A PROJECT REPORT

On

RETAIL BANKING

Undertaken at

AXIS BANK

LUDHIANA

Submitted in the partial fulfilment of the requirement for the award

Of the degree of MASTERS OF COMMERCE

SUPERVISED BY: SUBMITTED BY:

Mrs Deepak walia Amanpreet kaur

(assistant professor M.com 2nd sem

of GGN khalsa college) Roll no:

GUJRAWALA GURU NANAK KHALSA COLLEGE CIVIL LINES,

LUDHIANA
 PUNJAB UNIVERSITY, CHANDIGARH

LUDHIANA-141001

DECLARATION

I hereby declare that the project titles, “RETAIL BANKING” is the original work
done by me during the june-july 2018under the guidance of mrs Deepak walia .
Department of commerce, Punjab University. I thankful to management of AXIS
BANK Ludhiana giving me this golden opportunity. I give my assurance that all the
information complied in this report has been collected by me &is true to best of my
knowledge. I shall be used solely for academic purpose only. I have put all my best
efforts to make a project success.

Place : Ludhiana

Amanpreet kaur

Rollno:
 ACKNOWLEDGEMENT

It gives me immense pleasure to acknowledge all those who have

given me things, time and energy to supply all valuables facts and opinions that had
helped me in bringing out this project to fruition.

I am very much grateful to my project guide of Mrs. Deepak walia

reader, department of commerce, Punjab University, for her guidance and moral
support rendered during the project period. She has been one of the pillars in my
research and has made her available at odd hours of the day.

I am also grateful Mr. karan gupta for his guidance and consent
support for giving me industry exposure. Most importantly I am grateful, for giving
persona; insight and his valuable time in completion of this project.

I take this opportunity to express my gratitude and indebtedness to

Mrs. Deepak walia , Punjab university for this support.

I also express my gratitude to my parents, friends and above all the

grace of the almighty for helping me to accomplish my project.
 EXECUITVE SUMMARY

RETAIL BANKING in India has fast emerged as one of the major drivers of the
overall banking industry and has witnessed enormous growth in the recent past. The
Retail Banking Report encompasses extensive study & analysis of this rapidly
growing sector. It primarily covers analysis of the present status, current trends, major
issues & challenges in the growth of the retail banking sector. This report helps in
Banks, financial institutions, MNC Banks, academicians, consultants and researchers
to have a better understanding of the booming opportunities in retail banking in India.
 CONTENT

CHAPTER PARTICULARS PAGE NO

1 Introduction 1
2 Company profile-AXIS BANK
3 Research methodology
4 Conceptual framwork of retail
banking
5 Different products of retail
banking
6 Suggestions
7 Conclusion
8 Bibliography
CHAPTER – 1
1.1 Introduction

One of the spectacular innovations in the commercial banking sector is the retail
banking. It refers to banking in which banks undergo transactions directly with
consumers rather than with corporates or other banks. Consumer credit is the heart
of retail banking. In retail banking the banks provide services to individuals and small
business concerns and the dealings are in large volumes and low values. The retail
banking portfolio encompasses deposits and assets linked products as well as other
financial services offered to individuals for personal consumption. Retail banking is
increasingly viewed by banks as an attractive market segment with opportunities for
growth and profit. The fastest growing division in the banking sector is the retail
sector. Retail banking is a system of providing soft loans to the general public like
family loans, house loans, personal loans, loans against property, car loans, auto loans
etc. The products are backed by world-class service standards and delivered to the
customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking. Today’s
retail banking sector is characterised by three basic
Features:
- Multiple products-deposits, credit cards, insurance, investment and securities
- Multiple channels of distribution- call centre, branch, internet
- Multiple customer groups- consumer, small business and corporate3

1.2 Retail Banking

Retail banking, also known as consumer banking, is the provision of services by

a bank to the general public rather than to companies, corporations or other banks,
which are often described as wholesale banking. Banking services which are
regarded as retail include provision of savings and transactional
accounts, mortgages, personal loans, debit cards, and credit cards. Retail banking
 is also distinguished from investment banking or commercial banking. It may also
refer to a division or department of a bank which deals with individual customers.

