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SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL

BUSINESS

SUBMITTED BY:

Name: Aman Kapoor

MBA-IB (2008-2010)

Roll No. : A1802008189

INDUSTRY GUIDE FACULTY GUIDE

Mr. Rajat Sharma Col. Ks Mohan Deputy Manager NRI Services

Mrs. V. Sitalakshmi

Branch Relationship Manager Priority Banking

Mrs. Priyanka Nautiyal

Senior Relationship Manager Priority Banking

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY – UTTAR PRADESH

“Priority Banking -AXIS Bank”

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TO WHOM IT MAY CONCERN

This is to certify that Aman Kapoor, a student of Amity International Business School, Noida, undertook a project on “Priority Banking” at Axis Bank, Sec-14, Gurgaon from 01-May-2009 to 30-June-2009. Mr.Aman Kapoor has successfully completed the project under the guidance of Mrs. V. SitaLakshmi. He is a sincere and hard-working student with pleasant manners. We wish all success in his future endeavors.

Mrs. V. Sitalakshmi

Branch Relationship Manager

Priority Banking

Axis Bank.

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CERTIFICATE OF ORIGIN

This is to certify that Mr. Aman Kapoor, a student of Post Graduate Degree in MBA-IB (2008-10), Amity International Business School, Noida has worked in the Axis Bank, under the able guidance and supervision of Mr. Rajat Sharma, Deputy Manager, Axis Bank and Mrs. V. Sitalakshmi, Branch Relationship Manager, Axis Bank. The period for which he was on training was for 8 weeks, starting from 1st May ’09 to 1

st July ‘09. This Summer Internship report has the requisite standard for the

partial fulfillment the Post Graduate Degree in International Business. To the best of our knowledge no part of this report has been reproduced from any other report and the contents are based on original research.

Signature Signature

(Faculty Guide) (Student)

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ACKNOWLEDGEMENT

I express my sincere gratitude to my industry guides Mr.Rajat Sharma, Mrs. V.

Sitalakshmi and Mrs. Priyanka Nautiyal, Axis Bank, for there able guidance, continuous support and cooperation throughout my project, without which the present work would not have been possible.

This project is an attempt to share my experience & learning in a shot span of time with organization like Axis Bank. I would also like to thank the entire team of Axis Bank, for the constant support and help in the successful completion of my project. Also, I am thankful to my faculty guide Mr. KS Mohan of my institute, for his continued guidance and invaluable encouragement.

Aman Kapoor

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TABLE OF CONTENTS

Chapter No.

Subject

Page No.

Ch.# 1.0 Executive Summary 6

Ch.# 2.0 Research Methodology 7

2.1 Research Objective(s) 8

2.2 Research Design 8

2.3 Sample Design 9

2.4 Scope of the Study 9

2.5 Limitations 9

Ch.# 3.0 Industry Profile 10-18

3.1 Company Profile 19- 39

Ch.# 4.0 Data Collection 40

4.1 Primary Data 40

4.2 Secondary Data 40

Ch.# 5.0 Findings & Analysis 40-55

Ch.# 6.0 Recommendations 56-57

Ch.# 7.0 Bibliography 58

Ch.# 8.0 Annexure 59-61

8.1 Questionnaire 59-61

Ch.# 9.0 Case Study 62-66

Ch# 10.0 Synopsis of the project 67-69

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Chapter- 1

EXECUTIVE SUMMARY Axis Bank Ltd., formerly UTI Bank Limited, operates in four segments:

� Treasury, � Corporate/Wholesale Banking, � Retail Banking and � Other Banking Business.

The Treasury segment includes investments in sovereign and corporate debt, equity and mutual funds, trading operations, derivative trading and foreign exchange operations on the account and for customers and central funding. The Corporate/Wholesale Banking includes corporate relationships not included under Retail Banking, corporate advisory services, placements and syndication, management of public issue, project appraisals, capital market related services and cash management services. The Retail Banking segment constitutes lending to individual/small business subject to the orientation, product and granularity criterion and also includes low-value individual exposures not exceeding the threshold limit of 5, 00, 00,000 as defined by Reserve Bank of India. It also includes liability products, card services and Internet banking services. In India, all the retail banking segments are expected to witness a tremendous growth owing to the low cost of borrowing, changing customer attitudes towards borrowing and optimism regarding economic growth. Retail lending constitutes just 12.36% of the Indian banking system. All around the world retail lending has been an established market however its rise in emerging economies like India has been of recent origin. If recent statistics on consumer finance are any indication, the last few years have been trend setting. The traditional debt-averse, middle-class Indians who lived within their thrifty means, never to venture beyond their means, seem to have given way to a new middle-class that is free from all inhibitions regarding conspicuous consumption. Unlike its predecessors, the middle-class of today has donned a new attitude; it attaches no social-stigma in taking loans for spending. Apart from the above, one major service launched in the banking sector, concentrating on a particular segment of its customers is:

Priority Banking

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Chapter-2

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is done scientifically.

When we talk about research methodology we not only talk of the research methods but also consider the logic behind the methods we use in the context of our research study and explain why we are using a particular method or technique so that research results are capable of being evaluated either by the researcher himself or by others.

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2.1 PRIMARY OBJECTIVE

Marketing research is a systematic collection, analysis, interpretation and reporting of marketing manager to solve some marketing problem. This particular study was designed with the objective of “Evaluating and analyzing the success of Priority

Banking Service of Axis Bank” and “the contribution of NRI Services under

Retail Banking”.

The Primary Objectives of the study are as follows:

• Understanding the concept of Priority Banking.

• Understanding the various promotional measures taken by the Bank for promoting Priority Banking.

• Assessing the growth in the total volume.

• Suggesting remedial course of action for Axis Bank in regards to Priority Banking.

SECONDARY OBJECTIVE

• Determining the position of Axis Bank vis-a-vis its competitors.

• Suggesting remedial course of action for Axis Bank in regards to other services.

2.2 RESEARCH DESIGN

Research design stands for the planning of methods to be adopted for collecting the relevant data and techniques to be used in their analysis .It is a plan in advance for data collection and analysis and is needed for the research report. The research type followed in the study is exploratory and descriptive in which specific forcasting, narration of facts is gathered.

• The objective of the study was formulated before commencing the research.

• The sample size was not decided in advance as the population was covered for a new concept “Priority Banking”.

• The method of data collection was decided in advance and a rigid procedure was followed for the collection of data, asking question in a manner so as to avoid redundancy and not missing any of the important part.

