RETAIL BANKING IN INDIA WITH REFERENCE TO AXIS

BANK

A project submitted to

University of Mumbai

For partial completion of the degree of

BACHELOR OF MANAGEMENT STUUDY

Under the faculty of commerce be

ANKITA POSHETTY PULLE

Under the guidance of

MR.NITIN KASHIVALE

SWAYAM SIDDHI MITRA SANGH’S DEGREE DAY COLLEGE

MARCH 2021

1
 SWAYAM SIDDHI MITRA SANGH’S DEGREE DAY COLLEGE
Sonadevi Compound, Near Octroi Naka, Kalyan Road, Temghar
Bhiwandi,Thane-421302
Tel-02522-249191 MobileNo-8805249191
Email.:ssm.degreecollege@gmail.com Website:www.ssmseducation.com

CERTIFICATE

This is to certify that MR.ANKITA POSHETTY PULLE has worked and duly

completed her project work for the degree of bachelor of management studies under
The facility of commerce in the subject of marketing and her project is
entitled ‘‘RETAIL BANKING IN INDIA WITH REFERENCE TO
AXIS BANK” under my supervision.
I further certify that the entire work has been done by the leaner under my
Guidance and that no part of it has been submitted previously for any degree or

diploma of any university.

It is own workand facts reported by her personal finding and investigation.

NITIN KASHIVALE

Seal of collage

2
 DECLARATION

I am undersigned Miss ANKITA POSHETTY PULLE here by declare that he

Work embodied in this project work little RETAIL BANKING IN INDIA WITH
REFERENCE TO AXIS BANK form on my own contribution on the research work
carried out under the guidance of SHIVANI SINGH is a result of my own research
work and has not been previously submitted to any other University for any other
Degree/Diploma this or anyuniversity.

Wherever reference has been made to previous works of others, it has been clearly
indicatedas such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained Andpresented in accordance with academic rules and ethical conduct.

ANKITA POSHETTY PULLE

Certified by

Professor: NITIN KASHIVALE

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 ACKNOWLEDGEMENT

To list who all helped me is difficult because they are so numerous and the Depth
is so enormous. I would like to acknowledgment the following as being idealistic
channels andFresh dimension in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving chance to
do thisproject.

I would like to thank principal, MAHESH SONI for providing the necessary
facilitiesrequired for completion of the project.

I take this opportunity to thank to our coordinator. NITIN KASHIVALE her

moral support and guidance. I would also like to express my sincere gratitude
towards my project guide professor, SHIVANI SINGH whose guidance and care
made the project successful.

I would like to thank my college library. For having provide various reference books and
magazines related to my project. Lastly,

I would like to thank each person who directly or indirectly help me in the completion
of theproject especially my PARENTS who supported me through out my project.

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 INDEX

Sr. No TITLE

1 INTRODUCTION TO
the Retail Bank

2 INTRODUCTION TO
The Axis Bank

3 RIVIEW OF LITERATURE

4 RESEARCH METHODOLOGY

5 FACT&FINDINGS

6 ANALYSIS & DATA INTERPRETATION

7 SWOT

8 CONCLUSION

9 RECOMMENDATION&SUGGESTION

10 BIBLIOGRAPHY

11 APPENDIX QUESTIONAIRE

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INTRODUCTION
TO THE
RETAIL BANKING

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 RETAIL
Retail is the process of selling consumer goods or services to customers through
multiple channels of distribution to earn a profit. Retailers satisfy demand identified
through a supply chain. The term "retailer" is typically applied where a service provider fills
the small orders of many individuals, who are end-users, rather than large orders of a small
number of wholesale, corporate or government clientele. Shopping generally refers to the
act of buying products. Sometimes this is done to obtain final goods, including necessities
such as food and clothing; sometimes it takes place as a recreational activity. Recreational
shopping often involves window shopping and browsing: it does not always result in a
purchase.

Retail markets and shops have a very ancient history, dating back to antiquity. Some of the
earliest retailers were itinerant peddlers. Over the centuries, retail shops were transformed
from little more than "rude booths" to the sophisticated shopping malls of the modern era.

Most modern retailers typically make a variety of strategic level decisions including the type
of store, the market to be served, the optimal product assortment, customer service,
supporting services and the store's overall market positioning. Once the strategic retail plan
is in place, retailers devise the retail mix which includes product, price, place, promotion,
personnel, and presentation. In the digital age, an increasing number of retailers are seeking
to reach broader markets by selling through multiple channels, including both bricks and
mortar and online retailing. Digital technologies are also changing the way
that consumers pay for goods and services. Retailing support services may also include the
provision of credit, delivery services, advisory services, stylist services and a range of other
supporting services.

Retail shops occur in a diverse range of types and in many different contexts – from strip
shopping centres in residential streets through to large, indoor shopping malls. Shopping
streets may restrict traffic to pedestrians only. Sometimes a shopping street has a partial or
full roof to create a more comfortable shopping environment – protecting customers from
various types of weather conditions such as extreme temperatures, winds or precipitation.

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 BANKING
Banking is an industry that handles cash, credit, and other financial transactions. Banks
provide a safe place to store extra cash and credit. They offer savings accounts, certificates
of deposit, and checking accounts. Banks use these deposits to make loans. These loans
include home mortgages, business loans, and car loans.
Banking is one of the key drivers of the U.S. economy. It provides the liquidity needed for
families and businesses to invest in the future. Bank loans and credit mean families don't
have to save up before going to college or buying a house. Companies use loans to start
hiring immediately to build for future demand and expansion.
DEFINATION
Banking is defined as ‘’Accepting of deposits of money from public for the purpose of
lending or investments, repayable on demand or otherwise and withdrawable by cheque,
draft, or otherwise.’’

