Executive Summary

The banking sector in India has become very much competitive in the last few years with the increasing growth of private and public sector banks. Day by day the competition is becoming more stringent and crucial. I undertook training in AXIS bank limited for profiling to understand the banking operations and services provided by AXIS bank. The topic "Branch Banking" helped to understand the overall banking operations of a branch. This project is basically being formulated to study the branch banking operations in the Branch of Axis Bank. This includes parameters like overall performance, current account, saving account, and other facilities being provided by AXIS BANK. It also includes a study of customer centricity approach of AXIS bank. The market needs are continuously changing and so are the needs of the Current account & Savings account holders. The major backup of any nation are the industrialists of the same and the prior to them is the facility of the current accounts and customer of banks which open saving account. Hence the facilities equipped in current accounts & saving account is always a task for research. AXIS Bank is one of the fastest growing banks in the country and has an extremely competitive and profitable banking franchise evidenced by: Comprehensive portfolio of banking services including Corporate Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking. The quality of service is best among the competitors This Project Report involves an attempt to bring forward the various facilities being provided by the top privatized bank as for the current account& saving account holders. Also the significance of AXIS BANK has been brought forward in the report. As this project is a part of the academic curriculum, the learnings and experiences from the training at AXIS Bank are also included in this report.

Industry Overview (Banking Industry)

Banking - An overview: Banking is an activity of engaging in the business of keeping money for savings and checking accounts, for exchange or for issuing loans and credit, transacting business with a bank; depositing or withdrawing funds or requesting a loan etc. In general terms, 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. Banking in the modern sense of the word can be traced to medieval and early Renaissance Italy, to the rich cities in the north like Venice and Genoa who dominated banking in 14th century, establishing branches in many other parts of Europe. Perhaps the most famous Italian bank was the Medici bank, set up by Giovanni Medici in 1397. The earliest known state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy The oldest bank still in existence is Monte dei Paschi di Siena, headquartered in Siena, Italy, which has been operating continuously since 1472. Banking In India Overview:

Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.

Banking History: The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. Promoters opened banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century. Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking centre.

Around the turn of the 20th Century, the Indian economy was passing through a relative period of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial and other infrastructure had improved. Indians had established small banks, most of which served particular ethnic and religious communities.

By the 1900s, the market expanded with the establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai - both of which were founded under private ownership. Punjab National Bank is the first Swadeshi Bank founded by the leaders like Lala Lajpat Rai, Sardar Dyal Singh Majithia. A number of banks established then have survived to the present such as Bank of India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.

Structure of B nking in Indi y Indi n B nking Sector: The l t decade has seen many positi e developments in the Indian banking sector. The policy makers, which comprise the Reserve Bank of India (RBI), Ministry of Finance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favourably with banking sectors in the region on metrics like growth, profitability and non -performing assets (NPAs). A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. However, improved regulations, innovation, growth and value creation in the sector remain limited to a small part of it. The cost of banking intermediation in India is higher and bank penetration is far lower than in other markets. Indias banking industry must strengthen itself significantly if it has to support the modern and vibrant economy which India aspires to be. While the onus for this change lies mainly with bank managements, an enabling policy and regulatoryframework will also be critical to their success. Pubilc Sector B nk Pri Scheduled Commerci l B nk te Sector B nk

Foreign B nk

Scheduled B nk

Region l Rural Bank Scheduled Urban Cooperatti e Bank Scheduled State Cooperati e Bank

RBI
Non Scheduled Bank Scheduled Cooperati e Bank

 Public Sector banking in India: Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.

 Private Sector Banking in India: All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.

OPPORTU ITIES A D CHALLE GES OR PLAYERS The bar for what it means to be a successful player in the sector has been raised. Four

challenges must be addressed before success can be achieved. First, the market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These require new skills in sales & marketing, credit and operations. Second, banks will no longer enjoy windfall treasury gains that the decade-long secular decline in interest rates provided. This will expose the weaker banks. Third, with increased interest in India, competition from foreign banks will only

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

List of some Public & Private Sector Banks in India is as ollows Public Sector Banks  Allahabad Bank  State Bank of India  State bank of Indore  State bank of Mysore  Bank of India  Bank of Maharashtra  Dena bank Private Sector Banks  HDFC bank  ICICI bank  AXIS bank  Bank of Rajasthan  Dhanalakshmi bank  Federal bank  IDBI bank  Yes bank

