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Slide 1: A REPORT ON Axis Bank: Reinventing Banking Submitted to: Prof. Vinod Puri Atharva Institute of Management Studies Submitted by: Nikunj Shah Reshma Sonawane Jayesh Surve Sanil Tharwal Ankita Trivedi 24 43 45 48
Slide 2: Table of Contents: 1. Banking in India 2. About axis bank 3. Mission And Values 4. Why UTI To Axis Bank 5. Financial Overview at Axis bank 6. HR Overview at Axis bank 7. Systems Overview at Axis bank 8. Operations Overview at Axis bank 9. Marketing Overview at Axis bank 10. Conclusion
Slide 3: SYNOPSYS Axis Bank: Reinventing Banking Introduction: Today, Axis Bank ranks amongst the top 10 private banks in India. 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..Axis refers to a line of reference, stability and maturity. Scope of the presentation To enumerate the growth story of Axis Bank from it being the first private bank in India known as UTI and its Journey to being Axis bank one of the top 10 private banks in India Objectives of the presentation The presentation aims to discuss the following:  Banking in India  Beginning of UTI  Journey from UTI to Axis  Operations and Marketing Aspects of Axis Bank  Financial and Human Resource Aspects of Axis Bank  Future of Axis Bank Highlights of the Presentation  Beginning of UTI 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 .  Journey from UTI to AXIS UTI brand was given in 1994 by its promoters and UTI Bank could use the brand only till January 2008 as per Govt directives. On July 30, 2007, UTI Bank, the third largest private sector bank in India, officially changed its name to Axis Bank. The Bank today is capitalized to the extent of Rs. 359.76 crores with the public holding (other than promoters) at 57.79%.This is one of the largest ATM networks in the country.  Human Resource in Axis The ultimate aim of the Human Resources function is to build and manage a motivated pool of professionals by grooming internal resources and recruiting the right skills from the market, develop a high performance work-ethic and create a culture of continuous learning and skill development.
Slide 4:  Systems Overview in Axis The ultimate aim of the systems function at axis bank is to constantly keep in terms with the upgrade of the technology. And provide the customers the best services with the help of this advancement in technology.  Operations Overview in Axis Operations function focuses on restructuring of the banking operations to reflect a modern approach to banking. And for this an operational framework has been established in order that all transactions are handled with precision. Operational parameters and control functions were refined to ensure efficient functioning of branches.  Future of Axis Bank Due to flattening of the world, the organization competitive playing field is being levelled. New players are entering into the market. Axis will have to face stiff completion with its existing as well as with new players in giving best services to its customer base and function globally.
Slide 5: INDIAN BANKING SECTOR INTRODUCTION: History of Banking in India Without a sound and effective banking system in India it cannot have a healthy economy. The banking system of India should not only be hassle free but it should be able to meet new challenges posed by the technology and any other external and internal factors. For the past three decades India's banking system has several outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of the country. This is one of the main reason of India's growth process. The government's regular policy for Indian bank since 1969 has paid rich dividends with the nationalization of 14 major private banks of India. Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient bank transferred money from one branch to other in two days. Now it is simple as instant messaging or dial a pizza. Money have become the order of the day. RECENT HISTORY OF INDIAN BANKING Indian banking system, over the years has gone through various phases after establishment of Reserve Bank of India in 1935 during the British rule, to function as Central Bank of the country. Earlier to creation of RBI, the central bank functions were being looked after by the Imperial Bank of India. With the 5-year plan having acquired an important place after the independence, the Govt. felt that the private banks may not extend the kind of cooperation in providing credit support, the economy may need. In 1954 the All India Rural Credit Survey Committee submitted its report recommending creation of a strong, integrated, State-sponsored, State-partnered commercial banking institution with an effective machinery of branches spread all over the country. The recommendations of this committee led to establishment of first Public Sector Bank in the name of State Bank of India on July 01, 1955 by acquiring the substantial part of share capital by RBI, of the then Imperial Bank of India. Similarly during 1956-59, as a result of re-organisation of princely States, the associate banks came into fold of public sector banking.
Slide 6: Another evaluation of the banking in India was undertaken during 1966 as the private banks were still not extending the required support in the form of credit disbursal, more particularly to the unorganised sector. Each leading industrial house in the country at that time was closely associated with the promotion and control of one or more banking companies. The bulk of the deposits collected, were being deployed in organised sectors of industry and trade, while the farmers, small entrepreneurs, transporters , professionals and self-employed had to depend on money lenders who used to exploit them by charging higher interest rates. In February 1966, a Scheme of Social Control was set-up whose main function was to periodically assess the demand for bank credit from various sectors of the economy to determine the priorities for grant of loans and advances so as to ensure optimum and efficient utilisation of resources. The scheme however, did not provide any remedy. Though a no. of branches were opened in rural area but the lending activities of the private banks were not oriented towards meeting the credit requirements of the priority/weaker sectors. On July 19, 1969, the Govt. promulgated Banking Companies (Acquisition and Transfer of Undertakings) Ordinance 1969 to acquire 14 bigger commercial bank with paid up capital of Rs.28.50 cr, deposits of Rs.2629 cr, loans of Rs.1813 cr and with 4134 branches accounting for 80% of advances. Subsequently in 1980, 6 more banks were nationalised which brought 91% of the deposits and 84% of the advances in Public Sector Banking. During December 1969, RBI introduced the Lead Bank Scheme on the recommendations of FK Nariman Committee. Meanwhile, during 1962 Deposit Insurance Corporation was established to provide insurance cover to the depositors. In the post-nationalisation period, there was substantial increase in the no. of branches opened in rural/semi-urban centres bringing down the population per bank branch to 12000 appx. During 1976, RRBs were established (on the recommendations of M. Narasimham Committee report) under the sponsorship and support of public sector banks as the 3rd component of multiagency credit system for agriculture and rural development. The Service Area Approach was introduced during 1989. While the 1970s and 1980s saw the high growth rate of branch banking net-work, the consolidation phase started in late 80s and more particularly during early 90s, with the submission of report by the Narasimham Committee on Reforms in Financial Services Sector during 1991. In these five decades since independence, banking in India has evolved through four distinct phases:
Slide 7: Foundation phase can be considered to cover 1950s and 1960s till the nationalisation of banks in 1969. The focus during this period was to lay the foundation for a sound banking system in the country. As a result the phase witnessed the development of neces sary legislative framework for facilitating re-organisation and consolidation of the banking system, for meeting the requirement of Indian economy. A major development was transformation of Imperial Bank of India into State Bank of India in 1955 and nationalisation of 14 major private banks during 1969. Expansion phase had begun in mid-60s but gained momentum after nationalisation of banks and continued till 1984. A determined effort was made to make banking facilities available to the masses. Branch network of the banks was widened at a very fast pace covering the rural and semi-urban population, which had no access to banking hitherto. Most importantly, credit flows were guided towards the priority sectors. However this weakened the lines of supervision and affected the quality of assets of banks and pressurized their profitability and brought competitive efficiency of the system at a low ebb. Consolidation phase: The phase started in 1985 when a series of policy initiatives were taken by RBI which saw marked slowdown in the branch expansion. Attention was paid to improving house-keeping, customer service, credit management, staff productivity and profitability of banks. Measures were also taken to reduce the structural constraints that obstructed the growth of money market. Reforms phase The macro-economic crisis faced by the country in 1991 paved the way for extensive financial sector reforms which brought deregulation of interest rates, more competition, technological changes, prudential guidelines on asset classification and income recognition, capital adequacy, autonomy packages etc. Types of Banks Central Bank The Reserve Bank of India is the central Bank that is fully owned by the Government. It is governed by a central board (headed by a Governor) appointed by the Central Government. It issues guidelines for the functioning of all banks operating within the country.
Slide 8: Public Sector Banks a. State Bank of India and its associate banks called the State Bank Group b. 20 nationalized banks c. Regional rural banks mainly sponsored by public sector banks Private Sector Banks a. b. c. d. e. Old generation private banks New generation private banks Foreign banks operating in India Scheduled co-operative banks Non-scheduled banks Co-operative Sector The co-operative sector is very much useful for rural people. The co-operative banking sector is divided into the following categories. a. State co-operative Banks b. Central co-operative banks c. Primary Agriculture Credit Societies Development Banks/Financial Institutions           IFCI IDBI ICICI IIBI SCICI Ltd. NABARD Export-Import Bank of India National Housing Bank Small Industries Development Bank of India North Eastern Development Finance Corporation
Slide 9: TOP 10 BANKS IN INDIA Ever since the emergence of banking in India in the last decades of the 18th century, the sector witnessed a considerable growth irrespective of economic volatility and unstable political premise. Banking sector of India still maintains its reputation as one of the most persistently lucrative sector that runs on regular government intervention and well-conceived economic policies. Reserve Bank of India, considered the supervisor of all the commercial banks in India, is the main regulator and these financial institutions have to adhere to its governance. India has about 88 commercial banks including 31 private banks, 27 public sector banks and 38 foreign banks. The country has an aggregate of 53,000 bank branches and 17,000 ATMs. Public sector banks dominate the segment with 75%of the total assets of the industry held by them. List Of Top 10 Banks Of India: State Bank of India: SBI is the oldest bank of India and also India‘s largest commercial bank. This government owned bank was established in the year 1806.It is also the second largest bank in the globe. The bank provides a wide array of banking products through their effective network not only on India but also overseas. The bank has about 16,000 branches and is also accountable for onefifth of the loans of India. It has about 8500 ATMs across the nation. ICICI Bank: This is the second largest bank in India with about 1,419 branches and 4,644 ATMs spread countrywide. It is among the top commercial banks of India providing a wide range of banking services through varied delivery channels. Besides offering high-end banking facilities like Internet banking, Phone Banking and Mobile Banking, ICICI also plays a pivotal role in the domains of investment banking, venture capital and asset management and life and non-life insurance. It has its presence in 18 countries across the world including UK, Canada, Russia and others. AXIS Bank: One of the top private banks in India, it was earlier known as the Unit Trust of India (UTI) since it was promoted by the same organization. It was first among the new private banks to have started its operations in the year 1994. AXIS has its significant presence in about 4509 districts of India with a wide network of over 729 branch offices and Extension Counters. With around 3171 ATMs, the bank provides round the clock banking convenience. This Indina bank has amassed a capital of more than Rs. 350 crores and enjoys equal sway over retail and corporate banking.
Slide 10: HDFC Bank: It is also among the top banks of India offering various banking services for the customers like Personal Banking, NRI Services, Net Banking, Online Remittances and others. The year 2008 has been very prosperous for HDFC as it won a host of awards for being the best retail bank and also the best among other Indian banks to adopt Information Technology. With a total income of more than Rs. 5,400 crores, it demands a significant position in Indian banking industry. The bank has about 1,500 branches and 2,890 ATMs in 530 Indian cities. HSBC: The first ATM provider of India, HSBC Bank is one of India‘s top banks with its operational base extending consitently. This commercial bank of India first started to function in 1853. It opens up ample banking services for the customers apart from cash management, financial planning and business banking facility. It has a provision of 150-in-branch and off-branch ATMs and phone banking for 24 hours. Reserve Bank of India: Referred as the Central Bank of India, RBI is a premier bank of India having about 22 regional offices across the nation and most of the offices are in the capitals of the Indian states. RBI is fully owned by Government of India and it performs myriad range of services from supervising and regulating financial system to managing exchange control. Established in 1935, RBI remains the most prestigious entity playing the guardian of all commercial banks of India. Punjab Bank of India (PNB): Has been in operation since 1895, PNB is a trusted name in the banking segment of India. It is among the few other public sector banks of India that runs special schemes for senior citizens, army personnel, students and women. Despite the recessive tendency in Indian economy, PNB has managed to eke out profit on a sustained manner. Central Bank of India: This is one of the largest and oldest commercial banks in India. The bank has its office in about 27 states in India with 270 extension counters and 3,168 branches. Founded in the year 1911, this is India‘s first commercial bank that was completely managed and owned by Indians. With an average business of around 2,000 crore, Central Bank of India has a significant presence in India‘s financial orbit. Union Bank of India: This PSU unit has convinced the customers that they are ‗Good people to bank with‘. More than 50% of share capital of Union Bank of India is held by Indian government. Around 27,000 employees work together to fulfill the bank‘s mission to reduce the gap between expectations and deliverables.
Slide 11: Axis Bank Axis Bank: Company Profile Axis Bank was established in 1993 and was the first private sector bank to start operations after the Government of India allowed entry of private banks. Previously called UTI Bank, Axis Bank was promoted by Unit Trust of India (UTI-I), Life Insurance corporation of India (LIC), General Insurance Corporation (GIC) and its four subsidiaries, New India Assurance Company, Oriental Insurance Corporation, National Insurance Company and United Insurance Company. The name of the Bank was changed in 2007 as there was brand confusion because many unrelated shareholder entities such as UTI Securities, UTI Technological Service and UTI Investor Services were also sharing the UTI brand. Moreover, the name was changed to connote stability and solidarity as well as was in line with the bank‘s expanding operations across geographical boundaries. Staring with one branch in Ahmedabad in 1994, the bank now has 835 branches including extension networks (31st March 2009) across 30 States and 4 Union Territories. The bank also has overseas offices in Singapore, China, Hongkong and Dubai. Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.[3] 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 The banks business is divided into four segments: retail, corporate, treasury and merchant banking. Apart from this the bank is also into insurance, investment banking, mortgage financing, credit cards, and depository services amongst others. Shareholding Pattern The shareholding pattern of the company as on 30th June 2009 is shown in the chart. In the promoter group, UTI-I holds maximum share in the company with 27.02% stake, the rest is held by LIC (10.34%) and GIC including its four subsidiaries (4.85%).
Slide 12: Key Milestones The key milestones achieved by the company are given in the table below: Timeline        Milestone / Event Opens its first international branch in Singapore Opens Representative Office in Shanghai Crosses the 2,000 ATM mark in 2006 Opens a Full Licence Bank Branch in Hong Kong Re-brands itself as Axis Bank Launches Platinum Credit Card, India's first EMV chip based card Crosses the 3,595 ATM mark in 2009 Private placement of 26% stake to CDC Capital Partners Deposit crosses Rs.100bn mark in 2001, advances crosses Rs.50bn First commercial bank to open an ATM at a post office 100th branch opens at Tuticorin,Tamilnadu Crosses the 1,000 ATM mark in 2003 Gets listed on the London Stock Exchange, raises $239.3m Successfully completes its IPO in 1998 and gets itself listed on NSE and BSE Cash management services as well as credit card launched Profit crosses Rs.500m in 2000 Launches Internet banking module, iConnect retail loans introduced Financial advisory services and e-commerce introduced Second largest ATM network in the country with 200 ATMs Incorporated as UTI Bank, headquartered in Mumbai First Branch inaugurated at Ahmedabad Completes first profitable year in operation in 1995 Deposit crosses Rs.10bn mark in 1996 2006-2009 2001-2005       1998-2000       1993-1997    
Slide 13: 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 27.02% Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores. The Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing obligations and commitments to the investors, which it will uphold. Board of Directors The members of the Board are : Smt. Shikha Sharma Shri M. M. Agrawal Shri N.C. Singhal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Managing Director & CEO Deputy Managing Director (Designate) Director Director Director Director Director Director Director
Slide 14: Mission and values of Axis Bank      o o o   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 Maximisation of Stakeholder value Success through Teamwork, Integrity and People Branch Network 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. Despite the 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 midcorporate 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).
