financial institute and services on “bank of broda vs. axis bank”

8/8/2019 FINANCIAL INSTITUTE AND SERVICES ON Bank of Broda Vs. Axis Bank

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ASSIGHNMENT 4

TH

OF

FINANCIAL INSTITUTE AND SERVICES

ON

Bank of Broda Vs. Axis Bank

VS.

Submitted To:- Submitted By:-

Lect. Richa Singh RR1902

MBA-LSB

Introduction about Axis Bank


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Customer Analysis

STP ANALYSIS

Segmentation ( S )

Demographics variables Location

Metros & divisional cities Occupation

Business persons Salaried class (both Govt. and private) Working woman

Age

Senior citizens Minor Psychographic variables

Lifestyle The people who believes in modern banking with higher set of services i.e.

Internet banking (icontact, mobile refill, travel currency card etc.)

Targeting strategy ( T )

Corporate banking market: This market target the industries and fulfil their financialneeds.

Capital market: This segment is targeted on the long term needs of the individual aswell as of industries

Retail banking market: This segment is for the retail investor and provide them shortterm financial credit for their personal, household needs.

Positioning strategy ( P )


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Axis bank has positioned itself as a bank which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want tohighlight following points in their positioning statement: Customer centric Service oriented

Product innovationAttracting Customers With email id

Axis Bank Customer Care E Mail ID for General PurposeAxis bank customers can write and seek clarifications related to Credit Card, Fixed Deposits,

Status of Cheques received, and many such types of routine aspects. As one can make from theMail ID, it is basically for general purpose Customer Service related topics or issues.

Axis Bank Customer Care E Mail ID for Mobile Banking Related MattersAxis bank has another facility called Mobile Banking. The details of its features and how to

operate them are available in another article in this section. If you are a mobile banking customerof Axis bank, and in case you are facing any problem in conducting the transactions through

your mobile, or if you find any discrepancy in your mobile banking transactions, then you cansend a mail to them with clear details of the issue at the Axis Bank Mobile Banking Mail ID

Axis Bank Customer Care E Mail ID for NRI CustomersAxis bank attaches lot of importance to its NRI customers which can be seen from the fact

that they have dedicated Customer Care Contact Numbers for NRIs. In addition to that they havea E Mail ID exclusively for the NRI Customers to contact them. If you are an NRI Customer ofAxis Bank, you can write in complete detail about the information you need, or the queries youhave / problems that you want Axis bank Customer Care to solve etc

Axis Bank Customer Care E Mail ID for Investor RelationsAxis bank is promoted by Four Major Organizations namely Unit Trust of India, LifeInsurance Corporation of India, General Insurance Corporation Ltd., and National InsuranceCompany Ltd. In addition to the above there are a couple of institutional investors who haveinvested on this bank. Apart from that Axis Bank is a publicly traded bank. In other words, theshares of Axis bank are openly sold in the stock markets. Hence there will also be commonpublic who would be holding such shares of Axis bank.

Axis Banks Mobile Commerce Ventures

Axis Bank the third largest private sector bank in India today announced the selection of

ngpay, Indias largest mall on mobile as one of their technology partners to offer mobilecommerce services to their customers. Axis Bank customers will be able to avail of mobile banking services like Balance Enquiry, Mini Statement, Funds Transfer, Manage and ViewAccounts etc through the ngpay platform.

In the case of mobile commerce, Axis bank customers will have the privilege of transacting onngpay using Axis Bank Direct debit facilities from their account.

With 7 lakh plus ngpay users in India and growing everyday theres no doubt purchasingpatterns are changing and mobile commerce will change consumer lives significantly.


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To customer facility Axis Bank removes home loan pre-payment penalty

Home loan customers of Axis Bank have a good news after the bank has decided not to charge

pre-payment penalties to its home loans even when customers shift a loan to a competing bank.

Citing 'cost of money' as a reason many lenders have imposed pre-payment penalties when any

of their customers seeks to refinance a home loan through fresh loans at lower rates.

Axis Bank achieves target of $1 billion travel cards

Leading private sector bank Axis Banks Travel Currency CardProgram which also included

a tie up with Visa has reached a volume of $ 1 billion. It is the 1st card in India to reach this

target. The card offers the convenience of stacking money in local currency for both business

and common travellers which can be used in prepaid type for paying expenses on the tour.

