A

PROJECT REPORT
ON
“Analysis of financial Service at Axis Bank”
SUBMITTED TO:

In partial fulfillment of the

Requirement for award of the degree of
MASTER OF BUSINESS ADMINISTRATION (M.B.A.)

Dr. A.P.J Abdul Kalam Technical University, Lucknow

Sem.

(SESSION: 2021-23)

Under the guidance of : Submitted by:

Miss. Aastha Singhal Mr. Manisha
MBA 3
Roll No. 2200850700040

SD COLLEGE OF MANAGEMENT STUDIES

MUZAFFARNAGAR
 PREFACE
Using a new pattern based on proper integration of formal teaching and actual
practice the M.B.A. program of Dr. A.P.J.A.K.T.U, Lucknow has it course for six weeks
industrial training, after the second semester, so as the students could begin to have the
feeling of business environment right in the beginning. Practical training constitutes an
integral part of management studies. Training gives an opportunity to the students to expose
themselves to the industrial environment, which is quite different from the classroom
teaching. The practical knowledge is an important suffix to the theoretical knowledge. One
cannot rely merely upon theoretical knowledge. Is has to be coupled with practical for it to be
fruitful. The training also enables the management students to themselves see the working
conditions under which they have to work in the future.
After Liberalization of Indian economy sense is changed because of Multi National
Companies continuously coming with their technical expertise and improved management
concepts. Industrial activity in India has become a thing to watch and I really wanted to be a
part of it and it is essential for me being a finance student.

I consider myself lucky to get my summer training in AXIS BANK

MUZAFFARNAGAR. I underwent six weeks of training. It really helped me to get a
practical insight into the actual business environment and provide me an opportunity to make
my Financial Management concepts more clear. The advantage of this sort of integration
which promotes guided adjustment to corporate culture, functional, social and other norms
with formal teaching are:

 To bridge the gap between theory and practice

 To install feeling of belongingness and acceptance
 To cultivate proper temperament & to generate much morale
 To help students identify their strong & weak points in the following & appreciating
organization activities
 To acquaints students with job performance standards I believe that this
knowledgeable endeavor of mine has prepared me slowly but surely for taking up new
challenging opportunities in future.

2
 ACKNOWLEDGEMENT
No task is single man’s effort. Any job in this world however trivial or tough cannot
be accomplished without the assistance of others. An assignment puts the knowledge and
experience of an individual to litmus test. There is always a sense of gratitude that one likes it
express towards the persons who helped to change an effort in a success. The opportunity to
express my indebtedness to people who have helped me to accomplish this task.
I deem it a proud privilege to extend my greatest sense of gratitude to my guide MISS
SONIA MITTAL (ASSISTANT MANAGER, AXIS BANK MUZAFFARNAGAR) for
the keen interest, inspiring guidance, continuous encouragement, valuable suggestions and
constructive criticism throughout the pursuance of this report.
My sincere thanks are due to my MR. GOURAV SHARMA (BRANCH
MANAGER) for their valuable support in helping me to gain this opportunity of being
associated with an organization of such esteem.
I am thankful to Principal sir, Dr. ALOK KUMAR GUPTA, for granting me the
permission to undertake the study. I would like to convey thanks to Miss. Shakti Kaushik
for ready assistance, keen interest and valuable suggestions.
Last but not least it would be unfair if I don’t extend my indebtedness to my parents
and all my friends for their active cooperation which was of great help during the course of
my training project.

3
 DECLARATION

I declare that I Shubham, student of MBA, S. D. College of Management Studies,

hereby declare that the report on summer training and project work entitled CREDIT
APPRAISAL is the result of my own and has been carried under supervision of Miss.
Shakti Kaushik.

This submitted work is done solely by me and to the best of my knowledge; no such
work has been submitted by any other person for the award of post graduation
degree or diploma.

I also declare that all the information collected from various secondary sources has
been duly acknowledged in the project report.

4
 CONTENTS

Preface
Acknowledgement
Declaration
Introduction of Project

Objectives of the Study

Introduction of Company

Research Methodology

Scope of the Study

Theoretical framework

Data Analysis & Finding

Finding

Recommendations

Conclusion

Limitations

Bibliography

5
 EXECUTIVE SUMMARY

“Undertake something is difficult,

It will do you good,
Unless you try to do something
Beyond what you have already mastered
You will never grow”.
RONALDE. OSBORN

I did my training in AXIS BANK MUZAFFARNAGAR.

The concept of this project is to check whether AXIS BANK is performing well year after
year or lacking in performance. The performance can be evaluated by doing Financial
Analysis of Financial Statements of Bank. The purpose of this project is to evaluate the
performance of AXIS BANK. It primarily aims at learning the various factors that can help I
evaluation process. I have tried to find out the reasons or ground where it is lacking. I have
also tried to find out the areas of improvement.

In order to do financial analysis of co. the various tools like RATIO ANALYSIS,
COMPARATIVE FINANCIAL STATEMENT AND TREND PERCENTAGES have
been used. In statistical tools, I’ve used CORRELATION, TIME SERIES ANALSIS
(TREND VALUES) .In Hypothesis testing, I’ve used ANOVA TEST. The project also
includes objective of study, Research Methodology, Analysis and Interpretation, findings
recommendations limitation of study conclusion bibliography and annexure.

6
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is commercial
banking & central banking.
Banking Means "Accepting Deposits for the purpose of lending or Investment of
deposits of money from the public, repayable on demand or otherwise and withdraw by
cheque, draft or otherwise."
-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." Infact this is the function which the bank
performed when banking originated.
"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."
-By H.Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.
-By Findlay Sheras

Thus

A Bank :

 Accept deposits of money from public,

 Pays interest on money deposited with it.
 Lends or invests money
 Repays the amount on demand,
 Allow the money deposited to be with drawn by cheque or draft.

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ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchi bancheri"
According to another viewpoint banking is derived from German word "Branck" which mean
heap or mound. In England, the issue of paper money by the government was referred to as a
raising a bank.
ORIGIN OF BANKING :

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking was
developed as it provides the safer place to store the money. This safe place ultimately evolved
in to financial institutions that accepts deposits and make loans i.e., modern commercial
banks.

8
 BANKING SYSTEM IN INDIA

WHAT IS BANKING?

There is no unanimity among the economists about the origin of the word “BANKIGN”. The
word “BANK” is itself derived from the Greek word“ BANQUE” i.e. a bench. The German
word “BANC” means a joint stock firm.
In modern times, commercial banki./I ng occupies quite an important place in the framework
of every economy because of the continuing challenge it presents to those who are
responsible for managing the affairs of the nation’s bank’s and to those who observe and
study their performance.

HISTORY OF WORD BANKING

The New Testament mentions about the activities of the money changes in the temples of
Jerusalem. In ancient Greece, around 2000 B.C. the famous temples of Ephesus, Delphi and
Olympia were used as “depositories for people” surplus funds and these temples were the
centers of the money landing transactions. Traces of credit by compensation and by transfer
orders are found in Assyria, Phoenicia and Egypt before the system attained full development
in Greece and Rome.

In India, the ancient Hindu scriptures refer to the money lending activities in the Vedic period
in India during the Ramayana and Mahabharata eras, banking was carried on by the members
of the vaishya community.

Manu, the great lawgiver of the time, speaks of the earning of interest as business of
Vaishyas. The banker in the Smriti period performed most of those functions which bank
performs in modern times, such as the accepting of deposits granting secuted and unsecured
loans, acting as their costomer’s bailee, granting loans to kings in times of grave crises, acting
and banker to the state and issuing and managing the currency of the country. Outside india,
the races of ‘rudimentary banking’ are found in the Chaldean, Egyptian and Phoenician
history.

9
EVOLUTION OF COMMERCIAL BANKING
A public enterprise, banking, as we know it today, mode its first beginning around the middle
of the twelfth century in ltaly. The bank of Venice (1157) was the fist public banking
institution. Following its establishment, were established Bank of Barcelona (1407). The
famous Bank of Amsterdam was founded in 1609. It was as popular as Bank of England now.

Not with standing the establishment of the Bank of England (1694), the development of
modern commercial banking institutions has to wait for another centuty and four decades
until the passage of the “BANKING ACT, 1833” which provided for the establishment of the
joint Stock Banks. It was the first banking regulation act introduced by the state.
COMMERCIAL BANKING IN INDIA

The “Calcutta Bengal Bank (1838)” was the first bank of india which was renamed as
Presidency Bank later on. It was managed by the English. Now it is renamed as “State bank
of india”.

The first of limited liability managed by Indians was Oudh Commercial Bank founded in
1881. S ubsequently, the Punjab National Bank was established in 1894. Swadeshi
movement, which began in 1906, encouraged the formation of a number of commercial
banks. But banking crisis during 19136-1917 and failure of 588 banks in various states during
the decade ending in 1949 underlined the need for regulating and controlling commercial
banks. The Banking Companies (Inspection Ordinance) was issued in January 1946. The
Banking Companies (Restriction of Branches) Act was passed in February 1949 which was
subsequently amended to read Bnking Regulation Act.

 The RESERVE BANK OF INDIA was established under RBI Act, 1934 and
nationalized on 01/01/1949.
 STATE BANK OF INDIA is India’s biggest bank and the largest bank in the world
by the number of branches ( more than 68000 branches in India and overseas).
 As per a report of December 2001 in India consists of 294 are in public sector of
which 196 are reginal rural banks.
 At end of June,1969 deposits of these banks aggregated Rs. 4,646 crore. In December
2001, this had increased to Rs. 882,373 crores.

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  Sector-had operation overseas with 92 branches (including 55 offshore units), 4 joint
ventures and 12 subsidiaries and 14 representative offices.
 AXIS is the third largest bank of India after State Bank of India and ICICI and the
second largest amongst the private banks.

Banking in India has its origin as early as Vedic period. It is believed that the transition from
money lending to banking must have occurred even before Manu, the great Hindu Jurists who
has devoted a section of his work to deposit and advances and laid down rules relating to the
rates of interest. During the mogul period the indigenous bankers played a very important
role in lending money and financing foreign trade and commerce. During the days old the Est
India company, it was the turn of the agency houses to carry on the banking business. The
General Bank of india was the first joint stock bank to be established in the yeast 1786.