Slide 15: 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 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. Change in Name: UTI Then, Axis Now The Conflict Of Brand UTI: According to a deal between the government and the fund's four sponsors — State Bank of India, Life Insurance Corporation, Bank of Baroda and Punjab National Bank — UTI's nine subsidiaries could use the brand name for free till January 2008. After the period ended, UTI Bank, UTI Securities, UTI Technology Services and UTI Investor Advisory Services had to pay royalty to the fund house. The year long conflict ended when UTI Bank finally decided to change its name to Axis Bank. Chairman and CEO of UTI bank Mr P J Nayak told thatthe decision to re-brand the Bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand. The name Axis is chosen as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal. The bank is likely to spend around Rs50 crore in the re-branding exercise. Some reasons for change in name of 'UTI Bank to Axis Bank' - are : 1) The UTI brand is owned by UTI Asset Management Company. 2) UTI Bank to shed its brandname after the split of the erstwhile UTI. Though UTI was a government instutition, its subsidiary UTI Bank has been categorised as a private sector bank, according to RBI guidelines.
Slide 16: 3) UTI Bank was started as a part of the entire UTI (Unit Trust of India) Group. But, when there were losses incurred by UTI ( due to failure of US 64 scheme probably ) because of other reasons, it was decided by RBI that UTI Bank should be separated as private sector bank, as several unrelated entities were using the UTI brand. 4) The change of name to Axis Bank has been cleared from shareholders and regulators. 5) The government still has a 26% stake in UTI Bank. This stake is up for sale. Regarding the re-branding strategy, Executive director (corporate strategy) of the bank R Ashok Kumar said the bank had hired advertising firm O&M to help in creating awareness of the new brand across the country. The bank would change logo and colour of logo, he had said, adding, the bank is likely to spend around Rs 50 crore (Rs 500 million) in the re-branding exercise Axis Bank is born out of the pressure on UTI Bank to shed its brandname after the split of the erstwhile UTI. Though UTI was a government instutition, its subsidiary UTI Bank has been categorised as a private sector bank, according to RBI guidelines. The name change to Axis Bank means that UTI Bank will have to undergo a rebranding exercise soon. After the split of UTI, entities like UTI Securities, UTI MF and UTI Bank were all allowed to retain the UTI brand name for a while. Now that it is time for UTI Bank to shed the brand name, it has opted to go for the more modern-sounding Axis Bank. ·Axis Bank brand aims to portray the bank as modern and innovative The Bank has decided to create a distinct brand identity for itself as for instance ICICI Infotech rebranding itself as "3i Infotech".Rebranding provides an opportunity to communicate elements of personality, values and vision, which are specific to the Bank. This rebranding became more important as the Bank takes its initial steps in establishing a global footprint. NEW LOGO: The bank has retained the burgundy colour, but has changed the logo. The logo uses the alphabet 'A' from the word Axis. The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is moving on from a position of strength. Earlier, the bank's logo used the letters U, T and I. On July 30, 2007, UTI Bank20, the third largest private sector bank in India, officially changed its name to Axis Bank. The decision to rebrand itself was taken by the bank as it was allowed to use the 'UTI' brand21 name for free till January 31, 2008, beyond which it had to pay royalty for using the name. Moreover, rebranding itself also gave it the opportunity to have a brand of its own, which would go a long way in resolving the brand confusion that was created by several shareholder-unrelated entities using the UTI brand name.
Slide 17: The bank acquired the services of Ogilvy & Mather (O&M) to design and implement the rebranding campaign. It was reported that the bank expected to spend a whopping Rs. 500 million on the rebranding exercise. Recent News in AXIS: The Financial Express newspaper presented its Tenth India's Best Bank Awards 2009 in 12 categories. These banks are selected on basis of growth, profitability, credit quality and strength over the past fiscal year. New Private Sector Bank - Axis Bank and HDFC Bank (HDB). Last month, Dun & Bradstreet, the world‘s leading provider of global business information announced the top banks in India in a publication titled ―India‘s Top Banks 2009″. Highlights:  Axis Bank Ltd is the third largest lender among private banks in India. Over the last decade, the Bank has gradually improved its assets quality, built a strong IT platform, controlled costs, and expanded its network. The Bank has posted over 30% y-o-y growth in net Profit in 35 of the last 37 quarters and over 60% Net Profit growth in each of the last 7 quarters  Post its rebranding exercise in 2007 the bank has continued to do well and the change in name has not affected the bank‘s business. In fact in FY2008 it saw its customer acquisition grow at a robust rate of 67% over the last year to over 9.9 million customer accounts.  Net NPAs as a proportion of net customer assets stood at a mere 0.35% at the end of March 2009.  "Execution of rebranding exercise was a logistical nightmare‖. Spread across 96 elements, including cheque books, pay orders, welcome kits, 28 different types of cards, it's an arduous and ongoing process.  The Bank‘s consolidated Net Interest Income (NII) grew 42.4% during FY2009 to Rs. 36.80 billion. The Bank had total Deposits of Rs.1,173.74 billion and Net Advances of Rs.815.57 billion as on March 31, 2009.  The Net Interest Margin (NIM) of the Bank fell by14bps to3.33% in FY2009 from 3.47% in FY2008 due to a rise in the cost of funds to 6.50%.  As on March 2009, the Bank had a Book Value of Rs. 284.50 per share. The Net Worth of the Bank increased by 15% to Rs. 97.57 billion in FY2009 from Rs. 84.49 billion in FY2008. Axis Bank‘s Return on Equity (ROE) increased from 16.09% in FY2008 to
Slide 18: 19.93% in FY2009. Return on Assets (ROA) increased to 1.44% in FY2009 from 1.24% in FY2008  In March 2008, Axis Bank launched Platinum Credit Card, India's first EMV chip based card.  The Bank was ranked No.1 Debt Arranger by Prime Database for the 9 months ended December‘08.  Total Assets have grown at a CAGR of 40.65% during 2005-2009 due to continuous growth in its CASA and Term Deposits. Financial/Ratio Analysis Total Savings Deposits 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  The Savings deposits of the banks are growing at considerable high rate. Only in 200809 it could not achieve a robust growth in SB A/c compare to earlier years.  Compounded Annual Growth Rate of 58%. Total Current A/c Deposits: Rs in crs 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  The Current A/c growth too is showing significant growth in last five years. This is actually increasing the banks strength. 7,155 7,970 11,304 20,045 24,822 32.65% 11.39% 41.8% 77.33% 23.83% 4,891 8,066 12,126 19,982 25,822 89.24% 64.9% 50.33% 64.78% 29.22% Rs in crs
Slide 19:  Both Saving Bank deposits and current bank deposits is increasing year by year which is a good sign for the bank and it‘s shows the image of bank is becoming more good in the eyes of customers and public and the customers have satisfied with the services of bank so the result they are keeping more faith on bank and that‘s why they are depositing more money in the bank.  CAGR of 36% Total Advances: 15,602.92 22,314.23 36,876.48 59,661.14 81,556.77 66.63% 43.02% 65.25% 61.788% 36.7% 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009  We can see that total advances has also been increasing since 2004, and they are showing significant growth  Advances are growing CAGR of 55% Net Interest Margin: -  The net interest margin has increased since 2005 because of increase in cost of funds. Yet it has maintained to attract lot of savings A/c depositors every year.
Slide 20: Net Interest Income: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 731 1,078 1,468 2,585 3,686 26.7% 47.47% 36.18% 76.08% 42.59% Interpretations:  Net Interest Income of the bank is increasing in every year and in the year 2007-08 is 2585; it has growth of 76.08 % from the year 2006-07 its shows that bank deposits are increasing or bank is earning more income from the interest of that deposit.  Growing at a CAGR of 45% Net NPAs: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  We can see since 2005 the net NPAs have significantly reduced. This is a good sign for any bank, and it shows that the operations are taking place efficiently. 1.07 0.75 0.61 0.36 0.35 Branches & ATMs: - Along with 3723 ATMs
Slide 21: This shows Axis believes in expanding the business through more ATMs and less branches. Working Capital Turnover Ratio: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  The working capital turnover ratio is used to analyze the relationship between the money used to fund operations and the sales generated from these operations.  In a general sense, the higher the working capital turnover, the better because it means that the company is generating a lot of sales compared to the money it uses to fund the sales.  In the case of AXIS BANK working capital turnover ratio is negative in most of the years, which is showing inefficiency in operations of the bank. Operating Margin: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  In the year 2008-09 Operating Margin was 24.3, in the year 2006-07 it was 21.84. This shows that Operating profit margin is increasing which is good for the bank. 26.77 26.45 21.84 23.25 24.3 (2.51) 7.92 (12.1) (1.14) (1.46)
Slide 22: Net Profit Margin: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  Net profit margin was 14.33% in 2005 but it showed a downward trend from 2006 till 2008 and then again it went high to 13.31% which shows that the Net profit margin of Axis Bank is little volatile. Return on Assets: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 1.21% 1.18% 1.10% 1.24% 1.44% 14.33 13.47 12.01 12.22 13.31 Interpretations:  Return on assets (ROA) is an indicator of how profitable a company is relative to its total assets. ROA gives an idea as to how efficient management is at using its assets to generate earnings.  We could see that the Return on Assets has been volatile, which is not a good sign. Return on Net Worth: - 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 13.54% 16.94% 19.45% 12.38% 17.85%
Slide 23: Interpretations:  Since 2004-05 Return on Net Worth has been increasing significantly but then again it took steep dip of 12. 38% in 07-08, and again it jumped to 17.85% in 2008-09 which shows a good sign. Capital Adequacy Ratio: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  We could see that Axis has able to meet the capital adequacy ratio as prescribed by RBI every year. They had never defaulted on Capital Adequacy Ratio. Earlier this ratio was low but after implementations of BASEL II norms, it is mandatory for every bank in India to adopt the ratio prescribed by RBI. Debt / Equity Ratio: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations:  The debt equity ratio is calculated to measure the extent to which debt financing has been used in business. It indicates what proportion of equity and debt the company is using to finance its assets. As a general rule there should be a mix of owner fund as well as outside fund in proportional manner.  We could also see that Axis has been highly leveraged since 2006-07 but later they came down to 9.99 in 2007-08 and again went up to 11.49. 13.17 13.97 17.32 9.99 11.49 12.66% 11.08% 11.57% 13.73% 13.69%
Slide 24: Total Advances against Deposits: Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations: Total Deposits 31,712 40,113.53 58,785.60 87,626.22 117,374 Total Advances 15,602.92 22,314.23 36,876.48 59,661.14 81,556.77 Percentage 49.2% 55.63% 62.73% 68.08% 69.5%  We could see earlier in 2004-05 the percentage of advances against deposits were low as 49%, where as it has increased to 69.5% in 2008-09. Therefore we can say that bank has become efficient in utilizing its resources apart from meeting its capital adequacy ratio and meeting the CRR and SLR norms with RBI. Total Income/Capital Employed: 7.54% 8.23% 8.92% 9.59% 10.60% 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interpretations: -  We could see that total income against total Capital Employed has been significantly increasing year on year since 2004 – 05. This is a good sign for the Bank. Other Income/Total Income: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 1.48% 0.18% 0.39% 0.16% 0.60%
Slide 25: Interpretations:  In the year 2004-05 other income has been high compared to subsequent years, but again in 2008-09 other income ratio against total income has improved. Interest expended against Net Income Earned: Year 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 Interest earned 1,924.16 2,888.79 4,560.40 7,005.32 10,835.49 Interest Expended 1,192.98 1,810.56 2,993.32 4,419.96 7,149.27 Percentage 62% 63% 66% 63% 66% Interpretations:  We could see that the net interest expended has been in the range of 62% to 66% since 2004-05 to 2008-2009. Interest expended margin is close to industry interest expended margin. Earnings per share: 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 11.83 17.41 23.40 29.94 50.57 Interpretations:  Earning per share is increasing year by year which is a good sign for an investors of axis bank it shows that an investor can invest in AXIS Bank to get good profits.
Slide 26: COMPARATIVE ANALYSIS: Particulars Deposits Advances Share Capital Net worth Book Value Interest earned Interest expenditure Net profit Net NPAs Total Assets Return on Assets Axis 117,374.11 81,556.77 359.01 10,214.80 284.53 10,835.49 7,149.27 1,815.36 0.35% 147,722.06 1.44% HDFC 142,811.58 98,883.05 425.38 15,052.73 344.44 16,332.26 8,911.10 2,244.94 1.49% 183,270.78 1.10% PNB 209,760.50 154,702.99 315.30 14,653.63 416.74 19,326.16 12,295.30 3,090.8 0.17% 246,918.62 1.15% HSBC 49,970.27 27,588.68 4,499.16 11,214.3 6,326.9 2,661 12,91.2 1.42% 94,620.3 1.51% We have compared AXIS Bank’s performance with leading banks in the particular field. Therefore we have taken one PSU Bank, one Private Bank and one Foreign Bank for comparative analysis. INTERPRETATIONS: Deposits: - If we analyse deposits of Punjab National Bank is higher than any bank taken into consideration, this is because of its accentuated presence in the country since 1895. Second comes HDFC bank which is also the close competitor of AXIS Bank, and 3 rd comes AXIS bank in terms of deposits. HSBC is ranked last. Advances: - Again more the deposits more the advances. PNB has been leading among all banks taken into consideration regarding loans and advances. Again HDFC has 2 nd largest advances and third comes AXIS Bank. Share Capital: - HSBC has the highest share capital amongst all the 4 banks taken into consideration. Second comes HDFC, 3rd is AXIS bank and last comes PNB. Interest Earned: - Highest interest earned is by PNB as again it has high deposits as well as high advances, HDFC ranks 2nd in interest earned, and AXIS 3rd. Net Profits: - Again PNB has highest profits among 4 banks, HDFC ranks 2 nd and AXIS bank ranks 3rd, whereas HSBC ranks 4th. Net NPAs: - PNB has lowest NPAs, whereas AXIS Bank has 2 nd lowest NPAs, HSBC has 3 rd lowest NPAs, HDFC ranks last in NPAs. Return on Assets: - HSBC has high return on Assets, whereas AXIS has 2 nd highest return on assets. PNB bank has 3rd highest return on assets and HDFC has lowest return on assets among 4 banks.