Product Offered

Acconts

EasyAccess Savings Account Krishi Savings Account Prime Savings Account Corporate Salary Account Priority Account - Resident Women's Savings Account Demat Account Senior Citizen's Account Azaadi - No Frills Pension Savings Account Power Salute Trust/NGO Savings Account

Deposits

Fixed Deposit Encash 24 Recurring Deposit Tax Saver Fixed Deposit

Loans

Car Loan Home Loan Loan Against Shares Personal Loan Loan Against Security


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Consumer Loan Education Loan Loan Against Property

Insurnce

Safe Guard Business Advantage Safe Home Family Health Silver Health Safe Home Plus Travel Companion Critical Illness Jewellery Insurance

Motor Insurance

Services Offering

Payments

Bill Pay Tax e-Payments Direct Tax Payments Pension Disbursement Outward Remittance Electronic Clearing Service Visa Money Transfer

Others

Online Shopping IPOSmart Prepaid Mobile Recharge Lockers E-Statement

The Bank of Baroda

It has been a long and eventful journey of almost a century across 26 countries. Starting in1908 from a small building in Baroda to its new hi-rise and hi-tech Baroda Corporate Centre in


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Mumbai, is a saga of vision, enterprise, financial prudence and corporate governance.It is a story scripted in corporate wisdom and social pride. It is a story crafted in private

capital, princely patronage and state ownership. It is a story of ordinary bankers and theirextraordinary contribution in the ascent of Bank of Baroda to the formidable heights of corporateglory. It is a story that needs to be shared with all those millions of people - customers,

stakeholders, employees & the public at large - who in ample measure, have contributed to themaking of an institution.New logo is a unique representation of a universal symbol. It comprises dual B letterforms

that hold the rays of the rising sun. We call this the Baroda Sun.The sun is an excellent representation of what our bank stands for. It is the single most

powerful source of light and energy its far reaching rays dispel darkness to illuminateeverything they touch. At Bank of Baroda, we seek to be the source that will help all ourstakeholders realise their goals. To our customers, we seek to be a one-stop, reliable partner whowill help them address different financial needs. To our employees, we offer rewarding careersand to our investors and business partners, maximum return on their investment.

The single-colour, compelling vermillion palette has been carefully chosen, for its

distinctivenes as it stands for hope and energy.We also recognize that our bank is characterised by diversity. Our network of branches spansgeographical and cultural boundaries and rural-urban divides. Our customers come from a widespectrum of industries and backgrounds. The Baroda Sun is a fitting face for our brand because itis a universal symbol of dynamism and optimism it is meaningful for our many audiences andeasily decoded by all.

Our new corporate brand identity is much more than a cosmetic change. It is a signal that werecognize and are prepared for new business paradigms in a globalised world. At the same time,we will always stay in touch with our heritage and enduring relationships on which our bank isfounded. By adopting a symbol as simple and powerful as the Baroda Sun, we hope tocommunicate both.Mission statement

To be a top ranking National Bank of International Standards committed to augmenting stakeholders' value through concern, care and competence.

1.Profitability


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Customers Analysis

Treating Customers Fairly

At Bank of Baroda, we are committed to offering our Customers the highest possible

standards of service. In doing so, we are pleased to support the Financial Services Authority

initiative Treating Customers Fairly. We recognise that both we and our Customers have

everything to gain if we look after your best interests and treat you fairly in all aspects of our

dealings with you.

Serving 36 million customers around the world


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It has been a long and eventful journey of almost a century across 25 countries,there is a groupof nearly a hundred business and community leaders. Starting in 1908 from a small building inBaroda to its new hi-rise and hi-tech Baroda Corporate Centre in Mumbai, it is a saga of vision,enterprise, financial prudence and corporate governance.Today, it serves 36 million customersaround the world with nearly 20 percent of them, coming from its international operations.

Today it has transformed into India's International Bank. Garg said, "It has significantinternational presence with a network of 76 offices in 25 countries including 48 branches/officesof the Bank, 25 branches of its 7 subsidiaries and 3 representative offices in Malaysia, Thailand& Australia. The Bank also has a joint venture in Zambia with 11 branches.

Target customers-- Bottom-of Pyramid CustomersBank of baroda now looking at 25% growth and hence, they will follow a diversified

approach. they will target customers at the bottom of the pyramid and also bringing generation-next under the banking umbrella. They have opened six Gen-Next branches at important IT hubsand software parks. These branches will target young customers who have disposable incomeand help them choose various investment options from the bank.Technique to satisfy the customers

Bank of Baroda chose Sybase 365 not only because of their unrivalled global SMS footprintbut also because of their ability to provide a secure, user-friendly, and cost-efficient applicationplatform upon which to roll out new mobile services to our customers locally, as well as thoseresiding overseas.Business Advantage

y Baroda Loan service, via SMS, provides customer convenience without the need to dial acall center, go through a tedious interactive voice response system, or make a physicaltrip to the bank for information.

