EXECUTIVE SUMMARY

This project gives an overview of the emergence of the Banking industry in India. It covers the most important aspect of the Banking industry today - the Retail Banking segment. It also portrays Banking in India like the Phoenix bird that has risen from ashes, thanks to its Retail Banking segment.

It talks about the history of retail banking and also why banks are turning towards Retail Banking as an option. Also, how Retail credit helps the economy as a whole. In all, its emergence, growth, challenges and finally the future prospects of the same.

The project also talks about the strategies used by Retail banks and the emerging issues for Retail Banking in India. A major portion of the project gives an overview of Axis Bank and the various retail products as the retail assets, retail liabilities and deposits offered by the bank.

This study and the growth of Axis Bank clearly shows how retail banking is here to stay so it can be rightly concluded that Retail banking has a bright future for India.

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INDEX
Sr. no
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17.

Topic
Banking In India Structure Of The Banking System Functions Of A Bank Introduction To Retail Banking History Of Retail Banking Why Retail Banking? Principle Of Retail Banking SWOT Analysis Of Retail Banking Strategies For Success In Retail Banking Emerging Issues In Handling Retail Banking Framework Of Retail Banking Services Advantages And Disadvantages Of Retail Banking Suggestions Challenges To Retail Banking In India Scope For Retail Banking In India The Road Ahead Axis Bank - Promoters - Shareholders - Board Of Directors - Mission And Values - Axis Bank - Fy 2008-09

Page No.
6 - 10 11 12 13 - 14 15 - 16 17 - 20 21 22 23 - 25 26 - 27 28 - 29 30 - 31 32 33 - 34 35 36 37 - 61

18. 19.

Organisation Chart Of Axis Bank - Byculla Branch Retail Liabilities - Savings Accounts - Current Accounts - Deposits

62 63 - 69

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20. 21. 22. 23. 24. 25.

Retail Assets Third Party Products An Account SWOT For Axis Bank Byculla Branch Suggestions Bibliography

70 -76 77 - 78

Documents Required From The Customers To Open 79 - 81 82 - 83 84 85

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BANKING IN INDIA
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India.

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock bank in India. It was not the first though. That honor belongs to the Bank of Upper India, which was established in 1863, and which survived until 1913, when it failed, with some of its assets and liabilities being transferred to the Alliance Bank of Simla. When the American Civil War stopped the supply of cotton to Lancashire from the Confederate States, promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors

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lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.

The Bank of Bengal, which later became the State Bank of India.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in 1895, which has survived to the present and is now one of the largest banks in India. Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities. The presidency banks dominated banking in India but there were also some exchange banks and a number of Indian joint stock banks. All these banks operated in different segments of the economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign trade. Indian joint stock banks were generally under capitalized and lacked the experience and maturity to compete with the presidency and exchange banks. This segmentation let Lord Curzon to

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observe, "In respect of banking it seems we are behind the times. We are like some old fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome compartments." The period between 1906 and 1911, saw the establishment of banks inspired by the Swadeshi movement. The Swadeshi movement inspired local businessmen and political figures to found banks of and for the Indian community. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India. The fervour of Swadeshi movement lead to establishing of many private banks in Dakshina Kannada and Udupi district which were unified earlier and known by the name South Canara ( South Kanara ) district. Four nationalised banks started in this district and also a leading private sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian Banking". Banking in India originated in the last decades of the 18th century. The oldest bank in existence in India is the State Bank of India, a government-owned bank that traces its origins back to June 1806 and that is the largest commercial bank in the country. Central banking is the responsibility of the Reserve Bank of India, which in 1935 formally took over these responsibilities from the then Imperial Bank of India, relegating it to commercial banking functions. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers. In 1969 the government nationalized the 14 largest commercial banks; the government nationalized the six next largest in 1980. The major steps to regulate banking included:

In 1948, the Reserve Bank of India, India's central banking authority, was nationalized, and it became an institution owned by the Government of India. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in India." The Banking Regulation Act also provided that no new bank or branch of an existing bank could be opened without a license from the RBI, and no two banks could have common directors.

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However, despite these provisions, control and regulations, banks in India except the State Bank of India, continued to be owned and operated by private persons. This changed with the nationalisation of major banks in India on 19 July, 1969.

Nationalisation
Nationalisation of 14 largest commercial banks with effect from the midnight of July 19, 1969 took place. Within two weeks of the issue of the ordinance, the Parliament passed the Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on 9 August, 1969. A second dose of nationalisation of 6 more commercial banks followed in 1980. The stated reason for the nationalisation was to give the government more control of credit delivery. With the second dose of nationalisation, the GOI controlled around 91% of the banking business of India. Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is with the Government of India holding a stake), 31 private banks (these do not have government stake; they may be publicly listed and traded on stock exchanges) and 38 foreign banks. They have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the banking industry, with the private and foreign banks holding 18.2 Banking, as defined in Banking regulation Act, is acceptance of deposits for the purpose of lending and investment and not repayable otherwise than on demand. With the limited network of commercial bank, and monopolies of few presidency banks, the business flow was spontaneous and bankers had nothing more to do than banking defined in the statute book, In the Early Banking.

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STRUCTURE

OF

THE

BANKING

SYSTEM

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FUNCTIONS OF A BANK

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Introduction to Retail Banking

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The nationalization of major commercial banks in the late 1960s and early 1980s and the introduction of Lead Bank Scheme resulted in large scale expansion of bank network in the country. Added to this, the financial sector reforms have brought in the entry of new private sector and foreign banks into the country. The conventional banking as outlined above has given way for professional and high-tech banking. There has been a paradigm shift from the monopolies of public sector banks to competitive banking. Public sector banks can no longer remain complacent with their conventional products and services. With walk-in business virtually being ruled out, banks are now scouting for quality consumers, both for building their resources and assets. There were times, when the corporate clientele occupied the centre stage and the retail ones were pushed to the back seat. The slowdown of the economy, sluggish industrial growth and slump in agricultural activities has pushed the commercial banks to the retail customer.

Retail Banking
Definition: Retail banking is banking catering to the multiple requirements of individuals

relating to deposits, advances and associated services.

