1

SUMMER INTERNSHIP PROJECT REPORT

ON

“Market Scoping & Digitalization - IBMB (Internet Banking and Mobile Banking) &
GST Awareness”

Submitted in
The PARTIAL FULFILLMENT OF THE REQUIREMENT OF THE AWARD FOR THE DEGREE
MASTER OF BUSINESS ADMINISTRATION

Submitted By: UNDER THE GUIDANCE OF

Saurabh Mishra Mr Lucky Gupta
CUHP19MBA94 Branch Head Axis Bank Palampur

19TH FEBRUARY - 17TH APRIL 2021

School of Business & Management Studies
Central University of Himachal Pradesh
(Established under Central Universities Act 2009) DHARAMSHALA, DISTRICT
KANGRA – 176215, HIMACHAL PRADESH)
 2

PREFACE

In the present fast moving globalize economy, only theoretical knowledge is not sufficient foe an individual
to perform efficiently to bridge the gap between theory and practical. The students required to undergo 8
weeks training in any organization in subjects like marketing, finance, human resource or information
technology.
Summer internship program is a prelude to the final placements that the students will be getting. It is during
these 2 months of exposure to the industry that the students can make a mark of challenging work, knowledge
and ethics on the host organization.
Summer internship program would also be a great learning experience since it enables the students to apply
theory to practice and observe and learn the current trends in the market. So, to have a practical exposure, I
have been placed in “The axis bank” for my summer internship program as my specialization is marketing
and this company especially Palampur branch deals with sales and service distribution.
I, Saurabh Mishra, a student of second year M.B.A, Central university of Himachal Pradesh, did my project
work in “Market Scoping & Digitalization - IBMB (Internet Banking and Mobile Banking) & GST
Awareness” at Axis Bank Palampur Branch.
 3

ACKNOWLEDGMENT

This project has been possible through the direct and indirect cooperation of various people who bear the
imprints of their efforts for my work. I take this opportunity to acknowledge the invaluable assistance of the
people who helped me in the completion of this project report.

I humbly convey my sincerest gratitude to my Project mentor Mr lucky Gupta, Branch head Axis bank
Palampur branch for his guidance, suggestions and unintended support, without which the project would not
have been possible. I am greatly thankful to Mr Sahil Bansal circle HR head – Panchkula & Rohtak Circle
for given me opportunity to work in this organization. I would also like to thank the faculty members of
Central University of Himachal Pradesh for their continuous guidance and support for making this report
more meaningful.

Last but not the least; I would like to place a word of thanks for all those who directly or indirectly helped me
in the successful completion of the project.
 4

DECLARATION

I, the undersigned Saurabh Mishra a student of MBA (Marketing) hereby declare that the project work
presented in this Report is my own work & has been carried out under the supervision of Mr Lucky Gupta
Branch head Axis Bank Palampur Branch.

This project has not been previously submitted to any other university and by any other person. This project
is for my examination only.

Place: Palampur Signature: Saurabh

Date: 17 – 04- 21
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Executive Summary

MBA is a stepping-stone to the management carrier and to develop good manager. It is necessary that the
theoretical knowledge must be supplemented with exposure to the real environment. Theoretical knowledge
just provides the base and it's not sufficient to produce a good manager that' s why practical knowledge is
needed.
In accordance with the requirement of MBA course I had summer training at Axis Bank Palampur (HP)
Branch on the topic " Market Scoping & Digitalization - IBMB (Internet Banking and Mobile Banking)
& GST Awareness”
The retail banking environment has undergone major change. Retail banking customers are much more
active than they were a decade ago. Customers are demanding more customized products and services. This
has imposed significant new demands on retail banks. With a view to attaining an increasingly significant
position in the growing retail financial services sector in the country, banks have continued to provide a
sustained thrust to retail banking through a continuously expanding network and a growing sales force with
customer relationship skills, that has enabled the distribution of a wide range of products to a fast-expanding
customer base.
The report gives an overview of the Retail banking products offered at Axis Bank, Analysis of Axis products
with competitors, marketing Strategies as per segmentation, targeting and positioning and customer
awareness about internet banking etc.
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Certificate of Completion
 7

Table of contents

S.No Particulars Page No

1 Preface 2
2 Acknowledgement 3
3 Declaration 4
4 Executive Summary 5
5 Certificate of 6
completion
6 Industry Information 8- 13
7 Company Profile 14 - 29
8 Primary Study 30 - 33
9 Data Interpretation 35 - 54
10 Findings 55
11 Recommendation & 56
Suggestion
12 Bibliography 57
 8

Part- 1

Industry
Information
 9

BANKING IN INDIA:
Without a sound and effective banking system in India it cannot have a healthy economy. The banking system
of India should not only be hassle free but it should be able to meet new challenges posed by the technology
and any other external and internal factors. For the past three decades India's banking system has several
outstanding achievements to its credit. The most striking is its extensive reach. It is no longer confined to only
metropolitans or cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country. This is one of the main reasons of India's growth process.

HISTORY:
The first bank in India, though conservative, was established in 1786. From 1786 till today, the journey of
Indian Banking System can be segregated into three distinct phases. They are as mentioned below:
• PHASE I - Early phase from 1786 to 1969 of Indian Banks.
• PHASE II - Nationalization of Indian Banks and up to 1991.
• PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and Bengal Bank.
The East India Company established Bank of Bengal (1809), Bank of Bombay (1840) and Bank of Madras
(1843) as independent units and called it Presidency Banks. These three banks were amalgamated in 1920
and Imperial Bank of India was established which started as private shareholders banks, mostly European’s
shareholders. During the first phase the growth was very slow and banks also experienced periodic failures
between 1913 and 1948. There were approximately 1100 banks, mostly small. To streamline the functioning
and activities of commercial banks, the Government of India came up with The Banking Companies Act,
1949 which was later changed to Banking Regulation Act 1949 as per amending Act of 1965 (Act No. 23 of
1965). Reserve Bank of India was vested with extensive powers for the supervision of banking in India as
the Central Banking Authority. During those day’s public has lesser confidence in the banks. As an
aftermath deposit mobilization was slow. Abreast of it the savings bank facility provided by the Postal
department was comparatively safer. Moreover, funds were largely given to the traders.

