SERVICES MANAGEMENT

INDUSTRY: - BANKING

COMPANY:- AXIS BANK

SUBMITTED BY:-

RAJU KUMAR SHARMA-JIML 11 FS 042

VIKAS SINGH-JIML 11 FS 060

SANSKRITI CHATURVEDI-JIML 11 142

SHAILENDRA MUKHARIYA-JIML 11 FS 050

RISHAB MITRA-JIML 11 135

Introduction

Indian banking is the lifeline of the nation and its people. Banking has helped in developing the vital sectors of the economy and usher in a new dawn of progress on the Indian horizon. The sector has translated the hopes and aspirations of millions of people into reality. But to do so, it has had to control miles and miles of difficult terrain, suffer the indignities of foreign rule and the pangs of partition. Today, Indian banks can confidently compete with modern banks of the world. Before the 20th century, usury, or lending money at a high rate of interest, was widely prevalent in rural India. Entry of Joint stock banks and development of Cooperative movement have taken over a good deal of business from the hands of the Indian money lender, who although still exist, have lost his menacing teeth. In the Indian Banking System, Cooperative banks exist side by side with commercial banks and play a supplementary role in providing need-based finance, especially for agricultural and agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc. along with some small industries and self-employment driven activities. Generally, co-operative banks are governed by the respective co-operative acts of state governments. But, since banks began to be regulated by the RBI after 1st March 1966, these banks are also regulated by the RBI after amendment to the Banking Regulation Act 1949. The Reserve Bank is responsible for licensing of banks and branches, and it also regulates credit limits to state co-operative banks on behalf of primary co-operative banks for financing SSI units.

Banking in India originated in the first decade of 18th century with The General Bank of India coming into existence in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. After this, the Indian government established three presidency banks in India. The first of three was the Bank of Bengal, which obtains charter in 1809, the other two presidency bank, viz., the Bank of Bombay and the Bank of Madras, were established in 1840 and 1843, respectively. The three presidency banks were subsequently amalgamated into the Imperial Bank of India (IBI) under the Imperial Bank of India Act, 1920 – which is now known as the State Bank of India. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai – both of which were founded under private ownership. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India‟s independence in 1947, the Reserve Bank was nationalized and given broader powers. As the banking institutions expand and become increasingly complex under the impact of deregulation, innovation and technological upgradation, it is crucial to maintain balance between efficiency and stability. During the last 30 years since nationalization tremendous changes have taken place in the financial markets as well as in the banking industry due to financial sector reforms. The banks have shed their traditional functions and have been innovating, improving and coming out with new types of services to cater emerging needs of their customers. Banks have been given greater freedom to frame their own policies. Rapid advancement of technology has contributed to significant reduction in transaction costs, facilitated greater diversification of portfolio and improvements in credit delivery of banks. Prudential norms, in line with international standards, have been put in place for promoting and enhancing the efficiency of banks. The process of institution

building has been strengthened with several measures in the areas of debt recovery, asset reconstruction and securitization, consolidation, convergence, mass banking etc.Despite this commendable progress, serious problem have emerged reflecting in a decline in productivity and efficiency, and erosion of the profitability of the banking sector. There has been deterioration in the quality of loan portfolio which, in turn, has come in the way of bank‟s income generation and enchancement of their capital funds. Inadequacy of capital has been accompanied by inadequacy of loan loss provisions resulting into the adverse impact on the depositors‟ and investors‟ confidence. The Government, therefore, set up Narasimham Committee to look into the problems and recommend measures to improve the health of the financial system. The acceptance of the Narasimham Committee recommendations by the Government has resulted in transformation of hitherto highly regimented and overbureaucratized banking system into market driven and extremely competitive one.The massive and speedy expansion and diversification of banking has not been without its strains. The banking industry is entering a new phase in which it will be facing increasing competition from non-banks not only in the domestic market but in the international markets also. The operational structure of banking in India is expected to undergo a profound change during the next decade. With the emergence of new private banks, the private bank sector has become enriched and diversified with focus spread to the wholesale as well as retail banking. The existing banks have wide branch network and geographic spread, whereas the new private banks have the clout of massive capital, lean personnel component, the expertise in developing sophisticated financial products and use of state-of-the-art technology. Gradual deregulation that is being ushered in while stimulating the competition would also facilitate forging mutually beneficial relationships, which would ultimately enhance the quality and content of banking. In the final phase, the banking system in India will give a good account of itself only with the combined efforts of cooperative banks, regional rural banks and development banking institutions which are expected to provide an adequate number of effective retail outlets to meet the emerging socio-economic challenges during the next two decades. The electronic age has also affected the banking system, leading to very fast electronic fund transfer. However, the development of electronic banking has also led to new areas of risk such as data security and integrity requiring new techniques of risk management.Cooperative (mutual) banks are an important part of many financial systems. In a number of countries, they are among the largest financial institutions when considered as a group. Moreover, the share of cooperative banks has been increasing in recent years; in the sample of banks in advanced economies and emerging markets analyzed in this paper, the market share of cooperative banks in terms of total banking sector assets increased from about 9 percent in mid- 1990s to about 14 percent in 2004.

