EXECUTIVE SUMMARY The traditional function of banking is limited to acceptance of Deposits and providing the credit in the market. Today’s banking is known as Innovative banking. The coming together of information technology, communication and entertainment (ICE) has given rise to new innovations in the product design and their delivery in the banking and finance industry. Driven by new technologies, changing customer preferences, and increased competition, banks have taken to heavy investments in new distribution channels like advance automated teller machines, telephone systems, and on-line banking, one of the reasons for internet applications not to have picked up as expected so far have been the concerns about the security and lack of the legal framework related to such transactions. This hurdle has been reduced to a large extent in the recent past with framing of laws enabling financial transactions through electronic media. The most of the private and nationalized Indian banks have entered in the technology age and providing various types of electronic products and services to their customer. The objective of this project is to analysis the implementation of technology in Axis bank and understanding the customers’ perception. This study is based on the survey and the data which is collected through the issue of questionnaire to the bank’s customer. The results show that customers are satisfied with technology oriented products and services. The empirical findings not only determine the different parameters also 1
Transcript
EXECUTIVE SUMMARY
The traditional function of banking is limited to acceptance of Deposits and providing the
credit in the market. Today’s banking is known as Innovative banking. The coming together
of information technology, communication and entertainment (ICE) has given rise to new
innovations in the product design and their delivery in the banking and finance industry.
Driven by new technologies, changing customer preferences, and increased competition,
banks have taken to heavy investments in new distribution channels like advance automated
teller machines, telephone systems, and on-line banking, one of the reasons for internet
applications not to have picked up as expected so far have been the concerns about the
security and lack of the legal framework related to such transactions. This hurdle has been
reduced to a large extent in the recent past with framing of laws enabling financial
transactions through electronic media. The most of the private and nationalized Indian banks
have entered in the technology age and providing various types of electronic products and
services to their customer. The objective of this project is to analysis the implementation of
technology in Axis bank and understanding the customers’ perception. This study is based
on the survey and the data which is collected through the issue of questionnaire to the bank’s
customer. The results show that customers are satisfied with technology oriented products
and services. The empirical findings not only determine the different parameters also provide
guidelines to bankers to focus on the parameters on which they need to improve and spread
the awareness of electronic banking products and services to each and every section of the
society.
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CHAPTER -1
PLAN OF THE RESEARCH
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INRODUCTION
Traditional banks offer many services to their customers, including accepting customer
money deposits, providing various banking services to customers, and making loans to
individuals and companies. Compared with traditional channels of offering banking services
through physical branches, e-banking uses the Internet to deliver traditional banking services
to their customers, such as opening accounts, transferring funds, and electronic bill payment.
E-banking from banks like Axis bank complements those banks' physical presence.
Generally, e-banking is provided without extra cost to customers. Customers are attracted by
the convenience of e-banking through the Internet, and in turn, banks can operate more
efficiently when customers perform transactions by themselves rather than going to a branch
and dealing with a branch representative.
1.2 Meaning of E-Banking: -
E-bank is the electronic bank that provides the financial service for the individual client by means of Internet.
At present, the personal e-bank system provides the following services
1. Inquiry about the information of account: -
The client inquires about the details of his own account information such as the card’s /
account’s balance and the detailed historical records of the account and downloads the report
list.
2. Card accounts’ transfer: -
The client can achieve the fund to another person’s Credit Card in the same city.
3. Bank-securities accounts transfer: -
The client can achieve the fund transfer between his own bank savings accounts of his own
Credit Card account and his own capital account in the securities company. Moreover, the
client can inquire about the present balance at real time.
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4. The transaction of foreign exchange: -
The client can trade the foreign exchange, cancel orders and inquire about the information of
the transaction of foreign exchange according to the exchange rate given by our bank on net.
5. The B2C disbursement on net: -
The client can do the real-time transfer and get the feedback information about payment from
our bank when the client does shopping in the appointed web-site.
6. Client service: -
The client can modify the login password, information of the Credit Card and the client
information in e-bank on net.
7. Account management: -
The client can modify his own limits of right and state of the registered account in the
personal e-bank, such as modifying his own login password, freezing or deleting some cards
and so on.
8. Reporting the loss if the account: -
The client can report the loss in the local area (not nationwide) when the client’s Credit Card
or passbook is missing
1.3 Types of E-Banking: -
1. Deposits, withdrawals, inter-account transfer and payment of linked accounts at an ATM;
2. Buying and paying for goods and services using debit cards or smart cards without having
to carry cash or a cheques book;
3. Using a telephone to perform direct banking- make a balance enquiry, inter-account
transfers and pay linked accounts;
4. Using a computer to perform direct banking- make a balance enquiry, inter-account
transfers and pay linked
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Advantages of E-Banking: -
(1) Convenience.
(2) Speed of concluding transactions.
(3) Safety-banking from own home.
(4)Economy- banking without visiting your bank.
(5)Cheaper service fees.
(6) Seamless Integration with existing environment (IDM Intelligent Data Module).
(7) Highly Saleable.
(8) Easy Customization.
(9) Lower Costs of both Installation and Maintenance.
(10) Platform Independence.
(11) Round-the-Clock and Cross-Border Availability.
(12) Remote Authorization.
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Objectives of the study
The various research objectives of the study are:
1. To study the internet banking facilities offered by the axis bank to its customers
2. To study as to how much internet banking has penetrated in the minds of the customers
3. To gain insights about functioning of internet banking.
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Literature Review The Indian banking industry is passing through a phase of customers market. The customers
have more choices in choosing their banks. A competition has been established within the
banks operating in India. Now, banks are also adding services to their customers.
