lessee), over a certain period
of time and for a consideration of rent at the end of the contract equipment is
returned back to the lessor or it is further renewed. Hence lessee is a device or
method of financing the cost of an a asset. The measure player in leasing are
independent leasing companies, financial companies, investment companies and
banks.
2. Higher purchase :-
higher purchase is a mode of financing the price of the goods to be sold on a
future date. Its a transaction in which goods are let on higher with an option to the
higher to purchase it by paying on installments.
3. Bill discounting :-
it is a fund based service provided by finance companies or banks, bills of
exchange which is a negotiable instrument is used for financing. It is an act of
handing over an endorse bill of exchange for ready money. The margin or
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difference between the ready money and the face value of the bill is called as
discount.
4. Venture capital :-
venture capital is basically equity finance in reductively new companies,
when its too early for it to go to capital market to raise, funds it can also be made
in the form of loans or convertible debentures. It is a long term investment made
by venture fund or venture capital in growth oriented small or medium firms, it
involves high risk but higher returns are also expected. Financial institutions,
banks, private sector companies or rich individual can act as a venture capitalist.
5. Housing finance :-
national housing bank was setup in 1998 as a principle housing finance
institution to provide housing finance as a fund based financial service in the
country. It promotes regulates and support other agencies in housing sector. It
provides financial support to housing finance companies in the form of equity
capital, refinance etc.
6. Factoring:-
factoring means sales or receivables by a company to a financial
intermediary (factory), who agrees to pay a receivables, it is transfer of collection
of receivables and the related maintenance of rewards from the client to the factor.
It is similar to bill of discounted with the factor. Factors collect the receivables,
maintains sales ledger and finance trades debts, factor get commission or fees for
collection of receivables.
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7. Consumer credit :-
consumer credit is a mode of financing consumer durable goods where the
financial service provider act as a intermediary between the seller and buyer.
Consumer is allowed to make payment on installment basis which increased its
purchasing power of the consumer.
8. Mutual fund :-
A mutual fund refers to a fund raised by a financial service company by
pooling the savings of the public. It is invested in diversified portfolio with a view
to spreading and minimizing the risk. It is an investment vehicle i.e. Made up of
pool of funds collected from many investors for the purpose of investing in
securities.
9. Insurance services :-
Insurance is a form of risk management is which the insured transfer the cost
of potential loss to another entity in exchange for monetary compensation known
as premium. It involves transfer of loss exposure of several entity in to a common
pool and redistribution of actual losses among the member of pool.
10. Underwriting in the public issue.

it is an agreement between financial agencies and company. It is an
assurance that public will subscribe for the entire issue of the share made by the
company under writer agrees to buy that part of companys issue which are not
subscribed by the public.
4.2 non-fund based services/ fee based services.
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Fee based income does not involve much risk. But, it requires a lot of
expertise on the part of a financial company to offer such fee / non fund based
services.
Non-fund based / fee based services are as follows:-

1. Credit rating :-
It evaluates the credit worthiness of a debtor, especially a business
(company) or a government. It is an evaluation made by a credit rating agency of
the debtors ability t pay back the debts and the likelihood of defaults. Some credit
rating agencies; icra, crisl, s&p, moodys.
2. Merchant banking :-
Merchant banking includes a wide range of activities such as management of
customer securities, portfolio management, project counseling and appraisal,
underwriting of shares and debentures, loan syndication, acting as banker for the
refund orders, handling interest and dividend warrants etc.
3. loan syndication
similar to consortium financing. Taken up by the merchant banker as a lead
manager. It refers to a loan arranged by a bank called lead manager for a borrower
who is usually a large corporate customer or a government department. Is also
enables the member of the syndication to share the credit associated with a
particular loan among themselves.
4. Portfolio management :-
portfolio management is the process of investment in securities. It involves
proper decision making. A portfolio is a collection of different securities and it
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involves proper money management. Portfolio management is a dynamic and

