Project Report

On
AXIS Bank
Table of Contents
Introduction.................................................................................................................................................3
EVOLUTION:................................................................................................................................................4
Mangaement of AXIS Bank..........................................................................................................................5
MISSION AND VALUES:................................................................................................................................5
Operations...................................................................................................................................................6
Cheque transaction system (CTS)............................................................................................................6
Transfer cheques.....................................................................................................................................7
Cash transactions.....................................................................................................................................7
Customer service in Banking Operations-....................................................................................................8
Customer queries........................................................................................................................................9
Products....................................................................................................................................................10
Accounts................................................................................................................................................10
Deposits:................................................................................................................................................10
Loans:....................................................................................................................................................10
Investments:..........................................................................................................................................11
Insurance:..............................................................................................................................................11
SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:...........................................................................11
Retail banking............................................................................................................................................13
Personal banking...................................................................................................................................14
Corporate banking.....................................................................................................................................14
Current Account....................................................................................................................................14
Corporate Salary Account......................................................................................................................14
Priority Banking.....................................................................................................................................15
SWOT ANALYSIS.........................................................................................................................................16
Introduction

Axis Bank, previously known as UTI Bank, is one of the Big Four Banks of India along with State
Bank of India, HDFC Bank and ICICI Bank. Established in 1994, it's the first of the new private
sector banks in India to start its operations, when Government of India opened the gate for the
private banks to flock into the Indian financial market. Though the bank started its operation
with the name UTI Bank, but later, in order to avoid ambiguities and confusion with other
discrete entities carrying the same name, it changed its name to its current form (Axis Bank) in
April 2007.

Axis Bank Limited recorded a total income of `13,745.04 crore as on the year ended March 31,
2009. It also made a net profit of ` 1,812.93 crore in the same financial year.

Joint Promotion

Axis Bank was jointly promoted by the following:

 Unit Trust of India (UTI-I)

 Life Insurance Corporation of India (LIC)
 General Insurance Corporation Ltd.
 National Insurance Company Ltd.
 The New India Assurance Company
 The Oriental Insurance Corporation
 United Insurance Company Ltd.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The
Bank has a very wide network of more than 1281 branches (including 169 Service
Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270 ATMs (as on 31st
March, 2011) providing 24 hrs a day banking convenience to its customers. This is one of the
largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to adopting the
best industry practices internationally in order to achieve excellence.

By the end of December 2004, Axis Bank in India had over 2.7 million debit cards. This is the
first bank in India to offer the AT PAR Cheque facility, without any charges, to all its Savings
Bank customers in all the places across the country where it has presence.
With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at
any of its existence place. The ceiling per instrument is Rs. 50,000/-.The latest offerings of the
bank along with Dollar variant is the Euro and Pound Sterling variants of the International
Travel Currency Card. The Travel Currency Card is a signature based pre-paid travel card which
enables traveler’s global access to their money in local currency of the visiting country in a safe
and convenient way. The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to achieve
excellence.

Axis Bank provides advance services to their customers like, better rates for Deposits, here we
use CTS for Cheque clearing, Investment facility for tax savers, Mediclaim, Personal insurances,
Vehicle insurances, Mutual funds, Forex for corporates, Home loan and Personal loan.

EVOLUTION:

UTI was established in 1964 by an Act of Parliament; neither did the Government of India own it
nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of Rs 5
crore, and given the mandate of running the UTI in the interest of the unit-holders. The State
Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital each,
and the rest was contributed by scheduled commercial banks which were not nationalized
then. This kind of structure for a unit trust is not found anywhere else in the world. Again,
unlike other unit trusts and mutual funds, the UTI was not created to earn profits.

In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in
achieving its objective and has the largest share anywhere in the world of the domestic mutual
fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes an
interesting story. The announcement by the then Finance Minister that the Government of
India was contemplating the establishment of a unit trust caught the eye of Mr. George Woods,
the then President of the World Bank. Mr. Woods took a great deal of interest in the Indian
financial system, as he was one of the principal architects of the ICICI, in which his bank, First
Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through Mr. B.K.
Nehru, who was India's Executive Director on the World Bank, the services of an expert.
The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust
proposals till the expert visited India. The only point Mr. Sullivan made was that the provision
to limit the ownership of units to individuals might result in unnecessarily restricting the market
for units. While making this point, he had in mind the practice in the US, where small pension
funds are an important class of customers for the unit trusts. The Centre accepted the foreign
expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began
corporate investment in the UTI, which received a boost from the tax concession given by the
government in the 1990-91 Budget. According to this concession, the dividends received by a
company from investments in other companies, including the UTI, were completely exempt
from corporate income tax, and provided the dividends declared by the investing company
were higher than the dividends received.
The result was a phenomenal increase in corporate investment which accounted for 57 per cent
of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the
UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby
which perhaps subtly opposed the establishment of the UTI in the public sector made use of it
for its own benefits later. The Government-RBI power game started with the finalization of the
UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be
nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the
draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the
Government, albeit in consultation with RBI. Although the appointment was to be made in
consultation with the Reserve Bank, the Government could appoint a person of its choice as
Chairman even if the Bank did not approve of him.

