Janki Sing

A PROJECT REPORT ON
COMPARATIVE ANALYSIS OF PRODUCT & SERVICES

OF AXIS BANK WITH ITS COMPETITORS
SUBMITTED BY
SINGH JANKI SHAILENDRA ANITA
T.Y.BBI SEM-V
(2017-2018)
Project submitted to “University of Mumbai” in partial fulfillment for the
Award of Bachelor’s Degree in B.Com (Banking & Insurance)
UNDER THE GUIDANCE OF
PROF. AGARWAL NITIN.
AFFILIATED TO UNIVERSITY OF MUMBAI

GURUKUL COLLEGE OF COMMERCE
GHATKOPAR (E), MUMBAI 400077.
OCTOBER 2017
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DECLARATION
I, SINGH JANKI SHAILENDRA ANITA student of T.Y.B.B.I (2017-2018)

of Gurukul College of Commerce, Mumbai -400077 do hereby declare that I
have completed the Project work titled “Comparative analysis of product &
services of Axis Bank with its competitors” as a part of my academic
fulfillment.
The Information contained in this project work is true and original to the best of
my knowledge and belief.
Date: Signature of the Student
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CERTIFICATE
This is to certify that SINGH JANKI SHAILENDRA ANITA student of
Gurukul College of Commerce studying in TYBBI bearing Roll No. 58 has
successfully completed the project entitled “Comparative analysis of product
& services of Axis Bank with its competitors” as part of assignments under my
Supervision during the academic year 2017-2018.
Student’s Signature Prof. Agarwal Nitin
Prof. Nitin Agarwal Dr. Nandita Roy

(Co-ordinator) (Principal)
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ACKNOWLEDGEMENT
I wish to express my sincere and heartfelt thanks to my guide Prof. Nitin

Agarwal, for his supervision throughout the project work.
I think Prof. Nitin Agarwal, BBI Co-ordinator for encouragement and help to
complete this project work.
I take this opportunity to express my deep sense of gratitude to Dr. Nandita Roy
(principal), Gurukul College of Commerce, Ghatkopar (E) for having taken the
initiative to start the project work.
I also thank Mrs. Seema Saraf, Librarian for her support in finding reference
books, journals and other materials.
Finally, I wish to express my heartfelt gratitude to my beloved parents and all my

friends for their encouragement and support in completing this project work.
Above all I think Lord Almighty for abundant mercies and infinite grace which
showed upon me to complete this project work.
Signature of the Student
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INDEX
Sr. No. Particulars Page
No.
1. Introduction to the Banking Industry 6-30
 Banking in India.
 Nationalized banks in India.
 Need & importance of banks.
 Features of the Bank.
 Funds based services.
 Non fund based services.
 Objective of the project.
 Functions of the bank.
 Challenges facing banks & FIs.
 Role of Indian economy.
2. Review of literature of the Banks 31-42

 An overview of Indian banking sector.
3. Profile of the Organization 43-68

 Evolution.
 Operating, Mission & values.
 Major players in banking industry.
 7Ps of the Bank.
4. Analysis and Interpretation of Data 69-73

 Financial performance.
 SWOT analysis.
5. Conclusions 74-76
Bibliography
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CHAPTER-1
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INTRODUCTION TO THE BANKING
INDUSTRY
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BANKING IN INDIA
Banking in India, in the modern sense, originated in the last decades of the 18th
century. Among the first banks were the Bank of Hindustan, which was established
in 1770 and liquidated in 1829–32, and the General Bank of India, established in
1786 but failed in 1791.The largest bank and the oldest still in existence, is
the State Bank of India (SBI). It originated as the Bank of Calcutta in June 1806. In
1809, it was renamed as the Bank of Bengal. This was one of the three banks
funded by a presidency government; the other two were the Bank of Bombay in
1840 and the Bank of Madras in 1843. The three banks were merged in 1921 to
form the Imperial Bank of India, which upon India's independence, became
the State Bank of India in 1955. For many years the presidency banks had acted as
quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935, under the Reserve Bank of India Act, 1934.
HISTORY
The first bank, though conservative, was establish in 1786 till today, the journey of
Indian banking system can be segregated into three distinct phases. They are
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 (1786 to 1969)
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The General Bank of India was set up in the year 1786. Next came Bank of
Hindustan and Bengal bank. 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. This three banks were amalgamated in 1920
and Imperial Bank of India was established which start 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. Reserve Bank of India was vested with extensive
powers for the supervision of banking in India as the Central Banking Authority.
During those day’s public has lesser confidence in bank. 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 (up to 1991)

Government took major steps in the 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.
The following are the steps taken by the Government of India to Regulate Banking
Institutions in the Country:
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 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 banks.
 1980: Nationalization of seven banks deposits over 200 crore.
After the Nationalization of Banks, the branches of the public sector Banks in India
rise to approximately 80% in deposits and advances took a huge jump by 11,000%.
PHASE III (after 1991)

This phase has introduced many more products and a facility in the banking
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 financial system of India has shown a great deal of
resilience. It is sheltered from any crisis triggered by any external macroeconomic
shock as other East Asian Countries suffered. This is all due to a flexible exchange
rate, the foreign reserves are high, the capital account is not yet fully convertible,
and banks and their customers have limited foreign exchange exposure.
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 prime minister. The
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major objective behind nationalization was to spread banking infrastructure in rural
areas and available cheap finance to Indian framers. 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 year 1980. Seven more
banks were nationalized with deposits over 200 crores.
NEED & IMPORTANCE OF BANKS FOR BUSINESS

On the basis of these Important Functions of Banks, we may easily describe the
importance of banks in today’s global life.
1. Collections of Savings and Advancing Loans

Acceptance of deposit and advancing the loans is the basic function of commercial
banks. On this function, all other functions depend accordingly. Bank operates
different types of accounts for their customers.
2. Money Transfer
Banks have facilitated the making of payments from one place or persons to
another by means of cheques, bill of exchange and drafts, instead of cash. Payment
though cheques, draft is more safe and convenient, especially in case of huge
payments, this facility is a great help for traders and businessmen.
3. Encourages Savings
Banks perform an invaluable service by encouraging savings among the people.
They induce them to save for profitable investment for themselves and for national
interest. These savings help in capital formation.
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4. Transfer Savings into Investment
Bank transfer the savings collected from the people into investment and thus
increase the amount of effective capital, which helps the process of economic
growth.
5. Overdraft Facilities
The banks allow the overdraft facilities to their trusted customers and thus help
them in overcoming of temporary financial difficulties.
6. Discounting Bill of Exchange

Importance of banks can be seen through the facility of discounting bill of
exchange. Banks discount their bill of exchange of consumers and help them in the
financial difficulties. By discounting bill of exchange, they able to get the desire
amount for investment they want.
7. Financing Internal & External Trade

Banks help merchants and traders in financing internal and external trade by
discounting foreign bill of exchange, issuing of letter of credit and other guarantees
for traders.
8. Act as an Agent
The bank act as a agent and help their customers in the purchase and sales of
shares, provision of lockers payment of monthly and dividends on stock.
9. Issue of Traveler’s Cheques
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For the convenience and security of money for travelers and tourists, bank provides
the facility of traveler’s cheques. These cheques enable the travelers and tourists to
meet their expenses during their journey, as these are accepted by issuing bankers,
restaurants, and other businessmen both at home and abroad. No doubt, this is also
one of the great functions of banks.
10.General Utility Services

Existence of commercial banks is essential for contribution to general prosperity.
Banks are the main factors in raising the level of economic development of the
world. In addition to above-cited advantages, banks also provide many services of
general utilities to the customers and the general public.
FEATURES & CHARACTERISTICS OF BANKS

Banking plays an important role in every country for their economic growth as
well as currency factor. Banking involves following characteristics as written:-
1. Dealing in money
All banks basically deals with money as they are financial institute where we links
for our moneys exchanges we will either gave or deposit money in banks or will
led/barrow money from banks for our requirement as per we need.
2. Acceptance of money deposits

All banks always works for their consumer satisfaction as a result they accepts
money from all their customers in a way there they also gave an Interest on
deposited with the duration passed to money in bank. Banks deposits money from
peoples & after that the protection of money is the responsibility of banks any
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misfortune happens to the consumer’s money will be returned by banks to
customer within a given period of time.
3. Payments and withdraws

