SUMMER TRAINING REPORT SUBMITTED TOWARDS THE PARTIAL

FULFILLMENT OF POST GRADUATE DEGREE IN INTERNATIONAL

BUSINESS

“Priority Banking -AXIS Bank”

SUBMITTED BY:

Name: Aman Kapoor

MBA-IB (2008-2010)
Roll No. : A1802008189

INDUSTRY GUIDE FACULTY GUIDE

Mr. Rajat Sharma Col. Ks Mohan

Deputy Manager
NRI Services

Mrs. V. Sitalakshmi
Branch Relationship Manager
Priority Banking

Mrs. Priyanka Nautiyal

Senior Relationship Manager
Priority Banking

AMITY INTERNATIONAL BUSINESS SCHOOL, NOIDA

AMITY UNIVERSITY – UTTAR PRADESH

1
 TO WHOM IT MAY CONCERN

This is to certify that Aman Kapoor, a student of Amity International Business

School, Noida, undertook a project on “Priority Banking” at Axis Bank, Sec-14,
Gurgaon from 01-May-2009 to 30-June-2009.

Mr.Aman Kapoor has successfully completed the project under the guidance of Mrs.
V. SitaLakshmi. He is a sincere and hard-working student with pleasant manners.

We wish all success in his future endeavors.

Mrs. V. Sitalakshmi
Branch Relationship Manager
Priority Banking
Axis Bank.

2
 CERTIFICATE OF ORIGIN

This is to certify that Mr. Aman Kapoor, a student of Post Graduate Degree in MBA-
IB (2008-10), Amity International Business School, Noida has worked in the Axis
Bank, under the able guidance and supervision of Mr. Rajat Sharma, Deputy
Manager, Axis Bank and Mrs. V. Sitalakshmi, Branch Relationship Manager, Axis
Bank. The period for which he was on training was for 8 weeks, starting from 1st May
’09 to 1st July ‘09. This Summer Internship report has the requisite standard for the
partial fulfillment the Post Graduate Degree in International Business. To the best of
our knowledge no part of this report has been reproduced from any other report and
the contents are based on original research.

Signature Signature
(Faculty Guide) (Student)

3
 ACKNOWLEDGEMENT

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

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

This project is an attempt to share my experience & learning in a shot span of time
with organization like Axis Bank.

I would also like to thank the entire team of Axis Bank, for the constant support and
help in the successful completion of my project.

Also, I am thankful to my faculty guide Mr. KS Mohan of my institute, for his

continued guidance and invaluable encouragement.

Aman Kapoor

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 TABLE OF CONTENTS

Chapter No. Subject Page No.

Ch.# 1.0 Executive Summary 6

Ch.# 2.0 Research Methodology 7
2.1 Research Objective(s) 8
2.2 Research Design 8
2.3 Sample Design 9
2.4 Scope of the Study 9
2.5 Limitations 9
Ch.# 3.0 Industry Profile 10-18
3.1 Company Profile 19- 39
Ch.# 4.0 Data Collection 40
4.1 Primary Data 40
4.2 Secondary Data 40
Ch.# 5.0 Findings & Analysis 40-55
Ch.# 6.0 Recommendations 56-57
Ch.# 7.0 Bibliography 58
Ch.# 8.0 Annexure 59-61
8.1 Questionnaire 59-61
Ch.# 9.0 Case Study 62-66
Ch# 10.0 Synopsis of the project 67-69

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 Chapter- 1
EXECUTIVE SUMMARY

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

Treasury,

Corporate/Wholesale Banking,

Retail Banking and

Other Banking Business.

The Treasury segment includes investments in sovereign and corporate debt, equity
and mutual funds, trading operations, derivative trading and foreign exchange
operations on the account and for customers and central funding.

The Corporate/Wholesale Banking includes corporate relationships not included

under Retail Banking, corporate advisory services, placements and syndication,
management of public issue, project appraisals, capital market related services and
cash management services.

The Retail Banking segment constitutes lending to individual/small business subject

to the orientation, product and granularity criterion and also includes low-value
individual exposures not exceeding the threshold limit of 5, 00, 00,000 as defined by
Reserve Bank of India. It also includes liability products, card services and Internet
banking services.

In India, all the retail banking segments are expected to witness a tremendous growth
owing to the low cost of borrowing, changing customer attitudes towards borrowing
and optimism regarding economic growth. Retail lending constitutes just 12.36% of
the Indian banking system.

All around the world retail lending has been an established market however its rise in
emerging economies like India has been of recent origin. If recent statistics on
consumer finance are any indication, the last few years have been trend setting. The
traditional debt-averse, middle-class Indians who lived within their thrifty means,
never to venture beyond their means, seem to have given way to a new middle-class
that is free from all inhibitions regarding conspicuous consumption. Unlike its
predecessors, the middle-class of today has donned a new attitude; it attaches no
social-stigma in taking loans for spending.

Apart from the above, one major service launched in the banking sector, concentrating
on a particular segment of its customers is:

Priority Banking

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 Chapter-2

RESEARCH METHODOLOGY

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically.

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

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2.1 PRIMARY OBJECTIVE

Marketing research is a systematic collection, analysis, interpretation and reporting of

marketing manager to solve some marketing problem. This particular study was
designed with the objective of “Evaluating and analyzing the success of Priority
Banking Service of Axis Bank” and “the contribution of NRI Services under
Retail Banking”.