The others which followed were the bank of Hindustan and Bengal bank. The bank of
Hindustan is reported to have continued till 1906 while the other two failed in the mean time,
in the first half of the 19th century the East india Company established three banks; the bank
of Bengal in 1809, the Bank of Bombay in 1840 and the Bank of india in 1843. These three
banks area also known as Presidency Banks were independent unit and functioning well.
Indian Bank : 8 from the public sector and 1 from private amalgamated in 1920 and a new
bank the Imperial Bank of India was established on 27th January 1921 with the passing of the
State bank of india act 1955 the undertaking of the Imperial Bank of India was taken over by
the newly constituted State Bank of India. The Reserve Bank which is the central bank was
created in 1935 by passing Reserve Bank of India Act 1934. In the make of the swadeshi
movement, a number of banks with India management were established in the country
namely, Punjab National Bank Ltd. The Central Bank of India on July 19, 1969. 14 major
banks of the county were nationalized and in 15th April 1980. Six more commercial private
sector banks were also taken over by the government. Today the commercial banking system
in India may be distinguished into:

11
 1. PUBLIC SECTOR BANKS:

 State Bank of India and its associate banks called the State Bank Group.

 20 Nationalized Banks.

 Regional Rural Banks mainly sponsored by Public Sector Banks.

II. PRIVATE SECTORS BANKS:

 Old generation private banks.
 New generation private banks.
 Foreign banks in India.
 Schedule co-operative banks.
 Non Schedule banks.

III. CO-OPERATIVE SECTORS:

The Cooperative Banking Sectors has been developed in the country to the supplement the
village money lender. The Cooperative Banking Sector in India is divided into the following
components:

 State Co-Operative Banks.

 Central Co-Operative Banks.
 Primary Agriculture Banks.
 Land Development Banks.
 Urban Co-Operative Banks.
 Primary Agriculture Development banks.
 Primary Land Development Banks.
 State Land Development Banks.

IV. DEVELOPMENT BANKS:

 Industrial Financial Corporation of India (IFCI).

 Industrial Development bank of India (IDBI).

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  Industrial Credit and investment Corporation of India (ICICI).
 Industrial Investment Bank of India.
 Small Industrial Development Bank of India (SIDBI).
 SCICI Ltd.

 National bank for Agriculture and Rural Development (NABARD).

 Export Import Bank of India.

 National Housing Bank.

INDIAN BANKING INDUSTRY

The Indian Banking Industry, which is governed by the Banking Regulation Act of India
1949, can be broadly classified into two major categories, non-scheduled banks and schedule
banks. Schedule banks comprise commercial banks and co-operative banks. In term of
ownership, commercial banks can de further divided into nationalized banks, the State Bank
of India and its group banks, Regional Rural Banks and Private Banks, 9th old/new domestic
and foreign. These banks have over 60,000 branches spread across the country.

The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969
and resulted in the shift from class banking to mass banking. This in turn resulted in a
significant growth in the geographical coverage of banks. Every Bank had to earmark a
minimum percentage of their loan portfolio to sectors indentified as ‘priority sectors’ The
manufacturing sector also grew during the 1970 in the protected environs and the banking
sector was a critical source. The next wave of reforms saw the nationalization of six more
commercial banks in 1980. Since then the number of schedule commercial banks increased
four-fold and the number of bank branches increased eight-fold.

After the second phase of financial sector reforms and liberalization of the sectors in the
rarely nineties, the public sector banks found it extremely difficult to complete with the new
private sector banks and the guidelines permitting them were issued in January 1993. Eight
new private sector banks are presently in operation.
These banks due to their late start have access to latest technology, which is during the year
2000, the State Bank of India and its seven associated accounted for a 25% share in deposit
and 28.1%share in credit. The 20 nationalized banks accounted for 53.2% of the deposit and

13
47.5% of credit during the same period. The share of turn help them to save on manpower
costs and provide better services foreign banks (numbering 42), regional rural banks and
other schedule commercial banks accounted for 5.7%, 3.9% and 12.2% respectively in credit
during the year 2000.

CURRENT SCENARIO

The industry currently in a transition phase. On the one hand the PSBs (Public Sector Bank)
which are main stay of Indian Banking System, are in the process of shedding their flab in
terms of excessive manpower, excessive Non Performing Assets (NPAs) and excessive
governmental equity,while on the other hand Private SectorBanks are consolidating
themselves although merger and acquisitions.

PSBs which currently accounted for more than 78% of total banking industry assets are
saddled with NPAs (a mind boggling rs.830 billion in 2000), failing revenues from traditional
sources, lack of modern technology and massive work force while the new Private Sector
Banks are forging ahead and rewriting the traditional banking business model by way of their
sheer innovation and service.

The PSBs are of course currently working out challenging strategies even as 20% of their
massive employee strength has dwindled in the wake of successful Voluntary Retirement
Schemes (VRS). The private players however can’t match the PSBs great reach great size and
access to low cost deposits. Therefore one of the means for them to combat the PSBs has
been through the merger and acquisition route.
Over the last two years, the industry has witnessed several such instances. For instance, AXIS
etc, will stand the good, possible acquisition of PSU banks will definitely give them the much
needed scale of operations and access to lower cost of funds these banks will continue to be
the early technology adopters in the in- dustry, thus increasing their efficiencies. Also they
have been amongst the first movers in the lucrative insurance segment. Already, banks such
as ICICI bank and AXIS bank have forged alliances with prudential life and standard life
respectively. This is one segment that is likely to witness a greater deal of action in the future.

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A HISTORICAL PERSPECTIVE :

We can identify there distinct phases in the history of Indian banking:

1. Early phase from 1786-1969.
2. Nationalization of banks and up to 1991 prior to banking sector reforms.
3. New phase of Indian banking with the advent of financial banking. Banking in India
has its origin as early or Vedic period. It is believed that the transitions from many
lending to banking must have occurred even before Manu, the great Hindu furriest,
who has devoted a section of his work to deposit and advances and laid down rules
relating to the rate of interest. During the mogul period, the indigenious banker played
a very important role in lending money and financing foreign trade and commerce.
During the days of the East India Company it was the turn of agency house to carry
on the banking business. The General Bank of India was the first joint stock bank to
be established in the year 1786. The other which followed was the Bank of Hindustan
and Bengal Bank. The Bank of Hindustan is reported to have continued till 1906.
While other two failed in the meantime. In the first half of the 19th century the East
India Company established there banks, The bank of Bengal in 1809, the Bank of
Bombay in 1840 and the Bank of Bombay in1843. These three banks also known as
the Presidency banks were the independent units and functioned well. These three
banks were amalgamated in 1920 and new bank, the Imperial Bank of India was
established on 27th January, 1921.
With the passing of the State Bank of India Act in 1955 the undertaking of the
Imperial Bank of India was taken over by the newly constituted SBI. The Reserve Bank of
India (RBI) which is the Central bank was established in April, 1935 by passing Reserve
bank of India act 1935. The Central office of RBI is in Mumbai and it controls all the other
banks in the country.
In the wake of Swadeshi Movement, number of banks with the Indian management
were established in the country namely, Punjab National Bank Ltd., Bank of India Ltd., Bank
of Baroda Ltd., Canara Bank. Ltd. on 19th July 1969, 14 major banks of the country were
nationalized and on 15th April 1980, 6 more commercial private sector banks were taken
over by the government.

15
 FUNCTIONS OF BANKS

PRIMARY FUNCTIONS

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
 Discounting of bills of exchange
SECONDARY FUNCTIONS

 Agency functions
 Collection of cheques & Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.
UTILITY FUNCTIONS :

 Safe custody of customers valuable articles & securities.

 Underwriting facility
 Issuing of traveller's cheque letter of credit
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.

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 CLASSIFICATION ON BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

1. PUBLIC SECTOR BANK

Public sector banks are those banks which are owned by the Government. The Govt.
runs these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6
banks were also nationalized. Therefore in 1980 the number of nationalized bank 20.
But at present there are 9 banks are nationalized. All these banks are belonging to
public sector category. Welfare is their principle objective.

2. PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country
such as ICICI Bank, AXIS Bank etc. An individual has control over there banks in
preparation to the share of the banks held by him.
3. CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term &
medium term loans to there members. Co-operative banks are in every state in India.
Its branches at district level are known as the central co-operative bank. The central
co-operative bank in turn has its branches both in the urban & rural areas. Every state
co-operative bank is an apex bank which provides credit facilities to the central co-
operative bank. It mobilized financial resources from richer section of urban
population by accepting deposit and creating the credit like commercial bank and
borrowing from the money mkt. It also gets funds from RBI.

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ii ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve
bank Act. 1934.
1. SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the
second schedule of the reserve bank.
2. NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital
of these banks is less then Rs.5 lacs. The no. such bank is gradually tolling in India.
iii CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under :-

1. COMMERCIAL BANKS

The commercial banks generally extend short-term loans to businessmen & traders.
Since their deposits are for a short-period only. They cannot lend money for a long
period. These banks reform various types or agency job for their customers. These
banks are not in a position to grant long-term loans to industries because their deposits
are only for a short period. The majority of joint stock banks in India are commercial
banks which finance trade & commerce only.
2. SAVING BANKS

The principle function of these banks is to collect small saving across the country and
put them into productive use. These banks have shown marked development in
Germany & Japan. These banks are established in HAMBURG City of Germany in
1765. In India a department of post offices functions as a saving banks.
3. FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their
main function is to make international payments through purchase & sale of exchange
bills. As it well known, the exporters of a country prefer to receive the payments for
exports in their own currency. Thus these banks convert home currency into foreign

18
 currency and vice versa. It is on this account that these banks have to keep with
themselves stock of the currency of various countries. Along with that, they have to
open branches in foreign countries to carry on their business.
4. INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Some times, they even underwrite
the debentures & shares of big industrial concerns.
5. INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution
to the development of agricultural and industries before independence. Mahajans,
rural moneylenders have been the forerunner of these banks in India.
6. CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of
the country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it.
The central bank is also the higher monetary institution in the country charged with
the duty & responsibility of carrying out the monetary policy formulated by the
government. India's central bank known as the reserve bank of India was set up in
1935.
7. AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types.
Firstly the farmers require short term loans to buy seeds, fertilizers, ploughs and other
inputs. Secondly, the farmers require long-term loans to purchase land, to effect
permanent improvements on the land to buy equipment and to provide for irrigation
works. There are two types of agriculture banks.
1. Agriculture co-operative banks, and
2. Land mortgage banks. The farmer provide short-term credit, while the letter extend
long-term loans to the farmers.

