CONTENTS

Introduction
Company profile
Banking structure
product
Major components
Introduction of topic
Research methodology
Objective
Data analysis
Recommendations
Conclusions
Bibliography

Questionnaire

INTRODUCTION
Banking is the backbone of a modern economy. Health of banking
industry is one of the most important pre-conditions for sustained economic
1

progress of any country. The world of banking has assumed a new dimension at
the dawn of the 21st century with the advent of tech banking, thereby lending the
industry a stamp of universality. In general, banking may be classified as retail
and corporate banking. Retail banking, which is designed to meet the
requirements of individual customers and encourage their savings, includes
payment of utility bills, consumer loans, credit cards, checking account balances,
ATMs, transferring funds between accounts and the like. Corporate banking, on
the other hand, caters to the needs of corporate customers like bills discounting,
opening letters of credit and managing cash.
The Indian banking scene has changed drastically with the private sector
making inroads in an area hitherto dominated by large public sector banks.
Growing disinvestment is likely to impact the banking industry as well. There is
every possibility of privatization of public sector banks, leading to greater
operational autonomy.
The development of the Indian banking sector has been accompanied by
the introduction of new norms such as Income Recognition and Capital
Adequacy, by the government. The latter implies that banks can lend on the basis
of their respective capital base. These norms have caused banks to construct
equity on their own, before going in for debt. Disintermediation is a real threat
for banks. Of late, banks are adopting the EVA (Economic Value Added) concept
wherein revenues are viewed in the context of the risk associated with them.
The New World order has ensured "Survival of the Fittest". New services are the
order of the day, in order to stay ahead in the rat race. Banks are now foraying
into net banking, securities, consumer finance, housing finance, treasury market,
merchant banking and insurance.
2

COMPANY PROFILE
AXIS Bank is India's second-largest bank with total assets of about Rs. 1 trillion
and a network of about 540 branches and offices and over 1,000 ATMs. AXIS
Bank offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and
non-Banking , venture capital, asset management and information technology.
AXIS Bank's equity shares are listed in India on stock exchanges at Chennai,
Muzaffarnagar, Kolkata and Vadodara, the Stock Exchange, Mumbai and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).
AXIS Bank was originally promoted in 1994 by AXIS Limited, an Indian
financial institution, and was its wholly owned subsidiary. ICICI's shareholding
in AXIS Bank was reduced to 46% through a public offering of shares in India in
fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal
2000, AXIS Bank's acquisition of Bank of Madura Limited in an all-stock
amalgamation in fiscal 2001, and secondary market sales by AXIS to
institutional investors in fiscal 2001 and fiscal 2002. AXIS was formed in 1955
at the initiative of the World Bank, the Government of India and representatives
of Indian industry. The principal objective was to create a development financial
institution for providing medium-term and long-term project financing to Indian
businesses. In the 1990s, AXIS transformed its business from a development
financial institution offering only project finance to a diversified financial
services group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like AXIS Bank. In 1999, AXIS
3

become the first Indian company and the first bank or financial institution from
non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of
the emerging competitive scenario in the Indian banking industry, and the move
towards universal banking, the managements of AXIS and AXIS Bank formed
the view that the merger of AXIS with AXIS Bank would be the optimal
strategic alternative for both entities, and would create the optimal legal
structure for the AXIS group's universal banking strategy. The merger would
enhance value for AXIS shareholders through the merged entity's access to lowcost deposits, greater opportunities for earning fee-based income and the ability
to participate in the payments system and provide transaction-banking services.
The merger would enhance value for AXIS Bank shareholders through a large
capital base and scale of operations, seamless access to ICICI's strong corporate
relationships built up over five decades, entry into new business segments,
higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of AXIS and its subsidiaries. In
October 2001, the Boards of Directors of AXIS and AXIS Bank approved the
merger of AXIS and two of its wholly owned retail finances subsidiaries, AXIS
Personal Financial Services Limited and AXIS Capital Services Limited, with
AXIS Bank. The merger was approved by shareholders of AXIS and AXIS Bank
in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002,
and by the High Court of Judicature at Mumbai and the Reserve Bank of India in
April 2002. Consequent to the merger, the AXIS group's financing and banking
operations, both wholesale and retail, have been integrated in a single entity.
HISTORY OF COMPANY
4

AXIS Bank has signed an agreement to use the NCR switch mark technology for
online-networking all its ATMs, the officials said they network would come into
place in September.
AXIS Bank recently restructured its organizational structure by setting up
strategic business units for retail banking, corporate banking and fore and
treasury operations, as independent profit centers.
AXIS is all set to launch a 60-second television commercial on August 15,
1999.
2000
AXIS Bank became the first Indian bank to list on the New York Stock
Exchange with its $175-million American depository shares issue generating a
demand book 13 times its size at $2.2 billion.
The Bank proposes to bring credit cards to the "large, underserved population"
in rural and semi-urban areas.
SkyCell Communications Ltd, one of the two cellular service providers in
Chennai, has launched `Sky Banking', for which the company has tied up with
AXIS Bank and HDFC Bank.
The AXIS has announced the launch of mobile banking services for its
customers, using the wireless application protocol (WAP) technology.
Ford India has tied up with AXIS Bank to introduce a scheme, enabling nonresident Indians (NRIs) to purchase a Ford Ikon car for their friends and
relatives in India.
5

