With a jump in the Indian economy from a manufacturing sector, that never really took off, to a nascent service sector, Banking as a whole is undergoing a change. A larger option for the consumer is getting translated into a larger demand for financial products and customisation of services is fast becoming the norm than a competitive advantage. With the Retail banking sector expected to grow at a rate of 30% [Chanda Kochhar, ED, ICICI Bank] players are focussing more and more on the Retail and are waking up to the potential of this sector of banking. At the same time, the banking sector as a whole is seeing structural changes in regulatory frameworks and securitisation and stringent NPA norms expected to be in place by 2004 means the faster one adapts to these changing dynamics, the faster is one expected to gain the advantage. In this article, we try to study the reasons behind the euphemism regarding the Retail-focus of the Indian banks and try to assess how much of it is worth the attention that it is attracting.
INTRODUCTION TO BANKING IN INDIA
Banking in India originated in the first decade of 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, both of which are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the "The Bank of Bengal" in Calcutta in June 1806. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras. The presidency banks were established under charters from the British East India Company. They merged in 1925 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India. For many years the Presidency banks acted as quasi-central banks, as did their successors. The Reserve Bank of India formally took on the responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the Reserve Bank was nationalized and given broader powers.
Early history
The first fully Indian owned bank was the Allahabad Bank, established in 1865. However, at the end of late-18th century, there were hardly any banks in India in the modern sense of the term. The American Civil War stopped the supply of cotton to Lancashire from the Confederate States. Promoters opened banks banks to finance trading in Indian cotton. With large exposure to speculative ventures, most of the banks opened in India during that period failed. The depositors lost money and lost interest in keeping deposits with banks. Subsequently, banking in India remained the exclusive domain of Europeans for next several decades until the beginning of the 20th century.
Foreign banks too started to arrive, particularly in Calcutta, in the 1860s. The Comptoire d'Escompte de Paris opened a branch in Calcutta in 1860, and another in Bombay in 1862; branches in Madras and Pondichery, then a French colony, followed. Calcutta was the most active trading port in India, mainly due to the trade of the British Empire, and so became a banking center.
Nationalized Banks in India
Banking System in India is dominated by nationalized banks. The nationalization of banks in India took place in 1969 by Mrs. Indira Gandhi the then prime minister. The major objective behind nationalization was to spread banking infrastructure in rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969.
Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955.
The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores.
List of Public Sector Banks in India is as follows:
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab and Sind Bank
Punjab National Bank
State Bank of Bikaner & Jaipur
State Bank of Hyderabad
State Bank of India (SBI)
State Bank of Indore
State Bank of Mysore
State Bank of Patiala
State Bank of Saurashtra
State Bank of Travancore
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India s
Vijaya Bank
Private Banks in India
All the banks in India were earlier private banks. They were founded in the pre-independence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector.
Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.
Major Private Banks in India is:
Bank of Rajasthan
Bharat Overseas Bank
Axis Bank
Catholic Syrian Bank
Centurion Bank of Punjab
Dhanalakshmi Bank
Federal Bank
HDFC Bank
ICICI Bank
IDBI Bank
IndusInd Bank
ING Vysya Bank
Jammu & Kashmir Bank
Karnataka Bank
Karur Vysya Bank
Kotak Mahindra Bank
SBI Commercial and International Bank
South Indian Bank
United Western Bank
COMPANY DESCRIPTION
Axis Bank was the first new generation private sector bank to be established in India under the overall reform programme initiated by the Government of India in 1991, under which nine new banking licenses were granted.
The Bank was promoted by Unit Trust of India, the largest mutual fund in India, holding 87% of the equity. Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd and its four subsidiaries who were the co-promoters held the balance 13%. The Bank started its operations in 1994.
Axis Bank's first capital raising post inception was in 1998 through a public offering of primary shares and in subsequent years through equity allotment to a few other investors like CDC. Citicorp Banking Corporation, Bahrain, Karur Vysya Bank and Chrys Capital leading to a dilution in UTI's shareholding in the Bank. Further dilution of Promotors' shareholding happened during Q4 ended of 2004, when the Bank raised US$ 239.30 Million of Capital through a GDR issue.
The Bank today is capitalized to the extent of Rs. 358.56 crores with the public holding (other than promoters) at 57.60%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide network of more than 701 branch offices and Extension Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to adopting the best industry practices internationally in order to achieve excellence.
Profile
Axis Bank is one of the fastest growing banks in the country and has an extremely competitive and profitable banking franchise evidenced by:
Comprehensive portfolio of banking services including Corporate Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking.
