MINOR PROJECT REPORT

COMPARATIVE ANALYSIS OF AXIS BANK

LIMITED WITH OTHER BANKS

AXIS BANK

SUBMI ITED BY:

LA fREN LAKPAM M A NG A L S ING H

0281490 I gT 0
BBA (BMI) (M) 3“ SEMESTER

UNDER THE GU I DENCE OF:

Dr. MONIKA BOHR A
ASSISTANT PROFESSOR
DEPT. OF BUSINESS ADMtN!STRATJON

MAHARAJA SURAT MA L INSTITUTE

(Recognized by UGC UfS2 (F))

C•4 JANA K PURf, i•f EW DE Off 1-

58

CERTIFICATE
This is to certify that LA£RENLAKPAhf htANGAL SINGI4 of BBA (B&!) (M) 3nd
SEMESTER has accomplisl›c4 the project report title ‘AXIS BANK’ \u›der my
guid8ncc 8nd provision.

He hns submitted this project in the partial fulfillment of requirement as per the
GURU GOBIND SINGfi INDTRAPRASTHA tJNIVMRSITV

1 further certify that this is an original work. All sources of information and help have
bean duly mentioned end acknowledged.

A.MONKABOHV
A8StSTANT PROFESSOR
DEPT. OF BUSINESS ADMINISTRATION
MAHARAJA SURAJMAL INSTITUTE

ACKNOWLEDGEMENT

2
This pmject has been possible through the direct and indirect of vorious
people who bear the imprints of their efforts for my work. I take this opportunity to

acknowledge the invaluable assistance of the people who helped mc in the complelion of
this project repos.

J humb1y convey my sincgrest gratitude to my internal guide Dr. ñ'fooika Bohre

for her guidance, suggestions and unintended support, without which tftc project
would not have bocn possiblc. f woul4 also like to tftonk the Faculty mcmbcr« u/ho
pr0vidc4 mc all tic necessary information in fhc oomplction of the project report.

Last but not the lesst; I would like to place a word of thanks for all those who directly or
indirectly helped mc in the succcssful completion of lht projcn

LAIRENLAXPAM 3fANCAL SFNCX

028ld90l8l0

BBA {B&I) {I\I) 3^ Semester

TABLE OF CONTENTS
Chapter 1: Introduction

• Objectives of the study 6

• Limit0tinns oFtl c $Tudy 8

Cbapter 2: Profile of the organization

16
• 7 Ps oflhc Bend 24
• Achievements 3S

Chapter 3: Analysis and Interpretation

50
» 5.W.O.T Analysis

Cbapter4: Conclusion

Annexure: Bibliogntyhy 62
 CHAPTER I

INTRODUCTION
The Orst bank In indla, thovgh conservative, was established in 1786. Frem 1786 till
relay, the Jo vrney of Inilian 6a nil ng System can be › eresated I nte three dI
stiff 0t phases. They are as n›erdoned beIo\v:

• PHA58 \ - BsrfF pbssc fiom l786te 1969 of Radish Banl‹s

PHASE I
Th e Gane cal ea n k of India res set up I n the year 17g6. best came Bank of
Hindustan e nd Benee I aen#. The East TndTe Company esta6lishe6 canM of een8al
(a8os|, Bank of Bombay {1840) and Bank of Madras l1843) as Independent vnTrs and called
It Presidency Banks. These three banks were a‹nefgantted In 1gZ0 and Weal Bnnk of Tndla
W esta6lkked wheh started as prbate shareholders b•d'•, mostly Euroyeaiu shareholders. ourtn8 die Ilia

phase

tha fy net Tom ng and actIy\tTag of commercial banMa. tha Government oF India cema op

amendlnyAct ef 3965 lAct ‹x 3 of 1965).

Reserve Bank of Indta was vested with extensive powers for rhe supervision
of Ma nhl ng In I ndla as rhe Centr al eenklng Autherlty. 0urIn8 tGose Bay’s publtt ha
s lesser cenRdence In the bar+s is an aBemuth depodt moS1IbatIon stew. of R @B
sav!

6
 0o ernment t<oz maior steer in this Indian Banking Sector Reform afier indwandence, In 19•iS,* nationalitea
Trnper|al 6ank g£ |ndia Cth ext4ñ5IW banéng fa¥ilTtf9$ OO ¥ hygh T8I8 espe•zIaITy Ir+ MraI and semi-Urb'an 6Ng¥.

$euond phase of nattonalitation Indlan Ban£lng Sector sefor n was carried out \n y98g +ith seven r«ore
banks. U's step brought gW of tkie banking segnten¥ Tn India un‹hr Government o•/nershie. th'e IoITo
ing are the step› taI«en by to oo•ernment of India to Reevbte BznXing institutions In M
country:

1g 9: Enactment of Banking ReguTatén act.

1955: Natlonal\ratlon of Stace Bank of Indla.

3B61: Inwrance cover erter -ted to deposes.

i969. Na onaliWGon Qf3• mm;of bank.

1972. Creatlon of credlt guarantee corporation.

197S: Creatlon of sonal rural banks.

1980- Natlonallration of seven banks Mth deposlts over W crore. After the nationalizazla of banks,
tke branches of che public sector bank India rose to approximately 8 0 in depasits and advances took
a huge
jump by 11. . Banking In the sunshlne of Government ownership gave the public ImpIicIt fall
and Immense confidence about the susMlnablliy of these InstRuflons.
This phase has introduced many more products and facilities in the banking sector in its reforms
measu+e. In 1991, under the chaimansfiip of M Narasimham, a committee was set up by his name
which worfied for the Ilberalization of banking practices. The country is hooded with foreign banks an0
their ATM sTatisns. Efforts are being put to give a satisfactory service to customers. Fhone banking and
net banking is introdwed. The entire system became moie ronvenlent and swift. The financial system ofl
Tndla has shown a great deal of resilienre. Tt is shelters-d from any cnsis triggered by any external
mazwconomics shock as other East Arlan Countries sufiered. Thls is all due to a flexible exchange rate
regime, tfie forelgn reserves are hlgh, the rapitaT account Is not yet Fully convertible, and banks and
their cusornen fiave limhed Foregn exchange exposure.
 BANKING STRUCTURE IN INDIA

Scheduled banks

Co-operatives bank
Commercial 8anks

Public sector
 OBJECTIVE OF THE PROJECT

• To gain the knowledge of products nnd services of' Axis Bank Ltd. arid to compare
it cis-vis other banLs.
• To identify tic perception of coneumcr about their banks with comparison to ofhcr
benks.
• Recommendations to increase customer satisfaction level.

Because of the following reasons, I prefer this project work to get the
knowledge of the banIdr›gsystem.

e Banking is an essential industry.

• ft is where we often wind up when we arc seek ing a problem in financial crisis
and money l•olaIed query.

• Bank ing is one of the most regulated businesses in the world.

• Banks remain important source for career oygnrtunificl for j›cnylc.

e It is vital syslcm for developing economy for the nation.

• Banks can play a dynamic role in delivery and purchase of consumer durab1es

10
 RESEARCH METHODOLOGY

f. Descriptive Research
2. Follow Quescfonnalre metbod
3. Primacy Data• in some cases the researchers may realize the need fbr collecting the
firsf hand information. As in the case of everyday like if we wanl fo havc first
Stand information on any happcni‹tg or event. we either aak 8omeone who
kno»rs aboul it or we observe il ourselves, we do the both. Thus, lhe two methods
by which dB\a can be is observation and communication. Those
data collected first hand, either by the researcher or by someone else, especially
for ‹hc yur[›osc of‹hc study is known as primary da‹s.
4. Data: Any day which have been gathered earlier for some other
purpose, in secondary data ifl ihc bands of rcseao;âct.

5. Information w8s collected through both primary and secondary sourccs.

the data collected for this project kas been taLen mostly from the
secondary source.

11
 LIMITATIONS

Some of the limitations o£the project are listed as below:

1. Due to the financial and time constraints a cluster analysis of the population
so as to get better results was not feasible.

2. It was difficult to break the ice with the common people initially. It was a
daunting task to convince them to fiil in the personal details of the
questionnaire where they have to mention the monthly income,
occupation etc.

3. To convince the people For a proper interviewing process is also difficult.

4 Figures keep on changing from time to time.

5. Data may be outdated.

6. Compilation oi data on competitor analysis was difficult due to non-availability

of correct information.

7. The figures have been taken as approximations.

 CHAPTER II

PROFILE OF THE BANK

 AXIS BAFJK

Traded BS£:S3J2l$
aa

Ban ring, F man r ial serv

cc s 1994

Headquartem M umba i, Indin

Xey people Adarsfi Kishore, C hairma£

Shikha Sharma MO & CDO

Credit ‹ards, LODS uMflf US nking, corpO f0 th ba \king, fi•\ance and

insurance. invest \\ c‹\t bank ing, mortgage loans. private banking. private
nquicy. weaft h managn ment

RWenue Z zs8.26 uill on |U5$4.D2 b iII•on) I2oT yI ’'*

6 7 33.BB b\IIi on US$687.09 miIIio n)(TO11) '’'

USB 40.12 1 D illion (20T0f

Employees

\ website www.axiabany.<o m
 Axis eANK
COMPANY PROFILE- AXIS BANK

Axis Bank Tndla, the first bank to begin operaténs as new pr4vaw 6anks in y994 after the Gowmment of India

specified undertaking of the

•' Unit Trusi of ln6ia ttffl-l)

Life Trtsumncc Corqora\ion of India (LLC}
z Licncntl Insurance fiorporstion Lid.
A\se with assotiates Uz. National Insurance Company Ltd., The New India Assurance Company, The
OrienFaT insurance Cor oM¥loo and Unlted fWuWnce Company Ltd. A¥i$ Bank in Indla today Is caplFa\
ized wfth Rs. 4dW3.77 Crores it has more than ¥Z8¥ brench offices and E¥tensén Counters in tfie country
with over 62Z0
w‹s Book ami pro•in8 t» be one of the tngest Ana nehvor£s in the county. us is the/‹sr 6o t i» indla to
oyer we araan czeo«e/rc‹/itr, without any charges, to ali Its 5avin$s BanL customers in ali the ences
ac+ass the county where It has presence. with the or eAg cheque faciTlty, <us&mers can make cheaue
payment* to anv beneficiary at anv of Iu e•lsten•-e place. TI•e ceiiin8 her inrtr«menc is is. s0,oo0/-.the
latest oflerires oi
the banL aIons with Oollar xar'anc is be Evro ar•d Pound steriin8 variants of the in‹emacionat rn e/ c« encr
Card. The Travel Currency Card is a slgnature based pre-paid travel card wh1ch enables trayele€a gfo0aT access
a their ntoney In Toca\ currency of the vlslting country In a sale and convenient may. Yhe Ink has stren8w In

order to achieve exoeTlence.