Growth and contribution of Banking industry to GDP.

Importance of Banking Industry In the analytical and empirical literature on the subject of finance and growth, there is a consensus among economists that development of the financial system contributes to economic growth .Financial development creates enabling conditions for growth through either a supply-leading (financial development spurs growth) or a demand-following (growth generates demand for financial products) channel. Banking industry depends on the overall growth of economy. Other sectors like cement, steel and consumer durables are dependent on banking sector and move in tandem. Although the

Indian economy has done relatively better in these crisis years compared to other countries in the emerging markets peer group, the slowdown in fiscal 2012 is deeper than anticipated. Accordingly, the estimates of GDP growth is estimated to be around 5.5% for the F.Y 2012, lower than the average growth rate of 8.50% of the previous years. Over the last few years, India has become increasingly integrated with the global economy, both through trade and through exposure to financial markets. The loss of export markets has consequently hit domestic demand quite hard, particularly as many export segments are also employment intensive. The performance of the Banks in 2011-12 should be viewed in the backdrop of the global and Euro crisis. Unlike developed economies, the slowdown in India has not been led by the financial sector but affected by mainly the following:(a) The sharp slowdown in global import demand resulted in an export slowdown,(b) A contraction in the availability of global finance, particularly export finance, and an increase in the costs of foreign currency funds(c) Slowdown in investment plans of many corporate in anticipation of a demand slowdown.

Marketing in banks:-

The bank marketing is than an approach to market the services profitability. It is a device to maintain commercial viability. The changing perception of bank marketing has made it a social process. The significant properties of the holistic concept of management and marketing has made bank marketing a device to establish a balance between the commercial and social considerations, often considered to the be opposite of each other. A collaboration of two words banks and marketing thus focuses our attention on the following:* Bank marketing is a managerial approach to survive in highly competitive market as well as reliable service delivery to target customers. * It is a social process to sub serve social interests.* It is a fair way of making profits* It is an art to make possible performance-orientation.* It is a professionally tested skill to excel competition.

Users of Banking Services:

The emerging trends in the level of expectation affect the formulation of marketing mix. Innovative efforts become essential the moment it finds a change in the level of expectations. There are two types of customers using the services of banks, such as general customers and the industrial customers.

General Users:Persons having an account in the bank and using the banking facilities at the terms and conditions fixed by a bank are known as general users of the banking services. Generally, they are the users having small sized and less frequent transactions or availing very limited services of banks.

Industrial Users:The industrialists, entrepreneurs having an account in the bank and using credit facilities and other services for their numerous operations like establishments and expansion, mergers, acquisitions etc. of their businesses are known as industrial users. Generally, they are found a few but large sized customers.

Bank Marketing In the Indian Perspective:

The formulation of business policies is substantially influenced by the emerging trends in the national and international scenario. The GDP, per capita income, expectation, the rate of literacy, the geographic and demographic considerations, the rural or urban orientation, the margins in economic systems, and the spread of technologies are some of the key factors governing the development plan of an organization, especially banking organization. In ours developing economy, the formulation of a sound marketing mix is found a difficult task. The nationalization of the Reserve Bank of India (RBI) is a landmark in the development of Indian Banking system that have paved numerous paths for qualitative-cum quantities improvements in true sense. Subsequently, the RBI and the policy makers of the public sector commercial banks think in favor of conceptualizing modern marketing which would bring a radical change in the process of quality up gradation and village to village commercial viability.

