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CHAPTER: 1
INTRODUCTION TO THE INDUSTRY
BANKING IN INDIA
Without a sound and effective banking system in India it cannot have a healthy
economy. The banking system of India should not only be hassle free but it should be
able to meet new challenges posed by the technology and any other external and
internal factors. For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach. It is no
longer confined to only metropolitans or cosmopolitans in India. In fact, Indian
banking system has reached even to the remote corners of the country. This is one of
the main reasons of India's growth process.

HISTORY:
The first bank in India, though conservative, was established in 1786. From 1786 till
today, the journey of Indian Banking System can be segregated into three distinct
phases. They are as mentioned below:
PHASE I - Early phase from 1786 to 1969 of Indian Banks
PHASE II - Nationalization of Indian Banks and up to 1991
PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan
and Bengal Bank.

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The East India Company established
Bank of Bengal (1809),
Bank of Bombay(1840) and
Bank of Madras (1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in 1920 and Imperial Bank of India
was established which started as private shareholders banks, mostly Europeans
shareholders. During the first phase the growth was very slow and banks also
experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of commercial
banks, the Government of India came up with The Banking Companies Act, 1949
which was later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers
for the supervision of banking in India as the Central Banking Authority. During those
days public has lesser confidence in the banks. As an aftermath deposit mobilization
was slow. Abreast of it the savings bank facility provided by the Postal department
was comparatively safer. Moreover, funds were largely given to the traders.

PHASE II:
Government took major steps in this Indian Banking Sector Reform after
independence. In 1955, it nationalized Imperial Bank of India with extensive banking
facilities on a large scale especially in rural and semi-urban areas. Second phase of
nationalization Indian Banking Sector Reform was carried out in 1980 with seven
more banks. This step brought 80% of the banking segment in India under
Government ownership.

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The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
1949: Enactment of Banking Regulation Act.
1955: Nationalization of State Bank of India.
1959: Nationalization of SBI subsidiaries.
1961: Insurance cover extended to deposits.
1969: Nationalization of 14 major banks.
1971: Creation of credit guarantee corporation.
1975: Creation of regional rural banks.
1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised
to approximately 800% in deposits and advances took a huge jump by
11,000%.Banking in the sunshine of Government ownership gave the public implicit
faith and immense confidence about the sustainability of these institutions.

PHASE III
This phase has introduced many more products and facilities in the banking sector in
its reforms measure. In 1991, under the chairmanship of M Narasimham, a committee
was set up by his name which worked for the liberalization of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being
put to give a satisfactory service to customers. Phone banking and net banking is
introduced. The entire system became more convenient and swift. The financial
system of India has shown a great deal of resilience. It is sheltered from any crisis
triggered by any external macroeconomics shock as other East Asian Countries
suffered. This is all due to a flexible exchange rate regime, the Foreign Reserves are
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high, the capital account is not yet fully convertible, and banks and their customers
have limited foreign exchange exposure.

BANKING STRUCTURE IN INDIA

Reserve bank of India
(central bank &
supreme monetary
authority of the country)
New Private
Banks (8)
Nationalized
banks (19)
Old Private Banks
(17)
State Bank of India
& its Associates (8)
Urban
Cooperative
Banks (53)
State Cooperative
Banks (31)
Regional
Rural Banks
(357)
Foreign
banks in
India (39)
Private
sector (25)
Public sector
(27)
Co-operatives bank
Scheduled banks
Commercial Banks
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1.2 NATIONALIZED BANKS IN INDIA
Banking System in India is dominated by nationalized banks. 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 of India (SBI) was 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
deposits over 200 crores

1.3 PRIVATE BANKS
All the banks in India were earlier private banks. They were founded in 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 to 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.

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INTRODUCTION TO THE ORGANIZATION

Traded as BSE: 532215
LSE: AXBC
NSE: AXISBANK
Industry Banking, Financial services
Founded 1994 (as UTI Bank)
Headquarters Mumbai, Maharashtra, India
Key people Dr. Sanjiv Mishra (Chairman)
Shikha Sharma (MD & CEO)
Products Credit cards, consumer banking,
corporate banking, finance and
insurance, investment banking, mortgage
loans, private banking, private equity,
wealth management
Revenue 340 billion (US$5.5 billion) (2012)
Operating
income
94 billion (US$1.5 billion) (2012)


Net income 52 billion (US$840 million) (2012
Total assets 3.4 trillion (US$55 billion) (2012)
Employees 42,420 (on 31-March-2014)

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COMPANY DESCRIPTION

AXIS BANK
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. Axis Bank was
jointly promoted 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.
Also with associates viz. National Insurance Company Ltd., the New India Assurance
Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