Tt iy has a dlverslfied presence across buflness and produk I Ines with corporateAdyanaes
constlzuflng ”57X of Tts cocal loan book, rerail ”20a, BE “14% and agrlculture WX, as on December 31, 2010.

The bank hasoverseas offices at Singapore, Dubai and Hong Kong and a represenzatWe office in

15
EVOLUTION

uTi was established in iss* by an act of earlian ent, neither did che ce•emment of India own
it nor cen¥rI&tes 8ftY capltal. Tfie RBI wks asked IN contribu& one-half of its inMal capiAT of R€ 5
tire, and gin the mandate of running the W In the interest of the unlt holders. The State Bank of ir*dIa
and the Llfe Insurance

banle which were not natlonalized then.zhls kin a}structure ior a unit trust 1s not found anY«here else
In the world. again, vniii‹e other vnit trvsts and mvtval f«nds, the w was o‹ created to earn p&‹ts. in
the course of nearby Wz decades 9f fts esd*tence, It (the UTI] has succeeded pfienomenaI\ in achlevlng its
objec¥lve and has the largest share an here In the world of The 8omesfic mutual fund indvcrs." The e-
ergence of a "furelsn eype¥t" during {ke Setting up of the url makes an mterertin8 story. The
annencernen¥ by the then Finance ulnister that the Government of inala was contemplatlng the
establlshmwt of a unlt trust cavgfit the eye of mm. Geor$e woods, the then president of the world Bank.
far. woods took a srea deal o£ interval \n the Indlan faia«ca1 svstem, as he was one of the Frir<iral
architects of the fcKi, in which his bank, rirst aoston
COypOWlOn Bank, id g $izeabl9 Shareholding Mr- W00dfi 0ff8f@, throUgh Mr. B.¥. Nehru, Wh+0 Wf Indig’S
£xecvta Director on the word ea•k, to settees of an exnert. the Cents jw«ped at to offer. and
asked the Rgi to hisId up the flnaTicatisn of the unit trust proposals UTI the expert vb6d Indfa. Tfie pnb/
polnt or. SulTNan made was that the Islam @ limit the oweWlp of unit to Individuals r«Ight unit in
•nnecessari y restrh•tine the market for un . Chile making this poirrt, he had in mind the endztige in the US,
where sr«alI Aer sion lunds are an important •!••• of customers for the unit trvsts. the Cents accepted
the /orei expert’s suggestion, and the necessary amendments were made ln the draft Bill. bus, began
<orrcrate Investment In The W, whig reoeived a boo'st Irsm the ta‹ con6eSsipn gi@n by ¥@
government in the ¥990-93 Budget.
According to this cencesslon, the di de ds recurred by a company Tom inw•smen‹s in other companles,
indvdina roe un, weir completely exemet from corporate income ten, and era i‹ted the d'ude•as declaed
or the in•estiy company were h@her than the diuiden8s received. The rewlt was a phenomenal Increase
in corporate investment whicx ac<ovnted ‹o^ sz per ‹em af the roial camtal •nuer us-a deme.
Because of high Tiquidig the con:orate sector red the uzi to rare its It4ui8 funds. this added to the
WatiTity pf The UTI funds.
16
 h e corpo ra t e lobby 'y h ice pr rh ape subil z oppos ed the e,st b li shment of t he tjTi in the piibl ie secto• ma rte u:e
o\ i for it s Own bcn rfit s later T I c Govcr n n em R8i power ga nJ 0 s ta rtcd w i\ h the find fizz io n o I th c u T i ‹ h
aricr i tieIf, h e h gl dr0 f1 of t h e LfTi c h Ortcr s Input atr rl t h 01 the C h;irm0 n wiII be nom'natcn by it. anrl one
more nomine e w'oul h br On thr Bon rrl of Try s teas e ' hile fin alia ing t I r d r act e iii, tne Cent re ‹ h ;nged 1hi s
st invtatinn. T hr Ch airma n was to b r no nJ ina t ed by 'hr Govern me n t, al be it in Rons iltation w i h n e i, AI
th ough the
; ppo moment was to br ma rl r in coristilta t ion with the 8 rscrve 0 ank, the Government could anpo! nt a perso n of

Board of Directors

Sm t. Shtkha Sharma

SP rl 5. x. Chakrabarti

Dr. R.H. Patil

Dore r to
Smt. Ra ma Bijapurka r

Oh ri R .B.L. Vafsfi r D +e r

Shrl M.V. Subb .th IO r Dire

0 me 6tO r to r

SP rl v. R. Kaundtnya

Oh ri Prasad R . Menon

Oh rl R . f'J. Bhattacharyya

D me cto r

D me cto r
SHAREHOLDING (as on March31,2011)

37WD

Shareholding pattern (Per cent)

June 2010 septemMer zolo oecem6er zozo March ZOll

P*omo4ers 3LT J7.4 37.2
36.3 36.6 37.7
DII 6.S 5.S S.3 S.1
29.5 19.7 30.8 20.0
 Break up of Net Advances (as on 31at Dec’10)

Above charts show, Axis Ba nk’s net advances are skewed towards the cozporo\e segme nt, oF whfE
h the financial Industry. infra, power, and meTaT together make up around 4 2%. Onlv 20a' of the net
advances are in
retail baflf Ing, with o m a or exposure to the housing segment Followed au zo loans. Each oF them ]corporatc
and ref all bank Ing) cont I i0utes 23% to ihe net reve nue of the Bank.

19
 MISMON AND VALUZS

OURVAt1JES

•' Customer Service and Pn›duc‹ Innovation tuned la diverse mods of individuel nnd corporate
cTienteTc.
* Continuous technology up gradalion while meinTaining human values.
•' f•rogiessive globnlizoiion and orhieving iniemaiioiiol standards.
* Efficiency end clfccii vcnns buili on cthicnl praciiccs.

Customer SatisFaclion ‹hrough

• ProyiJing quality smicc elTcctivcly and cfficier4ly
• ”Smi]g, it enh4fim our face value" ig a am•vice quality s‹rrssed on

' Maximization of Stakeholder value

* Success through Tenmwod:, lnicgriiy end People

MARKETiNG OBJECTIVES

air Bank wants to achieve foTbzwing marketing objectives by the end eftbe year 7011.

To gel the merket c4Pilnlizofion SEO Crore

To get IT e 200 Crore zmaiT inxeaMent
To gci 125 Ct • Corponitc inicsimcnis
•' To gei ito 175 Crere Capital investments

20
MAfOR PLAYER IN THE BANIONg INDUSTRY

We unde slam your world

HDFC

The Nousl ng Devefopmcn t C‹nance Cozpozarion Llmited ]HDFC[ was amongst the first to recelve an 'in
pzincIp\c’ aqp tovat from the Reserve Bank of India (RBI) to set up a bank in the prlvate sector, as pan of the
RBI’s IIbera\iza T ion Of the Indian Banking Tndusty in t994. The bank wa s Incorpo rorcd in August T994 in
The name of ’HDFC Bank LlmiTed'. with Its registered office in Mumbai, India. HOFC Bank commcn red aper
a z ions as a Scheduled COmmartial Bank in anuary T995.

8USINEM SUMMARY

NOCC Bank LlmiTed offers a range of commercial and t tansaCtio nal ba nklng s0rviceS. and tr0aSUry produyt5 to
+hoTesaIe and retail c+JStoMer5. It operates in thr0l2 agma nt5.

WHOLE SALE BANKING SERVICES

The Bank’s Target ma4et ranged from large, blue-chlp manufacturing <ompan\es in the Indian corporate
to small & mid-sized corporate and agri-base0 businesses. For These customers, the Bank provides a wide
range of commer‹ioI and transactional banking services, includlng
RETAIL BANKING SEPUICES

the o@ectlve of I 'e RetalT Bank is D prove its target market mstorners a fvll range o£ finantiaT
products and banLins sexes, giving the customer a one-stop wirdow for all hiisher banking requirements
The products are ba<Led by world-clan service and deTNered to the cvsDmers through tkie grew7ng branch
network, as welt as through akernat4ve delivery channels Tlge

' ATMs,
•' Flione BanLiny.
Nci Banking,
^ Mobile 8•nkiny.

Within thls trusiness, tbe bank has three main prodwt areas-

* Foreign rxchaoge and Otrivaiives.

•' Lncal Currency Money Mutter & Debi Securities.
* Equiiics.

HIFOPY

tCTCT Oank was orlgfnaTly promoted \n 199d by TCTCT tJrn\wd, an tndlan f!nancIaI Inszltutbn, and was Izs whoITy•
owned subs4d\ary. TCTCT’s sharehoblng \n TCAS Bank cas reduced O 46 through a pubTlc olferlng of shares
In Tndla \n fiscal 1998, an equly oRaring in the form of ADRs Ofsted on che NYgE in fiscal 20 I, TCICT
Bank’s acqulsizlon of Bank oF Madura Limited In an aTT•swX amagamatén In decal 2€KtT, and secondary
market sales by TCTCT to instlcutlonal Investors Tn decal 2001 and fecal 2002. TCAS was formed \n 1955

at the /n\ttatIva of 22
the hold ean£, the Government of india and representatives qf Indian industry. Tfie principal objective
was to create a development rInanual institution for prodding r«edlum -term and long term proc
financing to IndJan businesses. In the

1990s, ICICI transformed in business horn a development financial institution eflenng only project finance
to a aiverslfiea financfaT servfws group olfertng a wk variety of praducts end services, boch directly and
through a number of subsldiafies and affiT%tes flke ICICI Bank. Tn 1999, \OC4 become the first Indian
company afid the flat bank or flnancfaT Instltutisn from non•¥apan Asia to be listed on the NYSE. After
conslderation of various EDflgDrate structuring alternatives in the context of the emargtng competitlve
scenarlo in the fndlan banking industry, and the move towaAs universal banklng, the managements oF
ICICI and TCTCT Bank formed the view that the merger of \C\C4 with ICICI eanx wovld be The optfmaT
strateglc aITernat@ fsr both entMes, and would create the opt\maT legal structure fior tbe ICKT group’s
universal banking strategy. The merger would enhance value for TCTCT shareho&rs through the merged
entity’s access to Tar-cest deposlts, greater opportunities for earning fwbased Income and the eb\Iiy
to partlcipate In the laments system and prevlde tramaction- banklng servlets. The m'erger would
enhance value for ICICI Bank shareholders thigh a large caplNT base and scale of operazlons, seamless
access to ICICI's stag corporate reJatlonshlps built up over five decades, enoy Into new' Muslness
segment, freer market share In various buflness segments, paftTcularh/ fee•based services, and access to the
yast talent pool of TECH and ice subsidiaries. Tn October 2001, the Boards of Directors ef KICK and TC\C\
Bank and the merger of ICICI and Mo of its wfidly-owned retaTT finance subsldiafies, ICICI Personal
Financial Se-rvlces LIm1ted and ICICI Cepltal Services Lfmlted, wlth ICICI Bank. The merger was approved by
shareholders oF ICTCT and TCTCT Bank in Tanuary2@2, by the Hlgh Coun of Gujarat at Ahmedabad in
Mark 2002, and by the High Court of Judlcazure st Mumbai and the Reserve Bank of Tndla in T 200Z.
Consequent to che merger, che ICICI group's financing and banklng operations, both wholesale and
rerall, bave been Integrated in a s\ngk entlry.

