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COMPANY PROFILE

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the Government of India allowed new private banks to be established. Axis Bank was jointly promoted 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. Also with associates viz. National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd. Axis Bank in India today is capitalised with Rs. 232.86 Crores with 47.50% public holding other than promoters. It has more than 200 branch offices and Extension Counters in the country with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country. Axis Bank India commits to adopt the best industry practices internationally to achieve excellence. Axis Bank has strengths in retail as well as corporate banking. By the end of December 2004, Axis Bank in India had over 2.7 million debit cards. 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 travelers 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

BOARD OF DIRECTORS:
The Bank has 11 members on the Board. Dr. P. J. Nayak is the Chairman and Managing Director of the Bank. The members of the Board are: NAME DESIGNATION Dr. P.J. Nayak Chairman & Managing Director Shri Surendra Singh Director Shri N.C. Singhal Director Shri A.T. Pannir Selvam Director Shri J.R. Varma Director Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director Shri R.B.L. Vaish Director Shri S.B. Mathur Director Shri M.V. Subbiah Director Shri Ramesh Ramanathan Director

MISSION AND VALUES:


OUR VALUES: Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. Continuous technology upgradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. CORE VALUES: Customer Satisfaction through o Providing quality service effectively and efficiently o "Smile, it enhances your face value" is a service quality stressed on o Periodic Customer Service Audits
Maximization of Stakeholder value

Success through Teamwork, Integrity and People.

MAJOR HDFC
HISTORY:

PLAYER

IN

THE

BANKING

INDUSTRY:

The 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, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. BUSINESS SUMMARY: HDFC Bank Limited offers a range of commercial and transactional banking services, and treasury products to wholesale and retail customers. It operates in three segments: Retail Banking, Wholesale Banking, Treasury Services. WHOLE SALE BANKING SERVICES:

The Bank's target market ranges from large, blue-chip manufacturing companies in the Indian corporate to small & mid-sized corporate and agri-based businesses. For these customers, the Bank provides a wide range of commercial and transactional banking services, including
Working capital finance, Trade services, Transactional services, Cash management,

RETAIL BANKING SERVICES: The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world-class service and delivered to the customers through the growing branch network, as well as through alternative delivery channels like ATMs,
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Phone Banking,
Net Banking

Mobile Banking. TREASURY: Within this business, the bank has three main product areas Foreign Exchange and Derivatives,
Local Currency Money Market & Debt Securities,

Equities. With the liberalization of the financial markets in India, corporate need more sophisticated risk

management information, advice and product structures. These and fine pricing on various treasury products are provided through the bank's Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25% of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

ICICI
History HISTORY: ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an allstock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create
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a development financial institution for providing medium-term and long-term project financing to

Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly feebased services, and access to

the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its whollyowned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. BUSINESS SUMMARY ICICI Bank is India's second-largest bank with total assets of Rs. 3,446.58 billion (US$ 79 billion) at March 31, 2007 and profit after tax of Rs. 31.10 billion for fiscal 2007. ICICI Bank is
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the most valuable bank in India in terms of market capitalization and is ranked third amongst all the companies listed on the Indian stock exchanges in terms of free float market capitalisation*. The Bank has a network of about 950 branches and 3,300 ATMs in India and presence in 17 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised

subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established a branch in Belgium. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). SERVICES PROVIDED: PERSONAL BANKING: NRI BANKING: BUSINESS BANKING: Deposits Money Transfer Corporate Net Banking Loans Bank Accounts Cash Management Investments Property Solutions Trade Services Cards Insurance FX Online Insurance Loans SME Services Demat Services Online Taxes Online Services Custodial Services Property Services

SBI
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HISTORY:

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework. BUSINESS SUMMARY: The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and

circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woolens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however,. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities. SERVICES PROVIDED: PERSONAL BANKING:

AGRICULTURAL BANKING CORPORATE BANKING NRI BANKING

7P FRAME WORK IN AXIS BANK:


Once the marketing strategy is developed, there is a "Seven P Formula" that should be used to continually evaluate and reevaluate your business activities. These seven are:
Product, Price Promotion Place

Process
Positioning People.

As products, markets, customers and needs change rapidly, company must continually revisit these seven Ps to make sure you're on track and achieving the maximum results possible for you in today's marketplace.
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PRODUCT To begin with, develop the habit of looking at your product as though you were an outside marketing consultant brought in to help your company decide whether or not it's in the right

business at this time. Ask critical questions such as, "Is the current product or service, or mix of products and services, appropriate and suitable for the market and the customers of today?" Develop a habit of assessing your business honestly and asking, Are these the right products or services for our customers today? Compared to your competitors, is your product or service superior in some significant way to anything else available? If so, what is it? If not, could you develop an area of superiority? Should you be offering this product or service at all in the current marketplace? Product variety, quality and its features. Is there a market for the service on offer? Is the market growing or shrinking? Is the service new or established? The competition prevailing in the market for the service on offer? The USP of the product. Products and Services on offered by AXIS Bank: Accounts Easy Access Accounts Prime Savings Account Salary Account Womens Saving Account Senior Privilege Account
Defense Salary Account

