A

PROJECT REPORT
ON
MARKET SEGMENTATION OF TASC
SUBMITTED TO

EMPI B-SCHOOL, NEW DELHI

In partial fulfilment of the requirement for the
award of the Post Graduate Programme of
RESEARCH & BUSINESS ANALYTICS

QuickTimeª and a
are decompressor
needed to see this picture.

2008-2010

SUBMITTED BY

BRHAM KUMAR GUPTA

submitted to
Mr. david easow
director, vc-magtics

1
 ACKNOWLEDGEMENT
This project in itself is an acknowledgement to the inspiration drive and
valuable guidance contributed to it by many individuals. This project
would never have seen the light of day without the help and guidance
that have been received.

I would like to express my sincere appreciation and thanks to Mr.

Kamal Gupta (Regional Coordinator of AXIS Bank) guided me all
throughout my final project. It is under his valuable guidance, constant
interest and encouragement I have completed this project. He devoted
his ever-precious time from his busy schedule and helped me in
complete understanding of my project. If it wasn’t for him, my learning
would be incomplete.

2
 DECLARATION
I here by declare that the project report entitled “ Market Segmentation
of TASC” of AXIS Bank submitted in partial fulfillment of the
requirements for the Post Graduate Program in Research & business
Analytics is my original work and not submitted for the award of any
other degree, diploma, fellowship or any other similar title or prizes.

Place: New Delhi (Brham Kumar Gupta)

Date: Roll No: 2 Batch: 2008-10

3
 TABLE OF CONTENTS
CHAPTER Particulars Page No.

1 Executive Summary 4
2 Company Profile 8
3 Introduction 14
4 Objective 20
5 Products and Services 22
6 Research Methodology 91
7 Comparative Analysis 93
8 Analysis 95
9 Finding 106
10 Conclusion 108
11 Recommendation 110
12 Bibliography 112
13 Questionnaire 114
Tally sheet

CHAPTER-1
4
EXECUTIVE SUMMARY

EXECUTIVE SUMMARY

5
In India the banking sector is segregated as public or private sector
banks, cooperative banks and regional rural banks. Foreign banks
have been given a different head followed by upcoming foreign banks
in this section.
Axis Bank India, the first bank to begin operations as new private
banks in 1994 after the Government of India allowed new private banks
to be established. The project is based on market segmentation of
TASC (trust, associations, societies, corporations) account. This
includes Trusts, Associations, and Societies, Section 25 companies
(Including clubs), Non Governmental Organizations (NGO’s),
Government Departments /Bodies /Agencies. The Bank has witnessed
tremendous growth in Govt. Business over the past 6 years, making it
a leading player among its Peer Banks in this segment today. As an
Agency Bank of RBI, the Bank handles Tax/ Non-Tax Revenue
Collection on behalf of the Central & State Governments, Expenditure-
related Payments of Central Govt. Ministries & Departments and
Collection of Railway Freight & Passenger Revenue for which it
receives Agency Commission from RBI. Under Non-Agency Business,
for which RBI authorization is not required, the Bank strives to
strengthen the existing relationships as also develop new relationships
with various Government Organizations and Central/ State Govt. Public
Sector Undertaking (PSU’s) through customized offerings towards
providing Account Management Services and Collection/ Payment
Services, contributing to Current Account Balances as well as Fee
Income.
During the Year ended March 2008, the Bank has handled Govt.
Business Throughput of Rs. 53,585 Crs. with Zero-Cost Float
contribution of over Rs. 295 Crs. from Tax/ Non-Tax Revenue
Collections, as an Agency Bank. Additionally, the Govt. & PSU
Segment has generated Fee Income of Rs. 16.87 Crs. and contributed
over Rs. 834 Crs. towards Current Account CDAB of the Bank and Rs.
2,723 Crs. towards Current Account year-end balance of the Bank for
the Year ended March 2008.
More recently, in addition to various Govt. Organizations, we are now

6
also targeting the Central/ State Public Sector Undertakings (PSUs) for
providing various Banking and Cash Management Services through
our Regional Desks/ Zonal Desks – Govt. Business. Since these PSUs
(Central PSU/ State PSU) have linkages to some or the other Central
Govt. Ministry/ Department or State Govt. Department, we are making
a strong effort to develop our relationship with these PSUs by
leveraging our Authorized RBI Agency Bank status and the existing
relationships under Govt. Business with these Central Govt. Ministries/
Departments and State Govt. Departments.

Under Non-Agency Business, the focus will be mainly on Govt.

Organizations and Central/ State Public Sector Undertakings (PSU’s),
where RBI authorization is not required, for generating substantial
Current Account Balances/ CDAB as well as Fee Income, wherever
possible.
The emphasis will be on getting associated with various Government
Organizations/ Bodies (Central Govt./ State Govt./ Local Govt./
Autonomous) for contributing to Current Account Balances under
CAGOS Scheme and also contribute to Fee Income from various
services as under:
o Account Management Services for Current Account relationship
o Cash Management Services (CMS)
o Customized Collection/ Payment Services including Vendor
Payments, Pension disbursements, Salary disbursements
o Value Added Services like e-Payments, e-Tendering/ e-Procurement,
Banker to G2C and G2B Projects, etc.
o Disbursement of funds under Govt. Benefit/ Social Security Schemes
through IT Enabled Financial Inclusion.
The customer segments to be primarily targeted are Municipal
Corporations, Housing Boards/ Development Authorities, Electricity
Boards, Railway Divisions, Defence Units, State Government
Departments, etc. Drive the business of Collection of Stamp Duty
through Franking for maximizing the Fee Income from this lucrative
business.

7
For govt. accounts no application of other charges in savings account,
means that such account do not attract any charges for non-
maintenance of balance in the account. The trust/society can send
cheques for collection at any location of axis bank across the country
or deposit cash at any of bank locations and no charge for the same.
• First and only first bank to give at par facility free to all savings
bank account holders.
• At par cheques relive customers from the hassles of making
Demand Drafts and charges levied thereon.
• All third party cheques at axis bank centers will be cleared in the
same time as a local cheque.
• At par thus saves a lot of time and cost associated with
outstation clearing.
• Most of the TASC Customers have satisfied with banks service
• AXIS Bank provides faster service than other banks.
• In Ambala, AXIS Bank has major customer of TASC segment is
army, navy, temples etc.
• AXIS Bank mainly focuses on customer satisfaction not on only
new customers.
• Major income of source of AXIS Bank is TASC Segment
account.

CHAPTER-2
8
COMPANY PROFILE

COMPANY PROFILE OF AXIS BANK

Introduction of Axis Bank

9
AXIS Bank is one of the fastest growing banks in the country and has
an extremely competitive and profitable banking franchise evidenced
by:
Comprehensive portfolio of banking services including Corporate
Credit, Retail Banking, Business Banking, Capital Markets, Treasury
and International Banking. Private players such as Axis Bank that offer
a multitude of delivery channels and have an integrated technology
platform could potentially achieve comparable distribution reach in the
top 200 cities to government banks with substantially fewer branches.
With a presence in the top 150 cities, Axis Bank is very well positioned
to rapidly reap the benefits of the expanded reach by scaling up its
retail foray.
Axis Bank is India’s third-largest private-sector bank after the
significantly larger ICICI Bank. The Bank's Registered Office is at
Ahmedabad & its Central Office is located at Mumbai. Presently, the
Bank has a very wide network of more than 853 branch offices and
Extension Counters. The Bank has a network of over 3,723 ATMs
providing 24 hrs a day banking convenience to its customers. This is
one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in
order to achieve excellence. The bank has won 'Outstanding
Achievement Award' for the year 2005 from Indian Banks Association
for IT Infrastructure, delivery Capabilities and innovative solutions.
As on the year ended March 31, 2009 the Bank had a total
income of Rs. 13,745.04 crores and a net profit of Rs 1,812.93 crores.
The Bank today is capitalized to the extent of Rs. 359.00 crores with
the public holding (other than promoters) at 57.60%.

The Position as on 31st March 2008 was as under

Balance Sheet Size – Rs 1,9577.85 Crores

10
Total Deposits – Rs 87,626.22 Crores

Net Advances – Rs 59,661 Crores

Investments – Rs 33,705Crores

Network of Branches &

Extension Counters – 853

Foreign Offices – 4

Number of ATMs – 3723

Net NPA – 0.36%

History of the Axis Bank

Axis Bank, previously called UTI Bank, was the first of the new private
banks to have begun operations in 1994, after the Government of India

11
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), General
Insurance Corporation Ltd., National Insurance Company Ltd., The
New India Assurance Company, The Oriental Insurance Corporation
and United Insurance Company Ltd. UTI-I holds a special position in
the Indian capital markets and has promoted many leading financial
institutions in the country. The bank changed its name to Axis Bank in
April 2007 to avoid confusion with other unrelated entities with similar
name. Shikha Sharma was named as the bank's managing director
and CEO on 20 April 2009.

Board of Directors

The members of the Board are:

Shri N.C.Singhal Director

Shri J.R. Verma Director
Dr. R.H. Patil Director
Smt. Rama Bijapurkar Director
Shri R.B.L. Vaish Director
Shri M.V. Subbiah Director
Shri Ramesh Ramanathan Director
Shri K.N. Prithviraj Director

Promoters
The largest and the best Financial Institution of the country, UTI, have
promoted Axis Bank Ltd. The Bank was set up with a capital of Rs. 115
crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC
and its four subsidiaries contributing Rs. 1.5 crore each. SUUTI -
Shareholding 27.08%.

12
Erstwhile Unit Trust of India was set up as a body corporate under the
UTI Act, 1963, with a view to encourage savings and investment. In
December 2002, the UTI Act, 1963 was repealed with the passage of
Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by
the Parliament, paving the way for the bifurcation of UTI into 2 entities,
UTI-I and UTI-II with effect from 1st February 2003. In accordance with
the Act, the Undertaking specified as UTI I has been transferred and
vested in the Administrator of the Specified Undertaking of the Unit
Trust of India (SUUTI), who manages assured return schemes along
with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of
over Rs. 14167.59 crores. The Government of India has currently
appointed Shri K. N. Prithviraj as the Administrator of the Specified
undertaking of UTI, to look after and administer the schemes under UTI
- I, where Government has continuing obligations and commitments to
the investors, which it will uphold

If the sharp decline in the retail asset book in the past year in the case
of Axis Bank is part of a deliberate business strategy, this could have
significant implications (not necessarily negative) for the overall future
profitability of the business.
Despite the relatively slower growth of the retail book over a period of
time and the outright decline seen in the past year, the bank’s
fundamentals are quite resilient. With the high level of mid-corporate
and wholesale corporate lending the bank has been doing, one would
have expected the net interest margins to have been under greater
pressure. The bank, though, appears to have insulated such pressures.
Interest margins, while they have declined from the 3.15 per cent seen
in 2003-04, are still hovering close to the 3 per cent mark. (The
comparable margins for ICICI Bank and HDFC Bank are around 2.60
per cent and 4 per cent respectively. The margins for ICICI Bank are
lower despite its much larger share of the higher margin retail
business, since funding costs also are higher).

13
 CHAPTER-3
INTRODUCTION
14
 INTRODUCTION
Banking in India
Banking in India originated in the first decade of 18th century. The first
banks were The General Bank of India, which started in 1786, and
Bank of Hindustan, both of which are now defunct. The oldest bank in
existence in India is the State Bank of India, which originated in the

15
"The Bank of Bengal" in Calcutta in June 1806. This was one of the
three presidency banks, the other two being the Bank of Bombay and
the Bank of Madras. The presidency banks were established under
charters from the British East India Company. They merged in 1925 to
form the Imperial Bank of India, which, upon India's independence,
became the State Bank of India. For many years the Presidency banks
acted as quasi-central banks, as did their successors. The Reserve
Bank of India formally took on the responsibility of regulating the Indian
banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers.

History
The first fully Indian owned bank was the Allahabad Bank, established
in 1865. However, at the end of late-18th century, there were hardly
any banks in India in the modern sense of the term. The American Civil
War stopped the supply of cotton to Lancashire from the Confederate
States. Promoters opened banks banks to finance trading in Indian
cotton. With large exposure to speculative ventures, most of the banks
opened in India during that period failed. The depositors lost money
and lost interest in keeping deposits with banks. Subsequently, banking
in India remained the exclusive domain of Europeans for next several
decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the
1860s.
The Bank of Bengal, which later became the State Bank of India.
Around the turn of the 20th Century, the Indian economy was passing
through a relative period of stability. Around five decades had elapsed
since the Indian Mutiny, and the social, industrial and other
infrastructure had improved. Indians had established small banks, most
of which served particular ethnic and religious communities. The
presidency banks dominated banking in India. There were also some
exchange banks and a number of Indian joint stock banks. All these
banks operated in different segments of the economy. The exchange

16
banks, mostly owned by Europeans, concentrated on

financing foreign trade. Indian joint stock banks were

generally under capitalized and lacked the
experience and maturity to compete with the
presidency and exchange banks. This segmentation
let Lord Curzon to observe, "In respect of banking it
seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden
bulkheads into separate and cumbersome
compartments."

By the 1900s, the market expanded with the establishment of banks

such as Punjab National Bank, in 1895 in Lahore and Bank of India, in
1906, in Mumbai - both of which were founded under private
ownership. Punjab National Bank is the first Swadeshi Bank founded
by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. The
Swadeshi movement in particular inspired local businessmen and
political figures to found banks of and for the Indian community. A
number of banks established then have survived to the present such as
Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara
Bank and Central Bank of India.
Nationalized Banks in India
Nationalized banks dominant banking System in India. The
nationalization of banks in India took place in 1969 by Mrs. Indira
Gandhi the then prime minister. The major objective behind
nationalization was to spread banking infrastructure in rural areas and
make available cheap finance to Indian farmers. Fourteen banks were
nationalized in 1969. Before 1969, State Bank of India (SBI) was the
only public sector bank in India. SBI was nationalized in 1955 under the
SBI Act of 1955. The second phase of nationalization of Indian banks
took place in the year 1980. Seven more banks were nationalized with

17
deposits over 200 crores.

List of Public Sector Banks in India is as follows:

➢Allahabad Bank
➢Andhra Bank
➢ Bank of Baroda
➢Bank of India
➢Bank of Maharashtra
➢Canara Bank
➢Central Bank of India
➢Corporation Bank
➢Dena Bank
➢Indian Bank
➢Indian Overseas Bank
➢Oriental Bank of Commerce
➢Punjab and Sind Bank
➢Punjab National Bank
➢State Bank of Bikaner & Jaipur
➢State Bank of Hyderabad
➢State Bank of India (SBI)
➢State Bank of Indore
➢State Bank of Mysore
➢State Bank of Patiala
➢State Bank of Saurashtra
➢State Bank of Travancore
➢Syndicate Bank
➢UCO Bank
➢Union Bank of India
➢United Bank of India s
➢Vijaya Bank

Private Banks in India

All the banks in India were earlier private banks. They were founded in

18
the pre- independence era to cater to the banking needs of the people.
But after nationalization of banks in 1969 public sector banks came to
occupy dominant role in the banking structure. Private sector banking
in India received a fillip in 1994. When Reserve Bank of India
encouraged setting up of private banks as part of its policy of
liberalization of the Indian Banking Industry. Housing Development
Finance Corporation Limited (HDFC) was amongst the first to receive
an 'in principle' approval from the Reserve Bank of India (RBI) to set up
a bank in the private sector.