Performance iIe•lew - Quarter and year ended w•aia zabo

J5Byearmngeazlnoeeselnstandzdne#roNtañerBx#Ax* 06trorebthegusrWzended
Mesh 41, solo frem
W 744 crore for the quarter ended Mesh 31.2W
+ Highest ever con6Tdated rzzfit gfter be of Rs 4A7O crore for Ge year ended Mark 3T. @¥0; 3¥%

23
• Net non•performIng asset ratio decreased to 2.B7% at March 31, 2010 From 1.96% at Mark 3¥,
2009 and 2.ISO at December 31, 2009
• Strong capiraT adequacy ratio oF 19.4% and Tier-1 capital adequacy of 1g.OK
• Dlvfdend oF Bs. 12 per share imposed

eatan<e sheet

Drying the year e n-ded March 3z, 2010, the Bank h a5 signIfirantTy strengthened in dapos\t franchise. Thls
/s rejected in the stmhg gtoWth in savings anM current a«eount depoSiU and increase In the
CPA ratio. Cha Bank <onTI nues to invest in expansion of IIs bran ‹h network to enhance Its
deposit franchise and create an integrated distribution network for b-ooh asset and TiablTity
products.

EASA deposits increased 8a# to as. g4,216 crop USA aB.B billion) at MarEh ¥, 2010 from Rs.
6Z,66g more {U55 14.0 blTTfon} a\ March 31, 2 I9 and the CALA ratio increased from ZB.7% a£
anarchy 3¥, 2009 to 41. a\ arEh 3¥, 2Q¥Q. Tell depp*its o£ the Bank wg're &. 2O2,g2T 6rD@ T

UPS 4•i.0 biT}ion) at March 3I, 2010, compared to R€. 22B,M8 crore T UPS 48.6 blIIlon T at
Part h 31, 2009.

The Mraneh network of the Bank has Increased to 1,741 Mranehes at Aprll 24, TO GO giving the Bank a
wlde dI5tyibution reach \n the county.

be loan book o£ the Bank decreased to Rs. 1B1,786 crore {UPS 40.4 blll/on[ at March 3s, zDyo from
is. 7 ¥B,8¥ ¥ crore (1.f55 4B'6 6iTtion] az March 31, 7009 mainIf due to the repayments Tom the
retail loan portfolio and I h'e loan e•rtfoITe of overseas branches.
 be orbln of the State eank of IndJa 8oes back la the lirst decade ‹•r to nlneteenth century with
the esta@Tsfiment of the Oank ol' Calcutta In Calcutta an 2 June 18Q6.Tfime years Water the bank recehnzd lo
chaser and was re•de$tgned as to Bank of 8angaT {2 Januay 1809). A unlque inrtituiion, It was the
fint jolnt-uod‹ bank oF Brhish TndTa sponsored by the Government of Bengal. The Bank oF Bombay [1S T
18dg} and the Oank of Madras (1July y8d3] faTlowed the Bank of Bengal. Use thee Manks remalned at the a
pan of modern banking in Inala tlll tfieir amalgamation s the Imper*aT Bank of india on y7 January
z9yj.erlmarils A•goir›dian
creatlons, the rhree presidency banks came Into e•Jstence elther as a resMt of the compulsions of imperal
mance or try the felt needs of local European amrnerce and care not imposed from ouWde \n an
astray manner to madernTze IndIa*s ecoemy. Their evzgutlon was, however, shapad by Ideas culled
Tom similar

tab traalng environrnmt and those in the ulatians of the Indlan ecor<•my to to economy of Europe and
be

BUSNESSSUMMARY

the business of the banks was /nTtIaITy conflred to #fic9unt\ng of bills of char\ge ar other negotiable
prfvato securNeg keeeIr\z cash account and receiving deposlQ and lsMng and drcufat\ng cash notes.
L‹›ans were restrTed to fis. or lakh and the poriod af accommodation conBned la three months only.
Tfie surly for such laans was eublic securities. commonly caIt•d Compaq’s eaper, bullion, treasure,
plate, init, or eoodr
’not ol a l>erIWabIe nature' ana no Interest couid t< charged t<vor•d a rate of weue per cerrL Loans agalnrt
goads like oplwn, Indd, sah o<gens, cotton. canon plete gogds, mere «v!n and slIlt ggods Benn also
granted but such finance by way of cash mia galned momentum only from the thira de<aae of the
nineteenrh ceotory.
25
AIR <ommodirIes, including tea, sugar and jute, wfiich began to be financed Water, were either pledged or
hypothecated to the bank. Demand promlssory notes wet signed by the borrower in favor of the
guarantor, whirh was in turn endorsed to the bank. Lending against shares of the banks or on the
mortgage of houses, land or other real property was, however, forbidden. Indians were the principal
borrowers against deposit of Company’s leper, wfilTe the business of discounts on prlvate as well as
salary b1TIs was almost the exclusive monopo\ of individuals Europeans and their partnership fims. But
the main function of the three banks, as far as the government was concerned, was to help the farter raise
loans From tlme O tfme and dISD provide a degme of stabillry O the qrices of government sezuritles.

SERVICES PRCMDED

PI R5f7NML BANK US '

AGR1CULTUWL BASEING
CORT'OR AT I3ANEING
^ Nk1 dANK ING
HlSTORY

Indlan Overseas 8anh {IOB) wac founded on diary IO, ¥937 by Shri.M.PM. Chldambamm Chettyar.
W had the unlgve distinction of commenc're business on the inauauml day ioeif in th ree
bra nch es rimu Ita neo•s Iy - at #a ra Tku # I and Chen nal I n In d la a nd Ra ngoon
in 8u rna {presently Myanmar) toliowed t'y a t›ranch In Pena•g

Tndlan Overseas Bank a'as che flnc Bank to venture inco consumer creait. it Introduced che poguTar
Personal Leen scheme. Tn 1S64, the Bank made a bBglnnTng \n computerTzatton In the areas of
lnter•bcanch reconcfllatDn and provident fund accounts. JOB was one of the 14 major banks thou mete
nationalized In 1969. On the eve of rIat‹cnaItcacion In 1969, \oB had l95branches In India with aggregate
deports of Rs 67.70 creres ana Advances of Rs 44.g0 crares. In1977, JOB opened s Mranch In WuT and
che Bank opeoed a Pores Currency Bending Unft \n the free trade zone in Colombo in 1979.As of Mai
2W, IOB had 1427 brakes in India and 6 branches overseas. Beef tke Bank has a network of over
240 ATMS and 2W Extensén founds. GB has speciaTfzed Tranche* to cater to the exclusive needs of
Commerc\aT 8t IndustrfaT credo, Tndustrlal finance, SmaTT Scale Indus@es, hI•tech agrlcuTture and forelgn
exchange.

TfRVlCE PROtñDED

' No Frills SB
Accounts Cum•nt
Account Feed
Deposit
' Rcinvcslmenl Deposit
Recurring Deposic Account
z Annuity Deposit Plsn
* Mulciple Investmmt
Scheme CumuTe£isc
Bcncfil Deposit
•' Multiple Deposit Account
27
Tee rh+ marketing strategy Ts develapad, there /s a "Seven R Formula" tfiat should be used to contlnualJy
evaluate ana reevaluate yr bus4noss actlvita. These seven are.

• Positioning
eeople, as products, markeU, incomers and r•eeds chan8e rapidly, comeanv -ust continually revisit
these seven es to maLe sure you’re on tracL and achie•tr›g the maximum resviu possible in today's
marketplace.

To begin wlth, develop the hablt oF looklng at your product as though you were an ounsA mañ‹eting
aonsuTtant brought In to help your company decide a'hether or not It's In the ight buslness at thls time. Ask
crItIcaT questions such as, "Is the current product or servlet, or mfz of products and servlces, appropriate and
suTzabTe for the market and the customers of today7"

Develop a habit ofl awessin$ your usined honesth/ and asking,

• Are T ese the nght products or seoices flow our custorrtera taday'?
Ccmporal la your corny '\itors, Is your product or service superior n sofne significant
way la anything gJa available? |lro. what is i °* If not ceuld you dm'c1aP *n area
oI sugczioril 5houTd you be oEering Ihis product or service at all in the cuzzen mBzket

• Pmduct vaiieiy, qualiiy and its features.

• 1s ihv • e market for the urvim on offer?
• Is ihe mutter growing or shiinking?
• is ihc service neu' or esiebiisiic4'?

• The USI’ nd the nroducc.

28
Products and Services on offered AXIS Bank

• Essy A‹›csss A<eo‹t o • Car Loans

• Pnmc Bgyings Account
• Stu‹ly Loans
• San Account • Two Wheeler Loofi
Woinm's 3aving Account • Consumer Loan
• Suit Privi •ge Account
Investments:
Defense Satary Accouui
• Online Trading
• Trust & NGO Savings
• Mutual Funds
Account
Azzsdi —hfo frills
• Depository Services
• DC {D) Account
• E DepogiQry Services
e Pmsion sa+›np‹ Account.