Mangaement of AXIS Bank

Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the
country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100
crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 23.68%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a
view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed
with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the
Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect
from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been
transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of
India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS
Bonds with a Unit Capital of over Rs. 14167.59 crores.

The Government of India has appointed Shri K. N. Prithviraj as the Administrator of the
Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where
Government has continuing obligations and commitments to the investors, which it will uphold.
MISSION AND VALUES:
OUR VALUES:
 Customer Service and Product Innovation tuned to diverse needs of individual and
corporate clientele.
 Continuous technology upgradation while maintaining human values.
 Progressive globalization and achieving international standards.
 Efficiency and effectiveness built on ethical practices.

CORE VALUES:
 Customer Satisfaction through
o Providing quality service effectively and efficiently
o "Smile, it enhances your face value" is a service quality stressed on
o Periodic Customer Service Audits
 Maximization of Stakeholder value
 Success through Teamwork, Integrity and People.

Vision

To be the preferred financial solutions provider excelling in customer delivery through insight,
empowered employees and smart use of technology

Operations

Cheque transaction system (CTS)

 Local Cheques
o All cheques and other negotiable instruments (demand draft) payable locally
would be presented through the clearing system prevailing at the center.
Cheques deposited at branch counters and in collection boxes within the branch
premises before the specified cut-off time will be presented for clearing on the
same day.
o Cheques deposited after the cut-off time and in collection boxes outside the
branch premises including off-site ATMs will be presented in the next clearing
cycle. As a policy, the bank would give credit to the customer account on the
same day on which the final clearing settlement takes place or at the most the
 next working day of their presentation in clearing. Withdrawal of amounts so
credited would be permitted as per the cheque return schedule of the
clearinghouse.
 RTGS AND NEFT
o National electronic fund transfer – is the facility for high value cheque
clearing .it is done below Rs. 200,000. Its used for payment , transfer etc.
o Real time gross settlement (RTGS) is same as NEFT but it is done above
Rs.2,00,000. This is done before 3.00 pm. It’s a facility of same day clearing.
 Outstation Cheques
o Cheques drawn on other banks at outstation centers will normally be collected
through bank's branches at those centers. Where the bank does not have a
branch of its own, the instrument would be directly sent for collection to the
drawee bank or collected through a correspondent bank.

Transfer cheques
It includes cheques of axis bank itself which are presented by customer. These type of cheques
are transferred on the same day and amount credited to the customer’s account on the same
day.

Cash transactions
A Cashier has a lot of responsibility like the balance of books should be matched, fraud notes,
counter keys. In any case cashier is liable to pay for any kind losses. In AXIS Bank at counter I
have seen the following work :

 Deposits
o For depositing money customer has to fill a pay – in slip, in that he has to
mention all the details – Account No., Name of Accountholder, Currency which
he/she wants to deposit. After taking money cashier conform that all the
information is correct and give a return slip to the customer with bank stamp.
This bank slip is the proof of his deposits. In case of Deposit if the deposit money
is below 50,000 there is no compulsion of PAN Card but if a customer want to
deposit more than into the account first he/she has to update PAN Card in their
account.

 Withdrawal
o A customer can withdraw money only through a AXIS Bank cheque. Before giving
money cashier conform the signature of the account holder and check the
cheque in UV Lamb.
  There are another payments made at cash counter like:
o Payments of LIC premium
o Other premiums
o Any kind Installments
o Fees
o Tax payment etc.

Customer service in Banking Operations-

Cheque Drop Box Facility 

RBI's Committee on Procedures and Performance Audit on Public Services has recommended
that both the drop box facility and the facility for acknowledgement of the cheques at the
regular collection counters should be available to customers and no branch should refuse to
give an acknowledgement if the customer tenders the cheques at the counters. We agree with
the recommendation and advise that it is important that there is no curtailment of the rights of
the depositor to obtain an acknowledgement by going to the concerned counter. 