Private Banks have played a major role in the development of Indian

banking industry. They have made banking more efficient and
customer friendly. In the process they have jolted public sector banks
out of complacency and forced them to become more competitive.
Major Private Banks in India is:
➢Bank of Rajasthan
➢Bharat Overseas Bank
➢Axis Bank
➢Federal Bank
➢HDFC Bank
➢ICICI Bank
➢IDBI Bank
➢IndusInd Bank
➢ING Vysya Bank
➢Jammu & Kashmir Bank
➢Karnataka Bank
➢Karur Vysya Bank
➢Kotak Mahindra Bank
➢SBI Commercial and International Bank
➢South Indian Bank
➢United Western Bank
➢YES Bank

19
CHAPTER-4
20
OBJECTIVE

21
 OBJECTIVE OF RESEARCH

1. To know the services provided by bank to TASC segment.

2.To understand comparative position of banks offering TASC
products.
3. Through the past results, to identify the potential of TASC
segment
4. To know the customer’s interest in bank’s various products

22
 CHAPTER-5
PRODUCTS AND SERVICES

PRODUCTS AND SERVICES

Retail Banking

23
The Retail Banking business of the Bank is divided into following sub-
units:
• � Retail Liabilities
• � Retail Assets
• � Cards
• � Wealth Management
• � Corporate Communications and Market Research
• � Bulk Retail Acquisition /Payroll Accounts
• � Alternate Channels

The focus of the Retail Banking Department is to:

1. Increase share of Retail Deposits
2. Increase share of Retail Assets
3. Increase Fee Based Income

In order to achieve the above mentioned, the following strategies are

used:
1. Introduce New Products based on Customer Need and to address
targeted segments.
2. A strong Sales Focus.
3. An extensive network and effective utilization of the banking
channels

RETAIL LIABILITES – An overview of the products

Retail Liabilities business includes deposits collected from Retail
Customers. These are of two types

1. Savings deposits
2. Term deposits (fixed deposits)
Savings deposits are important as these are low cost deposits and are
critical to keep the cost of funds low for the bank. A savings account is
also the cornerstone of relationship that the customer has with the
bank in majority of the cases. Selling a savings account therefore is

24
akin to acquiring a customer for the bank who can then be cross-sold
other products.
The Bank has launched customized savings account products for
various categories of customers – Mass affluent, Senior Citizens,
Students & Trusts/NGOs besides a very competitive offering in the
Salary Accounts category.
Segmentation of Savings Bank business
Saving bank:-
• Easy Access
• Senior Privilege
• Trust & NGOs
• Smart Privilege
• Priority Banking
• Salary
• NRI Services
Easy Access Account
The basic savings account product of the Bank is called the EASY
ACCESS and its features are as follows:
• Multi-city At par cheque Book- Limit of Rs. 50,000/-
• Anywhere banking
• International Visa Debit Card
• Tele banking
• Iconnect Internet banking
• Mobile Banking
• Free Quarterly Account Statement
• Interest paid on a quarterly basis
• AQB- Rs 5000/- in metro and urban centers, Rs 2500/- in semi
urban centers and Rs 1000/- in rural centers

Prime Savings Account

25
An intermediary product targeted towards the mid-income segment
customer base helping to bridge the gap between the base product and
priority offering. It is a value based savings product with customized
features enhancing the customer value.
Product Features:
• At PAR cheque book – Enhanced Limit of Rs. 1,00,000/-
• Free Issuance of International Visa Debit Card
• Free Pass Book
• Free monthly statement of account
• No charges on intercity clearing cheques
• Free DD/ PO, drawn on Axis Bank Centers
• Higher cash deposit/withdrawal limits
• Free withdrawal from any Visa ATM in India (upto six
transactions per quarter)
• Average Quarterly Balance-Rs. 25000/- for metro/urban/semi
urban branches and Rs.10,000/- for rural branches
Senior Privilege Account
Eligibility: - Savings Bank customers (Male & Female) with 60 years of
age or above as on the date of account opening.
AQB Criteria: Rs.10, 000 for Metro/Urban Branches & Rs. 5,000 for
Semi-urban/Rural Branches.
Scheme Code: SBSPA
Product Features:
• Dedicated Relationship Manager at select centers
• Senior Citizen ID Card
• Free Home Banking for Cheque/Cash pick up. Cash Delivery is
charged at Rs. 50/- per instance.
• Free Inward Remittance with out any limit
• Free Outward Remittance once in a Financial Year.
• Free International Debit Cards- Two debit cards free per
account.
• Free Mobile Banking

26
 • Free Collection of Outstation Cheques- Only postages of Rs 30/-
will be charged & other bank charges if any.
• Free At Par Cheque book facility
• Free Demand Draft/Pay Order drawn on networked centers
• Free Passbook/Monthly statement of accounts
• Faster collection of foreign cheques
• Customized Loan Offerings - Loans against Fixed Deposits -up
to 95% of the FD amt at an interest rate of 1% over the rate of
interest of the FD. NSCs/KVPs/LIC Policy - the rate of interest
1% less than other customers and no processing fees and
no pre payment penalty.
• Silver Health – Medical Insurance for Senior Citizens in
association with Bajaj Alliance
• Demat Account at discounted rates at Rs 250/-. Offer valid only
for the new Demat accounts & for two financial years from the
date of account opening.
• Financial Advisory services
• Wide range of Health, travel privileges through tie-ups with
different agencies- related to the interest of senior citizens.
Savings Account for the Trust/NGOs Segment
The account is aimed at the following bodies:
• � Trusts
• � Associations
• � Societies
• � Section 25 Companies (including Clubs)
• � Non-Governmental Organizations (NGO’s)
• � Government Departments / Bodies / Agencies
Product Features:
• � AQB Requirement of minimum Rs. 25,000/-
• � Multi-city at-par cheque facility
• � Free Anywhere Banking
• � Free Demand Drafts / Pay Orders on UTI Bank locations

27
 • Facility for collecting membership fees and contributions in favor
of the Trust’s account through our network of branches and
ATMs across the country as well as through iConnect
• Monthly statement of account
• Free Internet Banking facility
• Free Demat account
• Assistance for Foreign Contribution (Regulation) Act accounts
for receiving donations from abroad.
• Free collection of cheques
• Doorstep banking services
Additional benefits for PF/Gratuity Trusts
• Investment Advisory Services
• Subsidiary General Ledger (SGL) account for investment in
Government securities with value- added services such as: -
• Investment advice related to the customer’s g-sec portfolio.
• Offer of better rates on sale of government securities from the
Bank’s stock of securities.
• Concessions in transaction and service charges. (However
Charges that have to be directly passed on to the Clearing
Corporation of India as part of the Negotiated Dealing System
for trading in g-secs cannot be waved – a fact, which will be
communicated up front.)
Smart Privilege Account
Eligibility: Women customers wanting to open a value added savings
bank account
Product Features:
AQB Criteria: Maintenance of an Average Quarterly balance of Rs.
10,000/- at Metro/Urban Branches and Rs. 5000/- at Semi-Urban
Branches.
Debit Card Features
The specially designed photo signature card for added security
comes with Zero Lost Card Liability, purchase protection and other
exclusive features as under:

28
 • � Inbuilt Jewellery Insurance up to Rs.50, 000/-
• � Five Free ATM transactions per quarter at Non-Axis Bank
ATMs
• � Enhanced Accidental Insurance upto Rs.3 Lakhs
• � Waiver of 2.5% Petro surcharge
Priority Banking
In a segmentation study undertaken in 2002, it was found that 2.72 %
of our retail customers contribute to nearly 49.05% of our total retail
deposits.
The clients that bring a larger share of business to the Bank expect a
differentiated standard of service. This also makes business sense, as
more often than not, most of the business in a particular branch flows
from a handful of clients. Hence, Priority Banking was launched in
order to cater to the needs of the high net worth customers within the
bank. The product has at its core the thought of providing differentiation
in service and treatment to a segment of its customers with a view
towards customer retention, acquisition and cross selling.
The nucleus of these services has essentially four important
components – personalized service, Investment advisory services,
preferential pricing of banking products/ services and lifestyle
privileges.
Definition of ‘Priority Customer’ at AXIS Bank
The eligibility criteria for Priority Banking is as given below:
• A minimum average quarterly Balance of Rs. 1 lakh in the
savings bank account
(OR)
• A minimum relationship of Rs 5 lakhs (avg. quarterly balance) in
a combination Savings and Term Deposits
(OR)
• A minimum average quarterly Balance of Rs. 5 lakhs in an
Encash 24 (Flexi) Account
(OR)
• A minimum average quarterly Balance of Rs. 75000/- in the

29
 SB-Salary account
(OR)
• A minimum Family Relationship Value of Rs 10 Lakhs Deposits
(SB+ Term) with an average of Rs 2 lakhs per member
(whereby at least 40% of Value needs to be in SB Deposits)
A charge is levied in case of non-maintenance of Average Quarterly
Balances based on category enrollment.
Privileges offered to Priority Banking customers
The privileges offered as a part of Priority Banking include:
- Banking privileges
- Investment privileges
- Lifestyle privilege

Banking privileges
• � Personalized service from the Relationship Manager - who is
the one-point contact at the bank for all transactions
• � Access to the Priority Banking Lounge/ Area at branches
• � Priority Banking Debit card with the following facilities:
• Free transactions at any VISA ATM in India
• Higher cash withdrawal limit of Rs 50000/- per day through
ATMs

• Higher POS (Point of Sale) Transaction Limit of Rs 175000/- per

day
• Free Personal Insurance Coverage of Rs 5 Lakh on the Card
• At par payable cheque books
• Complimentary Gold Credit Card and 50% off on Issuance of
Gold Plus Credit Card – Offer valid on Secured Credit Card
variants as well*
• Enhanced limits / lowered charges for inter-branch cheque and
cash transaction
• Home Banking – Free Pick up and drop of cheque/cash above a
certain limit, from customer’s office or residence

30
 • Preferential pricing on Retail Loans *
• Preferential Rates on Foreign Exchange *
• Waiver on Foreign Remittances*
• Free Mobile Banking Facilities

Investment privileges
• Complimentary financial planning, which includes free advisory
services on mutual fund investment and general insurance
• Exclusive invitations to investment talks.
• Regular Market information reports
Lifestyle Privilege
• Invitations to lifestyle events such as movie screenings,
music concerts, theatre, art exhibitions etc
• Tie – up with several leading brands across different lifestyle
segments
• Bimonthly newsletter – Priority Pages

Priority Assist
AXIS Bank has tied up with International SOS, the world’s leading
assistance company, to offer “Priority Assist”, a host of utility and
assistance services. Priority Assist provides assistance like gifts and
flower delivery, hotel and travel bookings, referrals on tax consultants &
lawyers, home assistance and medical assistance.

Salary Power
AXIS Bank has a very strong and powerful payroll account scheme
called “Salary Power” aimed at providing the best of banking services
and unmatched benefits to salaried customers. The customized
offering has three product variants that are detailed as below. The
privileges that accrue to the customers are based on the average
salary per employee for the relationship. This was done primarily to
ensure that the profitable relationships are given more value
propositions, while the low yielding accounts are brought under the

31
charging structure.
Salary Power Plus- This is the base product variant that is offered to
relationships wherein the average monthly payout is less than
Rs.10000/- per employee.
Salary Power Privilege- The average monthly payout per employee
for this variant ranges between Rs.10000/- and up to a maximum of
Rs.24999/-
Salary Power Premium- This is the top of the line variant where the
average payout per employee for the institution is above Rs.25000.
For the Blue Collared segment we also offer the rewards Card-
which is a pre-funded card and allows the individual to utilize the
Bank’s exhaustive ATM network to draw their salaries. The key
benefits that are offered to the Corporate, Public Sector undertaking,
Government Institutions and Defence and Paramilitary forces are as
under:

Market Size and Growth Trends – The total employable population in

India is close to 402 million, and the market is supposed to grow by
almost 1.4 million YOY.
Market Drivers –
• Outsourcing Business Model (IT / ITES) to have a strong growth
story in India.
• Sixth pay commission recommends 25% pay hike for the
government sector employees – This constitutes 30% of the
total Salary Power portfolio as of now.
• 11th 5-year plan envisages adding 58 million jobs by 2012 and
bringing down unemployment rate to below 5%. More than 14
million jobs would be created annually as per forecasts.
Simplifying the way an Organization can pay-
AXIS Bank opens an account for the institution and also individual
salary accounts for the employees. On the date of salary disbursal,
there is one single debit to the institution’s account and multiple credits
to the staff salary accounts. Besides incase the Corporate does not

32
have an account with the Bank, then the salary accounts can get
funded through the RTGS/NEFT or local clearing wherein the funds are
pooled in the sundry account at the base branch and employee’s
individual accounts are credited at the respective branches of the bank
across centers as the case may be. This ensures that the Company
can save time on disbursal of the staff salary accounts and credits
happen simultaneously across locations at a pan India level.
Exclusive Features of the Salary Power benefits
• Anywhere Banking Facility through the bank’s large network of
branches, ATM and also net banking services across the
country in a 24 X 7 environment.
• AT Par Cheque Books with daily issuance limits ranging from
Rs.50000/- up to Rs.100000/- per Cheque leaf. This save time
and also allows the individual to make outstation Payments
across all locations where the bank has its presence.
• International Debit Card (Master Card) with daily withdrawal
limits ranging from Rs.25000/- to a maximum of Rs. 50,000/-
from Axis bank ATMs. An accidental insurance coverage up to
maximum of Rs.2 lacs.
• Free Demand Drafts/ Pay Orders up to Rs.25, 000/- per month
for the Salary Power Plus account holders and unlimited for
Salary Power Premium Account holders.
• Free collection of outstation cheques for Salary Power Privilege
and Salary Power Premium accounts.
• Preferential rates on retail loans for salary account holders.
• Overdraft facility available.
• Instant Welcome Kits available.
• Joint Account and Nomination facility available.
• Mobile banking/Internet Banking and Phone banking- available
• Demat and online Trading Accounts available.
• Free Financial Advisory services-available.
• Employee reimbursement account available as a savings
account variant. Peer group banks offer it as a current account

33
 variant.
• Meal Cards- The best substitute of sodexo and accor vouchers.
Works on a master card platform. Greater acceptability and
convenience.
• Priority services available at a reduced quarterly average
balance criteria of Rs.0.75 lac per quarter.

Power Salute Salary Accounts

Defence Salary Account from Axis Bank is a product designed keeping
in mind how tough a life in the Defence Forces is. Not only does it
come to you absolutely free, no minimum balance is required either.
You can also access the entire Axis Bank network, no matter where
you are posted. For the defence forces their salary accounts are
converted into pension accounts post retirement.
Note: Salary Power is a special account offered to customers with
regular direct salary credits coming into this account. In case, the
monthly salary is not credited into the account for more than 3
consecutive months, the special features offered under Salary Power
account shall stand withdrawn and the account shall be treated as
Normal Savings Account under our standard charge structure and all
charges shall be levied and applied as applicable to normal savings
accounts.
NRI services
In a globalized scenario that exists in today’s world, geographical
boundaries are fast shrinking with more & more Indians going abroad
for jobs & settling there. With a view to attract the savings and other
remittance into India through banking channels from the person of
Indian Nationality / Origin who are residing abroad NRI Services was
launched. A segment so specific requires special services tailor made
for its requirements hence the product offering was very different from
the regular retail individual.
Who can Open NRI Accounts?