Depoeits:

• Health Insurance
• Fixc8 Dcposile
• Enmity Heal\h
* Recutriny deposits
e Heslth Guard
• Eocash 24
• Itorpiial Cash
e Tax Saver Fixed Deposits

29
 The

On a Downhill Journey
Axis’s Wallet Is Getting Thicker and Thicken
B5EBAN*Em

2008/06
2006/01 659.03
200J0B 07103
2009/J9 ]O.@]8v#B
2000,0
20l0'l

744,Z93.6 crore
Six Year revenue CAGR: 39- 3198
The second P in the fomltiTa /s price. develop the hablt of contTnuaTh/ examlning and reexam/n\
ng the prlce¥ oF the products and servlets you salt to make sura they're still approprlaw to the
reaTlties of the current rnarltet. Sometlmes you need io Tower your paces. at other times, It may
be appro@ate io else your prices. Many companies have found that the profitabitlty of cenaln
products or services doesn't justlfy the amount of effort and resources that go Into producing them.
By raising their does, they may lace a percentage oF their customers, 6«t the remaIn\r\g
percentage generates a proflt on even safe. Could this be appropriate for you?' Sometimes you
need to change your terms and condition* of safe. Sometlmes, by spraadJng your prlce over a
sefles of months or years, you can sell far more than you

Sometlmes you can combne products and servlets together th speclaf offars and special
promotions. Sometlmes you can IMuds free additlonal lfems that cost you very Iktle to
produce but make your prlces appear far more attranlve to your customers. In bustnesc, as In
nature, whenever you experience reslstance or fwstratbsn In any part of yaur sales or marketing
anñinles, be open to mfisJtl ng that area. Be ppan to the poscl bITIty that your current pacing
structure Is not Ideal Mr the current market. 8a open to tbe need to revlse your paces, iF
necessary, to remaln comqatltive, to surv@ and thrive in a Fast• changing malt place.

4XT5 bank has developed Innovative strategies against Tb compeTiory wiFh respect to priong by use a'f
technology. The use of technology is the strawgic dñferentiaor for AXLE bank that helps in
cost minimization and creating efficiency & the customer. Tfie creatlon o£ centraTlzed processlng
system linking all its branches has been a major strate@c move in this regard.

The priclng mechanlsrn and Features of varlous HDFC products are as follows: Home Laan¥:

z ror losn of up io five ycers for airlounts between Rs one 1ekh and Rs 50 laklt is al9.25 per
cent (9 per cenc).
z The retc For loans ofs years and above up ‹a 10 yv¥rs s new m 9.75 cent f9.50 per c‹nt).
The interest rate for above te-n ycon ew slandx of I 0.25 per cent { TO per cent)
Descrlpt@n of Charges Regular Savings Account
Minimum Average Quarterly Rs 5000 (urban),
Balance Rs 2500(Semi Urban},
Rs 1000 (Rural branch),
Rs 500 {student account}
Charges on non rrtafntenance thereof RsT5O per quarter(urban gt semi urban}
Rs 500 {8uraT branch),
Rs 250 [student account)
Cheque Boo«, ease Boox Issuance Free

ehone Oanhing and Net banking free

The third fiabir In marketing and sales.is to think in terms of promotion all the time. 9+emotion
includes all the ways you tell yaur customers about your product or services and how you then
market and sell to them. Sma\T changes In the way you promote and sell your products can had
co dramatic changes In your results. Even smaTT changes In yr adveniflng can lead \mmadiately
to hlgher sagas.

AXIS thank has devised an aa8‹assive Aromot@naT strabngy £hyqugh its diWgified distribution M* whit
Includes tled agenclea and automate channels Tlke banks, brokers, telemarkatlng, dlrect sales

force, internet advertising .

Some of the promotional activities undertaken are:

Close SclTing exercises

•' Organizing school level painting competitions in order Io cmate awarenNs about the
environrnenloT concerns and be wild Tile Io promote bids advantage account

32
 Wheels of fonunc - This promo arc tsrgcicd at all those cuxiomcn who svail a
pcrvonnl loco. car of a twp hctler locn. Thrre will be lucky draw at ill end ot”fhe
promo and tile winners won Id get czoiic prizes.
x Personelizod mamas by sending fnailcn nbout various products on olTcr to all those who
com in oonasct duriny be moss prcsnotion slzo •gies.
The promozlooal strategles are carrled out with an objectlve of p'osItbnIng AXIS bank as a one stop
financial super malt. The focus of the promotérrs as not just confl ned co acgulskJon of new produce
but also extends zo creating produn awaNnesc, enhancing usage, and also proMde value add zo the
customers for thelr Ialtt+ and loyalty. These promotions are sclenzlflcalty deemed based on 8ata
anaTysls and data mining In order to have maximum impan on the target audience.

The forth e ‹n the marketing mix Is the pace where your product Or service is actually id. You can sell

‹o personally meet and taIL with the prospect. home wT| by tetema&Ting home sell tfi+ough catalogs
or mai oruer. utanv companies we a combination of one or more or chese mechods. it efers
‹a those acttvlties of the company that makes the product avaibble ‹a target consumers. it I dv8es
geographic
8pWad, dGtri bUtl0n chdfinel0, defter ¥hlps that fa<iIirat9 networ-k eflabli5fi Wr\\. did bg nk iS MdBIy

spread in India and its core banfin$ operations has huge netwsrfi-

T*8 I branches and extension counters forci otliccs — in Singapore, Hong Eung,

6*70 ATMS reaches out tu 34 sites and union territories ccross the «ount
AXis bank owns a wholly owned dlstz4butfon channel wlth dedlcaNd workforce, thereby I rlng
the operating cost. It +z<e< iis outward base to good effect to sell nsornked products.

33
The flftfi eUment \n the marketlng mlx Ts the process develop the halt of sending back and
looking at even Est+aT element In tha process or sarv •e through the eyes of a crIth•aT prospers
Remember, peop# From thefr first \mprescIon about you withln the Rrst 80 seconds of seelng you
or some element of your ampany. Small improvements In the pracesc or external appearance
oFyour product or sowice can

ampany, your produn or sorvlce, you should thlnk In terms of everythlng that the customer sees From
the Brat moment of contact mth your company ail the way through the puxha*ng process.

Process refers to the way your praduU or service appears from the outside. Pac4@ng refers
to your people and how tbey dress and broom. it refers to ysur offices, ysur waitlng rooms,
yeur brochures. Your correspordence an0 e¥ery *n$\e visual element about your company.
Ever'rthing counts.

The nem P is poslténlng, the habit of thinking contTnuaT\ about how you are posfdoned Tn the
heaM and minds of your customers

How do people ‹hink and inIL eboul pu when pu^rc real pane?
•' He do people think and ITIL about jmur company'!
Whol positioning do pu have in your rrusrkeT, in lerms oflThc specific words people use
when they describe you and your ofTcricj;s la others'*
AXIS Bank has positioned its branches In all the strategic posltion so that it Is easily a°°°••'bk

to payment hub.

34
The Banks Centralized Pksne Banking Centre provides customers across the country Access Ie the
Bank over the phone, handTlng multiple guerles In about 7000 caTTs per day.

Tt1¥ @nk’S @ftt@l led @|Tgctipn # nd Plant Hflb [CA ) M¥nag@ thy ent4@ col|¥ztI0n And gaymefYt

activity under tfie Bank’s Cash Management seduces (CMsl acress the tounrry, handTir+g on an a•era8e
about fis°i000 ores per month on che coTlectlon front and a0outAs.IN crores per montfi a

The final P oF che marketlng mlx Is people. Develop che hablc of tlllnking \n terms of che people
Inside and ouDide of your business a'ho are responsible fior every element of your sales and
martetlng strategy and actWlfles. Ic’s amazing how many entrepreneurs and bus\nesspeopIe w4I work
extremely

lirtle erterr0on to the Fact that every single declsfsn and policy has to Me carried out by a speclFw
person, In a spec\Mc a'ay. Your aMiIIy to select, recruit, fire and re sin the proper pre,wlth the
sgITIs and aMiIItIes to do the job you need to have done, Is more Important than everytfi ing else
put together. An essentfaT Ingredient to arry service profislon \s the use of appre@ate stall and
people. necr•itinB the rigbt staff and tralning them appropriately in the delivery oF seMce Ty
essential If the organ\zatIon has to obtain competizlve advantage. AXIS Mank values iD human
resources very hlghly and Is on a constant endeavor to continuously deveTDp Its human
resources by laying strong emphasis on trainlng devaTopment. Ic possesses a hlghly motfiated
team of professionals and has che fowast employee turnover rate In the Industry.

Ill easy 195QN most of the marke¥¥ were choking wlch surplus products on offer, defylng the hazy
”the batt quality will always sell”. The emergence of 8randlng as a vaTuo In offering has kept
many organlzations leaders, and In survUaT. Branding ir termed as a part of offerlng, created In
the mlnd of customer and consumer of superlor values that he or she perceives and ready co pay
for. The brand
can be related with uparior pradun, superiar seTces, and superior sales after devices, or easy
accesc. In toda\r*s era wlth increasing compotidon, Is that not important enough io revJslt hand as a
rnarketir\g Dfif+ rlng lProdC OT 5WIt¥].

BRANDNAME

Uni has offiEtaTlv announced the change of lv name & ’Axis Bank’. The awareness campaign tttTed
'uTt Bank is now Axis Bank, everything ‹s the same except the name*, he been weated by O8‹M an0
ix the brainchild of Sumanto Chauoqadhyay.

The decUbn to re• brand the bank emanated from the need to move out of a scenario of brafid
conFusloo thac Is created by several sharehoTder•unreIatad entées using the UTI Mrand. On the
creatNe polnt oF v\e , the change of name from UTI Bank to Ails Bank la precisely just o name
change. Eve hlng else about the hand wmatns ta same. Axis Is a strong name wlth an International
aura to ic. It ti very moch in keeping wlth UTgs success stor\' in the prlvaze banking arena.

the logo design of 4xis Bank is teased on the tear ’A'. Tt is a tontemporary, universal and slid de$ign
that retains the 0urgun0y color o£ the ori@naT UTI o as a link re fts heriNge

MARXETINGINffIATfVES

On che marketing InItiatñ'es, a multimedia carnpalgn was unfolded on August 1 thac wlTI go on for the
next few weeks. It seeks to reassure customers that the change of name wITT In no way affect the
servioes offered by the bank. On It+e thought process the creative pTarlorm adopted for the name
cfiange Is based pnmarl on Mlns — siblings whose names are dlfferen€ but are idwticaT In every other
wayThicempagn&llrunm

F Television
Outdoor

Some interceding innoyationa are fanned in the print medium. On radio, the name change ñ 6eir
exposed Tn a slightly difierent manner, In keeplng with the nature of the medium.
 Grewth Prospects of Axis
Over the last five years, the CAGR For loan growth for the banklng Industry has been 25•26 per cent,
for Axis Bank it has been above 4D per cent.

Nonetheless, \ he bank is stITI expecu•d to grow in loan portfolio at 1.5-1.7c the Industry average.

in FT iu advances grew at the rate of 27.S por cent.

