Executive SummaryExecutive Summary

The banking sector in India has become very much competitive in the last few years

with the increasing growth of private and public sector banks. Day by day the competition is

becoming more stringent and crucial.

I undertook training in AXIS bank limited for profiling to understand the banking

operations and services provided by AXIS bank. The topic "Branch Banking" helped to

understand the overall banking operations of a branch.

This project is basically being formulated to study the branch banking operations in

the Branch of Axis Bank. This includes parameters like overall performance, current account,

saving account, and other facilities being provided by AXIS BANK. It also includes a study

of customer centricity approach of AXIS bank.

The market needs are continuously changing and so are the needs of the Current

account & Savings account holders. The major backup of any nation are the industrialists of

the same and the prior to them is the facility of the current accounts and customer of banks

which open saving account. Hence the facilities equipped in current accounts & saving

account is always a task for research.

AXIS Bank is one of the fastest growing banks in the country and has an extremely

competitive and profitable banking franchise evidenced by: Comprehensive portfolio of

banking services including Corporate Credit, Retail Banking, Business Banking, Capital

Markets, Treasury and International Banking. The quality of service is best among the

competitors

This Project Report involves an attempt to bring forward the various facilities being

provided by the top privatized bank as for the current account& saving account holders. Also

the significance of AXIS BANK has been brought forward in the report.

As this project is a part of the academic curriculum, the learnings and experiences from the training at AXIS Bank are also included in this report.

Industry Overview

(Banking Industry)Banking - An overview:

Banking is an activity of engaging in the business of keeping money for savings and

checking accounts, for exchange or for issuing loans and credit, transacting business with a

bank; depositing or withdrawing funds or requesting a loan etc. In general terms, the business

activity of accepting and safeguarding money owned by other individuals and entities, and

then lending out this money in order to earn a profit.

Banking in the modern sense of the word can be traced to medieval and early

Renaissance Italy, to the rich cities in the north like Venice and Genoa who dominated

banking in 14th century, establishing branches in many other parts of Europe. Perhaps the

most famous Italian bank was the Medici bank, set up by Giovanni Medici in 1397. The

earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded

in 1407 at Genoa, Italy

The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in

Siena, Italy, which has been operating continuously since 1472.

Banking In India Overview:

Banking in India originated in the first decade of 18th century. The first banks were

The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are

now defunct. The oldest bank in existence in India is the State Bank of India, which

originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three

presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The

presidency banks were established under charters from the British East India Company. They

merged in 1925 to form the Imperial Bank of India, which, upon India's independence,

became the State Bank of India. For many years the Presidency banks acted as quasi-central

banks, as did their successors. The Reserve Bank of India formally took on the responsibility

of regulating the Indian banking sector from 1935. After India's independence in 1947, the

Reserve Bank was nationalized and given broader powers.

Banking History:

The first fully Indian owned bank was the Allahabad Bank, established in 1865.

However, at the end of late-18th century, there were hardly any banks in India in the modern

sense of the term. The American Civil War stopped the supply of cotton to Lancashire from

the Confederate States. Promoters opened banks to finance trading in Indian cotton. With

large exposure to speculative ventures, most of the banks opened in India during that period

failed. The depositors lost money and lost interest in keeping deposits with banks.

Subsequently, banking in India remained the exclusive domain of Europeans for next several

decades until the beginning of the 20th century. Foreign banks too started to arrive,

particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in

Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a

French colony, followed. Calcutta was the most active trading port in India, mainly due to the

trade of the British Empire, and so became a banking centre.

Around the turn of the 20th Century, the Indian economy was passing through a

relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the

social, industrial and other infrastructure had improved. Indians had established small banks,

most of which served particular ethnic and religious communities.

By the 1900s, the market expanded with the establishment of banks such as Punjab

National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which

were founded under private ownership. Punjab National Bank is the first Swadeshi Bank

founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. A number of banks

established then have survived to the present such as Bank of India, Corporation Bank, Indian

Bank, Bank of Baroda, Canara Bank and Central Bank of India.

Structure of Banking in India:

Indian Banking Sector:

The last decade has seen many positive developments in the Indian banking sector.

The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance

and related government and financial sector regulatory entities, have made several notable

efforts to improve regulation in the sector. The sector now compares favourably with banking

sectors in the region on metrics like growth, profitability and non-performing assets (NPAs).

A few banks have established an outstanding track record of innovation, growth and value

creation. This is reflected in their market valuation. However, improved regulations,

innovation, growth and value creation in the sector remain limited to a small part of it. The

cost of banking intermediation in India is higher and bank penetration is far lower than in

other markets. India’s banking industry must strengthen itself significantly if it has to support

the modern and vibrant economy which India aspires to be. While the onus for this change

lies mainly with bank managements, an enabling policy and regulatory framework will also

be critical to their success.