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 PROFILE OF THE ORGANISATION
HOUSING DEVELOPMENT FINANCE CORPORATION

(AXIS BANK)

INTRODUCTION

The housing development finance corporation limited (AXIS) was amongst the first to
receive an"in-principle" approval from the reserve bank of India (RBI) to set up a
bank in the private sector, as part of RBI liberalization of Indian banking industry in
1994. The bank was in corporate in Aug. 1994 in the name of AXIS Bank Ltd. With
its registered office in Mumbai, India, AXIS Bank commenced operations as
scheduled commercial bank in January 1995.
PROMOTOR

AXIS is India's premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1997, the
corporation has maintained a consistent and healthy growth in its operations to remain
a market leader in mortgage. Its outstanding loan portfolio covers well over a million
dwelling units. AXIS has developed significant expertise in retail mortgage loans to
different market segments and also has a large corporate client base for its housing
related credit facilities. With its experience in the financial markets, a strong
franchise, AXIS was ideally positioned to promote a bank in the Indian environment.
BUSINESS FOCUS

AXIS bank's mission is to be a world class Indian bank. The bank has aim to build
sound customer franchises across district business so as to be the prefer provider of
banking services in the segment that the bank operates in and to achieve healthy
growth in profitability, consistent with the bank's risk appetite. The bank is committed
to maintain the highest level of ethical standards, professional integrity and regulatory
compliance. AXIS bank's business philosophy is based on four core values:
1. Operational Excellence
2. Customer Focus
3. Product Leadership
4. People.

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CAPITAL STRUCTURE

The authorized capital of AXIS bank is Rs. 45000 Lakhs. The issued, subscribed and
paid-up capital is divided into 836,46 lacks equity shares @ Rs.10/- each.
TIMES BANKS AMALGAMATION

In a mile stone transaction in Indian banking industry, Times bank limited (another
new private sector bank promoted by Bennett, Coleman & Co. times group) was
merged with AXIS bank ltd., effective February 26, 2000. As per the scheme of
amalgamation approved by the share holders of both banks and Reserve bank of India.

DISTRIBUTION NETWORK

AXIS bank has its Headqarters in Mumbai. The bank at present has an enviable
network of 535branches spread over 312 cities across the country. All branches are
linked on an online real time basis. Customer in 189 locations are also serviced
through phone banking. The banks expansion plans take into account the need to have
a presence in all major industrial and commercial centers where its corporate
customers are located as well as the need to build a strong retail customer base for
both deposits and loans products. Being a clearing settlement bank to various leading
stock exchanges, the bank has branches in centers where the NSE/BSE have a strong
and active member base.
The bank also have a network of 1323ATM's across there cities.
TECHNOLOGY

AXIS bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank's branches have connectivity
which enables the bank to offer speedy funds transfer facility to its customers. Multi
branch access is also provided to retail customers through the branch network and
automated teller machines (ATMs)
The bank has made substantial efforts and investments in acquiring the best
technology available internationally to build the infrastructure for a world class bank
has prioritized its engagement in technology and the internet as one of its key goals
and has already made significant progress in web enabling its core business. In each

21
 office its business, the Bank has succeeded in leveraging its market position, expertise
and technology to create a competitive advantage and build market share.
BUSINESS PROFILE

AXIS Bank caters to wide range of banking services covering both commercial and
investment banking on the wholesale side and transactional branch banking on the
retail side. The bank three key business areas
1. WHOLESALE BANKING SERVICES

The Bank's target is primary large blue-chip manufacturing companies in the Indian
corporate sector and to a lesser extent, emerging mid sized corporate. For these
corporate the Bank provides a wide range of commercial and transactional Banking
services including working capital finance trade services, transactional services, cash
management etc. The Bank is also a leading provider of structure solution which
combine cash management services with vendors and distributor finance for
facilitating superior supply chain management for its corporate customers. Based on
its superior product delivery service levels and strong customer orientation, the Bank
has made significant in roads into the Banking consortia of a number of leading India
corporate including Multinationals, Companies from the domestic business house and
prime public sector companies. It is recognized as a leading provider of cash
management and transactional Banking solutions to corporate customers, Mutual
Funds, Stock Exchange Members and Bank.
2. RETAIL BANKING SERVICES:

The objective of retail bank is to provide its target market customer a full range of
financial products and banking service, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class services and
delivered to the customers through the growing branch network as well as though
alternative delivery channels like ATMs, phone banking, net banking and mobile
banking. The AXIS bank preferred programs for high net worth individuals, the AXIS
bank plus and the investment advisory services program have been designed keeping
in mind heads of customers who seek distinct financial solutions information and
advice on various investment avenues. The also had a wide array of retail ban
products including auto loans, loans against marketable securities, personal loans and
loans for two wheelers. It is also a leading provider of depository service to retail

22
 customers offering customers the facility to hold their investments in electronic form.
AXIS Bank was the first bank in India to launch an international debit card in
association with VISA ( Visa election) and issue the master card Maestro debit card as
well. The debit card allows the use to directly debit his account at the point of
purchase at a merchant establishment, in India and overseas. The bank launch its
credit card in association with VISA in November 2002. The bank is also one of the
leading players in the "merchant acquiring" business with 26,400 point of sale (pos)
terminals for debit/credit cards acceptance at merchant establishments. The bank is
well positioned as a leader in various net based B2C opportunities including a wide
range of interest banking services for fixed deposit, loans, bill payments etc.
3. TREASURY OPERATIONS

Within this business the bank has three main product areas foreign exchange and
derivative, local currency, money market & debt securities and equities. With the
liberalization of the financial market in India, corporate need more sophisticated risk
management information advice and product structure. These and find pricing on
various treasury product are provided through the bank treasury team.
POLICIES OF AXIS BANK

1. POLICY REGARDING PROJECT APPRAISE:

The AXIS does not seem to have adopted any scheme of priorities. Its underhand
policies are assisting sound financially weak enterprises to those entering in non -
traditional industries. The corporation studies merits of a project from technical
financial economic point of view.

Of late, the corporation has decided to have a two-stage project appraisal under which
loans will be disbursed as demand loans during project implementation and will be
converted to commercial loans only at the time of production. It will introduce the
new loan clause giving if the right to increase the rate of interest whenever the RBI
hikes the base lending rate.

23
2. POLICY IN FORMS OF ASSISTANCE:

In order to improve the exportability of Indian products AXIS as made it a policy to

provide assistance to new as well as existing concern for technology up gradation,
modernization and balancing equipment. AXIS has now decided to a comprehensive
package of fund based and non fund based service to clients through a separate
investment banking companies. The Corporations has also decided to engage in
mutual fund business.

3. INTEREST RATE POLICIES:

Its adopted various rate policy offering its selected customer a variable rate of interest.
The interest rate is charged in the basis of certain % over corporation advance rate.

The variable is determined every quarter by the board of AXIS.

4. POLICIES ON SIZE OF ASSISTANCE :

The corporation has decided to set its exposure limit in any individual company and
business group below the ceiling stipulated by RBI of 25% and 50% respectively.

5. POLICY ON MATURITY PERIOD :

The corporation has adopted the policy of lending to its borrowers for 7-8 years maturity
while it used to borrow funds with 15-20 years maturity.

6. POLICY REGARDING MERCHANT BANKING :

The corporation has decided to strengthen its merchant banking activity to exploit the vast
emerging investment opportunities arising out of liberalization in pricing of issues of
capital by existing companies.

24
ROLE OF AXIS BANK

1.AS MERCHANT BANKER :

From this, AXIS is managing most of the larger issues both in domestic non resident
market. It has also been associated with the issue of public sector bonds by some large
organizations like Indian Petrochemical Limited, NTPC, MTNL. The corporation has
steadily comtinued to ezpand the capital market by concentrating its marketing efforts for
public issues beyond the main metro cities. The Merchant Banking division commenced
providing corporate consultancy services during 1986.

For the first time 1988-89 the Merchant Banking division commenced advisory services
on foreign currency Management and resources , overseas company flotation and
management \ organizational restructuring . It plays a key role in collaborating with other
institutions for setting up the over the counter market which has already started operating.
2.AS A TRUSTEE :

AXIS acts as a Trustee for debenture issues made by companies. Trustee services include
completion of legal documentation and security for the Debenture as well as giving the
requisite approvals on behalf of the Debenture-holder to the borrowing companies up to
March 31, 2002

2. INVESTOR SERVICES :
During 1993-94 the AXIS has started formally providing project advisory environment
the division provides assistance to the corporate sector in the preinvestment stage on
government policies and procedures, feasibility studies search for joint venture partners
and entire strategies.

3.AXIS AND COMMERCIAL BANK:

AXIS has set up in 1944 a commercial bank viz. AXIS Banking Corporation limited, in
order to provide comprehensive finding and non-finding facilities to its corporate clients.
The bank provides to the corporation the retail presence Required for raising resources
from the house hold sectors. The bank has been set as a 100 present subsidiary for
the present. With the enhancement of value to share holders equity as one of its prime
objective. When the bank comes up with its initial public offering, investors in AXIS
will stand to gain in several ways.

25
 PRODUCTS AND SERVICES OFFERED BY AXIS BANK

“A Product is considered as a bundle of satisfaction”.

According to George Fisk “A Product is cluster of psychological satisfaction”. It is also

defined as “a product is anything that can be offered to a market to satisfy the needs and
wants of the customers”. The offered includes the ten marketing entities as goods, services,
people, place, properties, events, organization, information and ideas.

“A Service is an activity or benefit that one party can offer to another which is
essentially intangible and does not result in the ownership of anything”.

According to Zeithmal and Bitner define as “deeds, processes and performances”. Here,
deeds are the actions of the service provider, processes are steps in the provision of service
and performance is the customer understanding of how the service has been delivered.

AXIS Bank is India’s premier commercial bank. Today, AXIS has presence in 300 cities
across Indian with more than 650 branches to bring you the best banking experience ever.

Every business requires efficient banking facilities to support its business activities. AXIS
Bank offers premium quality service, unfolding a wide array of class products. With our
technology leadership and service we are able to meet some of the most challenging financial
needs of clients. Some of our General Banking products like Savings Account, Current
Account, Fixed Deposit, Salary Account, Kid’s Advantage Account, Life Insurance, Various
types of Loans, Demat Services, etc. have a host features to suit the needs of different client
segments.