A person who has deposit their money into bank can able to withdraw it at any
time of instance. A customer can also able to easy payment & withdraw their
money with the facilities of ATMs, drafts, money orders, and cheques etc.
4. Individual or companies
Bank can be of any type it can be a company or firm or also a person which are
involved in the business of money. This is also how banks are defined.
5. Various branches
A bank can also have multiple branches for the facility of their customers as
every person cannot be able to go to the main branch of the Bank so banks further
grows their own branches so that they can reach to each n every person.
6. Functions increasing
Banks always believe in developing of facilities for the customers so that they
always increase their functions for working like developing latest ATM machines
for the transactions of money and also net banking by which will be able to buy &
sell any item from the sitting in our comfort zone.
7. Business in banking
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Banks do the business of money without any subsidiary business. There only
responsibility is to satisfy their customers. This is also how banks define as they
do the business of money interchanging from 1 hand to other.
8. Identification
Each bank has a unique name but having Bank name as common in all. Which
identifies the banks existence? People deals with different banks having different
names but bank word in common in all of them.
9. Facility of advance
Banks also led/gave money to the people in a form of Loan with minimum
amount of interest. People which are not able to full fill their requirements at an
instance of time which required a large amount of money at that time banks lend
money to them so that they full fill their requiems and returns back in small
installment which are known as EMIs.
FUND BASED SERVICES

Working capital financing
A firm's working capital is the money available to meet current obligations (those
due in less than a year) and to acquire earning assets. China trust Commercial Bank
offers corporations Working Capital Finance to meet their operating expenses,
purchasing inventory, receivables financing, either by direct funding or by issuing
letter of credit.
Short term financing
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The bank can structure low cost credit programmes and cash flow financing to
meet your specific short-term cash requirements. The loans are structured to
enhance your profitability by scheduling the repayment to match the cash flow
available to repay the debt.
Bill discounting
Bill discounting is a short tenure financing instrument for companies willing to
discount their purchase/sales bills to get funds for the short run. These are
customized to suit your requirement for short-term finance, from the date of sale to
the date of receipt of payment there on. We consider two types of bills facility viz.
where documents are delivered on payment, i.e. D/P Bills and where the
documents are delivered against acceptance that is D/A bills.
Export credit
We offer short-term working capital finance both at the pre-shipment and post-
shipment stages: Pre-shipment finance facility provides liquidity for procuring raw
materials, processing, packing, transporting meant for export. Post-shipment
finance is a credit facility extended from the date of shipment of goods till the
realization of the export proceeds.0
Structured finance
Structured finance describes any "non-standard" way of raising money. These
tailor-made securities go beyond "standard" securities like conventional loans,
debentures, debt, and equity. The reason to structure a more advanced security may
be that conventional securities may be unattractive, unavailable or too expensive.
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Term lending
CTCB offers very competitive rates for term financing. We also provide advisory
services to companies for syndication of the term loans to a wide spectrum of
financial institutions. Under Term Finance, China trust Commercial Bank, offers
the following:
Fund Based Finance for capital expenditure acquisition of fixed assets towards
starting or expanding a business to swap with high cost existing debt from other
bank / financial institution
Non-Fund Based Finance in the form of Deferred Payment Guarantee for
acquisition of fixed assets towards starting / expanding a business or industrial
unit.
NON FUND BASED SERVICES

Letter of credit
Letter of credit is a legal document issued by a buyer’s bank that upon presentation
of required documents payment would be made. Usually confirmed by the seller’s
bank, protection is given to the seller that payment will be made if the goods are
shipped correctly, following the conditions laid down when the LC is opened or
based on subsequent amendments and protection is given to the buyer that the
goods will be shipped before payment is made. The LC facility can be granted to
the importers after assessing their requirement/ credit worthiness/ financial strength
and other parameters being to the satisfaction of the Bank. Chinatrust Commercial
Bank can extend Import financing through Letters of Credit, which are well
accepted globally and are supported by a strong trade finance set-up.
Bank guarantees
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Bank Guarantee is a contract to perform the promise or discharge the liability of a
third person in case of his default. Chinatrust Commercial Bank sanctions Bank
Guarantee limit to facilitate issue of guarantees on behalf of its clients. Various
types of guarantees offered are –financial, performance, bid bond, tenders,
customs, etc. Our guarantees are accepted by all government agencies including
Customs, Excise, Insurance Companies, Shipping Companies, all Capital Market
Agencies such as NSE, BSE, etc. and all major corporate.
Collection of documents: we have a full-fledged trade finance set-up catering to
all your trade related requirements, which offers you the following advantages:
1. Better turnaround time through timely processing of your documents
2. Facilitating faster payments
3. Lower cost
4. Excellent trade support
5. Arrangement of credit reports of overseas parties
BANKING STRUCTURE IN INDIA:
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1. Reserve Bank of India (RBI)
The country had no central bank prior to the establishment of the RBI. The RBI is
the supreme monetary and banking authority in the country and controls the
banking system in India. It is called the Reserve Bank’ as it keeps the reserves of
all commercial banks.
Scheduled & Unscheduled Banks

A scheduled bank is a bank that is listed under the second schedule of the RBI Act,
1934. In order to be included under this schedule of the RBI Act, banks have to
fulfill certain conditions such as having a paid up capital and reserves of at least
0.5 million and satisfying the Reserve Bank that its affairs are not being conducted
in a manner prejudicial to the interests of its depositors. Scheduled banks are
further classified into commercial and cooperative banks. Non scheduled banks are
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those which are not included in the second schedule of the RBI Act, 1934. At
present these are only three such banks in the country.
A. Commercial Banks
Commercial banks may be defined as, any banking organization that deals with the
deposits and loans of business organizations. Commercial banks issue bank checks
and drafts, as well as accept money on term deposits. Commercial banks also act
as moneylenders, by way of installment loans and overdrafts. Commercial banks
also allow for a variety of deposit accounts, such as checking, savings, and time
deposit. These institutions are run to make a profit and owned by a group of
individuals.
Types of Scheduled Commercial Banks:

I. Public Sector Banks
These are banks where majority stake is held by the Government of India.
Examples of public sector banks are: SBI, Bank of India, Canara Bank, etc.
II. Private Sector Banks

These are banks majority of share capital of the bank is held by private individuals.
These banks are registered as companies with limited liability. Examples of private
sector banks are: ICICI Bank, Axis bank, HDFC, etc.
III. Foreign Banks

These banks are registered and have their headquarters in a foreign country but
operate their branches in our country. Examples of foreign banks in India are:
HSBC, Citibank, Standard Chartered Bank, etc.
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IV. Regional Rural Banks
Regional Rural Banks were established under the provisions of an Ordinance
promulgated on the 26th September 1975 and the RRB Act, 1976 with an objective
to ensure sufficient institutional credit for agriculture and other rural sectors. The
area of operation of RRBs is limited to the area as notified by GoI covering one or
more districts in the State. RRBs are jointly owned by GoI, the concerned State
Government and Sponsor Banks (27 scheduled commercial banks and one State
Cooperative Bank); the issued capital of a RRB is shared by the owners in the
proportion of 50%, 15% and 35% respectively.
Type of Major Shareholders Major Players

Commercial
Banks
Public Sector Government of India SBI, PNB, Canara Bank, Bank

Banks of Baroda, Bank of India, etc
Private Sector Private Individuals ICICI Bank, HDFC Bank,

Banks Axis Bank, Kotak Mahindra
Bank, Yes Bank etc.
Foreign Banks Foreign Entity Standard Chartered Bank, City

Bank, HSBC, Deutsche Bank,
BNP Paribas, etc.
Regional Rural Central Government, Andhra Pradesh Grameena
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Banks Concerned State Government Vikas Bank, Uttaranchal
and Sponsor Bank in the Garmin Bank, Prathama Bank,
ratio of 50 : 15 : 35 etc.
B. Cooperative Banks
A co-operative bank is a financial entity which belongs to its members, who are at
the same time the owners and the customers of their bank. Co-operative banks are
often created by persons belonging to the same local or professional community or
sharing a common interest. Co-operative banks generally provide their members
with a wide range of banking and financial services (loans, deposits, banking
accounts, etc). They provide limited banking products and are specialists in
agriculture-related products. Cooperative banks are the primary financiers of
agricultural activities, some small-scale industries and self-employed workers. Co-
operative banks function on the basis of “no-profit no-loss”.
The co-operative banking structure in India is divided into following main 5
categories:
State Cooperative Bank

