PROJECT REPORT

ON
“An Analytical Study of Capital Structure with Special Reference to axis bank’’

Submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
For the award of degree of
Master of Business Administration
Course specialization in
Finance & marketing
Prepared by:
Kajal prafull wankhede
Guide:
Dr. Vaibhav
Bhalerao

2022 – 2023
NIT Graduate School of Management
Survey No. 13/2, Mahurzari, Katol Road, Nagpur – 441 501

1
 CERTIFICATE

This is to certify that the project report titled “(An Analytical Study of Capital Structure
with Special Reference to axis bank)” is a bonafide work of (Kajal Prafull Wankhede) who
is student of MBA (Second Year), NIT Graduate School of Management (Academic Session
2022-23). This report is being submitted in partial fulfillment of requirement for the
course of Post Graduate Degree of Masters of Business Administration (MBA) of
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur.

Your Guide Name:- Vaibhav Bhalerao

Project Guide Director

Date: 3/05/2023
Place: Nagpur

Dr. Mukesh patil

Director

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 APPROVAL OF PROJECT PROPOSAL
Name:- kajal prafull wankhede

Enrollment Roll No:- 2021016600818847

College: - NIT Graduate School of Management

Address of Student: - new Varma lay out hill top Amabazari
Nagpur-10
Project Title: - “An Analytical Study of Capital Structure with
Special Reference to axis bank’’
Subject Area: - FINANCE Management
Name of Guide: - Dr. Vaibhav Bhalerao
Dr. Mukesh Patil
Director

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 DECLARATION

I Mr. Kajal wankhede hereby declare that the project report titled, “An Analytical
Study of Capital Structure with Special Reference to axis bank’’ ” for the
period 2020-22, which
is being submitted by me in partial fulfillment of requirement for the Degree of Master
of
Business Administration of Rashtrasant Tukadoji Maharaj Nagpur University, is a
bonafide
record of work exclusively carried out by me. It is the result of my genuine efforts and
the
same has not been previously submitted towards requirements of any course or
examination
of this or any other university. The sources of material and information used in this
research
the study has been duly acknowledged and certified. I hereby further confirm that this
project
truly represents the bonafide work undertaken by me and is the outcome of thorough
and
systematic research.
Kajal wankhede

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 ACKNOWLEDGEMENT

It is a matter of pride and privilege for me to have done a summer internship project in
“Axis Bank” and I am sincerely thankful to them for providing this opportunity to me.

I am thankful to “Vaibhav Bhalerao” for guiding me through this project and

continuously encouraging me. It would not have been possible to complete this project
without his / her support.

I am also thankful to all the faculty members of NIT Graduate School of Management my
mentor ““Vaibhav Bhalerao” for helping me during the project.

Finally, I am grateful to my family and friends for their unending support.

Kajal Prafull wankhede

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 Index

Sr. No. Contents Page No.

