A

PROJECT REPORT
ON
REATAIL BANKING OF AXIS BANK
SUBMITTED BY
HENA AMBER
(PGDFS)
TO
UNIVERSITY OF PUNE, PUNE
IN PARTIAL FULFILLMENT OF
REQUIREMENT
FOR THE AWARD OF DEGREE OF
MASTER OF BUSINESS ADMINISTRATION

SINHGAD BUSINESS SCHOOL,

ERANDAWANE, PUNE.
 DECLARATION

I, the undersigned, hereby declare that the Project Report entitled “RETAIL

BANKING OF AXIS BANK” written and submitted by me to the

University of Pune, Pune in partial fulfilment of the requirements for the

award of degree of Master of Business Administration under the guidance of

MAM “RACHANA PHADAKE” is my original work and the conclusions

drawn therein are based on the material collected by myself.

Place : Pune

Date: 15th MARCH’ 10. HENA AMBER(PGDFS)

 GUIDE’S CERTIFICATE

This is to certify that the Project Report entitled “RETAIL BANKING OF

AXIS BANK” which is being submitted herewith for the award of the
degree of Master of Business Administration of University of Pune, Pune is
the result of the original research work completed by “MISS HENA
AMBER” under my supervision and guidance and to the best of my
knowledge and belief the work embodied in this Project Report has not
formed earlier the basis for the award of any degree or similar title of this or
any other University or examining body.

Place : Pune
Date: 15th March’10 NAME: RACHANA PHADAKE
 EXECUTIVE SUMMARY
The project titled “ RETAIL BANKING OF AXIS BANK” was basically a
research based project. The main motive behind doing this project is to
 know the industry,
 have an overview of retail banking,
 know the different products available for retail banking by the bank,
current situation and problems and their solutions.

I have recommended :
 Concentrate on increasing working capital ratio as it is decreasing
year by year.
 Company should increase advertisement tools.
 Satisfy existing customers.
 Create awareness about different products of retail banking.

Research methodology used for this project is mainly observational method.

The analysis is done by simple table format analysis for simplicity of
understanding.
The project is done in various phases:
First phase: gathering information related to project.
Second phase: analysis of information gathered.
Third phase: findings and solutions.
 TABLE OF CONTENT

S NO. PARTICULARS PAGE NO.

1 Industry Profile 01-05
2 Company Profile 06-08
3 Review of 09-35
Literature
4 Objective of 36
Research
5 Research 37
Methodology
6 Analysis and 38-44
Interpretation
7 Findings 45
8 Recommendations 46
9 Limitation 47
10 Biblography 48

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 "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.

Early 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 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 Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860,
and another in Bombay in 1862; branches in Madras and Pondichery, then a
French colony, followed. Calcutta was the most active trading port in India,
mainly due to the trade of the British Empire, and so became a banking
center.

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 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

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 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 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 the
preindependence era to cater to the banking needs of the people. But after
ationalization 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
 Catholic Syrian Bank
 Centurion Bank of Punjab
 Dhanalakshmi 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
 UTI Bank
 YES Bank
 AXIS BANK

Axis bank was the first of the new banks to have begun its operations in
1994, after the government of India allowed new private banks to be
established. The bank was promoted jointly by the Administrator of the
specified undertaking of the Unit Trust of India (UTI-I) , Life Corporation of
India ( LIC), and General Insurance Corporation of India (GIC) and other
four PSU insurance companies, i.e. National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance Company Ltd.
and United India Insurance Company Ltd.

The Bank today is capitalized to the extent of Rs. 403.63 crores with the
public holding (other than promoters and GDRs) at 53.72%.

The Bank's Registered Office is at Ahmedabad and its Central Office is

located at Mumbai. The Bank has a very wide network of more than 896
branches and Extension Counters (as on 31st December 2009). The Bank
has a network of over 4055 ATMs (as on 31st December 2009) providing 24
hrs a day banking convenience to its customers. This is one of the largest
ATM networks in the country.
The banks have strengths in both retail and corporate banking and is
committed to adopting the best industry practices internationally in order to
achieve excellence.
Promoters

Axis Bank Ltd. has been promoted by the largest and the best Financial
Institution of the country, UTI. 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 24.09%

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.
Board of Directors

The members of the Board are :

Dr. Adarsh Kishore Non-Executive Chairman

Smt. Shikha Sharma Managing Director & CEO

Shri M. M. Agrawal Deputy Managing Director

Shri N.C. Singhal Director

Shri J.R. Varma Director

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

RETAIL BANKING
 AN INTRODUCTION

“Retail banking is typical mass-market banking where individual

customers use local branches of larger commercial banks. Services
offered include: savings and checking accounts, mortgages, personal
loans, debit cards, credit cards, and so”

Retail banking is, however, quite broad in nature - it refers to the dealing of
commercial banks with individual customers, both on liabilities and assets
sides of the balance sheet. Fixed, current / savings accounts on the liabilities
side; and mortgages, loans (e.g., personal, housing, auto, and educational) on
the assets side, are the more important of the products offered by banks.
Related ancillary services include credit cards, or depository services. Retail
banking refers to provision of banking services to individuals and small
business where the financial institutions are dealing with large number of
low value transactions. This is in contrast to wholesale banking where the
customers are large, often multinational companies, governments and
government enterprise, and the financial institution deal in small numbers of
high value transactions. The concept is not new to banks but is now viewed
as an important and attractive market segment that offers opportunities for
growth and profits. Retail banking and retail lending are often used as
synonyms but in fact, the later is just the part of retail banking. In retail
banking all the needs of individual customers are taken care of in a well-
integrated manner.

