Marketing Stragegy of Axis Bank
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Transcript of Marketing Stragegy of Axis Bank
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SYNOPSIS
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SYNOPSIS
This project discusses marketing strategies of Axis bank and its competitors.
The researcher has talked about the products and services offered by the
company and the techniques of marketing towards its customers.
In chapter one, this project gives a brief introduction to the Indian Banking
industry. This chapter discusses the rapidly growing banking sector in India,
and various other points of importance.
In the introduction to the company, the history of the company is discussed
along with recent developments as well as its importance in India.In the research methodology chapter, the title of the project is given and
justified. The objective of the research is mentioned, scope and significance
of the research both to the company as well as to the researcher is explained.
The research technique and sampling method is given. Lastly the limitations
of the research have been mentioned.
In the facts and findings various sources through which information has been
collected are given.
Data analysis and interpretation is a combination reasons of the pie charts,
Graphs and conclusions derived from them.
Lastly the summary and conclusion describe the researchers personal
conclusions of the research.
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INTRODUCTION
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1 .1 OVERVIEW OF INDUSTRY AS A WHOLE
Indian Banking Sector
The Indian banking has come from a long way from being a sleepy business Institution
into a highly proactive and dynamic entity. This transformation has been largely brought
about by the large dose of liberalization and economic reforms that allowed banks to
explore new business opportunities rather than generating revenues from conventional
streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30
banking units contributing to almost 50% of deposits and 60% of advances. Indian
nationalized banks (banks owned by the government) continue to be the major lenders in
the economy due to their sheer size and penetrative networks which assures them highdeposit mobilization. The Indian banking can be broadly categorized into nationalized,
private banks and specialized banking Institutions. The Reserve Bank of India acts as a
centralized body monitoring any discrepancies and shortcoming in the system. It is the
foremost monitoring body in the Indian financial sector. The nationalized banks (i.e.
government-owned banks) continue to dominate the Indian banking arena. Industry
estimates indicate that out of 274 commercial banks operating in India, 223 banks are in
the public sector and 51 are in the private sector. The private sector bank grid also
includes 24 foreign banks that have started their operations here. Under the ambit of the
nationalized banks come the specialized banking institutions. These co-operatives, rural
banks focus on areas of agriculture, rural development etc., unlike commercial banks
these co-operative banks do not lend on the basis of a prime lending rate. They also have
various tax sops because of their holding pattern and lending structure and hence have
lower overheads. This enables them to give a marginally higher percentage on savings
deposits. Many of these cooperative banks diversified into specialized areas
(catering to the vast retail audience) like car finance, housing loans, truck finance
etc. In order to keep pace with their public sector and private counterparts, the co-
operative banks too have invested heavily in information technology to offer high-
end computerized banking services to its clients.
The Indian banking has finally worked up to the competitive dynamics of the new
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Indian market and is addressing the relevant issues to take on the multifarious challenges
of globalization. Banks that employ IT solutions are perceived to be futuristic and
proactive players capable of meeting the multifarious requirements of the large
customers base. Private banks have been fast on the uptake and are reorienting their
strategies using the internet as a medium The Internet has emerged as the new and
challenging frontier of marketing with the conventional physical world tenets being just
as applicable like in any other marketing medium.
The Reserve Bank of India (RBI) is Indias central bank. Though public sector banks
currently dominate the banking industry, numerous private and foreign banks exist.
India's government-owned banks dominate the market. Their performance has been
mixed, with a few being consistent profitable. Several public sector banks are being
restructured, and in some the government either already has or will reduce its ownership.
Private and Foreign Banks
The RBI has granted operating approval to a few privately owned domestic banks; of
these many commenced banking business. Foreign banks operate more than 150 branches
in India. The entry of foreign banks is based on reciprocity, economic and political
bilateral relations. An inter-departmental committee approves applications for entry and
expansion.
Capital Adequacy NormForeign banks were required to achieve an 8 percent capital adequacy norm by March
1993, while Indian banks with overseas branches had until March 1995 to meet that
target. All other banks had to do so by March 1996. The banking sector is to be used as a
model for opening up of Indias insurance sector to private domestic and foreign
participants, while keeping the national insurance companies in operation.
Banking
India has an extensive banking network, in both urban and rural areas. All large Indianbanks are nationalized, and all Indian financial institutions are in the public sector.
RBI Banking
The Reserve Bank of India is the central banking institution. It is the sole authority for
issuing bank notes and the supervisory body for banking operations in India. It supervises
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and administers exchange control and banking regulations, and administers the
governments monetary policy. It is also responsible for granting licenses for new ban
branches. 25 foreign banks operate in India with full banking Licenses. Several licenses
for private banks have been approved. Despite fairly broad banking coverage nationwide,
the financial system remains inaccessible to the poorest people in India.
Indian Banking System
The banking system has three tiers. These are the scheduled commercial banks; the
regional rural banks, which operate in rural areas, not covered by the scheduled banks;
and the cooperative and special purpose rural banks.
Scheduled and Now Scheduled Banks
The Indian banking can be broadly categorized into nationalized (government Owned),
Private Banks and specialized banking institutions, The Reserve Bank of India acts a
centralized body monitoring any discrepancies and shortcoming in the System. Since the
nationalization of banks in 1969, the public sector banks or the nationalized banks have
acquired a place of prominence and has since then seen tremendous progress. The need to
become highly customer focused has forced the slow-moving public sector banks to adopt
a fast track approach. The unleashing of products and services through the net has
galvanized players at all levels of the banking and financial institutions market grid to look
anew at their existing portfolio offering. Conservative banking practices allowed Indian
banks to be insulated partially from the Asian currency crisis. Indian banks are now
quoting at higher valuation when compared to banks in other Asian countries (viz. Hong
Kong,
Singapore, Philippines etc.) that have major problems linked to huge Non Performing
Assets (NPAs) and payment defaults. Co-operative banks are nimble footed in approach
and armed with efficient branch networks focus primarily on the high revenue niche
retail segments.
There are approximately 80 scheduled commercial banks, Indian and foreign; almost 200
regional rural banks; more than 350 central cooperative banks, 20 land development
banks; and a number of primary agricultural credit societies. In terms of business, the
public sector banks, namely the State Bank of India and the nationalized banks, dominate
the banking sector.
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MARKET SHARE
Types of Banks
State Bank of India and
Associates08
Nationalized Banks 19
Domestic Private Sector Banks 25
New Domestic Private Sector
Banks09
Foreign Banks 29
Complementing the roles of the nationalized and private banks are the specialized
financial institutions or Non Banking Financial Institutions (NBFIs). With their focused
portfolio of products and services, these Non Banking Financial Institutions act as an
important catalyst in contributing to the overall growth of the financial services
sector. NBFIs offer loans for working capital requirements, facilitate mergers and
acquisitions, IPO finance, etc. apart from financial consultancy services. Trends are now
changing as banks (both public and private) have now started focusing on NBFC domains
like long and medium-term finance, working cap requirements. IPO financing to etc. tomeet the multifarious needs of the business community.
Commercial FinancingCommercial Financing
7
80%
3%
5%6%
6%
National Banks
Corporation Banks
Private Banks
Multinational Banks
Money Lenders &
Others
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The commercial financing model in Indian banking can be broadly categorized into
project finance and working capital finance. These two segments form the pivot around
which banks operate.
ProjectFinance
Banks offer long term and short terms loans to business houses, corporations to setup
their projects. These loans are disbursed after the approval from the banks core credit
validating committee. In India, there are 11 national level land 46 state level financial
and investment institutions that cater to long term funding requirements of the industry.
The project finance segment is highly competitive with various players
Offering innovative schemes to entice corporate.
