SUMMER TRAINING REPORT ON

INVESTMENT OPPORTUNITIES AT AXIS BANK

“SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE

REQUIREMENT OF POST GRADUATE DIPLOMA IN MANAGMENT”
( PGDM-A)

SUBMITTED TO SUBMITTED BY
DR. SANIYA CHAWLA KARISHMA WALIA
ASSOCIATE PROFESSOR, JIMS 38
PGDM(IV-A)
2015-2017

JAGANNATH INTERNATIONAL MANAGEMENT SCHOOL

KALKAJI, NEW DELHI

1
 STUDENT DECLARATION

This is to certify that I have completed this project on “INVESTMENT

OPPORTUNITIES AT AXIS BANK” under the guidance of Dr Saniya Chawla in
partial fulfilment of the requirement of Post Graduate Diploma in Management at
JIMS, Kalkaji, Delhi. This is an original piece of work and I have not submitted it
earlier elsewhere.

Date: Signature:
Place: Delhi Name: KARISHMA WALIA
Roll No. : 38

2
 CERTIFICATE FROM INTERNAL MENTOR

This is to certify that this summer training project entitled ““INVESTMENT

OPPORTUNITIES AT AXIS BANK” is an academic work done by Karishma Walia
submitted in partial fulfillment of the requirement of the Post Graduate Diploma in
Management at JIMS, Kalkaji, Delhi under my guidance and direction. Her work is up
to my satisfaction. To the best of my knowledge and belief the data and information
presented by her in the project has not been submitted earlier.

Signature:
Name of the Mentor: DR.SANIYA CHAWLA

3
4
 CONTENTS

S.NO. TOPIC PAGE NO.

1. CHAPTER 1 : INTRODUCTION 8

2. CHAPTER 2 : COMPANY PROFILE 12

3. CHAPTER 3 : RESEARCH METHODOLOGY 47

4. CHAPTER 4 : ANALYSIS AND INTERPRETATION 49

5. CHAPTER 5 : FINDINGS 61

6. CHAPTER 6 : CONCLUSION AND 62

RECOMMENDATIONS 63

7. CHAPTER 7 : EPILOGUE 64
 APPENDIX 66

5
 ACKNOWLEDGEMENT

A lot of effort has gone into this Summer Internship Project. My thanks are due to
many people with whom I have been closely associated.

I would like to thank all those who have contributed in completing this project. First of
all, I would like to send my sincere thanks to Mrs. SUMAN HURIA my external
mentor for all the efforts and time he took out from his hectic schedule to guide, and
Dr. SANIYA CHAWLA my internal mentor for her helpful hand in the completion of
my project.

I would like to thank my entire beloved family & friends for providing me monetary as
well as non – monetary support, as and when required, without which this project
would not have completed on time. Their trust and patience is now coming out in
form of this thesis.

Thanking you,

Karishma walia

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 EXECUTIVE SUMMARY

An investment product is a product purchased with the expectation of earning a

favourable return. Investment products can be income-producing, as with fixed-

interest earning products, or more speculative in nature, as with stocks and

options.The study was about various investment products available at Axis bank and

the investors awareness about various third party products. It was taken into account

various life insurance products , general insurance products and various mutual

funds. Later, the study evaluate the various ratios to appreciate their impact on

Bank’s performance over the last five years. The financial statements of last five

years are identified, studied and interpreted in light of Bank’s performance. The

comparison with the HDFC bank has also done in order to study various services

offered and various ratios operated. The research was done with the help of Primary

data and Secondary Data. The sample size for the study was 100 respondents.The

research was done with the objective of analysing the investing in mutual funds

awareness .In this study, it has been found that only 46 % of the people are aware

of the mutual funds investment and rest 54% invest in some other investment

avenues market because of higher transactions costs. Since almost everyone had

access to the worldwide web, they can get all the details online and get registered

into these investment and benefits . Many businesses and individual traders have

entered the mutual funds market through online brokers rather than trading through

bank desks or other proprietary trading firms.

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 CHAPTER - 1
INTRODUCTION TO THE INDUSTRY

1.1 BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should
be able to meet new challenges posed by the technology and any other external and
internal factors. For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach. It is
no longer confined to only metropolitans or cosmopolitans in India. In fact, Axis
banking system has reached even to the remote corners of the country. This is one
of the main reasons of India's growth process. HISTORY: The first bank in India,
though conservative, was established in 1786. From 1786 till today, the journey of
Axis Banking System can be segregated into three distinct phases. They are as
mentioned below: ·
PHASE I - Early phase from 1786 to 1969 of Axis Banks
PHASE II - Nationalization of Axis Banks and up to 1991 ·
PHASE III - Axis Financial & Banking Sector Reforms after 1991.

PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal Bank. The East India Company established • Bank of Bengal
(1809), • Bank of Bombay(1840) and • Bank of Madras (1843) as independent units
and called it Presidency Banks. These three banks were amalgamated in 1920 and
Imperial Bank of India was established which started as private shareholders banks,
mostly Europeans shareholders. During the first phase the growth was very slow and
banks also experienced periodic failures between 1913 and 1948. There were
approximately 1100 banks, mostly small. To streamline the functioning and activities
of commercial banks, the Government of India came up with The Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as
per amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested

8
with extensive powers for the supervision of banking in India as the Central Banking
Authority. During those day’s public has lesser confidence in the banks. As an
aftermath deposit mobilization was slow. Abreast of it the savings bank facility
provided by the Postal department was comparatively safer. Moreover, funds were
largely given to the traders.

PHASE II:

Government took major steps in this Axis Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of
nationalization Axis Banking Sector Reform was carried out in 1980 with seven more
banks. This step brought 80% of the banking segment in India under Government
ownership. The following are the steps taken by the Government of India to Regulate
Banking Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India
1959: Nationalization of SBI subsidiaries
1961: Insurance cover extended to deposits
1969: Nationalization of 14 major banks
1971: Creation of credit guarantee corporation
1975: Creation of regional rural banks
1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised
to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.

PHASE III

This phase has introduced many more products and facilities in the banking sector
in its reforms measure. In 1991, under the chairmanship of M Narasimham, a
committee was set up by his name which worked for the liberalization of banking
practices. The country is flooded with foreign banks and their ATM stations. Efforts
9
are being put to give a satisfactory service to customers. Phone banking and net
banking is introduced. The entire system became more convenient and swift. The
financial system of India has shown a great deal of resilience. It is sheltered from any
crisis triggered by any external macroeconomics shock as other East Asian
Countries suffered. This is all due to a flexible exchange rate regime, the Foreign
Reserves are high, the capital account is not yet fully convertible, and banks and
their customers have limited foreign exchange exposure

1.2NATIONALIZED BANKS IN INDIA

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

1.3 PRIVATE BANKS

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

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 1.4 OBJECTIVE OF THE STUDY
With this discussion, the objectives of the study are:

 To analyse the investors awareness regarding mutual fund investment .

 To analyse the financial ratios of past 5 years in comparison with HDFC Bank.

1.5 SCOPE OF STUDY

There were 100 respondents taken from Axis bank.

Next chapter 2

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 SEGMENTS OF AXIS BANKS

SERVICES
Axis Bank operates in four segments:
1. Treasury operations.
2. Retail banking.
3. Corporate banking
4. Wholesale banking.

Treasury operations

The Bank’s treasury operation services include investments in sovereign and

corporate debt, equity and mutual funds, trading operations, derivative trading and
foreign exchange operations on the account, and for customers and central funding.

Retail banking

In the retail banking category, the bank offers services such as lending to
individuals/small businesses subject to the orientation, product and granularity
criterion, along with liability products, card services, Internet banking, automated
teller machines (ATM) services, depository, financial advisory services, and Non-
resident Axis (NRI) services.[3]Axis bank is a participant in RBI's NEFT enabled
participating banks list.

Corporate/wholesale banking

The Bank offers to corporate and other organisations services including corporate
relationship not included under retail banking, corporate advisory services,
placements and syndication, management of public issues, project
appraisals, capital market related services and cash management services.

