Project On Andhra Bank: Chapter: 1. Introduction of Bank

Project On Andhra Bank
CHAPTER: 1. INTRODUCTION OF BANK
1.1 INTRODUCTION OF BANK :

A bank is a financial institution that provides banking and other financial services to their
customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also nonbanking
institutions that provide certain banking services without meeting the legal definition of a
bank. Banks are a subset of the financial services industry.
A banking system also referred as a system provided by the bank which offers cash
management services for customers, reporting the transactions of their accounts and
portfolios, throughout the day. The banking system in India should not only be hassle free but
it should be able to meet the new challenges posed by the technology and any other external
and internal factors. For the past three decades, Indias banking system has several
outstanding achievements to its credit. The Banks are the main participants of the financial
system in India. The Banking sector offers several facilities and opportunities to their
customers. All the banks safeguards the money and valuables and provide loans, credit, and
payment services, such as checking accounts, money orders, and cashiers cheques. The
banks also offer investment and insurance products. As a variety of models for cooperation
and integration among finance industries have emerged, some of the traditional distinctions
between banks, insurance companies, and securities firms have diminished. In spite of these
changes, banks continue to maintain and perform their primary role-accepting deposits and
lending funds from these deposits.

1.2 MEANING OF BANK :
Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as
the backbone of modern business. Development of any country mainly depends upon the
banking system.
The term bank is either derived from old Italian word banca or from a French word banque
both mean a Bench or money exchange table. In olden days, European money lenders or
money changers used to display (show) coins of different countries in big heaps (quantity) on
benches or tables for the purpose of lending or exchanging.
A bank is a financial institution which deals with deposits and advances and other related
services. It receives money from those who want to save in the form of deposits and it lends
money to those who need it.
1.3 DEFINITION OF BANK &BANKING :

Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays
out on customer's order."
Banking has been defined as Accepting for the purpose of lending & investment, of deposit
of money from the public, repayable on demand order or otherwise and withdraw able by
cheque, draft or otherwise. Meaning:- Banking means transacting business with a bank;
depositing or withdrawing funds or requesting a loan etc.
1.4HISTORY OF INDIAN BANKING SYSTEM :

The first bank in India, called The General Bank of India was established in the year 1786.
The East India Company established The Bank of Bengal/Calcutta (1809), Bank of Bombay
(1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which was
established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and
Bank of Madras) were called as Presidency Banks. Allahabad Bank which was established in
1865 was for the first time completely run by Indians. Punjab National Bank Ltd. was set up
in 1894 with headquarters at Lahore. Between 1906 and1913, Bank of India, Central Bank of
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India, Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. In 1921,
all presidency banks were amalgamated to form the Imperial Bank of India which was run by
European Shareholders. After that the Reserve Bank of India was established in April 1935.
At the time of first phase the growth of banking sector was very slow. Between 1913 and
1948 there were approximately 1100 small banks in India. To streamline the functioning and
activities of commercial banks, the Government of India came up with the Banking
Companies Act, 1949 which was later changed to Banking Regulation Act 1949 as per
amending Act of 1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as a Central Banking Authority. After
independence, Government has taken most important steps in regard of Indian Banking
Sector reforms. In 1955, the Imperial Bank of India was nationalized and was given the name
"State Bank of India", to act as the principal agent of RBI and to handle banking transactions
all over the country. It was established under State Bank of India Act, 1955. Seven banks
forming subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969,
major process of nationalization was carried out. At the same time 14 major Indian
commercial banks of the country were nationalized. In 1980, another six banks were
nationalized, and thus raising the number of nationalized banks to 20. Seven more banks were
nationalized with deposits over 200 Crores. Till the year 1980 approximately 80% of the
banking segment in India was under governments ownership. On the suggestions of
Narsimhan Committee, the Banking Regulation Act was amended in 1993 and thus the gates
for the new private sector banks were opened.

1.5 CHARACTERISTICS OF BANK :
1. Dealing in Money :
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.
2. Individual / Firm / Company :
A bank may be a person, firm or a company. A banking company means a company which is
in the business of banking.
3. Acceptance of Deposit :
A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It
also acts as a custodian of funds of its customers.
4. Giving Advances :
A bank lends out money in the form of loans to those who require it for different purposes.
5. Payment and Withdrawal :
A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts, It also brings bank money in circulation. This money is in the form of cheques,
drafts, etc.
6. Agency and Utility Services :
A bank provides various banking facilities to its customers. They include general utility
services and agency services.
7. Profit and Service Orientation :
A bank is a profit seeking institution having service oriented approach.
8. Ever increasing Functions :
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Banking is an evolutionary concept. There is continuous expansion and diversification as
regards the functions, services and activities of a bank.
9. Connecting Link :
A bank acts as a connecting link between borrowers and lenders of money. Banks collect
money from those who have surplus money and give the same to those who are in need of
money.
10. Banking Business
A bank's main activity should be to do business of banking which should not be subsidiary to
any other business.
11. Name Identity :
A bank should always add the word "bank" to its name to enable people to know that it is a
bank and that it is dealing in money.

1.6 SERVICES OFFERED BY INDIANBANK :
1. Advancing of Loans :
Banks are profit oriented business organizations. So they have to advance loan to public and
generate interest from them as profit. After keeping certain cash reserves, banks provide
short-term, medium-term and long-term loans to needy borrowers.
2. Overdraft :
Sometimes, the bank provides overdraft facilities to its customers though which they are
allowed to withdraw more than their deposits. Interest is charged from the customers on the
overdrawn amount.
3. Discounting of Bills of Exchange :
This is another popular type of lending by the modern banks. Through this method, a holder
of a bill of exchange can get it discounted by the bank, in a bill of exchange, the debtor
accepts the bill drawn upon him by the creditor (i.e., holder of the bill) and agrees to pay the
amount mentioned on maturity. After making some marginal deductions (in the form of
commission), the bank pays the value of the bill to the holder.When the bill of exchange
matures, the bank gets its payment from the party, which had accepted the bill.
4. ChequePayment :
Banks provide cheque pads to the account holders. Account holders can draw cheque upon
bank to pay money. Banks pay for cheques of customers after formal verification and official
procedures..
5. Collection and Payment Of Credit Instruments :
In modern business, different types of credit instruments such as bill of exchange, promissory
notes, cheques etc. are used. Banks deal with such instruments. Modern banks collect and pay
different types of credit instruments as the representative of the customers.