Definition of Banking-

Banking can be defined as the business activity of accepting and safeguarding money
owned by other individuals and entities and then lending out this money in order to earn a
profit. However, with the passage of time, the activities covered by the banking business
have widened and now various other services are also offered by banks. The banking
services these days include the issuance of debit and credit cards, providing safe custody of
valuable items, lockers, ATM services, and online transfer of funds across the
country/world.

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9
Role of Banks in Economic Development and Growth of
Countries?

Customers trust is the important goodwill for a role of bank to sustain in the market. People
will deposit money when and only customer trusts a bank which means they will get back
money on whenever demanded or else on the date specified in case of fixed deposits. Other
factors are also considered important element for a survival or reputation for the bank.

Banking is a business activity of accepting and protecting customer’s money and then
lending to the required customer’s with an intension to make profit after calculating various
types of risks. Now a days, role of bank comprise of various diversified services like debit
cards / credit cards, insurance, safety lockers, Automated Teller Machine, online fund
transfer across countries, etc. It is worth said that banking services plays a silent and crucial
role in everyone lives. The banks perform financial by pool of deposits and underway into
investments through risk conversion; thereby maintain the economy engine of the nations /
countries.
Banking business has given new ways for the growth of world’s economy, at a same time
role of banks in economic development and growth has gradually increased. Role of bank
looks straight forward of accepting money from customers and then lending the same funds
to the borrowers, banking activities have encouraged lot of people toward investments
which in turn is a part of countries economy growth. If banking business was not available
then savings would sit idle in your lockers and new business or new ideas would not be in
position to raise the funds and common people wouldn’t have big dreams.
Bank capital consist of earnings, debts, equities, etc and difficult task in banking business is
how well bank can manage the risk and drive business into profitable atmosphere. Risks
like:
Credit risk: When borrower fail to make payments as agreed.
Liquidity risk: Risk when securities or investment rather turned to grow slowly and cannot
prevent to adjust loss rather quickly.
Market risk: Risk when investment portfolio turns to decrease with the change in market
factors.

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Operational risk: Risk from business law penalty or capital penalty toward loan borrowed
companies.

Reputation risk: Risk towards trustworthiness of banking business toward customers.

Macroeconomic risk: Risks related with change in regulation now and then towards bank
operations. There are sets of framework defined by regulators within which a bank
institution must have to manage funds due to which this is considered as high weighed risk.

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 RETAIL BANKING

Definition:

Retail banking, also known as Consumer banking, refers to the offering of banking services
to retail customers instead of institutional customers, such as companies, corporations
and/or financial institutions.
What Does Retail Banking Mean?

What is the definition of retail banking?

Retail banking includes a wide range of banking services that belong to similar categories,
such as savings accounts, checking accounts, consumer lending, credit cards, debit cards,
mortgages, e-banking services, phone-banking services, insurance, investment and fund
management.
Consumers use local branches that have the capacity to deliver all these services to retail
customers. In fact, retail-banking keeps the money circulating as the Fed allows only 10%
of deposits on hand. So, the retail banks have to circulate the remaining 90% either in the
form of loans or in the form of investment products.

KEY TAKEAWAYS

• Retail banking provides financial services to individual consumers rather than large
institutions.
• Services offered include savings and checking accounts, mortgages, personal loans,
debit or credit cards, and certificates of deposit (CDs).
• Retail banks can be local community banks or the divisions of large commercial
banks.
• In the digital age, many fintech companies can provide all of the same services as
retail banks through Internet platforms and smartphone apps.
•

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 • While retail banking services are provided to individuals in the general public,
corporate banking services are only provided to small or large companies and
corporate bodies.

Example
Mary wants to open a savings account. So, she visits the local branch of a large commercial
bank at the corner of her house. She deposits $3,000 into the new account, and she asks the
bank representative to deposit her paycheck of $2,500 in her existing checking account.
After the deposit is made, Mary maintains a checking account with a balance of $10,000 and
a savings account with a balance of $3,000.

The bank representative asks Mary is she would be interested in investing $2,000 in
collateralized debt options (CDOs) for a spread of 0.55% in senior debt, 0.48% in
mezzanine debt, and 0.25% in junior debt. Under this structure, Mary will pay an interest of
$65.50, and she will receive $136.50. So, for $2,000, her profit will be $136.50 – $65.50 =
$71.

As Mary is not so familiar with investment products, the bank representative suggests that
she could contribute to a retirement plan for herself, or open a savings account for her
children. Or even both.

Therefore, Mary leaves the bank with information on different retail products that she was
offered at the local branch.

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INTRODUCTION
TO
THE
AXIS BANK

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 AXIS BANK

Axis Bank is the third largest private sector bank in India. The Bank offers the entire
spectrum of financial services to customer segments covering Large and Mid-Corporates,
MSME, Agriculture and Retail Businesses.

The Bank has a large footprint of 4,528 domestic branches (including extension counters)
with 12,044 ATMs & 5,433 cash recyclers spread across the country as on 31st March,
2020. The overseas operations of the Bank are spread over eleven international offices with
branches at Singapore, Hong Kong, Dubai (at the DIFC), Colombo, Shanghai and Gift City-
IBU; representative offices at Dhaka, Dubai, Abu Dhabi, Sharjah and an overseas subsidiary
at London, UK. The international offices focus on corporate lending, trade finance,
syndication, investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations
in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of
India (SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India
(LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd.,
The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United
India Insurance Company Ltd. The share holding of Unit Trust of India was subsequently
transferred to SUUTI, an entity established in 2003.

