Axis Bank

(Institute of Innovation in Technology and Management)

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Guide: Submitted by:

Anirudha Khanna
Roll No.: 00224401721

Institute of Innovation in Technology& Management,

New Delhi– 110058
Batch (2021-2024)

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 Certificate

I, Mr./Ms. Anirudha Khanna, Roll No. 00224401721 certify that the Project Report
(BBA-114) entitled “Axis Bank” is done by me and it is an authentic work carried
out by me at Institute of Innovation in Technology and Management. The matter
embodied in this project work has not been submitted earlier for the award of any
degree or diploma to the best of my knowledge and belief.

Signature of the Student

Date: 23 May, 2022

Certified that the Project Report (BBA-311) entitled “Axis Bank”

done by Mr./Ms. Anirudha Khanna, Roll No. 00224401721, is

completed under my guidance.

Signature of the Guide

Name of the Guide:
Designation:
Date:

Countersigned
(Director/Project Coordinator)

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 CONTENTS

S No Topic Page No
1 Certificate 2
2 Chapter-1: Company Profile 6
3 Chapter-2: Marketing Strategies of the Company 20
4 Chapter-3: Financial Ratios 28
5 Chapter-4: CSR initiatives and Unique Practices 31
6 Chapter-5: Conclusion and Suggestions 43
7 References 44

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 LIST OF TABLES

Table No Topic Page No

1 Names of Top Management of Axis Bank 9
2 Organisational Structure of Axis Bank 21

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 LIST OF FIGURES

Figure No Topic Page No

1 Organisational Structure of Axis Bank 8
2 Market Share of Axis Bank 20
3 Market Share of Axis Bank vis a vis Major 20
Competitors

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Chapter-1

COMPANY PROFILE

About the company

Axis Bank is the third largest private sector bank in India headquartered in Mumbai,

Maharashtra. 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 4,758 domestic branches (including extension

counters) with 10,990 ATMs & 5,972 cash recyclers spread across the country as of

31st March 2022. The Bank has 6 Axis Virtual Centers with over 1,500 Virtual

Relationship Managers as of 31st March 2022. The Overseas operations of the Bank

are spread over eight international offices with branches in Singapore, Dubai (at

DIFC), and Gift City-IBU; representative offices in Dhaka, Dubai, Abu Dhabi,

Sharjah and an overseas subsidiary in London, UK. The international offices focus on

Corporate Lending, Trade Finance, Syndication, Investment Banking, Liability

Businesses, and Private Banking/Wealth Management offerings.

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

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shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity

established in 2003.

With a balance sheet size of Rs. 11,75,178 crores as on 31st March 2022, Axis Bank

has achieved consistent growth and with a 5-year CAGR (2016-17 to 2021-22) of

14% each in Total Assets & Advances and 15% in Deposits.

Major Milestones

In 2005 UTI bank was listed on the London Stock Exchange.

In the year 2006, UTI Bank opened its first overseas branch in Singapore. The same

year it opened an office in Shanghai, China.

In 2007, it opened a branch in the Dubai International Financial Centre and branches

in Hong Kong.

On 30 July 2007, UTI Bank changed its name to Axis Bank.

In 2009, Shikha Sharma was appointed as the MD and CEO of Axis Bank.

In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. In

the same year Axis Bank was voted for Most Trusted Private Sector Bank in the

country in the Most Trusted Brands survey 2013 by Brand Equity.

On 1 January 2019, Amitabh Chaudhry took over as MD and CEO.

In year 2021, the Bank had reduced its stake in Yes Bank from 2.39 per cent to 1.96

per cent.

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Organisational structure

Figure No-1: Organisational Structure of Axis Bank

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Top Management

NAME DESIGNATION

Akshaya Kumar Panda President

Amitabh Chaudhry Managing Director & CEO

Girish Paranjpe Ind Non-Executive Director

Girish V Koliyote Co. Secretary & Compl. Officer

Gopalaraman PadmanabhanInd. Non-Executive Director

Himadri Chatterjee President

Ketaki BhagwatiInd. Non-Executive Director

N Balaji President

Prashant Joshi President

Puneet Sharma CFO & President

Rajesh Dahiya Executive Director

Rajiv Anand Executive Director

Rakesh Makhija Chairman

Rudrapriyo Ray President

S VishvanathanInd. Non-Executive Director

Sanjay Silas President

Stephen Pagliuca Non Exe. & Nominee Director

Sumit Bali President

T C Suseel Kumar Non Exe. & Nominee Director

Vasantha Govindan Non Exe. & Nominee Director

Vivek Gupta President

Table No-1: Names of Top Management of Axis Bank

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Products and Services

Axis Bank Mobile Banking

Owing to the availability of mobile banking, customers can access different financial

activities in just a few minutes. Mobile banking gives its customers the benefit of

controlling banking activities anytime using your smartphone.

Following are the facilities offered under Axis Bank Mobile Banking:

▪ Axis Mobile - the mobile banking application of Axis Bank

▪ BHIM Axis Pay UPI App - can be linked to any bank account for sending and

receiving payments in a secure way with a single identifier i.e. Virtual

Payments Address (VPA)/UPI ID

▪ Axis OK - safe and secure portal for accessing your bank account on any

android device even if there is no internet service

▪ SMS Banking - updates the customers through SMS or text alerts if a

transaction has been made

Axis Bank Online Banking

Customers or account holders of Axis Bank can access numerous banking features

with the help of Online Banking facility at the comfort of their home or office. Online

banking is secure and provides convenient access to the bank account to its customers.