In the U.S., the term commercial bank is used for a normal bank to distinguish it
from an investment bank. After the Great Depression, the Glass–Steagall
Act required normal banks to only engage in banking activities, while investment
banks were limited to capital market activities. This distinction was repealed in the
1990s. Commercial bank can also refer to a bank or a division of a bank that
mostly deals with deposits and loans from corporations or large businesses, as
opposed to individual members of the public (retail banking).

1.2.1 Features of retail banking

Retail banking refers to the dealing of commercial banks with individual consumers,
both the liabilities and the asset side of the balance sheet.4 The important products
offered by banks in retail banking are fixed, current/ savings account on liabilities
side; and personal loans, house loans, auto loans and educational loans on the asset
side. Today’s retail banking sector is characterised by the following:
features:
 Retail banking aims at doing banking business in large volume of transactions
involving low value.
 The retail banking portfolio includes deposits and assets linked products as
well as other financial services provided to individuals for person consumption.
 Retail banking business is an attractive market segment with opportunities for
growth and profits.
 It provides an opportunity to banks to diversify their asset portfolio. Since
loans are given to a large number of consumers and transactions have very low
value, the risk of NPA is reduced because all the consumers do not make
default in making loan repayment at a time.
 Retail banking is based on the maxim “do not keep all the eggs in one
basket” Retail banking industry is diverse and competitive. There is a large
 number of retail banking products that are extremely customer-friendly and are
offered by many banks. Banks adopt multiple channels of distribution of retail
banking products. The
 channels include call centre, branch, internet, mobile phones, ATMs etc.

1.2.2 Advantages of retail banking

Retail banking is mass market banking, where individual consumer’s diverse needs
are fulfilled at the local level i.e. by providing multiple products. It has been
facilitated by growth of banking technology and automation of banking process Retail
banking has the following advantages:
 Retail deposits are stable and constitute core deposits.
 They are interest insensitive and less bargaining for additional interest.
 Effective customer relationship management with retail customers builds a
strong customer base.
 Retail banking increases the subsidiary business of banks.
 Retail banking results in better yield and improved bottom line for bank Retail
segment is a good avenue for funds deployment.
 Consumer loans are presumed to be of lower risk and NPA perception.
 Improves lifestyle and fulfils aspirations of people through affordable credit.
 Retail banking provides an opportunity for banks to innovate banking products
as per the expectations of various classes of customers.
 Retail banking involves minimum marketing efforts in a demand-driven
economy.
 Diversified portfolio due to huge customer base enables banks to reduce their
dependence on a few or single borrower.
 Banks can earn good profits by providing non-fund based or fee based services
without deploying their funds.
 Credit risk tends to be well diversified as loan amounts are relatively small.
1.2.3 Disadvantages of retail banking

 There can be problems in managing large number of clients, especially if IT

systems are not sufficiently robust.
 The cost of maintaining branch networks and handling large number of low
value transactions tend to be relatively high.
 Designing own and new financial products is very costly and time consuming
for the bank.
 Though banks are investing heavily in technology, they are not able to exploit
it to the maximum.
 Major disadvantages are monitoring and follow-up of huge volume of loan
accounts inducing banks to spend heavily on the human resource department.
 Long term loans like housing loan, due to its long repayment term, can become
NPA in the absence of proper follow-up.

1.2.4 Retail banking in India

In the post-independence era the evolution and growth of banking sector has gone
through innumerable twists and turns. In India banks are nationalised with the main
objective of reaching out to the unbanked masses and so retail banking is important in
India to provide banking services to unbanked masses. Retail banking in India is not a
new phenomenon. It has always been prevalent in India in various forms ever since
banking was first established here. Cooperative banks that have been in existence in
India for over a century have always had retail thrust. It is only since the mid-nineties
that the term “retail banking” has been used as a means of reinforcing a conscious
foray into this particular line of business. For the last few years it has become
synonymous with mainstream banking for many banks.7 The typical products offered
in the Indian retail banking segment are housing loans, consumption loans for
purchase of durables, auto loans, credit cards and educational loans. These loans are
marketed under attractive brand names to differentiate the products offered by
different banks. Unlike wholesale banking, retail banking has high sized business with
many banks competing for market share. Retail banks focus mainly on consumer
markets. Here the transactions of the banks are directly with consumers and not with
corporations or other banks. It refers to the dealing of commercial banks with
individual customers, both on liabilities and assets side of the balance sheet. Although
retail banking is, for the most part, mass-market determined, many retail banking
products may also extend to small and medium sized business. Nowadays much of
retail banking is streamlined electronically via ATMs, or through virtual retail banking
known as online banking.

