Intro

CHAPTER - 1
INTRODUCTION
INTRODUCTION
Introduction to Banking Sector

A bank is a budgetary middle person and Money-maker that makes Money by loaning cash to a borrower.
Loaning exercises can be performed straightforwardly by giving credit or by implication through the
capital market. Capital markets are the monetary market for the purchasing and offering of long-haul
obligations or value-supported securities. These business sectors channel the abundance of savers to the
individuals who can put it too long haul beneficial utilize, for example, organizations or governments
influencing bug-to term speculations. Monetary controllers, for example, the Securities and Exchange
Board of India (SEBI) or U.S. Securities and Exchange Commission (SEC), direct the capital market in
their wards to ensure financial specialists against extortion, among different obligations. Because of the
significance in the monetary framework and impact on national economies, banks are very directed in
perch of nations either by National Government or Central Bank. As per the Reserve Bank of India (RBI),
India’s banking sector is sufficiently capitalized and well-regulated. The financial and economic conditions
in the country are far superior to any other country in the world. Credit, market, and liquidity risk studies
suggest that Indian banks are generally resilient and have withstood the global downturn well.
The Indian banking industry has recently witnessed the roll-out of innovative banking models likepayments
and small finance banks. RBI’s new measures may go a long way in helping the restructuring of the
domestic banking industry.
In India, banks are playing a crucial role in socioeconomic progress of the country after independence. The
banking sector is dominant in India as it accounts for more than half the assets of the financial sector.
Indian banks have been going through a fascinating phase through rapid changes brought about by
financial sector reforms, which are being implemented in a phased manner.
The current process of transformation should be viewed as an opportunity to convert Indian banking into a
sound, strong and vibrant system capable of playing its role efficiently and effectively on their own without
imposing any burden on government. After the liberalization of the Indian economy, the Government has
announced a number of reform measures on the basis of the recommendation of the Narasimhan
Committee to make the banking sector economically viable and competitively strong.
The current global crisis that hit every country raised various issue regarding efficiency and solvency of
banking system in front of policy makers. Now, crisis has been almost over, Government of India (GOI)
and Reserve Bank of India (RBI) are trying to draw some lessons. RBI is making necessary changes in his
policy to ensure price stability in the economy.
History of Axis Bank
The bank was founded on December 3rd, 1993 as UTI Bank, opening its registered office in Ahmedabad
and a corporate office in Mumbai. The bank was promoted jointly by the Administrator of the Unit Trust of
India (UTI), Life Insurance Corporation of India (LIC), General Insurance Corporation, National Insurance
Company, The New India Assurance Company, The Oriental Insurance Corporation, and United India
Insurance Company. The first branch was inaugurated on 2 April 1994 in Ahmedabad by Manmohan
Singh,
then finance minister of India. In 2001 UTI Bank agreed to merge with Global Trust Bank, but the Reserve
Bank of India (RBI) withheld approval and the merger did not take place. In 2004, the RBI put Global
Trust under a moratorium and supervised its merger with Oriental Bank of Commerce.
The following year, 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. The recommendation for name changes to axis
bank has arisen from the existence of several shareholder unrelated entities using the UTI brand, and the
consequent brand confusion that this creates.
TO create own brand and identity UTI bank was changed 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. On 1 January 2019, Amitabh Chaudhry
took over as MD and CEO. In the year 2021, the Bank had reduced its stake in Yes Bank from 2.39 percent
to 1.96 percent.
The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry
practices internationally to achieve excellence.
Axis Bank Ltd. provides corporate and retail banking products and services. The company’s products
include saving accounts; fixed deposits, recurring deposits; home loans, car loans, personal loan, and loans
against shares, property and security; credit cards, debit cards and prepaid cards; forex, investments in
mutual fund, demat account, online trading; insurance in health, home, travel, life and other services of
prepaid mobile charging, online shopping, locker and e-statement.
The main objective of these changes is to increase the efficiency of banking system as a 10 whole as well
as of individual institutions. So, it is necessary to measure the efficiency of Indian Banks so that corrective
steps can be taken to improve the health of banking system.
COMPANY 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, MSMEs,
Agriculture and retail businesses. The Bank operates in four segments, namely treasury, retail
banking, corporate/ wholesale banking and other banking business. The treasury operations
include investments in sovereign and corporate debt, equity and mutual funds, trading
operations, derivative trading and foreign exchange operations on the account, and for customers
and central funding. Retail banking includes lending to individuals/small businesses subject to
the orientation, product and granularity criterion. It also includes liability products, card services,
Internet banking, automated teller machines (ATM) services, depository, financial advisory
services and NRI services.
The corporate/wholesale banking segment includes corporate relationships not included under
retail banking, corporate advisory services, placements and syndication, management of publics
issue, project appraisals, capital market related services, and cash management
The Bank's registered office is located at Ahmedabad and their Central Office is located at
Mumbai. With 4528 domestic branches (including extension counters) and 12044 ATMs and
5433 cash recyclers across the country as on 31 March 2020, the network of Axis Bank spreads
across 2,033 cities and towns, enabling the bank to reach out to a large cross-section of
customers with an array of products and services. The bank also has nine overseas offices with
branches at Singapore, Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative
offices at Dubai, Abu Dhabi and Dhaka and an overseas subsidiary at London, UK. The Bank
has five wholly-owned subsidiaries namely Axis Securities and Sales Ltd, Axis Private Equity
Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis Mutual Fund
Trustee Ltd.
Axis Bank was incorporated in the year 1993 with the name UTI Bank Ltd. 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),9
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. In the year 2001, the bank along with Global Trust Bank
(GTB) had a merger proposal to create the largest private sector bank, but due to media's issues
both the banks withdraw the merger proposal.
In the year 2003, the Bank was given the authorized to handle Government transactions such as collection
of Government taxes, to handle the expenditure related payments of Central Government Ministries and
Departments and pension payments on behalf of Civil and Non-civil Ministries such as defense, posts,
telecom and railways. In December 20003, the Bank launched their merchant acquiring business. In the
year 2005, the Bank raised $239.3 million through Global Depositary Receipts. They won the award
'Outstanding Achievement Award' for the year 2005 from Indian Banks Association for IT
Infrastructure, delivery capabilities and innovative solutions.
In December 2005, the Bank set up Axis Securities and Sales Ltd (originally incorporated as
UBL Sales Ltd) to market credit cards and retail asset products. In October 2006, they set up
Axis Private Equity Ltd, primarily to carry on the activities of managing equity investments and
provide venture capital support to businesses. In the year of 2007, the bank again raised $218.67
million through Global Depository Receipts. They opened 153 new branches during the year,
which includes 43 extension counters that have been upgraded to branches and 8 Service
branches/ CPCs. They also opened new overseas offices at Singapore, Dubai and Hong Kong
and a representative office in Shanghai.
During the year 2007-08, the Bank opened 143 new branches, taking the number of branches to 651 which
included 33 extension counters that have been upgraded to branches. Also, they expanded overseas with
the opening of a branch at the Dubai International Finance Centre. The Bank changed their name from UTI
Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other unrelated entities
with similar name.
During the year 2008-09, the Bank opened 176 new branches that include 12 extension counters
that have been upgraded to branches taking the total number of branches and ECs to 835. During