1. History 5

2. Mission and Values 7

3. Organization Structure 8

4. Awards and Recognition 10

5. Products and Services 13

6. Performance and Market Share 15

7. Swot Analysis 16

8. Sector Size 19

9. Competitors 20

10. Developments 20

11. Government Initiatives 21

12. Regulations and regulatory bodies 22

13. Sector’s contribution to the economy 22

14. Future potential 23

15. Findings 24

16. Suggestions 24

17. Conclusions 25

18. Bibliography 25d

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History:
Axis Bank is the third-largest private sector Indian bank, and offers a range of financial
products. The bank has its head office in Mumbai, Maharashtra. It has a market capitalization
of ₹2.31 trillion (US$32 billion) (as on 31 March 2020). It sells financial services to large and
mid-size companies, SME and retail businesses.
As of 30 June 2016, 30.81% shares are owned by promoters and promoter group (United
India Insurance Company Limited, Oriental Insurance Company Limited, National Insurance
Company Limited, New India Assurance Company Ltd, GIC, LIC and UTI). The remaining
69.19% shares are owned by mutual funds, FIIs, banks, insurance companies, corporate
bodies and individual investors among others.
The bank was founded in December 1993 as UTI Bank, opening its registered office
in Ahmedabad and corporate office in Mumbai. UTI Bank began its operations in 1993, after
the Government of India allowed new private banks to be established. The bank was
promoted in 1993 jointly by the Administrator of the Unit Trust of India (UTI-I), Life
Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance
Company, The New India Assurance Company, The Oriental Insurance Corporation
and United India Insurance Company. The first branch was inaugurated on 2 April 1994
in Ahmedabad by Dr. Manmohan Singh, the then finance minister of India.
In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve Bank of
India (RBI) withheld approval and the merger did not happen. In 2004, the RBI put Global
Trust into moratorium and supervised its merger with Oriental Bank of Commerce.
In 2003, UTI Bank became the first Indian bank to launch a travel currency card. In 2005, it
was listed on London Stock Exchange. UTI Bank opened its first overseas branch in 2006 in
Singapore. That same year it opened an office in Shanghai, China. In 2007, UTI Bank opened
a branch in the Dubai International Financial Centre and branches in Hong Kong. In 2008, it
opened an office in Dubai.
On 30 July 2007, UTI Bank changed its name to Axis Bank. And in 2009, Shikha
Sharma was appointed as the MD and CEO of Axis Bank.
Axis Bank opened a branch in Colombo, Sri Lanka in October 2011, as a Licensed
Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank
opened an office in Abu Dhabi. In 2011, Axis bank inaugurated Axis House, its new
corporate office in Worli, Mumbai.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis Bank
UK has a branch in London.
In 2014, Axis Bank launched its first ‘All Women Branch’ in Patna.
On January 1, 2019, Amitabh Chaudhry took over as MD and CEO

7
 Indian Business
As of 12 Aug 2016, the bank had a network of 4,094 branches and extension counters and
12,922 ATMs.Axis Bank has the largest ATM network among private banks in India. It even
operates an ATM at one of the world's highest sites at Thegu, Sikkim at a height of 4,023
meters (13,200 ft) above sea level.

International business
The bank has nine international offices with branches at Singapore, Hong Kong, Dubai (at the
DIFC), Shanghai, Colombo and representative offices at Dhaka, Dubai, Sharjah and Abu
Dhabi, which focus on corporate lending, trade finance, syndication, investment banking and
liability businesses.In addition to the above, the bank has a presence in UK with its wholly
owned subsidiary Axis Bank UK Limited.

SUBSIDIARIES
Axis Capital Ltd.
Axis Capital Ltd. was incorporated in India as a wholly owned subsidiary of the bank on 6
December 2005 and received its certificate of commencement of business on 2 May 2006.
Certain businesses of M/s. Enam Securities Pvt. Ltd. were merged with Axis Capital Ltd. as
part of a scheme and the following companies became direct subsidiaries of ACL:

 Axis Securities Ltd. (formerly Enam Securities Direct Pvt. Ltd.)

 Axis Finance Ltd. (formerly Enam Finance Pvt. Ltd.)
 Axis Securities Europe Ltd. (formerly Enam Securities Europe Ltd.)
 Enam International Ltd., UAE (voluntarily dissolved with effect from 24 August
2014)
Axis Securities Ltd., Axis Finance Ltd. and Axis Securities Europe Ltd. later became direct
subsidiaries of the bank in line with the RBI directives.
Axis Securities Ltd.
Axis Securities Ltd.was incorporated in India on 21 July 2006. The sales and securities
business, including the retail broking business of Axis Capital Ltd, was merged with ASL on
25 May 2013. ASL is a wholly owned subsidiary of the bank and offers retail asset products,
credit cards and retail brokerage services.
Axis Private Equity Ltd.
Axis Private Equity Ltd. was incorporated in India as a wholly owned subsidiary of the bank
on 3 October 2006 and received its certificate of commencement on 4 December 2006. APE
manages investments, venture capital funds and offshore funds.