There is a main cooperative bank in every state that runs and lends money all the
central cooperative banks in that state.
Urban Cooperative Bank
These banks operate in urban areas and accept deposits from the public and also
advance loans to them. Supervised by the RBI and managed by the State
governments.
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OBJECTIVE OF THE PROJECT
 To gains the knowledge of product and service of Axis bank Ltd. And to
compare it vis-vis other banks.
 To identify the perception of consumer about their banks with comparison to
other banks.
 Recommendations to increase customer satisfaction level.
Because of the following reasons, I prefer this project work to get the
knowledge of the banking system.
 Banking is an essential industry.
 It is where we often wind up when we are seeking a problem in financial
crisis and money related query.
 Banking is one of the most regulated businesses in the world.
 Banks remain important source for career opportunity for people.
 Banks can play a dynamic role in delivery and purchase of consumer
durables.
FUNCTIONS OF BANKS
The functions of banks are briefly highlighted in following Diagram or Chart.
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A. Primary Functions of Banks:
The primary functions of a bank are also known as banking functions. They are the
main functions of a bank.
These primary functions of banks are explained below.
1. Accepting Deposits
The bank collects deposits from the public. These deposits can be of different
types, such as:-
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a. Saving Deposits
This type of deposits encourages saving habit among the public. The rate of
interest is low. At present it is about 4% p.a. Withdrawals of deposits are allowed
subject to certain restrictions. This account is suitable to salary and wage earners.
This account can be opened in single name or in joint names.
b. Fixed Deposits
Lump sum amount is deposited at one time for a specific period. Higher rate of
interest is paid, which varies with the period of deposit. Withdrawals are not
allowed before the expiry of the period. Those who have surplus funds go for fixed
deposit.
c. Current Deposits
This type of account is operated by businessmen. Withdrawals are freely allowed.
No interest is paid. In fact, there are service charges. The account holders can get
the benefit of overdraft facility.
d. Recurring Deposits
This type of account is operated by salaried persons and petty traders. A certain
sum of money is periodically deposited into the bank. Withdrawals are permitted
only after the expiry of certain period. A higher rate of interest is paid.
2. Granting of Loans and Advances

The bank advances loans to the business community and other members of the
public. The rate charged is higher than what it pays on deposits. The difference in
the interest rates (lending rate and the deposit rate) is its profit.
The types of bank loans and advances are:-
a. Overdraft
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This type of advances is given to current account holders. No separate account is
maintained. All entries are made in the current account. A certain amount is
sanctioned as overdrafts which can be withdrawn within a certain period of time
say three months or so. Interest is charged on actual amount withdrawn. An
overdraft facility is granted against a collateral security. It is sanctioned to
businessman and firms.
b. Cash Credits
The client is allowed cash credit up to a specific limit fixed in advance. It can be
given to current account holders as well as to others who do not have an account
with bank. Separate cash credit account is maintained. Interest is charged on the
amount withdrawn in excess of limit. The cash credit is given against the security
of tangible assets and / or guarantees. The advance is given for a longer period and
a larger amount of loan is sanctioned than that of overdraft.
c. Loans
It is normally for short term say a period of one year or medium term say a period
of five years. Now-a-days, banks do lend money for long term. Repayment of
money can be in the form of installments spread over a period of time or in a lump
sum amount. Interest is charged on the actual amount sanctioned, whether
withdrawn or not. The rate of interest may be slightly lower than what is charged
on overdrafts and cash credits. Loans are normally secured against tangible assets
of the company.
d. Discounting of bill of exchange
The bank can advance money by discounting or by purchasing bills of exchange
both domestic and foreign bills. The bank pays the bill amount to the drawer or the
beneficiary of the bill by deducting usual discount charges. On maturity, the bill is
presented to the drawee or acceptor of the bill and the amount is collected.
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B. Secondary Functions of Banks:
The bank performs a number of secondary functions, also called as non-banking
functions.
These important secondary functions of banks are explained below.
1. Agency Functions
The bank acts as an agent of its customers. The bank performs a number of agency
functions which includes:-
a. Transfer of Funds
The bank transfer funds from one branch to another or from one place to another.
b. Collection of Cheques
The bank collects the money of the cheques through clearing section of its
customers. The bank also collects money of the bills of exchange.
c. Periodic Payments
On standing instructions of the client, the bank makes periodic payments in respect
of electricity bills, rent, etc.
d. Portfolio Management
The bank also undertakes to purchase and sell the shares and debentures on behalf
of the clients and accordingly debits or credits the account. This facility is called
portfolio management.
e. Periodic Collections
The bank collects salary, pension, dividend and such other periodic collections on
behalf of the client.
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f. Other Agency Functions
They act as trustees, executors, advisers and administrators on behalf of its clients.
They act as representatives of clients to deal with other banks and institutions.
2. General Utility Functions

The bank also performs general utility functions, such as:-
a. Issue of Drafts and Letter of Credits

Banks issue drafts for transferring money from one place to another. It also issues
letter of credit, especially in case of, import trade. It also issues travelers cheques.
b. Locker Facility
The bank provides a locker facility for the safe custody of valuable documents,
gold ornaments and other valuables.
c. Underwriting of Shares
The bank underwrites shares and debentures through its merchant banking
division.
d. Dealing in Foreign Exchange
The commercial banks are allowed by RBI to deal in foreign exchange.
e. Project Reports
The bank may also undertake to prepare project reports on behalf of its clients.
f. Social Welfare Programmers
It undertakes social welfare programmers, such as adult literacy programmers,
public welfare campaigns, etc.
g. Other Utility Functions
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It acts as a referee to financial standing of customers. It collects creditworthiness
information about clients of its customers. It provides market information to its
customers, etc. It provides travelers’ cheque facility.
ROLE OF INDIAN ECONOMY

Banking system plays a very significant role in the economy of a country. It is
central to a nation’s economy as it caters to the needs of credit for all the sections
of the society. Money-lending in one form or the other has evolved along with the
history of mankind. Even in the ancient times, there are references to the money-
lenders, in the form of sahukars and zamindars who lend money by mortgaging
the land property of the borrowers.
Towards the beginning of the 20 century, with the onset of modern industry in our
country, the need for government-regulated banking system was felt. The British
government began to pay attention towards the need for an organized banking
sector in the country and the Reserve Bank of India was set up to regulate the
formal banking sector in the country.
Ever since they were nationalized in 1969, banks have been playing a major role in
the socio-economic life of the country. India is not only the world’s largest
independent democracy, but also an emerging economic giant. Without a sound
and effective banking system, no country can have a healthy economy.
For the past three decades, India’s banking system has several outstanding
achievements to its credit. It is no longer confined to only the metropolitans, but
have reached even to the remote corners of the country. This is one of the reasons
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of India’s growth process. Agriculture in India has a significant history and it is
demographically the broadest economic sector and plays a significant role in the
overall socio-economic fabric of India.
Finance in agriculture is an important as development of technologies. A dynamic