The Position as on 31st March 2008 was as under: -
-Balance Sheet Size - Rs 1,095,778,487 (Rs. in Thousands)
-Total Deposits - Rs 876,262,206 (Rs. in Thousands)
-Net Advances - Rs 596,611,446 (Rs. in Thousands)
-Investments - Rs 337,051,008 (Rs. in Thousands)
-Network of Branches - 701
and Extention Counters
-Number of cities and - 190
towns covered by
network
-Number of ATMs - 2854
-Net NPA - 0.42 %
-Capital Adequacy Ratio - 13.73 %
Axis Bank has in place a sound technological platform
Sound technological platform with centralized database and operations enabling 24*7*365 'Anywhere Banking', in order to render the best customer service to its 5.5 million customer base.
Our Mission and Values
Our 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
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
Maximization of Stakeholder value
Success through Teamwork, Integrity and People
INTRODUCTION TO RETAIL BANKING
The Bank continued with its thrust on customer segmentation in the retail liabilities business to spearhead growth during the financial year 2007-08. Savings Bank deposits grew to Rs. 19,982 crores on 31st March 2008 from Rs. 12,126 crores as on 31st March 2007 showing a year on year growth of 65%.
The Priority-Banking offering of the Bank has led the growth in the Savings Bank deposits. Other savings products, especially those for senior citizens, for women and for NRIs have contributed strongly to the overall growth of the savings bank deposits.
Savings Bank Product
Growth in Savings
Bank Balances
Growth in number of Accounts
Priority Banking (High Networth)
100%
108%
Savings Accounts for Trusts
133%
39%
Savings Accounts for NRI
262%
80%
Senior Privilege (Affluent Senior Citizens)
29%
46%
Smart Privilege (Savings Accounts for Women)
73%
50%
Salary Power (Pay Roll Account)
38%
28%
Easy Access (Base Savings Bank Account)
49%
26%
The Bank has implemented a Customer Relationship Management (CRM) solution which is being integrated with various other application systems of the Bank including Finacle, the core banking software solution, and software platforms for Demat, Mutual Funds, Mobile Banking, Tele banking, and Credit Cards, to provide a single and comprehensive view of the customer across product categories and channels. CRM capabilities will enable the Bank to improve its cross-sell penetration among its customer base.
The Bank has over time built an efficient in-house sales model, which has strongly contributed to the overall account acquisition of the Bank. The effectiveness of the Sales Channel has been a major factor in the growth of CASA (current account and savings account) deposits by the Bank.
The Retail Term Deposits of the Bank grew by 61% from Rs. 7,094 crores on 31st March 2007 to Rs. 11,449 crores on 31st March 2008.
Over the years, the alternative banking channels of the Bank, which comprise the ATM network, internet banking, mobile banking and phone banking, have grown robustly, providing higher levels of convenience and service quality to the Bank's customers. During the financial year 2007-08, the Bank has added 423 ATMs to reach
st 2,764 ATMs as of 31 March 2008. The Bank today has 4.25 ATMs for every Branch. The mobile banking channel has fast emerged as an extremely convenient option for the Bank's customers to keep themselves updated on the activity in their accounts. During 2007-08, 36% of new customers signed on for mobile banking services. With 1.59 million customers registered for mobile banking, the Bank has the highest mobile penetration levels among bank customers in India. Internet banking usage also rose sharply: the registered user base rose from 3.35 million on 31st March 2007 to 5.17 million on 31st March 2008, a growth of 54%. The Bank has a Phone Banking Center providing account information and assistance in 11 languages.
The Retail Assets portfolio of the Bank grew from Rs. 8,928 crores on 31 March 2007 to Rs. 13,592 crores on 31st March 2008, a growth of 52%. The segment constitutes 23% of the Bank's total loan portfolio on 31 March 2008 of which 79.83% is secured and 20.17% comprises unsecured loans. Retail loans are extended by the Bank through 70 Retail Asset Centres (RACs) in select cities of the country, as also through the Bank's branches in other cities and towns. The Bank's strategy of focusing on the prime customer segments and staying away from small ticket loans, and the deployment of robust credit and back-office processes, has contributed to the continued health of the retail asset portfolio.
The Retail services provided by Axis bank :-
Retail Liabilities
Retail Assets
Cards
Wealth Management
Corporate Communications and Market Research
Alternate Channels
The focus of the Retail Banking Department is to :
1. Increase share of Retail Deposits
2. Increase share of Retail Assets
3. Increase Fee Based Income
In order to achieve the above mentioned, the following strategies are used:
1. Introduce New Products based on Customer Need and to address targeted segments.
2. A strong Sales Focus.
3. An extensive network and effective utilization of the banking channels.
RETAIL LIABILITES- An overview of the products
The Bank has launched customized savings account products for various categories of customers - Senior Citizens, Students & Trusts/NGOs besides a very competitive offering in the Salary Accounts category.