12
NRI services

Products and services for NRIs that facilitate investments in India.

Business banking

The Bank collects income and other direct taxes through its 214 authorised branches
at 137 locations and central excise and service taxes (including e-Payments) through
56 authorised branches at 14 locations.

Investment banking

Bank’s Investment Banking business comprises activities related to Equity Capital

Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-
registered Category I Merchant Banker and has been active in advising Axis
companies in raising equity through IPOs, QIPs, and Rights issues etc. During the
financial year ended 31 March 2012, Axis Bank undertook 9 transactions including 5
IPOs and 2 Open Offers.

Lending to small and medium enterprises

Axis Bank SME business is segmented in three groups: Small Enterprises, Medium
Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup
for financing micro enterprises is also set up.[3] Axis bank is the first Axis Bank
having TCDC cards in 11 currencies.

Agriculture banking

759 branches of the Bank provide banking services, including agricultural loans, to
farmers.[3] As on 31 March 2013, the Bank’s outstanding loans in the agricultural
sector was INR 148 billion, constituting 7.5% of its total advances.

13
Advisory Services have been developed to advise public and private sector clients
on capital structuring and funding options with a view to help the clients to help them
reduce the cost of funds. The Group has also been active in advising the central and
various state governments or their agencies in privatisation and bid process
management. The Group has successfully worked on some of the benchmark
transactions in infrastructure development & manufacturing sector covering an entire
range of projects across roads, railways, airports, urban infrastructure maritime,
power, oil and gas, petrochemicals, cement, sugar, textiles, steel & allied sectors,
auto ancillaries, paper, Information Technology (IT), etc.

Ping Pay was unveiled between 21–25 May 2015, which is a multi-social payment
solution that let customers to transfer funds using their smart phones to both Axis
Bank accounts and other banks' account holders.

2.4 INVESTMENT PRODUCTS

2.4.1ABOUT MAX LIFE INSURANCE

Vision
'To be the most admired life insurance company by securing the financial future of
the customers'
Mission
 We are an honest life insurance company, committed to doing what is right.
 We serve our customers through Long Term
Savings, Protection and Retirement Solutions, delivered by our high quality
Agency and Multi Channel Distribution Partners
 We are business with strong social relevance and contribute to society by
supporting causes in health and well-being
Our Values
Caring :Listens with respect and values differences – Acts with compassion
Credibility : Demonstrates knowledge and creates trust in others
Collaborative : Works together to achieve results
Excellence :Pursues highest quality

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2.4.2ABOUT GENERAL INSURANCE

Tata AIG General Insurance Company Limited is an Axis general insurance

company, and a joint venture between the Tata Group and American International
Group . Tata Group holds 74 per cent stake in the insurance venture with AIG
holding the balance 26 percent. Tata AIG General Insurance Company, which
started its operations in India on 22 January 2001, provides insurance to individuals
and corporates. It offers a range of general insurance products including insurance
for automobile, home, personal accident, travel,
energy, marine, property and casualty as well as several specialized financial lines.
The Company's products are available through various channels of distribution
like agents, brokers, banks (through bank assurance tie ups) and direct channels
like Telemarketing, Digital Marketing, worksite etc.

2.4.3 MUTUAL FUNDS

Mutual funds are an easy and tension free way of investment and it automatically
diversifies the investments. A mutual fund is an investment mix of debts and equity
and ratio depending on the scheme. They provide with benefits such as professional
approach, benefits of scale and convenience. In mutual funds also, we can select
among the following types of portfolios:
Equity Schemes
Debt Schemes
Balanced Schemes
Sector Specific Schemes etc.

 LIFE INSURANCE PRODUCTS

1. MAX LIFE GAIN PLUS

Max Life Gain Plus® 20/25 Participating Plan provides a unique opportunity where
you could just relax without worrying about your lifestyle. It's like an extended
vacation from where you need not come back, because your wealth continues to
grow and your lifestyle is guaranteed.

15
 Policy Features :-
 Guaranteed Maturity Benefit – 110% of Sum Assured Plus accrued bonuses, if any.
 Guaranteed Death Benefit – 200% of Sum Assured Plus accrued bonuses, if any,
from 5th policy anniversary onwards
 Flexible Bonus Options
 Limited Premium Payment Term

2. MAX LIFE GUARANTEED INCOME PLAN

Life is all about fulfilling your dreams for your family, like providing for children’s
education, planning for retirement, etc. However, in an environment which is full of
uncertainty and volatility, you need surety that these dreams will be fulfilled, even if
you are not around.

KEY BENEFITS AND FEATURES ;-

1. Guaranteed Tax Free* Monthly Income
Start enjoying guaranteed tax free* monthly Income Benefit for 10 years,
immediately after the Policy Term (Payout Period)
2. Guaranteed Income that doubles after 5 years
Guaranteed monthly income offered in first five years of the payout period is doubled
in the remaining five years. Additionally the plan also offers you guaranteed tax free*
Terminal Benefit at the end of Payout Period.
3. Guaranteed Protection with choice of payout options on death
The plan offers guaranteed Death Benefit. On death during the Policy Term, the
nominee can choose to select either a) Lump sum Death Benefit or b) Income for 10
years post death
4. Flexibility to choose Policy Term
The plan offers flexibility to choose from two Policy Term options; 6 years or 12
years Policy Term, depending on your financial goals. The Premium Payment Term
will be equal to the chosen Policy Term.

3. MAX LIFE FAST TRACK SUPER PLAN

FEATURES:

16
 Max Life Fast Track Super plan is an insurance scheme that protects you against
unforeseen events and helps you grow your money too. The plan is ideal if you wish
to avail protection for your loved ones and also want to invest your money for
financial growth.
 Sum Assured
Sum assured for Max Life Fast Track Super Plan is based on the annualized
premium paid by you. The maximum sum assured has no limit and is subject to
underwriting. Minimum sum assured is Rs.1,25,000 for single pay, Rs.5,00,000 for 5
pay and Rs.2,50,000 for regular pay.
 Premiums
Minimum annualized premium for single pay is Rs.1,00,000 for 5 pay it is Rs.50,000
and for regular pay the minimum annualized premium is Rs.25,000.
 Premium-paying Term
Premium paying frequency Single Pay/5 years (5 pay)/20 years (regular pay)
 Basis
Max Life Fast Track Super Plan is a non-participating unit-linked endowment plan
 Policy validity
Max Life Fast Track Super Plan is available for 10 years for single pay and 5 pay
and for 20 years for regular pay
 Floater/individual policy
The Max Life Fast Track Super Plan is an individual insurance policy
 Partial Withdrawals
After 5 years of availing policy, a maximum of two withdrawals per year can be made
Key advantages of Max Life Fast Track Super Plan
Max Life Fast Track Super Plan is loaded with superb benefits for customers.

4. MAX LIFE SHIKSHA PLUS

Policy Features :-
1. Family Income Benefit (FIB) – An amount equal to 10% of the Sum Assured will be
paid on each Policy anniversary following or coinciding with the Date of Death of the
Life Insured till the end of the Policy Term, but not exceeding 10 such installments

17
 A minimum of 3 such installments are guaranteed in case of Death of the Life
Insured any time during the Policy Term. In case of Death when less than three
Policy anniversaries are left till the end of Policy Term, any excess installments, to
meet the minimum requirement of three installments, will be paid on the Maturity
Date

2. Funding of Premium (FOP) - Under this Benefit, the Company will fund all future
premiums payable under the Policy as and when due and the Fund Value will be
paid on maturity
The Policy will continue even after the Death of the Life Insured till the end of the
Policy Term. All the benefits under the Policy shall be payable to the beneficiary.