• The data was processed and analyzed using the specific tool (SPSS Software).

• The findings are reported.

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2.3 SAMPLE DESIGN

Type of Universe

As many customers who are coming to the Bank for availing Priority Services.

Sampling Unit

1 Branch is taken into Account- Gurgaon, Sector-14 Branch.

Sampling procedure

Since the total area of interest is a big one and the concept is still under promotional stage, we select a branch where customers from almost every financial background. Thus, Quota Sampling is the most appropriate sampling technique in this study. Number of customers coming to the Bank: Sample size of customers n = 31

2.4 SCOPE OF THE STUDY

To provide strategic recommendations to the company to improve the services under Priority Banking leading to Axis Bank’s growth share and understanding the strategic leverages provided by the other Banks to increase the volumes.

• Status of awareness of existing and new customers about benefits they receive from Priority Banking.

• Upgrading the company about the different Banks and the services they are providing to increase their volumes.

• Determining the problems faced by existing customers.

2.5 LIMITATIONS

• Only population of a Branch at Gurgaon was surveyed so that report cannot be depended upon for other areas.

• Customers are least interested in filling up the questionnaire.

• Hardly any customer visits the bank. Being priority customers, the customers prefer doorstep services.

• Customers are not ready to answer subjective questions.

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Chapter- 3

INDUSTRY PROFILE

Western and Global Banking History

In 1565, The London Royal Exchange was established. At that time Bankers implies moneychangers, though the term "bank" usually referred to their offices, and did not carry the meaning it does today. A proper hierarchical order was followed among professionals; Bankers were at the top, who did the business with heads of state, next were the city exchanges, and at the bottom were the pawn shops or "Lombard"s. Some European cities today have a Lombard street where the pawn shop was located. Proliferation of Global banking and capital market services started during the 1980s and 1990s as a result of a great increase in demand from companies, governments, and financial institutions, but also because financial market conditions were buoyant and, on the whole, bullish.

Major Events in Banking Industry

� Introduction of Paper Money- Bank Notes

� Foundation of First Joint Stock Company (Dutch East India Company)-

1602 � The Bank of North America Founded – 1781

� Rothschild family founds Euro wide banking- 1800

� The Wall Street Crash of 1929, 9,000 banks close, wiping out a third of the

money supply in the United States- 1930-33

� The largest bank failure in history, The Washington Mutual collapses-

2008

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INDUSTRY PROFILE- India.

Originated in the last decade of 18th century, Banking is a very popular Industry. State

Bank of India is the oldest bank in India, is a government bank that traces its origin back to June 1806 and is the largest commercial bank in the country. The Reserve Bank of India takes the responsibility of Central Banking, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. The Reserve Bank was nationalized after India's independence in 1947 and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. Currently, India has: 88 commercial banks (SCBs), out of these there are:

� 27 public sector banks (that is with the Government of India holding a stake)

� 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and

� 38 foreign banks

All the above stated banks have a combined network of over 53,000 branches and 17,000 ATMs. ICRA Limited, a rating agency, reported that the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively. The period during 1914-1945, which includes the First World War and the Second World War, and two years thereafter until the independence of India were challenging for Indian banking. More than 90 Banks in India failed between 1913 and 1918. The Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India in the year 1948. The Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) in 1949 "to regulate, control, and inspect the banks in India." Various safety provisions were made by the Banking Regulation Act, one of those was that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors. However, despite these provisions, control and regulations, banks in India continued to be owned and operated by private persons, except the State Bank of India. This changed with the nationalization of major banks in India on 19 July, 1969.

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In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization. The government gave licenses to a small number of private banks. These came to be known as New Generation tech-savvy banks, and included Global Trust Bank (the first of such new generation banks to be set up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy of India, revitalized the banking sector in India, which has seen rapid growth with strong contribution from all the three sectors of banks, namely, government banks, private banks and foreign banks.

Banking Industry- 2009

Some growth in Banking Sector has been witnessed by the Annual Policy 2008-2009 of the Reserve Bank of India, the central bank as reflected by the changing liquidity positions arising from domestic and global financial conditions and the policy initiatives taken by the government. According to a study by Dun & Bradstreet (an international research body)—"India's Top Banks 2008"—there has been a significant growth in the banking infrastructure. Taking into account all banks in India, there are overall

� 56,640 branches or offices, � 893,356 employees and � 27,088 ATMs.

The aggregate bank deposits stood at 21.2% as on January 2, 2009. Bank credit touched 24% on January 2, 2009 as against 21.4% on January 4, 2008.

� Bank rate cuts announced � Cash withdrawals from bank will not attract tax from April 1, 2009. � Inter-ATM usage transaction became free of charges effective April 1, 2009.

Major Players

� HDFC Bank � ABN AMRO Bank � HSBC Bank � Standard Chartered Bank � ICICI Bank

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HDFC Bank

The 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, as part of the RBI's liberalisation of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. The Bank at present has an enviable network of over 1412 branches spread over 528 cities across India. Customers in over 500 locations are also serviced through Telephone Banking. The Bank also has a network of about over 3295 networked ATMs across these cities. HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". HDFC Bank has its deposit programmes rated by two rating agencies - Credit Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by CARE, which represents instruments considered to be "of the best quality, carrying negligible investment risk". Services Offered are:

� Personal Banking � NRI Banking � Wholesale Banking

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ABN AMRO Bank

On 29 March 1824 King Willem-I issued a royal decree creating the Nederlandsche Handel-Maatschappij with the aim of reviving trade between the Netherlands and the Dutch East Indies. In 1964, NHM merged with De Twentsche Bank to form Algemene Bank Nederland (ABN), while Amsterdamsche Bank and Rotterdamsche Bank joined to become Amsterdam-Rotterdam (Amro) Bank. In 1991, these two banks merged as ABN AMRO Bank. Today, ABN AMRO Bank has a powerful presence in world markets, building on a tradition of stimulating international trade. As an international bank, ABN AMRO has more than 3,500 branches in over 70 nations across the globe. "ABN AMRO's mission is to create maximum economic value for the shareholders through a constant relationship. The Bank is operating in three principal customer segments, whereby the objective is to maximise the value of each of these businesses as well as the synergies between them. The Indian operations of ABN AMRO Bank began in 1920 when the first branch was opened in Kolkata. ABN AMRO Bank, a full-services bank, has since expanded operations in 21 cities. Services Offered are:

� Consumer Banking � Preferred Banking � Private Banking � Commercial Banking � Corporate and Institutional Banking