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 BUSINESS OVER VIEW
An over view of various business segments

RETAILBANKING
Axis Bank has developed a strong retail banking franchise over the years.
Retail Banking is one of the key drivers of the Bank’s growth strategy and it
encompasses a wide range of products delivered to customers through
multiple channels. The Bank offers a complete suite of products across
deposits, loans, investment solutions, payments and cards to help customers
achieve their financial objectives. The Bank focuses on product
differentiation as well
The Bank has continued to develop its risk management capabilities in Retail
business, both from a credit and operations risk stand point. The branch
channel is effectively utilised for growing the retail assets business, with loan
and card products being offered to existing clientele.

• The growth areas identified by the Bank are in the areas of residential
mortgages and passenger car loans. Of the total retail loans portfolio,
88.47%isinthe form of secured loans(residential mortgages and auto loans).

• The Bank offers a wide range of payment solutions to its customers in the
form of debit cards, prepaid cards and credit cards. As on 31st March 2012,
the Bank has a base of approximately 124.99lac debit cards, placing it among
the leading players in the country. The Bank is also a dominant player in
prepaid cards. Axis Bank has over 2 lakh installed EDC machines - a highest
for any bank in India.

• Axis Bank Privée’, an exclusive private banking service offersad visory,

investment and lending solutions to its customersacross10 cities in the
country. Privée follows a client-focused investment process and a team-based
approach for managing client relationships. The relationship management
team is supported by a team of product specialists, client servicing teams,
investment consultants and research experts. The private banking business
focuses on addressing both the personal and corporate advisory needs of an
entrepreneur or business family by bringing solutions offered by various
business groups across the retail and corporate businesses within the Bank
under an integrated platform.

• The Bank launched ‘Axis Bank Wealth’ in 2008-09 targeting customers who
have a total relationship value with the Bank of between Rs.30lacs and
Rs.200lacs. The value proposition aims at delivering ‘OneBank’ experience
to such customers and is positioned as a complete solution involving banking,
investment and asset needs.

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• The Bank also distributes third party products such as mutual funds, Bank
assurance products (life and general insurance), online trading, Gold and
Silver coins through its branches.

• The retail business of the Bank is supported by innovative services and

alternate channels which provide convenience of transactions to customers.
These channels include an extensive ATM network, internet banking, mobile
banking and phone banking.

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 International Retail

• International Retail Business focuses specifically on the overseas sales

channel, retail foreign exchange business, remittances and retail businesses in
overseas centres such as Hong Kong and Sri Lanka, where the Bank has a
presence. The products offered in the area of retail Forex and remittances
include travel currency cards, inward and outward wire transfers, traveller’s
cheques and foreign currency notes, remittance facilities through online
portals as well as through collaboration with correspondent banks, exchange
houses and money transfer operators. The Bank continued to have a market
leadership position in Travel Currency Cards with 11 currency options other
than INR being offered. The aggregate spends on Travel Currency Cards have
crossed USD 3 billion during theyear2012-13.
•

BUSINESSBANKING

Business Banking leverages the Bank’s strengths – a well distributed net

work of branches and a strong technology platform to offer the best in
transaction banking services. The Bank offers a range of current account
products and cash management solutions across all business segments
covering corporates, institutions, central and state government ministries and
undertakings as well as small and retail customers.

• The Bank is one of the top CMS providers in the country. The Bank acts as an
agency bank for transacting government business offering services to various
Central Government Ministries / Departments and other State Governments
and Union Territories.

• In order to provide solutions for business to effectively manage their funds

flow, the Bank has introduced liquidity management solution for corporate
customers. Similarly, a single window for all payment requirements was
launched with several advanced features such as setting a daily transaction
limit for corporate users, setting transaction limits for individual beneficiaries,
prioritizing payment methods, online stop payment and can collation
facilities.

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Axis bank offers its services majorly in four parts:

A. Personal

B. Corporate

C. NRI

D. Priority banking

A. Personal
Axisbankoffersvariousservicesforindividualdomesticcustomers,which includes services
like
1. Accounts

2. Deposits

3. Loans

4. Cards

5. For ex

6. Investments

7. Insurance

8. Payments

9. Other services

1. The accounts offered by axis bank for its customers are:

• Easy Access Savings Account

• Future Stars Savings Account

• Krishi Savings Account

• Prime Savings Account

• Prime Plus Savings Account

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• Women’s Savings Account (smartprivilegeaccount)
• Priority banking Account
• Demat Account
• Seniorcitizen’s Account
• Defence Salary Account
• Trust/NGO Savings Acoount
• Insurance Agent Account
• Resident Foreign Currency(Domestic)RFC(D)Account
• Pension Savings Bank Account
• Youth Account
• 3-in-1Online Investment Account

Deposits offered by Axis Bank:

a) Fixed Deposits

Axis Bank offers simple reinvestment Fixed Deposits (at very competitive
interest rates), which can be opened with a minimum investment of Rs10,000.
Customers can make additions to your deposit in multiples of Rs1,000 each.
The tenure of their deposit must be a minimum of 6months.

b) Recurring Deposits

Axis Bank's Recurring Deposit scheme will allow you with an opportunity to
build up your savings through regular monthly deposits of fixed sum over a
fixed period of time.

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 Axis bank offers Corporate services, like:

10. Exclusive Banking Redefined-Club 50 Current Account

At a half yearly average balance of Rs. 50lacs (Rs. 25lacs at Semi - Urban
/Rural branches), this premium current account smoothly fulfills your daily
banking requirement.
Main Features:

▪ Dedicate relationship manager

▪ Life style benefits/privileges

▪ Free doorstep banking

▪ Free RTGS/NEFT Facility

▪ Cash Management Services

▪ Free International Business Gold Debit Card

11. Various types of Current Accounts to suit every business

requirements like:

The Banks offers a range of current account products to meet the needs
of the various customer segments such as Small Enterprises, Trade,
Exproers, Corporate and intuitions.

