CHAPTER-1

INTRODUCTION TO THE BANKING

INDUSTRY

A SNAPSHOT OF THE BANKING INDUSTRY:

The Reserve Bank of India (RBI), as the central bank of the

country, closely monitors developments in the whole financial
sector.
The banking sector is dominated by Scheduled Commercial
Banks (SCBs). As at end-March 2002, there were 296 Commercial
banks operating in India. This included 27 Public Sector Banks
(PSBs), 31 Private, 42 Foreign and 196 Regional Rural Banks. Also,
there were 67 scheduled co-operative banks consisting of 51
scheduled urban co-operative banks and 16 scheduled state cooperative banks.
Scheduled commercial banks touched, on the deposit front, a growth of 14%
as against 18% registered in the previous year. And on advances, the growth was
14.5% against 17.3% of the earlier year.
State Bank of India is still the largest bank in India with the market share of
20% ICICI and its two subsidiaries merged with ICICI Bank, leading creating the
second largest bank in India with a balance sheet size of Rs. 1040bn.
Higher provisioning norms, tighter asset classification norms, dispensing with
the concept of past due for recognition of NPAs, lowering of ceiling on exposure to a
single borrower and group exposure etc., are among the measures in order to improve
the banking sector.
A minimum stipulated Capital Adequacy Ratio (CAR) was introduced to
strengthen the ability of banks to absorb losses and the ratio has subsequently been
raised from 8% to 9%. It is proposed to hike the CAR to 12% by 2004 based on the
Basle Committee recommendations.
Retail Banking is the new mantra in the banking sector. The home loans alone
account for nearly two-third of the total retail portfolio of the bank. According to one
estimate, the retail segment is expected to grow at 30-40% in the coming years.

Net banking, phone banking, mobile banking, ATMs and bill payments are the
new buzz words that banks are using to lure customers.
With a view to provide an institutional mechanism for sharing of information on
borrowers / potential borrowers by banks and Financial Institutions, the Credit
Information Bureau (India) Ltd. (CIBIL) was set up in August 2000. The Bureau
provides a framework for collecting, processing and sharing credit information on
borrowers of credit institutions. SBI and AXIS are the promoters of the CIBIL.
The RBI is now planning to transfer of its stakes in the SBI, NHB and
National bank for Agricultural and Rural Development to the private players. Also,
the Government has sought to lower its holding in PSBs to a minimum of 33% of total
capital by allowing them to raise capital from the market.
Banks are free to acquire shares, convertible debentures of corporate and units
of equity-oriented mutual funds, subject to a ceiling of 5% of the total outstanding
advances (including commercial paper) as on March 31 of the previous year.
The finance ministry spelt out structure of the government-sponsored ARC
called the Asset Reconstruction Company (India) Limited (ARCIL), this pilot project
of the ministry would pave way for smoother functioning of the credit market in the
country. The government will hold 49% stake and private players will hold the rest
51%- the majority being held by ICICI Bank (24.5%).
REFORMS IN THE BANKING SECTOR:
The first phase of financial reforms resulted in the nationalization of 14 major
banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn
resulted in a significant growth in the geographical coverage of banks. Every bank has
to earmark a minimum percentage of their loan portfolio to sectors identified as
priority sectors. The manufacturing sector also grew during the 1970s in protected
environs and the banking sector was a critical source. The next wave of reforms saw
the nationalization of 6 more commercial banks in 1980. Since then the number
scheduled commercial banks increased four-fold and the number of banks branches
increased eight-fold.

After the second phase of financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB) s found it extremely
difficult to complete with the new private sector banks and the foreign banks. The
new private sector banks first made their appearance after the guidelines permitting
them were issued in January 1993. Eight new private sector banks are presently in
operation. These banks due to their late start have access to state-of-the-art
technology, which in turn helps them to save on manpower costs and provide better
services.During the year 2000, the State Bank of India (SBI) and its 7 associates
accounted for a 25% share in deposits and 28.1% share in credit. The 20 nationalized
banks accounted for 53.5% of the deposits and 47.5% of credit during the same
period. The share of foreign banks ( numbering 42 ), regional rural banks and other
scheduled commercial banks accounted for 5.7%, 3.9% and 12.2% respectively in
deposits and 8.41%, 3.14% and 12.85% respectively in credit during the year 2000.
CLASSIFICATION OF BANKS:
The Indian banking industry, which is governed by the Banking Regulation
Act of India, 1949 can be broadly classified into two major categories, non-scheduled
banks and scheduled banks. Scheduled banks comprise commercial banks and the cooperative banks. In terms of ownership, commercial banks can be further grouped
into nationalized banks, the State Bank of India and its group banks, regional rural
banks and private sector banks (the old / new domestic and foreign). These banks
have over 67,000 branches spread across the country. The Indian banking industry is a
mix of the public sector, private sector and foreign banks. The private sector banks are
again spilt into old banks and new banks.