Today’s retail banking sector is characterized by three basic

characteristics:
 Multiple products (deposits, credit cards, insurance, investments
and securities).
 Multiple channels of distribution (call center, branch, internet).
 Multiple customer groups (consumer, small business, and
corporate).

Scope for Retail Banking in India

 All round increase in economic activity.

 Increase in the purchasing power. The rural areas have the large
purchasing power at their disposal and this is an opportunity to
market Retail Banking.
 India has 200 million households and 400 million middleclass
population more than 90% of the savings come from the house hold
sector. Falling interest rates have resulted in a shift. “Now People
Want To Save Less And Spend More.”
 Nuclear family concept is gaining much importance which may lead
to large savings, large number of banking services to be provided are
day-by-day increasing.
 Tax benefits are available for example in case of housing loans the
borrower can avail tax benefits for the loan repayment and the
interest charged for the loan.

Challenges to Retail Banking in India

 The issue of money laundering is very important in retail banking.
This compels all the banks to consider seriously all the documents
which they accept while approving the loans.
 The issue of outsourcing has become very important in recent past
because various core activities such as hardware and software
maintenance, entire ATM set up and operation (including cash,
refilling) etc., are being outsourced by Indian banks.
 Banks are expected to take utmost care to retain the ongoing trust
of the public.
 Customer service should be at the end all in retail banking.
Someone has rightly said, “It takes months to find a good customer
but only seconds to lose one.” Thus, strategy of Knowing Your
Customer (KYC) is important. So the banks are required to adopt
innovative strategies to meet customer’s needs and requirements
in terms of services/products etc.
 The dependency on technology has brought IT departments’
additional responsibilities and challenges in managing, maintaining
and optimizing the performance of retail banking networks. It is
equally important that banks should maintain security to the
advance level to keep the faith of the customer.
 The efficiency of operations would provide the competitive edge for
the success in retail banking in coming years.
 The customer retention is of paramount important for the
profitability if retail banking business, so banks need to retain their
customer in order to increase the market share.
  One of the crucial impediments for the growth of this sector is the
acute shortage of manpower talent of this specific nature, a
modern banking professional, for a modern banking sector.
If all these challenges are faced by the banks with utmost care and
deliberation, the retail banking is expected to play a very important role in
coming years, as in case of other nations.

RETAIL BANKING OF AXIS BANK

AN OVERVIEW OF THE PRODUCT

1. ACCOUNTS

Easy Access Savings Account

Possessing a range of unmatched features, it has been devised to better suit
the convenience of eclectic client base of bank.
Features:
 At Par-cheque.
 ATM Facility.
 Tele-banking.
 iConnect i.e. Internet Banking.
 Mobile Banking.
 Free Anywhere Banking facility.
 Quarterly statement of account.
 Free Monthly E-Statement.
One can avail of all these services with a minimum quarterly average
balance of Rs5,000 in metro or urban centers, and Rs2,500 in semi urban
centers and Rs1,000 in rural centres.

Senior Privilege
Because life begins at sixty
Eligibility: Savings Bank customers with 60 years of age or above as on the
date of account opening.
Features:
 Dedicated Relationship Managers.
 Free At-Par Cheque book.
 Free International VISA Debit Cards for primary and joint account
holders.
 Free Monthly Statement of Accounts and Free Passbook.
 Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank
Branches.
 Free Inward Remittances.
 Free Outward Remittances once a year.
 Faster credits to foreign cheques providing you prompt availability of
funds remitted by your near and dear ones abroad.
 Cheque pickup and Cash delivery services.
 Anywhere Banking.
 Telebanking.
 Free Mobile Banking.
 iConnect.
 Customised Loan Offerings.
  Complimentary Financial Planning.
 Silver Health - Medical Insurance for Senior Citizens.

Smart Privilege Account

(For the woman of today)

In today's busy world it's tough being a working woman. Right from
shuttling between a job and family to taking care of her finances she has to
be on her heels all the time. Keeping this ideal in mind, Axis Bank have
designed a savings account best suited for the woman of today.
Features:
 Jewellery Insurance on Debit Card.
 Dedicated Relationship Manager.
 Zero Balance Minor Account.
 Round-the-Clock access through ATMs.
 Anywhere Banking.
 At-par cheque facility.
 Demand Draft issued.
 Monthly Account Statement.
 Additional discounts on loans.
 Financial Advisory Services.
 Discount on Retail Purchases.