Bank Marketing Mix and Strategies:

The first task before the public sector commercial Banks is to formulate that Bank marketing mix which suits the national socio-economic requirements. Some have 4 P's and some have 7 P's of marketing mix. The common four Ps of Marketing mix are as follows:-

Product:To be more specific the peripheral services need frequent innovations, since this would be helpful in excelling competition. The product portfolio designing is found significant to maintain the commercial viability of the public sector banks. The banks professionals need

to assign due weightage to their physical properties. They are supposed to look smart active and attractive.

Price:Price is a critical and important factor of bank marketing mix due numerous players in the industry .Most consumers will only be prepared to invest their money in search of extraordinary or higher returns. They are ready to pay additional value if there is a perception of extra product value. This value may be improved performance, function, services, reliability, promptness for problem solving and of course, higher rate of return.

Promotion:Bank Marketing is actually is the marketing of reliability and faith of the people.It is the responsibility of the banking industry to take people in favor through Word of mouth publicity, reliability showing through long years of establishment and other services.

Place:The choice of where and when to make a product available will have significant impact on the customers. Customers often need to avail banking services fast for this they require the bank braches near to their official area or the place of easy access.

Challenges to Indian Banking:

The banking industry in India is undergoing a major change due to the advancement in Indian economy and continuous deregulation. These multiple changes happening in series has a ripple effect on banking industry which is trying to be organized completely, regulated sellers of market to completed deregulated customers market20

1. Deregulation:This continuous deregulation has given rise to extreme competition with greater autonomy, operational flexibility, and decontrolled interest rate and liberalized norms and policies for foreign exchange in banking market. The deregulation of the industry coupled with decontrol in the interest rates has led to entry of a number of players in the banking industry. Thereby reduced corporate credit off which has resulted in large number of competitors battling for the same pie.

2. Modified New rules: As a result, the market place has been redefined with new rules of the game. Banks are transforming to universal banking, adding new channels with lucrative pricing and freebees to offer. New channels squeezed spreads, demanding customers better service, marketing skills heightened competition, defined new rules of the game pressure on efficiency. Need for new orientation diffused customer loyalty. Bank has led to a series of innovative product offerings catering to various customer segments, specifically retail credit.

3. Efficiency:Excellent efficiencies are required at banker's end to establish a balance between the commercial and social considerations Bank need to access low cost funds and simultaneously improve the efficiency and efficacy. Owing to cutthroat competition in the industry, banks are facing pricing pressure, have to give thrust on retail assets.

4. Diffused customer loyalty:Attractive offers by MNC and other nationalized banks, customers have become more demanding and the loyalties are diffused. Value added offerings bound customers to change their preferences and perspective. These are multiple choices; the wallet share is reduced per bank with demand on flexibility and customization. Given the relatively low switching costs; customer retention calls for customized service and hassle free, flawless service delivery.

5. Misaligned mindset:These changes are creating challenges,as employees are made to adapt to changing conditions. The employees are resisting to change and the seller market mindset is yet to be changed. These problems coupled with fear of uncertainty and control orientation. Moreover banking industry is accepting the latest technology but utilization is far below from satisfactory level.

6. Competency gap:The competency gap needs to be addressed simultaneously otherwise there will be missed opportunities. Placing the right skill at the right place will determine success. The focus of people will be doing work but not providing solutions, on escalating problems rather than solving them and on disposing customers instead of using the opportunity to cross sell. Strategic options to cope with the challenges:Dominant players in the industry have embarked on a series of strategic and tactical initiatives to sustain leadership. The major initiatives incorporate:a) Focus on ensuring reliable service delivery through Investing on and implementing right technology..b) Leveraging the branch networks and sales structure to mobilize low cost current and savings deposits.c) Making aggressive forays in the retail advances segments of home and personal loans.d) Implementing initiatives involving people, process and technology to reduce the fixed costs and the cost per transaction.e) Focusing on fee based income to compensate foe squeezed spread.f) Innovating products to capture customer 'mind share' to begin with and later the wallet share.g) Improving the asset quality as Basel II norms. The banking environment of today is rapidly changing and the rules of yesterday no longer applicable. The corporate and the legal barriers that separate the various banking, investment and insurance sectors are less well defined and the cross-over are increasing. As a consequence the marketing function is also changing to better support the bank in this dynamic market environment. The key marketing challenge today is to support and advice on the focus positioning and marketing resources needed to deliver performance on the banking products and services. Marketing, as an investment advisor, is about defining 4Ps and implementing key strategic initiatives to Market segments, increasingly redefined, relevant micro-segments to survive and flourish in the highly competitive market.