AXIS Bank has set up an ATM facility at an Indian Oil Corporation petrodiesel
outlet at Chennai.
AXIS Bank has tied up with Chennai Telephones to provide Internet bill
payment facility to its customers.
BANKING STRUCTURE
The Indian banking industry, which has Reserve Bank of India as its
regulatory authority, is a mix of the public sector, private sector, and foreign
banks. The private sector banks are again split into old banks and new banks.
SCHEDULED BANKS
Scheduled commercial banks are those that come under the purview of the
Second Schedule of Reserve Bank of India (RBI) Act, 1934. The banks that are
included under this schedule are those that satisfy the criteria laid down vide
section 42 (60 of the Act). Some co-operative banks come under the category of
scheduled commercial banks though not all co-operative banks.
PUBLIC SECTOR BANKS
Public sector banks are those in which the Government of India or the
RBI is a majority shareholder. These banks include the State Bank of India (SBI)
and its subsidiaries, other nationalized banks, and Regional Rural Banks
(RRBs). Over 70% of the aggregate branches in India are those of the public
sector banks. Some of the leading banks in this segment include Allahabad
Bank, Canara Bank, Bank of Maharashtra, Central Bank of India, Indian
Overseas Bank, State Bank of India, State Bank of Patiala, State Bank of
Bikaner and Jaipur, State Bank of Travancore, Bank of Baroda, Bank of India,
6

Oriental Bank of Commerce, UCO Bank, Union Bank of India, Dena Bank and
Corporation Bank.
PRIVATE SECTOR BANKS
Private banks are essentially comprised of two types: the old and the new.
The old private sector banks comprise those, which were operating before
Banking Nationalization Act was passed in 1969. On account of their small size,
and regional operations, these banks were not nationalized. These banks face
intense rivalry from the new private banks and the foreign banks. The banks that
are included in this segment include: Bank of Madura Ltd. (now a part of AXIS
Bank), Bharat Overseas Bank Ltd., Bank of Rajasthan, Karnataka Bank Ltd.,
Lord Krishna Bank Ltd., The Catholic Syrian Bank Ltd., The Dhanalakshmi
Bank Ltd., The Federal Bank Ltd., The Jammu & Kashmir Bank Ltd., The Karur
Vysya Bank Ltd., The Lakshmi Vilas Bank Ltd., The Nedungadi Bank Ltd. and
Vysya Bank. The new private sector banks were established when the Banking
Regulation Act was amended in 1993. Financial institutions promoted several of
these banks. After the initial licenses, the RBI has granted no more licenses.
These banks are gearing up to face the foreign banks by focusing on service and
technology. Currently, these banks are on an expansion spree, spreading into
semi-urban areas and satellite towns. The leading banks that are included in this
segment include Bank of Punjab Ltd., Centurion Bank Ltd., Global Trust Bank
Ltd., HDFC Bank Ltd., AXIS Banking Corporation Ltd., IDBI Bank Ltd.,
IndusInd Bank Ltd. and UTI Bank Ltd.

FOREIGN BANKS
The operations of foreign banks, though similar to that of other
commercial Indian banks, are mainly confined to metropolitan areas. Foray of
foreign banks depends on reciprocity, economic and political bilateral relations.
An inter-departmental committee has been set up to endorse applications for
entry and expansion. Foreign banks, in the wake of the liberalization era, are
looking to expand and diversify. Some of the leading foreign banks that operate
in India are Citibank, Standard Chartered Grindlays Bank, Hong Kong Shanghai
Banking Corporation, Bank of America, Deutsche Bank, Development Bank of
Singapore and Banque National De Paris.
PUBLIC SECTOR BANKING AT A DISADVANTAGE
Functioning of Public Sector Banks (PSBs), which are yet to achieve
computerization across the board, is at a relative disadvantage when compared to
the private sector, which is offering state-of-the-art facilities such as ATMs,
doorstep banking, banking on phone, and net banking. PSBs also suffer from
huge costs of labor and low levels of automation. At this rate, it may not be long
before new channels devised by private banks effectively surpass the number of
branch networks offered by the PSBs.
This apart, the problems which have assumed enormous proportion today
as far as Public Sector banks are concerned are ballooning NPA levels, declining
margins, poor credit off-take, high overheads, and lack of good quality assets.
Banks are sticking to reliable borrowers for fear of bad debts. In fact, banks
largely invest in government securities, which have zero risk. With GOI being

the single largest borrower, the yields on these securities determine the interest
rates.
The government aims to decrease its shareholding in PSBs to 33%,
however, at the same time it also wants to retain the controlling stake. This, it is
feared, is not going to solve the problems which PSBs are coping with now.

PRODUCT PORTFOLIO
CORPORATE BANKING

RETAIL BANKING

Corporate Solutions

Home Loans

Government Solutions

Car & Two Wheeler Loans

Capital Market Services

Consumer/Personal Loans

Agriculture Finance

Saving & Term Deposit

Structured Finance

Salary Account

Project Finance

Roaming Current Accounts

Infrastructure Finance

Investment Products

Term Loans

Private Banking

Working Capital Finance

NRI Services

Cash Management Services

Demat Services

Trade Finance Services

Credit & Debit Cards

International Banking

Smart Cards

Treasury Services

Bill Payment Services

Corporate Internet Banking

E-Cheques

Corporate Advisory

Branches

Custodial Services

ATMs

Professional Clearing

Internet Banking

Membership Services

Phone Banking

PROMOTION
10

What's on offer
Hello AXIS and HDFC brings you a host of services at your fingertips 365 days
a year. A user friendly automated service menu offers you convenient access to
your account coupled with security as, all your transactions are protected by a
TPIN - The Personal password to your account. But if you do need any
assistance

our

officers

will

be

glad

to

help

you.