flexible concept which required continuous 7 systematic analysis, judgment &
operation of banks, few broking firms & investment consultancy organization.
5. Corporate counseling :-
corporate counseling involves advising or guiding the companies in their
activities. Promoters face problems time to time & banks and experts provide
corporate counseling at that time. The area involved can be additional product line,
expansion of business, mergers and acquisition etc.
6. Off-share finance :-
merchant banker helps their clients to obtain long term foreign currency loan
such as euro, dollar etc.
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Chapter 2
5. Types of banks:
some important types of banks in india :-
1. Organized and unorganized banking:
Indian banking system can broadly be classified into two categories:
(i) organized banking :-
organized banking system refers to that part of the indian banking system
which is under the influence and control of the reserve bank of india. For example.
Commercial banks, industrial banks, agricultural banks.
(ii) unorganized banking.
That part of indian banking system which does not fall under the control of
our central bank (i.e. Reserve bank of india) is called as un-organized banking. For
example, indigenous banks.
2. Scheduled and non-scheduled banks:

Under the reserve bank of india act, 1939, banks were classified as
scheduled banks and non scheduled banks.. The scheduled banks are those which
are entered in the second schedule of rbi act, 1939. Scheduled banks are those
banks an which have a paid up capital and reserves of aggregate value of not less
than rs 5 lakhs and which satisfy rbi.
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All commercial banks, regional rural banks, state cooperative banks are scheduled
banks. On the other hand, non-schedule banks are those banks whose total paid up
capital is less than rs 5 lakh and rbi has no specific control over these banks. These
banks are not included in the second schedule of rbi act, 1934.
3. Indigenous bankers:
From very ancient days indigenous banking as different from the modern
western banking has been organized in the form of family or individual business.
They have been called by various names in different parts of the country as shroffs,
sethus, sahukars, mahajans, chettis and so on. They vary in their size from petty
money lenders substantial shroffs.
4. Central bank:
In each country there exists central bank which controls a countrys money
supply and monetary policy. It acts as a bank to other banks, and a lender of last
resort. India reserve bank of india (rbi) is the central bank.
5. Commercial bank:
A bank dealing with general public, accepting deposits from making loans to
large numbers of households and firms. Through the process of accepting deposits
and lending, commercial banks create credit in the economy. Some examples
(commercial banks in india are state bank india (sbi), punjab national bank (pnb)
etc.
6. Development banks:
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Development banks are specialised financial institutions. To promote

economic development, development banks provide medium term and long term
loans the entrepreneurs at relatively low rate o interest rates. Some examples of
development banks in india are industrial development bank of india (idbi),
industrial financial corporation of india (ifci), industrial credit and investment
corporation of india (icici) etc.
7. Co-operative banks:
Co-operative banks are organised under the provisions of the cooperative
societies law of the state. These banks were originally set up in india to provide
credit to the farmers at cheaper rates. However, the co-operative banks function
also in the urban sectors.
8. Land mortgage banks:

The primary objective of these banks is to provide long-term loans to
farmers at low rates in matters related to land, the land mortgage banks are also
known as the land development banks.
9. Regional rural banks:

Regional rural banks (rrbs) are established in the rural areas to meet the
needs of the weaker section of the rural population.
10. National bank for agricultural and rural development (nabard):

This bank was established in 1982 in india in view of providing the rural
credit to the farmers. Actually, it is an apex institution which coordinates the
functioning of different financial institutions working in the field of rural credit.
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Nabard has been making continuous efforts through its micro-finance programme
or improving the access of the rural poor to formal institutional credit.
11. Exchange banks:

These banks are engaged in buying and selling foreign exchange. These
banks help the growth of international trade.
12. Exim bank:

It is popularly known as export import bank. Such banks provide long term
financial assistance to the exporters and importers.
6. Functions of bank :-
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A. PRIMARY FUNCTIONS :-
I.
1. ACCEPTING DEPOSITS :-
Most important function of a bank is to mobilize public funds. Bank provides safe
custody as well as interest to the depositors.
2. SAVING DEPOSIT :-
Saving deposit account meant for those people who wants to save for future needs
and uncertainties. There is no restriction on number and amount of withdrawals.
Bank provides cheque book, atm cum debit card and internet banking facility.
Depositors need to maintain minimum balance which varies across different banks.
3. FIXED DEPOSIT AND TERM DEPOSIT :-
In fixed deposit account, money is deposited for a fixed tenure. Banks issues a
deposit certificate which contains name, address, deposit amount, withdrawal date,
depositor signatures and other important information.
4. CURRENT ACCOUNT :-
Current accounts are normally opened by businesses. Banks provide overdraft