SWOT Analysis of Indian Banking Industry:-

STRENGTH

Indian banks have compared favourably on growth, asset quality and profitability with other emerging economies banks over the last few years.

Policy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks.

Bank lending has been a significant driver of GDP growth and employment.

Extensive reach: the vast networking & growing number of branches & ATMs. Indian banking system has reached even to the remote corners of the country.

In terms of quality of assets and capital adequacy, Indian banks are considered to have clean, strong and transparent balance sheets relative to other banks in comparable economies in its region.

Foreign banks will have the opportunity to own up to 74 per cent of Indian private sector banks and 20 per cent of government owned banks.

WEAKNESS

PSUs need to fundamentally strengthen institutional skill levels especially in sales and marketing, service operations, risk management and the overall organisational performance ethic & strengthen human capital.

Old private sector banks also have the need to fundamentally strengthen skilllevels.

The cost of intermediation remains high and bank penetration is limited to only a few customer segments and geographies.

Structural weaknesses such as a fragmented industry structure, restrictions on capital availability and deployment, lack of institutional support infrastructure, restrictive labour laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial Banks (SCBs), unless industry utilities and service bureaus.

Refusal to dilute stake in PSU banks: The government has refused to dilute its stake in PSU banks below 51% thus choking the headroom available to these banks for raining equity capital.

OPPORTUNITY

The market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations.

With increased interest in India, competition from foreign banks will only intensify.

Given the demographic shifts resulting from changes in age profile and household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks.

New private banks could reach the next level of their growth in the Indian banking sector by continuing to innovate and develop differentiated business models to profitably serve segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions as a means to grow and reaching the next level of performance in their service platforms. Attracting, developing and retaining more leadership capacity.

Foreign banks committed to making a play in India will need to adopt alternative approaches to win the “race for the customer” and build a value-creating customer franchise in advance of regulations potentially opening up post 2009. At the same time, they should stay in the game for potential acquisition opportunities as and when they appear in the near term. Maintaining a fundamentally long-term value-creation mindset.

Reach in rural India for the private sector and foreign banks.

With the growth in the Indian economy expected to be strong for quite some time-especially in its services sector-the demand for banking services, especially retail banking, mortgages and investment services are expected to be strong.

Reserve Bank of India (RBI) has approved a proposal from the government to amend the Banking Regulation Act to permit banks to trade in commodities and commodity derivatives.

Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI has allowed them to raise perpetual bonds and other hybrid capital securities to shore up their capital. If the new instruments find takers, it would help PSU banks, leftwith little headroom for raising equity.

THREATS

Threat of stability of the system: failure of some weak banks has often threatened the stability of the system.

Rise in inflation figures which would lead to increase in interest rates.

Increase in the number of foreign players would pose a threat to the PSB as well as the private players.

AXIS BANK

AXIS Bank is one of the fastest growing banks in private sector. The Bank operates in four

segments, namely treasury, retail banking, corporate/ wholesale banking and other banking

business. The treasury operations include investments in sovereign and corporate debt, equity

and mutual funds, trading operations, derivative trading and foreign exchange operations on

the account, and for customers and central funding. The Bank's registered office is located at

Ahmedabad and their Central Office is located at Mumbai. The Bank has a very wide

network of more than 1042 branches (including 56 Service Branches/ CPCs as on June 30,

2010). The Bank has a network of over 4,474 ATMs providing 24 hrs a day banking

convenience to their customers. This is one of the largest ATM networks in the country. The

Bank has five wholly-owned subsidiaries namely Axis Securities and Sales Ltd, Axis Private

Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis

Mutual Fund Trustee Ltd. Axis Bank was incorporated in the year 1993 with the name UTI

Bank Ltd. The Bank was the first private banks to have begun operations after the

Government of India allowed new private banks to be established In the year 2003, the Bank

was given the authorized to handle Government transactions such as collection of

Government taxes, to handle the expenditure related payments of Central Government

Ministries and Departments and pension payments on behalf of Civil and Non-civil

Ministries such as defence, posts, telecom and railways. The Bank changed their name from

UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other

unrelated entities with similar name. During the year, they opened 831 ATMs, thereby taking

the ATM network of the Bank from 2,764 to 3,595.