Slide 27: Banks Axis HDFC PNB HSBC Branches 835 1416 4668 178 ATMs 3595 3382 2150 150 Cities 515 550 21,408 - Inception yr 1994 1995 1895 1959 Overseas presence 4 8 3 83 Interpretations:  We could see from the data given that PNB has highest number of branches, HDFC has 2nd highest number of branches in the country whereas Axis had 3 rd largest network of branches and the lowest is HSBC.  Axis has highest number of ATMs in the country, HDFC ranks 2 nd in terms of ATMs presence, PNB ranks 3rd in ATM presence whereas HSBC ranks last.  PNB covers maximum area of the country in terms of banking, whereas HDFC and AXIS has limited presence.  HSBC has maximum presence across the world, 2nd ranks HDFC, Axis ranks 3rd in overseas presence and PNB ranks last.
Slide 28: Revenue Segmentation
Slide 29: Key Financial Metrics: Key Financial Metrics (in Billions INR) 2005 Net Interest Income Non - Interest Income Net Revenue Net Profit Net NPA's Return on Assets Total Assets Revenue by segment: 7.31 4.16 3.35 2006 7.3 4.85 2007 10.1 6.59 2008 25.85 17.95 43.8 10.71 2009 36.8 29.16 65.96 18.13 0.35% 1.44% 10.78 14.68 11.47 18.08 24.78 1.07% 0.75% 0.61% 0.36% 1.21% 1.18% 1.10% 1.24% 377.44 497.32 732.57 1095.78 1477.22 Capital Structure: -  We can see that only 42.32% of the total equity capital is available for public and major stake is among the investors belongs to Administer of specified undertaking of UTI, LIC and other QIPs.
Slide 30: Comparing the Market share: Metrics/Company State Punjab Bank Bank Axis ICICI HDFC Allahabad Canara (figures in Billions Bank of National of of Bank Bank Bank Bank Bank INR) India Bank India Baroda Revenue Metrics Net Revenue (net of interest exp.) Net Interest Income Revenue Growth from 2007 NIM Opearating Metrics Net Income Total Operating Income Other Key Industry Metrics Total Assets 1095.78 3997.95 1332.51 5665.65 1990.48 1788.3 1795.99 829.23 12.95% 12.91% 12.04% 1.25% 0.89% 0.52% 0.47% 1.33% 0.80% 1805.29 13.25% 0.92% 0.84% capital Adequacy 13.73% 14.92% 13.60% 13.47% 12.96% Ratio Return on Assets Net NPAs 1.24% 0.36% 1.10% 1.49% 1.32% 0.47% 1.01% 1.78% 1.15% 0.64% 10.71 41.57 15.9 67.29 15.41 30.07 14.35 9.94 15.65 26.77% 29.59 Net Profit Margin 24.45% 25.69% 21.17% 25.47% 20.46% 22.26 72.43 37.65 138.11 40.06 35.17% 24.07% 37.41% 54.57 30.27 14.99 43.8 25.85 161.83 75.11 73.04 52.3 264.2 170.21 75.32 55.34 85.51 54.99 59.62 39.11 26.57 17.81 58.46 35.38 5.50% 2.42% 71.50% 45.18% 50.70% 12.43% 8.49% 3.47% 2.20% 4.40% 3.07% 3.58% 70.92% 20.21% 24.50% 2.97% 2.90% 2.61%
Slide 31: HR OVERVIEW AT AXIS BANK: AXIS HR Objectives       To initiate & institutionalise globally competitive HR practices in the Bank in our pursuit to become a Bank of international standards and to become an employer of preferred choice. To put in place relevant HRD strategies and use modern methodologies to undertake organizational renewal; identify and nurture talent, bring about marked changes in the mindset of employees at all levels so as to enhance HR Quality. To create a performance-driven culture and an exciting workplace for the employees. To create a pool of entrepreneurial managers and business leaders for future. To inculcate a strong and effective sales and service culture across levels in the organization in order to generate strong stakeholder affiliation. To create a learning organization for employees intellectual growth and creativity; and to re-skill the workforce to operate in digitally enabled modern core banking environment. The ultimate aim of the Human Resources function is to build and manage a motivated pool of professionals by grooming internal resources and recruiting the right skills from the market, develop a high performance work-ethic and create a culture of continuous learning and skill development. One of the major platforms on which the success of the Bank's corporate strategy rests is bringing on board the requisite skills within the overall ceiling of the manpower budget. Although the economic downturn in the latter half of the year brought in its wake a larger availability of manpower in the market, the challenge that emerged was to ensure against any dilution in the quality of talent while fulfilling the targeted numbers. There was a net staff increase of 5,885 over 2007-08 translating to a growth of 40% compared to a 48% growth in the previous year. The overseas staff complement has grown almost twofold from 44 to 90 in the same period in tune with the growth in businesses at our overseas centres. Besides recruitment, attrition management learning and skill development and management of performance are the other key areas of the Human Resources function. Employee engagement measures like a competitive compensation structure, performance linked rewards and
Slide 32: incentives, a merit-based promotion process, ongoing interactions with staff at all levels and providing staff with opportunities to seek aspirational roles through internal job postings, contribute to retention of staff at all levels. There has been a significant reduction in the year-end attrition level compared to the previous year. The Bank's Performance Management system, where recognition is directly related to performance, sends a clear message of meritocracy. The ultimate aim of the training process is to create a knowledgeable pool of talent delivering optimum value to customers, which we believe our training initiative has been able to achieve. One of the major challenges in this regard is the requirement to scale up training bandwidth to keep pace with the growing workforce. The training team has lived up to this challenge through focused programmes for newly recruited employees as well as for the more experienced domain specialists. A combination of classroom sessions, external programmes and e-learning initiatives are part of the training module. In the process, training man-days have registered an increase of 71% in the year under review as against 62% in the earlier year. Axis Bank continues to be a young Bank with an average age of 29 years and a talent pool comprising a mix of new recruits and experienced officers. The Bank also continues to espouse the policy of affirmative action by being an equal opportunity employer. Your Bank will continue to pursue the objective of accomplishing its corporate mission and core values through fulfillment of its Human Resources agenda for the eventual purpose of delivering a high level of customer satisfaction.
Slide 33: HR Business Model:
Slide 34: The Strategic HR Business Model adopted by Axis incorporates its HR Mission and Philosophy and is focused towards attainment of long-term organizational goals. A very strong Organizational Leadership at different levels forms the key link in the Model. These are;    Strategic Leadership - Corporate level Business Leadership - Zonal & Regional level Operational Leadership - Business unit level i.e. branch The two vital Human Resource sub-systems i.e. HR Planning & Management Sub-System & Competency Based HRD Sub-System shape the very crucial Performance Environment within the Bank which facilitates development of enabling capabilities of the people. Through proper developmental inputs, Positive Attitude & Right Mindset is created among people. Through proper Communication Medium and an Organizational Culture of sharing, openness, collaboration & confrontation, autonomy etc., people in the organization are facilitated to give their best output (performance). The Model is adequately supported by a suitable Learning Platform, which imparts proper Knowledge and enhances Learning among people (functional, behavioural etc) so that their Competence increases and their potential could be properly leveraged for greater Individual and Organizational Effectiveness. These create proper Employee Motivation, which ultimately facilitates Goal Achievement. HR Blueprint for Business Driven HR Reforms: Board level approved strategy paper outlining various organization wide HR reforms interventions HR Steering Committee Board Level HR Committee for piloting HR initiatives and reforms. The Committee comprises of Directors and leading professionals as Experts from outside the Bank. KHOJ Organization wide Talent identification and Development Programme for Officers and Clerks (Through scientific process of identification and selection, employees with high potential to be deployed in key business areas. Such employees to be provided with suitable grooming and career growth opportunities).
Slide 35: SAMPARK SOS Employee HELP Line (Employees in distress can directly approach the CMD for immediate relief) PARAMARSH Employees Counselling Centre (Counselling centres for providing psychological assistance and guidance to overcome their stress, complexities and conflicts in order to lead a better life. This is totally confidential between the employee and the counsellor. First such centre set up at Mumbai where services of professional Clinical Psychologist are available. AXIS FINANCIAL REWARDS FOR BUSINESS LEADERS Weighted Index based Model (with pre-defined weight ages for different business KRAs) for balanced assessment of efforts of Business Leaders (Branch Heads, Regional Heads, Deputy Regional Heads and Zonal Heads). Rewards in Cash for achievement of business KRAs. MEP-TIKSHNA Management Education Programme for Executives (GM, DGM, AGM, Chief Managers) in association with top B-Schools like IIM-Ahmadabad and Management Development Institute, Gurgaon. The specially designed programme is aimed at development of strategic business leaders for the future. So far, 213 executives have undergone the programme. HR POLICY FOR OVERSEAS SELECTION & DEPLOYMENT Scientific and process orientation in the new revamped policy for selection and deployment of officers at the Bank‘s overseas territories. HR RESOURCING POLICY New HR Resourcing Policy formulate to take care of various recruitment needs of the bank consequent upon abolition of the erstwhile Banking Services Recruitment Board (BSRB). Performance Appraisal System for Clerical and Sub-Staff With the objective of bringing an organization wide performance culture in the organization, hitherto uncovered employees in the Clerical and Sub-Staff cadre brought in under a new performance
Slide 36: appraisal system Massive Recruitment of Specialist officers and also graduates from B-Schools through campus recruitment To take care of the Bank‘s requirement in different specialized areas like IT, Treasury, HR, Marketing & Sales, Credit, International Business etc (Around 500 officers being recruited). A New Induction cum Grooming Programme for Young Officers With the objective of developing future managers and leaders and for deployment in key areas, a revamped Officers‘ Induction cum Grooming Programme is launched. Fast Track Career Growth Opportunities for Executives and Officers In order to provide fast track growth opportunities to aspiring Executives and Officers, promotional opportunities have been provided. Axis LEADERSHIP DEVELOPMENT CENTRE Board has taken the decision to set-up a World-Class Leadership Development Centre to be set up to prepare future leaders for the Bank. NEW GROUP HR STRUCTURE A new Group HR Organization Structure is being put in place to take care of the strategic business – HR needs of the Organization. The Structure would have balanced focus on HRM and HRD aspects and will put in place competency based HR systems and practices. Recruitment Process at Axis Bank: The selection of external recruits consists of the following steps: 1. CV Submission Potential candidates interested in joining the bank are required to send their complete curriculum vitae. An acknowledgement of receipt is sent for all submitted applications to the candidate's email. 2. Application Evaluation The Human Resources department evaluates all incoming applications, against prerequisite abilities and skills set for all current openings. All applications are kept based on strengths and specialization, for future reference. 3. Ability Tests
Slide 37: Potential candidates will be invited to participate in aptitude tests i.e. numerical, verbal, English and psychometric, when deemed necessary. 4. Capability Based Interviews To ensure that our recruitment process is fair and consistent, all candidates who are successful at the exams are invited for a capability based interview. Interviews are based against capabilities, required for each position for which the candidate is interviewed for. A capability or competency is an ability described in terms of skills & behaviours that are essential to effectively perform within a job. 5. Reply Letters At all stages of the process candidates are kept informed of the status of their application with an email reply letter. 6. Job Offer If a candidate successfully reaches the final stage, a position offering is made in conjunction with a competitive reward package. SYSTEMS OVERVIEW AT AXIS BANK: Axis Bank has implemented a new derivatives system -- Summit FT by global financial applications provider -- Misys. The system will provide the bank with the ability to structure derivative products in real time, reduce time to market, and give a single view of the entire transaction to the customer. According to Prabhakar Saxena, general manager (India) of Misys, "A lot of banks are providing derivative products on a back to back basis. But these are plain vanilla products, which are uniform in nature. Summit FT will help Axis to structure its derivative products differently and offer its customers products that are different from the run-ofthe-mill derivatives. Thus, it can charge a premium for its dynamic services." The bank hopes to leverage the ability to rationalize its currently dispersed functions to provide a single view of every transaction to customers. Derivative transactions can expose the bank to three broad categories of risks: counterparty credit risk, market risk, and operational risk. With derivatives and structured products operations currently served by a range of third party vendor solutions, spreadsheets, and customer built platforms, the bank is predicting that rationalizing systems across front, middle, and back office operations will provide significant competitive advantage. "Apart from helping the bank to create new derivative products without having to resort to developers each time, it also helps from a regulatory compliance standpoint," said Saxena. The RBI favors transparent online systems that can track every transaction and report it exactly as it is. Currently spreadsheets are being used to record information, which leaves room for misreporting, errors etc. An automated system will remove this anomaly and improve compliance to a great extent. The Summit FT product was evaluated against products by competitors Murex and Calypso before it was finally adopted by Axis Bank.
Slide 38: Axis Bank: The Right Phone Banking CRM Software: A state-of-the-art call centre, with volumes of up to 40,000 calls a day, was set up by Axis Bank for centralised services and support of the organisation‘s products and processes. The aim was to take away routine jobs from branches so that they could focus on sales and services. These operations were to be shifted to the call centres, which would follow standard and focused processes. Based on the success of the first call centre, the services were to be extended to pan-India branches where enterprise-wide services and support were standardised. It was required to track trailing businesses from point of origination to consumption/culmination. With growth of the organisation, there was also a need for a complete automated human resources management system in place to cater to employee‘s requirements in an automated manner. The main objectives of the project were to select a operating system that had to be scalable, robust, secured, virus free and easily available. This was specially relevant from the point of the bank‘s credit card business so as to cater to 24x7 authorisations. Also, certified versions from respective vendors was of prime importance as this project was a large-scale enterprise-wide initiative. PROCESS-> The design and implementation of the bank‘s phone banking CRM software was carried out on an open architecture using Linux as the operating system. With RHEL cluster service, the database was clustered and achieved 99.9 per cent uptime. The remaining balance, 0.01 per cent was down for scheduled maintenance only. The project was implemented in a record time of three months. With a shared global file system, care was taken to ensure that load balanced applications were on active clusters. IMPACT-> Based on the success of the initial implementation in 2004 and the smooth running of the operating system — the services were up almost 99.9 per cent — the bank decided to go in for the large-scale enterprise-wide project. The solution has helped achieve the highest return on investment on the lowest total cost of ownership. The project served to enrich the banking experience for customers, made available a payment gateway for secured transactions and enabled extension of customer services across the country India. In the next phase, it seeks to automate HR management SCALABILITY-> The hardware sizing is for three-five years and it has yet to reach total scalability. However, one more node can be added in an hour to the system as the necessary clusters are already in place.