Company Overview - AXIS Bank

Introduction to AXIS Bank: Axis Bank was the first of the new private banks to have begun operations in 1994, after the Government of India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank 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. This is the first bank in India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank customers in all the places across the country where it has presence. With the AT PAR cheque facility, customers can make cheque payments to any beneficiary at any of its existence place. The ceiling per instrument is Rs. 50,000. The latest offerings of the bank along with Dollar variant is the Euro and Pound Sterling variants of the International Travel Currency Card. The Travel Currency Card is a signature based pre -paid travel card which enables travelers global access to their money in local currency of the

visiting country in a safe and convenient way. 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. Axis Bank is one of the fastest growing banks in the country and has an extremely competitive and profitable banking franchise evidenced by: Comprehensive portfolio of banking services includes Corporate Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking.

History of Axis bank:

Axis Bank Limited, formerly UTI Bank, (BSE: 532215, LSE: AXBC) is a financial services firm that had 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), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India Insurance Company UTI-I holds a special position in the Indian capital markets and has promoted many leading financial institutions in the country. The bank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated entities with similar name. After the Retirement of Mr. P. J. Nayak, Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009. Mission and Values:  Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.  Continuous technology up gradation while maintaining human values.  Progressive globalization and achieving international standards.  Efficiency and effectiveness built on ethical practices Customer Satisfaction through providing quality service effectively and efficiently.  "Smile, it enhances your face value" is a service Customer Service Audits.  Maximization of Stakeholder value. quality stressed on Periodic

Corporate Relationships:
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Max ew York Life Insurance Company:

Products: 1. Traditional Plans (Whole Life Participating Insurance Policy, Life Partner plus Policy) 2. Ul Common Concept Ul Common Concept 3. Ulpss (Smart Investment Pension Super, Smart Xpress, Fortune Builder, Shiksha Plus) 4. Universal Life Secure Dreams 5. Riders (Payor Benefit Riders, Dread Disease, Personal Accident Benefit, Waiver of Premiums)

BAJAJ ALLIA Z (General Insurance)

      

Health Guard Jewellery Insurance Business Advantage Travel Elite Safe Home Plus Family Floater Health Guard Silver Health

Management of Company: Board of Directors: The members of the Board are: Dr. Adarsh Kishore Smt. Shikha Sharma Shri S.K. Chakrabarti Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur Non-Executive Chairman Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director

Highlights Profit after tax up 34.76% to Rs. 3,388.49 crores Net Interest Income up 31.14% to Rs. 6,562.99 crores Fee & Other Income up 32.39% to Rs. 4,135.16 crores Deposits up 33.93% to Rs. 18,9237.8 crores Demand Deposits up 17.78% to Rs. 77,767.40 crores Advance up 36.48% to Rs. 1,42,407.83 crores Retail Assets up 33.32% to Rs. 27,759.23 Crores Network of branches and extension counters increased from 983 to 1,390 Total number of ATMs went up from 4,293 to 6,270 Net NPA ratio as a percentage of net customer assets down to 0.26% from 0.36% Earnings per share (Basic) increased from Rs. 65.78 to Rs.82.95 Proposed Dividend up from 120% to 140%

Competitors:  Private Sector competitors:  HDFC BANK  YES BANK  ICICI BANK  Public Sector competitors:  STATE BANK OF INDIA  PUNJAB NATIONAL BANK  DENA BANK.

PRODUCTS & SERVICES:

 Savings Acounts Of Axis Bank: 1. EasyAccess Savings Account: This account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit the customer's requirements for a truly comfortable banking experience. EasyAccess Savings Account gives an instant access to customer's money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base. One can avail of all these services with a minimum quarterly average balance of Rs. 5,000 in metro or urban centers, Rs. 2,500 in semi urban centers and Rs. 1,000 in rural centers

2. Krishi Savings Account:

Axis Bank offers a unique savings account which is easy to operate and allows you to transact immediately. This product has been specially designed keeping in mind the unique requirements of a farmer and others employed in the allied agricultural activities sector. Thus this product has been called the Krishi Savings Account. The Krishi Savings Account has also been extended for some of the "Allied

Agricultural Activities" like Animal Husbandry; Dairy/Poultry Farming, Fishery & Aquaculture Sector; Horticulture; Sericulture; Floriculture; Handicraft Industry (Registered with Khadi and Gram-Udyog Dept); etc. Average Balance Requirement This account is offered with the requirement of maintaining the half-yearly average balance of Rs 1000 only. 3. Prime Savings Account: At Axis Bank, we have always strived to pace our products with the growing needs of our customers. The Prime Savings account has therefore been created with your specific financial requirements in mind.