The Primary Objectives of the study are as follows:

• Understanding the concept of Priority Banking.

• Understanding the various promotional measures taken by the Bank for
promoting Priority Banking.
• Assessing the growth in the total volume.
• Suggesting remedial course of action for Axis Bank in regards to Priority
Banking.

SECONDARY OBJECTIVE

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

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

2.2 RESEARCH DESIGN

Research design stands for the planning of methods to be adopted for collecting the
relevant data and techniques to be used in their analysis .It is a plan in advance for
data collection and analysis and is needed for the research report.

The research type followed in the study is exploratory and descriptive in which
specific forcasting, narration of facts is gathered.
• The objective of the study was formulated before commencing the research.
• The sample size was not decided in advance as the population was covered
for a new concept “Priority Banking”.
• The method of data collection was decided in advance and a rigid procedure
was followed for the collection of data, asking question in a manner so as to
avoid redundancy and not missing any of the important part.
• The data was processed and analyzed using the specific tool (SPSS
Software).
• The findings are reported.

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2.3 SAMPLE DESIGN

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

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

Sampling procedure
Since the total area of interest is a big one and the concept is still under promotional
stage, we select a branch where customers from almost every financial background.
Thus, Quota Sampling is the most appropriate sampling technique in this study.

Number of customers coming to the Bank:

Sample size of customers n = 31

2.4 SCOPE OF THE STUDY

To provide strategic recommendations to the company to improve the services under

Priority Banking leading to Axis Bank’s growth share and understanding the strategic
leverages provided by the other Banks to increase the volumes.
• Status of awareness of existing and new customers about benefits they receive
from Priority Banking.
• Upgrading the company about the different Banks and the services they are
providing to increase their volumes.
• Determining the problems faced by existing customers.

2.5 LIMITATIONS

• Only population of a Branch at Gurgaon was surveyed so that report

cannot be depended upon for other areas.
• Customers are least interested in filling up the questionnaire.
• Hardly any customer visits the bank. Being priority customers, the
customers prefer doorstep services.
• Customers are not ready to answer subjective questions.

9
 Chapter- 3

INDUSTRY PROFILE

Western and Global Banking History

In 1565, The London Royal Exchange was established. At that time Bankers implies
moneychangers, though the term "bank" usually referred to their offices, and did not
carry the meaning it does today. A proper hierarchical order was followed among
professionals; Bankers were at the top, who did the business with heads of state, next
were the city exchanges, and at the bottom were the pawn shops or "Lombard"s.
Some European cities today have a Lombard street where the pawn shop was located.

Proliferation of Global banking and capital market services started during the 1980s
and 1990s as a result of a great increase in demand from companies, governments,
and financial institutions, but also because financial market conditions were buoyant
and, on the whole, bullish.

Major Events in Banking Industry

 Introduction of Paper Money- Bank Notes

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

1602
 The Bank of North America Founded – 1781

 Rothschild family founds Euro wide banking- 1800

 The Wall Street Crash of 1929, 9,000 banks close, wiping out a third of the
money supply in the United States- 1930-33

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

2008

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INDUSTRY PROFILE- India.

Originated in the last decade of 18th century, Banking is a very popular Industry. State
Bank of India is the oldest bank in India, is a government bank that traces its origin
back to June 1806 and is the largest commercial bank in the country. The Reserve
Bank of India takes the responsibility of Central Banking, which in 1935 formally
took over these responsibilities from the then Imperial Bank of India, relegating it to
commercial banking functions. The Reserve Bank was nationalized after India's
independence in 1947 and given broader powers. In 1969 the government nationalized
the 14 largest commercial banks; the government nationalized the six next largest in
1980.

Currently, India has:

88 commercial banks (SCBs), out of these there are:

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

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

 38 foreign banks

All the above stated banks have a combined network of over 53,000 branches and
17,000 ATMs. ICRA Limited, a rating agency, reported that the public sector banks
hold over 75 percent of total assets of the banking industry, with the private and
foreign banks holding 18.2% and 6.5% respectively.

The period during 1914-1945, which includes the First World War and the Second
World War, and two years thereafter until the independence of India were challenging
for Indian banking. More than 90 Banks in India failed between 1913 and 1918.

The Reserve Bank of India, India's central banking authority, was nationalized, and it
became an institution owned by the Government of India in the year 1948.

The Banking Regulation Act was enacted which empowered the Reserve Bank of
India (RBI) in 1949 "to regulate, control, and inspect the banks in India."

Various safety provisions were made by the Banking Regulation Act, one of those
was that no new bank or branch of an existing bank could be opened without a license
from the RBI, and no two banks could have common directors.

However, despite these provisions, control and regulations, banks in India continued
to be owned and operated by private persons, except the State Bank of India. This
changed with the nationalization of major banks in India on 19 July, 1969.

11
In the early 1990s, the then Narsimha Rao government embarked on a policy of
liberalization. The government gave licenses to a small number of private banks.