34
 NRI - An Indian citizen who is ordinarily residing outside India and
holds an Indian Passport. PIO - A person who or who’s any of
ancestors was an Indian national and who is presently holding another
country’s citizenship/nationality i.e. he/she is holding foreign passport.
Deposit types:
• NRE (Non Resident External Accounts)
Any person resident outside India may open NRE account.
This Account permits a NRI to hold and maintain foreign
currency earnings in Indian rupee. The principal and interest
earned on these balances are freely repatriable. The account
can be funded by the following source of funds:
• Foreign inward remittance by way of TT / DD cheque, Travelers
cheque, foreign currency, etc., or transfer from existing NRE /
FCNR accounts. It can be in the form of Savings, Current or
fixed deposits in Indian rupees. The funds in this account are
fully repatriable.

NRO (Non Resident Ordinary Accounts)

Any person resident outside India may open NRO account, for putting
through bonafide transactions in Rupees on account of monies
originating in India. The account can be funded by the following source
of funds:
• By transfer of existing domestic accounts, by fresh inward
remittance by way of TT, DD, Cheque, TC, Foreign currency, by
transfer from existing NRE / FCNR accounts, legitimate dues in
India of the account holder
• It can be in the form of Savings, Current or Fixed Deposits in
Indian Rupees. The funds in this account are conditionally
repatriable.

FCNR (Foreign Currency Non Resident Accounts)

It can be in the form of fixed Deposits only, in the five major
currencies, namely US Dollars, GBP, Euro, Canadian Dollar and

35
Japanese Yen. The funds in this account are fully repatriable.
RETAIL ASSETS
Retail Credit is emerging as one of the focus areas of most of the
banks in the country. The retail credit business here is still very small
compared to some of the developed countries of the world. The
business is also in a nascent stage if compared to the corporate loans
in the country and comprises of around 25 % of the total commercial
bank loans.

Infrastructure Creation:
The growth envisaged in retail assets has been achieved by putting in
place:
Centralized cells for PDC management, recovery and collections,
document storage and MIS. It was deemed necessary to set up this
infrastructure before embarking on a countrywide marketing
programme.
Software: Given the changes in volumes, the Bank has implemented
new software to take care of it s loan originations and maintenance.
This software is called FINNONE and from the stable of Nucleus
Software. This system also supplements the new collection system,
which went live in 06- 07.
Organizational Structure: The Retail Assets team at the Central
Office is reoriented at a product driven and customer centric approach
to provide better control, design and management of retail assets.
Distribution: The distribution arm of Retail Asset business happen
through:
1. Sales subsidiary AXIS Sales ltd.
2. Already existing DSA network

Product Portfolio of Retail Assets

Power Homes

36
Purpose
- Purchase of a plot of land and Construction of a house thereon
- Construction of a house on plot of land already owned
- Purchase of a new house / flat
- Purchase of old house / flat which is not more than 15 years old
(Home Acquisition Plan)
- Extend /Renovate/Repair of a house or flat already owned by self
(Improvement/Extension Plan)
- Take-over of existing Housing Loan with additional refinance
- Pre-allotment Booking finance
- Loans to NRI
- Loan take-over with additional refinance
Loan Amount
Minimum: Rs.1 lac
Maximum: Rs.50 lacs
Margin
15% in the case of normal product and 25% in case of Improvement/
renovation loans
Personal Power
Purpose
To meet personal expenses.
Loan Amount
Minimum: Rs.100, 000/-
Maximum:
- Rs.10, 00,000/-for Salaried Individuals
- Rs.15, 00,000/- for Salaried Professional Individuals.
- Rs.10, 00,000/-for Self-Employed Individuals and Self-Employed
- Rs.20, 00,000/-for Doctors.

Power Drive
Purpose
- Purchase of a new car
- Vehicles under this scheme are to be used for personal use only
Loan Amount

37
Cost of Vehicle plus registration & insurance (less stipulated margin)
OR as per income eligibility of Customer, whichever is less.
Asset Power (LAP)
Purpose
- Loan against property - Residential premises
- Loan against property - Commercial premises
- Loan for Purchase of Commercial Property
- Take-over of existing Loan
- Take-over of existing Loan with additional refinance (Top-Up)

Loan Amount
Minimum Rs.1 lac
Maximum - Rs.150 lacs
Margin
50% LTV (Loan to value) is maintained for Commercial properties.
60% LTV (loan to value) is maintained for Residential properties
Lease Rent Discounting
This is another variant of Loan against Commercial Property where
future rental receivables are discounted and finance is extended to the
owner of the property.
Maximum Loan amount: Rs.5 Cr.
Loan Against Securities
Loan against Shares/ Mutual Funds:
Purpose
For personal use
Quantum of Loan
Maximum loan amount is Rs.10, 00,000/- against pledging of approved
share scrips/ mutual funds units. We are offering this facility to
individuals only.
We also extend loan against other securities. Other securities
include NSC, KVP, and LIC policy.
Overdraft against Property
An overdraft limit is granted to resident borrowers against a
residential/commercial property owned by him Maximum Loan amount:

38
Rs. 1.5 Cr.
Reverse Mortgage Loan
Targeted at Senior Citizens (above 60 years of age) having an owned
residential property.
Maximum Loan amount: Rs. 50 Lacs
Medical Equipment
Purpose
Loan for purchase of Medical Equipments
Target customers:
Self employed Doctors
Loan amount:
Maximum Rs.1.50 cr.
Jewellery Loan
Purpose
Offered only to Smart Privilege Customers (Non-working House-wives)
to buy jewellery.
Loan Amount
Same as Personal Power
The loan eligibility criteria will be based on the joint applicant’s
(spouse) income proof
Card Power
We extend finance to the traders/ merchants on the basis of the goods
sold through credit cards.
Consumer Power
Purpose: Purchase of new consumer durable item
Loan Amount:
Minimum Loan amount Rs.25, 000,
Maximum Loan amount Rs.2, 00,000
Two Wheeler Loan
Purpose
To purchase a two wheeler
Quantum of Loan
Minimum Rs.20, 000/-
Maximum Rs.70, 000/-.

39
(Source: (http://www.axisbank.com/personal/loans/loans.asp))
Loan to Value
We finance 80-85% of the on road price (Cost of Vehicle + registration
+ insurance) of the vehicle.

WEALTH MANAGEMENT
The Wealth Management Group has been one of the fastest growing
divisions of Axis Bank. The tremendous year-on-year growth has been
the result of the teamwork and coordination within the group. The
following revenue figures only highlight the individual as well as
collective abilities and dedication of the Group.
Axis Wealth
Axis Wealth is an advisory service offered by the Bank exclusively for
the privileged HNI. Axis Wealth goes beyond banking and
encompasses solutions for a lifetime. Beginning from investments up to
tax planning, we are here with a wide range of services, where the
client experiences a specialized and personalized treatment.
The aim of Axis Wealth is to understand the clients’ needs and tailor
solutions to meet them. Dedicated and experienced Wealth Managers
help the clients and manage their all wealth- related activities. The
professional management of these experts pursues the objective of
delivering consistent long-term performance while controlling the
associated risk.
Wealth Manager- Wealth Managers are the most sought after
individuals in the team. They are a disciplined group of individuals, who
adhere to the ethical and regulatory standards while delivering of
services in an integrated mix of tax-efficient solutions, legal counsel
and accounting advice on top of financial planning and investment
management. Wealth Managers are a single point contact for the client

40
for their all investments need. They constantly monitor and rebalance
the portfolio to optimize the return. They take care of all the
administrative aspects of the portfolio with the monthly reporting on the
overall status of the portfolio and its performance.
Source:(www.scribd.com/doc/13581494/AXIS-BANKWealth-
management-)
Product Team- Product team takes the ownership of the Axis Wealth
product. The team offers a wide spectrum of products, banking
services & tailor made financial advices to suit investment needs. All
products are researched and revalidated by our Investment research
team on the parameters of risk, return, future potential, transparency in
offering, diversification objective, regulatory aspects and other portfolio
related parameters. The final product recommendation is guided by
systemic approach and in-depth research.
General Insurance
In early 2005, Axis Bank entered into a corporate agency tie up with
the leading private sector insurance player, Bajaj Allianz General
Insurance Company Ltd, for sales of non-life insurance products
through all its branches. The formal launch and announcement of the
tie up took place during May 2005.
Bajaj Allianz General Insurance Company Ltd
Bajaj Allianz General Insurance Company Limited is a joint venture
between Bajaj Auto Limited and Allianz AG of Germany. Both enjoy a
reputation of expertise, stability and strength. Apart from selling
standard Bajaj Allianz policies, Axis Bank has also launched 4 special
co- branded general insurance products in association with Bajaj
Allianz. These products are exclusively sold to Axis Bank’s large retail
customer base and shall be available only through Axis Bank. These
policies offer the customers greater benefits, more competitive pricing
and ease of purchase as compared to the regular insurance policies
offered by Bajaj Allianz.
Bundled Insurance:
The concept is to bundle health insurance with Savings account and
Salary account and Credit Card customers. Apart from the regular

41
benefits of a Health Insurance, the key benefit to the Customer in this
type of format is that he gets to pay the premium in monthly installment
mode.

Corporate Products
We also cater to our Corporate & SME segment by offering the
following types of policies:
• Fire and allied perils
• Money Insurance
• Fidelity Insurance
• Employee Benefit Policies
• Workmen Compensation
• Marine Insurance
• Specialty products
• Office Insurance

Life Insurance
In December 2006, Axis Bank entered into a Bancassurance tie up with
MetLife, for sales of life insurance products through all its branches.
MetLife was selected by Axis Bank after an extensive assessment of
complementary strengths of all the insurance companies of India. The
Bancassurance alliance with MetLife is a referral model whereby leads
generated by the bank are executed by MetLife staff stationed at the
bank branches.
Financial Advisory Services (Mutual Fund)
What is Mutual Fund
• It is a fund established in the form of a trust to raise money through
the sale of units to the public or section of the public under one or more
schemes for investing in securities including money market instruments
• Asset Management Company is an organization, which invests in a
diversified portfolio of financial securities on behalf of a pool of
subscribers to its scheme.
Product Portfolio.

42
• At Axis Bank Personal Investment Product team we adopt a strong
research driven recommendation model to help clients choose the best
funds based on qualitative and quantitative parameters.

• Apart from this a dedicated financial advisor can also be assigned to

the customer to ensure that the investment requirements are taken
care of, smoothly and efficiently. Our advisors understand the investors
profile and lead them through a structured financial planning process to
devise financial solutions best suited to him. The financial advisors will
also help the investor to choose the right investment products in line
with their investment goals.
• We offer a unique 'One Page Portfolio Snapshot' report across
investment products to our customers investing in Mutual Funds. This
report can be viewed through our Internet Banking module.
Online Trading Services
Online Trading A/c is a new initiative in the Wealth Management
product portfolio of Axis Bank. This product was launched in the month
of May 2006. Axis Bank tied up with a brokerage firm, Geojit Financial
Services Limited (GFSL) for providing Online
Trading service to its customers. To avail this service a customer is
required to open a 3-in-1 account with AXIS Bank.
• The Savings Bank account and the Demat account are to be opened
with Axis Bank and Trading account with GFSL.
Online Trading service offered by Axis Bank is a 3-in-1 integrated
seamless and hassle free way to invest and trade in the equities
market whenever and wherever you want through the Internet. The
orders can be placed over phone as well if not accessible to the
Internet. The facility helps to trade in the Cash market, Margin trading
and Derivatives. IPOs can also be applied through this facility. Online
Trading A/C s are currently being sold through the Sales channel for
bundled products. The Sales executives complete the documentation
and send the form to Online Trading Desk, CPU for processing. SB a/c
opening department opens the SB a/c, Demat Department opens the

43
Demat a/c and once form is complete in all respect, the form is sent to
Geojit for opening Online Trading A/c. Geojit opens the account and
generates a unique trading code for the client. The SB a/c and Demat
a/c are then linked to the Online Trading a/c to give a seamless
experience to the customer.
Investment Research
Financial assessment of client is the strategic centerpiece of bank
advisory processes. Bank’s work with a client begins with
understanding their needs in detail and what he or she wants to
achieve – family, financial and other objectives. bank use financial
modeling to create side-by-side comparisons of choices will affect their
client’s financial situation.
After completing the assessment, Axis introduce various instruments
and compare their impact on long-term outcomes for the client. By
creating and comparing different scenarios, Axis can demonstrate in
detail the outcome accomplishes his or her objectives.
Equity:
Axis feel that a long-term investment in good stock offers higher
growth. Axis have tailored two sets of model portfolios, namely High
risk & Low risk. The weightage given to stocks and sectors makes the
portfolio high risk or low risk. Depending on client’s objective Axis
recommend him either high risk or low risk portfolio. The team of
experts keep regular track of stocks, which form part of Model portfolio.
Depending on company’s performance and other developments Axis
recommend suitable strategy to bank’s clients.
Mutual Fund:
The team of analysts identifies excellence in investment management
through cutting edge research of various schemes and fund houses.
The team evaluates the performance of a scheme and the consistency
of that performance relative to other schemes. Supported by this
expertise Axis recommend investments to their clients in different funds
with impressive track record and a disciplined approach.
Axis study various parameters and performance measures like returns
in last few years, experience of fund managers, nature of Fund,

44
constituents of the fund, and portfolio diversification measures.
Depending on client’s profile we recommend investment in a mutual
fund and therefore structure a portfolio most appropriately.
Deal Execution:
Axis execute trades on behalf of our clients through channel brokers.
Relationship Managers send the orders to dealing team in a prescribed
format. The onus of verifying Cash balance and there details is on
Relationship Managers. There are three modes of placing an order
which are listed below in the order of their preference
Execution of Equity deals:
Dealing team, after receiving order in prescribed format and through
specified medium, sends it to the channel brokers via email. Brokers
after executing the trade send the confirmation to the dealing team,
which in turn is sent to the relationship managers. In exigencies, wealth
managers do place order over phone, which is enabled with voice
recording system. Call center team manages voice-recording system
Summary of trades that are executed in a day is sent to operations
team after market hours along with trade orders and confirmations for
reconciliation purpose.
Execution of Mutual Fund deals:
Dealing team, after receiving order prescribed format and through
specified medium, sends it to the operation team, which executes
Mutual Fund deals.

CREDIT CARDS
Core Credit Card Variants
AXIS Bank formally launched its credit cards on August 3, 2006. The
Bank is offering its credit cards on the Visa platform and has five core
variants – Platinum, Gold Plus, and Gold. Silver Plus and Silver.
Platinum Credit Card
The Bank launched its Platinum Chip Credit Card in Mumbai on March
7, 2008. The Axis Bank Platinum Credit Card would be the first Chip
based Platinum Credit Card in India, offering the highest level of

45
 security to their cardholders. The Platinum Credit Card is a key
premium product and would be placed above the Gold and Silver
Credit Card offerings of the Bank. Apart from the highest level of
security the card offers a bouquet of exclusive offers that sets the card
apart in premium segment.
Exclusive Features:
Higher Credit Limits: The minimum Credit Limit on the Platinum
Credit Card would be Rs. 1 Lac. Limit ranges from 1 Lac to 15 Lac
would be assigned to the Platinum Credit Card.