With stiff competition and advancement of technology, the services provided by banks have
become more easy and convenient. Gone are those days when long lines had to be formed to
apply for a new cheque book or to transfer money to another account or to get a bank pass
book updated. Welcome to the era of internet banking or electronic banking or e-banking.
Whatever the name, it serves the same purpose. Electronic Banking is conducting ones
banking or bank account online through a computer and an internet connection. Through e-
banking one can check the status of his/her account, place queries and also can be facilitated
with a wide range of transaction services simultaneously. These days, a range of services is
provided by banks making it a very wide spectrum, from the very basic services such as
fixed deposit enquiries, cheque book application, account statements, etc., to the high end
services such as bill payments, fund transfers, payment of credit card dues and much more.
Advantages of Net Banking
The Banks’ Perspective
The hindrance of geographical barriers is removed with the help of internet banking, banks
can reach out to a much wider base of customers as compared to the traditional way. Internet
banking has enabled the local banks to operate in the global scenario.This is a very efficient
and cost effective technique of banking. It has provided the banks with the challenge of
developing and catching up with the fast pace of the industry and banks failing to adopt this
technique prove to be lagging behind and underdeveloped.
The Customers’ Perspective
Electronic banking has come to be developed as a host of a wide bouquet of services ranging
from queries to real time transactions. It offers the customers the flexibility of banking from
any part of the world which has narrowed the physical gap between the banks and their
customers.
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VARIOUS FORMS OF E-BANKING:
INTERNET BANKING:
Internet Banking lets you handle many banking transactions via your personal computer. For
instance, you may use your computer to view your account balance, request transfers
between accounts, and pay bills electronically.
AUTOMATED TELLER MACHINES (ATM):
An unattended electronic machine in a public place, connected to a data system and related
equipment and activated by a bank customer to obtain cash withdrawals and other banking
services. Also called automatic teller machine, cash machine; also called money machine.
TELE BANKING:
Undertaking a host of banking related services including financial transactions from the
convenience of customers chosen place anywhere across the GLOBE and any time of date
and night has now been made possible by introducing on-line Telebanking services. By
dialing the given Telebanking number through a landline or a mobile from anywhere, the
customer can access his account and by following the user-friendly menu, entire banking can
be done through Interactive Voice Response (IVR) system.
SMART CARD:
A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip).
The microprocessor is under a contact pad on one side of the card. Think of the
microprocessor as replacing the usual magnetic stripe present on a credit card or debit card.
The microprocessor on the smart card is there for security. The host computer and card
reader actually "talk" to the microprocessor. The microprocessor enforces access to the data
on the card. The chips in these cards are capable of many kinds of transactions. For example,
a person could make purchases from their credit account, debit account or from a stored
account value that's reload able. The enhanced memory and processing capacity of the smart
card is many times that of traditional magnetic-stripe cards and can accommodate several
different applications on a single card. It can also hold identification information, which
means no more shuffling through cards in the wallet to find the right one -- the Smart Card
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will be the only one needed. Smart cards can also be used with a smart card reader
attachment to a personal computer to authenticate a user.
DEBIT CARD:
Debit cards are also known as check cards. Debit cards look like credit cards or ATM
(automated teller machine) cards, but operate like cash or a personal check. Debit cards are
different from credit cards. While a credit card is a way to "pay later," a debit card is a way
to "pay now." When you use a debit card, your money is quickly deducted from your
checking or savings account. Debit cards are accepted at many locations, including grocery
stores, retail stores, gasoline stations, and restaurants.
E-CHEQUE:
An E-Cheque is the electronic version or representation of paper cheque.
The Information and Legal Framework on the E-Cheque is the same as that of the paper
cheque’s.
It can now be used in place of paper cheques to do any and all remote transactions.
An E-cheque work the same way a cheque does, the cheque writer "writes" the e-
Cheque using one of many types of electronic devices and "gives" the e-Cheque to the
payee electronically. The payee "deposits" the Electronic Cheque receives credit, and
the payee's bank "clears" the e-Cheque to the paying bank. The paying bank validates
the e-Cheque and then "charges" the check writer's account for the check
OTHER FORMS OF ELECTRONIC BANKING
Direct Deposit
Electronic Bill Payment
Electronic Check Conversion
Cash Value Stored, Etc.
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CHAPTER-2
INTRODUCTION ABOUT
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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 as on 30th June, 2011 is capitalized to the extent of Rs. 411.88 crores with the
public holding (other than promoters and GDRs) at 52.87%.
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 1281 branches (including 169 Service
Branches/CPCs as on 31st March, 2011). The Bank has a network of over 6270 ATMs (as on
31st March, 2011) 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.
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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.
BOARD OF DIRECTORS
The Bank has 9 members on the Board. Smt. Shikha Sharma is the Managing Director
& CEO of the Bank.
The members of the Board are :
SMT. SHIKHA SHARMA MANAGING DIRECTOR & CEO
SHRI M. M. AGRAWAL DEPUTY MANAGING DIRECTOR(DESIGNATE)
SHRI N.C. SINGHAL DIRECTOR
SHRI J.R. VARMA DIRECTOR
DR. R.H. PATIL DIRECTOR
SMT. RAMA BIJAPURKAR DIRECTOR
SHRI R.B.L. VAISH DIRECTOR
SHRI M.V. SUBBIAH DIRECTOR
SHRI K. N. PRITHVIRAJ DIRECTOR
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Our Mission And Values
Our Mission
Customer Service and Product Innovation tuned to diverse needs of individual and
corporate clientele.
Continuous technology upgradation while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
Vision 2015 and Core ValuesVISION 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
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Axis Bank is new name for UTI Bank
UTI Bank began its operations in 1994 when 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 Ltd. and its associates viz. National
Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance
Corporation and United Insurance Company Ltd. UTI Bank Ltd. was set up with a capital
of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC
(General Insurance Corporation) and its four subsidiaries contributing Rs. 1.5 crore each.