the year, they opened 831 ATMs, thereby taking the ATM network of the Bank from 2,764 to
3,595. Also, they opened a Representative Office in Dubai.
In May 2008, the Bank established10 Axis Trustee Services Company Ltd as a wholly owned subsidiary
company, which is engaged in trusteeship activities. In December 2008, they launched their new
investment advisory service exclusively for High Net Worth clients. In January 2009, the Bank set up Axis
Asset Management Company Ltd to carry on the activities of managing a mutual fund business. Also,
they incorporated Axis Mutual Fund Trustee Ltd to act as the trustee for the mutual fund
business.
During the year 2009-10, the Bank opened 200 branches taking the total number of branches
Extension Counters (ECs) to 1,035. In March 209, 2010, they opened their 1000 branch at
Bandra West, Mumbai. In September 2009, Axis Bank launched the private banking business in
the domestic market, christened 'Privee' to cater to highly affluent individuals and families
offering them unique investment opportunities During the year, the Capital Markets SBU was
restructured with the debt capital market business (hitherto a part of the capital markets) carved
into a separate vertical.
As a result, the Bank's Capital Markets SBU comprises equity capital markets (ECM) business,
mergers and acquisitions and private equity syndication. In February 24, 2010, the Bank
launched the 'AXIS CALL & PAY on atom', a unique mobile payments solution using Axis
Bank debit cards. Axis Bank is the first bank in the country to provide a secure debit card-based
payment service over IVR. During the year 2010-11, 407 new branches were added to the Bank's
network taking the total number of branches and extension counters (ECs) to 1,390. Of these,
564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in metropolitan
and urban areas. The Bank is present in all states and Union Territories (except Lakshadweep)
covering 921 centers.
The ATM network of the Bank increased from 4,293 to 6,270. During the year, the Bank also
opened a Representative Office in Abu Dhabi. This was in addition to the existing branches at
Singapore, Hong Kong and DIFC (Dubai International Financial Centre) and representative
offices at Shanghai and Dubai. In March 7, 2011, the Bank incorporated a new subsidiary
namely Axis U.K. Ltd. as a private limited company registered in the United Kingdom (UK)
with the main purpose of filing an application with Financial Services Authority (FSA), UK for a
banking license in the UK and for the creation of necessary infrastructure for the subsidiary to
commence banking business in the UK. On 8 January 2014, Axis Bank announced the opening
of its Shanghai Branch, thus becoming the first Indian private sector bank to set up a branch in11
China. On 4 December 2014, Axis Bank announced that it had closed its Senior Unsecured
Redeemable Non-Convertible Debenture issue of amount Rs 5705 crore and priced at 8.85% p.a.
payable annually maturing on 5 December 2024.
On 9 December 2014, Axis Bank announced the launch of limited period offer of 20 year fixed rate home
loan for affordable housing at 10.40%. On 27 July 2015, Axis Bank announced that it had signed a $200
million 7 year bilateral loan deal with the Asian Development Bank (ADB) for extending affordable
agriculture credit to farmers in India.
On 22 November 2015, Axis Bank announced the opening of its Representative Office in Dhaka,
Bangladesh in a bid to strengthen its international presence. On 9 March 2016, Axis Bank
announced the launch of the world's first Forex prepaid card issued in conjunction with Diners
Club International, a business unit of Discover Financial Services. On 30 March 2017, Axis
Bank announced a strategic partnership with Wells Fargo & Company to offer seamless
remittance facility to their NRI customers from The United States of America (USA). On 17
June 2017, Axis Bank in association with Kochi Metro Rail Corporation (KMRL) launched
India's first single-wallet contactless, open loop metro card to allow cashless commuting for
commuters in Kochi.
On 5 July 2017, Axis Bank announced its foray into the luxury bikes loans
segment for 500cc & above bikes. On 11 July 2017, Axis Bank announced its collaboration with
Inter-American Investment Corporation (IIC) to facilitate trade with Latin America and the
Caribbean. Axis Bank on 27 July 2017 announced that it has entered into an agreement with
Jasper Infotech Private Limited to acquire 100% stake in its subsidiaries viz.
Free Charge
Payment Technologies Private Limited and Accelyst Solutions Private Limited, which together
constitute the digital payments business under the 'Free Charge' brand. The deal marked the first
such acquisition of a digital payments company by a bank in India. The bank had a network of 3703
branches and 13814 ATMs & cash deposit machines as at 31 March 2018 across the country. The bank has
raised Rs 8680 crore of capital from a consortium of investors (Bain Capital, Life Insurance Corporation of
India and other marquee investors).
During the fiscal 2019, the bank has won the Excellence Certificate in Corporate Social
Responsibility (CSR) category at the prestigious CII ITC Sustainability Awards 2018. The bank
has partnered with SignCatch to launch the first-of-its-kind Smart Bill Pay initiative for New12
Delhi Municipal Corporation. As on 31 March 2019, the bank had a network of 4050 branches,
11801 ATMs and 4917 cash deposit machines across the country. During the FY 2019-20, the
bank has opened 478 new branches, taking the total network of branches as at 31 March 2020 to
4528 and 17477 ATMs & cash deposit machines across the country. During the year, the bank
has won the award for Excellence in Operations at the IDC Insights Awards 2019. Axis Bank is
one of the three entities allowed by RBI to set up the Trade Receivables Discounting System
(TReDS which is an electronic platform for facilitating cash flows for MSMEs
Organization structure
Micro-finance Department
Micro finance is a genre of financial services that especially targeting individual and small businesses who
lack access to conventional banking and related services. Micro-finance includes micro-credit, the
provision of a small loan to poor clients. Micro-finance services are designed to reach excluded customers,
especially those who come under the poor population, and it helps them to become independent.
Micro-finance is a way in which loans, credit, insurance, access to the savings account, and money
transfers will be provided to all the small business owners and every entrepreneur who comes from under
developing part of India. The beneficiaries of micro-finance are those people who are not able to access
these financial resources. Usually, interest rates are higher in micro-loans in comparison to other loan
departments or we can say higher rates in comparison to personal loans.
Micro-finance is being considered as one of the successful instruments used to decrease the destitution and
sexual orientation imbalance through ladies strengthening, to reinforce the weaker groups in creating
nations. India is a country loaded with both, enormous riches and neediness. Neediness in India is far-
reaching and is predominant in about each city. The dissimilarity between the rich and poor is colossal,
with the rich living luxuriously and the poor living on the streets and not having the capacity to nourish
them. Moreover, India is loaded with regional, cultural and financial contrasts (Datta and Kornberg 2002,
87). India's poor make up 33% of the world's poor (Novogratz 2009, 254). The numbers demonstrate that
in 1997 "35% of the Indian populace (with 37% in rustic regions and 31% in urban territories) was living
underneath the poverty line" (Lazar 2008, 11). While the numbers have diminished, a fourth of the Indian
populace is still in destitution.
A valid example "India makes up 15% of the total populace and 27% of its one billion individuals were
underneath the neediness line in 2001" (Premchander 2009). There is a distinction in the number of needy
individuals living in the urban communities contrasted with those living in country regions; a few
investigations demonstrate that there are around "240 million rustic poor and 72 million urban poor in
India" (Lazar 2008, 11)
Evolution of microfinance in India:
 1974: Establishment of Self-Employed Women’s Association (SEWA) in Gujarat.
 September 1975 – Rural bank Ordinance was passed.
 October 02, 197 – Prathama bank (first RRB) came into existence.
 1976 – Ordinance was replaced by Regional Rural Bank Act. 13
 July 12, 1982 – NABARD was established on the recommendations of Shivaraman Committee, by an
act of parliament to implement the National Bank for Agriculture and Rural Development Act 1981.
 April 02, 1990 – SIDBI was established through Small Industries Development Bank of India Act 1989.
 1992 – NABARD launched SHGs Bank Linkage Program. 1999 – SIDBI created microcredit to create a
national network of strong, viable and sustainable Microfinance Institutions from the informal and formal
financial sector to provide microfinance services to the poor, especially women.
 2006 – NABARD launched the Micro Enterprise Development Program for skill development.
AXIS BANK LOGO