Trust/NGO Savings Account

Thoughtful banking for people who spend their lives thinking of others
Axis Bank's Trust Account is an effort to offer thoughtful banking for people
who spend their lives thinking of others. It is a complete banking solution
for Trusts, Associations, Societies, Government Bodies, Section 25
companies and NGOs, so that the organisations can devote all of their time
to their noble motivations.
Features:

 A Savings Account for Trust with a concessional Average Quarterly.

 A multi-city at-par cheque facility with no limit on clearing payments
at centers across the country wherever bank are present.
 Free Anywhere Banking across all Branches and Extension Counters
and over all ATMs.
 Free Demand Drafts or Pay Orders as and when required to remit
funds.
 Free collection of cheques at outstation locations.
 Monthly Statement of Account delivered at doorstep.
 Facility for collecting donations in account through our network of
Branches and Extension Counters across the country, as well as
through iConnect - Internet Banking facility.
 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.

Zero Balance Savings Account

Save at Zero
Saving Money is now easier
Features:

 No Average Quarterly Balance requirement.

 Free International Debit Card with an Accidental Insurance cover up
to Rs2 lakhs* (charges for the primary holder are waived).
 Free mobile banking facility.
 Access through more than 675 branches and more than 2800 ATMs.
 At-Par cheque facility with the clearing limit of Rs 50,000.
 24x7 Telebanking & Internet banking.
 Free quarterly statements.

Salary Power
The complete financial solution
Salary Savings Account is not only a convenient way to
manage salaries (across various centres, through our
centralised database), but also provide employees with a
range of value added benefits.
Features:
 Anywhere banking.
 Cheque books.
 International ATM-cum-DEBIT cards.
 Computerised statements.
 Joint Account facility.
 Demand drafts.
  Overdrafts facility.
 Outstation cheques.
 Demat accounts.
 Financial advisory services.
 Power loans.
 Optional Gold Debit Card.
 Credit cards.
 Online Trading.
 Built-in-Insurance schemes.
 Internet Banking.
 Telebanking.
 Mobilebanking.
 Fund Transfer.
 Meal Card.
 Gift Card.

Power Salute
Salute to the defence forces
Defence Salary Account from Axis Bank is a product designed to show
appreciation to defence force work.
Features:
 At-par Cheque Facility.
 Additional Debit Card.
 Financial Advisory Services.
 All the features of SALARY POWER SAVING ACCOUNT.
2. DEPOSITS
Fixed Deposits
Safety, Security and Growth

Axis Bank offers simple reinvestment Fixed Deposits (at very competitive
interest rates), which can be opened with a minimum investment of
Rs 10,000. One can make additions to deposit in multiples of Rs 1,000 each.
The tenure of your deposit must be a minimum of 6 months.

Different types of deposits are:

a. Reinvestment Deposits:

Here the interest accrued to deposit at the end of each quarter is invested
along with the principal. The tenure of deposit must be a minimum of 6
months. At the end of the quarter, the interest and the principal are both
rolled over, and the interest is calculated on the total sum. Income tax is
deducted at source.

b. Automatic Rollover:
Here there is facility for automatic rollovers on maturity (for both the
principal and interest). One can select this option in the Account Opening
Document (AOD). The options available are:
* Rollover only Principal:
Only the principal amount will be rolled over. The interest will be either
credited to designated account or paid out.
* Rollover Principal and Interest accrued in Reinvestment Deposit:
This will rollover both the deposit and the interest accrued for the same
tenure at the interest rate applicable on the maturity date.
Withdrawals :
All encashments or withdrawals of Fixed Deposits can only be made at the
branch where the deposit was booked.

Recurring Deposits
Power of compounding
Features :
 Recurring deposits are accepted in equal monthly installments of
minimum Rs 1,000 and above in multiples of Rs 500 thereafter.
 Transfer of Accounts
 The amount of installment once fixed, cannot be changed .
 Installment for any calendar month is to be paid on or before the last
working day of the month. Where there is delay in payment of
installment, one can regularise the account by paying the defaulted
installment together with a penalty (at present it is @ PLR plus 4 %
for the period of delay).Fraction of a month will be treated as full
month for the purpose of calculating the penalty.