In FY10 they are expected to grow at fie rate of 27-2B per cent an0 in WI I at Z 5 per <enT.

For the banking industry' as a whok•, the loan book is expected to grow ot IB per cent In FY10 and 16
per cent in £Y11.

Thus, cis Bank's f”as‹ pace Of Browth ise•pec‹erI to sustain ouer the next couple of years.

Marketing Objectives

Axis Bank wants to achieve FolDwirig marketing objectives by the end oF the year 2011.

k To gci the morkci cupiinlizaiiun 500 Crore

» To Rei the 2IJO Ceore miail invesiiaeni
k To gci 1 25 Crore Corponiic investments
To dci the i 1s t’n›rc t’«piioi iiivcsinicnis

37
Net Revenue Segmentation (FY 10)

Net Ravenuo SegmenNbon (FY1O}

In FY i 0, treasury operations contributed -34% of total revnue, retai1 banking -23

% and corporate/ wholesale banlcing -23%. In December 2008, the bank
launched its new investment advisory service exclusively for high nefworth
clients.
In Janugl y 2009, thc b8t k sct up Axis Ascct Management Company ‹a c8rry
on thc activities of managing a mutual fund business. Alsoit incorpurafcd
Axis Mufual Fund Tru8tos Lid to act as the trustee for the mutual Fund
business.
In Febniary 24. 2010, the bank launched ’Call & Fay’,a mobile payments solulion
using Axis debit cards.
March 2011 Bank launches " e-Wallet Card'

September zuus Banx iauncne-s pMvate oanxing ousiness

in
the domestiE Market to cater to highly
affluent jndlviduaTs and fazniTies
March 2008 Axis Bank la unches PTazinum credit ca rd,
India's first FMV chip based card
September 2007 Axls Bank tles up wlth Prince Edmond de
Rothschild Europe for Weahh I ianagement
1uy20O3 u i › oanx re-oranos nseir as Els Bank
3ug20O7 UI Bank ties up vdth Tata Motors LV. For
Car Loans
Url Bank's expansion into Asia supposed by
FR5
April 2007 u i i nans opens a rinanciai services miegory
I Branch \n the DfFC in Dubai
Aprñ2OO7 u i i Bank ties up with Hyundai Motor Trldia

u i i eanx tres up wirn nreL to provioe

finance for infrastructure projects in the

UTI Bank launches Car Loans in assoEiahon

with Meruti IJdvog Ltd.
U i i Bank becomes u›e ›i >‹ Indian bank to
successfully issue Foreign Currency Hybr4d
Capltal In the in\emotional Market
U i i eank opens Representative pp\ce in
Shanghai
May 2006 U i i Bank and LIC]oin hands to lawn n an
Annulty Card for group pensioners of LLC
May 3006 UTI 6znk iies up Mth Geojlt Financial
Services to offer Onllne Trading sefVices
to
its customers
April 2006 39 UTI bank opefis Its first International branch
In Slngapore
December 2005 un Bank wins International Financing
Review{IF R) Asia ’India Bond House‘ award
for
the year 2005
u ii mans ano aajaj aHianz join nanas to
distribute general insurance products
March 200S UTI eank gets listed on London Stod‹
Exchange.
raises US$ 239.30 milllon
February 2005 UTi Bank appointed by Govt. of garnata#a as
the sole banker for the Bangalore One (B1]

February 2 g4 UTi Bank {by punuing a praaet\ve strategy of

forging bllateral agreements and being a
progressive player in the multi-lateral
consortiums for shared ATM network) offers
in customers access ro over 7000 ATMs across
the country - the largest to be offered by
any
Oecemoer zuuu 8anx inaugurated u oT ar Thegu near tne
Nathula Pass in Si#k‹m. This ATM is at the
highest altitude in India
The Banks Debit Card crosses 1 million mar1‹
Auguxt 2tD3 TozaT advances crosses is. 7000 crore
Niay 2tD3 Banks declares a net proflt of Rs. 192.16
crores
for FY 03, a growth of 43% over the
previous
February 2003 6ank In a ploneerlng move, launches the AT

Saving Bank customers

reDruary zuuo Oanx wins mandate to set up ia e i h'is at
tne
Western RaTTway Statlons along the Mumbai
August 2002 Bank signs MoU with BSNL regardlng bill
coñRcflonsendce*acm**theoovnbythmugh
both online and offline channels
March 2002 DspxiuCrossRisZOOOwors
January 2002 TheBankñl0O"bmnchopenssiTutcorin,

The Bank opens an ATM gt God DB k•Xhana, i.e.

January 2002 the New DeIh1 GI°O. making It the Orst
Instance of a commercial bank settlng up an
ATM at any post•office in the country.
July 2001 Bank ties up with Gow:. at Andhra Pradesh
for
collection of commercial tax

December zuuu Bank opens its 200"’ ATM. It beromes the

2"-
largest ATM network in the country , a
position held even today

dank a ecomes ruTfy networReo

uTi Bank talls off i\s proposed merger u¥ith
Global Trust Bank and surges ahead on its
own
March 1995 Completes first profitable year in operation
April 1994 Fii s+ branrh ol U i | Bank inaugurated e+
Ahmedabad by Dr. Manmohan Singh,
Hon’ble then Finance Minister of India

December 199Z Registereo

in ortice ar Ahmedabad: Hoad ou cc
Mumbai
 CHAPTER III

ANALYS|SAND|NTERPRETATION

OF DATA
 Some ratios that are relevant for evaluating banks include

• Cradit to deposit raio

• Capital adequacy ratio

• Provi 5iorT Coverage fat la

• Rct uI n on assets ratio
We thought iz would be an inzerest‹ng idea to look and compare these numbers For The Tending private
ISO FC Banh. ICICI Bank and Axle Bank [ and pubIi‹ sector (SBI, Runjab Natlo nal Oank and Ba nk of
Baroda) banks. IA addition, be will also see how he same racial hasa r h anged over the past few yea
Is.

Credlt to deposit ratio: This ratiq inQi£a\es hps much pf the advan‹ea lent bY banks is
dene t hrough deposits. It Is the proponion of loan -assets created by banks from the deposits
rere\ved. The hIghe I The ratlo. the higher the Ionn•assets created from deposits. Deposits
would be in tfie fozn\ of
c urrent and saving account as well as term dcqosirs. The outCome oF T hl5 fatio reflects the ability of the
bank to m ake oprlmal use of the available resources.

Credit to deposit ratios over the past S yaars

¥ FY05 • Py06 !: f¥07 • FY08 e fY09

hiDFC \CfC\ Ax Is GB-i PN6 8oB

If we see I he folfowi ng chart, ICICI Ban k distinclIy stands out from iIs peers. A st ro ng reason fa r the
sa me wo uld be *Is aggressive nature. £ urtfier, PSU banM and NJs Bank have see n their ra tJos
increase grad u ally over I he years. The credit £o deposit ratio of HDFC Bank on I he other hand, ha s

been fairly stable.

[or weIghted\ assets. The SBI has set the mlnlmum capital adequacy ratio at is for aii b nn. a
ratm below The minimum Indicates that tfie bank is not adequately capitalized to expand Its
operations. The ratio ensures that the bcnk do not eapand z heir business without having
adequate capital.

It must be noted that it would bg d\ffiCuIt lay an irtvesbor to CaTCula£e this ratio as banks do not
disclose z he details required for catculatl ng the denomlnator (risk welghzed average) of thls
ratio in detalT. As such, banks prQvld4 tfi4ir CAR horn time to tlme.

Considering that the Indian banking sector has been growing at a strong pace, all the leading
banks, both prlvate and public have been expanding operations at a strsng pace. is such, their CAR
ratios are well above be prescribed flmit of 9 . Prryate Banks such as HDFC Bank, 4xis Bank and ICICI
Bank have In fact increased their CAR over the past Tour to five year.

CAR over the paat5 yea¥s

MQFC lCICI Axb

As for the publlc banks, SBI and Punjab National Bank (RGB) have seen their CAR steadily expand
over tfie past few yaars as melt. However, this radio For Bank of Banda hos been fairly stable.

Non-performing asset ratio: one at NPA to k›ans ladvancesl ratio is used as a Measure
of the overall quality at the bank's loan book. An GPA are those assets for whirh interest is
overdue for more than 90 days {or 3 months[. NR Nf'As are cakulated by reducing cumulative
balance o£ provisions outstandlng ar a perlod end from gas NRAs. Hlghcr ratio reflects Using
bad qualiy oFlacns.
 NPA ratfo over the Paat 5 yeara

The GPA ratio is one of the most Important ratlos in the banklng sector. It helps Identify the
quality of assets that a bank possesses. IF we look at the chart below, we can ‹leafy see a
dlffefentlation between Indla’s largest banks. A Izank shell as ICICI Bank would garner one of the
hlghest NPA ratios amongst prlvate banks on the back o£ io aggresslve nature. As the banks
lends our stron@y to rustomerx the chances o£ them defaulting also rises. Plus, considering tfiat
pfiva\e banks cbarge higher interest costs would only make thlngs more dlfficult for in cusomen.
At the same tlme, the NPA radio of a relatively much conservative bank such as HDFC Bank would
remain low. Tt is clearly evident from the above chart. The maglnol spurt in this ratio durlng fY09 is
due to Its arqulsltion of Centoñon Bank of Punjab.

I"-urlher. Axis Bank has done well in the recent past to bring down iM NPA radio. No is thee Case for Bank

of Bazada {Mo B[. P ke has done weIT to keep iu NPA TeveTs to as +eII. u for India’s largest

bank SBI, lu HPxs are relatively much higher than thaI of its Psu pners. This can also be attributed
la iu aggressive period over the past New years.

Provision coverage ratio: The key relationshlp in onalyzlng asset qualiy oF The
bank Is between the cumulatlw provlslon balances of the bank as on a parricuTar daia to gross
ne/u n is a measure that indicates the extent to Each the bank has provided against the troubled
part of its loan portFoTlo. A high ratio suggeSTS that addi£lonaT proylsion5 to be m ade by the bank In
the coming years
would be reTatrvely Dw [iF gross non-pefiorml ng asset do not rise at a fasfer clip].
 HDFC JCICT

Qn a @ervi ng the above chart, we can notice that prJva ie banks such a s HBFE Ban k 8i IEfEI Ban k as
also PNB and Bank of Baiod6 h8v4 been qui Te conWrva£ive wben iT comes to covering their NPAS. Axis
Ban k on tne ooh er hand ha s been exlra rortserva tJve in the pa sT few years. Th‹is e¥pJaJny the rea son
for the sharp improve ment in £fte h PA radio a£ well. Thee sa me can however, not be aia abom 5 BI. which

is he onIY large bank w hicn has been its pzovi\ien coverage rat‹o oeterierate over \ be past fpUr years.