EVOLUTION:
UTI was established in 1964 by an Act of Parliament; neither did the Government of
India own it nor contributes any capital. The RBI was asked to contribute one-half of
its initial capital of Rs 5 crore, and given the mandate of running the UTI in the
interest of the unit-holders. The State Bank of India and the Life Insurance
Corporation contributed 15 per cent of the capital each, and the rest was contributed
by scheduled commercial banks which were not nationalized then. This kind of
structure for a unit trust is not found anywhere else in the world. Again, unlike other
unit trusts and mutual funds, the UTI was not created to earn profits.
In the course of nearly four decades of its existence, it (the UTI) has succeeded
phenomenally in achieving its objective and has the largest share anywhere in the
world of the domestic mutual fund industry. '' The emergence of a "foreign expert"
during the setting up of the UTI makes an interesting story. The announcement by the
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then Finance Minister that the Government of India was contemplating the
establishment of a unit trust caught the eye of Mr. George Woods, the then President
of the World Bank. Mr. Woods took a great deal of interest in the Indian financial
system, as he was one of the principal architects of the ICICI, in which his bank, First
Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through
Mr. B.K. Nehru, who was India's Executive Director on the World Bank, the services
of an expert. The Centre jumped at the offer, and asked the RBI to hold up the
finalization of the unit trust.
Proposals till the expert visited India. The only point Mr. Sullivan made was that the
provision to limit the ownership of units to individuals might result in unnecessarily
restricting the market for units. While making this point, he had in mind the practice
in the US, where small pension funds are an important class of customers for the unit
trusts. The Centre accepted the foreign expert's suggestion, and the necessary
amendments were made in the draft Bill. Thus, began corporate investment in the
UTI, which received a boost from the tax concession given by the government in the
1990-91 Budget. According to this concession, the dividends received by a company
from investments in other companies, including the UTI, were completely exempt
from corporate income tax, and provided the dividends declared by the investing
company were higher than the dividends received.
The result was a phenomenal increase in corporate investment which accounted for 57
per cent of the total capital under US-64 scheme. Because of high liquidity the
corporate sector used the UTI to park its liquid funds. This added to the volatility of
the UTI funds. The corporate lobby which perhaps subtly opposed the establishment
of the UTI in the public sector made use of it for its own benefits later. The
Government-RBI power game started with the finalization of the UTI charter itself.
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The RBI draft of the UTI charter stipulated that the Chairman will be nominated by it,
and one more nominee would be on the Board of Trustees. While finalizing the draft
Bill, the Centre changed this stipulation. The Chairman was to be nominated by the
Government, albeit in Consultation with RBI. Although the appointment was to be
made in consultation with the Reserve Bank, the Government could appoint a person
of its choice as Chairman even if the Bank did not approve of him.
Later on in 2002 the UTI was renamed to Axis Bank.

BUSINESS DESCRIPTION
The Bank's principal activities are to provide commercial banking services which
include merchant banking, direct finance, infrastructure finance, venture capital fund,
advisory, trusteeship, forex, treasury and other related financial services.

CORPORATE PROFILE
Axis Bank is the third largest private sector bank in India. Axis Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-
Corporates, SME, Agriculture and Retail Businesses.
The Bank has a large footprint of 1787 domestic branches (including extension
counters) and 10,363 ATMs spread across 1,139 centres in the country as on 31st
December 2012. The Bank also has 7 overseas branches / offices in Singapore, Hong
Kong, Shanghai, Colombo, Dubai, DIFC - Dubai and Abu Dhabi.
Axis Bank is one of the first new generation private sector banks to have begun
operations in 1994. The Bank was promoted in 1993, jointly by Specified
Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India),Life
Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC),
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National Insurance Company Ltd., The New India Assurance Company Ltd., The
Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The
shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity
established in 2003.
With a balance sheet size of Rs.2,85,628 crores as on 31st March 2012, Axis Bank is
ranked 9th amongst all Indian scheduled banks. Axis Bank has achieved consistent
growth and stable asset quality with a 5 year CAGR (2007-12) of 31% in Total
Assets, 30% in Total Deposits, 36% in Total Advances and 45% in Net Profit.
The Corporate Office of Axis Bank is located at Axis House Mumbai. Axis House has
received the Platinum rating awarded by the US Green Building Council for its
environment friendly facilities and reduction of carbon emission.