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HSBC Bank

The HSBC Group has an international pedigree which is unique. Many of its principal companies opened for business over a century ago and they have a history which is rich in variety and achievement. The HSBC Group is named after its founding member, The Hongkong and Shanghai Banking Corporation Limited, which was established in 1865 to finance the growing trade between China and Europe. HSBC is the world's local bank. Headquartered in London, HSBC is one of the largest banking and financial services organizations in the world. HSBC's international network comprises around 9,500 offices in 86 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts. Services Offered are:

� Personal financial services � Commercial banking � Corporate Banking � Investment banking and markets � Private banking

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Standard Chartered Bank

Standard Chartered was formed in 1969 through a merger of two banks: The Standard Bank of British South Africa, founded in 1863, and the Chartered Bank of India, Australia and China, founded in 1853. Founded by James Wilson following the grant of a Royal Charter by Queen Victoria in 1853. Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in 1858, followed by Hong Kong and Singapore in 1859. Played a major role in the development of trade with the East which followed the opening of the Suez Canal in 1869 and the extension of the telegraph to China in 1871. In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's Cyprus Branches. This established a presence in the Gulf. Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced business in Port Elizabeth, in January 1863. Standard Chartered was prominent in financing the development of the diamond fields of Kimberley from 1867 and later extended its network further north to the new town of Johannesburg when gold was discovered there in 1885. It expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices. In 1965, it merged with the Bank of West Africa, expanding its operations into Cameroon, Gambia, Ghana, Nigeria and Sierra Leone. From the early 1990s, Standard Chartered has focused on developing its strong franchises in Asia, Africa and the Middle East. It has concentrated on consumer, corporate and institutional banking and on the provision of treasury services - areas in which the Group had particular strength and expertise. Since 2000 the Bank has achieved several milestones with a number of strategic alliances and acquisitions At Standard Chartered the success is built on teamwork, partnership and the diversity of the people. Today Standard chartered employ 75,000 people, representing 115 nationalities, and you'll find 60 nationalities among our 500 most senior leaders.

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Services Offered are:

� Personal Banking � Private Banking � SME Banking � Wholesale Banking

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ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion (US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year ended March 31, 2009. The Bank has a network of 1,451 branches and about 4,721 ATMs in India and presence in 18 countries. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. 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. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. Services Offered are:

� Deposits � Loans � Cards � Investment & Insurance � Demat Accounts � NRI Services

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3.1 COMPANY PROFILE

Axis Bank, previously called UTI Bank, was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. UTI-I hold a special position in the Indian capital markets and has promoted many leading financial institutions in the country. The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name.

Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.

As on the year ended March 31, 2009 the Bank had a total income of Rs.

13,745.04 crores and a net profit of Rs 1,812.93 crores.

At the end of March 2009, the Bank has a very wide network of more than 726 branch offices and Extension Counters. The Bank has loans now (as of June 2007) account for as much as 70 per cent of the bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are around 57 per cent (Rs 28,000 crore) of the total loans as of March 2007. In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over a longer period, while the overall asset growth for Axis Bank has been quite high and has matched that of the other banks, retail exposures grew at a slower pace. If the sharp decline in the retail asset book in the past year in the case of Axis Bank is part of a deliberate business strategy, this could have significant implications (not necessarily negative) for the overall future profitability of the business.

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Despite the relatively slower growth of the retail book over a period of time and the outright decline seen in the past year, the bank’s fundamentals are quite resilient. With the high level of mid-corporate and wholesale corporate lending the bank has been doing, one would have expected the net interest margins to have been under greater pressure. The bank, though, appears to have insulated such pressures. Interest margins, while they have declined from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for ICICI Bank are lower despite its much larger share of the higher margin retail business, since funding costs also are higher).

Risk and earnings perspective

Such strong emphasis and focus on lending also does not appear to have had any deleterious impact on the overall asset quality. The bank’s non-performing loans are even now, after five years of extremely rapid asset build-up, below 1 per cent of its total loans. From a medium-term perspective, it appears that Axis Bank could be charting out a niche for itself in the private bank space. It appears to be following a business strategy quite different from the high-volume and commodity-style approach of ICICI Bank and HDFC Bank. That strategy also has its pluses in terms of the relatively higher margins in some segments of the retail business and the in-built credit risk diversification (and mitigation) achieved through a widely dispersed retail credit portfolio. But, as indicated above, Axis Bank has been to able to maintain the quality of its loan portfolio despite the concentrated nature of wholesale corporate lending.

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Milestones

Mar-08 Axis Bank launches Platinum Credit Card, India's first EMV chip based card

Dec-07 Axis Bank gets AAA National Long-Term Rating from Fitch Ratings July-07 UTI Bank re-brands itself as Axis Bank July-07 UTI Bank successfully raises USD 1050 million July-07 UTI Bank ties up with Tata Motors Ltd. for Car Loans Feb-07 Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank

Co - Branded Credit Card Exclusively For Small Road Transport Operators (SRTOS)

Feb-07 UTI Bank announces the launch of its Meal Card Feb-07 UTI Bank announces the launch of its Gift Card Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata Nov-06 UTI Bank opens Priority Banking Lounge in Pune Aug-06 UTI Bank announces the launch of its Credit Card Business Apr-06 UTI Bank opens its first international branch in Singapore Oct-05 UTI Bank extends banking services to the rural milk producers in

Anand and Kheda districts in Gujarat May-05 UTI Bank and Bajaj Allianz join hands to distribute general insurance

products Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$

239.30 million through Global.

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Fact Sheet

Name: Axis Bank

Business Description: Banking Services, Financial Assistance & other Advisory Services.

Type Public BSE: 532215

Founded Ahmedabad, 1994.

Headquarters Mumbai, India

Key people Shikha Sharma, MD & CEO

Proportionate Revenue: Rs. 13,745.04 crores (year ended March 31, 2009)- Total Income. Rs. 1,812.93 crores (year ended March 31, 2009)-Net Profit.

Website www.axisbank.com

The Central Office

Axis Bank Limited, 131, Maker Tower - F, Cuffe Parade, Colaba, Mumbai - 400 005. Tel: (022) 6707 4407 Fax: (022) 2218 1429

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Mission & Values

OUR VISION

� Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.

� Continuous technology upgradation while maintaining human values.

� Progressive globalization and achieving international standards.

� Efficiency and effectiveness built on ethical practices.

Core Values

� Customer Satisfaction through Providing quality service effectively and

efficiently

� "Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits

� Maximization of Stakeholder value

� Success through Teamwork, Integrity and People.

