Axis Bank Aapka Solution

Banking On Technology & Market Segment For Competitive Space

ABOUT Axis Bank

Dr. Adarsh Kishore Chairman Smt. Shikha Sharma Managing Director & CEO

ABOUT Axis Bank

Incorporated as UTI Bank, headquartered in Mumbai First Branch inaugurated at Ahmadabad Completes first profitable year in operation in 1995 Deposit crosses Rs.10bn mark in 1996

.
Opens its first international branch in Singapore Opens Representative Office in Shanghai Crosses the 2,000 ATM mark in 2006 Opens a Full Licence Bank Branch in Hong Kong Re-brands itself as Axis Bank Mumbai, Jul 30 2007 : Join with UTI Bank

Current Shareholding Pattern of Axis Bank

.

 The Axis banks business is divided into four segments: Retail, corporate, treasury and merchant banking. Apart from this the bank is also into insurance, investment banking, credit financing, credit cards, and depository services etc .

Services
Retail banking
Deposits schemes Loans and advances
Personal loans Housing loans Cards Consumer durables Auto loans

Personal banking
Accounts
Term deposit Fixed deposit Recurring deposit

Cards
Different variant like: Gold plus card, Gold card, Silver & silver plus cards.

Corporate banking
Accounts
Normal Current Account Trust/NGO Savings Account

Services
Private Equity, Mergers & Acquisitions Advisory Services Capital Market Funding E-Broking

Axis Bank Performance

As on the year ended March 31, 2010 the Bank had a net profit of Rs 2514.53crores
The bank now has 1035 branches including extension networks across 30 States and 4 Union Territories.

 The bank also has overseas offices in Singapore, China, Hong Kong and Dubai. Crosses the 4,293 ATM mark in Mar 2010 Axis Bank share is now trading at Rs 1359.00 (18th Aug2010).

Axis Financial Position

Rs in crs.

Particulars
Deposits Advances

Mar 07
58,785.60 36,876.48 281.63 3,402.21 120.80

Mar 08
87,626.22 59,661.14 357.71 8,770.69 245.19

Mar 09
117,374.11 81,556.77 359.01 10,214.80 284.53

Share Capital Net worth

Book Value Interest earned Interest expenditure Net profit Net NPAs Total Assets Return on Assets

4,560.40 2,993.32
659.03 0.61% 73,257.21 1.10%

7,005.32 4,419.96
1,071.03 0.36% 109,577.84 1.24%

10,835.49 7,149.27
1,815.36 0.35% 147,722.06 1.44%

Axis Bank Ratio Analysis

Particulars Mar 07 11.57 12.01 23.26 19.37 4.01 0.03 1.07 23.40 Mar 08 13.73 12.22 26.20 12.21 4.74 0.02 1.17 29.94 Mar 09 13.69 13.31 24.95

Capital Adequacy Ratio

Net profit margin Operating Expense / Total Inc Return on Net worth (%) Net Interest Income/total funds Non Interest Income/total funds Net Profit / Total Funds Earning per share Equity Dividend (%)

17.77
4.98 0.06 1.41 50.57

45.00

60.00

100.00

Comparative Ratio Analysis

Particulars Capital Adequacy Ratio Net profit margin Operating Expense / Total Inc Return on Net worth (%) Net Interest Income/total funds Net Profit / Total Funds Earning per share Equity Dividend (%) Net Interest margin (%) Axis 13.69 13.31 24.95 17.77 HDFC

13.60% 11.35
35.06 15.32 6.86 1.42 52.77 100.00 4.40

4.98 1.41
50.57 100.00 3.33

Comparative Reach Analysis

Banks Axis Branches 1035 ATMs 4293 Cities 515

HDFC ICICI

1416 950

3382 3500

550 21,408

Axis Bank
Marketing Overview

Mission
Customer Service and Product Innovation tuned to diverse needs of individual and corporate customers. Continuous technology up gradation while maintaining human values. Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices.

