Case 2: Axis Bank:: Banking On Technology & Market Segment For Competitive Space

Case 2:
AXIS BANK :
Banking On
Technology &
Market Segment
For Competitive
Space
VISION
To be the preferred financial solutions provider
excelling in customer delivery through insight,
empowered employees and smart use of
technology
Core Values of Axis

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
Maximizations of Stakeholder value
Success through customer Centricity ,Ethics
,Transparency Teamwork & Ownership
About Axis Bank

Axis Bank was the first of the new private banks
to have begun operations in 1994.
The Bank's Registered Office is at Ahmedabad and its
Central Office is located at Mumbai.
Incorporated as UTI Bank, headquartered in
Mumbai
Completes first profitable year in operation in 1995
Deposit crosses Rs.10bn mark in 1996
The bank also has overseas offices in Singapore,
China, Hong Kong and Dubai
Axis Bank share is now trading at Rs 1324 (5th July
2011).
Branch Network
During 2007-08 the bank
has more than 650
branches. Covering 29
states and 3 union
territories covering 405
centers.
At the end of October 2009,
The Bank has a very wide
network of more than 1000
branches and Extension
Promoters
27.33
40.09
10.34
16.96
5.28
Administrator of the specified

undertaking of the AXIS
LIC
GIIC & four PSU Insurance companies
Non promoters Holding
Foreign Shareholding
The Axis banks business is divided into four

segments:
Retail, corporate, treasury and merchant
banking.
Apart from this the bank is also into insurance,
investment banking, mortgage financing, credit
cards, and depository services etc .
Services
Retail banking
Deposits schemes
Loans and advances
Personal loans
Housing loans
Cards
Consumer durables
Auto loans
Personal banking
Accounts
Term deposit
Fixed deposit
Recurring deposit
Cards
Different variant like: Gold plus card, Gold card,
Silver & silver plus cards.
Corporate banking
Accounts
Normal Current Account
Trust/NGO Savings Account
Services
Private Equity, Mergers & Acquisitions

Advisory Services
Capital Market Funding
E-Broking
Services Of Axis Bank
Anywhere Banking
Instant Fund Transfer
Internet Banking
At-Par (Multicity) Chequebook
ATM cum Debit Card
Mobile Banking , Mobi
Phone Banking

investment banking, mortgage financing,
credit cards, and depository services amongst
others.
it is also registered on the following exchanges:
OTCEI
BSE
NSE
London stock exchange
Alternate Channels:
ATM Channel
Internet Banking Channel
Mobile Banking Channel
ATM Channel
All its ATMs are connected to Base24 ATM switch
The Bank through its ATMs offers the following
services:
Banking Services
Mobile Airtime Refill
Bill Payment e.g.: BSNL, MTNL
Life Insurance Corporation Premium
Payment
Purchase and redemption of UTI Mutual
Fund Schemes through the
ATM.

Axis bank provides a number of value-added
services on the Internet banking platform
Services:
a) Funds Transfers
b) Bill payment
c) Shopping

Debit or credit in your account:
Receive alerts on your mobile phone every time
there is a debit or credit in your Axis Bank
account for more than
Rs. 5,000
You can also request for the following information:
- Balance
- Last three Transactions
- Know the status of your cheque
- Request security balance in demat account
Shift in
strategy
Initial business model: bank has started business by

the corporate assets being the main focus area. 80 % of
funds lent by the bank till year 2002.
Strategic inflation point: in 1999 the banks net NPA
to advances ratio jumped to 6.3% in fy99 from 3.7% in
fy97.
Realizing the risk of overexposure to this segment, AXIS
bank started shifting its concentration to retail finance,
which presented immense growth opportunities
It is the 1st Indian Bank to have a remote disaster
Strategy shift: AXIS Bank started focusing on

both physical & technology infrastructure, which
it thinks are key to acquire customers in retail
finance segment.
Braches increased to 450 from just 35 in FY99.
recovery management system to protect its
business from any eventualities.
Axis s current strategy

The bank has follows the broad
strategy differentiation.
Managing changing customer
needs : the bank centralized phone
banking center provides customers
across the country access to the bank
over the phone.
Powerful back office hubs
Zonal level Nodal officers
Know your customer norms
Risk management:
Risk limits are set according to number of

criteria including relevant market analysis,
business strategy & management experience.
Risk limits are monitored & reviewed

regularly.
Dealing with regulations:
The bank calculates capital charge on

operational risk under both the Basic Indicator
Keeping pace with technology : it includes the

internet banking fund transfer to the corporate. And
also develop the new system i-trade.
The banks IT system developed a process called
SETU ( Seamless Electronic Transfer to AXIS
Bank)
The sale & redemption of 58 AXIS Mutual

Funds Schemes was an additional service through
the ATM channel.
Product and service innovation : low cost rural
Growth strategy
Objectives
increasing the market share in
various business resulting in an
enhancement in its core income
streams.
Improve the quality of its income
streams .
Complementary strategies for business growth

and development
Strategic alliance and collaborative partnership: axis bank has
entered in to a variety of partnership likes
-Maruti and Hyundai for the loans
-India infrastructural finance company ltd.
-Bajaj Allianz general insurance
-Met life
-Economic times
Outsourcing selected value chain activities : bank has
outsourced certain processes from its value chain to cut down on
costs and achieve greater efficiency
-Outsourcing recruitment to monster india.com
-Outsourcing print operation to Xerox
-Outsourcing of electronic bill payment
Value Chain Activities
Outsourcing selected value chain

activities
1.Outsourcing recruitments to
monsterindia.com
2. Outsourcing print operations to Xerox
3. Outsourcing of EBP and ATM
management
Offensive Strategic Moves
Superior Customer Service