▪ Normal Current Account

▪ Business Advantage Account

▪ Business Select Account

▪ Business Classic Account

▪ Business Privilege Account

▪ Channel One Account

▪ Current Account for Govt Organisations

▪ Current Account for Banks

▪ Current Account for Builders & Real Estate

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 ▪ Capital Market Current Account

▪ Krishi Current Account

▪ Business Global Current Account

▪ Club50CurrentAccount

▪ Inland Road Transport Current Account

▪ Travel, Tourism and Hospitality Current Account

▪ Local Current Account Current Account for Pharma

▪ Current Account for Chartered Accountants

These products offer flexibility to customers to choose from the above option
with varying minimum average quarterly balance commitments and charges
structure. In addition to conventional banking facilities, these accounts offer
Multi-City at Par payable cheque – book facility and anywhere banking facility
across offer Multi – city At Par payable cheque – book facility and any where
banking facility across braches. Customers can access their account Online
through Corporate iConnect, Axis Bank’s Internet banking platform as also
through Tele-Banking facility and can receive account balance information on
mobile telephones and electronic mail. Customers are subject to transaction
charges including charges for non-maintenance of the committed balances.
Axis Bank brings different kinds of current accounts for different types of
businesses select the one that best suits an individual’s business requirements.
Axis Bank’s Current Account came equipped with the following features to give
maximum value for an individual’s money.

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INTERNET BANKING

Since April 2000, the Internet Banking channel has grown fast to com pelmet
the branch and ATM network. As of March 2006, there are around 20 lakh
users of internet banking, which amounts to more than 50% of Axis Bank’s
retail banking savings accounts customers. Apart from routine functional like
balance and transactions lookup, we also provide a number of value – added
services on the internet banking platform. A bride description of each
productis given below:

Bill Payment
The bill payment series on the internet can be classified into three categories:
• Presentment of EBPP (Electronic Bill Presentment and Payment).-
Under this type of bill payment, the customer needs to register for each
bill. Once registered, the biller will sent an electronic version of the bill
for acceptance and payment.
• Direct Payment. - Under this type of bill payment, no bill present ment
happens. The customer is free to select the biller and pay accordingly to
his convenience.
• Payee: This a variation of direct payment method with the customer
creating his own biller for example, payment of rent to landlord. The
land lord’s account details would typically be entered and payment
made on a recurring basis.

Shopping
A customer with Internet banking access can buy from merchants registered with
us and pay through the direct debit facility on Axis Bank’s website.

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MOBILEBANKING

Mobile banking was launched by the bank in October 2004, within the last one
and a half year; the customer base has grown to over five lacs subscribers as of
April 2006.
Axis Bank Offers the Automatic Alerts service in mobile banking:
A subscriber is alerted through SMS on the activities in his account with
automatic alerts for every debit in his account of more than Rs. 5,000. Also if
the customer is registered for bill payments, he receives an alert as soon as a
bill is presented by the biller for payment.

Benefits

Safety: Be alerted on any transaction above Rs.5,000 in an individual’s

account so that action can be initiated promptly in case of any misuse of the
account.
Convenience: Know the status of the account from wherever

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 REVIEW
OF
LITERATURE

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• Litera ture Review

Indian Banking industry is one of the most technologically advanced industries with

vast networks of branches empowered by strong banking systems, their wide range of

product and effective distribution channel capabilities. However, regulatory, structural

and techno logical factors are significantly changing the banking environment through

out the world. One of the most important factors that is motivating the growth of the

Indian banking institutions is the liberalization. The financial sector reforms in India

were designed to infuse greater competitive vitality in the banking system. To achieve

this objective, the “Narsimhan Committee” was formed. The Narsimhan Committee

report suggested wide ranging reforms for the Indian banking sector in 1992,

including the important one to introduce internationally accepted banking practices so

as to enable Indian banks to achieve service excellence. The Committee

recommended a liberal policy towards the entry norms of private sector banks and

foreign banks into the Indian banking sector.

The Interest rate structure has been deregulated to a great extent and bank

shave been given a great degree of freedom in determining their rate structure for

deposits and advances, as well as their other product range. Banking has also become

more competitive in respect of branch network. The end result is that market power is

getting shifted from banks to their customers. Financial liberalization has led to

intense competitive pressures, and retail banks are consequently directing their

strategies to wards increasing customer satisfaction and loyalty through improved

service quality. With such a high potential in the Indian banking industry, all leading

banks are looking ahead to establish themselves as the most preferred bank by the
26
customers and this can only happen when they are able to differentiate themselves on

the basis of service quality being offered by their competitors. Retail Banking has

immense opportunities in a growing economy like India. As the growth story further

unfold sin India, retail banking is going to emerge a major driver of economic growth.

A.T. Kearney, a global management consulting firm, recently identified India as the

second most attractive retail distribution centre of 30 emergent markets.

• Statement of Problem

The present study is accordingly, devoted to a detailed probe into the retail banking in

India. It also focuses to make a comparative study, on the basis of quality dimensions,

between public sector banks and private sector banks. The study has set its scope to

evaluate the nature, prospects and challenges as well as organization and working of

retail banking in India.

Before embarking upon the actual conduct of the study, a survey of available

and pertinent published work on the subject of this study is made in order to have an

insight into the depth of Retail Banking and also the specific aspects covered in the

work. The Review of Literature presented below recounts the work so far done in the

field of present study, the nature of the work, the aspects dealt with as well as brief

outcome emerging from the studies.

• Bayel & Janalgie (1994) had set their goals of services quality dimensions in

Retail Banking. First the study investigates & identifies the services quality

dimensions pertaining to financial services. Secondly, it examines the

relationship between perception accorded to these dimensions & the overall

attitude towards the banking. Thirdly, it examines the important discrimination

27
 in service quality factors among the different group of banks by paired

comparison.

