University Of Mumbai

B.Com. (Accounting and Finance)

Programme
Guidelines for Project Work
at
Third Year
Semester VI
Under choice Based Credit, Grading and
Semester System

(To be implemented from Academic year 2019-2020)

Board of Studies-in-Accountancy

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ROLE OF INSURANCE ADVISOR IN AXIS BANK

A Project Submitted To

University of Mumbai for partial completion of the Degree of

Bachelor in Commerce (Accounting & Finance)

Under the faculty of commerce

Semester VI

By

Miss Ruchika Pramod Ghone

Roll no-98

Under The Guidance Of

Prof. Uttam Kattarmal

Studying At

Ismail Yusuf College

Academic Year
2019-2020

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 Declaration

I the undersigned Miss. Ruchika Pramod Ghone here by, declare that the work embodied in
this project work titled “Role Of Insurance Advisor In Axis Bank” forms my own
contribution to research work carried out under guidance of Prof Uttam Kattarmal is a result
of my own research work and has not been previously submitted to any other University for
any other Degree / Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in bibliography.

I, here by further declare that all information of this document has been obtained and present
in accordance with academic rules and ethical conduct.

____________________
(Ruchika Pramod Ghone)

_______________
(Uttam Kattarmal)

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 Certificate

This is to certify that Miss. Ruchika Pramod Ghone has worked and duly completed her project work for the
degree of bachelor’s in commerce (Accounting & Finance) under the Faculty of Commerce and her project
is entitled “Role of Insurance Advisor In Axis Bank” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that no part of its
has been submitted previously for any Degree or Diploma of any University.

It is her own work and facts reported by her personal finding and investigation.

_______________
(Uttam Kattarmal)

Date: _____________

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 Acknowledgement

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal Dr. (Mrs.) Swati Wavhal for providing the necessary
facilities required for completion of this project.

I take this opportunity to thank our coordinator Mrs. Rajashree Vyas, for moral support and
guidance.

I would also like to express my sincere gratitude towards my project guide.

Uttam Kattarmal whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my parents and peers who supported me throughout
my project.

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 CHAPTER NO – 1

INTRODUCTION

1.1 INTRODUCTION OF THE COMPANY

The project deals with the in-depth study of “ROLL IN AXIS Bank”. Bank plays a very
important role in the economic life of the nation. The health of the economy is closely related
to the soundness of its banking system. Although banks create no new wealth but their
borrowing, lending and related activities facilitate the process of product, distribution,
exchange and consumption of wealth. In this way they become very effective partners in the
process of economic development. Indian entrepreneurs and visionaries in the pre-
independence era to provide financial assistance to traders, agriculturists and budding Indian
industrialists.

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. I did my summer
internship from Axis Bank, Karnal Branch. My objective behind this project is to know the
recruitment process of Axis bank.

Though my project I got to know that how recruitment is done in Axis Bank. In my
report I have used Exploratory study to know the recruitment process of Axis Bank. For the
study I have used primary method of data collection an attempt has been made to present the
data in pie charts.

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 1.2 INDUSTRY PROFILE

BANKING INSUTRY AT GLANCE

Bank plays a very important role in the economic life of the nation. The health of the
economy is closely related to the soundness of its banking system. Although banks create no
new wealth but their borrowing, lending and related activities facilitate the process of
production, distribution, exchange and consumption of wealth. In this way they become very
effective partners in the process of economic development. Today modern banks are very
useful for the utilization of the resources of the country. The banks are mobilizing the savings
of the people for the investment purpose. If there would be no banks then a great portion of a
capital of the country would remain idle.

Modern banks are playing lots of new roles and making life of common consumer as
well as businessmen easy. As loan facility provided by banks work as an incentive to the
producer to increase the production, if the finance is not provided to Agricultural sector or
industrial sector, it will be destroyed. Many difficulties in the international payments have
been overcome and volume of transactions has been increased. Cheques, drafts, bills of
exchange and letters of credit are very important instruments of the banks. The banks collect
these instruments drawn on banks in other cities or countries and proceeds according to the
account of the customer’s concerns.