Features
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Wider accessibility Greater convenience More comfort Enhanced privileges Enhanced privileges

One can avail of all these services with a minimum average balance of Rs 25,000 in metro/urban/semi-urban centers and Rs 10,000 in rural centers. 4. Salary Account: Axis Bank, believes in providing total financial solutions to the employer as well as the employee, through the salary relationship. We understand that each employee in an organization is at a different station of life having different financial and banking needs. Benefits for the employees Convenience in banking:
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Anywhere Banking at any of our over 1200 branches and a network of over 5500 ATMs spread across more than 796 centers

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Multi-city at par chequebooks Electronic Fund Transfer facility across all banks in India Internet Banking with Fund transfer facility to self and third party accounts 24x7 convenience at no charges with Axis Mobile Free SMS Banking with features such as alerts on debits / credits over Rs.5,000/balance enquiry, enquiry on last 3 transactions and status of cheque clearance etc

Benefits on charges:
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No penal charges related to minimum balance Concessions on Pay Orders / Demand Drafts issued at Axis Bank locations

Debit and Pre-paid Cards:

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International Debit Card with free Personal Accident cover Debit card for spouse in case of joint account

Travel Currency Card providing great convenience to off-shore employees for carrying local currency

Retail Lending:
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Facility of Temporary Overdraft with the salary account Preferential pricing on Retail Loans, as per eligibility criteria

Additional Banking Privileges: Employee Reimbursement Account offered as a savings account variant with interest payable quarterly Benefits for the employer
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Efficient disbursal of salary Web Upload facility enabling your payroll department to upload salaries at its own convenience

An Axis Bank official can be designated at your major locations for addressing all queries and issues from HR department

An ATM can be specially installed at the work premises for added convenience in cash withdrawals, subject to terms and conditions

5. Priority Account: Axis Bank believes in relationships lasting beyond more transactions. Alongwith providing preferential banking services, the bank also strive to form a long term bond of trust and satisfaction with the customer. That's why AXIS has brought the Axis Bank Priority, a preferential banking experience for selected customers. A service that would ensure not only the highest level of Priority but also preferential treatment to selected customers.

6. Women's Savings Account: The account is an endeavor by the Bank to understand the women's' needs and redefine banking to suit their requirements for a truly comfortable banking experience. Women's Savings Account gives an instant access to ones money anywhere, anytime. With the Women's Savings Account, one can manage own money and life and Furthermore Axis Bank's Women's Savings Account ensures that one have enough time for all the important things in life.

7. Senior Citizen's Account: It is a banking style that compliments ones Senior status. The account is an endeavour by the Bank to understand the consumers' needs and redefine banking to suit their requirements for a truly comfortable banking experience. Senior citizen Savings Account gives an instant access to their money anywhere, anytime. Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact that a Senior citizen's banking requirements are wholly different and require special consideration. 8. Demat Account: 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. One can avail of all the depository-related services by just opening an account with NSDL through Axis Bank. 9. Azaadi - o Frills Account: In this Zero Balance Savings Account there is no need to maintain a fixed minimum balance, mandatory amount in the account. One qualify for Azaadi account if;
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The sum total of all credits to ones account does not exceed Rs 1 lac during the Financial year,

One do not intend to maintain an account balance higher than Rs 50,000 at any given instant, and

One is unable to furnish full documentation as required ordinarily for fulfilling of account opening norms

10. Defence Salary Account: It is a Salute to the defence forces. 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 absolutely free, no minimum balance is required either. One can also access the entire Axis Bank network, no matter where one is posted. With the complete gamut of banking

services (including overdrafts, loans and zero-balance requirements) one can now rest assured about their family and all their financial needs. 11. Trust/ go Savings Account: Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25 companies and NGOs, so that the organisations can devote all of their time to their noble motivations. 12. Pension Savings Account Pension Savings Bank Account, from Axis Bank 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.