PHASE II:
Government took major steps in this Indian Banking Sector Reform after independence. In 1955, it
nationalized Imperial Bank of India with extensive banking facilities on a large scale especially in rural and
semi-urban areas. Second phase of nationalization Indian Banking Sector Reform was carried out in 1980
with seven more banks. This step brought 80% of the banking segment in India under Government
ownership. The following are the steps taken by the Government of India to Regulate Banking Institutions in
the Country:
 10
• 1949: Enactment of Banking Regulation Act.
• 1955: Nationalization of State Bank of India.
• 1959: Nationalization of SBI subsidiaries.
• 1961: Insurance cover extended to deposits.
• 1969: Nationalization of 14 major banks.
• 1971: Creation of credit guarantee corporation.
• 1975: Creation of regional rural banks.
• 1980: Nationalization of seven banks with deposits over 200 crores.
After the nationalization of banks, the branches of the public sector bank India raised to approximately
800% in deposits and advances took a huge jump by 11,000%. Banking in the sunshine of Government
ownership gave the public implicit faith and immense confidence about the sustainability of these
institutions.

PHASE III:
This phase has introduced many more products and facilities in the banking sector in its reform measure. In
1991, under the chairmanship of M Narasimhan, a committee was set up by his name which worked for the
liberalisation of banking practices.
The country is flooded with foreign banks and their ATM stations. Efforts are being put to give a
satisfactory service to customers. Phone banking and net banking is introduced. The entire system became
more convenient and easier. The financial system of India has shown a great deal of resilience. It is sheltered
from any crisis triggered by any external macroeconomics shock as other East Asian Countries suffered.
This is all due to a flexible exchange rate regime, the foreign reserves are high, the capital account is not yet
fully convertible, and banks and their customers have limited foreign exchange exposure.
 11

• Central Bank:
The Reserve Bank of India (RBI) is India’s central bank, also known as the banker’s bank. The RBI
controls monetary and other banking policies of the Indian government. The Reserve Bank of India (RBI)
was established on April 1, 1935, in accordance with the Reserve Bank of India Act, 1934. The Reserve
Bank is permanently situated in Mumbai since 1937. The Reserve Bank is fully owned and operated by the
Government of India.

The Preamble of the Reserve Bank of India describes the basic functions of the Reserve Bank as:

• Regulating the issue of Banknotes

• Securing monetary stability in India
• Modernising the monetary policy framework to meet economic challenges.
 12

Scheduled commercial Bank:

Scheduled Banks in India refer to those banks which have been included in the Second Schedule of Reserve
Bank of India Act, 1934. RBI in turn includes only those banks in this Schedule which satisfy the criteria
laid down vide section 42(6)(a) of the said Act. Banks not under this Schedule are called Non-Scheduled
Banks. Every Scheduled bank enjoys two types of principal facilities: it becomes eligible for debts/loans at
the bank rate from the RBI; and, it automatically acquires the membership of clearing house.
The essential characteristics of commercial banking are as follows:
• Acceptance of deposits from public.
• For lending or investment.
• Repayable on demand or lending or investment
• Withdrawal by means of an instrument, whether a cheque or otherwise.
Scheduled commercial Banks are further divided into:

• Scheduled Commercial banks

• Scheduled Co-operative banks

Scheduled commercial Banks:

I. Public Sector Banks:
Public Sector Banks (PSBs) are those banks where majority of stakes are hold by the Government. All these
PSBs are listed on stock exchanges. Central Government entered banking industry with the nationalization
of Imperial Bank of India in 1955, then in 1969, 14 major banks were nationalized and in 1980 4 more bank
were nationalized. To Name a few PSBs: State Bank of India and is subsidiaries, Bank of India, Bank of
Baroda, Bhartiya Mahila Bank, Central Bank of India, etc.
The objectives behind nationalization where:
• To break the ownership and control of banks by a few businesses.
• To prevent the concentration of wealth and economic power.
• To mobilize savings from masses from all parts of the country.
• To cater to the needs of the priority sectors.

II. Private Sector Banks:

Private Sector Banks in India is made up of private and public banks. But the greater part of stake is in the
hand of private shareholders and not with the Government. Private Banks are categorized as Old and New
Private bank Old Private banks:
Old private bank: These are those banks which were not nationalized during the process in 1969 and 1980
due to the smaller scale or regional reach only. Example: thalami Bank, Federal Bank, ING Vysya Bank,
Karur Vysya Bank, etc.
New Private Banks: These are the banks which came into operations afire the liberalization in 1990s.
Banking Regulation were amended in 1993 so that new private banks can enter the Indian Banking industry.
 13
Example: ICICI Bank, AXIS Bank, HDFC Bank, Yes Bank, Development Credit Bank, Kotak
Mahindra Bank, RBL Bank, etc.

III. Foreign Banks:

With the globalization hitting the world, the concept of banking has changed substantially. The concept of
Foreign Banks has changed the prevailing banking scenario in India. Banking is now crore of crore
customer-friendly, modern technology have been implemented like mobile banking, mobile application of
banks, etc. Example: HSBC Bank, JP Morgan Chase Bank, Deutsche bank, Standard Charter Bank, etc.