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

Axis Bank launches ‘Dil Se Open’, a campaign that unveils its new brand philosophy
supported by process transformations.

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 ORGANIZATION STRUCTURE OF AXIS BANK

Managing Director

Director

Executive Director

Retail and Branch Banking Head

Regional Head National Head

Zonal Head Zonal Head

Area sales Manager

Cluster Head

Regional Sales Manager

Branch Manager

Personal Banker Sales Manager

Authorize

Team Leader
Personal Banker

Sales Executive

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Board Of Director

11
12
 Awards and Recognition
2017 Awards

13
2018 Awards

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2019 Awards
 Axis Bank wins Best for Excellence in Operations at the International Data Corporation
(IDC) Insights Awards.
 Axis Bank Wins Top Sell-Side Firm in Secondary Market & Top Arrangers-Investors
Choice for Primary Issues at the Asset Benchmark Research Awards.
 Axis Bank wins the Data Science/ AI in BFSI category at the Cypher Analytics Awards.
 Axis bank wins Financial Inclusion Initiative of the year at Asian Banking & Finance
Awards.
 Axis Bank wins the Best Rewards Program for the Fifth Consecutive year at the
Customer Loyalty Awards.
 Axis Bank wins Best DCM House at the Finance Asia Country Awards.
 Axis Bank wins the Anti-Money Laundering Technology Implementation of the year
at the Asian Banker Risk Management Awards.
 Axis Bank wins the Best Mobile-app for Citizen Centric Services at the ET Government
DigiTech Conclave & Awards.

2020 Awards
 Axis Bank wins for the Best Cyber Security Project Best Financial AI Project & Best
Risk Management Project at the Asset Digital Awards.
 Axis Bank wins for the Best Use of IT in Risk Management/ Fraud Prevention at the
Dun & Bradstreet Bank Tech Awards.
 Axis Bank wins For Best Banking Technology at the IAMAI Digital Awards.
 Axis Bank wins for the Innovation at the Finnoviti Awards.

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 PRODUCTS AND SERVICE OFFERED BY AXIS BANK

Axis Bank offers a range of financial products and services to its clients throughout the
country. It also has special strength in retail and corporate banking. Axis Bank offers
following services:

 Personal Banking
 Business Banking
 NRI
 Priority Banking

Personal Banking

The Personal Banking of Axis Bank includes following services:

 ACCOUNTS: Salary Account, Saving Account, Current Account, Trust/NGO Saving

Accounts, Safe Deposit Locker, National Pension System, Pension
Disbursement Account, Sukanya Samriddhi Yojana, PMJDY
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  DEPOSITS : Express FD, Fixed Deposit, Recurring Deposit, Tax Saver Fixed
Deposit, Auto Fixed Deposit

 CARDS : Credit Card, Debit Card, Pre-paid Card, Transit Cards, Commercial Debit
&Credit Cards

 LOANS : Home Loan, Personal Loan, Holiday Loan, Car Loan, Business Loan,
Education LoanTwo-Wheeler Loan, Laon against Property, Loan against
Fixed Deposit, Commercial Vehicle & Construction Equipment Loan.

 FOREX : Forex Card, International Fund Transfer, Foreign Currency Cash, Foreign
Currency Demand Draft, Online Currency Converter

 INSURANCE: Life Insurance, Home Insurance, Travel Insurance, Motor Insurance,

Two-Wheeler Insurance, Health Insurance, Home Insurance, Business
Insurance, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri
Jeevan, Jyoti Bima Yojana, BimaUphaar Yojana.

 INVESTMENTS : Mutual Fund, Demat Account, Public Provident Fund, Atal

Pension Yojana, IPOSmart, Kisan Vikas Patra.