AXIS attempt to provide you world class products & services at a competitive price while
also offering technology to make your banking effortless.

The following are the different products and services offered by the AXIS Bank to satisfy the
wants and needs of the customers :

26
A) Savings Account.
Savings Regular Account
Saving Plus Account.
Saving Max Account
B) Current Account.
Current Regular Account.
Trade Current Account.
Plus Current Account.
Reimbursement Current Account
Premium Current Account.
C) Kid’s Advantage Account
D) Trust and Societies Account.
E) Family Savings Group.
F) Demat Account.
G) Fixed Deposits.
Regular Fixed Deposit.
Five Year Tax Saving Fixed Deposit.
H) Debit Card.
Easy Shop International Debit Card.
Easy Shop Women’s Advantage Debit Card.
Gold Debit Card.
I) Prepaid Card.
Forex Plus Card.
Gift Plus Card.
J) Direct Banking Channels.
Phone Banking.
Net Banking.
Mobile Banking.
Anywhere Banking.
K) Convenience Banking.
Bill Pay.
Insta Alert.
L) AXIS Standard Life Insurance.
M) Mudra Gold Bars.

27
N) AXIS Loans.
Home Loans.
Two Wheeler Loan.
Car Loan.
Commercial Vehicle Loan.
Firm Equipment Loan.
Agri Business Loan.
O) AXIS Bank ATM.
P) NRI Services.
Q) AXIS Bank Salary Account.

28
 DOCUMENTATION FOR RESIDENT INDIVIDUALS

To avail different facilities (i.e. various Products/Services) offered by AXIS Bank

certain formalities are required to be fulfilled in the form of documentation.

Documents for establishing “Proof of Identity” are as follows :

I. Passport (Not expired).

II. MAPIN Card (issued by NSDL)
III. PAN Card .
IV. Election/Voter’s Card – Subject to being accompanied by a self-signed cheque
drawn on Nationalized/Private Sector/Foreign Banks.
V. Photo ID Card issued by any of the following Organizations/Institution.
a. Central Government or any of its Ministries.
b. Statutory/Regulatory authorities.
c. State Government or any of its Ministries.
d. Public Sectors Undertaking (established under GOI or State Government).
e. State Government of J&k.*
f. Bar Council.
g. Senior Citizen Card issued by State/Central Government.
h. Government of India to persons of Indian Origin (PIO Card).
i. Defence Department/Ministry of Defence for Defence Personnel & their
dependents.
j. Public Financial Institution.

VI. Permanent Driving License (not expired) – subject to being accompanied by a self-
signed cheque drawn on Nationalized/Private Sector/Foreign Banks.
VII. Arms License issued by the State/Central Government of India (Containing
photograph of the applicant).
VIII. Pension Payment Card issued by State/Central Government of India with
photograph of the applicant.
IX. Ration Card containing IRIS scan along with photograph. *

29
 X. Photo credit Card (not expired) of primary holder (signature to match with AOD)
subject to being accompanied by a self-signed cheque drawn on Nationalized /Private
Sector/Foreign Banks.
XI. Banker’s Varification as per bank’s existing format subject to being accompanied by
a self-signed cheque drawn on Nationalized/Private Sectors/Foreign Banks.

* ID Card issued by the State Govt. of J&K is acceptable if they carry the connotation –
“Government of Jammu & Kashmir, Civil Secretariat, Srinagar/Jammu”.

* Currently issued only by AP State Government IRIS Scan – indicate that retina of the eye is
scanned which establishes the identity of the name mentioned in the card.

SAVINGS ACCOUNT

AXIS Bank with its wide network of branches and over thousands of ATMs to meet all
your banking needs provides the Saving Account for the general persons who can open
their account with a minimum balance of Rs. 5000/- only. The interest rate is good as
compare than the other financial institution. The AXIS Bank is one of the leading Banks
in their all products.

FEATURES AND BENEFITS

The facilities which are provided by the bank have been summarized in turn as follows :
 Ease of Opening – To open an Account one has to just call any branch and a
representative will come to your doorstep and take you through the formalities.
 Debit-cum-ATM Card.
 Money Multiplier Feature.
 Free Internet Banking Facility.
 Free Phone Banking.
 Free Anywhere Banking.

30
WHO CAN APPLY ?

 Resident individuals.
 Individuals below 18 years of age.
 Hindu undivided family.
 Trusts, Associations, Clubs and Associations.

CATEGORIES OF SAVING ACCOUNT

According to the ease and convenience of customers AXIS Bank has further classified
its Saving Account into three divisions.
1. SAVING REGULAR ACCOUNT
This is the crème product of AXIS Bank. Its minimum depository amount is Rs. 5,000
only. On the cost of this Bank provides many benefits and advantage.
FEATURES AND BENEFITS :
 An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.
 3 free cash transactions on SBI/Andhra Bank ATMs per month.
 Free Phone Banking, Mobile Banking and Net Banking.
 Free Insta Alert facility for lifetime of the account.
 Free payable-at-Per Cheque books.
 Free quarterly statement of accounts.
 Free E-mail Statement facility.
 Safe Deposit Lockers at branches.
 Free Pass Book facility available at home branches (individual).
 Sweep-In and Super Saver facility on your account.
 Personalized Cheques with your name printed on each cheque leaf for enhanced
security.
 Advantage of Bill Pay facility, instant solution to all frequent utility bill payments @
Rs. 25/- per bill per quarter.

AVERAGE QUARTERLY BALANCE(AQB) REQUIREMENT :

An AQB of,
 Rs. 5,000 at urban bank branches, AND
 Rs. 2,500 at rural bank branches, OR
A Fixed Deposit of, Rs 50,000 linked to a Zero Balance Saving Account.
AVERAGE QUARTERLY BALANCE (AQB) NON-MAINTENANCE CHARGES :

If AQB is not maintained Rs 750 will be charged per quarter from the account.

31
2. SAVING PLUS ACCOUNT

In this “plus” means customer are provided with some additional features of saving
regular. Its minimum depository amount is Rs. 10,000 only.

FEATURES AND BENEFITS :

 An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.

 2 free transactions on SBI/Andhra Bank ATMs per month.
 3 free transactions on any other banks ATMs per month.
 Free Payable-At-Per cheque book without any usage charge up to a limit of Rs.
50,000 per month.
 Free International Debit Card for all account holders, for life time of the account.
 Free Demand Drafts on AXIS Bank locations, up to a limit of Rs 25,000 per day.
 Free Bill Pay & Insta Alert facility for all account holders for life time of the account.
 Free National Electrical Funds Transfer facility, Net Banking, Phone Banking and
Mobile Banking.s
 25% off on the Locker Rental for the 1st year.
 Special relationship discount on purchase of Gold Bars.
 Free E-mail Statement facility.
 Free Pass Book facility available at home branches for account holders (individual).
 Inter City Banking and Multi-city Banking.

AVERAGE QUARTERLY BALANCE (AQB) REQUIREMENT :

An AQB OF, Rs. 10,000 at all bank branches, OR

A Fixed Deposit of, Rs. 50,000 linked to a Zero Balance Saving Account.

AVERAGE QUARTERLY BALANCE (AQB) NON-MAINTENANCE CHARGES :

If AQB IS,
 Between Rs. 5,000 to Rs. 10,000 then Rs. 750 will be charged, AND if
 Below Rs. 5,000 then Rs. 1,000 will be charged quarterly from a/c
3. SAVING MAX ACCOUNT

This account provides “maximum benefits” to its customers. Due to having this product
AXIS Bank occupies a special position in Private Banking Sector. For availing the facilities
of this account, customer has to deposit and maintain minimum amount of Rs. 25,000 only.

32
FEATURES AND BENEFITS :
 An Interest rate of 3.5% p.a. is to be paid at quarterly intervals.
 Free unlimited transactions at all AXIS Bank ATMs and any other Bank ATMs using
your AXIS Bank Debit Card.
 Free Gold Debit Card for Primary account holder, for the lifetime of the account.
Gold Debit Card for other account holder at Rs. 250 p.a.
 Free Woman’s Advantage/International Debit Card for all account holders, for
lifetime of the account.
 Free Payable-at-Per cheque book without any usage charges, up to a limit of Rs.
100,000 per month.
 Free Demand Drafts on AXIS Bank locations, up to a limit of Rs. 50,000 per day.
 Optional Sweep Out facility to transfer extra saving to a Fixed Deposit at the
threshold of Rs. 50,000 in account. The amount above Rs. 50,000 will automatically
be swept out in to fixed deposit with a minimum value of Rs. 25,000 for 1 year 1 day
period.
 Free Bill Pay and Insta Alert facility for all account holders for lifetime of the
account.
 Free Monthly Statement of Account.
 50% off on the Locker Rental for the 1st Year.
 Folio maintenance charges on Demat Account waived for the first year.
 Free Pass Book facility available at home branches for account holders (individual).
 Free E-mail Statement facility.
 Free National Electronic Fund Transfer facility, Net Banking, Phone Banking and
Mobile Banking.
 Self/Third Party Cash Deposit and Withdrawal at non-home branches, up to Rs.
50,000 per day is free and Rs. 2.90 will be charged per thousand on the amount
deposited above Rs. 50,000 limit.

AVERAGE QUARTERLY BALANCE (AQB) REQUIREMENT :

An AQB of,
 Rs. 25,000 at all bank branches, OR
 FD for Rs. 100,000 linked to a Zero Balance Saving Account.

33
 AVERAGE QUARTERLY BALANCE (AQB)
NON-MAINTENANCE CHARGES:

If AQB is,
 Between Rs. 10,000 to Rs. 25,000 then Rs. 1000 will be charged, and if
 Below Rs. 10,000 then Rs. 1,500 will be charged quarterly from a/c

34
CURRENT ACCOUNT
A Current Account is generally known as the day to day transaction which is mainly
the requirement of the Businessman for their day to day business. It may be defined
as:
 A running account supporting unlimited withdrawals and deposits.
 A Current account is meant for convenience and not to save money.