IV. Regional Rural Banks:

Regional Rural Banks (RRBs) were started in 1970 since even after the nationalization, there were cultural
issues related to lending to the farmers. The main purpose of RRBs is to mobilize financial resources from
rural-semi-urban areas and grants loans and advances mostly to small and marginal farmers, agricultural
labour’s, etc. Example: Karnataka Vikas Gardena Bank, Maharashtra Garmin Bank, etc.

Schedule Co-operative Bank:

Larger visit unions are often called cooperative banks. Like credit unions, cooperative banks are owned by
their customers and follow the cooperative principle of one person, one vote. Unlike credit unions, however,
cooperative banks are often regulated under both banking and cooperative legislation. They provide services
such as savings and loans to non-rerefers swell as to rerefers, and some participate in the wholesale market
for hands, Money and even equities.
 14

Part- 2

COMPANY PROFILE
 15

Name of The Bank Axis Bank

Type Private

Industry Banking, Financial Services

Founded 1994 (As UTI Bank)

Key People Shri Rakesh Makhija (Chairman),

Amitabh Chaudhry (MD&CEO)

Products Credit Card, Consumer Banking,

Corporate Banking,
Finance and Insurance, Investment
Banking,
Mortgage Loan, Private Banking,
Private Equity,
Wealth Management
Revenue ₹80,057.67 crore (US$11 billion) (2020)

Operating income ₹61,991.91 crore (US$8.7 billion) (2020)

Net Income ₹1,853.11 crore (US$260 million) (2020)

Total Assets ₹927,871.81 crore (US$130 billion) (2020)

Number of Domestic Branches 4528 Branches & 12044 ATM

Website www.axisbank.com

COMPANY DESCRIPTION:
Axis Bank India, the first bank to begin operations as new private banks in 1994 after the Government of
India allowed new private banks to be established. Axis Bank was jointly promoted by the Administrator of
the specified undertaking of the
 16
• Unit Trust of India (UTI-I)

• Life Insurance Corporation of India (LIC)

• General Insurance Corporation Ltd.
Also, with associates viz. National Insurance Company Ltd., the New India Assurance Company, The
Oriental Insurance Corporation and United Insurance Company Ltd.

CORPORATE PROFILE:

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 shareholding of Unit Trust of India was
subsequently transferred to SUUTI, an entity established in 2003.
 17

BOARD OF DIRECTORS

Person Designation

Rakesh Makhija Independent Director & Non Executive

(Part time) Chairman
Amitabh Chaudhry Managing Director & CEO

S Vishvanathan Independent Non-Executive Director

Ketaki Bhagwati Independent Non-Executive Director

Stephen Pagliuca Nominee Director

Girish Paranjpe Independent Non-Executive Director

T.C. Suseel Kumar Non-Executive (Nominee) Director

Meena Ganesh Independent Non-Executive Director

Gopalaraman Padmanabhan Independent Non-Executive Director

Vasantha Govindan Non-Executive (Nominee) Director

Rajiv Anand Executive Director (wholesale Banking)

Rajesh Dahiya Executive Director (Corporate Centre)

 18

VISION AND VALUES

Vision of the Bank:

To be the preferred financial solutions provider excelling in customer delivery through insight, empowered
employees and smart use of technology.

Core Values:

• Customer Centricity
• Ethics
• Transparency
• Teamwork
• Ownership

The registered office of Axis Bank is located at:

‘Trishul’, 3rd Floor,

Opposite Samartheshwar Temple,
Near Law Garden, Ellisbridge,
Ahmedabad, Gujarat - 380 006

CORPORATE OFFICE ADDRESS:

Axis House,
C-2 Wadia International Centre,
Pandurang Budhkar Marg, Worli, Mumbai – 4000 025

The Corporate Office of Axis Bank is located at Axis House Mumbai. Axis House has received the
‘Platinum’ rating awarded by the US Green Building Council for its environment friendly facilities and
reduction of carbon emission.

Capital structure:
The Bank has authorized share capital of Rs. 850 crores comprising 4,250,000,000 equity shares of Rs.2/-
each. As on 31st March 2020, the Bank has issued, subscribed and paid-up equity capital of Rs. 564.34
crores, constituting 2,82,16,77,934 equity shares of Rs.2/- each. The Bank’s shares are listed on the National
Stock Exchange of India Limited and the BSE Limited. The GDRs issued by the Bank are listed on the
London Stock Exchange (LSE). The Bonds issued by the Bank under the MTN programme are listed on the
Singapore Stock Exchange.
 19

Distribution Network:
The Bank has a large footprint of 4,528 domestic branches (including extension counters) with 12,044
ATMs & 4,917 cash recyclers spread across the country as on 31st March, 2019. 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.

SUBSIDIARIES OF AXIS BANK:

The Bank at present has following 11 subsidiaries namely:

• Axis Capital Ltd. (ACL)

• Axis Securities Ltd. (ASL)
• Axis Private Equity Ltd. (APE)
• Axis Trustee Services Ltd. (ATSL)
• Axis Asset Management Company Ltd. (AAMC)
• Axis Mutual Fund Trustee Ltd. (AMFT)
• Axis Finance Ltd (AFL)
• A. TREDS Ltd. (ATL)
• Axis Bank UK Ltd. (ABUK),
• Freecharge Payment Technologies Private Limited (Freecharge)
• Accelyst Solutions Private Limited (Accelyst).

PROMOTERS:

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 shareholding of Unit Trust of India was
subsequently transferred to SUUTI, an entity established in 2003.