SUBSIDIARIES
The Bank has set up six wholly-owned subsidiaries:
Axis Securities and Sales Ltd. (Since renamed Axis Capital Ltd.)
Axis Private Equity Ltd.
Axis Trustee Services Ltd.
Axis Asset Management Company Ltd.
Axis Mutual Fund Trustee Ltd.
Axis U.K. Ltd.

CAPITAL STRUCTURE
The Bank has authorized share capital of Rs. 500 crores comprising 500,000,000
equity shares of Rs.10/- each. As on 31st March, 2012 the Bank has issued,
subscribed and paid-up equity capital of Rs. 413.20 crores, constituting 413,203,952
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shares of Rs. 10/- each. The Banks shares are listed on the National Stock Exchange
and the Bombay Stock Exchange. The GDRs issued by the Bank are listed on the
London Stock Exchange (LSE).

DISTRIBUTION NETWORK
The Bank has a network of 1787 domestic branches (including extension counters)
and 10,363 ATMs across the country, as on 31st December 2012, the network of Axis
Bank spreads across 1,139 cities and towns, enabling the Bank to reach out to a large
cross-section of customers with an array of products and services. The Banks
overseas network consists of 4 branches in Singapore, Hong Kong,
DIFC Dubai and Colombo and 3 Representative offices at Shanghai, Dubai, and
Abu Dhabi.






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Board of Directors
PERSON DESIGNATION
Dr. Sanjiv Misra Chairman
Shikha Sharma Managing Director & CEO
Som Mittal Director
Rohit Bhagat Director
Ireena Vittal Director
K. N. Prithviraj Director
V. R. Kaundinya Director
S. B. Mathur Director
Prasad Menon Director
Rabindranath Bhattacharyya Director
Prof. Samir K Barua Director
A.K. Dasgupta Director
Varadarajan Srinivasan ED, Corporate Banking
Somnath Sengupta ED, Corporate Center

Mission
Customer service and product innovation tuned to diverse needs of
individual and corporate clientele.
Continuous technology up gradating while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
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Customer Satisfaction through providing quality service effectively and
efficiently.

VISION AND VALUES

Vision 2015
To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology

Core Values
Customer Centricity
Ethics
Transparency
Teamwork
Ownership

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UNIT: AXIS BANK LIMITED
Jeevan Prakash Building
Sector 17-B
Chandigarh- 160017
Tel: 0172- 5062917

Registered Office
Trishul, 3
rd
Floor, Opp. Samartheshwar Temple, Law Garden,
Ellis Bridge,
Ahmedabad 380 006. Tel No. : 079 2640 9322 Fax No. : 079 2640 9321
Email: p.oza@axisbank.com/rajendra.swaminarayan@axisbank.com
Web site: www.axisbank.com

The Corporate Office
Axis Bank Limited,
Corporate Office,
Bombay Dyeing Mills Compound,
Pandurang Budhkar Marg,
Worli, Mumbai - 400 025
Tel: (022) 2425 2525



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CHAPTER: 2
7P FRAME WORK IN AXIS BANK
Once the marketing strategy is developed, there is a "Seven P Formula" that should be
used to continually evaluate and reevaluate your business activities. These seven are:
Product,
Price
Promotion
Place
Process
Positioning
People, as products, markets, customers and needs change rapidly, company must
continually revisit these seven Ps to make sure you're on track and achieving the
maximum results possible for you in today's marketplace.
PRODUCT
To begin with, develop the habit of looking at your product as though you were an
outside marketing consultant brought in to help your company decide whether or
not it's in the right business at this time. Ask critical questions such as, "Is the current
product or service, or mix of products and services, appropriate and suitable for the
market and the customers of today?"
Develop a habit of assessing your business honestly and asking,
Are these the right products or services for our customers today?
Compared to your competitors, is your product or service superior
in some significant way to anything else available? If so, what is it? If
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not, could you develop an area of superiority? Should you be offering
this product or service at all in the current market place?
Product variety, quality and its features.
Is there a market for the service on offer?
Is the market growing or shrinking?
Is the service new or established?
The competition prevailing in the market for the service on offer?
The USP of the product.

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Products and Services on offered by
AXIS Bank


Accounts:
Easy Access Accounts
Prime Savings Account
Salary Account
Womens Saving Account
Senior Privilege Account
Defense Salary Account
Trust & NGO Savings Account
Azzadi No frills
RFC (D) Account
Pension savings Account.