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Retail banking has both pros and cons. In a situation like today, the bankers have very little option, but to chant the Retail Mantra. Retail banking encompasses retail deposit schemes, retail loans, credit cards, deposit cards, insurance products, mutual funds, depositary services including DEMAT facilities. It includes various products and services forming a part of the assets as well as the liabilities segment of the banks. Retail banking generally refers to offering financial services, products related to deposits and assets to individual customers for personal consumption. Banks concentrate on various segments like professionals, housewives, pensioners, children, salaried class, etc. Different types of products like recurring deposits, savings bank deposits, fixed deposits, credit cards, housing and consumer loans and educational loans are offered by banks to the abovementioned market segments.

History of Retail Banking

Banking industry in India has passed through several stages of change during the past few decades. The traditional system of lending only to the trading community has undergone changes after nationalisation and social banking has taken its root. Mass banking was the order of the day in the 1980s. After globalization, many foreign banks and new private banks have entered into the arena of Indian banking. A shift from mass banking to class banking was noticed in the

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beginning of the last decade. Due to stringent rules regarding NPAs, the banks were engaged in cleaning up their Balance sheet at the end of the last century. Compromise, writing off huge balances, waiver of interest amount were the order of the day. Even the RBI had brought out few One Time Settlement (OTS) schemes. After these developments, banks realized that lending to the big industries or blocking huge funds in a particular segment or lending in bulk is no longer safe. In other words, the old saying Do not keep all the eggs in single basket has gained importance and banks started looking for some new ways and means to spread the risk instead of concentrating on the lending risk. This paved the way for massive expansion under retail lending. In the same way, accepting big term deposits by paying higher rate landed some banks into trouble. In the falling interest rate regime, accepting the bulk term deposits for longer period is quite dangerous. Banks, for mitigating the problem arising out of interest rate risk, started to give more importance to retail segment for collection of deposits so that they can spread the interest rate risk. Thus, due to this background the NBFCs, and banks and lending agencies, all look for Indian household segment for marketing loan and deposit products. In this millennium, the retail banking has gathered momentum. The retail banking has now become the only way and means for the bank. Due to the prevalence of higher risks in bulk lending, which has landed the banking industry in severe problems because of increased NPAs from the particular segment, retail lending, due to its various comparative advantages, has gained much importance in the recent years and banks and NBFCs are now aggressively marketing their different retail lending products. Even in the pre-nationalisation era, Indian Overseas Bank (IOB) was the pioneer in introducing its popular personal loan scheme, which was nothing but an installment credit for purpose of consumer durable items targeted at salaried class. The personal loan concept in different formats has come to stay in the country and the potential for widening the retail segment is far great.

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WHY RETAIL BANKING?

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Traditionally the main function of the banks was to cater to the needs of the business community of the country. but its not the same now due to the following reasons:
Financial Dis-Intermediation -

A scenario has emerged wherein there is a lack of demand for credit from large corporates primarily due to two reasons: Near demise of working capital requirements due to enhancement in activities like productivity and increased sales realization. Corporates have their own avenues, for example, tapping public deposits, issuance of shares and debentures.

Advent Of Economic Liberalisation -

A lot of new players in the banking sector have come up due to privatisation and globalization resulting into competition with each other for market share. The confluence

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increased purchasing power, consumerism and competition with the banks has resulted ina retail chase. Hence the identity of banks has changed from those known for their roles in development of business/ economy to the ones helping in the development of the family.
Competition -

The Reserve bank of India (RBI), prime regulator of financial sector, has removed several artificial barriers which made the banks and the non-banking companies to penetrate into wide range of financial services. The line dividing the banking, insurance and capital market services is disappearing and the commercial banks are offering these services under one umbrella. Banks and non-banks are offering similar retail financial services, for example car loans similarly primary dealers like PNB gilts are offering GOI securities which are complimentary to bank deposits.

Consolidation -

Consolidation is in progress, the huge monolithic organization ICICI is merged with ICICI Bank Ltd. Sometime back Twentieth Century Finance Company a non-banking company is merged with Centurion bank.

Computers And Information Technology -

Traditionally Retail Banking is built on the foundation of physical branch network. Now the technology has emerged as a perfect and effective substitute to physical branches through ATMs, call centers, home banking and internet banking. Several parallel distribution systems have emerged for delivery of services.

Customer Centric -

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Due to increased financial market products like commercial paper and variety of financial instruments big corporate clientele of several commercial banks have shifted their loyalty and have been raising resources from the market directly and commercial banks have become more retail customer centric by offering wide range of services. Banks have identified new customer segments like students, working women, and rich net worth individuals.

Customer Relationship Profitability -

Regulated era has given assured profits to banks, but in the post deregulation period as margins are falling down substantially the banks are concentrating on customer relationships.

Small is beautiful
Does Retail credit help the economy? What matters is what for you is finance and not what against, says Reserve Bank of India quite often. Its implication is obvious: bank finance being scarce and as there are competing claimants, it has to be rationed in the best interest of national economic prosperity, by ensuring that loan funds flow to productive sectors. That is why RBI rightly stresses that purpose orientation and end-use principle are important in lending. If Indian Banking does not face the problems like those of China, South East Asia and Japan, it is principally due to sound lending norms prescribed and supervised by the central bank. Previously consumer finance was not encouraged by RBI. However, things have radically changed. Banks are awash with excess liquidity. Interest rates and inflation are moving southwards. Corporate do not borrow from banks in a big way due to a variety of reasons like economic slowdown, infrastructural constraints, etc. Prime corporates manage to secure subPLR rates. Under these circumstances banks are forced to look into the retail segments for lending and RBI no longer applies any brakes.

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Is retail credit unproductive from the national economy perspective? Certainly not. The spurt in retail credit in sectors like consumer finance, automobiles, two-wheelers, financial services and home loan sector indirectly helps the economy by pushing up the sales of the products and services involved. That is why central bankers now view with favour retail segment lending. This apart, banks also consider retail lending as less risky and more profitable. Banks like ICICI Bank, HDFC Bank, State Bank of India have become aggressive players in retail lending as a consequence. Banks are still competing with each other to further augment the retail credit. Banks have now believed that small is beautiful.