Banking System in India

Reserve bank of India (Controlling Authority)

Development Financial institutions

IFCI IDBI ICICI

NABARD NHB

Commercial
operative
Banks
Banks

Banks

IRBI

EXIM Bank

Regional Rural

Land Development
Banks

Public Sector Banks

SBI Groups
Banks

ISIDBI

Nationalized Banks

CoBanks

Private Sector Banks

Indian Banks

Foreign

CURRENT BANKING SCENARIO OF INDIA:

As per the Advance Estimates of GDP for 2008-09 released by the Central
Statistical Organization on 9, February, 2009, the growth of GDP at factor cost (at
constant 99-2000 prices) is estimated to grow at 7.1% during the year. The growth of
GDP during 2007-08 (Quick estimates) was 9.0%.
The International Monetary Fund (IMF) has forecast that Indias gross
domestic product (GDP) growth will slow dramatically to 6.25% in the fiscal year to
March, and to 5.25% in the following year. This is well below the 9% growth in the
year to March 2008 and even lower than the governments prediction of 7.1% growth
in 2008-09.

The average growth in the first three quarters of the fiscal year was 6.9%. This
effectively means IMF expects the economy to grow only 4.4% in the last quarter.
As per the above estimates, the growth rate for Agriculture, Industry and
Services is estimated to be 2.6%, 4.8% and 9.6% respectively in 2008-09. In the quick
estimates for 2007-08, the corresponding growth rates for these three sectors were 4.9,
8.1 and 10.9% respectively.
After growing at 5.0% in 2006 and 4.9% in 2007, IMF estimates global GDP
growth to decelerate to 3.7% in 2008 in the wake of the current financial crisis. The
financial market turbulence in developed economies following the US sub-prime
mortgage crisis has reduced financial leverage, lowered credit availability and
negative wealth effects have emerged as risks to consumption and growth in advanced
economies, especially in the US. Continuing inflationary pressures from food and
commodity prices as well as high and volatile crude oil prices are other risks being
faced by the global economy.
India continued to be one of the fastest growing economies of the world.
During 2007-08, the Indian economy grew at a robust pace for the fifth consecutive
year. Real GDP growth, estimated at 8.7% in 2007-08, is in tune with the average
annual GDP growth of 8.7% in the five year period 2003-04 to 2007-08. Agriculture
and allied activities are estimated to grow by 2.6% in 2007-08, which is in line with
the average growth of 2.6% per annum during 2000- 01 to 2007-08. Food grains
production touched a record high in FY08, with total food grains production placed at
227.3 million tones, surpassing the target of 221.5 million tones and recording an
increase of 4.6% over the previous year. Industrial growth at 8.6% during 2007-08 has
moderated somewhat against 10.6% in the previous year.
The services sector maintained its double-digit growth at 10.6% during 200708, higher than the long term average of 8.9% (2000-01 to 2007-08). Within services,
transport and communications and financial services recorded double-digit growth for
the last two years and are expected to maintain the growth momentum. Trade and
hotels showed higher growth of 12.1% in 2007-08 against 11.8% growth in 2006-07.
Another positive feature underpinning growth is the sharp rise in the rate of savings
and investment in recent years, which rose to 34.8% and 35.9% respectively in 200607.