SEGMENTATION OF THE SAVING BANK
A Product Manger is in-charge of one or more of these segments.
EasyAccess Savings Account
Banking made easy
The account is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your requirements for a truly comfortable banking experience. EasyAccess Savings Account gives you instant access to your money anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of our eclectic client base.
-Interest paid on a quarterly basis @ 3.5 % per annum.
-International Debit Card.
-Tele-banking
-iConnectâ„¢ Internet Banking
-Multi-city 'At Par' cheque book for all Savings Account holders
-Free Anywhere Banking facility
-Auto sweep facility for excess balances into high interest earning term deposits
-Quarterly statement of account.
-Access to account information over iConnect, Tele-banking and ATMs
You can avail of all these services with a minimum quarterly average balance of Rs 5,000 in metro or urban centers, and Rs 2,500 in semi urban centers.
Senior Privilege
Because life begins at sixty
Eligibility: Savings Bank customers with 60 years of age or above as on the date of account opening.
Dedicated Relationship Managers
Free At-Par Cheque book
Free International VISA Debit Cards for primary and joint account holders
Free Monthly Statement of Accounts and Free Passbook
Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank branches
Free Inward Remittances
Free Outward Remittances once a year
Faster credits to foreign cheques providing you prompt availability of funds remitted by your near and dear ones abroad
Cheque pickup and Cash delivery services
Anywhere Banking
Telebanking
Free Mobile Banking
iConnect
Customised Loan Offerings
Complimentary Financial Planning
Silver Health - Medical Insurance for Senior Citizens
AQB Criteria: Rs. 10,000
Smart Privilege Account
(For the woman of today)
In today's busy world it's tough being a working woman. Right from shuttling between a job and family to taking care of her finances she has to be on her heels all the time. Keeping this ideal in mind, we at Axis Bank have designed a savings account best suited for the woman of today. Now with the Smart Privilege Account you can manage your money, your life and enjoy a host of lifestyle privileges as well. What's interesting is that the Smart Privilege Account ensures that you have enough time for all those important things in life.
Jewellery Insurance on Debit Card
-Dedicated Relationship Manager:
-A Dedicated Relationship Manager will be your one point contact at the branch for all your banking transactions thus ensuring that you would neither have to move from one counter to the other nor stand in queues to await your turn.
-Zero Balance Minor Account
-Round-the-Clock access through ATMs:
-There could be a time in your life when at 3 am you could require cash. With our round-the-clock access you can withdraw cash up to Rs. 40,000 per day, deposit cash/cheques, transfer funds, print a mini statement and pay insurance premiums (LIC), all this through one of the largest ATM networks in the country.
-Anywhere Banking:
-Imagine being in some other city and still have complete access to all your transaction needs. You are a customer of the bank rather than limited to being a customer of the branch. So even if you are travelling, you can access your account easily from any of the 600 Axis Bank offices spread over 350 cities across the country.
-At-par cheque facility:
-Your cheque will be treated as a local cheque within the vast Axis Bank network of 600 offices across 350 cities in India It frees you from the hassles of getting a
Demand Draft issued.
-Monthly Account Statement
-Additional discounts on loans
-Financial Advisory Services:
Our Financial Advisor will assist you with your financial planning and help you to earn maximum returns on your savings.
-Discount on Retail Purchases:
-Just live the feeling of walking into a store and getting amazing discounts not available to others. As you are a valued customer for us, we shall Endeavour to provide you with discounts at various outlets, periodically. All you have to do is use your new Smart Privilege Debit Card and avail of discounts at these outlets. Details of such tie-ups will be sent to you on a regular basis.
Zero Balance Savings Account
Save at Zero
Saving Money is now easier
Presenting, Axis Bank's Zero Balance Savings Account. At Axis Bank it has been our constant endeavor to create products specifically catering to your needs. The account while offering you a whole range of services also addresses your latent need of having an account without the hassle of maintaining an average quarterly balance.