Whats more... this facility comes to you totally free of charge! Some of the
services offered are listed below
Savings account :
o

Balance Enquiry Statement of account

Cheque status enquiry Stop Payment

Cheque book request

Dial-a- draft/payorder

ATM lost card reporting

Request for a new ATM PIN

Fixed Deposits:
o

Opening a Fixed Deposit

Checking Fixed Deposit details

Request for TDS statement

Credit Cards:
11

Balance and account related inquiries Statement of account

Dial a draft/payorder

Lost/Replacement card

ATM pin re-issue

Payment instructions (maybe through a letter to the Call Centre)

Others:
o

Standing Instructions

Complaints and suggestions

Inquire about any AXIS retail product

RISK MANAGEMENT
Risk is an integral part of the banking business and AXIS Bank aims at
the delivery of superior shareholder value by achieving an appropriate trade-off
between risk and returns. AXIS Bank is exposed to various risks, including
12

credit risk, market risk and operational risk. Our risk management strategy is
based on a clear understanding of various risks, disciplined risk-assessment and
measurement procedures and continuous monitoring. The policies and
procedures established for this purpose are continuously benchmarked with
international best practices. A comprehensive range of quantitative and
modelling tools developed by a dedicated risk analytics team supports the risk
management function at AXIS Bank.
The Risk, Compliance & Audit Group (RCAG) is responsible for
assessment, management and mitigation of risk in AXIS Bank. This group,
forming a part of the Corporate Centre, is completely independent of all business
operations and accountable to the Risk and Audit Committees of the Board of
Directors. RCAG is organised into six sub-groups: Credit Risk Management
Group, Market Risk Group, Credit Policies Group, Internet Audit Group, Retail
Risk Group and Risk Analytics Group.

13

CREDIT RISK
Credit risk is the risk that a borrower is unable to meet its financial obligations
to the lender. AXIS Bank measures, monitors and manasgers credit risk for each
borrower asnd also at the portfolio level. AXIS Bank has a standardised credit
approval process, which includes a well-established procedure of comprehensive
credit appraisal and rating. AXIS Bank has developed internal credit rating
methodologies for rating obligors as well as for rating. AXIS Bank has
developed internal credit rating methodologies for rating obligors as well as for
product / facilities. The rating factors in quantitative and qualitative issues and
credit enhancement features specific to the transaction. The rating serves as a
key input in the sanction as well as post-sanction credit processes. Credit rating,
a as concept, has been well internalised within the Bank. The rating for every
borrower is reviewed as least annually and for higher risks credits and large
exposures at shorter intervals. Sector knowledge has been institutionalized
across AXIS Bank through the availability of sector-specific information on the
Intranet. Industry knowledge is constantly updated through field visits,
interactions with clients, regulatory bodies and industry experts. In respect of the
retail credit business, AXIS Bank has a system of centralized approval of all
products and policies and monitoring of the retail portfolio. We continuously
refine our retail credit parameters based on portfolio analytics.

14

MARKET RISK
Market risk is the risk of loss resulting from changes in interest rates, foreign
currency exchange rates, equity prices and commodity prices. HDFC Banks
exposure to market risk a function of its trading and asset and liability
management activities and its role as a financial intermediary in customerrelated transactions. The objective of market risk management is to minimize the
impact of losses due to market risks on earning and equity capital.
Market risk policies include Asset-Liability Management (ALM) policies
and policies for the trading portfolio. The Asset-Liability Management
Committee (ALCO) of Board of Directors approves ALM policies. ALCOs role
encompasses stipulating liquidity and interest-rate risk limits, monitoring risk
levels by adherence to set limits, articulating the organizations interest rate view
and determining business strategy in the light of the current and expected
business environment. These sets of policies and processes are articulated in
ALM policy. A separate set of policies for the trading portfolio address issues
related to investments in various trading products and are approved by the
Committee of Directors (COD) of the Board. RCAG exercises independent
control over the process of market-risk management and recommends changes in
processes and methodologies for measuring market risk.

15

MIDDLE OFFICE GROUP

HDFC Bank has a separate Middle Office Group to monitor both credit
and treasury-related compliance. The Credit Middle Group monitors compliance
with policies and terms of sanction of credit proposals.
The Treasury Middle Office Group monitors the asset-liability position
under the supervision of the ALCO. It also monitors treasury activities,
including determining compliance with various exposure and dealing limits,
verifying the appropriateness and accuracy of various transactions, processing
these transactions, tracking the daily funds position and all treasury related
management and regulatory reporting.
Interest rate risk is measured through the use of re-pricing gap analysis.
Liquidity risk is measured through gap analysis. HDFC Bank ensures adequate
liquidity at all times through systematic funds maintenance of liquid investment
as well as by focusing on more stables funding sources such as retail deposits.
HDFC Bank mitigates its exposure to exchange rate risk by stipulating daily
stop-loss limits and position limits.
OPERATIONAL RISK
Operational risk can result from a variety of factors, including failure to
obtain proper internal authorization, improperly documented transactions, failure
of operational and information security procedures, computer systems and
software or equipment, fraud, inadequate training and employee errors. We
attempt operational risk by maintaining a comprehensive system of internal
controls, establishing systems and procedures to monitors transactions,
maintaining key back-up procedures and undertaking regular contingency
16

planning. The Middle Office Group monitors adherence to credit procedures.