Slide 39: ORGANISATION COMPUTING RESOURCES: SOFTWARE RESOURCES Risk Management solutions provider for derivatives market, Pyxis Systems, has announced that UTI Bank has selected its RisKompass as the software solution for financial derivatives risk management. A software system for derivatives valuation and risk management, RisKompass enables clients to manage derivative trades in a further controlled way from the front to back office. Supporting the industry standard FpML (Financial Product Markup Language) protocol, it can manage valuation and risk management of a broad range of derivatives instruments. The system will handle derivatives such as interest rates and foreign exchange for UTI Bank. The implementation will provide the bank with an automated system that reduces manual effort to streamline its operations. The benefit envisaged by the bank is that everybody being on the same system, it can be accessed by anyone on the different locations of the bank. The users at the bank would include marketing staff, traders, dealers and risk managers. The solution will result in smoother deal processing, with verifying and online risk monitoring mechanism. It will streamline all operations and the risk mechanism can be monitored centrally. UTI will be replacing their Crystal Xcelcius system with this solution. Pyxis has developed utilities for data migration to this system. The solution is on a .Net platform, and will operate on the Windows operating system. The database employed is Oracle 9i. Pyxis has already conducted a training programme for the users at UTI, and their personnel will be present at their premises, providing on-site support, for a further period of three months. According to R.V.S. Sridhar, VP - Treasury, UTI Bank, The system is user friendly, and the software offers good portfolio management features and pricing capabilities required to meet the increasingly complex requirements of customer business. The process of implementation started in June 2006, and UTI will go live with the solution by mid-October, said Sunil Nikhar co-founder, & President, Pyxis Systems. Pyxis will offer full implementation, customization and maintenance support services for the solution. It is a very complex system, and it took Pyxis 18 months to develop it, added Nikhar. UTI Bank is the first customer for Pune based Pyxis and the company is into talks with some other large private banks for implementation of RisKompass. Axis Bank eShop NetBuy is developed by Axis Bank and is used by 2 users of Software Informer. The most popular version of this product among our users is 1.0. The product will soon be reviewed by our informers.
Slide 40: Axis bank testing new mobile payment method: Axis Bank is in advanced stages of beta testing a new method of using mobile phones to make payments. The service is expected to be fully launched in just three months. A pilot study involving 500 customers of Axis Bank is currently being conducted at various locations. If this mobile payment method is implemented, users can swipe their mobile phone and conduct various transactions, which were earlier possible using the credit cards. Atom Technologies, a subsidiary of the BSE-listed Financial Technologies (India) Ltd (FTIL), which runs the Multi Commodity Exchange of India has innovated a technology, which will enable mobile payments. Atom card- a product developed by the company and the accompanying software can embed a user's credit card data, over-the air like SMS into his mobile phone. A 2-D bar code will store this credit card detail, which will be unreadable for the user and will keep the credit card details safe even when the mobile phone is stolen or lost. Whenever, the mobile phone user has to make a payment he will have to provide his PIN details. After embedding the credit card details into the mobile phone, the instrument can be used in place of credit cards. Purchases can be made at a merchant establishment, which has the requisite software to implement the transaction. The company has called this swiping model as 'optical payment' and has received a patent in US for this payment mode. A simple webcam is required to read the 2-D bar code and can be implemented at merchant establishments at a very low cost. The software required to implement mobile transactions will be provided free of cost to merchants, banks and customers by Atom. However, this technology will be available for JAVA enabled phones at present. Many other companies like Bharti Airtel, Reliance Communications and C-Sam were also looking at offering mobile commerce solutions, but the Reserve Bank of India (RBI) is yet to give its clearance for a mobile wallet service in India.  Electronic Clearing Service (ECS Credit) ECS Credit is an electronic clearing system that facilitates paperless transaction through an offline system. Axis Bank facilitates ECS Credit at all ECS designated locations. We accept the electronic file and arrange obtention of settlement date (date of credit to benefiary account) from RBI/SBI/Local Clearing House as the case may be. The funds gets debited from a centralized account and credit is accorded to the respective beneficiaries as per settlement cycle. A detailed MIS about the transactions is provided to the customer.  NEFT To establish an Electronic Funds Transfer System to facilitate an efficient, secure, economical, reliable and expeditious system of funds transfer and clearing in the banking sector throughout India. The customer willing to avail the NEFT facility offered by us shall submit an "NEFT Application Form" authorising the sending bank to debit the sender's account and transfer funds to the beneficiary specified in the NEFT Application Form. The Beneficiary's account will be credited on the same day by crediting the
Slide 41: specified account of the beneficiary or otherwise placing funds at the disposal of the beneficiary.  Real Time Gross Settement (RTGS) RTGS System is a payment settlement system that minimises the credit risk in the prevalent cheque clearing system. Under RTGS the funds are settled on a near real time basis across Banks in different locations. Bank offers this immediate electronic fund transfer facility to RTGS enabled bank branches across through the country its designated RTGS enabled locations. ORGANISATION TRANSACTION PROCESSING SYSTEM: Team Inertia The way people do business has been changed significantly with the advent of the Internet Revolution. Today customers have an option to choose from a plethora of options while shopping for that favourite item. Web Commerce or Ecommerce has witnessed a significant increase in revenue year on year. You can now integrate this option to your website in the various Secured Payment Gateway Options we have to offer. Technologies are the authorized reseller for Axis Bank Payment Gateway Services in the state. EBS (E-Billing Solutions) is the Merchant Account providing company partnered with Axis Bank that visualizes you how to become more competitive and help you to make the changes to your online payment processing for risk free business. EBS "Payment Gateway" is specifically designed to accommodate the increasing demand by e-commerce companies for sophisticated payment solutions to tap the enormous opportunities for global Internet transactions. The system also includes several exciting new technologies that enable e-commerce businesses to make the things more customized and backend more user friendly with advanced features and technical know-how.
Slide 42: How It Works: Step 1: Customer select and adds item in the shopping cart And places the order on your (merchant) website. Step 2: Customer selects to pay via credit card . Step 3: Customer is redirected through EBS Payment Gateway to Transaction Processing Bank. Step 4: Customer enters credit card details on Secured Payment page. Step 5: Credit card information is transmitted securely to the corresponding bank for approval. Step 6: Corresponding bank sends appropriate information to the transaction Processing bank . Step 7: The result is forwarded to EBS (via the Transaction Processing Bank). Step 8: Customer receives a confirmation and is redirected to your (merchant) website.
Slide 43: EBS has taken tremendous steps to secure your transactions from fraud, data piracy and hacking. Some of the steps taken are as follows        An automated risk management system which triggers for all transactions and flags the transaction for risk involved. High Risk Transactions are manually investigated by our intelligence team and Risk control unit at your customers and their issuing banks working hours. RMS parameters. Verisign 128 bit SSL encrypted. Hacker safe certification. PCI Audited servers. Robust secured highly strategic data servers and network design for sustaining heavy traffic transaction and data load.  Extensive Network Axis Bank has its own branches in various locations. Above this our arrangement with reputed correspondent banks covering more than 900 locations ensures that most of your cheques are covered under our network and the realisation status can be known at the earliest.  Lower Interest Costs & Improved Liquidity A dedicated HUB ensures that you receive funds in your designated account within transit time thereby reducing interest costs and improving your liquidity position.  Centralized Service Desk A dedicated service desk has been started at our Centralised Collection and Payment HUB (CCPH) to ensure that your queries are resolved quickly and efficiently. The Customers can contact CCPH regarding any query about the MIS or the process flow.  Web CMS Web CMS provides you with all the information at a click. Detailed MIS like location wise collection and return, product-wise pooling, pooling in pipeline (due credit report) etc. can be viewed and downloaded from web interface through internet.  Comprehensive MIS We provide comprehensive MIS reports like daily report, transaction report future credits reports and cheque returned unpaid report. On the payments side we provide daily paid unpaid status for the demand drafts, cheques or warrants issued by your Organisation.
Slide 44: Operations Overview At Axis Bank Now with a name having universal appeal, the banks is now working towards becoming a multinational bank and diversify into other financial services like AMC, insurance and restructure operations to reflect a modern approach to banking. AXIS bank has differentiated itself very well on the basis of high level service and product quality. They have successfully implemented the change and due to this their market share has increased only despite of tough competition prevails. Regarding the re-branding strategy, Executive director (corporate strategy) of Axis bank R Ashok Kumar said the bank had hired advertising firm O&M to help in creating awareness of the new brand across the country. The bank would change logo and colour of logo, he had said, adding, the bank is likely to spend around Rs 50 crore (Rs 500 million) in the re-branding exercise .This rebranding becomes more important as the Bank takes its initial steps in establishing a global footprint. Restructuring The bank has appointed Mckinsey and Company to suggest the restructuring and it will also prepare Vision Document 2015 for Group Axis. Roadmaps for new businesses are likely to be part of the vision document and the new businesses will include insurance, brokerage and Ibanking. This is not the first time Mckinsey is suggesting a revamp to Axis Bank. In the past, the consultants have worked with Axis's corporate lending and capital markets team. But now the focus will be a lot broader and the entire group will be covered in insurance. For example, the question is should Axis remain a distributor of Metlife's products or should they start their own products. The financial year 2008 was a roller-coaster year for the banking industry. Axis Bank churned out an impressive earnings growth on the back of an aggressive business growth and capital infusion. The retail banking operations of Axis Bank contribute about 20% to the bank's total income and only 8% to its bottom line, making it the least profitable segment. Wholesale banking is most lucrative business for the bank owing to its strong position in the loan syndication business. However, significant focus on strengthening the current account and savings account (CASA) should drive Axis Bank's profitability going forward. The restructuring of the corporate banking business has helped the segment achieve a strong growth (a 68.3% growth in corporate advances). A leadership position in the loan syndication business provides further momentum to the corporate banking business.
Slide 45: Information Technology: Technology is the key to deliver customised financial solutions. The Bank aims to maintain a scalable computing infrastructure backed by a robust network architecture that delivers service across multiple channels for customer convenience and cost reduction through operational efficiency. In order to retain a competitive edge, the Bank's technology infrastructure is continuously upgraded. In tune with business priorities, the IT strategy has been focused on capacity enhancement to be able to maintain an efficient servicing capability in a multi-channel delivery environment. During the year, many pioneering efforts have been taken towards use of technology in the Bank such as being the first among Indian banks in submitting centralised R-Return for foreign exchange transactions by the 'B' category branches to RBI, being the first bank in the country to market EMV chip embedded Debit Platinum, Travel Currency and Credit Platinum cards, development of a product for Business Banking for printing cheques at the customer locations after due validations of issuing a cheque series. This facility allows integration with the corporate ERP systems to print dividend warrants and issue payments directly from customers' premises. The Bank has taken various initiatives in the area of increasing use of technology in its day-to-day operations. The most notable achievement this year was in the area of financial inclusion, where the Bank was successful in deploying a separate dedicated core banking solution, which has the capability of maintaining liability accounts as well as agricultural lending accounts for microfinance. The current volumes handled in the software are 6.21 lacs accounts. This has allowed the Bank to substantially reduce transaction costs while complying with regulatory standards. The unique capability of the solution is the bulk account-opening and transaction-handling potential without manual intervention. The Bank was in the forefront in the use of advanced imaging technologies to improve workflow processing and reduce the cost of centralized operations of CPU and TFC (Trade Finance Centre). The imaging technologies like Optical Character Recognition (OCR), Optical Mark Recognition (MCR) have been deployed to capture images of account opening forms of liability and trade finance documents. This facility was extended to the Hong Kong branch operations and helped in improving processing efficiencies. The Bank has also extended this technology to its Cheque Truncation System (CTS) implemented in the NCR region. The Bank's New Delhi Service Branch caters to more than 50,000 clearing instruments per day for the branches within its jurisdiction. The Bank was awarded the ISO 27001:2005 certification for process management in delivery channels (ATM and Internet Banking) in February 2009. The ISMS certification was given for conforming to quality standards in respect of protecting client related information from different kinds of security threats, and for maintaining integrity as the supplier of services to external and internal customers. The Bank's IT proficiency was recognized in the Indian Banking Technology awards conducted by IBA (Indian Banks Association) in January 2009 and the Bank received awards in the categories of (a) Best use of Business Intelligence, and (b) Rural Initiatives for Financial Inclusion, from among the 10 categories of awards.
Slide 46: Operations And Complience: Operational procedures for delivery of products and services were constantly refined during the year under review from the perspective of implementation of best practices, risk identification and containment. An operational framework has been established in order that all transactions are handled with precision. Operational parameters and control functions were refined to ensure efficient functioning of branches. The Bank continued to vigorously pursue its commitment in adhering to the highest standards of compliance and management of compliance risks in the current global meltdown. The existing products and processes were subjected to vetting from the compliance standards during the year in accordance with the Bank's compliance policy, which is based upon the rules, laws and standards of regulatory as well as non-regulatory bodies, both domestic and overseas. During the year, the mechanism for monitoring and identification of suspicious transactions in accordance with the regulatory requirements was further reinforced. The technological initiatives undertaken for dissemination of regulatory/internal guidelines and inculcation of compliance culture at the grass roots level were well received. The skill sets of staff on implementation of regulatory guidelines on 'Know Your Customer' norms and fraud prevention were strengthened during the year. Focused efforts were made at all levels to ensure prompt redressal of customer grievances. The code of commitment of micro and small enterprises was adopted during the year to support the development of this segment. Suitable steps are being undertaken to meet the emerging challenges in the identification of unusual transactions through customer profiling and inculcation of a compliance culture at the grass-root level. Introduction of a compliance self-testing template for business functions and branches is expected to aid the achievement of compliance objectives of the Bank. No instance of compliance failure was registered during the year against the Bank by any of the regulators. Corporate Banking Operations: Corporate Banking Operations (CBO) within the Bank involves monitoring the accounts of large/mid-corporates and SME customers while ensuring compliance with the regulatory guidelines and systems and procedures of the Bank in the conduct of credit operations. CBO Division is created at branches where advances exceed Rs. 50 crores, in order to ensure that the operational risks in monitoring the advances and other related issues are well mitigated. In case of other branches, trained and experienced manpower is posted when the number of borrowal units and the advances level exceed a minimum threshold level. As part of business process re-engineering, 8 city specific centralised CBO Hubs called Credit Management Centres (CMCs) have been opened during the year for standardizing the skill pool for efficient monitoring and control of advances. Facilitation Centres have been set up at select branches of these 8 centres for providing prompt customer service in co-ordination with CIVIC. Other branches located at these cities have been mapped to the closest facilitation centres for all their credit, domestic trade finance and related operations. CBO Divisions and CMCs handled 86% of the Bank'stotal domestic non-retail credit portfolio, ensuring that trained and experienced personnel are monitoring a substantial percentage of advances.
