Service failure at

axis bank (case

study)
ABOUT:
• Axis Bank is the third-largest of the private-sector banks in India offering a
wide assortment of financial products.
• The bank was founded in December 1993, as UTI Bank, opening its
registered office in Ahmedabad and corporate office in Mumbai.
• It has 4,050 branches, 11,801 ATMs and 4,917 cash recyclers spread across
the country.
• The bank employs over 55,000 people and had a market capitalization
of ₹1.31 trillion (US$19 billion) .
Services
• Retail Banking
• Corporate banking
1.Credit
2.Transaction banking
3.Treasury
4.Syndication
5.Investment banking and trustee services
• International banking
Service Failure at
axis bank – Dipika
Pallikal
Who is Dipika Pallikal?
• Professional squash player.
• She is the first Indian to break into the top 10
in the PSA Women's rankings.
• Won three WISPA tour titles.
• Arjuna Award - 2012
• Padma Shri - 2014
What happened?
• Dipika’s debit card — issued by Axis Bank — malfunctioned when
she was to pay her hotel bill in Rotterdam (Holland).
• Her debit card failed when she swiped it to pay Rs 30,000 (490
euros) as hotel bill.
• The player then sued the private sector bank for Rs 10 lakh for
causing her distress and mental agony.
• “Despite having a balance of more than ten times the value of the
transaction amount, it was declined,” Dipika said in her
complaint.
What was the verdict?
• The Arjuna awardee won her long-drawn legal match
against Axis Bank in a consumer court in Chennai.
• Holding the bank responsible for deficient service, the
consumer court ordered it to pay a compensation of Rs 5
lakh to Pallikal and another Rs 5,000 towards costs.
• The District Consumer Disputes Redressal Forum,
Chennai South, also ordered the bank to pay a sum of Rs
5,000 to her as costs.
• The Padmashri awardee and India’s top woman
Squash player Dipika said, “This is a victory for the
consumers of India. It reaffirms our faith in
consumer courts. It will motivate other consumers
who are wronged by service providers to stand up
and fight for justice.”
How it affected Axis bank reputation?

• Axis Bank was in the news for all the wrong reasons.
• This incident evoked some comments from Pallikal’s fellow
players, on India and her creditworthiness.
• Axis Bank stated: The card failure was an act of God/the problem
could have been technical.
• The question now is no more about one failed transaction; it is
about service recovery, which, in this case, the bank has been
clearly unsuccessful in doing.
Thank you
Snehil Mishra (06117001717)
Sources
• https://en.wikipedia.org/wiki/Axis_Bank
• https://www.business-
standard.com/article/finance/dipika-pallikal-wins-
consumer-case-against-axis-bank-114032400993_1.html
• https://www.exchange4media.com/advertising-
news/dipika-pallikal-incident-brings-lack-of-empathy-by-
brands-to-the-fore-52627.html