These came to be known as New Generation tech-savvy banks, and included Global
Trust Bank (the first of such new generation banks to be set up), which later
amalgamated with Oriental Bank of Commerce, Axis Bank(earlier as UTI Bank),
ICICI Bank and HDFC Bank. This move, along with the rapid growth in the economy
of India, revitalized the banking sector in India, which has seen rapid growth with
strong contribution from all the three sectors of banks, namely, government banks,
private banks and foreign banks.

Banking Industry- 2009

Some growth in Banking Sector has been witnessed by the Annual Policy 2008-2009
of the Reserve Bank of India, the central bank as reflected by the changing liquidity
positions arising from domestic and global financial conditions and the policy
initiatives taken by the government.

According to a study by Dun & Bradstreet (an international research body)—"India's

Top Banks 2008"—there has been a significant growth in the banking infrastructure.
Taking into account all banks in India, there are overall
 56,640 branches or offices,
 893,356 employees and
 27,088 ATMs.

The aggregate bank deposits stood at 21.2% as on January 2, 2009.

Bank credit touched 24% on January 2, 2009 as against 21.4% on January 4, 2008.

 Bank rate cuts announced

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

Major Players

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

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 HDFC Bank

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set
up a bank in the private sector, as part of the RBI's liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

The Bank at present has an enviable network of over 1412 branches spread over 528
cities across India.

Customers in over 500 locations are also serviced through Telephone Banking.

The Bank also has a network of about over 3295 networked ATMs across these cities.

HDFC Bank began operations in 1995 with a simple mission: to be a "World-class

Indian Bank".

HDFC Bank has its deposit programmes rated by two rating agencies - Credit
Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited.
The bank's Fixed Deposit programme has been rated 'CARE AAA (FD)' [Triple A] by
CARE, which represents instruments considered to be "of the best quality, carrying
negligible investment risk".

Services Offered are:

 Personal Banking
 NRI Banking
 Wholesale Banking

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 ABN AMRO Bank

On 29 March 1824 King Willem-I issued a royal decree creating the Nederlandsche
Handel-Maatschappij with the aim of reviving trade between the Netherlands and the
Dutch East Indies. In 1964, NHM merged with De Twentsche Bank to form
Algemene Bank Nederland (ABN), while Amsterdamsche Bank and Rotterdamsche
Bank joined to become Amsterdam-Rotterdam (Amro) Bank. In 1991, these two
banks merged as ABN AMRO Bank. Today, ABN AMRO Bank has a powerful
presence in world markets, building on a tradition of stimulating international trade.

As an international bank, ABN AMRO has more than 3,500 branches in over 70
nations across the globe.

"ABN AMRO's mission is to create maximum economic value for the shareholders
through a constant relationship.

The Bank is operating in three principal customer segments, whereby the objective is
to maximise the value of each of these businesses as well as the synergies between
them.

The Indian operations of ABN AMRO Bank began in 1920 when the first branch was
opened in Kolkata.

ABN AMRO Bank, a full-services bank, has since expanded operations in 21 cities.

Services Offered are:

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

14
 HSBC Bank

The HSBC Group has an international pedigree which is unique. Many of its principal
companies opened for business over a century ago and they have a history which is
rich in variety and achievement.

The HSBC Group is named after its founding member, The Hongkong and Shanghai
Banking Corporation Limited, which was established in 1865 to finance the growing
trade between China and Europe.

HSBC is the world's local bank.

Headquartered in London, HSBC is one of the largest banking and financial services
organizations in the world.

HSBC's international network comprises around 9,500 offices in 86 countries and

territories in Europe, the Asia-Pacific region, the Americas, the Middle East and
Africa.

With listings on the London, Hong Kong, New York, Paris and Bermuda stock
exchanges, shares in HSBC Holdings plc are held by around 200,000 shareholders in
some 100 countries and territories.

The shares are traded on the New York Stock Exchange in the form of American
Depositary Receipts.

Services Offered are:

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

15
 Standard Chartered Bank

Standard Chartered was formed in 1969 through a merger of two banks: The Standard
Bank of British South Africa, founded in 1863, and the Chartered Bank of India,
Australia and China, founded in 1853.

Founded by James Wilson following the grant of a Royal Charter by Queen Victoria
in 1853.

Chartered opened its first branches in Mumbai (Bombay), Kolkata and Shanghai in
1858, followed by Hong Kong and Singapore in 1859.

Played a major role in the development of trade with the East which followed the
opening of the Suez Canal in 1869 and the extension of the telegraph to China in
1871.

In 1957 Chartered Bank bought the Eastern Bank together with the Ionian Bank's
Cyprus Branches. This established a presence in the Gulf.
Founded in the Cape Province of South Africa in 1862 by John Paterson. Commenced
business in Port Elizabeth, in January 1863.

Standard Chartered was prominent in financing the development of the diamond

fields of Kimberley from 1867 and later extended its network further north to the new
town of Johannesburg when gold was discovered there in 1885.

It expanded in Southern, Central and Eastern Africa and, by 1953, had 600 offices.

In 1965, it merged with the Bank of West Africa, expanding its operations into
Cameroon, Gambia, Ghana, Nigeria and Sierra Leone.

From the early 1990s, Standard Chartered has focused on developing its strong
franchises in Asia, Africa and the Middle East. It has concentrated on consumer,
corporate and institutional banking and on the provision of treasury services - areas in
which the Group had particular strength and expertise.