Slide 47: Internal Audit: The Bank's Internal Audit function performs an independent and objective evaluation of the adequacy and effectiveness of internal controls. This ensures that the operating and business units adhere to systems and procedures as also regulatory and legal requirements. The effort is to continuously benchmark against international best practices and procedures in the area of internal control systems. It is also pro-active in recommending quality enhancement measures in operational processes based on audit findings. Internal Audit department has conformed to 'Quality Management System' (QMS) and its internal processes have been certified to be ISO 9001:2000 compliant by International certifying agency M/s Det Norske Veritas AS, Netherlands. The Bank's Internal Audit function undertakes a comprehensive risk based audit of all branches, retail asset centres and service branches. An annual audit plan is drawn up on the basis of a risk profiling of auditee units. The scope of risk-based internal audit encompasses the examination of adequacy and effectiveness of internal control systems, as well as external compliance and evaluating the risk residing at the auditee units. Central Office departments of the Bank are also subjected to inspection and audit. Around 60% of the Bank's total business and 75% of total advances are subjected to concurrent audit. Information System audits are also conducted at all the branches, the Banks' Data Centre, Business Continuity Centre as also all the relevant departments at Central Office. Internal Audit has also developed an effective off-site surveillance system. During the year, the operations of the Internal Audit function have been decentralized by opening Zonal Internal Audit offices at four metros namely Delhi, Chennai, Kolkata and Mumbai for better operational efficiency and quicker turnaround time. To ensure independence, the Internal Audit Function has a reporting line to the Audit Committee of the Board, which oversees its performance and reviews the effectiveness of controls laid down by the Bank and compliance with regulatory guidelines. International Banking: The international operations of the Bank are at the core of the strategy to expand the horizon of the product offerings and delivery channels to various geographies and across client segments, covering the spectrum of retail and corporate banking solutions. The international presence of the Bank now comprises branches in Singapore, Hong Kong and DIFCDubai, and representative offices in Shanghai and Dubai, besides alliances with banks and exchange houses in the Gulf Cooperation Council (GCC) countries. While the foreign branches primarily offer corporate banking, trade finance, treasury and risk management solutions, the Bank's retail initiatives in the GCC caters to the large Indian diaspora and promotes the Bank's NRI products. In a year marked by an unprecedented upheaval of the financial markets that has changed the contours of the global financial system, the international operations of the Bank displayed resilience and recorded impressive growth in assets and deposits, and maintained profitability. The total assets of the foreign branches now constitute 7.90% of the total assets of the Bank and grew by 38.55% to touch USD2.30 billion from USD 1.66 billion a year ago. Despite the prevailing recessionary trends in the developed world economies, the asset quality at foreign offices continues to be satisfactory with zero level of non-performing assets. The Bank continually evaluates the prospect of a wider product offering as well as deeper reach, and has been working towards offering private banking services out of its foreign branches, which has now commenced.
Slide 48: Strategic Tie-ups:Tie- up with Banque Privee Edmond de Rothschild Europe: Axis Bank and Banque Privee Edmond de Rothschild Europe have signed an agreement on September 19, 2007 in Luxembourg. This Agreement enabled both organisations to work together and provide Wealth Management solutions to overseas Indians. Mr. P.J. Nayak, Chairman & CEO, Axis Bank after signing the agreement said ―As we have embarked on creating an international franchise for the Bank, a key aspect of our international strategy is to focus on financial advisory services and wealth management solutions for overseas Indians. Our association with Rothschild, who are known for their expertise in Wealth Management, marks a significant step in this direction which will enable us to bring world class wealth management solutions to our customers.‖ The tie-up will also enable Axis Bank to offer investment opportunities in global financial products for overseas Indians and will offer the joint products through its branches in Hong Kong, Singapore and Dubai. Axis bank has set up three branches in Singapore, Hong Kong and Dubai—and one representative office in Shanghai, which will be converted into a bank. ―Within a year of its operations, our Singapore branch has already created $750 million (Rs3,038 crore) in assets and is profitable. Three years from today, I see foreign operations accounting for 15% of our bank‘s total assets. We have metamorphosed into an Asian bank and at the next stage will become a global bank,‖ Nayak said Tie-ups with various Govt. Departments: The Bank has entered into tie-ups with various Govt. Departments for providing various G2B and G2C online payment facility to the citizens and businesses thus providing convenience to them.Few of the important online payment tie-ups entered into by Axis Bank with various Govt. Departments is as under: Govt. Departments DGFT ePayments MCD - Municipal Tax or Fees ePayments MCD - eTendering Project  IRCTC - Online Railway Reservation Sampark - Utility Bill ePayments Bangalore One Project - Utility Bill ePayments DGFT ePayments The Bank has tied-up with Directorate General of Foreign Trade (DGFT), under Ministry of Commerce, for the facility of online payment of import or export application fees through Internet by the importers or exporters with valid Importer Exporter Code (IEC) and having their account with Axis Bank through DGFT website http://www.dgft.gov.in/  MCD - Municipal Tax or Fees ePayments
Slide 49: The Bank has tied-up with Municipal Corporation of Delhi (MCD) wherein citizens maintaining Accounts with Axis Bank can make online payment of Municipal Taxes and Fees at the website www.mcdonline.gov.in  MCD - eTendering Project The Bank has tied-up with MCD for e-tendering project wherein citizens, contractors, suppliers maintaining Accounts with Axis Bank can make online payment of Tender Document Fees, EMD, etc. directly through their Axis Bank Account at the website http://mcdetenders.com/  IRCTC - Online Railway Reservation The Bank has tied-up with Indian Railway Catering and (IRCTC) for its online Railway Reservation or Ticket Booking System wherein citizens maintaining Accounts with Axis Bank can make online payment of Ticket charges for confirmed booking at the website http://www.irctc.co.in/  Sampark - Utility Bill ePayments The Bank has tied-up with Chandigarh Administration for its "Sampark Project" wherein citizens maintaining Accounts with Axis Bank can make online payment of various Utility Bills (namely Electricity Bills, Water Bills, Municipal Taxes, etc.), pertaining to the Departments and Utility Service Providers participating in the "Sampark Project", directly through their Axis Bank Account at the website www.sampark.chd.nic.in Additionally, citizens can also make payment through Credit or Debit Cards on Axis Bank's Internet Payment Gateway.  Bangalore One Project - Utility Bill ePayments The Bank has tied-up with Govt. of Karnataka for its "Bangalore One Project" wherein citizens maintaining Accounts with Axis Bank can make online payment of various Utility Bills (namely Electricity Bills, Water Bills, Municipal Taxes, etc.), pertaining to the Departments and Utility Service Providers participating in the "Bangalore One Project", directly through their Axis Bank Account at the website www.bangaloreone.gov.in. Additionally, citizens can also make payment through Credit or Debit Cards on Axis Bank's Internet Payment Gateway. Other Tie-ups: Axis bank has also tied up with Western Railways (Mumbai), Central Railways (Mumbai), Pantaloons, HPCL, and BPCL for setting up ATMs at their locations. Almost all costs related to setting up and maintenance of an ATM network are fixed. Thus, the challenge for the Bank has been to migrate customers to this channel and develop new streams of revenues from this channel, in order to make the channel viable. The Bank has achieved tremendous success in this regard. We have been able to migrate about 90% of all cash disbursement transactions to our ATMs.
Slide 50: To generate direct revenue from the ATM Channel, the bank has adopted 2 strategies: - ATM Sharing with other banks - New functionalities such as mobile airtime refill, bill payment & mutual fund sales through which our bank earns a commission The bank has also set up ATM galleries at 3 locations. Each of the Gallery has 2 ATMs for the convenience of the customers, information kiosk, a card operated touch-screen internet kiosk, though which the customers can access their i-Connect accounts with bank and perform their banking transactions such as funds transfer, bill payment, balance inquiry etc. A bill payment kiosk has also been set up at this gallery. The ATM Channel for the bank has been a major customer acquisition tool. Increasingly the channel is being seen as a customer-servicing tool and all the new value –added services are part of that initiative. New Initiatives:a) Remittance Card: The AXIS Bank Remittance Card. Launched in association with Remit2India.com, is a unique product that has changed the way money is sent across borders. Remitters from 23 different countries including the USA, UK, Gulf Countries can send money to India through the Remittance Card. The product is available as a delivery mode (other delivery modes being Demand Drafts/Direct credits to Bank accounts) for remittances made through the Web Portal www.Remit2India.com. Based on the remitter‘s request, we prepare a personalised Remittance Card for the beneficiary, which is preloaded with the funds remitted to him in INR. The card is sent in a Welcome Kit to the beneficiary, who has to take it to the nearest AXIS Bank branch to complete some basic formalities in order to activate his/her card. Once the card is activated, it works just like a normal ATM-cum-Debit Card, usable at all VISA ATMs for withdrawing funds and at all VISA enabled POS outlets to pay for purchases. Subsequent remittances are directly loaded onto the card and provide the beneficiary with almost instant access to the funds remitted to him.Thus, the product is primarily aimed at providing a hassle-free and convenient solution to beneficiaries who receive remittances on a regular basis. Other features provided to Remittance Card customers are as follows: ➢ Multi-city At Par chequebook (on request) ➢ No minimum average balance requirement ➢ Encash facility ➢ Quarterly interest payment ➢ Daily Cash Withdrawal Limit of Rs. 40,000/➢ Free Insurance cover comprising of: ➢ Purchase protection ➢ Zero lost card liability ➢ Internet and Telebanking facility
Slide 51: b) VISA Money Transfer Service: The VISA Money Transfer Service has now made it possible to send money from an AXIS Bank account to any of the 28 million VISA Cards issued in India. Beneficiary of Funds: The beneficiary of the funds should have a VISA Card (debit or credit, issued in India). In case the beneficiary VISA Card is linked to more than one bank account, funds will be transferred to the primary account linked of the card. Availability: The service has been enabled through all our ATMs and i-ConnectTM. Usage: The VISA money Transfer service can be used for the following purposes: ➢ To send money to any of the 23 million VISA Cards anywhere in India. ➢ To pay VISA credit card bills by giving the card number and making a direct payment. Time Taken for Funds Transfer: Although the sender‘s account would be debited instantaneously or on the scheduled date with the transferred amount, the funds will reach the beneficiary‘s VISA Card within one or two working day, depending on the time of transaction. c) EMV standard based Platinum Credit Card: Axis Bank today launched India‘s first ‗Visa Platinum Credit Card‘ based on the EMV (Europay, MasterCard, Visa) Standard. The Card has an embedded chip, which stores cardholder‘s information in an encrypted format, thereby providing the highest level of security to the cardholder against possible misuse. The Platinum Chip offers clear authentication of debit and credit payments combined with easy fraud detection. The chip cannot be duplicated, ruling out counterfeiting and skimming. This makes your card safer and secure than any other card in India. EMV based chip card also ensures secure exchange of information between the Card and Bank‘s Authorization system (because of presence of cryptogram in the online requests/responses). Higher data storage enables card to perform multiple functions. e.g. Efficient Rewards Management by offering chip based loyalty solutions, instant reward redemption, multiple programs on single card etc. How does it work:Step 1:  The merchant inserts the chip card into his EDC terminal in the chip reader slot. The card need not be swiped.  The card remains inserted in the terminal throughout the transaction .
Slide 52: Step 2:  The purchase amount is entered in the terminal.  Once the purchase is approved a receipt will be printed. Step 3:  The Cardholder signs the receipt and removes his/her card from the terminal.  Transaction processing does not require PIN entry by the Cardholder. Alternate Channels: Axis bank has following Alternate channels: - ATM Channel - Internet Banking Channel - Tele-banking Channel - Mobile Banking Channel
Slide 53: ATM Channel: As of now Axis bank has more than 3500 ATMs. This includes all its onsite and off-site ATMs. All its ATMs are connected to Base24 ATM switch, which in turn interacts with their centralized core banking software for transaction processing. The Bank through its ATMs offers the following services: Banking Services: - Cash Withdrawal, with real time debit to customer's account - Cash & Cheque Deposit - Balance enquiry - PIN Change Other Services: - Mobile Airtime Refill for Hutch, Airtel Idea, BPL, RIM, TataTele - Facility for Non UTI bank VISA card holders to refill their Prepaid - Life Insurance Corporation Premium Payment - Bill Payment e.g.: BSNL, MTNL - Funds Transfer (within own accounts) -Online Donations to Trusts & NGOs. - Purchase and redemption of UTI Mutual Fund Schemes through the phones. ATM. Shared Resource: Axis bank has been a pioneer in developing shared networks in the country. Apart from acquiring ATM Transactions through VISA/MasterCard; we have ATM Sharing Arrangements (Bilateral and Multilateral) with the following partners: Bilateral ATM sharing arrangement 1. State Bank of India 2. ABN Amro Bank 3. Bank of Rajasthan 4. Karur Vysya Bank 5. Andhra Bank Multilateral: 1. Cashnet (A shared network run by Euronet India Pvt. Ltd.) 2. BANCS (Formerly known as Swadhan. Now run by E Funds Ltd.)
Slide 54: Internet Banking Channel: Since April 2000, the Internet Banking channel has grown fast to complement the branch and ATM network. As of March 2006, there are around 20 lac users of Internet Banking, which amounts to more than 50% of our retail banking savings account customers. Apart from routine functional like balance and transactions lookup, axis bank also provide a number of value-added services on the Internet banking platform. A brief description of each product is given below: Funds Transfers: Currently, we offer three types of funds transfers: -To the customers own Axis Bank account (linked to same customer id). -To any Axis bank account -To any account in any other bank in India. Power Transfer: This service is available for transfers to any branch of any bank provided the branch is in the 15 RBI centres in the country. All the above services are free to our savings bank customers. Porwer Transfer, however, is charged at Rs.17 per transaction for customers other than savings account customers. Bill Payment: The bill payment services on the Internet can be classified into 3 categories:Presentment or EBPP (Electronic Bill Presentment and Payment): Under this type of bill payment, the customer needs to register for each bill. Once registered, the biller will send an electronic version of the bill for acceptance and payment. Direct Payment: Under this type of bill payment, no bill presentment happens. The customer is free to select the biller and pay accordingly to his convenience. Payee: This is a variation of direct payment method with the customer creating his own biller. E.g. payment of rent to landlord. The landlord‘s account details would typically be entered and payment made on a recurring basis. Shopping: A customer with Internet banking access can buy from merchants registered with us and pay through the direct debit facility on our website. Other Services: Apart from the above, the customer can give requests for stop payments and cheque books.