The Flip Side

While banks are agog with augmenting retail credit, there comes the note of caution from RBI. It had cautioned banks way back in august 2002 that they should not go overboard in the housing loan segment. According to RBI all the home loans should not be perceived as risk-free by the bankers. Proper due diligence is necessary while screening the applications to avoid sub-prime crisis in India. Even BASEL committee has expressed its reservations about the booming retail loan segment the world over. As in the case of United States of America, overexposure to housing and other retail sectors could create bubbles in the Indian markets as a consequence to the over spending by the salaried class, followed by subsequent defaults. Perhaps, it is not the time to press the panic button in the Indian context as Indian banks are emphasizing on Risk Management and prudence in lending. May be in the coming years, we will hear more success stories in the retail front.

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PRINCIPLE OF RETAIL BANKING

Retail banking is based on the principle Banking for the people, by the people and of the people

SWOT ANALYSIS OF RETAIL BANKING

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 STRENGTHS:

Tendency to default a retail loan is low as these are backed by mortgages of houses in case of housing loans and post dated cheques in case of other loans like vehicle loans. The housing loan has been proved as a safe advance as a house is considered as the most sensitive and essential asset of a family.

WEAKNESSES:

Longer tenure of loans, ranging from minimum 3 years to 15/20 years as against the average deposits of less than 3 years.

OPPORTUNITIES:

Growth in retail lending has outperformed in other segments in recent years and is expected to continue at much higher rates. Opportunities for banks to offset the demand for funds from the corporate sector. Banks have more opportunities for cross selling of products.

TREATS:

Incidences of concurrent borrowings are on an increase in case of retail loan through credit card/ other routes. Shrinkage in the kitty of no cost (current account) deposits, thereby increasing the average cost of deposits for the bank.

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STRATEGIES FOR SUCCESS IN RETAIL BANKING

Constant product innovation to match the requirements of the customer segments -

The customer database available with the banks is the best source of their demographic and financial information and can be used by the banks for targeting certain customer segments for new or modified product. The banks should come out with new products in the area of securities, mutual funds and insurance.

Quality service and quickness in delivery -

As most of the banks are offering retail products of similar nature, the customers can easily switchover to the one, which offers better service at comparatively lower costs. The quality of service that banks offer and the experience that clients have, matter the most. Hence, to retain the customers, banks have to come out with competitive products satisfying the desires of the customers at the click of a button.

Introduction of new delivery channels -

Retail customers like to interface with their bank through multiple channels. Therefore, banks should try to give high quality service across all service channels like branches, Internet, ATMs,etc.

Tapping of unexploited potential and increasing the volume of business -

This will compensate for the thin margins. The Indian retail banking market still remains largely untapped giving a scope for growth to the banks and financial institutions. With changing psyche of Indian consumers, who are now comfortable with the idea of availing loans for their personal needs, banks have tremendous potential lying in this segment.

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Marketing departments of the banks be geared up and special training be imparted to them so that banks are successful in grabbing more and more of retail business in the market.

Infrastructure outsourcing -

This will help in lowering the cost of service channels combined with quality and quickness.

Detail market research -

Banks may go for detail market research, which will help them in knowing what their competitors are offering to their clients. This will enable them to have an edge over their competitors and increase their share in retail banking pie by offering better products and services.

Cross-selling of products -

PSBs have an added advantage of having a wide network of branches, which gives them an opportunity to sell third-party products through these branches.

Business process outsourcing -

Outsourcing of requirements would not only save cost and time but would help the banks in concentrating on the core business area. Banks can devote more time for marketing, customer service and brand building. For example, Management of ATMs can be outsourced. This will save the banks from dealing with the intricacies of technology.

Tie-up arrangements -

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PSBs with regional concentration can reap the benefit of reaching customers across the country by entering into strategic alliance with other such banks with intensive presence in other regions. In the present regime of falling interest and stiff competition, banks are aware that it is finally the retail banking which will enable them to hold the head above water. Hence, banks should make all out efforts to boost the retail banking by recognizing the needs of the customers. It is essential that banks would be imaginative in predicting the customers' expectations in the ever-changing tastes and environments. It is the innovative and competitive products coupled with high quality care for clients will only hold the key to success in this area. In short, bankers have to run very fast even to stay where they are now. It is the survival of the fastest now and not only survival of the fittest.

Other Strategies
Advance technology and adoption of this latest technology. Skilled manpower in all branches and offices. Balanced and sustained growth in deposits and advances. Strategic cost management. Market research and market intelligence, in order to formulate competitive and innovative products. Risk management. Customers relationship management.
Banks should share the existing networks and services.

Universal banking/Financial super markets. Service quality with a human touch. Customer base should be strengthened.

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 More and more customers be encouraged to shift from paper to plastic so that usage of new delivery channels increases.

EMERGING ISSUES IN HANDLING RETAIL BANKING

Knowing the customer -

Each branch should set up dataware house wherein meaningful data on customers, their preferences, spending patterns, etc can be mined. But especially in India which is easier said than practiced.

Technology issues -

Retail banking calls for huge investments in technology, for example, providing anytime, anywhere convenience to vast number of customers, and delivery channels through ATMs which requires a huge investments by the banks. Also customers nowadays prefer net banking to branch banking. The banks which are slow in introducing technology based products, are finding it difficult to retain the customers who wish to opt for net banking. Inspite of investing heavily in technology, banks are not yet able to exploit the same to the fullest.

Product innovation -

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The need for introduction of innovative products and services is high in the banking sector. Products should be introduced to create value, not amusement. The days of selling products on the shelf are gone in the banking sector.

Pricing of products -

The banking sector is witnessing pricing war, with each bank wanting to have a larger slice of the market share. The much needed transparency in pricing is also missing with many hidden charges. For example, Minimum amount due and Total amount due in the credit card application form; and processing charges are not advertised.
Issues related to human resources -

- Motivating the frontline staff by projecting them as sales mangers of products rather than as clerks at work. Changing the image of the bank from a transaction provider to a solution provider.