Range of services on ATM machine
Aggressive growth in card business
Expansion of geographical reach
Financial Advisory Services
Positioning strategy
Axis bank has positioned itself as a bank

which gives higher standard of services
through product innovation for the diverse
need of individual & corporate clients.
Customer centric
Service oriented
Product innovation
Offensive strategic moves

Axis bank has been following an aggressive strategy to
tap the retail domain via the use of atm and
alternate tech-enabled channels.
-Superior customer services
-Range of services on ATM machines.
-Aggressive growth in card business
-Expansion of geographical reach
-Financial advisory services
Use of internet
It is the first bank in the country using the internet
banking service.
The bank launched e-payment facility for payment of
central excise & service tax through the internet for its
consumers as part of e-governance initiative of central
board of excise and customs
The strategy making, strategy

execution process for AXIS Bank
Achieve growth through retail banking
Revise as needed in the light of

actual erformance, changing
conditions, new opportunities , &
new ideas
Evaluation of growth(by 2010)

The Bank has a very wide network of more than 1042
branches (including 56 Service Branches/CPCs as on 30th
June 2010).
The Bank today is capitalized to the extent of Rs. 407.44
crores with the public holding (other than promoters and
GDRs) at 54.51%.
It has one of the largest ATM networks in the country.
As on the year ended 31 March 2009 the Bank had a total
income ofRs.13,745.04 crore (US $2.98 billion)and a net
profit of Rs.1,812.93 crore (US$393.41 million).
Mortgage Loan
Amortgage loanis
aloansecuredbyreal
propertythrough the use of
amortgage note which evidences
the existence of the loan and the
encumbranceof that realty through
the granting of amortgage
whichsecuresthe loan.
Rate of interest charged by Axis
Bank is 8.75%(floating) upto Rs.30
lacs, 9.25%(floating) above Rs.30
lacs and 14% (fixed) irrespective of
Axis Bank
Financial
Overview
Axis Financial Position

Particulars
Mar 07
Mar 08
Rs in
crs.
Mar
09
Deposits
58,785.60
87,626.22
117,374.11
Advances
36,876.48
59,661.14
81,556.77
Share Capital
281.63
357.71
359.01
Net worth
3,402.21
8,770.69
10,214.80
Book Value
120.80
245.19
284.53
Interest earned
4,560.40
7,005.32
10,835.49
Interest
expenditure
2,993.32
4,419.96
7,149.27
Net profit
659.03
1,071.03
1,815.36
Net NPAs
0.61%
0.36%
0.35%
Total Assets
73,257.21
109,577.84
147,722.06
Return on Assets
1.10%
1.24%
1.44%
Axis Bank Ratio Analysis

Particulars
Mar 07
Mar 08
Mar 09
Capital Adequacy Ratio
11.57
13.73
13.69
Net profit margin
12.01
12.22
13.31
Operating Expense / Total

Inc
23.26
26.20
24.95
Return on Net worth (%)
19.37
12.21
17.77
Net Interest Income/total

funds
4.01
4.74
4.98
Non Interest Income/total

funds
0.03
0.02
0.06
Net Profit / Total Funds
1.07
1.17
1.41
Earning per share
23.40
29.94
50.57
Equity Dividend (%)
45.00
60.00
100.00
Last two years performance of

Axis Bank
CSR Initiatives
Axis Bank Foundation set up in 2006

Transfers 1% of net profit to the Foundation
Supporting 41 NGOs
536 education centers covered
47055 children covered
24 SMEs exclusively focusing on MSMEs
SWOT ANALYSIS
Growth Prospects of Axis

Over the last five years, the CAGR for loan growth for
the banking industry has been 25-26 per cent; for Axis
Bank it has been above 40 per cent.
Nonetheless, the bank is still expected to grow its loan
portfolio at 1.5-1.7x the industry average.
In FY09 its advances grew at the rate of 37.5 per cent.
In FY10 they are expected to grow at the rate of 27-28
per cent and in FY11 at 25 per cent.
For the banking industry as a whole, the loan book is
expected to grow at 18 per cent in FY10 and 16 per
cent in FY11.
Thus, Axis Banks fast pace of growth is expected to
Current Position of the Company

3rd largest private sector bank and 9th largest
overall
1042 Branches and 4474 ATMs (as on 30th
Net Profit
Total Assets
June, 2010)
Market Cap. (` cr.) Net Interest
Income
ICICI Bank
1,11,980.90
25,706.93
4,024.98
3,63,399.71
HDFC Bank
1,00,555.04
16,172.91
2,948.69
1,83,270.78
Axis Bank
56,696.97
11,638.02
2,514.53
1,80,647.87
Kotak Mahindra
29,812.51
3,255.62
561.11
37,436.31
YES BANK
10,844.44
2,369.71
477.74
36,382.50
Financial Highlights
Profit after tax up 38.51% to ` 2514.53 crores
Net Interest Income up 35.76% to ` 5004.49 crores
Earnings per share (Basic) increased from ` 50.61
to ` 65.78.
Proposed Dividend up from 100% to 120%
Capital Adequacy Ratio stood at 15.80% as against
the minimum regulatory norm of 9%
Growth of bank at 38.51% and 69.50% against
sector growth of 20.64% and 14.13% for the
previous two years
Conclusion
Axis Bank has shown substantial growth in the past few
years.
The change in name to have seemed to achieved its goal as
the net profits and total incomes are growing way over the
growth rate of the sector.
It may not be long before Axis Bank overtakes HDFC Bank in
terms of Net Income and Total Income to become the no. 2
bank in Private Sector in India.
THANK
YOU
ABOUT Axis Bank

