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STUDY ON AXISSTUDY ON AXISBANKBANK

Presented by :

L. Irshath Ahamed SheriffB.com., M.B.A., M.Phil.,

Jamal Institute of Management(JIM),

Jamal Mohamed College,


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Emergence of Private Banks

Private banking in India was practiced since thebeginning of banking system in India which iscontrolled by Reserve Bank of India since 1935 .

The first Private Bank in India to receive an inprinciple approval from the Reserve Bank of Indiawas Housing Development Finance CorporationLimited.

It was incorporated in August 1994 as HDFC BankLimited with registered office in Mumbai andcommenced operations as Scheduled Commercial

Bank in January 1995.


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List of Private Banks inIndia

Bank of Punjab

Bank of Rajasthan

Catholic Syrian Bank

Centurion Bank

City Union Bank

Dhanalakshmi Bank

Development Credit Bank

Federal Bank

HDFC Bank ICICI Bank

IDBI Bank

IndusInd Bank

ING Vysya Bank

Jammu & Kashmir Bank

Karnataka Bank

Karur Vysya Bank

Laxmi Vilas Bank

South Indian Bank

United Western Bank AXIS Bank
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UTI BANK


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Introduction

Axis Bank (Formerly known as UTI) was oneof the few private banks to have beganoperations in 1994

The Bank was promoted jointly by theAdministrator of the specified undertakingof the Unit Trust of India (UTI)

Life Insurance Corporation of India (LIC).

General Insurance Corporation Ltd (GIC).

National Insurance Company Ltd.The New India Assurance Company.

The Oriental Insurance Corporation.

United Insurance Company Ltd.


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Journey From UTI toAXIS


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1994-1997

Incorporated as UTI Bank,headquartered in Mumbai.

First Branch inaugurated atAhmedabad.

Completes first profitable year inoperation in 1995.

Deposit crosses Rs.10bn mark in1996.


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1998-2000

Successfully completes its IPO in 1998 andgets itself listed on NSE and BSE

Cash management services as well as creditcard launched

Profit crosses Rs.500m in 2000

Launches Internet banking module, iConnectretail loans introduced

Financial advisory services and e-commerceintroduced

Second largest ATM network in the countrywith 200 ATMs


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2001-2005

Private placement of 26% stake to CDCCapital Partners

Deposit crosses Rs.100bn mark in 2001,

advances crosses Rs.50bn First commercial bank to open an ATM at

a post office

Crosses the 1,000 ATM mark in 2003

Gets listed on the London StockExchange, raises $239.3m


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2006-2008

Opens its first international branch inSingapore

Opens Representative Office in Shanghai


Opens a Full Licence Bank Branch inHong Kong

Re-brands itself as Axis Bank

Mumbai, Jul 30 2007 : UTI Bank onMonday rechristened itself as Axis Bank.


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PROBLEM

WHY THEY CHANGE THEIR NAMEFROM UTI TO AXIS BANK


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THERE ARE 3 MAIN

REASONS1.They had to give up the UTI name after

using it for 13 years as we were not

prepared to accept terms and conditions(including royalty) from UTI AMC

The decision to rebrand itself was taken bythe bank as it was allowed to use the 'UTI'brand name for free till January 31, 2008,beyond which it had to pay royalty forusing the name.


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Rebranding Exercise

"The name was taken into effect consequentto the approval of shareholders, ReserveBank of India and the central government(Registrar of Companies).

The UTI brand is owned by UTI AssetManagement CompanyThe bank would change logo and colour of

logo the bank is likely to spend around Rs 50crore in the re-branding exercise.

The bank acquired the services of Ogilvy &Mather (O&M) to design and implement therebranding campaign


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The new name AXIS

The new name was chosen consideringthe banks pan-Indian as well asinternational presence.

The first time that a bank has droppedan established brand for an unknownname.

The name Axis is chosen as it is simpleand it conveys a sense of solidity and a

sense of maturity. It also has a universal


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The New Logo

LOGO

The logo depicts a strong growth path for the banksupported by a strong base, indicating that the bank is

moving on from a position of strength.


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ABOUT AXIS


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Mission

Customer Service and ProductInnovation tuned to diverse needs ofindividual and corporate clientele.

Continuous technology up gradationwhile maintaining human values.

Progressive globalization and

achieving international standards. Efficiency and effectiveness built on

ethical practices.


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Core Values of Axis

Customer Satisfaction through

Providing quality service effectively andefficiently

"Smile, it enhances your face value" is a servicequality stressed on

Periodic Customer Service Audits

Maximizations of Stakeholder value

Success through Teamwork, Integrity and

People


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The banks business is divided into four

segments:

Retail, corporate, treasury and merchantbanking.

Apart from this the bank is also intoinsurance, investment banking, mortgagefinancing, credit cards, and depositoryservices amongst others.

it is also registered on the followingexchanges:

OTCEI

BSE NSE


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Services

Retail banking Deposits schemes

Loans and advances

Personal loans Housing loans

Cards

Consumer durables

Auto loans


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Personal banking Accounts

Term deposit

Fixed deposit Recurring deposit

Cards Different variant like: Gold plus card, Gold card,

Silver & silver plus cards.