Working Capital
In order to meet the diverse needs and requirements of the business community, banks
offer working capital funds to corporate. Working capital finance is specialized line of
business and is largely dominated by the commercial banks. The Indian banking saw
dramatic changes in the last decade or so ever since the advent of liberalization and
Indias integration with the world economy. These economic reforms and the entry of
private players saw nationalized banks revamp their service and product portfolio to
incorporate new, innovative customer-centric schemes. The Indian banking finally woke
up to the surging demands of the ever-discerning Indian consumer. The need to become
highly customer focused (generated by high competitive levels) forced the slow-moving
public sector banks to adopt a fast track approach. Taking a leaf out of the private sector
banks, the public sector banks too went for major image changes (including corporate
brand building exercises) and customer friendly schemes. These customer friendly
programs included revamping of the product and service portfolio by introducing new
product & service schemes (like credit cards, hassle-free housing loan schemes,
educational loans and flexi-deposit schemes) integration of the branch network by using
advance networking technology and customer personalization programs (through ATMs
and anytime banking etc.). Many banks have started capitalizing on the recent stock
market surge by adding (Initial Public Offering) IPO financing options and schemes in
their product mix. IPO finance has received a positive response from the investors and
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is becoming popular amongst the business community. The objective of all these
strategies was very clear to bridge the service & product gap that was inherent in the
banking system. To cater to the increasing customer demands and the surge in business
volumes, many public sector banks have ploughed back funds to invest heavily in
technology upgrades and
systems like LANs, WANs, VSATs etc. Marketing and brand building programs were
also given a new thrust in the new liberalized banking scenario. Promotional budgets
were hiked to cater to the new and large discerning target audience. Banks were now
keen on marketing their products and service though various mediums to reach their core
customers. Direct marketing, Internet marketing, hoarding, press ads, television
sponsorships, image makeovers etc. became an integral part of a banks marketing mix.
To meet the personalized needs of the customer and in order to differentiate its services,
banks repositioned themselves in specialized fields, like housing loans, car finance,
educational loans etc. to optimally service the customer. Permission marketing became
the new strategy that banks began to propound i.e. feeding the customer (with his or her
consent) with product and service information and thereby enticing him towards the
banks product service portfolio.
New Generation BankingThe liberalize policy of Government of India permitted entry to private sector in the
banking, the industry has witnessed the entry of nine new generation private banks. The
major differentiating parameter that distinguishes these banks from all the other banks in
the Indian banking is the level of service that is offered to the customer. Verify the focus
has always been centered on the customer understanding his needs, preempting him and
consequently delighting him with various configurations of benefits and a wide portfolio
of products and services. These banks have generally been established by promoters of
repute or by high value domestic financial institutions. The popularity of these banks
can be gauged by the fact that in a short span of time, these banks have gained
considerable customer confidence and consequently have shown impressive growth rates.
Today, the private banks corner almost four per cent share of the total share of deposits.
Most of the banks in this category are concentrated in the high-growth urban areas in
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metros (that account for approximately 70% of the total banking business). With
efficiency being the major focus, these banks have leveraged on their strengths and
competencies viz.
Management, operational efficiency and flexibility, superior product positioning and
higher employee productivity skills. The private banks with their focused business and
service portfolio have a reputation of being niche players in the industry. A strategy that
has allowed these banks to concentrate on few reliable high net worth companies and
individuals rather than cater to the mass market. These well-chalked out integrates
strategy plans have allowed most of these banks to deliver superlative levels of
personalized services. With the Reserve Bank of India allowing these banks to operate
70% of their businesses in urban areas, this statutory requirement has translated into
lower deposit mobilization costs and higher margins relative to public sector banks.
Capital Market
Stock market volatility touches every participant directly/indirectly in the capital market.
General feeling is that the stock markets worldwide have become very fragile in the recent
past on account of various developments such as Asian crisis. Brazil Real fall and Russian
debacle. Many far-reaching stock reforms have been introduced in the Indian market for
the last few years. These reforms, in turn, changed market structure. Changing market
structure influences nature of stock price behavior.
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COMPANY PROFILE
ABOUT AXIS BANK
Axis 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) and General Insurance
Corporation of India (GIC) and other four PSU insurance companies, i.e. National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental
Insurance Company Ltd. and United India Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding
(other than promoters) at 57.60%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at
Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices
and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a
day banking convenience to its customers. This is one of the largest ATM networks in the
country.
The Bank has strengths in both retail and corporate banking and is committed to adopting
the best industry practices internationally in order to achieve excellence.
Promoters
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the
country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing
Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5
crore each.
SUUTI - Shareholding 27.11%
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963,
with a view to encourage savings and investment. In December 2002, the UTI Act, 1963
was repealed with the passage of Unit Trust of India (Transfer of Undertaking and
Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2
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entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the
Act, the Undertaking specified as UTI I has been transferred and vested in the
Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who
manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds
with a Unit Capital of over Rs. 14167.59 crores.
The Government of India has currently appointed Shri K. N. Prithviraj as the
Administrator of the Specified undertaking of UTI, to look after and administer the
schemes under UTI - I, where Government has continuing obligations and commitments
to the investors, which it will uphold.
Shareholding PatternAs on 30/06/2008
Sr.
No.
Name of the Shareholders No. of
Shares Held
% Staketo
Total
A. Promoter Shareholding
1. Administrator of the Specified Undertaking of the
Unit Trust of India -UTI - I (SUUTI)
9,72,24,373 27.11
2. Life Insurance Corporation of India 3,71,95,831 10.37
3. General Insurance Corporation of India 81,23,331 2.27
4. The New India Assurance Company Limited 38,06,443 1.06
5. National Insurance Company Limited 26,81,740, 0.75
6. United India Insurance Company Limited 16,16,415 0.45
7. The Oriental Insurance Company Limited 14,89,118 0.42
Total Promoter Shareholding A 15,21,37,251 42.43
B. Non-Promoter Holding
8. Indian Financial Institutions (IFIs) 37,23,819 1.04
9. Mutual Funds 2,90,63,376 8.11
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10. Others (Individuals/Corporate
Bodies/HUF/Trusts/Banks)
4,24,54,676 11.84
Total Non-Promoter Indian Shareholding - B 7,52,41,871 20.99
C. Foreign Shareholding
11. FDI Route - GDRs Issue (2005 & 2007) 1,36,72,028 3.81
12. Foreign Financial Institutions (FIIs) 11,19,02,720 31.21
13. NRIs/OCBs/FBD 56,10,661 1.56
Total Non-Promoter Foreign Shareholding - C 13,11,85,409 36.58
Total A + B + C 35,85,64,531 100.00
Board of Directors
The Bank has 10 members on the Board. Dr. P. J. Nayak is the Chairman and CEO of the Bank.