Trust & NGO Savings Account Azzadi No frills


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RFC (D) Account Pension savings Account. Deposits: Fixed Deposits Recurring deposits Encash 24 Tax Saver Fixed Deposits Loans: Home loan Personal loan Loan Against Property Loan Against Security Car Loans Study Loans Two Wheeler Loan Consumer Loan Investments: Online Trading Mutual Funds Fixed Income Depository Services E Depository Services Insurance: Health Insurance Family Health Health Guard
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Hospital Cash PRICES

The second P in the formula is price. Develop the habit of continually examining and reexamining the prices of the products and services you sell to make sure they're still appropriate to the realities of the current market. Sometimes you need to lower your prices. At other times, it may be appropriate to raise your prices. Many companies have found that the profitability of certain products or services doesn't justify the amount of effort and resources that go into producing them. By raising their prices, they may lose a percentage of their customers, but the remaining percentage generates a profit on every sale. Could this be appropriate for you? Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading your price over a series of months or years, you can sell far more than you are today, and the interest you can charge will more than make up for the delay in cash receipts. Sometimes you can combine products and services together with special offers and special promotions. Sometimes you can include free additional items that cost you very little to produce but make your prices appear far more attractive to your customers. In business, as in nature, whenever you experience resistance or frustration in any part of your sales or marketing activities, be open to revisiting that area. Be open to the possibility that your current pricing structure is not ideal for the current market. Be open to the need to revise your

prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace. AXIS bank has developed innovative strategies against its competitors with respect to pricing by use of technology. The use of technology is the strategic differentiator for AXIS bank that helps in cost minimization and creating efficiency for the customer. The creation of centralized processing system linking all its branches has been a major strategic move in this regard. The pricing mechanism and features of various HDFC products are as follows: Home Loans: Floating rates: For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at 9.25 per cent (9 per cent).
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The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50 per cent). The interest rate for above ten years now stands at 10.25 per cent (10 per cent). SAVINGS ACCOUNT: Description of Charges Regular Savings Account Minimum Average Quarterly Balance Rs 5000 (urban), Rs 2500(Semi Urban), Rs 1000 (Rural branch), Rs 500 (student account)

Charges on non maintenance thereof Rs750 per quarter(urban &semi urban) Rs 500 (Rural branch), Rs 250 (student account) Cheque Book, Pass Book Issuance Free Account Statements Free Phone Banking and Net banking Free . FIXED INCOME
Investment Plans:

Investors can choose from cumulative and non-cumulative bond options.


Interest Rate:

Bonds will bear interest @ 8.00% per annum and are payable halfyearly.
Minimum Investment Amount:

The Bonds will be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof.
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There is no upper limit for investment in the Bonds.


Maturity:

The Bonds shall mature on the expiration of six years from the date of issue.
Taxation:

Interest on the Bonds will be taxable under the Income Tax Act, 1961 as applicable

according to the relevant tax status of the Bonds holder. Presently there is no tax deduction at source at the time of interest payment. CURRENT ACCOUNT:
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FIXED DEPOSITS:
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PERIOD INTEREST RATES ON DOMESTIC DEPOSITS (%) DEPOSITS Interest Rate on Deposits Below Rs 15 lakhs Interest Rates for Senior citizen Int Rate 15-50 Lakhs 7 days to 14 days --1 30 days to 45 days 444 15 days to 29 days 333 46 days to 60 days 555 61 days to less than 3 months 5.5 5.5 5.5 3 months to less

than 4 months 666 4 months to less than 6 months 666 6 months to less than 9 months 787 9 months to less than 1 year 898 1 year to less than 2 years 9 10 9 2 years to less than 3 years 9 10 9 3 Years to less than 5 years 898 5 Years upto 10 years 898 PROMOTION
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The third habit in marketing and sales is to think in terms of promotion all the time. Promotion includes all the ways you tell your customers about your products or services and how you then market and sell to them. Small changes in the way you promote and sell your products can lead to

dramatic changes in your results. Even small changes in your advertising can lead immediately to higher sales. AXIS bank has devised an aggressive promotional strategy through its diversified distribution mix which includes tied agencies and alternate channels like banks, brokers, telemarketing, direct sales force, internet advertizing . Some of the promotional activities undertaken are: Cross Selling exercises Organizing school level painting competitions in order to create awareness about the environmental concerns and the wild life to promote kids advantage account. Wheels of fortune - This promo are targeted at all those customers who avail a personal loan, car or a two wheeler loan. There will be lucky draw at the end of the promo and the winners would get exotic prizes. Personalized promos by sending mailers about various products on offer to all those who come in contact during the mass promotion strategies. The promotional strategies are carried out with an objective of positioning AXIS bank as a one stop financial super market. The focus of the promotions are not just confined to acquisition of new products but also extends to creating product awareness, enhancing usage, and also provide value add to the customers for their faith and loyalty.