Towards the close of the fiscal year, higher inflation rate was noticed due to
rise in global prices of food, metals and crude oil. Inflation based on WPI declined
from 6.4% at the beginning of the fiscal year to a low of 3.1% by mid-October 2007,
partly reflecting moderation in the prices of some primary food articles and
manufactured products.
After hovering around 3% during November 2007, inflation began to edge up
from early December 2007 to touch 7.4% by 29 March 2008, mainly reflecting
hardening in prices of primary articles such as fruits and vegetables, oilseeds, raw
cotton and iron ore, as well as fuel and manufactured products such as edible oil/oil
cakes and basic metals, partly due to international commodity price pressures.
However, fiscal and monetary measures are being taken to contain inflation and
maintain high growth.
Need for a revolutionary approach towards privatization Nationalized banks
such as State Bank Of India (SBI), though pygmies in the international banking
market, are banking behemoths of India. They have branches spread over the entire
length and breadth of the country. SBI in particular is all-pervasive enjoying a
sprawling network of 9000 branches. Its blue and white shingle is visible to the
smallest hamlet. It has assets understood to be worth about Rs2,22,500 crore ($52
billion). SBI has a very conservative approach to accounting particularly when it
comes to declaration of its assets. Probably modesty does not permit the bank to
exhibit its strengths. In particular, it has real estate properties some of which are
heritage sites all over the country. These are estimated to collectively command a
value of Rs.30,000 crores. This, it is believed, does not get reflected in its book of
accounts.
SBI enjoys a monopoly of the government business. The Reserve Bank of
India owns about 60% of the banks equity. To its credit, SBI mobilized $4.2 billion
through the Resurgent India Bonds (RIB) issue in just 3 months down the postPokhran sanction period. This was the difficult time when the international credit
rating agencies had downgraded the country. SBI, time and again, does a rescue act
in the forex market to contain any volatility of the rupee.
SBI was formed under the SBI Act in 1955 with the takeover of Imperial
Bank and amalgamation of Bank of Bengal, Bank of Bombay, and Bank of Madras.

The government mopped up around 93% of the equity, leaving 7% to private

ownership. By this act the equity of RBI cannot be diluted below 55%. SBI enjoys a
pool of best managerial talent, assured government business, a countrywide network
of branches and strong brand credibility in the Indian market.
But, that numero uno position is sliding with the entry of sleeker private and
foreign banks into the Indian Banking scene. The bank is continuously restructuring
itself and for this, they even hire the services of foreign consultants but the pace has
to be hastened.
With the government offering an assured business, nationalized banks and
State Bank of India in particular should not take a complacent view. They should
evolve service-intensive products and make their employees customer-friendly. With
competition from private and foreign banks knocking at the door, the banks should
realize, size is no more an insurance against the onslaught of competition from sleek
private and foreign banks. A revolutionary approach to privatize ownership is the
need of the hour.
Virtual Banking:
SBI has yet to computerize its operations and network all its branches. The
computers currently available serve only to relieve the burden of the clerical staff of
maintaining manual ledgers and not to penetrate into areas of customer service.
ATMs, Anytime-Anywhere, round the clock and telephone banking is still a far cry.
These computers at the best remain only as desk ornaments. With the New Telecom
Policy (NTP) almost in place, telecom sector will soon be revolutionized. Ecommerce, telephone banking, consumer banking, Internet banking, insurance et al
are waiting just around the corner. At least in major metros, virtual banking will soon
take-over from the brick-mortar banks.
Privatization and Credit disbursement:
Talks about privatization of the banks ownership have been initiated but the
SBI act of 1955 does not permit RBIs ownership to be diluted to below 55%. This
act is outdated and needs to be re-addressed. However, efforts have been initiated by
SBI to privatize its non banking subsidiaries like SBI Caps, SBI Gilts, SBI Funds
Management, where SBIs holding is about 85% of the equity. But the pace has to be