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Priority Banking

Growing Segment in Axis Bank

Mrs. V. SitaLakshmi Branch Relationship Manager

Priority Banking Axis Bank.

80% of the customers contribute to the 20% of the portfolio and the balance

20% customers contribute to the 80% of the portfolio.

So, Priority Banking deals with the balance 20%

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In a segmentation study undertaken in 2002, it was found that 2.72 % of Axis Bank’s retail customers contribute to nearly 49.05% of the total retail deposits. The clients that bring a larger share of business to the Bank expect a differentiated standard of service. This also makes business sense, as more often than not, most of the business in a particular branch flows from a handful of clients. Hence, Priority Banking was launched in order to cater to the needs of the high net worth customers within the bank. The product has at its core the thought of providing differentiation in service and treatment to a segment of its customers with a view towards:

� Customer retention, � Customer acquisition and � Cross selling.

The eligibility criteria for Priority Banking are as given below:

� A minimum average quarterly Balance of Rs. 1 lakh in the savings bank

account

(OR)

� A minimum relationship of Rs 5 lakhs (avg. quarterly balance) in a combination of Savings and Term Deposits

(OR)

� A minimum average quarterly Balance of Rs. 5 lakhs in an Encash 24 (Flexi)

Account

� Personalized service from the Relationship Manager - who is the one-point contact at the bank for all transactions.

� Access to the Priority Banking Lounge/ Area at branches

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Priority Banking Debit Card with the following facilities:

o Free transactions at any VISA ATM in India

o Higher cash withdrawal limit of Rs 50000/- per day through ATMs

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

o Free Personal Insurance Coverage of Rs 5 Lakh on the Card

� At par payable cheque books � Complimentary Gold Credit Card and 50% off on Issuance of Gold Plus

Credit Card – Offer valid on Secured Credit Card variants as well*

� Enhanced limits / lowered charges for inter-branch cheque and cash

transaction

� Home Banking – Free Pick up and drop of cheque/cash above a certain limit, from customer’s office or residence

� Preferential pricing on Retail Loans * � Preferential Rates on Foreign Exchange *

� Waiver on Foreign Remittances*

(OR)

� A minimum average quarterly Balance of Rs. 75000/- in the SB-Salary account

(OR)

� A minimum Family Relationship Value of Rs 10 Lakhs Deposits (SB+ Term)

with an average of Rs 2 lakhs per member (whereby at least 40% of Value needs to be in SB Deposits

� A charge is levied in case of non-maintenance of Average Quarterly Balances

based on category enrollment.

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Priority Banking Debit Card

Privileges offered to Priority Banking customers The privileges offered as a part of Priority Banking include:

Banking privileges

Investment privileges

lifestyle privileges

Banking privileges

� Personalized service from the Relationship Manager - who is the one-point contact at the bank for all transactions

� Access to the Priority Banking Lounge/ Area at branches

� Priority Banking Debit card with the following facilities:

� Free transaction at any VISA- ATM in India � Higher cash withdrawal limit of Rs 50000/- per day through ATMs � Higher POS (Point of Sale) Transaction Limit of Rs 175000/- per day � Free Personal Insurance Coverage of Rs 5 Lakhs on the Card

� At par payable cheque books � Complimentary Gold Credit Card and 50% off on Issuance of Gold Plus

Credit Card – Offer valid on Secured Credit Card variants as well*

� Enhanced limits / lowered charges for inter-branch cheque and cash

transaction

� Home Banking – Free Pick up and drop of cheque/cash above a certain limit,

from customer’s office or residence

• Preferential pricing on Retail Loans *

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• Preferential Rates on Foreign Exchange *

• Waiver on Foreign Remittances*

• Free Mobile Banking Facilities

Investment privileges

� Complimentary financial planning, which includes free advisory services on

mutual fund investment and general insurance

� Exclusive invitations to investment talks.

� Regular Market information reports.

Lifestyle Privilege

� Invitations to lifestyle events such as movie screenings, music concerts, theatre, art exhibitions etc.

� Tie- up with several leading brands across different lifestyle segments.

� Bimonthly newsletter- Priority Pages.

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Priority Assist

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

AXIS Bank is the first Indian bank to launch exclusive high-end branches for its HNI customers. This is an innovative concept where Priority Banking service would be displayed on an experiential level. The concept is that of a boutique banking branch for the High Net Worth customers of the bank offering one stop shop for all their banking and investment needs. However, the bank does not stop at this and goes on to offer lifestyle privileges to these customers and gives them reasons other than banking to come to the branch.

Priority Banking branches are being planned in large urban centers across the country. Four such branches have already been launched in cities of

Pune, Mumbai, Kolkata and Hyderabad.

The need for a concept like this is to make customers of the desired profile visit the branch and the interaction to be more personalized for the bank to be able to understand and meet their needs. Unlike in the past when bank branches used to be seen as venerable, today's bank branches are more inviting with a feel of openness and therefore the use of large windows, see-through glass and glittering full view from outside.

The primary product that will be promoted at these Lounges / Branches would be Priority Banking account. Other products relevant to the affluent customer segment like Wealth Advisory Service, Credit cards, loans etc. would also be offered.

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The services made available in this branch:

Concierge Services

� Plush Lobby with waiting area, plasma TV. Etc. � Business Center- for outstation customers travelling to the city for

business, equipped with Internet, fax and conference call facilities. � Meeting/ discussion rooms for the customers to bank with their

Relationship Manager in comfort and confidentiality. � Internet access zone � Children’s play area- for keeping the customer’s children engaged while

they are being advised on their banking/ investments. � Conference area- to hold small events, private screenings, customer meets

at the branch on a regular basis. Lifestyle privileges are an integral part of the Priority Banking offering.

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Priority Banking Lounge:

As a Priority banking customer you will have access to an exclusive 'Priority Banking Lounge' at branches. This will allow you to conduct your financial transactions in utmost comfort and confidentiality through an exclusive Relationship Manager.

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Dedicated Relationship Manager:

You will enjoy access to a dedicated Relationship Manager who will be your one point contact at branch for all your banking transactions thus ensuring that you would neither have to move from one counter to the other nor stand in queues to await your turn.

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Come home to personalized banking privileges

Axis Bank makes sure Priority Customer walk into an experiential zone. As a Priority Banking Customer you arrive to an exclusive ‘Priority Banking Lounge/ area’ within the branch. Conduct your financial transactions in utmost comfort and confidentiality as we provide you with an exclusive Relationship Manager.