These promotions are scientifically designed based on data analysis and data mining in order to have maximum impact on the target audience. PLACE The fourth P in the marketing mix is the place where your product or service is actually sold. You can sell your product in many different places. Some companies use direct selling, sending their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing. Some sell through catalogs or mail order. Many companies use a combination of one or more of these
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methods. It refers to those activities of the company that makes the product available to target consumers. It includes geographic spread, distribution channels, dealer ships that facilitate network establishment. Axis bank is widely spread in India and its core banking operations has huge network 580 branches and extension counters foreign offices in Singapore, Hong Kong, Shanghai and Dubai 2457 ATMs reaches out to 350 cities, towns and villages across the country AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby lowering the operating costs. It uses its network base to good effect to sell customized products. PROCESS

The fifth element in the marketing mix is the process. Develop the habit of standing back and looking at every visual element in the process or service through the eyes of a critical prospect. Remember, people from their first impression about you within the first 30 seconds of seeing you or some element of your company. Small improvements in the process or external appearance of your product or service can often lead to completely different reactions from your customers. With regard to the process of your company, your product or service, you should think in terms of everything that the customer sees from the first moment of contact with your company all the way through the purchasing process. Process refers to the way your product or service appears from the outside. Packaging refers to your people and how they dress and groom. It refers to your offices, your waiting rooms, your brochures, your correspondence and every single visual element about your company. Everything counts. Everything helps or hurts. Everything affects your customer's confidence about dealing with you. POSITIONING The next P is positioning, the habit of thinking continually about how you are positioned in the hearts and minds of your customers. How do people think and talk about you when you're not present? How do people think and talk about your company?

What positioning do you have in your market, in terms of the specific words people use when they describe you and your offerings to others?
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AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible to maximum customer. It has also come up with some phone banking centre and centralized collection and payment hub. CENTRALISED PHONE BANKING CENTRE The Banks Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone, handling multiple queries in about 7000 calls per day. CENTRALISED COLLECTION AND PAYMENT HUB The Banks Centralized Collection and Payment Hub (CCPH) manages the entire collection and payment activity under the Banks Cash Management Services (CMS) across the country, handling on an average about Rs.5000 crores per month on the collection front and about Rs.1500 crores per month on the payment front. PEOPLE The final P of the marketing mix is people. Develop the habit of thinking in terms of the people inside and outside of your business who are responsible for every element of your sales and marketing strategy and activities. It's amazing how many entrepreneurs and businesspeople will work extremely hard to think

through every element of the marketing strategy and the marketing mix, and then pay little attention to the fact that every single decision and policy has to be carried out by a specific person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with the skills and abilities to do the job you need to have done, is more important than everything else put together. An essential ingredient to any service provision is the use of appropriate staff and people. Recruiting the right staff and training them appropriately in the delivery of service is essential if the organization has to obtain competitive advantage. AXIS bank values its human resources very highly and is on a constant endeavor to continuously develop its human resources by laying strong emphasis on training development. It possesses a highly motivated team of professionals and has the lowest employee turnover rate in the industry. EMPLOYEE PRODUCTIVITY:
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ITEM 2001-02 2002-03 2003-04 2004-05 2005-06 Private Bank Avg All Bank Avg 2005-06 2005-06 No. of offices 112 137 185 250 348 259 680 No. of employees 1721 2338 3447 4761 6553 4189 10458 Business per employee (in Rs. lakh) 896 926 808 1021 1020 677 423.74

Profit per employee (in Rs. lakh) 7.79 8.22 8.07 8.02 8.69 4.6 2.84 From the above data it is clearly evident that Axis bank is growing at a good rate as there number of branches are also increasing along with the increase in the employee also showing the environment provided by Axis bank. Its profit per employee is also showing a positive trend and is above the average of both the private bank and the all the bank category. It provides challenging and exciting growth opportunities for its employees in order to push the employees unleash their maximum potential. One of the key features of any growing business is
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the recruitment and retention of human resources. During the year, a major challenge was the retention of manpower, given the current buoyancy in the Indian economy as also the lucrative opportunities available for skilled personnel in the growing financial services sector. The Bank has generally successfully managed the important challenge of acquisition of talent to keep pace with the rapid network expansion, and the demands of specialized businesses. The Bank has been successful in achieving this, with the staff complement increasing by 1,792 during the year from 4,761 at endMarch 2005 to 6,553 at endMarch 2006. Training is an area of continuing focus for the Bank in order to ensure that its

professionals are equipped to maintain high standards of customer service. The scope of training is continually improved and refined in consultation with business groups. The training system in the Bank focuses on upgrading the professional skills of each individual
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employee through classroom sessions, outbound training, and in-house and external domain skills programmes. Amongst the significant retention tools is a well-structured performance-linked scheme of variable pay and employee stock options to all employees across grades and functions. Continuous training, the opportunity to work on challenging tasks, and job rotation are part of the Banks talent retention strategy.

DETAILED DESCRIPTION OF PRODUCTS AND SERVICES:


PERSONAL ACCOUNTS: PRIME SAVINGS ACCOUNT 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.
Wider Accessibility: 500 branches and one of the largest ATM

networks in India.
Greater Convenience: International Debit Card with withdrawal

limit of Rs 40,000 per day facilitating transfer of funds, deposits of cash/cheques and payment

of insurance premium (LIC).