Since 2000 the Bank has achieved several milestones with a number of strategic
alliances and acquisitions

At Standard Chartered the success is built on teamwork, partnership and the diversity
of the people.

Today Standard chartered employ 75,000 people, representing 115 nationalities, and
you'll find 60 nationalities among our 500 most senior leaders.

16
Services Offered are:

 Personal Banking
 Private Banking
 SME Banking
 Wholesale Banking

17
 ICICI Bank

ICICI Bank is India's second-largest bank with total assets of Rs. 3,793.01 billion
(US$ 75 billion) at March 31, 2009 and profit after tax Rs. 37.58 billion for the year
ended March 31, 2009.

The Bank has a network of 1,451 branches and about 4,721 ATMs in India and
presence in 18 countries.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the
National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary.

ICICI was formed in 1955 at the initiative of the World Bank, the Government of
India and representatives of Indian industry.

The principal objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses.

In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank.

In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

Services Offered are:

 Deposits
 Loans
 Cards
 Investment & Insurance
 Demat Accounts
 NRI Services

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 3.1 COMPANY PROFILE

Axis Bank, previously called UTI Bank, was the first of the new private banks to have
begun operations in 1994, after the Government of India allowed new private banks to
be established. The Bank was promoted jointly by the Administrator of the Specified
Undertaking of the Unit Trust of India (UTI-I), Life Insurance Corporation of India
(LIC), General Insurance Corporation Ltd., National Insurance Company Ltd., The
New India Assurance Company, The Oriental Insurance Corporation and United
Insurance Company Ltd.

UTI-I hold a special position in the Indian capital markets and has promoted many
leading financial institutions in the country. The bank changed its name to Axis Bank
in April 2007 to avoid confusion with other unrelated entities with similar name.

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

As on the year ended March 31, 2009 the Bank had a total income of Rs.
13,745.04 crores and a net profit of Rs 1,812.93 crores.

At the end of March 2009, the Bank has a very wide network of more than 726 branch
offices and Extension Counters.

The Bank has loans now (as of June 2007) account for as much as 70 per cent of the
bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are around
57 per cent (Rs 28,000 crore) of the total loans as of March 2007.

In the case of Axis Bank, retail loans have declined from 30 per cent of the total loan
book of Rs 25,800 crore in June 2006 to around 23 per cent of loan book of Rs.41,280
crore (as of June 2007). Even over a longer period, while the overall asset growth for
Axis Bank has been quite high and has matched that of the other banks, retail
exposures grew at a slower pace.

If the sharp decline in the retail asset book in the past year in the case of Axis Bank is
part of a deliberate business strategy, this could have significant implications (not
necessarily negative) for the overall future profitability of the business.

19
Despite the relatively slower growth of the retail book over a period of time and the
outright decline seen in the past year, the bank’s fundamentals are quite resilient.
With the high level of mid-corporate and wholesale corporate lending the bank has
been doing, one would have expected the net interest margins to have been under
greater pressure. The bank, though, appears to have insulated such pressures. Interest
margins, while they have declined from the 3.15 per cent seen in 2003-04, are still
hovering close to the 3 per cent mark. (The comparable margins for ICICI Bank and
HDFC Bank are around 2.60 per cent and 4 per cent respectively. The margins for
ICICI Bank are lower despite its much larger share of the higher margin retail
business, since funding costs also are higher).

Risk and earnings perspective

Such strong emphasis and focus on lending also does not appear to have had any
deleterious impact on the overall asset quality. The bank’s non-performing loans are
even now, after five years of extremely rapid asset build-up, below 1 per cent of its
total loans.

From a medium-term perspective, it appears that Axis Bank could be charting out a
niche for itself in the private bank space. It appears to be following a business strategy
quite different from the high-volume and commodity-style approach of ICICI Bank
and HDFC Bank. That strategy also has its pluses in terms of the relatively higher
margins in some segments of the retail business and the in-built credit risk
diversification (and mitigation) achieved through a widely dispersed retail credit
portfolio. But, as indicated above, Axis Bank has been to able to maintain the quality
of its loan portfolio despite the concentrated nature of wholesale corporate lending.

20
Milestones

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

Dec-07 Axis Bank gets AAA National Long-Term Rating from Fitch Ratings

July-07 UTI Bank re-brands itself as Axis Bank

July-07 UTI Bank successfully raises USD 1050 million

July-07 UTI Bank ties up with Tata Motors Ltd. for Car Loans

Feb-07 Finance Minister Shri P. Chidambaram Launches Shriram - UTI Bank

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

Feb-07 UTI Bank announces the launch of its Meal Card

Feb-07 UTI Bank announces the launch of its Gift Card

Jan-07 UTI bank opens Priority Banking branch in Mumbai and Kolkata

Nov-06 UTI Bank opens Priority Banking Lounge in Pune

Aug-06 UTI Bank announces the launch of its Credit Card Business

Apr-06 UTI Bank opens its first international branch in Singapore

Oct-05 UTI Bank extends banking services to the rural milk producers in
Anand and Kheda districts in Gujarat

May-05 UTI Bank and Bajaj Allianz join hands to distribute general insurance
products

Mar-05 UTI Bank gets listed on the London Stock Exchange, raises US$
239.30 million through Global.