Incorporated as UTI Bank,
headquartered in Mumbai
First Branch inaugurated at
Ahmadabad
Completes first profitable year in
operation in 1995
Deposit crosses Rs.10bn mark in
1996
.
Opens its first international branch in
Singapore
Opens Representative Office in Shanghai
Crosses the 2,000 ATM mark in 2006
Opens a Full Licence Bank Branch in
Hong Kong
Re-brands itself as Axis Bank
Mumbai, Jul 30 2007 : UTI Bank on
Monday rechristened itself as Axis Bank.
Current Shareholding Pattern of

Axis Bank
.
The Axis banks business is divided

into four segments:
Retail, corporate, treasury and
merchant banking.
Apart from this the bank is also into
insurance, investment banking,
mortgage financing, credit cards, and
depository services etc .
Services
Retail banking
Deposits schemes
Loans and advances
Personal loans
Housing loans
Cards
Consumer durables
Auto loans
Personal banking
Accounts
Term deposit
Fixed deposit
Recurring deposit
Cards
Corporate banking
Accounts
Services

Advisory Services
E-Broking
Axis Bank Performance

As on the year ended March 31, 2010
the Bank had a net profit of Rs
2514.53crores
The bank now has 1035 branches
including extension networks across
30 States and 4 Union Territories.
The bank also has overseas offices in

Singapore, China, Hong Kong and Dubai.
Crosses the 4,293 ATM mark in Mar 2010
Axis Bank share is now trading at Rs
1359.00 (18th Aug2010).
Axis Bank
Financial
Overview

Particulars
Mar 07
Mar 08
Rs in
crs.
Mar 09
Deposits
58,785.60
87,626.22
117,374.11
Advances
36,876.48
59,661.14
81,556.77
Share Capital
281.63
357.71
359.01
Net worth
3,402.21
8,770.69
10,214.80
Book Value
120.80
245.19
284.53
Interest earned
4,560.40
7,005.32
10,835.49
Interest
expenditure
2,993.32
4,419.96
7,149.27
Net profit
659.03
1,071.03
1,815.36
Net NPAs
0.61%
0.36%
0.35%
Total Assets
73,257.21
109,577.84
147,722.06
Return on Assets
1.10%
1.24%
1.44%

Particulars
Mar 07
Mar 08
Mar 09
11.57
13.73
13.69
Net profit margin
12.01
12.22
13.31

Inc
23.26
26.20
24.95
19.37
12.21
17.77

funds
4.01
4.74
4.98

funds
0.03
0.02
0.06
1.07
1.17
1.41
Earning per share
23.40
29.94
50.57
Equity Dividend (%)
45.00
60.00
100.00
Comparative Ratio Analysis

Particulars
Axis
HDFC
13.69
13.60%
Net profit margin
13.31
11.35

Inc
24.95
35.06
17.77
15.32

funds
4.98
6.86
1.41
1.42
Earning per share
50.57
52.77
Equity Dividend (%)
100.00
100.00
Net Interest margin (%)
3.33
4.40
Comparative Reach Analysis
Ban Branch
ks
es
ATMs
Cities
Incepti
on yr
Axis
1035
4293
515
1994
HDF
C
1416
3382
550
1995
ICIC
I
950
3500
21,408
1895
SBI
9000
6800
Axis Bank
Marketing Overview
Mission
Customer Service and Product
Innovation tuned to diverse needs of
individual and corporate clientele.
Continuous technology up gradation
while maintaining human values.
Progressive globalization and achieving
international standards.
Efficiency and effectiveness built on
ethical practices.
Marketing Objectives
Axis Bank want to achieve following marketing
objectives by the end of the year 2011.
To get the market capitalization 500 Crore

To get the 200 Crore retail investment.
To get 125 Crore Corporate investments.
To get the 175 Crore Capital investments.
Axis Bank Shift In Strategy

Initial Business Model
Corporate assets being the focus
area
Corporate loans offered high yields
to the bank
Strategy Shift
Focus on retail finance segment
Physical & Technology
infrastructure improvement
The Strategy-Making, Strategy-Execution

Process for AXIS Bank
Achieve
organic
growth
through
Retail
banking
Decreasing the NPAs to

below 1% of total
assets, to aggressively
tap the retail domain
via the use of ATMs

actual performance, changing
conditions, new opportunities &
new ideas.
Building
infrastructure
& adhering to
the latest
technology
Spread across
248 locations,
109 branches
with 4293
ATMs, Adoption
of Finnacle, Ibanking etc
Reduction in NPAs
% to 0.61%,
increase in retail
deposits, Retail
banking powering
growth in fee
based income
Current Strategy
Managing the changing customer
needs
Risk Management
Dealing with regulations
Keeping pace with technology
Product and service innovation
Complementary Strategies for

Business Growth & Development
Strategic alliances and
collaborative partnerships
Tie up with Maruti and Hyundai for
selling car loans
Tie up with Bajaj Allianz General
Insurance
ATM sharing based on alliances
such as SBI and multibank payment
networks

It Outsourcing selected value chain
activities
monsterindia.com
2. Outsourcing print operations to
Xerox
management

Use of Internet
I-Connect net banking service
Internet based electronic
remittances portal
E-Payment facility for payment of
central excise & service tax
Seamless Electronic Transfer U
I -trade
need of individual & corporate clients. So they
want to highlight following points in their
positioning statement:
Customer centric
Service oriented
Product innovation
Features Of Axis Bank
Anywhere Banking
Internet Banking
ATM cum Debit Card
Phone Banking
TECHNOLOGICAL
ADVANCEMENTS
Extensive Network .
Centralized transaction processing system
Centralized Phone Banking system
Mobile Alert Service.
NEFT ( National Electronic Fund Transfer)
Real Time Gross Settlement (RTGS).
New Initiatives
Tie-ups with various Govt.