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Corporate banking Accounts

Normal Current Account

Trust/NGO Savings Account Services

Private Equity, Mergers & Acquisitions

Advisory Services

Capital Market Funding

E-Broking


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Recent Developments

Shikha Sharma was named as thebank's managing director and CEOon 20 April 2009.

As on the year ended March 31, 2009the Bank had a net profit of Rs

1,815.36crores

The bank now has 835 branches

including extension networks across30 States and 4 Union Territories.


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Recent Developments

The bank also has overseas offices inSingapore, China, Hong Kong and Dubai.


Launches Platinum Credit Card, India's

first EMV chip based card

Axis Bank is now trading at Rs 911.85(17th sep).


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Axis Financial Position

Particulars Mar 07 Mar 08 Mar 09

Deposits 58,785.60 87,626.22 117,374.11

Advances 36,876.48 59,661.14 81,556.77

Share Capital 281.63 357.71 359.01

Net worth 3,402.21 8,770.69 10,214.80Book Value 120.80 245.19 284.53

Interest earned 4,560.40 7,005.32 10,835.49

Interestexpenditure

2,993.32 4,419.96 7,149.27

Net profit 659.03 1,071.03 1,815.36

Net NPAs 0.61% 0.36% 0.35%

Total Assets 73,257.21 109,577.84 147,722.06

Return on Assets 1.10% 1.24% 1.44%

Rs in

crs.


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Axis Bank Ratio Analysis

Particulars Mar 07 Mar 08 Mar 09

Capital Adequacy Ratio 11.57 13.73 13.69

Net profit margin 12.01 12.22 13.31

Operating Expense / TotalInc23.26 26.20 24.95

Return on Net worth (%) 19.37 12.21 17.77

Net Interest Income/totalfunds

4.01 4.74 4.98

Non Interest Income/totalfunds

0.03 0.02 0.06

Net Profit / Total Funds 1.07 1.17 1.41

Earning per share 23.40 29.94 50.57

Equity Dividend (%) 45.00 60.00 100.00


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Comparative Analysis

Particulars Axis HDFC PNB HSBC

Deposits 117,374.11 142,811.58 209,760.50 49,970.27

Advances 81,556.77 98,883.05 154,702.99 27,588.68

Share Capital 359.01 425.38 315.30 4,499.16

Net worth 10,214.80 15,052.73 14,653.63 11,214.3Book Value 284.53 344.44 416.74 -

Interest earned 10,835.49 16,332.26 19,326.16 6,326.9

Interest expenditure 7,149.27 8,911.10 12,295.30 2,661

Net profit 1,815.36 2,244.94 3,090.8 12,91.2

Net NPAs 0.35% 1.49% 0.17% 1.42%

Total Assets 147,722.06 183,270.78 246,918.62 94,620.3

Return on Assets 1.44% 1.10% 1.15% 1.51%

As on Mar 09. Rs

in crs


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Axis BankAxis Bank

Marketing OverviewMarketing Overview


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Marketing Objectives

Axis Bank want to achieve following marketing

objectives by the end of the year 2012.

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.


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SWOT ANALYSIS OF AXIS BANK


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Features Of Axis Bank

Anywhere Banking

Instant Fund Transfer

Internet Banking At-Par (Multicity) Chequebook

ATM cum Debit Card

Mobile Banking Phone Banking


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Axis BankAxis Bank

H. R. OverviewH. R. Overview

OBJECTIVES OF HRD IN AXIS


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OBJECTIVES OF HRD IN AXISBANK

Initiate & institutionalize globally competitive HRpractices.

Put in place relevant HRD strategies and usemodern methodologies.

Create a performance-driven culture and anexciting workplace.

Create a pool of entrepreneurial managers andbusiness leaders.


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FUNCTIONS OF HRD

Ultimate aim of the human resources function is tobuild and manage a motivated pool ofprofessionals delivering optimum value tocustomers.

Major platforms on which the success of the bank'scorporate strategy rests is bringing on board therequisite skills.

Young bank with an average age of 29 years and atalent pool comprising a mix of new recruits andexperienced officers.


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CONTD

Training-Scheduling.

Performance Management.

Compensation/Reward Administration.

Grievance Handling.


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HR BUSINESS MODEL


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RECRUITMENT PROCESS IN

AXIS BANK


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Axis BankAxis Bank

Information SystemInformation System

OverviewOverview


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INFORMATION SYSTEM

Implemented a new derivatives system--Summit FT with the help of global financialapplications provider Misys.

Provides ability to structure derivativeproducts in real time and give a single viewof the entire transaction to the customer

The bank hopes to leverage the ability torationalize its currently dispersed functionsto provide a single view of every transactionto customers.


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CONTD..

Apart from creating a new derivatives product, italso helps from a regulatory compliancestandpoint.

RBI favors transparent online systems that cantrack every transaction and report it exactly as itis.

An automated system removes this anomaly andimprove compliance to a great extent.


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HOW IT WORKS?


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Conclusion !!!!

AXIS bank has differentiated itself very well on thebasis of high level service and product quality.

They have successfully implemented the changeand due to this their market share has increasedonly despite of tough competition prevails.


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Thank you

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