1.2.5 Drivers of retail banking in India

The growth in banking technology and automation of the banking process facilitated
retail banking. The rapid growth and spread of retail banking is due to the
technological development. The nature of products offered in retail banking is also
expanded. In a growing economy like India retail banking has vast opportunities and
challenges.
The basic reasons for which Indian banks have diversified into retail banking
are the following:
 The retail banking products are customer oriented. Transactions with small
value may be cost ineffective in a highly competitive environment. But retail
banking eliminates market risk.
 In India the demand for consumer durables has increased owing to the
economic growth and prosperity and the consequent increase in the purchasing
power of the people. Major portion of the household sector in India is middle
class people. There is continuous rise in the percentage of middle and the high
income households in India. Indian retail banking is facilitated by improved
purchasing power of consumers and liberal attitude towards personal debt.
 India has the highest proportion of the population below 35 years of age
(young population). This is a positive factor for the growth of retail banking in
India. Changing consumer demographic indicates a vast potential for growth in
consumption, both quantitatively and qualitatively.
  Another important factor which facilitated the growth and development of
retail banking is the development of technology. Technological innovations
relating to increasing use of credit/debit cards, ATMs, internet and phone
banking etc. are attracting many new customers to the banking field.
 The lower levels of NPA in retail lending and decrease in interest spread in the
corporate sector have encouraged the banks to shift towards retail sector.
Besides, fall in interest rates, availability of consumer goods at competitive and
reasonable prices and income tax benefits, especially in case of housing sector, have
also contributed to the growth of retail banking. Indian banks have adopted the best
international practices of accounting and integrated risk management systems after the
liberalisation of the economy. Banks have got the opportunity to diversify their risk
through the retail loan portfolio. Besides this, the retail advances have lower defaults
in repayment compared to the overall bank loans. The comparatively lower
provisioning burden on banks on retail loans have compelled them to diversify into
retail sector.

There has been dramatic operational transformation in retail banking in the recent
years. The factors which compelled banks to rethink their real strategies are increased
competition, mergers and acquisitions and new regulatory requirements. The retail
banks have adopted latest technology to maximise sales, manage distribution channels
and plan operations necessary to acquire, satisfy and retain customers.
CHAPTER 2
2.1 Introduction-AXIS BANK

Axis Bank is the third largest private sector bank in India. The Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses………………….

With its 3,703 domestic branches (including extension counters) and 13,814 ATMs across the
country as on 31st March 2018, the network of Axis Bank spreads across 2,163 cities and
towns, enabling the Bank to reach out to a large cross-section of customers with an array of
products and services. The Bank also has ten overseas offices with branches at Singapore,
Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative offices at Dubai,
Abu Dhabi, Dhaka and Sharjah and an overseas subsidiary at London, UK.

Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of
India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The
New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India
Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently
transferred to SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 6,91,330 crores as on 31st March 2018, Axis Bank has
achieved consistent growth and with a 5 year CAGR (2012-13 to 2017-18) of 15% in Total
Assets, 12% in Total Deposits, 17% in Total Advances.