The Relationship Manager is your dedicated one point contact for all your banking transactions. Eliminate all those lengthy queues and shuffling between counters as your Relationship Manager turns your banking experience into an exclusive and pleasurable one.

What’s more you can sit back and relax, as our Home Banking facility offers free cash and cheque pick-up and delivery. Leave the legwork to us and enjoy a preferential status in banking sitting at your home or office.

With our exclusive Priority Banking International Debit Card you get a true feel of belonging to an advantaged bracket. This complimentary photo signature card offers you free transactions at all VISA ATM’s in India. Benefit with higher ATM withdrawal limit of Rs. 50,000/- per day; higher transaction limits at merchant establishments of Rs. 1,75,000/- per day, and enhanced personal accident insurance cover of upto Rs. 5 Lakhs. Avail a fuel surcharge waiver on making payments through this Card, at all petrol pumps in India. You also get one add-on Card free for the second holder of your Account.

Apart from this, enjoy a host of banking privileges like an unlimited ‘at par’ Cheque book, two free zero balance minor accounts, free demand drafts/ pay orders and outstation cheque collection, and one free foreign outward remittance per quarter. You can also enjoy faster clearance of foreign cheques. Also get constant review on the status of your money with free passbook updates, monthly statements of accounts, free mobile banking, internet banking and tele banking facilities. Avail of preferential interest rates and lowered processing fees on select retail loans. With such a host of special offers, we place you safely, a cut above the rest. Also avail Complimentary Gold Standard Credit Card and Gold Standard Secured Credit Card. Avail 50% off on Issuance Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card.

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See your money grow with investment privileges

AXIS Bank helps to make your money reach its highest level of optimization. Leave your investment worries to the acumen of your Relationship Manager who along with our Investment Advisors will guide you through various investment options. Save your sweat as they take you through market information reports and investor meets. You will realize how our investment advisors play your cards perfectly. What’s more the investment advisory services are complimentary for you.

Lifestyle privileges. At your doorstep.

How about being among the selected few to attend an elite art exhibition or being seated in the front row of the most awaited concert in town. Being a Priority Banking customer will get you that exclusive ticket to rub shoulders with the privileged set. What’s more you get special offers and preferred pricing on partner brands.

Also adding to the never-ending list of lifestyle advantage is the Priority Assist Services. Now get flowers delivered or a golf course reserved through our Concierge Assist Service. Get an appointment through our Personal Assist Service. Whether it comes to fixing your special spa treatment or moving your house, Home assist will be at your service. Not to forget the Medical Assistance during times of emergency.

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Mrs. Priyanka Nautiyal Senior Relationship Manager

Priority Banking

Priority Banking Product Features- Axis Bank

1. The preferential rates of Interest on Loans and preferential Foreign Exchange rates are charged on case-to-basis.

HDFC Bank, ABN AMRO Bank and HSBC Bank are also providing Loans and Forex on case-to-case basis but this facility is not provided at Standard Chartered Bank.

2. Axis Bank is providing Lockers to its preferential customers free of cost.

HDFC Bank is giving 50% waiver on the Locker rent. ABN AMRO is not providing this facility.

3. ATM withdrawal limit is Rs. 50,000/- per day, which is almost similar with other banks like HDFC Bank, Standard Chartered etc.

ABN AMRO is providingP Rs. 1,00,000/- per day ATM withdrawal.

4. Axis Bank is providing the service of Delivery/ pick of cash limiting it to 2 deliveries/picks per week and 8 in a month.

Whereas, HDFC bank is not providing this facility. But, Standard Chartered Bank is providing this facility for unlimited times a day/week/month.

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5. Axis Bank is providing the service of Delivery/ pick of Cheque limiting it to 2 deliveries/picks per week and 8 in a month.

Whereas, HDFC bank and HSBC bank are not providing this facility. But, Standard Chartered Bank is providing this facility for unlimited times a day/week/month.

6. Axis Bank is also providing its Priority Customers with Free Demand Draft

facility and so as the others banks like HDFC bank, ABN AMRO bank, Standard Chartered.

But, HSBC is not providing this particular facility.

7. Axis Bank is giving Pass Book Facility to the customers.

HDFC bank is also providing this facility but ABN AMRO bank and HSBC bank is not giving this facility.

8. Frequency of the issuance of Statement is once in a month.

All the competing banks are providing this service.

9. As far as Exclusive Debit Cards are concerned, Axis Bank is providing the facility to there priority customers.

HDFC bank is providing Easy Shop Debit Cards and Gold Cards. ABN AMRO is also providing Free International Debit Cards.

10. VISA ATM transaction facility is available for free at AXIS Bank.

HDFC bank and HSBC bank are also providing this service but ABN AMRO only allows transaction from UTI and Mastercard ATM only.

11. Axis Bank is providing Credit Cards like Gold Standard Credit Card and Gold Standard Secured Credit Card.

Other banks are also giving credit cards like Platinum Plus Card by HDFC bank and Optional Gold Credit Card by ABN AMRO bank.

12. Axis Bank’s Demat Account facility is available for its priority customers for free.

This facility is not available for free with HDFC and ABN AMRO banks whereas, HSBC bank is giving 50% waiver on this facility. For Standard Chartered bank, this service available to the priority customers holding Gold Card.

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13. Axis Bank is giving Tax Advisory Service to its Priority customers for free.

Standard Chartered bank is also giving this facility for free but the banks like HDFC, HSBC and ABN AMRO banks are not providing this facility for free.

14. Axis Bank is providing its services anywhere in India. Thus, giving an option of Anywhere Banking.

Now-a-days, all the banks are providing this particular facility.

15. Investment privileges are available for its customers at Axis Bank.

Standard Chartered is also providing these privileges but banks like HDFC and HSBC are not giving these privileges.

16. Axis Bank is providing all the complimentary financial Services to its priority customers.

Standard Chartered bank is providing only Investment Advisory Services to its customers and the other banks are not providing these services at all.

17. There is no POS Limit on Debit Cards at Axis Bank.

HDFC bank has a limit of Rs. 50, 000/- per day, and ABN AMRO bank is having limit of Rs. 1,00,000/- per day.

18. Apart from this Axis Bank is providing additional features like

Doorstep Banking

Dedicated Relationship Managers

Financial planning

Invites to meet

Lounges

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The Growth Chart of Axis Bank’s Priority Banking Segment…

From the year 2006, the revenue from Priority Banking is continuously increasing. In 2006, the revenue was Rs.11 crs which shooted up to Rs. 22 crs. In 2008, the revenue was Rs. 29 crs. In 2009, the revenue was Rs. 35 crs. And the expected revenue from the 2010 is calculated to be Rs. 70 crs.