Departments:
Govt. Departments:
DGFT ePayments
MCD - Municipal Tax or Fees ePayments
MCD - eTendering Project
Sampark - Utility Bill ePayments
Bangalore One Project - Utility Bill ePayments
Alternate Channels:
ATM Channel
ATM Channel
services:
Banking Services
Payment
ATM.
Internet Banking Channel:

Services:
a) Funds Transfers
b) Bill payment
c) Shopping
Mobile Banking Channel:

Rs. 5,000
- Balance
Over the last five years, the CAGR for loan growth for the
banking industry has been 25-26 per cent; for Axis Bank it
has been above 40 per cent.
In FY10 they are expected to grow at the rate of 27-28 per
cent and in FY11 at 25 per cent.
expected to grow at 18 per cent in FY10 and 16 per cent in
FY11.
Thus, Axis Banks fast pace of growth is expected to sustain
over the next couple of years.
Core Values of Axis

efficiently
Success through Teamwork, Integrity and People
Conclusion !!!!
AXIS bank has differentiated itself very well on
the basis of high level service and product quality.
They have successfully implemented the change
and due to this their market share has increased
only despite of tough competition prevails.
Axis bank
Presented by :
Awit Anshu Tirkey
Richa Ekka
Aastha Singh
Vinay Anurag Tirkey
Rahul Ray
Vipin Das
Introduction
Axis Bank (Formerly known as UTI) was one of
the few private banks to have began operations
in 1994
The Bank was promoted jointly by the
Administrator of the specified undertaking of the
Unit Trust of India (UTI)
Life Insurance Corporation of India (LIC).

General Insurance Corporation Ltd (GIC).
National Insurance Company Ltd.
The New India Assurance Company.
The Oriental Insurance Corporation.
United Insurance Company Ltd.

Registered office at Ahmedabad
Mumbai, Jul 30 2007 : UTI Bank
rechristened itself as Axis Bank.
The Bank has a network of more than
896 branches and Extension Counters
One of the largest ATM networks in the
country with over 4055 ATMs
The banks business is divided into four segments:

Retail, corporate, treasury and merchant banking.
investment banking, mortgage financing, credit
cards, and depository services amongst others.
it is also registered on the following exchanges:
OTCEI
BSE
NSE
London stock exchange
Services
Retail banking
Deposits schemes
Loans and advances
Personal loans
Housing loans
Cards
Consumer durables
Auto loans
Personal banking
Accounts
Term deposit
Fixed deposit
Recurring deposit
Cards
Corporate banking
Accounts
Services

Advisory Services
E-Broking
Anywhere Banking
Internet Banking
ATM cum Debit Card
Mobile Banking
Phone Banking
INFORMATION SYSTEM
Implemented a new derivatives system-- Summit FT
with the help of global financial applications
provider Misys.
Provides ability to structure derivative products in
real time and give a single view of the entire
transaction to the customer
The bank hopes to leverage the ability to rationalize
its currently dispersed functions to provide a single
view of every transaction to customers.
CONTD..
Apart from creating a new derivatives product, it
also helps from a regulatory compliance
standpoint.
RBI favors transparent online systems that can
track every transaction and report it exactly as it
is.
An automated system removes this anomaly and
improve compliance to a great extent.
SUNTECS TOOL FOR AXIS BANK

AXIS Bank Chose SunTec Business Solutions
software to centralize and streamline the banks
pricing and billing processes.
Implemented a solution that helps Axis Bank
create personalized product packages and
manage fee billing for payment and cash
management, while having a unified view of its
customers.
Axis Bank is SunTecs second banking services
client in India, after ICICI Bank.
SOFTWARE RESOURCES
RisKompass:
Pyxis systems has provided AXIS bank its RisKompass as
the software solution for financial derivatives risk
management.
It enables clients to manage derivative trades in a further
controlled way from the front to back office.
Automated system that can be accessed by anyone on
the different locations of the bank.
Smoother deal processing, with verifying and online risk
monitoring mechanism.
The system is user friendly, and the software offers good
portfolio management features.
OTHER SOFTWARES
Atom Technologies, A Subsidiary Of The Bse-listed
Financial Technologies (India) Ltd (FTIL), Which Runs
The Multi Commodity Exchange Of India Has Innovated
A Technology, Which Enables Mobile Payments.
Electronic Clearing Service (ECS Credit) .
NEFT.
ORGANISATION TRANSACTION PROCESSING