 Current Account At Axis Bank: Axis bank offers a wide range of current account products to suit its customers to suit their business requirements. Each current account is customised to ensure efficient account management, quick transfer of funds across the Axis Bank network coupled with modern day electronic methods to stay in touch with the account on a real time basis. Following are the various CURRE T ACCOU TS offered by Axis Bank: 1. Club 50: This unique and unparalleld product in the Industry comes with a half-yearly Average Balance of Rs.50 lacs. The account is loaded with value added features like free doorstep banking services, cheque protection facility, free Anywhere banking, free home branch cash deposit upto Rs.2 crores per month, free RTGS/NEFT facility, free DD/PO and also a Relationship Manager taking care of the account holders daily banking requirements. Additional benefits offered to this account are continuous cheque stationary with hologram, subscription to magazines, Gold Plus credit card, complementary Priority Banking accounts and other lifestyle benefits/privileges. 2. Channel One: This premium account comes equipped with a host of features like free doorstep banking, cheque protection facility, free Anywhere banking ,free fund transfer, free home branch cash deposit upto Rs.1.2 crores per month, free RTGS/NEFT facility along with a Relationship Manager taking care of the daily banking requirements of the account holder. This high-end current account comes with a Monthly Average Balance requirement of Rs.10 lacs. 3. Bussiness Privilage: This current account with a monthly average balance of Rs.5 lacs, has been designed to suit the transactional needs of the bank's valuable clients and offers enhanced free limits of home branch cash deposit upto Rs. 60 lacs, free DD/PO and Anywhere Banking upto Rs.6 crores, free funds transfer amongst many other privilages. 4. Business Classic: The Business Classic current account comes equipped to take care of the growing business needs of the account holder with free limit of Rs.12 Lacs an home branch cash

deposit, free DD/PO & Anywhere Banking upto Rs.1.2 crores, free funds transfer, etc. All these come with a Monthly Average Balance requirements of Rs.1 lac only. 5. Business Select: This unique current account is the first of its kind, which has both flexibility and fungibility of free limits as its core feature. The flexible limits allow a cash deposit , both home branch and non home branch, of upto 12 times the Monthly Average Balance maintained in the same charge cycle, with an assured free limit of Rs.6 lacs. The account also has a combined free Anywhere banking and DD/PO limit of Rs.60 lacs per month and many more attractive features at a Monthly Average Balance requirement of Rs.50,000/-. 6. Business Advantage: The Business Advantage Account, with a Monthly Average Balance requirement of Rs.25,000/-. It comes loaded with features, which include free home branch cash deposit upto Rs.3 lacs, free limits for DD/PO & anywhere banking upto Rs.30 lacs, free funds transfer etc. 7. Normal Current Account: This current account is designed for a Monthly Average Balance of Rs.10,000/comes with features like free home branch cash deposit upto Rs.1.2 lacs, DD/PO & Anywhere banking free upto Rs.12 Lacs, free fund transfer, etc. Collection and Payment Solutions: In todays competitive market place, effectively managing cash flow can make the difference between success and failure. The Bank's cash-flow solutions gives the customer maximum control over this vital asset. Whether one does business locally or throughout India, bank can provide with innovative & integrated cash management solutions tailored to ones specific needs. Bank's Cash Management products enable the efficient utilisation of one's receivables through coordinated management of payments, collections and balances in ones accounts. The objectives are to reduce costs, enhance control and optimise returns by leveraging banking expertise for mutual gains. Besides banks online collection solutions like Internet Payment Gateway & Point of Sales terminal will further smoothen ones receivables management. Banks extensive network, robust processes, online connectivity, web enabled collection and payment solutions with single point contact and experienced team across the country provides a complete transactional banking solution.

Term Deposits At Axis Bank:

1. Recurring Deposits: Axis Bank's Recurring Deposit scheme will allow the customer with an opportunity to build up their savings through regular monthly deposits of fixed sum over a fixed period of time. Features:
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Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples of Rs 500 thereafter.

The fixed numbers of instalments for which a depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108 and 120 months.

Transfer of Accounts - a recurring deposit account can be transferred from one office of the Bank to another branch.

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The amount of instalment once fixed, cannot be changed. Instalment for any calendar month is to be paid on or before the last working day of the month. Where there is delay in payment of instalment, one can regularize the account by paying the defaulted instalment together with a penalty (at present it is @ PLR plus 4 % for the period of delay).Fraction of a month will be treated as full month for the purpose of calculating the penalty.

The total amount repayable to a depositor, inclusive of interest, depends on the amount of monthly instalments and the period of deposit.

2. Encash 24: The Encash 24 (Flexi Deposit) gives the liquidity of a Savings Account coupled with high earnings of a Fixed Deposit. This is achieved by creating a Fixed Deposit linked to ones Savings Account providing the following unique facilities: Maximum Returns: As soon as the balance in ones Savings Account crosses over Rs 25,000, the excess, in multiples of Rs 10,000 will be transferred automatically to a higher interest earning Fixed Deposit Account. The maturity of fixed or term deposits formed as a result of transfer of money from the Savings Bank account will be for a maximum period of 181 days and the interest will be calculated on simple interest rate basis.

