COMMERCIAL BANKING SYSTEM

“AN ORGANISATIONAL STUDY ON AXIS BANK

BANK”
PROJECT REPORT

SUBMITTED BY:
VISHNU M V
T4 MBA
ROLL. NO: 58
SUBMITTED TO:
DR. V.A SONNY
MBA DEPARTMENT
MES COLLEGE OF ENGINEERING

KUTTIPPURAM

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CONTENT
CONTENT PAGE NO

INTRODUCTION 3

COMPANY PROFILE 5

RESEARCH METHODOLOGY 7

DATA ANALYSIS 8

CONCLUSION 12

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 CHAPTER 1
INTRODUCTION

A bank is a financial institution and a financial intermediary that accepts deposits and channels
those deposits into lending activities, either directly by loaning or indirectly through capital
markets.

A bank may be defined as an institution that accepts deposits, makes loans, pays checks, and
provides financial services. A bank is a financial intermediary for the safeguarding, transferring,
exchanging, or lending of money. A primary role of banks is connecting those with funds, such
as investors and depositors, to those seeking funds, such as individuals or businesses needing
loans. A bank is the connection between customers that have capital deficits and customers with
capital surpluses.

Banks distribute the medium of exchange. Banking is a business. Banks sell their services to earn
money, and they must market and manage those services in a competitive field. Banks are
financial intermediaries that safeguard, transfer, exchange, and lend money and like other
businesses that must earn a profit to survive. Understanding this fundamental idea helps you to
understand how banking systems work, and helps you understand many modern trends in
banking and finance.

BANKING IS A UNIQUE BUSINESS

The services banks offer to customers have to do almost entirely with handling money or
finances for other people. Banks are critical to our economy. The primary function of banks is to
put their account holders' money to use by lending it out to others who are in need of the same.

Money is a medium of exchange, an agreed-upon system for measuring the value of goods and
services. Once, and still in some places today, precious stones, animal products, or other goods
of value might be used as a medium of exchange. This system was used for centuries, before the

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invention of money. People used to exchange the goods or services for other goods or services in
return. This system is also known as “Barter System” and an age-old method that was adopted by
people to exchange their services and goods. Roman soldiers were sometimes paid in salt,
because it was critical to life and was a scarce commodity at those times.

HOW BANKS ARE CREATED?

Banks and money are essential to maintaining economies and they impact the entire societies and
nations. Hence they are closely regulated and strict procedures and principles are advised to be
followed by the banks by various authorities and governments. In the United States, banks may
be chartered by AXIS BANK or state governments and in India government decides the rules for
opening any banks or its branches.

From a business structure perspective, most of the Banks are corporations or cooperative
societies and may be owned by groups of individuals, corporations, or some combination of the
two. Around the world banks are supervised by governments to guarantee the safety and stability
of the money supply and of the country.

BENEFITS OF BANKING:

Safety:​ It’s risky to keep your money in cash as it could be lost, stolen, or destroyed. Financial
institutions keep your funds safe.

Convenience:​ With banks, there's no need to carry cash. If you need cash, you can easily access
your funds virtually anywhere.

Security:​ Banks follow stringent laws and regulations and at most banks, funds are insured.

Financial Future: ​As individual you'll have access to financial professionals to help you.
Knowledgeable advice of bankers is a valuable resource to help you build a better financial
future.

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 CHAPTER 2
COMPANY PROFILE

AXIS BANK BANK

Axis Bank is the third largest private sector bank in India. The Bank offers the
entire spectrum of financial services to customer segments covering Large and
Mid-Corporates, MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 4,050 domestic branches (including extension
counters) with 11,801 ATMs & 4,917 cash recyclers spread across the country as
on 31st March, 2019. The overseas operations of the Bank are spread over nine
international offices with branches at Singapore, Hong Kong, Dubai (at the DIFC),
Colombo and Shanghai; representative offices at Dhaka, Dubai, Abu Dhabi and an
overseas subsidiary at London, UK. The international offices focus on corporate
lending, trade finance, syndication, investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun
operations in 1994. The Bank was promoted in 1993, jointly by Specified
Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India),
Life Insurance Corporation of India (LIC), General Insurance Corporation of India
(GIC), National Insurance Company Ltd., The New India Assurance Company
Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company

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Ltd. The share holding of Unit Trust of India was subsequently transferred to
SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 8,00,997 crores as on 31st March 2019, Axis Bank
has achieved consistent growth and with a 5 year CAGR (2013-14 to 2018-19) of
16% in Total Assets, 14% in Total Deposits, 17% in Total Advances

Committee of Directors

Name of Members

Shri S. Vishvanathan

Shri Amitabh Chaudhry

Smt. Ketaki Bhagwati

Shri B. Baburao

Shri Rajiv Anand

Audit Committee of the Board

Name of Members

Shri Girish Paranjpe

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Shri S. Vishvanathan

Shri Rakesh Makhija

CHAPTER 3

RESEARCH METHODOLOGY

Methodology is a plan of action for a research report to explain in details how data is collected,
analysis and presented so that they will provide meaning full information.

