Axis bank

Reinventing banking
Indian Banking System
History of Banking of India
 The first bank in India was established in
India in 1786.
 The journey of Indian Banking can be
segregated into 3 phases.

Phase 1 Phase 2 Phase 3

Phase 1
 1786-The general Bank of India.
 1865-Allahabad bank was established
 1906-1913-Central Bank of India, Bank
of Baroda, Bank of India was
established.
 1935- Reserve Bank of India came up.
 Banks faced experienced periodic
failures between 1913 and 1948.
Phase 2
 In 1955, it nationalised Imperial Bank of India with
extensive banking facilities on a large scale specially in rural
and semi-urban areas.

 7 Banks formed subsidiary of State Bank of India were

nationalised.

 14 major commercial banks in the country was nationalised.

 The branches of the public sector bank India rose to

approximately 800% in deposits and advances took a huge
jump by 11,000%.
Phase 3
 This phase has introduced many more
products and facilities in the banking sector
in its reforms measure.
 In 1991, under the chairmanship of M
Narasimha, committee was set up by his
name which worked for the liberalisation of
banking practices.
 Phone banking and net banking was
introduced.
 Time was given more importance than
money.
Emergence of Private Banks
 Private banking in India was practiced since the
beginning of banking system in India.

 The first Private Bank in India to receive an in

principle approval from the Reserve Bank of India was
Housing Development Finance Corporation Limited.

 It was incorporated in August 1994 as HDFC Bank

Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial
Bank in January 1995.
UTI BANK
Introduction
 Axis Bank (Formerly known as UTI) was one of
the few private banks to have began operations
in 1994
 The Bank was promoted jointly by the
Administrator of the specified undertaking of
the Unit Trust of India (UTI)
 Life Insurance Corporation of India (LIC).

 General Insurance Corporation Ltd (GIC).

 National Insurance Company Ltd.

 The New India Assurance Company.

 The Oriental Insurance Corporation.

 United Insurance Company Ltd.

Journey From UTI to AXIS
1994-1997

 Incorporated as UTI Bank,

headquartered in Mumbai
 First Branch inaugurated at
Ahmedabad
 Completes first profitable year in
operation in 1995
 Deposit crosses Rs.10bn mark in
1996
1998-2000
 Successfully completes its IPO in 1998 and
gets itself listed on NSE and BSE
 Cash management services as well as credit
card launched
 Profit crosses Rs.500m in 2000
 Launches Internet banking module, iConnect
retail loans introduced
 Financial advisory services and e-commerce
introduced
 Second largest ATM network in the country
with 200 ATMs
2001-2005
 Private placement of 26% stake to CDC
Capital Partners
 Deposit crosses Rs.100bn mark in 2001,
advances crosses Rs.50bn
 First commercial bank to open an ATM at
a post office
 Crosses the 1,000 ATM mark in 2003
 Gets listed on the London Stock
Exchange, raises $239.3m
2006-2008

 Opens its first international branch in

Singapore
 Opens Representative Office in Shanghai
 Crosses the 2,000 ATM mark in 2006
 Opens a Full Licence Bank Branch in Hong
Kong
 Re-brands itself as Axis Bank
 Mumbai, Jul 30 2007 : UTI Bank on
Monday rechristened itself as Axis Bank.
PROBLEM

 WHY THEY CHANGE THEIR NAME

FROM UTI TO AXIS BANK??
THERE ARE 3 MAIN REASONS

1. They had to give up the UTI name after

using it for 13 years as we were not
prepared to accept terms and conditions
(including royalty) from UTI AMC
 The decision to rebrand itself was taken by
the bank as it was allowed to use the 'UTI'
brand name for free till January 31, 2008,
beyond which it had to pay royalty for
using the name.
2. The recommendation for name change to
Axis Bank has arisen from the existence of
several shareholder-unrelated entities using
the UTI brand, and the consequent brand
confusion that this generates.
3. The name UTI bank was changed to AXIS
bank as UTI gave a look of government
sector bank. They had to change our name
to have our own brand and identity.
The new name AXIS
 The new name was chosen considering
the bank’s pan-Indian as well as
international presence.
 The first time that a bank has dropped
an established brand for an unknown
name.
 The name Axis is chosen as it is simple
and it conveys a sense of solidity and a
sense of maturity. It also has a universal
appeal.
Mission
 Customer Service and Product
Innovation tuned to diverse needs of
individual and corporate clientele.
 Continuous technology up gradation
while maintaining human values.
 Progressive globalization and
achieving international standards.
 Efficiency and effectiveness built on
ethical practices.
Core Values of Axis
 Customer Satisfaction through
• Providing quality service effectively and
efficiently
• "Smile, it enhances your face value" is a service
quality stressed on
• Periodic Customer Service Audits
 Maximizations of Stakeholder value
 Success through Teamwork, Integrity and
People
 Retail, corporate, treasury and merchant
banking.

 Apart from this the bank is also into insurance,

investment banking, mortgage financing, credit
cards, and depository services amongst others.