Maximum Liquidity: The money parked in Fixed Deposits as a result of the above mentioned sweep out from your Savings account can be easily accessed by issuing a cheque, withdrawing through ATM etc. This amount is automatically reverse swept from the most recently formed Fixed Deposit in units of Rs 5,000 to the Savings account whenever the balance in your Savings account falls below Rs 25,000. The amount broken form your Fixed Deposit will earn interest rates at the applicable rate for the period that the deposit was held with the Bank. The remaining amount of Fixed Deposit will continue to earn the contracted rate of interest. Auto Renewal: On maturity of your linked Fixed Deposit, the Bank will automatically renew it for a maximum period of 181 days. 3. 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. Benefits of tax break u/s 80C of IT Act Benefit Illustrator Example: Assume that a customer invests Rs 100,000 in this scheme @ 8% p.a. in fixed deposit for five years. He will get a benefit of Rs 30,600 at 30.6 % on the eligible investment of INR 100,000 assuming that he is in Rs 2,50000 lac to Rs 10,0000 lac tax bracket, thus his effective investment would be Rs 69,400. He would earn Rs 8000 (08 percent on 1 lac) as interest per annum, which would translate to a return of 11.5 percent on the effective investment of Rs 69,400.

"BRANCH BANKING"
INTRODUCTION Branch Banking - An Overview A bank is a financial institution which deals with deposits, loans, advances and other related services. It receives money from those who want to save in the form of deposits and it lends money to those who need it. A bank is a financial intermediary and appears in several related basic forms:
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a central bank issues money on behalf of a government, and regulates the money supply

a commercial bank accepts deposits and channels those deposits into lending activities, either directly or through capital markets. A bank connects customers with capital deficits to customers with capital surpluses on the world's open financial markets.

a savings bank, also known as a building society in Britain is only allowed to borrow and save from members of a financial cooperative. A Bank's main source of income is interest. A bank pays out at a lower interest rate on

deposits and receives a higher interest rate on loans. The difference between these rates represents the bank's net income. Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out on customer's order." A bank is an establishment that helps individuals and organizations, in the issuing, lending, borrowing and safeguarding functions of money. The term "bank" is derived from the French word "Banco" which means a Bench or Money exchange table. In olden days, European money lenders or money changers used to

display (show) coins of different countries in big heaps (quantity) on benches or tables for the purpose of lending or exchanging. Concept of "Branch Banking": Branch is considered as one of the most important channel of the bank and is generally the most preferred channel from the customer's point of view. The branch is referred to as the face of the bank since the customer can visit personally and meet and interact with the branch officials and avail the various services offered by the bank. In reality, the branch is the sales and service channel of a bank and the branch employees are generally responsible for both sales and service of bank's products. Sales in terms of branch banking could be of any of the bank's deposits, products, gold, retail or other investment products of other approved organizations, such as life insurance, general insurance, and mutual fund. Branch Banking operations refer to certain banking operations carried out by a bank in certain specific branches. The most common examples of deposit products of a bank are savings bank account, current accounts, fixed deposit accounts, and recurring deposit accounts. The customers or the prospects desiring to open any of these accounts have to fill an Account Opening Form [AOF] and submit the specified documents in order to meet the Know Your Customer [KYC] guidelines issued by the Reserve Bank of India [RBI] In most of the banks, the front office activities that involve customer interaction are handled at the branches, for instance, cash receipts and payments, issue of DD or lockers. The back office activities, such as clearing and account opening may be centralized at a different location away from the branch. Activities like clearing centralize payments of drafts and other instruments, which are related to the local area, may be grouped in to one centre. Certain other activities that are common across centres may be performed at another place for the purpose of achieving efficiency of operation and controlling costs.

