A SUMMER TRAINING REPORT ON

Comparative Study of Current Account and Saving Account Products of Axis Bank with Peer Banks

SUBMITTED BY:
Riktesh Gupta(01201110)

GUIDED BY:
Ms. Kiranjit Kaur Virdi (Industry Mentor) Prof. Meghna Dangi (Faculty Mentor)

Submitted for Partial Fulfillment of Degree of Masters of Business Administration from AURO University of Hospitality and Management Surat. Academic Year-2011-2013
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Declaration
I Riktesh Gupta hereby declares that this project entitled Comparison of Current account and Saving account products of Axis bank with peer banks is an authentic work of mine under the valuable guidance and supervision. I also declare that facts and data in this report are true to the best of my knowledge. The report is based on my work and my in-debtness to other works or publications, It has been duly acknowledged. This report has not been previously submitted for the award of my degree/diploma or any other similar examination.

Date: Place:

Riktesh Gupta

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Acknowledgement
A project is never the sole product of a person whose name has appeared on the cover. Even the best effort may not prove successful without proper guidance. For a good project one needs proper time, energy, efforts, patience, and knowledge. But without any guidance it remains unsuccessful. I have done this project (Comparison of Current account and Savings account products of Axis bank with peer banks) with the best of my ability and hope that it will serve its purpose.

To be or not to be is not anything which matters, how to be thankful is what really matters It was really a great learning experience and I am really thankful to my branch executives, who not only helped me in the successful completion of this report but also spread his precious and valuable time in expanding my knowledge base. I wish to acknowledge my gratitude towards MS Kiranjit Kaur Virdi,Branch Head of Axis Bank Varachha Branch,Devendra Mane,Branch Sales Manager of Varachha Branch,Prof Meghna Dangi Faculty Mentor, my friends and all those persons who are responsible for the successful completion of this project.

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Executive Summary

Axis Bank is the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The bank is emerging as one of the fastest services rendering agency not only in Indian economy but also in overseas.

In this project I have endeavoured to conduct a comparative analysis of Current and Saving account products of Axis bank with peer banks. In order to do research more in-depth and to arrive on better conclusions I have taken comparison along with nationalized and co-operative banks. In initial phase of the project I have described the services of Axis bank in details and have then compared its financial performance with its major competitors HDFC and ICICI bank. The project is based on comparative study but I tried to relate it with not only comparison but also with consumer preference and thereby tried to relate it with awareness level also.

Hypothesis is formed to the best of my abilities and tried to associate it with various demographics and attributes. Next I have detailed my findings of the analysis and have concluded the backdrops and also made SWOT analysis. In the end of this project have given suggestions and also framed strategies to capture market share.

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Index

SR. no 1

Title Chapter 1- Industry Profile

1.1 Industry Overview 1.2 History of Banking 1.3 Trends in Banking Industry

Page No 6 7 9 11 12 13 13 13 14 18 39 43 45 47 51 68 71 73

Chapter 2- Company Profile

2.1 Company History 2,2 Mission and Values 2.3 Board of Directors 2.4 Glimpse of Functioning of Axis Bank 2.5 Products and Services 2,6 Financial Overview 2.7 Competitors

3 4 5 6 7 8

Chapter 3- Theoretical Framework Chapter 4- Research Methodology Chapter 5- Analysis and Findings Chapter 6- Conclusion and Recommendation Chapter 7- Bibliography Chapter 8- Annexure

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1. Industry Profile
1.1 Industry Overview Banking system of a nation is the shadow of nations economy. It is the lifeline of the nation and people. A healthy and profitable banking system is just like the backbone of nations economy. It is necessary for a nation to achieve growth and remain stable in this global world and global economy. The Indian banking system, with one of the largest banking networks in the world, has witnessed a series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake in public sector banks (PSBs) and the increased participation of private sector banks. It has helped in ushering a new dawn of progress in Indian horizon. 1.2 History Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government then again nationalized the six next largest in 1980. Despite this commendable progress, serious problem have emerged reflecting in a decline in productivity and efficiency, and erosion of the profitability of thebanking sector. There has been
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deterioration in the quality of loan portfolio which, in turn, has come in the way of banks income generation and enhancement of their capital funds.This led the government to set up a committee named NarasimhamRao. The suggestions made by this committee resulted in to transformation of hitherto highly regimented and over-bureaucratized banking system into market driven and extremely competitive one.

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1.3 Trends in Banking Industry The Indian banking industry can be traced as far back as 1806 with the establishment of Bank of Bengal, the industry was in a state of turmoil. Under the British influence, Calcutta witnessed a surge in trading activities, giving rise to a number of banking establishments during the period. Several banks, set up in order to finance trading, went out of business. For instance, Union bank, formed by Indian merchants, failed due to economic recession during 1848-49 resulting in depositors losing money. Such events resulted in shifting the reigns of the industry into the hands of Europeans till the early twentieth century. From 1906 to1911, several banks were set up based on the principles of the Swadesi movement. The movement inspired Indian businessmen and politicians to set up banks for the Indian community and many new banks were launched to promote trade and finance in communal groups. Some of the prominent ones among these are Bank of India, Corporation Bank, Bank of Baroda, Indian bank, Canara Bank, and Central bank of India. Bank of Bengal, along with its sister banks, Bank of Bombay and Bank of Madras, set up by British East India Company, merged in 1921 to give birth to Imperial bank of India, now known as State bank of India. During 1914-1945, India went through several ups and downs politically and economically and the effects were felt in the banking sector too. The World Wars disrupted banking activities of the nation and almost 94 banks failed during this period. After 1947, however, banking activities flourished. After the partition of India, the government took drastic steps to regulate the banking industry. For example, in 1948, additional powers and authority were vested in the Reserve bank of India to monitor the functioning of the entire banking system. Thepassing the Banking regulation-act in 1949, empowered RBI to further regulate, inspect, and control Indian banks.
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 The nationalization and liberalization of banks 1969 and 1991 respectively also boosted the development of the Indian banking sector. Nationalization resulted in 91% of government holding in the banking industry and liberalization paved the path for private players to participate in the industry. As a result, banks like Oriental bank of Commerce, HDFC bank, ICICI bank, and AXIS bank came into being. Foreign banks too were permitted to set up their offices in India. The rationalization of FDI norms in 2002 also allowed foreign players to acquire stakes in Indian banks. These banks implemented innovative forms of banking like ATMs, mobile banking, phone banking, internet banking, and debit/credit cards. The private players constantly improved services in order to retain customers and win the severe competition which had become a feature of the Indian banking industry. Currently, private banks are going through a series of mergers and acquisitions and public sector banks are shrinking in the form of manpower, equity, and nonperforming assets.