1. Highest Level of Security: The Platinum Credit card is India’s

first EMV (Europay, MasterCard, Visa) certified Platinum Chip
Card. The chip card ensures secure interchange of information
between the card and Bank’s authorization system. Chip also
offers higher data storage capacity which enables the card to
perform multiple functions e.g. Efficient Rewards Management
by offering chip based loyalty solutions, instant reward
redemption etc.
2. Welcome Gifts:
• Premium Wrist Watch: The Platinum Primary cardholders would
be entitled to a Premium Wrist Watch. The cardholder can
choose one of the two options of a female or a male watch.
• Complimentary International Return Flight Voucher: The
Platinum Cardholders (Primary as well as Add-on) would be
entitled to a Complimentary Return Flight Voucher to one of the
four most traveled destinations in Asia namely – Dubai,
Bangkok, Kuala Lumpur and Singapore. The Welcome Gifts
would be issued to the Platinum Credit Cardholders post
realization of Joining and Annual Fee included in the first
statement.

3. 5% Savings on Fuel: Platinum Credit Cardholders will enjoy 5%

46
savings on fuel expenses in form of 2.5% cash back and 2.5%
surcharge waiver. The benefit would be available across all fuel
pumps in India for a minimum transaction of Rs. 400 to a maximum
transaction of Rs. 4000. These transactions would not earn any reward
points. The maximum cash back is limited Rs. 1500/- in a calendar
year.
4. Comprehensive Insurance Cover: Platinum credit
cardholders will get an Insurance cover of Rs. 51 lacs.
Insurance cover Includes air accident insurance, personal
accident policy, zero lost card liability, purchase protection and
travel related Insurance.
5. Concierge Service: Platinum credit cardholders will be
empowered to enjoy round the clock concierge service. From
delivery of flowers to seeking golf course referrals, personal
help is just a call away. We have tied up with International SOS
for providing concierge service to our Platinum Credit
Cardholders.
6. Access to over 500 VIP Airport Lounges: Platinum Credit
Cardholders will get a complimentary Priority Pass
membership, allowing access to about 500 VIP Airport Lounges
in more than 90 countries.
Apart from the above top of the line benefits the Bank has tied
up with various partners to offer exclusive offers, which make
the Axis Bank Platinum Credit Card one of the best in the
industry.
Wellness Offers:
1. VLCC – Complimentary Package worth Rs. 5000 and 15-30%
discount on other services.
Kaya Skin Clinic – Complimentary Package worth Rs. 1000
and 10% discount on first Package at Kaya Skin Clinic.

Premium Apparels and Accessories:

1. Trussardi and Savile Row – Flat 50% discount on the premium

47
 collection for the first time Hidesign – Rs. 500 off on purchases
from Rs. 3000 – Rs. 4999, Rs. 1000 off on purchases of Rs.
5000 and above.
Travel Related Offers:
1. Hertz Car Rentals – Platinum Credit Cardholders enjoy a 35%
discount on chauffeur driven cars through Hertz.
2. Matrix Cellular – Now Platinum Credit Cardholders can stay
connected in a much easier and economical way while
traveling abroad by discounted country specific SIM cards.
VISA Offers:
VISA brings to the Platinum Credit Cardholders exclusive
offers on Golf, PVR, Pizza Hut, and Travel guru etc.
Target Segment:
The Platinum Card would be aimed at affluent customer
segment. Internally this would offer our customers an
upgrade from Gold Plus Credit Card. The target audience
has been identified as:
High-end internal customers (Existing Gold Plus Credit
Cardholders and Customers of Retail Assets, Priority
Banking Wealth Management etc.)
1. Senior Management and officials of CAT A, B Corporate
(Income Cutoff- Net Annual Income- Rs. 4 lacs)
2. Self Employed Individuals with high aspirational levels
(Income Cutoff- Net Annual Income- Rs. 6 lacs)
The Bank offers the following attractive benefits in addition to the
standard credit card features on its Gold and Silver card variants:
Complimentary flight vouchers: Gold Plus cardholders will be
entitled to a complimentary return flight voucher and Silver Plus
cardholders to a one-way flight voucher. The customers can choose
from 29 destinations across the country.
Fabulous discounts on hotels: Gold Plus cardholders will get a
guaranteed 50% discount at 120 hotels in the country all year round.
Silver Plus cardholders will be entitled to a 10 – 50 % discount at 1500
hotels worldwide.

48
Comprehensive insurance package: This includes an air accident
insurance of Rs. 20 lac for the Gold card customers, personal accident
policy, zero lost card liability, purchase protection and loss of baggage /
passport.
Fuel surcharge waiver across all pumps is available for all the Gold
Plus customers. The same benefits are also extended to add on
cardholders making it a very attractive package for the customers.
Spice: The Bank has tied up with a rewards solution provider to enable
instant rewards and surprises for their customers on the basis of the
recency, frequency and value of transactions. The Bank has set up a
fully owned subsidiary UBL Sales for managing the card sales and to
enable it to focus on the quality of acquisition along with a quick ramp
up of the business at a national level.
Corporate Card
Launched in April 2007, Axis Bank ‘Corporate Card Solution’ is an
effective way for corporates and their employees to manage their travel
and entertainment expenses. Along with standard benefits and
features, they help corporates to track, analyze and manage their
travel, entertainment and procurement expenditures and replace cash
advances. Corporate Card is branded as ‘Expense Management
Solution’ for corporates.
Corporate Cards is available under following variants*
· Gold Card
· Silver Card
· Platinum Card
The variants are offered based on the salary levels of the employees.
Corporate Cards are mainly used for official spends incurred by the
employees on official Travel and Entertainment, i.e., Hotel Bookings,
Flight Bookings, Restaurants, etc.

Visa Information Source (VIS): Corporate Card USP

Visa Information Source is a proprietary tool of VISA, which comes with

49
Corporate Cards and is a web-based reporting solution to manage
employee purchases and monitor vendor spend as well as cost
allocation tool.
Magnet Store Card
AXIS Bank Magnet Loyalty Card is a Private Label Store Card, which
would be valid for purchases only at Magnet Stores. These cards come
with a low credit limit and with minimum verification. They are intended
to increase loyalty and increase repeat purchases at Magnet stores.
Depending upon the amount of purchase, the customer is sent
discount coupons with his monthly statement, which he can redeem the
next time he/she purchases from Magnet.
Basic Features:
1. Limit – upto Rs. 5000 to Rs.20000
2. Joining Fee – Nil
3. Annual Fee – Nil; Free for Life Cards
4. Interest on Revolve - @ 2.95 %
5. Late Payment Fee - Rs. 300/-
6. Monthly Statements
7. EMI Schemes – for high value transactions *
Value Added Features:
1. Comprehensive Insurance
• Personal Accident Insurance – upto Rs. 2 lac
• Zero Lost Card Liability
• Purchase Protection Facility
Axis Bank Subhiksha Loyalty Credit Card
Axis Bank Subhiksha Loyalty Credit Card is a Private Label Store Card,
which would be valid for purchases only at Subhiksha Stores. These
cards come with a low credit limit and with minimum verification
(including KYC norms). They are intended to increase loyalty and
increase repeat purchases at Subhiksha stores. The Subhiksha Loyalty
Credit Card entitles the customer to special discounts, offers and
freebies on purchases from the Subhiksha Stores. These cards cannot
be used for Cash Withdrawals and no Balance transfers are allowed on
them.

50
Core Features
1. Limit – Rs 2,500 to Rs 20,000
2. Joining Fee–Nil
3. Annual Fee–Nil; Free for Life Cards
4. Interest on Revolve-@ 2.95 %
5. Late Payment Fee -Rs. 300
6. Monthly Statements
Value Added Features
1. Comprehensive Insurance consisting of the following elements:
• Personal Accident Insurance – upto Rs. 2 lac
• Zero Lost Card Liability
• Purchase Protection Facility
Trust Chemist Axis Bank Credit Card
The Trust Chemist Axis Bank Credit Card is the first co-branded credit
card in the pharmacy sector. Trust Chemists is a well-known chain of
Pharmacy stores in Bangalore. The Trust Chemist Axis Bank Credit
Card is directed towards the customers of Trust Chemists. This card
can be used anywhere in India or internationally. The Card brings
many benefits to its customers including
free first aid boxes, medical check-ups, health camps etc. In addition to
all this, the customer also gets a 4% discount on all his purchases.
Core Features:
1. Joining Fee – Nil
2. Annual Fee – Nil
3. Cash Withdrawals
4. Balance Transfers
5. Limits according to Income documents submitted
6. Finance charges – 2.95% per month
7. Monthly Statement Cycles
AXIS Bank Secured Credit Card
Customers who do not have a source of income, income proof or
credit history may not qualify for a regular Credit Card. A Secured
Credit Card will serve to offer a Credit Card to this group of customers.
A Secured Credit Card requires cash collateral in the form of a Term

51
Deposit account with the Bank, which acts as a security for the line of
credit provided on the card. If the customer does not make the Credit
Card payments on time, the Bank may use the collateral to pay down
the Credit Card balance. The Bank thus does not have any credit risk
attached with the issuance of the card. The sourcing of the AXIS Bank
Secured Credit Card will be done by the Bank’s Branches.
Product Features:
Product features are along the same lines as our standard Credit Card
products. The validity of the Secured Credit Card would be 2 years.
However, the facility will be limited by the maturity date of the
underlying deposit subject to renewal.
Credit Limit:
The credit limit on the Secured Credit Card will be fixed at 80% of the
face value (principal amount) of the collateral plus up to date accrued
interest i.e. with a margin of 20%. Credit Limit will be extended only
against a corresponding increase in the FD amount.
Debit and Prepaid Card Products
• Debit Cards
• Travel Currency Cards
• Meal Card
• Gift Card
• Rewards Card
• Annuity Card

DEBIT CARD
A Debit Card provides on-line direct electronic payment from a Bank
Account for payments at Merchant Establishments (shops, restaurants,
petrol pumps etc.), and access to ATMs for cash withdrawals and
inquiries. It can be used both as an ATM Card and as a method of
payment (instead of cash / cheques) when purchasing goods and
services.
The difference between a Debit Card and a Credit Card is the
difference between "debit" and "credit." Debit means "subtract." When

52
you use a debit card, you are subtracting your money from your own
bank account. Debit cards allow the customer to spend only what is in
the customer’s bank account. It is a quick transaction between the
merchant and the customer’s personal bank account. Credit is money
made available to the customer by a bank or other financial institution,
like a loan. The amount the issuer allows the customer to use is
determined by the customer’s credit history, income, debts, and ability
to pay. The customer may use the credit with the understanding that he
will repay the amount, plus interest if the customer does not pay in full
each month. The customer will receive a monthly statement detailing
the charges and payment requirements.
AXIS BANK DEBIT CARDS
Axis Bank International Debit Cards are VISA Electron/Visa Flag/
MasterCard Unembossed cards and are accepted globally at all VISA /
MasterCard ATMs and Merchant Establishments accepting
Visa/MasterCard cards. The Bank has issued close to 9 million Debit
Cards. The Bank currently issues around 1.5 to 1.7 lakh Debit Cards to
the customers on a monthly basis.
Insurance: The Axis Bank International Debit Card comes with the
following insurance features –
Lost Card Liability: Axis Bank Debit Cardholder is insured for risk of
loss due to fraudulent use of a lost/ stolen / missing Debit Card. All he
needs to do is communicate the loss of your Card by calling our
Customer Service Number or Branch (during working hours).
Purchase Protection: All consumer durable goods purchased using
the Debit Card are insured against fire, natural calamity, burglary and
house – breaking upto 90 days from the date of purchase.
Personal Accident Cover: In the unfortunate event of loss of life in an
accidental mishap, the customer’s beneficiaries will receive the benefit
of accident insurance of up to Rs. 2 Lakhs or 5 Lakhs as the case may
be. The personal accident insurance covers the debit cardholder and
compensates the nominee in the event of accident leading to death.
Sum Assured Rs. 200,000/ Rs. 500,000 per cardholder (a cap of same

53
amount in the event of multiple cards / multiple accounts per person).
A few conditions have been built in for the customer to get his / her
Personal Accident Insurance cover activated. The customer may also
contact 022-67987700 the Debit Card help line directly.

REVENUE DRIVERS
In the absence of any annual fee, the revenue driver for the Bank is the
commission earned on the transaction amount, when a customer uses
his Debit Card at a merchant outlet. Thus the challenges are:
• Activation of Dormant Cards
• Migration of transactions at ATMs (non-revenue earning) to
Point of Sale (where the bank earns a commission) In the
financial year 2007-08 the Bank’s revenues from its Debit Card
program were approximately Rs. 50 crore. Usage of the Card
varies according to age and location. People in the metros, large
towns use the Debit Card because of more awareness and
concentration of ATMs and POS terminals. The highest usage
comes from Tier I cities like Mumbai, Delhi, Kolkata, Chennai,
Hyderabad and Bangalore where most merchant outlets have
EDCs (Electronic Data Capture Terminals). Similarly age of the
customer also has a bearing on the usage pattern. Studies show
that the Debit Card is used maximum by people in the age group
of 25-45.

ONLINE TRANSACTIONS USING DEBIT CARDS

Now online transactions can be made using Axis Bank Visa Debit
Cards (except NRI Domestic Visa Debit Card) by getting the Debit
Card registered to Verified by Visa (VBV). Verified by Visa (VBV) is an
easy to use, secured online payment service from Axis Bank that lets
you shop securely online with your existing Axis Bank Visa Debit Card.
This service through a simple checkout process, confirms your identity
when you make purchases on the Internet. Through a personal
assurance message it also reassures you of the authenticity of the
online store.

54
AXIS BANK TRAVEL CURRENCY CARDS
The most common way for travelers today is to carry foreign exchange
in the form of Travelers Cheques or Foreign Currency (cash). However,
Travelers Cheques have certain inherent disadvantages such as
limited places and hours for encashment and adverse exchange rates.
Invariably people end up losing a couple of hours from their valuable
time in trying to encash their Traveler’s Cheques. Currency is difficult to
handle and there is no replacement in case you lose currency abroad.