and growing agricultural sector needs adequate finance through banks to accelerate
overall growth. Most of the credit-related schemes of the government to uplift the
poorer and the under-privileged sections have been implemented through the
banking sector.
With the passing of the Reserve Bank of India Act 1934, there were improvements
in agricultural credit. Earlier, the co-operative banks were the main institutional
agencies providing finance to agriculture. But after nationalization of 14 major
commercial banks, it was mandatory for them to provide finance to agriculture as a
priority sector. Thus, agricultural credit acquired multi-agency dimension. The
government has allocated `10000 crore to the National Bank for Agriculture and
Rural Development (NABARD) for refinancing Regional Rural Banks (RRBs) to
disburse short term crop loans to small and marginal farmers. The short-term crop
loans scheme offers credit to farmers at 7 per cent interest rate.
Besides, in order to reduce post-harvest losses, farmers are eligible to get post-
harvest loans up to six months at 4 per cent interest rate provided they keep their
produce in warehouses. The rural sector in a country like India can growth only if
cheaper credit is available to the farmers for their short-and medium-term loans.
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Today, the banking sector is one of the biggest service sectors in India. Availability
of quality services is vital for the well-being of the economy. The various
customer-oriented products like internet banking, ATM services, telebanking and
electronic payment have lessened the workload of customers. The facility of
internet banking enables a consumer to access and operate his bank account
without actually visiting the bank premises.
CHAPTER-2
REVIEW OF LITERATURE
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An overview of Indian Banking Sector Literature Review:
Indian Banking Sector – An Overview
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Through a huge number of banks, the system of Indian banking is expressed by
means of combined ownership. The sector of commercial banking consists of 33
foreign banks, 40 private sector banks, and 27 public sector banks where majority
ownership is included by the government. In 2003-04, whole assets of bank add up
to a small amount exceeding 70 percent of GDP (Gross Domestic Product). In
2003-04, while the foreign and private banks apprehend 25 percent, the public
sector banks comprise of about 75 of the banking system assets. Through contrast,
the share of the public sector banks of entire banking system assets has been a little
above 90 percent, during the year 1991. In the year 1992, in prior to the
introduction of financial sector development, the government sector in each and
every sphere of economic action has a principal role, and towards the requirements
of development which is planned the system of Indian financial has effectively
accommodated.
The rule for an administered interest rate has been resulted in financial
intermediation of low-quality and high-cost, and the preemption of a huge amount
of bank deposits result in the form of reserves. The existence of the interest rates
structure that has been found difficult and it is taking place from the concerns of
both social and economic, regarding the supply of acknowledgment credit towards
definite sectors which resulted in cross subsidization, where the larger rates
stimulating to non-concessional borrowers were involved. On deposits and lending,
through specified regulatory instructions, the administered interest rates system
was distinguished which in further leads to interest rates in large quantity.
Therefore, among the commercial banks lending rates and deposits rates the
spreads have been increased, and in the credit risk the administered lending rates
does not make any issue. During the banking system operations, the lack of
prudential norms, accountability, and transparency also results in the expanding of
Page 33 of 72
non-performing assets trouble. The bank’s functional autonomy and operational
independence has been confined by the inflexibility in management structures and
licensing of branches which has increased the overhead costs on the expenditure
front.
During this period, the financial environment by means of underdeveloped and

segmented financial markets was distinguished. Therefore, this has resulted in the
incompetent allocation of scarce resources and distortion of interest rates. In
relation to exposure norms, provisioning, asset classification, income recognition,
and capital adequacy, the execution of prudential norms has been found. The
economy of world has also observed most important variations like ‘corresponding
with the movement towards financial services and global iteration’, even though
these reforms were employed. For the purpose of present reform process, on
banking sector reforms a second government-appointed committee has provided
the blueprint, against such conditions.
During the reform period, the noteworthy and critical reforms in the financial
system have incorporated the following:
 Permitting the banks to select their lending rates and deposit, by liberalizing
the interest rate rule.
 Establishing micro-prudential measures like income recognition,
provisioning norms for loans, accounting norms, capital adequacy requirements,
asset classification, and exposure norms.
 Authorizing higher disclosure to make sure of larger transparency in the
balance sheets.
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 Introducing competition by allowing the establishment of new foreign
banks and also permitting more liberal entry of foreign banks.
 Assuming a consultative method so as to originate policy through measures
that are being ushered by the participants of market to supply lead time useful to
the market players in order to create required adjustments.
 Reducing the statutory reserve necessities to the present levels of 25 for
statutory liquidity ratios and 5 percent for cash ratios.
 Expanding the public sector banks ownership in order to increase their
capital up to 49 percent from the market by means of enabling the state-owned
banks. Since the end of March 2004, seventeen state-owned banks has increased
about 82 billion rupees and accessed the capital market.
As a result of the reforms, in the system of banking the share of entire assets of
public sector banks was decreased to 75 percent from 90 percent between the year
1991 and 2004. The concentration ratio of five-bank asset has turned down to 0.43
in 2003-04 and to 0.44 in 1995-96, from 0.51 percent in the year 1991-92. Still it
showed a turn down to 0.41 percent in 2003-04 and 0.48 in 1995-96, from 0.68 in
the year 1991-92. In the private sector, the new banks entry diminished the
concentration of asset which further might have made the competition stronger.
The basic idea is that efficiency is improved through competition. However, this
may not true always. One argument is that the excessive risk-taking may be
directed by means of increased competition. To achieve economies of scope and
scale in order that the concentration increased may directs to the improvements of
efficiency, an argument was made by others that consolidation or concentration is
required.
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In the system of Indian banking, the degree of competition is estimated. In India,
the banking sector was made as an interesting case study by several factors. At
first, through the objective of profitability, productivity, and enhancing efficiency,
India experience liberalization of the banking sector, during the 1990s. Secondly,
the banking sector experience a significant transformation that is being driven by
the requirement for making a competitive economy, productive, and market-driven
so as to maintain accentuate growth and larger investment levels. Thirdly, in
markets that are emerging the studies of competition relate to countries through a
subsequent consolidation and history of banking crises. Concentration enlarged
because of consolidation, and the tested studies in these countries, whether this
resulted in increase in the power of institutions or increase in the competition. It is
quiet fascinating to observe in the Indian context, whether penetration of foreign
and private banks and diversification of public sector banks consists of any impact
on competition.
1. Vashisht (1987), evaluated the performance of public sector banks on the basis
of branch expansion, deposits, credit, priority sector advances, differential rate of
interest (DRI) advances and net profit over the period pertaining to 1971-83. For
the study purpose, the researcher ranked the banks as excellent, good, fair and poor
by using composite weighted growth index. The study ranked Indian Overseas
Bank on the top and Dena Bank on the bottom among the banks taken under study.
The researcher suggested the development of marketing strategies for deposit
mobilization, profit planning and SWOT analysis in order to improve the
performance of public sector banks.
Page 36 of 72
2. Subramanian and Swami (1994) in their paper, comparative performance of
public sector banks in India” Prjanan, Vol. XXII, have analyzed and compared
the efficiency in six public sector banks, four private sector and three foreign banks
for the year 1996-97. Operational efficiency is calculated in terms of total business
and salary expenditure per employee. The analysis revealed that higher per
employee salary level need not result in poor efficiency and business per employee
efficiency co-efficient was also calculated. Among the PSBs, Bank of Baroda
registered the high efficiency and operating profit per employee. Among the
private sector banks Indus Bank followed by Citibank Registered highest and
second highest operating profit per employee respectively. However, among the
Nationalized Banks there existed wide variations in efficiency. Some organizations
like, RBI, SBI and ICRA have carried out several research studies on various
issues relating to banking and exclusive banking journals/periodicals like Bank
Quest, The Bankers, RBI occasional papers, RBI bulletins and general magazines
like Business Today, Business India, Finance India, have been publishing papers on
various aspects like NPAs, capital adequacy, branch expansion, credit dispensation,
deposit mobilization, service quality, technology, performance evaluation, etc.
3. Sangeetha Aurora and Meenakshi Malhotra (1997), Studied the factors

determining customer satisfaction at different levels and marketing strategies for
increasing the level of customers’ satisfaction. Factor-wise average scores revealed
that there was significant difference between the level of satisfaction of the public
and private sector banks’ customers. The latter were much more satisfied than their
counterparts in public sector banks. The most distinguishing and outstanding
factors responsible for the satisfaction of private banks’ customers were staff and
service factors. They suggest that public sector banks needed to adopt certain
specific marketing strategies to survive in the present day competition.
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4. Zeph Yun Chang, Joanne Chan and Siew Leng Leck (1997), analyzed
customers’ expectation about basic banking services and different levels of services
to maximize the value that could be derived from the banks. They found that the
customers evaluate competing offers in terms of the totality of the product and
value-added service as well as the relationship that exists between themselves and
the bank. They suggested that in order to gain marketing advantage, banks had to
exceed customers’ expectations rather than merely meet the bare minimum and
succeed, a bank might distinguish itself from its competitors not just in the quality
of the core product but also in how it manages the service surround. Every
interaction with a customer provides an opportunity to be unique and to go beyond
the call of duty.
5. Parimal Vyas (2000), studied customers’ satisfaction from the services provided
by different banks and also analyzed the response of customers towards the actual
time taken by banks to complete the banking transactions. The findings of the
study revealed that nationalized banks and co-operative banks need to improve on
reducing the time taken to complete banking transactions. Comparatively the
private and foreign banks take much less time for completing their transactions.
The study suggested that the nationalized commercial banks and co-operative
banks have to increase the use of information technology and customer relationship
management to deliver standardized services to their target customers.
6. Kumari (2003), the researcher found that in terms of deposit mobilization