Literature Review
(On Branch Banking) 1. Branch Banking, Bank Competition, and Financial Stability

(Mark Carlson, Kris James Mitchener, NBER Working Paper No. 11291) - Issued in May 2005. It is often argued that Branch Banking stabilizes banking systems by facilitating diversification of bank portfolios; however, previous empirical research on the Great Depression offers mixed support for this view. Analyses using state-level data find that states allowing branch banking had lower failure rates, while those examining individual banks find that branch banks were more likely to fail. We argue that an alternative hypothesis can reconcile these seemingly disparate findings. Using data on national banks from the 1920s and 1930s, we show that branch banking increases competition and forces weak banks to exit the banking system. This consolidation strengthens the system as a whole without necessarily strengthening the branch banks themselves. 2. Branch Banking - As a Device for Discipline: Competition and Bank Survivorship During the Great Depression. (Mark Carlson, Kris James Mitchener, NBER Working Paper No. 12938) - Issued in February 2007. Because California was a pioneer in the development of intrastate branching, we use its experience during the 1920s and 1930s to assess the effects of the expansion of largescale, branch-banking networks on competition and the stability of banking systems. Using a new database of individual bank balance sheets, income statements, and branch establishment, we examine the characteristics that made a bank a more likely target of a takeover by a large branching network, how incumbent unit banks responded to the entry of branch banks, and how branching networks affected the probability of survival of banks during the Great Depression. We find no evidence that branching networks expanded by acquiring "lemons"; rather those displaying characteristics of more profitable institutions were more likely targets for acquisition. We show that incumbent, unit banks responded to increased competition from branch banks by changing their operations in ways consistent

with efforts to increase efficiency and profitability. Results from survivorship analysis suggest that unit banks competing with branch bank networks, especially with the Bank of America, were more likely to survive the Great Depression than unit banks that did not face competition from branching networks. Our statistical findings thus support the hypothesis that branch banking produces an externality in that it improves the stability of banking systems by increasing competition and forcing incumbent banks to become more efficient. 3. Successful Branch Transformations: Towards needs-based sales and serviceoriented delivery - (Asian Banker Research, White Paper) FOCUS ON THE FUTURE OF BRANCH BANKING (The next generation of branch banking in the Asia Pacific region) While in the last years the retail financial services industry in Asia has paid significant attention to the development of e-banking, with many banks rolling out full-fl edged mobile phone banking propositions in 2009 in particular, smart banks have never lost their focus on fine-tuning their branch propositions and upgrading their infrastructure, seeing it as a key success element in their overall network architecture as they represent the centre of building sustainable customer relationships and business growth. Despite criticisms, the predominant branch concept going forward will continue to be the one-stop shop, in particular for local domestic banks. They are building branches that are designed to cater more effectively to surrounding communities by offering extraordinary levels of customer experience, service quality and efficiency. The timing and degree to which a bank moves forward in transforming its branch network will depend on market factors, demographics, customer preferences and a banks own financial constraints and staffing capabilities, branch banking is moving away from an undifferentiated, unintentional and inconsistent interaction with the customer to a branded one which is actually valued by all segments because the proposition is relevant. A major survey by Asian Banker Research indicates that a growing pool of banks have begun assigning more capital for branch transformations. The new wave of branch banking projects addresses the creation of superior front line execution by marrying front line automation, workflow process optimization and the human element. More attention is also

paid to interactivity, discovery and instant delivery to assist in creating a market beating customer experience for gaining competitive advantage.

Objectives

y y y y

To get the knowledge of the concept of branch banking. To study the different products and services offered by the bank. To study the Customer Centricity approach of the Bank. To understand the banks vision

Research Methodology
Introduction: Research is systematic quest of knowledge. The purpose of research is to discover answers to questions through the application of certain procedures. The research design applied in the project is Descriptive research design as the major objective of the research is to describe the preferences of the AXIS bank's customers. And the action which banks takes to accomplish the goal of customer centricity. Research Design: Descriptive Research Design: The major objective of descriptive research is to describe something usually market characteristics and finding out views preferences of customers. It also includes surveys and fact-finding enquiries of different kinds. Descriptive research is preplanned and structured. It is typically based on representative samples. A formal research design specifies the method for selecting the sources of information and for collecting data from those sources. Sampling: Sample Element: An element is the object about which or from which the information is desired. The sample element of this project is the Customers who have their Saving and Current accounts in Axis Bank in Ambernath. Sampling Extent: It refers to geographical boundaries in which sampling has been done. The sampling extent of this project is Ambernath.