SYSTEM:
EBS (E-Billing Solutions):
It is the Merchant Account providing company
partnered with Axis Bank.
Visualizes
you
how
to
become
more
competitive and help you to make the changes
to your online payment processing for risk free
business.
EBS
"Payment
Gateway"
is
specifically
designed to accommodate the increasing
demand by e-commerce companies for
sophisticated payment solutions to tap the
HOW IT WORKS?
TECHNOLOGICAL
ADVANCEMENTS
Extensive Network .
Centralized Service Desk.
Comprehensive MIS .
Information Technology:
Played a vital role in growth of organization
To retain a competitive edge, the Bank's
technology infrastructure is continuously
upgraded
Use of technologyfirst among Indian banks in submitting centralised
Return for foreign exchange transactions
first bank in the India to market EMV chip
embedded Debit Platinum, Travel Currency and
Credit Platinum cards
New Initiatives
Remittance Card:
A unique product that has changed the way
money is sent across borders.
Available as a delivery mode for remittances
made through the Web Portal
www.Remit2India.com.
Based on the remitters request, a personalised
Remittance Card is prepared for the beneficiary,
which is preloaded with the funds remitted to him
in INR.
VISA Money Transfer Service:

To send money from an AXIS Bank account to any of
the VISA Cards issued in India
To pay VISA credit card bills by giving the card number
and making a direct payment
The senders account would be debited instantaneously
with the transferred amount, but the funds will reach
the beneficiarys VISA Card within one or two days.
The service has been enabled through all Axis banks
ATMs and i-Connect (Internet Banking)
EMV standard based Platinum

Credit Card:
Card has an embedded chip, which stores
cardholders information in an encrypted format,
thereby providing the highest level of security to
the cardholder against possible misuse.
Offers clear authentication of debit and credit
payments combined with easy fraud detection.
The chip cannot be duplicated, ruling out
counterfeiting and skimming. This makes your card
safer and secure than any other card in India.
How does it work:Step 1:

The merchant inserts
the chip card into his
EDC terminal in the chip
reader slot. The card
need not be swiped.
The card remains
inserted in the terminal
throughout the
transaction .
Step 2:
The purchase
amount is entered
in the terminal.
Once the purchase

is approved a
receipt will be
printed.
Step 3:
The Cardholder
signs the receipt
and removes
his/her card from
the terminal.
Alternate Channels:
ATM Channel
ATM Channel
services:
Banking Services
Payment
ATM.
Shared resource:
Bilateral ATM sharing arrangement:
State Bank of India
ABN Amro Bank
Bank of Rajasthan
Karur Vysya Bank
Andhra Bank
Multilateral ATM sharing arrangement:
Cashnet (A shared network run by Euronet India Pvt.
Ltd.)
BANCS (Formerly known as Swadhan. Now run by E
Funds Ltd.)

Services:
a) Funds Transfers
To the customers own Axis Bank account
To any Axis bank account
To any account in any other bank in India (Power
Transfer)
b) Bill Payment
Presentment or EBPP (Electronic Bill Presentment
& Payment):
Bill presentment happens
The biller will send an electronic version of
the bill for acceptance and payment
Direct Payment:
- No bill presentment happens
- The customer is free to select the biller
and pay accordingly to his convenience.
c) Shopping
etc.

Rs. 5,000
- Balance
Benefits of MIS
Significant cost benefits, time savings, productivity gains

and process re-engineering opportunities are associated
with the use of data warehouse for information processing.
Data can easily be accessed and analyzed without time
consuming manipulation and processing.
Decisions can be made more quickly and with confidence
that the data are both time-relevant and accurate.
Integrated information can be also kept in categories that
are meaningful to profitable operation.
Conclusion !!!!
Thank you
Axis Bank
Banking On Technology &
Market Segment For
Competitive Space
Presented By:
Abhideep
ABOUT Axis Bank

First Branch inaugurated at
Ahmadabad
Completes first profitable year in
operation in 1995
Deposit crosses Rs.10bn mark in
1996
.
Opens its first international branch in
Singapore
Opens Representative Office in Shanghai
Crosses the 2,000 ATM mark in 2006
Opens a Full Licence Bank Branch in
Hong Kong
Re-brands itself as Axis Bank
Mumbai, Jul 30 2007 : UTI Bank on
Monday rechristened itself as Axis Bank.
Current Shareholding Pattern of

Axis Bank
.
The Axis banks business is divided

into four segments:
Retail, corporate, treasury and
merchant banking.
Apart from this the bank is also into
insurance, investment banking,
mortgage financing, credit cards, and
depository services etc .
Services
Retail banking
Deposits schemes
Loans and advances
Personal loans
Housing loans
Cards
Consumer durables
Auto loans
Personal banking
Accounts
Term deposit
Fixed deposit
Recurring deposit
Cards
Corporate banking
Accounts
Services

Advisory Services
E-Broking
Axis Bank Performance

As on the year ended March 31, 2010
the Bank had a net profit of Rs
2514.53crores
The bank now has 1035 branches
including extension networks across
30 States and 4 Union Territories.
The bank also has overseas offices in

Singapore, China, Hong Kong and Dubai.
Crosses the 4,293 ATM mark in Mar 2010
Axis Bank share is now trading at Rs
1359.00 (18th Aug2010).
Axis Bank
Financial
Overview

Particulars
Mar 07
Mar 08
Rs in
crs.
Mar 09
Deposits
58,785.60
87,626.22
117,374.11
Advances
36,876.48
59,661.14
81,556.77
Share Capital
281.63
357.71
359.01
Net worth
3,402.21
8,770.69
10,214.80
Book Value
120.80
245.19
284.53
Interest earned
4,560.40
7,005.32
10,835.49
Interest
expenditure
2,993.32
4,419.96
7,149.27
Net profit
659.03
1,071.03
1,815.36
Net NPAs
0.61%
0.36%
0.35%
Total Assets
73,257.21
109,577.84
147,722.06
Return on Assets
1.10%
1.24%
1.44%