Return on assets ratio: Relu »s on a»e‹ {ROA] ratio is Ihe net income [profits} generated by

the bank on its total assets (incl udIng fixed assets}, The higher t he proportion of average earnings
as*ets, t he better would be t he re Stjl t ing ret urns on \ otal
as*ets.

Avg. ROAs over the past S years

While HDFC Bank has Oone well to maintain ity ROAs over The past few years, that o£ ICIC Bank has
been gradually on a decline. The other banks, has however Oone well to improve their return ratio
over the past few years.

Conclusion

Looklng at the above mentioned parameters, It would be qulte easy \o dIfferenz‹ate the aggresslve
banks from the conservotlve ones. Durlng good times and bad, banks such as HDFC Bank have
managed to keep things under control. Relarlve\ aggressive banks such as \C\C\ Bank and SBI
keye been facing some problems. I urtfiez, PNB, Axis Bank and Bank of 8aroda fiavc done well to
Improve thelr asset quality, return radios over \he past few years as well.
The Most Social Media Friendl Private Bank in India

36
CompetitiVR Position

Peer Comporison

66.30 10

21.9
P/BV (x}

Visit Distribution of the Sites

m, 2 ,z 64
Fixed De osit Rates of Various Banks

Base Rates

50
51
 AxT¥ BanM HDFC Bank tgTCT Bank KetaM Mahindra
eanL

M ar ’ IN Mar '11 Mar '1 y Mar 'T1 Mar '1y

41 II.55 4M.23 I.I 51.82 Jfl8.44 4ff.V7

4I 0.55 465.21 I .1 SI .82

Share Application Money 0.00 0.00 0.29 0.00 7.98

O.OO 0.00 0.00 0.00

Reaervm 18,588.28 24,914.tf4 53,938.82 6,464.95 3,350.92

0.00 0.00 0.00 0.00 225.35

A8J3SS 4,0505]

I H9,237.SO 20R.S86.4 I 225.6u2.I 1 29.260.97 34,3f›5.â7

26,267.88 14,394.06 1y,5S4,2fi I 1,723.95 5,S*S.42

Tote! Debt
40,9&k92 39,890.79
Other Liobiliiics & 8,208.86 28,992.86 15,986.35 3.032.36 1,694.83
Prm'isions

1‹H,713.37 277Q5L60 4MD33.€7

52
 HDF€' I€'ICI Itotek In4uslnd
Axls Book

Mer'1 I Wr't 1 Mar 'I I Mar 'I I Mar'l 1

Cash A balances wilh RBI I 3,886.16 25,100.82 20,906.97 2,107.72 2.456.04

Balance wiih Banks, Money at 4,S68.02 13.183. 11 363.26 I .56B.56

Call
142,447.83 159,982.67 2I6,365.90 29/29Jt 26,t6S.65

J‘7,t21W J3,9$0.BJ

3.426.49 5,244.2 1 9,107.47 831.80 97I.26

T, i 76.03 3.073.56 s.363.2t 406.2D 99.20

Accumulated Dggzeciafion

@k40 57306
IXet Bhiek
22.69 0.00 0.00 0.00 24.4 I

4,632. I2 14,601 .08 I6.347.47

2d2,‘7t3.3‘7 277/52.6J 406,23W7

Contingent Liabilities 429.069.63 559,681.87 883,774. 77

57.400.80 28,869.10 47,864.06 4,470.06 7.860.30

462.77 545.53 478.31 92.74 81.95

Bouk Vnlue (Rs)

53
 last Prtce Marhei Cen Net Interest Nei Prost Tool iYsseis

47 I.40 I 10.167.83 19.928.2 1 3.926.39 277.352.6 1

944UT93 25.074.05 5.151.3h 406.233.67

IS*lS4.8t 3,388.49 242,7l3d7

)7,l05.0'6

26 t.S 5 l2,?02.' 577.32 45,635.8'i

YES BANK 293.65 10,308.46 4,H1.74 727.13 59,007.00

390.70 6,682.8J 587.08 51,456.37

UG Vysya Bank 4.795.1 5 2,694.06 318.65 39,013.98

378.45 4.056.24 12769 415.59 2b.224.84

J.7IJ.IJ s I5.20 50.50s.15

SianChon 1 DR 8i.5S l9Ri7]S#0

«.on I ,7B9.S4 1,218.41 2I S.OS 14,591.52

79.80 204.6 1 3 I ,693.0 I

Lakshmi Vitos 97.95 955.59 101.14 1 3,301.10

40.10 53G.2h 21.43 7.332.33

54
0fl$WaxmiBenk 63.95 906.42

Goldman BEES 2.774.35 284.66

Financial Performance of Axis Bsnk

We new intmsl iname {Not) oFAxi¥ Bank. over Ihr Pet ] 0 para. hos rocke •d by 54.g%« f
*ADR From Rs. 9R Cr. in FYOT to Rs. Rs. 5004 Cr. in FY TO, en8 ils \oIaI ncomc Itas Brown by
34.P°4 Coun. During •qsny PcrieJ iis buoL veluc a4\d Ers hevc jumPoJ by 37'r and 2S
% rasp.

The bank has znuintoynt^d ›ls ncl profit Tu TotRT funJ retios @\ 'uw T end T .2^i during FY0*i la
FYox, whets in ihr lasi two financial yep Chi; rslio hcs b<m above I.2S. This if\creasing
lrcnd of net profit io iotal Fund ratio shows rim ii hes continuously mere d its efficiency of
uiiliring Funds. The non mrforming a«cis INPAI in nci advances rsiio hes also
shewn a decmasing \rcn4 from 3.46°a in FY02 to 0.4% in BY 10 which shows be bank
has continuously incensed its asscls quiilny. Ti lfas elso tnnintsincd « \'cry 8ooJ vapiHtl
adcuu»cy ie\ie fCAR) oF
1. 5.8Ve nt the end o1’ FW 10, weli nbove the Rbl guide line of be, which indicates thni ii cnn
ensily cover elf the ssmciatod risks.

hence, ihe IO YEAR X-RAY ef Asis Bank is Green {Yery mood).

55
Analysis of Axis Bank Ltd

In the short-term

Anti 8onfr"s tareei for fiYl i' •

his Bank has reported a strone oerformante Tn December 201a quarter-

• It has shown a 36% jump in the Mer Profit at Rs. 8g .i+ c^. •d • zw rise in the Net \nreiest Income
to Rs. ¥733. T2 Cr. a n the bar k of robust 46% credit growth.
• Tfie e{ h e r in ppm e pJ The gank inched u P bv 169a to Rs. 1\ 4 7.71 Cr. mainlY on the back pf 2 TB
jump in t he lee ‹ncome a\ Rs. 968 Cr.
• CAR has der reased to 1Z.46% in Q3 FY11, compared co 16.8% in the same quad er last year.
• Its Net Tntere*f Margin I Otfu I stood at 3.8 T X s\ ring 04 FY T1, com Pnred to 4•X' during Q2 FYT0
(much higher Than the industry atanda+d Of 2-2. III.
• yfie net NPAs of cxia Bank stood at 0.29a in Q3 FY1 I, wnich ia amongst The lowest in the banking
industry, the Provision coverage radio stood at B2.69%, much ^*B^er h an t he regular ory requirement of

Advances of the Bank have reported o strag BroMh of 46K on yr-y Masls and 12% on go-q basks
to Rs. 1235d7 Cr. \n the Dmember Z010 qjjgrter. The growth in the advances woe driven by 69%
jump In the corporate segments at Rs. 70518 Cr. an0 33a' rise in the retail segment at Rs. 2520d Cr.
Agri 8

56
miczofi nance loan baok grew by 2P@ to Rs. TD73 Z Cr. and SME by 9% to Rs. T7053 Cr. E xposuIe
to the Microfin0 M4 iDstituLlQns is Oyound yt6 of advance book and that of Telecom (mal nIy 2Ei
licenw advances) consti£uTes 6% of total advance book.

For the nine months en0ed Oecember 2010, Axis Bank has reported 37K rise ‹n the N\T at Rs
486a.99 Cr., tea •n fee-based income at Rs. Z559 Cr., an0 6% in the other incsme ar Rs 318a.73
Cr. compared \o that oT corresponding quarter last year zespectryely. Tn FYJ}, 5o fBr, it has
opened 142 branChes and t010 ATMS. Thus, the Bank is on line ro ac Sieve its target her FYIZ.

lnrreaslne est of funds js a cause fer «onwm•

The RBI has increased \ he Repo rate. Reverse repo rate, and CRR In the Task one and a half y4ar in
several ph args to control infJatJon. This lfas lead to lower loan able fund availabiTi ty in the bank and
continuous Increase In cost of fun ds, which can be men in the chart. As, the inflation rate is still on the

higher side, I ighI mo netary golicy is oxpeczed a con t‹nue in the short-term. so. we expect that

the <osr of funds will also inc rea se further in the short-t4rm, whim h will keep margi ns unde r
pressure.

RBI. rGcanTly, has in£ rG¥sad prOviS*oning p0ycenzage on housing, read estate. and many of her Types
of loans. Thls will aFleet The pror iabiIi\y of T he bank be£auw. in T hG yeTaiI segment, It finances

almost 70% advances In housing.