Deposits:
Fixed Deposits
Recurring deposits
Encash 24
Tax Saver Fixed Deposits





Loans:
Home loan
Personal loan
Loan Against Property
Loan Against Security
Car Loans
Study Loans
Two Wheeler Loan
Consumer Loan


Investments:
Online Trading
Mutual Funds
Fixed Income
Depository Services
E Depository Services


Insurance:
Health Insurance
Family Health
Health Guard
Hospital Cash


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PRICES
The second P in the formula is price. Develop the habit of continually examining and
reexamining the prices of the products and services you sell to make sure they're still
appropriate to the realities of the current market. Sometimes you need to lower your
prices. At other times, it may be appropriate to raise your prices. Many
companies have found that the profitability of certain products or services doesn't
justify the amount of effort and resources that go into producing them. By raising
their prices, they may lose a percentage of their customers, but the remaining
percentage generates a profit on every sale. Could this be appropriate for you?
Sometimes you need to change your terms and conditions of sale. Sometimes, by
spreading your price over a series of months or years, you can sell far more than you
are today, and the interest you can charge will more than make up for the delay
in cash receipts. Sometimes you can combine products and services together with
special offers and special promotions. Sometimes you can include free additional
items that cost you very little to produce but make your prices appear far more
attractive to your customers. In business, as in nature, whenever you experience
resistance or frustration in any part of your sales or marketing activities, be open to
revisiting that area. Be open to the possibility that your current pricing structure is not
ideal for the current market. Be open to the need to revise your prices, if necessary, to
remain competitive, to survive and thrive in a fast-changing market place.
AXIS bank has developed innovative strategies against its competitors with respect to
pricing by use of technology. The use of technology is the strategic differentiator for
AXIS bank that helps in cost minimization and creating efficiency for the customer.
The creation of centralized processing system linking all its branches has been a
major strategic move in this regard.
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The pricing mechanism and features of various HDFC products are as follows: Home
Loans:
Floating rates:
For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is
at9.25 per cent (9 per cent).
The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent
(9.50 per cent).
The interest rate for above ten years now stands at 10.25 per cent (10 per cent)

Account Statements Free
Phone banking and Net banking Free

PROMOTION
The third habit in marketing and sales is to think in terms of promotion all the time.
Promotion includes all the ways you tell your customers about your products
Description of Charges Regular Savings Account
Minimum Average Quarterly
Balance
Rs 5000 (urban),
Rs 2500(Semi Urban),
Rs 1000 (Rural branch),
Rs 500 (student account)
Charges on non-maintenance thereof Rs750 per quarter(urban & semi urban)
Rs 500 (Rural branch),
Rs 250 (student account)
Cheque Book, Pass Book Issuance Free

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or services and how you then market and sell to them. Small changes in the way you
promote and sell your products can lead to dramatic changes in your results. Even
small changes in your advertising can lead immediately to higher sales.
AXIS bank has devised an aggressive promotional strategy through its diversified
distribution mix which includes tied agencies and alternate channels like banks,
brokers, telemarketing, direct sales force, internet advertizing .
Some of the promotional activities undertaken are:
Cross Selling exercises
Organizing school level painting competitions in order to create awareness
about the environmental concerns and the wild life to promote kids advantage
account.
Wheels of fortune - This promo are targeted at all those customers who avail a
personal loan, car or a two wheeler loan. There will be lucky draw at the end
of the promo and the winners would get exotic prizes.
Personalized promos by sending mailers about various products on offer to all
those who come in contact during the mass promotion strategies.
The promotional strategies are carried out with an objective of positioning AXIS
bank as a one stop financial super market. The focus of the promotions are not just
confined to acquisition of new products but also extends to creating product
awareness, enhancing usage, and also provide value add to the customers for their
faith and loyalty. These promotions are scientifically designed based on data analysis
and data mining in order to have maximum impact on the target audience.


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PLACE
The fourth P in the marketing mix is the place where your product or service is
actually sold. You can sell your product in many different places. Some companies
use direct selling, sending their salespeople out to personally meet and talk with the
prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Many
companies use a combination of one or more of these methods. It refers to those
activities of the company that makes the product available to target consumers. It
includes geographic spread, distribution channels, dealer ships that facilitate network
establishment. Axis bank is widely spread in India and its core banking operations has
huge network
1281 branches and extension counters foreign offices in Singapore, Hong
Kong, Shanghai and Dubai
6270 ATMs reaches out to 34 states and union territories across the country
AXIS bank owns a wholly owned distribution channel with dedicated workforce,
thereby lowering the operating costs. It uses its network base to good effect to sell
customized products.