Low cost and low cost deposits -

Bank managers are in need of more savings bank and current accounts so that their cost of liability will be less. Three AAAs (Anytime, Anywhere and Anyhow banking) With the advent of ATMs Anytime banking has become a reality.

Satellites and telecom networks across the world have made Anywhere banking possible.

Now is the time for Anyhow banking.

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FRAMEWORK OF RETAIL BANKING SERVICES

Banking services can be divided into 3 categories from the dimension of retail banking 1. Core services 2. Facilitating services 3. Supporting services Core service is the reason for being the market, facilitating service are needed so that the core service can be used, and supporting services exactly discriminates the service package from the services of the competitors.

CORE SERVICES

FACILITATING SERVICES

SUPPORTING SERVICES

Payment services :

Cash Foreign requirements Traveler cheques currency

Making payments at doorsteps Internet banking Telephone banking

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 Current account & Savings account :

DDs/ Bankers cheques Electronic Transfer (EFT) TT Letter of Credit ATM cards Standing from instructions for customers Credit cards Debit cards Services to citizens Telephone banking Internet bvanking Conversion of excess balance in time deposits Delivery of loan at promised time period Interest rate option: fixed/floating Flexibility prepayment of loan Counseling on real estate markets Legal services for documentation ECS for payment of loan installment Additional insurance facility members Counseling on post retirements savings for family in senior Funds

making payments Interbranch / interbank transfer of funds Safety vault

Loan products : Consumer loans, loans Personal loans, Housing loans, Educational

Current account Savings account Time deposit account

Insurance products : Life insurance from a pension scheme

Current account Savings account Time deposit Safety vaults

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ADVANTAGES OF RETAIL BANKING

Retail banking has inherent advantages outweighing certain disadvantages. Advantages are analysed both from the asset angle and the resource angle -

Resource
Stable core deposits
Less bargaining for additional interests

Low cost funds Bills customer based Increases subsidiary business

A safe and convenient saving avenue

Asset
Better yield and improved bottomline Good avenue for funds deployment

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 Lower risks and NPA perception

Helps economic revival of the nation through increased production activity

Improves lifestyle and fulfills aspirations of the people through affordable credit Innovative product development

Minimum marketing efforts in a demand driven economy Risk weight in certain segments like housing loans

DISADVANTAGES OF RETAIL BANKING

Retail banking, thought by and large, is very handy in times of sl9ow credit off take, is not without disadvantages. A major disadvantage is monitoring and follow up of huge volumes of loan amounts. Housing loans by virtue of its long repayment term in the absence of proper follow up, can become NPAs. However, by tightening the follow up mechanism this can be checked to a very great extent.

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SUGGESTIONS
Depending on the quantum of loan and credit rating, the customers who have been associated with the bank for a specific period should be granted certain advantages like softer repayment terms/schedule, especially for availing housing schemes.

Upgrade the profitability mix of borrowers (Retail v/s Wholesale) to know the

behavioural services.

pattern, primarily through a separate marketing cell on loan products and

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CHALLENGES TO RETAIL BANKING IN INDIA

The issue of money laundering is very important in retail banking. This compels all the banks to consider seriously all the documents which they accept while approving the loans.

The issue of outsourcing has become very important in recent past because various core activities such as hardware and software maintenance, entire ATM set up and operation (including cash, refilling) etc., are being outsourced by Indian banks.

Banks are expected to take utmost care to retain the ongoing trust of the public.

Customer service should be at the end all in retail banking. Someone has rightly said, It takes months to find a good customer but only seconds to lose one. Thus, strategy of Knowing Your Customer (KYC) is important. So the banks are required to adopt innovative strategies to meet customers needs and requirements in terms of services/products etc.

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 The dependency on technology has brought IT departments additional responsibilities and challenges in managing, maintaining and optimizing the performance of retail banking networks. It is equally important that banks should maintain security to the advance level to keep the faith of the customer.

The efficiency of operations would provide the competitive edge for the success in retail banking in coming years.

The customer retention is of paramount important for the profitability if retail banking business, so banks need to retain their customer in order to increase the market share. One of the crucial impediments for the growth of this sector is the acute shortage of manpower talent of this specific nature, a modern banking professional, for a modern banking sector. If all these challenges are faced by the banks with utmost care and deliberation, the retail banking is expected to play a very important role in coming years, as in case of other nations.

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SCOPE FOR RETAIL BANKING IN INDIA

All round increase in economic activity

Increase in the purchasing power. The rural areas have the large purchasing power at their disposal and this is an opportunity to market Retail Banking.

India has 200 million households and 400 million middleclass population more than 90% of the savings come from the house hold sector. Falling interest rates have resulted in a shift. Now People Want To Save Less And Spend More.

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 Nuclear family concept is gaining much importance which may lead to large savings, large number of banking services to be provided are day-by-day increasing.

Tax benefits are available for example in case of housing loans the borrower can avail tax benefits for the loan repayment and the interest charged for the loan.

THE ROAD AHEAD

Success of bank depends mainly on anticipating and exceeding customers expectations. Retail Banking will witness far more challenging and competitive market place and it will grow in keeping with economic advancement. Hence, product and marketing thrust will have to be maintained and upgraded through innovative measure on an on-going basis. A combined strength of good branch network and IT enabled electronic delivery channels will have to be harnessed to meet the emerging customer needs and delivery capabilities. The question now is that of retaining the customers, more important than attracting customers. In order to retain them, banks need to offer what they desire at the click of button. More importantly, products need to be competitive. Today, banks face competition from virtual banks whose lower overhead costs means ability to pay higher deposit

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rates and charge lower loan and service rates. At the same time, the product profile of bank is equally important. Retaining clients means offering more than what a traditional bank does. The customer looks for customised and personalized facilities like service bill payment, mutual funds, insurance, advisory services, broking services, etc. the four pillars of the customer centricity for retail financer will have to be - Accessibility - Affordability - Convenience - Customer relationship management More importantly the customer relationship management will be future differentiators in the market place. To gain any kind of foothold in the retail finance market, banks will have to learn that change should not be limited to product profile and competitive pricing. Service and speed of delivery are equally important. Moreover, the credit is no longer a scarce commodity and the bankers are operating in the buyers market. Now almost all the banks are laying major thrust in terms of retail lending and this mainly attributed to the fact that the customer is the key in the industry. In view of the above, retail banking is all set to change the nuances of basic banking in a major way, as retail consolidation promises to be a powerful catalyst in managing the overall transformation of Indian banking.