Features
No Average Quarterly Balance requirement
Free International Debit Card with an Accidental Insurance cover up to Rs 2 lakhs* (charges for the primary holder are waived)
Free mobile banking facility
Access though more than 675 branches and more than 2800 ATMs
At-Par cheque facility with the clearing limit of Rs 50,000
24x7 Telebanking & Internet banking
Free quarterly statements
* Conditions Apply
1. Initial funding of Rs. 5,500.
2. Account maintenance fee of Rs. 500 per annum
Zero Balance Savings Account: Documentation
An Account Opening Form duly filled
One latest passport size photograph
Initial cheque of Rs 5,500
Photo identity proof like PAN card, Passport, Driving License or Voters card
Proof of residence like recent utility bill or bank account/credit card statement, and-
Any two of the following documents:
Latest Post paid mobile bill with a minimum bill payment of Rs. 1,000
Minimum Net Salary Rs. 20,000 or other bank account statement with minimum day end balance of Rs 25,000
Frequent Flyer Card or Customer Loyalty Card (any of the renowned retail chain)
Proof of owning a Gold/Platinum Credit Card
Proof of owning a house or a four-wheeler
Salary Power
The complete financial solution
Seeking a convenient way to pay your employees?
Salary Savings Account from Axis Bank will do the job for you. We know how important employee satisfaction is for an organisation to grow to its full potential. Which is why we have tailored our Salary Savings Account not only to be a convenient way for you to manage salaries (across various centres, through our centralised database), but also provide your employees with a range of value added benefits.
Salary Savings Account comes with a host of facilities that give your employees access to the complete gamut of banking services (including overdrafts, loans and zero-balance requirements) on a preferential basis. Making it the perfect incentive for your employees.
Salary Power: Features
1
Balance Requirement
No minimum balance
2
Anywhere Banking
Available across the country
3
Cheque books
Multi-city at-par Cheque Book
4
International Debit cum ATM Card
Personal Accident Insurance cover of upto Rs 2 lacs per cardholder
[To keep your personal accident insurance cover activated, you should have made a purchase transaction in 365 days prior to the day of the incident & should have maintained an average quarterly balance of Rs 5,000 (urban & metropolitan branches) or Rs 2,500 (rural & semi-urban branches) as the case may be in the two quarters before the date of the incident.]*
Cash withdrawal of upto Rs 25,000 daily
Purchase protection and Zero Card Liability
Accepted at more than 1 million ATMs and more than 26 million Point of Sale terminals worldwide
5
Computerised Statements
Free on a quarterly basis
Free monthly statements on email (Customer has to register for Internet Banking)
6
Joint Account Facility
Available
7
Flexi (2-in-1) Encash Deposits*
Available subject to terms and conditions
8
Demand Drafts
Free Demand Drafts drawn on Axis Bank Branches
9
Overdraft Facility
Upto 50% of net salary at Personal Loan rates*
10
Outstation Cheques
Free collection, only out-of-pocket expenses to be recovered
11
Demat Account
Available
12
Financial Advisory Services
Available
13
Power Loans*
Power Homes - Housing Loans
Personal Power - Personal Loans
Study Power - Educational Loans
Consumer Power - Consumer Loans
Power Drive - Vehicle Loans
14
Optional Gold Debit Card
Access to any Bank ATM
15
Credit Cards
Available
16
Online Trading
Available
17
Built-In Insurance (Medical and Burglary) scheme
Unique facility of availing Insurance option in built in the account available
18
Built-in SIP scheme
Unique facility of availing SIP option in built in the account available
20
Internet Banking
Available as iConnect with enhanced features like free bill payments (eg, electricity bills) and electronic payment of premiums (LIC - Insurance Premium) at select centres. Online shopping and E-Brokering
21
Telebanking
Free (available for 24 hours at select centers)
22
Mobile Banking
Available
23
Nomination Facility
Available
24
Funds Transfer
Transfer funds from your Salary Power account to any bank account in India free of charge.
25
Meal Card
The best substitute for the traditional Sodexo/Accor Meal coupons/vouchers.
26
Gift Card
Prepaid, Rupee Denominated, Non Reloadable card - Ideal for Gifting.
Special Scheme for Savings Bank Account:
Savings account for students:
Eligibility: Age of the student should be between 12 years and 25 years. For medical students the upper age limit could be 30 years. The student must possess valid identification of an institution.
Features:
- Minimum average quarterly balance (AQB) of Rs. 500.
- Free International Debit Card.
- Quarterly statement of account.
- Tele-banking
- iConnectâ„¢ Internet Banking
Savings account for Demat customers:
Eligibility: Demat account customers of the Bank.
Features:
- Minimum average quarterly balance (AQB) of Rs. 1000.
- Free International Debit Card.
- Quarterly statement of account.
- Tele-banking
- iConnectâ„¢ Internet Banking
Priority Banking - Resident
In a segmentation study undertaken in 2002, it was found that 2.72 % of our retail customers contribute to nearly 49.05% of our total retail deposits.
The clients that bring a larger share of business to the Bank expect a differentiated standard of service. This also makes business sense, as more often than not, most of the business in a particular branch flows from a handful of clients. Hence, Priority Banking, was launched in order to cater to the needs of the high net worth customers within the bank.