AXIS Bank Travel Currency Card helps people who are on the move
for business or for leisure, directly and through its intermediaries. AXIS
Bank Travel Currency Card is a superior alternative to Travelers
Cheques or Foreign Currency Cash since it ensures a high level of
convenience for utilization and security by not carrying cash.
AXIS Bank is a market leader in the Travel Currency Card segment
providing eight currency options in US Dollars, EURO, GBP, Australian
Dollars (AUD), Canadian Dollars (CAD), Singapore Dollars (SGD),
Swiss Francs (CHF), and Swedish Kroners (SEK). AXIS Bank has
strong direct relationships with top IT companies and with Full Fledged
Money Changers (FFMCs) to sell the Travel Currency Card. The Travel
Currency Cards can also be availed through any of the 671 Axis Bank
branches.
Worldwide Acceptance
The AXIS Bank Travel Currency Card is a VISA signature based card,
which signifies the widest acceptance. It is accepted at over 900,000+
VISA enabled ATMs and at over 14 million VISA enabled POS
Terminals worldwide. It can be used to settle hotel bills, pay for airline
tickets or shop all with a single swipe.
Security
There is a secure 4 digit PIN to secure all cash withdrawal transactions
at the ATMs. If the Card is lost or misplaced, all the customer needs to
do is call the 24-hour Customer Service Number, the Card will be
immediately blocked to guard against misuse and a replacement Card
will be sent to the customer within two working days, upon request. In

55
the meantime, the Bank also provides access to Global Customer
Assistance Service (GCAS) from VISA, which can be used, among
other things, to get emergency cash assistance for a fee.
Comprehensive Travel Insurance (Optional Charged Rs 150)
The Cardholder is covered with Comprehensive Travel Insurance, less
Mediclaim to provide him the security and comfort as he travels
abroad. The cover is available during the cardholder's travel abroad.
Lost Card liability Insurance
The cardholder also gets insurance coverage equivalent of upto Rs.
2,00,000/- for Loss of Card from the time the loss is reported to us.
Reloadable
The Card is valid for five years. During this period the card can be
reloaded any number of times for any subsequent trips. Remote
reloading is also possible as per instructions received from your office
to ensure adequate funds for your executives at all times.
Monthly Statements
Every month the statement of spending on the card will be sent to the
e-mail id as provided by the executives while filling up the form.
Access to Available Balance on the Internet Banking Module
The customer can log on to our Internet Banking module, iConnect™
and check his available balances and the transactions online.
Unique Facility of PIN Change on the AXIS Bank ATMs in India
Before the employee embarks on his journey abroad, he/she can
change the 4-digit PIN to a more convenient PIN and also check his
balance. These transactions can be done on any AXIS Bank ATM and
are not charged.

Minimum and maximum loading

The card may be loaded with a minimum amount of US$ 250 to a
maximum of US$ 25000. Reload amounts may be of a minimum of
US$ 100
Charges
The Pricing for Sale/Usage of the Card is as under:
� Initial Sale Price – Rs. 150

56
� Reload /Renewal of the card – Rs. 100
� No charges for zero balance maintenance on the card
�AXIS Bank charges for the replacement of the Card, in case of
loss: US$3.00 (Equivalent in other currencies) plus handling (courier)
charges at actual.
AXIS Bank Meal Card
The AXIS Bank Meal Card is a prepaid card, aimed primarily at
corporates as a convenient and secure mode to disburse Meal
allowances to their employees. The card is based on the MasterCard
Platform, usable at merchant outlets selling ready-to-eat items, food
and beverages and reloadable on the request of the corporate only.
Target Market
The target market for this product would constitute of corporates who
are willing to provide a meal allowance to their employees. There
would be three types of corporates to target:
• Corporates who are already providing their employees with meal
Allowances through the use of paper-based vouchers the
comparison table above
• Corporates who are providing meal facilities to their employees
through in-house canteens, contractual caterers, etc
Product features
Card Type – The Meal Card is being launched on the MasterCard
Platform, with a validity period of 5 years. The Meal Card is valid for
use in India only.
Usage - The Card is usable only at all AXIS Bank ATMs for balance
enquiry, PIN Change and statement of transactions and at MasterCard-
enabled merchant outlets selling ready-to-eat items, food and
beverages in India. Telebanking facility is allowed to the cardholder for
balance enquiry. I-connect access is blocked on the Meal Card.
Personalization: The card will be personalized with the following:
a. Name of the cardholder
b. (Optional) Unique ID (employee ID or name of the organization)
below the name

57
c. Card number
d. Validity Period of the card

Branding: The Meal Card has been branded the ‘AXIS Bank Meal
Card’ or simply the “Meal Card” in order to highlight the purpose of
payment received.
Funding of the Card: On a periodic basis, based on instructions from
the corporate, the card accounts would be funded by the branch. The
cardholder is not allowed to fund the card account.
Additional Features: The following value added features may be
provided (on a case-to-case basis, depending on the Bank’s
agreement with the corporate):
• Insurance Cover on the Prepaid Card comprising of Purchase
Protection and Zero Lost Card Liability upto Rs. 20,000/-
• Free Telebanking facilities
• Account Statement through E-mail on a periodic basis.
Transaction Limits: Daily POS transaction limit of Rs. 3,000/-
ATM transaction limit: Rs. 0/-
Card account balance limits: Maximum balance at any time on the
Card – Rs. 20,000/-
Commercials: The commercials shall be decided by the Central Office,
based on factors like approximate number of cards to be issued and
average payout per card per year,
AXIS Bank Gift Card
The AXIS Bank Gift card is a rupee-denominated, non-reloadable,
prepaid card based Electron platform usable at all Visa enabled
merchant outlets and is unique as in -
• The AXIS Bank Gift Card comes in a unique Gift-Wrap shape
unlike the normal rectangular shape prevalent in the market. It is
aimed to score over competition on this factor.
• AXIS Bank is the first to try this kind of shape on a card in India.
The Bank intends to market the card based on aesthetic appeal
of the card. It gives all our branches an added edge in terms of

58
 sourcing both walk-in and existing customers for the Gift-Card
product.
Target Market
The AXIS Bank Gift Card has two target markets Gift Card can be sold
to the Bank’s existing customers or marketed to other retail customers
as
• It is a solution to the pains associated with choosing a perfect gift that
the beneficiary would appreciate.
• It is a smart alternative to cash and gift cheques
Corporate customers
The Gift Card can be sold to corporate customers too as a mode of
giving out gift clients, vendors and employees on any occasion
especially during the festive season. Retail customers Branches
should approach their corporate customers during festivals like
Christmas, Diwali, New Year, etc and hard sell the product as a means
of employee motivation.
• In the IT/ ITES sector, there is also a practice of giving employee
awards as gift vouchers, which also can be replaced with our Gift
Card.
Product Features
Branding: The Gift Card has been branded the “AXIS Bank Gift Card”
in order to highlight the purpose of the card.
Card Type: The Gift Card is being launched on the Visa Electron
platform, with a validity period of 2 years. The Gift Card is valid for use
in India only.
Usage: The Card is a usable at all Visa-enabled merchant outlet in
India. Telebanking facility is allowed to the cardholder for balance
enquiry. VISA Money Transfer (to and from) and ATM access is
blocked on the Gift Card.
Non-Personalized: Since the Gift card will be available off-the-shelf
akin to the Travel Currency Card; it will come personalized only with
the following:
a. Card number
b. Validity Period of the card

59
Transaction Limits
Daily POS transaction limit - Rs. 50,000/-
ATM transaction limit - Rs. 0/-
Load Amount
Minimum Load Amount: Rs. 1,000/-
Maximum Load Amount: Rs. 50,000/-. No Reloads are allowed on
the card.

Balance Requirements
At no point of time should the balances in the Gift card account exceed
a total amount of Rs. 50,000/-. Exception reports will be available with
the RB-CO in case of accounts where the balance has crossed Rs.
50,000/- and all such accounts would be immediately blocked.
Back End Account
At the back end, dummy accounts have been opened under a special
scheme code SBGIF under the SOL Id - 020 (Andheri -Lokhandwala
Branch).
Funding of the Card
Once the customer fills up the Gift Card application form at the branch
and deposits the amount to be loaded onto the card, the branch staff
will fund the card account. Charges
Issuance fee: Rs. 100 or 1% of the amount loaded on the card,
whichever is higher.
Quarterly Maintenance Fee: Rs. 25/- to be deducted from the card
account at the end of each calendar quarter. For any kind of fee
waivers for corporates, branches need to get back to the cards team at
RB- CO.
Rewards Card – An Introduction
The Axis Bank launched Rewards Card in July 2005. Rewards card is
a prepaid card, aimed primarily at corporates for the disbursement of
Salary/ Commission/ Incentive payments. Rewards Card acts as a
substitute for Cheques, Pay orders or Demand drafts for the corporates
with low-ticket salary size.

60
The Rewards Card, comes with a validity of 5 years, is an innovative
and extremely convenient way to receive regular Salary / Incentive /
Commission payments.
Target Market
The Prepaid Rewards Card may be marketed to the following
segments:
1) Corporates employing an agent/distributor base, such as direct
marketing companies, multi-level marketing companies and
insurance companies.
2) The card may also be marketed as a replacement of low-end
salary accounts. Several corporates, owing to the low average
salary payout to their employees, do not qualify for salary
accounts with our Bank. Such corporates may be offered the
Rewards card facility whereby the monthly salary would be
directly loaded onto the card.
Product Details
Instant Gratification
Immediate access to Salary / Incentives/ Commissions payments
anytime, anywhere to the cardholder.
Usage:
The Rewards Card can be used at all Axis Bank ATMs free of cost and
at all other VISA ATMs in India at applicable rates. In addition, the Card
may also be used at all VISA enabled merchant outlets in India to pay
for purchases. Please note that the card is valid for use only within the
geographical boundaries of India.
Transaction Limits
• Daily cash withdrawal limit at ATMs -Rs. 40,000/-
• Daily POS usage limit -Rs. 40,000/-.
� Easy to Pay: The corporate has to give a single loading instruction
to
the Bank for loading the cards
�
Annuity Card – An Introduction
AXIS Bank in association with Life Insurance Corporation of India

61
presents the internationally accepted Co-branded Prepaid Annuity
Card. The AXIS Bank LIC Annuity Card is a rupee denominated card
which is an innovative and extremely convenient way to receive
regular Pension / Annuities from LIC of India.
The LIC Annuity Card apart from being an ATM Card used to
withdraw cash, it also enables to shop and make purchases, thus
serving the dual purpose, just like the normal Debit card. The Annuity
Cardholder will get his annuity reloaded on the card whenever it is due
from LIC of India, giving him the access to his funds anytime,
anywhere.
The LIC AXIS Bank Annuity Card is launched on VISA Electron
platform and is accepted at VISA / VISA Plus ATMs worldwide and at
all Merchant Establishments displaying the VISA Electron sign globally.
Product Details:
Eligibility:
Only the Annuitants of LIC are eligible for applying for Axis Bank LIC
Annuity Card. No Bank Account or Average quarterly Balance
maintenance is required.
Commercials:
The Bank has entered into an agreement with LIC of India on the
Annuity Card whereby the fees shall be borne by the LIC of India. The
branches are thereby advised to inform the customers that, the
“Annuity card” is Free to all the individual annuitants.
Additional Services:
The following services shall be made available on the Annuity card:
• Purchase Protection and Zero Lost Card Liability and
• Free Telebanking facilities
• Account Statement through E-mail on a monthly basis.
Global Acceptance:
The LIC AXIS Bank Annuity Card can be used at more than 20,000
VISA ATMs and 80,000 Merchant Establishments in India. The card is
also internationally acceptable at more than 9,00,000 ATMs and 13
million Merchant Establishments worldwide.

62
Validity:
The Axis Bank Annuity Card comes with validity period of 10 years
Transaction Limits:
• Daily ATM transaction limit: Rs 40,000/-
• Daily POS transaction limit: Rs 40,000/-
Insurance:
Zero Lost Card Liability: The Annuity Card comes with a Zero Lost
Card liability. In case of loss of your Annuity Card, you are insured for
the loss due to the fraudulent transactions done using your card. You
would however be required to report the loss of the card to the Bank
immediately upon realizing the loss.
• Purchase Protection: All consumer durable goods purchased
using the Annuity Card are insured against fire, burglary,
natural calamity and house-breaking up to 90 days from the
date of purchase.
Customer Service:
• 24 Hour Emergency Helpline: In case of the card lost you may
call our 24 Hr emergency helpline 022-67987700 for card
blocking
• Tele Helpline: For any assistance, call our customer service no
1860-425-8888 (From a BSNL / MTNL landline anywhere in
India) during 9 am to 7 pm (Monday to Saturday)
• Email Helpline: The cardholder may write his Annuity Card
product related queries to annuity.card@axisbank.com
How to apply for Annuity Card
The Annuity card is absolutely Free of cost for the cardholder. Only the
Annuitants of LIC are eligible for applying for Axis Bank LIC Annuity
Card. The cardholder can download the Annuity Card application form
from the website of LIC. The duly filled Annuity card application form
has to be sent to the LIC of India office along with anyone the following
KYC documents:
• Defence / Police ID/ Employee ID Card
• Voter Card ID

63
 • PAN Card
• Driving License OR Passport

Merchant Acquiring Service

Axis Bank has launched its Acquiring business from December 15,
2003. Currently, the Bank has an installed base of more than 77,000
terminals and adding around 5000 MEs per month, the highest in the
industry in terms of nos. added per month. Axis Bank is now the 2nd
largest player in the country.
Market Scenario
Business is concentrated in top 8 centers
New Delhi - 35%
Mumbai - 30%
Rest* - 35%
*(Chennai, Hyderabad, Bangalore, Kolkata, Pune, Ahmedabad and
others)
Our Offerings
Salient Features of Cards Acceptance Services (Acquiring) offered by
Axis Bank is:
Enhanced Protection against Frauds
To ensure a high level of protection from frauds, we have built in
sophisticated security features additionally in the EDCs. Our terminals
are also EMV certified and can accept chip cards.
Customer Care of Highest Standard:
A robust, round-the-clock authorization and merchant support services
function ensures fast response times and reliable support in case of
network outages and EDC malfunctioning. This minimizes downtime,
thus enhancing productivity and profitability.
Loan against card receivable (Card Power):
The Bank offers schematic loan to securtise the card receivables in the
form of cash credit and short-term loans.
Dynamic currency conversion (DCC): We can give the option of
Dynamic currency conversion to our MEs whereby the international

64
cardholder can choose to transact in his local currency.

International Banking Department

The International Banking Department, formerly known as NRI
Services Department, was formed in the year September 2001 to
develop the NRI business of the Bank. Subsequently, the department
was re-christened as International Banking Department to give shape
to overseas expansion strategy of the Bank. Presently, the department
is involved in identifying opportunities in overseas markets with a
perspective of having a presence and implementing the same. Once
the foreign offices start functioning, the department performs overall
supervisory functions.
The Flashback
The rapidly changing world around us in terms of economic
liberalization and shifting of centre of gravity of world economy to Asia
led to identification of overseas expansion as one of the key
opportunity areas for the Bank. The stepping-stone chosen for
international waters was the island of Singapore, given its vibrant
financial centre, historical connections, presence of the Diaspora and
geographical proximity. The Singapore initiative was a tremendous
learning experience for the all those involved and the efforts culminated
into reality in the month of April 2006 when the branch commenced its
operations. Since then in a short span of a year, the Bank entered
Hong Kong, DIFC-Dubai and Shanghai, China. While the first two are
branches, the Shanghai office is a representative office engaged in
business promotion. Bank started Financial Year 2008-09 with the
opening of its second Representative Office in Dubai (UAE) under
Representative Office License issued by Central Bank of the UAE
The Present
Given the changes the department has witnessed over a couple of
years, the profile of the department has undergone metamorphosis and
today, we have built up skills that is multi directional and is geared up
to take up increasingly diverse and complex tasks.