• Robert Johnston(1997) in his study entitled as, “Identifying the critical

determinants of service quality in retail banking: importance and effects”,

focused on the categories of the quality factors in terms of the irrelative

importance and their effect on satisfaction and dissatisfaction. The study is

based on an analysis of over 200 customers in the UK banking industry

and100 interviewers. The study suggests that increasing the speed of

processing in formation, delighting customers, such as improving the

reliability of equipment, will less end is satisfaction rather than delight

customer.

• Frances X. Frei(1999) in the article entitled as, “Process variants as a

Determinant of Bank Performance: Evidence from the retail banking study”

explains the relation between retail banks branch-based processes and

financial performance. There are 11 processes included in this study which

represent the bulk of activities performed in a typical retail branch (eg opening

checking accounts). The findings of this study are that the financial

performances of banks that perform better across these processes tend to be

better than that of other banks.

• Applied Communicating Inc (ACI) (2003) in the study entitled as,

“RetailBanksRequireEnhancedSystemsastheIndustryChanges”exploresthechal

lenges that retail banks must overcome with innovative IT systems.

Intoday’sfastpacedtechnologicalage,consumerandcorporatecustomers

28
 expect faster execution of transaction. The challenge for the bank IT groups

isto ensure how their system can cope with the voluminous transaction without

increase in per-transaction processing cost. The article discussed managing

electronic funds, prepaid card e-money, remittance market and how

bankingservicesthroughinternethavebeenreplacedbymobilebankingtechnologie

s& ATM.

• Bhayani,S.J.(2003) in his study entitled as, “Empirical Study on Retail

Banking Awareness” has focused on the Retail Banking Awareness by

conducting a survey on 200 customers having their current accounts with

private banks, nationalized and cooperative banks in Rajkot city of Gujarat.

The main objectives of his study was to compare the services provided

bydifferentprivatesectorbanksintheRajkotCityandalsotoknowthecustomers

awareness about the services provided and how often they utilized these

services. The study concludes that in India, due to various factors like

illiteracy etc, the IT awareness of the customers was still very low. That’s why

the banks needed to put major efforts towards educating the customers for

building up an IT savvy customer base”.

• Source Technologies, (2004) in this paper entitled as, “Teller Assisted Self

Services: The New Face of Retail Banking” emphasize the concept called

Teller Assisted self services(TASS), which is the amalgamation of self-

services and human services. How this service had integrated multiple data

sources and CRM information is also dealt with.

29
• Temu Santonen (2004) in the article entitled as, “Price Sensitivity as an

Indicator of Customer Defection in Retail Banking” analyses different

dimensions of perceived service loyalty, including price stability, and explains

the customer defection in retail banking in Finland. The study find out that the

growth of the body of knowledge regarding customer loyalty & price

strategies in retail banking is vital since price competition is becoming

increasingly wide spread. The study also implied that in retail banks with a

greater than average amount of price sensitivity customers will lose most in a

scenario of aggressive price offers; loyal customers are receptive to tempting

marketing information. The willingness to acquire information is strongly

related to customer defection and banks should prepare solid counter attacks,

when substantially lower price based rivals enters into the markets.

30
 RESEARCH
METHODOLOGY

31
 3. RESEARCH METHEDOLOGY

TITLE OF STUDY

DURATION OF PROJECT

Short term project.

OBJECTIVES OF STUDY

Banking and finance can be called as the nerves of any economic system as
they accelerate the process of economic development through canalization of
adequate finace. It is hard to anticipate development to fefficient banking
services in the country. No doubt financial institutions play so important in
economic development but at the sometime economic development determines
the growth and development of banking institutions the role of various kind of
banking institution. In economic development need not bee mphasized.
Main objective of the study is to “Critical appraisal of product & services of
fered by axis bank.” Some of the major objectives of the study include the
determination of the following:

▪ Consumer awareness about the products and services provided by the

axis bank.
▪ Consumer preference about various products and services.
▪ Customer’s perception towards private Banking and their expectations
from private banks.
▪ Customer satisfaction with the service provided by the bank.
▪ Draw out with conclusion sand suggestion based on the analys is and
the interpretation of data.

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 TYPEOFRESEARCH

Research is one of the most important parts of any study and pertains to
thecollection of information and knowledge. Marketing research is defined as
thesystematicdesign,collection,analysis,andreportingofdataandfindingsrelevant
to a specific marketing situation facing the company. My project hasbeen
developed on has basis of both exploratory and descriptive research.The
research process depends upon developing the most efficient plan forgathering
the needed information. Designing a research plan calls fro decisionson the
data sources, research approaches, research instruments, sampling
paln,andcontact methods.

SAMPLE SIZE AND METHOD OF SELECTING

SAMPLE

I chose a sample size of 40 respondents consisting of based on

judgmentsampling All respondents were the customers of Axis Bank. The
method wassimple randomsampling.

DataSource
For this project both primary and secondary data were valuable sources
ofinformation.

Secondarydata
Secondary data provides a starting point for any research and offers
valuablesourcesof already existing information.Secondarydataaretheeasiest
togatherandthecostofcollectingthisdataisalsoverylow.Formyprojectworkitwasc
ollectedthroughthehelpofvariousdirectoriesofvariousassociations, magazines,
newspapers, websites etc. The directories helped meinshort lisitngpeople, for
my target people.