More Comfort: 24 hr Internet Banking and Tele Banking services Enhanced

Privileges: provide you a passbook and monthly

statement of account to keep you updated on all your transactions


Added Speed: 'At Par' cheque facility, you have the unique

advantage to encash your cheques as a local cheque at more than 330 centers where the bank has a presence at no extra cost Other Accounts in this category:
SALARY POWER

SMART PRIVILEGE ACCOUNT SENIOR PRIVILEGE PENSION SAVINGS ACCOUNT


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DEPOSITS Fixed Deposits Axis Bank offers a simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with a minimum investment of Rs 10,000.
Reinvestment Deposits:

In a reinvestment deposit, the interest accrued to your deposit at the end of each quarter is invested along with the principal. The tenure of your deposit must be a minimum of 6 months.
Automatic Rollover:

As a Fixed Deposit holder, you can avail of the facility for automatic rollovers on

maturity (for both the principal and interest). You can select this option in the Account Opening Document (AOD). The options available are:

RECURRING DEPOSITS

Power of compounding Axis Bank's Recurring Deposit scheme will allow you with an opportunity to build up Your 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 number of

installments 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. Encash 24
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The ENCASH 24 (Flexi Deposits) gives you the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to your Savings Account providing you the following unique facilities. LOANS

POWER HOUSE: Axis Bank's Power Home puts an end to your Real Estate troubles. Features: Attractive interest rates Balance Transfer facility Doorstep service Option to choose from floating rate or fixed rate Free Property & Personal accident insurance. PERSONAL POWER: Features:

Loans for salaried and self employed individuals Special loans for doctors, chartered accountants, engineers,

architects, CS and ICWA .


Loans are available from Rs 50,000 to Rs 20 lacs Repayment tenures from 12 to 60 months Attractive interest rates Free personal accident insurance cover with Loans can be used for any purpose with no questions asked regarding

personal loan

the end use of the loan A balance transfer facility available for those who want to retire any higher cost debt Loans available against repayment track record of any existing auto, personal or home loan Loans available against proof of life insurance policy or premium receipts

Zero balance SB account facility for personal loan customers Simple

procedure, minimal documentation and quick approval. ASSET POWER (Loan Against Property)

A take-over of your existing loan with refinancing is also possible with Asset Power. Features

Attractive interest rates Balance Transfer facility available with additional finance Doorstep service

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Four products under Asset Power Loan against property - Residential Loan against property - Commercial Loan for purchase of commercial property Take-over of existing loan with additional refinance (Balance Transfer) Lease Rental Discounting (LRD) CORPORATE BANKING Working Capital Finance . These products are designed to ease the liquidity position of the client and come with a number of other facilities such as Internet Banking, Phone Banking etc. Trade Services Axis Bank has emerged as one of the leading banks in providing trade finance services, providing a gamut of products for both exports and imports, with dedicated Front-Desk and MIS. Structured Finance Axis Bank provides tailor made solutions to meet our clients' requirements, while mitigating the credit and price risk at the same time. Specialists, speedy processing of documents and provide comprehensive and timely

Supply Chain Management Axis Bank provides integrated commercial and financial solutions to the supply and distribution channels of a corporate. The products are designed to add value to supply and distribution channels by providing unique solutions to meet their working capital requirements.
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CAPITAL MARKETS Debt Solutions Axis Bank is a leading provider of debt solutions in the form of bond or debenture issuances and loan syndication. The Bank has successfully managed various debt issuances of mid and large size which includes plain vanilla loans or bonds, and structured term loans to meet the specific requirements of the clients and the projects. The Bank is the largest bond house in the country and has been ranked first in respect of various domestic and international league tables in respect of domestic debt issuances. Equity Solutions We are SEBI registered Category I Merchant Banker. The Bank's Capital Markets Department has developed significant expertise in the area of public or rights issue management, private placement of equity, overseas fund raising through FCCB and GDR and debt syndication. The Bank has acted as Lead Book Running Managers, co-arrangers and advisors to a number of

equity issuances or offers. Trusteeship Services Axis Bank Ltd. is a SEBI registered Debenture Trustee in the business of Debenture Trusteeship, Security Trusteeship, Monitoring Agency and Facility Agency and predominantly acts as Trustee to privately placed debt issuances, domestic borrowings and external commercial borrowings. At present the aggregate value of the Trusteeship portfolio is approximately Rs 1, 00,000 crores. The Trusteeship Group presently services over 150 clients including leading public and private sector corporate as well as Banks and Financial Institutions including international funding agencies in respect of various debt instruments issued within the country and also for various secured Foreign Currency Convertible Bonds and External Commercial Borrowings. EDepository Services With the introduction of settlement on T+2 basis, instruction for delivery of securities to broker's account is required immediately after sale of securities. Hence time available for submission of delivery instructions is limited. Axis Bank now permits submission of delivery instructions in electronic form using Internet based service called Speed-e. Physical delivery instructions need not be submitted in case you are submitting the instructions on Speede. CAPITAL MARKET FUNDING:
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Axis Bank is a clearing bank for following exchanges: National Stock Exchange of India Limited (NSE) The Stock Exchange, Mumbai (BSE) National Commodity and Derivative Exchange (NCDEX) Multi Commodity Exchange (MCX)
All the Settlement related activities for these exchanges are carried

out through its Capital Market Division, Fort Branch, and Mumbai. COMPETETIVE ANALYSIS AND ADVANTAGES OF AXIS BANK: Below in the table is shown a comparative analysis of AXIS Bank with the other major players in the banking industry. Bank No of No of Business Per Profit Per Capital Reserves Interest Branches Employees Employee employee Deposits Investments & Surplus Income ICICI 563 24479 905 10 22556 13784 165083 717547 HDFC 515 14878 758 7.39 5300 4475 55797 28394 AXIS/UTI 348 6553 1022 8.69 2886 2889 40114 21527 YES 6 4189 677.86 8.56 573 190 2910 1350 Kotak Mahindra 78 3597 352 4.15 865 694 6566 2856