21
Fact Sheet

Name: Axis Bank

Business Description: Banking Services, Financial Assistance & other Advisory

Services.
Type Public BSE: 532215

Founded Ahmedabad, 1994.

Headquarters Mumbai, India

Key people Shikha Sharma, MD & CEO

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

The Central Office Axis Bank Limited,

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

22
Mission & Values

OUR VISION

 Customer Service and Product Innovation tuned to diverse needs of individual

and corporate clientele.

 Continuous technology upgradation while maintaining human values.

 Progressive globalization and achieving international standards.

 Efficiency and effectiveness built on ethical practices.

Core Values

 Customer Satisfaction through Providing quality service effectively and

efficiently

 "Smile, it enhances your face value" is a service quality stressed on Periodic

Customer Service Audits

 Maximization of Stakeholder value

 Success through Teamwork, Integrity and People.

23
 Priority Banking

Growing Segment in Axis Bank

Mrs. V. SitaLakshmi
Branch Relationship Manager
Priority Banking
Axis Bank.

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

So, Priority Banking deals with the balance 20%

24
In a segmentation study undertaken in 2002, it was found that 2.72 %
of Axis Bank’s retail customers contribute to nearly 49.05% of the total retail
deposits.

The clients that bring a larger share of business to the Bank expect a differentiated
standard of service. This also makes business sense, as more often than not, most of
the business in a particular branch flows from a handful of clients.

Hence, Priority Banking was launched in order to cater to the needs of the high net
worth customers within the bank.

The product has at its core the thought of providing differentiation in service and
treatment to a segment of its customers with a view towards:

 Customer retention,
 Customer acquisition and
 Cross selling.

The eligibility criteria for Priority Banking are as given below:

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

account

(OR)

 A minimum relationship of Rs 5 lakhs (avg. quarterly balance) in a

combination of Savings and Term Deposits

(OR)

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

Account

 Personalized service from the Relationship Manager - who is the one-point

contact at the bank for all transactions.

 Access to the Priority Banking Lounge/ Area at branches

25
Priority Banking Debit Card with the following facilities:

o Free transactions at any VISA ATM in India

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

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

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

 At par payable cheque books

 Complimentary Gold Credit Card and 50% off on Issuance of Gold Plus
Credit Card – Offer valid on Secured Credit Card variants as well*

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

transaction

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

 Preferential pricing on Retail Loans *

 Preferential Rates on Foreign Exchange *

 Waiver on Foreign Remittances*

(OR)

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

account

(OR)

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

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

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

based on category enrollment.

26
Priority Banking Debit Card

Privileges offered to Priority Banking customers

The privileges offered as a part of Priority Banking include:

Banking privileges

Investment privileges

lifestyle privileges

Banking privileges

 Personalized service from the Relationship Manager - who is the one-point

contact at the bank for all transactions

 Access to the Priority Banking Lounge/ Area at branches

 Priority Banking Debit card with the following facilities:

 Free transaction at any VISA- ATM in India

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

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

 Free Personal Insurance Coverage of Rs 5 Lakhs on the Card

 At par payable cheque books

 Complimentary Gold Credit Card and 50% off on Issuance of Gold Plus
Credit Card – Offer valid on Secured Credit Card variants as well*

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

transaction

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

• Preferential pricing on Retail Loans *

27
 • Preferential Rates on Foreign Exchange *

• Waiver on Foreign Remittances*

• Free Mobile Banking Facilities

Investment privileges

 Complimentary financial planning, which includes free advisory services on

mutual fund investment and general insurance

 Exclusive invitations to investment talks.

 Regular Market information reports.

Lifestyle Privilege

 Invitations to lifestyle events such as movie screenings, music concerts,

theatre, art exhibitions etc.

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

 Bimonthly newsletter- Priority Pages.

28
 Priority Assist

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

Priority Banking branches:

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

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

Pune, Mumbai, Kolkata and Hyderabad.

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

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

29
The services made available in this branch:

Concierge Services

 Plush Lobby with waiting area, plasma TV. Etc.

 Business Center- for outstation customers travelling to the city for
business, equipped with Internet, fax and conference call facilities.
 Meeting/ discussion rooms for the customers to bank with their
Relationship Manager in comfort and confidentiality.
 Internet access zone
 Children’s play area- for keeping the customer’s children engaged while
they are being advised on their banking/ investments.
 Conference area- to hold small events, private screenings, customer meets
at the branch on a regular basis. Lifestyle privileges are an integral part of
the Priority Banking offering.

30
Priority Banking Lounge:

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

31
Dedicated Relationship Manager:

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

32
Come home to personalized banking privileges

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

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

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

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

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

33
See your money grow with investment privileges

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

Lifestyle privileges. At your doorstep.

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

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

34
 Mrs. Priyanka Nautiyal
Senior Relationship Manager
Priority Banking

Priority Banking Product Features- Axis Bank

1. The preferential rates of Interest on Loans and preferential Foreign

Exchange rates are charged on case-to-basis.

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

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

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

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

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

4. Axis Bank is providing the service of Delivery/ pick of cash limiting it to 2

deliveries/picks per week and 8 in a month.

Whereas, HDFC bank is not providing this facility.