The product has at its core, the idea of providing a certain bit of differentiation in service and treatment to a segment of its customers with a view towards customer retention, acquisition and cross-selling.
The nucleus of these services has essentially four important components - personalized service, Investment advisory services, preferential pricing of banking products/ services and lifestyle privileges
Most of Banks, private as well as foreign, offer a specialized banking service to their elite customers. The definition of the value of relationship and services offered differs across banks. In general, MNC banks define the HNI segment taking into account the customers' liability as well as, asset relationship with the bank (Between 20-30 lakhs and above) whereas the Indian private banks only take in the savings bank balances and term deposits (Between 5-10 lakhs and above).
Banking Privileges
Priority Banking Lounge:
As a Priority banking customer you will have access to an exclusive 'Priority Banking Lounge' at branches. This will allow you to conduct your financial transactions in utmost comfort and confidentiality through an exclusive Relationship Manager.
Dedicated Relationship Manager:
You will enjoy access to a dedicated Relationship Manager who will be your one point contact at branch for all your banking transactions thus ensuring that you would neither have to move from one counter to the other nor stand in queues to await your turn.
Home Banking:
Experience the convenience of our home banking facilities. Avail of free cash and cheque pick-up and delivery at your office or residence.
Exclusive Priority Banking International Debit card:
This card allows you free access to all VISA ATMs in India. The card also comes with higher ATM withdrawal limits, higher POS transaction limits at merchant establishments, enhanced insurance cover and a host of special discounts and offers.
You also get Preferential Interest Rates and lowered Processing Fees on select Retail Loans.
Other Banking Privileges:
Enjoy a host of banking privileges like free at-par cheques, demand drafts and pay orders, free passbook updates and monthly statements.
You would also be entitled to two free minor accounts, one free outward remittance per quarter and free Mobile banking.
As a Priority Banking customer, there would be no issuance charges on Axis Bank's Travel Currency Card.
Investment Privileges
Avail of assistance in financial planning. Investment advice, market information reports, and invitations to investor meets are offered complimentary to you.
Lifestyle Privileges
However, it's not all about just financial services. We aim to provide a different Lifestyle experience through Lifestyle privileges like exclusive invitations to movie screenings, plays, music concerts and other special events sponsored by Axis Bank, especially for our Priority Banking Customers.
Complimentary Gold Credit Card
Complimentary Gold Standard Credit Card and Gold Standard Secured Credit Card to the Priority Banking customers.
50% off on the Issuance Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card to the Priority Banking Customers. The Priority banking Customer shall be charged Rs. 500 as annual maintenance charge.
Eligibility Criteria
You can sign up for Priority Banking service by agreeing to any one of the following criteria
Average quarterly balance (AQB) of Rs. 1 Lakh in your savings account ( this requirement is Rs. 75,000 if in case you have a salary account with Axis Bank)
Average quarterly balance of Rs. 5 Lakhs in combination of your savings and term deposits (Minimum AQB of Rs. 25,000 in the savings account)
Minimum average quarterly relationship of Rs. 10 Lakhs across members of the same family.
Minimum average quarterly relationship of Rs. 5 Lakhs in Encash 24 (Flexi Deposits) account.
Conditions Apply
All loans and credit facilities are at the sole discretion of the Bank.
Other/Correspondent Bank commission and fees will be charged wherever applicable.
Axis Bank does not guarantee returns on any of the investments.
Standard terms & conditions and RBI rules apply.
Priority Banking is offered in select Branches/Cities only.
Non-Resident (External) NRE Savings Account
Any person resident outside India may open NRE account. This account permits a NRI to hold and maintain foreign currency earnings in Indian rupees. The principal and interest earned on these balances are freely repatriable.
Whether you are a student, a professional, a salaried employee or an entrepreneur, this account will meet all your banking needs
Nomination Facility
Nomination can be in favour of resident or non-resident
Repatriation of funds by nominee
Remittance abroad by Non-Resident Nominee:
Banks may allow remittance of funds abroad, or funds may be credited to NRE or FCNR deposits.
Remittances abroad by Resident Nominee:
Funds are to be credited to the ordinary SB account. If the nominee wants to remit funds outside India for meeting the liabilities of the deceased, should obtain permission from RBI.