DATA: 2005-2006 From the above data it is clear that AXIS bank is among the top three private players in the banking industry.
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The above doughnut clearly indicates that the branches of the Axis bank is increasing Business per employee of Axis bank and its competitors. Comparison of capital reserves and surplus and interest income of Axis bank and its competitors.
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Comparison of Deposits and investments of Axis bank and its competitors. COMPETETIVE ADVANTAGES OF AXIS BANK: The Economic Survey of 2005-06 has affirmed that significant features of dynamic growth in recent years include a new industrial resurgence, pick-up in investment, modest inflation inspite of spiraling global crude prices and the laying of institutional foundations for faster development of infrastructure. The economic growth indices in the current year have been good and the GDP growth is expected to be around 8.1% for fiscal 2006. Non-food bank credit is expected to grow at 25.2% indicative of industrial recovery and the services sector by 9.8%. Agriculture and Allied sectors are expected to grow at a rate of 2.3% in the current fiscal. In order to maintain the GDP growth at over 8% in coming years and accelerate growth in industry, substantial

investments will be required in infrastructure. External conditions have also been favorable with a growing level of foreign exchange reserves. The overall macroeconomic prospects for 200607 are, therefore, encouraging. OVERVIEW OF FINANCIAL AND BUSINESS PERFORMANCE The Bank has been able to turn in an impressive business performance and record good financial results for the fifth year in succession, owing to the efficacy of its business model which aspires to be customer-centric.
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Information technology is continuously leveraged in providing value added products and services as well as multiple-delivery channels to customers in a manner that is cost-effective and which offers the Banks customers easy, real-time and on-line access for all types of transactions. The strong performance, despite a tightening of overall liquidity leading to a hardening of interest rates in the closing stages of the fourth quarter, reflected the fact that the primary Goals of the Bank of increasing its market share in various businesses and improving its quality of earnings by enhancing its core income streams, is solidly anchored in the strategy adopted by it. The sizeable network of branches, extension counters and ATMs has equipped the Bank with an impressive reach across the country and is supported by channels such as the Internet and mobile

phone banking. The steady widening of this reach to smaller cities and towns, including in district headquarters, is expected to sustain the momentum of growth of low cost deposits, as the Bank enjoys a first-mover advantage vis--vis other private sector banks in many of these centers. The key factors which contributed to the healthy performance of the Bank during the year were the
Continued thrust on improvement in the quality of earnings through

an emphasis on core income streams such as net interest income and fee based income;
The availment of opportunities emanating from the upswing in the

corporate credit cycle;


A focus on improvement in asset quality through rigorous credit and

risk appraisal, sound treasury management, product diversification and internal control;

Enhanced cost efficiency by leveraging on technology that is

continuously upgraded;
Maintenance of high standards of customer service.

SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:


BUSINESS CONTINUITY CENTRE: UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC) In Bangalore which replicates the entire centralized database with a view to enable the Bank to run smoothly in case of any eventuality affecting the Banks Data Centre in Mumbai. Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously through WAN on the back-up database at the BCC.

41

CENTRALISED PHONE BANKING CENTRE The Banks Centralized Phone Banking Centre provides customers across the country Access to the Bank over the phone, handling multiple queries in about 7000 calls per day. CENTRALISED COLLECTION AND PAYMENT HUB The Banks Centralized Collection and Payment Hub (CCPH) manages the entire collection and Payment activity under the Banks Cash Management Services (CMS) across the country, handling on an average about Rs.5000 crores per month on the collection front and about Rs.1500 crores per month on the payment front. RETAIL ASSETS MANAGEMENT GROUP The Banks Retail Assets Management Group (RAMG) is the operations hub of the entire Retail asset distribution disbursing more than 3000 Schematic loans every month, it is responsible for the maintenance of more than 100,000 Such loan accounts, and handles the entire post dated cheque presentation and several Kinds of repayments for all these accounts. ATM BACKEND CELL The ATM Backend Cell handles the entire cash management and reconciliation of balances pertaining to ATMs across the country and ends up tallying over four lakh Transactions by the end of the day. SERVICE BRANCHES structure. In addition to opening and

The Banks Service Branches in the 8 major metros take care of centralized clearing activity, Handling more than one lakh cheques every day for outward and inward clearing. DATA CENTRE The Banks Data Centre in Mumbai, the centralized IT powerhouse is like the central nervous system of the Bank. It is a real time 24x7 setup which manages 270 products and services of the Bank with a database size of 1850 GB supporting on an average 42 lakh transactions per day
42

to service over 42 lakh customer accounts and adding new customers @ 8000 per day. CENTRALISED PROCESSING UNIT The Banks Centralised Processing Unit (CPU) is the backbone of the Bank, managing production and delivery of the entire range of deliverables to customers across the country within 24 72 hours from the time the customer opens the account. The CPU currently handles about 8500 new accounts every day. JOB RESPONSIBILITIES OF A MANAGER Job description A banker is responsible for establishing and maintaining positive customer relationships, planning and delivering effective sales strategies and monitoring the progress of new and existing financial products. Bankers may work as managers in high street branches providing operational

support on a day-to-day basis, or in more specialized posts in corporate or commercial departments at area, regional or head offices. Banks operate in a fiercely competitive marketplace where change is common. Products and services offered have to develop to satisfy the expectations and demands of customers and working with staff and customers to achieve targets has become a very major part of the role. Typical work activities Responsibilities and work activities may vary between retail and corporate and commercial banking. Most retail bankers work in high street branches, dealing with both private and corporate customers, while some work in regional or head offices. Bankers who work with commercial or corporate customers may be based in branches or may work from specialized area or regional offices.
43