Encash 24
The Encash 24 (Flexi Deposit) gives the liquidity of a Savings Account
coupled with high earnings of a Fixed Deposit. This is achieved by creating
a Fixed Deposit linked to Savings Account providing following unique
facilities:
 Maximum Returns:
 As soon as the balance in Savings Account crosses over Rs 25,000,
the excess, in multiples of Rs 10,000 will be transferred automatically to a
higher interest earning Fixed Deposit Account. The maturity of fixed or term
deposits formed as a result of transfer of money from the Savings Bank
account will be for a maximum period of 181 days and the interest will be
calculated on simple interest rate basis.
 Maximum Liquidity:
The money parked in Fixed Deposits as a result of the above
mentioned sweep out from your Savings account can be easily accessed by
issuing a cheque, withdrawing through ATM etc. This amount is
automatically reverse swept from the most recently formed Fixed Deposit in
units of Rs 5,000 to the Savings account whenever the balance in your
Savings account falls below Rs 25,000. The amount broken from Fixed
Deposit will earn interest rates at the applicable rate for the period that the
deposit was held with the Bank. The remaining amount of Fixed Deposit
will continue to earn the contracted rate of interest.
 Auto Renewal:
On maturity of linked Fixed Deposit, the Bank will automatically renew it
for a maximum period of 181 days.

Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to
Bank Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961
vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.
The salient points of the scheme notification are; (a) Fixed tenure without
premature withdrawal. (b) Year is defined as a financial year. (c) Amount
limited to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue
a Fixed Deposit Receipt that shall be the basis of claiming tax benefit. (e)
Term deposit under this scheme cannot be pledged to secure a loan.

3. LOANS

Personal Loan
Quick and easy personal loans
Features:
 Loans are available from Rs 1 lac to Rs 20 lacs.
 Repayment tenures from 12 to 60 months.
 Attractive interest rates.
 A balance transfer facility available for those who want to retire any
higher cost debt.
 Loans available against repayment track record of any existing auto,
personal or home loan.
 Zero balance SB account facility for personal loan customers.

Home Loan
Quick and easy home loans
Features:
 Attractive interest rates.
 Balance Transfer facility.
 Doorstep service.
  Nil Prepayment charges.

Car Loan
Quick and easy car loans
Features:
 Loan value calculated as per the on-road-price of the vehicle.
 Attractive interest rates.
 LTV of upto 85% of the on-road-price on selected models.
 Loans available for salaried and self employed individuals,
proprietorships and partnership firms.
 Special schemes for Axis Bank Salary accountholders.
 No income proof schemes available.
 Loans offered from Rs. 1 lac onwards.
 Loans tenure from 1 year to 7 years.
Study Loan
High Study Loan
Higher education within your reach
AAxis Bank's Study Power aims to provide financial support to deserving
students for pursuing higher professional or technical education in India and
abroad. The loan would be provided to students who have obtained
admission to career-oriented courses eg, medicine, engineering, management
etc., either at the graduate or post-graduate level.

Quantum of Loan:

The quantum of finance under the scheme is capped at Rs 10.00 lacs for
studies in India and Rs 20.00 lacs for studies abroad, which would cover
tuition fees, hostel charges (if any), cost of books, etc. The minimum amount
of loan would be Rs 50,000.

Margin:
No margin for loans upto Rs 4 lacs. For loans above Rs 4 lacs, 5% margin
for studies within India and 15% for higher studies overseas.

Consumer Power

Easy and affordable consumer loans

Axis Bank's Consumer Power scheme will help you acquire the consumer
durables you need. A new TV, a washing machine, a refrigerator or an AC...
the possibilities are endless.

Terms :

One can apply for as little as Rs 25,000, or as much as Rs 2 lacs. The

maximum loan amount cannot exceed 85% of the cost of the durable, or 12
times your net monthly salary (or equivalent of net annual income for self-
employed persons), whichever is lower. You are charged a competitive
interest rate, and you can choose to repay your loan in 12, 24 or 36 Equated
Monthly Installments. If you are a salaried employee, your Equated Monthly
Installments will be collected directly from your employer under the check-
off facility. For others, post-dated cheques will be collected

Loan Against Shares

 Individuals are only eligible to apply.

  Overdraft facility against single and combination of scrips.

 Interest charged on actual amount utilised - no EMI or post dated

cheques required.

 Shares can be pledged from any Depository Partcipant across the

country.

Asset Power (Loan Against Property)

Your property now equals ready cash

Features:

 Attractive interest rates .

 Balance Transfer facility available with additional finance.

 Doorstep service.

 You can avail the following four products under Asset Power.

 Loan against property – Residential,

 Loan against property – Commercial,

 Loan for purchase of commercial property,

 Take-over of existing loan with additional refinance (Balance

Transfer).

 Lease Rental Discounting (LRD).

Loan Against Security

Unlock your financial assets

 Overdraft against mutual funds.

 Individuals are only eligible to apply.

 Maximum limit upto 50% of valuation.

 Overdraft facility against more than 300 schemes.

 Overdraft tenure of 12 months.

 Loan or overdraft against NSC or KVP or LIC policy.

 Option to either borrow lump sum or withdraw as and when required.

4. CARDS

CREDIT CARDS
Platinum Advantage Credit Card

Platinum Privileges:

 Highest Level of Security:

The Platinum Chip offers clear authentication of credit payments combined

with easy fraud detection. The chip cannot be duplicated, ruling out
counterfeiting and skimming. This makes your card safer and secure than
any other card in India.

 25% cash back on Movie ticket bookings.