Marketing Objectives
Axis Bank want to achieve following marketing objectives by the end of the year 2011. To get the market capitalization 500 Crore To get the 200 Crore retail investment. To get 125 Crore Corporate investments. To get the 175 Crore Capital investments.

Axis Bank Shift In Strategy

A. Corporate assets being the focus area B. Focus on retail finance segment C. Physical & Technology infrastructure improvement

Current Strategy
A. B. C. D. E. Managing the changing customer needs Risk Management Dealing with regulations Keeping pace with technology Product and service innovation

Complementary Strategies for Business Growth & Development

Strategic grouping and joint partnerships Tie up with Maruti and Hyundai for selling car loans Tie up with Bajaj Allianz General Insurance ATM sharing based on alliances such as SBI and multibank payment networks

Value Chain Activities

It Outsourcing selected value chain activities 1.Outsourcing recruitments to monsterindia.com 2. Outsourcing print action to Xerox 3. ATM management

Offensive (unsatisfied) Strategic Moves

Superior Customer Service Range of services on ATM machine Aggressive growth in card business Expansion of environmental reach Financial Advisory Services

Use of Internet
I-Connect net banking service Internet based electronic payment portal E-Payment facility for payment of central excise & service tax

SWOT ANALYSIS OF AXIS BANK

STRENGTHS: Brand Name Support of various promoters. High level of services. WEAKNESS: Not having good image. Market capitalization is very low. Not been fully able to position itself correctly.

Knowledge of Indian market.

OPPORTUNITIES:

SWOT
THREATS:
Advent of MNC banks Foreign banks

Growing Indian banking sectors. People are becoming more service oriented. In the global market. Dissatisfied Customers. Business advising for smaller Players

Govt. banks
Future market trends.

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

Features Of Axis Bank

Anywhere Banking Instant Fund Transfer Internet Banking At-Par (Multicity) Chequebook ATM cum Debit Card Mobile Banking , Mobi Phone Banking

TECHNOLOGICAL ADVANCEMENTS
Extensive Network . Centralized transaction processing system

Centralized Phone Banking system

Mobile Alert Service. NEFT ( National Electronic Fund Transfer) Real Time Gross Settlement (RTGS).

New plans

Tie-ups with various Govt. Departments:

Govt. Departments:
MCD - Municipal Tax or Fees ePayments MCD - eTendering Project Sampark - Utility Bill ePayments Bangalore One Project - Utility Bill ePayments

Alternate Channels:
ATM Channel Internet Banking Channel Mobile Banking Channel

ATM Channel
All its ATMs are connected to Base24 ATM switch The Bank through its ATMs offers the following services: Banking Services Mobile Banking Services Bill Payment e.g.: BSNL, MTNL Life Insurance Corporation Premium Payment Purchase and recovery of UTI Mutual Fund Schemes through the ATM.

Internet Banking Channel:

Axis bank provides a number of value-added services on the Internet banking platform Services: a) Funds Transfers b) Bill payment c) Shopping

Mobile Banking Channel:

Debit or credit in your account: Receive alerts on your mobile phone every time there is a debit or credit in your Axis Bank account for more than Rs. 5,000 You can also request for the following information: - Balance - Last three Transactions - Know the status of your cheque - Request security balance in demat account

Growth Prospects of Axis

Over the last five years, the CAGR (Compound Annual Growth Rate) for loan growth for the banking industry has been 25-26 per cent for Axis Bank it has been above 40 per cent. In FY09 its advances grew at the rate of 37.5 per cent. In FY10 they are expected to grow at the rate of 27-28 per cent and in FY11 at 25 per cent. For the banking industry as a whole, the loan book is expected to grow at 18 per cent in FY10 and 16 per cent in FY11. Thus, Axis Banks fast pace of growth is expected to sustain over the next couple of years.

Core Values of Axis

Customer Satisfaction through
Providing quality service effectively and efficiently Periodic Customer Service Audit Maximizations of Stakeholder value Success through Teamwork, honesty and People

Conclusion !!!!
AXIS bank has differentiated itself very well on the basis of high level service and product quality. They have successfully implemented the change and due to this their market share has increased only despite of tough competition overcome.