Features
Low minimum balance requirement of Rs 5,000
'Multicity' cheque book which will permit you to make payment via cheque across multiple locations
Mandate or Power of Attorney facility available so that in your absence from the country you can authorize your relative or friend to operate conduct banking transactions on your behalf
Free iConnect: 24 X 7 account access through secure Internet banking facility from anywhere and anytime
Online shopping mall and utility bill payment facility by using our internet based iConnect banking login
Free personal accident cover of Indian Rupees 2,00,000 on our Debit Card (The insurance cover will come in force only after you make your first successful payment transaction at any merchant establishment.)*
Tax Advisory Services from our empanelled consultants
Assistance to obtain Income Tax PAN Cards to make you compliant with the tax regulations of your native land
Documentation
Challenges for AXIS Bank
AXIS Bank has been a late entrant in the business of retail credit. The Bank has to overcome intense competition by established players to be a significant player in this business in spite of a large portion of the market remaining untapped.
The interest rates during the past few years had fallen drastically. In the recent months the interest rates have again started moving northwards and so it is a major challenge to maintain profitability while simultaneously building up cost effective processes and large volumes in a relatively short period of time. To build business volumes, the Bank is developing low cost distribution channels and also enhancing the use of alternate channels (Mobile, ATM, Internet etc). The Bank is also expanding this business quickly to tier II and III cities and leveraging the strength and reach of its existing Branches for this purpose.
The Bank is concentrating on an overall growth in the portfolio with a mix of secured and unsecured loans. To build up the Retail Asset portfolio, the Bank has identified the following action points:
- Rule based risk assessment, monitoring, effective recovery and collections
- PDC Handling and Servicing
- IT Capabilities
- Focus on building dealer alliances /DSA networks
- Growth through Alliances and distributed finance.
The Retail Asset products of the Bank are :
- Personal Power
- Power Drive
- Power Home
- Study Power
- Consumer Power
- Loan against Shares
AXIS Bank - Retail Assets : The Year 2007-08
In the year ended March 31 2008, our retail credit portfolio registered a substantial year-to-year growth of 55%. As on 31.3.2008, the portfolio aggregated Rs. 8525.50 crores, up from Rs. 6208.64 crores as on 31.3.2007. At present it forms 29 % of the total advances of the Bank, up from 27% as on 31.3.2007.
AXIS BANK - RETAIL ASSETS : THE YEAR AHEAD (2007-08):-
The Bank plans to ambitiously grow its retail assets portfolio from Rs. 8525 crores (as on March 31, 2008) to new heights this year.
In order to achieve this, a two pronged approach strategy is contemplated:
- Business through 'Retail Asset Centres' (at major centres) and 'Satellite Retail Asset Centres' (at other centres)
- Business through Alliances / Securitisation
Business through 'Retail Asset Centres' (at major centres) and 'Satellite Retail Asset Centres' (at other centres)
Loans
PERSONAL POWER
Purpose: To meet personal expenses.
Loan Amount
Minimum Loan amount Rs.25, 000/-
Maximum Loan amount Rs.105, 00,000/- for salaried and Rs.15, 00,000/- for salaried professional individuals
Maximum Loan amount Rs.103, 00,000/- for self-employed individuals
Maximum Loan amount Rs.720, 500,000/- for Doctors
POWER HOMES
Purpose: - Purchase of a plot of land and Construction of a house thereon
- Construction of a house on plot of land already owned
- Purchase of a new house / flat
- Purchase of old house / flat which is not more than 15 years old (Home Acquisition Plan)
- Extend /Renovate/Repair of a house or flat already owned by self Improvement/ Extension
Plan)
-Take-over of existing Housing Loan
- Take-over of existing Housing Loan with additional Finance (Top-Up)
- Pre-allotment Booking finance
Limit: Minimum - Rs.1 lakh & Maximum - Rs.50 lacs
Margin 15% in the case of normal product.
25% in case of Improvement/ renovation loans
ASSET POWER (LAP)
Purpose:
- Loan against property - Residential premises
- Loan against property - Commercial premises
- Loan for Purchase of Commercial Property
- Take-over of existing Loan
- Take-over of existing Loan with additional refinance (Top-Up)
Limit: Minimum - Rs.1 lakh & Maximum - Rs.150 lacs
Margin 50% in case of loans against property. (On valuation)
CONSUMER POWER
Purpose: Purchase of new consumer durable item
Loan Amount: Minimum Loan amount Rs.25, 000, Maximum Loan amount Rs.2, 00,000
POWER DRIVE
Purpose: Purchase of a new car
Loan Amount: Cost of Vehicle plus registration & insurance (less stipulated margin) OR 20 times of net monthly salary in case of salaried persons / equivalent of net annual income as per latest IT Assessment Order in case of others, whichever is less.
STUDY POWER
Purpose: To provide financial support to deserving/meritorious students for pursuing higher professional/technical education in India and abroad. To be provided to meritorious students who have obtained admission to career-oriented courses, e.g. medicine, engineering, management, either at the graduate or post-graduate level. This would cover studies proposed in domestic or overseas institutions.