RBIScheduled Bank

Scheduled Commercial Banks

Pubilc Sector Banks

Private Sector Banks

Foreign Banks

Regional Rural Banks

Scheduled Cooperative BanksScheduled Urban Cooperattive

Banks

Scheduled State Cooperative Banks

Non-Scheduled Bank

Public Sector banking in India:

Banking System in India is dominated by nationalized banks. The nationalization of

banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major

objective behind nationalization was to spread banking infrastructure in rural areas and make

available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before

1969, State Bank of India (SBI) was the only public sector bank in India. SBI was

nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of

Indian banks took place in the year 1980. Seven more banks were nationalized with deposits

over 200 crores.

Private Sector Banking in India:

All the banks in India were earlier private banks. They were founded in the pre-independence

era to cater to the banking needs of the people. But after nationalization of banks in 1969

public sector banks came to occupy dominant role in the banking structure. Private sector

banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up

of private banks as part of its policy of liberalization of the Indian Banking Industry. 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. Private Banks have played a major role in the development of Indian banking

industry. They have made banking more efficient and customer friendly. In the process they

have jolted public sector banks out of complacency and forced them to become more

competitive.

OPPORTUNITIES AND CHALLENGES FOR PLAYERS

The bar for what it means to be a successful player in the sector has been raised. Four

challenges must be addressed before success can be achieved. First, the market is seeing

discontinuous growth driven by new products and services that include opportunities in credit

cards, consumer finance and wealth management on the retail side, and in fee-based income

and investment banking on the wholesale banking side. These require new skills in sales &

marketing, credit and operations. Second, banks will no longer enjoy windfall treasury gains

that the decade-long secular decline in interest rates provided. This will expose the weaker

banks. Third, with increased interest in India, competition from foreign banks will only

intensify. Fourth, given the demographic shifts resulting from changes in age profile and

household income, consumers will increasingly demand enhanced institutional capabilities

and service levels from banks.

List of some Public & Private Sector Banks in India is as Follows

Public Sector Banks Private Sector Banks

Allahabad Bank

State Bank of India

State bank of Indore

State bank of Mysore

Bank of India

Bank of Maharashtra

Dena bank

HDFC bank

ICICI bank

AXIS bank

Bank of Rajasthan

Dhanalakshmi bank

Federal bank

IDBI bank

Yes bank

Company Overview

- AXIS Bank

Introduction to AXIS Bank:Axis Bank was the first of the new private banks to have begun operations in 1994,

after the Government of India allowed new private banks to be established. The Bank was

promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India

(UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of

India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd.,

The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United

India Insurance Company Ltd.

The Bank as on 30th June, 2011 is capitalized to the extent of Rs. 411.88 crores with

the public holding (other than promoters and GDRs) at 52.87%.

The Bank's Registered Office is at Ahmedabad and its Central Office is located at

Mumbai. The Bank has a very wide network of more than 1281 branches (including 169

Service Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270

ATMs (as on 31st March, 2011) providing 24 hrs a day banking convenience to its

customers. This is one of the largest ATM networks in the country.

The Bank has strengths in both retail and corporate banking and is committed to

adopting the best industry practices internationally in order to achieve excellence.

This is the first bank in India to offer the AT PAR Cheque facility, without any

charges, to all its Savings Bank customers in all the places across the country where it has

presence. With the AT PAR cheque facility, customers can make cheque payments to any

beneficiary at any of its existence place. The ceiling per instrument is Rs. 50,000. The latest

offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the

International Travel Currency Card. The Travel Currency Card is a signature based pre-paid

travel card which enables traveler’s global access to their money in local currency of the

visiting country in a safe and convenient way. The Bank has strengths in both retail and

corporate banking and is committed to adopting the best industry practices internationally in

order to achieve excellence. Axis Bank is one of the fastest growing banks in the country and

has an extremely competitive and profitable banking franchise evidenced by: Comprehensive

portfolio of banking services includes Corporate Credit, Retail Banking, Business Banking,

Capital Markets, Treasury and International Banking.

History of Axis bank:

Axis Bank Limited, formerly UTI Bank, (BSE: 532215, LSE: AXBC) is a financial

services firm that had 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 India Insurance

Company UTI-I holds 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. After the Retirement

of Mr. P. J. Nayak, Shikha Sharma was named as the bank's managing director and CEO on

20 April 2009.

Mission and Values:

Customer Service and Product Innovation tuned to diverse needs of individual and

corporate clientele.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices 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.

Corporate Relationships:

Max New York Life Insurance Company:

Products:

1. Traditional Plans (Whole Life Participating Insurance Policy, Life Partner

plus Policy)

2. Ul Common ConceptUl Common Concept

3. Ulpss(Smart Investment Pension Super, Smart Xpress, Fortune Builder, Shiksha Plus)

4. Universal LifeSecure Dreams

5. Riders(Payor Benefit Riders, Dread Disease, Personal Accident Benefit, Waiver of Premiums)

BAJAJ ALLIANZ (General Insurance)

Health Guard Jewellery Insurance Business Advantage Travel Elite Safe Home Plus Family Floater Health Guard Silver Health

Management of Company:

Board of Directors:The members of the Board are:

Dr. Adarsh Kishore Non-Executive Chairman

Smt. Shikha Sharma Managing Director & CEO

Shri S.K. Chakrabarti Deputy Managing Director

Shri J.R. Varma Director

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri M.V. Subbiah Director

Shri K. N. Prithviraj Director

Shri V. R. Kaundinya Director

Shri S. B. Mathur Director

Highlights Profit after tax up 34.76% to Rs. 3,388.49 crores

Net Interest Income up 31.14% to Rs. 6,562.99 crores

Fee & Other Income up 32.39% to Rs. 4,135.16 crores

Deposits up 33.93% to Rs. 18,9237.8 crores

Demand Deposits up 17.78% to Rs. 77,767.40 crores

Advance up 36.48% to Rs. 1,42,407.83 crores

Retail Assets up 33.32% to Rs. 27,759.23 Crores

Network of branches and extension counters increased from 983 to 1,390

Total number of ATMs went up from 4,293 to 6,270

Net NPA ratio as a percentage of net customer assets down to 0.26% from 0.36%

Earnings per share (Basic) increased from Rs. 65.78 to Rs.82.95

Proposed Dividend up from 120% to 140%

Competitors:

Private Sector competitors:

HDFC BANK

YES BANK

ICICI BANK

Public Sector competitors:

STATE BANK OF INDIA

PUNJAB NATIONAL BANK

DENA BANK.

PRODUCTS & SERVICES:

Savings Acounts Of Axis Bank:

1. EasyAccess Savings Account:

This account is an endeavor by the Bank to understand the consumers' needs and

redefine banking to suit the customer's requirements for a truly comfortable banking

experience. EasyAccess Savings Account gives an instant access to customer's money

anywhere, anytime. Possessing a range of unmatched features, it has been devised to better

suit the convenience of our eclectic client base.

One can avail of all these services with a minimum quarterly average balance of Rs.

5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural

centers

2. Krishi Savings Account:

Axis Bank offers a unique savings account which is easy to operate and allows you to

transact immediately. This product has been specially designed keeping in mind the unique

requirements of a farmer and others employed in the allied agricultural activities sector. Thus

this product has been called the Krishi Savings Account.

The Krishi Savings Account has also been extended for some of the "Allied

Agricultural Activities" like Animal Husbandry; Dairy/Poultry Farming, Fishery &

Aquaculture Sector; Horticulture; Sericulture; Floriculture; Handicraft Industry (Registered

with Khadi and Gram-Udyog Dept); etc.

Average Balance Requirement

This account is offered with the requirement of maintaining the half-yearly average

balance of Rs 1000 only.

3. Prime Savings Account:

At Axis Bank, we have always strived to pace our products with the growing

needs of our customers. The Prime Savings account has therefore been created with your

specific financial requirements in mind.

Features

Wider accessibility

Greater convenience

More comfort

Enhanced privileges

Enhanced privileges

One can avail of all these services with a minimum average balance of Rs 25,000 in

metro/urban/semi-urban centers and Rs 10,000 in rural centers.

4. Salary Account:

Axis Bank, believes in providing total financial solutions to the employer as well as

the employee, through the salary relationship. We understand that each employee in an

organization is at a different station of life having different financial and banking needs.

Benefits for the employees

Convenience in banking:

Anywhere Banking at any of our over 1200 branches and a network of over 5500

ATMs spread across more than 796 centers

Multi-city at par chequebooks

Electronic Fund Transfer facility across all banks in India

Internet Banking with Fund transfer facility to self and third party accounts

24x7 convenience at no charges with Axis Mobile

Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/-

balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc

Benefits on charges:

No penal charges related to minimum balance

Concessions on Pay Orders / Demand Drafts issued at Axis Bank locations

Debit and Pre-paid Cards:

International Debit Card with free Personal Accident cover

Debit card for spouse in case of joint account

Travel Currency Card providing great convenience to off-shore employees for carrying

local currency

Retail Lending:

Facility of Temporary Overdraft with the salary account

Preferential pricing on Retail Loans, as per eligibility criteria

Additional Banking Privileges:

Employee Reimbursement Account offered as a savings account variant with interest payable

quarterly

Benefits for the employer

Efficient disbursal of salary

Web Upload facility enabling your payroll department to upload salaries at its own

convenience

An Axis Bank official can be designated at your major locations for addressing all

queries and issues from HR department

An ATM can be specially installed at the work premises for added convenience in cash

withdrawals, subject to terms and conditions

5. Priority Account:

Axis Bank believes in relationships lasting beyond more transactions. Alongwith

providing preferential banking services, the bank also strive to form a long term bond of trust

and satisfaction with the customer. That's why AXIS has brought the Axis Bank Priority, a

preferential banking experience for selected customers. A service that would ensure not only

the highest level of Priority but also preferential treatment to selected customers.

6. Women's Savings Account:

The account is an endeavor by the Bank to understand the women's' needs and

redefine banking to suit their requirements for a truly comfortable banking experience.

Women's Savings Account gives an instant access to ones money anywhere, anytime. With

the Women's Savings Account, one can manage own money and life and Furthermore Axis

Bank's Women's Savings Account ensures that one have enough time for all the important

things in life.

7. Senior Citizen's Account:

It is a banking style that compliments ones Senior status. The account is an endeavour

by the Bank to understand the consumers' needs and redefine banking to suit their

requirements for a truly comfortable banking experience. Senior citizen Savings Account

gives an instant access to their money anywhere, anytime. Axis Bank's Senior Citizen

Savings Account has been designed keeping in mind the fact that a Senior citizen's banking

requirements are wholly different and require special consideration.