OBJECTIVES OF THE STUDY

To study about the organizational structure of AXIS BANK bank.

SOURCE OF DATA COLLECTION

SECONDARY DATA
It is the data which is already collected by someone else. Researcher has to analyze the data and
interprets the results. It has always been important for the completion of any report. It
provides reliable, suitable, adequate and specific knowledge.

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 CHAPTER 4

DATA ANALYSIS
DATA ANALYSIS

Income Statement of AXIS BANK Bank for the year ended 31​st​ March, 2014:

Source: AXIS BANK Bank: Audited Financial Results for the Quarter and Year ended
31st March 2014

SI. Particulars 31​st​ March 2014 31​st​ March 2013

No
(Rs. in Lakhs) (Rs. in Lakhs)

1. Interest Earned 1070655 905188

2. Other Income 70987 60700

3. Total Income (1+2) 1141642 965888

4. Interest Expended 862314 717388

5. Operating Expenses 168955 136297

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6. Total Expenditure (4+5) [Excluding 1031269 853685
provisions and contingencies]

7. Operating Profit (3-6) [Profit before 110373 112203

Provisions and Contingency]

8. Provisions (other than tax) and 65578 54548

Contingencies

9. Exceptional Items 0 0

10. Profit from ordinary activities 44795 57655

before tax (7-8-9)

11. Tax Expenses 3204 (906)

12. Net Profit from ordinary activities 41591 58561

after tax (10-11)

13. Extraordinary Items (Net of Tax 0 0

Expenses)

14. Net Profit or Loss for the Period 41591 58561

(12-13)

Interpretation: ​The net profit of the Bank has reduced by Rs. 16970,00,000 in the financial year
2013-14 when compared to the previous year. However, it should be noted that total income has
increase over the year and total expenses has also increases considerably, reducing the operating
profits for the year.

Summarized Balance Sheet as on 31​st​ March 2014:

Source: AXIS BANK Bank: Audited Financial Results for the Quarter and Year ended 31st
March 2014

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Particulars 31​st​ March 2014 31​st​ March 2013

(Rs. in Lakhs) (Rs. in Lakhs)

Capital and Liabilities

Capital 85912 169554

Reserves and Surplus 502880 386311

Deposits 12429616 9701724

Borrowings 474480 639182

Other Liabilities and 221784 201404

Provisions

Total 13714672 11098175

Assets

Cash and Balances with 554020 391770

Reserve Bank of India

Balances with Banks and 391745 272705

Money at Call & Short
Notice

Investments 4258538 3128496

Advances 8150403 6976576

Fixed Assets 52895 47674

Other Assets 307071 280954

Total 13714672 11098175

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Interpretation: The overall position of AXIS BANK Bank has improved over the year. There is
an increase in both the total assets as well as the liabilities of the Bank. The total Deposits have
increased by Rs. 272789200,000 over the year. Also, the advances made are also increased, thus
showing a positive increase in the business operations.

Performance Appraisal System:

AXIS BANK Bank has its own system of performance appraisal mechanism in place. The Bank
has a personnel database called as the HLMS database. This database contains the data of each
and every employee of the bank.

The employees of the Bank enter in details about their each and every activity into the database.
At the end of the year each of them appraise their own performance during the period. They
mention all the work performed by them.

This information entered into the HLMS by the employee is examined by the immediate
reporting authority of the employee. The reporting authority then awards marks to the
employee’s performance.

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 CHAPTER 5

CONCLUSION
Banking systems have been with us for as long as people have been using money. ... To make
money, banks use deposits and whole sale deposits, share equity and fees and interest from debt,
loans and consumer lending, such as credit cards and bank fees.

Banking will help all of us to achieve more. It gives opportunities for some to invest and some to
borrow to make better future for others. In the end we all benefitted by it. Banking is build on
trust, so that brings responsibility along with joy of doing good.

A bank account is not only about saving money, it's also about managing money. Opening an
account is a smart move - it means that you can access a service that helps you control your

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money, and which may help you borrow at some time in the future, if you need to do so.

But do remember that you are the customer - that means you have rights and if you're not happy,
you can complain, and you can move your account somewhere else.

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