65
What we do
As mentioned in previous paragraphs, the department gets in to act
right from the stages of conducting research on the overseas
opportunities, converting the opportunity in brick and mortar structure
and then providing all supports to enable the overseas offices to meet
the stated business objectives. Therefore, our functions can be
categorized at Research Stage, The Execution Stage and the
Operational Stage.
The Research Stage
The first step to a new initiative and arguable the most crucial because
a false start can be time consuming and can have the associated
opportunity cost. The parameters that go in for a scrutiny are the
business environment, the opportunity, the connection and the value
that such a presence at can bring to the Bank. The analysis of the
above parameters is exhaustive and elaborate involving close scrutiny
of prevailing regulatory environment, the startup cost that the Bank has
to bear, the break even time, taxation levels and opportunity that can
be converted in tangible revenue. Once internal approvals are in place,
necessary permissions have to be applied to Reserve Bank of India
and the regulators in the host country.
The Execution Stage
Once the approvals are through from RBI, we move on the next stage
where in discussions are initiated with the regulators in the host
country, presenting our case and starting application formalities. The
application process is long, spread over months and involves extensive
interactions with regulators in the host country. Typically, the
application for a license in an overseas location involves detailed
assessment of the business plan, our policies and practices. Once the
approvals are in place from the host country regulators, the action time
begins with multi pronged initiatives be it for identifying premises, staff,
administrative structures and host of
compliance obligations. It takes almost three months to commence
operations once host country approvals are in place.
The Operational Stage

66
The commencement of business at foreign offices is one of the
milestones and the easier portion of the overseas initiatives. The
stakes are highest in the post commencement stage, which is the time
to convert the opportunity into tangible revenue streams in an alien
surrounding. Besides the business parameters, the post
commencement stages also brings in compliance issues and
operational issues, beside periodic updation of the administrative
structures in terms of polices
and procedures. The International Banking Department is involved in
providing support to foreign offices in business development, in
administrative matters and is the single point link between foreign
offices and the rest of the Bank

Profile of the Existing Foreign Office

Singapore
Since its inception, the Singapore branch has been active in the area of
corporate banking and has been able to participate in and facilitate the
debt raising activities of Indian corporates in the international markets.
The Singapore branch also provides trade finance and treasury
solutions. As of March 31, 2008 the branch has built up an impressive
balance sheet with total assets at USD 1.18 billion and Profit Before
Tax of USD 18.97 million.
Restrictions: In addition to restrictions imposed by terms of operations
of Merchant Bank and ACU, the license terms stipulate the following
conditions
1. Asset Maintenance Requirement of 75% of all DBU
books non-bank liabilities and,
2. Limiting Deposit taking activity from Accredited Investors,
The activities permitted as per ACU terms of operations
generally exclude dealing in SGD, the local currency.
Hong Kong
The Hong Kong branch commenced operations on March 21, 2007 and
is a full license bank branch that enables the Branch to operate with a
wide range of financial offerings covering Corporate Banking, Trade

67
Finance and Retail Banking businesses. However, at the moment, the
branch is offering services in the area of Corporate Banking, Trade
Finance and Treasury solutions.
Restrictions: As per the extant regulations in Hong Kong, any person
carrying on ‘Regulated Activities’ that include dealing and/or advising in
securities, futures contracts, foreign exchange trading, security margin
financing and asset management is required to be licensed or
registered with the Securities and Futures Commission (SFC). The
process for obtaining “Registered Institution” status (in Hong Kong) is
under active consideration so as to enable the Branch to undertake full-
fledged wealth management and capital markets related activities in
Hong Kong.
As at the end of 31 March 2008, the Hong Kong Branch had loans and
advances level of U.S.$278.89 million and Profit Before Tax of USD
4.59 mio.
DIFC-Dubai
During the fiscal year 2007, the Bank obtained a Category-1 license
from the Dubai Financial Services Authority (DFSA) to set up a branch
in the DIFC. The DIFC Branch had commenced operations in April
2007 and is authorized to conduct the following businesses in respect
of Credit, Shares, Debentures, Warrants, Options, Units and Futures:

1. Accepting deposits;
2. Providing credit;
3. Dealing in investments as principal/agent;
4. Arranging credit or deals in investments;
5. Managing assets;
6. Advising on financial products or credit; and
7. Providing custody

General Restrictions on Authorized Firms (AF) operating from

DIFC (also applicable on our DIFC Branch):
All AFs, conducting banking business from DIFC, must ensure;
(1) That it does not conduct Investment Business, Banking Business or

68
Provide Trust Services with or for a Retail Customer.
Shanghai, China
The Bank has a representative office at Shanghai, China, which is
involved in the business promotion, conducting research on the
opportunities available to the bank for business, liaisoning between
Bank’s customer and correspondent banks, etc. The office was
inaugurate on July 17, 2006 under the Representative office License
issued by China Banking Regulator Commission (CBRC).
Dubai Representative Office, UAE:
The Bank received Representative Office License from Central Bank of
the UAE in March 2008. Consequently, Bank commissioned its second
representative office in May 2008 in Dubai (UAE).

The Future
The Bank had availed services of M/s Mckinsey & Co. in devising the
strategy for development of business at the foreign offices of the Bank.
Based on the recommendation of the said engagement, a business
model for the overseas operations of the Bank has been drawn up to
meet objectives adopted by the Bank, in which the department plays a
crucial role.
Business Banking Department
The Business Banking Department (erstwhile Institutional Business
Department) was set up in the year 2000, with the objective of having a
special cell to serve the institutional and corporate clientele of the
Bank. Business Banking initiatives revolve around transaction banking
services to garner Business Current Accounts, Cash Management
Service mandates, Government Business. The Business Banking
department has consistently focused on procuring low cost funds by
offering a range of Current Account products and Cash Management
solutions across all business segments covering Corporates,
Institutions, Central and State Govt. Ministries/Undertakings as well as
small business customers. Cross selling of transactional banking
products to develop account relationship, aided by product innovation

69
and customer centric approach have borne fruits in the form of growing
current account balances and increasing realization of transaction
banking fee.
The Department presently focuses on the above three broad areas
through the respective Business Groups, as under:
• Business Current Accounts
• Cash Management Services
• Government Business

BUSINESS ACCOUNTS
Business Current Accounts are major thrust area of the Bank.
Accepting deposits (broadly categorized as Demand Deposits and
Time Deposits or Term Deposits) for the purpose of lending and
investment is one of the basic functions of banks. Deposits are the
main source of their working funds. The volume and growth of deposits
of a bank are indicators of the consumer confidence, and are also
considered as important parameters for measuring its size and
performance.
Demand Deposits are low cost source of funds and it forms a
significant part of a bank’s deposit base. Higher the proportion of
Demand Deposits in the overall deposits of a bank, lower is the cost of
funds for the bank. On current account portion of Demand Deposits
banks do not pay any interest hence current accounts are the cheapest
source of funds. However current account deposits are very volatile in
nature, as these deposits are not committed to the bank for any fixed
time period.
Hence healthy pace of Current Accounts acquisition is an imperative
for sustained growth of balances.
The Bank has over 3.50 lacs current account relationships with an
outstanding balance of Rs. 20,045 Cr. as on March 31, 2008.

Business Accounts Group:

The focus of the Group is to increase the share of Demand Deposit by

70
broad basing the Bank’s Business Current Account Clientele reducing
the Cost of Funds and improve bottom line as well. Generation of fee
income from this segment by offering a range of products to suit the
various customers such as Small Businesses, SME, Large Corporates
as well as Institutions has always been constant endeavor of the
Group.
The Group also drives the business by effectively using the Sales
Executive and Business Banking RM Channel of the Bank. The focus
of the Group is also on new initiatives offering better privileges for high-
end customers.
Product Development: Under product development constant market
research through data mining on the existing portfolio, study of the
usage patterns, processes, networking and pricing offered by
competitors, decision-making process of consumers etc. is carried out
to develop new customized products based on the findings.
Sales: The role of the sales team is to enhance the penetration of
various products, which are developed and designed by the product
team. They are also responsible for monitoring the activities of the
entire sales channel.
Marketing: The marketing team takes care of the promotional aspects
like brochures, posters, advertising, running promotional campaigns,
launching special schemes, etc.

71
Axis Bank Current Accounts
The Bank offers a range of current account products to meet the needs
of the various customer segments such as Small Enterprises, Traders,
Exporters, Corporates and Institutions. The various accounts are as
follows:

Value Based Sector based

Current account normal Krishi Current account
Business Advantage Capital Market Current Account
Business Classic Business Global Current Account
Business Privilege Builders & Real Estate Current
Account
Channel One Current Account Current Account Shipping &
Maritime
Club 50 Current Account Current Account Inland Road
Transport
Current Account Travel, Tourism
& Hospitality

These products offer flexibility to customers to choose from the above

options with varying minimum monthly average balance commitments
and associated tariff structure. In addition to conventional banking
facilities, these accounts offer Multi-City At Par payable cheque- book
facility and Anywhere Banking facility across branches. Customers can
access their account Online through Corporate iConnect, our Internet
banking platform, as also through Phone Banking facility and can

72
receive account information on mobile phones and electronic mail.

Why different types of Current Accounts?

The reason why the Bank has different types of current accounts is to
cater to each and every segment of the market. The various value
based products are based on the MAB / HAB requirement and hence
lower MAB products are designed for the small players in the market
and the higher MAB products are designed for the SMEs and Large
Corporates. Hence, need for different products with various MAB / HAB
requirements. The high value accounts provide higher float income for
the bank while the accounts with lower MAB provide more fee income
for the bank. Current Account Normal and Current Account Business
Advantage cater to the lower end of the market, whereas Current
Account Business Classic, Current Account Business Privilege,
Channel One Current Account and Club 50 Current Account cater to
the higher end of the market.
Axis Bank is a pioneer in terms of launch of the 10 lacs and 50
lacs product. In fact, 24 months after the launch of Channel One
Account, ICICI Bank has launched a similar variant called ‘The Elite
Current Account’. ‘Channel One’ and ‘Club 50’ are the high-end
current account variants launched by the bank, where customers enjoy
various transactional benefits, lifestyle privileges, dedicated
relationship manager, etc. The Channel One product was introduced in
F.Y.2005-06 and has been well received by the customers and based
on its success and to nurture the relationship with premium customers
by providing enhanced product features and benefits, Club 50 current
account was introduced in F. Y. 2007-08 which is a premium product
over and above Channel One.

Axis Bank has also launched seven industry specific products, which
cater to various industry segments where the bank has identified strong
business potential and have offered customized solution to these
segments.
At Axis Bank Current Account group, segmentation is a two-pronged

73
road. They are:
Value Based Segmentation: Using this, we segregate customers
based on the Monthly Average Balances (MAB), which they maintain in
their current accounts. The services offered and charges levied vary
according to the MAB requirements. For example, a corporate
maintaining MAB equivalent of Rs.10 Lakhs will get a Relationship
Manager, whereas anybody maintaining less than that will not be able
to avail the facility. In this manner we are able to insulate our cost
structure and provide facilities commensurate to the overall profitability
of an individual customer.
Sector Based Segmentation: The second half of F.Y. 2008-09 saw us
grow in stature as a trendsetter in the sphere of transaction banking.
We, for the first time in the Business Account space, have treaded on
the path of segmentation and sector specific product offerings. This
approach has been a result of both data driven analysis and intuitive
business sense. With an objective to target various industry specific
segments to garner more current accounts, the main aim of targeting
industry specific accounts is as follows:
1. Identification of needs of a particular segment and to fulfill them
effectively.
2. To provide an end-to-end solution by integrating the bank
platform with the industry requirement.
3. To remain ahead of competition by identifying lucrative
segments and designing need based products thereby capturing
the tremendous growth potential these segments offer. The
other Current Account schemes available with the bank are:

• Current Account BANK: The scheme is meant for opening of

Current Accounts of other Banks. The concessional collection and
payment facilities are an integral part of the product feature.

• Current Account - GOVT ORGANISATIONS: Offered to

Government Organizations / Bodies (Central Govt./State Govt./Local
Bodies Govt Dept. / Autonomous Bodies) with no Minimum Balance

74
Stipulation and host of other services without any charges.
• Current Account – PUBLIC SECTOR ENTERPRISES: Launched
during 2007-08 specifically for Central and State Public Sector
Undertakings (PSUs) with no Minimum Balance Stipulation and host of
other services without any charges.
• Current Account - LIC: A special current account offered by the
bank for Life Insurance Corporation of India with certain special
benefits as per the MoU agreed with LIC.
• Current Account - SWEEPS: Facility offered by the Bank to current
account customers for linking multiple current accounts. The product
facilitates payments in case of shortfall in the drawee account by
sweeping in the balance from linked accounts. For the purpose of
payment, total balance in all the linked account is considered as a pool
balance.
Future Strategies:
• Co-ordination with Branches for sourcing large Value accounts.
• Greater emphasis on sales campaigns / internal sales contests,
focused on select business segments through business
segmentation research support & dissemination of learning with
sales team.
• Co-ordination with Large and Mid Corporate groups of the Bank
for high value current account relationships (including
Franchisees/ Dealerships).
• Systematic process for deepening of existing current accounts
relationships through identification of Accounts, Assessing
Business potential through customized offering, ring fencing
existing high- end customers by categorizing their accounts in
appropriate scheme codes.
• Additional Regional Desks to provide intense focus.
• Product & Sales Training Programmes.
Cash Management Services
Under cash management services, the Bank offer solutions towards
collection & payment services, which allow CMS clients to minimize the

75
gap between collections & remittances. The bank also provides web
enabled query and MIS that facilitates easy reconciliation of their
collection and payment transactions.
The Bank offers a comprehensive array of collection and payment
products and has emerged as one of the front-runners in the area of
Cash Management Services with a constant endeavor to offer
competitive and innovative customized solutions to corporates. Our
technological initiatives backed by innovative solutions enable us to
constantly provide our customers with improved offerings to help them
do their business better. The different products offered under CMS are:

Collections:
- Local Cheque Collection (LCC)
- Upcountry Cheque Collection (UCC)
- Post Dated Cheque (PDC) Management and Bulk Collections
- Utility Bill Collections
- Collecting Bankers for IPOs/FPOs/Rights Issue
- Collecting Banker to Educational Institutes for fee/prospectus selling
- Cash pick up and delivery
- Electronic Clearing Services (ECS) Debit
- Collection through Real Time Gross Settlement (RTGS)

Payments:
- Payment of Interests/Dividend/Redemption
- Centralized/Remote Printing of Bulk Customer Cheques
- Remote/Centralized printing of Bulk DDs
- Direct Credit
- ECS Credit
- National Electronic Fund Transfer (NEFT)
- Payment through RTGS

76
Cash Management Products:
Our cash management products include Local & Upcountry Collections
with pooling of the funds to a central account along-with customized
MIS. We have a Centralized version of collection module with
realization process under Local cheque collection.
In addition to collection, we also offer Local & Remote Payment facility
through customized Customer Cheques and Bulk Demand Drafts with
Cover Note through centralized or remote printing, Electronic Clearing
Services, Disbursement of dividend and interest, remittance services
and Internet- based payment products.
We offer electronic payment facilities to our Government,
Corporate and Institutional customers for payments to their vendors/
suppliers through various modes such as Direct Credit and Electronic
Clearing/ Funds Transfer facility. This service offers a high level of
convenience since no physical instruments are required and all
transactions are effected electronically.
The Bank also offers online viewing of transactions and query
resolution through Internet.
Cash Management Network:
Presently, we offer an ever-expanding network of electronically linked
CMS branches across 360 cities in the country. In addition to our own
locations, we have tied up with various other banks to offer a broader
coverage to meet the specific requirements of our customers under
Cash Management Services. We have today an extensive
correspondent bank network of more than 3000 locations, which
provides us a definite competitive advantage. Our dedicated
Centralized Collection & Payment Hub (CCPH) is available on all days
except Sundays & National Holidays to resolve customer queries
promptly and efficiently. Additionally, we are also offering our CMS
services to other Private and MNC Banks as a Correspondent Bank.