Be it developed economies or underdeveloped, banks play vital role, In India, the

definition of the business of banking has been given in the Banking Regulation Act, (BR Act),
1949. According to section 5(c) of the BR Act, ‘a banking company which transacts the
business of the banking in India. ‘Further, section 5(b) of the BR Act defines banking as,
‘accepting, for the purpose of lending or investments, of deposits of money from the public,
repayable on demand or otherwise, and withdraw able by cheque, draft, order or otherwise.
‘This definition points to the three primary activities of a commercial banks which distinguish
it from the order financial institutions. These are: (i) maintaining deposit accounts including
current accounts, P(ii) issue and pay cheques and (iii) collect cheques for the bank’s
customers.

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 1.3 History of banking in India

The first bank in India, through conservative was established in 1786. The journey of
Indian banking system can be segregated into three different phases.

Phases 1 (1786 to1969)

 1786: The General bank of India.

 Next come bank of Hindustan bank 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 was amalgamated in 1920 and Imperial bank of India was
established which started as private shareholders bank.
 In 1863 Allahabad Bank was established and first time exclusively by Indians, Punjab
national Bank was set up in 1894 with headquarters at Lahore.
 Between 1906 to 1913, Bank of India, Bank of Baroda, Central Bank of India, Canara
Bank, Indian bank and Bank of Mysore were set up.
 Reserve Bank of India came into existence in 1935.

During the phase 1 growth rate was very slow

 Bank also experienced periodic failures between 1913 and 1948.

 There were approximately 1100 banks, mostly small.
 The government of India came into banking companies act, 1949 which was later
changed into banking Regulation act 1949 as per the amended act 1965 (Act no.23 of
1965)
 Reserve bank of India was vested with extensive powers for the supervision banking in
India as the Central Banking Authority.

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Phase 2

 In 1955, the Imperial of India with extensive banking facilities on a large scale
specially in rural and semi areas.
 It formed state bank of India to act as the principal agent of RBI.
 7 Banks formed subsidiary of state bank of India were nationalized.
 It was the efforts of the then Prime Minister of India, Mrs. Indra Gandhi.
 14 major commercial banks in the country were nationalized.
 The branch of the public sector bank India rose to approximately 800% in deposits and
advances took a huge jump by 11000%.

Phase 3

 This phase introduced many more new product and facilities in the banking sector in
its reform measure.
 In 1991 under the chairman of M. Narashima, a committee was set up by his name
which works for the liberalization of banking practices.
 The country is flooded with the foreign bank and their ATM stations.
 Efforts were being put to give a satisfactory service to customers.
 Phone banking and net banking were introduced.
 The entire system became more convenient and swifter.

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 1.4 CHALLENGES IN THE BANKING INDUSTRY

Change is the only constant feature in this dynamic world and banking is not an exception.
The changes starting in the face of bankers relates to the fundamental way of banking-which
is going through rapid transformation in the world of today. Adjust, adapt and change should
be the key mantra. The major challenge faced by banks today is the ever-rising customer
expectation as well as risk management and maintaining growth rate. Following are the
results of the biggest challenge faced by the banking industry as declared by our respondents
(on a mode scale of 1 to 7 with 1 being the biggest challenge):

The also asked their respondent to rate India on certain banking parameters
(Regulatory System, Risk Assessment System, Technological System and Credit Quality) in

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comparison with other countries i.e. China, Japan, Brazil, Russia, Hong Kong, Singapore, UK
and USA.

The recent financial crisis has drawn attention to under-regulation of banks (mainly
investment banks) in the US. Though, the Indian story is quite different, Regulatory systems
of Indian banks were rated better than China, Brazil, Russia, and UK; at par with Japan,
Singapore and Hong Kong where as all our respondents feel that we are above par or at par
with USA. On comparing the results with their previous survey where the respondents had
rated Indian Regulatory system below par the US and UK system, they see that post the
financial crisis Indian Banks are more confident on the Indian Regulatory Framework.