Quantum of Loan: The quantum of finance under the scheme is capped at Rs.7.5 lakhs for studies in India and Rs.15 lacs for studies abroad, which would cover tuition fees, hostel charges (if any), cost of books, etc. The minimum amount of loan would be Rs.50,000/-.
Expenses Considered for the Loan:
- Fees payable to college/university/hostel
- Examination/Library/Laboratory fees
- Purchase of Books/Equipment/Instruments
- Caution/refundable deposits supported by the Institution's bills/receipts
- Travel expenses/passage money for studies abroad
- Purchase of computers (when essential for the completion of the course)
Any other expenses required to complete the course, like study tours/project work/thesis, etc.
LOAN AGAINST SHARES
Purpose: For personal use
Quantum of Loan: Maximum loan amount is Rs.20, 00,000/- against pledging of approved scrip's. We are offering this facility to individuals only.
TWO WHEELER LOAN
Purpose: To purchase a two wheeler
Quantum of Loan: Minimum Rs.20, 000/- & Maximum Rs.70, 000/-. We finance 80-85% of the on road price (Cost of Vehicle + registration + insurance) of the vehicle.
Corporate Banking
CORPORATE BANKING
The Business Banking Department (erstwhile Institutional Business Department) was set up in the year 2000, with the objective of having a special cell to serve the institutional and corporate clientele of the Bank. Business Banking initiatives revolve around transaction banking services to garner Business Current Accounts, Cash Management Service mandates, Government Business - Collection & Payment Services. As a natural corollary, scope of the business was extended this year to Business loans for Small Businesses so that all product and services to small business enterprises are comprehensively made available.
The Department presently focuses on the four broad areas through the respective
Business Groups, as under:
Business Current Accounts
Business Assets
Cash Management Services
Government Business
The Department apart from the Business Groups at Central Office drives the above businesses through Zonal BB and Regional BB Officials at State Capitals & other important centers across various Client Segments through Corporate Banking Relationship Managers and Branches. The Business loans for Small Businesses are however driven through the dedicated asset centers of the Bank.
The products offered by the Corporate Banking business group of the Bank include fund and non-fund based facilities, fee and commission based products and services, deposits and foreign exchange related products, covering the domestic and international transaction requirements of large and mid-sized customers. The Corporate Banking group of the Bank was restructured with a view to increasing the share of core fee income to augment the overall Return on Equity (ROE) from corporate clients. The entire gamut of Corporate Banking activities, comprising Credit, Treasury, Business Banking and Capital Markets, now work in tandem with joint product offerings made to corporate customers. Relationship Management and Credit functions have been merged and the Corporate Credit group has been split into two separate segments Large Corporate and Mid-Corporate. The fulcrum of the revised set-up is the Relationship Manager, who serves as a single point contact for all the banking needs of each corporate.
Besides widening the customer base of the Bank and adopting a careful assessment of acceptable risk-return tradeoffs, the focus of the Corporate Banking group is to deepen existing client relationships by actively cross-selling the entire range of products and services, based on detailed client-wise account-plans, and thereby increase the Bank's share of the aggregate business level of the customer.
CORPORATE CREDIT
The Corporate Credit portfolio of the Bank comprising advances to large and mid-corporates grew by 68.33% to Rs. 29,026 crores from Rs. 17,244 crores a year ago. This includes advances at overseas branches amounting to Rs. 5,381 crores (equivalent to USD 134 million) comprising in main the portfolio of Indian corporates and their subsidiaries, as also trade finance. Credit exposures are taken
based on risk analyses and mitigation measures, with proposals being subjected to critical scrutiny by the Bank's Risk Department. Efforts are made to constantly upgrade the skills required for faster turnaround of credit proposals and structuring of financial products. In addition to working capital loans, the Bank also takes long-term exposures to infrastructure and manufacturing projects set up by reputed industry groups. Relationship groups in the Bank are organised with an industry-sector focus for better evaluation of specified risks. The credit policy of the Bank has also put in place ceilings on exposures to various industries with a view to containing concentration risk and facilitating portfolio diversification.
AXIS Bank's Current Accounts
The basic product for mobilizing such deposits is a Current Account. The Bank offers a range of current account products to meet the needs of the various customer segments such as Small Enterprises, Trade, Exporters, Corporates and institutions. The various Current Accounts offered by the Bank are:
Normal Current Account
Business Advantage
Business Classic
Business Privilege
Business Global
Channel One (Priority Customers)
These products offer flexibility to customers to choose from the above options with varying minimum average quarterly balance commitments and charges structure. In addition to conventional banking facilities, these accounts offer Multi-City At Par payable cheque- book facility and Anywhere Banking facility across branches. Customers can access their account Online through Corporate iConnect, our Internet banking platform as also through Tele-Banking facility and can receive account balance information on mobile telephones and electronic mail. Customers are subject to transaction charges including charges for non- maintenance of the committed balances.