The International Audit Group undertakes a comprehensive audit of all business
group and other functions, in accordance with a risk-based audit plan. This plan
allocates audit resources based on an assessment of the operational risks in the
various businesses. AXIS Bank has been a pioneer in the implementation of a
risk-based audit methodology in the Indian banking sector. The International
Audit Group conceptualizes and implements improved system of internal
controls to minimize operational risk.

FUTURE PROSPECTS OF AXIS AND HDFC BANK

Future expectations
We soon plan to introduce:
17

payment services to certain standard utilities

Demat-related information

own accounts funds transfer

AXIS will also use WAP technology for undertaking on-line transactions
If you have an HDFC Phone Banking Relationship Number (under which

your accounts are linked to the HDFC Call Centre for HDFC Phone Banking),
the same accounts will be linked for Mobile Commerce. If you do not have an
HDFC Phone Banking Relationship Number, you can specify the account
number(s) and your HDFC Credit Card Number to be linked for SMS.

1/11/03 AXIS Bank clocks 110% growth in retail portfolio in Q2

Mumbai: The retail portfolio of AXIS Bank grew by 110 per cent to Rs 25,205
crore (Rs 12,021 crore) in the second quarter. Retail assets constituted 39 per
cent of the bank's customer assets. While leveraging and enhancing its position
as the original lender, the bank also continued to focus on securitisation of its
18

customer assets. This had enabled the bank to optimize resources and capital
utilization and diversify the composition of its asset portfolio.
During the first half of this financial year, the total sell down and securitisation
of assets was around Rs 5,300 crore. According to the bank, its net restructured
loans declined to Rs 7,856 crore (Rs 10,491 crore). Net NPAs were at Rs 3,128
crore, constituting 4.8 per cent of its customer assets. Deposits grew by 18 per
cent to Rs 56,880 crore (Rs 48,169 crore). As on September 30, 2006, the
deposits constituted 58 per cent of the bank's funding against 42 per cent in the
corresponding period of the previous year. The capital adequacy as on
September 30, 2006 was at 11.5 per cent.
ACCOUNTS IN AXIS BANK
AXIS Bank offers wide variety of Deposit Products to suit your
requirements.Coupled with convenience of networked branches/ ATMs and
facility of E-channels like Internet and Mobile Banking, AXIS Bank brings
banking at your doorstep. Select any of our deposit products and provide your
details online and our representative will contact you for Account Opening.

AXIS Bank offers you a power packed Savings Account with a host of
convenient features and banking channels to transact through. So now you can
bank at your convenience, without the stress of waiting in queues.

19

Senior Citizen Services

We understand that as you reach the age to retire, you do have certain concerns
whether your hard earned money is safe and secure whether your
investments give you the kind of returns that you need. That's why we have an
ideal Banking Service for those who are 60 years and above. The Senior Citizen
Services from AXIS Bank has several advantages that are tailored to bring more
convenience and enjoyment in your life.
Young Stars

It's really important to help children learn the value of finances and money
management at an early age. Banking is a serious business, but we make
banking a pleasure and at the same time children learn how to manage their
personal finances.

Fixed Deposits
20

Safety, Flexibility, Liquidity and Returns!!!! A combination of unbeatable

features of the Fixed Deposit from AXIS Bank.

When expenses are high, you may not have adequate funds to make big
investments. But simply going ahead without saving for the future is not an
option for you. Through AXIS Bank Recurring Deposit you can invest small
amounts of money every month that ends up with a large saving on maturity. So
you enjoy twin advantages- affordability and higher earnings.
DOCUMENTATION
Applicants must satisfy the following documentation requirements:

Identity proof

Proof of communication address

Self cheque (if the applicant is not visiting the branch for account
opening)

Identity

Proof Proof of communication address

(Any one of the following)

(Any one of the following)

Original letter of introduction from existing Introduction by an existing and

bank along with KYC cheque of the same
Bank
21

satisfactory customer as address proof

Driving License Book type or laminated

Latest Electricity Bill

& embossed
Voter Identity Card with KYC cheque for

Certificate from the postal office

operating accounts.

confirming address of applicant

Cash can be accepted for Term deposits.

Employee Identity Card

Original Letter from Employer

certifying the residential address of
applicant. Signature of the employee
has to be attested on the letter.

PAN Card

Telephone bills from any telephone

service providers and mobile service
providers (KYC cheque mandatory for
mobile service providers)

Defence Dependent's card

Consumer gas connection

card/book/Pipe Gas bill (same as
electricity bill)

Ex-Service Man Card

Certificate from the ward/equivalent

rank officer, maintaining election roll,
certifying address of the applicant

Bar Council/Indian Medical Association

Registered and valid Lease/ Leave

Card/Senior Citizen Card

agreement with copies of utility bills

PIO Booklet for returning NRIs

Post Office Savings Pass Book with

KYC cheque
22

MAPIN card

Statement of account or Pass Book of

a scheduled commercial bank with
entries of at least last 3 months
alongwith KYC cheque
Premium Receipt from any Banking
company
Certificate by Village Extension
Officer (VEO)/Village Head or equal
rank officers
Domicile Certificate with
communication address and
photograph

Accepted as both Identity and Address proof

(Any one of the following)
Passport
Arms License issued by State/Central Government of India authorities
Freedom fighter's pass issued by Ministry of Home affairs, Government of India
with photograph of applicant
Pension payment order/book/Card issued by State/Central Government of India.
Printed Ration Card with Photograph of applicant.
House hold Card with photograph issued by Govt of Andhra Pradesh
ID card with photograph issued by Govt of Jammu and Kashmir
23

Bank Pass Book with photograph issued by SBI and its subsidiaries or Nationalised
Banks
Photo Social Security Card (Smart Card) issued by Central/State Govts or Union
territories.
Savings Bank Account: 3.50%
Domestic term deposits (General Category) :
*

Subject

to

revision

without

further

notice.