GENERAL INSURANCE
AXIS Bank has a Corporate Agency partnership with TATA AIG General Insurance to
distribute General Insurance products. The various General Insurance products available
for sale at AXIS Bank branches are:

 HEALTH INSURANCE
 MOTOR INSURANCE
 PERSONAL ACCIDENT COVER
 HOME INSURANCE
 TRAVEL INSURANCE

1. HEALTH INSURANCE-<TATA AIG MEDIPRIME>

Key Features:-
 No medicals on enrollment – Upto 50 years and/or for sum assured uptoRs 5 lacs
 Comprehensive hospitalization coverage withoutany sub-limits
o On inpatient treatment expenses

18
 o On day care procedures expenses
o On domiciliary treatment
o On organ donor expenses
 Tax savings U/S 80D – Upto Rs 35,000*
 Cashless hospitalization at 5000+ hospitals

2. MOTOR INSURANCE<PRIVATE CAR INSURANCE>

Private Car Insurance

In todays time,car is a our valued possession. Therefore, it becomes crucial to insure
it. So ,one must need a comprehensive policy that not only covers against the
mandatory third party liability but also against the damage to the vehicle caused due
to fire, theft, explosion, burglary, riots, strikes, earthquakes, flood, cyclones,
accidents, malicious acts and terrorist activities.
Auto Secure, a car insurance policy from Tata AIG, has been designed to give the
extra assurance.
Key Features:
 Free pick-up of car.
 Direct settlement facility at special garages.
 Upto 6-month accident-repair warranty
 Quality spares and materials, guaranteed.
 Claim settlement in 7 days.
 Enhanced protection though 8 unique add on covers.
What does the Auto Secure car insurance cover ?
 Loss or Damage to your Vehicle: Any partial or total loss to your vehicle arising out
of accident or on account of fire and special perils is covered.
 Third Party Legal Liability: Covers Third party property damage (up to 7.5 lacs)
and Third party Bodily injury
 No deduction on count of Salvage value
 Auto Restore Warranty: Tata AIG Auto Secure policyholders can enjoy'Warranty
on Accident Repairs' when a customer opts for the 'Green Channel Settlement
 Enhanced protection though 8 unique add on covers.
Get Added Protection from our unique Add On covers

19
 Depreciation Reimbursement: Full claim without any deduction for depreciation on
the value of parts replaced. The cover is available for vehicles up to 3 years old and
operates for maximum 2 claims during the policy period.
 Daily Allowance: Pays a fixed sum as an allowance towards hiring a transport while
the vehicle is under repair for a valid claim and the repair time is more than 3 days.
The cover will be valid for maximum 10 days and in case of Total Loss / Theft claims,
validity will be up to 15 days.
 Repair of Glass, Fibre, Plastic and Rubber Parts: In case any of the Glass, Fibre,
Plastic and Rubber parts are repaired in case of a claim, the No Claim Bonus is not
impacted and the insured continues to enjoy the same on renewal.
 Key Replacement: Pays the cost to replace vehicle keys if lost or stolen, plus the
cost of locks if the vehicle is broken into.
 Emergency Transport and Hotel Expenses: Pays the cost of overnight stay and
transportation charges for returning to the place of residence or the nearest city of
travel, if the vehicle becomes immobile due to an accident while travelling outside
municipal limits.
 Loss of Personal Belongings: Pays for the loss or damage to personal belongings
inside a vehicle at the time of loss or damage to the vehicle.

3. PERSONAL ACCIDENT COVER<SAFEGUARD PERSONAL ACCIDENT

INSURANCE COVER>

Axis Bank and Bajaj Allianz General Insurance presentsthe 'Safe Guard' personal
Accident Insurance cover. A unique policy that offers insurance coverage at
premiums that are extremely competitive and exclusively meant for Axis Bank
customers.

Safe Guard offers insurance coverage in case of :

 Accidental death,
 Accidental permanent total disability,
 Accidental permanent partial disability,
 Children's education bonus

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4. HOME INSURANCE

A harder, longer and saved penny to give ourself and our loved ones the security of
a home. It’s only understandable that one should want to secure the most important
asset from any possible kind of natural or man-made disaster. Tata AIG realizes the
need and has designed a home insurance product that cater to everyone’s home
insurance needs. After all, homes are not built everyday.

Key Features:
This policy provides coverage to the building structure provided it should not be of
Kutcha construction against the below mentioned perils.
 Fire
 Lightning
 Explosion/Implosion
 Aircraft Damage
 Riot and Strike
 Impact damage by any Rail/Road, vehicle or animal by direct contact (excluding
damage by own vehicle)
 Bursting and/or overflowing of Water Tanks, Apparatus and Pipes
 Missile Testing operations
 Bush Fire
 Flood, Storm, etc.
 Earthquake

5. TRAVEL INSURANCE

It includes 3 policies.they are as follows:

I. Travel guard insurance(overseas travel)
II. Student guard plus
III. Asia guard

TRAVEL GUARD INSURANCE:-

21
 Travel Guard Insurance (for Overseas Travel)
Tata AIG Travel Guard is unique:
 Global Protection policy valid 24 hours a day, 365 days a year
 Flexible - There are three plans available under the Single Trip policies which are
Silver, Gold and Platinum.
 You need no medical certification, whatever your age.
 AIG Assist : Emergency Assistance, Medical Evacuation.

Key Features
 Coverage of Medical Expenses: Travel Guard takes care of your medical
expenses due to accident and sickness while traveling so that you can concentrate
on better things like enjoying the holiday.
 Checked Baggage Loss: Compensation for the loss of checked in baggage
 Baggage delay: Compensation for reasonable expenses incurred for purchase of
emergency personal effects due to delay in arrival of checked in baggage, whilst
overseas.
 Loss of Passport: Compensation for expenses incurred in obtaining a duplicate or
new passport.
 Personal Liability: Compensation for damages to be paid to a third party, resulting
from death, bodily injury or damage to property; caused involuntarily by the insured.
 In-hospital Indemnity: Travel Guard pays a Daily benefit for each day you are an
inpatient in a hospital due to injury or sickness.
 Trip Delay: Reimbursement of additional expenses occurred due to trip delay (only if
the trip has been delayed for more than 12 hours).
 Automatic-extension of the policy: Travel Guard allows you to extend your policy
upto a period of 7 days from the policy expiry date.

STUDENT GUARD PLUS:-

Student Guard Plus (for Students Traveling Overseas)

22
 One must have worked so hard for that opportunity to study abroad. So,one must
need to focus on the mission and not worry about any unexpected hurdles that come
on way, which is why one need student travel insurance. Tata AIG presents Student
Guard Plus, a student insurance policy to help in achieving the dreams. Assistance
is provided in case of health risks, accidents & loss of sponsorship when one travels
abroad and also family emergencies back home.
Tata AIG Student Guard Plus is unique :
Student Guard Plus product is designed keeping in mind the student going abroad to
pursue higher studies as well as the University insurance requirements for such
courses.
 Choose from 3 Plan options – Plan A, Plan B and Ultimate with Accident & Sickness
Reimbursement limits of $50,000, $100,000 and $250,000 respectively.
 Cover includes Study Interruption, Sponsor Protection, Compassionate Visit (2-way)
apart from Accident & Sickness Reimbursement and Personal Accident.
 More comprehensive cover including Maternity Benefits for Pregnancy Termination,
Cover for Mental and Nervous Disorders, Cancer Screening and Mammography.

ASIA GUARD:-

.Holidays are the perfect opportunity to enjoy be with the loved ones. These special
moments of togetherness are meant to be cherished forever.
So whenever one is travelling within Asia with Tata AIG's Asia Travel Guard,
ensurance is provided that every single moment of holiday remains a sweet memory.
Tata AIG Asia Guard is unique:
Asia Guard provides a comprehensive level of protection that can take care of any
and every mishap, right from loss of baggage to critical medical situations
 Personal Accident: 24 hour personal accident cover up to US $15,000.
 Medical Expenses: Reimbursement of medical expenses due to accident and
sickness.
 Emergency Medical Evacuation and Repatriation: one is not covered if any
expenses incurred directly or indirectly in respect of: Traveling against the advice of
the physician; for obtaining treatment; Suicide or attempted suicide; war; terrorism;
illegal acts; dangerous sports etc.