The Bank's Registered Office is at Ahmadabad and its Central Office is located at
Mumbai. Presently, the Bank has a very wide network of more than 420 branch offices
and Extension Counters. UTI Bank has a network of over 1841 ATMs, which is one of
the largest ATM networks in the country.
India's third largest private sector bank, UTI Bank, has gone for an image makeover,
changing its name to Axis Bank Ltd. The rebranding, which came into effect July 30,
includes change in its logo and its color. The Registrar of Companies (RoC) has issued a
fresh certificate of incorporation to UTI Bank in the name of 'Axis Bank Ltd.' The bank had
appointed an internal committee and also sought help from its official advertising agency,
O&M, for the name change. UTI Bank has contributed to the resurgence of the UTI brand in
last five six years. The bank had a role to play in this. The bank has retained the burgundy
color, but has changed the logo. The logo uses the alphabet 'A' from the word Axis. The logo
depicts a strong growth path for the bank supported by a strong base, indicating that the bank
is moving on from a position of strength. Earlier, the bank's logo used the letters U, T and I.
Their central message is that nothing has changed except the name. The continuity is
maintained through the color. The committee had short listed 50-odd names. Finally, Bank
chooses the name Axis from a group of ethnic, traditional and funky names.
Axis is simple and it conveys a sense of solidity and a sense of maturity. This name also has
a universal appeal. They had to change their name to have own brand and identity. The bank
have to give up the UTI name after using it for 13 years as they were not prepared to accept
terms and conditions from UTI AMC to use the name. UTI Bank decided to choose the new
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name considering the bank's pan-Indian as well as international presence. The bank would go
in for international expansion sometime down the line. "Moving on to Axis would only
reinforce the fact that they are a board-driven private bank, as against the previous image
which had a quasi-governmental touch, and in that sense, the brand-change will be actually
beneficial,"
The bank is likely to spend around Rs. 50 crore ($12.5 million) in the re-branding exercise in
the year 2008. The change in name was considered for avoiding confusion as several
unrelated entities were using the UTI brand. The board of directors of UTI Bank had, on
April 30 2007, approved the proposal to change its name to Axis Bank. UTI Asset
Management Company owns the UTI brand.
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Milestones
YEAR MAJOR EVENTS
1993 Incorporated as UTI Bank Limited 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.
2001 The bank along with Global Trust Bank (GTB) had a merger
proposal to create the largest private sector bank, but due to
media's issues both the banks withdraw the merger proposal.
2003 It was 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. Also, it launched merchant acquiring business.
2005 The Bank raised $239.3 million through Global Depositary
Receipts. It won the award 'Outstanding Achievement Award'
for the year 2005 from Indian Banks Association for IT
Infrastructure, delivery capabilities and innovative solutions.
Also, it set up Axis Securities and Sales Ltd (originally
incorporated as UBL Sales Ltd) to market credit cards and
retail asset products
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2006 It set up Axis Private Equity Ltd, primarily to carry on the
activities of managing equity investments and provide venture
capital support to businesses.
2007 Again, it raised $218.67 million through Global Depository
Receipts and opened 153 new branches & extension centres
during the year. Also, it opened new overseas offices at
Singapore, Dubai and Hong Kong and a representative office
in Shanghai. The name of the bank changed to Axis Bank
with effect from July 30, 2007.
2008 It established Axis Trustee Services Company Ltd as a wholly
owned subsidiary company, which is engaged in trusteeship
activities. In December 2008, it launched new investment
advisory service exclusively for High Net Worth clients.
2009 The Bank set up Axis Asset Management Company Ltd to
carry on the activities of managing a mutual fund business.
Also, it incorporated Axis Mutual Fund Trustee Ltd to act as
the trustee for the mutual fund business. Axis Bank launched
the private banking business
2011 Launch of 'Idea MyCash', Powered by Axis Bank And E wallet card“Idea MyCash', a facility aimed at providing basic
banking services including money transfer, using the
mobile platform, was flagged off by IDEA Cellular, the
third largest mobile operator in the country, in association
with Axis Bank. The e-Wallet Card is an electronic payment
service which is offered by the Bank to its customers without
any cost.
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Subsidiaries
Name of subsidiary BusinessAxis Securities and Sales
Limited
Marketing credit cards and retail asset
products. It is also into retail broking
Axis Private Equity Limited It is primarily to carry on the activities
of managing equity investments and
provide venture capital.
Axis Trustee Services Limited It is into the trusteeship businesses
such as acting as a debenture trustee,
the trustee to various securitisation
trusts
Axis Mutual Fund Trustee
Limited
The company was formed to act as the
trustee for the mutual fund business
Axis Asset Management
Company Limited
It is in the mutual fund business
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PRODUCTS AND SERVICES
Axis Bank offers its products and services in four distinct categories – personal, non-
resident Indian, corporate and priority banking. In personal banking section, Axis Bank
offers products and services like accounts, cards, deposits, investment, loans and
insurance. In priority banking section, Axis Bank provides accounts, investments,
deposits, payments, loans, remittances and cards.
In corporate section, Axis Bank offers products and services like accounts, treasury,
credit, cash management services, capital market products and services and government
business. Services and products like accounts, remittances and deposits are provided to
its customers by Axis Bank in non-resident Indian banking category.
PERSONAL BANKING SECTION
1) ACCOUNTS:
(a) Easy Access Account
The product is an endeavor by the Bank to understand the consumers' needs and redefine
banking to suit your requirements for a truly comfortable banking experience. Easy
Access gives customer instant access to your money anywhere, anytime. Possessing a
range of unmatched features, it has been devised to better suit the convenience of bank
eclectic client base.