AXIS BANK
Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 359.00 crores with the public holding (other than promoters) at 57.60%.

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The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 827 branches and Extension Counters (as on 31st March 2009). The Bank has a network of over 3595 ATMs (as on 31st March 2009) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.

PROMOTERS
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. SUUTI - Shareholding 27.08% 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

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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 Government of India has currently appointed Shri K. N. Prithviraj as the Administrator of the Specified undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing obligations and commitments to the investors, which it will uphold.

SHAREHOLDING

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 Share Capital - Rs. 359.01 crores

Net Worth - Rs. 9,757.45 crores

Book Value per share - Rs. 284.50

Market Price as on 17/04/09 - Rs. 503.25

Market Cap as on 17/04/09 - Rs. 18,067 crores (US $ 3.63 billion)

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BOARD OF DIRECTORS
The members of the Board are: Shri N.C. Singhal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri Ramesh Ramanathan Shri K. N. Prithviraj Director Director Director Director Director Director Director Director

MISSION AND VALUES

Mission

Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.

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 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
-

Providing quality service effectively and efficiently "Smile, it enhances your face value" is a service quality stressed on Periodic Customer Service Audits

Maximisation of Stakeholder value

Success through Teamwork, Integrity and People

AXIS BANK FY 2008-09

Highlights

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Quarter 4 Net Profit Net Interest Income Fee Income Operating Revenue Operating Profit Net Interest Margin Cost of Funds 61% yoy (Increase) 25% yoy (Increase) 42% yoy (Increase) 36% yoy (Increase) 58% yoy (Increase) 3.37% 6.64%

FY 09 69% yoy (Increase) 43% yoy (Increase) 64% yoy (Increase) 50% yoy (Increase) 67% yoy (Increase) 3.3% 6.50%

Interpretation of Q4 Performance
Rapid Growth in the Banks core businesses Total Net Advances grow 37% yoy to Rs. 81,557 crores Total Investments grow 37% yoy to Rs. 46,330 crores Total Assets register a 35% yoy growth, rising to Rs. 1,47,722 crores Fees grow by 42% yoy, rising to Rs. 664.40 crores

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Share of demand deposits in total deposits at 43%

Retail Assets grow by 18% yoy to Rs. 16,052 crores; constitute 20% of total advances, as

compared to 23% as on end March08

Net NPAs at 0.35%, compared to 0.36% as at end March08

At end March09, Book Value per share was Rs. 284.50, compared to Rs. 245.14 as at

end March08.

Capital Adequacy at 13.69% with Tier I capital at 9.26%

Profitability
Sustained Growth: Robust Core Revenues

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Note: Core Operating Revenue / Profit excludes trading gains/losses. (Rs.crores)

Consistent Net Profit Growth

Over 30% yoy growth in Net Profit in 35 out of the last 37 quarters Over 60% yoy growth in Net Profit in each of the last 7 quarters

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Net Interest Margins & Cost Funds

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Growing net interest income

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Growing Demand Deposits

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Fee Income Composition

48% YOY Fees have grown very strongly in all businesses

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Trading Profits
Constitute 8.85% of Operating Revenue in Q4.

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Network

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Branches
Metro Urban Semi - Urban Rural Total 273 324 186 44 827

Extn. Counters
6 2 0 0 8

Business Banking - Cash Management Services

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 Collection of Central Government Taxes on behalf of CBDT and CBEC, including through e-payments.

Collection of State Taxes on behalf of seven State Governments and UTs.

Collections & Payments for Central Government Ministries - Railways, Urban Development and Housing & Urban Poverty Alleviation.

Collections under e-Governance initiatives of 4 State Governments and Chandigarh.

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Business Banking - Current Account Growth

Wide Range of Products

Customised offerings for various business segments

Growth aided by Club 50 and Channel One high-end premium products

Broad-based sales strategy

Focused approach for Corporates, Institutions & Government

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Treasury

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Savings bank growth

Savings Bank growth led by: Wide Network - Branch and ATM Channel reach

Banks own sales channel

Focused strategy for niche customer segments

Corporate and Government payroll accounts

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Retail Assets

Retail Assets grew by 18% yoy

Retail Assets constitute 20% of the Banks total advances, as compared to 23% as at end March 08

Growth driven through Retail Asset Centres (RACs)

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Composition of Retail Assets

Product-wise composition of Retail Assets portfolio (March 09)

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Card Business

Issuance - Over 533,000 Credit Cards in force till end March 09. - 3rd largest Debit Card base in the country. - 1st Indian Bank to launch Travel Currency Cards in 9 currencies -US$, Euro, GBP, AUD, CAD, SGD, SEK, CHF, JPY. - 1st Indian Bank to launch Remittance Card and Meal Card. Acquiring - Installed base of over 115,000 EDCs.

Cards business a significant contributor to Retail Fees.

ATM Channel Migration

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Over 95% of SB account cash withdrawals occur on ATMs

Pioneer in ATM sharing arrangements

Value added services such as Bill Payments, MF Investments, Mobile Top-ups and VISA Money Transfer services

International Presence

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 Branches at Singapore, Hong Kong and DIFC, Dubai

Representative offices at Shanghai and Dubai

Total assets overseas amounted to US$ 2.30 billion as compared to US$ 1.66 billion as at end March08, a growth of 39% yoy

Corporate Banking, Trade Finance products, Debt Syndication and Liability businesses

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Shareholders Returns

Annualised ROE of 24.38% in Q4 FY09, as compared to 21.24% in Q3 FY09 and 17.28% in Q4 FY08.

ROA of 1.68% in Q4 FY09, as compared to 1.48% in Q3 FY09 and 1.43% in Q4 FY08.