Bankers who have area and regional responsibilities adopt a strategic role and, whilst retaining overall accountability for service and product delivery, usually delegate supervision of day-to-day operations to staff in branch outlets. Responsibilities for both retail and corporate and commercial bankers may include:

implementing the delivery of sales strategies and targets and

motivating employees to meet these;

establishing and maintaining effective relationships with new and

existing customers, establishing their needs and advising on the suitability of services;

visiting business customers and attending meetings and conferences

with them and other professionals;

managing and supporting staff and facilitating appropriate continuing

professional development (CPD);

communicating,

implementing

and

monitoring

compliance

with

corporate standards and procedures;


processing data to produce accurate facts, figures and reports; evaluating new and renewal lending proposals, negotiating terms

with customers and, where appropriate, submitting proposals to the credit department for approval;

checking accounts and initiating action if they are overdrawn without

arrangement or are in excess of agreed arrangements;

assuming overall accountability for products and services, such as

consumer lending, current account transactions, unsecured loans, overdrafts, credit cards and personal loans;

networking with appropriate professionals; Representing the bank within the wider community.

EXISTING PRICING AND PROMOTIONAL STRATERGIES:


In the banking industry the pricing strategies is concerned with the rate of interest these banks offer to the customers on there investments and also the rate of interest they levy on the

customers for different type loans. These also include service charges they charge on the customer for the services they offer. FIXED DEPOSITS INTEREST RATES: PERIOD INTEREST RATES ON DOMESTIC DEPOSITS (%) DEPOSITS Interest Rate on Deposits Below Rs 15 lakhs Interest Rates for Senior citizen Int Rate 15-50 Lakhs 7 days to 14 days - - 1 30 days to 45 days 4 4 4 15 days to 29 days 3 3 3 46 days to 60 days 5 5 5
48

61 days to less than 3 months 5.5 5.5 5.5 3 months to less than 4 months 666 4 months to less than 6 months 666 6 months to less

than 9 months 787 9 months to less than 1 year 898 1 year to less than 2 years 9 10 9 2 years to less than 3 years 9 10 9 3 Years to less than 5 years 898 5 Years upto 10 years 898
49

SAVING ACCOUNTS AND OTHER CHARGES:


50 51 52
Source:www.utibank.com

PROMOTIONAL STRATERGIES:
In early 1950's most of the markets were choking with surplus products on offer, defying the theory "the best quality will always sell". The emergence of Branding as a value in offering has kept many organizations leaders, and in survival. Branding is termed as a part of offering, created

in the mind of customer and consumer of superior values that he or she perceives and ready to pay for. The brand can be associated with superior product, superior services, superior sales after services, or easy access. In today's era with increasing competition, is that not important enough to revisit Brand as a marketing offering (Product or Service). BRAND NAME: UTI has officially announced the change of its name to Axis Bank. The awareness campaign titled UTI Bank is now Axis Bank; everything is the same except the name, has been created by O&M and is the brainchild of Sumanto Chattopadhyay.
53

The decision to re-brand the bank emanated from the need to move out of a scenario of brand confusion that is created by several shareholder-unrelated entities using the UTI brand. On the creative point of view, the change of name from UTI Bank to Axis Bank is precisely just a name change. Everything else about the brand remains the same. Axis is a strong name with an international aura to it. It is very much in keeping with UTIs success story in the private banking arena. MARKETING INITIATIVES: On the marketing initiatives, a multimedia campaign was unfolded on August 1 that will go on for the next few weeks. It seeks to reassure customers that the change of name will in no way affect the services offered by the bank.

On the thought process the creative platform adopted for the name change is based primarily on twins -- siblings whose names are different, but are identical in every other way. This campaign will run on
Television Outdoor Print Radio and other 360-degree media.

Some interesting innovations are planned in the print medium. On radio, the name change is being expressed in a slightly different manner, in keeping with the nature of the medium. BROADSHEET WAY: The first campaign that was featured was a false cover page for MidDay going the broadsheet way. The campaign very much focused on the idea on the awareness of the bank changing its name to Axis Bank. Television is given priority as it gives the maximum reach among the mass media channels. Besides the mass media channels, the 2,500-odd ATM locations is also being used to convey the name change message. And of course, the signages of the 600 or so branches will also change to reflect the new name. LOGO DESIGN: The logo design of Axis Bank is based on the letter A. It is a contemporary, universal and solid design that retains the burgundy color of the original UTI logo as a link to its heritage

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GOVERNMENT REGULATION IN BANKING:


Banking Regulation Act, 1949
As per Section 5(c) of Banking Regulation Act, 1949 a "Banking

Company" means any company which transacts the business of banking in India.
Any company which is engaged in the manufacture of goods or

carries on any trade and which accepts the deposits of money from public merely for the purpose of financing its business as such manufacturer or trader shall not be deemed to transact the business of banking within the meaning of this clause."
As per Section 5(b) of Banking Regulation Act, 1949 , banking

means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawals by cheque, draft, order or otherwise.
As per Section 5(d) of Banking Regulation Act, 1949, company

means any company as defined in Section 3 of the Companies Act, 1956 and includes a foreign company within the meaning of Section 591 of that Act.