6. Foreign Currency Exchange :
Banks deal with foreign currencies. As the requirement of customers, banks exchange foreign
currencies with local currencies, which is essential to settle down the dues in the international
trade.
7. Consultancy :
Modern commercial banks are large organizations. They can expand their function to
consultancy business. In this function, banks hire financial, legal and market experts who
provide advices to customers in regarding investment, industry, trade, income, tax etc.
8. Bank Guarantee :
Customers are provided the facility of bank guarantee by modern commercial banks. When
customers have to deposit certain fund in governmental offices or courts for specific purpose,
bank can present itself as the guarantee for the customer, instead of depositing fund by
customers.
9. Remittance of Funds :
Banks help their customers in transferring funds from one place to another through cheques,
drafts, etc.
10. Credit cards :
Credit card are cards that allow their holders to make purchases of goods and services in
exchange for the credit cards provider immediately paying for the goods or service, and the
card holder promising to pay back the amount of the purchase to the card provider over a
period of time, and with interest.
11. ATMs Services :
ATMs replace human bank tellers in performing basic banking functions such as deposits,
withdrawals, account inquires. Key advantages of ATMs include:
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24 hour availability
Elimination of labor cost
Convenience of location
12. Debit cards :
Debit cards are used to electronically withdraw funds directly from the cardholders accounts.
Most debit cards require a Personal Identification Number (PIN) to be used to verify the
transaction.
13. Online banking :
Online banking is a service offered by banks that allows account holders to access their
account data via the internet. Online banking is also known as Internet banking or Web
banking.Online banking through traditional banks enable customers to perform all routine
transactions, such as account transfers, balance inquiries, bill payments, and stop-payment
requests, and some even offer online loan and credit card applications. Account information
can be accessed anytime, day or night, and can be done from anywhere.
14. Mobile Banking :
Mobile banking (also known as M-Banking) is a term used for performing balance checks,
account transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant (PDA),
15. Accepting Deposit :
Accepting deposit from savers or account holders is the primary function of bank. Banks
accept deposit from those who can save money, but cannot utilize in profitable sectors.
People prefer to deposit their savings in a bank because by doing so, they earn interest

1.7BANKING SYSTEM IN INDIA :
The banking system in India is significantly different from other countries.
1. Reserve Bank of India:
Reserve Bank of India is the Central Bank of our country. It was established on 1 st April 1935
under the RBI Act of 1934. It holds the apex position in the banking structure. RBI performs
various developmental and promotional functions. It has given wide powers to supervise and
control the banking structure. It occupies the pivotal position in the monetary and banking
structure of the country. In many countries central bank is known by different names.
For example, Federal Reserve Bank of U.S.A, Bank of England in U.K. and Reserve Bank of
India in India. Central bank is known as a bankers bank. They have the authority to
formulate and implement monetary and credit policies. It is owned by the government of a
country and has the monopoly power of issuing notes.
2. Commercial Banks:
Commercial bank is an institution that accepts deposit, makes business loans and offer related
services to various like accepting deposits and lending loans and advances to general
customers and business man. These institutions run to make profit. They cater to the financial
requirements of industries and various sectors like agriculture, rural development, etc. it is a
profit making institution owned by government or private of both.
Commercial bank includes public sector, private sector, foreign banks and regional
rural banks:
a. Public sector banks:
It includes SBI, seven (7) associate banks and nineteen (19) nationalized banks. Altogether
there are 27 public sector banks. The public sector accounts for 90 percent of total banking
business in India and State Bank of India is the largest commercial bank in terms of volume
of all commercial banks.
b. Private sector banks:
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Private sector banks are those whose equity is held by private shareholders. For example,
ICICI, HDFC etc. Private sector bank plays a major role in the development of Indian
banking industry.
c. Foreign Banks:
Foreign banks are those banks, which have their head offices abroad. CITI bank, HSBC,
Standard Chartered etc. are the examples of foreign bank in India.
d. Regional Rural Bank (RRB):
These are state sponsored regional rural oriented banks. They provide credit for agricultural
and rural development. The main objective of RRB is to develop rural economy. Their
borrowers include small and marginal farmers, agricultural labourers, artisans etc. NABARD
holds the apex position in the agricultural and rural development.
3. Co-operative Bank:
Co-operative bank was set up by passing a co-operative act in 1904. They are organised and
managed on the principal of co-operation and mutual help. The main objective of cooperative bank is to provide rural credit.The cooperative banks in India play an important role
even today in rural co-operative financing. The enactment of Co-operative Credit Societies
Act, 1904, however, gave the real impetus to the movement. The Cooperative Credit
Societies Act, 1904 was amended in 1912, with a view to broad basing it to enable
organisation of non-credit societies.
Three tier structures exist in the cooperative banking:
i. State cooperative bank at the apex level.
ii. Central cooperative banks at the district level.
iii. Primary cooperative banks and the base or local level.
4. Scheduled and Non-Scheduled banks:
A bank is said to be a scheduled bank when it has a paid up capital and reserves as per the
prescription of RBI and included in the second schedule of RBI Act 1934. Non-scheduled
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bank are those commercial banks, which are not included in the second schedule of RBI Act
1934.
5. Development banks and other financial institutions:
A development bank is a financial institution, which provides a long term funds to the
industries for development purpose. This organisation includes banks like IDBI, ICICI, IFCI
etc. State level institutions like SFCs SIDCs etc. It also includes investment institutions like
UTI, LIC, and GIC etc.
1.8 CLASSIFICATION OF BANKS:

Banks can be classified into various types on the basis of their functions, ownership,
domicile, status, etc. The main types of banks in Pakistan are as under:
Classification On The Basis Of Functions:

On the basis of functions or activities, the banks can be classified as follows:
Central Bank:
The most important bank in a country is the central bank. It stands at the top of all other
banks. The main aim of a central bank is to maintain monetary and economic stability of a
country. It enjoys the monopoly of note issue. Every country has a central bank of its own
with different names.
The State Bank of Pakistan, the Reserve Bank of India, the Bank of England and the Federal
Reserve System of America are the names of some of the central banks of different countries.
Commercial Bank:
Commercial banks are the most common type of banks.Theyconduct their business purely on
profit motive. The main function of a commercial bank is to accept deposits from those who
have surplus funds and lend on interest to those who require funds. The National Bank of
Pakistan, the Habib Bank Limited, the Muslim Commercial Bank Limited, the United Bank
Limited, are some of the examples of commercial banks in Pakistan.
Industrial Bank:
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Industrial banks are those which meet the long-term credit needs of industries. The leading
countries of the world have separate industrial banks to provide industrial finance. Industrial
Development Bank of Pakistan was established in 1961 to provide long-term finance for the
promotion of industries. The Industrial Bank of Japan, the Industrial Mortgage Bank in
Finland the Industrial Development Bank of Pakistan are the examples of industrial banks.
Agricultural Bank:
Agricultural banks provide long-term, medium-term and short-term finance to agriculture
sector. ZaraiTaraqiati Bank of Pakistan, the Federal Land Bank of America,theAgricultural
Mortgage Corporation in England are some of the examples cf agricultural banks.
Exchange Bank:
The exchange banks are those specialized banks which carry on foreign exchange business.
Foreign trade transactions are settled through these banks. Exchange banks purchase, sell and
collect foreign bills, issue letter of credit, facilitate foreign remittances through bank draft,
telegraphic transfer, etc.
Saving Bank:
The principal aim of saving banks is to collect and pool together the scattered savings of the
community. Saving banks are usually departments of commercial banks. There may be
separate saving-banks in some countries of the world. In Pakistan, there is-no saving bank.
Commercial banks and post offices carry on saving banks functions. The saving banks invest
funds in the safest government securities.
Investment Bank:
Investment banks purchase and sell shares, bonds and securities. They assist joint stock
companies and government bodies to raise money through the sale of shares and bonds.
Investment banks also perform the usual banking functions of receiving deposits and
advancing loans. Investment Corporation of Pakistan and National Investment Trust Ltd.
(N.I.T) are serving as investment banks in Pakistan.
Mortgage Bank:
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Mortgage banks provide long-term loan against the mortgage of agricultural lands, houses
and other such immovable property. House Building Finance Corporation is working as
mortgage bank in Pakistan to provide funds for house building.
Micro-finance bank:
The main objectives of micro-finance banks is to provide small loans to small traders, the
loans are granted for short-term and medium terms. In Pakistan micro-finance banks and
Khush-hali bank are the examples of this type of bank.
Classification On The Basis Of Ownership :

On the basis of ownership, banks can be classified as follows:
Public sector bank:
The banks which are Owned and controlled by the government of a country are called public
sector banks.For example.National Bank of Pakistan Ltd. and.First Women Bank Ltd.
Private sector bank:
The banks which are owned and operated by the private sector are called private sector
banks.For example, Al-Habib Bank Ltd.Askari Bank Ltd.KASB Bank Ltd., etc.
Co-operative bank:
The banks which are established and controlled under Co-operative Societies Act are called
co-operative banks. In Pakistan these banks are set up under the Co-operative Society Act
1925. These banks are very essential for improving the conditions of rural agriculturists and
small producers.
They are not profit making institutions. The Federal co-operative bank, Punjab provincial
cooperative bank Ltd., Sind Provincial Co-operative Bank Ltd., KPK Provincial Co-operative
Ltd.and Baluchistan Provincial Co-operative Bank Ltd. are the examples of co-operative
banks in Pakistan.
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Classification On The Basis Of Domicile :
On the basis of domicile, the banks can be divided into two types as follows:
Domestic bank:
The banks which are registered and incorporated within the country are called domestic
banks. These banks provide financial assistance domestically. In Pakistan the banks registered
under Pakistan Companies Ordinance 1984 and regulated under Pakistan Banking Companies
Ordinance - 1962 are called domestic banks. National Bank of Pakistan Ltd, Habib Bank Ltd,
Askari Bank Ltd,etc, are the domestic banks in Pakistan.
Foreign banks:
The banks which have their origin and head offices in the foreign country are called foreign
banks. Foreign banks are the branches of the banks incorporated abroad. The Standard
Chartered Bank Ltd, National and Grindlays Bank Ltd, Al-Falah Bank Ltd, are some
examples of foreign banks.
Classification On The Basis Of Status :

On the basis of status, the banks can be classified as follows:
Scheduled bank:
A bank which is included in the list of banks maintained by the central bank of the country is
called scheduled bank. A bank, in order to be scheduled, has to fulfill certain conditions. It
should co-operate with the central bank in making its monetary policy successful. A
scheduled bank may be commercial bank, industrial bank, agricultural bank or an exchange
bank.
CHAPTER : 2. INTRODUCTION OF ANDHRA BANK
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2.1 INTRODUCTION OF ANDHRA BANK :
Andhra Bank is a medium-sized public sector bank (PSB), with a network of 1,712 branches,
15 extension counters, 38 satellite offices and 1056 automated teller machines (ATMs) as on
march 31, 2012. Andhra Bank was founded by the eminent freedom fighter, Dr.
BhogarajuPattabhiSitaramayya. The Government of India owns 51.55% of its share capital
and is going to increase it to 58% by infusing 1100 crore. The state owned Life Insurance
Corporation of India holds 10% of the shares.
The bank has done a total business of Rs. 1,90,535crore as on 31.03.2012. The bank's
operations are mostly concentrated in southern India, the region accounts for over 60% of the
banks advances and deposits.
Bank is migrating to "Centralized Core Banking Solution"118 Branches have already
migrated to CBS. It is proposed to cover 550 branches by September 2009. This will benefit
the customers, who will have access to banking and financial services anytime, anywhere
through multiple delivery channels. Andhra Bank is a pioneer in introducing Credit Cards in
the country in 1981.
The Bank introduced Internet Banking Facility (AB INFI-net) to all customers of cluster
linked branches. Rail Ticket Booking Facility is made available to all debit card holders
through IRCTC Website through Telugu Languages communicating Bank's image and
information. Bank has been given 'BEST BANK AWARD' a banking technology award by
IDRBT, Hyderabad for extensive use of IT in Semi Urban and Rural Areas on 02.09.2010.
IBA Jointly with TFCI has conferred the Joint Runner-up Award to the Bank in the Bet
Payments a separate gateway. Corporate Website is available in English, Hindi and initiative
in recognition of outstanding achievement of the Bank in promoting ATM Channel. Bank
successfully conducted " Bancon 2010", a two day event at Hyderabad, deliberating on
Inclusive Growth - A New Challenge. Kiddy Bank Scheme, with insurance benefits, was relaunched to inculcate savings habit among the children. Bank has mobilized nearly 90000
new accounts during 2011-08.
As a part of "Financial Inclusion", Bank adopted two districts, namely, Srikakulam in Andhra
Pradesh and Ganjam in Orissa and achieved 100% coverage. Bank has introduced Smart Card
Scheme Pilot project in Warangal District and the same will be extended to other Lead
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Districts in due course. Bank has opened 2.11 lakh accounts under "No-frill accounts"
category till 30.06.2008.
Andhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB
and SBH sponsored the Andhra Pradesh Banker's Institute of Entrepreneurship Development,
which will offer training to unemployed youth for improving their skills in Andhra Pradesh.
Bank adopted Gundugolanu village, West Godavari District, Andhra Pradesh - birth place of
Dr. BhogarajuPattabhiSitaramayya for all-round development. A comprehensive budget with
an outlay of Rs.5.50 Crore is finalized for improving health, sanitation, education and social
service facilities in the village.
ANDHRA BANK MASCOT