AWARDS AND RECOGNITION:

2020:
• Axis Bank wins Best digital Bank at the Asiamoney Banking Awards.
• Axis Bank wins Best digital Bank at the Financial Express Best Banks Awards.
• Axis Bank wins for Best Branded Content at the Brandwagon Ace Awards.
• Axis Bank wins Best Engagement & loyalty scheme of the year at 8th payment and cards awards
2020.
 20
• Axis Bank wins GOLD in Branded Content Category at shark award 2020.
• Axis Bank wins for the Best Cyber Security Project, Best financial AI Project & Best Risk
Management Project at the Asset Digital awards.
• Axis Bank wins for the Best Use of IT in Risk Management / Fraud Prevention at the Dun &
Bardstreet BankTech awards.
• Axis Bank wins for Best Banking Technology at the IAMAI Digital awards.
• Axis Bank wins for Innovation at the Finnoviti awards.

Business Description:
AXIS Bank operates in vary segments such as Treasury Operations, Retail Banking, Corporate/Wholesale
Banking and Other Banking Activities.

Retail banking:
In the retail banking category, the bank offers Current Accounts and Saving Accounts product, card serves,
Internet banking, amounted teller machines (ATM) services, depository, financial advisory services, and
Non-resident Indian (NRI) services.

Corporate/wholesale banking:
The Bank offers to corporates and other organizations services including corporate relationship not included
under retail banking, corporate advisory services, project appraisals, capital market related services and cash
management services.

Investment banking:
Bank’s Investment Banking business comprises activities related to Equity Capital Markets, Mergers and
Acquisitions and Private Equity Advisory. The bank is a SEBI-registered Category I Merchant Banker and
has been active in advising Indian companies in raising equity through IPOs, QIPs, and Rights issues etc.

NRI services:
Bank provides products and services for NRIs that includes CASA, facilitate investments in India. Axis
bank is the first Indian Bank having TCDC cards in 11 currencies.

Micro Finance:
Axis Bank SME business is segmented in three groups: Small Enterprises, Medium Enterprises and Supply Chain
Finance. Bank offers lending to individuals/sma11 businesses subject to the Orientation Under the Small
Business Group a subgroup for financing micro enterprises is also set up.

Agri Finance:
Bank provide various accounts, loans on various products, etc. to farmers.

Products offered by AXIS Bank:

1. Savings Accounts:
• Basic saving accounts.
 21

• Easy access saving accounts.

• Prime saving accounts
• Prime plus saving accounts
• Senior privilege saving accounts
• Pension saving account
• Axis priority saving accounts.
• Youth savings account
• Insurance agent accounts
• Women Savings accounts.

2. Current Accounts:
• Normal current accounts

• Business advantage current accounts

• Business Select current account

• Business classic current account.

• Business privilege account

• Channel one account

• Business global current account

• Club 50

3. Salary Accounts:
• Liberty Salary Account.
• Axis Republic Salary Account
• Easy Access Salary Account
• Prime Salary Account
• Prestige Salary Account
• Priority Salary Account
• Defence Salary Account
• Employee Reimbursement Account

4. Loan:
 22
• Home loan:
Axis Bank offers affordable and Exile housing loans that can turn your dream of owning a home into reality.
Features:
Axis bank offers attractive interest rates that makes customers housing loan affordable. Customer has an
option to choose between the fixed and floating rates as per the market scenario. Customer has a facility to
transfer their current home loan of other banks to the AXIS Bank without any any query related to home
loan or need some help. AXIS Bank Executive will be at your doorstep. There are no Pre-Payment charges if
customer wants to wave off the loan before maturity.
Eligibility Criteria:

✓ Salaried Individuals

✓ Professionals

✓ Self-employed individual.
• Personal Loan:

Be it a dream vacation, child’s education, home renovation or wedding in your family, you can instantly
fulfil your aspirations with Axis Bank Personal loans. Axis Bank Personal Loans offer fast processing of
your loan. Personal Loans can be used for plenty of purposes! They can be availed when you are planning a
vacation, renovating your home or arranging a dream wedding for yourself or somebody special in the
family. Now you need not postpone things on your bucket list! You can get a Personal Loan from Rs. 50,000
up-to Rs. 15,00,000 with minimal documentation and speedy approval from Axis Bank. Also, you can
transfer your existing high interest Personal Loan to Axis Bank as well. With a quick approval on Personal
Loans, turn your dreams into reality!

Individuals who can take a Personal Loan:

• Salaried Employees
o Salaried doctors
o Employees of public and private limited companies
o Government sector employees including Public Sector Undertakings, Central and Local
bodies
• Minimum age of 21 years
• Maximum age of 60 years at the time of maturity of the Personal Loan
• Minimum net monthly income – Rs. 15,000

• Business Loan:

Features for Business Loan:

• No collateral
• Loans up-to Rs. 50 Lakh
• Competitive pricing

Eligibility:
 23
• Business Vintage – Minimum 3 years
• Turnover – Minimum Rs. 30 Lakhs
• Age – 21 to 65 years

• Education loan:

Axis Bank provides Education Loans for students looking to study in India and abroad. You can get a loan
starting from Rs. 50,000 at attractive interest rates with benefits such as no pre-payment charges and no pre-
closure charges. Find out the education loan eligibility criteria for availing an Axis Bank student loan.

The Education Loan will be provided to those students who have

• Indian Citizenship
• Secured at least 50% marks during HSC & Graduation
• Who have obtained admission to career-oriented courses e.g. Medicine, Engineering, Management
etc., either at the graduate or post-graduate level.
• Secured admission in India or Abroad through entrance test / merit-based selection process post
completion of HSC (10+2)
• Documents displaying regular income is mandatory for the co-applicant(parents/sibling/guarantor)

The education loan eligibility will be determined by Axis Bank as per the Bank's policy prevailing at the
time of loan application and disbursement.