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The Growth Chart of Axis

In the year 2006, the annual income was Rs. 4850.8 crs, this increased to Rs. 6542.5 in the year 2007, it was Rs. 10591.4 crs in the year 2008 and in the year 2009 it is Rs. 18129.3 crs.

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Chapter- 4

Data Collection

4.0 Collection: - From the sample of 31 customers’ data has been collected regarding their experience with the priority banking segment, using a questionnaire which has been filled by me on my system. Data Sources: Primary as well as secondary data has been collected. 4.1 Primary Data: - it is the data collected first hand relating to specific queries and problems. Its main advantage is that the information is up-to-date. On the other hand, it is expensive and time consuming.

Sources of collecting Primary Data

The primary data is collected using a questionnaire which has been filled by me on my system. Contact method: - The questions were personally asked from the customers. 4.2 Secondary Data: - It is the information which has been already collected for other purposes and is readily available in some form. Its advantage is that it is readily available and cheap while its disadvantage is that the data may be irrelevant.

Sources of collecting Secondary Data

1. Internal Sources 2. Financial books from various libraries providing information on banking

sector. 3. Information technology tools like Internet from where the various sites were

visited like HDFC Bank, ICICI Bank, HSBC Bank, ABN AMRO Bank, etc. 4. Newspapers like Economic Times, Financial Express etc. providing various

articles on the banking sector and priority banking.

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Chapter- 5

FINDINGS AND ANALYSIS

ANALYSIS: To determine the age groups of Priority Customers.

FINDINGS:

The age group of consumers were divided into 4 groups i.e. 20-30, 30-40, 40-50 and 50 & above. Out of 31 consumers 9.7% belong to 1st group,19.4% belong to 2nd group, 25.8% belong to 3

rd group and 45.2% belong to 4

th group.

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ANALYSIS: To identify the qualification of the Priority Customers.

Educational Qualification of the

Customer

Matriculation

Graduate

Professional

Post Graduate

FINDINGS:

Out of 31 priority customers, maximum customers are Post-Graduate and the minimum level of qualification is Matriculation. This means, major part of the Priority Customers are well educated and thus, can perform their banking transactions via e-mails and other modern techniques.

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ANALYSIS: To identify the Occupation of the Priority Customers.

FINDINGS:

The above graph shows that allmost customers from every field would like to have preference as far as their banking transactions are concerned and want to avail the benefits of priority banking.

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ANALYSIS:

To identify the Annual Household Income of the Priority Customers.

FINDINGS:

Out of 31 general mobile users, maximum customers are from the income group of 10 lakhs or below, there are very less customers who earns more than Rs. 20 lakhs annually as income.

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ANALYSIS: To determine the Service Satisfaction from the Relationship Manager.

FINDINGS:

The survey states that maximum customers under Priortiy Banking are somewhat satisfied from the services given by their Relationship Managers. There are very very less customers who marked their dissatisfation from the services rendered by the Relationship Managers.

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ANALYSIS: To determine the most demanded Service of Axis’s Priority Banking.

FINDINGS:

All the customers would like to use plastic money, thus hold ATMs and Credit Cards. Other than this, customers having fixed deposits would like to avail the facility of priority banking.

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ANALYSIS: To determine the strenghts of the Relationship Managers.

0

5

10

15

20

25

30

35

Wise Dedication Spontaneous Decision

Taking Skills

Knowledge

of the

products

Strengths

FINDINGS:

Out of 31 customers, 29 thinks that Relationship Managers are wise and 20 says the Relationship Managers have the Knowledge of the products they are offering, the RMs are spontaneous and fairly have decision taking skills too.

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ANALYSIS: To identify the weaknesses of the Relationship Managers.

FINDINGS:

Maximum customers say that the RMs have Weak Persentation Skills with this they have less customer contact and do not do regular follow-ups.

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ANALYSIS: To determine the type of Banking Customers prefer.

FINDINGS:

Out of 25 customers 15 of them use pre-paid connections and 10 use post paid connections.

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ANALYSIS: To determine the average ranking of the Relationship Managers.

0

2

4

6

8

10

12

14

16

18

12

34

5

Ranking

FINDINGS:

Out 31 customers surveyed, 16 rate their RMs at 3 on the scale of 5 may be due to the weaknesses mentioned above . There are customers who rate their RMs towards the maximum rating 0f 4 & 5.

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ANALYSIS: To analyze the Promotional part of Priority Banking.

FINDINGS:

Nearly all the Priority Customers came to know about the Priority Banking via Axis Bank’s Welcome Kit. This shows that Axis Bank is not using or using very little promotional measures other than their own welcome kits.

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ANALYSIS: To determine the quality of relationship with Axis Bank.

Relationship Quality

Excellent

Good

Average

Fair

Poor

FINDINGS:

Maximum customers are happy with the way they are getting services and the quality of the relationship they have with the Axis Bank. Almost everyone rates the Relationship Quality with Axis Bank between Excellent, Good & Average.

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ANALYSIS: To determine the other services used by the Axis Bank’s customers from other Banks.

FINDINGS:

Existing Priority Customers are also availing different services from Banks other than Axis Bank. Major protion of the services availed is covered by Fixed Deposits and Demat Accounts.

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ANALYSIS: To determine the Professional Services required by customers.

FINDINGS:

13 out of 31 customers require a Financial Advisor and Porfolio Manager, who can advise them with their investments. Businessmen require the services of Chartered Accountsnt.

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ANALYSIS:

To determine the frequency of visits to the Bank by Priority Customers.

FINDINGS:

Management professionals, retired customers and service class customers are the one who hardly go to the banks for performing any transactions and customers from business class are the one who visit bank very frequently.

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Chapter- 6

RECOMMENDATIONS

As the research was conducted with the objective of understanding the concept of Priority Banking launched by Axis Bank, customer’s expectations from the priority services and suggesting the remedial course of action for Axis Bank in regards to Priority Banking.

Recommendations made:

• The target customers should be customers from all age groups and specifically from the age group of 50 & above, as these customers, due to their age constraints, would like to have services without visiting the bank.

• The Relationship Managers should improve their Presentation skills, should do

regular follow-ups and should improve decision taking skills as well.