2.2 COMAPNY HISTORY

Axis Bank established in 1993 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.Axis Bank Ltd. has been promoted by the largest and the best Financial
Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI
contributing Rs. 100 crore, LIC – Rs. 7.5 crore and GIC and its four subsidiaries contributing
Rs. 1.5 crore each.Axis Bank is one of the first new generation private sector banks to have
begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking
of Unit Trust of India (SUUTI) (then known as Unit Trust of India),Life Insurance
 Corporation of India (LIC), General Insurance Corporation of India (GIC), National
Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance
Company Ltd. and United India Insurance Company Ltd. The shareholding of Unit Trust of
India was subsequently transferred to SUUTI, an entity established in 2003.
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a
view to encourage savings and investment. In December 2002, the UTI Act, 1963 was
repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act,
2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI–I and
UTI–II with effect from 1st February 2003. In accordance with the Act, the Undertaking
specified as UTI I has been transferred and vested in the Administrator of the Specified
Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along
with 6.75% US–64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59
crores.
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 entered a deal in November 2010 to buy the investment banking and equities units
of Enam Securities for $456 million. Axis Securities, the equities arm of Axis Bank, will
merge with the investment banking business of Enam Securities.As per the deal, Enam will
demerge its investment banking, institutional equities, retail equities and distribution of
financial products, and non–banking finance businesses and merge them with Axis Securities.
Services offered by the bank:
 Personal Banking
 Corporate Banking
 NRI Banking
 Priority Banking
 VBV – Online purchases using Credit Card
 VBV / MSC – Online purchases using Debit Card

2.3 VISION AND VALUES

 Vision of the Bank

To be the preferred financial solutions provider excelling in customer delivery through
insight, empowered employees and smart use of technology
  Core Values
 Customer Centricity
 Ethics
 Transparency
 Teamwork
 Ownership

2.4 ORGANISATION STRUCTURE OF AXIS BANK

 2.5 RECENT AWARDS

 Axis Bank wins the Best Loyalty Program in Financial Sector - Banking at the Customer
Loyalty Awards 2018
 Axis Bank wins the Best Rewards Program for the 4th consecutive year at the Customer
Loyalty Awards 2018
 Axis wins the Champion of Champions – Loyalty Program of the Year at the Customer
Loyalty Awards 2018
 Axis Bank wins the Best Contact Centre at the Customer Experience Awards 2018.
 Axis Bank wins Best Use of Analytics for Business Outcome at the IBA Banking Technology
Awards 2018
 Axis Bank wins Best Use of Digital and Channels Technology at the IBA Banking
Technology Awards 2018
 Axis Bank won the Best Performing Bank – Private at the UTI Mutual Fund and CNBC
TV18 Financial Advisor Awards 2017-18
 Axis Bank has been awarded as the Second Best Perfoming Private Bank in APY for FY 17-
18
 CHAPTER-3

RESEARCH METHODOLOGY
The project is of descriptive nature. Descriptive research methodology is one of the most
commonly used techniques to carry out such activities. Descriptive research design is a
scientific method which involves observing and describing the behaviour of a subject without
influencing it in any way. it is also useful where it is not possible to test and measure the
large number of samples needed for more quantitative types of experimentation . as the
project involves analysis of data and interpretation without any subjective action, this can e
considered as a descriptive project.

The financial analysis of customer’s record is done on the basis:

A. SWOT analysis

B. Ratio analysis

C. Credit analysis

3.1 SOURCES OF DATA

The data was collected from the online database maintained by axis bank. The secondary data
has been collected from national housing board website and various bank websites.

3.2 PRIMARY DATA

The data which has been collected is primary as with the help of employees of the model
town branch of the axis bank

3.3 LIMITATION OF THE STUDY

 The study is based on econdary data.

 The banks were selected on random basis

 It was not possible to get a personal interview with the top management employees of
all banks under this study
 CHAPTER-4

REATIL BANKING
4.1 RETAIL BANKING
The Retail Banking segment continues to be a key driver of the Bank’s overall growth
strategy. It encompasses a wide array of products and services across deposits, loans,
investments and payment solutions which are delivered through multiple channels to the
Bank’s customers. The Bank has over the years developed long-term relationships with its
customers by being their preferred financial solutions partner on account of its excellent
customer delivery through insights and superior services. The Bank has also succeeded in
making banking simple for masses by smart use of technology. The Bank has always focused
on meeting the financial needs of its customers by providing high quality products and
services through regular customer engagement in convenient manner.
PRODUCTS OF RETAIL BANKING
 Accounts
 Deposits
 Cards
 Loans
 Forex
 Investment
 Mutual fund sip
 Insurance

These products of retail banking are offer by the axis bank all over the world