facility for these accounts by which account holder can withdraw more money than
available bank balance. This act as a short term loan to meet urgent needs. Bank
charges high rate on interest and charges for overdraft facility because bank need
to maintain a reserve for unknown demands for overdraft.
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5. RECURRING DEPOSIT :-
In this type of account depositors deposits certain sum of money at regular period
of time. Benefit of recurring account is that it provides benefit of compounded rate
of interest and enables depositors to collect big sum of money.
Ii. Granting loan & advances:-
1. Cash credit :-
It is a short term loan facility under which banks allows its customers to take loan
up to a certain limit, normally bank grants this loan against mortgage of certain
property.
2. Bank overdraft :-
Bank provides this facility to current account holders. Account holder can
withdraw money anytime up to the provided limit. He need to pay interest only on
borrowed amount for the period for which he took loan.
3. Loans :-
Banks providing loans for various kinds of short term as well as long term needs.
Borrower pay back the loan in installments.
4. Bill discounting :-
In normal day to day business, sellers sends bills to buyer whenever they sell their
products and it is mentioned in bill to make payment in stipulated time. Lets take it
30 days. In such conditions seller may discount the bill from bank for some fees. In
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such situation bill discounting acts as short term loan. In case the buyer or the
drawer defaults, bank send the bill back to seller to drawer so that he may take
legal action against drawee or buyer.
B. Secondary functions
1. Agency functions :-
Funds transfer
Cheques collection
Periodic payments/collection
Portfolio management.
2. Utility functions :-
1. Issue of draft, letter of credit etc :-
Letter of credit acts as an assurance that in case the borrower defaults in
making the payment, bank will make the payment up to the amount mentioned
in letter of credit
Locker facility
Underwriting of shares
Dealing in foreign exchanges
Project reports
Social welfare programs
7. Challenges of banking industry:-
1. Asset quality:-
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The biggest risk to india's banks is the rise in bad loans. The slowdown in the
economy in the last few years led to a rise in bad loans or non-performing
assets (npas). These are loans which are not repaid back by the borrower. They
are, thus, a loss for the bank. Net npas amount to only 2.36% of the total loans
in the banking system. This may not seem like an alarming figure.
2. Capital adequacy:-
One way a bank tries to ensure it is protected from bad loans is by setting aside
money as a 'provision'. This money cannot be used for any other purposes
including lending. As a result, banks have lower capital available to use for its
various operations. The capital adequacy ratio measures how much capital a bank
has. When this falls, the bank has to borrow money or use depositors' money to
lend. This money, however, is riskier and costlier than the bank's own capital. For
example, a depositor can withdraw his/her money any time they want. So, a fall in
car (often called as crar or capital to risk assets ratio) is worrisome.
3. Unhedged forex exposure:-
"the wild gyrations in the forex market have the potential to inflict significant
stress in the books of indian companies who have heavily borrowed abroad,"
mundra said in his speech. This stress can affect their ability to pay back debt
to indian banks. As a result, the rbi wants banks to ensure companies they lend
to do not expose themselves to unnecessary debt in dollars.
4. Employee and technology:-

Public-sector banks are seeing more employees retire these days. So, younger
employees are replacing the elder, more-experienced employees. This,
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however, happens at junior levels. As a result, there would be a virtual vacuum

at the middle and senior level. "the absence of middle management could lead
to adverse impact on banks' decision making process.
5. Balance sheet management:-