8. Demat Account:

Axis Bank is a registered member (Depository Participant) of NSDL. In this system,

physical security holdings are converted into electronic (or in other words, dematerialized)

holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first

depository. One can avail of all the depository-related services by just opening an account with

NSDL through Axis Bank.

9. Azaadi - No Frills Account:

In this Zero Balance Savings Account there is no need to maintain a fixed minimum

balance, mandatory amount in the account.

One qualify for Azaadi account if;

The sum total of all credits to ones account does not exceed Rs 1 lac during the

Financial year,

One do not intend to maintain an account balance higher than Rs 50,000 at any given

instant, and

One is unable to furnish full documentation as required ordinarily for fulfilling of

account opening norms

10. Defence Salary Account:

It is a Salute to the defence forces. Defence Salary Account from Axis Bank is a

product designed keeping in mind how tough a life in the Defence Forces is. Not only does it

come absolutely free, no minimum balance is required either. One can also access the entire

Axis Bank network, no matter where one is posted. With the complete gamut of banking

services (including overdrafts, loans and zero-balance requirements) one can now rest assured

about their family and all their financial needs.

11. Trust/Ngo Savings Account:

Axis Bank's Trust Account is an effort to offer thoughtful banking for people who

spend their lives thinking of others. It is a complete banking solution for Trusts, Associations,

Societies, Government Bodies, Section 25 companies and NGOs, so that the organisations can

devote all of their time to their noble motivations.

12. Pension Savings Account

Pension Savings Bank Account, from Axis Bank is specifically, designed for

Pensioner's (Existing & Prospective) of Central Govt. Civil Ministries/ Departments &

Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are wholly

different and require special consideration.

Current Account At Axis Bank:

Axis bank offers a wide range of current account products to suit its customers to suit

their business requirements. Each current account is customised to ensure efficient account

management, quick transfer of funds across the Axis Bank network coupled with modern day

electronic methods to stay in touch with the account on a real time basis.

Following are the various CURRENT ACCOUNTS offered by Axis Bank:

1. Club 50:

This unique and unparalleld product in the Industry comes with a half-yearly Average

Balance of Rs.50 lacs. The account is loaded with value added features like free doorstep

banking services, cheque protection facility, free Anywhere banking, free home branch cash

deposit upto Rs.2 crores per month, free RTGS/NEFT facility, free DD/PO and also a

Relationship Manager taking care of the account holders daily banking requirements.

Additional benefits offered to this account are continuous cheque stationary with hologram,

subscription to magazines, Gold Plus credit card, complementary Priority Banking accounts

and other lifestyle benefits/privileges.

2. Channel One:

This premium account comes equipped with a host of features like free doorstep

banking, cheque protection facility, free Anywhere banking ,free fund transfer, free home

branch cash deposit upto Rs.1.2 crores per month, free RTGS/NEFT facility along with a

Relationship Manager taking care of the daily banking requirements of the account holder.

This high-end current account comes with a Monthly Average Balance requirement of Rs.10

lacs.

3. Bussiness Privilage:

This current account with a monthly average balance of Rs.5 lacs, has been designed

to suit the transactional needs of the bank's valuable clients and offers enhanced free limits of

home branch cash deposit upto Rs. 60 lacs, free DD/PO and Anywhere Banking upto Rs.6

crores, free funds transfer amongst many other privilages.

4. Business Classic:

The Business Classic current account comes equipped to take care of the growing

business needs of the account holder with free limit of Rs.12 Lacs an home branch cash

deposit, free DD/PO & Anywhere Banking upto Rs.1.2 crores, free funds transfer, etc. All

these come with a Monthly Average Balance requirements of Rs.1 lac only.

5. Business Select:

This unique current account is the first of its kind, which has both flexibility and

fungibility of free limits as its core feature. The flexible limits allow a cash deposit , both

home branch and non home branch, of upto 12 times the Monthly Average Balance

maintained in the same charge cycle, with an assured free limit of Rs.6 lacs. The account also

has a combined free Anywhere banking and DD/PO limit of Rs.60 lacs per month and many

more attractive features at a Monthly Average Balance requirement of Rs.50,000/-.

6. Business Advantage:

The Business Advantage Account, with a Monthly Average Balance requirement of

Rs.25,000/-. It comes loaded with features, which include free home branch cash deposit upto

Rs.3 lacs, free limits for DD/PO & anywhere banking upto Rs.30 lacs, free funds transfer etc.

7. Normal Current Account:

This current account is designed for a Monthly Average Balance of Rs.10,000/-

comes with features like free home branch cash deposit upto Rs.1.2 lacs, DD/PO &

Anywhere banking free upto Rs.12 Lacs, free fund transfer, etc.