Slide 55: Mobile Banking Channel: Mobile banking was launched by the Bank in October 2004. Within the one and a half year, Axis bank‘s customer base has grown to over five lac subscribers as of April 2006. It offers the following two type services in mobile banking: Automatic Alerts: A subscriber is alerted through SMS on the activities in his account with automatic alerts for every debit or credit in his account of more than Rs. 5,000. Also, if the customer is registered for bill payments, he receives an alert as soon as a bill is presented by the biller for payment. Benefits: - Safety: Be alerted on any transaction above Rs.5,000 in your account so that action can be initiated promptly in case of any misuse of the account. - Convenience: Know the status of the account from wherever you are. Charges: The service is chargeable at Rs.100 plus taxes (total Rs.112.24) for all customers other than Senior Privilege accountholders, Priority accountholders and staff. Update Mobile Number: The customer can update his mobile number through the following channels: ➢ Branch (through a written request or form) ➢ iConnect ➢ ATM De-register: The customer can de-register through the following channels: ➢ Branch (through a written request or form) ➢ iConnect ➢ SMS (by sending SUSPSMS to the mobile banking number)
Slide 56: Marketing objectives Banks wants to achieve following marketing objectives by the end of year 2011: To get the market capitalization 500 Crore. To get the 200 Crore retail investment. To get 125 Crore Corporate investments. To get the 175 Crore Capital investments. At present Axis bank is ranked at the 6th position (overall) by its market share and capitalization and 3 rd in the private banks category. It wants to get the 3 rd position in overall Indian banking market. EVOLUTION OF THE MARKETING CONCEPT The Role of marketing in the banking industry continues to change. For many years the primary focus of bank marketing was public relations. Then the focus shifted to advertising and sales promotion. That was followed by focus on the development of a sales culture. Although all the elements of the marketing concept – customer satisfaction, profit integrated framework, and social responsibility – will remain important, customer satisfaction must receive the greatest emphasis in the years ahead. The chief concerns of most bank executives still focus on legal and regulatory issues, according to most surveys. Community banks are particularly concerned with eliminating barriers that give unfair advantages to financial services competitors, such as credit unions. However, another concern pertains to technology: keeping nonblank competitors out of the payment system. Bankers Identify Near-Team and Long Term Concerns 1991 Maintaining profitability Credit Portfolio Management Service Quality Regional Economy Cost Management / Expense reduction Declining Earnings/ more failures Market / customer focus Capital adequacy Stock market value Industry Overcapacity 2015 Service quality Maintaining profitability Market / customer focus Operations/systems/technology Credit portfolio management Productivity improvement Investment to stay competitive Stock market value Asset/liability management Electronic Banking
Slide 57: When this gateway system was first proposed, access to the Internet was very new and few banks had the resources and knowledge to set up their own direct-access lines for customers. Customers have shown a growing interest in online banking services, and banks have responded by quickly putting in place proprietary sites on the World Wide Web and offering PC banking. Within the next five years, 93 percent of community bank executives surveyed say they plan to offer telephone banking, and 79 percent plan to offer PC banking. When asked which technology holds the most potential for the future, bank executives identified call centers first. As customers continue the transition the transition into a high-tech world in which they want information and answers more quickly and accurately than ever before, call centers offer the ideal bridge. With 24-hour access to either automated information or live operators, customers do everything from check their accounts to apply for a loan. Bank executives also identified PC banking as having the most promise for the future, followed by Interest access and broad function kiosks. MARKETING AND COMPETITION In view of the declining profitability and productivity of the banking sector and extremely low rate of profit percentage, the determination of the financial health of the system requires drastic remedial measures not only to build up investor confidence but also to combat competition from all over. It is time that the pros and cons of the oncoming banking era are properly understood and advantage taken of various opportunities. This will require an efficient marketing approach to bank management in which target markets will be tackled successfully along with effective satisfaction levels and in which the usual basic elements – product, pricing, promotion and distribution will be taken care of in a proper format of an efficiently working marketing organization. The nationalised banks must face competition from private banks, non-banking financial institutions, foreign banks and others. The competition is in the fields of deposits and credits, foreign trade, consumer credit and miscellaneous banking activities. The competition will benefit customers and force the banking system to raise its productivity, minimize expenses, and remain sensitive to evolving issues. Narasimham Committee Reports while recommending internal autonomy long with compliance with prudential norms suggested rule-based credit policies, fiscal balance and a gradual movement towards liberatlisation. To deal with the competition from foreign banks, the Indian banks should go in for diversification and extension of services as well as expansion of products and business. Economic freedom and innovative
Slide 58: spirit have contributed greatly to the success of the market-oriented financial sector in the Western countries. Directed credit and investment has done just the opposite. Interventionism is not necessarily bad provided it is associated with a committed leadership. Indian financial sector had for more than four decades, neither full economic freedom nor a well disciplined interventionism so that it cost operational flexibility as well as functional autonomy both of which were concerned with profitability performance and related factors. MARKETING CONCEPTS Its application to Banking, When we apply marketing to the banking industry, the bank marketing strategy can be said to include the following – i) ii) iii) A very clear definition of target customers. The development of a marketing mix to satisfy customers at a profit for the bank. Planning for each of the ‗source‘ markets & each of the ‗use‘ markets (A Bank needs to be doubly market – oriented – it has to attract funds as well as were of funds & services. iv) Organization & Administration. BANK MARKETING We define bank marketing as follows: ―Bank marketing is the aggregate of functions, directed at providing services to satisfy customers‘ financial (and other related) needs and wants, more effectively and efficiently that the competitors keeping in view the organizational objectives of the bank‖. Bank marketing activity. This aggregate of functions is the sum total of all individual activities consisting of an integrated effort to discover, create, arouse and satisfy customer needs. This means, without exception, that each individual working in the bank is a marketing person who contributes to the total satisfaction to customers and the bank should ultimately develop customer orientation among all the personnel of the bank. Different banks offer different benefits by offering various schemes which can take care of the wants of the customers. Marketing helps in achieving the organizational objectives of the bank. Indian banks have duel organizational objective – commercial objective to make profit and social objective which is a developmental role, particularly in the rural area. Marketing concept is essentially about the following few thing which contribute towards banks‘ success: 1) 2) 3) The bank cannot exist without the customers. The purpose of the bank is to create, win, and keep a customer. The customer is and should be the central focus of everything the banks does.
Slide 59: 4) It is also a way of organizing the bank. The starting point for organizational design should be he customer and the bank should ensure that the services are performed and delivered in the most effective way. Service facilities also should be designed for customers‘ convenience. 5) 6) Ultimate aim of a bank is to deliver total satisfaction to the customer. Customer satisfaction is affected by the performance of all the personal of the bank. All the techniques and strategies of marketing are used so that ultimately they induce the people to do business with a particular bank. Marketing is an organizational philosophy. This philosophy demands the satisfaction of customers needs as the pre-requisite for the existence and survival of the bank. The first and most important step in applying the marketing concept is to have a whole hearted commitment to customer orientation by all the employees. Marketing is an attitude of mind. This means that the central focus of all the activities of a bank is customer. Marketing is not a separate function for banks. The marketing function in Indian Bank is required to be integrated with operation. Marketing is much more than just advertising and promotion; it is a basic part of total business operation. What is required for the bank is the market orientation and customer consciousness among all the personal of the bank. For developing marketing philosophy and marketing culture, a bank may require a marketing coordinator or integrator at the head office reporting directly to the Chief Executive for effective coordination of different functions, such as marketed research, training, public relations, advertising, and business development, to ensure customer satisfaction. The Executive Director is the most suitable person to do this coordination work effectively in the Indian public sector banks, though ultimately the Chief Executive is responsible for the total marketing function. Hence, the total marketing function involves the following: a) Market research i.e. identification of customer‘s financial needs and wants and forecasting and researching future financial market needs and competitors‘ activities. b) Product Development i.e. appropriate products to meet consumers‘ financial needs. c) Pricing of the service i.e., promotional activities and distribution system in accordance with the guidelines and rules of the Reserve Bank of India and at the same time looking for opportunities to satisfy the customers better.
Slide 60: d) Developing market i.e., marketing culture – among all the customer-consciousness ‗Personnel‘ of the bank through training. Thus, it is important to recognize the fundamentally different functions that bank marketing has to perform. Since the banks have to attract deposits and attract users of funds and other services, marketing problems are more complex in banks than in other commercial concerns. INCREASING IMPORTANCE OF MARKETING IN BANKING INDUSTRY The various other factors which have led to the increasing importance of marketing in the banking industry are categorized as follows: Government Initiatives The Indian economy embarked on the process of economic reform and various policy measures initiated by the government resulted in the increasing competition in the banking industry, thereby highlighting the importance of effective marketing. The Narasimhan Committee Report evidence of the Government‘s desire to ‗re-regulate‘ the banking industry so as to encourage efficiency through competition. The Government initiatives include: Deregulation of Interest Rates The bank may reduce their Minimum Lending Rates so as to attract customers (individual and corporate). Such reduction in lending rates reduce the spread between the deposit rates and lending rates, i.e. the banks margins would decline and they would have to increase their volumes or provide attractive services so as to maintain profits. This calls for bank marketing. Increasing Emphasis on Bank Profitability: With the Narasimhan Committee Report, banks have been directed to improve their efficiency, productivity and profitability. Banks are required to be self-sufficient. In fact, the report has adopted the BIS standards of capital adequacy (though in a phased manner). Foreign Banks Foreign banks offer stiff competition to the Indian Banks and with their superior services and technology offer them a competitive advantage. Thus Indian Banks have to effectively apply marketing concepts to attract customers.
Slide 61: Entry of New Private Banks In the early ‗90s new competition emerged in the form of new Private Banks, who brought along with them a high technology-based banking matching with International Standards and have made a significant dent in the banking business by capturing substantial share in the profits of the banking industry. Reduction of Statutory Liquidity Ratio: With the Government‘s aim of reducing the SLR to 25 percent, the banks will have surplus funds for which they will have to attract users. Social Environment Increasing Urbanization, Education and Awareness: The higher literacy level, migration to urban areas and higher awareness due to the boom in the mass media have important implications for the retail banker. He needs to be conscious of the fact the increasing proportion of people are aware of financial service and are, therefore demanding and expecting higher quality services. Increasing Urbanization, Education and Awareness: The higher literacy level, migration to urban areas and higher awareness due to the boom in the mass media have important implications for the retail banker. He needs to be conscious of the fact the increasing proportion of people are aware of financial service and are, therefore demanding and expecting higher quality services. Decline in Traditional Indian Values (Borrowing as Taboo), Rising Consumerism, Rise in the Percentage of Working Women. Technology Development Modernization of Technology has facilitated the introduction of new banking services as to attract new customers. An example of this is the ‗Automated Teller Machines‘ or the facility of ‗Any Time Money‘. Also in foreign countries, banks are experimenting with money transmission at Point of sale, e.g., petrol station linked with banking network. Credit is Easier to Obtain Growing Importance of Non-Banking Financial Institutions: Fixed Deposits being offered by the NBFC‘s are very attractive for the public, because of the wide gap of interest rates offered by banks on term deposits and that offered by the NBCS‘s. further, they offer a variety of specialized services to their customers so as to attract and retain them. Disintermediation: The increasing role of capital markets in mobilizing funds is reducing the importance of banks as intermediaries. Companies are directly approaching the savers through the capital markets. Mutual funds help in attracting the small investors who do not want to take much risk. STRATEGIES FOR EFFECTIVE BANK MARKETING IN INDIA
Slide 62: Introduction: Since the inception of globalization in India, banking sector has undergone various changes. Introduction of asset classification and prudential accounting norms, deregulation of interest rate and opening up of the financial sector made Indian banking sector competitive. Encouragement to foreign banks and private sector banks increased competition for all operators in banking sector. The protective regime by the authority is over. Indian banks are exposed to global competition. Even competition within the country has increased manifold. The almost monopoly position enjoyed by the public sector banks of India is no more existence. Under this development Indian banks needs to reinvent the marketing strategy for growth. The spread of the bank in Indian rural and semi urban areas are highly different from state to state and region to region. Many states have fewer networks of bank branches in the rural areas. Under such scenario different marketing approach for different areas is required. If the bank follows the same marketing strategy for all areas the success would be difficult. Marketing approach for urban area: The urban areas of India are developed taking into account all parameters of development. The level of income of the people, the literacy rate and level of education as well as awareness of the people about rights of the customer are higher than that of the rural and even semi urban areas. Thus here for effective bank marketing different approach is necessary than that of rural areas. The marketing strategy should be based on customer service and the use of modern technology in banking. Under competitive environment for the success of the business, better customers and retaining existing customers is possible only with customer service. Use of modern technology in urban areas will also go long way for marketing of banking services. Technology based service like credit card, debit card, ATM, anywhere banking, internet banking, and mobile banking are necessary for urban areas. This is because it enables customers to perform banking transactions at their convenience. Business hours of a bank are also an important factor for urban banking. India many private sector banks, especially co-operative banks and now even some of the public sector banks have also started this practice and they find it successful. To attract business and wholesale customers, banks need to adopt technology based product and service which is suitable to such class of customer. For instance RTGS, collection of out station cheques, issuing the cheques at par at any branch in the country, cash management facility, DD boutiques etc. are necessary. Another strategy for effective marketing is bank need to change the focus from the traditional banking to universal banking. In urban areas the extend and variety of economic activities demands that one institution should meet all financial need of a customer. Under such an expectation of people universal banking would prove successful approach for bank marketing. The term ‗universal banking‘ in general
Slide 63: refers to the combination of commercial banking and investment banking, i.e., issuing, underwriting, investing and trading in securities. A universal bank is a supermarket for financial products. Under one roof, corporate can get loans and avail of other handy services, while individuals can bank and borrow. For increasing customer base and retention of the existing cliental universal banking approach is effective strategy. Universal banking offers number of benefits to customers as well s the banks. For instance, economies of scale arise in multi-product firms because costs of offering various activities by different units are greater than the costs when they are offered together. Universal banking approach is beneficial to bank also. For banks economies of scale relate to costsavings through sharing of overheads and improving technology by jointly providing generically similar groups of services. Since universal banking basically provides financial services the inputs like manpower, infrastructure is more or less same. Necessary changes in the inputs can be made easily. For instance training can be given to staff for providing different financial services to customers. Moreover the most important benefit for the bank is that it is useful to increase the fee based income of the bank. Financial sector passing from lower interest rate regime at present and added to this the process of disintermediation is affecting the main and the traditional source of income for the banks i.e. interest income. All banks are striving hard to increase their fee based income to improve their bottom line. Universal banking can help the banks here positively. Marketing approach for rural areas: Prior to nationalization of banks in 1969, the rural areas were virtually without banking facility. At that time unorganized sector was dominating in the rural finance. After nationalization of banks in 1969 branches of the banks were started gradually in the rural areas also. Today more than 50 percent branches of the banks are found in the rural areas. However, the distribution of banks in the rural areas is highly uneven. Here banks have to face competition with the unorganized sector. Moreover the rural banking is highly regularized activity by the Government in India. Lending as well as interest rate is regularized. Thus under such environment different marketing approach is required. For effective rural marketing product development, promotion and communication is important. All these parameters banks have to balance with socio-economic factors prevailing in the rural areas. Bank need to innovate product that could attract the depositors. Various loan schemes that are suitable for them for getting funds at right time and also they find convenient to repay. For instance traditional saving bank account may be given fixed deposit concept that once a particular limit of balance is reached the funds from saving account is automatically coveted into fixed deposit attracting higher interest rate. Banks need t develop some scheme which would attract them to bank with. For loans and advances products which are suitable to farmers, small traders, small scale agro based rural industries are already
Slide 64: in existence. Banks need to see the how value addition can be mad to these existing schemes. Banks also needs to tie up with Non Government Organizations and various Self Help Group for different types of loans, micro financing etc. This will help the bank for building good image and reputation in the rural areas over and above the business. Another potential area which can be explored by the banks in the rural area is retail banking. With the steady increase in the income of the rural people there is ample scope for retail loan products like housing loans and loan for consumer durables. Marketing through customer services in rural areas is different from that of urban areas. Here personalized banking is the success mantra for banks. Because of high level of illiteracy people prefer to undertake banking transaction themselves. They hesitate to depend upon technology based service. For effective marketing in rural areas bank should have staff with right soft skill like concern for customers‘ problem, positive attitude, good communication and negotiation skill. At every level of dealing with the customer bank need to educate them for banking activates and process. To attract the customers from the unorganized sector most important factor is to provide. The borrower the required finance of right amount at right time. Rebranding In July 2007, UTI Bank was renamed Axis Bank. The Bank decided to shed the name of its original promoter and build a new brand, after UTI AMC protested to the government about the bank s plan to float an asset management firm for private equity. UTI AMC was granted exclusive rights to the UTI brand name after January 2008 according to an agreement signed in 2003 between the government and the four sponsors. Post its rebranding exercise in 2007 the bank has continued to do well and the change in name has not affected the bank s business. In fact in FY2008 it saw its customer acquisition grow at a robust rate of 67% over the last year to over 9.9 million customer accounts. The bank has retained the burgundy colour, but has changed the logo. The logo uses the alphabet 'A' from the word Axis. The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is moving on from a position of strength. Earlier, the bank's logo used the letters U, T and I. The bank is likely to spend around Rs50 Crore in the re-branding exercise. Regarding the re-branding strategy, Executive director (corporate strategy) of the bank R Ashok Kumar said the bank had hired advertising firm O&M to help in creating awareness of the new brand across the country. The bank would change logo and colour of logo, he had said, adding, the bank is likely to spend around Rs 50 Crore (Rs 500 million) in the re-branding exercise
Slide 65: The bank has chalked out a strong communication campaign over the year. On August 1, the bank will launch a nationwide advertisement campaign with a catchline, ''Twins both equal''. The entire branding exercise is expected to cost the bank around Rs50 crore The bank has already redesigned 96 elements, including cheque books, welcome kits, payorders, among others, suggesting the name change. ADVERTISING: Axis Bank used a short yet intensive burst of advertising to announce its rebranding. Everybody loves twins,” says Sumanto Chattopadhyay, group creative director, Ogilvy & Mather, which holds the Axis Bank advertising account. The decision to use several sets of identical twins as the abiding visual imagery for the rebranding of UTI Bank to Axis Bank was the master stroke of the campaign. Never mind that he had to hard-sell the idea to the top brass of UTI Bank. “There was a worry that something as serious as financial services was being reduced to such simplicity,” says Chattopadhyay. Still, he won his case. It‟s anything but orthodox for a brand to go in for a name change when a study conducted by a global brand valuation firm has only just ranked it among India‟s 50 most valuable brands. But then again, UTI Bank — the fifth largest Indian bank by market capitalisation - didn‟t have much of a choice. It was required to surrender the UTI brand name to its parent, Unit Trust of India by January 2008, following an impasse over a non-compete clause. To start the rebranding on the right footing was a brand health check which determined that while the new name should retain the perception of professional and friendly service associated with the legacy brand, it could afford to lose the bureaucratic image. Starting August 2007, the marketing machinery for communicating the change swung into motion. “Everything is the same except the name”, read ubiquitous billboards with striking images of identical twins. “Our first concern was to reassure 6.5 million existing customers that besides our name and logo, nothing from our network, our technology platform or our management had changed,” said Hemant Kaul, president, retail banking, Axis Bank. So what‟s in a name, you ask? Certainly more than what Shakespeare implied. The brief to advertising agency O&M was to create a new brand name that was short and easy to remember. Also, given the bank‟s growing interests in other Asian markets including Dubai, Singapore and Hong Kong, a “global-sounding” name was imperative. „Axis‟ was gleaned from a list of over 50 possibilities that were all checked for semantics, pronunciation and cultural references.