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2. Company Profile
Axis Bank is one of the fastest growing banks in private sector. The Bank operates in four segments, namely treasury, retail banking, corporate/ wholesale banking and other banking business.Today, Axis Bank ranks amongst the top 10 private banks in India. 2.1 Company History Axis Bank is the first of the new private banks to have begun operations in 1994, after the government of India allowed new private banks to be established. The Bank was promoted jointly by the administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. . Previously called UTI Bank, The name of the Bank was changed in 2007 as there was brand confusion because many unrelated shareholder entities such as UTI Securities, UTI Technological Service and UTI Investor Services were also sharing the UTI brand. Moreover, the name was changed to connote stability and solidarity as well as was in line with the banks expanding operations across geographical boundaries.

2.2 Mission and Values of Axis Bank.

2.2.1 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.
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2.2.2 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 Maximisation of Stakeholder value Success through Teamwork, Integrity and People

2.3 Board of Directors Adarsh Kishore Shikha Sharma Rama Bijkurpar K. N. Prithviraj V. R. Kundiya S. B. Mathur Prasad. R. Menon R. N. Bhattacharya Samir. K .Bareua A. K. Dasgupta Som Mittal P. J. Ozza Chairman Managing Director & CEO Director Director Director Director Director Director Director Director Director Company Secretory

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2.4 Glimpse of Functioning of Axis Bank Journey from UTI to AXIS

UTI brand was given in 1994 by its promoters and UTI Bank could use the brand only till January 2008 as per government directives. On July 30, 2007, UTI Bank, the third largest private sector bank in India, officially changed its name to Axis Bank. The Bank today is capitalized to the extent of Rs. 359.76 crores with the public holding (other than promoters) at 57.79%.This is one of the largest ATM networks in the country.

Human Resource in Axis

The ultimate aim of the Human Resources function is to build and manage a motivated pool of professionals by grooming internal resources and recruiting the right skills from the market, develop a high performance work-ethic and create a culture of continuous learning and skill development. The Bank aims in creating and developing human capital to realise its vision of nurturing a mutually beneficial relationship with its employees. Employee engagement and learning, leadership development, enhancing productivity and building multiple communication platforms thus occupied centre stage in the Banks HR objective during the year.

The Bank has tied up with training and educational institutions to build alternate pipelines for recruiting trained manpower through a cost-effective and time-efficient process.

In a major initiative, the Bank launched Axis Academic Interface Program (AAIP) with the 2fold purpose: building long-term partnership with Institutions to offer youngsters an understanding about the financial services industry, and creating Axis Bankers.So far, the Bank has tied up with Manipal University, NIIT, IFBI and Guwahati University.

The total employee strength of the Bank stood at 31,738 as compared to 26,435 in the previous year. The Bank has a young workforce with an average age of 29 years. The equal opportunity employer policy of the Bank contributes strongly to the Axis Bank brand.
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Systems Overview in Axis

The ultimate aim of the systems function at axis bank is to constantly keep in terms with the upgrade of the technology. And provide the customers the best services with the help of this advancement in technology.

Operations Overview in Axis

Operations function focuses on restructuring of the banking operations to reflect a modern approach to banking. And for this an operational framework has been established in order that all transactions are handled with precision. Operational parameters and control functions were refined to ensure efficient functioning of branches.

Future of Axis Bank

Due to flattening of the world, the organization competitive playing field is being levelled. New players are entering into the market. Axis will have to face stiff completion with its existing as well as with new players in giving best services to its customer base and function globally. Miles-stones Achieved Time-line 2006-2009 Milestones/Event 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
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 Re-brands itself as Axis Bank Launches Platinum Credit Card, India's first EMV chip based card Crosses the 3,595 ATM mark in 2009

2001-2005

Private placement of 26% stake to CDC Capital Partners Deposit crosses Rs.100bn mark in 2001, advances crosses Rs.50bn First commercial bank to open an ATM at a post office

100th branch open at Tuticorin, Tamilnadu Crosses the 1,000 ATM mark in 2003 Gets listed on the London Stock Exchange, raises $239.3m

1998-2000

Successfully completes its IPO in 1998 and gets itself listed on NSE and BSE
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 Cash management services as well as credit card launched Profit crosses Rs.500m in 2000 Launches Internet banking module, iConnect retail loans introduced Financial advisory services and ecommerce introduced Second largest ATM network in the country with 200 ATMs Incorporated

1993-1997

as

UTI

Bank,

headquartered in Mumbai First

Branch

inaugurated

at

Ahmedabad Completes first profitable year in operation in 1995 Deposit crosses Rs.10bn mark in 1996

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2.5 Products and Services 1. Accounts 2. Deposits 3. Safe deposit locker 4. Loans 5. Foreign Exchange 6. Investment As a part of project we will only threw light of information on Accounts. 1. Savings Account. A ) Easy Access Savings Account: The account is an endeavour by the bank to understand the consumers' needs and redefine banking to suit customers requirements for a truly comfortable banking experience. Easy Access Savings Account gives them instant access to their money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of their eclectic client base. Customers can avail of all these services with a minimum quarterly average balance of Rs.10000in metro or urban centers, Rs.5000 in semi urban centers and Rs.2500 in rural centers. Features At Par Cheque Book As an Easy Access Savings Account Holder, you will receive the "At-par" cheque book. One can en-cash these cheques as local cheques at any of the 257 centers where the bank has a presence, at no extra cost. Drafts are now history.

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 ATM Network Easy Access Savings Account also entitles them to an International Debit Card with which they can access their account anytime at all Axis bankATMs - both, Visa enabled and Axis banks partner banks - across the country. Withdrawals and deposits (money as well as cheques) are possible with Debit Card. And unlike most other ATMs, an Axis Bank ATM allows one to withdraw upto Rs 40,000 per day. Anywhere Banking One can transact through any of Axis banks branch offices all of which are interconnected for their banking convenience. Transactions like cash deposits, cash withdrawal, transfers and clearing deposits can all be carried out wherever happen to be. Telebanking Telebanking service provides customer instant access to their savings account. It offers customer a wide range of services over the phone such as Account Information, Balance Inquiry, Transaction Details, Status of customer Cheque (available only during branch business hours) and even Statement of Account on Fax. Internet Banking The idea of "your Bank on your desktop" is now a reality with Internet Banking. Customer can look-up the status of their savings account, request, new cheque book, undertake a range of financial transactions, avail financial advisory services, get information on mutual funds and shop online by just clicking the mouse. Free SMS Banking SMS Banking enables customer of Axis to bank with them through their mobile phone irrespective of where they are. Avail facilities like balance inquiry, debit or credit alerts, last three transaction details and cheque status.

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 Account Statement Quarterly statements are delivered free of cost. Quarterly Interest Every quarter, interest would be credited at the rate of 3.5% per annum in your account Free monthly e-statement Axis Bank offers the facility of free monthly e-statement.