FEATURES AND BENEFITS

The following are the some facilities which are provided by the Bank in Current
Account:
 Unlimited Withdrawal and Deposit.
 Unlimited Cheque Book.
 Demand Drafts and Pay orders.
 Funds Transfer (Local or Anywhere)
 Collection of Cheques/Drafts.
 Statements, Advices, Daily Statement by E-mail.
 Cash Withdrawal and Cash Deposits.
 Call Center.
 Internet Banking.

WHO NEEDS A CURRENT ACCOUNT ?

Businessmen, Joint Stock Companies, Institutions, Public Authorities, Public
Corporations etc. Any business that has numerous banking transactions need a Current
Account.

ADDED FEATURES OF CURRENT ACCOUNT

 Multi-city Cheque payment facility at over 155 centers.

 Anywhere Banking facility.
 Doorstep Banking-Pick up and delivery of Currency/Cheque.
 Mobile Banking.

CATEGORIES OF CURRENT ACCOUNT

Current Accounts are mainly classified into 5 divisions.

35
1. CURRENT REGULAR ACCOUNT
A Current Account is ideal for carrying out day-to-day business transactions. With
AXIS Bank Regular Current Account, customer can access his account anytime
anywhere, pay using payable at per cheques or deposit cheque at any AXIS bank
branch. It also facilitates Free NEFT Transactions and Free RTGS Collections for
faster collections in your account. Regular Current Account requires you to maintain
any Average Quarterly Balance of only Rs. 10,000.
FEATURES AND BENEFITS :
 Free anywhere collections and payment within AXIS Bank branch network
(except Dahej), up to Rs. 25 lacs per month, incremental amount to be
charged@ Rs. 1.50 per Rs. 1,000 and minimum rs 25.
 Free NEFT Transactions.
 Free RTGS Collections. RTGS payment @ Rs. 100 per transaction.
 Inter-city account to accounts funds transfer between AXIS Bank accounts a a
nominal charge of Rs. 15 per transaction.
 Free Demand Drafts (DD) above Rs. 100,000. Demand Drafts above Rs.
50,000 up to 100,000 Rs. 25 and up Rs. 50,000 Rs. 40 can be issued from any
AXIS Bank branch.
 100 “At par” cheque leaves free per month.
 Register for Insta Alert service and receive updates on your account as and
when the select transaction happens- all this without visiting the branch or
ATM.
 Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking
to access your account.

2. TRADE CURRENT ACCOUNT

In today’s changing business requirements, you need to transfer funds across cities,
and time is of the essence. AXIS Bank Trade Current Account gives you the power of
inter-city banking with a single account.

36
From special cheques that get treated at per with local ones in an city where we have a
branch, to free account to account funds transfer between AXIS Bank account, to free
inter-city clearing of up to 50 lakhs per month, our priority services have become the
benchmark for banking efficiency.

Trade Account requires you to maintain an Average Quarterly Balance of Rs. 40,000.

FEATURES AND BENEFITS :

 Free account to account funds transfer between AXIS Bank accounts.
 Free RTGS/NEFT Transactions.
 Free up to 30 Demand Drafts (DD) per month and can be issued from any
AXIS Bank Branch.
 Free up to 30 Pay Orders (PO) per month and can be issued from any AXIS
Bank Branch.
 Free anywhere collections and payment within AXIS Bank Branch network
(except Dahej), UP TO Rs. 50 lacks per month.
 Convenience to withdraw and deposit cash at all our branches.
 200 “At Par” cheque leaves free per month.
 Register for Insta Alert Service and receive updates on your account as ad
when the select transaction happens- all this without visiting te branch or ATM.
 Enjoy facilities like 24-hour Phone Banking, Net Banking and Mobile Banking
that helps you check your balance and transaction details, find out the status of
your cheque or stop cheque payment.

37
3. PLUS CURRENT ACCOUNT
In today’s fast pace world, your business regularly requires you to recieive and send
funds to varies cities in the country. AXIS Bank Plus Current Account gives you the
power of inter-city banking with a single account and access to more then 316 cities.

From special cheques that get treated at per with local ones in any city where we have
a branch, faster collection of outstation cheques (payble at branch locations), free
account t account fund transfer wetween AXIS Bank accounts to Free inter-city
clearing of up to 100 lakhs per month, our priority service have become the
benchmark for banking efficiency.

Plus Current Account requires you to maintain an Average Quarterly Balanvce of Rs.
100,000.

FEATURES AND BENEFITS :

 Free account to account funds transfer between AXIS Bank accounts.
 Free payment and collection through RTGS.
 Free payment and collection using NEFT (through Net Banking).
 Free up to 50 Demand Drafts (DD) per month and can be issued from any
AXIS Bank Branch.
 Free anywhere collections and payment transactions (clearing) within AXIS
Bank Branch network (except Dahej), up to Rs. 100 lacs per month.
 Convenience to withdraw and deposit cash at al our branches.
 300 “At Par” service and receive updates on your account as and when the
select transaction happens – all this without visiting the branch or ATM .
 Enjoy facilities like 24 – hour Phone Banking, Net Banking and Moible
Banking that helps you check your balance and transaction details, find out the
status of your cheque or stop cheque payment.

38
4. REIMBURSEMENT CURRENT ACCOUNT

No more paperwork, no more receipts to keep of a hassle-free account that allows you
to deposit the reimbursement you receive from your company on monthly basis.

FEATURES AND BENEFITS :

 Easily distinguish between reimbursements and basic monthly salary.
 Choose from either your Salary Account or your Reimbursement Account
when withdrawing cash from AXIS Bank ATM’s.
 Utilize Phone Banking, Net Banking and Mobile Banking facilities.
 Receive half-yearly statements of all your reimbursements, thus doing away
with filing individual receipts.
 No need to maintain minimum balance (Zero Balance Account).
 Receive a separate cheque book (on request) for your reimbursement account.

5. PREMIUM CURRENT ACCOUNT

Your business needs a partner who can manage your finances while you concentrate
on growing your business.

You can avail benefits of inter-city banking account Premium Current Account that
requires an Average Quarterly Balance of only Rs. 25,000. Offers Payable At-Par
cheque facility and Free inter-city clearing transactions across our network up to Rs.
25 lakhs per month.

A current Account with benefits of accessing your account from a large network of
branches, and through direct access channels i.e. through phone, mobile, internet and
through ATM.

Enter into a profitable relationship and access all the privileges flowing your way.

39
FEATURES AND BENEFITS :

 Free anywhere collection and payment within AXIS Bank branch network
(Except dahej), up to Rs. 25 lacs per mointh, incremental amount to be charged
@ Rs. 1.50 per Rs. 1,000 and minimum Rs. 25.
 Free NEFT Transactions.
 Free RTGS Collections. RTGS payment @ Rs. 100 per transaction.
 Inter-city Account to accounts funds transfer between AXIS Bank accounts at
nominal charge of Rs. 15 per transaction.
 Free Demand Drafts (DD) above Rs. 100,000. Demand Drafts above Rs.
50,000 up to 100,000 Rs. 25 and up to Rs. 50,000 Rs. 40 can be issued from
any AXIS Bank branch.
 100 “At Par” cheque leaves free per month.
 Register for Insta Alert service and receive updates on your account as and
when the select transaction happens - all this without visiting the branch or
ATM.
 Enjoy facilities like 24 – hour Phone Banking, Net Banking and Mobile
Banking to access your account.

40
KID’S ADVANTAGE ACCOUNT
This account is specially designed keeping customer’s child future in mind. Customer
must have/open a Savings Account in AXIS Bank and invest a sum of Rs. 10,000 in a
Fixed Deposit in child’s name, and then a Zero Balnace Kid’s Advantage Account
linked to the FD is opened in the child’s name with customer as guardian.

WHO CAN APPLY ?

 All kids under age 18 years of age.
 The parent/guardian must have a Saving Account with us. If no, he/she neds to
open a new Saving Account.

FEATURES AND BENEFITS :

 Free ATM/Debit card for kids between 7-18 years of age.
 Free standing instructions on the parent/guardian Savings Account.
 Special sweep-out facility.
 Free education insurance of Rs. 100,000.
 Investment tie-ups with mutual funds for the secured future of child.
 PAP cheque book in the name of the child.
 Free Insta alert.
 Free Mobile Banking, Phone Banking, and Internet Banking facilities.

AQB REQUIREMENTS :
 Fixed Deposit of Rs. 10,000 in the name of the child with a Zero Balance
Savings Account, mandatory at the time of account opening.
 In case of Fized Deposit balance fals below Rs. 10,000 the AQB of Rs. 5,000
to be maintained.

AQB NON-MAINTENANCE CHARGES :

If AQB in the Savings Account is less than Rs. 5000 and Fixed Deposit balance is less
than Rs. 10,000 then Rs. 300 per quarter will be charged.

41
 TRUST AND SOCIETIES ACCOUNT

All registered trusts, the exception of EPF (Employee Provident Fund) can apply for
Trust and Societies Account.

FEATURES AND BENEFITS :

 Free Payable-At-Par cheque book, without any usage charge up to a limit of
Rs. 50,000 per day.
 Free outstation cheque collection at AXIS Bank locations.
 Free DD on AXIS Bank locations, up to a limit of Rs. 50,000 per day.
 Cash transactions (deposits plus withdrawals) up to a limit of Rs. 50,000 per
day free of charges.
 Discount of Foreign Exchange transactions.
 Free Funds Transfer.
 Free stop payment on cheques.
 Free Quarterly Statement of Account.
 Free Net Banking and Phone Banking facility.
 Demat Account with preferred pricing.

AQB REQUIREMENTS :

An AQB of Rs. 10,000 or a FD of Rs. 200,000 linked to a Zero Balance Savings

Account.

AQB NON-MAINTENANCE CHARGES :

If Fixed Deposit balance is less than Rs. 200,000 then Rs. 1000 per quarter will be
charged, AND
If AQB is,
 Between Rs. 5,000 and Rs. 10,000 then Rs. 500 per quarter, AND
 Below Rs. 5,000 then Rs. 1,000 per quarter will be charged.

42
FAMILY SAVINGS GROUP

The persons who can apply for Family Savings Group are:

 Existing customers- having one or more accounts with us (Savings / Salary /

NRI / Salary Reimbursement / Kid’s Account) at the same or different
branches.
 New Customer – you and your family members intend to have one or more
accounts with us.

ELIGIBILITY :

Up to 4 Savings Accounts of individuals can be clubbed under a single Family

Savings Group.