77
Advantages of Cash Management Services:
� For Corporates:

- Improved liquidity through faster access to funds.

- Assured Funds in the Pooling Account.
- Reduced borrowings and lower interest payments.
- Deployment of Funds is easier by reduction in accounts maintained
with Banks for different requirements.
- Lower operational costs.
- Greater ease in accounting and reconciliation through Client Specific
MIS, including MIS through Web.
- Single Window Query
�

For the Bank

- Client Acquisition by offering CMS as an entry strategy
- Fee as well as Float Based Income
- Cross Selling of other Banking Products
- Developing overall relationships
- Monitoring of Cash Inflows of the Corporate where Bank has a Credit
Exposure
- Balancing of Mis-matches at the Branch level from the CMS funds

Cash Management Group:

The Group strives to generate fee and float income by offering high-
end value added transactional services and customized solution to
various client segments. The focus is to target the Large and Mid
Corporates and Institutions in coordination with the Relationship
Managers of Credit department and SME/ other Clients through the
Zonal Business Banking/ Regional Business Banking Officials and
Branches. The Group performs the following broad role:

78
 • Product Development: The product development team is
engaged in constant market research to keep our offerings in
line with the industry, to develop new products to remain ahead
of competition and process re-engineering to add value to
existing products. The focus is also on continuous up-gradation
of product capabilities and process efficiency to meet the needs
of various customer groups. The team also does the appraisal of
the various proposal sourced by the RMs/ Zonal BB/ Regional
BB desk in terms of pricing and profitability.
• Implementation & Logistics: The implementation & logistics
team ensures successful implementation of the mandates
received by the Bank and manages the Correspondent Banks,
Courier Agencies etc. The team also endeavors to expand the
Bank’s CMS network through additional tie-up with
Correspondent Banks/ Courier Agencies.
• Business Development: The team focuses on increasing
business volumes from the existing clients & sourcing additional
business by aggressively acquiring new clients through close
co- ordination with Relationship Managers and Regional/Zonal
Business Banking officials and branches.
• Zonal Business Banking, Regional Business Banking desk and
Branches

Future Strategy:
The role of the Cash Management Group at Central Office is to
formulate strategies for various businesses in CMS-Collections and
Payments and drive business through Zonal BB/Regional BB. The
broad strategies for achieving the same are as under:
• Providing customized collection and payment solutions to
various Client Segments including large and mid Corporates,
Mutual funds, Brokering firms, etc by leveraging the Bank’s
technology.
• Emphasis on Electronic Remittances viz. ECS /RTGS/NEFT.

79
 • Increasing CMS network - own locations & through
Correspondent Bank tie ups.
• Close Coordination with RMs for large & mid corporate
accounts.
• Close Co-ordination with Zonal BB/ RBBs for SME Clients.
• Thrust on Utility Service Providers in Telecom/ Energy Sector for
generating fee income.
• Special focus on IPO Collections/ Refund Payments for float
income.
Further to this there is a constant endeavor to enhance the existing
client relationships by making a constant effort to offer the entire gamut
of services to all the existing customers. The CMS group is also
focused on widening and deepening the relationship by cross selling
other Banking Products thereby increasing the fee and float income for
the bank.

Government Business
The Bank has witnessed tremendous growth in Govt. Business over
the past 6 years, making it a leading player among its Peer Banks in
this segment today. As an Agency Bank of RBI, the Bank handles Tax/
Non-Tax Revenue Collection on behalf of the Central & State
Governments, Expenditure-related Payments of Central Govt.
Ministries & Departments and Collection of Railway Freight &
Passenger Revenue for which it receives Agency Commission from
RBI. Under Non-Agency Business, for which RBI authorization is not
required, the Bank strives to strengthen the existing
Relationships as also develop new relationships with various
Government Organizations and Central/ State Govt. Public Sector
Undertaking (PSU’s) through customized offerings towards providing
Account Management Services and Collection/ Payment Services,
contributing to Current Account Balances as well as Fee Income.
During the Year ended March 2008, the Bank has handled Govt.
Business Throughput of Rs. 53,585 Crs. with Zero-Cost Float

80
contribution of over Rs. 295 Crs. from Tax/ Non-Tax Revenue
Collections, as an Agency Bank. Additionally, the Govt. & PSU
Segment has generated Fee Income of Rs. 16.87 Crs. and contributed
over Rs. 834 Crs. towards Current Account CDAB of the Bank and Rs.
2,723 Crs. towards Current Account year-end balance of the Bank for
the Year ended March 2008.
Authorization as an Agency Bank of RBI:
Axis Bank has been authorized by Reserve Bank of India and Govt. of
India vide its letter dated August 27, 2003 to handle all Government
Business transactions as an Agency Bank which includes the following:
• Collection of Direct and Indirect Taxes
• State Government Businesses such as Collection of Sales Tax,
Pension Payments, etc.
• Expenditure-related Payments on behalf of various Ministries/
Departments of Govt. of India
• Disbursement of Central Civil as well as Non-Civil (Railways,
Defence, Telecommunication and Posts) Pensions

Apart from our Bank, the other Private Sector Banks authorized for
conducting Government Business are ICICI Bank and HDFC Bank.
Prior to the induction of these Private Sector Banks, handling of
Government Business transactions was restricted to Nationalized
Banks only. For businesses handled as an Agency Bank of RBI, the
Bank receives Agency Commission from RBI as under:

• Receipts – Rs. 45 per transaction

• Payments other than Pension – Rs. 0.9 per Rs. 1000 on turnover
basis
• Pension – Rs. 60 per transaction

Government Business Group

Backed with the authorization of the Bank for conducting Govt.
Business as an Agency Bank of RBI, the Govt. Business Group today

81
primarily focuses on the “Government & PSU Segment” for generating
Fee Income as well as Current Account Balances/ Zero-Cost Float for
the Bank by offering various Banking/ Other Services. For a greater
focus and with an objective to offer specific solutions to the Govt.
Organizations and PSUs, we are following a segmental approach at
Central Office as well as Zonal Office along three Sub Segments -
Central Govt., State Govt. and Other Govt. Organizations with PSUs
falling under Central/ State Govt. Sub Segments for effective business
development. The business generation from this segment is not instant
and requires developing and managing relationship with key officials,
offering customized solution fulfilling their requirements and having a
first mover advantage by replicating the businesses done in other
regions.
Roles & Responsibilities:
The roles and responsibilities of the Officials in Govt. Business Group
at Central Office are enumerated as under:

Business Development: The business development role primarily

involves driving business through Regional/ Zonal Desks - Govt.
Business and Branches for new client acquisition by providing
marketing support through business visits, meetings and structured
presentations to Clients. The role includes evaluating business
proposals from Zonal/ Regional Offices including profitability and
feasibility analysis and also coordinating with Other Departments viz.
Credit/ Treasury/ Retail Banking for offering their products and
services.
Product Management: The product management role includes
ownership of Central/State Tax Revenue Collection, Stamp Duty
Collection, Expenditure Payment and Pension Payment Products and
allocating related budgets (Throughput, SL Float, CA-CDAB & Fee
Income) to Zones/ Regions/ Branches and monitoring of Performance.
Coordinating with IT/ Legal/ Compliance Departments & Govt.
Business Implementation Team for rollout of various products and
services is also an integral part of product management.

82
Strategy Planning & Research: In this role, the Group focuses on
formulating business and marketing strategies for various businesses
including competition analysis, conceptualizing and structuring
customized solutions for acquiring High-Value Current Accounts
through Value-Add Services and creating Marketing Programmes to
support client acquisition. The role also requires identifying and
analyzing new business opportunities in Govt. & PSU Segment.
Further, it also requires research and analysis of processes of specific
client groups in Govt. & PSU Segment and designing process flows for
new businesses.
The Group at Central Office is also responsible for liaisioning with
Department of Govt. & Bank Accounts, RBI Mumbai for policy level
issues relating to Govt. Business.
For business development and effective relationship management, the
Govt. Business Group operates through its Zonal Desks at Zonal
Offices and Regional Desks who are dedicated resources for
generating and developing business from Govt. & PSU segment in
their respective Zones/ Regions. Presently, there are over 50 Govt.
Business Regional/ Zonal Desk positions across the 4 Zones at the
State Capitals and other important locations. Moreover, since most of
the Central Govt. Ministries/ Departments are based in Delhi, we have
a strong team of 9 Officials in Govt. Business
Zonal Desk, as part of Northern Zonal Office, who are building and
maintaining relationships with these Ministries for various, banking
services.
The roles and responsibilities of these Regional/ Zonal Desks –
Govt. Business include building, managing and strengthening existing
relationships with clients in Govt. & PSU Segment through regular
interaction/ follow-ups as well as identifying and developing business
opportunities in this Segment including Agency and Non-Agency
Business. Additionally, these Officials are also responsible for
liasioning and providing support to the Branches in their region for
various existing businesses as well as for acquiring new clients.

83
Existing Associations & Initiatives:
More recently, in addition to various Govt. Organizations, we are now
also targeting the Central/ State Public Sector Undertakings (PSUs) for
providing various Banking and Cash Management Services through
our Regional Desks/ Zonal Desks – Govt. Business. Since these
PSUs (Central PSU/ State PSU) have linkages to some or the other
Central Govt. Ministry/ Department or State Govt. Department, we are
making a strong effort to develop our relationship with these PSUs by
leveraging our Authorized RBI Agency Bank status and the existing
relationships under Govt. Business with these Central Govt. Ministries/
Departments and State Govt. Departments.

Strategy for F.Y. 2008-09:

With the experience gained and the capabilities developed for Govt. &
PSU segment towards providing various banking services through
relationship-based approach and the significant success in terms of
Zero-Cost Funds and Fee Income, it has been decided to continue with
the same relationship-based approach for the Govt. & PSU segment in
the ensuing year 2008-09 also, however, with a greater focus.
Accordingly, a liability driven relationship-based approach will
be followed in the Bank for Govt. & PSU Segment during 2008-09 so
as to bring in incremental business to the Bank and also to meet the
competition. The business development will be done through
relationship building and offering comprehensive banking solution
under Business Banking Department as part of Corporate Banking, as
being followed in the Peer Banks where a single Business Group takes
care of the requirements and manages the relationship. Therefore,
under the above approach, the Govt. Business Group will be
responsible for relationship management with the clients in this
segment and offering comprehensive transaction banking solutions
(viz. Account Management Services and Collection/ Payment
Services). Additionally, the Govt. Business Group will also be

84
responsible for cross-selling Other Departments’ products/ services in
co-ordination with the respective CO Teams for business generation as

Agency Business:
�
The efforts will be geared towards maximizing the Tax Revenue
Collection as well as the Number of Transactions for existing mandates
i.e. CBDT, CBEC and 7 State Governments/ UTs for increasing the
Fee Income and GB SL Float by taking the following steps:
• Maximize the number of Challans by targeting even the low-
value Challans, which will contribute to the Fee Income. This
can be achieved by targeting the TDS/ TCS paid by the
companies every month under CBDT and Service Tax under
CBEC, which will also result in regular inflow of tax payments.
• Maximize the Collections by leveraging the Bank’s relationships
across different products & services and ensure that all the
existing clients pay their Tax Dues through our Bank as well as
continuously add new clients.

Value-add Services/ Facilities like online payment of Central/ State

Taxes (Income & Corporation Tax, Central Excise, Service Tax,
Chhattisgarh Sales Tax) and DGFT e-Payments will be promoted for
retention of Current Account customers as well as acquisition of new
clients. This becomes strategically important considering that payment
of Income/ Direct Taxes (CBDT) through e- Payment mode has been
made mandatory for all companies and all Section 44AB entities w.e.f
April 1, 2008. In case of CBEC, it is mandatory for all Assesses paying
Central Excise/ Service Tax of over Rs. 50 lakhs p.a. to make payment
through e-Payment mode only.
� In those States, where the Bank is not authorized for State Tax
Collections, opportunities to be explored for associating with the State
Government by way of offering the facility of online payment of various

85
State Taxes, which will not only contribute to Fee Income/ Float but
also serve as a good tool for acquiring new Current Account
customers.

Non-Agency Business: Under Non-Agency Business, the focus will

be mainly on Govt. Organizations and Central/ State Public Sector
Undertakings (PSU’s), where RBI authorization is not required, for
generating substantial Current Account Balances/ CDAB as well as
Fee Income, wherever possible.
Govt. Business Organizations/ Bodies:
� The emphasis will be on getting associated with various
Government Organizations/ Bodies (Central Govt./ State Govt./ Local
Govt./ Autonomous) for contributing to Current Account Balances
under CAGOS Scheme and also contribute to Fee Income from various
services as under:
• Account Management Services for Current Account relationship
• Cash Management Services (CMS)
• Customized Collection/ Payment Services including Vendor
Payments, Pension disbursements, Salary disbursements
• Value Added Services like e-Payments, e-Tendering/ e-
Procurement, Banker to G2C and G2B Projects, etc.
• Disbursement of funds under Govt. Benefit/ Social Security
Schemes through IT Enabled Financial Inclusion

 The customer segments to be primarily targeted are

Municipal Corporations, Housing Boards/ Development
Authorities, Electricity Boards, Railway Divisions,
Defence Units, State Government Departments, etc.
 Drive the business of Collection of Stamp Duty through
Franking for maximizing the Fee Income from this
lucrative business.

Central/ State Public Sector Units (PSU’s):

86
 • Effectively targeting all the Central/ State PSU’s for generating
Current Account balances under CAPSE Scheme from various
services as under:
1. Account Relationship - Current Account for normal
transactions as well as for customized Online Collection
facilities like e Tendering and e-Payment Facilities like
Taxes, DGFT License Fees, etc.
2. Collection Services - Through Anywhere Banking and/ or
CMS
3. Payment Services - CMS Payment Products and Single
Window Payment Facility for Vendor/ Supplier Payments
4. Collecting & Refund Banker - For Bonds/ IPO/ FPO and
Interest/ Dividend Payments
5. Collection of CBDT/ CBEC/ State Tax Dues including e-
Payment of Central Excise & Service Tax
6. Empanelment of the Bank for placement of short term
surplus funds and other banking arrangements

With the above approach, we expect to make further inroads into all
categories of Govt. Departments/ Corporations/ Municipal
Corporations/ Other Govt. Organizations/ Public Sector Undertakings
(PSUs) across multiple States for incremental business and strengthen
our position as a leading Bank in the Govt. Business domain.

Axis Bank’s Government Business Initiatives

Association with Central Government Ministries/ Departments:

The Bank is authorized for handling Collection of Income/ Other Direct

Taxes on behalf of Central Board of Direct Taxes (CBDT) under
Ministry of Finance since October 2003 and Collection of Central
Excise & Service Tax on behalf of Central Board of Excise &
Customs (CBEC) under Ministry of Finance since November 2003
through its designated authorized Branches across the country

87
including e-Payment facility for payment of Taxes through Internet for
Taxpayers/ Assesses having Account with the Bank.
During the year 2007-08, the Bank has handled collection of Central
Govt. Taxes (Income/ Other Direct Taxes, Central Excise & Service
Tax) in excess of Rs. 32, 050 Crs. with transaction volume of over
13.42 lakh Challans. The Bank is among the top 5 Banks in collecting
Income/ Other Direct Taxes on behalf of CBDT and ranked 4th in 2007-
08 as compared to 5th rank previous year with a market share of
around 7.5 % on a pan-India basis. (Source by axis bank)

Additionally, the Bank is also associated with other Central Govt.