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B. Prime Savings Account: At Axis Bank, they have always strived to pace their products with the growing needs of their customers. The Prime Savings account has therefore been designed to suit customer financial requirements. Features: Wider accessibility As a Prime Savings account holder, one can enjoy access to a wide network of over 1000 branches and one of the largest ATM networks (6890 ATMs as on 30th June, 2011) in India giving easy access to ones account from almost any corner of the country. Greater convenience To simplify daily banking, prime Savings account comes with a Titanium Debit Card. This unique card comes with withdrawal and POS limit of Rs. 50,000 per day.Debit Card also comes with a comprehensive insurance cover inclusive of zero lost card liability, purchase protection of Rs.50000 and personal accident insurance up to Rs. 3 lakhs. [To keep customers personal accident insurance cover activated, they should have made a purchase transaction in 90 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident.]* More comfort Through o 24 hour Internet Banking and Tele Banking services, customer of Axis bank can enjoy the ease of banking from home or office. Through these comprehensive services, one can access a range of facilities including online funds transfer, requests for a new chequebook, online shopping and information on mutual funds.

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 Enhanced privileges Prime savings customer are eligible for special offers and discounts on locker fee,demat and online trading accounts Added speed Through the 'At Par' cheque facility, customer of Axis bank have the unique advantage to encash their cheques as a local cheque at more than 330 centres where the bank has a presence at no extra cost. In addition the account enables one to issue cheques without any limit, which will be treated as 'At Par' across these locations. They can avail of all these services with a minimum average balance of Rs 25,000 in metro/urban centers and Rs 10,000 in semi-urban/rural centers or with a TD of Rs 100,000 for a minimum period of 6 months. . Additional Features at a glance

Free Titanium Debit Card

o

Enhanced ATM and POS limits of Rs.50,000 (Annual charge waiver offered on POS transaction of Rs. 50,000 p.a./ 10 POS transactions of any value in year)

o o o

10 Free transactions at other bank ATMs International Debit card with an Accidental Insurance cover uptoRs. 3 lakhs Lounge Access at airports

Channels
o o o o

Free quarterly statement of account Free SMS Banking Facility 24*7 Phone Banking, Internet Banking and Mobile Banking Facility Free monthly e-statement / free passbook facility.

Other Features
o o o

Two Demand Drafts/Pay Orders free per month Increased cash deposit/withdrawal limits at non home branches Option of automatic movement of excess funds in the savings account to higher earning fixed deposits

Access through more than 1419 Branches & 6890 ATMs (As on 30th June, 2011)
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C. Future Stars Savings Account:The Future Stars Savings Account is an exclusive account being offered for children inculcate the discipline of savings in children. This account will act like a piggy bank for the child where their money will be kept safe and earn interest as well. The child of age 12 years and above can also make smart purchases by way of an exclusive debit card. They will also learn to bank at an early age in a better and convenient way. This scheme of savings account has certain unique features specifically needed and used by this target group in order to have better and long term relation with the bank. Features This savings account is loaded with unique features as below:

This Product can be offered to the children in the category of less than 18 years of age. The account has an average quarterly balance of Rs. 2500/- for branches in Urban / Metro / Semi Urban areas and average quarterly balance will be Rs. 1000/- for branches in Rural areas.

The Average Quarterly Balance shall be NIL if a Fixed Deposit of Rs 25,000/- or Recurring Deposit of Rs. 2000/- per month is maintained. The fixed deposit should be for a minimum period of 6 months and the recurring deposit should be for a minimum period of 12 months.

Free personalized cheque book. Free ATM card with daily withdrawal limit of Rs. 1500/- for children below the age of 12 years.

Visa Classic Debit Card for children above the age of 12 years will be offered at Issuance Fee of Rs. 95/- and with annual fee of Rs. 100/-.

The child of age 12 years and above can also opt for an Image debit card with his / her own attractive picture or any other photo they choose. Automated Facility for transferring funds to the childs account from the parents account on a monthly basis.

Free Internet banking facility. The idea is to make the child internet savvy and expose them to the online banking environment.

Online forums with interactive tutorials and games about money.

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Free SMS Banking. Free monthly e-statements / Quarterly Physical Statements.

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D. Prime Plus Savings Account:In Axis Bank, financial products and services are designed by keeping in mind customers tastes and preferences. The Prime Plus account is specially designed for those who want extra features. Features

Wider accessibility

As a Prime Plus Savings account holder, one can enjoy access to a wide network of over 1470 branches and one of the largest ATM networks (more than 8000 ATMs as on 31 Jan 2012) in India giving easy access to your account from almost any corner of the country.

Greater convenience

To simplify daily banking, prime plus savings account comes with a Titanium Debit Card. This unique card comes with withdrawal limit of Rs 50,000 per day and POS limit of Rs. 75,000 per day. Debit Card also comes with a comprehensive insurance cover inclusive of zero lost card liability, purchase protection of Rs.75,000 and personal accident insurance up to Rs. 3 lakhs. [To keep personal accident insurance cover activated, one should have made a purchase transaction in 90 days prior to the day of the incident & report the incident within 60 days of occurrence.]*

More comfort

Through 24 hour Internet Banking and Tele Banking services, one can enjoy the ease of banking from home or office. Through these comprehensive services, one can access a range of facilities including online funds transfer, requests for a new chequebook, online shopping and information on mutual funds.

Enhanced privileges

As a Prime Plus savings customer one is eligible for special offers and discounts on locker fee, demat account and bullion.
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25% waiver on first year locker rent (subject to availability) 100% waiver on first year Demat account AMC Attractive discount on bullion

Added speed Through the 'At Par' cheque facility, onehave the unique advantage to en-cash their cheques as a local cheque at more than 971 centres where the bank has a presence at no extra cost. In addition the account enables one to issue cheques without any limit, which will be treated as 'At Par' across these locations. One can avail of all these services with a minimum average balance of Rs 1 lakh in metro/urban centres and Rs 75,000 in semi-urban/rural centres or with a TD of Rs 5,00,000 for a minimum period of 6 months. Additional Features at a glance Free Titanium Debit Card

Zero issuance fees and waiver of annual charge of Rs 200 offered on POS transaction of Rs. 50,000 p.a./ 10 POS transactions of any value in year

Enhanced ATM withdrawal limit of Rs 50,000 and POS limits of Rs.75,000 10 Free transactions at other bank ATMs International Debit card with an Accidental Insurance cover up-to Rs. 3 lakhs Lounge Access at airports Attractive reward points -1 point for every Rs 200 spent

Channels

Free quarterly statement of account Free SMS Banking Facility 24*7 Phone Banking, Internet Banking and Mobile Banking Facility Free monthly e-statement / free passbook facility.