33
Someofthedirectoriesmadeuseofare asfollows:
 Telephonedirectory
 Incometaxoffice
 Citydirectory
 Charteredaccountantdirectory
 Carpetindustriesdirectory
 Indianmedicalassociationdirectory
 Transporterdirectory
 Lawyersdirectory
 Builders&constructorsdirectories

Primarydata
Primary data are data freshly gathered for a specific purpose. For my
projectworktheprimarydatawascollectedbymeansofsurveythoughquestionnaire
s.
Contactmethods
Once the client had been decided now my task was how to contact them,
andformethereonlytwowaysof contacting them.
1. Personal interview:- this method was the most appropriate
wayof survey, because by personal interview I came to know
abouttheirfeeling for AxisBank.
2. Telephone:- This method was also used by me once or
twice,keepinginmindthebusyscheduleofafewrespondents.

SCOPEOFSTUDY
Axis Bank is one of the most famous banks in India. The various products
andservices offered by it include:
PRODUCT
• Deposits(Savingaccountandcurrentaccount)

34
 • Loans
• Card

SERVICES
• ATM
• MobileBanking
• InternetBanking
• Payment
• OtherServices
The deposit mix of an organization especially the Saving accounts are
thebackbone of every bank as an ordinary man is most inclined to invest in it
dueto its convenience and easy availability. This project deals with the
variouscustomer concerns regarding these and tries to suggest appropriate
suggestingbased on conclusions. I hope that this report would be able to
suggest somemeasuresanddrawattentionofbanktowards thearea
ofimprovement.

LimitationsofStudy

• The study was based on a very modest sample size hence cannot
becalledasarepresentationoftheviewsandopinionofthemajority.
• In a rapidly changing industry, analysis on one day or in one
segmentcan change very quickly. The environmental changes are vital
to beconsideredinorder toassimilatethe findings.
• Theconclusionarrivedatarebasedonaverylessexperienceofresearcherin
thisfield.

35
 QUESTIONNAIRE-1

‘COMPARATIVE ANALYSIS OF SAVING AND

SALARYPRODUCTSOFAXISBANKWITHHDFCANDICICIBAK’

(Facts and Findings)

DATA
INTERPRETATION

36
ANALYSIS-1
Thisanalysisdisplaysthedivisionofsampleaccordingtotheoccupation.Atotalof100peopl
eweresurveyed.

Table1

Cumulative
Frequency Percent ValidPercent Percent
Valid SALARIED 44 44.0 44.0 44.0
BUSINESS 24 24.0 24.0 68.0
PROFESSIONAL 32 32.0 32.0 100.0
Total 100 100.0 100.0

37
ANALYSIS-2

Howthecustomers findsalaryandsavingsaccountprovidedbyAxisBank?

customers
very
goodgoodsa
tisfactoryex
ellentpoor

ANALYSIS-3
Docustomers
haveanyotherproductofAXISBANKotherthansavingsandsalaryaccount?(Liketermdeposit,
mutualfunds,insurance,homeloan,carloanetc.)

THIRDPARTYPRODUCT

YESN
O

ANALYSIS-3
Arethecustomerssatisfiedwiththeirsavingsandsalaryaccount?

NO.OFPEOPLE

YES
NO

38
ANALYSIS-4

Which bank is better in providing services regarding transactions ?

BANKS

AXIS
BANKHDFC
BANKICICI
BANK

ANALYSIS-5

Which is better bank in ease of access (both branch & ATM) ?

BANKS

AXIS
HDFC
ICICI

ANALYSIS-6

Which bank’s accounts provide greater flexibility ?

BANKS

AXIS
HDFC
I

39
ANALYSIS-7

Are you satisfied with the relationship manager’s service provided by

Axis Bank ?

Relationship
Manager service

YES
NO

ANALYSIS-8

Which channel you use to access your account ?

HOW YOU ACCESS YOUR ACCOUNT

DIRECT
BRANCHMOBILEBAN
KINGNETBANKINGP
HONEBANKING

ANALYSIS-9

Which are the areas of improvement ?

AREAS OF
IMPROVEMENT

UPDATESSER
VICETECHNOL
OGYRMPROD
UCTS

40
 FINDINGS

• The bank has good relation with its customers. The customers are
verysatisfiedwiththerelationshipmanagerserviceprovidedbyAxisBank.

• Thebankanditscustomershavealongtermrelationship.AxisBankhasthetendenc
y to retain its customers at any cost. They believe that the oldcustomer is
more profitable instead of a new one that’s why they try
tomaintaingoodandlong termrelationsto their customers.

• Lessno.ofcustomerusemobilebankingornetbanking.

• The accounts of axis bank (both salary & saving) provide great flexibility
intermsof offering.

• The accounts of these three banks don’t have much difference in terms
offeatures
butwhenitcomestoserviceprovidingtheAxisBankgetsanedgebecauseof
theirgreat customerservices.

• Theaxisbankhasgoodno.ofbranchesandATM’sthat’swhyithasmoreeaseof
access.

• Thecustomers
ofAxisBankaresatisfiedwiththeirsavingsandsalaryaccounts.

41
 QUESTIONNAIRE–2

“CRITICALAPPRAISALOFPRODUCT&SERVICES”

(Facts and Findings)

DATA
INTERPRETATION

42
Which are group do you belong (Age wise) ?

Interpretation:
After looking this bar graph, it can be said the middle-aged group are the
maincustomerofthebanksastheyoccupiedalmost75%of this graph.The bank has
a huge potential in terms of the untapped market – Young and old age group
people. High pay packages to today’s employed youth and large saving with
the old age people (especially in urban areas) has made them
attractivepotentialcustomers.
Whatisyouroccupation?

Interpretation:
MostoftheserviceclasspeopleprefertoopenaSavingsAccountincomparison to the
business class people. This may be possible due to
thefacilityof“AnywhereBanking”suitingtheirneedsandpreferences.