FEATURES AND BENEFITS :

 Free International Debit Card for all account holders, for life.
 5 free transactions on SBI ATMs per month per group.
 Gold Debit Card at Rs. 250 for all account holders.
 2 free DDs on AXIS Bank locations, per account per month (up to a limit of
Rs. 25,000 per day).
 Sweep-In facility to a nominated saving account from other accounts in the
group.
 Free one view to access all your accounts.
 Free National Electronic Funds Transfer facility, Net Banking, Phone Banking
& Mobile Banking.
 25% off on annual locker rentals.
 Folio maintenance charges on Demat account waived for first year for all
account holders.
 Preferential pricing on credit cards.

43
AQB REQUIREMENTS :

 Group Average Quarterly Balance of Rs 25,000 .

 No fixed cushion available.

AQB NON-MAINTENANCE CHARGES :

If AQB is,
 Between Rs. 10,000 to Rs. 25,000 then Rs. 1,000 per quarter, AND
 Below Rs. 10,000 then Rs. 1,500 per quarter will be charged.

44
 BOARD OF DIRECTOR

Mr. Jagdish kapoor, (Chairman)

Mr. Aditya Puri, (Managing Director)
Mr. Keki Mistry
Dr. Venkat Rao Gadwal
Dr. Vineet Jain
Mrs. Renu Karnad
Mr. Arvind Pande
Mr. Ranjan Kapoor (Resigned w.e.f. 29th March, 2014)
Mr. Bobby Parikh (w.e.f. Jan. 9, 2004)
Mr. Ashim Samanta

VICE PRESIDENT AND COMPANY SECRETARY

Mr. Sanjany Dongre

AUDITOR
M/s P.C Hansotia & Co.
Chartered Accountant

REGISTERED OFFICE
AXIS BANK HOUSE
Senapati Bapat Mart,
Lower Parel,
Mumbai 40013
Tel. No. 66521000
Fax No. 24960737
Website : www. AXISbank.com

45
 SWOT ANALYSIS

STRENGHTS :

* It has an extensive distribution network comprising of 319 branches in 166 cities &
one international office in Dubai this provides a competitive edge over the
competitions.
* The Bank has a strong retail depository base & has more than million customers.
* Bank boasts of a strong brand equity.
* ISO 9001 certification for its depository & custody operations & for its backend
processing of retail operation & direct banking operatiosn.
* The bank has a near competitive edge in area of operations.
* The bank has a market leader in cash settlement service for the major stock exchanges
in its country.
* AXIS Bank is one of the largest private sector bank working in India.
* It has a highly automated environment in terms of information technology &
communication system.
* Infrastructure is best.
* It has many innovative products like kids Advantage scheme, NRI services.
WEAKNESS :

* Account opening and delivery of cheque book take comparatively more time.
* Lack of availability of different credit products like CC Limit, Bill discounting
facilities.
OPPORTUNITY :

* Branch expansion
* Door step services
* Greater liberalization in foreign ownership via FDI in Indian Pvt. Sector Banks.
* CC/ OF Facilities.
* Infrastructure improvements & better systems for trading & settlement in the govt.
securities & foreign exchange markets.

46
THREATS:

* The bank has started facing competition from players like SBI, PNB Bank in the
finance market itself. This reduce the profit margins in the future.
* Some Pvt. Banks have 7 days banking.

47
 JUSTIFICATION OF THE STUDY
Financial Statements are prepared primarily for decision-making. They play a
dominant role in setting the framework of managerial decisions. But the information in the
financial statement is not an end in itself as no meaningful can be drawn from these
statements alone.
The information provided in the financial statement is of immense use in making
decisions through analysis and interpretation of financial statements. The financial analysis is
the process of identifying the financial strength and weakness of the firm by properly
establishing relationship between the items of the balance sheet and P&L A/C.
There are various methods or techniques used in analyzing financial statement such as
comparative statement, trend analysis, common size statement, schedule of changes in
working capital, fund flow and cash flow analysis, cost volume profit analysis and “RATIO
ANALYSIS”.

Ratio analysis is one of the most powerful tool of financial analysis. It is a process of
establishing and interpreting various ratios that the financial statements can be analysed more
clearly and decisions made from such analysis.
Just like a DOCTOR examines his patient by recording his body temperature, blood
pressure etc before making his conclusion regarding the illness and before giving his
treatment, a financial analyst analysis the financial statement with various tools of analysis
before commenting upon the financial health or weaknesses of an enterprise.
The purpose of financial analysis is to diagnose the information contained in financial
statements so as to judge the profitability and financial soundness of the firm. Financial
statement analysis is an attempt to determine the significance and meaning of financial
statement data so that forecast may be made of the future earning, ability to pay interest and
debt maturities and profitability of a sound dividend policy.
A financial ratio is the relationship between two accounting figures expressed
mathematically ratio provide clues to the financial position of the concern. These are the
pointers and indicators of financial strength, soundness, position or weakness of an
enterprise. One can draw conclusions about the exact financial position of a concern with the
help of ratios.

48
 OBJECTIVE OF THE STUDY
Objectives are the ends that states specifically how goal be achieved. Every study
must have an objective for which all the efforts have been done. Without objective no
research can be conducted and no result can be obtained. On the basis of objective all the
research process is followed. Objectives are the main aspect of every study. The objective of
the study gives direction to go through the research problem. It guides the researcher and
keeps him on track.

I have two objectives regarding my research project. These are shown below :-
1. Primary objective
2. Secondary objective

1. Primary objective :-
1) To study the software used in AXIS Bank
2) To analyse the financial statements of the corporation to it’s
true financial position by the use of ratios

2. Secondary objective :-

1) To see whether AXIS is going well or not in different Financial Products

2) To inform the management about the financial condition of AXIS
3) To inform the investor, enabling them to take the investment
decision.

49
 INTRODUCTION OF THE TOPIC

MEANING OF FINANCIAL STATEMENTS:-

Financial statements refer to such statements which contains financial information about an
enterprise. They report profitability and the financial position of the business at the end of
accounting period. The team financial statement includes at least two statements which the
accountant prepares at the end of an accounting period. The two statements are: -
1. The Balance Sheet

2. Profit And Loss Account

They provide some extremely useful information to the extent that balance Sheet
mirrors the financial position on a particular date in terms of the structure of assets, liabilities
and owners equity, and so on and the Profit And Loss account shows the results of operations
during a certain period of time in terms of the revenues obtained and the cost incurred during
the year. Thus the financial statement provides a summarized view of financial positions and
operations of a firm.

MEANING OF FINANCIAL ANALYSIS

The first task of financial analysis is to select the information relevant to the decision under
consideration to the total information contained in the financial statement. The second step is
to arrange the information in a way to highlight significant relationship. The final step is
interpretation and drawing of inference and conclusions. Financial statement is the process of
selection, relation and evaluation.

Features of Financial Analysis

 - To present a complex data contained in the financial statement in simple and
understandable form.

 - To classify the items contained in the financial statement in convenient and rational
groups.

 To make comparison between various groups to draw various conclusions.

50
Purpose of Analysis of financial statements
 To know the earning capacity or profitability.

 To know the solvency.

 To know the financial strengths.

 To know the capability of payment of interest & dividends.

 To make comparative study with other firms.

 To know the trend of business.

 To know the efficiency of mgt.

 To provide useful information to mgt

Procedure of Financial Statement Analysis

The following procedure is adopted for the analysis and interpretation of financial
statements:-
 The analyst should acquaint himself with principles and postulated of accounting. He
should know the plans and policies of the management so that he may be able to find
out whether these plans are properly executed or not.

 The extent of analysis should be determined so that the sphere of work may be
decided. If the aim is find out. Earning capacity of the enterprise then analysis of
income statement will be undertaken. On the other hand, if financial position is to be
studied then balance sheet analysis will be necessary.

 The financial data be given in statement should be recognized and rearranged. It will
involve the grouping similar data under same heads. Breaking down of individual
components of statement according to nature. The data is reduced to a standard form.

 A relationship is established among financial statements with the help of tools &
techniques of analysis such as ratios, trends, common size, fund flow etc.

 The information is interpreted in a simple and understandable way. The significance

and utility of financial data is explained for help in decision making.

 The conclusions drawn from interpretation are presented to the management in the
form of reports.

51
 TYPES OF FINANCIAL ANALYSIS

A) Classification on the basis of natural used

a) External Analysis

Outsiders, who don’t have access to the detailed internal accounting records of the
business firm, do this analysis. These outsiders parties are potential investor,
creditors, government agencies, credit agencies & general public.

b) Internal Analysis:

The analysis conducted by person who has access to the internal accounting
records of a business firm is known as internal analysis.

B) On the basis of modus operand:

a) Horizontal Analysis:

Horizontal analysis refers to the comparison of financial data of a company for

several years. The figures of this type of analysis are presented horizontally over a
no. of columns. This type of analysis is also called “Dynamic Analysis”.

b) Vertical Analysis:

This analysis refers to the study of relationship of the various items in the
financial statements, of one accounting period. It is also known as “Static
analysis”.

FUNCTIONS OF FINANCE DEPARTMENT

The functions of finance department include the following areas:

1) Effective management of financial resources of the company.

2) Coordinates & Monitors the functions of accounts activities in the units/marketing

offers.

52
 3) Establish and maintain systems of financial control, internal check and render advice
on financial & accounting matters including examination of feasibility report and
detailed project reports.

4) Establish and maintain proper system of budgetary control, cost control and
management reporting.

5) Maintain financial accounts and compile annual periodical accounts in accordance

with the companies Act, 1956, ensuring the audit of accounts as per law/Govt.
directions.

6) Looks after overall funds management and arranges funds required for the capital
schemes and working capital form govt., banks and financial institutions etc.

7) Timely payment of all taxes, levies & duties under the Law, Maintenance of records
and filing returns statements connected with such taxes, levies and duties with the
appropriate authorities , as per law.

All the power involving financial implications are to e exercised in prior consultation with
head of concerned finance department. In the event of any difference of opinion between the
General Manger and the Head of Finance Dept., the matter shall be referred to Managing
Director who after consulting Director (Finance) shall issue appropriate instruction after
following the prescribed procedures.

METHODS OF FINANCIAL ANALYSIS

A number of methods can be used for the purpose of analysis of financial
statements. These are also termed as techniques or tools of financial analysis.
Out of these, and enterprise can choose those techniques which are suitable to
its requirements. The principal techniques of financial analysis are:
1. Comparative Financial Statements.