Key Benefitsy Provides reliable tool for real-time delivery of mobile enquiry services via any hostoperatory Supplies an easy and convenient method for reaching large customer basey Ensures timeless and seamless message delivery regardless of operator

3.Product Offering

Wholesale Banking

SME Banking

Retail Banking

Rural/Agri Banking

Wealth Management

Demat

Deposit Products

Loan Products

ATM / Debit Cards

Internet Banking

NRI Remittances

Baroda Health


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Product Enquiry

Interest Rates

Deposits

Irrespective of whether your needs are short term or for longer periods, Bank ofBaroda enables you to maximise your savings and can offer good return on investment through

its Deposit plans.

Fixed deposit Short term (Under 12 months) Curent deposit

Loan and advances Working capital finance Term finance Small scale indusries loan SME loan Pack Small business borrowers Treders loans

Services offered

Remittence ( baroda money express) Collection services Electronic clearing services Debit card Loacker facility Other product and services

1 Gen-Next Junior (Saving Account)

Product Naturey This is a Special kind of Savings Bank Deposit product for children to be made available

in Gen-Next Pune branch.

Target Groupy Children upto 18 years of age.

Minimum Amount & Balancey QAB: Rs 500/-y Charges for non-maintenance ofQAB is Rs 50/ per quarter only.

Maximum Amounty In case of joint accounts with parent and minors (with sole account) above 14 years, there

is no ceiling on the maximum amount.y An account in the sole name of minor above 10 years and below 14 years, maximum

limit is Rs 1 lakh.

Single / Joint Accounts


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y In case of minor below 10 years the account shall be opened jointly with parents /guardian.

y Minors above 10 years (below 18 years) can open the account in their sole name subjectto :Minor is able to read and write any of the recognized languages, and

yCapable in the opinion of the Bank officials of understanding the what he / she is doingand SB account rules and regulations.

2 Gen-Next Lifestyle

Type Of Facilityy Term Loan (Combo Pack)

Purposey Purchase of Home Furnishings / Consumer Durable goods (includes color T.V., video

camera / refrigerator / washing machine / music system / air-conditioners / cookingsystem etc).

yPurchase of vehicle i.e. two-wheeler / four-wheeler.

y Purchase of Laptop / PC.y Purchase of any new electronic gadgets like Mobile, i-Pod, Handycam etc.

Target Groupy Working executives / professionals.

Eligibilityy Should be an Indian Nationaly Permanent Employees of State / Central Government, Public Sector Undertakings, Semi

government Organization, State / Central Govt. Corporations, Urban DevelopmentAuthorities, Educational Institutions, Universities. RegularEmployees of MNCs, PublicLtd Companies with minimum two years experience out of which minimum one yearservice with the present organization.

y Employees of Private Limited Companies, Regional head will permit on case-to-casebasis.

Present gross annual emoluments / income of the applicant should not be less than Rs. 2.50

lacs.Age

y Minimum 21 yearsy Maximum 45 years

Maximum Loan AmountSubject to maximum of:

y Furniture & Fixture / New Consumer Durables : Rs. 2 lacsy New Vehicle (FourWheeler) : Rs. 6 lacs (Two Wheeler) : Rs. 1 lacy Old FourWheeler (Not more than 3 years old) : Rs. 4 lacsy New modern gadget/s : Rs. 1 lac

Aggregate loan amount should not be more than Rs. 8.00 lacs.Subject to:

y 24 times gross Monthly income.y Total deductions including EMI of proposed loan should not exceed 60% of the gross

income.


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Marginy Furniture & Fixture / New Consumer Durables : 20%y New Vehicle (Two wheeler / Four wheeler) : 15%y Old Vehicle (Four wheeler only) : 40%y New Modern Gadgets (Including Laptop / PC) : 20%

3 Gen-Next Power (OD Facility)

Product Naturey This is a special Savings Deposit product having an in built feature of overdraft

facility to be available at Gen-Next Pune branch.Target Group

y The product is targeted to working executives and other working professionals.Our Banks Staff members are not eligible to avail the product.

Minimum Amount & Balancey There is no minimum balance requirement in the account and as such no service

charges shall be levied towards this.Maximum Amounty There shall be no ceiling on the amount to be deposited and credit balance in the

account.

Eligibility Criteriay Permanent Employees of State / Central Government, Public Sector Undertakings,

Semi government Organization, State / Central Govt. Corporations, UrbanDevelopment Authorities, Educational Institutions, Universities. RegularEmployees of MNCs, Public Ltd Companies with minimum two years experienceout of which minimum one year service with the present organization.

y Employees of Private Limited Companies, Regional head will permit on case-to-case basis.

y Minimum age of 21 years.y Minimum take home Salary should not be less than Rs. 10,000/-.y Maintaining satisfactorily conducted salary account with the Bank at least for three

months.