43
Pleasespecifyyourannualincome?

Interpretation:
Income does not make any difference as far as opening the account in the
AxisBank is concerned, as the bar diagram is vividly revealing that more or
lesspeople of every segment of income group have opened and are opening
theaccount expert one group i.e. lower income group where emphasis is
requiredto penetrate this group so it can be said that the target group of the
axis bank,specially for saving account are of every segment of income group
since its isdevotedtorenderbest services toitscostumer.
what features/attributes, while opening an account do
youexpectfroma bank?

Interpretation:
When a customer visits any bank the first and foremost thing he expects is
thequickness of service and the promptness in entertaining by the bank
employee.Second thing customer wishes to have is proper information
regarding hisqueries.Onethisinthisbaralsoreallysignificantis,factorlikeless

44
formalities of document while opening an account. Varieties of product do
notmake a big impact on customer behavior for opening an account in any
bank ifits services are efficient. But on the other hand bank can’t ignore
workinghours.Asinthisbarcustomerhaserredit.Fortheseserviceslikebankprefere
nce should be given to make a prompt and customer friendly servicechannel.
For this focus must be given to make well informed and proactiveemployee
along with work should be executed technologically rather thanmanually.

What kind of account do you have in Axis Bank?

Interpretation:
Saving account is the leading and attractive product for the Axis bank as
itoccupies a major chunk in this bar. It is clearly implying that this product
hastheabilitytosatisfythecustomers.Onthesecondhadandthepositionscurrentacco
untsandfixeddepositshasalsobeenhelpfultoincreasethecustomer base but still
their performances needs to be improved. One thing inthis bar which is
significant is the business of the bank is relying on only fewleading products,
reason for this could be, neither it has limited range ofproducts nor rest of the
product does not have much ability to penetrate in thestiff market of banking
of Jaipur. That is giving an alarming message to themanagement of the bank to
go or analyzing the situation very minutely
andmustascertainwherethingsaregoingwrongandforthatwhatshortof

45
Who influenced to open an account in Axis Bank?

Interpretation:
As it is said a satisfied customer is the best medium for advertisement since
inthis bar friends and relatives have play a key role in opening the accounts
forothers, which implies that bank real customer are satisfied enough with
thefacilities available on the products and the services enjoyed bythem.
Anadvertisement and bank employees more or less has been good performer
intheir respective domain. It reveals advertisement of different medium, as
beenakeyfactoringeneratingtheawarenessaboutbanksproductaswellasfacilitiest
hataremade toavailable ontheninthe peoplesmind.

Your remark on products of Axis Bank?

46
Interpretation:
Asthis barisshowingat what level people are savedwith saving account,with its
unique facilities features, and ability to serve all the needs of customerbecause
by and large it can be said 75% people are saving good to savingsaccounts,
this implies that this product has been a leading product and still anattractive
product of the Axis bank. Reason for this could be different type
offacilityassociatedwiththisproduct,whicharereadingtruevaluetothecustomer
and marketing people are also very much devoted to give the bestfrom this
part. Efforts must be given to know why they are people who are
stillsayingaverageandpooraboutsavingaccountsandwhatarethefactorsthatare
going wrongwiththatsegment of people.

In comparison to other bank how would you rate Axis Bank?

Interpretation:
Ratingofanybankdependsonitsoverallperformanceintheeyeofthepeople. Thisbar
is vividly showing that theperformanceof Axisbank hasbeen good because in
such a short span of it’s existence in this city with strongcompetition from
major public sector bank like SBI and other private
banks,Reasonforthiscouldbe,ithasoccupiedadifferentpositioninthepeoplemind
with its customer friendly products and to serve them a efficient
andpromptbanking system.

47
How long did your wait in queue?

Interpretation:
Asthis bar graph showing 57% peoplewaitinqueue0-5
minutes.Whileitshouldbe100% people.

Do you think the number of counters available are sufficient?

Interpretation:
Asthisbargraphshowing 82%peoplearesufficient.Whileitshouldbe100%people.

48
 SWOT
ANALYSIS

49
 SWOT ANALYSIS

STRENGTHS

• Axis bank has been given the rating as one of top three positions in terms
offastestgrowth inprivatesector banks
• FinancialexpresshasgivennumbertwopositionandBT-
KPMGhasratedAXISbank asthebestbank with some26 parameters
• Thebank hasa networkof1,787domestic branches and10,363ATMs
• Thebankhasitspresencein971citiesandtowns
• The banks financial positions grows at a rate of 20% every year which is
amajor positivesign for any bank
• Thecompany’snetprofitisQ3FY12is1,102.27whichhasaincreaseof25.19
%growthcomparedto 2011

WEAKNESSES

• Gaps – Majorly they concentrated in corporate, wholesale banking,

treasuryservices,retailbanking
• Foreignbranches constituteonly8%oftotalassets
• Veryrecentlythebankstartedfocusingitsattentiontowardspersonalbankingandru
ralareas
• TheshareratesofAXISbankisconstantlyfluctuatinginhighermarginswhich
makesinvestorsinanuncomfortablepositionmostofthetime
• There are lot of financial product gaps in terms of performance as well
asreaching outtothecustomer

50
 OPPORTUNITIES

• Acquisitions to fill gap

• In2009,AlliancewithMotilalOswalforonlinetradingfor10millioncusto
mers
• In2010,acquiredEnamSecurities PvtLtd–brokingandinvestmentbanking
• InSep2009,SEBIapprovedAxisAsset
ManagementCo.formutualfundbusiness
• No.ofe-transactions increasedfrom0.7milliontoaround2million
• Geographicalexpansiontoruralmarket–80%ofthem
havenoaccesstoformallending
• 46%useinformallendingchannels
• 24%unregulatedmoneylenders
• Nownumberofbranchesincreasedto1787.
• Lastquartertherewere48newbranches openedacrosstheNation
• Since it’s a new age banking there are lot of opportunities to have the
advancetechnicalities inbanking solutions compared toexisting majorplayers
• The assets in their international operations are growing at a very faster
pacewithagrowth rateof 9%.
• TheconceptofETM(Everywheretellermachine)byAXISBankhadagoodrespon
seintermsofattracting newcustomersinpersonalbankingsegment