Ministries/ Departments for providing Expenditure-related Payments
and other Banking Services as under:
• Expenditure-related Payments and other businesses of Ministry
of Urban Development and Ministry of Housing & Urban
Poverty Alleviation as an Accredited Bank since February
2004. During the year 2007-08, the Bank has handled
Collection/ Payment Throughput of over Rs. 3,656 Crs. on
behalf of the Ministry.
• Expenditure-related Payments and other businesses of Office of
the Controller General of Accounts (CGA) under Ministry of
Finance since April 2004.
• Banking Services to Railway Divisions under Ministry of
Railways towards Collection of Freight/ Passenger Revenue
and Contractors/ Vendor Payments through Single Window
Payment Facility - The Bank has been authorized by RBI &
Raipur Division of South East Central Railway (SECR) for
handling Collection of Station/ Freight Earnings from designated
Stations/ Sidings, as an Accredited Bank. The Bank is also
handling Collection of Freight/Passenger Revenue on behalf of
1 Railway Division i.e. Central Railway, Mumbai Division as a
Non-Accredited Bank. The Bank is also providing its Single
Window Payment Facility towards handling Contractors/

88
 Suppliers Payments to 15 Railway Divisions and has handled
payments in excess of Rs. 1,277 Crs. in 2007-08.
• Banking Services to 22 Ordnance Factories under Ministry of
Defence towards Payment to Contractor/ Vendors through
Single Window Payment Facility and has handled payments in
excess of Rs. 1,359 Crs. in 2007-08.
The Bank is also authorized for handling the disbursement of
Central Civil Pension since March 2004 through its 218
Authorized branches and disbursement of Defence Pension on
behalf of Ministry of Defence since August 2005 through its
151 authorized branches. As on March 31, 2008, there were 153
Civil Pensioners Accounts and 207 Defence Pensioners
Account maintained with our Bank and during the year 2007-08,
the Bank has handled pension disbursement of over Rs. 11 Crs.
to the above Pensioners.
Association with State Government Departments:
• Collection of State Taxes: Axis Bank was the first Private
Sector Bank to be authorized by Govt. of India and RBI for
Collection of Commercial Taxes in Andhra Pradesh in July 2001.
Presently, the Bank is authorized in 7 States/ U.T.s for
Collection of Commercial Tax/ Sales Tax/ VAT and other
Revenues as under:
• Collection of Commercial Taxes in Andhra Pradesh including
handling VAT Refund Payments.
• Collection of Sales Tax/ Professional Tax in Gujarat since
February 2004.
• Collection of Commercial/ Sales Tax in Chhattisgarh since
December 2004.
• Collection of Sales Tax in Punjab since December 2004 and
Collection of National Permit Fee since October 2005.
• Collection of Sales Tax in Chandigarh U.T. through Sampark
Centers since November 2004.
• Collection of Sales Tax in Uttaranchal since December 2004.

89
 • Collection of Sales Tax/ VAT in NCT of Delhi since May 2005.
During the year 2007-08, the Bank has handled collection of
State Taxes (Commercial Tax/ Sales Tax/ VAT) in excess of Rs.
16,685 Crs. with transaction volume of over 10.61 lakh Challans.
Additionally, the Bank has launched e-Payment facility for
payment of Chhattisgarh Sales Tax on behalf of the
Department of Commercial Taxes, as part of the ‘eKosh’ Project
initiated by Govt. of Chhattisgarh. The Bank is also handling
Collection of Stamp Duty through Franking in Maharashtra,
Gujarat and Rajasthan and has handled a franking throughput of
over Rs. 72 Crs. through its 11 designated Branches during the
year 2007-08.

Banking Services to e-Governance Initiatives: The Bank is

providing its banking services, including online payments, to the e-
Governance initiatives of various State Governments aimed at
providing better citizen services by setting up of integrated citizen
facilitation centers and online portal. The Bank is presently associated
with the ‘eSeva’ initiative of the Government of Andhra Pradesh, the
‘Sampark’ initiative of Government of Chandigarh UT, the ‘Bangalore
One’ initiative of Govt. of Karnataka, the ‘eSuvidha’ initiative of Govt.
of Uttar

Association with Other Government Departments/ Organizations:

� Municipal Corporations - The Bank is associated with more than
75 Municipal Corporations/ Municipalities towards offering Account
Management Services for various Project-related funds and other
banking services including Collection of Municipal Taxes through
Offline & Online modes and banking services for ‘eProcurement
Project’. Few of the important associations are – Municipal Corporation
of Delhi, Thane Municipal Corporation, Navi Mumbai Municipal
Corporation, Municipal Corporation of Greater Mumbai, Kochi
Municipal Corporation, etc.

90
State Housing Boards & State Urban Development Authorities:
The Bank is associated with more than 18 Development Authorities/
State Housing Boards towards offering Account Management Services
and various other banking services including acting as Collecting/
Refund Banker for Housing Schemes and digitization of Allottee
Accounts. Few of the important associations are – Delhi Development
Authority, Chandigarh Housing Board, Housing Board Haryana,
Haryana Urban Development Authority, Karnataka Housing Board,
Goa Housing Board, etc.

State Electricity Boards: The Bank is associated with more than 15

State Electricity Boards towards offering Account Management
Services, Collection of Electricity Bills through Offline & Online modes
and Collecting/ Payee Banker for their Bonds-issue Programme. Few
of the important associations are – Assam State Electricity Board, West
Bengal State Electricity Board, Transmission Corporation of Andhra
Pradesh, Punjab State Electricity Board, etc.

State Govt. Corporations: The Bank is associated with more than 100
State Govt.Corporations towards various Collection & Payment
Services as well as Account Management Services. These State Govt.
Corporations include Tourism Corporations, Civil Supplies
Corporations, Financial Corporations, Industrial Development
Corporations, Water Resources Corporations, Forest Development
Corporations, Agri & Small Industries Corporations, etc.
Others: The Bank is associated with other Govt. Organizations
including Port Trusts for Collection of Port User Charges (Kolkata Port
Trust, Tuticorin Port Trust), Govt. Educational Institutions for Collection
of Application/ Course Fees (Indian Institutes of Management, National
Institute of Fashion Technology), District Implementation Agencies and
other Govt. Organizations for various Account Management and

91
Collection/ Payment Services.

CHAPTER-6
RESEARCH
92
 METHODOLOGY

Research Methodology
• DATA COLLECTION METHODS:-
Data is collected by survey method through filled
questioners.
• RESEARCH INSTRUMENTS:-
Questionnaire design to gather the information from
respondents having multiple choice question, open-ended
questions.
• SAMPLING SIZE :
1. TASC segment- 30
• SELECTING OF SAMPLING SIZE: -
All sampling units are chosen randomly. These are mainly

93
organizations, trusts, colleges, and temples.

CHAPTER-7
COMPARATIVE

94
 ANALYSIS

COMPARATIVE ANALYSIS OF AXIS BANK WITH OTHER

BANKS
1. AXIS bank is a fast growing in TASC Segment comparative to
other banks, like ICICI, HDFC, CANARA Bank, Yes bank etc.
2. AXIS Bank provides anywhere banking at free of cost, on the
other hand other banks takes charge on this facility.
3. AXIS bank provides free Demand draft, pay order facility free of
cost in all AXIS Bank branches but Yes bank provides this
facility in only selected branches not in all branches.
4. AXIS bank provides free monthly statements to all TASC
segment customers in comparison to other banks, other banks

95
 send the quarterly statements of account.
5. AXIS bank provides international debit card, in case of other
banks they do not provide international debit card to TASC
Segment customers.
6. AXIS Bank provides free DMAT account to TASC Customers,
others bank do not provide this facility free of cost.
7. AXIS Bank have great share in TASC segment in Ambala Cantt
comparison to ICICI, HDFC Bank.
8. AXIS Bank deals in other products like mutual fund, life
insurance, credit card, debit card, gold card, platinum card,
general insurance, loans etc.
9. AXIS Bank provides better service to their customers
comparison to other banks like ICICI, HDFC etc.
10. AXIS Banks have best staff in their branches in comparison to
other banks.
11. Customer problems are very less in AXIS Bank comparison to
other banks.

CHAPTER-8
ANALYSIS

96
 ANALYSIS
Q: 1 How Do you come to know about AXIS bank?

1. Marketing
2. Ad’s
3. Exhibition
4. Word of mouth
5. Others

97
 70%
63%

60%

50%

40%

30.00%
30%

20%

10%
4.00% 3%
0%
0%
Marketing Ad's Exhibition Word of others
mouth

Result: Most of them Know to Axis bank by Marketing and Exhibition, very
less percentage know by word of mouth & ads.

Q:2 Which factors play an important role while opening an account?

1. Ad’s
2. Special offer
3. Operational staff
4. Convincing power
5. Credibility of Bank

98
 70.00%
60.00%
60.00%

50.00%

40.00%

30.00%
20.00%
20.00%
13%
10.00%
3.33% 3.67%

0.00%

Ad's

Special Offer
OperationalConvincing
Staff power
Credibility of bank

Result: Most of the respondents thinks that credibility of bank play a

important role to bring customers.

Q:3 Which product do your organization use most?

1. Saving A/C
2. Current A/C
3. FD
4. Mutual Fund
5. Insurance Policy

99
 90%
80%
80%

70%

60%

50%

40%

30%

20% 17%

10%
3.00%
0.00% 0%
0%
Saving A/c Current A/c FD Mutual Insurance
Fund Policy

Result: Most of the respondents have saving account in AXIS Bank.

Q:4 Which facilities provides by AXIS Bank free of cost?

a. DD, Pay order fee
b. Monthly statements of A/C
c. Internet banking
d. Free mobile banking

Options: 1. All of these 2. A, B, C

3. None of these 4. Only D

100
 100%
90%
90%

80%

70%

60%

50%

40%

30%

20%
10%
10%
0% 0.00%
0%
All of these A,B,C none of these only D

Result: Most of the customers of bank know that bank do not charge any
charges for facilities.

Q:5 Do your Organization have another account in another in bank?

1. Yes
2. No

101
 120.00%

100.00%
100.00%

80.00%

60.00%

40.00%

20.00%

0.00%
0.00%
Yes No

Result: All of these respondents have extra account in other bank.

Q:6 Do another bank provides these services faster than AXIS Bank?

1. Yes
2. No

102
 70%

60.00%
60%

50%

40%
40%

30%

20%

10%

0%
Yes No

Result: Most of the respondents think AXIS bank provide faster service than
other banks.

Q: 7 Which of the direct banking channel you use most?

1. ATM
2. Net Banking
3. Phone Banking
4. Mobile Banking

103
 50%
47%
45%

40%
36.00%
35%

30%

25%

20%

15%
10.00%
10% 7%

5%

0%
ATM Net Banking Phone Banking Mobile Banking

Result: Most of the respondents use ATM & net banking for
transactions mode and very less use phone banking and mobile banking.

Q:8 Are you facing any problem while maintain your account at bank?

1. Yes
2. No

104
 100%
90%
90%

80%

70%

60%

50%

40%

30%

20%
10%
10%

0%
Yes No

Result: Very less respondents are facing problems for maintain the account.

Q:9 Do you think private sector bank are better than public banks?

1. Yes
2. No

105
 90%
83%
80%

70%

60%

50%

40%

30%

20% 17%

10%

0%
Yes No

Result: Most of the respondents say that private banks perform better than
public bank.

Q: 10 Do you want to suggest any improvements in AXIS bank?

1. New Branches
2. Extra charges
3. Fast Service

106
 4. Monthly Statement
5. Others

35%

30.00%
30%
27% 27.00%

25%

20%

15%

10.00%
10%
6%
5%

0%
New Extra Fast service Monthly others
Branches charges statements

Result: Equal number of person suggests opening new

branches and providing fast service and very less suggest
about extra charges and monthly charges.

107
 CHAPTER-9
FINDING

MAJOR FINDING OF THE STUDY

Based on the quantitative analysis the major findings of the study have
been highlighted below:

108
1. Most of Trusts, associations, bodies satisfied with saving
account, They do not want to invest in other products of
bank.
2. People think that Private banks are better than public
bank.
3. Most of the trusts accounts running satisfactory in AXIS
Bank.
4. Maximum people want to invest in axis bank
5. Bank provides faster service than other private and
public sector banks.
6. Most preferred type of product is saving account.

109
 CHAPTER-10
CONCLUSION

CONCLUSION
From the above study it can be concluded that AXIS Bank is growing
fast in comparison to other banks in terms of selling, customer
retention, customer satisfaction. And also axis bank’s share in TASC
segment is more than other banks. It can say that AXIS Bank provides

110
faster service than other banks. AXIS Bank successfully deals in other
products like MetLife insurance, Birla sunlife, Relience, etc. AXIS bank
have cooperative staff than other banks, bank provide many services
free of cost to their customers, which is not provided by other banks.

111
CHAPTER-11
RECOMMENDATIONS

RECOMMENDATIONS

1. Axis bank should open new branches in rural areas.

2. Extra charges should reduce.
3. Staff should more cooperative than before.
4. Force on selling other products like fixed deposit,
insurance policy to their customers.

112
113
CHAPTER-12
BIBLIOGRAPHY

BIBLIOGRAPHY

1. http://www.scribd.com/doc/13581494/AXIS-BANKWealth-

2. http://www.scribd.com/doc/6001731/Project-
ReportHDFC-

114
3. Sourced by “mutual fund navigator”, booklet.

4. http://www.axisbank.com/personal/loans/loans.asp

115
 CHAPTER-13
QUESTIONIARE

Name of the Organization……………………………………………

Type of Organization……………………………………….

Address……………………………………………………………

……………………………………………………………………….

116
………………………………………………………………………..

Q:1 How do you come to know about AXIS bank?

1. Marketing
2. Ad’s
3. Exhibition
4. Word of mouth
5. Others

Q:2 Which factors play an important role while opening an

account?

1. Ad’s
2. Special offer
3. Operational staff
4. Convincing power
5. Credibility of bank

Q:3 Which product do your organization use most?

1. Saving A/c
2. Current A/c
3. FD
4. Mutual Fund
5. Insurance policy

Q:4 Which facilities provides by AXIS Bank free of cost?

a. DD, Pay order fee

b. Monthly statements of A/C
c. Internet banking
d. Free mobile banking

117
Option: 1. All of these 2. A, b,c

3. None of these 4. Only D

Q:5 Do your org. have another account in another bank?

Ans: 1 Yes 2. No

If yes, which bank…………………………………..

Q:6 Do another bank provides these services faster than AXIS

Bank?

1. Yes 2. No

Q:7 Which of the direct banking channel you use the most?

1. ATM
2. Net banking
3. Phone banking
4. Mobile banking

Q:8 Did you facing any problem while maintain your account at
bank?

1. Yes 2. No

If Yes Specify Problem…………………………………………………

Q:9 Do you think private sector bank are better than public banks?

118
 1. Yes 2. No

Q:10 Do you want to suggest any improvements in AXIS Bank?

……………………………………………………………………………

……………………………………………………………………………..

……………………………………………………………………………..

119