 AGRI &RURAL: Loans for Farmer Funding, Agri Traders & Processors,
Warehouse Receipt, MSME Samriddhi Loans, Tractor Loan,
Gold Loan, Microfinance, Rural Banking

Business Banking

The business Banking of Axis Bank includes following services:

 Current Account
 Cash Management System
 Trade & Forex
 Treasury Service
 Capital Market Service

NRI

 Accounts
 Deposits
 Loans
 Insurance
 Investments
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Performance and Market Share

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 Swot Analysis

Strenghts

 Axis Bank has a good image among urban population

 Axis Bank is registering a good growth in the Indian banking sector
 A huge portfolio of product and services offered by the Bank
 Decent penetration in the rural areas have boosted the business
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  One of the largest private sector financer in India for Agriculture loans wiz Retail
Agri & Corporate Agri
 Excellent online services offered by Axis Bank like netbanking, mobile apps etc
 Good advertising and brand exercise has helped the brand grow

Weakness

 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 many fraudulent activities involved in credit cards as the banks process

credit card approval even without verification of original documents

 Their financial consultants are not wise enough to guide the customers towards right

investments
 Customer service has to improve a lot in order to be in race with other major players

Opportunities
 Expansion in rural areas can help Axis Bank grow
 Going to foreign markets and exploring the new economies
 Axis Bank can tap the online growth in the Indian banking sector by promoting their
apps

Threats
 New banking licenses issued by the Reserve Bank Of India
 Foreign banks entering in India can reduce presence of Axis Bank
 Competitor banks increasing their activities in India
 Government Banks, e.g. SBI, PNB etc
 Private sector competitors like HDFC, ICICI

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21
Sector overview
The Indian banking industry plays an important role in the economic development of the
country and is the most dominant segment of the financial sector. Banks help channel savings
to investments and encourage economic growth by allocating savings to investments that
have potential to yield higher returns. India’s banking system is a robust one and is classified
into commercial banks and co-operative credit institutions. Commercial banks include: 1)
scheduled commercial banks (SCBs) and non-scheduled commercial banks. SCBs are further
classified into public sector banks (PSBs), private banks, foreign banks and regional rural
banks (RRBs). Cooperative credit institutions include the various co-operative banks.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level five in the Faster
Payments Innovation Index (FPII).

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Market Size
The Indian banking system consists of 27 public sector banks, 23 private sector banks, 44
foreign banks, 55 regional rural banks, 1,542 urban cooperative banks and 94,384 rural
cooperative banks in addition to cooperative credit institutions. As on January 31, 2020, the
total number of ATMs in India increased to 210,263 and is further expected to increase to
407,000 by 2021.
Public sector banks’ assets stood at Rs 72.59 lakh crore (US$ 1,038.76 billion) in FY19.
 During FY16-FY20, credit off-take grew at a CAGR of 13.93 per cent. As of FY20,
total credit extended surged to US$ 1,936.29 billion.
 During FY16-FY20, deposits grew at a CAGR of 6.81 per cent and reached US$ 1.90
trillion by FY20.
 Credit to non-food industries increased 3.3 per cent y-o-y, reaching US$ 1.26 trillion
on February 28, 2020 and US$ 1.42 trillion on March 13, 2020.

Sector Size of Axis Bank

Axis Bank is the third largest private sector bank in India. The Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 4,528 domestic branches (including extension counters)
with 12,044 ATMs & 5,433 cash recyclers spread across the country as on 31st March, 2020.
The overseas operations of the Bank are spread over eleven international offices with
branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo, Shanghai and Gift City-
IBU; representative offices at Dhaka, Dubai, Abu Dhabi, Sharjah and an overseas subsidiary
at London, UK. The international offices focus on corporate lending, trade finance,
syndication, investment banking and liability businesses.