BUSINESS PROCESS OF THE INDUSTRY
Today’s retail and wholesale banks face unprecedented operational pressures that test
the efficiency, effectiveness, and agility of their business processes. The typical banking
business process often fails the test, struggling to adapt to shifting marketplace demands
and regulatory requirements. Lending institutions of all stripes are looking to build a better
banking business process, intelligent enough to successfully balance business objectives
with customers’ desires, and agile enough to keep pace with a dynamic operational
environment.
Business Process Automation (BPA) or digital transformation is referred to the procedure

of handling and managing business process by using automated processes that are
innovative and technologically driven. Process automation replaces and reduces the effort,
time and costs that are required to perform the task manually. It also provides enhanced
accuracy and remove potential human errors. Automate business processes are especially
designed to increase the overall productivity of business process with the help of modern
technologies and computer software.
BPA has become the emerging trend in all the industries due to its remarkable abilities
to simplify redundant and complex tasks, improve efficiency, enhance service quality,
achieve target quickly, and reduce operational costs and accomplishing digital
transformation. BPA also helps improving business workflows and achieving higher levels
of efficiency. All the major industries including banking and finance sector are widely
implementing BPA as an integral part of their business strategy in order to adopt the
changing needs of the industry, while redefining job responsibilities and roles and reducing
human errors.
Machine learning, artificial intelligence and robotic processes automation (RPA) are some of
the significant automation technologies that are leading the smooth digital transformation
within the finance and banking sector. Biometrics and Blockchain are some other
technologies that are turned out to be transformative within the banking industry. Some of
the major breakthroughs that are introduced to the industry are because of these automated
processes. Below we have discussed few that we found most important.
1. KYC (Know-Your-Customer)
In the banking and financial sectors, the information related to the customers is of
utmost importance. Financial and banking services require customer data not only for
account opening but also for other banking processes. This information is required to be
passed through the internal banking process, to ensure its regulatory compliance with other
regulatory agencies. And, to ensure that, multiple checks such as ID Verification,
Background Checks, Reference Checks etc. are imposed. Applying the entire process step-
by-step every time for every single customer, whenever they open an account or request a
loan, become a very heft task for banks. This is where the efficient automated processing
comes into play within the banking sector. Modern banks are now using automated
systems to create a centralized information network which allow quick and easy access and
push and pull of the information. These systems are using machine learning to extract
information from disparate data sources.
2. Risk Analysis & Compliance

Audits are inevitable in banking operations, and this is why financial institutions and banks
are significantly investing in process automation technologies, in order to automate and
improve their operation that are potential to risk and compliance issues. These automation
technologies not only improve the overall performance and efficiency, but also reflect
amazing adaptability in relation to other IT platforms. This helps banks to better check the
frauds, report risk, and check quality etc.
3. Core Banking & Finance Operations

There are numerous automation technologies available now that are being efficiently used
in blend with BPA to modify and improve the back-office banking and financial operations
such as ID verifications, data updates, accounts reconciliation, documentation and much
more.
4. Mortgage Loan & Credit Processing

Mortgage loan systems have been amplified by the technological transformations, but
especially by the process automation. The loan approval process used to take more than 60
days before the process was automated. But now, as soon as the ID checks and employment
status are checked and verified, you get your loan approval. BPA has made the process a lot
easier and simpler. The entire loan approval procedure has been accelerated by BPA with
reduced processing time and quicker response.
5. Customer Request & Support Services
Customer service is amongst the top most priorities for banks. With scorching
competition within the banking industry, banks are continuously striving hard to
provide exceptional customer service to their customers. BPA has enabled banks to provide
remarkable service and customer experience. For example, with automated processes,
banks are now capable of responding thousands of queries everyday while offering the
best possible solutions at the earliest.
6. Fraud Detection
Terrorist activities and fraud concerns have been significantly increased along with
the digitization. However, RPA (Robotic Process Automation) is amongst one of the
process automation technology which offer great fraud prevention by using predictive
analysis and steps any data breach.
LEVELS AND TYPE OF COMPETITION-FIRMS OPERATING IN