Sampling Size: It refers to the number of units to be included in the study. The sampling size of the study is 50 People who have their Savings and Current accounts in AXIS bank. Sampling Technique: The sampling technique refers to the technique used for getting response from the respondent. Probability sampling refers to the technique wherein each and every unit of the universe has an equal chance of being selected as sample. Non probability sampling refers to the technique wherein each and every unit does not stand an equal chance of being as sample and sample chosen relies on the personal judgment of researcher. The researcher can arbitrarily or consciously decide what elements to include in the sample. For the purpose of this study, Probability Sampling is used which relies on the chance to select sample elements. The purpose of using this technique was to yield good estimates of the population characteristics within non-probability sampling. Convenient Sampling: It is the least expensive and least time consuming of all sampling techniques. Sampling units are accessible, easy to measure and co-operative so convenient sampling is used for the purpose of project. Instrument Decision: A Structured set of Questionnaire supported by personal interviews has been used to collect primary data in this project. Data Collection: The data collected for the research includes both primary and secondary data. The research used is descriptive and involve study of services provided by AXIS Bank and customer respond to services. Hence most of the data used is primary data. Secondary data has been used to support the study at some places. The information collected has been dissected and presented in a very lucid manner.

Methods Of Data Collection: The task of data collection begins after a research design has been defined.

Collection Of Primary Data: Several methods of collecting primary data, particularly in surveys and researches are used. They are:  Observation method: During the training program of two months, an observation was done of how the bank employees perform their duties in the bank. Also it was observed that what kind of customers visit the bank and how do employees deal with the customers. The overall banking operations were also observed. descriptive

Interview method: Both the structured and unstructured interview methods were used for collecting primary data. A structured interview was done with the help of structured questionnaires. Informal interactions with the bank employees and the customers were also done for collecting the primary data.

 Questionnaires: A structured set of Questionnaire was prepared for collecting primary data. The questionnaire was made for the Customers (Savings and Current Account holders) of AXIS Bank. In this project the source of primary data collection are structured questionnaires supported by interviews.

Collection Of Secondary Data: The collection of secondary data has been done by using various publications, books, Manuals of AXIS bank, Annual reports, Bank's brochures, magazines, journals, newspapers and internet. By way of caution, before using data, it was confirmed that it possess following characteristics:  Reliability of data  Suitability of data  Adequacy of data The information from the above sources has been searched, collected and interpreted in the best possible manner.

Data Interpretation And Analysis

ANALYSIS OF CUSTOMER CENTRICITY APPROACH OF AXIS BANK ANALYSIS 1:This analysis displays the division of sample according to the occupation of 50 people who were surveyed.
Table 1

OCCUPATION Public Sector Employee Private Sector Employee Businessman Professional Retired Total

Frequency 15 8 6 17 4 50

Percent 30 16 12 34 8 100

cc
18 16 14 12 10 8 6 4 2 0
15

atio
17

Public Sector Employee 8 6 4 Private Sector employee Businessmen Professional

Retired

Public Sector Employee

Private BusinessmenProfessional Sector employee

Retired

ANAL SIS 2: Are the customers satisfied with their savings and Current account?

No. Of People
14%
Y S 86%

NO

ANAL SIS 3: How the customers find savings and current account provided by Axis Bank?

Customer Rating for Accounts

0%

4% 22%
Ve y good Good 28%

46%

xce e

s c ory

oor

ANAL SIS 4: Do customers have any other product of AXIS BANK other than savings and Current account? (Like term deposit, mutual funds, insurance, home loan, car loan etc.)

Third Party Products

20%

No

80%

ANAL SIS 5: Which is better bank in ease of access (both branch & ATM)?

Better Banks in ease of access

10%

AXIS 2 %


58%

HDFC ICICI O hers





ANAL SIS-6: Which banks accounts provide greater flexibility?

Flexibilty Of Banks
8% 24%
40% AXIS

HDFC ICICI 28% O hers



ANAL SIS-7: Are the customers satisfied with the relationship managers service provided by Axis Bank?

Relationship Manager service

18%

Y S NO
82%


ANAL SIS-8: Which channel do customers use to access their account?

Accessing Account

20% 48% 20% DIRECT BRANCH MOBILE BANKING

NET BANKING
12%

PHONE BANKING

ANAL SIS-9: Which are the areas of improvement?

Areas Of Improvement

16% 36% 12%

UPDATES SERVICE
TECHNOLOGY

12%
24% RELATIONSHIP MANAGEMENT PRODUCTS

Findings and Analysis

y

The bank has good relations with its customers. The customers are very much satisfied with the relationship manager service provided by Axis Bank.

The AXIS bank and its customers have a long term relationship. AXIS Bank also has many high profile customers.

Axis Bank has the tendency to retain its customers at any cost. They believe that the old customer is more profitable instead of a new one thats why they try to maintain good and long term relations with their customers.

y y y

The customers prefer banking by visiting the branch. Less number of customers use mobile banking or internet banking. The accounts of axis bank (both savings and current) provide great flexibility in terms of offering.

