Project report on summer training at Axis Bank Hewett road, Lucknow History of 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. 405. 17 crores with the public holding (other than promoters and GDRs) at 53. 09%. 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 1000 branches and Extension Counters (as on 31st March 2010). The Bank has a network of over 4055 ATMs (as on 31st March 2010) 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 24. 00% Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a view to encourage savings and investment.
In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6. 75% US-64 Bonds, 6. 60% ARS Bonds with a Unit Capital of over Rs. 4167. 59 crores. The Government of India has 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. Mission • Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. • Continuous technology up gradation while maintaining human values. • Progressive globalization and achieving international standards. Efficiency and effectiveness built on ethical practices. VISION 2015: To be the preferred financial solutions provider excelling in customer delivery through insight, empowered employees and smart use of technology Core Values of Axis • 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 • Maximizations of Stakeholder value • Success through Teamwork, Integrity and People • Ethics • Transparency Objective of the Study
The Research project has been carried out to aid the AXIS bank in offering services that the customer needs and also to improve on some of the existing services of the bank. The objective of this project was: 1. To study Saving Account potential in today’s market scenario as a whole. 2. To Analyze Market Potential of Axis Bank’s Saving Account. 3. Comparing other banks with Axis bank on various banking parameters. 4. To find out the various factors on which the bank lags/leads. 5. Finally to find the requirement of the customer by segmenting them on the basis of: • Age Profession • Monthly Income Analyzing the data as per the given objectives, reaching a conclusion and finally the factors that the bank should consider in case of improving the service accounts. Purpose of the Study To maintain and enhance the position further, the bank decided to have a thorough insight into the comparison with different banks. As it is a part of the service industry, which depends upon the customer perception of the product conception and their views towards the service provider, thus the feedback from the customers becomes important.
The purpose of the undergone study was to study the Saving Accounts services and its rates of different banks and evaluate the competitive position of Axis Bank so as to suggest ways to increase its market share. Savings Accounts Product Offering AXIS BANK Saving Accounts Axis Bank has a wide range of savings account to make your banking transactions easy and to cater different needs of various sections of society. Bank has Zero Balance Savings Account in which you do not have to maintain an average quarterly balance.
Krishi Savings Account for farmers to allow financial transactions immediately in the time of need. EasyAccess Savings Account for instant access to your money anywhere, anytime. Azaadi Account is a NO FRILL account. No need to maintain a fixed, mandatory amount in your account. Prime Savings account has been created keeping in mind your specific financial requirements to give wider accessibility. Senior Citizen Savings Account has been created to make banking transactions easy and cater all their requirements.
Corporate Salary Account is for employees offering payroll solutions through a 24 X 7 environment. Smart Privilege Account, is for woman of today so that she can manage money easily along with host of lifestyle privileges. Power Salute Savings Account is for defence forces to extend a helping hand to our soldiers for all their financial needs. Trust/NGO Savings Account is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs who spend their time to help others.
Pension Savings Account has been generated for pensioner’s (existing & prospective) of Central Govt. Civil Ministries/ Departments & Defence Ministry to cater their needs as they require special consideration. |EasyAccess Acount |Power Salute | |Prime Savings Account |Salary Power | |Smart Privilege Account |Senior Privilege | |Azaadi – No Frills |Trust/NGO Savings Account | |Pension Savings Account | |
Parameters Taken for the Comparison and Analysis 1. Branches 2. ATM’s 3. Cheque Deposits box 4. Banking Hours 5. Average quarterly Balance 6. Global Debit card 7. ATM Cash Withdrawal(per day) 8. Statement Charges 9. 24 Hours Branch Banking 10. 365 days Banking 11. Phone Banking 12. Any Where Banking 13. Investment Advisory Services 14. Net banking 15. Mobile banking |S. NO. |Parameters |AXIS BANK |SBI |HDFC |PUNJAB NATIONAL BANK |ICICI | |1. Branches |4 |43 |10 |36 |9 | |2. |ATM’s |20 |18 |15 |28 |54 | |3. |Cheque Deposit Box |Yes |Yes |Yes |Yes |Yes | |4. |Banking Hours |9:30am-3:30 |10am-4pm |10am-4pm |9am-3:30pm |9am-6pm | | | |pm | | | | | |5. Average Quarterly |5000/- |1000/- |5000/- |500/- |10000/- | | |Balance of Savings | | | | | | | |Account | | | | | | | |Global debit |Yes |No |Yes |Yes |Yes | | |Card | | | | | | | |Statement Free monthly | | | | | | |Charges | |Free Quarter|Free |Free Quarter|Free Monthly | | | | | |Quarter | | | | |24 Hours Banking |Yes |Yes |Yes |Yes |Yes | |7. | | | | | | | | |365 daysBanking |Yes |Yes |Yes |Yes |Yes | |8. | | | | | | |9. |Phone Banking |Yes |Yes |Yes |Yes |Yes | | |Any where banking |Yes |Yes |Yes |Yes |Yes | |14. |Investory Advisory |Yes |Yes |Yes |Yes |Yes | | |services | | | | | | |15. Netbanking |Yes |Yes |Yes |Yes |Yes | |16. |Mobile Banking |Yes |Yes |Yes |Yes |Yes | Methodology Process adopted: 1. Gaining knowledge about the product: Reading about the product was the first step undertaken. This gave not only in depth knowledge about what is been offered by the bank but also proved useful while developing the questionnaire. 2. Steps in the Development of the Survey Instruments
The main instruments required for survey was a well-developed questionnaire. 1. Market Survey: This helped us to know the customer knowledge about the axis bank product and services and how far they are aware of the axis bank and its core features of product and services . It built a base to form a questionnaire on there inference basis. 2. Customer Survey: The people play an important part as a clear perception of people about the product can be estimated and known. Studying the need levels of the people regarding the banking product can be observed.