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Other Features

Two Demand Drafts/Pay Orders free per month at Axis Bank locations Two free Payable At-par cheque books per quarter 25 % waiver on first year locker rent (subject to availability) Attractive discounts on demat account and bullion Increased cash deposit/withdrawal limits at non home branches Option of automatic movement of excess funds in the savings account to higher earning fixed deposits

Access through more than 1470 Branches & 8000 ATMs (As on 31th Jan, 2012)

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E. Women's Savings Account Presenting, Axis Bank's Women's Savings Account. The account is an endeavour by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. Women's Savings Account gives you instant access to your money anywhere, anytime. With the Women's Savings Account, you can manage your money and your life and Furthermore Axis Bank's Women's Savings Account ensures that you have enough time for all the important things in life. Features Free At-par Cheque book As a Women's Savings Account holder, one will receive free "At-par" cheque book, which empowers them to en-cash their cheques as local cheques at any of the Axis Bank branch center. ATM Network Women's Savings Account also entitles to an International Debit Card with which one can access account anytime at all ATMs - both, Visa enabled and partner banks - across the country. Withdrawals and deposits (money as well as cheques) are possible with their Debit Card. And unlike most other ATMs, an Axis Bank ATM allows to withdraw up to Rs.40,000 per day. Anywhere Banking You can transact through any of branch offices all of which are interconnected for banking convenience. Transactions like cash deposits, cash withdrawal, transfers and clearing deposits can all be carried out wherever you happen to be. Telebanking Telebanking service provides one with instant access to account. A wide range of services such as Account Information, Balance enquiry, Transaction Details, Status of cheques (Available only during branch business hours) and Statement of Account on Fax can be availed over the phone.
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 Internet Banking The idea of "your Bank on your desktop" is now a reality with Internet banking. You can look-up the status of your savings account, request your new cheque book, undertake a range of financial transactions, avail financial advisory services, get information on mutual funds and shop online by just clicking the mouse. Free SMS Banking SMS Banking enables you to bank with us through your mobile phone irrespective of where you are. Avail facilities like balance inquiry, debit or credit alerts, last three transaction details and cheque status. Account Statement Quarterly statements are delivered free of cost. Quarterly Interest Every quarter, interest would be credited at the rate of 4% per annum in your account. Free monthly e-statement Axis Bank offers the facility of free monthly e-statement.

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F. Senior Citizen's Account:The account is an endeavour by the Bank to understand the consumers' needs and redefine banking to suit their requirements for a truly comfortable banking experience. Senior citizen Savings Account gives them instant access to their money anywhere, anytime. Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact that a Senior citizen's banking requirements are wholly different and require special consideration. Features: Free At-par Cheque book As a "Senior Citizen" Savings Account holder, they will receive free "At-par" cheque book, which empowers to en-cash your cheques as local cheques at any of the Axis Bank branch center. ATM Network Senior Citizen Savings Account also entitles them to an International Debit Card with which they can access their account anytime at allATMs - both, Visa enabled and their partner banks across the country. Withdrawals and deposits (money as well as cheques) are possible with Debit Card. And unlike most other ATMs, an Axis Bank ATM allows to withdraw upto Rs.40,000 per day. Anywhere Banking One can transact through any of the branch offices all of which are interconnected for ones banking convenience. Transactions like cash deposits, cash withdrawal, transfers and clearing deposits can all be carried out wherever it happen to be. Telebanking Telebanking service provides them with instant access to their account. A wide range of services such as Account Information, Balance enquiry, Transaction Details, Status of their Cheques
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(Available only during branch business hours) and Statement of Account on Fax can be availed over the phone. Internet Banking The idea of "your Bank on your desktop" is now a reality with Internet Banking. Customers can lookup the status of your savings account, request new cheque book, undertake a range of financial transactions, avail financial advisory services, get information on mutual funds and shop online by just clicking the mouse. Free SMS Banking SMS Banking enables customer to bank with them through theirr mobile phone irrespective of where they are. Avail facilities like balance inquiry, debit or credit alerts, last three transaction details and cheque status. Additional Features at a Glance Account Statement Quarterly statements are delivered free of cost. Quarterly Interest Every quarter, interest would be credited at the rate of 4% per annum in your account. Free monthly e-statement Axis Bank offers the facility of free monthly e-statement. Free Senior Citizen ID card

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G. Pension Savings Account:Pension Savings Bank Account from Axis Bank is specifically, designed for Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly different and requires special consideration. Benefits

Timely communication to the customer on receipt of the PPO No delays in commencement of pension disbursals - The Bank is handling the disbursement of Pension under a Centralised Pension Disbursement Module wherein the Pensioner records are credited centrally through its Centralised Pension Payment Hub (CCPH) at Mumbai.

Timely issue of Form- 16A for tax deducted at source in the immediately previous financial year

Timely revisions based on changes in rates of Pension or Dearness Allowance, done centrally from the CCPH

Features

Zero Balance Savings Account Anywhere Banking - Available at all centers Free Multi-city At Par Cheque Books Free monthly e-statement Free International Debit-cum-ATM Card for the primary &Joint holder. The account can be opened jointly only with spouse.

Personal Accident Insurance Cover of Rs. 2 lakhs [To keep your personal accident insurance cover activated, you should have made a purchase transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident.]

Free Payorder & Demand Draft

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Internet Banking - Available through "I Connect" Tele-banking - Free, Available 24 hours at select centers Mobile Banking Facility Demat Account - Account opening charges waived Safe Deposit Lockers - Preferential allotment

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2. Current Accounts A Business Prime- It has three types of accounts 1) Business Advantage Current Account:It has a low monthly average balance requirement of only Rs 25000(Rs 12500 for Semi Urban/ Rural Branches) and is suitable for small firms and proprietors. Features Higher free Home Branch Cash Deposit limit of 300000 per month Unlimited free Home Branch Cash withdraw Unlimited free fund transfer between Axis Banks Accounts Free Non-cash transaction limit of Rs 30 lakh per month 50 cheque leaves and total of 50 transaction per month free

2) Business Select Current Account:The Business Select Current Account requires a Monthly Average Balance of Rs 50000 (Rs 25000 for Semi Urban/ Rural Branches). It offers a flexible cash deposit limit of up to 12 times the monthly average balance, at no extra charge. Suitable for seasonal business and business spread over multiple locations. Features Cash Deposits of up to Rs 6 lakh at no charges Flexibility to increase cash deposits of up to 12 times monthly average balance at no extra charge Unlimited free fund transfer between Axis Bank Accounts Free Non-cash transaction limit of Rs 60 lakh per month 100 cheque leaves and total of 100 transactions per month free
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3)Business Classic Current Account:With a Monthly Average Balance requirement of Rs 1 lakh (Rs 50000 for Semi Urban/ Rural Branches) a Business Select Account is suited for small medium and micro enterprises with limited cash flows. Features Free Home Branch Cash Deposit of up to Rs 12 lakh per month. Unlimited free Home Branch Cash withdrawal Unlimited free funds transfer between Axis Bank Accounts Free Non-cash transaction limit of Rs 1.2 crore per month 200 cheque leaves and total of 200 transaction per month free

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B. Business Priority- The business priority account has 2 types of accounts with specialised features and services. 1) Business Privilege Current Account:Business privilege Current Account with a Monthly Average Balance requirement of only Rs 5 lakh (Rs 2.5 lakh at Semi urban/ Rural Branches) comes with lots of features suited for small and medium business enterprises. Features Free Home Branch Cash Deposit of up to Rs 60 lakh per month Free Non-Home Branch Cash Deposit of up to Rs 12.50 lakh and cash withdrawal of up to Rs 25 lakh per month Free Non-cash transaction limit of Rs 6 crore per month 500 cheque leaves and total of 500 transactions per month free Free RTGS/NEFT facility