hastened so that investments thus released can migrate to more important areas like
development of new technologies and products in customer service and service
intensive areas. Privatization also helps to professionalize the banks day-to-day
operation, which will allow the management more freedom in decision making
during credit disbursement.
To aid privatization and effect a better price realization, the bank is
attempting to change over its accounting and reporting procedures to comply with
US GAAP norms. This is a prerequisite for trying out the ADR route, as it is
known that US market is by far the undisputed biggest market and can offer the best
price. At the moment, the SBI stock is undervalued at Rs.240 whereas experts expect
Rs.300 would be a more realistic value. Action on this front at blitzkrieg pace is the
need of the hour.
Manpower Retraining and not Retrenchment:
As a hangover of the past socialistic mindset, all the nationalized banks have
excess workforce. This is indeed a hot potato for the management of many
enterprises and is therefore being handled with kid gloves. In India, it is everyones
worry to look at business as a source of employment, while making money is
secondary. In this ocean of manpower, every institution does have its share of highly
skilled and talented manpower, which contribute to asset building. It is the semi
skilled manpower having outdated skills, which form the excess baggage. All banks
must invest in re-training the manpower so that they can migrate from the areas that
will be vacated by computerization. The level of Non-Performing-Assets (NPAs) is
still at very high levels and to start with, some of this excess manpower can cover
areas of debt recovery.
At the same time, one should also take note of the flight of talent from these
nationalized banks to newly set-up private and foreign banks. And, it is these new
banks top officials after migrating from the government banks are targeting at the
top corporate clients and thus poaching into the corporate business, which has been
the mainstay of the nationalized banks. This will soon become a problem of serious
proportion unless the banks initiate steps to stem the flow. It is difficult, to
exclusively address the problem of excess manpower by schemes such as voluntary
retrenchment scheme (VRS) because while attempting to remove dead wood, talent

also takes an exit. Many industries have faced this problem. Also it will be over
simplicity to state that the salaries should be raised because that will only start a
wage war. Instead, the banks should involve the services of international consultants
specialized in this field and take a holistic view of the problem. Retraining and
Rationalization of manpower commands higher priority over Retrenchment of
manpower.
New Products and New technologies:
Nationalized banks have generally been preoccupied with treasury business.
The new product areas that require greater penetration are personal banking, housing
finance, consumer durable finance, auto-finance, internet banking, insurance,
telephone banking et al. Development of these new areas call for heavy investments
and this cash - flow can only generated by privatization. In addition, surplus
manpower once retrained can be absorbed in the new ventures.
All nationalized banks and SBI in particular has the advantage of vast
network of branches and can therefore carry the new business to the remotest corner,
but to make this presence felt the banks have to move at blitzkrieg pace.
CAMEL: TOOL FOR MEASURING THE

PERFORMANCE OF BANKS

An international bank-rating system where bank supervisory authorities rate

institutions according to six factors. The six factors are represented by the acronym
"CAMELS." The six factors examined are as follows:
C

- Capital adequacy reflects the overall financial condition of a

bank & also the ability of the management to meet the need for
additional capital.
A - Asset quality To ascertain the component of non performing
assets as a percentage of the total asset
M - Management quality To measure the efficiency of the
management
E - Earnings To assess the quality of income generated by core
activity
L - Liquidity to measure the ability of a bank to meet the demand
from demand deposits in a particular year

On the Basis of CAMEL Rating Top Ten Banks in Performance

During 2008-2009
Public sector Banks
Bank of India
Corporation Bank
Union Bank of India
Andhra bank
State bank of Patiala

Private sector Banks

Karur vysya bank
Yes bank
City Union Bank
Tamil Nadu Mercantile Bank
South Indian bank

Bank of Baroda
Federal Bank
Indian Overseas Bank
Jammu & Kashmir Bank
State
Bank
of Dhanalakshmi Bank
Hyderabad
Punjab & Sind Bank
Karnataka Bank
Indian Bank

Kotak Mahindra Bank

Foreign Banks
Shinhan bank
Abu Dhabi commercial bank
Mashreqbank P S C
Antwerp Diamond bank N V
Bank of Tokyo-Mitsubishi
UFJ
Calyon Bank
Krung Thai Bank Public Co.
State Bank of Mauritius
Bank of America National
Trust
Mizutto Corporate Bank