• Axis Bank should start using some more Promotional Measures other than its own Welcome Kit. Welcome Kit will only target the existing customers but not the general public. The bank should opt for the following promotional

measures:

- Brand Ambassador

- Advertisements- Television and News Papers

- Hoardings

• The company should aim at improving the Promotion of Priority Banking Segment of Axis Bank.

• Demat and Fixed deposits are the services which the existing customers of Axis Bank are availing from other Banks as well. The bank should work to capture these two markets as well so as to increase its overall volume.

• The Customers are also availing services of Professionals like Financial Advisors, Portfolio Managers and Chartered Accountants from outside. To grab some more customers Axis Bank should think of providing these services as well.

• The Credit giving regulations of Axis Bank is quite stringent, which, on one hand pulling the NPAs down but also affecting the bank’s credit business.

• Proper training should be given to the staff so that the staff can improve their skills.

• The problem of Pin Codes is the major problem as far as i-connect banking is concerned. There is a huge scope to improve this particular area at Axis Bank.

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• The downgrading limit of the Priority Customers should be either reduced or some more provisions should be kept to attract the new customers and retain the existing ones.

• If the good amount of Fixed Deposits are their in the Bank of a particular customers than the limit of Rs. 1,00,000 minimum balance for a priority

account should be made flexible.

• The facility of Delivery/pickup of Cash/cheque should be improvised so as to remove this limitation as compared to Standard Chartered Bank.

• The ATM withdrawal per day limit should also be revised from Rs. 50, 000/- per day as ABN AMRO Bank is offering Rs. 1,00,000/- per day withdrawal limit.

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Chapter- 7

BIBLIOGRAPHY

� Kothari, C.R. 2004, Research Methodology : Methods & Techniques, New Age International Pvt. Ltd Revised Second Edition, New Delhi.

� Journal � Times of India � International Business Times.

References

� www.axisbank.com � wikipedia.org/wiki/Axis_Bank � www.moneycontrol.com/india/.../banks.../axis-bank/AB16 � www.business-beacon.com/kommon/bin/sr.php?kall... � connect.in.com/profile/Axis_Bank/292983 � money.rediff.com/companies/axis-bank-ltd/.../balance-sheet � in.reuters.com/money/quotes/incomeStatement?symbol � www.financialexpress.com/news/...Bank...Axis-Bank/207688/ � www.standardchartered.co.in/ � www.abnamro.com/worldwide/countrydisplay.cfm?...3048 � www.icicibank.com/ � www.hdfcbank.com � www.hsbc.co.in � http://epaper.timesofindia.com//? � http://epaper.timesofindia.com/Daily/skins/ETNEW/welcome.asp?QS=Daily

%3DETM%26showST%3Dtrue%26login%3Ddefault%26pub%3DET

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Chapter- 8

ANNEXURE

Questionnaire for Priority Bank Customers.

Priority Banking Axis Bank

Name:

Age Below 20 yrs. 20-30 yrs. 30-40 yrs. 40-50 yrs. 50 yrs. and above

Education Matriculation Undergraduate Graduate Professional Post- Graduate

Occupation Management Professional Medical Practitioner Service C.A./C.S./Lawyer Banker Businessman Others…………………………..

Your approximate annual household income

upto Rs.10 Lakhs Rs. 10-20 Lakhs Rs. 20-30 Lakhs Rs. 30-40 Lakhs Rs. 40 Lakhs & above

How satisfied are you with the services you received from your Relationship Manager?

Very satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Dissatisfied

What are the strong points of your Relationship Manager?

Wise Dedication Spontaneous Decision Taking Skills Knowledge about the products

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What are the weaknesses of your Relationship Manager?

Weak presentation Skills Less Knowledge about the

products No regular follow-ups Less customer contacts

Rate your Relationship Manager on the scale of 5 5- Highest +ve 1- Lowest -ve

1 2 3 4 5

How satisfied are you with the speed in which the services/ products are delivered?

Very satisfied Somewhat satisfied Neither satisfied nor dissatisfied Somewhat dissatisfied Dissatisfied

You came to know about Priority Banking via:

Axis Bank’s Welcome Kit Friends Relatives Promotions Walk-ins

How easy was it to find the information on the scheme?

Very Easy Easy Difficult Very Difficult

Would you recommend your friends/relatives for Priority Banking Services of Axis Bank?

Yes No

How do you rate the overall quality of your relationship with Axis Bank, considering all of your experiences with them?

Excellent Good Average Fair Poor

Do you have any other relationship with Axis Bank?

ATM Cards Bonds Car Loans Credit Cards Current Account Fixed Deposits Others…………………………..

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Do you have an account with other bank(s)?

Loans Demat Savings Account Fixed Deposits Current Account No other Account Others…………………………..

Do you use the services of : Chartered Accountant Financial Advisor Portfolio Manager Not Required

Which of the following services do you use?

Mobile Banking Internet Banking Phone Banking Relationship Manager

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Chapter- 9

CASE STUDY

Relationship Management

As Priority Banking deals with the customers who have been given priority over the general customers of the bank. There are certain requirements to be complied with for becoming priority customers of the bank and thus, in return these customers look forward to receive some more and very special services which general customers do not receive. They look forward to special treatment regarding their queries and transaction processing as well.

Abstract

As Mr. Dalal walks into the Priority Banking Floor, the bellboy rushes forward to open the door and to take him at the reception area. Mr. Dalal asked for Mr. Sameer Shawney, with whom he has been dealing for long. The person at the reception informed Mr. Dalal that Mr. Sameer has been transferred to some other branch and all his customers will be taken care off by Mr. Rohit Shah, a newly appointed Relationship Manager (Due to lack of staff Mr. Rohit has not been given any training). The Receptionist also informed Mr. Dalal that his appointment has also been fixed with Mr. Rohit and the reasons for your visit have also been communicated to him. The bellboy took Mr. Dalal to Mr. Rohit, who greeted him and offered him couch to sit. Mr. Rohit asked for Mr. Dalal’s introduction and the reason for his bank visit. Mr. Dalal was a bit surprised with this question of Mr. Rohit as the reason for his visit has already been communicated to Mr. Rohit as per the Receptionist’s statement but Mr. Dalal did not reacted on this and introduced him self and informed him the reasons for his visit as well. Mr. Dalal wanted to know the details of all the Insurance Policies and Mutual Funds he has invested in and their market responses as Mr. Dalal is looking forward to sell off all the Mutual Funds and would like to have a Fixed Deposit of Rs. 10 lakhs and take some more Life Insurance Policies as well. This whole act of informing Mr. Rohit took almost 30 minutes, which made Mr. Dalal a bit uncomfortable.