As per section 51 of Banking Regulation Act, 1949, certain

provisions of the Banking Regulation Act are also applicable to the State Bank of India, any corresponding new bank, a regional rural bank and any subsidiary bank. "Corresponding new bank" has been

defined under clause (ee) of section 2 of the DICGC Act to mean a corresponding new bank constituted under the Banking Companies (Acquisition and Transfer of Undertakings) Acts of 1970 or 1980. National Housing Bank Act, 1987 Section 2(d) of the National Housing Bank Act, 1987 defines a housing finance institution as under: "Housing finance institution includes every institution, whether incorporated or not, which primarily transacts or has as one of its principal objects, the transacting of the business of providing finance for housing, whether directly or indirectly"
55

Reserve Bank of India Act, 1934 Section 2(d) of the National Housing Bank Act, 1987 defines a housing finance institution as under "Financial Institution" means any non-banking institution which carries on as its business or
the acquisition of shares, stock, bonds, debentures or securities

issued by a government or local authority or other marketable securities of a like nature;


letting or delivering of any goods to a hirer under a hire-purchase

agreement as defined in clause (c ) of section 2 of the Hire-Purchase Act, 1972;


the carrying on of any class of insurance business; managing, conducting or supervising, as foreman, agent or in any

other capacity, of chits

or kuries as defined in any law which is for the time being in force in any State, or any business, which is similar thereto;
collecting, for any purpose or under any scheme of arrangement by

whatever name called monies in lump sum or otherwise, by way of subscriptions or by sale of units, or other instruments or in any other manner and awarding prizes or gifts, whether in cash or kind, or disbursing monies in any other way, to persons from whom monies are collected or to any other person. As per Section 45-I (f) of the RBI act, "non-banking financial company" means: - a financial institution which is a company; a non banking institution which is a company and which has as its principal business the receiving of deposits, under any scheme of arrangement or in any other manner, or lending Tiny manner;
56 the financing, whether by way of making loans or advances or

otherwise, of any activity other than its own; EXISTING MARKETING STRATERGIES TO GAIN UPPER MARKET SHARE: Going forward, the Bank will continue to derive benefit from the infrastructure created over the years and pursue a strategy of profitable growth through stronger corporate relationships and an

accelerated retail customer expansion program me driven by the Banks multiple channels. The Bank continues to identify new thrust areas to sustain its growth, and these include:
Growth in credit to the SME and agriculture sectors that will be

driven by a network of rural and semi urban branches supported by organizational reinforcement in the form of SME cells and agriculture clusters. Reinforcement of the international remittance business. The Bank has already tied up with various banks and exchange houses in the Gulf for tapping the highvolume remittance business emanating from this region.
New initiatives such as Wealth Management will enable the Bank to

advice and to crosssell third party products to high net-worth customers. An expansion in the overseas branch and representative office network, commencing with the first branch in Singapore, will create opportunities for cross-border trade finance, syndication of debt and NRI business. CAPITAL MANAGEMENT The Bank believes in the continual enhancement of shareholder value by an efficient use of available capital in a manner that leads to a high return on equity. In this sense, the Bank seeks to be protective of its capital.
The Bank continued to attract investor interest from domestic and

foreign institutional

investors, leading to a very visible increase in trading volumes and price.

On the successful conclusion of the GDR offering, the Bank

mobilized Rs. 1,122 crores (equivalent to US Dollars 257.03 million).


In addition, the Bank also placed subordinated bonds of Rs. 1,000

crores in the market in order to raise Tier II capital to the extent eligible.
The Bank is focusing on developing an asset structure that was

sensitive to the importance of increasing the proportion of low risk weighted assets, in order that capital is more efficiently deployed.
57

PREPAREDNESS ACCORD

FOR

IMPLEMENTATION

OF

THE

BASEL

II

The Bank is in the process of identifying an appropriate software system and data management solution for a phased adoption of the Basel II framework in the area of credit risk. In the first instance, the Bank is in a position to

adopt the Standardised approach for credit risk and it is

strengthening the internal credit rating architecture and archiving the internal rating migration data to prepare for an eventual migration to the Internal Rating Based (IRB) approach.
The Bank is in readiness to calculate capital charge on operational

risk, under both the Basic Indicator approach as well as the Standardised approach, and has mapped its activities to the eight business lines defined in the Basel II Accord.

The Bank has also undertaken internal studies on several lines of

business for an evaluation of the risk profile, capturing of losses incurred and identifying key risk indicators (KRIs). RETAIL BANKING With a view to attaining an increasingly significant position in the burgeoning retail financial services sector in the country, the Bank has continued to provide a sustained thrust to retail banking through a continuously expanding network and a growing sales force with customer relationship skills, that has enabled the distribution of a wide range of products to a fast expanding customer base. The key driver underpinning the profitability of the retail banking business has been the Banks customer-centric vision, manifested in the strategic interplay of product differentiation and innovation on the one hand
customer segmentation on the other, where the constant endeavour

is to introduce
Introduction of customized products and services to cater to the

specific needs of different customer segments.


58

This has resulted in a substantial growth of retail banking business during 2005-06 The thrust on customer segmentation has been a strategic success, as evident from the strong business growth across various customer segments during 2005-06.