23
ONLINE TRADING PRODUCTS
NSDL is National Securities Depository Limited. It deals with National Stock
Exchange (NSE). CDSL is Central Depository Services Limited. It deals with
Bombay Stock Exchange (BSE). They are electronic depositories to hold all the
securities electronically in de-materialised format.
Axis Bank is a registered member (Depository Participant) of NSDL. In this system,
physical security holdings are converted into electronic (or in other words,
dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant
by the NSDL - India's first depository. You can avail of all the depository-related
services by just opening an account with NSDL through Axis Bank.
Transfer of shares and settlements
Transfer and settlements have never been easy as it is under the depository system.
All that is required is an instruction slip from you. If you are selling securities then it
has to be a delivery instruction slip. If you are purchasing securities it has to be a
receipt instruction slip or one time standing instructions for credit.
Receipt of Corporate Benefits
Even securities entitlements like bonus and rights can be credited to your demat
account electronically. All you have to do is to choose the right option in the share
application form. Cash benefits like dividends and interest will be forwarded to you
directly and not through the depository. MICR code in Bank details in your demat
account would ensure credit of cash corporate action to your respective bank
account.
Dematerialisation of shares
At your request we arrange to convert your physical holdings into electronic form. To
do this you would be require to open a demat account with NSDL through us called
"Beneficiary Owner Account" in the name and style in which the shares are held by
you. After opening demat account, you can lodge the share certificates with us
accompanied by a Dematerialisation Request Form (DRF), separate for each scrip.
You are required to only make sure that NSDL has admitted that scrip for
dematerialisation. You can get this verified at our branches offering demat services.
Rematerilialisation
You have the option to convert your electronic shares back to physical shares.
Pledge-Hypothecation

24
 You can also avail loan against shares by pledging shares in your demat account.
This process is also much faster than in the case of physical shares.
Freezing or Locking of Accounts
You can also keep your accounts frozen or locked for the span of time desired by
you. No debits from your account will be made during this period.
Speed-e facility
With the introduction of settlement on T+2 basis, instruction for delivery of securities
to broker's account is required immediately after sale of securities. Hence time
available for submission of delivery instructions is limited. Axis Bank now permits
submission of delivery instructions in electronic form using Internet based service
called Speed-e. Physical delivery instructions need not be submitted in case you are
submitting the instructions on Speed-e.
Functioning of Speed-e
Speed-e is an Internet based service offered by NSDL through which demat account
holders (including brokers) can submit delivery instructions to us through Speed-e
website http://speed-e.nsdl.com and also view the status of such instruction.
i-Connect Depository Services
You can access your holding and transaction statement of your demat account
through internet services / website.
Tele Depository Services - Dial-Your-Demat
Access your Demat Account(s) through a telephone from any of the access centers.
Just dial the Tele-Depository Services number and get all information about your
account on Voice, Fax or even email. Dial-Your-Dematis available 24 hours a day,
365 days a year. This service offers you a wide range of facilities such as:
 Balance inquiry
 Statement of Demat account by fax or phone or email
 Transaction details by fax or phone or email
 Holding details by fax or phone or email
 Overdue cum Holding details by fax or phone or email
 Rejection details by fax or phone or email
 Change of PIN
Auto E-mailer Services

25
 You can register for auto e-mailer services for getting holding and transaction
statement on the registered mail id at the frequency defined by you i.e. either
daily/weekly/monthly.

AXIS MUTUAL FUNDS

Axis mutual funds were launched in the year 2009 with an accomplished suite of 53
mutual fund schemes. Today, Axis mutual funds are available to customers in over
75 cities and have a customer base of over 7 lac investors.

Axis mutual funds are a professionally managed, pool of savings of a number of

investors who share a common financial aim. This collated money is then invested
into shares, debentures and securities. The income thus earned is shared by
investors in ratio of the number of share units held by them.

TYPES OF AXIS MUTUAL FUNDS

i. MUTUAL FUNDS BASED ON STRUCTURE

1 . Open-ended schemes
An open-ended mutual fund doesn’t have a fixed maturity and doesn’t trade on the
open market and is re-priced each day based on the amount of shares bought or
sold.

2 . Close-ended schemes
A closed ended mutual fund has a fixed maturity and has a locking period for
investor’s money. Sometimes, closed-ended mutual funds provide a repurchase
choice to the investors.

26
ii. BY INVESTMENT OBJECTIVE

This refers to the asset class targeted by the fund.

Equity Schemes: Equity schemes invest their money in shares. This money can be
invested either in high-growth stocks or value stocks. Different kinds of equity
schemes offered by Axis Bank are outlined below.
Equity Diversified: These mutual fund schemes are not particular to any sector or
theme.
Mid Cap: These funds invest in stocks from different sectors. However, they invest
mostly in mid-cap stocks listed with BSE.
ELSS: Equity Linked Security Schemes are open-ended mutual funds with a locking
period of up to 3 years.
Thematic: These mutual funds scheme invest money in various sectors but stick to
a fixed theme like services, exports etc.
Sector Specific: Sector specific mutual funds, as the name suggests, invest their
money in particular sectors like manufacturing, IT etc. However, these mutual funds
have high risk because returns are closely tied to a particular sector’s performance.
Flexicap: These mutual funds scheme invest across market caps. This is a fluid
style of investment.
Debt or Income Schemes: These mutual funds invest majorly in government
securities and corporate bonds. The profit this financial instrument earns is by
trading these securities and through interest on its investments. This is the least risky
of all mutual fund schemes.
Money Market Schemes: Money Market Schemes are mutual funds that invest their
money in short term debt instruments issued by the government and corporates.
Hybrid Schemes: These are funds which invest in a mix of asset classes. There are
two types of Hybrid mutual funds offered by Axis Bank.
Balanced Schemes: As the name suggests, these mutual fund schemes tend to
strike a balance by investing in debt as well as equity. The debt part ensures a
regular interest while equity brings in capital gains.
Monthly Income Plans: This mutual fund scheme is meant for conservative
investors who are not willing to take a major risk in terms of equity investment.

27
 Hence, a large portion of this fund is invested in debt while a very small part goes
into equity.
Why choose Axis Mutual Funds?

TYPES OF RETURN

There are three ways, where the total returns provided by mutual funds can be
enjoyed by investors:
1. Income is earned from dividends on stocks and interest on bonds. A fund pays out
nearly all income it receives over the year to fund owners in the form of a distribution.
2. If the fund sells securities that have increased in price, the fund has a capital gain.
Most funds also pass on these gains to investors in a distribution.
3. If fund holdings increase in price but are not sold by the fund manager, the fund's
shares increase in price. You can then sell your mutual fund shares for a profit.
Funds will also usually give you a choice either to receive a check for distributions or
to reinvest the earnings and get more shares.
SCHEMES OF AXIS MUTUAL FUND
EQUITY FUND

1. AXIS LONG TERM EQUITY FUND

2. AXIS EQUITY FUND
3. AXIS MIDCAP FUND
4. AXIS FOCUSED 25 FUND

AXIS LONG TERM EQUITY FUND

The scheme is ranked 1 in ELSS category by Crisil (for quarter ended Mar 2016).
The fund looks at opportunities across the market cap and the portfolio remains
balanced between its large and mid-cap allocations. The fund is focused on long
term earnings growth prospects and quality as key criteria for stock selection.

FUND STYLE

28
INVESTMENT

Value
STYLE

Blend

Growth

Large Mid Small

MARKET CAP

Key Features
 Open-ended equity linked savings scheme with a 3-year lock-in

 One of the lowest lock-in periods (3 years lock-in) amongst other tax saving
instruments.

 Provides tax benefits of up to Rs. 46,350* under section 80C of the Income Tax Act,
1961.

