sf project
TRANSCRIPT
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Axis bankAxis bank
Reinventing bankingReinventing banking
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Indian Banking System
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History of Banking of India
The first bank in India was establishedin India in 1786.
The journey of Indian Banking can besegregated into 3 phases.
Phase 1 Phase 2 Phase 3
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Phase 1 1786-The general Bank of India.
1865-Allahabad bank was established
1906-1913-Central Bank of India, Bankof Baroda, Bank of India wasestablished.
1935- Reserve Bank of India came up.
Banks faced experienced periodicfailures between 1913 and 1948.
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Phase 2 In 1955, it nationalised Imperial Bank of India
with extensive banking facilities on a largescale specially in rural and semi-urban areas.
7 Banks formed subsidiary of State Bank ofIndia were nationalised.
14 major commercial banks in the country wasnationalised.
The branches of the public sector bank Indiarose to approximately 800% in deposits andadvances took a huge jump by 11,000%.
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Phase 3 This phase has introduced many more
products and facilities in the banking sectorin its reforms measure.
In 1991, under the chairmanship of MNarasimha, committee was set up by hisname which worked for the liberalisation ofbanking practices.
Phone banking and net banking wasintroduced.
Time was given more importance thanmoney.
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Emergence of Private Banks
Private banking in India was practiced since thebeginning of banking system in India.
The first Private Bank in India to receive an inprinciple approval from the Reserve Bank of India wasHousing Development Finance Corporation Limited.
It was incorporated in August 1994 as HDFC Bank
Limited with registered office in Mumbai andcommenced operations as Scheduled CommercialBank in January 1995.
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UTI BANK
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Introduction
Axis Bank (Formerly known as UTI) was oneof the few private banks to have beganoperations in 1994
The Bank was promoted jointly by theAdministrator of the specified undertaking ofthe 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.
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Journey FromUTI to AXIS
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1994-1997
Incorporated as UTI Bank,headquartered in Mumbai
First Branch inaugurated atAhmedabad
Completes first profitable year inoperation in 1995
Deposit crosses Rs.10bn mark in1996
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1998-2000
Successfully completes its IPO in 1998 andgets itself listed on NSE and BSE
Cash management services as well as credit
card launched Profit crosses Rs.500m in 2000
Launches Internet banking module, iConnectretail loans introduced
Financial advisory services and e-commerceintroduced
Second largest ATM network in the countrywith 200 ATMs
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2001-2005
Private placement of 26% stake to CDCCapital Partners
Deposit crosses Rs.100bn mark in 2001,advances crosses Rs.50bn
First commercial bank to open an ATMat a post office
Crosses the 1,000 ATM mark in 2003
Gets listed on the London StockExchange, raises $239.3m
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2006-2008
Opens its first international branch inSingapore
Opens Representative Office in Shanghai
Crosses the 2,000 ATM mark in 2006
Opens a Full Licence Bank Branch inHong Kong
Re-brands itself as Axis Bank
Mumbai, Jul 30 2007 : UTI Bank onMonday rechristened itself as Axis Bank.
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PROBLEM
WHY THEY CHANGE THEIR NAMEFROM UTI TO AXIS BANK??
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THERE ARE 3 MAIN REASONS
1. They had to give up the UTI name afterusing it for 13 years as we were notprepared to accept terms and conditions(including royalty) from UTI AMC
The decision to rebrand itself was taken bythe bank as it was allowed to use the 'UTI'brand name for free till January 31, 2008,beyond which it had to pay royalty forusing the name.
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2. The recommendation for name change to
Axis Bank has arisen from the existence ofseveral shareholder-unrelated entities usingthe UTI brand, and the consequent brandconfusion that this generates.
3. The name UTI bank was changed to AXISbank as UTI gave a look of governmentsector bank. They had to change our nameto have our own brand and identity.
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The new name AXIS
The new name was chosen consideringthe banks pan-Indian as well asinternational presence.
The first time that a bank has droppedan established brand for an unknownname.
The name Axis is chosen as it is simple
and it conveys a sense of solidity and asense of maturity. It also has auniversal appeal.
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Mission
Customer Service and ProductInnovation tuned to diverse needs ofindividual and corporate clientele.
Continuous technology up gradationwhile maintaining human values.
Progressive globalization and
achieving international standards. Efficiency and effectiveness built on
ethical practices.
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Core Values of Axis
Customer Satisfaction through
Providing quality service effectively andefficiently
"Smile, it enhances your face value" is a servicequality stressed on
Periodic Customer Service Audits
Maximizations of Stakeholder value
Success through Teamwork, Integrity andPeople
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Retail, corporate, treasury and merchantbanking.
Apart from this the bank is also into insurance,investment banking, mortgage financing, creditcards, and depository services amongst others.
It is also registered on the following exchanges: OTCEI
BSE NSE London stock exchange
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Services
Retail banking
Deposits schemes
Loans and advances
Personal loans Housing loans
Cards
Consumer durables
Auto loans
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Personal banking
Accounts
Term deposit
Fixed deposit Recurring deposit
Cards Different variant like: Gold plus card, Gold card,
Silver & silver plus cards.