Facilities provided under Online Banking are as follows:

▪ Internet Banking - 24/7 assistance is provided to the customers or account

holders in internet banking

▪ E-statements - helps in keeping a track record of the customer’s accounts and

transactions to further manage money in an efficient way

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 ▪ Axis PayGO - allows the employees/students/community members to make

contact less and cashless payments by using their ID Cards

Axis Bank Credit Cards

A wide range of credit cards is offered by Axis Bank to make choices. Along with

unmatched privileges, all these cards have unique features and benefits. A host of

rewards such as gift vouchers and loyalty points can be earned by using the Axis

Bank credit cards.

Axis Bank Debit Cards

To cater to the varied needs of its customers, Axis Bank offers a wide range of Debit

Cards. One does not need to carry cash everywhere he/she goes if carrying a debit

card. It is easy to withdraw cash from the ATM machine as and when required. Also,

you get exclusive benefits such as free movie tickets, discounts at restaurants, etc. on

using the debit cards.

Axis Bank Prepaid Cards

Several prepaid cards are offered by Axis Bank that can be used for various purposes

such as gifting, giving rewards and motivating your loved ones or your employees.

You make a choice amongst these cards as per your needs and requirements. These

prepaid cards have a number of benefits and can be loaded by any amount between

Rs. 500 and 10,0000.

Axis Bank Transit Cards

Transit cards offered by Axis Bank are helpful for convenient shopping and traveling

as these enable hassle-free payments. Also known as an all-in-one smart card, it lets

the user avail additional offers and rewards at the time of making one-tap payments.

The BMTC smart card enables the user in making payments for travel and shopping,

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whereas the KMRL Kochi Card is used for making payments at the Kochi Metro and

online stores.

Axis Bank Savings Account

Customers of Axis Bank are provided a number of savings accounts that has different

features and benefits. Savings accounts cater to the variegated banking needs of

people and offer attractive features and benefits such as free cheque books, discount

on movie tickets, higher limits for transactions, reward points, etc.

Axis Bank Salary Account

Employees who have a salary account with Axis Bank can smoothly access their

salaries. Those who have a salary account with Axis Bank can also enjoy various

benefits and have an option to choose from the range of special debit cards. Axis

Bank has different types of salary accounts that have a variety of benefits such as

cashback on movie tickets, senior ID cards for senior citizens, discounts on travel

plans, etc. All cards have enticing benefits but vary in features such as daily

withdrawal limit, shopping limit, kind of debit card, etc.

Axis Bank Current Account

Axis Bank current accounts offer a variety of features and benefits to its customers.

‘Anywhere Banking’ as the main feature, these accounts have online and digital

banking options that are user-friendly. In addition to this, account holders can make

transactions from any of the bank branches without any cost. A current account offers

free SMS alerts and NEFT/RTGS transactions.

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AxisDirect Invest Account

AxisDirect Invest Account is a 3-in-1 online investment account. It is a combination

of Axis Bank savings accounts, Demat accounts, and AxisDirect trading account.

Following are the services offered by AxisDirect invest account:

▪ The account holder can make online investments in stocks of listed companies

▪ The account holder can make investments in mutual funds

▪ The account holder can invest in SIPs (Systematic Investment Plans)

▪ The account holder can make investments in Initial Public Offerings (IPOs)

▪ The account holder can invest in exchange-traded funds

▪ The account holder can make investments in bullion, metals, energy and

agricultural commodities

Safe Deposit Locker

For the safety of your valuables, you can open a safe deposit locker with Axis Bank

that is available in various sizes and store your valuables in it. Axis Bank deposit

lockers have easy options for payment of its rent and nomination facility is available

for a seamless release of the valuables that are stored in it. In addition to this, lockers

facility is available in over 2,000 branches of Axis Bank.

Axis Bank Safe Custody Account

The safe custody account of Axis Bank sets you free from the tension of concerns

related to important documents and valuables. This account is helpful in relieving of

the contents to the nominee without any issue, making payments without any hassle

and directly debiting the locker rent from your account.

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National Pension System (NPS) Account

The government of India has initiated an investment cum pension scheme for the

citizens of India, which is known as the National Pension System (NPS). This scheme

provides financial security to the senior citizens and pension to all citizens of India.

Also, it is an investment tool through which you can gain market based returns.

Pension Fund Regulatory and Development Authority (PFRDA) has appointed Axis

Bank to act as one of the Points of Presence (POP) for the National Pension Scheme.

Pension Disbursement Account

Axis Bank’s pension disbursement account is helpful for the pensioners as it

simplifies banking. This account offered latest banking solutions at a very cost. To

avail the benefits of pension disbursement account, one is required to open the

account before getting the first pension. Submit the required documents and provide a

life certificate, which is issued by the authority of the organization that one has

served.

Axis Active

Axis Active is a fitness program that comes with a fitness band. It is run in

partnership with GOQii. By participating in this program, you can double up your

wallet. You just have to make contactless payments at one tap through your band at

more than 50,000 Near Field Communication (NFC) enabled outlets throughout India.

Basic Savings Account (Part of Pradhan Mantri Jan-Dhan Yojana)

The basic account of Axis Bank offers the best banking services to its customers.

There is no requirement to maintain a minimum balance in this account. Free cash

deposits, internet banking, mobile banking, convenient banking that can be accessed

to multiple branches & ATMs. In addition to this, account holders are provided with a

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passbook, e-statements and SMS alerts so that they are up to date regarding their

account transactions and status.

Axis Bank Deposits

Bank deposits are one of the best options that one should choose for making

investments as the interest rates are high and there is minimum risk factor of financial

loss. One must invest in Axis Bank’s fixed deposits and recurring deposits to get the

best out of their wealth as these offer high rate of interest. Besides, there are other

deposit schemes that offer high returns and can be accessed easily.

Fixed Deposit (FD)

You can grow your savings with the Axis Bank's fixed deposit (FD), which is safe

and secure. You need to open a fixed deposit account with Axis Bank that requires

minimum Rs. 5,000. Fixed deposits have a flexible tenure of minimum 7 days to a

maximum of 10 years. High interest rates are offered for both long and short term

investments. Also, automatic roll-out facility is offered by the bank so that the interest

of the fixed deposit gets credited to a designated account or to some other account.