The Mergers and Acquisitions in India team is headed by Mr Debrato Sen, who brings more
than 16 years of work experience in investment banking across all segments globally. Overall
team has a combined investment banking experience of over 75 years. Some of the key
strengths acquired by the team over a period of time, which help them stand out in the market
include:

 Domain expertise and Strong Research desk

 Regulatory know-how through experience and market leading presence in Debt and
Equity capital markets
 Deal Structuring Capabilities and Closure experience
 Domestic and International geographic reach

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Major Players

24
Developments

 In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100
million in green bonds through private placement.
 In February 2020, the Cabinet Committee on Economic Affairs gave its approval for
continuation of the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2019-20 – till
2020-21 to those RRBs which are unable to maintain minimum Capital to Risk
weighted Assets Ratio (CRAR) of 9 per cent as per the regulatory norms prescribed
by RBI.
 In 2019, banking and financial services witnessed 32 M&A (merger and acquisition)
activities worth US4 1.72 billion
 The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of Rs
400,000 crore (US$ 57.23 billion) in the last four years including record recovery of
Rs 156,746 crore (US$ 22.42 billion) in FY19.
 In August 2019, the Government announced major mergers of public sector banks,
which included United Bank of India and Oriental Bank of Commerce to be merged
with Punjab National Bank, Allahabad Bank to be amalgamated with Indian Bank and
Andhra Bank and Corporation Bank to be consolidated with Union Bank of India.
 In October 2019, Department of Post launched the mobile banking facility for all post
office savings account holders of CBS (core banking solutions) post office.
 Deposits under Pradhan Mantri Jan Dhan Yojana (PMJDY) stood at Rs 1.06 lakh
crore (US$ 15.17 billion.

Government Initiatives

 As per Union Budget 2019-20, the Government proposed fully automated GST refund
module and an electronic invoice system that will eliminate the need for a separate e-
way bill.
 Under the Budget 2019-20, Government proposed Rs 70,000 crore (US$ 10.2 billion)
to the public sector banks.
 Government smoothly carried out consolidation, reducing the number of Public
Sector Banks by eight.
 As of September 2018, the Government of India made Pradhan Mantri Jan Dhan
Yojana (PMJDY) scheme an open-ended scheme and added more incentives.
 The Government of India planned to inject Rs 42,000 crore (US$ 5.99 billion) in
public sector banks by March.

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Regulations and Regulatory Bodies

The financial system in India is regulated by independent regulators in the field of banking,
insurance, capital market, commodities market, and pension funds. However, Government of
India plays a significant role in controlling the financial system in India and influences the roles
of such regulators at least to some extent.

The following are five major financial regulatory bodies in India

 RBI – Reserve bank of India

 SEBI – Securities and exchange board of India
 FMC – Forward markets commission
 IRDA – Insurance regulatory and development authority
 PFRDA – Pension fund regulatory and development authority

Sector’s Contribution to the Economy

Axis Bank believe that their role in society is defined not merely by profitability but also by
the larger economic value they add through the products, services and operations. Axis Bank
take this role seriously and endeavour to positively contribute to the economic and social
wellbeing of the society at large.

Axis Bank play an important role in the overall economic activity by facilitating financial flows
and thus enabling people, businesses and institutions to prosper. The Retail Banking products
and services are designed to meet the lifecycle financial needs of people and help them achieve
their goals and aspirations.

Through the Financial Inclusion agenda, millions of underserved people are provided access to
a formal banking system and making them active participants of economic growth. Financial
Literacy efforts undertaken by them help people understand the basics of banking and
economic opportunities available to them to earn a livelihood, save and grow the wealth, and
avail social security.

The Corporate Banking products and services provide vital support to businesses and
institutions for expansion of economic activity which ultimately contributes to nation-building
and higher living standards.

Axis Bank have special focus on sectors like MSME sector and the Agriculture sector under
‘Priority Sector’ focus to provide impetus to the sectors’ growth which has huge potential for
job creation. Axis Bank Foundation works in some of the poorest districts of the country with

26
the primary focus on creating sustainable livelihoods. They contribute to effective and
transparent governance by facilitating the delivery of citizen services and social benefit
schemes.