Banking Review-2009
NPAs rise for Private Banks, stable for PSBs

Gross NPAs movement of banks in Q1 has shown an interesting trend

Gross NPAs of all Private Banks that we have covered have seen a sequential
rise. However, asset quality of most PSBs remained stable, with flat to lower Gross
NPAs
NIMs of most banks saw a sequential decline
Decline was largely due to PLR cuts by banks towards the end of Q4FY08
Most banks have, however, raised their PLRs and deposit rates by 100-150bps in
June08 and Q1FY09 NIMs should see a marginal improvement in Q2 on account of
PLR hikes However, as deposit re-pricing kicks in with a lag effect, NIMs may again
come under pressure.
Credit spreads saw a decline after a long time
After a long time, the sector saw a decline in credit spreads (Yield on advances
Cost of deposits). Decline in credit spreads was largely due to inability of most
banks to raise PLR in Q1 even as interest rates were rising BOB, IOB, Corpbank and
BOI saw substantial fall in yields on credit book, resulting in compression of credit
spreads Canbank, PNB, Union Bank saw sequential improvement in credit spreads in
Q1
CASA saw a mixed trend
Among Public Sector Banks (PSBs), SBI, Canara and Union saw marginal
improvement in CASA on YoY basis Others like BOB, BOI, OBC saw a decline on
YoY basis Among private banks, AXIS bank lost out due to CBOP merger, ICICI
Bank saw improvement both on YoY and sequential basis
Overall credit growth was robust
Among PSBs BOI, BOB, SBI and IOB saw above 30% growth. Canbank,
Union and PNB were more moderate at 16-20%. Among Private banks, except for
ICICI, most showed above 40+% growth. Even for ICICI, consolidated book
(including overseas book) grew 20% YoY.
Credit growth has been very robust at 26% in Q1 against 24.6% last year
Banks which witnessed high credit growth
Axis, AXIS Bank and Yes Bank among private
BOB, BOI and SBI among PSBs

SBI showed a robust growth across all segments, except for mortgages
International credit grew 46% YoY
SME credit grew 23% YoY
Mid Corporate credit grew 31% YoY
Home Loans grew 17% YoY
Axis among the private banks and BoI amongst
PSBs continues to deliver high NII growth
Credit growth of ICICI, Canara, Union, PNB, OBC was lower than the averag

SWOT ANALYSIS : Banking Sector

Strength
Aggression towards development the Poor

Weakness
Technology

infrastructure.

existing standards by banks. Strong Ineffective risk measures. Presence of

regulatory impact by central Bank to all more number of smaller banks that would
the banks. Presence of intellectual capital likely to be Impacted adversely.
to face the change in implementation with
good quality.
Opportunities

Threats

Increasing Risk management Expertise. Inability to meet the additional Capital

Need significant Connection among, Requirements. Loss of Capital to the
business Credit & risk management and entire banking system due to merger and
Information Technology. Advancement of acquisitions.
technologies. Strong Asset Base would technology.
help in bigger growth.

Huge

investment

in

CHAPTER - 2
INTRODUCTION TO AXIS BANK AND
STATE BANK OF INDIA

The Bank was incorporated on 3rd December1993 and Certificate of business on 14th
December. The Bank transacts banking business of all description. UTI Bank Ltd. was
promoted by Unit Trust of India, Life Insurance Corporation of India, General
Insurance Corporation of India and its four subsidiaries.- The bank was the first
private sector bank to get a license under the new guidelines issued by the RBI.
1997. The Bank obtained license to act as Depository Participant with NSDL and
applied for registration with SEBI to act as `Trustee to Debenture Holders'.
Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5 crores, GIC and
its four subsidiarie Rs1. croreseach. 1998. The Bank has 28 branches in urban and
semi urban areas as on 31st July. All the branches are fully computerised and
networked through VSAT. ATM services

are available in 27 branches.

The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10
each at a premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for
sale of 2,00,00,000 No. of equity shares for cash at a price of Rs 21 per share. Out of
the public issue 2,20,000 shares were reserved for allotment on preferencial basis to
employees of UTI Bank. Balance of3,47,80,000shareswereofferedtothepublic.
The company offers ATM cards, using which account-holders can withdraw money
from any of the bank's ATMs across the country which are inter-connected by VSAT.
UTI Bank has launched a new retail product with operational flexibility for its
customers.
UTI Bank will sign a co-brand agreement with the market, leader, Citibank
NA

for

entering

into

the

highly

promising

credit

card

business.

UTI Bank promoted by India's pioneer mutual fund Unit Trust of India along with
LIC, GIC and its four subsidiaries. 1999 UTI Bank and Citibank have launched an
international co-branded credit card. UTI Bank and Citibank have come together to
launch an international co-branded credit card under the MasterCard umbrella.
UTI Bank Ltd has inaugurated an off site ATM at Ashok Nagar here, taking the total
number of its off site ATMs to 13.m 2000. The Bank has announced the launch of
Tele-Depository Services for its depository clients. UTI Bank has launch of
`iConnect', its Internet banking Product. UTI Bank has signed a memorandum of

understanding with equitymaster.com for e-broking activities of the site.