Axis Bank is the first bank in the country to provide a secure debit card-based payment

service over IVR. During the year 2010-11, 407 new branches were added to the Bank's

network taking the total number of branches and extension counters (ECs) to 1,390. Of these,

564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in

metropolitan and urban areas. The Bank is present in all states and Union Territories (except

Lakshadweep) covering 921 centres. The ATM network of the Bank increased from 4,293 to

6,270. During the year, the Bank also opened a Representative Office in Abu Dhabi. This was

in addition to the existing branches at Singapore, Hong Kong and DIFC (Dubai International

Financial Centre) and representative offices at Shanghai and Dubai. In March 7, 2011, the

Bank incorporated a new subsidiary namely Axis U.K. Ltd. as a private limited company

registered in the United Kingdom (UK) with the main purpose of filing an application with

Financial Services Authority (FSA), UK for a banking license in the UK and for the creation

of necessary infrastructure for the subsidiary to commence banking business in the UK.

VISION & VALUES:

VISION 2015: To be the preferred financial solutions provider excelling in customer

delivery through insight, empowered employees and smart use of technology

Core Values

Customer Centricity

Ethics

Transparency

Teamwork

Ownership

CUSTOMER RELATIONSHIP MANAGEMENT

One of the important marketing tools in the developed countries is Relationship Marketing.

The CRM is a comprehensive approach for creating, maintaining and expanding relationship

with the customers. It has emerged as one of the most widely prescribed solutions for

diminishing market share and sluggish growth of many industries in general and banking and

financial sector in particular. CRM is a simple philosophy, which places the customer at the

heart of the business processes, activities and cultures for improving customer satisfaction

and maximizing profits. In one of the encompassing definitions, CRM is described as “the

establishment, development, maintenance, and optimization of long term, mutually-valuable

relationship between the customers and the organizations. It is a comprehensive approach for

creating, maintaining and expanding relationship with the customers.

The concept of CRM is very important to the business sector. The essence of the business has

been described by Mr. Peter Drucker, the Management Guru as, “the purpose of the business

is to attract and retain a good customer”. Good Customer Service is the best brand

ambassador for any bank. The entire business process consists of highly integrated efforts to

discover, create, arouse and satisfy customer’s needs. The modern business has realized it and

is making all out efforts to become ‘customer-centric’ across the globe.

Hence, CRM is not a once-for-all affair but a continuous process. It is the way of carrying out

business covering all the aspects of the modern business. It is an integral approach of dealing

with customers by deploying the advanced information technology.

CRM is the Information Technology face of the business process that aims to establish

enduring and mutually-beneficial relationships with customers in order to drive customer

retention, value and profitability. It is meant for a common and equal good of the two

stakeholders-businesses and their customers. It calls for capturing pertinent data about the

prospective and current customers in respect of their buying pattern, shopping behavior and

usage habits. It represents the current philosophy that the businesses should be customer

oriented.

CRM is a tool for delivering a variety of marketing dreams such as:

To target and serve customers on an individual basis. It permits one to one marketing

as opposed to mass marketing.

It helps in establishing durable relationship with customers.

It is to dis-intermediarize channels of the wasteful barriers and distortions.

It helps in reducing marketing cost progressively.

Requirements of an effective CRM Structure

An effective CRM system consists of the following:

(i) Personal Customer Needs

Personal contact

A knowledgeable and reliable banker.

Relevant Information.

Customized and timely solutions

Value for money.

(ii). Business Customer Needs

A professional partnership approach.

High levels of information.

Customized and highly responsive service.

Quality Customer Information.

Benefits of CRM

Benefits of CRM can be categorized into three groups namely: Benefits for customers,

benefits for employees and benefits for banks.

(i) Benefits for Customers

There is a more coordinated and professional approach to customer contact.

With up-to-date customer information, Banks can offer more personalized services.