• Axis Bank Loan Against Property:

Apply for Axis Bank's Loan Against Property. Bank gives loan against property be it commercial or
residential or for purchase of new commercial property.

5. Investments:
• Mutual funds
• Axis hybrid funds
• Systematic investments plan (SIP)
• Axis focus 25
• Axis multi cap fund
• Demat account

6. Insurance:
• Life Insurance
• General Insurance
• Health Insurance
• Pradhan Mantri Suraksha Bima Yojna
• Pradhan Mantri Jeevan Jyoti Bima Yojna

Account Details:
In AXIS Bank, when account is opened, the account holder becomes a client of the bank. A client ID
Number is allotted to him. A client can open many accounts at different branches. Each account is identified
 24
by an account hunter. Customer ID is a unique number allotted to each customer. Now, it’s possible that as
customer has two or more accounts.
For example, say a customer by Name Mr. Mayur has his salary account with our bank. He wants to open
another account jointly with his wife. Each account has a unique Account No. and all the accounts of Mr.
Mayur are linked to a single Customer ID. Let’s look more closely at the account no.

Know Your Customer?

Who is customer?

RBI defines customer as:

· a person or entity that maintains an account and/or has a business relationship with the bank;
· one on whose behalf the account is maintained (i.e., the beneficial owner);
· beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers, Chartered
Accountants, Solicitors etc. as permitted under the law, and
· any person or entity connected with a financial transaction which can pose significant reputational or other
risks to the bank, say, a wire transfer or issue of a high value demand draft as a single transaction.

To prevent misuse of banking channel from financial frauds, money laundering., RBI a part of their initiatives
to prevent suspicious activities, advised bank to follow certain procedure which are known as KYC guidelines.
A comprehensive list of documents qualifying to be attached as id proof and address proof is mentioned below:
25
 26

Cash Transaction Guidelines:

❖ Saving/Current Accounts:

There is no resetting for the amount. If the total amount deposited by way of cash in an account in a day is Rs
50,000/- and above, PAN of the account holder should be obtained if not taken on record at the time of opening
the account. In case, the account holder does not have the PAN, then Form 60/61 should be obtained on the
day of such deposit.

❖ Term Deposits:

As per the IT rules, cash remittances exceeding Rs. 50,000/- requires the account holders PAN or form 60/61.
As per AXIS’s internal rules for opening a Fixed Deposit account for amounts exceeding Rs 50,000/- requires
the account holders PAN or form 60/61. Cash payment should not be trade by a bank to any person whose
total holdings of the Term Deposits are Rs 20,000/- or crore as per IT Act.

❖ Demand Draft:
In AXIS bank for an amount exceeding Rs. 20,000/-, the remitter to be identified. All drafts/pay orders of Rs
20,000/- and above should be issued as crossed only.

Payment and Settlement System:

 27
The banking sector been witnessing a remarkable transformation over the last eight-nine years. Technology
adoption has changed the way one does the banking transactions these days, with ATMs and credit cards,
ECS, RTGS, NEFT facility acting anytime, anywhere, banking This system works as follows:

The Medium:
Indian Financial Network (INFINET) is the communication backbone for the Indian Banking and Financial
Sector. All the banks are eligible to become members of the INFINET. It is a Closed User Group (CUG)
Network for the exclusive use of rerefer banks and finance IA l institutions.

The Carrier:
Structured Financial Messaging System (SFMS) is a secure messaging standard developed to serve as a
platform for intra-bank and inter-bank applications. It is an Indian standard similar to SWIFT (Society for
World-wide Interbank Financial Telecommunications) which is the international messaging system used for
financial messaging globally.
SFMS can be used for secure communication within the bank and between banks. The SFMS was launched
on December 14, 2001 at IDRBT. It allows the definition of message structures, message formats, and
authorization of the same for usage by the financial community. SFMS has a number of features and it is a
modularized and web enabled software, with a flexible architecture facilitating centralized or distributed
deployment. The access control is through Smart Card based user access and messages are secured by means
of standard encryption and authentication services conforming to ISO standards.
The intra-bank part of SFMS is used by banks to take full advantage of the secure messaging facility it
provides. The inter-bank messaging part is used by applications like electronic funds transfer (EFT), real
time gross settlement systems (RTGS), delivery versus payments (DVP), centralized funds management
systems (CFMS) and others. The SFMS provides application program interfaces (APIs), which can be used
to integrate existing and future applications with the SFMS. Several banks have integrated it with their core
or centralized banking software.

The Identifier:
Indian Financed System Code (IFSC) is an alpha number i.e., code designed to uniquely identify the bank-
branches in India. This is 11-digit code with first 4 characters representing the banks code, the next character
reserved as control character. (Presently 0 appears in the fifth position) and remaining 6 characters to
identify the branch.

The Mode of Transfer:

Electronic Clearing Services:
ECS was launched by the RBI for facilitating bulk transfer of funds from one bank account to another bank
account. Loan providers use this facility to debit loan EMIs on a fixed date from the bank account of the
borrower.

This is done with the help of a clearinghouse. In India, ECS debit is mostly handled by the NACH (National
Automated Clearing House) which works under NPCI (National Payments Corporation of India).
There are mainly two types of ECS, which are ECS credit and ECS debit. Read further to know what they
are and how they are different from one another.
 28

ECS credit: When a bank makes credit to a bank account, like to pay salary, dividends, etc. it is called ECS
credit. A single account is debited on regular intervals to credit multiple accounts.