2. Common – size Statements

3. Trend Analysis

4. Funds Flow statements

5. Cash Flow Statement

53
 COMPARATIVE FINANCIAL STATEMENTS
When financial statements figures for two or mote years are placed side-side to facilitate
comparison, these are called ‘comparative Financial Statements’. Such statements not only
show the absolute figures of various years but also provide for columns to indicate to increase
ort decrease in these figures from one year to another. In addition, these statements may also
show the change from one year to another on percentage form. Such cooperative statements
are of great value in forming the opinion regarding the progress of the enterprise.

PURPOSE OR UTILITY OR IMPORTANCE OF

COMPARATIVE STATEMENTS

1. To make the Data simpler and more understandable

2. To indicate the Trend

3. To indicate the strong points weak points of the concern

4. To compare the firms performance with the average performance of the industry

5. To help in forecasting

54
FORMS OF PRESENTING COMPARATIVE STATEMENTS

1. To show only the absolute data of various items or in other words to show only rupee
amounts of various items.

2. To show the increases and decreases in data in terms of money values

3. To show the increases and decreases in data in terms of percentages

4. Comparison expressed in ratios

5. Use of cumulative figures and averages

COMPARATIVE BALANCE SHEET

The Comparative Balance Sheet as on two or more different dates can be prepared to show
the increase or decrease in various assets, liabilities and capital. Such a comparative Balance
Sheet is very useful in studying the trends in a business enterprise.

ADVANTAGES OF COMPARATIVE BALANCE SHEET

1. Helpful for comparison.

2. Helpful in knowing changing in the size of items.

3. Helpful in knowing trends.

4. Link between income statement and Balance sheet

55
 COMPARATIVE PROFIT & LOSS ACCOUNT
Profit and loss account shows the net profit or net loss of a particular year whereas
comparative profit and loss account for a number of years provides the following information
1. Rate of increase or decrease in gross profit.

2. Rate of increase or decrease in operating profit.

3. Rate of increase or decrease in cost of goods sales

4. Rate of increase or decrease in net profit

5. Rate of increase or decrease in sales.

TREND ANALYSIS

Trend percentage are very useful is making comparative study of the financial statements for
a number of years. These indicate the direction of movement over a long tine and help an
analyst of financial statements to form an opinion as to whether favorable or unfavorable
tendencies have developed. This helps in future forecasts of various items.

For calculating trend percentages any year may be taken as the ‘base year’. Each item of
bease year is assumed to be equal to 100 and on that basis the percentage of item of each year
calculated.

56
 RATIO ANALYSIS
MEANING :

Absolute figures expressed in financial statements by themselves are meaningfulness. These

figures often do not convey much meaning unless expressed in relation to other figures.
Thus, it c an be say that the relationship between two figures, expressed in arithmetical terms
is called a ratio.

“According to R.N. Anthony.”

“A ration is simply one number expressed in terms of another. It is found by dividing
one number into the other.”

TYPES OF RATIOS

 Proportion or Pure Ratio or Simple ratio.

 Rate or so many Times.

 Percentage

 Fraction.

OBJECTS AND ADVANTAGES OR USES OF RATIO

ANALYSIS

 Helpful in analysis of financial statements.

 Simplification of accounting data.
 Helpful in comparative study.
 Helpful in locating the weak spots of the business.
 Helpful in forecasting
 Estimate about the trend of the business
 Fixation of ideal standards
 Effective control
 Study of financial soundness.

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 LIMITATION OF RATIO ANALYSIS

 False accounting data gives false ratios

 Comparisons not possible of different firms adopt different accounting

policies.

 Ratio analysis becomes less effective due to price level

change

 Ratios may be misleading in the absence of absolute data.

 Limited use of a single Ratio.

 Window-Dressing

 Lack of proper standards.

 Ratio alone are not adequate for proper conclusions

 Effect of personal ability and bias of the analyst.

CLASSIFICATION OF RATIOS
In view of the financial management or according to the tests satisfied, various ratios have
been classifieds as below

I. Liquidity Ratios: These are the ratios which measure the short-term solvency or
financial position of a firm. These ratios are calculated to comment upon the short-term
paying capacity of a concern or the firm’s ability to meet its current obligations.

II. Long –Term Solvency and Leverage Ratios : Long-term solvency

ratios convey a firm’s ability to meet the interest cost and repayment schedules of its
long-term obligation e.g. Debit Equity Ratio and Interest Coverage Ration. Leverage
Ratios.

III. Activity Ratios: Activity ratios are calculated to measure the efficiency with
which the resource of a firm have been employed. These ratios are also called turnover
ratios because they indicate the speed with which assets are being turned over into sales
e.g. debtors turnover ratio.

58
IV. Profitablity Ratios: These ratios measure the results of business operations or
overall performance and effective of the firm e.g. gross profit ratio, operating ratio or
capital employed. Generally, two types of profitability ratios are calculated.

(a) In relation to Sales, and

(b) In relation in Investment

59
 FUNCTIONAL CLASSIFICATION IN VIEW OF FINANCIAL
MANAGEMENT OR CLASSIFICATION
ACCORDING TO TESTS

Liquidity Ratios Long-term Activity Ratios Profitability Ratios

Solvency and
Leverage Ratios
(A) 1. Current Financial Operating 1. Inventory (A) In Relation to
Ration Composite Turnover Ratio. Sales.
2. Liquid Ration 2. Debtors 1. Gross Profit Ratio.
(Acid) Test or Turnover 2. Operating Ratio.
Quick Ratio. 1. Debt. Equity 3. Fixed Assets 3. Operating Profit
3. Absolute liquid or Ratio Turnover Ratio Ratio.
Cash Ratio. 2. Debt to Total 4. Total Asset 4. Net Profit Ratio.
4. Internal Measure Capital Ratio Turnover Ratio 5. Expenses Ratio
(b) 1. Debtors 3. Interest 5. Working Capital (B) In relation to
Turnover Ratio Coverages Turnover Ratio. investments
2. Creditors Turnover 4. Cash Flow/ 6. Payables 1. Return on
Ratio Debt Turnover Ratio Investments.
3. Inventory Turnover 5. Capital 7. Capital 2. Return on capital.
Ratio Gearing Employed 3. Return on Equity
Turnover Capital.
4. Return on total
Resources
5. Earning per share.
6. Price Earning Ratio.

Show the proportions of debt and equity in financing of the firm. These ratios measure the
contribution of financing by owner as compared to financing by outsiders. The leverage ratios
can further be classified as: (i) Financial Leverages, (ii) Operating Leverage, (iii) Composite
Leverages

60
 CASH-FLOW STATEMENT

A cash – flow statement is a statement showing inflows (receipts) and outflows (payments) of
cash during a particular period. In other words, it is a summary of sources and applications of
each during a particular span of time.

Objectives of Cash Flow Statement :

 Useful for Short-Term Financial Planning.

 Useful in Preparing the Cash Budget.
 Comparison with the Cash Budget.
 Study of the Trend of Cash Receipts and Payments.
 It explains the Deviations of Cash from Earnings.
 Helpful in Ascertaining Cash Flow from various Separately.
 Helpful in Making Dividend Decisions.

61
 RESEARCH METHODOLOGY
The procedure adopted for conducting the research requires a lot of attention as it has direct
bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that
research methodology, which we used at the time of conducting the research, needs to be
elaborated upon. Research Methodology is a way to systematically study and solve the
research problems. If a researcher wants to claim his study as a good study, he must clearly
state the methodology adapted in conducting the research the research so that it way be
judged by the reader whether the methodology of work done is sound or not.

The Research Methodology here includes.

1. Meaning of Research.
2. Research Problem.
3. Research Design.
4. Sampling Design.
5. Data Collection method.
6. Analysis and interpretation of Data.
Meaning Research:
Research is defined as “a scientific and systematic search for pertinent information on a
specific topic”. Research is an art of scientific investigation. Research is a systematized
effort to gain now knowledge. It is a careful investigation or inquiry especially through
search for new facts in any branch of knowledge. Research is an academic activity and this
term should be used in a technical sense. Research comprises defining and redefining
problems, formulating hypothesis or suggested solutions. Making deductions and reaching
conclusions to determine whether they if the formulating hypothesis. Research is thus, an
original contribution to the existing stock of knowledge making for its advancement. The
search for knowledge through objective and systematic method of finding solutions to a
problem is research.
Research Problem
The first step while conducting research is careful definition of Research Problem. “To ERR
IS THE HUMAN” is a proverb which indicates that no one is perfect in this world. Every
researcher has to face many problems which conducting any research that’s why problem

62
statement is defined to know which type of problems a researcher has to face while
conducting any study. It is said that,
“Problem well defined is problem half solved.”
Basically, a problem statement refers to some difficulty, which researcher experiences in the
context of either a theoretical or practical situation and wants to obtain the solution for the
same.
The problem statement here is:
“To make a Financial Analysis of Financial statements of AXIS BANK
KURUKSHETRA.
Research Design
A research designs is the arrangement of conditions for collection and analysis data in a
manner that aims to combine relevance to the research purpose with economy in procedure.
Research Design is the conceptual structure with in which research in conducted. It
constitutes the blueprint for the collection measurement and analysis of data. Research
Design includes and outline of what the researcher will do form writing the hypothesis and it
operational implication to the final analysis of data. A research design is a framework for the
study and is used as guide in collection and analyzing the data. It is a strategy specifying
which approach will be used for gathering and analyzing the data. It also include the time and
cost budget since most studies are done under these two cost budget since most studies are
done under theses tow constraints.
The design is such studies must be rigid and not flexible and most focus attention on the
following.
1. What is the study about?

2. Why is the study being made?

3. Where will the study be carried out?

4. What type of data is required?

5. Where can be required data be found?
6. What period of time will the study include?
7. What will be sample design?
8. What techniques of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared?

63
TYPES OF RESEARCH DESIGN:
 EXPERIMENTAL RESEARCH DESIGN
 EXPLORATORY RESEARCH DESIGN
 DESCRIPTIVE& DIAGNOSTIC RESEARCH

Exploratory Research Design: This research design is preferred when researcher has a
vague idea about the problem the researcher has to explore the subject.