The members of the Board are:
Dr. P.J. Nayak Chairman & CEO
Shri N.C. Singhal Director
Shri A.T. Pannir Selvam Director
Shri J.R. Varma Director
Dr. R.H. Patil Director
Smt. Rama Bijapurkar Director
Shri R.B.L. Vaish Director
Shri M.V. Subbiah Director
Shri Ramesh Ramanathan Director
Shri K. N. Prithviraj Director
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
Sept-07 Axis Bank ties up with Banque Prive Edmond de Rothschild Europe for Wealth
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Management
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
June-07 UTI Bank's expansion into Asia supported by FRS
May-07 UTI Bank launches 'Spice Rewards' on the bankcards - India's first-ever merchant-
supported rewards program
April-07 UTI Bank opens a Financial Services Category I Branch in the DIFC in Dubai
Mar-07 UTI Bank ties up with Hyundai Motor India Ltd. for Car Loans
Mar-07 UTI Bank ties up with IIFCL to provide finance for infrastructural projects in the
country
Mar-07 UTI Bank launches Car Loans in association with Maruti Udyog Ltd
Mar-07 UTI Bank opens a Full Licence Bank Branch in Hong Kong
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
Feb-07 LIC Premium payment now through UTI Bank Branches
Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata
Nov-06 UTI Bank opens Priority Banking Lounge in Pune
Sep-06 UTI Bank launches operations of UBL Sales, its Sales Subsidiary - Inaugurates its
first office in Bangalore
Aug-06 UTI Bank announces the launch of its Credit Card Business
Aug-06 UTI Bank becomes the first Indian Bank to successfully issue Foreign Currency
Hybrid Capital in the International Market
Aug-06 UTI Bank Business Gold Debit Card MasterCard Launched - Designed for
business related spending by SMEs and self employed professionals
Aug-06 UTI Bank announces the scheme of issuance of "Senior Citizen ID Card" in
association with Dignity Foundation
Aug-06 UTI Bank rolls out its 2000th ATM
July-06 UTI Bank opens Representative Office in Shanghai
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May-06 UTI Bank and LIC join hands to launch an Annuity Card for group pensioners of
LIC
May-06 UTI Bank ties up with Geojit Financial Services to offer Online Trading service to
its customers
Apr-06 UTI Bank opens its first international branch in Singapore
Jan-06 UTI Bank and UTI Mutual Fund to launch a new service for sale and redemption
of mutual fund schemes through the Bank's ATMs across the country
Dec-05 UTI Bank wins International Financing Review (IFR) Asia 'India Bond House'
award for the year 2005
Oct-05 UTI Bank extends banking services to the rural milk producers in Anand and
Kheda districts in Gujarat
July-05 UTI Bank and Visa International launch Mobile Refill facility - Anytime,Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India
May-05 UTI Bank and Bajaj Allianz join hands to distribute general insurance products
Apr-05 UTI Bank launches Smart Privilege - a special bank account designed for women
Mar-05 MTNL ties up with UTI Bank for payment of telephone bills through the Bank's
ATM network
Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$ 239.30 million
through Global
Mar-05 Depositary Receipts (GDRs)
Feb-05 UTI Bank appointed by Government of Karnataka as the sole banker for the
Bangalore One (B1) project
Feb-05 UTI Bank launches a powerful version of Kisan Credit Card
Jan-05 UTI Bank ties up with Remit2India to launch the Remittance Card
Mar-04 UTI Bank enables premium payment of LIC policies through its ATMs.
Feb-04 Bilateral arrangement between State Bank of India (and its 7 associate member
banks) and UTI Bank. comes into force with the commencement of operations (as
on 3rd February '04) of the combined network of over 4000 ATMs
Feb-04 UTI Bank (by pursuing a proactive strategy of forging bilateral agreements and
being a progressive player in the multi-lateral consortiums for shared ATM
network) offers its customers access to over 7000 ATMs across the country - the
largest to be offered by any bank in India so far.
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Dec-03 Bank inaugurated its ATM at Thegu near the Nathula Pass in Sikkim. This ATM
is at the highest altitude in India.
Sep-03 The Bank's ATMs across the country crosses the thousand mark
Sep-03 Bank launches the Travel Currency Card.
Aug-03 The Bank's Debit Card crosses the one million mark.
Aug-03 Total Advances cross Rs 7,000 Crore.
May-03 Bank declares a net profit of Rs 192.18 crores for FY03, a growth of 43% over the
previous year
Mar-03 Bank signs Agreement with Employees Provident Fund Organization (EPFO) for
disbursement of Pension
Mar-03 Bank crosses the 800 ATM mark
Mar-03 The Bank issues 3,83,62,834 fully paid up equity shares totaling to Rs. 164.00
crores, through a
Mar-03 Preferential offer to Life Insurance Corporation of India (now constituting 13.54%
of
Mar-03 the Bank's expanded equity), Citicorp Banking Corporation, Bahrain (holding
3.84%), ChrysCapital I,
Mar-03 LLC, Mauritius (holding 3.84%) and Karur Vysya Bank Ltd.(constituting 1.00%)
The Bank also
Mar-03 Increases the authorised share capital of the Bank from Rs. 230 crores to Rs. 300
crores.
Feb-03 Bank, in a pioneering move, launches the AT PAR Cheque facility, free of cost,
for all its Savings Bank customers.
Feb-03 Bank wins mandate to set up 14 ATMs at the Western Railway stations along the
Mumbai division.
Oct-02 Bank launches Corporate iConnect? - the Internet Banking facility for Corporates
Aug-02 Bank signs MoU with BSNL regarding bill collection services across the country
through both online and offline channels.
Apr-02 Bank opens its 500th ATM
Mar-02 Deposits Cross Rs.12, 000 Crore
Jan-02 The Bank's 100th branch opens at Tuticorin,Tamilnadu
Jan-02 The Bank opens an ATM at the Gol Dak-Khana, i.e. the New Delhi GPO, making
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it the first instance of a commercial bank setting up an ATM at any post-office in
the country.
Dec-01 Total Advances cross Rs 5,000 Crore
Nov-01 The deposit base for the Bank crosses Rs. 10,000 Crore
Sep-01 Private placement of 26% stake in the Bank to CDC Capital Partners. UTI holding
reduces to 44.88%
Aug-01 Bank signs MoU with India Post for introducing value added financial products
and services to customers of both organizations, including setting up of UTI Bank
ATMs in post offices.
July-01 Bank ties up with Govt of Andhra Pradesh for collection of commercial tax
Dec-00 Bank opens its 200th ATM. It becomes the 2nd largest ATM network in the
country, a position held even today.Oct-00 Bank becomes fully networked
July-00 E-commerce initiatives announced
July-00 Financial Advisory Services offered beginning with marketing of US 64
Apr-00 UTI Bank calls off its proposed merger with Global Trust Bank and surges ahead
on its own.
Apr-00 Bank launches its Internet banking module, iConnect Retail loans introduced for
the first time by the Bank
Mar-00 Profits cross Rs 50 crore mark for the first time.
Feb-00 Bank adopts Finacle software from Infosys for core banking
Jan-00 Dr.P.J Nayak takes over as Chairman and Managing Director from Shri Supriya
Gupta.
Sep-99 Cash management services (CMS) launched, Co branded credit card launched
Mar-99 Deposits cross Rs.3000 crores
Sep-98 UTI Bank goes public with a Rs. 71 crore public issue; Issue over-subscribed 1.2
times, over 1 lakh retail investors. UTI holding reduces to 60.85%
Jun-96 Crosses Rs.1000 crore deposit mark
Mar-95 Completes first profitable year in operation
Apr-94 First branch of UTI Bank inaugurated at Ahmedabad by Dr. Manmohan Singh,
Hon'ble Finance Minister, Government of India.
Dec-93 UTI Bank comes into being
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Dec-93 Registered office at Ahmedabad; Head office at Mumbai
Chairman & CEO's Message
Welcome to the website of Axis Bank. Whether you are a customer or a visitor to thissite, let me tell you a little about the Bank and the various services which it offers.
At Axis Bank, it has been our constant endeavour to bring a sharper focus to the
requirements of our customers and we strive to leverage cutting-edge technology to
provide the highest levels of service to you. We are one of the few banks in India which
has built up a fully integrated centralised banking architecture to offer you banking
services anywhere, anytime. Our Internet banking initiative also provides convenience
and real time transaction services. We recognize the importance of the Internet as an
increasingly indispensable medium of communication and commerce. We endeavour,
therefore, to bring to you through this website a whole range of banking services. At
present our Internet Banking module, iConnect, allows you to view all your accounts
with us, including savings, current and depository accounts, for transactions and balance
details, and to transfer funds between accounts within the Bank. We provide facilities for
bill payments, NRI services, a shopping mall, financial advice and retail loans. Through
our Bill Pay service on the net, you can pay your bills online. At the Shopping Mall you
can shop online. The NRI Services channel offers remittance facilities and a lot more to
Non-Resident Indians.
Notwithstanding the immense benefits that Internet Banking brings, the Bank also has
other distribution channels. At the end of June 2008, the Bank increased its reach to 433
cities, towns and villages across the country through 713 Branches & Extension Counters
and 2904 ATMs. The Bank offers a complete range of retail and corporate services,
including retail loans, corporate and business credit, forex and trade finance services,
investment banking, depository services and investment advisory services. Our deposit
base currently stands at over Rs. 88,900 crores with over 89 lakh accounts.