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Corporate banking
Accounts
Normal Current Account
Trust/NGO Savings Account Services
Private Equity, Mergers & Acquisitions
Advisory Services
Capital Market Funding
E-Broking
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RECENT DEVELOPMENTS
Shikha Sharma was named as the bank'smanaging director and CEO on 20 April 2009.
As on the year ended March 31, 2009 the Bankhad a net profit of Rs 1,815.36crores
The bank now has 835 branches including
extension networks across 30 States and 4 UnionTerritories.
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The bank also has overseas offices inSingapore, China, Hong Kong and Dubai.
Crosses the 3,723 ATM mark in 2009
Launches Platinum Credit Card, India's
first EMV chip based card
Axis Bank is now trading at Rs 911.85(17th sep).
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MARKETINGOBJECTIVES
Axis Bank wanttoachieve following marketing
objectives bythe endofthe 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.
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SWOTANALYSIS OFAXIS BANK
STRENGTHS:
Brand Name
Support of various promoters.
High level of services.
Knowledge of Indian market.
WEAKNESS:
Not having good image.
Market capitalization is very low.
Not been fully able to position itselfcorrectly.
OPPORTUNITIES:
Growing Indian banking sectors.
People are becoming more serviceoriented.
In the global market.
Dissatisfied Customers.
Business advising for smaller Players
THREATS:
Advent of MNC banks
Foreign banks
Govt. banks
Future market trends.
SWOT
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PESTLEANALYSIS OFAXIS BANK
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AXIS BANKFIVEFORCEMODEL
NEW ENTRYYes bank
Deutsche Bank
IndianOverseas Bank
VijayaBank
AXIS
BANK
BUYINGPOWER
OF
CUSTOMER
THREATOF
SUPPLIERS
(RBI)
THREAT OFSUBSTITUTES(SHAREHOLDER OFCAPITAL MARKET)
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STRATEGIES
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Core Competence Strategy
Forthe private sectorbanks:
Differentiationonthe basis ofarea coverage.
RestrictedReach.
Levelof service is the same.
Axis gotadvantage because ofProductInnovation.
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Core Competence Strategy
Forthe government sectorbanks
High levelof service quality andthrough
product innovation.
AXIS notany where near, but has createdadifferent setof segment.
People whobelieve inthe higher setofservices
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Core Competence Strategy
Forthe InternationalBanks :
Differentiated itselfonthe base ofthe reachand coverage tothe people.
Service level is somewhat same.
Inthe future these banks may create aproblem.
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STPANALYSIS
Segmentation strategy Demographics variables
Location Metros & divisional cities
Occupation Business persons
Salaried class (both Govt. andprivate)
Working woman
Age Senior citizens
Minor
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Targeting strategy
Target market
Corporate bankingmarket: This markettargettheindustries and fulfiltheir financialneeds.
Capitalmarket: This segment is targetedonthe long
term needs ofthe individualas wellas of industries
Retail bankingmarket: This segment is forthe retail
investorandprovide them shortterm financial credit
fortheirpersonal, householdneeds.
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Targeting strategy
Selective specialization strategy
Here the bank selected a number of segments, each
objectively attractive & appropriate. There may be little
orlow synergy among the segment but each segmentproves to be worth full for it.
If we take the example of cards then Axis bank have
separate set of credit cards, each targeted at differentset of people i.e. segment and each one has its own
importance forthe bank.
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Positioning strategy
Axis bank has positioned itselfas a bank which
gives higher standard of services through
product innovation for the diverse need ofindividual & corporate clients. So they want to
highlight following points in their positioning
statement:
Customer centric
Service oriented
Product innovation
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How their strategy changed after
rebranding:
Earlier they were only customer
centric
Now they have added Service centricand product innovation into theirstrategy.
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StrategicTie-ups
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Tie- upwith Banque Privee Edmondde Rothschild Europe:
Axis Bank and Banque Privee Edmond deRothschild Europe have signed an agreement onSeptember 19, 2007 in Luxembourg.
Agreement enabled both organisations to worktogether and provide Wealth Managementsolutions to overseas Indians.
The tie-up will also enable Axis Bank to offerinvestment opportunities in global financial
products for overseas Indians and will offer thejoint products through its branches in Hong Kong,Singapore and Dubai.
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Tie-ups with various Govt.Departments:
Govt. Departments:
DGFT ePayments
MCD - Municipal Tax or Fees ePayments MCD - eTendering Project
Sampark - Utility Bill ePayments
Bangalore One Project - Utility Bill ePayments
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Growth Prospects of Axis
Over the last five years, the CAGR for loan growth for thebanking industry has been 25-26 per cent; for Axis Bank ithas been above 40 per cent.
Nonetheless, the bank is still expected to grow its loan
portfolio at 1.5-1.7x the industry average. In FY09 its advances grew at the rate of 37.5 per cent.
In FY10 they are expected to grow at the rate of 27-28 percent and in FY11 at 25 per cent.
For the banking industry as a whole, the loan book is
expected to grow at 18 per cent in FY10 and 16 per cent inFY11.
Thus, Axis Banks fast pace of growth is expected to sustainover the next couple of years.
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Conclusion !!!!
AXIS bank has differentiated itself very well on thebasis of high level service and product quality.
They have successfully implemented the change anddue to this their market share has increased onlydespite of tough competition prevails.
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Thank you..