2)Channel One Current Account The channel One Current Account offers premium personalised doorstep services whilst requiring a Minimum Monthly Average balance of only Rs 10 lakh (Rs 5 lakh at Semi Urban/ Rural Branches). Features Relationship Manager Services Free Cash deposit up to Rs 1.2 crore per month (in the Home Branch) Free Doorstep Banking Free RTGS/NEFT facility Free cheque book up to 1000 leaves with cheque protection facility

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CBusiness Wealth 1) Club 50 Current Account:A unique and un-parallel product in the industry, this premium Current Account offers flexibility to maintain a half yearly average balance of Rs 50 lakh (Rs 25 lakh at Semi Urban/ Rural Branches) instead of maintaining a Monthly Average Balance. It is therefore suitable for businesses that do not have regular monthly cash flows but still require premium banking services. Features Relationship Manager Services Free Cash deposit up to Rs 2 crore per month (in the Home Branch) Continuous cheque stationery with hologram Free gold credit card Value added benefits like free subscription to magazines, complimentary Priority Banking Account and other lifestyle benefits and privileges

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D.Normal Current Account:Normal Current Account with a Monthly Average Balance requirement of only Rs 10000 (Rs 5000 for Semi Urban/ Rural Branches) Features Cash deposit of up to Rs 120000 per month Unlimited free Home Branch Cash Withdrawal Unlimited free fund transfer between Axis Bank Accounts Free Non Cash transaction limit of Rs 120000 per month

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2.6Financials Over-View

Balance Sheet
Capital & Liabilities Total Share Capital Equity Share Capital Share Application Money Preference Share Capital Reserves Revaluation Reserves Net Worth Deposits Borrowings Total Debt Other Liabilities & Provisions Total Liabilities Assets Cash & Balances with RBI Balance with Banks, Money at Call Advances Investments Gross Block Accumulated Depreciation Net Block Capital Work In Progress Other Assets Total Assets Contingent Liabilities Mar '12 413.2 413.2 0 0 22,395.34 0 22,808.54 220,104.30 34,071.67 254,175.97 8,643.27 285,627.78 Mar '11 410.55 410.55 0 0 18,588.28 0 18,998.83 189,237.80 26,267.88 215,505.68 8,208.86 242,713.37 Mar '10 405.17 405.17 0.17 0 15,639.27 0 16,044.61 141,300.22 17,169.55 158,469.77 6,133.46 180,647.84 Mar '09 359.01 359.01 1.21 0 9,854.58 0 10,214.80 117,374.11 10,185.48 127,559.59 9,947.67 147,722.06 Mar '08 357.71 357.71 2.19 0 8,410.79 0 8,770.69 87,626.22 5,624.04 93,250.26 7,556.90 109,577.85

10,702.92 3,230.99 169,759.54 93,192.09 3,583.67 1,395.12 2,188.55 70.77 6,482.93 285,627.79 449,976.11

13,886.16 7,522.49 142,407.83 71,991.62 3,426.49 1,176.03 2,250.46 22.69 4,632.12 242,713.37 429,069.63

9,473.88 5,732.56 104,343.12 55,974.82 2,107.98 942.79 1,165.19 57.24 3,901.06 180,647.87 296,125.58

9,419.21 5,597.69 81,556.77 46,330.35 1,741.86 726.45 1,015.41 57.48 3,745.15 147,722.06 104,428.39

7,305.66 5,198.58 59,661.14 33,705.10 1,384.70 590.33 794.37 128.48 2,784.51 109,577.84 78,028.44
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Bills for collection Book Value (Rs)

64,895.87 551.99

57,400.80 462.77

35,756.32 395.99

29,906.04 284.5

16,569.95 245.13

Income Statement
Mar '12 Incomes Interest Earned Other Income Total Income Expenditure Interest expended Employee Cost Selling and Admin Expenses Depreciation Miscellaneous Expenses Preoperative Exp Capitalised Operating Expenses Provisions & Contingencies Total Expenses Net Profit Extraordinary Items Profit brought forward Total Preference Dividend Equity Dividend Corporate Dividend Tax Per Share Data Earnings Per Share (Rs) 21,994.65 5,420.22 27,414.87 13,976.90 2,080.17 2,478.47 342.24 4,294.88 0 6,867.53 2,328.23 23,172.66 4,242.21 0 4,969.77 9,211.98 0 770.07 0 15,154.81 4,632.13 19,786.94 8,591.82 1,613.90 2,406.59 289.59 3,496.55 0 5,734.55 2,072.08 16,398.45 3,388.49 0 3,427.43 6,815.92 0 670.36 0 11,638.02 3,945.78 15,583.80 6,633.53 1,255.82 2,443.05 234.32 2,502.55 0 5,066.76 1,368.98 13,069.27 2,514.53 0 2,348.09 4,862.62 0 567.45 0 10,835.49 2,896.88 13,732.37 7,149.27 997.66 1,572.83 188.67 2,008.57 0 3,590.42 1,177.31 11,917.00 1,815.36 0 1,553.87 3,369.23 0 420.52 0 7,005.32 1,750.59 8,755.91 4,419.96 670.25 952.61 158.11 1,483.94 0 2,454.03 810.88 7,684.87 1,071.03 0 1,029.07 2,100.10 0 251.64 0 Mar '11 Mar '10 Mar '09 Mar '08

102.67

82.54
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62.06

50.57

29.94
40

Equity Dividend (%) Book Value (Rs) Appropriation Transfer to Statutory Reserves Transfer to Other Reserves Proposed Dividend/Transfer to Govt Balance c/f to Balance Sheet Total

160 551.99

140 462.77

120 395.99

100 284.5

60 245.13

1,112.46 0 770.07 7,329.45 9,211.98

836.95 338.84 670.36 4,969.77 6,815.92

867.43 0.31 567.45 3,427.43 4,862.62

600.62 0 420.52 2,348.09 3,369.23

294.6 -0.01 251.64 1,553.87 2,100.10

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Ratios Analysis 1. Current Ratio

Current Ratio CA/CL Mar '12 0.03 Mar '11 0.02 Mar '10 0.03 Mar '09 0.03 Mar '08 0.03

Interpretation
Compared to last year there is again improvement in companys liquidation . As it again came as same as in that of year 2010, 2009 and 2008 we can say that firm is maintaining its policy.

2. Quick Ratio Quick Ratio Liquid Assets/ 21.63 19.6 19.19 9.52 9.23 Mar '12 Mar '11 Mar '10 Mar '09 Mar '08

Liquid Liabilities

Interpretation As the quick ration increases over a period of time firms is more likely to meet its short-term obligations. The liabilities are at lesser risk and even investors stake is in good hold as company is able to make payments.