But, Standard Chartered Bank is providing this facility for unlimited
times a day/week/month.

35
5. Axis Bank is providing the service of Delivery/ pick of Cheque limiting it to
2 deliveries/picks per week and 8 in a month.

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

6. Axis Bank is also providing its Priority Customers with Free Demand Draft
facility and so as the others banks like HDFC bank, ABN AMRO bank,
Standard Chartered.

But, HSBC is not providing this particular facility.

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

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

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

All the competing banks are providing this service.

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

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

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

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

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

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

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

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

36
13. Axis Bank is giving Tax Advisory Service to its Priority customers for free.

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

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

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

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

Standard Chartered is also providing these privileges but banks like

HDFC and HSBC are not giving these privileges.

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

Standard Chartered bank is providing only Investment Advisory

Services to its customers and the other banks are not providing these
services at all.

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

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

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

Doorstep Banking

Dedicated Relationship Managers

Financial planning

Invites to meet

Lounges

37
 The Growth Chart of Axis Bank’s Priority Banking Segment…

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

38
 The Growth Chart of Axis

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

39
 Chapter- 4

Data Collection

4.0 Collection: - From the sample of 31 customers’ data has been collected regarding
their experience with the priority banking segment, using a questionnaire which has
been filled by me on my system.

Data Sources: Primary as well as secondary data has been collected.

4.1 Primary Data: - it is the data collected first hand relating to specific queries and
problems. Its main advantage is that the information is up-to-date. On the other hand,
it is expensive and time consuming.

Sources of collecting Primary Data

The primary data is collected using a questionnaire which has been filled by me on
my system.

Contact method: - The questions were personally asked from the customers.

4.2 Secondary Data: - It is the information which has been already collected for
other purposes and is readily available in some form. Its advantage is that it is readily
available and cheap while its disadvantage is that the data may be irrelevant.

Sources of collecting Secondary Data

1. Internal Sources
2. Financial books from various libraries providing information on banking
sector.
3. Information technology tools like Internet from where the various sites were
visited like HDFC Bank, ICICI Bank, HSBC Bank, ABN AMRO Bank, etc.
4. Newspapers like Economic Times, Financial Express etc. providing various
articles on the banking sector and priority banking.

40
 Chapter- 5

FINDINGS AND ANALYSIS

ANALYSIS:

To determine the age groups of Priority Customers.

FINDINGS:

The age group of consumers were divided into 4 groups i.e. 20-30, 30-40, 40-50 and
50 & above. Out of 31 consumers 9.7% belong to 1st group,19.4% belong to 2nd
group, 25.8% belong to 3rd group and 45.2% belong to 4th group.

41
ANALYSIS:

To identify the qualification of the Priority Customers.

Educational Qualification of the

Customer

Matriculation
Graduate
Professional
Post Graduate

FINDINGS:

Out of 31 priority customers, maximum customers are Post-Graduate and the

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

42
ANALYSIS:

To identify the Occupation of the Priority Customers.

FINDINGS:

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

43
ANALYSIS:

To identify the Annual Household Income of the Priority Customers.

FINDINGS:

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

44
ANALYSIS:

To determine the Service Satisfaction from the Relationship Manager.

FINDINGS:

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

45
ANALYSIS:

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

FINDINGS:

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

46
ANALYSIS:

To determine the strenghts of the Relationship Managers.

Strengths

35

30

25

20

15

10

0
Wise Dedication Spontaneous Decision Knowledge
Taking Skills of the
products

FINDINGS:

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

47
ANALYSIS:

To identify the weaknesses of the Relationship Managers.

FINDINGS:

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

48
ANALYSIS:

To determine the type of Banking Customers prefer.

FINDINGS:

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

49
ANALYSIS:

To determine the average ranking of the Relationship Managers.

Ranking

18
16
14
12
10
8
6
4
2
0
1
2
3
4
5

FINDINGS:

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

50
ANALYSIS:

To analyze the Promotional part of Priority Banking.

FINDINGS:

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

51
ANALYSIS:

To determine the quality of relationship with Axis Bank.

Relationship Quality

Excellent
Good
Average
Fair
Poor

FINDINGS:

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

52
ANALYSIS:

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

FINDINGS:

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

53
ANALYSIS:

To determine the Professional Services required by customers.

FINDINGS:

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

54
ANALYSIS:

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

FINDINGS:

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

55
 Chapter- 6

RECOMMENDATIONS

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

Recommendations made:

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

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

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

• Axis Bank should start using some more Promotional Measures other than its
own Welcome Kit. Welcome Kit will only target the existing customers but
not the general public. The bank should opt for the following promotional
measures:
- Brand Ambassador
- Advertisements- Television and News Papers
- Hoardings

• The company should aim at improving the Promotion of Priority Banking

Segment of Axis Bank.

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

• The Customers are also availing services of Professionals like Financial

Advisors, Portfolio Managers and Chartered Accountants from outside. To
grab some more customers Axis Bank should think of providing these services
as well.

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

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

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

56
• The downgrading limit of the Priority Customers should be either reduced or
some more provisions should be kept to attract the new customers and retain
the existing ones.

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

• The facility of Delivery/pickup of Cash/cheque should be improvised so as to

remove this limitation as compared to Standard Chartered Bank.