Considering above falters, we expect that the shon•term future prozpeew of Ax\z Benk will be Orange

57
• h already has branches In Nngapo Hong hang and OubaT \nternBfiDnaT F\nancfaT Cantre. Abovc 14%

In Jan 2011, noir Bank, , annevnced the launch of Axbolrect, an online trading pbUbnn- a product of
«s *• olIy<•wncd subsidiary, A•is securkles and Sab Ltd. Axisoirect Lai ofrer traJlng in
c*‹x. derI•at1ves, ieo segmenrr threu8h use and 85E, and pro*kIe well researched intonYetlon abovt
varlovs corporate, a•cess to IndeI>•ndent thiru-party research, stod‹ research and analysts
tools.

w in three Y•ai•, union n t›cx< ‹men its t‹a«sey snMa‹a oi 3s-aox. cnss d•¥• >
sery upn ant rots in sri«s <> I a c»‹k w >»a misi‹a h oniy i<«r ocar a■nIa- ssi,
eve, Ha+<

SB
 Pradun strateev deslened to benefit customers•

To heat the market, Axis Bank is adopting difterem product strategies. Recently, ir has extended the
repayment period of The standard home loan To the maximum tenure of ZS years. \n the step down
product la type of home loan product], the customer has To pay a higher EMT when the combined
famlly income Is higher and a lower EMS when the fami\ income has reduced over a period of time.
Apan km tfiis, the Bank has given optlon to Its customers to close the loan bebre *s maturity with no
prepaYmenT

BxnmnsSermor-Hemanstevora›xEsnoadonñnesemor

The banking seek or is polled to go In line with the gfawrh of the economy. She Indian economy is
eapec\ed O have a huh gnowth in the la ng•terM and So in the Indlan banking actoy, whiCh ñ currently
In coMoTidatlo n stage. According to Mcklnsey Report on India Banking 20TQ, ’The banking Indax has
grown at a compounded annual rate of over s1u since april zool as compared to a 27% growth in
to market index for the same pefiod {2@y to 2Qz0)'. The regort says that th9 Ind ian banklng metor Is
6fiDi log TOwBt’DS fi high• UOt’Mi +tg CMOS. Asia BE ftk. bgiUg tl14 third &T@SL Qi' iVfiT g 6fik In India. iS

ready O take full advaMage of this growth opport+in1ty.

Under FinanElaT IncTus\Dn Prpgr¥m, RBI is tq kl ng Ini£Ia£Ive to prpvJde bankinB services at affordable costs
in the weaker seuions oF society or the unbanked segment, which daes not have any acce-ss to the
formal banking system. m of now, it is e-stimated that of the Indian pspularion aoes nor have
access zo fqrmaT banking Facility and nri la keen pn ash leving foot fl nanciaT I ncTusion fpr
sustaining
eq izad4e grpw£h. Axis Bank is £q¥Jng fplTpwing initfa£i@s under this gqr gram!

o Targea to cocer 1Z,W UTTage¥ in be next S years: Axis Bank plans to cover 8,500 villages Ft
financlaT Inclusion by March 2Q II and stake It up to T2, viTlagas in fiva years tiMe. I I iS looking at opgnl
rig t8• lakh no•Fr Ill accounts. fis. 40 Cr. oF deposits, and fis. i0 Cr. oF advances. The z8•Tak h

account would Include 12• lakh accounts that They have already opaned for governmen\•sponsored
scheme. The bank Is Ioo4ting at Royal lowest delivery models such as smart card, mobile banking and
point of TranS.aCtio n devlce.

59
r be up wbh JanaIaMsfifn\ facTa\ Nw •es la tap urMan paa To tap unbanked population in urban
areas, sxis Banl‹ has tied up wlth a Bangalore-based microfinance Institution, JanaTakshmi Social
Services. JanaTakshm/ will use its ctlent base to provide banklng services of A Xis Bank and will
work as business correspondent to sell other products of the Bank. This service would be spread
from Bangalore to 80 orher Citie-s In the near future.
› Esau Cth Idea la test a MranchTass Banking godeT: /u'i‹s Bank has signed a Ntemorandom of
Understandlng with Idea Cellular ro test a ’Branchlesa Banking' model through a mobile
enabled remItzance pilot. Idea wITt act as a ’Boslness Correspondent’ oF Axis Bank to provlde an
entlre range of F nanciaT pyodutts and services oFfe red by the Bank, through the mobile operato€5
retail WtTets. Idea's network will help A¥? Bank gain access zo wldespread dlstri6ution maCh‹ and a
Iaw•cost defiWry Channel For offering flnanclal products and services. based on the Mobile
platform. On the other hand, Idea can oFfer vaIue•added se+NicGs \o its Customers by
ofFaring finantiaT produM5 and services.
Wm is stJTT a qoesflan mark on vlaMlThy af Plnanclal IMusbsn Program which pflmartly tayets
the Tow•lncame group. his leaves Ilie scape of h@ ma@ns under this program. keener, tha
InlbatWe ie expected la help Tn economic MeueTop and Mnce l¥ mpected to be fullIn
the long-term.

DWersffiad into non•bankIng flnanc!aT seMce¥'

Axis Bank has *tarted non-bank inB financial services to carry out invesFment and Iendi8B ñdrvities
with a focus on InfrastruU ure and other aUiviTles. Ic had five wholtv—owned subsidiaries.
¥. Axle Securttfes and 5aTes Ltd. - co market credit cards , retail asset pnoduUs ana online trading

Z. AxU Private EquTg Ltd - ‹o manage equiry inyestmen s & provide venture capital io support

1. wb rrwtee services '+ - to engage in truateeshiP aEFiyities

a. W Asset Management Companies Ltd• - ‹o carry On T h'e abiyitTe€ pf managing mutual £und

5. NTa Mutual Fund Trustee Md. — to act as the trustee for the mutual fund business
Acaufsition o£ Enam's investment b'amine business expected to £IIT the cao in their oortfoTia•

/ujiB 8ank ha s acquired Enam's investment banking and institutional brok ing businesses for R.B Z,064
Cr. in a stock-swa p deal. Purwan\ to the scheme and in 6onsldera t‹on for the proposed De me
rge r. f- narrj sharefielders will receive 5.7 shares of AX iB ga p k Apr every 1 share held in Fnam: \
ranslating into an approximatehr 3.37% sfiarefiolding in Axis Bank. While the acquis'Tio n appears ro
be at a slJgfit premium, it wiih be ip Axj5 8ank Titl a keY g,np in portfolio, increa5e ice- based income
and being s\gnifican t long-term benefits. Also, as These bu5inesws are prqfit-makipg highest
margins in the industry, they will <ontribu\e to Axis Bank's proTirs and will be earnings arcretive.
SWOT ANALYSIS OF AXIS BANK

OPPORTUNITIES: THREATS:

Growing Indian banking sectors. Advent of MNC banks.

People are becoming more Foreign banks
service oriented. Government banks
In the global market. Future market trends.
Dissatisfied customers.
aj Low e•posvre in hlgh-mar@n rerall ten¥i•g
M{ Bend IJce«se weukl hamper benla' yrsW• fiIIâ providlng bankirq license Ie selected
NBFCS frem zozz. Thisweuld Increase competltlon amons banks which m>dd cersequendy
hampers trek

c)n8t,In 8anron z0to helit In rnumbaL has Inillcated that Indbn 8anlashocld operate ac lower
\cisIn,b IIne wf0i glabd sta‹taaa They should detrease lending rate and Increase savings rate ‹a
held In achieving double ditrt economic erowth. xei may also increau car•ei Adeauaw natio

dl ss the banks be mainly 8na•cal usetc they have to mmage sewral ud‹c such as
aeuit new market risk, Iiqui&ty rlsk, country râketc No, banking bufiness. aha whole, Is
aid+•red as ridq/ trusTness.

fzaguendy changes monetary licles My chenglng CgR. rapo rate, ra¥erse rapo rata etc. to matntatn
sta6IIIty In the economy. Ic increases uncertalny Tn the bgnklng sector.
c<naa+›irg ‹hsseo«s e+sale ‹let ssu eank nas axeaiiua‹s ariuafi» w wu»x ip » ‹ ›a
‹aosnt s<‹i› sit n of zns‹n, aa w axpe<t ‹+<t tha ip-tern› i«u‹re r•›•r• • otxas e«a ciii
 CHAPTER IV

CONCLUSION AND RECOMMENDATION

So, is it an investment-worthv Bank7

The economy is expected to grow roughly by 5 7% in the next 5 years.

The banking sector is poised to grow in line yyith the growth of the
economy. Considering the bank's large size and its strengths, we can expect
this economic growth to have a positive impact on Axis Bank's growth.

Yes, Axis Bank is in Investment worthy bank, 6ot nn/v •t tfte x/oht
price Currently, it is trading at a price of Rs 13D4.65. But, does this price
offer an aLtraCti ve discount to its ri8ht value (MRPI or is it over-priced? It is
always best to invest at an attractive discount to its MRP, to get maximum
returns at minimum risk. Become a member of MoneyWorks4me.com to
know its sensible buy price and hence take the right action for this company.
Coactosioa & Reco›ameadatiaa

Axis Bank is one of the few clean (In terms of asset book), rapldly
growing, profitable, & competitive private-sector banks in India; thus it
wilt be a ma|or beneficmry of the favorable banking environment. The Indian
banking se‹;tor Is jn a sweet spot: consumer and corporate fending \s strong,
asset quality is Improving and fee-income opportunhies are growing. We expect
this favorable environment to continue in the medlum term but recognize that a
key challenge for banks will be funding groMh. looking at Its profile, I
believe Axis Bank stends to gain disproportionately from existing
opportunities in the sector. The bank has strong technology & products, an
expanding dTstrlbutlon franchise, adequate scale, a strong service culture,
and management enterprlse •features that sheuld help it stay ahead of the
dominant government banks to win market share.

Private players such as Axis Bank that offer a multhude ef delivery channels
and have en integrated technology plaNorm could potentially achieve
comparable dfstrtbutlon reach In the top 200 ddes to government danks
wfth substantially fewer branches. With a presence Tn the top 150 cities, I
think Axis Bank is very well positioned to rapidly reap the benefits of the
expanded reach by scaling up Ics retail foray.

Moreover, earnings CAGR is IiLe$ to be stronger than the larger prlvate peers as
It
begins to benefit from the dlstrtbutlon expansion.
 BIBMOGRAPHY

The following books and websites have been consuked for the

preparation of this project.

Philip Kotler’s Marketing Management. Tweltth edition

Journal:

Business & Economics (september/October)

Web sites:

www.google.co.in

www.axisbank.com

www.sfidworId.com
Annex: Glossary

Bank guarantee is a promIss by a bank on behaTF oF ks customer to a rhira pany to pay an

amount speclfled in the guarantee deed In oak the customer FaITa to pe4orm the obllgatlon as
stipulated \n the

Banklng Ombudsman Is an Independent dhpute resoluzfon auzhorlty sat up by Reserve Bank of to

deal wlth dfiputos been the bank and indlvlduaf / smaTT bu¥lnesses.

BhTs as nnancIaT negorlable Instruments such as ills of Exchange or Promlssory Notes. 8IfI of
Exchange Is Issued by' o seller co hls buyer dlfectlng htm la make payment for the goods
suppfled / serv\zes rendered. 8ITf in the form oF a promissory note Is Issued by a buyer to fiIs
saT&r undertaking to make payment For the goods mcelved / seMce rendered.