Customer can avail of all these services with a minimum average balance of Rs 5,000 in
metro or urban centers, and Rs 2,500 in semi urban centers. Some of its features are:
At Par Cheque Book:
ATM Network:
Anywhere Banking:
Telebanking:
Mobile Banking:
Account Statement:
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(b) Azaadi Account- No Frills
A savings account that doesn't require a minimum balance. Customer qualify’s for
Azaadi Account if:
The sum total of all credits to account does not exceed Rs 1 lack during the
Financial year,
Customers do not intend to maintain an account balance higher than Rs 50,000 at
any given instant
(c) Prime Savings AccountThe Prime Savings account has been created with your specific financial requirements in
mind:
Wider Accessibility of ATMs.
Greater Convenience of payment through debit card.
24 hr Internet Banking and Tele Banking services.
(d) Senior Privilege
Axis Bank's Senior Savings Account has been designed keeping in mind the fact that a
senior citizen's banking requirements are wholly different and require special
consideration.
(e) Salary Power
The bank have prepared Salary Savings Account for service class customers. Salary
Saving Account is not only convenient way for customer to manage salaries (across
various centres, through centralised database), but also provide customer with a range of
value added benefits. Some of its features are:
No minimum balance required.
Anywhere Banking.
International Debit cum ATM card with withdrawal upto Rs 25,000 daily.
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(f) Power Salute
Defence Salary Account from Axis Bank is a product designed keeping in mind how
tough a life in the Defence Forces is. Not only does it come to them absolutely free, no
minimum balance is required either. Customer can also access the entire Axis Bank
network, including more than 2400 ATMs and 550 branch offices (and growing) no
matter where you are posted. Some of its features are:
At-Par Cheque Facility
Additional Debit Card
Financial Advisory Services
(g) Pension Savings Account
This type of account is specifically designed for Pensioner's (Existing & Prospective) of
Central Govt. Civil Ministries/ Departments & Defence Ministry keeping in mind the fact
that a Pensioner's banking requirements are wholly different and require special
consideration. Some benefits are:
Timely communication to the customer on receipt of the PPO
No delays in commencement of pension disbursals - The Bank is handling the
disbursement of Pension under a Centralised Pension Disbursement Module
wherein the Pensioner records are credited centrally through its Centralised Pension
Payment Hub (CCPH) at Mumbai.
Timely issue of Form- 16A for tax deducted at source in the immediately
previous financial year.
Timely revisions based on changes in rates of Pension or Dearness Allowance,
done centrally from the CCPH.
2.) DEPOSITS:(a) Fixed Deposits
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Axis Bank offers simple reinvestment Fixed Deposits (at very competitive interest rates),
which can be opened with a minimum investment of Rs 10,000. Customer can make
additions to his deposit in multiples of Rs 1,000 each. The tenure of the deposit must be a
minimum of 6 months.
(b) Encash 24
The ENCASH 24 (Flexi Deposits) gives the liquidity of a Savings Account coupled with
high earnings of a Fixed Deposit.
(c) Recurring DepositsAxis Bank's Recurring Deposit scheme will allow customer with an opportunity to
build up their savings through regular monthly deposits of fixed sum over a fixed
period of time.
(d) Tax Saver Fixed Deposit
In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term
Deposits which are of over 5 year tenure u/s 80C of IT Act, 1961 vide Notification
Number 203/2006 and SO1220 (E) dated 28/07/2006.
The salient points of the scheme notification are; (a) Fixed tenure without premature
withdrawal. (b) Year is defined as a financial year. (c) Amount limited to Rs. 100
minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed Deposit Receipt that
shall be the basis of claiming tax benefit. (e) Term deposit under this scheme cannot be
pledged to secure a loan.
3.) LOANS(a) Power Home
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Axis Bank's Power Home puts an end to your Real Estate troubles. Augment your reach and buy the house that you've set your heart on.
Features of Power Home Loan
1) Attractive interest rates
2) Balance Transfer facility
3) Doorstep service
4) Nil Prepayment charges
(b) Study Power
Axis Bank's Study Power aims to provide financial support to deserving students for
pursuing higher professional or technical education in India and abroad. The loan would be
provided to students who have obtained admission to career-oriented courses eg, medicine,
engineering, management etc., either at the graduate or post-graduate level.
(c) Asset Power (Loan Against Property)
In this type of loan system, bank provides loan to customer against their property i.e.
property is kept in the form of security. Property kept as security can be commercial or
residential. Customer can also apply for this loan if they need funds to acquire new property.
A take-over of existing loan with refinancing is also possible with Asset Power. Some of
features are:
Attractive interest rates.
Balance Transfer facility available with additional finance.
Doorstep service.
(d) Two Wheeler Loan
In this type of loan service, bank tries to provide money to customer so that he can buy a
two wheeler.
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(e) Loan Against Security
Overdraft against shares
Only individuals are permitted to apply.
HUFs, limited companies, partnerships and sole proprietors are not eligible.
Facility available against more than 500 approved scrips.
Shares can be pledged from any Depository Participant across the country.
Overdraft against mutual funds
Only individuals are permitted to apply.
Maximum limit upto 50% of valuation.
Overdraft possible against more than 250 schemes.
Loan or overdraft against NSC or KVP or LIC policy
Option to either borrow lump sum or withdraw as and when required.
Loan or overdraft against RBI Bonds or US 64 Bonds
Option to either borrow lump sum or withdraw as and when required.
4.) CARDS
(a) Gold Credit Card
Axis Bank's Gold Plus Credit Card goes beyond meeting expectations. There is always
more to enjoy and more to gain with a Gold Plus Credit Card. Apply for Gold Plus Credit
Card and claim a complimentary return flight voucher.