** Recurring Deposit will not be available for tenure of 390 days.

Note: Rates for Deposits for Rs.1 Crore and above will be advised by
treasury from time to time.
INTEREST RATES FOR SENIOR CITIZENS:
1. Eligibility Criteria
A person who has completed the age of 60 years may be treated as a senior
citizen for getting the benefit under the special deposit scheme for senior
citizens.
2. Verification of Age:
Opening of New Account
At the time of opening of a new deposit account of a senior citizen, the branch
should satisfy about the age through verification of any of the following
documents:24

Secondary

School

Leaving

Certificate

indicating

LIC Policy
Voters Identity Card
Pension Payment Order
Birth Certificate issued by the competent authority
Passport
PANCard
Interest Rates for Senior Citizens :

25

date

of

Birth

*Subject

to

revision

without

further

notice.

** Recurring Deposit will not be available for tenure of 390 days.

Penalty on Pre-mature withdrawal (All Categories) would be applicable as
below:

Features

The AXIS Bank Ncash debit card is a debit-cum-ATM card providing you
with the convenience of acceptance at merchant establishments and cash
withdrawals at ATMs.Click here for details

Free Access to any Bank's ATM The next time you want to withdraw
cash from your AXIS Bank account, just walk into any bank's ATM and
use your AXIS Bank ATM-cum-Debit card for as many as 9 free
transactions (including cash withdrawal and balance enquiry) in a quarter.
This offer is available to customers who maintain more than Rs.25,000 in
a given quarter in their domestic Savings Account with AXIS Bank. The
above benefit can be availed in the next quarter.

Anywhere Banking - This facility entitles the account holder to withdraw

or deposit cash upto a limit of Rs.50,000 across all AXIS Bank branches.

You can give us various types of standing instructions like transferring to

fixed deposit accounts at regular intervals.

An average quarterly balance of Rs 5,000 only.

Minimum Balance
26

Type

of

Account

Balance

Savings Account Rs 5,200

Non-maintenance of the minimum average quarterly balance attracts a fee
of Rs 750 per quarter.
Nomination

The facility of Nomination is available for relationships in the names of

individuals. Unless otherwise specifically, given in writing by depositors,
nomination in deposit accounts will be at Customer ID level

A depositor(s) however has / have the right to specify different

nominations at account level by completing the appropriate forms.

Further, the applicant(s) is / are at liberty to change the nominee during

the currency of the relationship accounts with the Bank through
declaration to that effect in the appropriate form

A. Repatriable
Repatriable funds (i.e. those which can be taken abroad) need to be kept in a
separate bank account, i.e. NRE Bank account. Typically, funds brought in from
abroad are permitted in such an account. Investments made from such funds can
be repatriated, i.e. proceeds from sale or otherwise from such investments can be
taken abroad. Such investments are maintained in a Repatriable Demat account.
B. Non-repatriable
27

Non-repatriable funds (i.e. those which cannot be taken abroad) need to be kept
separate from repatriable funds in a separate bank account i.e. NRO Bank
account. Investments made from such funds cannot be repatriated, i.e. proceeds
from sale or otherwise from such investments cannot be taken abroad. Such
investments are maintained in a Non-Repatriable Demat account. Money once
transferred from NRE account to NRO account loses its repatriability and hence,
cannot

be

transferred

back

to

NRE

account.

Mode of Investment :
A. Portfolio Investment Scheme (PINS)
Portfolio Investment Scheme (PINS) is a scheme of the Reserve Bank of India
(RBI) under which the 'Non Resident Indians (NRIs)' and 'Person of Indian
Origin (PIOs )' can purchase and sell shares and convertible debentures of Indian
Companies on a recognized stock exchange in India by routing all such
purchase/sale transactions through their account held with a Designated Bank
Branch . The Designated Bank maintains a record of all investments done under
PINS (PINS portfolio).
B. Non - PINS
Any investment other than under PINS is Typically, this includes:
1.

Subscription to Primary market offerings (IPOs)

2.

Investments made when resident in India.

3.

Investments in Mutual funds

4.

Investments in derivatives
28

5.

Gifts and Inheritance

Deciding Combination :
You may have to open demat accounts of a specific combination if you already
hold physical shares in that combination. The physical shares can be converted
into electronic form in your demat account by submitting the certificates along
with a demat request form. You should also open the required combination under
the correct type of demat account :
PINS NRE : For shares acquired earlier under PINS on repatriation basis.
PINS NRO : For shares acquired earlier under PINS on non-repatriation basis.
Non-PINS NRE : For shares acquired earlier other than under PINS on
repatriation

basis.