THE INDUSTRY
Competition in the banking sector in India is best seen as the product of two grand bargains.
The first was between successive governments and the banks, whereby banks got privileged
access to low cost demand and time deposits, to the central banks liquidity facilities, as
well as some protection from competition, in return for accepting obligations such as
financing the government (through the Statutory Liquidity Ratio or SLR), helping in
monetary transmission (through maintaining the Cash Reserve Ratio or CRR), opening
branches in unbanked areas and making loans to the priority sector. The second grand
bargain was between the public sector banks (PSBs) and the government, whereby these
banks undertook special services and risks for the government, and were compensated in
part, by the government standing behind the public sector banks. As India has developed,
both these bargains are coming under pressure. And it is development and competition that
is breaking them down.
Today, the investment needs of the economy, especially long term investment in areas
like infrastructure, have increased. The government can no longer undertake these
investments. Private entrepreneurs have been asked to take them up. To create space for
financing, the government has to pre-empt less of the banking systems assets. But the
nature of financing required is also changing. Private investment is risky, so there has to
be more risk absorbing financing such as from corporate bond markets and from equity
markets. As more sources of financing emerge, not only will banks no longer be able to
have a monopoly over financing corporations and households, they will also have to
compete for the best clients, who can access domestic and international markets.
Similarly, deposit financing will no longer be as cheap, as banks will have to compete
with financial markets and real assets for the households savings. As households
become more sophisticated, they will be unwilling to leave a lot of money in low interest
bearing accounts. Of course, households will still be willing to accept low interest rates in
return for liquidity. So privileged access to the central banks liquidity windows will allow
banks to offer households these liquidity services safely and get a rent, but this advantage
will also become eroded as new payments institutions and technologies emerge.
The first grand bargain -- cheap deposits in return for financing the government is
therefore being threatened from both sides. Deposits will not continue to be cheap, while the
government cannot continue to pre-empt financing at the scale it has in the past if we are to
have a modern entrepreneurial economy. This is yet another reason why fiscal discipline
will be central to sustainable growth going forward.
Public sector banks are, if anything, in a worse position than private sector banks, which is
why the second bargain is also under threat. As low risk enterprises migrate to financing
from the markets, banks are left both with very large risky infrastructure projects and with
lending to small and medium sized firms. The alternative to taking these risks is to
plunge into very competitive retail lending, so public sector banks may have little
option especially if the government pushes them to lend to infrastructure.
Many of the projects being financed today, however, require sophisticated project
evaluation skills and careful design of the capital structure. Successful lending requires the
lender to act to secure his position at the first sign of trouble, otherwise the slow banker
ends up providing the loss cover for more agile bankers or for unscrupulous promoters.
To survive in the changing business of lending, public sector banks need to have strong
capabilities, undertake careful project monitoring, and move quickly to rectify problems
when necessary.
In the past, PSBs had the best talent. But today, past hiring freezes have decimated their
middle-management ranks, and private banks have also poached talented personnel from
PSBs. PSBs need to be able to recruit laterally, while retaining the talent they have, but to do
so they need to be able to promise employees responsibility as well as the freedom of action.
Unfortunately, employee actions in public sector banks are constrained by government
rules and second-guessed by vigilance authorities, even while pay is limited. It will be
hard for public sector banks to compete for talent.
If, in addition, these banks are asked to make sub- optimal decisions in what is deemed
the public interest, their performance will suffer more than in the past. This will make it
hard for them to raise funds, especially capital. With the government strapped for funds, its
ability to support the capital needs of public sector banks as part of the second grand
bargain is also coming into question. We cannot go backwards to revive the two bargains
that means reversing development and bottling the genie of competition, neither of which
would be desirable for the economy even if feasible.
Values
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
Objectives of Axis Bank
Axis Bank’s main objectives are to provide a wide range of financial products and
services to its customers, while also focusing on maintaining financial stability and
growth. Some of the key objectives of Axis Bank are:
1. Customer satisfaction: Axis Bank aims to provide its customers with a seamless
and hassle-free banking experience. It strives to understand the needs and
requirements of its customers and offer customized solutions that meet their
specific financial goals.
2. Innovation: The bank is committed to leveraging technology and innovation to

provide its customers with cutting-edge financial products and services. It invests
heavily in research and development to stay ahead of the curve and anticipate
changing customer needs.
3. Growth: Axis Bank aims to achieve sustainable growth in its operations and
profitability. It seeks to expand its reach and customer base by exploring new
markets and opportunities, while also optimizing its existing operations to drive
efficiency and productivity.
4. Risk management: The bank has a strong risk management framework in place to
manage its credit, market, and operational risks. It follows prudent lending
practices and monitors its portfolio closely to minimize risks and ensure the safety
of customer deposits.
5. Corporate social responsibility: Axis Bank is committed to giving back to society

and contributing to sustainable development. It has implemented several
initiatives to promote financial inclusion, education, and environmental
sustainability.
Overall, Axis Bank’s objectives are aligned with its vision of becoming the preferred
financial services provider for its customers, while also delivering value to its
stakeholders and contributing to the growth and development of the economy.
Features and products of Axis Bank
Axis Bank is one of the leading private sector banks in India that offers a wide range
of financial products and services to its customers. Some of the main features and
products offered by Axis Bank are:
1. Savings accounts: Axis Bank offers a range of savings accounts to meet the needs
of different customers. These accounts come with features such as no minimum
balance requirement, free ATM transactions, and online banking facilities.
2. Current accounts: Axis Bank provides current accounts to businesses and

corporate customers. These accounts come with features such as overdraft
facilities, cash management services, and online banking facilities.
3. Fixed deposits: Axis Bank offers fixed deposits with attractive interest rates and
flexible tenure options. Customers can choose from a range of deposit schemes
based on their financial goals and risk appetite.
4. Loans: Axis Bank provides a wide range of loan products, including personal
loans, home loans, car loans, education loans, and business loans. These loans
come with competitive interest rates and flexible repayment options.
5. Credit cards: Axis Bank offers a range of credit cards with attractive rewards and
cashback offers. Customers can choose from a range of cards based on their
spending habits and financial goals.
6. Mutual funds: Axis Bank offers mutual fund investment services to its customers
through its tie-up with Axis Mutual Fund. Customers can choose from a range of
mutual fund schemes based on their investment goals and risk appetite.
7. Insurance: Axis Bank provides a range of insurance products, including life

insurance, health insurance, and general insurance. These products are offered
through tie-ups with leading insurance companies in India
VISION & MISSION
CHAPTER - 3
FINANCIAL & MARKET ANALYSIS

RESEARCH APPROACH AND DESIGN
The nature of study of this project is descriptive and analytical. In analytical study, one has
to use facts or information already available and analyze these to make critical evaluation of
the material.
Secondary data are those data which have already been collected and stored. Secondary data
may be collected from:
• Annual reports of the bank
• Bulletins
• Periodicals
• News letters
• Internal reports of the bank
The study has been conducted with reference to the data related to Axis Bank. The study
examines the financial performance of some variables and compares the performance of
the bank over a period of five years.
4.2 SAMPLING DESIGN
For performance analysis of Axis Bank over the years, the study has been taken during the
period from 2016 to 2020(five years).To know the financial performance of the banks by
using ratio analysis and camel rating. Financial performance of the bank can be
analyzed through their financial reports
4.3 DATA ANALYSIS TOOLS