Collection and Payment Solutions:

In today’s competitive market place, effectively managing cash flow can make the

difference between success and failure. The Bank's cash-flow solutions gives the customer

maximum control over this vital asset. Whether one does business locally or throughout

India, bank can provide with innovative & integrated cash management solutions tailored to

ones specific needs. Bank's Cash Management products enable the efficient utilisation of

one's receivables through coordinated management of payments, collections and balances in

ones accounts. The objectives are to reduce costs, enhance control and optimise returns by

leveraging banking expertise for mutual gains. Besides banks online collection solutions like

Internet Payment Gateway & Point of Sales terminal will further smoothen ones receivables

management.

Banks extensive network, robust processes, online connectivity, web enabled

collection and payment solutions with single point contact and experienced team across the

country provides a complete transactional banking solution.

Term Deposits At Axis Bank:

1. Recurring Deposits:

Axis Bank's Recurring Deposit scheme will allow the customer with an opportunity to

build up their savings through regular monthly deposits of fixed sum over a fixed period of

time.

Features:

Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000

and above in multiples of Rs 500 thereafter.

The fixed numbers of instalments for which a depositor can opt are 12, 24, 36, 39, 48,

60, 63, 72, 84, 96, 108 and 120 months.

Transfer of Accounts - a recurring deposit account can be transferred from one office

of the Bank to another branch.

The amount of instalment once fixed, cannot be changed.

Instalment for any calendar month is to be paid on or before the last working day of

the month. Where there is delay in payment of instalment, one can regularize the

account by paying the defaulted instalment together with a penalty (at present it is @

PLR plus 4 % for the period of delay).Fraction of a month will be treated as full

month for the purpose of calculating the penalty.

The total amount repayable to a depositor, inclusive of interest, depends on the

amount of monthly instalments and the period of deposit.

2. Encash 24:

The Encash 24 (Flexi Deposit) gives the liquidity of a Savings Account coupled with

high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to ones

Savings Account providing the following unique facilities:

Maximum Returns:

As soon as the balance in ones Savings Account crosses over Rs 25,000, the excess, in

multiples of Rs 10,000 will be transferred automatically to a higher interest earning Fixed

Deposit Account. The maturity of fixed or term deposits formed as a result of transfer of

money from the Savings Bank account will be for a maximum period of 181 days and the

interest will be calculated on simple interest rate basis.

Maximum Liquidity:

The money parked in Fixed Deposits as a result of the above mentioned sweep out

from your Savings account can be easily accessed by issuing a cheque, withdrawing through

ATM etc. This amount is automatically reverse swept from the most recently formed Fixed

Deposit in units of Rs 5,000 to the Savings account whenever the balance in your Savings

account falls below Rs 25,000. The amount broken form your Fixed Deposit will earn interest

rates at the applicable rate for the period that the deposit was held with the Bank. The

remaining amount of Fixed Deposit will continue to earn the contracted rate of interest.

Auto Renewal:

On maturity of your linked Fixed Deposit, the Bank will automatically renew it for a

maximum period of 181 days.

3. Tax Saver Fixed Deposit:

In the Finance Bill of 2006, the government had announced Tax benefits to Bank

Term Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification

Number 203/2006 and SO1220 (E) dated 28/07/2006.

The salient points of the scheme notification are; (a) Fixed tenure without premature

withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100 minimum

and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt that shall be the basis

of claiming tax benefit.

Benefits of tax break u/s 80C of IT Act Benefit Illustrator Example:

Assume that a customer invests Rs 100,000 in this scheme @ 8% p.a. in fixed deposit

for five years. He will get a benefit of Rs 30,600 at 30.6 % on the eligible investment of INR

100,000 assuming that he is in Rs 2,50000 lac to Rs 10,0000 lac tax bracket, thus his

effective investment would be Rs 69,400. He would earn Rs 8000 (08 percent on 1 lac) as

interest per annum, which would translate to a return of 11.5 percent on the effective

investment of Rs 69,400.

"BRANCH BANKING"

INTRODUCTION

Branch Banking - An Overview

A bank is a financial institution which deals with

deposits, loans, advances and other related services. It receives

money from those who want to save in the form of deposits and

it lends money to those who need it.

A bank is a financial intermediary and appears in several related

basic forms:

a central bank issues money on behalf of a government, and regulates the money

supply

a commercial bank accepts deposits and channels those deposits into lending

activities, either directly or through capital markets. A bank connects customers with

capital deficits to customers with capital surpluses on the world's open financial

markets.

a savings bank, also known as a building society in Britain is only allowed to borrow

and save from members of a financial cooperative.

A Bank's main source of income is interest. A bank pays out at a lower interest rate on

deposits and receives a higher interest rate on loans. The difference between these rates

represents the bank's net income.

Oxford Dictionary defines a bank as "an establishment for custody of money, which it

pays out on customer's order."

A bank is an establishment that helps individuals and organizations, in the issuing,

lending, borrowing and safeguarding functions of money.

The term "bank" is derived from the French word "Banco" which means a Bench or

Money exchange table. In olden days, European money lenders or money changers used to

display (show) coins of different countries in big heaps (quantity) on benches or tables for the

purpose of lending or exchanging.