branch expansion credit deployment and employment generation both public and
private sector banks have shown increasing trend. Banks wise analysis revealed
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that private sector banks have shown higher growth as compared to public sector
banks. The researcher suggested that public sector banks should their profitability
and productivity performance by adopting innovation modern technological
changes and by fixing responsibility of officers for recovery etc.
7. Uppal (2010), study concluded that among all e channels, ATM is the most
effective while mobile banking does not hold a strong position in public sector
banks and old private sector banks. In new private sector banks and foreign banks
mobile banking service. Mobile banking customers are also the highest in banks
providing electronic services which have positive impact on net profit and business
per employee of these banks. Among all foreign banks are on the top position
followed by new private sector banks in providing mobile banking services and
their efficiency is also much higher as compared to other groups. The study also
suggested some strategies to improve mobile banking services.
8. Fatima Bushra, Ahmad Usman & Asvir Naveed (2011), conducted a survey
by collecting data from 133 employees of 3 banks to find out the effect of
transformational leadership on employee’s job satisfaction and organizational
commitment in banking sector. It is found that Positive relationship exists between
transformational leadership and employee’s job satisfaction. Positive relationship
also exists between transformational leadership and employee’s organizational
commitment. It was concluded that if managers encourage employee’s innovative
thinking, spends time to teach and coach them, consider their personal feelings
before implementing a decision, help to develop their strengths it will improve
their emotional levels and attachment towards their job and organization.
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9. Carsten Horn & Markus Rudolf (2012), conducted a research to analyze the
outcome of service quality in private banks. The analysis is based on a unique
dataset consisting of customer relationship managers in 124 private banking
service providers in Germany, Switzerland, Austria, Luxembourg, and
Liechtenstein. The results showed that an increase in service quality contributed in
the enhancement of both assets and profits for private banking service providers.
10. M. Shankar and Dr. K Srinivasa Rao (2014), Performance of Regional Rural
Banks in India- Regional Rural Banks (RRBs) in India were established to promote
economic development in rural areas. Many RRBs were established in various
states to enhance the economic wellbeing of the rural population. In this research
paper, an attempt is made to present the analysis of the performance of Regional
Rural Banks (RRBs) in Telangana State. This assumes significance since
Telangana was the newest state formed in India on 2nd June, 2014. The paper
presents a summary of various studies conducted on the performance of RRBs at
the national level and also at various state levels. Very few studies were earlier
reported in the context of Telangana state which provides an opportunity to
investigate the performance of RRBs in Telangana state. The findings of this
research highlight the performance of Telangana Grameena Bank. The findings of
this research will help future researchers working on the performance of RRBs in
India.
11. Sirajo Aliyo and M. Kabir Hassan (2016), Direction for future research- This
study reviews literature on the Islamic banking sustainability and presents
directions for future research. The article discourses scholars’ and practitioners’
views on the two perspectives of sustainability in relation to the objectives of
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Islamic banking and finance. That there are limited studies on Islamic banking
sustainability is one of the major issues presented in the article. The study
highlights essential issues on the sustainability without in-depth empirical analysis.
The needs for long-term economic, social, and environmental sustainability are not
a compromising issue. Therefore, Islamic banks must strike a balance between the
institutional, societal, and environmental sustainability in order to achieve the
objective of Sharia.
12. Satyanarayana Rao (2016), Employee retention refers to the ability of an

organization to retain its employees. Each research investigation is expected to
make a definitive contribution to the existing literature. The contribution of this
study would be providing some gap-filling information in the field of Employees
attrition and retention in service industry in general and Private Banks in particular.
Satisfaction of employees is a major problem and due to this reason service sector
have high switching level of jobs. Though, companies are investing a lot on the HR
practices to improve attrition rate it is suggested to think from the point of view of
the employees. Retaining valuable employees is one of the biggest problem that
plague organizations in the competitive marketplace. Employee retention has
become the latest buzzword of the corporate world. Each and every department of
the organization worldwide faces unabated levels of Attrition. This research
provides some suggestions and recommendations which will improve the attrition
rate of the employees of the Private Banks. The information of this research will be
useful to service industry in their HR practices and add new information to
literature.
13. Harpreet Singh and Namrata Sandhu (2017), all organizations, including
banks strive to extend the ambit of their operations. Towards this end, they further
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reach out to existing customers or make efforts to tap untapped niches. Given this
backdrop, the present study attempts to establish the preferred new market entry
strategies of public and private sector Indian banks. It also seeks to examine if
there is a significant difference between the new market entry strategies adopted by
both categories of banks. Data for the study was collected from 364 bank officials
employed with 21 public sector and 12 private sector banks. The respondents of
the study occupied at top/middle level positions in banks and were involved in the
development/execution of bank strategies. The study established the preferred new
market entry strategies adopted by public and private sector banks. It also revealed
that private sector banks give more importance to new market entry than public
sector banks.
14. Lakshmi and V. Reddy (2017), an empirical study- Deposit is an important

element determining the development of the bank. Deposits are the reserves of the
people with the bank. Mobilisation of deposits promotes social wellbeing of the
depositors as also the public at large by instilling in them the habit of savings. The
present study is an empirical analysis on deposit mobilization of Andhra Pragathi
Grameena Bank. The study is mainly based on secondary data which is collected
from the annual reports of APGB. Data were processed by using simple statistics
like mean, standard deviation, coefficient of variation compound growth rate and t
tests. The study concludes that there is a rapid progress in the mobilization of
deposits by APGB.
15. Claudio borio and Leonardo Gambacorta (2017), this paper investigates
how monetary policy affects bank profitability. We use data for 109 large
international banks headquartered in 14 major advanced economies for the period
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1995–2012. Overall, we find a positive relationship between the level of short-term
rates and the slope of the yield curve (the ‘interest rate structure’, for short), on the
one hand, and bank profitability – return on assets – on the other. This suggests
that the positive impact of the interest rate structure on net interest income
dominates the negative one on loan loss provisions and on non-interest income.
CHAPTER- 3
INTRODUCTION TO AXIS BANK
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Axis Bank Limited
Type Private-sector bank
Traded as BSE: 532215
LSE: AXBC
NSE: AXISBANK
Industry Banking, Financial services
Founded 1993(as UTI Bank)
Headquarters Mumbai, Maharashtra, India
Key people Shikha Sharma (MD & CEO) Sanjiv Misra (Chairman)
Products Credit cards, consumer banking, corporate banking, finance

and insurance, investment banking, mortgage loans, private
banking, private equity, wealth management
Revenue Rs 414.0925 billion(US$6.5 billion) (2016)
Net income Rs 83.5759 billion(US$1.3 billion) (2016)
Total assets Rs 5.25468 trillion(US$82 billion) (2016)
Total equity Rs 4.7657 billion(US$74 million)
Number of 56,086 (March 2016)

employees
Website www.axisbank.com
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INTRODUCTION
Axis Bank Ltd is the third largest of the private-sector banks in India offering a
comprehensive suite of financial products. The bank has its head office in Mumbai
and Registered office in Ahmedabad. It has 3300 branches, 14,003 ATMs, and
nine international offices. The bank employs over 50,000 people and had a market
capitalization of ₹1.0583 trillion (US$17 billion) (as on March 31, 2016). It offers
the entire spectrum of financial services large and mid-size corporates, SME, and
retail businesses. As of 30 Jun. 2016, 30.81% shares are owned by promoters &
promoter group (United India Insurance Company Limited, Oriental Insurance
Company Limited, National Insurance Company Limited, New India Assurance
Company Ltd, GIC, LIC & UTI). Remaining 69.19% shares are owned by Mutual
Funds Institutions, FIIs, Financial Institutions (banks), Insurance companies,
corporate bodies & individual investors among others.
HISTORY OF AXIS BANK

UTI Bank opened its registered office in Ahmedabad and corporate office in
Mumbai in December 1993.The first branch was inaugurated on 2 April 1994 in
Ahmedabad by Dr. Manmohan Singh, the Finance Minister of India. UTI Bank
began its operations in 1993, after the Government of India allowed new private
banks to be established. The Bank was promoted in 1993 jointly by the
Administrator of the Unit Trust of India (UTI-I), Life Insurance Corporation of
India (LIC), General Insurance Corporation, National Insurance Company, The
New India Assurance Company, The Oriental Insurance Corporation and United
India Insurance Company.
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In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but
the Reserve Bank of India (RBI) withheld approval and nothing came of this. In
2004 the RBI put Global Trust into moratorium and supervised its merger into
Oriental Bank of Commerce.
In 2003 Axis Bank became the first Indian bank to launch the travel currency card.
In 2005, Axis Bank got listed on London Stock Exchange. UTI Bank opened its
first overseas branch in 2006 Singapore. That same year it opened a representative
office in Shanghai, China. UTI Bank opened a branch in the Dubai International
Financial Centre in 2007. That same year it began branch operations in Hong
Kong. In 2008 it opened a representative office in Dubai.
Axis Bank opened a branch in Colombo in October 2011, as a Licensed

Commercial Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis
Bank opened a representative offices in Abu Dhabi. In 2011, Axis bank
inaugurated Axis House, its new corporate office in Worli, Mumbai.
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations.