Infinity.com financial Securities Ltd., an e-broking outfit is typing up with UTI Bank
for a banking interface.
Geojit Securities Ltd, the first company to start online trading services, has
signed a Mowith UTI Bank to enable investors to buy\sell demat stocks through the
company's website. Indiabulls has signed a memorandum of understanding with UTI
Bank. UTI Bank has entered into an agreement with Stock Holding Corporation of
India for providing loans against shares to SCHCIL's customers and funding investors
in public and rights issues. ICRA has upgraded the rating of UTI Bank's Rs 500-crore
certificate of deposit programme to UTI Bank has tied up with L&T Trade.com for
providing customised online trading solution for brokers.
2007
AXIS Bank Ltd has informed that consequent upon handing over charge as
Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI), Shri.
S B Mathur, the Nominee Director of SUUTI has resigned as a Director of the Bank
w.e.f. December 06, 2007. AXIS Bank Ltd has informed that Fitch Ratings on
December 14, 2007, has upgraded the Bank's National Long-term rating to
'AAA(ind)' from 'AA+(ind)'. AXIS Bank Ltd hasappointed Shri K N Prithviraj as an
Additional Director on the Board at Directors of the Bank. Company name has been
changed from UTI Bank Ltd toAxis Bank Ltd.
2008
Axis Bank launches Platinum Credit Card, India's first EMV chip based card
Axis Bank set up its branch at Ilanji at Meenakshi Nagar on the Coutralam-Madurai
road on April 16.
2009
Axis Bank today said its board has recommended the appointment of Shikha
Sharma, currently chief of ICICI group's life insurance business, as its next managing
director and CEO. anches along with 8 extension counters and 3622 ATMs across the
country. Axis Bank, on Wednesday entered into a strategic alliance with Motilal
Oswal, the financial services firm, in order to facilitate the online trading for the

bank's customers. AXIS Bank Ltd has informed that the Board of Directors of the
Bank at its meeting held on June 01, 2009, inducted Smt. Shikha Sharma as an
Additional Director of the Bank. Axis bank has received final clearance from the
Securities and Exchange Board of India (SEBI) to begin its mutual fund operations
and will launch debt and equity schemes soon whereas IDBI Bank is awaiting the
regulator's permit for an entry. Axis Bank opened the new branch at Irinjalakuda while
it has a network of 892 branches, 8 extension counters and 3,806 ATMs across the
country.
2010
Axis Bank Limited has informed that at the meeting of the Board of Directors
held on January 15, 2010, the following decisions were taken: (1) To appoint Dr.
Adarsh Kishore, former Finance Secretary, Government of India and former
Executive Director, International Monetary Fund representing Bangladesh, Bhutan,
India and Sri Lanka, as the Non-Executive Chairman of the Bank, subject to RBI
approval; (2) To appoint Shri S.B. Mathur, former Chairman, LIC and the National
Stock Exchange of India, as an Additional Independent Director, with immediate
effect. AXIS Bank Ltd has appointed Shri M. S. Sundara Rajan, former CMD, Indian
Bank as an Additional Independent Director with immediate effect. The Bank's
Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The
Bank has a very wide network of more than 896 branches and Extension Counters (as
on 31st December 2009). The Bank has a network of over 4055 ATMs (as on 31st
December 2009) 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.

MANAGING DIRECTOR & CEOS LETTER TO THE

SHAREHOLDERS

Adarsh Kishore Chairman

Shikha Sharma Managing Director & CEO
M. M. Agrawal Deputy Managing Director
N. C. Singhal Director
J. R Varma Director
R. H. Patil Director
Rama Bijapurkar Director
R. B. L. Vaish Director
M. V. Subbiah Director
K. N. Prithviraj Director
V. R. Kaundinya Director
S. B. Mathur Director
P. J. Oza Company Secretary
S. K. Chakrabarti Executive Director (Retail Banking, SME and Agri.)
V. Srinivasan Executive Director (Corporate Banking)
Somnath Sengupta Executive Director and CFO
Snehomoy Bhattacharya Executive Director
S. S. Bajaj President & Chief Compliance Officer
P. Mukherjee President - Large Corporates & International Banking
Vinod George President - Wholesale Banking Operations
M. V. Subramanian President - Business Banking
Rajagopal Srivatsa President - IT and Retail Banking Operations
S. K. Supekar President & Chief Audit Executive
B. Gopalakrishnan President - Law
Manju Srivatsa President - Retail Banking (Assets)
Bapi Munshi President & Chief Risk Officer
C. Babu Joseph President - Advances
Sonu Bhasin President - Retail Banking (Liabilities)
Sanjeev K. Gupta President - Finance & Accounts and Investor Relations
V. K. Bajaj President - Mid Corporates
Sidharth Rath President - Infrastructure Business
R. K. Bammi President - North Zone
S. K. Nandi President - West Zone
S. K. Mitra President - East Zone
C. P. Rangarajan President - South Zone
UNIT : AXIS BANK LIMITED
Plot No. 17 to 24, Vithalrao Nagar, Madhapur, Hyderabad - 500 081
Tel. No. : 040-23420815 to 23420824 Fax No. : 040-23420814