It was very useful in knowing about the requirements of the people. 3. Referred to brochures and websites of competitors: To understand the competitors product brochures and websites of various banks were referred and a competitive analogy of all the rates and necessary features of the Savings account is been made. Analysis On the basis of market survey and questionnaire Percentage of Respondents with Reference to AGE Group [pic] Percentage of Respondents with Reference to AGE Group 43% of the respondent who responded lies in the age group of 20-30yrs. 3% of the respondent who responded lies in the age group of 31-40yrs. 13% of the respondent who responded lies in the age group of 41-50yrs. 06% of the respondent who responded lies in the age group of 51-60yrs. 15% of the respondent who responded lies in the age group of more than 60 yrs. Total Number of Respondents Divided on the Basis of Occupation [pic] Total number of respondents divided on the basis of occupation It is seen that maximum number of respondents belong to service group and very less of them belong to business and retired group.
Percentage of Respondents with Reference to Income Group [pic] Reason Why the Respondent Go for a ParticularBank[pic] Chart11:- Investment reason for number of respondents Out of total respondent 19 choose there bank because of brand name. 48 went on the basis of expected returns. 1 was keen because of reviews in the magazine. 14 out of total because of risk profile Type of bank preferred by respondents [pic] Type of account possessed by respondents [pic] 1. Priority account or special privilege account 2.
Easy Access Account or Normal Savings Account 3. Salary Account 4. Pension Account 5. Other Type of service availed by a respondent through a bank account [pic] Use of online/ internet banking of a saving account [pic] . On the basis of time taking in the process (deposit, making a DD, withdraw etc. ), which bank provides you prompt and better service [pic] Comparison of axis bank with other bank on the basis of product and services provided by axis bank [pic] The banking product and services being provided by Axis Bank in comparison with other banks. pic] Employees’/ agents’ behavior of Axis Bank in accordance with other banks [pic] The number/visibility of Axis bank’s branches and ATM Booths in Lucknow city [pic] Axis bank in terms of providing new and better products and services [pic] On the basis of these charts and different analysis of axis bank with other banks through market survey, questionnaire, reading material provided by the bank the following recommendations and conclusion can be drawn out. Recommendations Strong Need of Brand Buildings The bank needs to make a lot of marketing effort.
The level of recognition that may be desired by any brand has not been achieved by Axis Bank. A lot of noise is made whenever a child is born and as long as that noise is not made the doctors is not sure about the life of that child. Same is the case in marketing. Whenever a new branch comes into existence it is necessary that they announce their birth. Here comes the pre-launch exercise, and similar is the case after the birth. The name has to be taken again. Boast about yourself, about the strong points that you have over and above your competitors.
Pull the consumer towards you. It is a relationship of trust and this trust can be generated through better and better performance of the bank. The fact is that they believe in low costing and want to keep low profile. So better way of marketing can be sought which are low at cost. Need A Change In Marketing Focus The marketing team of the branch has until now focused on selling of their most competitive product, which are their fixed deposits. The rates of interest, which they provide on fixed deposits, are really competitive and highest in this market.
Even the survey conducted proved that the fastest selling product is savings account amongst the consumer. With a network that is good enough this bank can make efforts to increase the market share in the area where the competition is so tough. This needs a brain storming from the top management in the branch as to how about fixing the targets in each category of accounts. Solid Network Required to Develop the Business Further If we see the results of the survey, it is evident that people prefer strong networking system to make their banking life as comfortable and reachable as possible.
For Axis Bank to enjoy a good customer base, they should make efforts towards developing more and more ATM in the city and extension counters to facilitate better and fast service. Updating of technology from time to time is very necessary. Axis Bank was the very first bank to start few of the very good service like Internet banking; bringing about new service to attract more and more consumers should carry on this tradition further. Corrective positioning of Axis Bank. Axis Bank is known for its corporate operations.
Very big names in the corporate world have their accounts with this bank. For the past so many years it has been catering to these clients only and has generated an image of being a corporate bank. This product extension into the retail segment need separate focus and separate positioning in the market. The bank cannot carry on its old image for both the segments of the market. For this a distinctive advertising campaign has to be developed to reposition the brand in potential consumer’s mind. It should be noted that both the type of clients differs from each other in their true nature.
One is a very low profile relationship, which talks about masses. This type of client requires assurance, trust, information, and support. This is retail banking. While on the other hand the second type of relationship is stronger, which is the corporate client that requires different set up all together. FINAL CONCLUSION ON the basis of market survey and through questionnaire we have gone to a conclusion that axis bank has a firm growth but with a slow rate due to less promotion and sometimes because of imitator kind of attitude of axis bank towards its product.
Whereas as per service, axis bank customer are really very satisfied with it and also because of friendly nature of axis bank employees. To conclude, it can be said that the research findings clearly reveal the goodwill and reputation of the bank among the customer. But there is a need to strengthen the bank by spreading awareness about the services offered by Axis bank through advertisement and by expanding the branches of the bank all over the country and also by tapping the potential customers through innovative means.