 Suitable for an investment horizon of at least 3-5 years or more

This Product is suitable for Investors who are seeking:

 capital appreciation over long term.

 investment in a diversified portfolio predominantly consisting of equity and equity

related instruments.

AXIS EQUITY FUND

It is an open ended growth scheme.The scheme is ranked 4 in Diversified Equity
category by Crisil (for quarter ended Mar 2016).

INVESTMENT OBJECTIVE
To achieve long term capital appreciation by investing in a diversified portfolio
predominantly consisting of equity and equity related securities including derivatives.

29
 FUND STYLE
INVESTMENT

Value
STYLE

Blend

Growth

Large Mid Small

MARKET CAP

Key Features
 A diversified equity fund with a large cap bias
 Pure bottom-up stock picking focusing on fundamentals
 Risk management embedded in the investment process
 Suitable for an investment horizon of at least 3-5 years or more.

This Product is suitable for Investors who are seeking

 capital appreciation over long term.
 investment in a diversified portfolio predominantly consisting of equity and equity
related instruments.

AXIS FOCUSED 25 FUND

Investment Objective
To generate long term capital appreciation by investing in a concentrated portfolio of
equity & equity related instruments of up to 25 companies.

FUND STYLE

30
INVESTMENT

Value
STYLE

Blend

Growth

Large Mid Small

MARKET CAP

Key Features
 Diversified equity fund that invests primarily in the Top 200 stocks by market
capitalization

 High conviction investing with a maximum of 25 stocks in the portfolio

 Embedded risk management to manage risks of portfolio concentration

 EasyCall facility available.

This Product is suitable for Investors who are seeking

 capital appreciation over long term.

 investment in a diversified portfolio predominantly consisting of equity and equity

related instruments.

HYBRID FUND
1. AXIS INCOME SAVER
2. AXIS TRIPLE ADVANTAGE FUND

31
 AXIS INCOME SAVER FUND
It is an open ended equity scheme.

INVESTMENT OBJECTIVE
To generate regular income through investments in debt & money market
instruments, along with capital appreciation through limited exposure to equity and
equity related instruments. It also aims to manage risk through active asset
allocation.

FUND STYLE
ASSET CLASS

Equity

Debt
Equity
Arbitrage

Low Medium High

DURATION

Key Features

 A low to medium risk fund suitable for an investment horizon of more than 2 years

 Brings stability to your portfolio by investing primarily in fixed income instruments

 Offers the potential for capital growth through limited exposure to equity instruments

 Embedded risk management to restrict losses in any calendar year

32
  Actively allocates between equity and debt

 Suitable for an investment horizon of 3 years or more

This Product is suitable for Investors who are seeking

 Capital appreciation while generating income over medium to long term.

 Investment in debt and money market instruments as well as equity and equity
related instruments while managing risk through active asset allocation.

AXIS TRIPLE ADVANTAGE FUND

Investment Objective
To generate regular income through investments in debt & money market
instruments, along with capital appreciation through limited exposure to equity and
equity related instruments. It also aims to manage risk through active asset
allocation.

FUND STYLE
ASSET CLASS

Equity

Debt

Gold

Low Mid High

Duration
Key Features
 Provides diversification across three asset classesviz. equity, fixed income and gold
thereby leading to reduction in risk
 Returns potential not compromised even with reduced risk levels
 Returns more stable than pure equity or gold investments over the long term
 One single application is sufficient for investment in three asset classes
 Suitable for an investment horizon of 3 years or more
This Product is Suitable for Investor who are seeking

33
 capital appreciation & generating income over long term
 investment in a diversified portfolio of equity and equity related instruments, fixed
income instruments & gold Exchange Traded Funds

2.4.4 FINANCIAL STATEMENTS ANALYSIS

MEANING
The process of critical evaluation of the financial information contained in the financial
statements in order to understand and make decisions regarding the operations of the
firm is called ‘Financial Statement Analysis’. It is basically a study of relationship among
various financial facts and figures as given in a set of financial statements, and the
interpretation thereof to gain an insight into the profitability and operational efficiency of
the firm to assess its financial health and future prospects. The term ‘financial analysis’
includes both ‘analysis and interpretation’. The term analysis means simplification of
financial data by methodical classification given in the financial statements.
Interpretation means explaining the meaning and significance of the data. These two are
complimentary to each other. Analysis is useless without interpretation, and
interpretation without analysis is difficult or even impossible.

.
TOOLS OF FINANCIAL ANALYSIS The most commonly used techniques of financial
statement analysis are as follows:

1. Comparative Statements: These are the statements showing the profitability

and financial position of a firm for different periods of time in a comparative form
to give an idea about the position of two or more periods. It usually applies to
the two important financial statements, namely, Balance Sheet and Income
Statement prepared in a comparative form. The financial data will be
comparative only when same accounting principles are used in preparing these
statements. If this is not the case, the deviation in the use of accounting

34
 principles should be mentioned as a footnote. Comparative figures indicate the
trend and direction of financial position and operating results. This analysis is
also known as ‘horizontal analysis’.

2. Common Size Statements: These are the statements which indicate the
relationship of different items of a financial statement with some common item by
expressing each item as a percentage of the common item. The percentage thus
calculated can be easily compared with the resultscorresponding percentages of
the previous year or of some other firms, as the numbers are brought to common
base. Such statements also allow an analyst to compare the operating and
financing characteristics of two companies of different sizes in the same industry.
Thus, common-size statements are useful, both, in intra-firm comparisons over
different years and also in making inter-firm comparisons for the same year or for
several years. This analysis is also known as ‘Vertical analysis’

3. Trend Analysis: It is a technique of studying the operational results and

financial position over a series of years. Using the previous years’ data of a
business enterprise, trend analysis can be done to observe the percentage
changes over time in the selected data. The trend percentage is the percentage
relationship, which each item of different years bear to the same item in the base
year. Trend analysis is important because, with its long run view, it may point to
basic changes in the nature of the business. By looking at a trend in a particular
ratio, one may find whether the ratio is falling, rising or remaining relatively
constant. From this observation, a problem is detected or the sign of good
management is found.

4. Ratio Analysis: It describes the significant relationship which exists between

various items of a balance sheet and a profit and loss account of a firm. As a
technique of financial analysis, accounting ratios measure the comparative
significance of the individual items of the income and position statements. It is
possible to assess the profitability, solvency and efficiency of an enterprise
through the technique of ratio analysis.

35
5.Cash Flow Analysis: It refers to the analysis of actual movement of cash into
and out of an organization. The flow of cash into the business is called as cash
inflow or positive cash flow and the flow of cash out of the firm is called as cash
outflow or a negative cash flow. The difference between the inflow and outflow of
cash is the net cash flow. Cash flow statement is prepared to project the manner
in which the cash has been received and has been utilized during an accounting
year as it shows the sources of cash receipts and also the purposes for which
payments are made. Thus, it summarizes the causes for the changes in cash
position of a business enterprise between dates of two balance she

36
37
2.4.5 MAJOR PLAYER IN THE BANKING INDUSTRY

HDFC HISTORY :The Housing Development Finance Corporation Limited (HDFC)

was amongst the first to receive an in principleapproval from the Reserve Bank of
India (RBI) to set up a bank in the private sector, as part of the RBIliberalization of
the Axis Banking Industry in 1994. The bank was incorporated in August 1994 in the
nameof HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank
commenced operations as aScheduled Commercial Bank in January 1995.

BUSINESS SUMMARY:
HDFC Bank Limited offers a range of commercial and transactional banking
services, and treasury products towholesale and retail customers. It operates in
three segments:
Retail Banking,
Wholesale Banking,
Treasury Service.