Recurring Deposit (RD)

You can grow your savings every month by Axis Bank's recurring deposit. It helps

you in earning a higher interest rate on the basis of the amount of installments and the

time-period of the deposit. You can easily open a recurring deposit online with just

Rs. 500 (minimum amount required as the installment) while the maximum amount

has no limit, it can run into multiples thereof. You get interest for the deposits made

for a minimum tenure of 6 months and maximum is 10 years.

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Axis Bank Loans

Axis Bank offers its customers a variety of customized bank loans at competitive

interest rates. To get a loan, one is required to check his/her eligibility using the loan

calculator. Further, the applicant can apply for the loan and get competitive interest

Axis Bank Forex Services

Axis bank offers a variety of Forex products that helps an individual in buying, selling

and managing foreign currency of different denominations. One can avail these

services at competitive rates with quick and secure banking transactions.

Below are the facilities that are offered under forex services:

▪ Travel Forex Card

▪ International Fund Transfer

▪ Online Fund Transfer

▪ Online Currency Converter

▪ Foreign Currency Cash

▪ Foreign Currency Demand Draft

Axis Bank Investments

You can see your money grow by investing in the Axis Bank investment schemes.

These investments can be made as per the availability of finance.

Axis Bank Insurance

Axis Bank provides you with different insurance solutions as it has partnered with

some of the leading insurers. At the time of a medical or non-medical emergency, you

get assured compensation of financial losses or expenses. You can avail a life

insurance policy, non-life insurance policy or policies introduced by the government

of India.

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Axis Bank ATM Banking

Axis Bank offers ATM services to the customers keeping in mind their requirements

and comfort. Through ATM banking, the customer can easily lodge a request for new

cheque book, make a balance enquiry and change the PIN. Also, you can pay your

insurance premiums or purchase/redeem mutual fund schemes through ATM banking.

Axis Bank Cash Deposit Machine

Now, you don’t wait in long queues and fill forms to deposit money. You can deposit

money with you debit card or account number using a Cash Deposit Machine (CDM).

In addition to this, a Cash Deposit Machine (CDM) helps you in instant money credit

throughout the week and at any time of the day.

Axis Bank NRE Saving Account

NRIs can easily save their foreign earnings and earn tax free interest on the same

earnings by depositing them in the Axis Bank’s NRE savings bank account. The

account holder can easily operate the NRE account through internet banking or

mobile banking app which can be accessed from any part of the world and helps in

seamless transactions. NRE savings account holder gets a free personal accident

coverage of Rs. 2 lakhs on the debit card. Also, this account permits the account

holder to authorize a nominee who is an Indian resident for conducting banking

transactions on his/her behalf, in case of unavailability.

NRI Prime Savings Account

Prime Savings Account by Axis Bank serves the NRIs more than just an ordinary

regular savings account. The prime savings account for NRI offers you a number of

multiple access points, which means you can operate this account through internet

banking, mobile banking, by visiting branch, etc. Owing to the wide network of Axis

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Bank, one can transfer funds without any problem and withdraw a large amount by

using Titanium Mastercard, which is issued against NRI prime savings account. In the

absence of account holder, the account can be operated by his/her family members or

the nominee by presenting the letter of authority.

Axis Bank Resident Foreign Currency Account

NRIs who come back to India and want to retain their foreign earnings without

converting it into Indian currency can do the same by depositing the foreign earnings

to Axis Bank’s resident foreign currency account. An NRI who is now residing in

India can open, hold and maintain a foreign currency account. Flexibility to remit,

repatriate and hold funds in India as per the needs and preferences are the features and

benefits of Resident Foreign Currency Account by Axis Bank.

Axis Bank NRE Rupee Deposit

NRE Rupee Deposit is offered by Axis Bank to NRIs that helps in getting a higher

rate of interest and smooth repatriability on foreign currency with Indian rupee term

deposits. These deposits also help in easy transfers of any currency which is

convertible. Also, the investor gets a flexible tenure and a tax-free interest on the

same.

Foreign Currency Non-Resident Deposit (FCNR)

NRIs are offered with Foreign Currency Non-Resident Deposit by Axis Bank. With

the help of Foreign Currency Non-Resident Deposit (FCNR) NRIs can easily avail

returns from any of the six currencies of their choice for a time period of 1 year to 5

years. Before applying for Foreign Currency Non-Resident Deposit (FCNR), one

needs to check his/her eligibility and complete the documentation formalities.

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NRI-Pro Foreign Currency Deposit

Pro foreign currency deposit is offered by Axis Bank to NRIs. NRIs can invest in an

NRE deposit to earn high yields in foreign currency. This foreign currency deposit

helps you get a low minimum deposit. Also, this deposit for NRIs has an attractive

rate of interest with added advantage of rising exchange rates. Owing to these

deposits, there is no risk involved as the money is invested in fixed deposit.