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ORGANISATION CHART AS APPLICABLE TO AXIS BANK BYCULLA BRANCH WITH EFFECT FROM MAY 05,2009.
Mr Deekshitulu (Branch Manager/Head)

Mr. Aziz (Operations Manager)

Mr. Makhija (Sales Manager)

Ms. Divya Bajpayee (Deputy Manager) - Ms. Pushpa Nair (Relationship Manager) - Mr. Rishikesh Kadam
(Cash Officer) - Ms. Diana Fernandes (Cash Officer) - Ms. Nicelin Dsouza (Front Desk Officer) - Ms Jennifer Gandhi (Front Desk Officer) - Ms. Manali Adkar (Receptionist)

- Mr. Shivesh Kumar (Business Development Executive) - Mr. Mihir Dhruv (Business Development Executive) - Mr. Ronak Mehta (Business Development Executive)
- Mr. Fakre Alam Ansari

(Business Development Executive)

- Mr. Danish Ahmed

(Business Development Executive)

- Mr. Hari. M. Ahire

(Business Development Executive)

Support Staff Mr. Shivkumar Sharma Mr. Santosh Mr. Sunil Mr. Ashok Singh

RETAIL LIABILITIES

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A) SAVINGS ACCOUNTS Scheme Type

Zero Balance Savings Account Zero Balance Salary Savings Account NRI Normal NRI Prime NRI Priority Easy Access Savings Account Prime Savings Account Priority Savings Account Smart Privilege Account (For women) Senior Privilege Account (For Senior Citizens) Savings with DEMAT Account No Frills Account

Quarterly
NIL NIL 5,000 25,000 100,000 5,000 25,000 100,000 10,000 10,000 1,000 NIL

Average

Balance

Requirement* (in Rs.)

B) CURRENT ACCOUNTS Scheme Type

Local Current Account (CALCA) Normal Current Account (CANOR) Business Advantage Account (CAADV) Business Classic Account (CABCL) Business Privilege Account (CABPL) Channel one Account (CACH1)

Monthly/ Half yearly Average Balance Requirement *(in Rs.)

NIL 10,000 25,000 100,000 500,000 1,000,000

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Club 50 Account (C50) Special Accounts - Builder and Real Estate - Shipping and Maritime - Pharmaceutical Diagnostic and Chemist -Business Global Account -For Chartered Accountants -Travel, Tourism and Hospitality -KRISHI (Urban) (Semi - Urban) (Rural)

5,000,000 (HAB) Monthly/ Half yearly Average Balance

Requirement *(in Rs.) 500,000 500,000 NIL NIL NIL 100,000 (HAB) 10,000 (HAB) 5,000 (HAB) 2,500 (HAB)

Capital Market Account

Normal Current Account (CAPNOR) Business Advantage Account (CAPADV) Business Classic Account (CAPBCA) Business Privilege Account (CAPBPL) Channel one Account (CAPCH1)

Monthly Average Balance *(in Rs.)

10,000 25,000 100,000 500,000 1,000,000

* Monthly Average Balance (MAB) Depending upon the type of account chosen, MAB is to be maintained. The day end balances of all the days are summed up and then divided by the number of days in the month to arrive at the MAB for that month. For instance: If the account requires an MAB of Rs.10,000. If the customer deposits Rs. 300,000 on the first day of account opening and withdraws it the next day, the customer has sufficed the requirement. Rs.300,000 /30days = Rs. 10,000 MAB = Rs. 10,000. Quarterly Average Balance (QAB) - Same as MAB but this is calculated on quarterly basis by adding up all the day end balances and dividing it by the number of days in that quarter.

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Half yearly Average Balance (HAB) Same as MAB but this is calculated on the six-monthly basis by adding up all the day end balances and dividing it by the number of days in those six months.

C) DEPOSITS Schemes
Term Deposits : Also known as Fixed deposits or time deposits, are deposits kept for fixed period and are repayable on expiry of fixed period.

Features
The bank decides the rate of interest in term deposits of various maturities from time to time by taking into account the directives from RBI in this regard. The RBI guidelines provide discretion to banks to offer term deposits from minimum period of 7 days to maximum of 120 months (10 yrs)

Short Term Deposits : As the name indicates are accepted for short period and interest is paid on the deposit on simple basis.

The minimum period for which short term deposit can be expected is 7 days and the maximum period is less than 6 months.

Rate of interest for term deposits advised by central office for deposits of various maturities and amount slabs are applicable to short term deposits. Interest is on simple basis without

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compounding. Reinvestment certificate : It is the most popular form of term deposit. It is a cumulative deposit scheme, where the interest is compounded on quarterly basis and is paid with the principal on maturity.

The minimum period for which these certificates can be invested is 6 months and maximum period is 120 months (10 yrs) Rate of interest for term deposits advised by central office for deposits of various maturities and amount slabs are applicable to reinvestment certificates.

Monthly Interest certificate : It provides fixed monthly income by way of interest to the depositor for a specified period leaving the principal amount of deposit intact.

The minimum period for which the monthly interest certificate can be accepted is 12 months and maximum period is 120 months (10 yrs).

Rate of interest for term deposits advised by central office for deposits of various maturities and amount slabs are applicable certificates. to monthly interest

Quarterly interest certificate : It provides fixed quarterly income by way of interest to the depositor for a specified period leaving the principal amount of deposit intact.

The minimum period for which the quarterly interest certificate can be accepted is 12 months and maximum period is 120 months (10 yrs).

Rate of interest for term deposits advised by central office for deposits of various maturities and amount slabs are applicable certificates. to quarterly interest

Encash 24-FlexiDeposit : It gives a liquidity of a savings account coupled with high earnings

As soon as the balance in savings account crossed over 25000, the excess,

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of a fixed deposit. This is achieved by creating a fixed deposit linked to a savings account.

in multiples of 10000 is transferred automatically to term deposits account. The maturity of this fixed deposit can be for a maximum period of 181 days The interest will be calculated on simple interest rate basis.

Power

24-Term

deposit

with

overdraft

The rate of interest would be as advised by the central office from time to time for advances against term deposits.

facilities in savings/current accounts : It allows an overdraft facility in savings or current account of the depositor against his/ her term deposits with the bank. Recurring Deposit : It enables a depositor, particularly in a fixed income group, to save by paying into the account an agreed fixed amount monthly over a stipulated period.