PROCESS
The fifth element in the marketing mix is the process. Develop the habit of standing
back and looking at every visual element in the process or service through the eyes of
a critical prospect. Remember, people from their first impression about you within the
first 30 seconds of seeing you or some element of your company. Small
improvements in the process or external appearance of your product or service can
often lead to completely different reactions from your customers. With regard to the
process of your company, your product or service, you should think in terms of
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everything that the customer sees from the first moment of contact with your
company all the way through the purchasing process.
Process refers to the way your product or service appears from the outside. Packaging
refers to your people and how they dress and groom. It refers to your offices, your
waiting rooms, your brochures, your correspondence and every single visual element
about your company. Everything counts. Everything helps or hurts. Everything affects
your customer's confidence about dealing with you.

POSITIONING
The next P is positioning, the habit of thinking continually about how you are
positioned in the hearts and minds of your customers.
How do people think and talk about you when you're not present?
How do people think and talk about your company?
What positioning do you have in your market, in terms of the specific words
people use when they describe you and your offerings to others?
AXIS Bank has positioned its branches in all the strategic position so that it is easily
accessible to maximum customer. It has also come up with some phone banking
centre and centralized collection and payment hub.

CENTRALISED PHONE BANKING CENTRE
The Banks Centralized Phone Banking Centre provides customers across the country
Access to the Bank over the phone, handling multiple queries in about 7000 calls per
day.


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CENTRALISED COLLECTION AND PAYMENT HUB
The Banks Centralized Collection and Payment Hub (CCPH) manages the entire
collection and payment activity under the Banks Cash Management Services (CMS)
across the country, handling on an average about Rs.5000 crores per month on the
collection front and aboutRs.1500 crores per month on the payment front.

PEOPLE
The final P of the marketing mix is people. Develop the habit of thinking in terms of
the people inside and outside of your business who are responsible for every element
of your sales and marketing strategy and activities. It's amazing how many
entrepreneurs and businesspeople will work extremely hard to think through every
element of the marketing strategy and the marketing mix, and then pay little attention
to the fact that every single decision and policy has to be carried out by a specific
person, in a specific way. Your ability to select, recruit, hire and retain the proper
people, with the skills and abilities to do the job you need to have done, is
more important than everything else put together. An essential ingredient to any
service provision is the use of appropriate staff and people. Recruiting the right staff
and training them appropriately in the delivery of service is essential if the
organization has to obtain competitive advantage. AXIS bank values its human
resources very highly and is on a constant endeavor to continuously develop its
human resources by laying strong emphasis on training development. It possesses a
highly motivated team of professionals and has the lowest employee turnover rate in
the industry.


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PROMOTIONAL STRATERGIES
In early 1950's most of the markets were choking with surplus products on offer,
defying the theory "the best quality will always sell". The emergence of Branding as a
value in offering has kept many organizations leaders, and in survival. Branding is
termed as a part of offering, created in the mind of customer and consumer of superior
values that he or she perceives and ready to pay for. The brand can be associated with
superior product, superior services, and superior sales after services, or easy access. In
today's era with increasing competition, is that not important enough to revisit Brand
as a marketing offering (Product or Service).

BRAND NAME
UTI has officially announced the change of its name to Axis Bank. The
awareness campaign titled UTI Bank is now Axis Bank; everything is the same
except the name, has been created by O&M and is the brainchild of Sumanto
Chattopadhyay.
The decision to re-brand the bank emanated from the need to move out of a scenario
of brand confusion that is created by several shareholder-unrelated entities using the
UTI brand. On the creative point of view, the change of name from UTI Bank to Axis
Bank is precisely just a name change. Everything else about the brand remains the
same. Axis is a strong name with an international aura to it. It is very much in keeping
with UTIs success story in the private banking arena.

MARKETING INITIATIVES
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On the marketing initiatives, a multimedia campaign was unfolded on August 1 that
will go on for the next few weeks. It seeks to reassure customers that the change of
name will in no way affect the services offered by the bank. On the thought process
the creative platform adopted for the name change is based primarily on twins --
siblings whose names are different, but are identical in every other way. This
campaign will run on
Television
Outdoor
Print
Radio and other 360-degree media.
Some interesting innovations are planned in the print medium. On radio, the name
change is being expressed in a slightly different manner, in keeping with the nature of
the medium.

SWOT ANALYSIS



STRENGTHS
Axis bank has been given the rating as one of top three positions in terms of
fastest growth in private sector banks
The bank has a network of 1,787 domestic branches and 10,363 ATMs
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The bank has its presence in 971 cities and towns
The banks financial positions grow at a rate of 20% every year which is a
major positive sign for any bank.
The bank has a good image among urban population.
The bank is registering a good growth.
A huge portfolio of product and services.
Decent penetration in the rural areas.
One of the largest private sector financer in India for Agriculture loans wiz
Retail Agriculture & Corporate Agriculture.
Knowledge of Indian market, High level of services, brand name.