ECS debit: When aa single account is used to make payments like EMI, loans, premium, mutual funds, etc.

Real Time Gross Settlement (RTGS):

The acronym 'RTGS' stands for Real Time Gross Settlement, which can be explained as a system where
there is continuous and real-time settlement of fund-transfers, individually on a transaction by transaction
basis (without netting). 'Real Time' means the processing of instructions at the time they are received; 'Gross
Settlement' means that the settlement of funds transfer instructions occurs individually.

Benefits:

• It is a safe and secure system for funds transfer.

• RTGS transactions / transfers have no amount cap.
• The system is available on all days on 24x7x365 basis. There is real time transfer of funds to the
beneficiary account.
• The remitter need not use a physical cheque or a demand draft.
• The beneficiary need not visit a bank branch for depositing the paper instruments.
• The beneficiary need not be apprehensive about loss / theft of physical instruments or the likelihood
of fraudulent encashment thereof.
• Remitter can initiate the remittances from his / her home / place of work using internet banking, if
his / her bank offers such service.
• The transaction charges have been capped by RBI.
• The transaction has legal backing.

National Electronic Funds Transfer (NEFT):

National Electronic Funds Transfer (NEFT) is a nation-wide centralised payment system owned and
operated by the Reserve Bank of India (RBI).

NEFT offers the following advantages for funds transfer or receipt:

• Round the clock availability on all days of the year.

• Near-real-time funds transfer to the beneficiary account and settlement in a secure manner.
• Pan-India coverage through large network of branches of all types of banks.
• Positive confirmation to the remitter by SMS / e-mail on credit to beneficiary account.
• Penal interest provision for delay in credit or return of transactions.
• No levy of charges by RBI from banks.
• No charges to savings bank account customers for online NEFT transactions.
• Besides funds transfer, NEFT system can be used for a variety of transactions including payment of
credit card dues to the card issuing banks, payment of loan EMI, inward foreign exchange
remittances, etc.
• Available for one-way funds transfers from India to Nepal.
 29
IMPS (Immediate payments system):

For transferring funds real time and 24X7X365 interbank was a major challenge faced in banking industry.
Only NEFT & RTGS were available to user for fund transfer during banking hours.

IMPS provides robust & real time fund transfer which offers an instant, 24X7, interbank electronic fund
transfer service that could be accessed on multiple channels like Mobile, Internet, ATM, SMS. IMPS is an
emphatic service which allow transferring of funds instantly within banks across India which is not only safe
but also economical. Currently on IMPS, 590 members are live which includes banks & PPIs.

This facility is provided by NPCI through its existing NFS switch.

The eligible criteria for the Banks who can participate in IMPS is that the entity should have valid banking
or prepaid payment instrument license from Reserve Bank of India to participate in IMPS.

Objectives of IMPS

• To enable bank customers to use mobile instruments as a channel for accessing their banks accounts
and remit funds
• Making payment simpler just with the mobile number of the beneficiary
• To sub-serve the goal of Reserve Bank of India (RBI) in electronification of retail payments
• To facilitate mobile payment systems already introduced in India with the Reserve Bank of India
Mobile Payment Guidelines 2008 to be inter-operable across banks and mobile operators in a safe
and secured manner
• To build the foundation for a full range of mobile based Banking services.

SWOT ANALYSIS

Strength

• Axis bank has been given the rating as one of best three positions as far as speediest development in
private division bank.
• The bank has its presence in 1139 cities and towns.
• The banks financial positions grow at a rate of 20% every year which a is, major positive sign for
any bank.

Weakness

• Lesser no. of branches compared to its competitors.

• Image of the bank still under the shadow of the UTI debacle.
• Customer service has to be improved in order to be in race with major players.

Opportunity

• Expansion in rural areas.

• Going to foreign markets and exploring the new economies.
 30

Threats

• New banking licenses issued by the Reserve Bank of India

• Foreign banks
• Competitors
 31

Part- 3

Primary Study

“Market Scoping &COMPARATIVE ANALYSIS OF PRODUCTS AND SERVICE

OF AXIS BANK”
 32

OBJECTIVES OF STUDY:
• Consumer mindfulness about the items and administrations gave by the axis bank.
• Consumer inclination about different items and administrations.
• Customer satisfaction with the service provided by the bank.
• To gain the knowledge of products & services of axis bank and to compare it with other banks.
• Recommendation to increase customer satisfaction level.

RESEARCH METHODOLOGY:
Research is one of the most important parts of any study and pertains to the collection of information and
knowledge. Marketing research is defined as the systematic design, collection, analysis, and reporting of
data and findings relevant to a specific marketing situation facing the company. My project has been
developed on has basis of both exploratory and descriptive research. The research process depends upon
developing the most efficient plan for gathering the needed information. Designing a research plan calls fro
decisions on the data sources, research approaches, research instruments, sampling plan, and contact
methods.

SAMPLE SIZE AND METHOD OF SELECTING SAMPLE:

I chose a sample size of 90 respondents consisting of based on judgment sampling. The respondents were
the customers of Axis Bank and other Banks. The method was simple random sampling. There were 50
other Bank customers and 40 Axis Bank respondents.

Data Source:
For this project both primary and secondary data were valuable sources of information.
Primary data: - such data collected first hand, either by the researcher or by someone else, especially for
the study is known as primary data.
Secondary data: - any data, which have been gathered earlier for some other purpose, are secondary data in
the hand of researcher.

Contact methods:
Once the client had been decided now my task was how to contact them, and for me there only two ways of
contacting them.
1. Personal Interview: This method was the most appropriate way of survey, because by personal
interview I came to know about their feeling for Axis Bank.
 33
2. Telephone: This method was also used by me once or twice, keeping in mind the busy schedule of a few
respondents.