2.2 HISTORY OF ANDHRA BANK :
Dr. BhogarajuPattabhiSitaramayya founded Andhra Bank in 1923 in Machilipatnam, Andhra
Pradesh. The bank was registered on 20 November 1923 and commenced business on 28
November 1923 with a paid up capital of 100,000 (US$1,500) and an authorized capital of
1 million (US$15,000) In 1956, linguistic division of States was promulgated and
Hyderabad was made the capital of Andhra Pradesh. The registered office of the bank was
subsequently shifted to Andhra Bank Buildings, Sultan Bazar, Hyderabad. In the second
phase of nationalization of commercial banks commenced in April 1980, the bank became a
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wholly owned Government bank. In 1964, the bank merged with Bharat Lakshmi Bank and
further consolidated its position in Andhra Pradesh.
India First Life Insurance Company is a life insurance company in India. It is a joint venture
between two of Indias public sector banks Bank of Baroda (44%) and Andhra Bank (30%),
and UKs financial and investment company Legal &General(26%). It was incorporated in
November 2009. It has its headquarters in Mumbai. India First Life made more than 2
billion (US$30 million) in turnover in just four and half months since the insurance company
became operational. India First Life insurance company is headquartered in Mumbai. India
First is the first life insurance company to be recommended for ISO certification within 7
months of inception.
2.3 CORPORATEIDENTITY :
TOGETHERNESS IS THE THEME
The Symbol of Infinity denotes a Bank that is prepared to do anything, to go to any
lengths, for the customer

The Blue pointer on the top represents the philosophy of a Bank that is always
looking for growth and newer directions.

The Key hole represents Safety and Security
The Chain indicates togetherness
The colors Red and Blue denote dynamism and solidity
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VISION:
Andhra Bank is committed to create a customer centric organization with a deep sense of
social responsibility and to continuously leverage technology to attain world class standards
of performance.
MISSION:
Beside the core activity of banking, Andhra Bank will venture into a spectrum of Financial
Services. Utmost concern will be accorded to customer satisfaction by offering innovative
and need-based financial products and services using state of the art technology.
PRODUCTS AND SERVICES:

The products and services provided by the bank are mainly categorized into businesses of
Retail, Corporate, NRI, MSME, and Agricultural industries. Under the Retail Business, the
bank offers Deposits, Loans, Cards, DMAT Services, Payment Services, Insurance, and
Mutual Funds to individual customers. Under the Corporate Business, the bank offers Loans
& Advances, Project Appraisal services, and Syndication of Loans to the business entities.
Under the NRI business segment, the bank offers Deposit schemes, Loans, Remittance
services, and Investment services to the Non Resident Indians.
Under the MSME business segment, the bank offers different schemes that aimed at
providing loan and transaction services to Micro Small and Medium Enterprises (MSME).
Some of the MSME schemes available are OTS Scheme, Composite loan scheme, Open cash
credit (OCC), Artisans Credit Card (ACC), AB LaghuUdhyami Credit Card (LUCC), AB
Power Tools (Shakti), Technology upgradation fund scheme (TUFs), Credit guarantee fund
trust for small industries (CGTSI), AB Doctor Plus...etc. Under the Agriculture business
segment, bank provides different credit schemes to farmers, Women Empowerment schemes,
and Andhra Bank Rural Development Trust (ABRDT) helps Rural Self Employment Training
Institutes (RSETIs).
Deposit Schemes
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AB Savings Accounts
AB Current Accounts
AB Term Deposits
AB Arogyadaan Scheme
AB Bancassurance Life
AB Bancassurance (Non Life)
Retail Loans
Agricultural Loans
Corporate Banking
NRI Banking
NRI Products and Services
NOSTOR details for remittance
Western Union Money Transfer
Technology Products
Multi City Cheque Facility
On-Line Tax Accounting System (OLTAS)
Real Time Gross Settlement (RTGS)
Instant Funds Transfer
ATM Services
Any Branch Banking
Electronic Clearing Service (ECS)
National Electronic Funds Transfer

VALUE ADDED SERVICES:
Introduced 8 a.m. to 8 p.m. and 7 day banking in select branches to extend the Service
hours to clientele.
Opened a Representative Office in Dubai to coordinate with NRIs for increasing our
NRI customer base.

Imparting training to Agriculturists, Rural Un- employed youth on vocational courses
by our 9 Rural Development Institutes.

Mobile Banking Connected branches improved to 453, registered users 4175
Daily ATM hits crossed 1 lakh per day.
Mobile Recharging facility
Tech savvy products such as e-Seva, e-Hundi, Utility Bill Payment, Visa Electron
Debit Card, Instant Funds Transfer, On-line Tax Accounting System, RTGS etc.
Various Insurance Linked Deposit products like AB JeevanAbhaya, AB
JeevanPrakash, AB JeevanPrakash Plus, AB Arogyadaan and AB Flex.

New Tech savvy product AB KisanVikas ATM Card has been introduced.
Shortly introducing Internet Payment Gateway, Internet Banking.
PIONEERING EFFORTS :
Andhra Bank is the first bank in India to have launched mobile biometric ATMs. These ATMs
stop at predestinated sites, and instead of entering the personal identification number (PIN), the
customers have to match their finger prints with their recorded finger prints in the bank database.
This has enabled even the illiterate or uneducated customers of the bank to enjoy the ATM facility
being offered by the bank.
SOCIAL ACTIVITIES :
As an initiative to empower the society, the bank has established 10 Rural Training Institutes,
which have provided training to 76,300 candidates for getting successfully self employed. The
institutes offer free training, lodging, boarding facilities coupled with to and fro travel
expenditure to the candidates undergoing the training programmes.
2.4 INTERNATIONAL EXPANSION :