Issue of Cheque Books

The Committee has observed that some banks do not allow depositors to collect their cheque
book at the branch but insist on despatching the cheque book by courier to the depositor.
Further, it is stated by the Committee that the depositor is forced to sign a declaration that a
despatch by the courier is at the depositor's risk and consequence and that the depositor shall
not hold the bank liable in any manner whatsoever in respect of such despatch of cheque book.
Committee has observed this as an unfair practice and advised banks to refrain from obtaining
such undertakings from depositors. Banks should also ensure that cheque books are delivered
over the counters on request to the depositors or his authorised representative. 

Statement of Accounts / Pass Books

The Committee has noted that banks invariably show the entries in depositors passbooks /
statement of accounts as "By Clearing" or "By Cheque". Further, in the case of Electronic
Clearing System (ECS) and RBI Electronic Funds Transfer (RBIEFTR) banks invariably do not
provide any details even though brief particulars of the remittance is provided to the receiving
bank. In some cases computerized entries use sophisticated codes which just cannot be
deciphered. 

With a view to avoiding inconvenience to depositors, banks are advised to avoid such
inscrutable entries in passbooks / statements of account and ensure that brief, intelligible
particulars are invariably entered in passbooks / statements of account. Banks may also ensure
that they adhere to the monthly periodicity prescribed by us while sending statement of
accounts. 

Customer queries

1. Related to opening of new accounts :

a. Requirements for new accounts – pan card ,addresss proof ,id proof
b. Whats they have to keep in their new accounts or whats quarterly average
balance they have to maintain?
c. How much time it will take ? etc.
2. Bank statement
3. Sign verification
4. Queries related to cheques – name mismatch, difference in signature
5. Information regarding Fixed Deposits, Insurances, Recurring Deposits, current accounts,
saving account, etc.
6. Wrongly debited amount related queries
7. Phone number updations
8. Balance inquiry
9. Stop payment
10. Related to internet banking
a. Fund transfer
b. Payments
c. Net secure

Products
Accounts
1. Savings Account
 a. Easy Access Savings Account (Banking made easy)
A :Accessibility
C :Convenience
C :Comfort
E :Earnings
S :Speed
S :Service

b. Prime Saving Account

c. Senior Citizens Saving Account
d. Trust /NGOs Saving Account
2. Resident Foreign Currency Account
3. Online Trading Account
4. Corporate Salary Account
5. Current Account
6. Priority account
7. NRI Services
8. Locker Facilities
9. Travel Currency Cards
10. Retail Loans
11. Credit Loans

Deposits:
 Fixed Deposits
 Recurring deposits
 Encash 24
 Tax Saver Fixed Deposits

Loans:
 Home loan
 Personal loan
 Loan Against Property
 Loan Against Security
 Car Loans
 Study Loans
 Two Wheeler Loan
 Consumer Loan
Investments:
 Online Trading
 Mutual Funds
 Fixed Income
 Depository Services
 E Depository Services

Insurance:
Max New York Life Insurance

 Life Insurance
o Education insurance
o Pension plan
o Hospital cash

Bajaj Allianz
 Health Guard
 General Insurance
o Mediclaim
o Vehicle insurance
o Machinery insurance
o Infrastructure insurance
o Medical insurance
o Jewellery insurance
o Fire insurance

SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:

BUSINESS CONTINUITY CENTRE:

UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC)
In Bangalore which replicates the entire centralized database with a view to enable the Bank to
run smoothly in case of any eventuality affecting the Bank’s Data Centre in Mumbai.
Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously
through WAN on the back-up database at the BCC.
CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides customers across the country
Access to the Bank over the phone, handling multiple queries in about 7000 calls per day.

CENTRALISED COLLECTION AND PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and
Payment activity under the Bank’s Cash Management Services (CMS) across the country,
handling on an average about Rs.5000 crores per month on the collection front and about
Rs.1500 crores per month on the payment front.

RETAIL ASSETS MANAGEMENT GROUP

The Bank’s Retail Assets Management Group (RAMG) is the operations hub of the entire
Retail asset distribution structure. In addition to opening and disbursing more than 3000
Schematic loans every month, it is responsible for the maintenance of more than 100,000
Such loan accounts, and handles the entire post – dated cheque presentation and several
Kinds of repayments for all these accounts.

ATM BACKEND CELL

The ATM Backend Cell handles the entire cash management and reconciliation of balances
pertaining to ATMs across the country and ends up tallying over four lakh
Transactions by the end of the day.