Non-PINS NRO : For shares acquired earlier other than under PINS on nonrepatriation basis and also when 'Resident' in India.
I. Terms & Conditions for establishing relationship and Operating
Accounts (For Resident Individuals)
1. Establishing a Relationship
1.1 Applicant(s) desiring to open a Relationship need(s) to sign a Relationship
form and declare therein that he/she/they has/have agreed to abide by the rules
which are in force from time to time.
1.2 Applicant is required to furnish Identity Proof and Address proof as follows
while establishing a banking relationship with the Bank :
Identity Proof
29

Verified true copy of valid passport

Letter from existing bank
Valid driving license
Valid employee identity card
Valid PAN card
Valid photo credit card along with the current billing cycle (latest) statement
True copy of valid arms license issued by Govt of India/State govts/Union
territory with photograph
Valid pension book
Valid freedom fighter's pass issued Home Ministry of Government of India

30

MAJOR
COMPETITORS
MAJOR COMPETITORS
31

STATE BANK OF INDIA

It is India's largest bank with assets worth Rs.2, 615 billion. SBI also has the
distinction of having the worlds largest branch network of 9,000 branches. The
bank has a share of about 22% of India's loans and deposits, and is a top player
in trade finance and forex. Through its subsidiaries, SBI is also a leading
provider of other financial products like mutual funds, investment banking,
housing finance and factoring. SBI has a market share of one-fifth of the
banking sector in India. Nationalized banks and SBI and its subsidiaries form the
heart of the Indian banking system. These two entities operate 70% of the total
branches spread across the length and breadth of India.
BANK OF INDIA
As one of the leading public sector Indian banks, Bank of India has the
distinction of being the first bank to open a branch outside India. The bank,
which currently has overseas operations in about 10 countries, is one of the
leaders in financing foreign trade. It is one of the few Indian banks that provide
tele-banking facilities, Remote Access Terminals for corporate clients, and
Signature Retrieval System. Some of the recent forays made by the bank in
terms of its business operations include bullion business and demat services.

It is a pioneer in terms of the introduction and adoption of a model banking

policy that suits India and other developing countries. The bank, which is
32

synonymous with progressive banking in India, has a strong presence in rural

India. The bank was nationalized in 1969. Syndicate Bank has correspondent
relations with 400 banks from all over the globe. The bank is also one of the
leading players in the foreign exchange market.
Citibank, idbi, hdfc,hsbc
CHALLENGE FOR THE INDIAN BANKING SECTOR
Indian banks have a long way to go before they reach the size of their
international counterparts. Even the biggest Indian bank, State Bank of India, is
nowhere on the international scale, with assets in the range of $50billion.
Absence of significant scale benefits and higher implicit costs of several services
are perpetuating the poor ranking of Indian banks in the international league
tables.
Shareholding structure, government regulations and sheer size of the country
ensure that the existence of Indian banks is not at stake at this stage. What is at
stake is the banking support that is available for Indian economic activity, and
thereby the international competitiveness of various sectors. What is also at
stake is the scope for the banking industry to earn superior returns through
differentiated wider services.
Further, it is quite conceivable that with passage of time, as government holding
in banks is progressively divested, regulatory authorities will be unable to hold
back the international giants from buying out Indian banks. Even economies
with a "domestic mindset", such as France and Germany, have been forced to
bow before the international capital market forces.

33

It would be a shame if painstakingly built retail strength is offered on a platter to

some predator. The challenge can be met through some concerted action -

Government
The Government needs to do away with artificial fragmentation of
the financial sector. A case in point is the segregation of banks and
financial institutions induced by policy. If this is changed, we may well
see mergers between the two sectors to create organizations of size. Why
not a merger of Industrial Development Bank of India with Bank of
Baroda, or even better with State Bank of India? This would definitely
lead to a merger between AXIS and AXIS Bank and for that matter
between HDFC and HDFC Bank. The possibilities are interesting and
numerous.

Domestic Banks
Domestic Banks - private as well as public - need to continuously explore
options to acquire or merge with other institutions to enhance their size,
service or skill-set. This could also mean looking beyond the national
boundaries as truly global corporations do.

New Initiatives

34

The recent crisis in the Far East has demonstrated the need for a
robust banking sector. Therefore the whole structure of Regional Rural
Banks (RRBs) and Urban Co-operative Banks (UCBs) needs to be
strengthened. The focus that FMCG companies such as Hindustan Lever
have given to the rural sector proves that private sector interest is not
limited to the cities and major towns. Technological changes (such as
wireless communication, net etc.) have drastically changed the
communications scenario. This may be the time to come out with
interesting initiatives with regard to structure of RRBs and UCBs so that
private sector organizations - banks as well as non-banks - play a greater
role in meeting the needs and aspirations of hitherto neglected parts of the
country.

Social considerations
The full benefit of mergers can only be realized if they are followed up
with some hard measures such as re-location / closure of branches,
rationalization of employee strength etc. It would be a welcome change if the
management and unions collaborate in seeking appropriate social security from
the Government - financed out of the divestment of stake in these banks.
Indian banking has to operate with a global mindset even while fulfilling local
banking requirements. By joining in the effort to make this happen, we will get
the banking service we need. Else, we will deserve the banking service we get.

35

(INTRODUCTION OF TOPIC)

The topic of COMPARISION BETWEEN AXIS AND HDFC BANK:

Banking is the backbone of a modern economy. Health of banking industry is
one of the most important pre-conditions for sustained economic progress of any
country. The world of banking has assumed a new dimension at the dawn of the
21st century with the advent of tech banking, thereby lending the industry a
stamp of universality. In general, banking may be classified as retail and
corporate banking. Retail banking, which is designed to meet the requirements
of individual customers and encourage their savings, includes payment of utility
bills, consumer loans, credit cards, checking account balances, ATMs,
transferring funds between accounts and the like. Corporate banking, on the
other hand, caters to the needs of corporate customers like bills discounting,
opening letters of credit and managing cash.
The Indian banking scene has changed drastically with the private sector
making inroads in an area hitherto dominated by large public sector banks.
Growing disinvestment is likely to impact the banking industry as well. There is
every possibility of privatization of public sector banks, leading to greater
operational autonomy.
36

The development of the Indian banking sector has been accompanied by

the introduction of new norms such as Income Recognition and Capital
Adequacy, by the government. The latter implies that banks can lend on the basis
of their respective capital base. These norms have caused banks to construct
equity on their own, before going in for debt. Disintermediation is a real threat
for banks. Of late, banks are adopting the EVA (Economic Value Added) concept
wherein revenues are viewed in the context of the risk associated with them.
The New World order has ensured "Survival of the Fittest". New
services are the order of the day, in order to stay ahead in the rat
race. Banks are now foraying into net banking, securities, consumer
finance, housing finance, treasury market, merchant banking and
insurance.