  5% cash back on Dining at all restaurants.

 5% Savings on Fuel Spends.

 Comprehensive Insurance Cover.

Easy Platinum/Gold Credit Card

A Credit Card for every wallet!

Benefits on your Easy Platinum/Gold Credit Card:

 Guaranteed Approval.

 Axis Bank Easy Credit Card is 100% assured.

 Easy Documentation.

 Lower Interest Rate of 1.95% p.m

 Fast Delivery of the Card

 Credit Limit as high/ low as you want

 Higher Cash Withdrawal from Day One

 *Free credit period of up to 50 days

 Fuel Surcharge waiver of 2.5% at all Petrol Pumps.

Silver Credit Card

Sheer Surprises coming your way

Exclusive Benefits:
  Plus point Rewards.

 E-Shops Cards.

 Comprehensive Insurance Cover.

 Mobile Alerts.

 Global Acceptance.

 Interest Free Period.

 Revolve Period.

 Balance Transfer.

 Cash Advance Facility.

 Dial A Draft.

 Auto Debit Facility.

 EMI Facility.

E- SHOP CARDS
MAKING YOUR ONLINE SHOPPING MORE SECURE

A virtual credit card that allows you to shop online securely without
divulging your credit card details.

CORPORATE CREDIT CARDS

AN EXPENSE MANAGEMENT SOLOTION
Axis Bank's Corporate Card offers the best travel and expense management
solution to corporates with global acceptance and customized solutions
powered by VISA.

Axis Bank Corporate Card comes with two liability options:

1. Corporate Liability: Corporate Liability Corporate Cards are an effective
way of managing travel policies and negotiating preferential terms with key
suppliers. These cards are issued after credit assessment of the corporate;
who in turn defines the limit on individual cards. The corporate bears the
liability for the entire outstanding amount on the cards. The payment is
made directly to the Bank once a month instead of multiple payments to
individual employees/suppliers. Exposure risk of the Corporate is mitigated
by the fact that the card is a charge card wherein the full payment is to be
made at the end of each month with no revolve allowed on the outstanding.

2. Individual Liability: Individual Liability Cards based on the same lines as

the personal Credit Cards are an effective way for the employees to keep
their personal and official expenses separate while at the same time
simplifying the reimbursement process. Individual employees are assessed
for assignment of credit limit on each card and are solely liable for the
payment of spends done on the card.

DEBIT CARDS

Priority Platinum Chip Debit Card

The benefits of Priority Platinum Chip Debit Card includes:

  Exclusively Designed Welcome Kit.

 Free Unlimited Domestic and International ATM Usage.

 Higher Transaction Limits.

 Chip-enabled Card Providing Added Security.

 Enhanced Insurance Coverage.

 Special Offers.

 Rewards Programme.

 24-Hour Emergency Helpline.

 Customer Service Contact.

Priority Debit Card

The Priority Banking Debit Card is an International Visa Debit card meant
exclusively for Priority Banking customers. It comes with a host of
enhanced benefits, which include:

 Free usage at all Visa ATMs.

 Zero Fuel Surcharge.

 Instant Identification.

 Higher Transaction Limits.

  No Issuance Charges.

 Free Add-on Card.

 Enhanced Insurance Coverage.

Classic Debit Card

Easy access to your account, no matter where you are

A deposit access program, the Debit Card redefines convenience. Apart from
being an ATM (Automated Teller Machine) Card used for withdrawing
cash, it also enables you to shop and make cashless purchases. You can use
the card to make payments at shops, department stores, restaurants, petrol
pumps and many more outlets in India and overseas.

Gold Debit Card

Earn while you shop

The benefits of Axis Bank Gold Debit Card include :

 Flexibility of usage.
 Worldwide reach.
 Reward program.
 Zero Fuel Surcharge.
 Special offers and discounts at merchant establishments on card
usage.
 Additional safety and enhanced insurance.
 Enhanced limits for cash withdrawal.
 24-Hour Emergency Helpline.
 Customer Service Contact.
Gold Plus Debit Card
Exclusive card for exclusive you

The benefits of Axis Bank Gold Plus Debit Card include:

 Instant identification.
 Flexibility of usage.
 Worldwide reach.
 Zero Fuel Surcharge.
 Special offers and discounts on card usage.
 Access to Airport Lounges.
 Reward program.
 Additional safety and enhanced insurance.
 Enhanced limits for cash withdrawal.
 24-hour Emergency Helpline.
 Customer Service Contact.

Business Gold Debit Card

Exclusive value deals for great business savings

The benefits of Axis Bank Business Gold Debit Card include:

 Instant identification.

 Flexibility of usage.

 Worldwide reach.

 Zero Fuel Surcharge.

  Special offers and discounts on card usage.

 Reward program.

 Additional safety and enhanced insurance.

 Enhanced limits for cash withdrawal.

 24-hour customer service.

 Customer Service Contact.