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Chapter-2

MARKETING STRATEGIES OF THE COMPANY

Market Share

Market share of the company

Figure No-2: Market Share of Axis Bank

Market share vis a vis major competitors

Figure No-2: Market Share of Axis Bank vis a vis Major Competitors

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 Table No-3: Organisational Structure of Axis Bank

SWOT Analysis

Strengths

▪ Axis bank has been given the rating as one of top three positions in terms of

fastest growth in private sector banks

▪ Financial express has given number two position and BT-KPMG has rated

AXIS bank as the best bank with some 26 parameters

▪ The bank has a network of 1,493 domestic branches and 8,324 ATMs

▪ The bank has its presence in 971 cities and towns

▪ The bank’s financial positions grow at a rate of 20% every year which is a

major positive sign for any bank

▪ The company’s net profit is Q3FY12 is 1,102.27 which has an increase of

25.19% growth compared to 2011

Weaknesses

▪ Gaps – Majorly they concentrated in corporate, wholesale banking, treasury

services, retail banking

▪ Foreign branches constitute only 8% of total assets

▪ Very recently the bank started focusing its attention towards personal banking

and rural areas

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 ▪ The share rates of AXIS bank is constantly fluctuating in higher margins

which makes investors in an uncomfortable position most of the time

▪ There are lot of financial product gaps in terms of performance as well as

reaching out to the customer

▪ There are many fraudulent activities involved in credit cards as the banks

process credit card approval even without verification of original documents

▪ Their financial consultants are not wise enough to guide the customers

towards right investments

▪ Customer service has to improve a lot in order to be in race with other major

players

Opportunities

▪ Acquisitions to fill gap

▪ In 2009, Alliance with Motilal Oswal for online trading for 10 million

customers

▪ In 2010, acquired Enam Securities Pvt Ltd – broking and investment banking

▪ In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund

business

▪ No. of e-transactions increased from 0.7 million to around 2 million

▪ Geographical expansion to rural market – 80% of them have no access to

formal lending

▪ 46% use informal lending channels

▪ 24% unregulated money lenders

▪ Now number of branches increased to 1493 from 339.

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 ▪ Last quarter there were 48 new branches opened across the Nation

▪ Since it’s a new age banking there are lot of opportunities to have the advance

technicalities in banking solutions compared to existing major players

▪ The assets in their international operations are growing at a very faster pace

with a growth rate of 9%.

▪ The concept of ETM (Everywhere teller machine) by AXIS Bank had a good

response in terms of attracting new customers in personal banking segment

Threats

▪ Since 2009, RBI has increased CRR by 100 basis points

▪ Increased repo rate reverse repo rate by 50 points – 11 times of late

▪ Increasing popularity of QIPs due to ease in fund raising

▪ RBI allowed foreign banks to invest up to 74% in Indian banking

▪ Government schemes are most often serviced only by govern banks like SBI,

Indian Banks, Punjab National Bank, etc.

▪ ICICI and HDFC are imposing strong threats in terms of their expansion in

customer base by their aggressive marketing strategies

Marketing Strategies over past 5 years

Axis bank segments the market based on Psychographics & demographics variables

like income & occupation, age, social class etc. It targets the business class & tech

savvy customers for whom time is more important and who would prefer convenience

in banking with bank.

Axis bank has positioned itself using a combination of positioning strategies i.e.

product/service attribute & quality/value basis.

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Axis Bank’s strategic marketing is something that has garnered popularity and praise

for the bank as it’s slowly & swiftly moving its way up to be the most accessible bank

in the market. Following are some insights on Axis Bank Marketing Strategy:

▪ Taking its tagline “ Badhti Ka Naam Zindagi…” seriously & tapping on the

uprising of the digital era, Axis Bank has smartly chosen to operate better on

technical grounds, moving up the ladder.

▪ The bank uses an omnichannel approach to market its services keeping the

customer as a core.

▪ The brand provides discount coupons and offers on interest rates who take

loans and give gift hampers to the ones who win the lucky draws.

▪ They also use direct marketing to attract corporate employees and students.

▪ They use online as well as offline mediums to promote their brand. Offline

medium includes print advertisements, television commercials, whereas online

medium includes all digital channels like social media.

Marketing Strategy of Axis Bank analyses the brand with the marketing mix
framework which covers the 7Ps (Product, Price, Place, Promotion, People, Process,
Physical Evidence). There are several marketing strategies like product innovation,
pricing approach, promotion planning etc. These business strategies, based on Axis
Bank marketing mix, help the brand succeed.

Axis Bank marketing strategy helps the brand/company to position itself

competitively in the market and achieve its business goals & objectives.

Axis Bank Product Strategy

Axis Bank services the customers in Large, Mid and MSME segments. It also caters

to customers in Retail business and Agriculture. Axis Bank offer many financial

services under its marketing mix product strategy.

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Axis Bank’s product offerings: Accounts – savings, current, salary accounts, bank

lockers; Deposits – Fixed and recurring; Loans – home, personal, vehicle, educational

and gold; Cards- debit, credit and travel cards; Forex - Forex Card, International fund

transfer, foreign currency cash, cheques and DD; Investments – mutual funds;

Insurance- Life, health and general insurance.

These Axis Bank products/ services are just an indicative and not exhaustive. All

these services can be accessed through direct Axis Bank branches, internet, mobile

and telephone banking channels established by the bank.

Axis Bank Price/Pricing Strategy

The main sources include Interest rates, commission charges and consulting fees. The

interest rates should reflect the interest rates established by the central bank.

Commission rates are monitored by the Indian Banks’ association. These pricing

policies set by the banks have immediate impact in attracting the customers and the

volume of transactions they do. Also Axis Bank, like the other banks, should follow

the suggestions and regulations by Government of India to serve and help the

economically backward class and senior citizens through their plans. So all this makes

the pricing a very complex and critical part of marketing mix. Currently the interest

rates for Fixed deposits are at 7% for amounts less than 1 crore and 6.25% for

amounts between 1-5 crores. For loans the interest rates are as follows- Home:9.45%

p.a (MCLR+0.15%), personal loans costs about 15.5% -24%.

Axis Bank Place & Distribution Strategy

Axis bank is now present in 2900+ branches in India and also working in 9

international offices. One of the most important place for the banks where customers

go to apart from their branches is ATM. This where most of the customers take their

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money and Axis Bank is having 12,000+ of them across the length and breadth of our

country. This shows the strong place strategy in the marketing mix of Axis Bank.

With the emergence of new technology Banks are embracing it for the convenience of

customers; these include internet and mobile banking services where customers can

transact without ever going to a bank. This also helps banks in reducing costs. Axis

bank has setup a strong It infrastructure for its internet and mobile banking services.

