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Corporate Story of

Axis Bankby

MANENDRA SHUKLA

INTRODUCTION

Axis Bank (Formerly known as UTI) was one of the few

private banks to have began operations in 1994

The Bank was promoted jointly by the Administrator of the

specified undertaking of the Unit Trust of India (UTI) • Life Insurance Corporation of India (LIC). • General Insurance Corporation Ltd (GIC). • National Insurance Company Ltd. • The New India Assurance Company. • The Oriental Insurance Corporation. • United Insurance Company Ltd.

Journey From

to

1994-1997

. 1998-2000

2001-2005

2006-2011

PROBLEM

• WHY THEY CHANGE THEIR NAME FROM UTI TO AXIS BANK

Rebranding Exercise

Axis Bank

THE NEW NAME AXIS

• The new name was chosen considering the bank’s pan-Indian as well as international presence.

• The first time that a bank has dropped an established brand for an unknown name.

• The name Axis is chosen as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal.

The New Logo

The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is moving on from a

position of strength.

ABOUT AXIS

Dr. Adarsh Kishore ChairmanSmt. Shikha Sharma Managing Director & CEODr. R.H. Patil DirectorSmt. Rama Bijapurkar DirectorShri M.V. Subbiah DirectorShri K. N. Prithviraj DirectorShri V. R. Kaundinya DirectorShri S. B. Mathur DirectorShri Prasad R. Menon DirectorShri R. N. Bhattacharyya DirectorShri Samir K Barua DirectorShri A K Dasgupta DirectorShri Som Mittal Director

BOARD OF DIRECTORS

MISSION

• Customer Service and Product Innovation tuned to diverse needs of individual and corporate client.

• Continuous technology up gradation while maintaining human values.

• Progressive globalization and achieving international standards.

• Efficiency and effectiveness built on ethical practices.

CORE VALUES OF AXIS

• 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

• Maximizations of Stakeholder value

• Success through Teamwork, Integrity and People

Axis Bank

Marketing Objectives

Axis Bank want to achieve following marketing objectives by the end of the year 2011.

• To get the market capitalization 500 Crore• To get the 200 Crore retail investment. • To get 125 Crore Corporate investments. • To get the 175 Crore Capital investments.

REBRANDING

• Has retained the burgundy color, but has changed the logo.

• Spend around Rs50 Crore in the re-branding exercise.

• Had hired advertising firm O&M.

SWOT ANALYSIS OF AXIS BANK

OPPORTUNITIES:

Growing Indian banking sectors. People are becoming more service oriented.

THREATS:Advent of MNC banksForeign banks Govt. banks Future market trends.

SWOT

Product

Price

Place

PromotionProcess

Physical Evidence

People

7p’s

The Flower of Service @ Axis:

Core

Mutual Funds

Consultation Services

Home loan

Mobile & Internetservices

D-mat a/c

ATM’s

E-banking

Advisory functions Facilitating elements Enhancing elements

KEY:Deposits &

Withdrawal of Money

Basic Banking Service

Good waiting rooms

Mobile & InternetBanking

Extensive ATM NetworkNew schemes

Tailored for Specific customers

Timely Service

24 ATM

Brandname

BankingHours

Augmentedservice

Actualservice

Coreservice

Three levels of service @ AXIS

S T P

segmentation targeting positioning

Interaction Between Customer And Service Provider(AXIS BANK)

Customer goes to the service provider (Visit Axis Bank)

Service provider goes to the customer(Personal Banker Sales)

Interaction at arm’s length (ATM, Internet Banking,Mobile Banking)

Competitors

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Private Sector Banks

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Public Sector Banks

Comparative AnalysisBank Branches ATM Cities Inception Overseas

Presence

Axis Bank 1095 4846 615 1994 4

HDFC 1725 4232 779 1994 8

SBI 13076 21000 1955 32

PNB 4668 3700 1895 5

OBJECTIVES OF HRD IN AXIS BANK

• Initiate & institutionalize globally competitive HR practices.

• Put in place relevant HRD strategies and use modern methodologies.

• Create a performance-driven culture and an exciting workplace.

• Create a pool of entrepreneurial managers and business leaders.

• Create a learning organization for employees .

FUNCTIONS OF HRD

• Ultimate aim of the human resources function is to build and manage a motivated pool of professionals delivering optimum value to customers.

• Major platforms on which the success of the bank's corporate strategy rests is bringing on board the requisite skills.

• Young bank with an average age of 29 years and a talent pool comprising a mix of new recruits and experienced officers.

THE PROCESS

Recruitment and selection

Training and development

Performance appraisal

Compensation

RECRUITMENT PROCESS IN AXIS BANKCV Submission And Application Evaluation

Ability Tests

Capability Based Interviews

Reply Letters

Job Offer

TRAINING & DEVELOPMENT

• Streamlined Induction schedule for all new joinees.

• Talent identification& grooming programmes.