5. INVESTMENTS
Mohur Gold
Axis Bank brings to you Mohur Gold coins/bars in the purest form! Made in
Switzerland, Mohur Gold coins/bars carry the Assay certification of being
24 carat, 99.99% pure! It comes to you in a specialized packaging that is
tamper proof so that its purity is preserved. Available in 5 gms, 8 gms, 10
gms, 20 gms & 50 gms, it is on offer in select branches of Axis Bank.

Online Trading
Investing and trading @ click of a mouse

Axis Bank in alliance with Geojit Financial Services now offers you an
Online Trading Account. Trade from the comfort of your home or office
either through the Internet or the Phone. This service provides you with an
integrated Savings Bank Account, Demat Account and an Online Trading
Account to give you a convenient and paper free trading experience.

Mutual Funds
Invest smartly

Facility provided:

 As Axis Bank Financial Advisory team, we adopt a strong research

driven recommendation model to help you choose the best funds
based on qualitative and quantitative parameters.

 Apart from this, a dedicated Relationship Manager can also be

assigned to you to ensure that your investment requirements are
taken care of, smoothly and efficiently. Our advisors understand
your profile and lead you through a structured financial planning
process to devise financial solutions best suited to you. The
advisors will also help you choose the right investment products in
line with your 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.

Demat Account
Axis Bank is a registered member (Depository Participant) of NSDL. In this
system, physical security holdings are converted into electronic (or in other
words, dematerialized) holdings. Axis Bank has been enrolled as a
Depository Participant by the NSDL - India's first depository. You can avail
of all the depository-related services by just opening an account with NSDL
through Axis Bank.

Tax Saving Investments

When investing for tax, invest in the right way
Instrument Benefit
Life One should consider a life
Insurance insurance cover, especially if
there are dependents and/or
there will be an additional
member in the family soon.
One should look at an
insurance cover, which could
initially be a basic term cover
(which would be available at a
lower premium rate,
considering the age). Post-
marriage, one can go in for
another policy that can
provide for the enhanced
requirements of family.
Child Plans Child Plans are instrumental in
building a corpus for the
child's future needs like
education, marriage, setting up
a career, etc.
Health Health insurance is extremely
Insurance important for all individuals to
Plan protect themselves from the
financial burden of a medical
emergency.
Section under which tax
benefit is eligible
Amount paid upto Rs.1,00,000
as premium of life insurance
policy is eligible for deduction
under Section 80(C). Proceeds
or withdrawals from life
insurance policies are exempt
from tax under Section 10
(10D). Maximum possible
deduction available is
Rs.30,990
Amount paid upto Rs.1,00,000
as premium of life insurance
policy is eligible for deduction
under Section 80(C). Proceeds
or withdrawals from life
insurance policies are exempt
from tax under Section 10
(10D). Maximum possible
deduction available is
Rs.30,990
Amount paid upto Rs.15,000
as premium of health
insurance policy is deductible
under Section 80(D). An
additional deduction of
Rs.15,000/- is allowed if
premium is paid for medical
insurance of parents. If parents
are senior citizens, then the
deduction applicable is
Rs.20,000. So maximum
 possible deduction available is
Rs. 35,000.
Mutual One can opt for an equity- Investments made under
Fund linked savings scheme for the Equity-Linked Saving
Equity equity portion. Schemes are eligible for
Linked deductions under Section
Saving 80(C). The limit under this
Scheme section is Rs.1,00,000. The
maximum possible deduction
available is Rs.30,990.
Mutual Investments in diversified
Fund equity schemes are not eligible
Schemes for tax benefit.

6. OTHER SERVICES
Apart from above services there are various other services also which axis
bank provides. They are:
 Insurance services for LIFE, HEALTH, MOTOR, JEWELLERY,
PERSONAL ACCIDENT, HOME, CRITICAL ILLNESS.
 Payment facility by BILL PAY, ELECTRONIC CLEARING
SERVICES, VISA MONEY TRANSFER, TAX E-PAYMENTS,
DIRECT TAX PAYMENT, PENSION DISBURSEMENT.
 Mobile Re-Fill.
 Locker.
 Online Shopping.
 IPO SMART.
 E-Statement.
Hence these are various products of AXIS BANK available for Retail
Banking.

OBJECTIVES OF THE RESEARCH

For a successful research, defining the objective is very important because it

makes clear for the researcher the problem and the ways to find the solutions
for it. This project was carried to ascertain the Retail Banking Operations of
AXIS BANK.

Following are the objective of research:

 To know the scope of Retail banking of AXIS BANK.

 To analyze and identify the potential scope of improvement for Axis

bank in Reatail banking.
  To know peoples perception about the products of Axis bank in Retail
banking.

 To study and compare the performance of Axis Bank Vs Competitors

in Retail banking.

 To identify the problems and solutions of Reatil banking of Axis

bank.

RESEARCH METHODOLOGY

Research may be defined as the research for knowledge through an

objective. It is a way to systematically solve the research problem. It
includes the various steps that are generally adopted by a researcher. I have
adopted the research design.