Particulars
Mar 07
Mar 08
Mar 09
11.57
13.73
13.69
Net profit margin
12.01
12.22
13.31

Inc
23.26
26.20
24.95
19.37
12.21
17.77

funds
4.01
4.74
4.98

funds
0.03
0.02
0.06
1.07
1.17
1.41
Earning per share
23.40
29.94
50.57
Equity Dividend (%)
45.00
60.00
100.00
Comparative Ratio Analysis

Particulars
Axis
HDFC
13.69
13.60%
Net profit margin
13.31
11.35

Inc
24.95
35.06
17.77
15.32

funds
4.98
6.86
1.41
1.42
Earning per share
50.57
52.77
Equity Dividend (%)
100.00
100.00
Net Interest margin (%)
3.33
4.40
Comparative Reach Analysis
Ban Branch
ks
es
ATMs
Cities
Incepti
on yr
Axis
1035
4293
515
1994
HDF
C
1416
3382
550
1995
ICIC
I
950
3500
21,408
1895
SBI
9000
6800
Axis Bank
Marketing Overview
Mission
Customer Service and Product
Innovation tuned to diverse needs of
individual and corporate clientele.
Continuous technology up gradation
while maintaining human values.
Progressive globalization and achieving
international standards.
Efficiency and effectiveness built on
ethical practices.
Marketing Objectives
Axis Bank want to achieve following marketing
objectives by the end of the year 2011.
To get the market capitalization 500 Crore

To get the 200 Crore retail investment.
To get 125 Crore Corporate investments.
To get the 175 Crore Capital investments.
Axis Bank Shift In Strategy

Initial Business Model
Corporate assets being the focus
area
Corporate loans offered high yields
to the bank
Strategy Shift
Focus on retail finance segment
Physical & Technology
infrastructure improvement
The Strategy-Making, Strategy-Execution

Process for AXIS Bank
Achieve
organic
growth
through
Retail
banking
Decreasing the NPAs to

below 1% of total
assets, to aggressively
tap the retail domain
via the use of ATMs

actual performance, changing
conditions, new opportunities &
new ideas.
Building
infrastructure
& adhering to
the latest
technology
Spread across
248 locations,
109 branches
with 4293
ATMs, Adoption
of Finnacle, Ibanking etc
Reduction in NPAs
% to 0.61%,
increase in retail
deposits, Retail
banking powering
growth in fee
based income
Current Strategy
Managing the changing customer
needs
Risk Management
Dealing with regulations
Keeping pace with technology
Product and service innovation
Complementary Strategies for

Business Growth & Development
Strategic alliances and
collaborative partnerships
Tie up with Maruti and Hyundai for
selling car loans
Tie up with Bajaj Allianz General
Insurance
ATM sharing based on alliances
such as SBI and multibank payment
networks

It Outsourcing selected value chain
activities
monsterindia.com
2. Outsourcing print operations to
Xerox
management

Use of Internet
I-Connect net banking service
Internet based electronic
remittances portal
E-Payment facility for payment of
central excise & service tax
Seamless Electronic Transfer U
I -trade
SWOT ANALYSIS OF AXIS BANK
need of individual & corporate clients. So they
want to highlight following points in their
positioning statement:
Customer centric
Service oriented
Product innovation
Anywhere Banking
Internet Banking
ATM cum Debit Card
Phone Banking
TECHNOLOGICAL
ADVANCEMENTS
Extensive Network .
Centralized transaction processing system
Centralized Phone Banking system
NEFT ( National Electronic Fund Transfer)
New Initiatives
Tie-ups with various Govt.

Departments:
Govt. Departments:
DGFT ePayments
MCD - Municipal Tax or Fees ePayments
MCD - eTendering Project
Sampark - Utility Bill ePayments
Bangalore One Project - Utility Bill ePayments
Alternate Channels:
ATM Channel
ATM Channel
services:
Banking Services
Payment
ATM.

Services:
a) Funds Transfers
b) Bill payment
c) Shopping

Rs. 5,000
- Balance
Over the last five years, the CAGR for loan growth for the
banking industry has been 25-26 per cent; for Axis Bank it
has been above 40 per cent.
In FY10 they are expected to grow at the rate of 27-28 per
cent and in FY11 at 25 per cent.
expected to grow at 18 per cent in FY10 and 16 per cent in
FY11.
Thus, Axis Banks fast pace of growth is expected to sustain
over the next couple of years.
Core Values of Axis

efficiently
Success through Teamwork, Integrity and People
Conclusion !!!!
Any Query's
Thank you
Project on AXIS BANK

By Group A4 (MBA)
Microanalysis
History of Banking Sector
Pre Independence
Nationalization
Liberalization
Apex Bank RBI

Commercial Banks
Public Banks
Private Banks
Co-operative Banks
Development Banks
Industry Trends
E-cheques
Real Time Gross Settlement
Electronic Funds Transfer
Electronic Clearing Service
Automatic Teller Machine
Point of Sale Terminal
Tele Banking
Electronic Data Interchange
Terms Related to the Banking Sector
Bank Rate
Cash Reserve Ratio
Inflation
Money Supply (M3)
Statutory Liquidity Ratio
Repo
Open Market Operations
Microanalysis
Bank History
Established in 1994 as UTI Bank
Was promoted by
Union Trust of India (UTI)
Life Insurance Corporation (LIC)
General Insurance Corporation Ltd. and its four
subsidies
Came up with an IPO in 1998