In this study, data was analyzed by using tabular representation of data to ease comparing
and to enable readers visually appreciate the findings from the study. Different scales will be
used for data analysis. Various financial ratios, bar charts are used to know financial
performance of the bank.
For the analysis of the financial performance the following tools are used:
a) Ratio Analysis
b) CAMEL Rating
c) Comparative balance sheet
a)RATIO ANALYSIS
Ratio analysis is one of the most powerful tools of financial analysis. It is a yardstick
which measures relationship between variables. In layman’s terms a ratio represents for
every amount one thing how much there is of another thing. Ratio analysis is a widely- used
tool of financial analysis. It can be used to compare the risk and return relationship of firms
of different sizes. It is defined as the systematic use of ratio interprets the financial statements
so that the strength and weakness
b) CAMEL Rating
CAMEL is a proportion based model to assess the execution of banks. It represents Capital
Adequacy, Asset Quality, Management Efficiency, Earning Quality and Liquidity. This model
identifies the strength and weakness of banks and helps in improving future development of
banking. The period for evaluating performance through CAMEL in this study is 5 years, i.e. from
financial year 2016 to 2020.
c) Comparative balance sheet

Comparative balance sheet is a balance sheet which provides financial figures of Assets, Liability
and equity for the “two or more period of the same company” or “two or more than two company of
same industry” or “two or more subsidiaries of same company” at the same page format so that this
can be easily understandable and easy to analysis. The comparative balance sheet has two-column
of amount against each balance sheet items; one column shows the current year financial position
whereas another column will show the previous year’s financial position so that investors or other
stakeholders can easily understand and analyze the company’s financial performance against last year.
TABLE 5.1 RETURN ON EQUITY
YEAR %
2020 15.46
2021 6.59
2022 0.43
2023 7.01
2024 1.91
INTERPRETATION:
ROE is the most important indicator of a bank’s profitability and growth potential. It is the
rate of return to shareholders or the percentage return on each of equity invested in the bank.
Usually, there is higher ROE for high growth companies. Axis Bank has higher ROE of
15.46% in the year 2019.
DIAGRAM 5.1 RETURN ON EQUITY
18
16
14
12
10
0
2020 2021 2022 2023 2024
Series 1
TABLE 5.2 RETURN ON ASSETS
YEAR %
2020 1.56
2021 0.61
2022 0.03
2023 0.58
2024 0.17
INTERPRETATION:
This ratio indicates how much net income is generated of assets. ROA can be increased by
Banks either by increasing profit margins or asset turnover but they can’t do it
simultaneously because of competition and trade-off between turnover and margin. So bank
maintain higher ROA will make more the profit. Axis Bank has the highest ROA of 1.56% in
year 2019.
DIAGRAM 5.2 RETURN ON ASSETS
1.8
1.6
1.4
1.2
0.8
0.6
0.4
0.2
0
2020 2021 2022 2023 2024
Series 1
TABLE 5.3 NET INTEREST MARGIN
YEAR %
2020 3.20
2021 3.00
2022 2.69
2023 2.71
2024 2.75
INTERPRETATION:
A positive net margin indicates a bank invests efficiently, while a negative return
implies investment efficiency. Axis Bank has a higher Net Margin of 3.20 in the year
2019.
DIAGRAM 5.3 NET INTEREST MARGIN
3.3
3.2
3.1
2.9
2.8
2.7
2.6
2.5
2.4
2020 2021 2022 2023 2024
Series 1
TABLE 5.4 TOTAL CAPITAL RATIO
YEAR %
2020 0.96
2021 0.95
2022 0.96
2023 0.96
2024 0.95
INTERPRETATION:
It indicates the relationship between shareholders fund, long term debt, and reserve to total assets. It
shows the long term solvency. Axis Bank has the highest Capital ratio of 0.96% in the years 2019, 2021
& 2023.
DIAGRAM 5.4 TOTAL CAPITAL RATIO
0.962
0.96
0.958
0.956
0.954
0.952
0.95
0.948
0.946
0.944
2020 2021 2022 2023 2024
Series 1
TABLE 5.5 TOTAL ADVANCE TO TOTAL DEPOSITS
YEAR %
2020 94.63
2021 90.03
2022 96.91
2023 90.21
2024 89.27
INTERPRETATION:
Total advance to deposit ratio is used to assess a bank’s liquidity by comparing a bank’s
total advance to its total deposits for the same periods. Typically the ideal loan to deposit ratio
is 80 % to 90%. The Bank has the most ideal ratio of 89.27% in year 2023.
DIAGRAM 5.5 TOTAL ADVANCE TO TOTAL DEPOSIT
98
96
94
92
90
88
86
84
2020 2021 2022 2023 2024
Series 1
TABLE 5.6 CURRENT RATIO
YEAR %
2020 2.20
2021 1.91
2022 1.65
2023 2.03
2024 2.30
INTERPRETATION
It shows the liquidity position of the bank. A range between 1.5-3 is considered healthy. The bank has a
more ideal ratio of 2.30% in the year 2023.
DIAGRAM 5.6 CURRENT RATIO
2.5
1.5
0.5
0
2020 2021 2022 2023 2024
Series 1
TABLE 5.7 CREDIT DEPOSIT RATIO
YEAR %
2020 91.65
2021 90.03
2022 96.92
2023 90.21
2024 89.27
INTERPRETATION:
Total advance to deposit ratio is used to assess a bank’s liquidity by comparing a bank’s
total advance to its total deposits for the same periods. Typically the ideal loan to deposit ratio
is 80 % to 90%. The Bank has ideal ratio of 89.27% in year 2023.
DIAGRAM 5.7 CREDIT DEPOSIT RATIO
98
96
94
92
90
88
86
84
2020 2021 2022 2023 2024
Series 1
COMPARATIVE BALANCE SHEET OF AXIS BANK
TABLE 5.8 COMPARATIVE BALANCE SHEET FOR YEAR ENDING MARCH, 2021 AND
MARCH, 2022.
Year ending 31st March Increase/Decrease