The Bank's International Debit Card, which comes with the Savings Bank Account,
personalised and carrying a unique insurance cover for every account holder, has
received an excellent response from customers, with over 90 lakh debit cards having been
issued as at end June 2008. We were the first bank to offer the AT PAR Cheque facility,
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free of cost, to all our Savings Bank customers in all the places across the country where
the Bank is currently present. By virtue of this facility, customers can now use the AT
PAR cheque to make cheque payments (upto a ceiling of Rs. 50,000/- per instrument) to
any beneficiary at any of these places. We also offer the international Travel Currency
Card in eight currencies. The Travel Currency Card is a signature based pre-paid travel
card that enables travelers global access to their money, in the local currency of the
country they are visiting, in a safe and convenient way.
The Bank launched its Credit Card in Gold and Silver variants in August 2006, and these
are presently available in 56 cities across the country. Our latest offering is India's first
EMV standard based Platinum Credit Card.
I welcome you to Axis Bank and hope that you enjoy surfing through our website. And if
you are not already our customer, I invite you to become one, and to enjoy the Axis Bank
experience.
P.J. Nayak
Chairman & CEO
Our Mission and Values
Our Mission
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
Compensation Policy
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Objective of the Policy
The objective of this policy is to establish a system whereby the Bank compensates the
customer for any financial loss he/she might incur due to deficiency in service on the partof the Bank or any act of omission or commission directly attributable to the Bank
subject to the terms prescribed under Paragraphs on 'Award of Compensation' and 'Force
Majeure' at the end.
Scope of the Policy
The Policy is based on principles of transparency and fairness in the treatment of our
customers.
The Policy prescribes compensation only for financial losses which customers have
incurred due to deficiency in the services offered by the Bank which can be measured
directly and limited to compensation specified for respective service as given below. As
such, the commitments under this Policy are without prejudices to any of the rights the
Bank has/will have in defending its position before any forum duly constituted to
adjudicate the banker-customer disputes.
The policy covers areas relating to:
a. Erroneous debiting of account
b. Debits towards service charges
c. Payment of cheques after acknowledgement of stop payment instructions
d. Payment of interest to customers for delayed collection of instruments
e. Collection instruments lost in transit
f. Funds transfers using NEFT/RTGS
g. Foreign exchange services
h. Failure to execute standing instructions
Erroneous debiting of account
If the Bank has raised an erroneous direct debit to an account, the entry shall be reversed
immediately on being informed of the erroneous debit after verifying the transaction.
In the event, the erroneous debit has resulted in a financial loss to the customer by way of
reduction in the minimum balance applicable for payment of interest on Savings Bank
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deposit or payment of additional interest to the Bank in a loan account, the Bank shall
compensate the customer to the extent of such interest loss.
Erroneous transactions reported by customers in respect of Credit Card operations which
require reference to a merchant establishment will be handled as per the rules laid down
by the Card Association. Where a third bank is involved, compensation would be subject
to availability of information from the other bank.
Reversal of Erroneous Debits arising on Fraudulent or Other
Transactions
In case of any fraud, if the Bank is convinced that an irregularity/fraud has been
committed by its staff towards any constituent, it will at once acknowledge its liability
and pay the just claim.
In cases where the Bank is at fault, it will compensate the customer without demur.
In cases where neither the Bank nor the customer is at fault, but the fault lies elsewhere in
the system, the Bank will compensate the customers upto a limit of 25% of the loss
incurred by the customer subject to a ceiling of Rs 25,000/-. This will, however, not
preclude a higher compensation being paid outside of this policy, depending on the merits
of the case.
Bankers Fair Practice Code
About this code
This is a voluntary Code, which sets standards of fair banking practices for member
banks of Indian Banks' Association to follow when they are dealing with individual
customers. It provides valuable guidance to you for your day-to-day operations. The
Code applies to:
Current, savings and all other deposit accounts
Pension, ppf accounts etc. Operated as agents of rbi/government
Collection and remittance services offered by the banks
Loans and overdrafts
Foreign-exchange services
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Card products
Third party products offered through our network.
As a voluntary Code, it promotes competition and encourages market forces to achieve
higher operating standards for the benefit of customers. In the Code, 'you' denotes the
customer and 'we' the bank, the customer deals with. The standards of the Code are
covered by the four key commitments found in section 2. Unless it says otherwise, all
parts of this Code apply to all the products and services listed above, whether they are
provided by branches across the counter, over the phone, by post, through interactive
electronic devices, on the internet or by any other method.
Commitments outlined in this Code are applicable under normal operating environment.
In the event of force majeure, we may not be able to fulfill the commitments under this
Code.
This code shall come into effect from 1st September, 2004.
Key Commitments
Our key commitments to you
We promise to:
Act fairly and reasonably in all our dealings with you by:
meeting the commitments and standards in this Code, for the products and services we
offer, and in the procedures and practices our staff follow making sure our products and
services meet relevant laws and regulations our dealings with you will rest on ethical
principles of integrity and transparency.
Help you to understand how our financial products and services work by Giving you
information about them in plain Hindi and/or English and/or the local language
Explaining their financial implications and Helping you choose the one that meets your
needs.
Deal quickly and sympathetically with things that go wrong by:
Correcting mistakes quickly
Handling your complaints quickly
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Looking on our website; or
Asking our designated staff.
When you become a customer, we will give you information on the interest rates which
apply to your accounts, and when we will pay interest on your deposits or debit interest
on your loan accounts. We will also tell you our website address, and the other ways in
which you can find out about changes in the interest rates.
We will explain how we apply interest to your account.
Changes in Interest Rates
When we change the interest rates on our products, we will update the information on our
website within three working days.
Interest on Savings Accounts
At the time of opening of the account, we will inform you of the rate at which interest is
paid on your savings deposits [presently, it is regulated by Reserve Bank of India], how it
is calculated and its periodicity.
Charges
When you become a customer, we will give you upfront details of any charges applicable
to the products chosen by you.
You can also find out about our charges by: asking our staff at the branch where you have
your account looking on our website.
If we increase any of these charges or introduce a new charge, it will be notified at least
one month before the revised charges are levied / become due.
We will tell you the charge for any other service or product before we provide that
service or product, and at any time you ask.
We will give you details of any charges we levy for using ATMs.
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Terms and Conditions
When you become a customer or accept a product for the first time, we will give you the
relevant terms and conditions for the service you have asked us to provide.
All written terms and conditions will be fair and will set out your rights and
responsibilities clearly and in plain language. We will only use legal or technical
language where necessary.
Changes to Terms and Conditions
When you become a customer, we will tell you / notify about changes to terms and
conditions through our quarterly statement of accounts and the Bank's Website.
Normally, changes [other than interest rates] will be made with prospective effect giving
notice of at least one month. If the changes are to your disadvantage, you may close the
account at any time up to two months from the date of the notice without having to pay
any extra charges or interest for doing this.
Changes in the interest rates on our products [deposits and advances] from time to time
will be notified as per the Bank's policy/practice.
Advertising and Marketing
We will make sure that all advertising and promotional material is clear, fair, reasonable
and not misleading.
We will seek your specific consent for giving details of your name and address to any
third party, including other entities in our group, for marketing purposes.
We would like to provide you with the entire range of financial services products, some
of which are our own products while some others are the products of our
group/associate/entities or companies with whom we have tie-up arrangements. We will
however tell you about our associate / group entities or companies having business tie-up
arrangements with us and if you so desire, direct their staff / agents for marketing their
products.
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Account Operations
Statements
To help you manage your account and check entries on it, we will give you account
statements at regular intervals unless this is not appropriate for the type of account you
have [like an account where you have a passbook].