The recurring period accounts can be opened for a period of 12 months and in multiples of 12 months thereafter, upto a maximum of 120 months (10 yrs). Rates of interest for other term deposits of similar maturities are also applicable to recurring deposits. Interest is applied on quarterly compounding basis.

Senior Citizen scheme : The RBI permits banks to offer preferential rate of interest on deposits of senior citizens. Axis Bank offers a preferential/higher rate of interest for certain maturities to senior citizens for term deposit schemes.

Rate of interest for term deposits advised by central office for deposits of various maturities and amount slabs.

The deposits under the scheme can be accepted for a minimum period of 6 months and a maximum period of 120 months (10 yrs)

Tax saver Term Deposit scheme : In the Finance Bill of 2006, the government has

The term deposit under this scheme has a fixed term of five years. Since there is

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announced tax benefits for a scheme called Bank Term Deposits Scheme 2006 under section 80C of IT Act,1961. Thus this new term deposit product has been introduced.

an underlying tax advantage under section 80C of IT Act, there is a lock in period of atleast five years on the FD under the scheme. The rates of interest for the deposit under the scheme are as announced by the treasury department from time to time. Interest is paid at quarterly intervals at the rates applicable at the time of acceptance

RETAIL ASSETS
One of the prominent features of Retail Banking products is that it is a volume driven business. Further, Retail Credit ensures that the business is widely dispersed among a large customer base unlike in the case of corporate lending, where the risk may be concentrated on a selected few

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plans. Ability of a bank to administer a large portfolio of retail credit products depends upon such factors :

Strong credit assessment capability -

Because of large volume good infrastructure is required. If the credit assessment itself is qualitative, than the need for follow up in the future reduces considerably.
Sound documentation -

A latest system for credit documentation is necessary pre-requisite for healthy growth of credit portfolio, as in the case of credit assessment, this will also minimize the need to follow up at future point of time.
Strong possessing capability -

Since large volumes of transactions are involved, today transactions, maintenance of backups is required
Regular constant follow- up -

Ideally, follow up for loan repayments should be an ongoing process. It should start from customer enquiry and last till the loan is repaid fully.
Skilled human resource -

This is one of the most important pre-requisite for the efficient management of large and diverse retail credit portfolio. Only highly skilled and experienced man power can withstand the river of administrating a diverse and complex retail credit portfolio.
Technological support -

This is yet another vital requirement. Retail credit is highly technological intensive in nature, because of large volumes of business, the need to provide instantaneous service to the customer large, faster processing, maintaining database, etc. The various schemes under which these Retail Assets are classified by Axis Bank are provided in the below table -

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Schemes

Features
against term deposits is

Advance against term deposits Advance against term deposits : The facility Advance of advance against security of deposits is one of the important features of term deposits of banks. The facility can be granted at any time during the currency of the deposits.

subject to the margins stipulated by central office from time to time. At present the advance can be granted upto 85% of the face value of the deposit plus upto date accrued interest i.e. with a margin of 15%. Interest on advance against term deposits should be charged at per the rates advised by the Central Office from

time to time. Advance against postal certificates, GOI relief bonds and life insurance policies Advance against National Savings Minimum amount of advance that can Certificate be granted under the facility is Rs. 20000 and maximum is Rs. 1000000. Interest on advance against NSCs should be charged as per the rates advised by the Central Office from time Advance against Kisan Vikas Patra (KVP) to time. Minimum amount of advance that can be granted under the facility is Rs. 20000 and maximum is Rs. 1000000. Interest on advance against NSCs should be charged as per the rates advised by the Central Office from time to time. For demand loans, the LNKVP:LNKVP-KISAN VIKAS PATRA scheme may be opened.

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Advances against GOI relief bonds

For individuals, HUF and proprietorship concerns the minimum loan amount is minimum 1 lakh and maximum 20 lakhs.

For partnership firms and corporate the minimum loan amount is 5 lakhs and maximum is 10 crores.

Interest on advance against Relief Bonds should be charged as per the rates advised by the Central Office from time to time. Advances against

Advance against Life Insurance policies

LIP

are

to

be

sanctioned for a minimum loan amount of Rs. 20000 and maximum loan amount of Rs. 1000000. Interest on advance against LIP should be charged as per the rates advised by the Central Office from time to time. Empower-Advances against dematerialized shares and units of Mutual funds Empower-Advances against dematerialized The minimum amount of advance that shares can be granted under the scheme is Rs. 1 lakh and maximum amount is Rs. 20 lakhs. Interest on the advance should be charged as per the rates advised by the Advance against units of Mutual Funds Central Office from time to time. The minimum amount of advance that can be granted under the scheme is Rs. 25000 and maximum amount is Rs. 20 lakhs. Interest on the advance should be charged as per the rates advised by the

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Power Home-Home Loans : Housing finance is granted by th bank under the brand name Power Home. It is one the major components of retail credit portfolio and has large potential for building up long term secured assets.

Central Office from time to time. The loan under the scheme can be considered for a minimum amount of Rs. 1 lakh and maximum Rs. 50 lakhs.

Power Homes can be granted on the basis of fixed rate of interest or the floating rate of interest as per the choice of the customer. The interest rate schedules of both these types of rates as advised by the Central Office from time to time should be followed. The floating rate is normally linked to the Mortgage

Loan against property

Reference Rate. Loan against property The loan under the scheme can be considered for a minimum amount of Rs. 2 lakhs and maximum of Rs. 150 lakhs. The interest rate schedules as advised by the Central Office from time to time should be followed. The loan against the scheme can be considered for a minimum amount of Rs. 2 lakh and a maximum of Rs. 100 lakhs. The loan under the scheme can be granted at present only on floating rate of interest. The interest rate schedules as advised by the Central Office from

Loan against third party property :

It

facilitates providing loan against residential and commercial property in the name of third party

time to time should be followed. Power loans-Car loans and two wheeler loans Power Drive-Car loans : Car finance is an The interest rate schedules as advised