37

RESEARCH METHODOLOGY

Research methodology is a systematic way, which consists of series of action

steps, necessary to effectively carry out research and the desired sequencing to
these steps. The marketing research is a process of involves a no. of inter-related
activities, which overlap and do rigidly follow a particular sequence. It consists
of the following steps: Formulating the objective of the study
Designing the methods of data collection
Selecting the sample plan
Collecting the data
Processing and analyzing the data
Reporting the findings

Objective of Study

Research Design

Sample Design

Data Collection
38

Data Analysis

Report of findings

OBJECTIVE
To stud of market share in banking sector of AXIS and HDFC.
To study the consumer satisfaction with AXIS and HDFC.
To know about the is the position of AXIS bank in market.
To analyze the decision making process of the consumers.
.

39

RESEARCH DESIGN
Research design specifies the methods and procedures for conducting a
particular study.

A research design is the arrangement of conditions for collection and analysis of

the data in a manner that aims to combine relevance to the research purpose with
economy in procedure. Research design is broadly classified into three types as

Exploratory Research Design

Descriptive Research Design
Causal Research Design

I have chosen the descriptive research design.

40

DESCRIPTIVE RESEARCH DESIGN:

Descriptive research studies are those studies which are concerned with
described the characteristics of particular individual.

In descriptive as well as in diagnostic studies, the researcher must be able to

define clearly, what he wants to measure and must find adequate methods for
measuring it along with a clear cut definition of population he want to study.
Since the aim is to obtain complete and accurate information in the said studies,
the procedure to be used must be carefully planned. The research design must
make enough provision for protection against bias and must maximize
reliability, with due concern for the economical completion of the research study.

SAMPLE DESIGN
A Sample Design is a definite plan for obtaining a sample from a given
population. It refers to the technique to the procedure adopted in selecting items
for the sampling designs are as below:

41

SAMPLE SIZE
Sample method
Survey period
SAMPLE SIZE: The substantial portions of the target customer that are
sampled to achieve reliable result are 50.
The cost and time limitation completed me to select 50 respondents as sample
size

SAMPLING METHOD:
In this marketing research project, I am using
Random sampling method

SAMPLE DESIGN
As complete enumeration of all the members of the population (Member and
Non-member) I have understate sampling technique.

SAMPLE SIZE

200 Customers

SAMPLE TYPE
AREA SAMPLING
Sample area
42

Lucknow
SAMPLE SELECTION
Simple random selection sampling
SAMPLE TECHNIQUE
I have taken the Statistical tool of percentage method to analysis and
interpretation of the collected data.
RANDOM SAMPLING:
A random sample gives every unit of the population a known and non-zero
probability of being selected. Since random sampling implies equal probability
to every unit in the population, it is necessary that the selection of the sample
must be free from human judgment.
There is some confusion between the two terms random sampling and
unrestricted random sampling. In the latter case, each unit in the population has
an equal chance of being selected in the sample. Such a sample is drawn with
replacement, which means that the unit selected at each draw is replaced into
the population before another draw is made from it, As such, a unit can be
included more than once in the sample. Most statically theory relates to
unrestricted random sampling. In order to distinguish between these two
sample. I.e. sample, without replacement and sample with replacement, the
terms sample random sample and unrestricted random sample are used. If the
latter is devised in such a manner that no unit can be included more than once, it
will then be known as the simple random sampling.

43

It may be noted that while both sample random sampling and unrestricted
random sampling give an equal probability to each unit of the population for
being included in the sample, there are other sample design too which provide
equal probability to the units. The process of randomness is the very core of
simple and unrestricted random sampling. The selection of a sample must be
free from bias, which can be ensured only when the process of selection is free
from human judgment.
COLLECTION OF DATA
DATA COLLECTION
The study was conducted by the means of personal interview with respondents
and the information given by them were directly recorded on questionnaire.
For the purpose of analyzing the data it is necessary to collect the vital
information. There are two types of data, this are Primary Data
Secondary data
PRIMARY DATA:Primary data can be collected through questionnaire. The questionnaire can be
classified into four main types.
Structured non disguised questionnaire
Structured disguised questionnaire.
Non structured non disguised questionnaire
44

 Non structured disguised questionnaire.