Axis Bank Promotion & Advertising Strategy

Axis bank is promoting its offers and products aggressively through different

channels. These include print advertisements, TVC, and digital marketing channels.

Axis Bank also gives discounts and offers to its customers on interest rates and gift

hampers in lucky draws for those who take loans. Wheels of fortune is one such lucky

draw for loan holders, winners of this draw would receive gifts and prizes. Bollywood

actress Deepika Padukone is the brand ambassador for Axis bank in its promotional

activities. Recently their digital campaigns are also featuring models and actors. Axis

Bank also uses direct marketing to attract corporate employees and students.

People

Axis Bank is a people centric company, whether it is employees or customers. People

are a very important piece in the whole scheme of operations in service industry. They

decide the fate of the company. As the representatives of the Axis Bank they directly

interact with the customers and other stake holders. They help in realizing the

companies dream. Axis bank employs a little more than 50,000 employees. Axis Bank

values the contributions of these employees and focus on their training and

development activities for further enhancing their capabilities which in turn reflect in

company’s performance and customer satisfaction.

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Process

All the processes initiated by Axis bank are best in the industry. These processes

result in the customer satisfaction and operational efficiency. Every day operations

like dealing with customers, cash and other transactions are designed to derive

optimum results. The flow of customers/ operations in the bank are standardized for

quick turnaround time. Also the Axis Bank counters are segregated for different

operations they perform. Some counters are customized for special requirements/plans

required by the customers. Also technology is used to Axis Bank’s advantage where

simple transactions like withdrawal and deposits are done through machines without

any employee interaction.

Physical Evidence

The logo of Axis bank is designed when it changed its name in 2007. The Axis Bank

logo suggests strong base and going to develop in future. Axis Bank releases financial

stamens every year for investors and customers. The website and Apps are also

designed user friendly. It significantly reduced its paper usage with software’s helping

the staff to perform all the daily activities. Axis Bank also uses billboards at busy

places and near junctions for promotions with its tagline “Badthi ka Naam zindagi”

suggesting company’s philosophy of progress in life.

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Chapter-3

FINANCIAL RATIOS

Profit Margin

The profit margin ratio determines what percentage of a company's sales consists of
net income. Put simply, it provides a measurement of how much profits are generated
from a company's sales. This number is useful for determining how well an
organization's finances are being managed.

Profit Margin Formula

Net Income
Net Profit Margin =
Revenue

Net Profit Margin of Axis Bank (as of March’22) = 19.33%

Return on Assets

The return on total assets ratio compares a company’s total assets with the amount of
money it returns to its shareholders. It is one of five ratios used to assess a company’s
profitability along with return on shareholders’ equity, gross profit margin ratio,
return on common equity and net profit margin ratio.

The return on total assets ratio indicates how well a company’s investments generate
value, making it an important measure of productivity for a business. It is calculated
by dividing the company’s earnings after taxes (EAT) by its total assets, and
multiplying the result by 100%.

Return on Assets (ROA) Formula

Operating Income
ROA =
Total Assets

Return on Assets (ROA%) of Axis Bank (as of March’22) = 1.10%

Price Earnings Ratio

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The Price Earnings Ratio (P/E Ratio) is the relationship between a company’s stock
price and earnings per share (EPS). It is a popular ratio that gives investors a better
sense of the value of the company. The P/E ratio shows the expectations of the market
and is the price you must pay per unit of current earnings (or future earnings, as the
case may be).

Earnings are important when valuing a company’s stock because investors want to
know how profitable a company is and how profitable it will be in the future.
Furthermore, if the company doesn’t grow and the current level of earnings remains
constant, the P/E can be interpreted as the number of years it will take for the
company to pay back the amount paid for each share.

Price Earnings (P/E) Ratio Formula

Stock Price Per Share Market Capitalization
P/E = OR P/E =
Earnings Per Share Total Net Earnings

Dividend Payout Ratio

OR Justified P/E =
R−G
where, R = Required Rate of Return
G = Sustainable Growth Rate

Price to Earnings Ratio of Axis Bank (as of March’22) = 33.96%

Cost-to-Income Ratio

Cost-to-income ratio is important for determining the profitability of a bank. The ratio
gives a clear view of how efficiently the bank is being run - the lower the ratio, the
more profitable the bank. Changes in the ratio also highlight potential problems - if
the ratio rises from one period to the next, it means that costs are rising at a higher
rate than income. Thus, there is an inverse relationship between the cost-to-income
ratio and the bank's profitability.

Cost-to-Income Ratio Formula

Operating Expenses
Cost-to-Income Ratio =
Operating Income

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where, Operating Expenses = Employee Cost + Other Operating Expenses
Operating Income = Net Interest Income + Other Income

Cost-to-Income Ratio of Axis Bank (as of March’22) = 42.77%

Net Interest Margin

Net Interest Margin is a measure of the net return on the bank’s earning assets, which
include investment securities, loans, and leases. It is the ratio of interest income minus
interest expense divided by earning assets.

Net Interest Margin (NIM) Formula

Net Interest Income

NIM =
Earning Assets

where, Net interest income = Interest income - Interest expense

Net Interest Margin of Axis Bank (as of March’22) = 2.81

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Chapter-4

CSR INITIATIVES AND UNIQUE PRACTICES

Axis Bank focuses its CSR initiatives in creating sustainable livelihood, promoting

education and skills development, creating awareness amongst the public at large on

public interest topics including financial literacy, facilitating and providing access to

formal banking channels for the unbanked and under-banked, promoting

environmental sustainability, and supporting health and sanitation initiatives.

In FY20, when the corporates were struggling with labour and the financial crisis

because of COVID-19 and therefore were cutting down their CSR spending, Axis

Bank not only met its prescribed CSR spending amount but exceeded it by spending

100.96 crores on its CSR initiatives as against the recommended amount of 100.62

crores.