Particulars
2021 2022 Amount Percentage %
LIABILITIES
SHARE CAPITAL 612.75 613.95 1.2 0.19
RESERVES & SURPLUSE 100,990.26 114,411.51 13,421.25 13.28
NET WORTH 101,603.01 115,174.06 13,571.05 13.35
DEPOSITS 707,306.08 821,720.91 114,414.83 16.17
BORROWINGS 142,873.16 185,133.86 42,260.7 29.57
Other LIABILITIES & 44,336.17 53,149.28 8,813.11 19.87
PROVISIONS
TOTAL LIABILITIES 996,118.42 1,175,178.11 179,059.69 17.97
ASSETS
FIXED ASSET 4,245.03 4,572.35 327.32 7.71
OTHER ASSETS 80,303.76 76,325.48 -3,978.28 -4.95
ADVANCES 623,720.19 707,695.95 83,975.76 13.46
INVESTMENTS 226,119.62 275,597.20 49,477.58 21.88
CASH 51,808.56 94,034.51 42,225.95 81.50
BANK 9,921.26 16,952.62 7,031.36 7.87
TOTAL ASSET 996,118.42 1,175,178.11 179,059.69 17.97
,
MARCH, 2023.
Year ending 31st March Increase/Decrease

Particulars
LIABILITIES
SHARE CAPITAL 613.95 615.37 1.42 0.23
RESERVES & 114,411.51 124,377.87 9,966.36 8.71
SURPLUSE
NET WORTH 115,174.06 125,416.66 10,242.6 8.89
DEPOSITS 821,720.91 946,945.21 125,224.3 15.23
BORROWINGS 185,133.86 186,300.04 1,166.18 0.62
PROVISIONS
TOTAL LIABILITIES 1,175,178.11 1,317,325.53 142,147.42 12.09
ASSETS
FIXED ASSET 4,572.35 4,733.85 161.5 3.53
OTHER ASSETS 76,325.48 72,063.20 -4,262.28 -5.58
ADVANCES 707,695.95 845,302.84 137,606.89 19.44
INVESTMENTS 275,597.20 288,814.83 13,217.63 4.7
CASH 94,034.51 66,117.76 -27,916.75 -29.68
BANK 16,952.62 40,293.05 23,340.43 137.68
TOTAL ASSET 1,175,178.11 1,317,325.53 142,147.42 12.09
MARCH, 2024.
Particulars Year ending 31st March Increase/Decrease

LIABILITIES
SHARE CAPITAL 615.37 617.31 1.94 0.31
RESERVES & 124,377.87 149,617.68 25,239 20.29
SURPLUSE
NET WORTH 125,416.66 151,061.58 25,644.92 20.44
DEPOSITS 946,945.21 1,068,641.3 121,696.18 12.85
9
BORROWINGS 186,300.04 196,811.75 10,511.71 5.64
PROVISIONS
TOTAL LIABILITIES 1,317,325.53 1,477,208.6 159,883.07 12.13
0
ASSETS
FIXED ASSET 4,733.85 5,684.58 950.69 20.08
OTHER ASSETS 72,063.20 60,474.00 -11,589.2 -16.08
ADVANCES 845,302.84 965,068.38 119,765.54 14.16
INVESTMENTS 288,814.83 331,527.25 42,712.42 14.78
CASH 66,117.76 86,077.48 19,959.72 30.18
BANK 40,293.05 28,376.90 -11,916.15 -29.57
TOTAL ASSET 1,317,325.53 1,477,208.60 159,883.07 12.13
TABLE 5.11 PROFIT & LOSS ACCOUNT FOR THE YEAR 2022
PARTICULAR AMOUNT
INCOME :
INTERESTS 49,616.58
INCOME FROM INVESTMENTS 14,618.91
INTEREST on Balance with RBI 1,528.15
OTHERS 1,613.18
TOTAL INTEREST EARNED 67,376.83
OTHER INCOME 15,220.55
TOTAL INCOME 82,597.37
EXPENDITURE :
INTEREST EXPENDED 34,244.61
PAYMENTS & PROVISION for EMPLOYEE 7,612.55
DEPRECIATION 1,008.37
OPERATING EXPENSES 14,989.83
TOTAL OPERATING EXPENSES 23,610.75
PROVISION FOR INCOME TAX 4,199.15
PROVISION FOR DEFERRED TAX 157.93
OTHER PROVISION & CONTINGENCIES 7359.45
TOTAL PROVISION & CONTINGENCIES 11,716.53
TOTAL EXPENDITURE 69,571.90
NET PROFIT 13,025.48
PARTICULAR AMOUNT
INCOME :
INTERESTS 64,553.81
INTEREST on Balance with RBI 899.01
OTHERS 1,532.22
EXPENDITURE :
PROVISION FOR DEFERRED TAX 1035.29
OTHER PROVISION & CONTINGENCIES 2884.78
NET PROFIT 9,579.68
PARTICULAR AMOUNT
INCOME :
INTERESTS 87,106.60
INTEREST on Balance with RBI 908.27
OTHERS 1,343.14
EXPENDITURE :
PROVISION FOR DEFERRED TAX 1,014.26
OTHER PROVISION & CONTINGENCIES 4,063.09
NET PROFIT 24,861.43
CASH FLOW STATEMENT OF AXIS BANK FOR THE YEAR 2020
TABLE 5.14
PARTICULAR AMOUNT
NET PROFIT BEFORE TAX 4,904.23
NET CASH INFLOW FROM OPERATING ACTIVITY 29,613.28
NET CASH USED IN INVESTING ACTIVITY -9,767.04
NET CASH USED FROM FINANCING ACTIVITY 10,117.97
FOREIGN EXCHANGE GAIN \ LOSS 99.44
NET CASH \ CASH EQUIVALENTS 30,063.65
CASH \ CASH EQUIVALENTS OPENING BALANCE 67,204,64
CASH \ CASH EQUIVALENTS CLOSING BALANCE 97,268.28
TABLE 5.15
PARTICULAR AMOUNT
NET CASH USED IN INVESTING ACTIVITY 54,106.80
NET CASH \ CASH EQUIVALENTS -35,538.46
CASH \ CASH EQUIVALENTS OPENING BALANCE 97,268.28
CASH \ CASH EQUIVALENTS CLOSING BALANCE 61729.82
TABLE 5.16
PARTICULAR AMOUNT

TABLE 5.17
PARTICULAR AMOUNT
NET CASH \ CASH EQUIVALENTS -4,576.32
TABLE 5.18
PARTICULAR AMOUNT
NET CASH USED IN INVESTING ACTIVITY -9,257.97