In case of dlszoundng of e b\IT, a bank buys a bITI {t.e. ITI of Exchange or P+omlssory Note) beFore ic
Is due and credits the value of the bill afier dlscount charges to the customer’s account. The
wansactlon is practlcally an advance agalnst the securlry of che aiii ana the discount represents
che Tnzerst on the advance from the date of purchase of the bITT until it is due for payment. Only
usance b1TIs are dlscounted.

Card Is a general term for any plastic car0, whlch a customer ‹nay ufie to pay for goods and
servlces ar te wlthdraw cash. In chls Code, It includes ATM / Deblc / Credlc Cards.

68
cesh credn / overdrefr

Cash cradR/ overdraft Is o form of credit facillry In which a barer \s seWoned a pre-ananged
Ilmlt wlth che freedom co borrow as much money as he requlres. In case of flow of cfad\z to the
account, he can wlthdraw afrash subject to the Ilmlt sancfioned. As such, the limit fortes as a
ravoTv\ng line of cred\r. Bank charges Interest on the outswnding balances.

cmh

Cash Toss mean ver losses minus depreciation.

Cheque CoTlectloo Pooley refers O the policy followed by a bank In respect of varéus focal
and ouutation cheques and inMruments deposited with the ttank for credit to an account. The
policy, inter aTIa, deals with

Ci«xtuc purchac mjucsls.

• Time Marne fioz credit oPchequea
• Payment a £ in\crcs\ n eBsc aF dcl¥y in collection aI vhogucs
• Tnsuznt credit of local and outelotion cheques
Cheque insirum nos lest in ininsii

Collateral are abets pledge / hYsothecated / mengaeed bya borrower as a security for a oedit facility.
In the event of the borrower delauhdng on the loan, the lender Oenh can clalm thee assets in Ileu o/ the

financial Tosses \m rred by them (the ctis¥omors) due to the acts oF omlssJon or comm lesion on the part

69
credit faclTlties from the bank may be in the form oF a to loan ar In the form of oveAmft or
cash credit, that is extended by a bank to us customer for a specified poriad and he ia charged
Interest on the

Credlt reference agency means a credlt Information company formed and re@stered under Lhe
Cornpanles Act, I956 thac has beeo granted a Certlflcace of Reglstratlon under the Credit Information
Cornpanles {Regulatla) A t, 2005.

A Arm of demand deposlt therefrom withdrawals are allowed any number of times depending
upon tfie balance In the account or up zo a partW\ar agreed amount.

An MSE or its authorGed representative who has an account wlth a bank or who avails of
other products / serves from a bank.

A Deceased account is a deposit account in whlch case either the single account holder has
deceased or ln case of joint accounts one or more ofplnt account home has/ have deceased.

Damat acaounts

A Oemat account refers to demaTerlaTlzed eccoqnt and Is an account in whfch the stodcs of InvesDrs
are fl'eTd In electronic lorry.

• “Euvings dcposiis" rnccns a form of demand dcpusil which is subject \o rcstncTioris

as io tGc number of wiihdrewals 4s also the etnounis oF withdrawals ncrrniticd by
ihc I3ank during any specified perind,
• ’Ten deposit” moans z dvjxsit recciv‹xi by ice Ranlt tor a fixctl pcrioti withdraw shh
only oficr the expiry of the fixed period and includes deposits such as Recurring / Double
 Bcn»i\ Deposits / sort Dcposiis Fixed Deposits /MonthIy T ncornc Ccnificolc
/ uarterIy Ineon\c Ccnificmc etc.
• ”Notice Deposit" means Icrm deposit for specific period but withdraw ebJc on giving eI
lcssl or complete banking dogs nctice,

£lecounic Oeafirg system

The ETertronic Clearing System {ECS) is an online transmission system which permits the electronic
transmlsUon ef payment information by the bend / branches to the Automated Clearlng House f
BI
vfa a communfcatla neMDrk.

Equity means a part of capital OF a corporate en\iry which is represented by the shares of tbe
company whether In physical or In dematerlaflzed nrm

Government bond means a secudd, crea •d and aswd, br The Central or Star Government for raising
a publcloan.

s letter of credk is a document issued or a bank, such usually provides an irre•ocabie vndertaLlng lor
pament to a beneñciary against submissmn of documents as stated in thie Letter of Credit.
Mail is a lerter in a physical or elect+onic form.

Merchant services generally refer to merchant accovns allowed to trading and seace
ntat4ishment for acceptance of wymeno through credit / debit cards. be cards may be accepted
owrthe cannier Hregh card TeminaTs i.e. Point of Male (POS) machines or over Forte or
through internet.

Micro and small Enterprises are those enhrprises engaged in manufacturing or rendering

seryires. A micro enzerprlse Is defined as:

An eMerprise engaged in the manufanure or production of goods peNalning to arry Industry where
tbe Investment In plant and machinery dons not eaceed Rs. is lakh.

Ao enuzrgrlse engaged \n renderlng servlets where Irrvestmenz In equtpmenz doas not meed fis. 10

A small enterprise Is deNne0 as:

U entergnse engaged in manufacture or producbon of goods pertalning to arry Industry where the
InvesWent In plant and machinery is more than Rs 25 lakh but does not exceed Rs. 5 crore.

in enterprise engaged in renderlng services a'here investment 1n equipment 1s more than Re 10

Skis but does not exceed Bs. 2 more.

Net worth means sum of Capital and firee reserves minus accumulated losses.

72
The xml nation facility enables the bank to . maMe payment to the nominee of a deceased
dnqos@r, of rfie amount standl ng to the credlt of the depositor, Saturn to the nominee, the
anlctes ien by a deceased pemn \n the bank's safe cuc¥ody, reTeaw @ the nomlnee of the hlrar,

the antents of a safer locker, i• lv e•ent of the death of the hirer.

Non-fund based facilltles are sucfi facII\0es extended h'y banks wfilch do not Involve outgo of funds
from the bank wfien the customer avalt¥ che faclllcles but may at a Water date cystaTlize Into flnandal
I/abITIty \F tfie customer faITy co honor the commltrnent made by availing these facifltfis. Non•fund
based faclllties are generally extended in be form of0ank Guarantees Acceptances and Lenen of
CredTz.

A Noo•Performlng Asset (NPA) Ts a loan or an advance there

Interest and / or Installment of principal remain overdue far a pe ad of more than 9p days in respect of

The account Wmalns ’out of order \n aspect of an Overdraft /Cash CredTc {OD/CC).

¥ge bill rerriain$ Overdue for a ncriod of r«ore than 9d dare in the ca • of bills e•rcha$gd Mr
diScoun¥ed,

An organIaat/on whlch collects payment From a customers account In Tlne wlth

customers Instructions.

A selection of personal fans and TnformatlDD [In an order whlch the customer knows],which
may be used for Identl +catIon when using account.

A cheque, whfzh has not Meen pald because the date wrltten on the cheque is of a date exceedlng
sly months From the time of its presenNt\D0.
The Pemanent Account Num0er is an all India unique Number hwirig ten alphanumeric Characters
aTlotTed tty the Income Tay Departmwt, Goyernmem of India. Tt is issued In the form of a
laminated carg. It is pemanent and ITI not Range with change of address of the •••••••e or change
of Acsessin$

x word or members qr a combination or an a•°••• code, whlcfi the customer has ch0sen, D allow
them to use a phone or Internet banking service. R Is also used for identification.

Payments and Settlement Systems mean financial system creating the mean for t ansferring money
between suppTlers and user OF Funds usually by exchanging debits or credlt among financial instltvtlor s.

A conndentIaI number, use of which along shh a card allows customers to pay for artlcTes/
seMces, wIthdra+ cash and use other eTectronlc ur•lces offered by who Mand.

Reposczsflon Is the process by whlch a eredItor whh a loan secured on house or goods (ay car)
takes possession of the security, \F the debar does not regay as per the teas of the loan
agraernerru

nehaS8ltatien Ped‹sye

RehaMllTtatlon package ls the package drawn for the rehabIT\ stlon of a slew unit. The package has to
h'e draw \n accordance with RBI szlputattons and It usually conslsts of

Working Capiuzl with rcTazotion in the rate of interest in terms of reguiaToy guidcTi
rinds fnicrcsl Term Losn
Working Capiuz1 Term Loan
Two Loan
v. Contingency Lean Assisoncr

74
Represem assets used as support nr a loan or other ItabiTlty.

t. In rcsr›cct oF smell and micro rvicv ctttemriscs, serY ccs fcr to *rrutll road md
watch Wneport opcrauara. anyan business, profcsaionaT and seT I-employ persons,

ii, Smiccs n•ndcrod by My bonLs include vui9us fi¥cilitics like wmitusnce {iasue of
DDs, MTs, T"Fs, etc.), zcceipl and parent oF cash, exchange o£notcs and foreign

III unit mfers to a unit those account has ramalned subswndard for more than ex months or
there bas been eroslon In net worth due to accumulated cab toss to th eatent of of the net
wash d•rIng the \ revJo•s accounting year and the ••it has 6een In o>mmerciaI rrodvct ror at ieast
‹ •o years.

Tariff schedule

The barges Tevled by a h'ank on the products.and services offered by ic to Its customer

unoal8 cheave

This Is a chnque, whlch b returned ’unp»Id' [bounced} by tfie bank.

 QUESTIONNAIRE

2.
Femlc

b) Married

4.
a) 1s-7Qyn

e) 3 I- 40 d) 41-TO yn
yrs ej >50
yrs

5.
•l Government
cj Business

6. AMNUAL TMCOME: by Between 2-3 lacs

o) U p in 2 Ines d) Above 5 lacs
e) 3•5 lacs
7. I f g ivc n an opt ion, ah ich ban k wi 11 yo u pre fc r to d ca1 wit h as s c us iom c r?
ay Ax is Bank 6) fIDFC Bank c)SBt d) Offer

8. In ter rms of saving bo nk account opening, which bank would you pre her?
e) Ax is Bnnk b) HDFC Dunk c)5BI d) Dther

IL Wfiat average MaTwce account servlets you usually avail Tom yottr exMlng banks

!2. Which Bsnk's ATM you use hoc mest For cash withdrawal’'
a) Axis Bank b) HDFC Bank c) S BI d \ Other

13. Which is the most cusiomer friendly Bank in rems of charge us per you?
a; zuv sari st oDrc aa»k <t ski at ono
M. Are all tbe Bank Informed to you at the Anne ef Savlng Bank Account opening

!5. If you fnve la do an invcsttuenf, wh ch Bank would you consull For Putlfolio

b) HDFC Bank c) 8Bf 0) Other

aJ Axis Bark
Ltd.
b) FIDFC
Bmk cj SB I
d) ICICI [)
e) PNB