WHOLE SALE BANKING SERVICES

The Banks target market ranges from large, blue-chip manufacturing companies in
the Axis corporate tosmall & mid-sized corporate and agri-based businesses. For
these customers, the Bank provides a wide range ofcommercial and transactional
banking services, including
Working capital finance,
Trade services,

38
 Transactional services,
Cash management

. RETAIL BANKING SERVICES

The objective of the Retail Bank is to provide its target market customers a full range
of financial products andbanking services, giving the customer a one-stop window for
all his/her banking requirements. The products are backed by world-class service
and delivered to the customers through the growing branch network, as wellas
through alternative delivery channels like
ATMs,
Phone Banking,
Net Banking,
Mobile Banking.

TREASURY
Within this business, the bank has three main product areas –
Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities,
Equities.

39
EQUITY SHARE DATA

AXIS BANK HDFC BANK AXIS BANK/ 5-Yr

Chart

Mar-15 Mar-15 HDFC BANK Click to

enlarge

High Rs 655 1,105 59.3%

Low Rs 282 708 39.9%

Income per share (Unadj.) Rs 150.7 202.1 74.6%

Earnings per share

Rs 31.4 42.6 73.7%
(Unadj.)

Cash flow per share

Rs 78.4 113.2 69.2%
(Unadj.)

Dividends per share

Rs 4.60 8.00 57.5%
(Unadj.)

Avg Dividend yield % 1.0 0.9 111.2%

Book value per share

Rs 189.6 252.0 75.3%
(Unadj.)

Shares outstanding (eoy) m 2,370.52 2,506.50 94.6%

40
Bonus/Rights/Conversions ESOP ESOP -

Avg Price / Income ratio x 3.1 4.5 69.3%

Avg P/E ratio x 14.9 21.3 70.2%

Avg P/CF ratio x 11.4 17.5 64.8%

Avg Price/Bookvalue ratio x 2.5 3.6 68.7%

Dividend payout % 14.6 18.8 78.0%

AvgMkt Cap Rs m 1,110,470 2,271,516 48.9%

No. of employees `000 42.2 76.3 55.4%

Total wages & salary Rs m 36,157 51,627 70.0%

Avg. income/employee RsTh 8,460.2 6,641.6 127.4%

Avg. wages/employee RsTh 856.2 676.8 126.5%

Avg. net profit/employee RsTh 1,763.7 1,401.2 125.9%

INCOME DATA

Interest income Rs m 357,275 506,665 70.5%

41
Other income Rs m 88,381 95,457 92.6%

Interest expense Rs m 213,413 272,885 78.2%

Net interest income Rs m 143,862 233,780 61.5%

Operating expense Rs m 96,099 145,775 65.9%

Gross profit Rs m 47,763 88,005 54.3%

Gross profit margin % 13.4 17.4 77.0%

Provisions/contingencies Rs m 23,212 22,660 102.4%

Profit before tax Rs m 112,945 160,514 70.4%

Extraordinary Inc (Exp) Rs m 0 0 -

Minority Interest Rs m -19 144 -13.5%

Prior Period Items Rs m 0 33 0.0%

Tax Rs m 38,447 53,802 71.5%

Profit after tax Rs m 74,479 106,889 69.7%

Net profit margin % 20.8 21.1 98.8%

42
BALANCE SHEET DATA

Advances Rs m 2,844,487 3,834,080 74.2%

Deposits Rs m 3,222,442 4,502,837 71.6%

Credit/Deposit ratio x 88.3 85.1 103.7%

Yield on advances % 9.2 10.3 89.4%

Cost of deposits % 5.3 5.2 101.7%

Net Interest Margin % 3.2 4.0 79.1%

Net fixed assets Rs m 25,519 32,249 79.1%

Share capital Rs m 4,741 5,013 94.6%

Free reserves Rs m 345,481 490,641 70.4%

Net worth Rs m 449,496 631,541 71.2%

Borrowings Rs m 843,935 594,783 141.9%

Investments Rs m 1,333,192 1,642,726 81.2%

Total assets Rs m 4,672,430 6,070,965 77.0%

43
Debt/equity ratio x 9.0 8.1 112.1%

Return on assets % 1.6 1.8 90.5%

Return on equity % 16.6 16.9 97.9%

Capital adequacy ratio % 15.1 16.8 89.9%

Net NPAs % 0.4 0.3 176.0%

CASH FLOW

From Operations Rs m -151,625 -212,810 71.2%

From Investments Rs m -79,122 -8,108 975.8%

From Financial Activity Rs m 310,448 186,939 166.1%

Net Cashflow
Rs m 79,702 -33,979 -234.6%

Some ratios that are relevant for evaluating banks include

 Credit to deposit ratio
 Capital adequacy ratio
 Non-performing asset ratio
 Provision coverage ratio
 Return on assets ratio

Next Chapter – 3 Deals with Research Methodology

44
 CHAPTER - 3
RESEARCH METHODOLOGY
Research methodology is purely and simply the framework or a plan for study that
guides the collection and analysis of data. Research is the scientific way to solve the
problems and is necessarily used to improve market potential. This involves
exploring the possible methods, one by one, and arriving at the best solution,
considering the resources at the disposal of research.
A Methodology does not set out to provide solutions but offers the theoretical
underpinning for understanding which method, set of methods or so called “best
practices” can be applied to a specific case.
It has been defined also as follows:
"The analysis of the principles of methods, rules, and postulates employed by a
discipline";

"The systematic study of methods that are, can be, or have been applied within a
discipline";

"The study or description of methods".

The type of data used to make this project is primary data and secondary data.
Secondary data is briefly discussed below:

PRIMARY DATA

Primary data are those which are gathered directly through questionnaire and it is
the original source of data collected by the researcher primary data is collected with
the help of structured questionnaire administered to 100 customers at Axis Bank
through convenience sampling.

Data were collected during the period of may 2016 to june 2016. Total of 100
customers of the respected company were approached to respond to the survey.
The survey questionnaire were designed to meet the Investment awareness
regarding Mutual Fund .The questionnaire took 10 mins to complete

45
 SECONDARY DATA

Secondary data, is data collected by someone other than the user. Common sources
of secondary data for social science include censuses, organizational records and
data collected through qualitative methodologies or qualitative research.

RESEARCH INSTRUMENTS

Questionnaire Questionnaire refers to a device for securing answer to a formelly

arrange list of questions by using the terms , which the repondent fill in himself

Questionnaire design : close- ended questions

Stasticals tools

The collected data were classified and tabulated and analysed with some of the
stastical tools listed :

 Financial ratios

 Percentage analysis

 Pie charts were used to expain the questions clearly

Next, chapter-4 talks about the analysis and interpretation

46
 CHAPTER - 4
ANALYSIS AND INTERPRETAION
I) ANALYSIS OF FINANCIAL RATIOS ON COMPARISON WITH
HDFC BANK :

1. CREDIT TO DEPOSIT RATIO:

This ratio indicates how much of the advances lent by banks is done through
deposits. It is the proportion of loan-assets created by banks from the deposits
received. The higher the ratio, the higher the loan-assets created from deposits.
Deposits would be in the form of current and saving account as well as term
deposits. The outcome of this ratio reflects the ability of the bank to make optimal
use of the available.

Credit/Deposit ratio (x) 2011 2012 2013 2014 2015

AXIS BANK 75.3 77.2 78.1 82.8 88.3

HDFC BANK 77.2 80.7 83.5 85.9 85.1

INTERPRETATION: from the above table it can be concluded that the credit to
deposit ratio is fairly stable during the past 5 years.

2. CAPITAL ADEQUACY RATIO:

A banks capital ratio is the ratio of qualifying capital to risk adjusted assets. The RBI
has set the minimum capital adequacy ratio at 9% for all banks. A ratio below the
minimum indicates that the bank is not adequately capitalized to expand its
operations. The ratio ensures that the bank do not expand their business without
having adequate capital .It must be noted that it would be difficult for an investor to
calculate this ratio as banks do not disclose the details required for calculating the

47
 denominator (risk weighted average) of this ratio in detail. As such, banks provide
their CAR from time to time. Considering that the Axis banking sector has been
growing at a strong pace, all the leading banks, both private and public have been
expanding operations at a strong pace. As such, their CAR ratios are well above the
prescribed limit of 9%.