Customers feel empowered if they have greater access to products and services. For

example, 24- Hours banking.

Targeted product and service offerings can be timed to coincide with customer events

and requirements e.g., Education Loans and Tourism Loans.

(ii) Benefits for Employees

Employees are empowered with the information to deliver high quality service and

meet customer expectations.

Employees have more time to serve customers.

Employees have higher satisfaction ratings.

CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN BANKS

Relationship Marketing is the process of building long term mutually beneficial relationship

with the customers. The Financial Institutions in the developed countries are using this

marketing tool very effectively by taking full advantage of Information and Communication

Technologies.

Banks in India are under intense pressure in today’s volatile market place. Steep competition,

globalization, growing customer demand and exposure to higher credit risks are forcing the

banks to find new ways of improving profitability. On the other hand, cost-cutting measures

have forced banks to manage operations with few Customers Relationship Managers and

Product Specialists. Industry consolidation also poses fresh challenges to this sector.

Even today, most of the banks in India rely on the legacy of Customer Information System. In

such a scenario, it is difficult to have a complete customer view across divisions. They face

unprecedented challenges to sustain their growth path for survival. The challenges include

customer retention, reducing transaction costs, risk management and Regulation Compliance.

The result was a huge proliferation in customer’s choice. The strategic tool that was chosen

for aiding this process was Information Technology and most of the banks went through

adoption of various stages and forms of IT over the years and the process is still continuing.

The rapid growth in Information Technology and its potential to serve the customers in a new

way awakened the marketers and enabled them to transform these challenges into

opportunities. Under these circumstances, customer satisfaction became an important aspect

of the business. The search for new strategies began to meet not only the high expectations of

customers but the need to retain them. The competitive world witnessed many banks

participating in the race to optimize their profits. It increased the pressure to perform leading

to adoption of advanced technology and better skilled work force. Therefore, business model

changed from bank-centric approach to customer-centric approach. The customer became not

only an essential but the most important part of the business.

Hence the increased role of banking in India’s economic development on the one hand and

the changes in the business climate on the other has put increased pressure on them. These

changes are compelling the banks to reorganize themselves in order to cope with the present

conditions. Now, the Financial Institutions are trying to provide all the services at the

customer’s doorstep. The customer has become the focal point either to develop or maintain

stability in the business. Every engagement with the customer is an opportunity to either

develop or destroy a customer’s faith in the Bank. The expectations of the customers have

also increased many fold. Intense competition among the banks has redefined the concept of

the entire banking system. The banks are looking for new ways not only to attract but also to

retain the customers and gain competitive advantage over their competitors. The banks like

other business organizations are deploying innovative sales techniques and advanced

marketing tools to gain supremacy.

Need for Study

The important factors that establish the need for CRM in the Banking Industry are detailed

below:-

Intense Competition

There is intense competition among the Private Sector Banks, Public Sector Banks and

Foreign Banks and they are all taking steps to attract and retain the customers. New

technologies, research facilities, globalization of services, the flood of new products and the

concept of all the facilities under one roof to provide better customer service leading to

customer delight.

Well Informed Customers

The Customers in Banking Industry today are well informed. With the introduction of new

technology, the world has become like a small village. Thus, if a Bank wants to have more

customers, it should develop a good relationship with its present customers and try to

maintain the same in the future also.

Decline in Brand Loyalty

In the present scenario, brand loyalty is on decline. The customers are switching over

frequently to avail the better facilities from other banks. Newer and superior products and

services are being introduced continuously in the market. Thus, the banks have to upgrade

their products, improve customer service and create bonds of trusts through proper care of

customer needs and regular communications. With the help of CRM, strong customer loyalty

and a good image for the organization can be developed.

Improved Customer Retention

In the intensely competitive banking industry, retention of existing customers is vital, which

can be achieved through the process of CRM.

Benefits for Banks

Managers are empowered with information that can help them manage

Customer relationships and make better decisions.

Optimum use of resources.

Customer satisfaction and increased loyalty.

Improved customer acquisition and cross-selling.

It helps in capitalizing on short windows of opportunities in the market.

Introduction of Innovative Services through CRM

Banks have made several innovations for sustenance by using the CRM System such as:

The introduction of ATMs.

Biometric ATMs.

Single Window Service.