REGISTERED OFFICE
rd 'Trishul', 3 Floor, Opp. Samartheshwar Temple, Law Garden, Ellisbridge,
Ahmedabad - 380 006.
Tel. No. : 079-2640 9322 Fax No : 079-2640 9321 Email : p.oza@axisbank.com,
rajendra.swaminarayan@axisbank.com
Web site : www.axisbank.com
Central Office
th Maker Towers 'F', 13 Floor, Cuffe Parade, Colaba, Mumbai - 400 005
HIGHLIGHTS
Profit after tax up 38.51% to Rs.2515.53 crores
Net Interest Income up 35.76% to Rs.5004.40 crores
Fee & Other Income up 23.80% to Rs.3123.40 crores
Deposits up 20.38% to Rs.141300.22 crores
Demand Deposits up 30.38% to Rs.66029.54 crores
Advances up 27.94% to Rs.104343.12 crores
Retail Assets up 29.72% to Rs.20822.90 crores
Network of branches and extension counters increased from 835 to1035
Total number of ATMs went up from 3,595 to4293
Net NPA ratio as a percentage of net customer assets up to0.36% from 0.35%
Earnings per share (Basic) increased from Rs. 50.61 to Rs.65.78
Proposed Dividend up from 100% to120%
Capital Adequacy Ratio stood at 15.80%as against the minimum regulatory
norm of 9%
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
Core values
Customer satisfaction through
Providing quality service effectively and efficiently
smile, it enhances your face value a service quality stressed on
Periodic customers service audits
Maximization of stakeholder value
GOAL AND OBJECTIVES
AXISs main goals are as follows:
Develop close relationships with individual households,
Maintain its position as the premier housing finance institution in the
country,

 Transform ideas into viable and creative solutions,

Provide consistently high returns to shareholders, and
To grow through diversification by leveraging off the existing client base.
Business Objectives
The primary objective of AXIS is to enhance residential housing stock in the
country through the provision of housing finance in a systematic and professional
manner, and to promote home ownership. Another objective is to increase the flow of
resources to the housing sector by integrating the housing finance sector with the
overall domestic financial markets.
Promoters
Axis Bank Ltd. has been promoted by the largest and the best Financial
Institution of the country, UTI. The Bank was set up with a capital of Rs. 115 crore,
with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four
subsidiaries contributing Rs. 1.5 crore each.
Shareholding 24.09%
Erstwhile Unit Trust of India was set up as a body corporate under the UTI
Act, 1963, with a view to encourage savings and investment. In December 2002, the
UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of
Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the
bifurcation of UTI into 2 entities, UTI-I and UTI-II with effect from 1st February
2003. In accordance with the Act, the Undertaking specified as UTI I has been
transferred and vested in the Administrator of the Specified Undertaking of the Unit
Trust of India (SUUTI), who manages assured return schemes along with 6.75% US64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.
The Government of India has currently appointed Shri K. N. Prithviraj as the
Administrator of the Specified undertaking of UTI, to look after and administer the
schemes under UTI - I, where Government has continuing obligations and
commitments to the investors, which it will uphold.