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Mr. Rohit again asked him regarding the types of Mutual Funds he has invested into and the Insurance Policies expiry dates. This made Mr. Dalal rougher than ever. Finally, Mr. Dalal asked Mr. Rohit to find all this information because being a priority customer it’s the duty of the RM to take a note of everything. Mr. Rohit started checking his records; this process took almost 1 hour. In the mean while Mr. Dalal lost his patience and he complained the Branch RM for the careless behavior of Mr. Rohit and moved out of the Bank, without making any fixed deposit decision for which he came to the bank.

Questions:

1) What was wrong with the behavior of Mr. Rohit?

2) What should be the remedial action for the above stated problem?

3) What more should be done to handle such situations?

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Suggested Solution

Sol. 1) Mr. Rohit, who is Relationship Manager, should have paid full attention towards the client. It is a part of RM’s duty to know everything about the customer he has to handle. Mr. Rohit, after being aware of the arrival of Mr. Dalal, had not prepared for reasons for his arrival. RM should be very attentive and as Mr. Rohit had given an appointment for Mr. Dalal, he should have recognized Mr. Dalal, as soon as Mr. Dalal introduced himself. Moreover, Mr. Rohit should have prepared and ready with all the details of Mr. Dalal’s past dealings with the bank, so that he could give him solutions to Mr. Dalal’s queries and could show his spontaneity and quick decision making skills. The carelessness and delay in getting the solutions for his queries had made Mr. Dalal lost his patience, thus making him move out of the bank. Sol. 2) The remedial action should be that the Branch Relation ship Manager should ask Mr. Rohit to study the past banking transaction done by Mr. Dalal with the bank. Mr. Rohit should calculate the Market response of Mr. Dalal’s Mutual Fund Investments and all the feasible L.I.C. policies as per Mr. Dala’s requirements. After this exercise, Mr. Rohit should call Mr. Dalal and should show his apology on the earlier incident. In order to maintain the relation, he should either request Mr. Dalal to visit the bank once again or should seek his acceptance for getting his queries solved at his residence. Sol. 3) Customer data is one of the most important information that companies use to personalized their services. The database of its own customers is a strong competitive tool. In other words, this proprietary information can provide a company with a strong competitive advantage when dealing with its own customers.

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Relationship

Initiatives

Business

Operations

Technology Strategy

Profit

Measures Improve

Process

Product

Learning

Plan

Implement Evaluate

Communicate

Relationship

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Customer Experience Management CEM represents the processes and methods that are employed to design and manage a customer’s entire experience with a product or a service. Companies use customer feedback and overall deeper understanding into the customer’s needs, wants, and requirements, to create CEM solutions. A successful company builds and retains clientele by concentrating on providing an experience customers would want to recreate. Every time a customer interacts with a company, he/she has a certain experience. The company captures these experiences as feedback. The feedback helps the company understand the customer’s expectations from the product or service, and the company can work backwards and change the existing product or service to meet customer expectations. It is important for the company to select the people involved in the improvement with care. The people chosen should be trained and given all the technological tools they need to do a good job. They should also be able to perceive customer needs and try to meet them. The front line and support staff should have the right attitude, interest and enthusiasm to make the service experience a memorable one for the customers.

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Chapter- 10: SYNOPSIS

AXIS BANK

Priority Banking

Student’s Name: Aman Kapoor Industry Guides: Mr. Rajat Sharma- NRI Services Mrs. V. Sitalakshmi- Priority Banking Mrs. Priyanka Nautiyal- Priority Banking Faculty Guide: Col. KS Mohan The primary objective of this project was to understand the concept of priority banking and promotional measures used by Axis Bank. And suggesting remedial course of actions for improving this particular segment. The secondary objective is to make a comparison of Axis Bank with other competitors and suggesting remedial actions. The findings after doing the research work was that the bank’s priority segment covers the customers from all age groups but customers from age group of 50 yrs. & above are more attracted towards priority banking. Most customers and qualified and come from all income groups & educational back grounds. Customers are somewhat satisfied with the services given by their Relationship Managers. Thus, maximum customers are interested in performing any banking transaction through their Relationship Manager. Their wise behavior and good knowledge of the products are their strengths but they are weak as far as their presentation skills are concerned. Credit cards, ATM cards and fixed deposit are the major services customer’s opt under priority banking because plastics money is today’s trend and fixed deposits help customers to become priority customers. The promotional measures used by the bank is either its own welcome kit, which can only attracts existing customers to the priority segment or the pamphlets.

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The conclusions drawn on the basis of the project work

done were that:

• The target customers should be customers from all age groups and specifically from the age group of 50 & above, as these customers, due to their age constraints,

would like to have services without visiting the bank.

• The Relationship Managers should improve their Presentation skills, should do regular follow-ups and should improve decision taking skills as well. Proper training programmes should be organized.

• Axis Bank should start using some more Promotional Measures other than its own Welcome Kit. Welcome Kit will only target the existing customers but not the general public. The bank should opt for the following

promotional measures:

- Brand Ambassador

- Advertisements- Television and News Papers

- Hoardings

• The Customers are also availing services of Professionals like Financial Advisors, Portfolio Managers and Chartered Accountants from outside. To grab some more customers Axis Bank should think of providing these services as well.

• The Credit giving regulations of Axis Bank is quite stringent, which, on one hand pulling the NPAs down but also affecting the bank’s credit business.

• The problem of Pin Codes is the major problem as far as i-connect banking is concerned. There is a huge

scope to improve this particular area at Axis Bank.

• The downgrading limit of the Priority Customers should be either reduced or some more provisions should be kept to attract the new customers and retain

the existing ones.

• If the good amount of Fixed Deposits are their in the Bank of a particular customers than the limit of Rs. 1,00,000 minimum balance for a priority account should be made flexible.

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Perception about the industry guide:

My industry guide, Mr. Rajat Sharma- NRI Banking, Mrs. V. Sitalakshmi- Priority Banking and Mrs. Priyanka Nautiyal- Priority Banking, are not only the thorough professionals but also very intelligent persons. They all have immense knowledge in their respective fields. They have guided me with patience and explained me the intricacies of the project, made me aware of my goals and showed me the way in which I should achieve them. They not only taught me professionalism but also have been friends, guides and mentors during my period of training. It has bean a pleasure working with them and I hope that in future also I encounter people of their caliber and patience.