Andhra Bank opened a representative office in Dubai in May 2006 and another at Jersey City,
New Jersey (USA), in June 2009. A foothold in New Jersey is strategic for the bank as the
state has a large number of Indians from Andhra Pradesh.
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In 2010 Malaysia awarded a commercial banking license to a locally incorporated bank to be
jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank,
India BIA Bank (Malaysia), will have its headquarters in Kuala Lumpur, which has a large
population of Indians. Andhra Bank will hold a 25% stake in the joint-venture. Bank of
Baroda will own 40% and IOB the remaining 35%.
Andhra Bank entered MoU with Bank of Baroda and Legal & General Group of UK to form
a joint venture life insurance company India First Life Insurance Company. The shareholders'
agreement has already been signed and necessary formalities are being completed for setting
up of the company. The JV Company is already incorporated in June'08 and is in the process
of filing for approvals from IRDA etc. India First has commenced operations.
AWARDS :Andhra Bank was ranked 532nd for the year ended 31 March
2007 amongst Top 1000 Banks in the world by "The Banker" a Londonbased publication based on Tier I Capital as defined by Basel's Bank for
International Settlements (BIS).
COMMUNITY INVOLVEMENT :
Andhra Bank, along with A P State Government, NABARD, Canara Bank, Indian Bank, IOB
and SBH sponsored the Andhra Pradesh Banker's Institute of Entrepreneurship Development,
which will offer training to unemployed youth for improving their skills in Andhra Pradesh.
Andhra Bank adopted Gundugolanu village, West Godavari District, Andhra Pradesh the
birthplace of its founder, Dr. BhogarajuPattabhiSitaramayya. A comprehensive budget with
an outlay of 55.5 million (US$820,000) is finalized for improving health, sanitation,
education and social service facilities in the village.
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SWOT ANALYSIS
S0TRENGTHS
Axis bank has been given the rating as one of top three positions in terms of fastest
growth in private sector banks
Financial express has given number two position and BT-KPMG has rated AXIS bank
as the best bank with some 26 parameters
The bank has a network of 1,787 domestic branches and 10,363 ATMs
The bank has its presence in 971 cities and towns
The banks financial positions grows at a rate of 20% every year which is a major
positive sign for any bank
The companys net profit is Q3FY12 is 1,102.27 which has a increase of 25.19%
growth compared to 2011
WEAKNESSES
Gaps Majorly they concentrated in corporate, wholesale banking, treasury services,

retail banking
Foreign branches constitute only 8% of total assets
Very recently the bank started focusing its attention towards personal banking and
rural areas
The share rates of AXIS bank is constantly fluctuating in higher margins which makes
investors in an uncomfortable position most of the time
There are lot of financial product gaps in terms of performance as well as reaching out
to the customer
OPPORTUNITIES
Acquisitions to fill gap
In 2009, Alliance with Motilal Oswal for online trading for 10 million customers
In 2010, acquired Enam Securities Pvt Ltd broking and investment banking
23
In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business
No. of e-transactions increased from 0.7 million to around 2 million
Geographical expansion to rural market 80% of them have no access to formal

lending
46% use informal lending channels
24% unregulated money lenders
Now number of branches increased to 1787.
Last quarter there were 48 new branches opened across the Nation
Since its a new age banking there are lot of opportunities to have the advance
technicalities in banking solutions compared to existing major players
The assets in their international operations are growing at a very faster pace with a
growth rate of 9%.
The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response
in terms of attracting new customers in personal banking segment
THREATS
Since 2009, RBI has increased CRR by 100 basis points
Increased repo rate reverse repo rate by 50 points 11 times of late
Increasing popularity of QIPs due to ease in fund raising
RBI allowed foreign banks to invest up to 74% in Indian banking
Government schemes are most often serviced only by govern banks like SBI ,Indian
Banks, Punjab National Bank etc
ICICI and HDFC are imposing strong threats in terms of their expansion in customer
base by their aggressive marketing strategies
24

CHAPTER : 3. ANDHRA BANK FINANCIAL PERFORMANCE.
3.1 ANDHRA BANK FINANCIAL PERFORMANCE :

Andhra Bank's performance has been gladdening to its investors. As of early May 2015, the bank
held a market capitalisation of about Rs. 4385.7 crore. Heres a look at its performance over the
past four quarters In the last quarter (January - March) of FY 2014-15, Andhra Bank reported a
110.3 percent growth in net profit from the same period a year ago. The net profit for the quarter
was reported at Rs. 185.24 crore (up from Rs. 88.08 crore in Q4 FY 14). The total income also
grew by 15.8 percent to Rs. 4699.1 crore from the same quarter previous year. In the third quarter
(October - December) of FY 2014-15, the bank reported a spectacular four-fold increase in its net
profit to Rs. 202 crore (up from Rs. 46 crore net profit in the same quarter previous year). The
total income in this period grew over by 16 percent to Rs. 4540 crore from the same quarter
previous year. In the second quarter of FY 2014-15 (July - September), Andhra Bank reported
double the profit over the same period in the previous year (Rs. 144.49 crore in Q2 FY 14-15
from Rs. 70.65 crore in Q2 FY 13-14). In the first quarter of FY 2014-15 (April - June), Andhra
Bank reported 54 percent decline in its net profit from Rs. 231 crore (FY 13-14) to Rs. 107 crore.
The total income in this quarter was pegged at Rs. 4205.06 crore (up 9.1 percent). The loss was
largely attributed to a rise in bad loans due to poor monsoons.
CORPORATE SLOGAN
3.3 CORPORATE SOCIAL RESPONSIBILITY (CSR):

Being an integral part of society, Bank is aware of its corporate social responsibilities and
has engaged in community and social investments. During the year, Bank has taken many
initiatives with the objective of providing philanthropic assistance for development,
education etc.
25
Under the aegis Andhra bank rural development trust bank is imparting training to
youth in rural and semi urban areas so that poor people can take up self employment
ventures. They also conduct vocational and human resource development training. So
far they have provided training to 71,666 participants.
The bank has taken initiatives for including more people from the marginalized and
down trodden sections into the banking system. The bank has already implemented
financial inclusions in districts of Orissa and Andhra Pradesh.
During the year '07-08' the bank has adopted Gundugolanu village in Andhra Pradesh
for improving health, sanitation, education facilities with a comprehensive budget of
5.50 cr.
The bank is setting up a school in the campus of Andhra University in
Vishakhapatnam.
Along with the Andhra Pradesh Government and NABARD, it has set up APBIRED
for providing training to unemployed youth for improving their skills.