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

57
 Chapter- 7
BIBLIOGRAPHY

 Kothari, C.R. 2004, Research Methodology : Methods & Techniques, New

Age International Pvt. Ltd Revised Second Edition, New Delhi.
 Journal
 Times of India
 International Business Times.

References

 www.axisbank.com
 wikipedia.org/wiki/Axis_Bank
 www.moneycontrol.com/india/.../banks.../axis-bank/AB16
 www.business-beacon.com/kommon/bin/sr.php?kall...
 connect.in.com/profile/Axis_Bank/292983
 money.rediff.com/companies/axis-bank-ltd/.../balance-sheet
 in.reuters.com/money/quotes/incomeStatement?symbol
 www.financialexpress.com/news/...Bank...Axis-Bank/207688/
 www.standardchartered.co.in/
 www.abnamro.com/worldwide/countrydisplay.cfm?...3048
 www.icicibank.com/
 www.hdfcbank.com
 www.hsbc.co.in
 http://epaper.timesofindia.com//?
 http://epaper.timesofindia.com/Daily/skins/ETNEW/welcome.asp?QS=Daily
%3DETM%26showST%3Dtrue%26login%3Ddefault%26pub%3DET

58
 Chapter- 8
ANNEXURE
Questionnaire for Priority Bank Customers.

Priority Banking Axis Bank

Name:

Age Below 20 yrs.

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

Education Matriculation
Undergraduate
Graduate
Professional
Post- Graduate

Occupation Management Professional

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

Your approximate annual household upto Rs.10 Lakhs

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

How satisfied are you with the services Very satisfied

you received from your Relationship Somewhat satisfied
Manager? Neither satisfied nor dissatisfied
Somewhat dissatisfied
Dissatisfied

What are the strong points of your Wise

Relationship Manager? Dedication
Spontaneous
Decision Taking Skills
Knowledge about the products

59
What are the weaknesses of your Weak presentation Skills
Relationship Manager? Less Knowledge about the
products
No regular follow-ups
Less customer contacts

Rate your Relationship Manager on the 1

scale of 5 2
5- Highest +ve 3
1- Lowest -ve 4
5

How satisfied are you with the speed in Very satisfied

which the services/ products are Somewhat satisfied
delivered? Neither satisfied nor dissatisfied
Somewhat dissatisfied
Dissatisfied

You came to know about Priority Axis Bank’s Welcome Kit

Banking via: Friends
Relatives
Promotions
Walk-ins

How easy was it to find the information Very Easy

on the scheme? Easy
Difficult
Very Difficult

Would you recommend your Yes

friends/relatives for Priority Banking No
Services of Axis Bank?

How do you rate the overall quality of Excellent

your relationship with Axis Bank, Good
considering all of your experiences with Average
them? Fair
Poor

Do you have any other relationship with ATM Cards

Axis Bank? Bonds
Car Loans
Credit Cards
Current Account
Fixed Deposits
Others…………………………..

60
Do you have an account with other Loans
bank(s)? Demat
Savings Account
Fixed Deposits
Current Account
No other Account
Others…………………………..

Do you use the services of : Chartered Accountant

Financial Advisor
Portfolio Manager
Not Required

Which of the following services do you Mobile Banking

use? Internet Banking
Phone Banking
Relationship Manager

61
 Chapter- 9

CASE STUDY

Relationship Management

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

Abstract

As Mr. Dalal walks into the Priority Banking Floor, the bellboy rushes forward to
open the door and to take him at the reception area. Mr. Dalal asked for Mr. Sameer
Shawney, with whom he has been dealing for long. The person at the reception
informed Mr. Dalal that Mr. Sameer has been transferred to some other branch and all
his customers will be taken care off by Mr. Rohit Shah, a newly appointed
Relationship Manager (Due to lack of staff Mr. Rohit has not been given any
training). The Receptionist also informed Mr. Dalal that his appointment has also
been fixed with Mr. Rohit and the reasons for your visit have also been communicated
to him.

The bellboy took Mr. Dalal to Mr. Rohit, who greeted him and offered him couch to
sit. Mr. Rohit asked for Mr. Dalal’s introduction and the reason for his bank visit. Mr.
Dalal was a bit surprised with this question of Mr. Rohit as the reason for his visit has
already been communicated to Mr. Rohit as per the Receptionist’s statement but Mr.
Dalal did not reacted on this and introduced him self and informed him the reasons for
his visit as well.

Mr. Dalal wanted to know the details of all the Insurance Policies and Mutual Funds
he has invested in and their market responses as Mr. Dalal is looking forward to sell
off all the Mutual Funds and would like to have a Fixed Deposit of Rs. 10 lakhs and
take some more Life Insurance Policies as well.

This whole act of informing Mr. Rohit took almost 30 minutes, which made Mr. Dalal
a bit uncomfortable.

62
Mr. Rohit again asked him regarding the types of Mutual Funds he has invested into
and the Insurance Policies expiry dates. This made Mr. Dalal rougher than ever.
Finally, Mr. Dalal asked Mr. Rohit to find all this information because being a priority
customer it’s the duty of the RM to take a note of everything. Mr. Rohit started
checking his records; this process took almost 1 hour. In the mean while Mr. Dalal
lost his patience and he complained the Branch RM for the careless behavior of Mr.
Rohit and moved out of the Bank, without making any fixed deposit decision for
which he came to the bank.