Capital adequacy ratio (%) 2011 2012 2013 2014 2015

AXIS BANK 12.7 13.7 17.0 16.1 15.1

HDFC BANK 16.2 16.5 16.8 16.1 16.8

INTERPRETATION:from the above table it can be concluded that the capital

adequacy ratio have increased for both the private banks during the past 5 years.

3. NON-PERFORMING ASSET RATIO:

The net NPA to loans (advances) ratio is used as a measure ofthe overall quality of
the bank’s loan book. An NPA are those assets for which interest is overdue formore
than 90 days (or 3 months). Net NPAs are calculated by reducing cumulative
balance of provisionsoutstanding at a period end from gross NPAs. Higher ratio
reflects rising bad quality of loans. The NPA ratio is one of the most important ratios
in the banking sector. It helps identify the quality ofassets that a bank possesses.

Net NPAs (%) 2011 2012 2013 2014 2015

AXIS BANK 0.3 0.3 0.4 0.4 0.4

HDFC BANK 0.2 0.2 0.2 0.3 0.3

INTERPRETATION: from the above table, it can be concluded a differentiation

betweenIndia’s largest banks At the same time, the NPA ratio of a relativelymuch
conservative bank such as HDFC Bank would remain low. It is clearly evident from
the above chart and the Axis Bank has done well in the recent past to bring down its
NPA ratio.

48
4. PROVISION COVERAGE RATIO:

The key relationship in analysing asset quality of the bank isbetween the cumulative
provision balances of the bank as on a particular date to gross NPAs. It is ameasure
that indicates the extent to which the bank has provided against the troubled part of its
loanportfolio. A high ratio suggests that additional provisions to be made by the bank
in the coming years would be relatively low.

Gross profit margin (%) 2011 2012 2013 2014 2015

AXIS BANK 11.3 8.8 9.4 12.4 13.4

HDFC BANK 16.5 12.7 12.9 15.6 17.4

INTERPRETATION: from the above table,it can be concluded thatthe HDFC Bank
have been quite conservative when it comes to covering their NPAs. Axis Bank on the
other hand has been extra conservative in the past few years. This explains the
reason for the sharp improvement in the NPA ratio as well.

5. RETURNS ON ASSET (ROA) RATIO

Return on asset ratio is the net income (profits) generated bythe bank on its total
assets (including fixed assets). The higher the proportion of average earnings
assets,the better would be the resulting returns on total assets.

Return on assets (%) 2011 2012 2013 2014 2015

AXIS BANK 1.4 1.5 1.5 1.6 1.6

HDFC BANK 1.4 1.5 1.7 1.7 1.8

INTERPRETATION: from the above table it has been found that the HDFC Bank has
done well to maintain its ROAs over the past 5 year. And the Axis bank has however
done well to improve their return ratio over the past 5 years.

49
II.TO EVALUATE THE AWARENESS LEVEL AMONG INVESTORS ABOUT MUTUAL
FUNDS.

STATEMENT OF THE PROBLEM:

The investors who invest in growth or equity schemes consider it as an alternative to stock
market investing and the investors who invest in debt schemes expect higher returns on
their investments than returns on nationalized banks‟ fixed deposits. The investors expect
higher returns and get dissatisfied when they dont receive the expected returns. The NAV
of the mutual fund scheme gets discounted on debiting the front-ended load of issue
expenses after closure, further discounted on listing and continue to decline on trading due
to poor demand for such units due to the poor sentiments of the investors. Another one
biggest risk of investing in a mutual fund is one of underperformance. When an investor
decides to invest in a particular asset class, he typically expects to get the return that the
benchmark of the asset provides. Mutual funds try to maximise the returns on the funds
invested through them but all of the funds cannot succeed an outperforming each other or
the benchmark.

DATA ANALYSIS AND INTERPRETATION

1. Age group

50
ANALYSIS OF THE ABOVE GRAPH:

The graph shows that most of the people who are aware of the mutual funds are of a age
between 40-60 years as they are the regular visitors and are interested in securing their
investment for their future ones. Above 60 years people do not find mutual funds safe and
secure because of market fluctuations.

2. OCCUPATION

Analysis of the above graph :

The graph shows that the category of people who are self-employed don not find
investment in mutual funds profitable as they are of business category,they find these funds
risky.Therefore,avoid investing in it.hence, there percentage of investment id 35% as when
compared with 65% of salaried customers.

51
3.ANNUAL INCOME

Analysis of the above graph:

The graph shows that the people who have money and finds mutual fund
investment more profitable are investing and securing their money and hence they
are more aware comparively.55% of the sample are aware and investing their money
in the respective fund. They promote safe and secure investment.

52
4.People investing in mutual funds

Analysis of the Graph

From the survey we found out that only 46% of the people are aware of the mutual funds
invest in it. Rest 54% invest in some other investment avenues.

This is mainly because of the risk involved in mutual funds that they do find it suitable for
investing.

5.DURATION FOR INVESTMENT

53
 Analysis of the above graph:
The graph shows that the people are investing their money for more than 36 months
period and when compared with other duration only 5% are investing for 3 months ,15%
are investing in 3-9 months period,20% are in 9-18 months period and lastly 25% are
investing in 18-36 months period. This means that the customers who are aware of the
mutual funds and find it secure in investing in it are in the time period of above 36 months
as they want to get higher returns by locking their money for long period.

6.Investment Pattern

From the above graph, it is clear that 42% opted for an investment in national saving
certificate, 31% for insurance, 7% for shares, 9% for mutual fund, 6% for fixed deposits, 5%
for national pension scheme.

Analysis of the above graph:

The investment pattern of an investor is also very important because this shows the
avenues where the people are really interested. 42% are in national saving certificate as it
is very safe and risk free. Out of the sample of 100,it is observed that those who opted for
an investment in banks in the form of deposits are found to be in the age group of 40 and
above and are in government services.

54
The next preference, as observed in the pie chart for investment pattern is “Insurance”.
People generally opt for life insurance because it promotes a sense of safety & security for
the dependents on the person and even his belongings. So, the next priority is insurance.
7% of the investors went for an investment in shares as it brings quick returns, although
shares are prone to high risks. As shown 9% of the investors opted for an investment in
mutual funds .From this we can infer that the market of mutual fund is picking up slowly.
According to the survey, the people who have invested in the mutual funds belong to high-
income range and they want an exemption from tax and a mere 6% opted for fixed
deposits, and 5% have invested in other investments such as national pension scheme to
make quick returns on their investments.

7 .Factors considered by investors while investing :

Every investor considers several factors while investing in any of the products asit deals
with the most important need of life “money”.

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The above graph shows that 31% people consider safety & security as the mainfactor while
investing, 26% goes for diversification, 17% considered return pattern in the investment,
14% went for inflation protection and 12% showed interest in progressive values..

Analysis of the above graph :

In a developing country like India most of the people fall in the lower middleclass and
middle class sectors. The attitude of the investors is of primary concern. As more and more
options that warrant high returns are available in the market, investor tends to be more
skeptical. So, while investing in any avenue, their first priority is safety and security. Even
the age of the investor plays amajor role in the decision-making. For example, if the
investor is in the age of 50and above, he usually looks for low or no risks while investing.
Therefore, 31%of investors surveyed preferred safety & security.

Besides investors going for Safety & security, there are investors who opt for return on
investments they made. They are mainly in the age group of 23 and 35. Because these
investors are likely to think that, at this age they are mentally more stable and feel that they
can cope with financial risks. Any profits made would further bolster their financial stability.
And so, 17% went with return pattern of their investment. In the same way, 14% of the
investors look for inflation protection, especially those who are already doing business, i.e.
those who are already accustomed to taking risks.Out of the total, 12% of investors
preferred progressive values. The main reason for this could be that, that making the
invested money liquefied as and when required is important, and this is not possible if the
investments are made in any insurance, Bank deposits, etc. Though there are numerous
factors that can be attributed to an investor’s psyche, by large, we can conclude that
maximum number of investors is investing in those sectors where there is safety & security
for their principal.