MARKET DEMAND AND SUPPLY - CONTRIBUTION TO GDP-
REVENUE GENERATION.
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalized and well-
regulated. The financial and economic conditions in the country are far superior to any other country in
the world. Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and
have withstood the global downturn well. Indian banking industry has recently witnessed the roll out of
innovative banking models like payments and small finance banks. RBI’s new measures may go a long
way in helping the restructuring of the domestic.
banking industry. The digital payments system in India has evolved the most among 25
countries with India’s Immediate Payment Service (IMPS) being the only system at level five
in the Faster Payments Innovation Index (FPII).
MARKET SIZE
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44
foreign banks, 43 regional rural banks, 1,484 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions. As of November 2020, the
total number of ATMs in India increased to 209,282.
According to RBI, India’s foreign exchange reserves reached US$ 590.18 billion, as of
February 5, 2021. According to RBI, bank credit and deposits stood at Rs. 106.40 trillion
(US$ 1.45 trillion) and Rs. 146.24 trillion (US$ 2.00 trillion), respectively, as of January 15,
2021. Credit to non-food industries stood at Rs. 105.53 trillion (US$ 1.44 trillion), as of
January 15, 2021. Asset of public sector banks stood at Rs. 107.83 lakh crore (US$ 1.52
trillion) in FY20. Total assets across the banking sector (including public, private sector and
foreign banks) increased to US$
2.52 trillion in FY20.
Indian banks are increasingly focusing on adopting integrated approach to risk management.
The NPAs (Non-Performing Assets) of commercial banks has recorded a recovery of Rs.
400,000 crore (US$ 57.23 billion) in FY19, which is highest in the last four years.
RBI has decided to set up Public Credit Registry (PCR), an extensive database of
credit information, accessible to all stakeholders. The Insolvency and Bankruptcy Code
(Amendment) Ordinance, 2017 Bill has been passed and is expected to strengthen the
banking sector. Total equity funding of microfinance sector grew 42% y-o-y to Rs. 14,206
crore (US$ 2.03 billion) in 2018-19.
As of January 27, 2021, the number of bank accounts opened under the Government’s
flagship financial inclusion drive Pradhan Mantri Jan Dhan Yojana (PMJDY) reached 41.75
crore and deposits in Jan Dhan bank accounts stood at more than Rs. 1.37 lakh crore (US$
18.89 billion).
Rising income is expected to enhance the need for banking services in rural areas, and
therefore, drive the growth of the sector.
The digital payments revolution will trigger massive changes in the way credit is disbursed
in India. Debit cards have radically replaced credit cards as the preferred payment mode in
India after demonetization. In January 2021, Unified Payments Interface (UPI) recorded
2.30 billion transactions worth Rs. 4.31 lakh crore (US$ 59.16 billion).
Government Initiatives
As per Union Budget 2019-20, the government has proposed fully automated GST
refund module and an electronic invoice system that will eliminate the need for a separate
e- way bill. Under the Budget 2019-20, government has proposed Rs 70,000 crore (US$
10.2 billion) to the public sector bank. Government has smoothly carried out consolidation,
reducing the number of Public Sector Banks by eight. As of September 2018, the
Government of India has made the Pradhan Mantri Jan Dhan Yojana (PMJDY) scheme an
open-ended scheme and has also added more incentives. The Government of India is
planning to inject Rs 42,000 crore (US$ 5.99 billion) in the public sector banks by
March 2019 and will infuse the next tranche of recapitalization by mid-December 2018.
Bank Marketing In the Indian Perspective:
In banking sector marketing plays a very important role. Competitive pressure is pushing
the banks to adopt new marketing initiatives. Marketing is going to play very important role
in this changing scenario. Employees have to realize the importance of marketing. The old
methods of banking where walk-in customers were the source of business is not
applicable in present scenario. The customer’s expectations are changing. Now customers
want the banks to visit them instead of them visiting the bank. Competition has set the
reversal of roles. Customers are also expecting better services. Bank has to identify the
financial needs of the customers and offer services, which can satisfy those needs. Marketing
is about understanding, creating and retaining customers. All strategies are formulated to
ensure that customers ultimately deal with us. Marketing is an important tool, which helps
us in achieving organizational objective of the bank.
Marketing mix in banking sector Service :

Recently, banks are in a period that they earn money in servicing beyond selling money.
The prestige is get as they offer their services to the masses. Like other services, banking
services are also intangible. Banking services are about the money in different types and
attributes like lending, depositing and transferring procedures. These intangible services
are shaped in contracts. The structure of banking services affects the success of
institution in long term. Besides the basic attributes like speed, security and ease in
banking services, the rights like consultancy for services to be compounded are also
preferred.
Price
The price which is an important component of marketing mix is named differently in the base
of transaction exchange that it takes place. Banks have to estimate the prices of their
services offered. By performing this, they keep their relations with extant customers and
take new ones. The prices in banking have names like interest, commission and expenses.
Price is the sole element of marketing variables that create earnings, while others cause
expenditure. While marketing mix elements other than price affect sales volume, price
affect both profit and sales volume directly. Banks should be very careful in determining
their prices and price policies. Because mistakes in pricing cause customers’ shift toward
the rivals offering likewise services. Traditionally, banks use three methods called “cost-
plus”, “transaction volume base” and “challenging leader” in pricing of their services.
Promotion
One of the most important element of marketing mix of services is promotion which is consist
of personal selling, advertising, public relations, and selling promotional tools.
Distribution
The complexities of banking services are resulted from different kinds of them. The
most important feature of banking is the persuasion of customers benefiting from
services. Most banks’ services are complex in attribute and when this feature joins
the intangibility characteristics, offerings take also mental intangibility in addition to
physical intangibility. On
the other hand, value of service and benefits taken from it mostly depend on knowledge,
capability and participation of customers besides features of offerings. This is resulted from
the fact that production and consumption have non separable characteristics in those
services. Most authors argue that those features of banking services makes personal
interaction between customer and bank obligatory and the direct distribution is the sole
alternative. Due to this reason, like preceding applications in recent years, branch offices use
traditional method in distribution of banking services.
Personal Selling
Due to the characteristics of banking services, personal selling is the way that most banks
prefer in expanding selling and use of them. Personal selling occurs in two ways. First occurs
in a way that customer and banker perform interaction face to face at branch office. In this
case, whole personnel, bank employees, chief and office manager, takes part in selling.
Second occurs in a way that customer representatives go to customers’ place. Customer
representatives are specialist in banks’ services to be offered and they shape the relationship
between bank and customer.
Selling Promotional Tools
Another element of the promotion mixes of banks is improvement of selling. Mostly used selling
improvement tools are layout at selling point, rewarding personnel, seminaries, special gifts, premiums,
contests.
Advertising
Banks have too many goals which they want to achieve. Those goals are for accomplishing
the objectives as follows in a way that banks develop advertising campaigns and use media.
1. Conceive customers to examine all kinds of services that banks offer
2. Increase use of services
3. Create well fit image about banks and services
4. Change customers’ attitudes
5. Introduce services of banks
6. Support personal selling
7. Emphasize well service
Advertising media and channels that banks prefer are newspaper, magazine, radio, direct
posting and outdoor ads and TV commercials. In the selection of media, target market
should be determined and the media that reach this target easily and cheaply must be
preferred. Banks should care about following criteria for selection of media.
1. Which media the target market prefer
2. Characteristics of service
3. Content of message
4. Cost
5. Situation of rivals Ads should be mostly educative, image making and provide the
information as follows:
1. Activities of banks, results, programs, new services
2. Situation of market, government decisions, future developments
3. The opportunities offered for industry branches whose development meets national benefits.
Public relations
Public relations in banking should provide;
1. Establishing most effective communication system
2. Creating sympathy about relationship between bank and customer
3. Giving broadest information about activities of bank.