SERVICE BRANCHES

The Bank’s Service Branches in the 8 major metros take care of centralized clearing activity,
Handling more than one lakh cheques every day for outward and inward clearing.

DATA CENTRE

The Bank’s Data Centre in Mumbai, the centralized IT powerhouse is like the central nervous
system of the Bank. It is a real time 24x7 setup which manages 270 products and services of the
Bank with a database size of 1850 GB supporting on an average 42 lakh transactions per day to
service over 42 lakh customer accounts and adding new customers @ 8000 per day.

CENTRALISED PROCESSING UNIT

The Bank’s Centralised Processing Unit (CPU) is the backbone of the Bank, managing
production and delivery of the entire range of deliverables to customers across the country
within 24 – 72 hours from the time the customer opens the account. The CPU currently handles
about 8500 new accounts every day.

Bank business is divided into 4 segments:-

 Retail banking,
 Corporate banking,
 Treasury banking and
 Merchant banking

*Apart from this, the bank is also into insurance, investment banking, mortgage financing,
credit cards and depository services

It is also registered on the following exchanges

* OTCEI

* BSE

* NSE

*London stock exchange

Retail banking
 Deposit schemes
 Loans and advances
o Personal Loans
o Housing Loans
o Cards
o Consumer durables
o Auto Loans

Personal banking
 Accounts
 Terms deposit
 Fixed deposits
 Recurring deposits
 Cards
 o Gold plus cards,
o Visa,
o Master Card ,
o Titanium Card

Corporate banking
 Accounts

Current Account
Features: -

 Doorstep banking
 Anywhere banking
 Free internet banking
 Payment of government taxes/dues
 Foreign exchange services
 International debit card
 24- hour Cheque deposit facility
 Cheque protection facility
 RTGS and NEFT
 Free Chequebook facility.

Corporate Salary Account Offering is designed to offer payroll solutions through in a 24 X

7 environment.

Benefit to Employers:

 Efficient salary disbursal.

 Transfer salaries/reimbursements directly from your current account with Axis Bank to
your employee's accounts using I Connect from your office.
 Single-instruction salary credit - Same day salary credits for all companies having
Corporate Account with Axis Bank.
 Dedicated Relationship Manager

Benefit to Employees
  No minimum balance criteria.
 Unparalleled Access - Anywhere banking facility through our network of Branches, ATM
and Internet banking facility.
 AT Par chequebooks payable locally at all Axis Bank locations.
 International Debit cum ATM cards with enhanced Cash withdrawal facility and other
value add ons.
 Online Banking with funds transfer, online shopping and bill payment options.
 Depository services with free online trading accounts.
 Meal Cards on a master card platform.
 Employee Reimbursement accounts as a savings account variant.
 Preferential pricing on loan products and credit cards and other banking products &
services*.
 Accidental insurance cover up to Rs. 5,00,000.

Priority Banking a preferential banking experience for selective customers. AXIS Bank
believe in relationships lasting beyond mere transactions and strive to form a long -term bond
of satisfaction and trust with customer.

 Personalized services
 Priority Platinum Debit Card
 Convenience
 Services on priority
 Flexible eligibility criteria
 Special benefits to Priority Salary Customers
 Locker’s facility
 Pick and drop facility
 Accidental insurance cover up to Rs. 5,00,000.

AXIS Bank provide payroll cards facility for the corporates that will help their employees to
operate their salary and do banking who are not eligible for opening salary accounts with
banks. Payroll card facility is for labor class worker whose salary is below Rs.10, 000.

 ATM Cards
 Free Phone Banking
AXIS Bank provides facilities and Foreign Currency Cards for Non-Resident customer.

 NRE (Non- Resident External) Savings Account

 NRO (Non- Resident Ordinary) Savings Account

Features: -

 Multicity Chequebook
 Free IConnect facility
 Power of Attorney facility
 Free personal accident cover of Indian Rupees 2,00,000 on our Debit Card.
 Dedicated one-stop NRI help desk to clarify your queries.

Services

 Private equity, mergers and acquisitions

 Advisory services
 Capital market funding
 E- broking

SWOT ANALYSIS
 Strength
o Brand name
o Support of various promoters
o High level of services
o Knowledge of Indian market
 Weekness
o Not having a good image
o Market capitalization is very low
o Not been fully able to position itself correctly
 Opportunities
o Growing Indian banking sectors
o People are becoming more service oriented
o In the global market
o Dissatisfied customers
 Threats
 o From the various competitors
o Foreign banks
o Government banks
o Future market trends
o Advent of MNC banks

Financial Performance of AXIS Bank