In the year 2011-2008, the bank has donated 2.14 cr to various trusts and NGOs.
Under the aegis of Andhra Bank Rural Development Trust, Bank is imparting training
to youth in rural and semi-urban areas so that the poor people can take up selfemployment ventures. This also conducts various vocational and human resource
development training programmes. So far, training has been imparted to 71,666
participants in self-employment ventures and in capacity building.
The Bank has taken initiatives towards implementing financial inclusion in some of
the districts for bringing more and more people of the marginalized and the
downtrodden sections into banking system.
The Bank has already implemented 100% financial inclusion in the districts of
Srikakulam (Andhra Pradesh) and Ganjam (Orissa). During the year 2011-08, Bank
has adopted the Gundugolanu village in the district of West Godavari in Andhra
Pradesh tor improving health, sanitation, education and social service facilities in the
village, with a comprehensive budget of Rs. 5.50 crore.
In a move towards encouraging higher studies, Bank is setting up Andhra Bank
School of Business in the campus of Andhra University, Visakhapatnam (Andhra

Pradesh).
The Bank along with Government of Andhra Pradesh, NABARD and other select banks
sponsored the Andhra Pradesh Bankers / Institute of Rural & Entrepreneurship Development
(APBIRED), which will offer training to unemployed youth for improving their skills. This is
26

located at Hyderabad. The Bank is also making donations to charitable trusts and other
institutions engaged in the upliftment of the society.
As per Karmayog.org research work they ranked Andhra Bank as No. 3 organization out of
top organizations with regard to corporate social responsibility.
3.4 TRAINING INSTITUTE :

Andhra Bank Staff College is a powerhouse of knowledge lending support to the Bank for
achievement of the corporate goals of our Bank. At the college we strive to improve the
knowledge level, responsiveness and leadership qualities of the employees by providing
quality inputs to them.
Training Philosophy :
The need of the hour is technology initiatives and trained manpower. Therefore training in
our Bank is a pro-active and continuous process as an integral part of organisational
development. It aims at imparting knowledge, improving skills and re-orienting attitude for
individual growth and organisational effectiveness.
Objectives :
To provide quality training in line with corporate goals.
To improve the competencies of the participants by focusing on job knowledge,

systems and procedures
To make the staff better team players & leaders and help them to contribute to the all
round development of the organization
To make the staff appreciate the need to improve the Bank's market share and ranking
in business
To ensure that the staff handle the branch operations more effectively and confidently
To continually improve the knowledge level, responsiveness and communication

skills of the employees.
27
To constantly monitor internal processes and work environment.
To maintain safe, clean and healthy environment in the college.
Policy Advisory Committee :

Chairman and Managing Director, Executive Director, General Manager (Personnel) and the
Principal of the Staff College form the Policy advisory Committee, which designs the policy
for training
Assessment of training needs :
Training needs are assessed through Academic council meetings and Zonal Committee
meetings before drafting of calendar of programmes. Academic council consists of the
Principal, Training faculty and Chief officers of various departments of Head office. Zonal
Consultative committee is headed by Zonal Managers, which assesses the training needs of
the Zone.
Training Methodology :
Class Room Lectures/Discussions
Drafting of Guest faculty from reputed organisations
Providing soft copy of important documents
Conducting Exit Test
Case studies, exercises
Group work & Presentation
In-basket exercise
Arranging interaction with successful Managers, Star performers and Executives
28
Simulation of branch Software
Practical Problems and Solutions
29

CHAPTER IV
Literature Review
Prashanta Athma (2000), in his Ph D research submitted at Usmania University Hyderabad,
Performance of Public Sector Banks A Case Study of State Bank of Hyderabad, made an
attempt to evaluate the performance of Public Sector Commercial Banks with special
emphasis on State Bank of Hyderabad. The period of the study for evaluation of performance
is from 1980 to 1993-94, a little more than a decade. In this study, Athma outlined the Growth
and Progress of Commercial Banking in India and. analyzed the trends in deposits, various
components of profits of SBH, examined the trends in Asset structure, evaluated the level of
customer satisfaction and compared the performance of SBH with other PSBs, Associate
Banks of SBI and SBI. Statistical techniques like Ratios, Percentages, Compound Annual rate
of growth and averages are computed for the purpose of meaningful comparison and analysis.
The major findings of this study are that since nationalization, the progress of banking in
India has been very impressive. All three types of Deposits have continuously grown during
the study period, though the rate of growth was highest in fixed deposits. A comparison of
SBH performance in respect of resource mobilization with other banks showed that the
average growth of deposits of SBH is higher than any other bank group. Profits of SBH
showed an increasing trend indicating a more than proportionate increase in spread than in
burden. Finally, majority of the customers have given a very positive opinion about the
various statements relating to counter service offered by SBH.
Zacharias Thomas(1997)Ph D Thesis, Performance effectiveness of Nationalised BankA Case Study of Syndicate Bank, submitted to Kochin University (1997), Thesis studied the
performance effectiveness of Nationalized Bank by taking Syndicate Bank as case study in
his Ph.D thesis. Thomas has examined various aspects like growth and development of
banking industry, achievements of Syndicate Bank in relation to capital adequacy, quality of
assets, Profitability, Social Banking, Growth, Productivity, Customer Service and also made a
comparative analysis of 'the performance effectiveness of Syndicate Bank in relation to
Nationalized bank. A period of ten years from 1984 to 1993-94 is taken for the study. This
study is undertaken to review and analyze the performance effectiveness of Syndicate Bank
and other Nationalized banks in India using an Economic Managerial-Efficiency Evaluation
Model (EMEE Model) developed by researcher. Thomas in this study found that Syndicate
Bank got 5th Position in Capital adequacy and quality of assets, 15th in Profitability, 14th
Position in Social Banking, 8th in Growth, 7th in Productivity and 15th position in Customer
Service among the nationalized banks. Further, he found that five nationalized banks showed
low health performance, seven low priority performance and eleven low efficiency
performance in comparison with Syndicate Bank.
30

Singh R (2003), in his paper Profitability management in banks under deregulate
environment, IBA bulletin, No25, has analyzed profitability management of banks under the
deregulated environment with some financial parameters of the major four bank groups i.e.
public sector banks, old private sector banks, new private sector banks and foreign banks,
profitability has declined in the deregulated environment. He emphasized to make the
banking sector competitive in the deregulated environment. They should prefer non-interest
income sources.
Singla HK (2008), in his paper, financial performance of banks in India,in ICFAI