REGULATORY SYSTEM
100%

90% 22.22
33.33
80% 37.5 40
50
70%
66.67
60%
88.89 87.5
50% 55.56
44.44 30
40%

30% 62.5
50
22.22
20%
30
10% 22.22 22.22
11.11 11.11 12.5
0%
China Japan Brazil Russia Hong Kong Singapore UK USA

Below Par At Par Above Par

The global meltdown started as a banking crisis triggered by the credit quality. Indian
banks seem to have paced up in terms of Credit Quality. Credit quality of bank has been rated

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above par than China, Russia, UK and USA but at par with Hong Kong and Singapore and
85.72% of the respondent feel that we are at least at par with Japan. Thus, they see that the
resilience the Indian Banks showed at the time of financial crisis has led to an attitudinal shift
of our respondent with the past survey indicating Credit quality of Indian banks being below
par than that of US and UK.

CREDIT QUALITY
120

100
12.5

80 37.5
42.86
55.56
62.5
75
60
87.5 62.5

40 11.11
42.86 50

25
20 12.5
33.33
25
14.28 12.5 12.5 12.5 12.5
0
China Japan Brazil Russia Hong Kong Singapore UK USA

Below Par At Par Above Par

As technology ingrains itself in all aspects of a bank’s functioning, the challenge lies in
exploiting the potential for profiting from investments made in technology. A lot needs to be
done on the technological front to keep in pace with the global economies, as is evident from
the survey results. Technology systems of Indian banks have been rate more advanced than
Brazil and Russia but below par with China, Japan, Hong Kong, Singapore, UK and USA.

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They find no change on introspection of their past survey which also highlighted the need for
Indian banks to pace up in adoption of advanced technology.

SCOPE FOR NEW ENTRANTS

81.25% also felt that there was further scope for new entrants in the market, in spite of capital
management and human resource constraints, as there continue to remain opportunities in
unbanked areas. With only 30-35% of the population financially included, and the Indian
banking industry unsaturated with CAGR of well above 20%, participants in their survey felt
that the market definitely has scope to accommodate new players.

While there has been prior debate, they questioned banks on NBFCs and Industrial
houses being established as banking institutions and find opinion to be marginally against the
notion, with 35.71% in favor while 42.86% were against them being established as banks.

However, on further questioning, 57.14% of respondents feel that the above may be
allowed but only if it along with specific regulatory limitations. Banks felt that limitations
regarding track record, ensuring adequate capitalization levels, a tiered license that enables
new entrants to enter into specific areas of the business only after satisfactorily achieving set
milestones for the prior stages, cap on promoter’s holdings and wider public holding in
addition to a common banking regulator on a level playing field are essential before they may
set themselves up as bank.

Evolution of Commercial Banks in India

Indian has a well-developed banking system. Most of the banks in India were founded
by Indian entrepreneurs and visionaries in the pre-independence era to provide financial
assistance to traders, agriculturists and budding Indian industrialists. The origin of banking in
India can be traced back to the last decades of the 18 th century. The General Bank of India and
the Bank of Hindustan, which started in 1786 were the first banks in India. Both the banks are
now defunct. The oldest bank in existence in India at the moments is the State Bank of India.
The State Bank of India came into existence in 1806. At that time, it was known as the Bank
of Calcutta. SBI is presently the largest commercial bank in the country.
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 The role of central banking in India is looked by the Reserve Bank of India, which in
1935 formally took over these responsibilities from the then Imperial Bank of India. Reserve
Bank was nationalized in 1947 and was given broader powers. In 1969, 14 largest commercial
banks were nationalized. This was an important milestone in the history of Indian banking.
This was followed by the nationalization of another six private banks in 1980. With the
nationalized

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of these banks, the major segment of the baking sector came under the control of the
Government. The

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