 It is also registered on the following exchanges:

 OTCEI
 BSE
 NSE
 London stock exchange
 Services
Retail banking
• Deposits schemes
• Loans and advances
– Personal loans
– Housing loans
– Cards
– Consumer durables
– Auto loans
Personal banking
• Accounts
– Term deposit
– Fixed deposit
– Recurring deposit
• Cards
– Different variant like: Gold plus card, Gold card, Silver &
silver plus cards.
Corporate banking
• Accounts
– Normal Current Account
– Trust/NGO Savings Account
• Services
– Private Equity, Mergers & Acquisitions
– Advisory Services
– Capital Market Funding
– E-Broking
 RECENT DEVELOPMENTS

• Shikha Sharma was named as the bank's managing

director and CEO on 20 April 2009.

• As on the year ended March 31, 2009 the Bank had a

net profit of Rs 1,815.36crores

• The bank now has 835 branches including extension

networks across 30 States and 4 Union Territories.
• The bank also has overseas offices in
Singapore, China, Hong Kong and Dubai.

• Crosses the 3,723 ATM mark in 2009

• Launches Platinum Credit Card, India's first EMV

chip based card

• Axis Bank is now trading at Rs 911.85 (17th sep).

 MARKETING OBJECTIVES

Axis Bank want to achieve following marketing

objectives by the end of the year 2011.

• To get the market capitalization 500 Crore

• To get the 200 Crore retail investment.
• To get 125 Crore Corporate investments.
• To get the 175 Crore Capital investments.
SWOT ANALYSIS OF AXIS BANK
PESTLE ANALYSIS OF AXIS BANK
 AXIS BANK FIVE FORCE MODEL

NEW ENTRY
Yes bank
Deutsche Bank
Indian Overseas Bank
Vijaya Bank

THREAT OF AXIS BUYING POWER

SUPPLIERS OF
CUSTOMER
(RBI) BANK

THREAT OF
SUBSTITUTES
(SHAREHOLDER OF
CAPITAL MARKET)
STRATEGIES
 Core Competence Strategy
For the private sector banks:

 Differentiation on the basis of area coverage.

 Restricted Reach.

 Level of service is the same.

 Axis got advantage because of Product Innovation.

Core Competence Strategy
For the government sector banks

 High level of service quality and through

product innovation.

 AXIS not any where near, but has created a

different set of segment.

 People who believe in the higher set of

services
Core Competence Strategy

For the International Banks :

 Differentiated itself on the base of the reach

and coverage to the people.

 Service level is somewhat same.

 In the future these banks may create a

problem.
 STP ANALYSIS
 Segmentation strategy
 Demographics variables
 Location
 Metros & divisional cities
 Occupation
 Business persons
 Salaried class (both Govt. and private)
 Working woman
 Age
 Senior citizens
 Minor
 Targeting strategy

 Target market

 Corporate banking market: This market target the industries

and fulfil their financial needs.

 Capital market: This segment is targeted on the long term

needs of the individual as well as of industries
 Retail banking market: This segment is for the retail investor
and provide them short term financial credit for their personal,
household needs.
 Targeting strategy

 Selective specialization strategy

 Here the bank selected a number of segments, each
objectively attractive & appropriate. There may be little
or low synergy among the segment but each segment
proves to be worth full for it.

 If we take the example of cards then Axis bank have

separate set of credit cards, each targeted at different
set of people i.e. segment and each one has its own
importance for the bank.
Positioning strategy

 Axis bank has positioned itself as a bank which

gives higher standard of services through
product innovation for the diverse need of
individual & corporate clients. So they want to
highlight following points in their positioning
statement:
 Customer centric
 Service oriented
 Product innovation
How their strategy changed after
rebranding:

 Earlier they were only customer

centric

 Now they have added Service centric

and product innovation into their
strategy.
Strategic Tie-ups
Tie- up with Banque Privee Edmond
de Rothschild Europe:

 Axis Bank and Banque Privee Edmond de

Rothschild Europe have signed an agreement on
September 19, 2007 in Luxembourg.

 Agreement enabled both organisations to work

together and provide Wealth Management
solutions to overseas Indians.

 The tie-up will also enable Axis Bank to offer

investment opportunities in global financial
products for overseas Indians and will offer the
joint products through its branches in Hong Kong,
Singapore and Dubai.
Tie-ups with various Govt.
Departments:

Govt. Departments:
 DGFT ePayments
 MCD - Municipal Tax or Fees ePayments
 MCD - eTendering Project
 Sampark - Utility Bill ePayments
 Bangalore One Project - Utility Bill ePayments
Growth Prospects of Axis
 Over the last five years, the CAGR for loan growth for the
banking industry has been 25-26 per cent; for Axis Bank it
has been above 40 per cent.
 Nonetheless, the bank is still expected to grow its loan
portfolio at 1.5-1.7x the industry average.
 In FY09 its advances grew at the rate of 37.5 per cent.
 In FY10 they are expected to grow at the rate of 27-28 per
cent and in FY11 at 25 per cent.
 For the banking industry as a whole, the loan book is
expected to grow at 18 per cent in FY10 and 16 per cent in
FY11.
 Thus, Axis Bank’s fast pace of growth is expected to sustain
over the next couple of years.
Conclusion !!!!

 AXIS bank has differentiated itself very well on the

basis of high level service and product quality.

 They have successfully implemented the change and

due to this their market share has increased only
despite of tough competition prevails.
Thank you..