Journal of Bank Management No 7, has examined that how financial management plays a
crucial role in the growth of banking. It is concerned with examining the profitability position
of the selected sixteen banks of banker index for a period of six years (2001-06). The study
reveals that the profitability position was reasonable during the period of study when
compared with the previous years. Strong capital position and balance sheet place, Banks in
better position to deal with and absorb the economic constant over a period of time.
Das and Udaykumar Lal (2002), in his book Banking Reforms in Lead Bank Scheme,
(Deep and Deep Publication, new Delhi) was the critical evaluation of the lead bank scheme
in the light of banking sector reforms. Das in this book observed that high level of NPAs,
large number of un-remunerative branches, low productivity, overstaff and archaic methods
of operations have affected the profitability of public sector banks. Das sincerely felt that the
whole banking sector in India is to be revolutionized to cope with the changing dimensions of
the satellite one world. Further, he felt that the backward areas should be given more funds
for investment in priority sectors and more and more people should be brought under its
coverage and the procedures of extending credit should be simplified and there should be
least hassle cost.
Subramanian and Swami (1994) in their paper, Comparative performance of publc

sector banks in india Prjanan, Vol. XXII, have analyzed and compared the efficiency in
six public sector banks, four private sector and three foreign banks for the year 1996-97.
Operational efficiency is calculatedin terms of total business and salary expenditure per
employee. The analysis revealed that higher per employee salary level need not result in poor
efficiency and business per employee efficiency co-efficient was also calculated. Among the
PSBs, Bank of Baroda registered the high efficiency and operating profit per employee.
Among the private sector banks Indus Bank followed by Citibank Registered highest and
second highest operating profit per employee respectively. However, among the Nationalized
Banks there existed wide variations in efficiency.
31

SBI Research Department in 2000, Frequent changes are order of the day for the topics of
this nature. Therefore, one should rely on latest information. Some organizations like, RBI,
IBA, SBI and ICRA have carried out several research studies on various issues relating to
banking and exclusive banking journals/periodicals like Bank Quest, The Bankers, RBI
occasional papers, RBI bulletins and general magazines like Business Today, Business India,
Finance India, have been publishing papers on various aspects like NPAs, capital adequacy,
branch expansion, credit dispensation, deposit mobilization, service quality, technology,
performance evaluation, etc. Same studies and papers suitable to this study are being
reviewed here through its paper Performance analysis of 27 Public sector banks
published in SBI monthly review performance, Vol XXXIX, was prepared by Economic
Research Department of State Bank of India, is to analyze the Performance of the 27
Public Sector Banks for the year 1999-2000 vis-a-vis the preceding year. Selecting four
different categories of indicators-Business Performance, Efficiency, Vulnerability and labor
productivity indicators, carried out the analysis. Altogether, 39 indicators were selected for
this purpose. For the purpose of analysis, 27 PSBs disaggregated into four groups, namely,
the SBI, ABs (7), the SBGs (8), the NBs (19). During 1999-2000, the PSBs exhibited better
show in terms of several parameters studied above. Nevertheless, the problems of NPAs and
capital adequacy remain to be taken care of. Researchers in this paper opinioned that greater
operational flexibility and functional autonomy should be given to PSBs especially to
strengthen their capital base. Further, they felt that since net interest margin will continue to
remain compressed in a deregulated interest rate regime, a lot of effect would have to be
made to mitigate this through generation of non-interest income. As far as NPAs are
concerned, they believe' that, the outdated laws and regulations that pose hindrance to banks
in getting back their dues need to be suitably amended.
In a paper published in the Financial Express in 2004, titled Indias Best Banks has
been doing for several years through its annual exercise to evaluate and rate Indian banks.
They claim that this survey is a comprehensive one, which evaluates the performance of
private, public, Indian, and foreign Banks operating in India. With the objective of making
the comparison more meaningful, Banks were categorized into Public Sector Banks, New
Private Sector Banks and Foreign Banks. Financial information for the year ending March
31st, 2002 and March 31, 2003 relating to each of the banks falling into the aforesaid
categories was collected from the data available from RBI. Five major criteria were identified
against which the banks were ranked. 'These criteria are (1) Strength and soundness (ii)
Growth, (iii) Profitability, (iv) Efficiency/Productivity, and (v) Credit quality. Considering the
current banking, industrial and over-all economic scenario, pertinent weights were assigned
to each of the major criteria. In the first category of "State-Run or Public Sector Banks, State
Bank of Patiala and Andhra Bank is the top two. In the category of best old private sector
banks, the magazine ranks the Jammu and Kashmir Bank and Karur Vysya Bank as the first
best and second best. In the category of 'New' Private Banks, HDFC as number one and
ICICI Bank at number two. Finally, in the category of Foreign Banks, the magazine ranks
Standard Chartered Bank and Citi Bank at the top two slots.
32

With an intention to honor excellence, Outlook Money (2004), titled The best in the
business cover story, (March 2004), has announcing annual awards for the best performers
in the personal finance universe. In the best bank award category, the magazine selected
Corporation Bank among public sector banks and HDFC Bank among private sector
banks and presented outlook money award 2004 to these two banks. A rigorous selection
process was devised in consultation with Earnest and Young. The short listed contenders were
mailed questionnaires seeking information on operational aspects like Number of Branches,
Number of ATMs, Deposits, NPAs, CAR, Return on Assets. They have taken two categories
of Banks Public and Private Sector. All Public Sector Banks (except SB!, nominated for Hall
of Fame Award), and Private Banks with deposit base of more than Rs. 2,000 Cr as on 31
March 2003 were selected. The jury-A.K. Purwar, Anu Aga, Shitin Desai, Uma Shashikanth
and Sandipan Debo-assigned weights to various parameters and choose the winner for 2004.
Ram Mohan TT(2003) , in his paper Long run performance of public and private sector
bank stocks Vol 37, has made an attempt to compare the three categories of banks-Public,
Private and Foreign-using Physical quantities of inputs and outputs, and comparing the
revenue maximization efficiency of banks during 1992-2000. The findings show that PSBs
performed significantly better than private sector banks but not differently from foreign
banks. The conclusion points to a convergence in performance between public and private
sector banks in the post-reform era, using financial measures of performance
D'souza in his study evaluated the performance of Public sector, private sector and
foreign banks during the period 1991 to 1999-2000.The efficiency of the banking
system was measured in terms of spread/working funds ratio and turnover / employees
ratio. With reference to the spread working funds ratio, the efficiency of the commercial
banks as a whole has declined in the post-reform period. The Public Sector Banks have been
responsible for this decline in efficiency, as the efficiency of the private and foreign banks has
improved over the course of 1990s. Through the turnover/employee ratio has risen in the
public sector banks, the turnover per employee in the private and foreign banks doubled
relative to the ratio for public sector banks during this decade. However, the analysis revealed
that the profitability of the public sector banks in late nineties improved relatively to that of
private and foreign banks.
Kusum W. Ketkar examined the efficiency and productivity growth in the Indian
Banking Sector from 1990 to 1995 using the Data Envelopment Analysis methodology. Due
to data availability problems at the individual bank level, the study includes only 39 banks.
Several conclusions stand out. First, for the sample, the overall technical inefficiency is about
31 per cent and has remained stable over the examined period. Second, foreign banks showed
33