Concept of "Branch Banking":

Branch is considered as one of the most important

channel of the bank and is generally the most preferred channel

from the customer's point of view. The branch is referred to as

the face of the bank since the customer can visit personally and

meet and interact with the branch officials and avail the various

services offered by the bank. In reality, the branch is the sales and service channel of a bank

and the branch employees are generally responsible for both sales and service of bank's

products. Sales in terms of branch banking could be of any of the bank's deposits, products,

gold, retail or other investment products of other approved organizations, such as life

insurance, general insurance, and mutual fund.

Branch Banking operations refer to certain banking operations carried out by a bank

in certain specific branches. The most common examples of deposit products of a bank are

savings bank account, current accounts, fixed deposit accounts, and recurring deposit

accounts. The customers or the prospects desiring to open any of these accounts have to fill

an Account Opening Form [AOF] and submit the specified documents in order to meet the

Know Your Customer [KYC] guidelines issued by the Reserve Bank of India [RBI]

In most of the banks, the front office activities that involve customer interaction are

handled at the branches, for instance, cash receipts and payments, issue of DD or lockers. The

back office activities, such as clearing and account opening may be centralized at a different

location away from the branch. Activities like clearing centralize payments of drafts and

other instruments, which are related to the local area, may be grouped in to one centre.

Certain other activities that are common across centres may be performed at another place for

the purpose of achieving efficiency of operation and controlling costs.

Literature Review (On Branch Banking)

1. Branch Banking, Bank Competition, and Financial Stability

(Mark Carlson, Kris James Mitchener, NBER Working Paper No. 11291)

- Issued in May 2005.

It is often argued that Branch Banking stabilizes banking systems by facilitating

diversification of bank portfolios; however, previous empirical research on the Great

Depression offers mixed support for this view. Analyses using state-level data find that states

allowing branch banking had lower failure rates, while those examining individual banks find

that branch banks were more likely to fail. We argue that an alternative hypothesis can

reconcile these seemingly disparate findings. Using data on national banks from the 1920s

and 1930s, we show that branch banking increases competition and forces weak banks to exit

the banking system. This consolidation strengthens the system as a whole without necessarily

strengthening the branch banks themselves.

2. Branch Banking - As a Device for Discipline: Competition and Bank Survivorship

During the Great Depression.

(Mark Carlson, Kris James Mitchener, NBER Working Paper No. 12938)

- Issued in February 2007.

Because California was a pioneer in the development of intrastate branching, we use

its experience during the 1920s and 1930s to assess the effects of the expansion of large-

scale, branch-banking networks on competition and the stability of banking systems. Using a

new database of individual bank balance sheets, income statements, and branch

establishment, we examine the characteristics that made a bank a more likely target of a

takeover by a large branching network, how incumbent unit banks responded to the entry of

branch banks, and how branching networks affected the probability of survival of banks

during the Great Depression. We find no evidence that branching networks expanded by

acquiring "lemons"; rather those displaying characteristics of more profitable institutions

were more likely targets for acquisition. We show that incumbent, unit banks responded to

increased competition from branch banks by changing their operations in ways consistent

with efforts to increase efficiency and profitability. Results from survivorship analysis

suggest that unit banks competing with branch bank networks, especially with the Bank of

America, were more likely to survive the Great Depression than unit banks that did not face

competition from branching networks. Our statistical findings thus support the hypothesis

that branch banking produces an externality in that it improves the stability of banking

systems by increasing competition and forcing incumbent banks to become more efficient.

3. Successful Branch Transformations: Towards needs-based sales and service-

oriented delivery

- (Asian Banker Research, White Paper)

FOCUS ON THE FUTURE OF BRANCH BANKING

(The next generation of branch banking in the Asia Pacific region)

While in the last years the retail financial services industry in Asia has paid significant

attention to the development of e-banking, with many banks rolling out full-fl edged mobile

phone banking propositions in 2009 in particular, smart banks have never lost their focus on

fine-tuning their branch propositions and upgrading their infrastructure, seeing it as a key

success element in their overall network architecture as they represent the centre of building

sustainable customer relationships and business growth. Despite criticisms, the predominant

branch concept going forward will continue to be the one-stop shop, in particular for local

domestic banks.

They are building branches that are designed to cater more effectively to surrounding

communities by offering extraordinary levels of customer experience, service quality and

efficiency. The timing and degree to which a bank moves forward in transforming its branch

network will depend on market factors, demographics, customer preferences and a bank’s

own financial constraints and staffing capabilities, branch banking is moving away from an

undifferentiated, unintentional and inconsistent interaction with the customer to a branded

one which is actually valued by all segments because the proposition is relevant.

A major survey by Asian Banker Research indicates that a growing pool of banks

have begun assigning more capital for branch transformations. The new wave of branch

banking projects addresses the creation of superior front line execution by marrying front line

automation, workflow process optimization and the human element. More attention is also

paid to interactivity, discovery and instant delivery to assist in creating a market beating

customer experience for gaining competitive advantage.

ObjectivesObjectives

To get the knowledge of the concept of branch banking.

To study the different products and services offered by the bank.

To study the Customer Centricity approach of the Bank.

To understand the banks vision

Research Methodology

Introduction:

Research is systematic quest of knowledge. The purpose of research is to discover

answers to questions through the application of certain procedures. The research design

applied in the project is Descriptive research design as the major objective of the research is

to describe the preferences of the AXIS bank's customers. And the action which banks takes

to accomplish the goal of customer centricity.