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3. Total Asset Turnover Ratio

Total Asset Turn-over Ratio
Sales/ Total Asset

Mar '12 0.1

Mar '11 0.09

Mar '10 0.09

Mar '09 0.11

Mar '08 0.1

Interpretation A higher total asset turnover ratio is more favourable than a lower one. As we can see from the table that companys manager are using assets efficiently in order to generate revenue. Though in last year it increased but compared to 2008-09 it is still less due to a drastic change in policies of R.B.I. 4. Dividend Pay-out Ratio
Dividend Pay-out Ratio Dividend/ Earnings

Mar '12 16.79

Mar '11 18.22

Mar '10 20.64

Mar '09 20.98

Mar '08 20.47

Interpretation As compared to year 2010-2011 last years dividend is less. The reason behind is the inflation rate was on continuous hike and the depression that slowly increasing in European countries. The year of 2008-09 was the most luckiest both for bank and its invstors.

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2.7 Competitors The major competitor of Axis bank is HDFC bank and ICICI bank in private sector. Though nationalized bank and co-operative bank also there but its not proper to compare their financials as it is funded by R.B.I up to greater extent. Their service level is also not high as that of private bank and nor they are costly. Comparative Table showing brief of income statement of Competitors of Axis bank
Income Statement Net Sales Other income Total revenues Gross profit Depreciation Interest Profit before tax Minority Interest Prior Period Items Extraordinary Inc (Exp) Tax Profit after tax Gross profit margin Effective tax rate Net profit margin Rs M Rs M Rs M Rs M Rs M Rs M Rs M Rs M Rs M Rs M Rs M Rs M % % %

Hdfc Bank 276,056 54,524 330,580 260,845 88,071 151,061 76,237 -300 0 0 23,466 52,471 94.5 30.8 19

Axis Bank 219,949 54,872 274,821 208,534 60,999 139,691 62,716 0 0 0 20,518 42,198 94.8 32.7 19.2

ICICI BANK 379,949 286,634 666,583 365,884 295,520 250,132 106,866 -2,947 0 0 27,490 76,429 96.3 25.7 20.1

HDFC/Axis bank 125.50% 99.40% 120.30% 125.10% 144.40% 108.10% 121.60% 114.40% 124.30% 99.70% 94.10% 99.10%

ICICI/Axis bank 57.90% 19.10% 41.20% 57.00% 20.60% 55.80% 58.70% 0.00% 74.60% 55.20% 98.50% 127.20% 95.40%

Table shows that HDFC and Axis bank are one of the close competitors but still large share is with ICICI bank. Though ICICI and HDFC are competitors the share price in 2011 was of Axis bank is higher than that of its competitors. The EPS is also as high as 74.5 rs while that of ICICI bank is 54.1 and of HDFC is just 15.9 rs respectively.

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Theoretical Frame work

Economic literature pays a great deal of attention to the performance of banks, expressed in terms of competition, concentration, efficiency, productivity and profitability. This research provides an all-embracing framework for the various existing theories in this area and illustrates these theories with practical applications. The research is carried on to know the customer preference regarding the current account and saving account products of various banks and to check the level of satisfaction they have and by combining them to know their awareness level. Evaluating a broad field of research, the research describes a market share of bank and demonstrates how several widely-used models can be fitted into this framework. The results include a set of recommendations for a future research agenda also.

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4.1Research Plan
4.1.1. Research Outline The study has been carried out for comparison of current and saving account products of Axis bank with peer banks. The customer segment chosen for this study is income group of all class along with aged people.

4.1.2. Research Objective Primary Objective: To thoroughly study the products & services of Axis Bank. To compare the banking products and services offered by Axis Bank and other Nationalized and Co-operative Bank. To study the customers expectations, behaviour, responses & preferences for various saving accounts and Current account of Axis Bank. To study the marketing strategies adopted by Axis Bank to maintain & increase its market share & to retain its customers.

Secondary Objective: To study banking operations. To get the knowledge about marketing strategies of bank.

4.1.3. Research Design

4.1.3.1 Data sources Primary data sources: Employees, aged person men and women from all class of society are interviewed personally and their preference is recorded on basis of questionnaire. Secondary data sources: Articles on internet, annual reports and guidelines published by R.B.I

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4.1.3.2 Research Approaches The research was conducted through getting responses from the chosen sample population units by administering questionnaires. Along with the questionnaires, most of the respondents were also interviewed.

4.1.3.3 Research Instrument The instrument used was Questionnaire. The questionnaire had three major parts, one about current and savings account, the second part is about preference for banks, especially Axis, SBI and co-op banks while the third part dealt with questions on perception of individual towards the services provided by their respective banks.

4.2Sampling size-120 questionnaires

4.1.3.5 Sampling Frame- Surat

4.1.3.6 Sampling method

The sample was selected through convenient sampling by randomly surveying the respondents.

4.1.4. Research Process:

Origin and formulation of research problem Formulation of research design Selection of sources of data Decision of data collection techniques Sampling decision Field work to collect data Analysis of data Preparation of research report
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4.1.5 Data Analysis The tools used for analysis and classification of data are hypothesis calculated by means of chi0square and presented with the help of bar, column and pie charts. Data analysis is also done through ranking and rating scales. 4.1.6Duration of the Study: Duration of the study is 8 weeks.

4.1.7Limitations Research is only done in Surat city. Respondents are biased toward their current bank. Time is 8 weeks, so much of economic fluctuations are not seen.

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5.1 Analysis
1. Which type of account you have? A/c Savings Current Salary HUF Respondents Percentage 53 45 19 3

44.16 37.5 15.83 2.5

Interpretation
Out of 120 respondents the majority of respondents were of saving account and current account. Even in saving and current account the major share of bank is Axis bank it holds 23 saving account and 24 current accounts. HDFC is giving tough competition to Axis bank but Axis bank is still able to uphold its share from its competitors. While in salary account the major share is of State bank of India it holds 16 out of 19 accounts. This is due to its minimal charges along with the image of nationalized associated with it. HUF-Hindu Undivided Family account is a special type of account where information of all member is taken along with their PAN card and is handled by only 1 person i.e. karta. It is less prevalent due to lengthy paper work and is not in existent also in many banks.

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2. How often do you visit the branch? Visit Daily Weekly Fortnightly Monthly Respondents Percentage 9 34 29 48

7.5 28.33 24.17 40

Interpretation
Out of 120 customers interviewed the majority of customer visits branch monthly. Even though number of branches today is located near home/office place the transaction is so effective that it can be done without coming to branch. Monthly visit to branch is mostly due to entry in passbook or for statement if it is not reachable within the time period given by bank.

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3. May we know your most frequent point of interaction with bank? Respondents out of 120 Percentage 44 102 76 88 91 68

Interaction Visit Branch ATM Phone Banking Drop-Box Internet Banking Mobile Banking

36.67 85 63.33 73.33 75.83 56.67

Interpretation
As a most frequent point of interaction customer give lesser preference to visiting of branch and give greater importance to e-banking i.e. internet banking. On survey we analysed that out of 40 customers of Axis bank only few said that he has to come frequently to bank. While the case is opposite in co-operative banks. Most of them said their frequent point of interaction is by visiting branch. As the net banking facility is not so well in nationalized bank i.e. State bank of India HDFC and Axis bank has greater share in it and thats the reason where nationalized banks are lacking in providing service as well as safety in terms of security. Drop box, phone banking and mobile banking are slowly adopted by co-operative bank but Axis bank is the best service provider in it. Customer gets minute to minute information in seconds and it has also developed its app.
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4. Have you started e-banking or Non branch banking?