Axis Bank UK has a branch in London. Deepika Padukone, a Mumbai Film
Industry (a.k.a. Bollywood) actress is the brand ambassador of Axis Bank. In 2015,
Axis Bank opens its representative office in Dhaka. The bank has over 50,000
employees (as of 31 March 2016). The bank incurred ₹26.7 billion (US$420
million) on employee benefits during the FY 2012–13. The average age of an Axis
Bank employee is 29 years. The attrition rate in Axis Bank is approx. 9% per year.
SERVICES OF AXIS BANK
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Retail Banking In the retail banking category, the bank offers services such as
lending to individuals/small businesses subject to the orientation, product and
granularity criterion, along with liability products, card services, Internet banking,
automated teller machines (ATM) services, depository, financial advisory services,
and Non-resident Indian (NRI) services. Axis bank is a participant in RBI's NEFT
enabled participating banks list.
Corporate Banking Credit: The Bank offers various loan and fee-based products
and services to Large and Mid-corporate customers and Small and Medium
Enterprise (SME) businesses. These products and services include cash credit
facilities, demand and short-term loans, project finance, export credit, factoring,
channel financing, structured products, discounting of bills, documentary credits,
guarantees, foreign exchange and derivative products. Liability products including
current accounts, certificates and deposits and time deposits are also offered to
large and mid-corporate segments.
Transaction Banking: Formed in April 2015, TxB provides integrated products

and services to customers in areas of current accounts, cash management services,
capital market services, trade, foreign exchange and derivatives, cross-border trade
and correspondent banking services and tax collections on behalf of the
Government and various State Governments in India.
Treasury: The Treasury manages the funding position of the Bank and also
manages and maintains its regulatory reserve requirements. It invests in sovereign
and corporate debt instruments and engages in proprietary trading in equity and
fixed income securities, foreign exchange, currency futures and options. It also
invests in commercial papers, mutual funds and floating rate instruments as part of
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the management of short-term surplus liquidity. In addition, it also offers a wide
range of treasury products and services to corporate customers.
Syndication: The Bank also provides services of placement and syndication in the
form of local currency bonds, rupee and foreign term loans and external
commercial borrowings.
Investment Banking and Trustee Services: The Bank provides investment
banking and trusteeship services through its owned subsidiaries. Axis Capital
Limited provides investment banking services relating to equity capital markets,
institutional stock broking besides M&A advisory. Axis Trustee Services Limited
is engaged in trusteeship activities, acting as debenture trustee and as trustee to
various securitization trusts.
AWARDS
2012
 Bank of the Year - Money Today FPCIL Awards 2012-13
 Best Private Sector Bank - CNBC-TV18 India’s Best Bank and Financial
Institution Awards 2012
 Consistent Performer - India’s Best Banks – 2012 Survey by Business
Today & KPMG
 Gold Shield for Excellence in Financial Reporting in the Private Banks
category - 2011-12 - ICAI (Institute of Chartered Accountants of India)
2013
 Axis Bank ranked No 1 company to work for in the BFSI sector - 'The Best
Companies to Work for' survey by Business Today.
 Ranked No 1 in the IT Biz Award - large enterprises category by Express IT
Awards
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 Innovation for 2013 for Ladies First card under ‘the Most Innovative Broad
Based Product Offering’ category- IBA Innovations Award.
2014
 Axis Bank Foundation conferred Outstanding Corporate Foundation at
Forbes India, Philanthropy Awards, 2014
 Best Domestic Bank in India- Asiamoney Best Banks 2014
 Best Bank Award among Large Banks for IT For Business Innovation-
IDRBT Banking Technology Excellence Awards 2014
 Axis Bank featured for the fourth time in Asia's Fab50 companies for 2014
by Forbes Asia
 Best Bank for Rural Reach in the Private Sector and Best Retail Growth
Performance in the Private Sector category- Dun & Bradstreet-Polaris
Financial Technology Banking Awards 2014
2015
 Axis Bank has been adjudged winner in the Best Bank Category, Outlook
Money Awards 2015
 Axis Bank awarded for the Best Security among Private Sector Banks in
India by Data Security Council of India (DSCI).
 Axis Bank conferred the Certificate of Recognition for excellence in
Corporate Governance by the Institute of Company Secretaries of India
(ICSI), for the year 2015.
 Best Domestic Bank in India- Asiamoney Best Banks 2015
 Axis Bank's Mobile App tops Forrester Research's review of Smartphone
Mobile Banking Apps in India.
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 Axis Bank was selected as the Best Private Sector Bank under the category
Rural Reach at the Dun & Bradstreet Banking Awards 2015
 Axis Bank has been conferred with IDRBT Best Bank Award for Digital
Banking, Analytics & Big Data among large banks.[86]
 Axis Bank has been featured in Limca Book of Records 2015 for creating a
National Record for its campaign - 'Plant a Sapling
BOARD OF DIRECTORS
The members of board are:
Sr.No Name Designation
1 Dr.Sanjiv Misra Chairman
2 Mrs.Shikha Sharma Managing Director & CEO
3 Mr.V Srinivasan Deputy Managing Director
4 Mr.Rajesh Dahiya Executive Director
5 Mr.Rajiv Anand Executive Director
6 Mr.V R Kaundinya Director
7 Mr.Prasad R Menon Director
8 Prof.Samir K Barua Director
9 Mr.Som Mittal Director
10 Mr.Rohit Bhagat Director
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11 Mrs.Usha Sangwan Director
12 Mr.S Vishvanathan Director
13 Mr.Rakesh Makhija Director
14 Mrs.Ketaki Bhagwati Director
15 Mr.B Babu Rao Director
Shareholding Pattern - Axis Bank Ltd.
Holder's Name No of Shares % Share Holding
Promoters 688802073 28.76%
Foreign Institutions 1155457305 48.24%
N Banks Mutual
Funds 162854328 6.8%
General Public 154975421 6.47%
Others 84818840 3.54%
Financial Institutions 39375067 1.64%
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Chapter- 4
COMPARING AXIS BANK WITH

OTHERS
COMPARISION OF PRODUCT & SERVICES OF AXIS BANK

WITH OTHER BANKS:-
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1. AXIS BANK COMPARING WITH HDFC BANK
INTRODUCTION
HDFC (housing development financial corporation) Bank Limited is an Indian
banking and financial services company headquartered in Mumbai, Maharashtra. It
has 84,325 employees and has a presence in Bahrain, Hong Kong and Dubai.
HDFC Bank is India’s largest private sector lender by assets. It is the largest bank
in India by market capitalization as of February 2016. It was ranked 69th in 2016
BrandZ Top 100 Most Valuable Global Brands.
HISTORY
In 1994 HDFC Bank was incorporated, with its registered office in Mumbai, India.
Its first corporate office and a full service branch at Sandoz House, Worli was
inaugurated by the then Union Finance Minister, Manmohan Singh.
As of June 30, 2017, the Bank’s distribution network was at 4,727 branches and
12,220 ATMs across 2,666 cities / towns.

PRODUCTS & SERVICES
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HDFC Bank provides a number of products and services which includes wholesale
banking, Retail banking, Treasury, Auto (car) Loans, Two Wheeler
Loans, Personal loans, Loan against Property and Credit Cards. The latest entry in
the league is 'Project AI', under which HDFC Bank, over the next few weeks,
would deploy robots at select bank branches. These robots will offer options such
as cash withdrawal or deposit, forex, fixed deposits and demat services displaying
on the screen to persons coming into the branch.