SCOPE OF STUDY:
Axis Bank is one of the most famous banks in India. The various products and services offered by it include:
PRODUCT
• Deposits (Saving account and current account)
• Loans
• Card
SERVICES
• ATM
• Mobile Banking
• Internet Banking
• Payment
• Other Services
The deposit mix of an organization especially the Saving accounts are the backbone of every bank as an
ordinary man is most inclined to invest in it due to its convenience and easy availability. This project deals
with the various customer concerns regarding these and tries to suggest appropriate suggesting based on
conclusions. I hope that this report would be able to suggest some measures and draw attention of bank
towards the area of improvement.

LIMITATIONS OF STUDY
• The study was based on a very modest sample size hence cannot be called as a representation of the views
and opinion of the majority.
• In a rapidly changing industry, analysis on one day or in one segment can change very quickly. The
environmental changes are vital to be considered in order to assimilate the findings.
• The conclusion arrived at are based on a very less experience of researcher in this field.
 34

Part – 4

DATA ANALYSIS AND INTERPRETATION

 35

QUESTIONNAIRE -1

For Non - Axis Bank Customer

Q.1) Name of the Bank?

a) SBI b) HDFC c) ICICI d) other.

Q.2) What kind of account do you have in your Current Bank?

a) Saving Account b) FD c) Current Account d) Other

Q.3) How would you rate your Current Bank?

a) Excellent b) Good C) Average d) Poor e) Can’t say

Q.4) Which is the area of improvement of your Bank?

a) Product b) Service c) Technology

Q.5) Are you interested to open Account in Axis Bank?

a) Yes b) No c) Can’t Say

Q.6) Reasons if Customer Is Not Interested?

a) Location Inconvenience b) Product Suitability c) Awareness

d) Already Satisfied with Current Bank e) Others

 36

Analysis – 1

For Non - Axis Bank Customer

Q.1) Name of the Bank?

N.o of Customer of Bank

Others
28% SBI
35%

ICICI
17%
HDFC
20%
SBI HDFC ICICI Others

Interpretation:

From the above graph, we see that majority of Customers (35%) have account in SBI Bank. While HDFC
(20%), ICICI have market Catchment of 17%. The others Bank (PNB, KCC, Union Bank, CANARA Bank)
have market share around 28%.

Q.2.) What kind of Account do you have in your Current Bank?

 37

Type of Product
Other
11%

FD
14%

saving
54%

Current
21%

saving Current FD Other

Interpretation:

From the above graph, we see that about 54% of customer have savings account in their respective banks,
14% of the customers have Fixed deposit and 21% of the customers have Current accounts while 11% of the
customers have loans, and other investment schemes.

Q.3.) How would you rate your Current Bank?

Interpretation:

From the above graph, we see that 56% of the customers rated the services of their bank as Good, about 40%
of the customers are highly satisfied with their bank and rated their bank as Excellent, while 4% of the
customer are somewhat satisfied with the service of their bank and rated their bank as Average.
 38
Q.4.) What is the Area of Improvement of your Current Bank?

Area of Improvement
Product
20%
Technology
30%

Service
50%
Product Service Technology

Interpretation:

From the above graph, it is clear that about 50% of the customers wants Improvement in the service
provided by bank, about 20% of the customer want flexibility in the products offered by the banks while
30% of the customers want improvement in the technology (like compatible Apps, website, Social Media
presence etc.)

Q.5) Are You interested to open account in Axis Bank?

 39
Interpretation:

From the above graph, it is clear that 39% of the customers were are already satisfied with their current
Bank and doesn’t willing to open Account at Axis bank. About 45% of the customer doesn’t know about
their interest ton open account at Axis bank While 16% of the customers are interested to open Account at
Axis Bank.

Q.6.) Reasons if Customer is not interested?

 40

Questionnaire – 2

Axis Bank Customer

Q.1.) What kind of account do you have in axis bank?

a) Saving account b) Fixed deposits c) Current account d) Others

Q.2.) How you find the salary/saving accounts of axis bank?

a) Very good b) Good c) Excellent d) Satisfactory

Q.3.) Do you have any other products of axis bank other than salary/saving account?

a) Yes b) No

Q.4.) Which channel you use to excess your account?

a) Direct branch b) ATM c) Net banking d) Others

Q.5) Which bank has ease of access (branch and ATM)?

a) Axis bank b) HDFC bank c) ICICI bank d) Others

Q.6) Which bank offers you flexibility in its products?

a) Axis bank b) HDFC bank c) ICICI bank d) Others

Q.7.) Which bank is better in providing services regarding transaction?

a) Axis bank b) HDFC bank c) ICICI bank d) Others

Q.8.) Which is the area of improvement of axis bank?

a) Product b) Services c) Technology

Q.9.) In comparison to another bank how would you rate axis bank?

a) Excellent b) Good c) Average d) Poor e) Can’t say

Q.10.) What features/attributes, while opening an account do you expect from a bank?

a) Quick services b) Proper information c) Working hours d) Less formalities e) Varity of

product

Q.11.) Your opinion regarding bank service provided by axis bank?

 41
a) Highly satisfied b) Satisfied c) Moderate d) Dissatisfied

e) Highly dissatisfied
 42

Analysis – 2

For Axis Bank Customers

Q.1.) What kind of account do you have in axis bank?

Interpretation:

From the above graph, it is clear that Most of the customers (59%) have savings account in axis Bank. About 31% of
the customers have Current account at axis Bank while 8% of the customers have Fixed deposit.