Questions:

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

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

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

63
 Suggested Solution

Sol. 1) Mr. Rohit, who is Relationship Manager, should have paid full attention
towards the client. It is a part of RM’s duty to know everything about the customer he
has to handle. Mr. Rohit, after being aware of the arrival of Mr. Dalal, had not
prepared for reasons for his arrival. RM should be very attentive and as Mr. Rohit had
given an appointment for Mr. Dalal, he should have recognized Mr. Dalal, as soon as
Mr. Dalal introduced himself.
Moreover, Mr. Rohit should have prepared and ready with all the details of Mr.
Dalal’s past dealings with the bank, so that he could give him solutions to Mr. Dalal’s
queries and could show his spontaneity and quick decision making skills.
The carelessness and delay in getting the solutions for his queries had made Mr. Dalal
lost his patience, thus making him move out of the bank.

Sol. 2) The remedial action should be that the Branch Relation ship Manager should
ask Mr. Rohit to study the past banking transaction done by Mr. Dalal with the bank.
Mr. Rohit should calculate the Market response of Mr. Dalal’s Mutual Fund
Investments and all the feasible L.I.C. policies as per Mr. Dala’s requirements.

After this exercise, Mr. Rohit should call Mr. Dalal and should show his apology on
the earlier incident. In order to maintain the relation, he should either request Mr.
Dalal to visit the bank once again or should seek his acceptance for getting his queries
solved at his residence.

Sol. 3) Customer data is one of the most important information that companies use to
personalized their services. The database of its own customers is a strong competitive
tool.
In other words, this proprietary information can provide a company with a strong
competitive advantage when dealing with its own customers.

64
 Profit
Business
Operations

Measures Improve

Process Learning
Relationship
Initiatives

Plan
Product

Implement Evaluate

Technology Strategy

Communicate

Relationship

65
Customer Experience Management

CEM represents the processes and methods that are employed to design and manage a
customer’s entire experience with a product or a service. Companies use customer
feedback and overall deeper understanding into the customer’s needs, wants, and
requirements, to create CEM solutions. A successful company builds and retains
clientele by concentrating on providing an experience customers would want to
recreate.

Every time a customer interacts with a company, he/she has a certain experience. The
company captures these experiences as feedback. The feedback helps the company
understand the customer’s expectations from the product or service, and the company
can work backwards and change the existing product or service to meet customer
expectations.

It is important for the company to select the people involved in the improvement with
care. The people chosen should be trained and given all the technological tools they
need to do a good job. They should also be able to perceive customer needs and try to
meet them. The front line and support staff should have the right attitude, interest and
enthusiasm to make the service experience a memorable one for the customers.

66
 Chapter- 10: SYNOPSIS

AXIS BANK Priority Banking

Student’s Name: Aman Kapoor

Industry Guides:
Mr. Rajat Sharma- NRI Services
Mrs. V. Sitalakshmi- Priority Banking
Mrs. Priyanka Nautiyal- Priority Banking
Faculty Guide: Col. KS Mohan

The primary objective of this project was to understand the

concept of priority banking and promotional measures used
by Axis Bank. And suggesting remedial course of actions for
improving this particular segment.
The secondary objective is to make a comparison of Axis
Bank with other competitors and suggesting remedial actions.

The findings after doing the research work was that the
bank’s priority segment covers the customers from all age
groups but customers from age group of 50 yrs. & above are
more attracted towards priority banking. Most customers and
qualified and come from all income groups & educational
back grounds.

Customers are somewhat satisfied with the services given by

their Relationship Managers. Thus, maximum customers are
interested in performing any banking transaction through their
Relationship Manager. Their wise behavior and good
knowledge of the products are their strengths but they are
weak as far as their presentation skills are concerned.

Credit cards, ATM cards and fixed deposit are the major
services customer’s opt under priority banking because
plastics money is today’s trend and fixed deposits help
customers to become priority customers. The promotional
measures used by the bank is either its own welcome kit,
which can only attracts existing customers to the priority
segment or the pamphlets.

67
The conclusions drawn on the basis of the project work
done were that:
• The target customers should be customers from all age
groups and specifically from the age group of 50 &
above, as these customers, due to their age constraints,
would like to have services without visiting the bank.

• The Relationship Managers should improve their

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

• Axis Bank should start using some more Promotional

Measures other than its own Welcome Kit. Welcome
Kit will only target the existing customers but not the
general public. The bank should opt for the following
promotional measures:
- Brand Ambassador
- Advertisements- Television and News
Papers
- Hoardings

• The Customers are also availing services of

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

• The Credit giving regulations of Axis Bank is quite

stringent, which, on one hand pulling the NPAs down
but also affecting the bank’s credit business.

• The problem of Pin Codes is the major problem as far

as i-connect banking is concerned. There is a huge
scope to improve this particular area at Axis Bank.

• The downgrading limit of the Priority Customers

should be either reduced or some more provisions
should be kept to attract the new customers and retain
the existing ones.

• If the good amount of Fixed Deposits are their in the

Bank of a particular customers than the limit of Rs.
1,00,000 minimum balance for a priority account
should be made flexible.

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

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