Yes No

Internet banking Mobile banking Not Started

29 18 73

Interpretation
Due to insecurity from cyber-crimes customers of Surat still prefer branch banking,out of 120 only 47 customers give preference to non-branch banking. And of that 47 also only 29 are in favour of e-banking while others are in favour of mobile banking. The customers who favour this are the undoubtedly ones the customers of private bank. Nationalized bank still encounters problems with their servers and co-operative bank are not able to afford it. Of 73 customers who have not yet started E-banking most of them belongs to co-operative bank.

5. Awareness about ATM and Internet Transaction

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ATM

Cheque book request Fund Transfer Mobile Recharge Cheque book request Fund Transfer

Respondents out of 120 Percentage 37 30.83 98 81.67 78 65 78 88 61 97 19 65 73.33 50.83 80.83 15.83

Internet Fixed deposit application Bill payment/purchases Demand draft request

Interpretation
The bar diagram shows the awareness level of customer who have ever used the services either from internet or from ATM machines. The services from ATM are few and normally customer use ATM only for withdrawing cash and some time for recharge of mobile. The reason for not using ATM machines mostly for fund transferring is that customers are not aware that their ATM machine can perform other services too. Internet services are widely used for online fund transfer and also for payment of purchases made. According to one survey online shopping is the best ideal mode to save your pocket expenses as you get variety of things on just easy go click.

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6. May we know your major reasons for bank branch visits? Respondents out of 120 Percentage 89 109 89 59 78 63 65

Reason DD/PO Funds Transfer(Rtgs/Neft) Statement Cheque Deposit FD opening and renewal Cash withdraw/ Deposit A/c opening

74.17 90.83 74.167 49.17 65 52.5 54.17

Interpretation
The majority of the customers are coming for branch visit is due to Fund transfer i.e. RTGS and NEFT. The percentage is as high as 90 which is quite dominant. Due to urgency of funds private bank like Axis and HDFC RTGS is much speedily done within minutes. Though compared to Axis HDFCS RTGS processing speed is high but the difference is not much and is not much effective.

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7. May we know your reason for bank branch selection?

Reason Near to home/office Convenient to do transaction Services of bank is attractive Attractive brand name

Respondents 81 87 82 93

Percentage 67.5 72.5 68.33 77.5

The following table showing bank wise reason customer preferred for bank branch selection.

Reason

AXIS

HDFC

SBI

CO-OP

Near to home/office

12

16

23

30

Convenient to do transaction

14

13

28

32

Services of bank is attractive

17

17

31

17

Attractive brand name

19

17

38

19

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Interpretation
The various reasons for selecting bank branch are showed in table. The customer who opt for brand name are mostly of nationalized bank where conveniency to do transaction are rare. One who goes for services are mostly of private banks. As here we can see that out of 40 respondents of private bank Axis bank is leading in terms of services as well as brand name. Though number of branches is less than HDFC its on expansion stage and will soon come out of it with strong customer base.

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8. Ratings on a scale of 3 according to perception people having for banks.

AXIS Attributes / Ratings Customer Care Bank Charges Behaviour of staff/personalized attention Working hour Location Turnaround time Grievances/queries handling 1 2 8 2 5 6 3 6 4 4 7 2 1 6 4

HDFC 2 4 2 3 5 9 4 5 5 1 13 5

SBI 2 10 7 3 16 20 4 1 8

COPERATIVE 1 20 9 2 6 8 1 0 8 9 1 5 2 0 3 4 15 4 10 8

4 3 2 3 4

1 4 5 2 5

8 7 9 7 7

7 6 4 8 4

3 2 1 3 1

7 3 3 1 3

5 10 10 10 6

5 5 6 6 1 0

13 8 5 5 9

16 19 7 7 13

9 8 18 15 10

2 5 10 13 8

15 16 19 13 3

9 10 7 9 7

6 6 5 3 10

Interpretation
The customer of Axis bank are the most happiest in terms of attributes. Though the cost is much high but customers are ready to pay for the services if they are beneficial. On the other hand SBI customer are happy in cost as its less but services are worst even more worse than co-operative banks
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5.2 Hypothesis

A.) H0: There Is No Association Between Income and Choice of Account. H1: There Is Association Between Income and Choice of Account.

B.) H0: There Is No Association Between Occupation and Choice of Account. H1: There Is No Association Between Occupation and Choice of Account.

C) H0: There Is NoRelation Between Banks and Attribute. H1: There Is Relation Between Banks and Attribute.

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Table 1 Association of Income with Choice of Account

Income

less than 1lac Choice of A/c

1lac-3lac

3lac-5lac

more than 5 lac

Total

Saving a/c Current A/c Salary A/c Huf a/c Total

21 7 9 0 37

15 10 5 3 33

11 12 3 0 26

6 16 2 0 24

53 45 19 3 120

Chi-Value DF critical value

24.21198172 9 16.92

HO is Rejected

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25

20

1. Association of Income with Choice of Account income less than 1lac 1. Association of Income with Choice of Account income 1lac3lac 1. Association of Income with Choice of Account income 3lac5lac 1. Association of Income with Choice of Account income more than 5 lac

15

10

0 Choice of A/c Saving a/c Current A/c Salary A/c Huf a/c

At 5% level of significance, and degree of freedom is 9, the critical value is 24.21198172. Chi square Values are more than the Critical Value, hence null hypothesis is rejected. This means there is association of income with choice of Account.

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Table 2 Association of Occupation with Choice of Account

Occupation

Business-man Choice of A/c

Profession

Salaried Person

Others

Total

Saving a/c

14

13

12

14

53

Current A/c

28

13

45

Salary A/c

11

19

HUF a/c Total

0 42

0 37

0 19

3 22

3 120

Chi-Value

47.5043

DF

critical value Ho is rejected

16.92

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30

25 2. Association of Occupation with Choice of Account Occuption Business-man 2. Association of Occupation with Choice of Account Occuption Profession 2. Association of Occupation with Choice of Account Occuption Salaried Person 2. Association of Occupation with Choice of Account Occuption Ohers

20

15

10

0 Choice of A/c Saving a/c Current A/c Salary A/c HUF a/c

At 5% level of significance, and degree of freedom is 9, the critical value is 47.5043 . Chi square Values are more than the Critical Value, hence null hypothesis is rejected. This means there is association of Occupation with Choice of Account.