For my market study, I have sleeted structured non-disguised questionnaire

because my questionnaire is well structured, listing of questions are in a
prearranged order and where the object of enquiry is revealed to the respondents.
To making a well-structured questionnaire, we have adopted three type of
questions Open ended question
Dichotomous questions
Multiple choice questions
These types of questions are easy to understand and easy to give required
answers.
SECONDARY DATA:Secondary data means data that are already available i.e. they refer the data
which have already been collected and analyzed by someone else. When the
researcher utilizes secondary data, than he has to look into various sources from
where h e can obtain them, in this case he is certainly not confronted with the
problems that are usually associated with the collection of original data.
Secondary data may either be published data or unpublished data. Usually
published data are available in:
Various publications of the central, state and local government;
45

 Various publications of foreign government or of international bodies and

their subsidiary organizational;
Technical and trade journals;
Books, magazines and newspapers;
Reports and publications of various associations connected with business
san industry, stock exchanges etc.;
Reports prepared by research scholars, universities, economists etc;
Public records and statistics, historical document and other source of
published information.
The source of unpublished data are many; they may be found in diaries, letters,
unpublished biographies and autobiographies and also may be available with
scholars and research workers, trade associations, labor because and other public
private individuals and organization.
COLLECTION TECHNIQUE:
Questionnaire method is used in collection the data.
DATA ANALYSIS
DATA PROCESSING AND ANALYSIS
Processing & Analysis the collected data: - once the field survey is over and
questionnaire have been received, the next task is to aggregate the data in a
meaningful manner. A number of tables are prepare to bring out the main
characteristics of the data. The researcher should have a well thought out
46

framework for processing and analyzing data, and this should be done prior to
the collection. it includes the following activities

(i) Editing: the first task in data processing is the editing. Editing is the process
of examining errors and omissions in the collected data and making necessary
corrections in the same.

(ii) Coding: coding is the procedure of classifying the answer to a question into
meaningful categories. Coding is necessary to carry out the subsequent
operations of tabulating and analyzing data. If coding is not done, it will not be
possible to reduce a large number of heterogeneous responses into meaningful
categories with the result that the analysis of data would be weak and
ineffective, and without proper focus.
(iii)Tabulation: tabulation comprises sorting of the data into different
categories and counting the number of cases that belong to each category. The
simplest way to tabulate is to count the number of responses to one question.
This is also called universal tabulation. The analysis based on just one variable is
obviously meager. Where two or more variables are involved in tabulation, it is
called bivariate or multivariate tabulation.
(iv) Analysis: after the all three above steps, the most important step is
analysis of the data. Under this step, they can use the various tools of
the analysis such as Central Tendency, Dispersion, Correlation coefficient, Regression Analysis, Test of Hypothesis etc.
47

Are you having an bank account?

(Figure-1)
1- 70%

From which bank you have account?

48

(Figure-2)
1- 38% Bank name of ICICI.
2- 12% Bank name of HDFC.

3- 20%Bank name of other.

Do you think that Bank is giving a good return?

49

(Figure-3)
1- 32%Bank giving a yes return.
2- 68%Bank giving a no return.

Are you planning to get account or loan from any company?

50

(Figure-4)
1-

In which company are you looking to invest?

51

(Figure-5)
1-

If get an opportunity in future would you like to be get attached with AXIS
Bank?

52

90
80
70
60
VALUES IN 50
NUMBER 40
30
20
10
0

83

17
NO

YES
YES OR NO

(Figure-6)

RECOMMENDATIONS

AXIS Bank and HDFC bank has to improve its brand image, i.e. it
has to position itself in the minds of prospects in a better way in
comparisons to others.

53

 It should provide better career opportunities for the retention of its

potential advisors.

Further it has to provide training to its recruited advisors by good and

efficient training methods, which might be a little bit customized if
needed.

It should more emphasize in advertising, as it is the most powerful

tool to position ant brand in the mindsets of customers.

It should provide online training and for those who are in jobs and
want to become advisors AXIS should provide evening training
classes, so that they can join the training after doing there jobs.
CONCLUSION

Banking is also now being regarded as a versatile financial planning tool.

Research indicates that Indians have four basic financial needs during their
life asset accumulation (such as buying a house or car), protecting their
family, securing their childrens education, and provision for their
retirement.

54

India being a country having a huge population of around one billion people
with only 32% of the banking population in India possessing banking the
country has a vast potential, which has been left untapped till now.

For Banking company Banking advisors are the lifeline and a very huge
asset so each company try to recruit and select a potential force of Banking
advisors because this is the advisors who generate maximum business for the
Bank . Banking advisors provide a very strong support to the Bank and do
sall possible efforts to generate huge amount of profit to the company and
for him.

BIBLIOGRAPHY

BOOKS:
Kothari, C.R, Research Methodology, New delhi, Vikas Publishing House
PVT LTD. 2007
AXIS and HDFC brochure of advisors Recruitment.

55

QUESTIONNAIRE
PERSONAL DETAILS:
Name Mr./Mrs./Miss__________________________
Address____________________________________
___________________________________________
Phone No. __________________________________
Email ______________________________________
Occupation
a) Government Employee

b) Private Employee

c) Self Employed

d) Student

E) Housewife

Your monthly household income

a) Less than 15000
Please

give

b) 15001-25000

some

references

of

c)25001 and above

people

who

you

trading/investing in stocks:
1. _________________________________
2.

_________________________________
56

know

are

Q1.

Q2.

Q3.

Q4.

Q5.

Where do you open a account?

ii.

AXIS

iii.

HDFC

iv.

Any other.

Which bank is more secure?

i.

AXIS

ii.

HDFC

iii.

Other

Which banks give more return?

i.

ICICI

ii.

HDFC

iii.

Other

Are you satisfied with services of bank?

i.

Yes

ii.

No

Your open account decisions are influenced by

i.

Oneself
57

Q6.

ii.

Broker

iii.

Market Research

iv.

Friends/Relatives

v.

An other

Are you satisfied with company services?

i.

Q7.

Yes

ii.

No

What are the factors which you considered before opening account in a
particular bank?
i.

Financial Position

ii.

Current Market Position

iii.

Goodwill

iv.

Future Prospects

v.

Any others.

58