WEAKNESSES
Gaps Majorly they concentrated in corporate, wholesale banking, treasury
services, retail banking
Foreign branches constitute only 8% of total assets
Lesser no. of branches compared to its competitors
The share rates of AXIS bank is constantly fluctuating in higher margins
which makes investors in an uncomfortable position most of the time
There are lots of financial product gaps in terms of performance as well as
reaching out to the customer.
Image of the bank still under the shadow of the UTI debacle.

OPPORTUNITIES
Acquisitions to fill gap
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No. of e-transactions increased from 0.7 million to around 2 million
Geographical expansion to rural market 80% of them have no access to
formal lending.
Going to foreign markets and exploring the new economies.
46% use informal lending channels.
24% unregulated money lenders.
Now number of branches increased to 1787.
Since its a new age banking there are lot of opportunities to have the advance
technicalities in banking solutions compared to existing major players.
The assets in their international operations are growing at a very faster pace
with a growth rate of 9%.
The concept of ETM (Everywhere teller machine) by AXIS Bank had a good
response in terms of attracting new customers in personal banking segment

THREATS
RBI allowed foreign banks to invest up to 74% in Indian banking
Government schemes are most often serviced only by govern banks like
SBI ,Indian Banks, Punjab National Bank etc
ICICI and HDFC are imposing strong threats in terms of their expansion in
customer base by their aggressive marketing strategies.
New banking licenses issued by the Reserve Bank Of India
Foreign banks
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Competitors 1. SBI
2. Punjab National Bank
3. ICICI
FACTS & FINDINGS

COMPARATIVE ANALYSIS OF SAVING AND SALARY
PRODUCTS OF AXIS BANK WITH HDFC AND ICICI BANK

ANALYSIS 1:
This analysis displays the division of sample according to the occupation. A total of
100 people were surveyed.



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ANALYSIS-2
How the customers find salary and savings account provided by Axis Bank?


ANALYSIS-3
Do customers have any other product of AXIS BANK other than savings and salary
account? (Like term deposit, mutual funds, insurance, home loan, car loan etc.)


ANALYSIS-4
Are the customers satisfied with their savings and salary account?

customers
very good
good
satisfactory
exellent
poor
THIRD PARTY PRODUCT
YES
NO
NO. OF PEOPLE
YES
NO
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_

ANALYSIS-5
Which bank is better in providing services regarding transactions?

_

ANALYSIS-6
Which is better bank in ease of access (both branch & ATM)?







BANKS
AXIS BANK
HDFC BANK
ICICI BANK
BANKS
AXIS
HDFC
ICICI
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ANALYSIS-7
Which banks accounts provide greater flexibility?



ANALYSIS-8
Are you satisfied with the relationship managers service provided by Axis Bank?



ANALYSIS-9
Which channel you use to access your account?

BANKS
AXIS
HDFC
ICICI
Relationship Manager
service
YES
NO
HOW YOU ACCESS YOR
ACCOUNT
DIRECT BRANCH
MOBILE BANKING
NET BANKING
PHONE BANKING
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ANALYSIS-10
Which are the areas of improvement?


FINDINGS
The bank has good relation with its customers. The customers are very
satisfied with the relationship manager service provided by Axis Bank.
The bank and its customers have a long term relationship. Axis Bank has the
tendency to retain its customers at any cost. They believe that the old customer
is more profitable instead of a new one thats why they try to maintain good
and long term relations to their customers.
Less number of customer use mobile banking or net banking.
The accounts of axis bank (both salary & saving) provide great flexibility in
terms of offering.
The accounts of these three banks dont have much difference in terms of
features but when it comes to service providing the Axis Bank gets an edge
because of their great customer services.
The axis bank has good number of branches and ATMs thats why it has
more ease of access.
The customers of Axis Bank are satisfied with their savings and salary
accounts.
AREAS OF IMPROVEMENT
UPDATES
SERVICE
TECHNOLOGY
RM
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CHAPTER: 3
CASE STUDY -Axis bank youth account launch
Background:
Established in 1993, Axis Bank was one of the few private banks that began its
operations in 1994. Axis bank is the third largest private sector bank and offers a wide
portfolio of financial services. The bank has a wide outreach with more than 1,900
branches and 11,000 ATMs present across the country. The Bank also has its
presence overseas with offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai,
and Abu Dhabi.
Challenge:
Axis Bank wanted to create a desire among the youth for a product they did not want,
in a category they did not relate to and for a brand they did not care about.
Considering that more than half of the countrys population consisted of youth, Axis
Bank set its mind to winning them over. But it was no easy task.
Axis Bank was planning to launch a savings account product for youngsters, with
features like customized card designs, an intuitive mobile app, deals and offers via
partner establishments.
Traditionally, banking has never targeted young consumers; it is something which is
associated with parents and family. Youngsters have little knowledge and no interest
in what a bank has to say. Their view of banks is formed by the numerous sales-calls,
trying to sell them loans/ cards/ insurance, which are usually of no interest to them.
They are usually detached from banking activities. Axis Bank had an uphill task
ahead.
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Whatever little consideration they had for the category, was reserved for brands like
HDFC Bank and ICICI Bank. Axis Bank as a brand was nowhere in the reckoning in
their minds.
Objective: With the YOUTH savings account launch, the initial business objective
was to achieve 100,000 new sign-ups for the Axis Bank Youth Account in six months
with a limited media investment of INR 60,00,000 (Cost in advertising per acquisition
= INR 60).