In the past few years, many banks have tried to delay setting aside money as
provisions (for future bad loans). One reason for this is that a bank's chief
executives have a short tenure, during which time they want to post higher net
profits and cheer investors. "it must be appreciated that ceos/ cmds would
come and go but the institutions are perpetual entities. The only thing which
can perpetuate their existence is a stronger and healthier balance sheet,"
mundra said.
8. Weakness of banking :-
1. Lack of coordination:-
The global banking industry faces short-term uncertainty due to the debt
crises that challenge several major economies. Industry assets stand at $143
trillion (2013)&the eu is the largest regional market, with over 57% of the
global market. Volatility in different market/currencies has created problems
for the banks in order to work properly across the borders.
2. Vulnerable to risk:-
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since this sector deals with finances, it is the most risky sector which can
change the fate of any business/industry.
3. High npas:-
Rise in retail & corporate npas (non-performing assets) is the single major
issue this sector is going through worldwide.
4. Cant reach to under-penetrated market:-
Due to several conflicting objectives of government & banks which goes

hand in hand, rural areas of developing nations are still not in the shadow of
banks. Although pmjdy (pradhan mantri jan dhan yojna) implemented by the
indian banks got acknowledged by world bank for financial inclusion but the
idea is not fully capitalized even in the home country.
5. Structural weaknesses :-
Such as a fragmented industry structure, restrictions on capital availability

and deployment, lack of institutional support infrastructure, restrictive labor
laws, weak corporate governance, political pressure and ineffective
regulations.
9. Strength in banking:-
1. Banking is as old as human race :-
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banking industry is the driving force to any nation. It helps in shaping the
life of human race may be some time merely by exchange (which was called
barter system), or by transaction or by facilitating advances.
2. Source of employment & gdp growth :-
There is a consensus among economists that development of the financial

system contributes to economic growth. Financial development creates
enabling conditions for growth through either a supply-leading (financial
development spurs growth) or a demand-following. It is this industry which
continuously works to secure financial stability, facilitate international trade,
promote employment, & reduce poverty around the world.
3. Hedge from risk :-
Whether it is natural calamity or man-made calamity banks mitigate the

after effect of the destruction by providing financial support to the victims to
stand up & lead a peaceful life again.
4. Diversified services:-
banking industry offer services from casa to insurance, to loan, to

investment.
5. Connecting people:-
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with the advent of new age technological advancement banks have made the
life of the common man easier. People can transact on real time basis in
many places.
6. Changing from mere savings & loan facilitator role:-
top priorities of banks now days include regulatory compliance, improving

asset quality, enhancing customer centricity, focusing on digital convergence,
and tackling competition from non-banks. Banks are therefore making business
and technology investments to change their business models.
10. Opportunities in banking:-
1. Expansion:-
penetrating to the rural markets & bringing the rural masses under the
purview of organized banking will be the objective of the banks in decades to
come.
2. Changing socio-cultural & demographic factors:-
given the demographic shifts resulting from changes in age profile and
household income, consumers will increasingly demand enhanced
institutional capabilities and service levels from banks.
3. Rise in private sector banking:-
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banking industry across the world is highly regulated &lead by psus with
their respective central banks. With the advent of private sector banks this
sector is going through structural & functional changes mainly due to the
adaptation of the advanced technologies & increased competition thereby
benefiting to the end customers.
11. Threats of banking:-
1. Recession:- It is one of the major threats to the financial system of the

nation. Traumatic shock of economic crises & collapse of the several
businesses can affect the banks and vice-versa.
2. Stability of the system:-
Failure of some weak banks has often threatened the stability of the system.
3. Competition:-
competition from nbfcs (non-banking financial companies) like insurance

companies & mutual fund companies can affect the business of banks.
12. Review of literature:-
Review of literature has vital relevance with any research work due to
literature review the possibility of repetition of study can be eliminated and another
dimension can be selected for the study. The literature review helps researcher to
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remove limitations of existing work or may assist to extend prevailing study.

Several research have been conducted to analyse the different aspects of
performance of commercial banks in india and abroad. But there are very few
research and literature available on the subject related to financial reforms and its
impact on indian banks. The available literature and research are divided into four
major parts according to the area of research i.e literature related to: 1. Review of
literature related to performance appraisal of banks 2. Review of literature related
to policy framework and recommendations for banks 3. Review of literature
related to impact of reforms on indian banks 4. Review of literature related to
service quality of indian banks2 the above mentioned literature have been obtained
from following four major sources such as (i) ph.d. Research conducted in india,
(ii) the research / studies carried over by the institutions like rbi, icra limited and
business magazines like financial express, business today, money outlook, business
india, etc. And (iii) research studies of individual scholars published in journals
and magazines and (iv) websites of rbi, govt. Of india and websites of various
banks. The present study is undertaken in the light of the methodology adopted and
conclusions emerged in the earlier studies relating to the performance evaluation,
financial reforms and their impact on the indian banking sector.
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Chapter 3
1.introduction of axis bank:
Commercial banking services which includes merchant banking, direct finance