Research Design:

Descriptive Research Design:

The major objective of descriptive research is to describe something usually market

characteristics and finding out views preferences of customers. It also includes surveys and

fact-finding enquiries of different kinds.

Descriptive research is preplanned and structured. It is typically based on

representative samples. A formal research design specifies the method for selecting the

sources of information and for collecting data from those sources.

Sampling:

Sample Element:

An element is the object about which or from which the information is desired . The

sample element of this project is the Customers who have their Saving and Current accounts

in Axis Bank in Ambernath.

Sampling Extent:

It refers to geographical boundaries in which sampling has been done. The sampling

extent of this project is Ambernath.

Sampling Size:

It refers to the number of units to be included in the study. The sampling size of the

study is 50 People who have their Savings and Current accounts in AXIS bank.

Sampling Technique:

The sampling technique refers to the technique used for getting response from the

respondent. Probability sampling refers to the technique wherein each and every unit of the

universe has an equal chance of being selected as sample. Non probability sampling refers to

the technique wherein each and every unit does not stand an equal chance of being as sample

and sample chosen relies on the personal judgment of researcher. The researcher can

arbitrarily or consciously decide what elements to include in the sample.

For the purpose of this study, Probability Sampling is used which relies on the chance to

select sample elements. The purpose of using this technique was to yield good estimates of

the population characteristics within non-probability sampling.

Convenient Sampling:

It is the least expensive and least time consuming of all sampling techniques.

Sampling units are accessible, easy to measure and co-operative so convenient sampling is

used for the purpose of project.

Instrument Decision:

A Structured set of Questionnaire supported by personal interviews has been used

to collect primary data in this project.

Data Collection:

The data collected for the research includes both primary and secondary data. The research used is descriptive and involve study of services provided by AXIS Bank and customer respond to services. Hence most of the data used is primary data. Secondary data has been used to support the study at some places. The information collected has been dissected and presented in a very lucid manner.

Methods Of Data Collection:

The task of data collection begins after a research design has been defined.

Collection Of Primary Data:

Several methods of collecting primary data, particularly in surveys and descriptive

researches are used. They are:

Observation method:

During the training program of two months, an observation was done of how

the bank employees perform their duties in the bank. Also it was observed that

what kind of customers visit the bank and how do employees deal with the

customers. The overall banking operations were also observed.

Interview method:

Both the structured and unstructured interview methods were used for

collecting primary data. A structured interview was done with the help of structured

questionnaires. Informal interactions with the bank employees and the customers

were also done for collecting the primary data.

Questionnaires:

A structured set of Questionnaire was prepared for collecting primary data.

The questionnaire was made for the Customers (Savings and Current Account

holders) of AXIS Bank.

In this project the source of primary data collection are structured

questionnaires supported by interviews.

Collection Of Secondary Data:

The collection of secondary data has been done by using various publications, books,

Manuals of AXIS bank, Annual reports, Bank's brochures, magazines, journals, newspapers

and internet. By way of caution, before using data, it was confirmed that it possess following

characteristics:

Reliability of data

Suitability of data

Adequacy of data

The information from the above sources has been searched, collected and interpreted in the best possible manner.

Data Interpretation And Analysis

ANALYSIS OF CUSTOMER CENTRICITY APPROACH OF AXIS BANK

ANALYSIS 1:This analysis displays the division of sample according to the occupation of 50 people who were surveyed.

Table 1

OCCUPATION Frequency PercentPublic Sector Employee 15 30Private Sector Employee 8 16Businessman 6 12Professional 17 34Retired 4 8Total 50 100

Public Sector Employee

Private Sector employee

Businessmen Professional Retired0

2

4

6

8

10

12

14

16

18

15

8

6

17

4

Occupation

Occupation

ANALYSIS 2: Are the customers satisfied with their savings and Current account?

86%

14%

No. Of People

YESNO

ANALYSIS 3: How the customers find savings and current account provided by Axis Bank?

46%

28%

22%4%

Customer Rating for Accounts

ExcellentVery goodGoodSatisfactorypoor

ANALYSIS 4: Do customers have any other product of AXIS BANK other than savings and

Current account? (Like term deposit, mutual funds, insurance, home loan, car loan etc.)

80%

20%

Third Party Products

YesNo

ANALYSIS 5: Which is better bank in ease of access (both branch & ATM)?

58%26%

10%6%

Better Banks in ease of access

AXIS HDFCICICIOthers

ANALYSIS-6: Which bank’s accounts provide greater flexibility?

40%

28%

24%

8%

Flexibilty Of Banks

AXISHDFCICICIOthers

ANALYSIS-7: Are the customers satisfied with the relationship manager’s service provided by Axis Bank?

82%

18%

Relationship Manager service

YESNO

ANALYSIS-8: Which channel do customers use to access their account?

48%

12%

20%

20%

Accessing Account

DIRECT BRANCHMOBILE BANKINGNET BANKINGPHONE BANKING

ANALYSIS-9: Which are the areas of improvement?