the highest level of efficiency. Third, between 1990 and 1995, state and private banks
experienced a reduction in pure technical efficiency, while for the nationalized and the
foreign banks, it remained the same. Further, the size has found to be positively related to
pure technical efficiency, and to the number of branches negatively. Fifth, fewer branches and
metropolitan location of foreign banks, perhaps partially explains their efficiency over
domestic banks. This paper finally concludes that Indian domestic banks need to greatly
improve their efficiency through introduction of computer technology, improved management
skills and through consolidation and merger of banks.
Alamelu and Chidambaram emphasized the profiti1bility aspect in commercial banks.

In this paper, the scholar analyzed and compared the performance of public and private sector
bank on profitability angle. It was found that all the private sector banks have been registered
both high profits and high rate of growth. Better customer service, technology, innovative
products, good marketing strategies, proper monitoring of advances, regional orientation are
some of factors responsible for the success of private sector banks in India.
34

CHAPTER V
Finding& Analysis
Q.1 Which are group do you belong (Age wise) ?
Less than 25
25 to 40
40 to 55
Above 55
Interpretation :
After looking this bar graph, it can be said the middle-aged group are the main
customer of the banks as they occupied almost 75% of this graph. The bank has a huge
potential in terms of the untapped market Young and old age group people. High pay
packages to todays employed youth and large saving with the old age people
(especially in urban areas) has made them attractive potential customers.
35

Q.2 What is your occupation?
Service
Business
Student
Others
Interpretation :
Most of the service class people prefer to open a Savings Account in comparison to
the business class people. This may be possible due to the facility of Anywhere
Banking suiting their needs and preferences.
36

Q.3 Please specify your annual income?
Less than 1 lakh

1 to 2 lakh
2 to 3 lakh
3 to 4 lakh
More than 4 lakh
Interpretation:
Income does not make any difference as far as opening the account in the Andhra
Bankis concerned, as the bar diagram is vividly revealing that more or less people of
every segment of income group have opened and are opening the account expert one
group i.e. lower income group where emphasis is required to penetrate this group so it
can be said that the target group of the axis bank, specially for saving account are of
every segment of income group since its is devoted to render best services to its
costumer.
37

Q.4 what features/attributes, while opening an account do you expect
from a bank?
Quick Services
Proper information
Working hours
Less Formalities
Variety of Product
Interpretation:
When a customer visits any bank the first and foremost thing he expects is the
quickness of service and the promptness in entertaining by the bank employee. Second
thing customer wishes to have is proper information regarding his queries. One this in
this bar also really significant is, factor like less formalities of document while
opening an account. Varieties of product do not make a big impact on customer
behavior for opening an account in any bank if its services are efficient. But on the
other hand bank cant ignore working hours. As in this bar customer has erred it. For
these services like bank preference should be given to make a prompt and customer
friendly service channel. For this focus must be given to make well informed and
proactive employee along with work should be executed technologically rather than
manually.
38

Q.5 What kind of account do you have in Andhra Bank?
Saving Account
Current Account
Fixed Deposits
NRL Account
Others
Interpretation :
Saving account is the leading and attractive product for the Andhra Bankas it occupies
a major chunk in this bar. It is clearly implying that this product has the ability to
satisfy the customers. On the second had and the positions current accounts and fixed
deposits has also been helpful to increase the customer base but still their
performances needs to be improved. One thing in this bar which is significant is the
business of the bank is relying on only few leading products, reason for this could be,
neither it has limited range of products nor rest of the product does not have much
ability to penetrate in the stiff market of banking of Jaipur. That is giving an alarming
message to the management of the bank to go or analyzing the situation very minutely
and must ascertain where things are going wrong and for that what short of necessary
step could be taken. Providing better services in comparison with the competitors is a
must for excelling in industry.
39

Q.6 Who influenced to open an account in Andhra Bank?
Friend and Relative

Advertisement
Bank Employees
Prospectus
Interpretation :
As it is said a satisfied customer is the best medium for advertisement since in this bar
friends and relatives have play a key role in opening the accounts for others, which
implies that bank real customer are satisfied enough with the facilities available on the
products and the services enjoyed by them. An advertisement and bank employees
more or less has been good performer in their respective domain. It reveals
advertisement of different medium, as been a key factor in generating the awareness
about banks product as well as facilities that are made to available on then in the
peoples mind.
40

Q.7 Your remark on products of Andhra Bank?
Excellent
Good
Average
Poor
Interpretation :
As this bar is showing at what level people are saved with saving account, with its
unique facilities features, and ability to serve all the needs of customer because by and
large it can be said 75% people are saving good to savings accounts, this implies that
this product has been a leading product and still an attractive product of the Axis bank.
Reason for this could be different type of facility associated with this product, which
are reading true value to the customer and marketing people are also very much
devoted to give the best from this part. Efforts must be given to know why they are
people who are still saying average and poor about saving accounts and what are the
factors that are going wrong with that segment of people.
41

Q.8
In comparison to other bank how would you rate Andhra Bank?
Excellent
Good
Average
Poor
Cant Say
Interpretation :
Rating of any bank depends on its overall performance in the eye of the people. This
bar is vividly showing that the performance of Andhra Bankhas been good because in
such a short span of its existence in this city with strong competition from major
public sector bank like SBI and other private banks, Reason for this could be, it has
occupied a different position in the people mind with its customer friendly products
and to serve them a efficient and prompt banking system.
42

Q.9 How long did your wait in queue ?
0-5 Minute
5-10 Minute
More than 10
Minute
Interpretation :
As this bar graph showing 57% people wait in queue 0-5 minutes. While it should be
100% people.
43
44

Q.10 Do you think the number of counters available are sufficient?
Yes
No
Interpretation:
As this bar graph showing 82% people are sufficient. While it should be 100% people.
45

CHAPTER VI
46

Project On Andhra Bank: Chapter: 1. Introduction of Bank

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CHAPTER: 1. INTRODUCTION OF BANK

1.1 INTRODUCTION OF BANK :