The Big Idea: Its All about YOU!
The idea was to create a product that would interact with the youth in their language:
Customized Debit Cards Though the concept of customized cards was not new but
taking a step ahead, Axis Bank made the debit card unique, the way youngsters
customize their phone-skins and tattoos, to make sure theirs was one-of-a-kind. With
Axis Bank YOUTH account, young consumers could do the same to their card.
Intuitive Mobile App For youngsters, a mobile phone is not just a communicating
device; it is a constant companion, entertainer and a lifestyle enabler. Considering the
affinity of youth towards mobile, Axis Bank created a special mobile app, which
facilitated banking transactions on smart-phones. It also allowed them to check their
account balance, recharge mobile phones, transfer money to a friends YOUTH
account without visiting a branch.
Pull money from parents linked Axis Bank Account With the YOUTH Account, the
young customers could pull money from their parents linked Axis Bank Account
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using the YOUTH Mobile App. Parents could set a monthly limit on the amount of
money their kid could pull out from their account.
Great offers on the YOUTH Debit Card The youth likes to shop smart. The YOUTH
Account offered them the best deals at their favorite hangout destinations that
included movies, apparel, mobile recharges.
Execution:
The youth today is always online. Among all media vehicles, internet is most popular
among them. It has approximately 43% reach in the given target group, which is
higher than that of radio and cinema. Social networking clearly stood out with 95% of
the youth using a social media site at least once every day. Given the reach of digital
among youth and the limited budgets at hand, Axis Bank decided to structure its
entire media strategy on the digital platform. The strategy revolved around the
following:
Introduce the product on DIGITAL
The product was first introduced to the Axis Bank fan base on Facebook.
It highlighted the key features of the new product in a manner that was different than
any of the existing communication being carried out by the bank both visually and
in terms of style of communicating. This phase lasted for a week before the other
elements of the campaign started to kick in.