We will normally provide you with a statement periodically as per our policy. S/B
account statements are directly sent to customers address at quarterly intervals, and
Current account statement normally at monthly intervals. A customer may also obtain
monthly statement on S/B account from a branch on request.
You will also be able to see your last few transactions on ATM or through your internetaccount wherever such facilities are available with us.
We will also send you statement of accounts by e-mail, if you so desire, provided we
have such facility with us.
Clearing Cycle / Collection Services
We will tell you about the clearing cycle, including when you can withdraw money after
lodging collection instruments and when you will start to earn interest.
We will give immediate credit to your account for outstation cheques lodged by you and
will allow you to draw against such instrument[s] under collection as per prevailing RBI
guidelines. [Presently, instruments upto Rs.15,000 tendered by customers operating
accounts satisfactorily.]
We will pay interest on funds involved if collection is delayed beyond the normal period
as stipulated by RBI.
Cash Transactions
You should count notes and ensure correctness before leaving the cash counter.
Avoid writing anything on the face of the notes and co-operate with us by remitting notes
in unstapled / unstitched conditions as required under RBI's Clean Note Policy.
Direct debits and standing instructions
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We will act upon mandates given by you for direct debits [say ECS] and other standing
instructions.
Cheques issued by you
We will keep original cheques paid from your account or copies, for such periods as
required by law.
If, within a reasonable period after the entry has been made on your statement, there is a
dispute about a cheque paid from your account, we will give you the copy of the cheque
as evidence.
We will tell you how we will deal with unpaid cheques and out-of-date [stale] cheques.
Accounts operated/services rendered as agents of Government and RBI [applicable only
to banks authorized to handle the business]
While opening Pension Accounts or investing in Relief / RBI Bonds, we will tell you
about operational guidelines for such accounts / transactions.
Foreign exchange services offered through authorized offices
We will provide you details of the service, exchange rates and charges that apply to
foreign exchange transactions, which you are about to make. If this is not possible, we
will tell you how these will be worked out.
If you want to transfer money abroad, we will tell you how to do this and will give you:
A description of the services and how to use them details of when the money you have
sent abroad should get there and the reasons for possible delays the exchange rate applied
when converting to the foreign currency, and details of any commission or charges which
you will have to pay. If money is transferred to your bank account from abroad, we will
tell you the original amount received and charges, if any. If the sender has paid all
charges, we will not deduct charges when we pay the money into your account excepting
what is charged by our Foreign Correspondent Bank.
We will guide you about regulatory requirements or conditions relating to foreign
exchange services offered by us as and when required by you.
Protecting your Account
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We will tell you what you can do to help protect your accounts. You can find out more
about what you can do to help in section 11 of this Code.
In the event your cheque book, passbook or ATM/Debit card has been lost or stolen, or
that someone else knows your PIN or other security information, we will, on your
notifying us, take immediate steps to try to prevent these from being misused.
Cards and PINs
We will only send you a card if you ask for one or to replace a card you already have.
If you do not recognize a card transaction that appears on your statement, we will provide
you with more details. In some cases, we will need you to give us confirmation or
evidence that you have not authorized a transaction.
We will give you your PIN [Personal Identification Number] separately from your card.
We will not reveal your PIN to anyone else.
We will tell you about our systems to allow you to choose or change your PIN. This
should make it easier for you to remember the PIN of your choice.
Protection
ConfidentialityWe will treat all your personal information as private and confidential [even when you
are no longer a customer]. We will not reveal transaction details of your accounts to a
third party, including entities in our group, other than in the following four exceptional
cases when we are allowed to do
If we have to give the information by law
If there is a duty towards the public to reveal the information
If our interests require us to give the information [for example, to prevent fraud] but we
will not use this as a reason for giving information about you or your accounts [including
your name and address] to anyone else, including other companies in our group, for
marketing purposes
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If you ask us to reveal the information, or if we have your permission to provide such
information to our group/ associate /entities or companies when we have tie-up
arrangements for providing other financial service products.
Wherever we have installed CCTV for close surveillance as part of security
arrangements, the same will be indicated.
What You Can Do To Protect Your Accounts
This section is all about what you can do to help prevent your accounts being misused.
Communication Link
Please make sure you let us know as soon as possible when you change your:Name
Address
Phone number or
E-mail address [if this is how we communicate with you].
Checking your Account
We recommend that you check your statement or passbook regularly. If there is an entry,
which seems to be wrong, you should tell us as soon as possible so that we can sort it out.
If we need to investigate a transaction on your account you should co-operate ith us and
the police or any other authority, if we need to involve them.
Taking Care
Taking care of your cheques, passbook, cards, PINs and other security information is
essential to help prevent fraud and protect your accounts. Please make sure that you
follow the advice given below:
Do not keep your cheque book and cards together
Do not keep the blank cheque leaves signed
Do not allow anyone else to use your card, PIN, password or other security information
If you change your PIN you should choose your new PIN carefully
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Always learn your PIN, password and other security information, and destroy the notice
as soon as you receive it
Never write down or record your PIN, password or other security information
Always take reasonable steps to keep your card safe in your personal custody and your
PIN, password and other security information secret at all times
Keep your card receipts safe and dispose them of carefully
Never give your account details password or other security information to anyone unless
you know who they are and why they need them.
If you send a cheque through the post, it will help to prevent fraud if you clearly write the
name of the person you are paying the cheque to. Write such cheques with carbon on the
reverse to avoid chemical alterations
if you are paying a cheque into a bank account, always write on the cheque the name of
the account holder [ABC Bank Account - XYZ]. You should draw a line through unused
space on the cheque so unauthorized person cannot add extra numbers or names.
Precautions While Using Internet Banking Facilities
Visit our internet banking site directly. Avoid accessing the site through a link from
another site and verify the domain name displayed to avoid spoof websites.
Ignore any e-mail asking for your password or PIN.
We advise you not to use cyber cafs to access our internet banking site.
We advise you to update your PC with latest anti-virus software regularly. A suitable
firewall installed in a computer to protect your PC and its contents from outsiders on the
internet would be an added security measure.
What to do if you lose your cheque book, passbook, or card, or if someone else knows
your PIN It is essential that you tell us as soon as you can if you suspect or discover that:
your cheque book, passbook, card has been lost or stolen or someone else knows your
PIN, password or other security information.
The best way of telling us about the loss will usually be by phone, using the numbers we
have given you, or by e-mail to the address we have given you for this purpose.
Alternatively, you may send a written communication to us immediately.
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Canceling Payments
If you want to cancel a payment or series of payments you have authorized, you should
do the following:
To stop payment of a cheque or cancel standing instruction given, you must tell us in
writing
To cancel a direct debit, you can either tell the originator of the direct debit or tell us. We
recommend you do both. It may not be possible to cancel payments if you do not give
enough notice of your decision to cancel.
Liability for Losses
If you act fraudulently, you will be responsible for all losses on your account. If you act
without reasonable care, and this causes losses, you may be responsible for them.
Unless you have acted fraudulently or without reasonable care, your liability for the
misuse of your card will be limited as indicated by us while issuing the card.
Loans and Advances
Before we lend you any money or increase your overdraft, credit card limit or other
borrowing, we will assess whether we feel you will be able to repay it.
If we offer you an overdraft, or an increase in your existing overdraft limit, we will tell
you if your overdraft is repayable on demand or otherwise.
Wherever possible, reasons for rejection of loans will be conveyed to you.
Grievance Redressal Mechanism of the Bank
The Bank is committed to extend the best possible services to its customers. However, if
you are not satisfied with our services and wish to lodge a complaint, please feel free to
click here.
After examining the matter in detail, we will send you our final response within a period
of 8 working days from the date of receipt of your complaint by us. In case the resolution
is likely to take longer time, we will inform you of the same through an interim reply.
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If you are not satisfied with the resolution of your grievance(s) or your complaint is not
responded to, you can escalate your complaint to the Complaints Management Team, at
Central Office by mailing to [email protected]
After examining the matter, we will send you our final response within a period of 8
working days from the date of receipt of your complaint by us at Central Office. In case
the resolution is likely to take longer time, we will inform you of the same through an
interim reply.