ATM: The Bank has also continued its earlier pioneering efforts in persuading other banks to participate in ATM sharing, and presently offers the largest available access to over 18,000 ATMs in the country to its customers, based on alliances with other banks and multi-bank shared payment
59

Networks. The Bank has also provided value additions on its versatile ATM machines, including LIC premium payment and telephone bill payments for service providers like MTNL and BSNL, as also mobile banking services and mobile refill facilities for Airtel, Hutch, Orange and Idea cellular service providers. The Bank has tied up with UTI Mutual Fund to launch a new service that will help customers of the Bank to subscribe as well as redeem UTI Mutual Fund schemes through the Banks nationwide network of 1,891 ATMs. The Banks future thrust is on: marketing approach
product innovation

risk management systems Financial Advisory


Rigorously designed back-office processes contribute to the strength

of the Banks retail lending strategy Wealth Advisory Services


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INTERNATIONAL BANKING

The Bank continued to provide a business focus on tapping business from the NRI community by offering a wide range of banking, investment and advisory services to them. During the year, the aggregate NRI deposits grew by 48.37% from Rs. 1,134.87 crores to Rs.1, 683.84 crores with the NRI savings bank balances growing by 115.90% from Rs. 295.79 crores to Rs. 638.60 crores. During the same period, the number of savings bank NRI accounts grew by 82.61% from 27,018 to 49,337. The accelerated growth, both in terms of account acquisition and savings bank balances of NRI business, is attributable to
Initiatives that have focused on deepening of existing relationships

and a simultaneous expansion of the customer base, driven by alliances with various banks and exchange houses in the Gulf region.
The Bank has also partnered with the Ministry of Overseas Indians to

offer an Internet based electronic remittances portal to facilitate remittances from NRIs. The portal also provides information services relating to investments in financial markets, tax consultancy and investments in real estate.

Globalisation of financial markets across economies and the

significant increase in international trade in recent years provides opportunities for the Bank to render banking and related services through a presence in overseas centers.

Keeping this in view, the Bank has embarked on an active international expansion programme in key Asian markets. The Bank has since received a license and set up a branch in April 2006 in Singapore. This Banks first overseas branch.
The Bank has also obtained the necessary approval from the

regulators in China for setting up a Representative Office in Shanghai and is now in the process of completing the related formalities for opening an office. CORPORATE BANKING
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Corporate Banking offers various loan and fee-based products and services to large corporate, SMEs and to the agriculture sector. The Bank continued with the strategy of diversifying its customer base, including deeper penetration in higher yielding segment, channel Finance, SMEs and agricultural finance segments. In order to give an impetus to the SME segment setting up SME cells
Adopting a cluster-centric approach for agricultural lending in areas

and

to

agricultural

lending,

there

was

significant

organizational reinforcement by

with rich potential for such activity. In this direction 6 state-specific and 4 city-specific SME cells were set up. In the area of

agricultural lending, 9 agricultural clusters were formed which focused on agricultural lending. The Bank will continue to:
Open more rural branches as also set up agricultural clusters to

boost its agricultural business.

Create backward and forward linkages for all players in the

agriculture business chain so as to provide composite financing across the food chain. The syndication and underwriting of corporate loan activities of the Bank took off during the year. The Bank experimented with new delivery models for credit, including setting up low cost rural ATMs at Anand, in order to provide convenient and low cost transaction services to the suppliers of milk to the Co-operative. Such application of technology provides customer convenience as well as product innovation. CAPITAL MARKETS The Banks Capital Markets business encompasses investing and trading in corporate debt and equity, and providing several other fee-based services like
Capital restructuring, Placement Syndication, Trusteeship services, Management of public Rights issues, 62 Appraisals Advisory services,

Depository related services, Portfolio management services, Capital market related services.

Future Strategies:
Project advisory services with a focus on infrastructure and other

core sectors.
Financial advisory skills with technical advisory skills by forming

alliances. The Bank also maintains an investment and proprietary trading portfolio in corporate bonds and equities.

SAILIENT FEATURES:
Today 14.6% of our customers are registered for mobile banking. The Bank aims to be a significant player in the cards business.
The debit card base of the Bank grew to 40 lacs during the year

from 30.3 laces.


The Bank was the first Indian bank to introduce the travel currency

card, a foreign denominated pre-paid card, which is positioned as a convenience alternative to the travelers cheque. The card is issued in five currencies: U.S. Dollar, Australian Dollar, Canadian Dollar, Pound Sterling Euro on the VISA flag platform. During 2005-06, foreign currency sales by the Bank through the travel currency card exceeded

US Dollars 63 million. The Bank is also the first to introduce


Remittance Cards, which changes the way inward remittances, are

sent to India.
63

Direct remittances are facilitated via tie-ups with major Banks in the US, UK, Europe and South Asia.
Rewards Card, a pre-paid Rupee card for corporate to facilitate

quick payments to their employees, agents and distributors.

As on 31st March 2006, the Bank has installed 21,084 POS

terminals, as against 12,067 POS terminals at the end of the previous year. The growth of retail and consumer lending in India must be seen as arising from a strong growth in incomes amongst the middle class and the more affluent segments, leading to changes in consumer behavior. As the demographically induced shift is structural rather than cyclical, it is likely to sustain over the medium term and beyond, and constitutes the rationale for the growth in retail lending.