RESEARCH DESIGN

A Research design is the specification of the method and procedures for

acquiring the information needed.

DATA COLLECTION
 There may be different types of information and data. Some of the
information may be published or unpublished, complete or uncomplete,
reliable or unreliable, biased or unbiased, primary or secondary data.

TOOLS FOR ANALYSIS

Statistical Tools: Graphs and Ratio analysis.

Primary data: Market survey.

Secondary data: Company records , Websites.

This research is performed mainly by taking help of company’s records,

annual reports, official websites through internet.

ANALYSIS AND INTERPETATION

2009 2008 2007 2006 2005

CURRENT ASSETS, 3745.14 278451 1892.07 1679.98 2071.38

LOANS AND
ADVANCES

LESS: CURRENT 9947.66 7556.90 5873.80 4051.03 1828.68

LIABILITIES AND
PROVISIONS
TOTAL NET (6202.52) (4772.38) (3981.73) (2371.05) 242.70
WORKING
CAPITAL

Interpretation:

Here we can see that the current liabilities of the bank is very high but on the
other hand bank don’t have enough assets so the result is Working Capital of
the Bank is decreasing year by year which is not a good sign for the bank. Its
shows the bank don’t have a enough money to pay their day to day
expenses.

WORKING CAPITAL TURNOVER RATIO

YEAR RATIO CALCULATED
2004-2005 7.92
2005-2006 (12.1)
2006-2007 (1.14)
2007-2008 (1.46)
2008-2009 (1.98)

Interpretation:
The working capital turnover ratio is used to analyze the relationship
between the money used to fund operations and the sales generated from
these operations. In a general sense, the higher the working capital turnover,
the better because it means that the company is generating a lot of sales
compared to the money it uses to fund the sales. In the case of AXIS BANK
working capital turnover ratio is negative in most of the year only in the year
2004-05 is a positive as well as high. So its shows the bank has used a more
funds in compare to generate sales which is not show a good sign for bank.
PROFITABILITY RATIOS:

OPERATING MARGIN

YEAR RATIO CALCULATED

2004-2005 26.77
2005-2006 26.45
2006-2007 21.84
2007-2008 23.25
2008-2009 28.31

Interpretation:

The data shows that Operating profit margin is increasing which is good for
the bank.

GROSS PROFIT MARGIN

YEAR RATIO CALCULATED

2004-2005 23.23
2005-2006 23.88
2006-2007 19.79
2007-2008 21.44
2008-2009 23.31
Interpretation:
Here we can see that the there is no much up and downs in Gross profit
margin of AXIS BANK but in the year 2007-08 Gross Profit Margin has
increased from 19.79 to 21.44, it’s a 8.43 % growth in gross profit margin of
bank that shows the and also same in the case of year 2008-2009, which
shows that the performance of bank is increasing which is a good sign for
bank.

NET PROFIT MARGIN

 YEAR RATIO CALCULATED
2004-2005 14.33
2005-2006 13.47
2006-2007 12.01
2007-2008 12.22
2008-2009 13.31

Interpretation:

Net profit margin of AXIS BANK is not up to mark. After the year 2004-05
to 2007-08 it is continuously decreasing which is a major issue of concern
for bank. In year 2008-09 there is only a slight change in margin.

MANAGEMENT EFFECTIVENESS

RETURN ON ASSETS

YEAR RATIO CALCULATED

2004-2005 1.21%
2005-2006 1.18%
2006-2007 1.10%
2007-2008 1.24%
2008-2009 1.28%

Year Calculated Ratio

Interpretation:
Return on assets (ROA) is an indicator of how profitable a company is
relative to its total assets. ROA gives an idea as to how efficient
management is at using its assets to generate earnings. In the case of AXIS
BANK ROA is decreasing from the year 2004-2005 to 2006-07 but after the
year 2006-07 it has increased so we can say that previously the bank was not
utilize their assets efficiently but now the bank is doing which may be a
good sign for bank in future.
EARNING PER SHARE (RS)

YEAR RATIO CALCULATED

2004-2005 11.83
2005-2006 17.41
2006-2007 23.40
2007-2008 29.94
2008-2009 50.57

Interpretation:
Earning per share is increasing year by year which is a good sign for an
investors of axis bank it shows that an investor can invest in AXIS Bank to
get good profit.