(b) Gold Debit Card
Axis Bank's Gold Debit Card is more than just a debit card. It comes with a host of
enhanced benefits and exclusive reward program. Meant for valued Axis Bank
customers, it is a result of bank constant endeavour to understand customer requirements
and design products and services with you in mind. Some of benefits are:
Flexibility of usage.
Worldwide reach.
Zero petrol surcharge.
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Special offers and discounts at merchant establishments on card usage.
(c) Debit Card
Modern times necessitate that you need to have access to your money anytime and
anywhere. The Axis Bank International Debit Card addresses this need. A deposit access
program, the Debit Card redefines convenience. Apart from being an ATM (Automated
Teller Machine) Card rd used for withdrawing cash, it also enables to shop and make
cashless purchases. Cutomer can use the card to make payments at shops, department
stores, restaurants, petrol pumps and many more outlets aaina India and overseas.
(d) Silver Plus Credit Card
For people who seek more out of everything, Axis Bank presents the Silver Plus Credit
Card. With it customer can get added features and benefits. Apply for an Axis Bank
Silver Plus Credit Card and get a complimentary one way flight voucher.
(e) Business Gold Debit Card
The Business Gold Debit Card is an effort from Axis Bank to offer customers the very
best deals possible through a debit card. Available only to the most privileged current
account holders, the Business Gold Debit Card mirrors great business success and
achievement with a host of enhanced benefits and exclusive value deals
(f) Remittance Card
Axis Bank's Remittance Card is meant for people who receive remittances from abroad.
It aims to make the procedure of receiving money from loved ones abroad easy and
hassle free. Thereby rendering the age-old instruments like Demand Drafts and Pay
Orders obsolete. This card is brought in association with www.Remit2India.com , a
global online money transfer service of Times Online Money Limited. Funds remitted
through www.Remit2India.com are directly loaded onto the Remittance Card, which
customer, as the beneficiary of the remitted funds, have access to anytime and anywhere.
Axis Bank Secured Credit Card is issued against collateral in the form of a Term Deposit
account with the Bank. Some of benefits are:
Lower Finance Charges (0.99% p.m.- 1.49% p.m.).
Income document requirement waived off.
Flexibility to set your own Credit Limit on the basis of the FD amount.
Term Deposit continues to earn interest.
(h) Travel Currency Card
Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable
experience. Available off the shelf at the nearest Axis Bank Branch and select FFMCs
(Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and
hassle free way to carry money and make payments when in foreign shores. With it
customer can attend his business, enjoy the delightful tourist spots, dine out, and take in
the breathtaking landscape and exotic culture of the country without worrying about
money changers and converting traveller's cheques into local currency.
(i) Meal Card
Axis Bank have always strived hard to understand the different payment needs of
corporates and come up with products to efficiently meet these needs. In continuation
with endeavours, bank bring the Axis Bank Meal Card, a Compensation and Benefits tool
targeted at providing tax-free Meal allowances to customer’s employees as provided by
Section 115WB of the Income Tax Act of India. The Axis Bank Meal Card is a prepaid
card designed to replace the inefficient paper voucher system in the market. It is a far
more operationally efficient way to provide customer’s employees with a meal allowance
and eliminates the logistical hassles associated with the procurement, stock-keeping and
distribution of paper-based Meal Vouchers.
5.) INVESTMENT
(a) MOHUR Gold Coins
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Axis Bank brings to you 'MOHUR' - Gold Coins in the purest form! Made in
Switzerland, 'MOHUR' Gold Coins carry the Assay certification of being 24 carat,
99.99% pure! It comes in a specialized packaging that is tamper proof so that its purity is
preserved.Available in 5 gms, 8 gms & 10 gms it is on offer in select branches of Axis
Bank.
(b) Online Trading
Axis Bank in alliance with Geojit Financial Services now offers an Online Trading
Account. Trade from the comfort of home or office either through the Internet or the
Phone. This service provides an integrated Savings Bank Account, Demat Account and
an Online Trading Account to give a convenient and paper free trading experience. Axis
Bank Online Trading Customer would also have the flexibility to get an insight to a
complete range of Corporate Information, Reuter News and Research Tools which would
help him to take timely Investment decisions.
(c) Mutual Funds
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized are shared by its unit holders in
proportion to the number of units owned by them.
(d) Fixed Income
8.5% Relief Bonds, 1999: Issued by Reserve Bank of India (RBI) are available for sale at
Axis Bank counters. Investors can choose from cumulative and non-cumulative bond
options. Bonds will bear interest @ 8.00% per annum and are payable half-yearly. For
the investors opting for the non-cumulative option the interest will be paid on February 1
and August 1 every year. For investor choosing cumulative Bonds interest will be
payable on maturity along with the principal. The value of every Rs 1,000 invested in
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these bonds will be Rs 1,601 (principal + interest) at the end of six years. The Bonds will
be issued for a minimum amount of Rs 1,000 (face value) and in multiples thereof.
(e) Depository Services
Axis Bank is a registered member (Depository Participant) of NSDL. In this system,
physical security holdings are converted into electronic (or in other words,
dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the
NSDL - India's first depository. Customer can avail of all the depository-related services
by just opening an account with NSDL through Axis Bank. Some of the depositories
services are:
Transfer of shares and settlements
Receipt of Corporate Benefits
Dematerialisation of shares
Rematerilialisation
Pledge-Hypothecation
Freezing or Locking of Accounts
6.) INSURANCE(a) Jewellery Insurance
Jewellery forms an integral part of our culture & our lives, be it any occasion or even a
regular day. However, these valuables need to be safeguarded against various risks,
which may not be covered under other policies. Jewellery Insurance safeguards this asset
for customer, securing it against all risks. The only product of its kind in the industry,
provides complete security for jewellery, when it is worn by the policyholder in person or
while being carried to the bank lockers. Absolute security & coverage is given against
burglary & fire, in respect of items kept at bank locker.