If you are a customer of any of our overseas branch, you can escalate your complaint to
the President, International Banking Department at Central Office by mailing to
After examining the matter, we will send you our final response within a period of 10
working days from the date of receipt of your complaint by the President, International
Banking Department at Central Office. In case the resolution is likely to take longer time,
we will inform you of the same through an interim reply.
If the resolution still does not meet your expectations, you can write to the Chief
Compliance Officer by mailing to [email protected]
After examining the matter, we will send you our final response within a period of 8
working days from the date of receipt of your complaint by the Chief Compliance
Officer. In case the resolution is likely to take longer time, we will inform you of the
same through an interim reply.
Within 30 days of lodging a complaint with us, if you do not get a satisfactory response
from us and you wish to pursue other avenues for redressal of grievances, you may
approach Banking Ombudsman appointed by Reserve Bank of India under Banking
Ombudsman Scheme. Details of Banking Ombudsman are displayed in the branch notice
board. Our staff would explain the procedure in this regard.
Debits towards service charges
In the event any charge is levied in violation of the arrangement, the Bank will reverse
the same when pointed out by the customer subject to verification of the agreed terms and
conditions.
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Where it is established that the Bank had issued and activated a Credit Card without the
written consent of the recipient, the Bank would reverse the charges immediately.
Payment of Cheques after acknowledgement of Stop Payment Instructions
In case a cheque has been paid, after stop payment instruction is acknowledged by the
Bank, the transaction shall be reversed within 2 working days of the customer intimating
the transaction to the concerned branch. Interest, if eligible, shall also be paid.
Collection of instruments within India
In case of outstation cheques and other instruments sent for collection to centres within
the country, the following time schedule shall be adhered to for realization by branches:
a. For local cheques the time lines for local clearing will apply.
b. For outstation cheques there will be the following two categories of time lines:-
i. Cheques drawn on Axis Bank centers other than in the North Eastern states to be
credited within 7 working days.
ii. Cheques drawn on Axis Bank centres in the North Eastern states to be credited within
10 working days.
For non-Axis Bank centres, the Bank shall ensure collections on a 'Best effort' basis as it
will have to depend on the correspondent/drawee banks for this purpose. Accordingly, an
outer limit of 21 working days has been provided for the purpose of collection from these
centres.
In case there is delay in realization beyond the time lines mentioned above, the Bank will
pay compensation at the Savings Bank rate of interest for any delay beyond the stipulated
period for collection on the amount of the instrument.
There shall be no distinction between instruments drawn on the Bank's own branches or
on other banks for the purpose of payment of interest on delayed collection.
Collection of instruments Lost-in-transit
The Bank would observe the following policy in case of cheques lost in transit:
a. In respect of cheques lost in transit or in the clearing process or at the paying bank's
branch, the branch should immediately bring the same to the notice of the accountholder
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so that the accountholder can inform the drawer to record 'stop payment' and can also
take care that other cheques issued by him are not dishonoured due to non-credit of the
amount of the lost cheques/instruments.
b. The branch will reimburse the accountholder with related expenses for obtaining
duplicate instruments and also pay interest for reasonable delays occurred in obtaining
the same.
c. If the cheque/instrument has been lost at the paying bank's branch, the collecting
branch will have a right to recover the amount reimbursed to the customer for the loss of
the cheque/instrument from the paying banker.
d. The Bank will compensate the account holder in respect of instruments lost in transit in
the following way:-
i. In case intimation regarding loss of instrument is conveyed to the customer after the
time limit stipulated for collection for various centres, interest will be paid for the period
exceeding the stipulated collection period at the savings bank rate of interest.
ii. In addition, the Bank will pay interest on the amount of the cheque for a further period
of 15 days at savings bank rate to provide for likely further delay in obtaining duplicate
cheque/instrument and collection thereof.
iii. The Bank would also compensate the customer for any reasonable charges he/she
incurs in getting duplicate cheque/instrument upon production of receipt, in the event the
instrument is to be obtained from a Bank/institution who would charge a fee for issue of
duplicate instrument.
In the event a cheque or an instrument accepted for collection is lost-in-transit or in the
clearing process or at the paying bank's branch (after it has been handed over to the bank
for collection by the customer), the Bank shall, immediately on coming to know the loss,
bring the same to the notice of the account holder so that he/she can inform the drawer to
record stop payment and also take care that cheques, if any, issued by him/her are not
dishonoured due to non-credit of the amount of lost cheques/instruments. The bank
would provide a certificate to evidence the loss of instrument to enable the customer to
obtain a duplicate from the drawer.
Funds transfers using NEFT/RTGS
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The rate of compensation in case of delays in crediting the remittance proceeds received
through NEFT/RTGS beyond one day after receipt of the message at our gateway shall be
at the prevailing Repo Rate.
Foreign Exchange Services
It is the Bank's experience that the time norms for collection of instruments drawn on
banks in foreign countries differ from country to country and even within a country, from
place to place. The time norms for return of instruments cleared provisionally also vary
from country to country. Therefore, no compensation shall be paid for any delay in
collection of cheques designated in foreign currencies and sent to foreign countries.
The Bank will compensate the customer for undue delays in affording credit once
proceeds are credited to the Nostro Account of the Bank with its correspondent with full
particulars. The compensation in such cases shall be restricted to the extent of eligible
interest at Savings Bank rate which shall be calculated for the period after 30 days from
the date our Nostro account with the Correspondent bank has been credited.
The foreign exchange rate on the date of credit to our Nostro account shall be the basis
for calculation of interest irrespective of the rate prevailing on the date of
claim/calculation/ settlement.
Failure to execute Standing Instructions
In case of any failure to execute Standing Instructions (and if it is directly attributable to
the Bank), the Bank shall compensate the customer to the extent of the financial loss not
exceeding Rs.100 per occasion subject to providing proper supporting documents for
having incurred the loss. In addition, service charges, if any, recovered for execution of
the Standing Instruction shall also be refunded.
Award of Compensation
The compensation as per this Policy is payable to a customer only in those cases where
any act of omission or commission is directly attributable to the Bank.
No claim could be considered based on qualitative aspects like reputation damages, loss
of image in the society, loss of business, loss of income etc.
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Force Majeure
The Bank shall not be liable to compensate customers for delayed credit, if some
unforeseen event (including but not limited to civil commotion, sabotage, accident, fire,
natural disasters or other "Acts of God", war, damage to the bank's facilities or of its
correspondent bank(s), absence of the usual means of communication or all types of
transportation, etc.) beyond the control of the Bank which may prevent it from
performing its obligations within the specified service delivery parameters.
Axis Bank - Company Profile Snapshot
Company Profile: Axis Bank
Ticker: 532215
Exchanges: OTH BOM
2008 Sales: 88,162,000,000
Major Industry: Financial
Sub Industry: Commercial Banks
Country: INDIA
Employees: 9980
Business DescriptionAxis Bank formerly known as Uti Bank Ltd. The Group's principal activities are to
provide commercial banking services which include merchant banking, direct finance,
infrastructure finance, venture capital fund, advisory, trusteeship, forex, treasury and
other related financial services. The Bank has 651 branches and 2,764 ATMs.
1 .2 P RO BL EM S O F T HE OR GA NI SA TI ON
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The erstwhile UTI Bank has changed its name to Axis Bank effective July 30, 2007. This
is the first time that a bank has gone in for a brand-change voluntarily; earlier names of
banks have been changed either due to a merger or an acquisition.
UTI brand was given in 1994 by its promoters and UTI Bank could use the brand only till
January 2008 as per Govt directives. Many unrelated shareholder entities like UTI
Technological Services, UTI Investor Services and UTI Securities were carrying the UTI
brand.7
Axis refers to a line of reference, stability and maturity. The new logo of the bank has the
same colour as the previous UTI logo but now uses the alphabet A from the word Axis.