Slide 66: “It was one of those „aha‟ names,” says Chattopadhyay. But it was more than a catchy moniker. As P J Nayak, chairman and managing director, Axis Bank, pointed out, the name Axis “denotes stability and security just as axis in geometry is a line of reference around which all else is measured”. While the name changed, the proposition did not exactly change. In fact, when the new logo was derived from the alphabet “A”, a decision was made to retain the house colour Burgundy to strengthen the message that while the new brand was building a strong new imagery to denounce the PSU connotation, it was retaining its service proposition. But branding specialists expressed some concern. Some say that an opportunity was lost to build a strong new identity around Axis as a bank that would arrive with a difference. UTI , on its part, was taking one step at a time. The first part of the rebranding campaign entail the communication of a single message in one short but intensive burst across mass media. A prominent feature of this campaign was the heavy use of internal media. They started communicating the impending change in name through customer account statements and 2,500 Axis Bank ATMs carried the message through posters and ATM screens. “The campaign was undeniable in its wide visibility and 360-degree integrated approach,” says Sarvajeet Chandra, founder, Master Sun Consulting. But the instruction from Axis to O&M was clear — once the campaign served its purpose, there would be no more mention of the legacy brand. What would then follow was a new television campaign that focussed on each of the bank‟s key products, minus the twins. That campaign has since been rolled out. The rebranding exercise doesn‟t come cheap. Axis Bank is reported to have spent over Rs 50 crore on its rebranding. “A successful brand creates and fosters loyalty amongst the company‟s key stake-holders. So if the company manages to attract new stake-holders that it wants to target and retains those that it wishes to keep, it is successful branding,” says Samit Sinha, managing partner, Alchemist Brand Consulting. Kaul is sure it will net new retail banking customers, to the tune of 7-8 per cent, month-on-month. Like Sinha says, what will be key for Axis now is to remember that “re-branding helps the entity to start with a clean slate and build up its own new set of desired associations”. Translated, the cute twin association will go a long way, but customers, old and new, will be waiting to see how the bank‟s revitalised services will match up.
Slide 67: Swot Analysis of Axis Bank SWOT analysis is done for a company, to find out its overall Strengths, Weaknesses, Threats and opportunities leading to gauging the competitive potential of the company. The SWOT Analysis enables a company to recognize its market standing and adopt strategies accordingly. Here SWOT analysis of AXIS bank is made to understand the positioning of the bank better: STRENGTHS 1. BRAND NAME: AXIS Bank has earned a reputation in the market for extending quality services to the market vis-Ã -vis its competitors. It has earned a strong Brand name in banking sector. 2. MARKET SHARE: AXIS Bank has the largest market share of 34% in the IT & ITES industry in India according to our survey. 3. DIVERSIFIED PORTFOLIO: AXIS Bank has all the products under its belt, which help it to extend the relationship with existing customer. AXIS Bank has umbrella of products to offer their customers, if once customer has relationship with the bank. Some Products, which AXIS Bank is offering are: 4. TREASURY DEPARTMENT: So customers can get the best rates for foreign exchange. 5. AGGRESSIVE MARKETING: AXIS Bank is known for its aggressive marketing of its products. This gives AXIS an edge over other banks.
Slide 68: 6. TECHNOLOGY: From its inception, AXIS Bank has adopted a policy of selecting internationally proven and specialized Packaged Systems for its technology. AXIS bank technology platform has been acknowledged globally as one of the best in terms of robustness, flexibility and cost efficiency. AXIS Bank is in a position to leverage this platform to further build cost and service advantage. WEAKNESS 1. TRANSACTION COST: AXIS Bank charges high cost for its transactions. Through our data analysis we have find out that most of the small companies prefer nationalized banks only because of this cost factor. Also the group has found out that there are companies which are going for multi bank system.i.e. They are using only those facilities of AXIS Bank which are provided at cheaper rates (read Salary Account) and for other services they are going to nationalize banks and MNCs (read Forex). So there exists a huge potential for AXIS Bank if they are ready to make their transaction cost flexible. 2. DEFENSIVE APPROACH IN LENDING: AXIS Bank has a defensive approach in lending. Mainly to IT & ITES companies Bank do not provide loan as these companies are not having collaterals so nationalized bank hesitate in giving loans to them. Because of this policy companies prefer banks and AXIS bank in turn sometimes loose potential customers. 3. LITTLE PRESENCE OUTSIDE INDIA: AXIS Bank is having little presence Outside India, because of which companies prefer MNC Bank, mainly Citibank. So if AXIS Bank tries to emerge outside India then it has a huge potential of customers.
Slide 69: 4. POOR CUSTOMER CARE/SERVICE: With its aggressive marketing AXIS Bank is rapidly increasing its customer base. They are not however, increasing the number of employees accordingly. This is leading to deterioration of the standard of customer service. OPPORTUNITIES 1. NEW IT & ITES COMPANIES: IT & ITES sector is on a boom in the Indian market context, with new companies mushrooming in the market; it opens the door for AXIS bank to capture the huge untapped market. 2. Dissatisfied Customers of Other Banks: The group from its survey and analysis of IT companies have found out that there are many companies which are not satisfied with its current bank, so AXIS with its superior service quality and long working hours can capture those customers. 3. Remittances: From the analysis group has also found out that AXIS bank has very little presence as far as the EEFC account (Exchange Earner's Foreign Currency) is concerned. Companies prefer to bank with MNCs (which have greater presence in the foreign countries) and nationalized banks (which according to the companies provide lower transaction rates) to get their inward remittances in spite of AXIS being providing one of the most competitive rates. So the bank can promote its EEFC account better and get the key to the door of huge potential market. 4. Business advising for smaller Players: The concept of business advising though very popular with the higher end players is virtually nonexistent in the lower end of the market. AXIS should take this opportunity to provide business advising to the smaller companies at competitive rates and try to take the first mover advantage. THREATS 1) Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian market due to the friendly policies adopted by the government. This can increase the level of competition and prove a potential threat for the market share of AXIS bank. 2) Dissatisfied Customers: Most of the companies are satisfied with the products offered by AXIS bank but the poor customer support/ service is creating a lot of dissatisfaction among the customers, this can prove to be a serious problem as far as the market reputation of the bank is concerned and can be a major threat in future in future business acquisition.
Slide 70: 3) Ever improving nationalized banks: With PSU banks like SBI going all out to compete with the private banks and government giving them a free hand to do so; it can prove to be serious threat for banks like AXIS.
Slide 71: Competitive Strategy: 1. Competitive Strategy of Axis Bank For the private sector banks  Axis bank has differentiated against these banks on the base of the maximum area coverage. In this group some banks have no reach to the some part of the country. So Axis bank has got the advantage of reach in terms of this segment. The level of service is same in almost all banks but Axis bank has also got the advantage of the product innovation which not all the banks are doing in this group. 2. Competitive Strategy of Axis Bank For the government sector banks  Axis bank has differentiated itself from this group on the base of the high level of service quality and through product innovation. In terms of the reach Axis bank is not anyway near to these but it has created a different set of segment of the people who believe in the higher set of services. 3. Competitive Strategy of Axis Bank For the International Banks  For these types of banks Axis bank differentiated itself on the base of the reach and coverage to the people. The service level is somewhat same or these are providing good services than Axis bank is providing. In the future these banks may create a problem for Axis bank as at present they are new in the market so their branch are not fully established in the maximum number of cities.
Slide 72: MARKETING MIX IN BANKING INDUSTRIES 1. PROMOTION: Promotion mix includes advertising, publicity, and sales promotion, word– of – mouth promotion, personal selling and telemarketing. 2. PRICE: The price must be high enough to cover costs and make a profit but low enough to attract customers. There are a number of possible pricing strategies. 3. PRODUCT: The business has to produce a product that people want to buy. They have to decide which ‗market segment‘ they are aiming at – age, income, geographical location etc. 4. PLACE: Banks need to take into consideration the place factor as it decides the volume of business for them. 5. PEOPLE: Sophisticated technologies no doubt, inject life and strength to a bank‘s efficiency but the moment there is a lack of productive human resources even the new generation of information technologies would hardly produce the desired results. Other than these there are: 6. PROCESS: All the major activities of banks follow RBI guidelines. There has to be adherence to certain rules and principles in the banking operations. 7. PHYSICAL EVIDENCE: The physical evidences include the logo, the layout of the branch, the passbooks, cheque books, the furniture, the reports, punch lines, other tangibles, employee‘s dress code etc. 8. PENETRATION PRICING: Charging a low price, possibly not quite covering costs to attain a position in the market. This is quite popular with new businesses trying to get a to the hold.
Slide 73: 7 P’s OF MARKETING OF AXIS BANK: Marketing of services by AXIS bank 1. PRODUCT MIX A) DEPOSITS: Savings Account: AXIS Bank offers a them packed Savings Account with a host of convenient banking channels to transact through, without the stress of waiting in queues. features and Senior Citizen Services: AXIS understands that a Savings Account needs to do more after one reaches the age of seniority. They have an ideal Savings Bank Service for those who are 60 years and above. Fixed Deposits: Safety, Flexibility, Liquidity and Returns. A combination of unbeatable features of the Fixed Deposit from AXIS Bank. Recurring Deposits: Through AXIS Bank Recurring Deposit one can invest small amounts of money every month that ends up with a large saving on maturity. So one can enjoy twin advantagesaffordability and higher earnings. B) INVESTMENTS: AXIS Bank Tax Saving Bonds  Government of India Bonds  Investment in Mutual Funds  Initial Public Offers by Corporate  Investment in "Pure Gold"  Foreign Exchange Services  Senior Citizens Savings Scheme.