(b) Smart Advantage
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Smart Advantage is a women-specific Critical Illness insurance plan that has been
designed for Smart Privilege customers keeping in mind the critical illnesses and other
attendant risks that are especially faced by women. A guaranteed cash sum will be paid in
case the insured is diagnosed with a life-threatening illness. The benefit amount under
this policy helps to take care of heavy medical costs for treatment of critical illness.
Hence provides protection from the economic impact of critical illness.
(c) Family Health
Only Axis Bank offers the advantage of insuring not just customers but their entire
family with one policy. Bank’s Family Health insurance programme provides a
comprehensive health insurance that covers customer, their spouse and 3 dependent
children up to the age of 18 years. This scheme has been started with the collaboration of
Bajaj Alliance Life Insurance.
(d) Safe Home
Axis Bank realize the need to make customer’s home as secure in reality, that is why,
safe home, in association with Bajaj Allianz General Insurance means - , an insurance
policy exclusively designed for Axis Bank customers, which provides protection for
property and valuables at home.
(e) Silver Health
Health care costs are high and getting higher. As the age of an individual increases the
health care costs increase manifold and become a burden on the individual. Senior
citizens have to pay out of their hard earned savings to meet the expenses. Bajaj Allianz's
Silver Health Plan for senior citizens protects them and their spouse in case they need
expensive medical care. They get cashless benefit or medical reimbursement for
hospitalization expenses due to illness or accidents.
(f) Travel Companion
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Travel for business or pleasure, international travel involves risk. Medical treatment
abroad can be expensive and one never knows when one would require it. Having to
spend for medical bills in foreign currency can be expensive proposition. Bajaj Allianz's
Travel Companion is specially designed to help travelers deal with such situations while
overseas travel.
(g) Safe Guard
Axis Bank and Bajaj Allianz General Insurance present 'Safe Guard' personal Accident
Insurance cover. A unique policy that offers insurance coverage at premiums that are
extremely competitive and exclusively meant for Axis Bank customers. Safe Guard
offers insurance coverage in case of:
Accidental death,
Accidental permanent total disability,
Accidental permanent partial disability,
(h) Motor Insurance
Motor vehicle is an invention which has made daily commuting easy. It is convenient,
fast and saves time. Though it is easy to own a vehicle it is expensive maintaining a
motor vehicle especially in case of damage caused due to some unavoidable
circumstances or accidents. Bajaj Allianz's Motor Vehicle Policy helps in maintaining
your vehicle in such situation.
7. PAYMENT:
(a) Bill Pay
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Axis Bank's Bill Pay service enables to make secure payments from the comfort of
customer’s home or office. So its time to say goodbye to late payment fines, long queues,
lost bills, and commissions paid to local errand boys.
(b) Direct Tax Payment
The Bank is authorised for Collection of Income or Other Direct Taxes on behalf of
Central Board of Direct Taxes (CBDT) w.e.f 1 October, 2003. The assessees or taxpayers
can pay Income or Other Direct Taxes as listed below at 214 authorised branches of Axis
Bank across the country.
(c) Pension Disbursement
The Bank is authorised by RBI and Central Pension Accounting Office (CPAO) for
disbursement of Central Civil Pension through its 218 authorised branches across the
country. This facility can be availed by opening a Pension Payment Savings Bank
Account with any authorised Axis Bank Branch and thereafter pension will directly be
debited in customer’s account.
8.) FOREX
Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable
experience. Available off the shelf at your nearest Axis Bank Branch and select FFMCs
(Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and
hassle free way to carry money and make payments when in foreign shores.
The Travel Currency Card gives you a 24-hour access to your money. Withdraw funds in
the local currency from any Visa or Visa Plus ATM's (Automated Teller Machine) as
well as pay for all your purchases in any country you visit, anywhere in the world.
a) India Travel Card
Presenting the Axis Bank India Travel Card, a unique prepaid debit card to secure your
currency needs when you travel in India. Loaded with a host of unique features, the India
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Travel Card is designed to make your trip more enjoyable and free from foreign currency
exchange hassles\
b.) Outward Remittance
Send money abroad in a secure and convenient way. Axis Bank offers Outward
Remittance facilities enabling you to remit money abroad through reliable and quick
transactions.
Send money abroad for reasons more than one: education, medical purpose, gifting,
maintenance for loved ones or donation for a cause.
c) Foreign Currency Travellers ChequesA tried and tested way of carrying foreign exchange overseas. American Express Traveler's
cheques are widely accepted globally as a mode of payment in many parts of the world. It is
always worthwhile taking some of your foreign exchange in travelers' cheques as it is a great
backup to cash and cards.
The beauty of Travelers' Cheques is that they can be replaced if they are lost or stolen. It
always helps if you keep a record of your travelers' cheque numbers in a safe place,
preferably a copy with you (but not with your cheques) and another copy at home (or
somewhere where someone can fax them to you if you need to make a claim for lost
cheques).
d) Foreign Currency CashCash is the oldest and commonest method of carrying foreign exchange overseas.
Carrying small amount of local currency or internationally acceptable currency variants
in your wallet when you travel overseas is reassuring and convenient - especially to make
payments for the services you may require on your arrival at the destination. According
to FEMA guidelines, the maximum amount of currency that can be availed of for any
purpose of travel is the equivalent of USD 2,000.