Engage with customers on DIGITAL
Go beyond traditional media formats on digital Introduce gamification:
The product needed a campaign to communicate with the target group in an
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innovative way. To achieve this, Axis Bank came up with the idea and used
gamification in the financial services industry in India.
Creating an Information Destination the YOUTH Account Microsite
Axis Bank created a special micro site for the YOUTH account
(www.axisbank.com/YOU) which acted as the central repository of all information
on the product and the campaign. While it looked completely different from a regular
bank website, the brand felt it was essential to establish a connect with the audience.
Even the manner in which features of the account were communicated borrowed
from the language of the youth.
Pulling money online from their parents account became OMG (Online Money Gets
pulled);
Mobile fund transfers became WTF (Whoever Transfers Funds needs only mobile
numbers);
Card design gallery became GTG (Go To Gallery and design your card); and so on.
Create your YOUTH Card a Do-It-Yourself Facebook application
The Customize your card feature was brought to life with this Facebook app that
allowed YOU, the user, to design your own card. YOU could upload your favorite
picture, add effects and create your YOUTH Card design. And if YOU wanted that
card for real, all YOU had to do was walk in to the nearest Axis Bank branch with a
soft copy of the same and get the design on your YOUTH Account Debit Card.
Add on-ground legs to the campaign to strengthen engagement
Axis Bank partnered with Mood Indigo, a popular college festival that gave
youngsters a chance to experience the YOUTH Account. Special Wi-Fi enabled
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YOUTH Account zones were created.
The concept was further extended on ground by taking it to Sir JJ School of Arts in
Mumbai. Here, students from various disciplines were given the opportunity to
showcase their idea of the YOUTH Card. Over 150 students participated.
Promote the product on DIGITAL
Axis Bank continued to drive awareness through consistent communication on the
Axis Bank Facebook community and targeted mailers. The media plan delivered over
8.8 million ad impressions and over 76,000 clicks reaching out to a large segment of
the target group.
Results:
The campaign reached a total of over 2.2 million users on Facebook, and generated
over 30,000 likes. The sales target was exceeded by 44 percent and the 100,000
milestone was achieved in just three months.
RECENT NEWS ON AXIS BANK
Axis Bank to open 750 urban branches over next 2 years
Axis Bank has opened 250 branches in unbanked areas in FY 2014 as per the
regulatory requirement, which qualifies it to launch 750 more urban branches over the
next two fiscals.
Indias third largest private lender feels it is a misnomer to say that venturing deep
into the unbanked areas is a pain point, and asserted that this business will be
profitable in a few years.
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The RBI said you could front-load your 25 per cent branches in unbanked areas and
carry forward the benefit over the next three years. We have already done so...This
year, we would have done about 300 unbanked branches, Axis Bank Retail Banking
President Rajiv Anand told PTI. This gives the city-based bank the opportunity to
have over 750 branches in the better-performing areas in tier-I, II and III centers.
As part of its financial inclusion drive, RBI had in May 2013 allowed banks to front-
load their 25 per cent mandatory new branches in unbanked areas and carry forward
to open the remaining 75 per cent new branches in urban areas over the next three
years.
Axis Bank has around 2,300 branches, 52 per cent of them in the semi-urban, rural
and unbanked areas.
Asked about the financial implications of more rural branches, Anand said that this
will not hurt key ratios as the branches are small and operate at lower costs.
This year, we would have done about 300 unbanked branches. They are relatively
low-cost. The bank feels there is a big opportunity in rural areas and it is looking at
it beyond garnering deposits.
(This article was published on March 30, 2014)




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CHAPTER: 4
CONCLUSION
In this study I found that the bond of Axis Bank with its customers is very strong,
because Axis Bank mainly focuses on retaining their customers.
This study finds that however Axis Bank is not the leading private sector bank but its
vast range of products and availability of options make it one of the better banks in
India.
Axis Bank is one of the few clean (in terms of asset book), rapidly growing,
profitable, & competitive private-sector banks in India; thus it will be a major
beneficiary of the favorable banking environment. The Indian banking sector is in a
sweet spot: consumer and corporate lending is strong, asset quality is improving and
fee-income opportunities are growing. We expect this favorable environment to
continue in the medium term but recognize that a key challenge for banks will be
funding growth. Looking at its profile, I believe Axis Bank stands to gain
disproportionately from existing opportunities in the sector. The bank has strong
technology & products, an expanding distribution franchise, adequate scale, a strong
service culture, and management enterprise -features that should help it stay ahead of
the dominant government banks to win market share.
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, I think Axis Bank is very well positioned to
rapidly reap the benefits of the expanded reach by scaling up its retail foray.

[40]

RECOMMENDATION & SUGGESTIONS
Mostly service class persons prefer the axis bank in the comparison of
business and students and other class persons thus it needs to promote its
product and services that are offered mainly for the business class people and
students. Because these two class forms major users of the banking services.
Axis bank is normally not using properly for the current account so its
popularity ratio is quite down. This bank normally using for the long term
planning like saving and FD.
This bank is not investing more into the marketing sector so I will suggest that
some of the part of income it investing in the advertising and marketing sector.
Into the comparison of other bank its performance is quite good but not an
effective so this may be doing the rates were down with some other facilities.
The bank should focus on the semi urban and rural market because these
markets are very good opportunity for someone like Axis Bank which is in
growing face. Without expanding in these markets Axis Bank cannot be a
leading bank so they should focus on this market.
The bank should focus on mass banking in order to increase their market
share. They should launch such products which would be within the reach of
the lower middle class
The bank should pay more attention on giving updates and should increase the
level of service providing because the competitors of axis are better in this
area.
The bank should try to increase the use of technology like mobile and net
banking among its customers.
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BIBLIOGRAPHY

BOOKS:-
Philip Kotlers Marketing Management. Twelfth edition

WEBSITES:-
http://pitchonnet.com/blog/2014/02/06/case-study-axis-banks-
youth-account-launch/
www.axisbank.com
http://en.wikipedia.org/wiki/Axis_Bank
http://economictimes.indiatimes.com/axisbankltd/infocompanyhist
ory/companyid-9175.cms
http://www.thehindubusinessline.com/companies/axis-bank-to-
open-750-urban-branches-over-next-2-
years/article5850960.ece?ref=relatedNews