It is observed that the banks in India perform their own publications, magazine and
sponsoring activities.
PRICING STRATEGIES
Traditionally, the Indian banking industry has been tightly regulated, with little scope
for innovation in products and pricing. Most banks follow a cost-plus and market-based
pricing strategy, which was justifiable until recently as the banking industry was in a
nascent stage and the market, largely underpenetrated. This strategy has helped banks
grow considerably. Typically, the approach for banks’ pricing factors in the cost of funds,
risk-based spread and an assessment of the competitors’ product portfolios. However, there
are other components that are either underestimated or not fully accounted for such as the
correct cost of servicing and the customers’ value perception regarding such products.
VALUE BASED PRICING

A value-based pricing approach focuses on understanding the customers’ willingness to pay
a premium for products or services on the basis of the value offered. Banks can optimize
their pricing and secure a larger share of customers’ wallets with an increased focus on
product innovation and customer analytics applications. Value-based pricing advocates
segmenting customers first. It calls for a gradual shift from a product-centric mind-set to a
customer-centric approach. Banks should consider the following points while deciding on
pricing strategies for products:
The following aspects will enable banks to determine the appropriate value across all dimensions
- product, pricing and channels. These would also help them understand the customers’
reaction to a pricing strategy:
1. Costly customer acquisition does not always lead to a sustained increase in market share:
To increase their market share, many banks and financial institutions tend to price their
products aggressively. While in the short term, this could help attract customers at high
costs, it does not always lead to increased profitability or growth for banks. Therefore, they
need to define a matrix analysing their acquisition cost versus the potential realisable value
across the product lifecycle for customers.
2. Customers have easy access to market information:
With the advent of third-party platforms, customers can easily access the products’
features, and compare the value they derive from each offering. Our experience also reveals
that banking products with complicated features are often avoided even if available at
discounted prices.
3. Poor marketing could lead to dissatisfaction with prices:
Customers do not realize the value proposition of the product, if it is not marketed
appropriately. This may result in price dissatisfaction even if the products offered by banks
are good and customers have the capacity to pay the premium. Therefore, the marketing
strategy is as essential as appropriate pricing.
4. Low-involvement products are difficult to price higher:
Customers are more emotionally attached to certain products than others. For instance, a savings
account may not lead to high emotional satisfaction, whereas a vehicle loan which results in acquisition
of a tangible asset can be extremely satisfying. Another point worth noting is that value based pricing
can only take place with product differentiation. Therefore, product-related criterion such as
customers’ involvement and differentiation of features are key parameters for any pricing strategy. It
is important to note that value-based pricing does not always call for an increase in the products’
pricing. Optimized pricing may also be needed to win a large share of customers’ wallets, thereby
improving profitability.

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CHAPTER - 1

Introduction to Banking Sector

TO create own brand and identity UTI bank was changed to

AXIS BANK LOGO

Business Process Automation (BPA) or digital transformation is referred to the procedure

2. Risk Analysis & Compliance

3. Core Banking & Finance Operations

4. Mortgage Loan & Credit Processing

LEVELS AND TYPE OF COMPETITION-FIRMS OPERATING IN

To be the preferred financial solutions provider excelling in customer delivery through

2. Innovation: The bank is committed to leveraging technology and innovation to

5. Corporate social responsibility: Axis Bank is committed to giving back to society

2. Current accounts: Axis Bank provides current accounts to businesses and

7. Insurance: Axis Bank provides a range of insurance products, including life

FINANCIAL & MARKET ANALYSIS

• Annual reports of the bank

• Internal reports of the bank

4.2 SAMPLING DESIGN

4.3 DATA ANALYSIS TOOLS

c) Comparative balance sheet

c) Comparative balance sheet

DIAGRAM 5.1 RETURN ON EQUITY

DIAGRAM 5.2 RETURN ON ASSETS

DIAGRAM 5.3 NET INTEREST MARGIN

DIAGRAM 5.4 TOTAL CAPITAL RATIO

DIAGRAM 5.5 TOTAL ADVANCE TO TOTAL DEPOSIT

DIAGRAM 5.6 CURRENT RATIO

DIAGRAM 5.7 CREDIT DEPOSIT RATIO

Year ending 31st March Increase/Decrease

Year ending 31st March Increase/Decrease

Particulars Year ending 31st March Increase/Decrease

INCOME FROM INVESTMENTS 14,618.91

INTEREST on Balance with RBI 1,528.15

TOTAL INTEREST EARNED 67,376.83

OTHER INCOME 15,220.55

TOTAL INCOME 82,597.37

INTEREST EXPENDED 34,244.61

PAYMENTS & PROVISION for EMPLOYEE 7,612.55

OPERATING EXPENSES 14,989.83

TOTAL OPERATING EXPENSES 23,610.75

PROVISION FOR INCOME TAX 4,199.15

PROVISION FOR DEFERRED TAX 157.93

OTHER PROVISION & CONTINGENCIES 7359.45

TOTAL PROVISION & CONTINGENCIES 11,716.53

TOTAL EXPENDITURE 69,571.90

NET PROFIT 13,025.48

INCOME FROM INVESTMENTS 18,178.73

INTEREST on Balance with RBI 899.01

TOTAL INTEREST EARNED 85,163.77

OTHER INCOME 16,500.87

TOTAL INCOME 101,664.64

INTEREST EXPENDED 42,218.02

PAYMENTS & PROVISION for EMPLOYEE 8,760.05

OPERATING EXPENSES 17,801.46

TOTAL OPERATING EXPENSES 39,655.99

PROVISION FOR INCOME TAX 6,290.88

PROVISION FOR DEFERRED TAX 1035.29

OTHER PROVISION & CONTINGENCIES 2884.78

TOTAL PROVISION & CONTINGENCIES 10,210.95