infrastructure finance, venture capital fund, advisory ,trusteeship, forex, treasury
and other related financial services. As on31-mar-2009, the group has 827
branches, extension counters and3,595 automated teller machines (atms). 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 today is
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capitalized to the extent of rs. 359.76crores with the public holding (other than
promoters) at 57.79%.thebank's registered office is at ahmadabad and its central
office is located at mumbai. The bank has a very wide network of more than853
branches and extension counters (as on 30th june 2009). Thebank has a network of
over 3723 atms (as on 30th june 2009)providing 24 hrs a day banking convenience
to its customers. This isone of the largest atm networks in the country. The bank
hasstrengths in both retail and corporate banking and is committed toadopting the
best industry practices internationally in order to achieveexcellence.
1.2 COMPANY PROFILE
Promoters: Axis Bank Ltd. has been promoted by the largest and the
best Financial Institution of the country, UTI. The Bank was set up witha 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 Croreeach SUUTI - Shareholding
27.02%Erstwhile Unit Trust of India was setup 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 from1st 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
Page 30
the schemes under UTI where Government has continuing obligations and
commitments to the investors, which it will uphold.
ORGANIZATION STRUCTURE OF AXIS BANk
Page 31
1.3 MISSION & VISION
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.
Efficiency and effectiveness built on ethical practices.
Values
Customer Satisfaction through

Providing quality service effectively and efficiently
Smile, it enhances your face value" is a service quality stressed on
Periodic Customer Service Audits
Maximization of Stakeholder value

Success through Teamwork, Integrity and People
VISION 2015:
To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered employees and smart use of
technology
Page 32
2.MARKETING STRATEGY
1. Marketing strategy is a process that can allow an organization to concentrate

its limited resources on the greatest opportunities to increase sales and achieve a
sustainable competitive advantage
2. Developing a marketing Strategy -

Marketing strategies serve as the fundamental underpinning of marketing
plans designed to fill market needs and reach marketing objectives. Plans and
objectives are generally tested for measurable results. Commonly, marketing
strategies are developed as multi-year plans, with a tactical plan detailing specific
actions to be accomplished in the current year. Time horizons covered by the
marketing plan vary by company, by industry, and by nation, however, time
horizons are becoming shorter as the speed of change in the environment
increases. Marketing strategies are dynamic and interactive. They are partially
planned and partially unplanned. See strategy dynamics.
Marketing strategy involves careful scanning of the internal and external

environments which are summarized in a SWOT analysis. Internal environmental
factors include the marketing mix, plus performance analysis and strategic
constraints. External environmental factors include customer analysis, competitor
analysis, target market analysis, as well as evaluation of any elements of the
technological, economic, cultural or political/legal environment likely to impact
success. A key component of marketing strategy is often to keep marketing in line
with a company's overarching mission statement.
Page 33
2. Types of strategy-:
Marketing strategies may differ depending on the unique situation of the individual
business. However there are a number of ways of categorizing some generic
strategies. A brief description of the most common categorizing schemes is
presented below:
Strategies based on market dominance - In this scheme, firms are classified

based on their market share or dominance of an industry. Typically there are
four types of market dominance strategies:
Leader
Challenger
Follower
Nicher
Porter generic strategies - strategy on the dimensions of strategic scope and
strategic strength. Strategic scope refers to the market penetration while
strategic strength refers to the firms sustainable competitive advantage. The
generic strategy framework (porter 1984) comprises two alternatives each with
two alternative scopes. These are Differentiation and low-cost leadership each
with a dimension of Focus-broad or narrow.
Product differentiation (broad)
Cost leadership (broad)
Market segmentation (narrow)
Innovation strategies - This deals with the firm's rate of the new product
development and business model innovation. It asks whether the company is on
the cutting edge of technology and business innovation. There are three types:
Page 34
Pioneers
Close followers
Late followers
Growth strategies - In this scheme we ask the question, How should the firm
grow?. There are a number of different ways of answering that question, but
the most common gives four answers:
Horizontal integration
Vertical integration
Diversification
Intensification
1. Market analysis -
A Market analysis is a documented investigation of a market that is used to

inform a firm's planning activities particularly around decisions of inventory,
purchase, work force expansion/contraction, facility expansion, purchases of
capital equipment, promotional activities, and many other aspects of a company.
2. Market size-
The most common measure of market size is the sum of the revenues of its
participants. The following are examples of information sources for determining
market size:
Government data
Trade association data
Page 35
Financial data from major players