Launched a co branded International Credit
Card with MasterCard
Started e-banking services in 2000
Got listed on London Stock Exchange in 2005
Name changed to AXIS Bank in 2007
Corporates Associated
P J Nayak Chairman and CEO
2007 2009
Shikha Sharma Current CEO
and MD appointed in 2009
Adarsh Kishore Non Executive
Chairman
Current Position of the

Company
3rd largest private sector bank
and 9th largest overall
1042 Branches and 4474 ATMs
th
(as
on
30
2010)
Net Profit
Total Assets
Market Cap.June,
(` cr.) Net Interest
Income
ICICI Bank
1,11,980.90
25,706.93
4,024.98
3,63,399.71
HDFC Bank
1,00,555.04
16,172.91
2,948.69
1,83,270.78
Axis Bank
56,696.97
11,638.02
2,514.53
1,80,647.87
Kotak Mahindra
29,812.51
3,255.62
561.11
37,436.31
YES BANK
10,844.44
2,369.71
477.74
36,382.50
SWOT
Strengths
Competitive and profitable banking franchise
High level of services
Knowledge of Indian Market
Supported by various promoters
Services updated by latest technology
Weakness
Competitiveness of cost of services
Market capitalization is low
Positioning
UTI fraud
Customer service
Opportunities
Large retail and corporate market
Wide scope in the rural market
Competitive banking services
Foreign Markets
Threats
Established Governments Banks
Established and growing MNC Banks
Advent and growth of foreign Banks
Inflation and rising lending rates
Financial Analysis
Growth
NET PROFIT
80
30,000,000
70
25,000,000
60
20,000,000
50
40
30
Growth
15,000,000
10,000,000
20
5,000,000
10
0
NET PROFIT
Financial Highlights
Profit after tax up 38.51% to ` 2514.53 crores
Net Interest Income up 35.76% to ` 5004.49
crores
Earnings per share (Basic) increased from `
50.61 to ` 65.78.
Proposed Dividend up from 100% to 120%
Capital Adequacy Ratio stood at 15.80% as
against the minimum regulatory norm of 9%
Growth of bank at 38.51% and 69.50%
against sector growth of 20.64% and 14.13%
for the previous two years
Marketing Strategy
Product
Banking and Savings

Corporate Finance
Investment and Insurance
Loans and Borrowings
Place
Branches 1042
ATMS 4474
Price
Customers get value for money

Lower fee charge
Promotions
Advertising
Print Media
Publicity
Personal Selling
Sales Promotions
HR Policies
Training and Development of
employees
Monitoring and improving employee
performance
Compensation and Reward
Administration
Grievance Handling
Differential Strategy
Service above others
Customer based & service oriented
Max coverage, innovative products
and services
Services provided
Remittance Card
EMV based platinum credit card
CSR Initiatives
Axis Bank Foundation set up in
2006
Transfers 1% of net profit to the
Foundation
Supporting 41 NGOs
536 education centers covered
47055 children covered
24 SMEs exclusively focusing on
MSMEs
Awards & Significant Events

Business World ,Best Bank Fastest Growing Large Bank
Awards
Date
Event
Business
Awards
DECEMBER93
Registered office at
Ahmedabad, head office at
Mumbai.
APRIL 94
First branch of UTI

inaugurated at Ahmedabad.
MARCH 95
Completes first profitable

year.
DECEMBER 00
Bank opens 200th ATM,

2nd largest ATM network in
the country.
NOVEMBER 01
Deposit base for bank

crosses ` 10,000 cr.
JANUARY 02
Banks 100th branch opens

at Tuticorin, Tamil Nadu.
MARCH 05
Issue of Global Depository

Receipts(GDR)
AUGUST 06
Launch of Credit card.
JULY 07
UTI turns to AXIS.
MARCH 07
AXIS Bank
Platinum Card.
Today,Best
ET Intelligence Group
Bank India's Best Bank, India's Fastest

Growing Bank, India's Most
Consistent Bank
Best Bank 2009
NDTV
Profit
Business Best bank Private Sector
Leadership Awards 2009
Forbes Fab 50
The Best of Asia Pacific's Biggest

Listed Company
FE Best Banks Award
Best
New
bank,Rank 1
Talisma
Customer Appreciation Award

2009
D & B Best Bank Awards

Lafferty Award
Private
Sector
Best Private Bank

Best Annual Report-India
launches
Conclusion
Axis Bank has shown substantial
growth in the past few years.
The change in name to have seemed to
achieved its goal as the net profits and
total incomes are growing way over the
growth rate of the sector.
It may not be long before Axis Bank
overtakes HDFC Bank in terms of Net
Income and Total Income to become the
no. 2 bank in Private Sector in India.
Thank You
CASE STUDY
OF
AXIS BANK
Banking on Technology and

Market Segments for
Competitive Space
Introduction
AXIS bank (formerly UTI Bank) is the first new
generation private sector bank to be established
in India under the overall reform programme
initiated by the govt. of India in 1991.
The bank promoted by Unit Trust of India, the
largest mutual fund in India, holding 87% equity.
Axis banks first capital raising post inception
was in 1998through public offering.
The present shareholding pattern is :

Administrator
of
the 27.33%
specified undertaking
of the AXIS
LIC
GIIC & four
10.34%
PSU 5.28%
Insurance companies
Non
promoters 16.96%
Holding
Foreign Shareholding
40.09%
AXIS Bank performance in