The accounts of these three banks dont have much difference in terms of features but when it comes to service providing the AXIS Bank gets an edge because of their great customer services.

The axis bank has good number of branches and ATMs thats why it has more ease of access and a large reach of their business.

The customers of Axis Bank are highly satisfied with their savings and current accounts.

AXIS bank saving accountholders and current accountholders are now expanding their investment portfolios.

The study shows the Customer Centricity and Customer orientation of AXIS Bank towards its valuable customers.

The study also helps to know the customers perception, what they want from their banks and how they take decision while selecting a bank to invest their hard earned money.

In this study I found that the bond of Axis Bank with its customers is very strong, because Axis Bank mainly focuses on retaining their customers.

Recommendations and Conclusion

RECOMMENDATIONS A wide publicity to be given about the organization and its products through various means of communications to keep growth moments. AXIS bank should target customers that are ranging between 25-30 age group because it was found that they are more interested in taking Business loan & to apply for new variety of accounts. To eliminate the dissatisfaction proper workshop and awareness programs like campaigning are helpful. AXIS bank should lower the charges rate if the balance falls below Average quarterly balance. AXIS bank should work on their field networking and services to enhance more credibility. New and unique products should be launched to attract more customers. Even if customer service in AXIS is excellent, it should keep on improving. AXIS should always try to enter the new markets before its competitor enters and captures it.
y y

AXIS can perform a good research before entering into a new market. AXIS should increase its customer reach at a very high rate. The bank should focus on the semi urban and rural market because these markets are of very good opportunity for someone like Axis Bank which is in growing face. Without expanding in these markets Axis Bank cannot be a leading bank so they should focus on this market.

The bank should focus on mass banking in order to increase their market share. They should launch such products which would be within the reach of the lower middle class

The bank should pay more attention on giving updates and should increase the level of service providing because the competitors of axis are better in this area.

The bank should try to increase the use of technology like mobile and net banking among its customers.

CONCLUSION

While working with Axis Bank I found that AXIS BANK is one of the leading private banks and provides commercial banking services. After changing its name as AXIS BANK it promises to serve its customers the best in future. This bank has developed manifold in short period of time due to better facilities and services provided to their customers. The Implant training for a period of two months at AXIS BANK Ambernath Branch has proved to be very informative, useful and effective. The main objective of this training programme was to observe and understand the actual branch banking activities and working of an Organization from a Management point of view and also to mutually benefit from the training. The training programme helped to acquire the necessary management skills required. This training programme was successfully completed with the support and guidance of the AXIS Banks Branch head and other staff members. The customer survey in the study helped to know the customer centricity approach and customer orientation of the AXIS bank towards its customers. This study finds that however Axis Bank is not the major player in private sector bank but its vast range of products and availability of options make it one of the better leading banks in India and has a great potential to become a major player in the private sector banks.

Limitations
Every research has its own constraints which keep limitations to work, similarly this research has also limitations due to which the researcher could not get detailed information regarding project. These are: y

The concept of Branch Banking being a very broad one, it was impossible to cover all the facets of this subject.

y y

Thus, it was difficult to do a detailed study on this subject. To reduce the complexities in differentiating the various large number of products of both the banks, only the Savings and Current Account were taken into consideration for comparative study.

Due to different types in the savings and current account of both banks, only the Normal/regular Savings and current account were compared.

Due to the limitation of time I was unable to cover more sample (data collection) and to fridge the lead granted.

The views of the surveyed sample are considered as the views of the whole population.

So, the data available for study is appropriate to the extent of the limited sample size only.

Scope of the Study

The research study has a wide scope for the trainee, the bank and for the customers to arrive upon certain conclusions. a. For a trainee:
y

The research has provided the practical knowledge to the trainee regarding the organization working, survey and other aspect of banking.

This research is also essential for a trainee in fulfillment of MBA curriculum

b. To the bank:
y

Research would help the bank to know the perception and satisfaction level of its customers.

y y y

Research would help the bank to get the lead of potential customers. The comparative analysis would help the bank to frame some strategies. The suggestions provided in the research will be helpful for improvement of class and quality of service to new and current customers and also help to enhance the activities.

c. To the customer:
y

The comparative study would help the customers to decide which bank to invest their hard earned money.

The research will become a medium to convey the dissatisfaction factor to the appropriate person in the management.