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important component of retail banking product portfolio of banks. In Axis Bank car loans are offered under the product name Power Drive. Two wheeler loans

by the Central Office from time to time should be followed. The interest rate schedules as advised by the Central Office from time to time

should be followed. Personal Power-Personal loan Personal loan : Personal loans are the major The bank has the following main sub components of retail credit and has large potential for building up remunerative asset portfolio. categories and product variants under Personal Powera) Subsection -salaried individual normal -Salaried individual professional -Salaried doctors -LIC agents -Self employed Doctors -Self Employed Professionals -Self Employed Normal b) Variants -Top up Loans -Balance Transfer -Repayment Track Record -Life Insurance Policy -Credit Card Program -Express Loans -Prompt Payment Discounts Consumer Power-Consumer Loans Consumer Loans : Consumer loans are The interest rate schedules as advised offered by the bank under the name Consumer Power by the Central Office from time to time should be followed. The loan under the scheme can be considered for a minimum amount of

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Rs. 25000 and maximum amount of Rs. 2 lakhs. Study Power-Education Loan Study Power-Education Loan : The product The interest rate schedules as advised aims at providing financial assistance to students who have obtained admission to different courses for pursuing higher education in India and abroad. by the Central Office from time to time should be followed. The minimum amount, subject to eligibility that can be considered for the loan is Rs. 50000. The maximum limit for granting loan for studies in India is Rs. 10 lakhs and Rs. 20 lakhs for studies abroad. Medical equipment financing Medical equipment financing : It is for Self The minimum amount of loan that can Employed Doctors. It provides finance to them for purchase of medical equipments or for transferring their existing medical equipment loan to Axis Bank. be granted under the scheme is Rs. 1 lakh and maximum amount is Rs. 150 lakhs. The rate of interest is linked to the

prime lending rate. Card Power Card Power : Its a credit product for Subject to the actual assessment of the financing the credit/debit card receivables of Merchant Establishments (ME) who install EDC machines of Axis Bank. eligible limits, the finance under the scheme , can be granted for a -minimum amount of Rs. 2 lakhs at rural and semi urban centres and rs. 5 lakhs at all other centres and -Maximum of Rs. 100 lakhs The interest rate schedules as advised by the Central Office from time to time should be followed.

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THIRD PARTy PRODUCTS

Met Life Insurance Bajaj Allianz Reliance Infrastructure Mutual Fund ICICI Prudential Mutual Funds (SIP) Mohur HDFC Mutual Fund TATA-AIG Mutual Fund UTI Dividend yield

The following are the strategies adopted to promote third party products:

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 Focus on cross-selling to existing customers to generate fee income Third-party products sold include: Mutual Funds, Insurance, On-Line Broking,Portfolio Management Services(Non-discretionary), Gold Coins and Depository services Systematic segmenting of customers Description Mass Market Mass Affluent Affluent

Profile

Largest customer segment within the Bank

Small, but growing, base of customers

Niche customer base

Focus

Transactions-driven crosssales of products

Transactions-driven, but with initial relationships being built

Total focus on relationships which results in cross-selling

Products

Bundled insurance with home loans and credit cards

Customer needs mapped on to existing standardised portfolios

Customised Portfolios

Documents required from the customers to open an account

INDIVIDUAL

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1) PAN Card / PAN Intimation Letter / GIR No. / Form 60 AND 2) Any one of the following - Passport - Voter ID Card - Driving license HUF 1) PAN Card of the HUF / PAN Intimation Letter / GIR No. / Form 60 AND 2) Any one of the following - Passport of the Karta - Voter ID Card of the Karta - Driving License of Karta

PROPRIETORSHIP 1) PAN Card / PAN Intimation Letter / GIR No. / Form 60 of the proprietor AND 2) Any one of the following - Sales tax / Shops & Establishments Registration Certificate - Electricity / Telephone Bill of Firm / Proprietor - Acknowledged IT return with Firms address

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 PARTNERSHIP 1) PAN Card / PAN Intimation Letter / GIR No. / Form 60 AND 2) Partnership Deed AND 3) Any one of the following - Shops & Establishments Registration Certificate - Electricity / Telephone Bill of Firm - Acknowledged IT return with Firms address

TRUST 1) Certified true copy of Trust Deed AND 2) List of names of the Office-Bearers/Trustees AND 3) Resolution signed by the Managing Trustee AND 4) PAN Card / GIR No.

ASSOCIATION/CLUB/SOCIETY 1) List of name of the office bearers

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AND 2) Certified true copy of Registration Certificate (if registered) and Bye-Laws AND 3) Resolution signed by the Chairman/President AND PAN Card / GIR No. of the Association / Club / SocietyIMITED COMPANY 1) Certified true copy of the Certificate of Incorporation AND 2) Certified true copy of Memorandum & Article of Association AND 3) List of Directors and copy of Form 32 (if directors different from AOA) AND 4) Certified true copy of the board resolution AND 5) PAN Card / GIR No. AND 6) Certified true copy of the Certificate of Commencement of Business (public limited companies)

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SWOT FOR AXIS BANK BYCULLA BRANCH

Strengths:
Popularity of Axis Bank as a brand. Dedicated and skilled staff. Well maintained ATM centre. Good working environment and work culture.

Weakness:
Lack of knowledge about banking services in the local population. High level of illiteracy in the local population.

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Inability of the customers to provide the required documents. Lack of enough savings by the localites making it difficult to maintain the minimum

average balance. Too many formalities as compared to the other branches.

Opportunities:
Large untapped market. Scope to introduce more products and services. Scope of more processes to be brought under this branch.

Threats:
Branches of other banks operating in the area. Competition with nationalized banks.

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SUGGESTIONS
Reduction in charges for Inter branch transactions. Increasing advertising (Axis Bank only advertised when it changed its name from UTI Bank to Axis Bank). Targeting different classes of people of the society. Waiver of minimum balance requirement in case of Fixed Deposits, of certain amount, maintained with the bank.

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BIBLIOGRAPHY
www.wikipedia.org

www.axisbank.com ICFAI book (Retail Banking) Professional Bankers

www.rbi.org www.investopedia.com

Economic Times

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