The bank is also publicizing the change through campaign titled Twins both equal.
Axis Bank has business of Rs.102,000 crore with a market capitalization of Rs.21,817
crore making it the fifth largest in India. It has 60 lakh customers and communicating to
them the name change would be the prime exercise for the bank.
Immediately, the bank will replace signages in 8 metro cities while in other 250 cities by
September. It is also informing customers about the brand change though Internet and
mobile banking, ATM, call centres, newspapers and radio. Even elements like cheque
books, welcome kits, pay orders have been resigned to reflect the new look.
Now with a name having universal appeal, the bank would now work towards becoming
a multinational bank and diversifying into other financial services like AMC, insurance
and restructure operations to reflect a modern approach to banking.
However, the bank also has a task in its hand to communicate to the customers and public
about its nature as having a UTI name prefixed would have implied that it has been a
quasi-government bank. It would also have to educate about its shareholding to further
expand itself into the retail business.
1 .3 C OM PE TI TI ON I NF OR MA TI ON
Ranking BANK
1 CITY BANK 2 ICICI BANKING CORPORATION
3 HDFC BANK
4 AMERICAN EXPRESS
5 HSBC
6 STANDARD CHARTERED GRINDLAYS
7 STATE BANK OF INDIA
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8 CANARA BANK
9 IDBI BANK
10 BANK OF AMERICA
11 ABN- AMRO BANK
12 GLOBAL TRUST BANK
13 BANK OF INDIA14 CORPORATION BANK
15 BANK OF BARODA
16 DEUTSCHE BANK
17 PUNJAB NATIONAL BANK
18 BANK OF MAHARASHTRA
19 AXIS BANK
20 DENA BANK
21 BANK OF PUNJAB
22 BANK OF NOVA SCOTIA
23 CREDIT LYONNAIS
24 ANDHRA BANK 25 SYNDICATE BANK
26 UCO BANK
27 INDUSIND BANK
28 ORIENTAL BANK OF COMMERCE
29 BANK OF MADURA
30 KARUR VYSYA BANK
31 TAMILNADU MERCANTILE BANK
32 STATE BANK OF PATIALA
33 JAMMU & KASHMIR BANK
1.4 S.W.O.T ANALYSIS OF THE ORGANISATION STRENGHTS
Market position is strong
Aggressive foreign bank
Shareholders return has grown more than 7 times
Maintains a position as a leading Asian Cash Management provider
Brand Axis Bank modern and dynamic look appeals to the growing middle
income earners
One of the most profitable MNC in India
Improved product proposition
Better geographic balances
Multi-cultural organization that offers opportunities to good managers
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WEAKNESS
HDFC, IDBI, ABN-AMBRO, Citibank and HSBC are dominant players
Has disadvantage due to last entry
Fewer locations as compared to other MNC banks
Service delivery perception is weak
OPPORTUNITIES
Branch expansion for rapid growth
Increase focus on value creation in whole banking
Improve shareholders return
Build market share in consumer banking as consumer banking continues to offer
highest potential for growth
Broadening of the demographic base
Tie ups with master card networks
Integrated sales and service approach
Can offer a complete corporate package into under proposed corporate
relationship
THREATS
IDBI is pitching in quite aggressively
Citibank is expanding in new markets
Competitive products and offers from IDBI and HDFC
Proposed networking of all branches in next 6 months
Reduced business in OECD business
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OBJECTIVE OF THE
PROJECT
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2.1 SIGNIFICANCE
The following study was done parallel when an individual or a group of individual are
current Marketing strategies of Axis Bank.
This project on identifying alternative channels of recruitment and employee retentionhas been carried on behalf ofMarketing Strategies of Axis Bankwith the objective of
understanding the best strategies practices. The study is aimed at analysis of the current
Marketing strategies process for the entry level Customers and identifying alternative
channels of recruiting them.
2 .2 M AN AG ER IA L US EF UL NE SS OF T HE S TU DY
Research simply means a search for facts answers to questions and solutions to
problems. It is a purposive investigation. It is an organized enquiry.
In other words research means search for knowledge and research methodology is a
systematic way to solve he research problem. It is a science of study how the search is
actually done. It presents the source of data collection, the sampling procedures and tools
of investigation and limitations of the study. My research project has a specified
framework for collecting the data in an effective manner. Such framework is called
research design.
2.3 OBJECTIVES
To study the benefits of this product provided by various banks.
To make comparative analysis with all the leading banks.
To recommend strategies to enhance the promotion of banks.
The primary purpose of this study is to present a clear picture of how banking
started in India.
To increase the competition in this sector so that the common people has the
advantage of enjoying quality services at a reasonable cost
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Insurance has a far reaching effect in synchronizing between the various service
sectors. So if this sector can grow, the prospects of the various other services
sector remains to be promising.
To know the consumer feedback.
To know the marketing strategies adopted to promote these products.
To make the private players responsible to the investors and not to the
government
2.4 SCOPE OF STUDY
The research process consists of series of closely related activities. At times, the
first step determines the nature to the last step to be undertaken why a research
study has been undertaken, how the research problem has been defined, in what
way and why the hypothesis has been formulated, what data has been collected
and what particular methods has been adopted and a host of similar other
questions are usually answered when we talk of research methodology concerning
a research problems or study.
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RESEARCH
METHODOLOGY
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RESEARCH METHODOLOGY
Sampling unit
Sample Unit : Retailers and Wholesalers.
Sample Size :It was not possible to cover the entire population of approximately
21000 Retailers in the Delhi and their remote locations where they are Located
250 retailers were studied by me for this research (nearly 2% of the population ).
Sample Procedure : To obtain a representative sample , a probability sample of
the population was drawn i.e. Cluster ( area ) sample , where Delhi City was
divided into 14 Area sample under five blocks of similar Category-
Sampling Technique
While above two are best suited for explorative research, Survey researchis best
suited for my purpose i.e.for Descriptive Research.
Sampling Area
Connaught Place
South Extension.
Green Park
Defence Colony, Karol Bagh, Lajpat Nagar
iv Sampling Size250 Retailers
LIMITATION
The sample size of customers and prospects is fairly small and consistent
conclusions cannot be drawn on the information provided.
Satisfaction being a relative term cannot be much commented on as it
varies from individual to individual and can only be measured if the
respondent has also experienced the services of a similar organisation in a
similar sphere.
One major constraint was the small sample size as it may lead to slight
variations in the end result.
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A few customers were either quite reluctant to part with their precious
time or had problems in attaching weights and emphasis to different
attributes.
Customers in refinance cases were in direct contact with the dealers and
were more bothered with getting the delivery of the car rather than
handling the delays on availing the finance as it did not directly affect
them.
There is bound to be a subjective bias in the results because of
inconsistency and selective perception about the opinions of the
respondents.
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CONCEPTUAL
DISCUSSION
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Marketing Strategy of Axis Bank
Deposits schemes
Savings bank accounts
Opening of Accounts
Savings Bank Accounts should be opened in accordance with the Banks rules framed for
the conduct and maintenance of such accounts and also in conformity with the directives
issued by Reserve Bank of India and India Banks Association from time to time.
Minimum Deposit
The minimum amount with which a Savings Bank Account can be opened is Rs. 100/- for
non Computerised Branch & Rs, 500/- for Computerised Branch. It should be ensured
that this minimum balance is maintained by the account holder at all times. However a
minimum balance of Rs. 250/- should be maintained in the account if cheque book
facility is required by the account holder. If the minimum balance of Rs. 250/- is not
maintained in such an account in any month, the Branch should charge service charges on
such accounts at the rate fixed by the Bank from time to time.
The minimum amount with which Savings Bank Account can be opened is Rs. 100/- in
Rural & Semi-Urban, Rs. 250/- in Urban & Metro.