Comparing Income Data with Axis Bank:

INCOME DATA AXIS BANK, HDFCBANK
((Mar 2017)714 (Mar 2017)
Other income 124,216 128,776
Interest expense 267,894 380,416
Net interest income 183,857 352,298
Operating expense 127,256 207,511
Gross profit 56,601 144,787
Gross profit margin 12.5 19.8
Provisions/contingencies 121,279 39,908
Profit before tax 59,538 232,921
Minority Interest -140 367
Prior Period Items 0 23
Tax 19,868 80,781
Profit after tax 39,530 152,530
Net profit margin 8.8 20.8
Source: Company Annual Reports, Regulatory Filings, Equitymaster.
WHOLESALE BANKING SERVICES

 Working capital finance.
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 Trade services.
 Transactional services.
 Cash management.
RETAIL BANKING SERVICES

The products are backed by world-class services and delivered to the customers
through the growing branch networks, as well as through alternate delivery
channels like-
 ATMs.
 Phone banking.
 Net banking.
 Mobile Banking.
TREASURY
Within this business, the bank has three main products areas-
 Foreign Exchange & Derivatives.
 Local Currency Money Market & Debt Securities.
BALANCE SHEET COMPARISION:

BALANCE SHEET DATA AXIS BANK HDFC BANK
(Mar2017) (Mar 2017)
Advances 3,810,803 5,854,810
Deposits 4,149,827 6,431,343
Credit/Deposit ratio 91.8% 91.0%
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Yield on advances 8.8% 9.6%
Cost of deposits 4.7% 4.9%
Net Interest Margin 3.3% 4.2%
Net fixed assets 38,102 38,147
Share capital 4,790 5,125
Free reserves 422,807 702,033
Net worth 563,804 917,940
Borrowings 1,124,548 984,156
Investments 1,290,184 2,107,771
Total assets 6,114,620 8,923,442
Debt/equity ratio 9.4% 8.1%
Return on assets 0.6% 1.7%
Return on equity 7% 16.6%
Capital adequacy ratio 15% 14.6%
Net NPAs 2.1% 0.3%
2. AXIS BANK COMPARING WITH ICICI BANK:
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INTRODUCTION
ICICI Bank, stands for Industrial Credit and Investment Corporation of India, is an
Indian multinational banking and financial services company headquartered in
Mumbai, Maharashtra, India, with its registered office in Vadodara. In 2014, it was
the second largest bank in India in terms of assets and third in term of market
capitalization. It offers a wide range of banking products and financial services for
corporate and retail customers through a variety of delivery channels and
specialized subsidiaries in the areas of investment banking, life, non-life insurance,
venture capital and asset management. The bank has a network of 4,850 branches
and 14,404 ATMs in India, and has a presence in 19 countries including India.
HISTORY
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI
Bank was reduced to 46% through a public offering of shares in India in fiscal
1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000,
ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation
in fiscal 2001, and secondary market sales by ICICI to institutional investors in
fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the
World Bank, the Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses.
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SERVICES
IMobile SmartKeys
To make mobile payments easier, ICICI Bank has launched a payment service
using a smart phone keyboard named ‘iMobile SmartKeys’. Users will be able to
make quick and secure payments on any mobile application, including chat,
messenger, email, games or search browser, without having to exit their current
application on their smart phone. This reduces the time taken by customers having
to switch tabs or applications within their Smartphone to access the bank’s
application ‘iMobile’. This solution was developed by one of the winners of the
bank’s app developing competition - ICICI Appathon.
ICICI Merchant Services

ICICI Merchant Services represents an alliance formed in 2009 between ICICI
Bank, India’s largest private sector bank, and First Data, a global leader in
electronic commerce and payment services. First Data is the majority stakeholder
in the alliance with ICICI Bank holding 19%.
First Data is offering the complete gateway solution while ICICI is offering the
Merchant Services, so the both companies are generating the revenue from Indian
market by offering the secure merchant solution along with MOTO machine.

INCOME DATA AXIS BANK ICICI BANK
(Mar 2017) (Mar 2017)
Interest income 451,751 609,400
Page 59 of 72
Other income 124,216 524,577
Interest expense 267,894 348,358
Gross profit 56,601 -220,658
Gross profit margin 12.5% -36.2%
Extraordinary Inc (Exp) 0 0
Minority Interest -140 -11,520
Prior Period Items 0 0
Tax 19,868 24,690
Net profit margin 8.8% 16.7%
INITIATIVES
100 Digital Villages ICICI Bank has continuously taken steps to promote ember
2016, in the wake of the ban on high denomination notes, the Bank announced that
it will aid the transformation of 100 villages, across India, into ‘ICICI Digital
Villages’ in 100 days. This will enable villagers to use digital channels for
banking, payments transactions and cashless payments to retail stores.
Go Green The Go Green Initiative is an initiative that moves beyond people,
processes and customers to cost effective automated channels to build awareness of
our environment, nation and society. The various green products and services are
Instabanking (alternate banking options like- Internet banking, i-Mobile banking,
& IVR Banking. On 22 September 2014 ICICI Bank launched Four New Next Gen
Page 60 of 72
Mobile Banking Apps), Vehicle Finance for car models which use alternate modes
of energy (50% waiver on processing fee of auto loans.
Literary Endeavors ICICI Bank launched the ‘Jiyo Khulke’ contest on March 16,
2015 wherein ICICI customers were invited to write their Jiyo Khulke moment –
their most cherished moment of life – in a choice of 11 languages. In 2016 the
efforts of ICICI enters Limca Book of Records.
BALANCE SHEET AXIS BANK ICICI BANK

(Mar 2017) (Mar 2017)
Advances 3,810,803 5,153,173
Deposits 4,149,827 5,125,873
Credit/Deposit ratio 91.8 100.5
Free reserves 422,807 581,559
Net worth 563,804 1,046,320
Borrowings 1,124,548 1,882,868
Investments 1,290,184 3,045,017
Total assets 6,114,620 9,860,427
Capital adequacy ratio 15% 17.4%
Page 61 of 72
Net NPAs 2.1% 5.4%
3. AXIS BANK COMPARISION WITH STATE BANK OF INDIA:
INTRODUCTION
State Bank of India (SBI) is an Indian multinational, public sector banking and
financial services company. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. On 1st April, 2017, State Bank of India,
which is India's largest Bank merged with five of its Associate Banks (State Bank
of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank
of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank with itself.
This is the first ever large scale consolidation in the Indian Banking Industry. With
the merger, State Bank of India will enter the league of top 50 global banks with a
balance sheet size of ₹33 trillion, 278,000 employees, 420 million customers, and
more than 24,000 branches and 59,000 ATMs. SBI's market share will increase to
22 percent from 17 per cent. It has 198 offices in 37 countries; 301 correspondents
in 72 countries. The company is ranked 232nd on the Fortune Global 500 list of the
world's biggest corporations as of 2016.
HISTORY
Page 62 of 72
The roots of the State Bank of India lie in the first decade of the 19th century,
when the Bank of up later renamed the Bank of Bengal, was established on 2 June
1806. The Bank of Bengal was one of three Presidency banks, the other two being
the Bank of Bombay (incorporated on 15 April 1840) and the Bank of Madras
(incorporated on 1 July 1843). All three Presidency banks were incorporated as
joint stock companies and were the result of royal charters. These three banks
received the exclusive right to issue paper currency till 1861 when, with the Paper
Currency Act, the right was taken over by the Government of India. The
Presidency banks amalgamated on 27 January 1921, and the re-organized banking
entity took as its name Imperial Bank of India. The Imperial Bank of India
remained a joint stock company but without Government participation.

INCOME DATA AXIS BANK SBI BANK
(Mar 2017) (Mar 2017)
Interest income 451,751 2,218,548
Other income 124,216 510,162
Interest expense 267,894 1,430,474
Gross profit 56,601 50,904
Gross profit margin 12.5% 2.3%
Extraordinary Inc (Exp) 0 0
Minority Interest -140 -7,945
Prior Period Items 0 2,758
Tax 19,868 54,335
Page 63 of 72
Net profit margin 8.8% 5.5%
BUSINESS PERFORMANCE
State Bank of India (SBI) is an Indian multinational, public sector banking
and financial services company. It is a government-owned corporation with its
headquarters in Mumbai, Maharashtra. On 1st April, 2017, State Bank of India,
which is India's largest Bank merged with five of its Associate Banks (State Bank
of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank
of Patiala and State Bank of Travancore) and Bharatiya Mahila Bank with itself.
This is the first ever large scale consolidation in the Indian Banking Industry. With
the merger, State Bank of India will enter the league of top 50 global banks with a
balance sheet size of ₹33 trillion, 278,000 employees, 420 million customers, and
more than 24,000 branches and 59,000 ATMs. SBI's market share will increase to
22 percent from 17 per cent. It has 198 offices in 37 countries; 301 correspondents
in 72 countries. The company is ranked 232nd on the Fortune Global 500 list of
the world's biggest corporations as of 2016.
Non-banking subsidiaries
Apart from its five associate banks, SBI also has the following non-banking
subsidiaries:
 SBI Capital Markets Ltd
 SBI Funds Management Pvt Ltd
 SBI Factors & Commercial Services Pvt Ltd
 SBI Cards & Payments Services Pvt. Ltd. (SBICPSL)
 SBI DFHI Ltd
Page 64 of 72
 SBI Life Insurance Company Limited
 SBI General Insurance
In March 2001, SBI (with 74% of the total capital), joined with BNP Paribas (with
26% of the remaining capital), to form a joint venture life insurance company
named SBI Life Insurance company Ltd. In 2004, SBI DFHI (Discount and
Finance House of India) was founded with its headquarters in Mumbai.
BALANCE SHEET AXIS BANK SBI BANK