Future Potential

Axis Bank’s healthy asset quality has been achieved primarily due to a combination of strong
risk management practices and nominal exposure to the troubled sectors like aviation,
infrastructure and textile.

The asset quality for Axis Bank is amongst the healthiest in the industry. Gross Non-
Performing Assets (“GNPAs”) for FY 2013 stood at 1.06 % of gross advances, and Net Non-
Performing Assets (“NNPAs”) came at just 0.32 % of customer assets. In the last few years,
there have been many challenges with respect to NPAs for the banking sector due to bad
economic and business environment.

The Government of India to continue with its aggressive reforms programme and an
improvement in the overall economic scenario. The Indian banking sector will be a direct
beneficiary as growth momentum picks up in other industry sectors.

Axis Bank has consistently generated a high Return on Equity (ROE) for shareholders. This
has been achieved mainly because of Axis Bank’s high net interest margins and CASA (current
account and savings accounts) deposits maintained by the Bank. Interest rate paid on CASA
deposits is much lower compared to other deposits like term deposits or recurring deposits.
While banks do not pay any interest on current account, interest paid on savings account deposit
is set by RBI at 4%. Banks therefore make maximum effort to increase the share of CASA on
their books to reduce their overall cost of deposits and increase their Net Interest Margin
(NIM).

Non-funded revenue (i.e. other income) largely constitutes of fee income such as commission
and brokerage fees and client based merchant foreign exchange trade, service charges from
account maintenance, transaction banking (including cash management services), syndication
and placement fees, processing fees from loans and commission on non-funded products (such
as letters of credit and bank guarantees) etc. Growth in other income or non-funded revenue is
good for the bottom line (i.e. net profit) as income from this stream is derived without
significant mobilisation of deposits and hence the cost associated with this income is relatively
lower compared to interest income. Banks in developed countries derive nearly 50% of their
income from these non-funded sources.

As financial markets begin to improve and deal activity picks up, we expect Axis capital to
contribute significantly to the Company’s non-funded revenue stream in future.

27
Findings
 The bank has good relations with its customer. The customers are very satisfied with
the relationship manager services provided by Axis Bank.

 The bank and its customers have a long term relationship. Axis Bank has the tendency
to retain its customer at any cost.

 The accounts of axis bank (both salary & saving) provide great flexibility in terms of
offering.

 The accounts of these three banks don’t have much difference in terms of features but
when it comes to service providing the Axis Bank gets an edge because of their great
customer services.

 The axis bank has good no, of branches and ATM’s that’s why it has more ease of
access.

 The customers of axis bank are satisfied with their saving and salary accounts.

Suggestions
 Mostly service class persons prefer the axis bank in the comparison of business and
students and other class persons thus it needs to promote its product and services that
are offered mainly for the business class people and students. Because these two class
forms major users of the banking service.

 Axis Bank is normally not using properly for the current account so its popularity
ratio is quite down. This bank normally using for the long term planning like saving.

 This bank is not investing more into the marketing sector so I will suggest that some
part of income it investing in the advertising and marketing sector.

 Into the comparison of other bank its performance is quite good but not an effective
so this may be doing the rates were down with some other facilities.

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Conclusions
 In this study I found that the bond of Axis Bank with its customers is very strong,
because Axis Bank mainly focuses on retaining their customers.

 This study finds that the vast range of products and availability of options offered by
Axis Bank make it one of the better banks in India. They should launch such products
which would be within the reach of the lower middle class.

 The bank should focus on the semi urban and rural market because these markets are
very good opportunity for someone like Axis Bank which is in a growing face.
Without expanding in these markets Axis Bank can not be a leading bank so they
should focus on this market.

 The bank should pay more attention on giving updates and should increase the level
of service providing because the competitors of axis are better in this area.

Bibliography
Websites :
 www.axisbank.com
 www.wikipedia.org
 www.economictimes.com
 www.moneycontrol.com

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