Slide 74: C) ANYWHERE BANKING: AXIS Bank is the second largest bank in the country. It services a customer base of more than 5 million customer accounts through a multi-channel access network. This includes Call Centre and Internet Banking. Thus, one can access the various services AXIS Bank has to offer at anytime, anywhere and from anyplace. D) LOANS: AXIS Bank offers wide Coupled variety with of Loans Products to suit the customer requirements. convenience of networked branches/ ATMs and facility of E-channels like Internet and Mobile Banking, AXIS Bank brings banking at their doorstep. Home Loans Some of the key benefits for HOME LOAN are:  Guidance throughout the process  Home loan amounts suited to their needs  Home Loan tenure up to 20 years  Simplified Documentation  Doorstep Service  Sanction approval without having selected a property.  Free Personal Accident Insurance  Insurance options for their home loan at attractive premium. Personal Loans Key Benefits of AXIS Bank Personal Loan:  Loan up to 15 lacks  security/guarantor required No  Faster Processing  Minimum Documentation Attractive Interest Rates 12 -60Months repayment options
Slide 75: Car Loans AXIS offer loans up to 100% of `on-road' cost on select models, and up to 95% of the exshowroom price on others. The process for getting a loan involves only a few simple steps and they will tailor-make the loan to suit their needs. 1. Loan on Phone for Customers: If you are an AXIS Bank customer, go for a pre-approved car loan. Call Customer Care numbers or sms "car loan. 2. Loan on the Strength of their Income: Submit income proofs as required and avail of finance up to 100% of the `on-road' cost of the car! 3. Loan in the absence of Income Proof: AXIS offer car loan for customers without income proof on producing the bank statement, loan repayment track record, etc. 4. Car Loans with Fixed and Floating Interest Rates: AXIS Bank now offers new car loans with both fixed and floating interest rate options. The customer can opt for fixed interest rate or floating interest rate for taking a car loan from AXIS Bank according to his/her discretion. Farm Equipment Loans Preferred financier for almost all leading tractor manufacturers in the country. Financing farm equipments of files in with over 381 locations spread across the country. Fast processing easy documentation. liquidity. Flexible repayment options in tandem with the Quarterly and Half-yearly repayment farmer's seasonal Monthly, patterns to choose from. Comfortable repayment tenures from 1 year to 6 years. Loan against Property Loan against Property is the perfect way to unlock the hidden value of their property. With this loan, you can fully benefit from life's little surprises you may have earlier passed over due to lack of funds. Live their dreams with a multi-purpose loan put funds at their disposal to use as you wish. This loan is available at a reasonable rate and can be repaid comfortably over as many as 15 years. The AXIS Bank's Loan against Property can be used for any purpose.
Slide 76: Expand their business - No longer do you have to stifle their creative ideas. With funds at their disposal, you can now expand their business without hesitation. AXIS helps you to meet all their expenses with ease--when you take an AXIS Bank Loan against Property. Send their child for higher studies - Education is the cornerstone of their family s progress. With a Loan against Property, you can employ their son or daughter to grow into an outstanding achiever. Farmer Finance Providing finance to the farmer for his various needs of inputs and consumption in the form of crop loans, dairy loans and loans for allied activities to agriculture like irrigation etc. for input needs and auto loans (two, three and their wheeler) and personal loans for consumption needs. The customer can also avail of working capital poultry term loan for setting up a project. Flexible repayment pattern and tenure to align to the cash flow of the customers. Rural Education Loan AXIS Bank Rural Educational Institution Finance (REI) caters to the need of privately runs Educational Institution based out of Rural, Semi Urban and outside city limit locations. The product is designed to cater to the specific needs of the education institutions. New products and features in the existing product are introduced based on regular customer feedback. E) CARDS: AXIS Bank offers a variety of cards to suit different transactional needs of customers. This includes Credit Cards, Debit Cards and Prepaid cards. These cards offer convenience during financial transactions like cash withdrawal, shopping and travel. These cards are widely accepted both in India and abroad.
Slide 77: Credit cards – AXIS Bank Credit Cards offer a smart way to shop, along with flexibility and convenience in managing their finances. Choose from a wide designed to cater to their specific lifestyle requirements. range of credit cards Commercial cards AXIS Bank Commercial Cards have been designed as payment solutions for large & mid-sized organizations. A widely accepted concept Cards help to internationally, Commercial better streamline payment processes & thus increase efficiencies. Business Card The AXIS Bank Business Card is aimed at SMEs as an enabler for their business. The Business card is a smart alternative to cheques, cash, and personal credit cards. With its purchasing convenience, cost savings, available credit, and detailed reporting facilities, the AXIS Bank Business Credit Card offers what their business needs to stay on top. Travel Card Presenting AXIS Bank Travel Card. The hassle free way to Travel the world. Travelling with US Dollar, Euro, Pound Sterling or Swiss Francs; convenience; take AXIS looking for security and Bank Travel Card. Issued in duplicate. Offers the Pin based security. Has the convenience of usage of Credit or Debit card. Debit Cards The AXIS Bank Debit Card is a revolutionary form of cash that allows customers to access their bank account around the clock, around the world. The AXIS Bank Debit Card can be used for shopping at more than 3.5 Lakh merchants in India and 24 million merchants worldwide.
Slide 78: FEATURES Anywhere Banking Our Current Account allows you to bank from all our branches and extension counters. You can deposit cash, withdraw cash, deposit cheques, and issue 'at-par' cheques at any of our branches. So bank at your own convenience! Instant Fund Transfer You can transfer funds instantly between any of our branches. Funds transfers can be effected online, right from your desktop, through our internet banking services. Internet Banking Axis Bank presents Corporate iConnect - a unique NetBanking platform for its current account customers. Available with multiple user IDs, depending on your needs. Access your account at any time form anywhere. You can transfer funds to your own accounts or to third party accounts within Axis Bank & Inter Bank covering over 25,000 branches of various banks. Corporate iConnect also permits transaction initiation by one user and approval by another. You can also execute bulk payments like salary and commission across Axis Bank network, right from your desktop. At-Par (Multicity) Chequebook Enjoy the benefits of multicity chequebook with Axis Bank's current accounts. You can issue cheques payable at par at all our branches across the country. Your cheques will be treated as local cheques at more than 375 locations as on January 31, 2008. ATM or Debit Card With every Current Account (for proprietary and partnership concerns), you can avail upto 2 ATM cum Debit cards, which allow you round the clock access to your account from any of all our ATMs all over the country. You can withdraw upto Rs 40,000 a day. Free Monthly Account Statement By courier and daily on email. Mobile Banking Mobile Banking will enable you to bank with us through your mobile phone irrespective of where you are. Phone Banking Phone banking or Tele-banking service can help you access your account from your telephone anytime you want.
Slide 79: F) DEMAT SERVICES: AXIS Bank Demat Services boasts of an ever-growing customer base of over 7 lacs account holders. In their continuous endeavour to offer best of the class services to customers they offer the following features: E-Instructions: Transfer securities 24/7 days through Internet & Interactive Voice Response (IVR). Digitally Signed Statement: Corporate Benefit Tracking: Mobile Request: Mobile Alerts: G) MOBILE BANKING: With AXIS Bank, banking is no longer what it used to be. AXIS Bank offers Mobile Banking facility to all its Bank, Credit Card and Demat customers. AXIS Bank Mobile banking enables you to bank while being on the move. AXIS Bank Mobile Banking can be divided into two categories of facilities: Alert facility: The AXIS Bank Mobile Banking Alert facility informs you promptly of the significant transactions in their accounts. It keeps you updated wherever you go. H) NRI SERVICES: ONLINE MONEY TRANSFER facility available to NRIs worldwide through www.money2India.com at the click of a button! Benefits: FREE Money transfers into accounts with over 30 banks in India Demand Drafts issued and payable at over 1250 locations in India ONLINE Tracking of the status of their funds SUPERIOR Exchange rates OFFLINE MONEY TRANSFERfacility is also available across geographies
Slide 80: 2. PRICING MIX The pricing decisions or the decisions related to interest and fee or commission charged by banks are found instrumental in motivating or influencing the target market. The RBI and the IBA are concerned with regulations. The rate of interest is regulated by the RBI and other charges are controlled by IBA. The pricing policy of a bank is considered important for raising the number of customers vis-à-vis the accretion of deposits. Also the quality of service provided has direct relationship with the fees charged. Thus while deciding the price mix customer services rank the top position. The banking organizations are required to frame two- fold strategies. First, the strategy is concerned with interest and fee charged and the second strategy is related to the interest paid. Since both the strategies throw a vice- versa impact, it is important that banks attempt to establish a correlation between two. It is essential that both the buyers as theyll as the sellers have feeling of winning. 3. PLACE MIX This component of marketing mix is related to the offering of services. The services are sold through the branches. The 2 important decision making areas are: Making available the promised services to the ultimate users Selecting a suitable place for bank branches. Major Private Sector lender Axis Bank has announced that it plans to set up 210 more branches across the country in this fiscal. Of the total proposed branches, 52 would come up in the southern states. At present, the bank (Axis Bank) has 699 branches in the country, including 171 in the southern states. The Kerala branches account for a business of Rs 25 billion and it is expected to touch Rs 50 billion after new branches are opened. Axis bank has a network of 20 extension counters and 2871 ATMs across the country.
Slide 81: 4. PROMOTION MIX The different components of promotion help bank professionals in promotion the banking business. Advertising: Television, radio, movies, theatres. AXIS uses this component of the promotion mix with the motto of informing, sensing and persuading the customers. The advertising professionals bear the responsibility of making the appeals, slogans, messages more creative. Print media: Hoardings, newspaper, magazines. There are a number of devices to advertise, such as broadcast media, telecast media and the print media. Publicity: road shows, campus visits, sandwich man, Sponsorship. Sales promotion: Gifts, discount and commission, incentives, etc. The banking organizations make provisions for incentives. Personal selling: Cross-sale (selling at competitors place), personalized Service. The personal selling is found instrumental in promoting the banking business. It is just a process of communication in which an individual exercise his/her personal potentials, tact, skill and ability to influence the impulse buying of the customers. Since AXIS gets immediate feedback, the personal selling activities energies the process of communication very effectively. Telemarketing: AXIS one sterile Call centre.
Slide 82: 5. PROCESS MIX Flow of activities: All the major activities of AXIS banks follow RBI Guidelines. There has to certain rules and principles in the banking operations. The activities have into various departments accordingly. Standardization: AXIS bank has got standardized procedures got typical transactions. In fact not only all the branches of a single-bank, but all the banks have some standardization in them. This is because of the rules they are subject to. Besides this, each of the banks has its standard forms. Customization: There are specialty counters at each branch to deal with customers of a particular scheme. Besides this the customers can select their deposit period among the available alternatives. Number of steps: Numbers of steps are usually specified and a specific pattern is followed to minimize time taken. Simplicity: In AXIS banks various functions are segregated. Separate counters exist with clear indication. Thus a customer wanting to deposit money goes to deposits counter and does not mingle elsewhere. This makes procedures not only simple but consume less time. Besides instruction boards in national boards in national and regional language help the customers further. be adherence to been segregated Customer involvement: ATM does not involve any bank employees. Besides, during usual bank transactions, there is definite customer involvement at some or the other place because of the money matters and signature requires. 182
Slide 83: 6. PHYSICAL EVIDENCE: Physical evidence is the material part of a service. Strictly speaking there are no physical attributes to a service, so a consumer tends to rely on material cues. There are many examples of physical evidence: Internet Paperwork Brochures Furnishings Business cards The building itself (such as prestigious offices or scenic headquarters) The physical evidences also include signage, reports, punch lines, other tangibles,employee s dress code etc. Signage: Each and every bank has its logo by which a person can identify the company. Thus such signage is significant for creating visualization and corporate identity. Financial reports: The Company s financial reports are issued to the customers to emphasis or credibility. Tangibles: Bank gives pens, writing pads to the internal customers. Even the passbooks, chequebooks, etc reduce the inherent intangibility of services. Punch lines: Punch lines or the corporate statement depict the philosophy and attitude of the bank. Banks have influential punch lines to attract the customers. Employee’s dress code: AXIS bank follows a dress code for their internal customers. This helps the customers to feel the ease and comfort. Strategic Management
Slide 84: 7. PEOPLE All people directly or indirectly involved in the consumption of banking services are an important part of the extended marketing mix. Knowledge Workers, Employees, Management and other Consumers often add significant value to the total product or service offering. It is the employees of a bank which represent the organization to its customers. In a bank organization, employees are essentially the contact personnel with customer. Therefore, an employee plays an important role in the marketing operations service organisation. To realize its potential in bank marketing, of AXIS a is conscious in its potential in internal marketing motivation products. - the attraction, development, and retention of qualified employee-customers through need meeting jobInternal marketing paves way for external marketing of services. In internal marketing a variety of activities are used internally in an active, marketing like manner and in a coordinated way. The starting point in internal marketing is that the employees are the first internal market for the organization. The basic objective of internal marketing is to develop motivated and customer conscious employees. A service company can be only as good as its people. A service is a performance and it is usually difficult to separate the performance from the people. If the people don t meet customers' expectations, then neither does the investing quality. in people quality in service business means service. investing Therefore, in product AXIS understands the needs of customers and therefore it is leveraging service customers quickly and conveniently. AXIS aims technology to at providing and enabling favorable environment to foster growth and learning for their employees. Strategic Management
Slide 85: SEGMENTATION STRATEGY DEMOGRAPHICS VARIABLES -LOCATION-METROS and divisional cities, occupation-business persons, salaried class (both govt and private), working women, age-senior citizens,minor PSYCHOGRAPHIC VARIABLES -LIFESTYLE-the people who believes in modern banking with higher set of services.i.e. internet banking (icontact,mobile refill,travel currency card,etc) Targeting strategy Corporate banking market: These markets target the industries and fulfill their financial needs Capital market: this segment targeted on the long term needs of the individual as well as of industries Retail banking market: This segment is for the retail investor and provides them short term financial credit for their personal, household needs. Selective specialization strategy Here the bank selected a number of segments, each objectively attractive and appropriate. There may be little or low synergy among the segment but each segment proves to be worth full for it. If we take the example of cards then axis bank have separate set of credit cards, each targeted at different set of people. i.e. segment and each one has its own importance for the bank. POSITIONING STRATEGY: Axis bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual and corporate clients. so they want to highlight following points in their positioning statement. -customer centric -service oriented -product innovation Strategic Management
Slide 86: PRIORITY BANKING • • • • AXIS Eligibility Criteria (AQB) of Rs. 1 Lakh in your savings account (75,000 if in case you have a salary account with Axis Bank) Rs. 5 lacs in combination of your savings and term deposits (Minimum AQB of Rs. 50,000 in the savings account) Minimum Average quarterly relationship of Rs. 10 lacs across members of the same family - subject to a minimum (AQB) of Rs. 80,000 being maintained in the savings account of each member and the remaining amount in Term Deposits. Strategic Management
Slide 87: CONCLUSION Over the last five years, the CAGR for loan growth for the banking industry has been 2526 per cent; for Axis Bank it has been above 40 per cent. Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1.7x the industry average. In FY09 its advances grew at the rate of 37.5 per cent. In FY10 they are expected to grow at the rate of 27-28 per cent and in FY11 at 25 per cent. For the banking industry as a whole, the loan book is expected to grow at 18 per cent in FY10 and 16 per cent in FY11. Thus, Axis Bank‘s fast pace of growth is expected to sustain over the next couple of years. AXIS bank has differentiated itself very well on the basis of high level service and product quality. They have successfully implemented the change and due to this their market share has increased only despite of tough competition prevails. Strategic Management
Slide 88: Thank you Strategic Management