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5.3 Swot analysis

STENGTHS

Brand name Support of various promoters High level of services Knowledge of Indian market

WEAKNESS Market capitalization is very low Not been fully able to position itself correctly

OPPORTUNITIES

Growing Indian banking sectors People are becoming more service oriented In the global market Dissatisfied customers

THREATS From the various competitors Foreign banks Government banks Future market trends Advent of MNC banks

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5.4 Findings
The research conducted shows that the results are more in favour of private banks. It suggested that a large market share has been captured by Axis Bank and HDFC Bank. Out of two Axis bank is enjoying the maximum market share. The reason is that some of the services like withdrawing fund at any moment, not giving but maintaining average balance in account are the reasons for that. Most of the people said that they visit the branch half-monthly or monthly. The customers who visit the branch daily are mostly that customer who doesnt have remote services of bank and they are co-operative banks. The customers most frequent point of interaction is ATM. Customer are less aware about e-banking but Axis bank is doing good campaigning by making its customer aware about net banking and also its benefits and by providing security levels in net banking its customers are satisfied. Attribute ratings are also among all Axis bank is ruling over its competitors. Last 3years report showed that deposits in Axis bank increased by more than 10% which is much good rate inspite of many changes in policies of R.B.I. The staffs of the Axis bank is the best in handling its customers with great dignity and courtesy; where at the same time that of State Bank of India are on bad side. Though customers are using ATM they are not much aware of its services. They mostly use it for withdrawing cash. The reason for coming to branch is mostly for Fund Transfer and DD/PO. Customer like the pick-up services of cheques by Axis bank. Axis bank is much powerful in creating its brand name as its marketing tool. By opening branches in the remote places in Surat city many customer are able to cater its services and has started increasing market share.

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6.1 Conclusion

Marketing plays a vital role in the growth and development of the country the development of the marketing has always kept pace with the economic growth of the country. Now the modern marketing faces the high competition. The consumer needs are satisfied only when information are collected from the consumers. Our modern marketing is a consumer oriented marketing. It begins with consumer and ends with consumer. The findings of the study reveals that most of the customers preferred banking with private banks and that to with HDFC and Axis bank. Bank account is necessity and net banking is day by day getting more preferred, hence those who will provide the best service with least cost will surely going to rule the market.

Axis banks promotional campaign with its brand ambassador Amir Khan has also helped in getting customer attraction and as Axis bank has tied up with various universitys for their banking it shows that it is the best service provider in it. Though the customers of Kissan account were not satisfied with bank they are positively handled.

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6.2 Recommendations
On the basis of conclusion and recommendations it is recommended that Axis bank should adopt marketing tools in order to get more customers attraction. It is not at all ethical to change the average balance maintaining rules without informing the customers about that and charging them as high as 750rs. Head branch should note that Kissan account holder should be either contacted on phone or face to face and should be explained the changes made in account. Bank lost its many customers due to this 1 mistake. The bank should make following strategies for overcoming bottlenecks it facing from customer and for increasing market share. 1 Plastic card As many customer are unaware about using ATM card a detailed manual of operating in multiple language should be given. The issuance fee and maintaining fee from 2nd year should be lessened as its high. Even its quality should be improved. The number of transaction in normal ATM card should be increased to more than 10 minimum from other than Axis bank. 2 Zero Balance Account As a part of promotional campaign bank should provide this facility at stipulated time period such as 1 month or some weeks in a year. This will increase the goodwill of the bank and also help in word of mouth advertisements. 3. New Account Kit As a part of companys policy of Axis bank cheque book of new account will be sent by head branch from Bombay. It takes approx. 5-6 days in arrival. It is much time if bank is able to shorten it to 2 days by establishing regional network in every state it will help its customer to start transact speedily and is also helpful in competition. 4. Acknowledging Customers There is no 1 in world who doesnt like appreciation. Every season customers should be greeted on occasions as well as special festive offers should be made aware through post. Remember a happy customer will call 3 more customer but dissatisfied customer will take your 10 customer like what happen Kissan Account. 5. Employees development. They are the real asset of the company. Infect Axis bank is known for its employee strength which is low yet the best resources in Indian banking. But inside picture is slightly different. They are much pressurized. So in order to overcome this various small trips in a month to be given to them and also their family get-to-gather should be made as they least get time in routine. The above strategies are as per my research base.
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Bibliography

1. http://economictimes.indiatimes.com/axis-bankltd/infocompanyhistory/companyid-9175.cms 2. http://www.indiainfoline.com/Markets/Company/Background/CompanyProfile/Axis-Bank-Ltd/532215 3. http://www.equitymaster.com/research-it/compare/comp_sectr.asp 4. http://www.equitymaster.com/researchit/compare/compare_comp.asp?symbol=UTIB-ICBK&value=compare-AXISBANK-LIMITED-ICICI-BANK 5. http://smartinvestor.business-standard.com/BSCMS/PDF/religarehdfc%20bank%20&%20axis_bank-reinitiating%20coverage-28may08.pdf

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ANNEXURE Questionnaire
Dear Sir/Madam; Greetings!!!
As students of Auro University and as a requirement of practical training for our summer internship, may we request your good selves to part with your experience on Current Account and Saving Account products of banks. We confirm that this survey is just for our summer internship and all your provided information shall be strictly kept confidential.Kindly help and advice Hardik Shah/Riktesh Gupta

Name: __________________________ Contact No: _____________________ Type of account: _________________ 1. Can we know your age group?
o o o o 20-30 years 31-40 years 41-50 years 51 & above

Address:_________________________________ Account held with bank:_____________________

2. May we know your occupation? o o o o Businessman Profession Salaried person Others please specify_______

3.

May we know your annual income?

o o o o Less than 1 lac 1-3 lac 3lac-5 lac More than 5 lac

4. How often do you visit the branch? o o o o Daily Weekly Fortnightly Monthly

5.

May we know your most frequent point of interaction with the bank? o o o o o o Visit Branch ATM Phone Banking Drop Box Internet Banking Mobile Banking

6. Have you started ebanking/Nonbranch banking? o o Yes- Internet Banking -Mobile Banking No

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7.

Awareness about Internet and ATM transaction, Have you ever applied for services from: ATM
Cheque book requisition Fund transfer Mobile Recharge

INTERNET BANKING
Cheque book requisition Fund transfer Fixed deposit application Bill Payment/ Purchases Demand Draft request

8.

May we know your major reasons for branch visit?

o o o o o o o DD/PO Funds Transfer(Rtgs/Neft) Statement Cheque Deposit FD opening and renewal Cash withdraw/ Deposit A/c opening

9.

May we know the reasons for your bank branch selection?

o o o o Near to Home Convenient To Do Transactions Brand Name of the bank Services of the Bank is attractive

10. Please rate the following banks on the scale of 3 where 1is the least and 3 is the most according to your perception you are having for reputation of the banks.
Private Bank Nationalized Bank Co-operative Bank

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11. Please rate the following attributes on the basis of your perception about your bank out of 4, where 1 is the least/disappointing and 4 is the most/excellent

S.NO 1. 2. 3.

ATTRIBUTES Variety of Saving bank account /Current account Customer care Bank Charges Behaviour of the staff/ personalized attention Working Hours Location Turnaround time Grievance/queries handling

4. 5. 6. 7. 8.

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