1. Axis bank CSR

The Bank undertakes its CSR activities through Axis Bank Foundation. The

foundation reaches out and impacts the lives of millions of households across rural,

suburban and urban India. Its work is around the core theme of ‘Sustainable

Livelihoods’ wherein it works towards creating and strengthening rural livelihoods

and imparting skilling to youth, including the differently abled, in rural and peri-urban

areas.

Axis Bank Foundation works with experienced implementation partners with strong

expertise in grassroots developmental solutions. Under its Mission 2 Million, the

foundation has committed to supporting 2 million households by 2025, and has

adopted a progressive and knowledge‑based approach that is closely aligned to India’s

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developmental priorities. Currently, the foundation is active in 7,097 villages in 153

districts in 22 states.

2. CSR Policy

The CSR Policy of Axis Bank is driven by its corporate vision and its aspiration to be

the Bank of choice for its customers, shareholders, employees and the community. In

this regard, the Bank’s CSR Policy outlines the governance structure, operating

guidelines, monitoring mechanism, reporting framework and the CSR activities that

may be undertaken, in line with the extent CSR norms. The CSR Policy is reviewed

annually by the CSR Committee/ Board, and new focus areas, as deemed necessary,

are deliberated and approved, in alignment with Schedule VII to the Company’s Act.

The Bank executes its CSR activities directly by leveraging its geographical presence

across the country, through Axis Bank Foundation (ABF), through registered NGOs,

or in association with any other trusts, agencies or entities as deemed appropriate.

Wherever possible, the Bank tries to align its CSR activities with pertinent

Government schemes, with an intention to create a multiplier effect in the true spirit

of the extant CSR norms. A Board level Corporate Social Responsibility Committee

of the bank is responsible for reviewing the CSR Policy annually. In addition, the

committee is responsible for approving and recommending to the Board new focus

areas, as deemed necessary, in alignment with Schedule VII to the Act.

2.1 CSR Committee

The CSR Committee of Axis Bank comprises of Rakesh Makhija, Independent

Director (Chairman), Rajesh Dahiya, Executive Director (Corporate Centre) and Rajiv

Anand, Executive Director (Wholesale Banking) of the Bank.

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3. Axis Bank Foundation (ABF)

Axis Bank Foundation (ABF) is the Bank’s CSR arm that reaches out to millions of

households across rural, suburban and urban India. ABF’s work is around the core

theme of ‘Sustainable Livelihoods’ wherein it works towards creating and

strengthening rural livelihoods and imparting skilling to youth, including the

differently abled, in rural and peri-urban areas. ABF works with experienced

implementation partners with strong expertise in grassroots developmental solutions.

Under its Mission 2 Million, ABF is committed to supporting 2 million households by

2025, and has adopted a progressive and knowledge‑based approach that is closely

aligned to India’s developmental priorities. ABF is active in 7,097 villages in 153

districts in 22 states.

4. COVID-19 Relief

During the FY20, Axis Bank stood by the nation in its battle against COVID-19,

announcing its commitment to set aside an amount of INR 100 crores to support its

customers, employees, vendors, government agencies and the community at large. In

addition to adopting several customer-friendly measures aimed at offering seamless

and convenient banking, the Bank also scaled up its support to government agencies

such as Municipal Corporations and Police Departments towards battling the virus

and to vulnerable communities towards helping them meet their most basic

requirements. Employees from across the Axis Group have committed to support the

nation in its hour of need by donating a day’s salary towards the PM CARES Fund.

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5. Project Axis Dil Se

Axis Dil Se’ – Connecting Remote Communities is an ambitious initiative launched

by Axis Bank in FY 2017-18 towards promoting inclusive growth in India’s remote

borders through education to create an enduring change. Under the programme, the

Bank undertook the transformation of over 100 primary schools in the remote villages

in Leh and Kargil districts in the Union Territory of Ladakh over a period of three

years, and joined hands with its local implementation partner, 17000 ft. Foundation.

In the first year of the project, playground equipment was set up in the ‘DilSe’ schools

as well as libraries in these schools were refurbished to include age appropriate books

that aided in inculcating a reading habit. In addition to this, a Central Library in Leh

called the ‘The Next Chapter’ was inaugurated, where children come to read books

and take part in various non-curricular activities that are conducted there.

In the second year of the project, ‘DigiLabs’, an innovative digital learning

intervention comprising tablets with curated educational content and completely

powered by solar energy were set up in the schools. Additionally, training was

provided to the teachers to effectively utilise Digilabs.

In the third and final year of our DilSe intervention in Ladakh, age-appropriate

classroom furniture was installed and learning material was provided to the supported

schools. Significantly, the phase includes integration of Aanganwadi centres

(Integrated Child Development Services (ICDS) centres) with an aim to enhance the

learning levels of the children coming to these Aanganwadis. An important aspect of

the intervention is imparting training to teachers, Aanganwadi workers and the

villagers, for effective utilisation of the Centres by all stakeholders. In addition to this,

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block-level training was conducted for headmasters and DigiLabs administrators to

enable them to effectively use DigiLab.

The Axis DilSe Programme has been lauded by the Ladakh Autonomous Hill

Development Council, which aims to use the programme as a template for scaling up

the development of other schools and Aanganwadi centres in the Union Territory.

6. Axis Evolve

The MSME sector in India has an immense potential to contribute towards achieving

the Government’s ambitious growth targets for the economy. Recognising the need to

build deeper capacity within the sector participants, the Bank had launched ‘Evolve’

as a knowledge sharing and capacity enhancement platform that brings SME

participants together with experts, leaders and professionals. As a part of this

initiative, domain experts from diverse sectors share their expertise and experience,

and discuss the case studies focused on MSME sector growth and development. The

theme for Evolve’s sixth edition, concluded in this reporting period, was “Gearing up

for the 5 Trillion Dollar Economy”, with the series covering 26 cities in India,

touching close to 3,800 SME participants.