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8.INVESTMENT IN FINANCIAL INSTRUMENTS

Analysis of the above graph:

The graph shows that 59% of the customers are investing in those financial instruments
which are prone to lower risk and higher return and 11% are investing in lower retuns
instruments.This means the customers want low risk with higher returns.therefore maximu
nos. Are investing from the above specified category they want to promote safe and
secure returns.and hence, more awareness about mutual funds.

9 Awareness towards mutual funds

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In the above pie chart we can see that 61% investors are aware of the mutual fund and
39% are not aware.

Analysis of the graph

This graph shows that although most of the people are aware of the term mutual funds they
still do not prefer to invest in mutual funds. Most of them invest in fixed deposit which they
find to be more secure.

10 Mutual Fund Investments

Analysis of the graph

Equity funds being the majority preference can be reasoned as they want their investments
to be put in various sectors i.e. DIVERSIFIED FUNDS so that they can make profits out of it
easily. Even some went for INDEX FUNDS as the investments are made in Bench Nark
Index Stock like BSE, NSE.

A few investors made investments in liquid funds as they want a Short term investments
where the investor need not wait for much time for the return. These are also called as
Money Markets for short term.

Only a single investor went for debt funds where investments are in various debt products
like Certificate of Deposits (CD’s), Commercial papers and call money as the investor want
a secured investment, which he can avail in Debt Funds.

Next chapter 5 talks about the findings of the study.

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 CHAPTER -5
FINDINGS

 Less no. of customer use mobile banking or net banking.Therefore difficulty in

understanding mutual funds scheme.
 The accounts of the two banks i.e.,Axis bank and hdfc bank don’t have much
difference in terms of features but when it comes to number of branches and ATM’s
HDFC Bank is ahead of the Axis Bank.
 The customers of Axis Bank are satisfied with their savings and salary accounts.
 Safety and Security And Tax exemption are the two factors which investors give
priority while investing.
 Most of the investors prefer to invest in bank deposits and insurance.
 Many of the investors are aware of mutual funds but most of their perception
towards them is not positive.
 Investors are mainly concerned with the risk factors of mutual funds and are not
directing towards them.
 Most of the investors still prefer to invest in fixed deposits despite of having better
investment avenue.
 The investors who have invested in mutual funds mainly go for it because of the
Liquidity matter and Tax exemption.
 Most of the people don’t know the advantages of mutual funds and the various types
of mutual funds.

Next chapter 6 deals with conclusions and recommendations

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 CHAPTER-6
CONCLUSION
The study mainly was on the customer orientation that how they think, what they

want from their banks and how they take decision while investing in the investment

options available at bank..This study finds that however Axis Bank is not the leading

private sector bank but its vast range of products and availability of options make it

one of the better banks in India. The bank should pay more attention on giving

updates and should increase the level of service providing because the competitors

of Axis are better in this area.The bank should try to increase the use of technology

like mobile and net banking among its customers. Looking at the above mentioned

financial ratios, it would be quite easy to differentiate the aggressive banks from the

conservative ones. During good times and bad, banks such as HDFC Bank have

managed to keep things under control. Further, Axis Bank has done well to improve

the asset quality, return ratios over the past 5 years as well. customers find mutual

funds and tax exempted funds more safe and secure and hence,invest in them.and

also insurance sector of Axis bank is at the top priority. There are various insurance

schemes available at Axis bank which the investors Find profitable and secure to

invest. Specialized agents of mutual funds are rarely seen. Financial advisors are not seen

there who can educate the investors. Posters, banners or other promotional activities are rarely

seen in this market. Mutual fund companies do not have aggressive strategies. Insurance

products are and can be the main competitors of mutual funds. Mutual fund investors are

confined to the upper-middle and upper social class in this market. Upper-lower class and lower-

upper class people are still untouched. More than half of the respondents have wrong perception

about the mutual funds. They feel mutual funds are very risky investment alternative Most of the

respondents are satisfied with their current return from their investment. Most of the respondents

neither do nor want to take risk in investing their money in mutual funds.

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 RECOMMENDATIONS

The recommendation part of this research work has three parts. They are as follows :–
1. Market Development
2. Marketing techniques
3. Marketing plans
Market development: The consumer survey has revealed the fact that the market for mutual
fund is still in its expansion stage. Hence the companies have to do a lot of things and activities
to develop the market for mutual fund in this capital city. Because the market development is as
important as STP of any marketing plan. Market development means doing anything and
everything for the growth of the mutual fund industry. Hence in the following ways the market of
mutual fund in Meerut can be developed more significantly:

Marketing techniques: While the Mutual in India has seen dramatic improvements in quantity as
well as quality of product and service offerings over the past decade. One of the primary reasons
for this slow growth is the fact that mutual funds are a new concept in India, which needs to be
still understood by large sections of Axis investors. In this scenario, the mutual fund companies
have the onerous responsibility of not just selling mutual fund products, but ‗marketing‘ them
correctly.

Marketing plans: Booklets on mutual funds can be distributed at free of cost to the common
people with the newspapers, magazines, journals. This will help in attitude formation of the
investors. Companies must focus on tailored made mutual fund schemes rather than on the
traditional products/ schemes. Unlike the case of insurance where there is a restriction on certain
age of the investors to invest on insurance, there is no such restriction on investing in mutual
fund. An investor of any age bracket can invest in mutual fund. Hence the strong and efficient
CRM can prove to be very fruitful.

Next chapter 7 deals with managerial implication and future agenda of the study.

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 CHAPTER-7
EPILOGUE
 MANAGERIAL IMPLICATIONS

This project can be useful in many ways:

1.
 AGENDA FOR FUTURE RESEARCH

The future research can be based on primary research on:

1.Investments Products and Financial Ratios and the targeted customers .

2.Further analysis from the customers about the investment options available

according to the various levels of needs.

 LIMITATIONS

1. The study and the analysis are limited to the information available on the
internet, as well as,various survey reports and journals.
2. An in depth coverage of the topic was not possible as it is very vast and
requires expert knowledge. This study is just an overview of such sort of
investment options and their effect on our country.
3. It was very difficult to convince the customers to fill in the personal details of
the questionnaire where they have to mention the monthly income, occupation
etc.
5. Compilation of data on competitor analysis was difficult due to non-availability
of correct information.
6. Only 1 bank was taken into account for comparison.

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 BIBLIOGRAPHY

o http://www.timesofindia.com. Accessed on

o http://www.businesstoday.com

o http://Axisbank.com

o http://hdfcbank.com

o http://www.google.com

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 APPENDIX
 QUESTIONNAIRE

Respected Ma’am/Sir,
Presently I am doing a research on “Investment Opportunities at AXIS Bank”. I will
be more obliged if you could respond to the below mentioned questionnaire. Your
response can put more light on my research work and I can come out with realistic
findings.

NAME : ……………………………....

1. You belong to which age group?

20-40years
40-60 years
Above 60 years

2. Your occupation :

Salaried
Self employed

3. Your annual income is in the range of:

Below Rs. 500000

Rs 500000-Rs 1500000
Above Rs1500000

4. How much percentage you save from your annual income?

10%
10-25%
Above 25%

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5. What is the duration for which the investment is bought?

3 months
3-9 months
9-18 months
18-36 months
Above 36 months

6. Where do you majorly invest your savings?

Equity and Commodities

Mutual Funds
Fixed Deposits
National Pension scheme
Insurance
National Saving Certificate

7. What are the important factors guiding your investment decisions?

Safety of principal
Return
Diversification
Progressive Values
Inflation Protection

8. You invest in financial instruments which give:

High risk/high return

Low risk/low return
Low risk/high return

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9. Do you research before investing in some products?

Yes
No

10. According to you which one do you rate as the best investment instrument? Rank in
order of preference.

Equity funds
Debt Funds
Liquid funds

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