Experimental Research Design – The research design is used to provide a strong basis
for the existence of casual relationship between two or more variables.

Descriptive Research Design – It seeks to determine the answers to who, what, where,
when and how questions. It is based on some previous understanding of the matter.

Diagnostic Research Design It determines the frequency with which something occurs
or its association with something else.

Research Design Used in this Project

Research Design chosen for this study is Descriptive Research Design. Descriptive study is
based on some previous understanding of the topic. Research has got a very specific objective
and clear cut data requirements.
Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent population
(i.e. the entire universe) various factors such as time available cost, purpose of study etc.
make it necessary for the researchers to choose a sample. It should neither be too small nor
too big. It should be manageable. THE sample size of past 3 years is taken for present study
due to time limitation.

64
 DATA COLLECTIONS
The process of data collection begins after a research problem has been defined and research
design ahs been chalked out. There are two types of data –

METHODS OF PRIMARY DATA

 OBSERVATION METHOD
 INTERVIEW METHODS
 QUESTIONAIRE METHOD
 SCHEDULE METHOD

PRIMARY DATA -
It is first hand data, which is collected by researcher itself. Primary data is collected by
various approaches so as to get a precise, accurate, realistic and relevant data. The main tool
in gathering primary data was investigation and observation. It was achieved by a direct
approach and observation from the officials of the company.
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.
I took data comprise annual reports and post records. Bank has provided me annual reports
from 2004-05 to 2015-08 by help of which, I prepared my report.
The valuable cooperation extended by staff members contributed a lot to fulfill the
requirements in the collection of data in order to complete the project. Various statistical
tools are applied depending on the research problem. In this study ratio analysis, comparative
financial statements analysis, common size statements and Trend Analysis has been used for
analyzing and interpreting the result.

65
 RATIO ANALYSIS

VARIOUS CALCULATED RATIOS OF NLL

 Current Ratio

Current ratio may be defined as the relationship between current assets and current
liabilities.

Current ratio = Current assets/current liabilities

Year 2014 2015 2016

Current Ratio 1.10 1.07 1.08

Interpretation
If the C.R. is less than 2 : 1, it indicates lack of liquidity and shortage of working
capital. But a much higher ratio, even though it is beneficial to the short-term
creditors, is not necessarily good for the company. A much higher ratio than 2 : 1 may
indicate the poor investment policies of the management. So liquidity of Bank is
satisfactory.

66
Interest coverage/debt service ratio
= Net profit (before interest and taxes)/ Fixed interest
charge

Interest coverage ratio(times)

2.5
2.38
2.4
2.3
ICR2.2 Interest coverage
2.09
2.1 ratio(times)
2
2
1.9
1.8
2020-21 2021-22 2022-23
Years

Interpretation :
Since this Ratio indicates the interest paying capability of firm and ideal
Ratio is 6 to 7 times. So interest paying capacity of the firm is moderate.

67
Operating ratio= (Operating cost / Net income )*100

Operating ratio(%)

50.5 50
50
49.5 49
OR 49 Operating ratio(%)
48.5 48
48
47.5
47
2021 2022 2022
Years

Interpretation :
Operating Ratio is a measurement of the efficiency and profitability of the business
enterprise. The ratio indicate the extent of sales that is absorbed by the cost of goods
sold and operating expenses. Lower the operating ratio, the better it is , because it will
leave higher margin of profit on sales.

68
Return on gross capital employed=(Net profit / Gross capital
employed) * 100
Gross capital employed= fixed assets + current assets

Interpretation :
Since profit is the overall objective of a business enterprise, this ratio is a barometer
of the overall performance of the enterprise. It measures how efficiently the capital employed
in the business is being used.

69
Return on shareholders=(Net profit / Shareholders funds) *100

Return on shareholders(%)
Return on Shareholders
20 17.74
16.43
15 13.83
funds
Return on
10
shareholders(%)

0
2021 2022 2023
Years

Interpretation :
This Ratio indicates what amount of return has been given to the Share holders of the
firm which help in building the good will firm.

70
Interest expense ratio= (Interest expense / income) * 100

Interest expenses ratio(%)

49 48.32
48.5 47.83
48
47.5
47
IER Interest expenses
46.5
46 45.61 ratio(%)
45.5
45
44.5
44
2021 2022 2023
Years

Interpretation :
This Ratio indicates that what is the Ratio of Total Interest Expenses to
the Income. So that we can know about profitability of firm.

71
Net profit ratio = (Net profit / Net income) * 100

Interpretation :
This Ratio measures the rate of net profit earned on sales. It helps in determining the
overall efficiency of the business operations. An increase in the ratio over the
previous year shows improvement in the overall efficiency and profitability of the
business.

72
Operating profit ratio= (Operating profit / Income) * 100

Operating profit ratio (%)

42
40.98
41
40
39
OPR 38.57
Operating profit ratio (%)
38 37.22
37
36
35
2021 2022 2023
Years

Interpretation :
Operating Ratio and Operating Profit Ratio are inter-related and total of
both these Ratio is 100. Both Ratios indicated the profitability of firm.

73
Return on net capital employed = (Net profit / Net capital
employed) * 100
Net capital employed = Total assets- Current liability

Return on net capital employed(%)

32
Return on Net capital 31
31
employed
30
29 Return on net capital
29
28 employed(%)
28
27
26
2021 2022 2023
Years

Interpretation :
This Ratio indicates how well the Capital employed is being use in
business. Even the performance of two Dissimilar firms may be
compared with the help of this Ratio.

74
Operating expenses ratio= (Operating Expenses /Income)
*100

Interpretation :
This Ratio indicates the how much expenses has been spent on selling
and administration use of organization.

75
EPS = Net profit after interest, tax & preference dividend /
No. of equity shares

EPS

40 34.6
35
29.08
30
22.6
EPS25
20 Years
15
10
5
0
2021 2022 2023
Years

Interpretation :
This ratio is helpful in the determination of the market price of the equity
share of the company. The ratio is also helpful in estimating the capacity of the
company to declare dividends on equity shares.

76
DPS = Dividend paid to equity shareholders / No. of equity
shares

DPS

9.00 8.50
8.00 7.0
7.00
6.00 5.50
2023
DPS
5.00
DPS
4.00
3.00
2.00
1.00
0.00
2021 2022
Years

Interpretation :
This Ratio indicates how much profit has been given in hand to the equity
share holders. This represents higher the ratio more is the good will of the firm.

77
P.E Ratio = Market price per share / Earning per share
P.E Ratio(%)
Type your text
28.80
29
28.5
P.E Ratio(%)
28 27.74
27.5
27 P.E Ratio(%)
26.5 26.29
26
25.5
25
2023 2022 2023
Years

Interpretation :
This ratio shows how much is to be invested in the market in this
company’s shares to get each rupee of earning on its shares. The ratio is used to
measure whether the market price of a share is high or low.

78
 FINDINGS OF THE PROJECT

The major findings during the project are as follows :

 AXIS Banks is second largest institution after ICICI in private sector but it is
higher in profits than ICICI Bank.
 Some customers are not satisfied with the facilities and services, which are
provided by AXIS Bank.
 The customers wants to increase the number of ATMs and more Branches of
AXIS Bank in the rural areas as well as in the hilly areas like Kullu, Manali,
Jammu & Kashmir, Shimla and many more.
 The customers are not satisfied with non-maintenance charges on the different
products charged by AXIS Bank.
 All the Financial Institutions are using very competitive strategies for making
the good position by maximizing there market share.
 Till today the majority of population has greater faith and trust in the National
Banks in spite of there comparatively low quality service than private banks.
 Private Banks are out of reach of lower middle class and lower class as there
minimum requirements (like AQB) are of higher levels so as to involve only
higher class and higher middle class people.
 Though the modern technology for banking is being absorbed by the Indian
public but still the majority of population lacks computer literacy, as a result
they are not able to utilize facilities provided by the banks optimally.

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 LIMITATION

The present study however has certain limitations. The main limitations of the study
are:

 The sample size was quite small which is unable to represent the whole
universe.
 It was found that many of the respondents did not have any knowledge of the
product.
 The non co-operative nature of many of the respondent acted as the constraints.
 It is possible that information passed by respondent is not correct.
 The study is limited to the analysis of need and gap analysis of retial banking
and does not tells covers much about the impact of working efficiency, skills
etc of the employees of the bank.
 The study does not cover the data from ruler area as study is being made in the
urban area therefore the result may differ form real situation.
 Throughout this project report we can measure the potential of the bank in the
selected area but can not measure the capabilities, skills and efficiencies of the
Customer.
 The bank can not exist without the customer.

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 SUGGESTIONS AND RECOMMENNDATION
During the period of my extensive research I have come to know that there are few
weakness in AXIS Bank. Customer have several problems regarding some products
and working style of the bank, which the company should over come.
These are:
 In AXIS Bank, the NON-Maintenance charges on some of its product like current
account ,etc. Is very high .so the company should take decision to minimize the NON-
Maintenance charges.
 AXIS Bank is the third largest bank in India but holding the second position in the
Private Banking Sector. AXIS Bank is not having much number of branches or
ATMs in the ruler areas and minor cities. So it is very important for the company to
increase the number of branches and ATM counters by which they can easily attract
to the most of the customers because of which AXIS is lagging in the customer base.
 HDEC Bank should try to follow the concept of KYC i.e. KNOW YOUR
CUSTOMER.
 There is a lot of paper work (documentation) done while opening any account or for
taking any loan, so it should overcome. For e.g. the passport indicates both the ID and
address proof of the customer, which is accepted by all other banks ,but AXIS
 Bank considered it only for ID proof of the customer but not for the address proof
 Advertisement and promotion could be through all existing media like print, audio
and visual.
 Most one the customer are satisfied with the services and facilities provided by the
AXIS Bank but according to the view of some customers ,the bank is not providing
services according to their commitments.
 The charges of demand draft should be reduced and local cheques should be provided
on free of cost in all types of current accounts.
 New schemes for customers should introduce time to time.
 Complaints on customers must be handled effectively and give them the better
facilities.

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 BIBLIOGRAPHY
MAGAZINES:

 Indian Banking

 Business

JOURNALS

 Effect of MNC Banks on nationalized Banking.

 Increasing competition between banks.

NRWS PAPERS:

 Business standard.

 Economic times.

WEBSITES:

 www.AXISbank.com

 www.google.com

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