Axis Bank brings different kinds of current accounts for different types of businesses. Select the one that best suits your business requirements.
Axis Bank's Current Accounts come equipped with the following features to give maximum value for your money.
Types of Current Accounts:-
Normal Current Account
Business Advantage Account
Business Classic Account
Business Privilege Account
Channel One
Current Account for Govt Organisations
Current Account for Banks
Current Account for Builders & Real Estate
Capital Market Current Account
Krishi Current Account
Business Global Current Account
Club 50 Current Account
Shipping and Maritime Current Account
Inland Road Transport Current Account
Travel, Tourism and Hospitality Current Account
Features:
Anywhere Banking
Our Current Account allows you to bank from all our branches and extension counters. You can deposit cash, withdraw cash, deposit cheques, and issue 'at-par' cheques at any of our branches. So bank at your own convenience!
Instant Fund Transfer
You can transfer funds instantly between any of our branches. Funds transfers can be effected online, right from your desktop, through our internet banking services.
Internet Banking
Axis Bank presents Corporate iConnect - a unique NetBanking platform for its current account customers. Available with multiple user IDs, depending on your needs. Access your account at any time form anywhere. You can transfer funds to your own accounts or to third party accounts within Axis Bank & Inter Bank covering over 25,000 branches of various banks. Corporate iConnect also permits transaction initiation by one user and approval by another. You can also execute bulk payments like salary and commission across Axis Bank network, right from your desktop.
At-Par (Multicity) Chequebook
Enjoy the benefits of multicity chequebook with Axis Bank's current accounts. You can issue cheques payable at par at all our branches across the country. Your cheques will be treated as local cheques at more than 375 locations as on January 31, 2008.
ATM or Debit Card
With every Current Account (for proprietary and partnership concerns), you can avail upto 2 ATM cum Debit cards, which allow you round the clock access to your account from any of all our ATMs all over the country. You can withdraw upto Rs 40,000 a day.
Free Monthly Account Statement
By courier and daily on email.
Mobile Banking
Mobile Banking will enable you to bank with us through your mobile phone irrespective of where you are.
Phone Banking
Phone banking or Tele-banking service can help you access your account from your telephone anytime you want.
Documentation
Mentioned below is the list of documents to be submitted with the completed duly signed Account Opening Form:
Basic Common Documentation
Proof of Identity: PAN Card, Voter Id Card, Passport, Driving License
Proof of Address: Latest Telephone Bill or Electricity Bill
Public or Private Limited Companies
Certificate of Incorporation and Commencement of Business
Memorandum and Articles of Association
Board resolution authorising the opening and operation of the account
PAN or GIR No. or completed Form 60
List of Directors with residential addresses
Partnership Firms
Partnership Deed and Registration Certificate
Shop and Establishment Certificate
Letter from partners approving the persons concerned to open and operate the account
Proprietorship Concerns
Certificate from State Govt or Statutory Body or Trade License or Sales Tax Certificate or Shop and Establishment Certificate
Letter of proprietorship, duly signed by the proprietor in his or her individual capacity (with a rubber stamp) Hindu Undivided Family
Letter of HUF duly signed by Karta and all Co-Parceners
PAN or GIR No. or completed Form 60
Names of Karta and Co-parceners with residential addresses
Latest passport-size photographs of all the authorized signatories
Trusts
Copy of the trust deed
Copy of the registration certificate
Copy of the resolution by the trustees authorising the members concerned to open and operate the account
List of Trustees with residential addresses
Photographs of the members operating the account Associations or Clubs
Bye-laws of the association or club
Certificate of Registration
Copy of the resolution by the Board authorising the members concerned to open and operate the account
FINDINGS:
Bank is having 853 branches all over the country.
The number of branches should be increased.
SUGGESTIONS:-
Number of Branches should be increased covering a wider area in various states.
A wide publicity to be given about the organization and its products through various means of communications to keep growth moments.
CONCLUSIONS
As my point of view Axis Bank Ltd. is outstanding. While working in Axis Bank I found that this bank has developed manifold in short period of time due to facilities and services provided to their customer and this growth rate can be keep it up if they start to go in semi-urban areas. In
last couple of years they have opened new many branches and they should open many more. The working staff are very co-operative in nature and due to that the bank will also get good benefit. Axis Bank has provided their customer Net-banking facilities and due to that transactions are done fast. Charges at Axis Bank are on lower sidewhen we compare it with other Banks.