9.) OTHERS:
(a) Mobile Refill
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With Axis Bank's mobile refill facility, customer no longer have to worry about losing
their mobile connectivity anytime of the day or night. Axis Bank's mobile refill facility
enables to refill mobile over the Internet, on the ATM and even through SMS.
(b) Lockers
Axis Bank also provides lockers to its esteemed customers. Any customer that wants
locker facility can contact to any branch of Axis Bank. No need of any documentation.
(c) Online Shopping
Axis Bank offers the convenience of shopping at many major Online stores from the
comfort of home or office. All customer needs is an internet enabled PC. He can choose
& then get the items delivered at his doorstep. He can also avail numerous online
services, get to know about the current special offers/discounts and get a preview of the
new items added on to the shelves by these online retailers/service providers. Payment
can be made by debiting account through the secured payment channel, iConnect – Axis
Bank’s internet banking platform.
A critical illness plan means customer can insure himself against the risk of serious
illness in much the same way as they insure their car and house. It will give the same
security of knowing that a guaranteed cash sum will be paid if the unexpected happens
and customer is diagnosed with a critical illness.
d) E-Statement
Axis Bank offers the facility of E-Statement. E-Statement are secure and electronic way to
receive statement of accounts from the Bank.
SWOT ANALYSIS
STRENGTH
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Support of various promoters
High level of services
Knowledge of Indian markets
WEAKNESSES
Market capitilazation is very low
Not been fully able to positon itself correctly
Complicated nature of products and sevices deteriorate the interest of customers
OPPORTUNITIES Growing Indian banking sectors
People are becoming more service oriented
THREATS From different competitors
Foreign banks
Governments banks
Future market trends
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CHAPTER -3
RESEARCH
METHODOLOGY
35
RESEARCH METHODOLOGY:
Research is a process through which we attempt to achieve systematically and with the
support of data the answer to a question, the resolution of a problem, or a greater
understanding of a phenomenon. This process, which is frequently called research
methodology,
Primary data used with the help of questionnaire
Secondary Data used with the help of internet, newspapers and annual reports of AXIS
BANK
Sample design
Doing research via sampling was important because of impossibility of finding all of a
population, as well as other restrictive parameters like cost, time etc. Our sampling decision
should be in-coordination with the research and data objectives. The method opted for taking
samples was `Non-probability sampling’.
Sample size – 100
LIMITATION OF STUDY:
Lack of cooperation.
The topic covers condense data.
Oblivious attitude of customers create problems
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CHAPTER-4
ANALYSIS &
INTERPRETATION
37
1) If given an option, which bank will you prefer to deal with as a customer?
Among the total customers, 36% customers are in favor of SBI. These customers prefer to
deal with SBI, the reason being it is a public bank and it is located in every nook and
corner of the city.
The second preference of the customers is Axis bank, 31% customers favor this bank for
banking activity. Thus, giving tough competition to SBI. 22% customers are in favor of
HDFC Bank. Bank of Baroda, Standard chartered and Karnataka bank are also preferred by
some customers.
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2). Does Axis bank educate you about the net banking services being offered?.
80% respondents agree that axis bank educates its customer while 20% are not agree
3) Do you think E-banking is more convenient & suitable as compare to traditional
banking ?
Almost 92.1% of the respondents agree that the electronic services are more convenient and
suitable in present life. On the other hand 7.9% respondents disagree
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4) Usage of ATM is easier, authenticated and safe?
It is revealed that 90.7% of the respondents think that using an ATM is easier,
authenticated and safe for conducting banking transaction and 9.3% of the
respondents deny this statement
5) Which bank’s ATM you use the most, for cash withdrawal?
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Among the total no. of customers, 36% customers said that they use Axis bank’s ATM the
most for cash withdrawal because its location covers almost all the areas of the city. The next
preference is HDFC Bank and 26% customers said that they use HDFC bank’s ATM because
they are convenient with it. The third preference is SBI and 22% people are in favour of this
bank. The reason being it is a public bank. 6% are totally loyal to their existing ICICI bank.
PNB, BOB and Standard chartered are also preferred by some customers.
6) Kindly rate the below mentioned banks as per the ambience and infrastructure facilities
provided to the customers?
42% people said that AXIS BANK is the best
23% people said that SBI is the best
16% people said that HDFC is the best
13% people said that ICICI is the best
6% people said that PNB is the best
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7) Are you aware about the e-wallet card of axis bank?
It is revealed that 63% respondent are not aware about the e-wallet card and rest of
are aware
8) Do you agree the product that purchased was according to your need?
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72% respondents said that they were satisfied where 28 % respondents didn’t find the
products as per their needs.
9) Competition between Axis bank ,Hdfc bank, UTI bank and Central bank on basis of
their no. of debit card holders
COMPARISION ON THE BASIS OF NO. OF DEBIT CARD HOLDERS
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
ICICI UTI AXIS BANK CENTRAL
10) Do you feel safe in disclosing your details on net?
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As per respondents’ feedback, it is found that 76.3% respondent think that use of
Debit card is better than Credit card and 23.7% negated this statement.
11) Is credit card transaction safe and secure?
It is also found that 81.2% think that card transaction is safe and secure and 18.8%
respondents faced problem.
12) Have you Encountered the processing error while transaction with card?
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12% respondent encountered the error whereas 88% didn’t encounter.
13) Do you think Online banking transitions save time?
On the basis of analysis of respondents feed back, it is found 85% respondents feel that
online banking system save time and 15% doesn’t support it.
14) Learning to use a net banking is easier for customer.
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It is found that 81.1% respondent think that learning to use a net banking/online banking
is easier but 18.9% disagree with this statement.
15) Do you think mobile banking services are more useful?
It is further observed that 77% respondents’ think that mobile banking services are more
useful but 23% do not agree
16) Do you find EFT services is more secure and Time saving?