• Grooming & etiquettes programmes.

• Role-change programmes & executive development programmes.

PROCESS contd…..

• PERFORMANCE APPRAISAL

• COMPENSATION

Axis Bank

Balance SheetCapital and Liabilities: 2011 2010 2009

Total Share Capital 410.55 405.17 359.01

Equity Share Capital 410.55 405.17 359.01

Share Application Money 0.00 0.17 1.21

Preference Share Capital 0.00 0.00 0.00

Reserves 18,588.28 15,639.27 9,854.58

Revaluation Reserves 0.00 0.00 0.00

Net Worth 18,998.83 16,044.61 10,214.80

Deposits 189,237.80 141,300.22 117,374.11

Borrowings 26,267.88 17,169.55 10,185.48

Total Debt 215,505.68 158,469.77 127,559.59

Other Liabilities & Provisions 8,208.86 6,133.46 9,947.67

Total Liabilities 242,713.37 180,647.84 147,722.06

Balance SheetAssets 2011 2010 2009

Cash & Balances with RBI 13,886.16 9,473.88 9,419.21

Balance with Banks, Money at Call 7,522.49 5,732.56 5,597.69

Advances 142,407.83 104,343.12 81,556.77Investments 71,991.62 55,974.82 46,330.35Gross Block 3,426.49 2,107.98 1,741.86

Accumulated Depreciation 1,176.03 942.79 726.45

Net Block 2,250.46 1,165.19 1,015.41Capital Work In Progress 22.69 57.24 57.48Other Assets 4,632.12 3,901.06 3,745.15Total Assets 242,713.37 180,647.87 147,722.06Contingent Liabilities 429,069.63 296,125.58 104,428.39Bills for collection 57,400.80 35,756.32 29,906.04Book Value (Rs) 462.77 395.99 284.50

Profit & Loss account Income 2011

2010 2009

Interest Earned 15,154.81 11,638.02 10,835.49Other Income 4,632.13 3,945.78 2,896.88Total Income 19,786.94 15,583.80 13,732.37Interest expended 8,591.82 6,633.53 7,149.27Employee Cost 1,613.90 1,255.82 997.66

Selling and Admin Expenses 2,406.59 2,443.05 1,572.83

Depreciation 289.59 234.32 188.67Miscellaneous Expenses 3,496.55 2,502.55 2,008.57

Preoperative Exp Capitalised 0.00 0.00 0.00

Operating Expenses 5,734.55 5,066.76 3,590.42

Provisions & Contingencies 2,072.08 1,368.98 1,177.31

Total Expenses 16,398.45 13,069.27 11,917.00

Profit & Loss account---------------- in Rs. Cr. -------------- 2011 2010 2009

Net Profit for the Year 3,388.49 2,514.53 1,815.36

Profit brought forward 3,427.43 2,348.09 1,553.87Total 6,815.92 4,862.62 3,369.23Preference Dividend 0.00 0.00 0.00Equity Dividend 670.36 567.45 420.52Corporate Dividend Tax 0.00 0.00 0.00Earning Per Share (Rs) 82.54 62.06 50.57Equity Dividend (%) 140.00 120.00 100.00Book Value (Rs) 462.77 395.99 284.50

Transfer to Statutory Reserves 836.95 867.43 600.62

Transfer to Other Reserves 338.84 0.31 0.00

Proposed Dividend/Transfer to Govt 670.36 567.45 420.52

Balance c/f to Balance Sheet 4,969.77 3,427.43 2,348.09

Total 6,815.92 4,862.62 3,369.23

Cash Flow------------------- in Rs. Cr. ------------------- 2011 2010 2009

Net Profit Before Tax5135.66 3851.36 2785.19

Net Cash From Operating Activities 11425.07 28.87 10551.63

Net Cash (used in)/fromInvesting Activities

-13985.33 -5122.98 -9741.96

Net Cash (used in)/from Financing Activities 8769.69 5304.07 1692.32

Net (decrease)/increase In Cash and Cash Equivalents

6204.75 189.54 2512.66

Opening Cash & Cash Equivalents 15203.91 15016.90 12504.24

Closing Cash & Cash Equivalents 21408.66 15206.44 15016.90

Ratios2011 2010 2009

Profitability ratios

Operating margin (%) 27.43 25.58 22.13

Gross profit margin (%) 25.93 24.06 20.74

Net profit margin (%) 17.20 16.10 13.31

Leverage ratios

Total debt/equity 9.96 8.81 11.49

Owners fund as % of total source 9.12 10.19 8.00

Fixed assets turnover ratio 5.65 7.31 7.78

2011 2010 2009

Liquidity ratios

Current ratio 0.56 0.63 0.37

Quick ratio 19.60 19.19 9.52

Payout ratios

Dividend payout ratio (net profit) 19.78 22.56 23.16

Earning retention ratio 80.26 77.47 76.94

Ratios

Ownership Pattern

Performance Chart