(Mar 2017) (Mar 2017)
Advances 3,810,803 18,702,609
Deposits 4,149,827 22,538,576
Credit/Deposit ratio 91.8 83%
Free reserves 422,807 1,063,251
Net worth 563,804 1,805,924
Borrowings 1,124,548 2,582,144
Investments 1,290,184 7,051,891
Total assets 6,114,620 29,708,976
Capital adequacy ratio 15.0% 13.9%
Net NPAs 2.1% 3.8%
Page 65 of 72
Competitive position (Mar 2017):
Name Last Market Net Net Total asset

price capital Interest Profit
ASIX BANK 503.35 120,653.68 44,542.16 3,679.28 178,648.43
ICICI BANK 271.95 174,396.91 54,156.28 9,801.08 771,791.46
HDFC BANK 1800.10 463,324.74 69,305.96 14,549.66 863,840.20
SBI BANK 256.75 221,627.89 175,518.24 10,484.10 2,705,966.30
SWOT ANALYSIS OF AXIS BANK

Axis Bank is an Indian Private Sector bank. It was founded in 1994 and head
quarters are in Mumbai, Maharashtra. It is ranked as Third largest domestic bank in
Private sector and has been providing various financial services to its customers.
Strengths
 The bank has a good image among urban population.
 It has been showing good growth in banking industry sector.
 Axis bank market share is increasing in rural areas.
 It is among the largest bank in India which was providing Agriculture loans.
 Axis bank is among the top three positions with respect of fastest growth in
private sector banks.
 It has around 2400 domestic branches and 8000+ ATMs.
Page 66 of 72
 The bank has its presence in 971 cities and towns.
 Gender diversity; 19% of Axis bank employees are women.
 Strong marketing & branding; one of the top Bollywood actress was signed
as a brand ambassadors.
 Axis bank has foundation which has been supporting the supplementary
education.
Weaknesses
 It has limited branches as compared to its direct competitors.
 Less number of International branches.
 Share price are not stable.
Opportunities
 Market penetration in rural areas of India.
 Market development in International market.
Threats
 Threat of new entrants.
 Tough competition of foreign banks.
 Fierce competition.
CHAPTER 5
Page 67 of 72
CONCLUSIONS
Page 68 of 72
Recommendation & Conclusion:
Axis Bank is one of the few clean (in term of asset book), rapidly growing
Profitable and competitive private sector banks in India. Thus it will be a major
beneficiary of the favorable banking environment. The Indian banking sector is in
sweet spot: consumer and corporate lending is strong, asset quality is improving
and fee – income opportunity is 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 and 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 offers 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 benefit of the expanded reach by scaling up its retail
foray.
Moreover, earning CAGR is likely to be stronger than the larger private peers as it
begins to benefit from the distribution expansion. Ideally, as many investment
bankers themselves put it, you should love the job, not its outcome. You should
enjoy financing, investing, doing business, travelling, and meeting new and
Page 69 of 72
exciting people. Not money, partying or a name tag that says you’re an investment
banker.
Axis Bank (BSE 0.66 %) has left behind large foreign banks, known for their
investment banking skills, as it has retained the top investment banking rank in the
past 10 consecutive years. With its market share surging to 20.4%, the private
sector lender has cut 327 deals worth 81,100 crore that companies raised by selling
bonds in 2016, according to Bloomberg debt market league table.
With expanding corporate bond market, we can see more opportunities coming in
this year, said Shashikant Rathi, head of treasuries and markets, Axis Bank. We
bridge between borrowers and investors with our feet on the ground, which is the
key to our success. We have also conducted some innovative deals last year, which
helped both the parties meeting their respective requirement.
Page 70 of 72
BIBLOGRAPHY
The following books and websites have been consulted for the preparation of this
project.
Reference Books
1. Phillips kotter’s marketing management twelth edition.
2. Banking strategy, Katuri Nageswar Rao, 2002.
3. Indian Banking, BK Swain, 2008.
4. Bank Marketing, Shyam Ji Mehrotra, Professional Banker, April 2006.
5. Indian Economy, S Chand publishing, Ruddar Datt and Sundram, 2007.
6. Indian Economy, Himalaya publishing house, Mishra and Puri, 2006.
7. Modern banking of India.
8. Bank management Vasant Desai.
9. Commercial Banking, Katuri Nageswar Rao, 2005.
10.Banking sector reform in India (Abhijeet publication) Dr. N.Kannan.
Websites
www.google.co.in
www.axisbank.com
www.slideworld.com
www.economictimes.com
www.rbi.org
www.hdfcbank.com
Page 71 of 72
www.icicibank.com
www.sbibank.com
Page 72 of 72

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A PROJECT REPORT ON

COMPARATIVE ANALYSIS OF PRODUCT & SERVICES

UNDER THE GUIDANCE OF

PROF. AGARWAL NITIN.

AFFILIATED TO UNIVERSITY OF MUMBAI

I, SINGH JANKI SHAILENDRA ANITA student of T.Y.B.B.I (2017-2018)

Date: Signature of the Student

This is to certify that SINGH JANKI SHAILENDRA ANITA student of

Gurukul College of Commerce studying in TYBBI bearing Roll No. 58 has

successfully completed the project entitled “Comparative analysis of product

Supervision during the academic year 2017-2018.

Student’s Signature Prof. Agarwal Nitin

Prof. Nitin Agarwal Dr. Nandita Roy

I wish to express my sincere and heartfelt thanks to my guide Prof. Nitin

Finally, I wish to express my heartfelt gratitude to my beloved parents and all my

Signature of the Student

2. Review of literature of the Banks 31-42

3. Profile of the Organization 43-68

4. Analysis and Interpretation of Data 69-73

PHASE I (1786 to 1969)

PHASE II (up to 1991)

PHASE III (after 1991)

NATIONALIZED BANKS IN INDIA

NEED & IMPORTANCE OF BANKS FOR BUSINESS

1. Collections of Savings and Advancing Loans

6. Discounting Bill of Exchange

7. Financing Internal & External Trade

9. Issue of Traveler’s Cheques

10.General Utility Services

FEATURES & CHARACTERISTICS OF BANKS

2. Acceptance of money deposits

3. Payments and withdraws

FUND BASED SERVICES

Short term financing

NON FUND BASED SERVICES

BANKING STRUCTURE IN INDIA:

Scheduled & Unscheduled Banks

Types of Scheduled Commercial Banks:

II. Private Sector Banks

III. Foreign Banks

Type of Major Shareholders Major Players

Public Sector Government of India SBI, PNB, Canara Bank, Bank

Private Sector Private Individuals ICICI Bank, HDFC Bank,

Foreign Banks Foreign Entity Standard Chartered Bank, City

Regional Rural Central Government, Andhra Pradesh Grameena

State Cooperative Bank

2. Granting of Loans and Advances

2. General Utility Functions

a. Issue of Drafts and Letter of Credits

ROLE OF INDIAN ECONOMY

Finance in agriculture is an important as development of technologies. A dynamic

During this period, the financial environment by means of underdeveloped and

3. Sangeetha Aurora and Meenakshi Malhotra (1997), Studied the factors

6. Kumari (2003), the researcher found that in terms of deposit mobilization

12. Satyanarayana Rao (2016), Employee retention refers to the ability of an

14. Lakshmi and V. Reddy (2017), an empirical study- Deposit is an important

Type Private-sector bank

Industry Banking, Financial services

Founded 1993(as UTI Bank)

Key people Shikha Sharma (MD & CEO) Sanjiv Misra (Chairman)

Products Credit cards, consumer banking, corporate banking, finance

Revenue Rs 414.0925 billion(US$6.5 billion) (2016)