Teller System.

Internet Banking

Introduction of Plastic Money: Credit Card, Debit Card, Smart Card.

Mobile and E-Mail Alerts

Electronic Cash

Introduction of two in one Accounts.

Introduction of new loan schemes as per the customer’s needs viz. Education Loans,

Marriage Loans, Housing Loans, Personal Loans, Vehicle Loans, Furniture Loans,

Renovation Loans and Tourism Loans.

AXIS BANK LIMITED PRACTICES FOR CUSTOMER SATISFACTION

The Indian banking industry faces stiff competition and new challenges due to increasing the

size of banks, financial services and rising customer expectations. Banks enjoy fighting the

competition by introducing additional financial services and different schemes to attract the

customers more and more.

Therefore, due to a lot of changes, the need of the customer satisfaction becomes necessary

for the Axis Bank Limited also.

SERVICES PROVIDED BY AXIS BANK LIMITED TO ITS CUSTOMERS

Current accounts, savings account, term deposits, recurring deposit, PPF accounts and

all other deposit accounts

Payment services such as pension, payment orders, remittances by way of Demand

Drafts and wire transfers

Banking services related to Government transactions

DeMat accounts, equity, government bonds

Indian currency notes exchange facility

Collection of Cheques, safe custody services, safe deposit locker facility

Loans and overdrafts

Foreign exchange services including money changing

Third party insurance and investment products sold through our branches.

Card products including credit cards, debits cards, ATM cards and services

AXIS BANK LIMITED COMMITMENT TO ITS CUSTOMERS

To act fairly and reasonably in all dealings with the customers by

Providing minimum banking facilities of receipt and payment of cash/ cheques at the

bank's counter

Meeting the commitments and standards in this Code, for the products and services it

offer, and in the procedures and practices its staff follow.

Making sure its products and services meet relevant laws and regulations in letter and

spirit

Ensuring that its dealings with customers rest on ethical principles of integrity and

transparency

Operating secure and reliable banking and payment systems

To help you to understand how our financial products and services work by

Giving customer information about them in any one or more of the following

languages: Hindi, English or the appropriate local language

Ensuring that its advertising and promotional literature is clear and not misleading

Ensuring that customers are given clear information about its products and services,

the terms and conditions and the interest rates/service charges, which apply to them

Giving customers the information on what are the benefits to them, how they can

avail of the benefits, what are their financial implications, and whom they can contact

for addressing their queries

To deal quickly and sympathetically with things that goes wrong by

Correcting mistakes promptly and canceling any bank charges that the Bank applies

due to its mistake.

Handling their complaints promptly

Telling them how to take their complaint forward if they are still not satisfied.

Providing suitable alternative avenues to alleviate problems arising out of

technological failures

To treat all the personal information of the customers as private and confidential

Bank will treat all personal information of the customer as private and confidential in the

cases of:

Advertising. Marketing and sales

Privacy and confidentially

Collection of dues

To adopt and practice a Non -Discrimination Policy

Bank will not discriminate on the basis of age, race, gender, marital status, religion, or

disability. Customers can get information on interest rates, common fees, and charges

through any one of the following:

Looking at the notices in their branches;

Phoning their branches or helplines;

Looking on their website;

Asking their designated staff/help desk; or

Referring to the service guide/Tariff Schedule.

Before a person becomes a customer Bank will:

Give the person the clear information explaining the key features of the services and

products customer tell the Bank that they are interested in;

Give the person information on any type of products and services which Bank offer

and that may suit your needs;

Tell the person if Bank offer products and services in more than one way for example,

through ATMs, on the Internet, over the phone, in branches and so on and tell them

how to find out more about them;

Tell the person what information Bank need from them to prove their identity and

address, for us to comply with legal, regulatory and internal policy requirements.

When the person Become a Customer Bank will:

Give the person more information on the key features of the product, including

applicable interest rates/fees and charges;

Give the person extra information on his rights and responsibilities especially

regarding availing of nomination facility offered on all deposit accounts, articles in

safe custody and safe deposit vaults;

Automatically, register the person’s name under 'Do Not Call ' Service. Bank will not

inform/extend to the person through telephone calls/SMSs/ emails any new product /

service unless and until he inform the Bank in writing his/her consent to avail of this

information service.