2008
The bank has developed a branch network which
is built on customer convenience & service ,
helping it in acquisition of low cost retail deposits,
retail assets, etc.
As on march 31, 2008, bank had 651 branches as
against earlier year, it was 508.
Out of 651 branches,
158 branches are in semi urban & rural areas.
SHIFT IN STRATEGY
Initial business model: the bank started to give more
corporate loans, as they offered higher yields during
FY96 to FY99.
But the overexposure to corporate loans impacted the
banks asset quality.
In 1999, the banks net NPAs to advances ratio jumped to
6.3% in FY99 from 3.7% in FY97.
Realizing the risk of overexposure to this segment, AXIS
bank started shifting its concentration to retail finance,
which presented immense growth opportunities.
Contd
Strategy shift: AXIS Bank started focusing on
both physical & technology infrastructure, which
it thinks are key to acquire customers in retail
finance segment.
Braches increased to 450 from just 35 in FY99.
recovery management system to protect its
business from any eventualities.
AXISs Current Strategy

The
bank
follows
broad
differentiation
strategy.
They are:
1. Managing changing customer needs:
Powerful back office hubs
Banks centralized phone banking center
Zonal level Nodal officers
Know your customer norms
Contd
2. Risk management:
Risk limits are set according to

number of criteria including relevant
market analysis, business strategy &
management experience.
Risk limits are monitored &

reviewed regularly.
Contd
3. Dealing with regulations:
The bank calculates capital charge on

operational risk under both the Basic Indicator
Approach & the standardized approach.
The bank has simultaneously undertaken

internal studies on several lines of business for an
evaluation of the risk profile, capturing of losses
incurred & identifying the key risk indicators.
Contd
4. Keeping pace with the technology :
The banks IT system developed a

process called SETU ( Seamless Electronic
Transfer to AXIS Bank)
The sale & redemption of 58 AXIS

Mutual Funds Schemes was an additional
service through the ATM channel.
Contd
5. Product & service innovation:
Bank set up low cost rural ATMs
at Anand.
created
A channel finance hub was
The strategy making, strategy

execution process for AXIS Bank
Achieve growth through retail banking
Revise as needed in the light of actual

erformance, changing conditions, new
opportunities , & new ideas
Growth Strategy
Objectives
Increasing the market share in various business

resulting in an enhancement in its core income
streams.
Improve the quality of its income streams.
Complementary Strategies for Business

Growth And Development
Strategic alliances and Collaborative

Partnerships
Tie-ups with Maruti & Hyundai For selling

car loans.
Co-financing pact with India In
infrastructure Finance Company Ltd.
(IIFCL) for infrastructure projects.
Tie-up with Bajaj Allianz General
Insurance
Tie-up with Metlife as Bancassurance
Partner.
Outsourcing Selected value-chain Activities
Outsourcing recruitments to
MonsterIndia.com
Outsourcing Print Operations to Xerox.
Outsourcing of Electronic Bill
Payment(EBP)

Superior customer service
Range of Service on ATM machines.
Aggressive Growth in cards business.
Expansion Of Geographical reach.
Financial Advisory services.
Launched an e-Payment Facility for
payment of central excise & service tax.
I-trade
Evaluation Of Growth
Year
Net Profit
%
increases
2004-05
334.58
----
2005-06
485.08
44.98
Scope of Future Growth
Governance & Ethics

Structure
To enhance long term interest of its share holders and
to provide good management ,and the adoption of
prudent risk management techniques and compliance
with the required standards of capital adequacy.
Thereby safeguarding the interest of its other
stakeholders such as depositors, creditors, customers,
supplies and employees.
To identify and recognize the board of Directors And
the management of the bank as the principal
instruments through which good corporate governance
principals are articulated and implimented.
Innovation and
Entrepreneurship
Experimented new delivery models for
Credit, including low cost ATMs at
Anand. Such application of technology
provides convenience as well as product
innovation.
THANK YOU

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Case 2:

Core Values of Axis

About Axis Bank

Administrator of the specified

The Axis banks business is divided into four

Private Equity, Mergers & Acquisitions

Services Of Axis Bank

Apart from this the bank is also into insurance,

Internet Banking Channel

Mobile Banking Channel

Initial business model: bank has started business by

Strategy shift: AXIS Bank started focusing on

Axis s current strategy

Risk limits are set according to number of

Risk limits are monitored & reviewed

Dealing with regulations:

The bank calculates capital charge on

Keeping pace with technology : it includes the

The sale & redemption of 58 AXIS Mutual

Product and service innovation : low cost rural

Complementary strategies for business growth

Value Chain Activities

Outsourcing selected value chain

Offensive Strategic Moves

Superior Customer Service

Axis bank has positioned itself as a bank

Offensive strategic moves

The strategy making, strategy

Achieve growth through retail banking

Revise as needed in the light of

Evaluation of growth(by 2010)

Axis Financial Position

Axis Bank Ratio Analysis

Capital Adequacy Ratio

Net profit margin

Operating Expense / Total

Return on Net worth (%)

Net Interest Income/total

Non Interest Income/total

Net Profit / Total Funds

Earning per share

Equity Dividend (%)

Last two years performance of

Axis Bank Foundation set up in 2006

Growth Prospects of Axis

Current Position of the Company

ABOUT Axis Bank

Current Shareholding Pattern of

The Axis banks business is divided

Private Equity, Mergers & Acquisitions

Axis Bank Performance

The bank also has overseas offices in

Axis Financial Position

Axis Bank Ratio Analysis

Capital Adequacy Ratio

Net profit margin

Operating Expense / Total