Special FeatureThe branch SHALL offer Overdraft facility (Clean/unsecured) to employees who fulfill

the eligibility criteria mentioned above to meet out their regular short-term personal /family needs.

4 Gen-Next Suvidha

Product Naturey This is a Recurring Deposit product enabling the customer to make regular savings

on monthly basis and earn higher interest.

Customer Segmenty Individuals in their single / joint names.y Minors of age 10 years and above jointly with their parents / natural guardians.y Minors below 10 years age through their parents.


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Minimum / Maximum Amounty There is no minimum balance requirement in the account and as such no service

charges shall be levied towards this.Maximum Amount

y Gen-next Suvidha Account can be opened with monthly installments of Rs.100/-or above & in multiples thereof with a maximum of Rs.10, 000/- per month.

y The number of installments can range from 12 to 36 months (In multiples of 3months).

y The depositor shall, at the time of opening the account, stipulate the amount of coremonthly installment and the number of installments payable by him which shall notsubsequently alter.

y The depositor is given an option to deposit higher monthly installment in theaccount as and when available and the maximum amount should not exceed Rs.10,000/- per month. However, monthly installments paid during the time gap of lessthan 24/12 months (depending upon the period chosen) at the ending stage of theaccounts tenure, shall not exceed in any month three times the core monthly

installment or Rs. 10,000/- whichever is less.

ANLYSIS OF COMPARISON OF BOTH BANKS

1.ON PROFIT BASES

The profit after tax of axis bank in 2006 was 486 crore rupees and went to very high in 2009to 2500 crore rupees where as The Bank of Baroda more than axis bank about 3000 crore in2009.

In profitability it can be said that the Bank of Baroda is very effective then Axis Bank.

2.ON CUSTOMER BASES

On the customer basis it can be said that Axis bank have less cusomers than baroda bank.Baroda bank has near about 36 million all over the world. The axia bank using very muchstrtegies to attract the customers but not be a high profitable like bank of baroda.

Bank of baroda has new strategy tha it has targeting thr Bottom Of Pyramid people. These arethose people who are very poor.

3. PRODUCT OFFERING BASES

If we look at the product offring by the both banks tha axix bank has more produts for thecustomers. The loan and advances which are offring by the bank of baroda, mosly are in natureof industrial or small business units,

4.SERVICE BASED


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If we talk about the service providing by the Axis bank then its providing more servise to thecustomers,,,more services like mobile recharge, pension disbursement..etc,,but the bank ofbaroda does not providing these type of services to its customers. Its service mailnly are Gen textjunior, its service provide t the chlidern..and beside this service 3 more of this type are providingto its customers, like Gen textsuvidha alike the deposit accout, which provide the monthly basis

nad genralyy providing the high rateof intereston that service..

ConlusionIt is conluded that whether the service and products areofferdby the AXIS BANKmore the

profits of the bank of baroda are more then the axis bank . it may be possible that in future theaxis bank would earn more profits because it is expanid their business with product and servicesto its valuable customers.

Bibliographyhttp://www.axisbank.com/aboutus/codeofbankscommitment/Code-of-Banks-Commitment.asphttp://www.axisbank.com/personal/index.asp

http://www.axisbank.com/aboutus/aboutaxisbank/About-Axis-Bank.asp

http://telecomtalk.info/ngpay-to-power-axis-banks-mobile-commerce-ventures/25969/http://www.siliconindia.com/shownews/Axis_Bank_removes_home_loan_prepayment_penalt

y-nid-63963.htmlhttp://www.financialexpress.com/news/axis-bank-reduces-rates-of-home-loans/225387/

http://money.sulekha.com/axis-bank-achieves-target-of-1-billion-travel-

cards_08_2010_postedby_bankbazaarhttp://www.finance.pushpi.com/axis-bank-customer-care-through-email.htmhttp://www.business-standard.com/india/news/indiafirst-life-launches-otc-

salepolicies/116564/onhttp://www.nritoday.net/money-business/166-aug-09-bank-of-baroda-serving-36-million-

customershttp://economictimes.indiatimes.com/opinion/interviews/BoB-to-target-bottom-of-pyramid-

customers-Gen-next-Chairman/articleshow/5805374.cmshttp://m.sybase.com/detail?id=1063185https://www.bankofbarodauk.com/treating-customers-fairly/

http://www.bankofbaroda.com/pfs/gen_next.asphttp://www.bankofbaroda.com/bbs/index.asp

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