Customer surveys
3. Market trends
Changes in the market are important because they often are the source of new
opportunities and threats. Moreover, they have the potential to dramatically affect
the market size.
Examples include changes in economic, social, regulatory, legal, and political

conditions and in available technology, price sensitivity, demand for variety, and
level of emphasis on service and support.
4. Market growth rate

A simple means of forecasting the market growth rate is to extrapolate historical
data into the future. While this method may provide a first-order estimate, it does
not predict important turning points. A better method is to study market trends and
sales growth in complementary products. Such drivers serve as leading indicators
that are more accurate than simply extrapolating historical data.
Important inflection points in the market growth rate sometimes can be predicted
by constructing a product diffusion curve. The shape of the curve can be estimated
by studying the characteristics of the adoption rate of a similar product in the past.
Ultimately, many markets mature and decline. Some leading indicators of a

market's decline include market saturation, the emergence of substitute products,
and/or the absence of growth drivers.
Page 36
5. Market segments
Markets are not uniform. Therefore it is also important for investors to identify and
evaluate the various segments that make up the total market. This analysis helps
organizations determine which areas account for the greatest share of the market's
growth and are more susceptible to change. This information, in turn, helps them
pinpoint the most promising opportunities within the overall market and guides the
choice of specific investments.
6. Market profitability
While different organizations in a market will have different levels of profitability,
they are all similar to different market conditions. Michael Porter devised a useful
framework for evaluating the attractiveness of an industry or market. This
framework, known as Porter's five forces, identifies five factors that influence the
market profitability:
Buyer power
Supplier power
Barriers to entry
Threat of substitute product.
7. Industry cost structure
The cost structure is important for identifying key factors for success. To this end,
Porter's value chain model is useful for determining where value is added and for
isolating the costs.
Page 37
The cost structure also is helpful for formulating strategies to develop a

competitive advantage. For example, in some environments the experience curve
effect can be used to develop a cost advantage over competitors.
8. Distribution channels
Examining the following aspects of the distribution system may help with a market
analysis:
Existing distribution channels - can be described by how direct they are to the
customer.
Trends and emerging channels - new channels can offer the opportunity to
develop a competitive advantage.
Channel power structure - for example, in the case of a product having little
brand equity, retailers have negotiating power over manufacturers and can
capture more margin.
9. Success factors
The key success factors are those elements that are necessary in order for the firm
to achieve its marketing objectives. A few examples of such factors include:
Access to essential unique resources

Ability to achieve economies of scale
Access to distribution channels.
Page 38
4.COMPETER ANALISE-:
COMPETETIORS-:
1.ICICI Bank Ltd.
2.HDFC Bank Ltd.
3.State Bank of India
4.HSBC Bank
5.RBS (Royal Bank of Scotland)
6.Maharashtra Bank of India
7.Canara Bank
8.Andhra Bank
9.IDBI bank
10.Bank of India
11.Punjab National Bank
12.Central Bank
13.Allahabad Bank
14.ING Vysya
15.Centurion Bank
Page 39
5.COMPANY ANALYASIS
Strengths-
Competitive and profitable banking franchise

High level of services
Knowledge of Indian Market
Supported by various promoters
Services updated by latest technology
Weakness-
Competitiveness of cost of services

Market capitalization is low
Positioning
UTI fraud
Customer service
Opportunities-
Large retail and corporate market

Wide scope in the rural market
Competitive banking services
Foreign Markets
Threats-
Established Governments Banks