36%

24%12%

12%

16%

Areas Of Improvement

UPDATESSERVICETECHNOLOGYRELATIONSHIP MANAGEMENTPRODUCTS

Findings and Analysis The bank has good relations with its customers. The customers are very much

satisfied with the relationship manager service provided by Axis Bank.

The AXIS bank and its customers have a long term relationship. AXIS Bank also has

many high profile customers.

Axis Bank has the tendency to retain its customers at any cost. They believe that the

old customer is more profitable instead of a new one that’s why they try to maintain

good and long term relations with their customers.

The customers prefer banking by visiting the branch.

Less number of customers use mobile banking or internet banking.

The accounts of axis bank (both savings and current) provide great flexibility in terms

of offering.

The accounts of these three banks don’t have much difference in terms of features but

when it comes to service providing the AXIS Bank gets an edge because of their great

customer services.

The axis bank has good number of branches and ATM’s that’s why it has more ease

of access and a large reach of their business.

The customers of Axis Bank are highly satisfied with their savings and current

accounts.

AXIS bank saving accountholders and current accountholders are now expanding

their investment portfolios.

The study shows the Customer Centricity and Customer orientation of AXIS Bank

towards its valuable customers.

The study also helps to know the customers perception, what they want from their

banks and how they take decision while selecting a bank to invest their hard earned

money.

In this study I found that the bond of Axis Bank with its customers is very strong,

because Axis Bank mainly focuses on retaining their customers.

Recommendations and ConclusionRECOMMENDATIONS

• A wide publicity to be given about the organization and its products through various

means of communications to keep growth moments.

• AXIS bank should target customers that are ranging between 25-30 age group because

it was found that they are more interested in taking Business loan & to apply for new

variety of accounts.

• To eliminate the dissatisfaction proper workshop and awareness programs like

campaigning are helpful.

• AXIS bank should lower the charges rate if the balance falls below Average quarterly

balance.

• AXIS bank should work on their field networking and services to enhance more

credibility.

• New and unique products should be launched to attract more customers.

• Even if customer service in AXIS is excellent, it should keep on improving.

• AXIS should always try to enter the new markets before its competitor enters and

captures it.

• AXIS can perform a good research before entering into a new market.

AXIS should increase its customer reach at a very high rate.

The bank should focus on the semi urban and rural market because these markets are

of very good opportunity for someone like Axis Bank which is in growing face.

Without expanding in these markets Axis Bank cannot be a leading bank so they

should focus on this market.

The bank should focus on mass banking in order to increase their market share. They

should launch such products which would be within the reach of the lower middle

class

The bank should pay more attention on giving updates and should increase the level

of service providing because the competitors of axis are better in this area.

The bank should try to increase the use of technology like mobile and net banking

among its customers.

CONCLUSION

While working with Axis Bank I found that AXIS BANK is one of the leading private

banks and provides commercial banking services. After changing its name as AXIS

BANK it promises to serve its customers the best in future. This bank has developed

manifold in short period of time due to better facilities and services provided to their

customers. The Implant training for a period of two months at AXIS BANK -

Ambernath Branch has proved to be very informative, useful and effective. The main

objective of this training programme was to observe and understand the actual branch

banking activities and working of an Organization from a Management point of view

and also to mutually benefit from the training. The training programme helped to

acquire the necessary management skills required. This training programme was

successfully completed with the support and guidance of the AXIS Bank’s Branch

head and other staff members. The customer survey in the study helped to know the

customer centricity approach and customer orientation of the AXIS bank towards its

customers. This study finds that however Axis Bank is not the major player in private

sector bank but its vast range of products and availability of options make it one of the

better leading banks in India and has a great potential to become a major player in the

private sector banks.

Limitations

Every research has its own constraints which keep limitations to work, similarly this

research has also limitations due to which the researcher could not get detailed information

regarding project. These are: -

The concept of Branch Banking being a very broad one, it was impossible to cover all

the facets of this subject.

Thus, it was difficult to do a detailed study on this subject.

To reduce the complexities in differentiating the various large number of products of

both the banks, only the Savings and Current Account were taken into consideration

for comparative study.

Due to different types in the savings and current account of both banks, only the

Normal/regular Savings and current account were compared.

Due to the limitation of time I was unable to cover more sample (data collection) and

to fridge the lead granted.

The views of the surveyed sample are considered as the views of the whole

population.

So, the data available for study is appropriate to the extent of the limited sample size

only.

Scope of the Study

The research study has a wide scope for the trainee, the bank and for the customers to

arrive upon certain conclusions.

a. For a trainee:

The research has provided the practical knowledge to the trainee regarding the

organization working, survey and other aspect of banking.

This research is also essential for a trainee in fulfillment of MBA curriculum

b. To the bank:

Research would help the bank to know the perception and satisfaction level of its

customers.

Research would help the bank to get the lead of potential customers.

The comparative analysis would help the bank to frame some strategies.

The suggestions provided in the research will be helpful for improvement of class and

quality of service to new and current customers and also help to enhance the

activities.

c. To the customer:

The comparative study would help the customers to decide which bank to invest their

hard earned money.

The research will become a medium to convey the dissatisfaction factor to the

appropriate person in the management.