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80.9% respondents feel that it is more secure and 19.1% said that it is not safe and secure.
CHAPTER -5
FINDINGS
47
FINDINGS
1. 80% customers are educated about the axis bank products and services while 20%
are not aware about them
2. 91.2% customers feel e-banking services are safe and secure
3. 63% customers are not aware about the e wallet cards
4. 72% respondents said that they were satisfied where 28 % respondents didn’t find the products as per their needs.
5. As per respondents’ feedback, it is found that 76.3% respondent think that use of Debit card is better than Credit card and 23.7% negated this statement
6. It is also found that 81.2% think that card transaction is safe and secure and 18.8% respondents faced problem
7. 12% respondent encountered the error whereas 88% didn’t encounter.
8. On the basis of analysis of respondents feed back, it is found 85% respondents feel that online banking system save time and 15% doesn’t support
9. It is found that 81.1% respondent think that learning to use a net banking/online banking is easier but 18.9% disagree with this statement
10. It is further observed that 77% respondents’ think that mobile banking services
are more useful but 23% do not agree
11. 80.9% respondents feel that it is more secure and 19.1% said that it is not safe and
secure.
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CHAPTER -6
SUGGESTIONS &
RECOMMENDATIONS
49
SUGGESTIONS & RECOMMENDATIONS
As Axis Bank is the 3rd largest private bank in India, therefore, it has contributed a lot
towards the progress of banking sector from the past 15 years since its establishment.
The 1st private bank to be opened in India emphasis on modernization, expansion and
diversification of private banks. The bank tried to make a good image of private banks
on public by providing every kind of services to its customers that they expect from
banks. Hence, people were getting less dependent on nationalized banks. Axis Bank has
not only given a new form of banking of private banks but also has maintained its growth
speed after increase in competition due to more private banks coming in banking sector.
Some of the important conclusions and recommendations are listed below:
AXIS:
To maintain the growth at steady rate.
Maximum promotion of products and increase in advertisements..
Deeply analyses competitor’s strategy and work on it, clearly.
Providing services to customers in best of their manner.
There is a need for better promotion for the investment products & services. The
bank should advertise its products through television because it will reach to the
masses
AXIS should concentrate on insisting on error free records, on performing the
service correctly the first time and employees telling customers exactly what
services will be performed
Educate the customers about the benefits of e- banking
Tapping the opportunities and trying to vanish the weakness
Use its strength optimally to give its competitors a disadvantageous position
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CHAPTER-7
CONCLUSION
51
CONCLUSION
From all of this, we have learnt that information technology has empowered customers and
businesses with information needed to make better investment decisions. At the same time,
technology is allowing banks to offer new products, operate more efficiently, raise
productivity, expand geographically and compete globally. A more efficient, productive
banking industry is providing services of greater quality and value. E-banking has become a
necessary survival weapon and is fundamentally changing the banking industry worldwide.
Today, the click of the mouse offers customers banking services at a much lower cost and
also empowers them with unprecedented freedom in choosing vendors for their financial
service needs. Axis Bank has come to realize that survival in the new e-economy depends on
delivering some or all of their banking services on the Internet while continuing to support
their traditional infrastructure and also it should consider the customer problem regarding to
e banking produts. The response of customers toward safety, persistent quality is little bit
negative so axis bank needs to resolve this problem and excel the customer services so that
strong bond between axis bank and its customers maintain and prosper. Needless to say axis
bank provides numerous products and services to its customers despite of it small portion of
the customers are not availing it because they are not properly educated about it. Thereby, to
introduction of new products and services seems futile if customers are oblivious about them.
There is an urgent need to educate customers about the benefits of e-banking and secure
there interest having in axis bank.
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QUESTIONNAIRE
53
Personal Information
1. Gender
Male Female
2. Age
25 years and below 26-35 years
36-45 years Above 45 years
3. Education
Below H.Sc. Completed school education
Graduate Post Graduate
4. Occupation
Own business Government employee
Professional Student
Housewife Other
5. Income
Less than 1 lakh p.a. 1-3 lakh p.a.
3-5 lakh p.a. More than 5 lakh p.a.
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Questionnaire1) If given an option, which bank will you prefer to deal with as a customer?
a) Bank of Baroda….. b) SBI …… c) Axis Bank…. D) HDFC ……e) Standard Chartered …..f) Other bank……….
2) Does your bank educate you about the net banking services being offered?
Yes ……. No……
3) Do you think E-banking is more convenient & suitable as compare to traditional banking?
Yes ……. No……
4) According to you Usage of ATM is easier, authenticated and safe?
Yes ……. No……
5) Which bank’s ATM you use the most, for cash withdrawal?
a) Bank of Baroda….. b) SBI …… c) Axis Bank…. D) HDFC ……e) Standard Chartered….. f) other bank………
6) Are you satisfied with bank charging amount on ATM access?
Yes ……. No……
7) Do you use credit cards?
Yes ……. No……
8) Which bank credit cards do you prefer to use?
a) Bank of Baroda….. b) SBI …… c) Axis bank…. D) HDFC ……e) Standard Chaterterd ….. f) Other bank ….
9) In your opinion credit card charges are heavier?
Yes ……. No……
10) Do you feel safe in disclosing your details on net? Yes…. No……
10) Does Credit transaction very safe and secure? Yes…. No……
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11) Have you Encountered the processing error while transaction with card? Yes…. No……
12) Do you think online banking transitions are financially secured? Yes…. No……
13) Learning to use a net banking is very easier for customer/user Yes…. No……
14) Do you think Mobile banking services are more useful?
Yes…. No……
15) Do you find EFT services is more secure and Time saving?
Yes…. No……
16) What changes would you recommend so as to enhance your satisfaction level?