THREATS
• Since2009,RBIhasincreasedCRRby100basispoints
• Increasedrepo ratereversereporateby50points–11timesoflate
• IncreasingpopularityofQIPsduetoeaseinfundraising
• RBIallowed foreignbankstoinvest upto74%in Indianbanking
• Government schemes
aremostoftenservicedonlybygovernbankslikeSBI,Indian Banks,
PunjabNationalBank etc
• ICICIandHDFCareimposingstrongthreats
intermsoftheirexpansionincustomerbaseby their
aggressivemarketingstrategies

51
CONCLUSION

52
 CONCLUSION

• The study mainly was on the customer orientation that how they think,
whattheywant fromtheir banksandhowtheytake decision goingto anybank.

• In this study I found that the bond of Axis Bank with its customers is
verystrong,becauseAxisBankmainly focusesonretainingtheircustomers.

• ThisstudyfindsthathoweverAxisBankisnottheleadingprivatesectorbank but its

vast range of products and availability of options make it one
ofthebetterbanks inIndia.

• The bank should focus on the semi urban and rural market because
thesemarkets are very good opportunity for someone like Axis Bank which is
ingrowing face. Without expanding in these markets Axis Bank can not be
aleading bank so theyshould focus onthismarket.

• The bank should focus on mass banking in order to increase their

marketshare. They should launch such products which would be within the
reach ofthelowermiddleclass

• Thebankshouldpaymoreattentionongivingupdatesandshouldincreasethe level
of service providing because the competitors of axis are better in thisarea.

• The bank should try to increase the use of technology like mobile and
netbankingamongits customers.

53
RECOMMENDATION
AND
SUGGESTIONS

54
 RECOMMENDATION & SUGGESTIONS

• Mostlyserviceclasspersonsprefertheaxisbankinthecomparisonofbusines
s and students and other class persons thus it needs to promoteits
product and services that are offered mainly for the business
classpeople and students. Because these two class forms major users of
thebankingservices.
• Axisbankisnormallynotusingproperlyforthecurrentaccountsoitspopulari
ty ratio is quite down. This bank normally using for the
longtermplanning likesaving andFD.
• This bank is not investing more into the marketing sector so I
willsuggestthatsomeofthepartofincomeitinvestingintheadvertisingand
marketingsector.
• Intothecomparisonofotherbankitsperformanceisquitegoodbutnotan
effective so this may be doing the rates were down with some
otherfacilities.

55
BIBLIOGRAPHY

56
 BIBLIOGRAPHY

1. https://www.investopedia.com/terms/r/retailbanking.asp#:~:text=Retail%20banking
%20is%20a%20way,certificates%20of%20deposit%20(CDs).

2. https://www.thebalance.com/what-is-a-retail-bank-315209

3. https://www.thebalance.com/what-is-retail-banking-3305885

4. https://www.thebalance.com/what-is-banking-3305812

5. https://www.investopedia.com/terms/b/bank.asp

6. https://retail.axisbank.co.in/

57
 APPENDIX
QUESTIONAIRE

58
 APPENDIX
QUESTIONNAIRE-1
Name………………………………. Address…………………………
Gender…………………… …………………………………...
Age……………………………….. Occupation…………………………

1. Which income group do you belong to?

a) Lessthan50,000p.a.
b)50,000to 1, 00,000 p.a.
c)1, 00,000 to3, 00,000 p.a.
d)3, 00,000to 5, 00,000 p.a.
e)More than5, 00,000p.a.

2. How you find the salary / saving accounts of Axis Bank?

a) Very good
b) good
c) excellent
d) poor
e) satisfactory

3. Do you have any other product of axis bank other than salary/saving account?
a) Yes
b) No

4. Are you satisfied with your salary/saving account?

a) Yes
b) No

5. Which bank has ease of access?

a) Axis bank
b) HDFC Bank
c) ICICI bank

6. Which bank offers youth flexibility in its products?

a) Axis Bank
b) HDFC Bank
c) ICICI Bank

59
 7. Which is the area of improvement for Axis Bank?
a) Products
b) RM
c) Services
d) Technology
e) Updates

QUESTIONNAIRE-2

Name………………………………. Address…………………………
Gender…………… …………………………………...
Age……………………………….. Occupation…………………………

Which age group do you belong?

a) Lessthan25
b) 25to 40
c) 40to 55
d) Above55
What is your occupation?
a) Service
b) Business
c) Student
d) Others
Please specify your annual income?
a) Lessthan1lakh
b) 1to2lakh
c) 2to3lakh
d) 3to4lakh
e) Morethan4lakh
What features/attributes, while opening an account do you expect from
a bank?
a) Quick Services

60
b) Variety of products
c) Less formalities of documents
d) Working hours
e) Proper information

What kind of account do you have in Axis Bank?

a) Saving Account
b) Current Account
c) Fixed Deposits
d) NRL Account
Who influenced to open an account in Axis Bank?
a) Bank Employees
b) Prospectus
c) Advertisement
d) Friend and Relative would you recommend
Your remark on products of Axis Bank?
a) Excellent
b) Good
c) Average
d) Poor
In comparison to other bank how would you rate Axis Bank?
a) Excellent
b) Good
c) Average
d) Poor
e) Can’t Say
How long did your wait in queue?
a) 0-5minutes
b) 5-10minutes
c) Morethan10minutes

61
Do you think the numbers of counters available are sufficient?
a) Yes
b) No

62