7. Project Akshar

Project Akshar was launched by Axis Bank in 2017 to help create a financially literate

society in the digital age, focusing on helping people improve their personal financial

responsibility. The platform uses an interactive and gamified approach to make

learning fun and interesting, while demystifying the financial space for a common

person, such as financial terms and other jargon that are often difficult to understand

and ignored, despite being an essential part of every financial contract. Akshar aims to

35 | P a g e
provide the necessary knowledge that can help users enhance their creditworthiness

through the right steps and initiatives. Akshar offers a knowledge bank to its users

that consist of lessons, blogs, quizzes, scenarios, and infographics on credit reporting

and financial management, segregated into beginner, intermediate and advanced

levels. Since its launch, over 3 Lakhs users have availed the platform.

As Akshar is completely online, it has been able to penetrate not just the metros, but

also tier 2 and 3 cities as well as many rural centres. Akshar’s success has created a

ripple effect with thousands of users recommending it to their friends and families. In

the FY20, thousands of active Akshar users reported an improvement in their credit

scores.

Akshar has also been enabled in the Hindi language. The localisation should

especially be able to cater to the needs of different customer segments in the Hindi

speaking regions, particularly in the smaller towns. Akshar also hosts blogs that boast

of a high reading presence, and are available in 5 languages – English, Hindi, Marathi,

Tamil, and Telugu. Under the project, the bank has launched a new initiative focused

on expanding financial literacy among women, focusing on providing personalised

financial plans and credit awareness sessions, especially for women participants.

Project Akshar has been recognised with notable accolades for its impact, during the

year. It bagged two awards – ‘CSR Project of the year in Banking and Finance’ at the

Brand CSR Awards 2019 and the ‘Best Digital Campaign by a Banking Enterprise’

Award at the Drivers of Digital (DOD) Summit & Awards 2019.

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8. Supporting Swachh Bharat

Marking the 150th year of Gandhi Jayanti in 2019, Axis Bank and the Bhopal

Municipal Corporation (BMC) collaborated in a unique public-private partnership

aimed at improving solid waste management in the city of Bhopal. Bhopal is already

among the best performers in the Swachh Bharat Mission’s annual national survey

and the Corporation sought to further strengthen its solid waste management practices

through improvements in on-ground monitoring and supervision.

Bhopal is a city with a population of approximately 2 million citizens and is divided

into 85 wards. Each Ward has its own set of officials and infrastructure for overall

waste management, including the ward ‘Daroga’ whose primary responsibility is to

ensure waste management is being done satisfactorily. Under the partnership, the

Bank equipped each Ward with one electric scooter each, totalling 85 scooters, which

shall allow the Darogas, as well as other officials such as health inspectors, to

improve the speed and coverage of their supervision.

The electric scooters were formally handed to the BMC leadership and senior

bureaucrats from the Government of Madhya Pradesh, by the Bank’s Managing

Director & CEO at an event in Bhopal. To further strengthen efforts to improve public

habits on cleanliness, the Bank has also provided 200 Android-based POS Machines

to BMC, to be used for spot fines against littering or other solid waste management

related breaches by citizens.

9. Axis Sahyog Programme

Community-based interventions towards expanding financial inclusion and deepening

financial literacy in urban and rural India are an integral strategic focus of Axis

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Sahyog, the Bank’s retail microfinance initiative. Especially focused on women

empowerment, Axis Sahyog undertakes community-focused, capacity building

activities directly or through its on-ground implementation partners aimed at

promoting self-empowerment, personal growth, and inspiring an entrepreneurial spirit

among women. Cumulatively, Axis Sahyog’s diverse interventions have touched over

8.5 Lakhs lives as on 31 March, 2020, and we aim to significantly scale this impact

going forward.

9.1 Financial Literacy Programmes

Axis Bank through its CSR programme continues to run three key initiatives under

financial literacy with its on-ground partner Accion in various states in the country.

Mass Awareness Camps: Mostly conducted through street plays, dance-dramas, street

poetries and magic shows, the camps’ objective is to spread awareness on inculcating

good spending habits, monthly budgeting plans, identifying the appropriate avenues to

save funds, and being aware of the fraudulent activities that can happen while they

undertake their usual monetary transactions. Camps are usually carried out at

community centres or other places of social gathering in a village. In FY 2019-20, the

camps covered 30,295 participants.

Money Plan Programme: The programme imparts information on efficient money

management by educating participants on various savings, insurance and investment

services available to them. The Programme uses specially designed training tool kits

such as audio visuals, flip charts, games and didactics. The programme also facilitates

adult learning in a classroom environment and is easily adapted to a digital

environment. A typical session incorporates quizzes, role-plays and games, and

38 | P a g e
includes demonstrating activities such as using or making a financial planner. The

Money Plan Programme covered 22,645 beneficiaries until March 2020.

Vocational Training: This intervention focuses on providing an educational training

emphasising specific trade, craft or job function-based knowledge and skills. The

programme has been effective in supporting employability and practical skills

development, and it has shown positive results.

9.2 Skill Development Programmes

Various studies on educational levels in the country have highlighted the poor

participation of women in secondary education, which has been especially visible in

rural India where access to formal education for women remains challenging.

Vocational training has emerged as an effective tool to fill this gap as it can not only

facilitate lifelong learning but also improve employability. Axis Sahyog’s skill

development initiatives operate under this objective keeping a strong focus on rural

women.