For all branches except computerised branches minimum amount of balance should be:
(i) Rs. 100/- for Savings Bank Account without cheque book facility
(ii) Rs. 250/- with cheque book facility.
Rs, 500/- for computerised branches with or without cheque book facility.
If the minimum balance of Rs. 250/- or Rs. 500/- as the case may be is not maintained in
such account the Branch should charge service charges on such accounts at the rate fixed
by Bank from time to time.
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The following institutions are permitted by R.B.I. to open Savings Bank
Accounts
(i) Small Farmers Development Agency (SFDA)
(ii) Marginal Farmers &Agricultural Laborers Development Agency (MFALDA)(iii) Drought Prone Area Programme (DPAP)
(iv) District Development Authority (DDA)
(v) District Rural Development Agency/Society (DRDA/DRDS)
(vi) Integrated Rural Development Programme (IRDP) and its sub-scheme-
Development of Women and Children in Rural Areas (DWCRA).
(vii) State level Khadi and Village Industries Board (KVIB)
(viii) Integrated Tribal Development Agency (ITDA)
(ix) Agricultural Produce Market Committee (APMC)
(x) Fish Farmers Development Agency (FFDA)
(xi) University/College Teachers /Employees Provident Fund Accounts
(xii) Municipal Employees Provident Fund Accounts
(xiii) Gujarat Scheduled Caste Economic Development Corporation
(xiv) Self help groups (registered or unregistered)
(xv) Nagar Panchayat, Nagar Palikas and Municipal Bodies in relation to funds given
as subsidy under Jawahar Rozgar Yojana towards the Scheme of Urban Micro
Enterprises (SUME) provided the account is opened with a Public Sector Bank
i.e. State Bank of India, its subsidiaries or any other nationalized Bank). Funds of
the Jawahar Rozgar Yojana (Central Share as well as State Share) can be kept in
Savings Bank Account to be opened by Zilla Parishads DRDA/ Gram Panchayats.
The interest amount accrued on such deposits shall be treated as JRY additional
resources.
(xvi) Any other Institutions permitted by RBI from time to time.
Who Can Open Savings Bank Accounts Current Account
The account can be opened by the following:
(i) An individual in his/her own name
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(ii) An individual jointly with other personals
(iii) An employee can opened only one Bank account & if he/she is already having
more than one account in same or in different Bank intimation can be send to his
employer in writing with detail of such account & also the reason therefore. Such
intimation should be given to the Bank whenever he desires to open another
account in the same or other Bank.
(iv) A guardian on behalf of minor
(v) One person for another person with the stipulation that the deposit can be
withdrawn by the latter on his/her attaining majority or some other specified time.
(vi) A minor above the age of 10 years and who knows how to read and write, (in his
own name or jointly with any other person) subject to certain conditions laid
down for opening Minor Saving accounts.
(vii) A Hindu undivided family (H.U.F.) only if the HUF is not engaged in
trading/business activity and such account is opened in the name of Karta.
(viii) The following categories of Institutions/Organisations can, as per directives of
Reserve bank of India open Savings Bank Accounts on usual terms of payment of
interest:
(a) Societies registered under Societies Registration act, 1860 or by other
corresponding law in force in a State or Union territory.
(b) Companies governed by the Companies Act, 1956which have been licensed by
the Central Government under Sec.25 of the said Act or corresponding provision
in the Indian Companies Act, 1913 and permitted not to add to their names the
words Limited or Private limited.
(c) Organizations I Institutions which are exempted from payment of Income Tax
under Income Tax Act1961.
(d) Institutions specifically charged with the task of rendering social or economic
assistance to the weaker and under-privileged sections of society, not falling
under 3.5 below and whose entire income is exempted from payment of Income
Tax under the payment of Income tax Act, 1961.
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Interest free Savings Bank Accounts
Branches should not open Savings Bank Accounts of ineligible application not even
Interest Free Account. They include other Banks, Regional Rural Banks, Co-Operative
Banks, Land Development Banks, Government Developments bodies depending upon
budget allocation for performance of their functions, Municipal
Corporations/Committees, Panchayat Samitis, state Housing Boards, Water and
Sewerage/Drainage Boards, State Text Book Publishing Corporations/societies,
Metropolitan Development Authority State / District level Housing Co-operative
Societies etc. or any ,trading, business or professional (e.g. advocates, Chartered
Accountants) concerns whether such concerns are proprietary, partnership firm,
Company or association.
Current Accounts
A current account is a running and active account which may be operated upon any
number of times during a working day. There are no restrictions as to the number and
amount of withdrawals from a current account. These accounts are normally opened by
businessmen, joint stock companies, institution, public authorities and public
corporations. No interest is payable on these accounts arid hence they are a source of
comparatively low cost lendable resources to the Bank. All efforts should therefore be
made to mobilize maximum deposits in Current Accounts.
Special Features of Current Accounts
The Reserve Bank of India prohibits permanent of interest on balances laying in current
accounts. Except in the following cases:
(a) On current account balances of Regional Rural Banks at half percent below the
borrowing rate fixed for RRBs for borrowing from the sponsor Bank.
(b) In case of balances laying in current account in the name of deceased individual
depositor or sole proprietorship firm from the date of death of the depositor, till
the date of repayment to the legal heirs, representatives or nominee at the rate of
interest on Savings Bank account applicable on the date of payment.
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There are no restrictions on the number and amount of withdrawals.
Third party cheques and cheques with proper/regular endorsements are collected for the
credit of current account balances.
Overdraft facilities can be given to deserving current account holders on request as per
prescribed procedure.
Incidental charges are levied on all current accounts to recover a portion of cost of
maintenance, stationery and other services rendered to current account customers.
The facility of overprinting of names on cheque forms is generally extended to customers
keeping sizeable balances and having large operations in their accounts. However,
printing of the customers logo on the cheques is not permitted.
Who can open Current Accounts
Any person(s) or parties capable of entering into contract (i.e. a person who is not a
minor, is not insane or an undischarged insolvent) can open a Current Account. These
are:
(i) Individuals-Singly or jointly
(ii) Joint Hindu Undivided Family
(iii) Firms-Proprietorship or Partnership
(iv) Clubs and Associations
(v) Joint Stock Companies
(vi) Executors and Administrators
(vii) Trustees
(viii) Liquidators
(ix) Local Authorities/Corporations
Opening of Current Account of Individual/s
While opening a current account of individual/s, the Banks prescribed form should be
use (See Annexure 1, 2 and 3). The individuals desiring open the account should be guide
to fill up the form properly and legibly. Alterations, if any, should be authenticated by
the, depositors. Two copies of passports size photographs of depositor be obtained and
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affixed on the form. The guidance for filling up the form will include the following
aspects:
Title of the account.
Initial deposit.
The status of account holder.
Declarations regarding the banking/borrowing arrangements.
Address.
Operating instructions.
Nominations.
Name(s) and Specimen Signature(s).
Introduction.
Signature of the Officer.
Issuance of cheque book.
Accounts of Sole Proprietorship Concerns
It is an account in the name of a firm or business owned by one individual who is its
proprietor. It is operated upon by the individually in his capacity as the sole Proprietor of
the firm. The name of the account may be different from the name Of the proprietor.
All the formalities for opening a current account as mentioned in paragraph 4 above haveto be completed.
Joint Hindu Family Account (Hindu Undivided Family Accounts)
Generally, a Joint Hindu Family has some property owned by all the members as
ancestral property. The ownership of such property passes on to the members of the
family according to the Hindu Law. According to Mktakshara School of Hindu Law,
every male member of the family acquires an. interest in the joint property by birth. Afterthe enforcement of Hindu Succession Act 1956, the share of the deceased coparcener
who was a member of the Joint Hindu Family divisible amongst the wife, daughters and
other relatives as given in the Act. A daughter is a member of the H.U.F. only till she is
unmarried.
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While opening and conducting an account in the name of Joint Hindu Family, a has to
bear in mind the follo