Established and growing MNC Banks
Advent and growth of foreign Banks
Page 40
Chapter 4
Research methodology-
All the findings and conclusions obtained are based on the survey done in the
working area within the time limit. I tried to select the sample representative of the
whole group during my study. I have collected data from people linked with
different profession at sagar.
(1 ) RESEARCH PLAN:
1.1 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.
1.2. Exploratory Study: To determine the approximate area where the

problem lies.
(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 system and primary data will help to validate the analysis of
secondary data besides on unrevealing the areas which calls for improvement.
Page 41
2.1 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 questionnaire was framed as it is less time
consuming, generates specific and to the point in formation, 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.
2.2 COLLECTION OF DATA
1: Secondary Data: It was collected from internal sources. The secondary

data 0was collected on the basis of organizational file, official records, news
papers, magazines, management books, preserved information in the
companys database and website of the company.
2: Primary data: All the people from different profession were personally
visited and inter viewed. They were the main source of Primary data. The
method of collection of primary data was direct personal interview through a
structured questionnaire.
(3 )SAMPLING PLAN:
Since it is not possible to study whole universe, it becomes necessary to take

sample from the universe to know about its characteristics.
Sampling Units: Different professionals Chartered Accountants, Tax

Consultants, Lawyers, Business Man, Professionals and House Wives of
Pune.
Page 42
Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.
(4) SAMPLE SIZE:
My sample size for this project was 50 respondents. Since it was not
possible to covert he whole universe in the available time period, it was necessary
for me to take a sample size of 50 respondents.
Page 43

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A Study On The Benefit Of Marketing Strategies Of Axis Bank

1. What is banking system

Account opening form

2. Need and important of banks

themselves and for national interest. These savings help in capital

1. Discounting bill of exchange

Importance of banks can be seen through the facility of discounting

2. Financing internal & external trade

Banks help merchants and traders in financing internal and external

4. Issue of travelers cheques

5. General utility services -

Existence of commercial banks is essential for contribution to general

1.2.1 role of commercial banks in the economy

1) Acceptance of deposits, by opening different kinds of bank accounts

2) Advancing of loans to needy persons through different methods and

VARIOUS TYPES OF BANK ACCOUNTS

A) basic savings bank deposit accounts (bsbda)

1. This account will be considered as normal banking service.

b) basic saving bank deposit accounts small scheme (bsbds)

2) regular savings bank account

1. Any resident individual- single accounts, two or more individuals in joint

1. Any resident individual- single accounts, two or more individuals in

5) fixed deposit account

Banks accepts deposits from customers varying from 7 days to a

b) fixed deposit receipt

An individual, non-resident indian, foreign institutional investor, foreign

Nre Nris/pios/ocis(individuals/entities-of-bangladesh/pakistan require prior approval of rbi

Nro Any individual resident outside india

financial services are the economic services provided by the finance

4.1 fund based services.

Fund based services are as follows:-

10. Underwriting in the public issue.

4.2 non-fund based services/ fee based services.

Non-fund based / fee based services are as follows:-

involves proper money management. Portfolio management is a dynamic and

(ii) unorganized banking.

2. Scheduled and non-scheduled banks:

Development banks are specialised financial institutions. To promote

8. Land mortgage banks:

9. Regional rural banks:

10. National bank for agricultural and rural development (nabard):

11. Exchange banks:

12. Exim bank:

3. FIXED DEPOSIT AND TERM DEPOSIT :-

Current accounts are normally opened by businesses. Banks provide overdraft

Ii. Granting loan & advances:-

3. Unhedged forex exposure:-

4. Employee and technology:-

however, happens at junior levels. As a result, there would be a virtual vacuum

5. Balance sheet management:-

4. Cant reach to under-penetrated market:-

Due to several conflicting objectives of government & banks which goes

Such as a fragmented industry structure, restrictions on capital availability

1. Banking is as old as human race :-

2. Source of employment & gdp growth :-

There is a consensus among economists that development of the financial

3. Hedge from risk :-

Whether it is natural calamity or man-made calamity banks mitigate the

banking industry offer services from casa to insurance, to loan, to

6. Changing from mere savings & loan facilitator role:-

top priorities of banks now days include regulatory compliance, improving

10. Opportunities in banking:-

2. Changing socio-cultural & demographic factors:-