LEVERAGE RATIOS

DEBT EQUITY RATIO

YEAR RATIO CALCULATED

2004-2005 13.17
2005-2006 13.97
2006-2007 17.32
2007-2008 9.99
2008-2009 10.89

Interpretation:

The debt equity ratio is calculated to measure the extent to which debt
financing has been used in business. It indicates what proportion of equity
and debt the company is using to finance its assets. As a generaL rule there
should be a mix of owner fund and outside fund. The AXIS BANK is having
high debt equity ratio in the year 2004-05 and 2006-07 its means the bank
was very aggressive in financing its growth with debt.
FIXED ASSET TURNOVER RATIO

YEAR RATIO CALCULATED

2004-2005 3.01
2005-2006 4.00
2006-2007 4.97
2007-2008 6.32
2008-2009 7.78

Interpretation:

Fixed assets are used in the business for producing goods to be sold. The
effective utilization of fixed assets will result in increased production and
reduced cost. Fixed Assets Turnover ratio is increasing which shows that
fixed assets are efficiently utilized. In the case of AXIS BANK the fixed
asset turnover ratio is continuously increasing from the year 2005-06 to
2007-08 and in the year 2008-09 it was very high. It reflects that bank was
utilizing their assets in a efficient manner.

LIQUIDITY RATIO

CURRENT RATIO
YEAR RATIO CALCULATED
2004-2005 1.13
2005-2006 0.41
2006-2007 0.03
2007-2008 0.03
2008-2009 0.03

Interpretation:

Current ratio indicates the short term financial soundness of the company. It
judges whether current assets are sufficient to meet the current liabilities.
The company must be able to meet its current obligations out of the current
assets. The standard current ratio is 2:1 it means the company should have
such total current assets which are twice of their current liabilities but in the
case of AXIS BANK the current ratio does not match up with standard ratio.
And it is not increasing continuously year by year and it shows the bank
doesn’t have enough assets to pay their liabilities.

QUICK RATIO

YEAR RATIO CALCULATED

2004-2005 11.55
2005-2006 6.52
2006-2007 7.39
2007-2008 9.23
2008-2009 9.52

Interpretation:

It is an indicator of a company's short-term liquidity. The quick ratio

measures a company's ability to meet its short-term obligations with its most
liquid assets. It is called liquid because it can be easily converted in to cash.
The higher the quick ratio, the better the position of the company. It is said
that standard ratio of liquidity must be 1:1. So we can say that in the case of
AXIS BANK the ratio is more than standard ratio in every year. So its
shows the bank is able to meet their short term obligation which is good for
the bank.

TOTAL DEPOSITS AND BORROWINGS

2005 2006 2007 2008 2009

DEPOSITS 31712.00 40113.53 58785.60 87626.22 117374.11
BORROWINGS 1781.41 2680.93 5195.60 5624.04 10185.48

Interpretation:

Both Saving Bank deposits and current bank deposits is increasing year by
year which is a good sign for the bank and it’s shows the image of bank is
becoming more good in the eyes of customers and public and the customers
have satisfied with the services of bank so the result they are keeping more
faith on bank and that’s why they are depositing more money in the bank.

TOTAL ADVANCES
2005 2006 2007 2008 2009
ADVANCES 15,602.92 22,314.23 36,876.48 59,661.14 81,556.77

Interpretation:

Here it shows a positive increase in advances which is a good sign for the
bank.

FINDINGS

 Working Capital of the Bank is decreasing year by year which is not a

good sign for the bank.
 In the year 2007-08 Operating Margin was 23.25, in the year 2008-09
it is 28.31. This shows that Operating profit margin is increasing
which is good for the bank.
 In the year 2007-08 Gross Profit Margin was 21.44, in the year 2008-
09 it was 23.31. This shows that Gross profit margin is increasing
which is good for the bank.
 Net profit margin is increasing year by year.
 Fixed Assets Turnover ratio is increasing which shows that fixed
assets are efficiently utilized.
 Current Ratio is increasing which is showing a sound financial
position of the company.
 Quick Ratio of the bank is increasing it shows that position of the
bank is improving.
 Earning per share is increasing which shows that a investor can invest
in AXIS Bank to get good profits.
 Total deposits and borrowings are increasing are increasing which
means customers are satisfied with bank.
 Total advances are also increasing year by year which is a good sign
for bank.

RECOMMENDATIONS

 Company should provide promotional programs and schemes.

 Satisfy existing customers.

 Aggressive advertisement campaign should be adopted in order to

attract customers.

 Create awareness about different accounts, deposits and loans, i.e. all

products of Retail banking.

 Attract customers by providing better facility than other competitors

of Axis bank.

 Should work on increasing working capital ratio.

LIMITATIONS
 The survey took much time due to calculation of each and every ratio

of Axis bank.

 The scope of project was quite wide , thus it was difficult to have a

proper and equal reach in the scope.

 Due to expenditure of money on collection of data , this research

could not be done efficiently.

 Due to lack of time, the survey of some area in retail banking of axis

bank was missed.

 The data may be uncomplete due to lack of proper source of

information.

 The project may be untrue due to my individual opinion as it may

vary with individual opinions.

BIBLOGRAPHY
Books:

 Dr. I.M. Pandey - Financial Management, Vikas Publication

Delhi.

 M.Y. Khan, P.K. Jain - Financial Management , Tata Mc Graw Hill

Publishing company Limited, New Delhi

Websites:

 www.axisbank.com

 www.google.com

 www.moneycontrol.com

 www.infinancials.com