Q.2.) How you find the salary/saving accounts of axis bank?

 43

Interpretation:

From the above graph, it is clear that Most of the customers about 50% find their Savings/Salary accounts very good.
About 20% of the customers found their Savings/salary accounts Excellent. About 30% of the customers found their
Savings /Salary Account Good. No customer were found to be dissatisfied with their savings account services with
bank.

Q.3.) Do you have any other products of axis bank other than salary/saving account?

Any Product other than Saving Account

Yes
32%

No
68%

Yes No

Interpretation:
 44
From the above graph, It is clear that 68% of the customers have only Saving/Salary Account with the bank while
32% of the customers have products other than Salary/savings Account.

Q.4.) Which channel you use to excess your account?

Interpretation:

From the above graph, we see that 56% of the customers mostly use ATM for their transactions. About 25% of the
customers like to visit Branch for their services. About 19% of the customers uses Net Banking/ Mobile Banking.

Q.5) Which bank has ease of access (branch and ATM)?

 45

Interpretation:

From the above graph, about 41% of the customers found to have ease of access of SBI Bank’s ATM and Branch.
29% of the customers found to have ease of access of the PNB bank’s ATM and Branch. 26% of the customers found
to have ease of access of Axis Bank Branch and ATM.

Q.6) Which bank offers you flexibility in its products?

Interpretation:
 46
From the above graph we see that, About 61% of the customers were saying that Axis bank offers most flexibility in
their products. About 12% of the customers feels that HDFC bank offers flexibility in their products while 13% of the
customers were saying that other Banks (ICICI, Canara, Union Bank) offers flexibility in their products.

Q.7.) Which bank is better in providing services regarding transaction?

Interpretation:

From the above graph, we see that about 87% of the customers were found Axis bank better regarding the transaction
services while 7% of the customers found HDFC bank better regarding the transaction services.

Q.8.) Which is the area of improvement of axis bank?

 47

Interpretation:

From the above graph, it is clear that 70% of the customers want Improvement in the services offered by Axis Bank.
About 20% of the customers want improvement in the technology used by bank. About 10% of the customers wants
more variety in the product offered by banks.

Q.9.) In comparison to another bank how would you rate axis bank?

Interpretation:
 48
From the above graph, we see that 53% of the customers found services of the Axis bank very Good in comparison
with other banks in the industry. About 27% of the customers found their services with bank excellent. About 20% of
the customers found the Axis bank services good.

Q.10.) What features/attributes, while opening an account do you expect from a bank?

Interpretation:

From the above graph, we see that 47% of the customers want quick service from the bank. 25% of the customers
want less formalities while consuming service. About 18% of the customers want proper information regarding the
products offered by bank while 7% of the customer’s demands more variety in the products offered by banks.

Q.11.) Your opinion regarding bank service provided by axis bank?

 49

Interpretation:

From the above graph, it is clear that 35% of the customers were highly satisfied from the services provided by axis
bank. 60% of the customers were satisfied form the overall service offered by the bank. About 3% of the customers
were dissatisfied regarding the services offered by the bank.
 50

Comparative analysis of Axis Bank Products with Other Banks

Comparison of FD rates with other Banks:

General Customer: Amount<2 Cr

1 Year:

2 year:
 51

3 year:

5 Year:

Senior Citizen: Amount <2Cr

 52

1 year:

2 Year:

3 Year:
 53

5 Year:

Comparison of Saving Account rates with other Banks:

Savings Interest Rate for amount below 50 lakhs

 54

Savings interest rate for amount above 50 lakhs

 55

FINDINGS

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

• The bank and its customers have a long-term relationship. 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
that’s why they try to maintain good and long-term relations to their customers.

• Less no. of customer uses mobile banking or net banking.

• The accounts of these three banks (Axis, HDFC, ICICI) don’t have much difference in terms of
features but when it comes to number of branches and ATM’s HDFC Bank is ahead of the Axis
Bank.

• The customers of Axis Bank are satisfied with their savings and salary accounts.

• This study finds that however Axis Bank is not the leading private sector bank but its vast range of
products and availability of options make it one of the better banks in India.

• 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.
 56

RECOMMENDATION & SUGGESTIONS

• AXIS Bank needs to promote and encourage people to use internet banking.

• In terms of ease of access AXIS Bank needs to increase the number of ATM’s.

• The Bank should be more flexible to compete with its competitors like HDFC, ICICI.

• This bank is not investing more into the marketing sector so I will suggest that some of the part of
income it investing in the advertising and marketing sector.

• Mostly service class persons prefer the axis bank in the comparison of business and students and
other class persons thus it needs to promote its product and services that are offered mainly for the
business class people and students. Because these two class forms major users of the banking
services.

• The Bank needs to open more branches to increase the market share in the rural areas.
 57

References/Bibliography

• Reserve Bank of India (rbi.org.in)

• http://www.axisbank.com/personal/index.aspx

• HDFC Bank – Personal Banking & Netbanking Services

• Personal Banking & Netbanking Services Online - ICICI Bank

• SBI - Loans, Accounts, Cards, Investment, Deposits, Net Banking - Personal Banking

• Personal Banking | Internet Banking Services | Corporate Banking Services (pnbindia.in)

• Parimal Vyas (2000). “Measurement of Customer Satisfaction: A Study of Banking Services”, Business
Perspectives, Vol. 4, September, pp.73-87.

• Mishra, D. (1997). Fundamentals for Banks. IBA Bulletin, XIX (8), 42

• Singh, Gaga jot. (1998). New Innovations in Banking Industry – A study of New Private Sector Banks. Deep
and Deep Publications, New Delhi, 36-63.
58