Skilling – Poor skilling among rural women has often forced them to take up

traditional roles such as supporting the occupations of their spouses or families, and

typically not being paid for their work. Axis Sahoyg focuses on skilling such women

in income-generating skills that can augment their personal as well as family incomes,

typically activities that do not require a large upfront investment, offer steady income

and could be run from within their own homes. For its effective implementation, the

bank has partnered with NIIT Foundation on skill development facilitating training

for the underprivileged & the under-served youth seeking employment opportunities.

As of 31 March 2020, the partnership enrolled 771 beneficiaries.

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The skilling interventions by the Bank also focus on providing soft skills such as

personality development and communicating in English, thus offering participants an

opportunity to take up customer-facing, value-added roles, especially for women

participants.

9.3 Health Camps

Axis Sahyog continues its partnership with Thyrocare to conduct women-focused,

health camps in rural India. At the camps, participants are provided a detailed health

card and they can avail free tests for diabetes, thyroid, blood profile, among others,

with reports delivered to their doorsteps. The Camps touched 8,784 lives in FY 2019-

20.

9.4 Axis Sahaayata

The Axis Sahaayata initiative under the Axis Sahyog programme aims to proactively

respond to natural disasters and other such exigencies across the country, delivering

direct relief measures and materials, and supporting on-ground relief efforts in

disaster-affected regions. During the year, apart from Odisha, Axis Sahaayata

provided support towards floods in the states of Assam, Bihar, Karnataka and Kerala,

distributing close to 23,000 flood relief kits and covering approximately 37,800

beneficiaries across 30 districts in these four states.

10. Waste Management at Axis House

Axis Bank has a centralised and robust waste management system that helps

segregate, collect, transport and recycle all the different categories of waste generated

at its corporate headquarters, at Axis House, Mumbai. The Bank has undertaken

40 | P a g e
several initiatives that have helped reduction in waste generation, responsible waste

disposal & recycling and reduce landfill.

In a move to reduce paper consumption, the Bank has cut down the supply of printing

papers, brochures, magazines, newspapers, paper-cups and tissue papers. In FY 2019-

20, the Bank recycled 78 tonnes of dry waste such as newspapers, shredded

documents, dry paper cups and tissues collected annually at Axis House and

converted into stationery items like notebooks, notepads, envelopes and bookmarks. It

also recycled and converted 40 tonnes of wet waste/ food waste at Axis House, into

compost through a composting machine, which is further used in landscaping and

gardening purposes. Owing to a high dependency on electronic devices for running

daily operations, disposal of e-waste is a major environmental concern for the Bank.

In order to tackle this, the Bank has engaged authorised vendors empanelled with

MPCB (Maharashtra Pollution Control Board) and CPCB (Central Pollution Control

Board) for disposal of e-waste in compliance with pertinent government regulations.

In FY 19-20, it collected and recycled 11.68 tonnes of e-waste through vendors.

11. Environmental initiatives – Axis Cares

Under the Axis Cares employee payroll giving programme, ABF supports various

interventions that focus on environmental protection and restoration. Through various

implementation partners, ABF undertakes large scale plantation of native trees with

an aim at improving the quality of common lands by arresting land degradation which

also supports the revival of biodiversity in the region. It also reduces pressure on

native forests and common lands for providing for fodder, fuelwood and water while

supporting the livelihoods of poor rural households. Community engagement is

strongly fostered for long term benefits as well as sustained care of the plantations.

41 | P a g e
Through the project, technical know-how is also transferred to participants for not

only being equipped to monitor the plantations but also for raising nurseries and or

plantations in their villages with quality saplings provided to them.

Under this programme, ABF set itself a target of planting 3.8 Lakhs saplings over

three years beginning in FY 2018-19, in partnership with two implementation

partners, NM Sadguru Water and Development Foundation and Foundation for

Ecological Security (FES). Under this programme, NM Sadguru had planted 1.3

Lakhs saplings in FY 2018-19 itself in the states of Rajasthan and Gujarat and is

nurturing and protecting the saplings this year. FES had planted 95,000 saplings in the

previous reporting year and has planted 1.55 Lakhs saplings in this reporting period in

the states of Rajasthan, Gujarat, Maharashtra, Andhra Pradesh and Odisha.

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Chapter-5

CONCLUSIONS AND SUGGESTIONS

Conclusions

The Axis Bank believes in empowering rather than helping while conducting its CSR

initiatives. By focusing on creating sustainable livelihoods the bank is focusing its

CSR energy towards picking up the country’s economy to recover after the crash it

experienced as a result of the pandemic.

So, as we’ve seen, the times are changing, so are the ways of people interacting with

different institutions. Axis Bank’s dynamism of including technical ways to move

ahead with time shows the bank’s capability towards elevation, wishing to surpass its

competitors. It has made major strides of excellence since it came to being and will

continue to do so with the loyalty and support of its customers & the bank’s

continuous need to evolve its methods and ways of interacting with the audience.

Suggestions

Even though Axis Bank has opted for one of the best ways to grow in business since

its arrival in 1993 in Ahmedabad, there’s still a need for them to expand its reach &

provide services to the lower-middle-class.

They can target young audiences & grow exponentially by blending online services

and AI. This would make the youth perceive the bank positively. They can also easily

manage to take over the new generation of customers by prioritizing extensive reach

on social media platforms, making them trust the brand better.

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 REFERENCES

1. From https://www.axisbank.com/, accessed on 6 May 2022 and 04:00 PM.

2. From https://www.slideshare.net/pradipmondal/marketing-strategy-axis-bank,

accessed on 7 May 2022 and 11:00 AM.

3. From https://www.marketing91.com/swot-axis-bank-2/, accessed on 7 May

2022 and 02:00 PM.

4. From https://www.moneycontrol.com/india/stockpricequote/banks-private-

sector/axisbank/AB16, accessed on 8 May 2022 and 09:00 PM.

5. From https://www.moneycontrol.com/financials/axisbank/ratiosVI/AB16,

accessed on 12 May 2022 and 05:00 PM.

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