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 special offers on premium brands, movie
privileges, special events and lots more - especially for our Priority Banking
customers
Gold Credit Card
As an added privilege, Priority Banking customers may also apply for a Gold
Standard Credit Card and Gold Standard Secured Credit Card without any additional
fee, subject to the applicable terms and conditions.
Priority Banking customers would also be eligible for a 50% reduction on the
Issuance Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card. Rs. 500
will be charged as the annual maintenance charge for Priority Banking customers,
subject to the applicable terms and conditions

PERFORMANCE HIGHLIGHTS

PROFITABILITY

Sustained Growth : Robust Core Revenues

CONSISTENT NET PROFIT GROWTH

NET INTEREST MARGIN COST OF FUNDS

GROWING NET INTEREST INCOME

GROWING DEMAND DEPOSITS

FEES

CAPITAL MARKETS

A domain player in placement syndication of debt isssues.

Ranked No. 1 in Bloomberg league for India Domestic Bonds for calendar
year 2008 and till quarter ended 30th June 09

Ranked No. 1 Debt Arranger by Prime Database for the quarter ended 30th Jun
09

Recent Awards:
-

Asia Money 2009 : Best Domestic Debt House in India

Euromoney 2008 : Best Debt House in India

Finance Asia 2008 : Best Bond House in India

IFR Asia: India Bond House 2008

SAVINGS BANK GROWTH

SHAREHOLDING

ABOUT STATE BANK OF INDIA

STATE BANK OF INDIA (SBI)

The evolution of State Bank of India can be traced back to the first decade of
the 19th century. It began with the establishment of the Bank of Calcutta in Calcutta,
on 2 June 1806. The bank was redesigned as the Bank of Bengal, three years later, on
2 January 1809. It was the first ever joint-stock bank of the British India, established
under the sponsorship of the Government of Bengal. Subsequently, the Bank of
Bombay (established on 15 April 1840) and the Bank of Madras (established on 1
July 1843) followed the Bank of Bengal. These three banks dominated the modern
banking scenario in India, until when they were amalgamated to form the Imperial
Bank of India, on 27 January 1921.
An important turning point in the history of State Bank of India is the launch
of the first Five Year Plan of independent India, in 1951. The Plan aimed at serving
the Indian economy in general and the rural sector of the country, in particular. Until
the Plan, the commercial banks of the country, including the Imperial Bank of India,
confined their services to the urban sector. Moreover, they were not equipped to
respond to the growing needs of the economic revival taking shape in the rural areas
of the country. Therefore, in order to serve the economy as a whole and rural sector in
particular, the All India Rural Credit Survey Committee recommended the formation
of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the take over of the
Imperial Bank of India, and integrating with it, the former state-owned or stateassociate banks. Subsequently, an Act was passed in the Parliament of India in May
1955. As a result, the State Bank of India (SBI) was established on 1 July 1955. This

resulted in making the State Bank of India more powerful, because as much as a
quarter of the resources of the Indian banking system were controlled directly by the
State. Later on, the State Bank of India (Subsidiary Banks) Act was passed in 1959.
The Act enabled the State Bank of India to make the eight former State-associated
banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried
out by the 480 offices comprising branches, sub offices and three Local Head Offices,
inherited from the Imperial Bank. Instead of serving as mere repositories of the
community's savings and lending to creditworthy parties, the State Bank of India
catered to the needs of the customers, by banking purposefully. The bank served the
heterogeneous

financial

needs

of

the

planned

economic

development.

Branches
The corporate center of SBI is located in Mumbai. In order to cater to different
functions, there are several other establishments in and outside Mumbai, apart from
the corporate center. The bank boasts of having as many as 14 local head offices and
57 Zonal Offices, located at major cities throughout India. It is recorded that SBI has
about 10000 branches, well networked to cater to its customers throughout India.
ATM Services
SBI provides easy access to money to its customers through more than 8500
ATMs in India. The Bank also facilitates the free transaction of money at the ATMs of
State Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd by using the State Bank ATM-cum-Debit (Cash Plus) card.
Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and
several non-banking subsidiaries. Through the establishments, it offers various
services including merchant banking services, fund management, factoring services,
primary dealership in government securities, credit cards and insurance.

PRODUCTS AND SERVICES

Personal Banking

SBI Term Deposits SBI Loan For Pensioners

SBI Recurring Deposits Loan Against Mortgage Of Property

SBI Housing Loan Loan Against Shares & Debentures

SBI Car Loan Rent Plus Scheme

SBI Educational Loan Medi-Plus Scheme

Contact
State Bank of India
CorporateCentre
MadamCamaRoad
Mumbai400021
India
Website: www.statebankofindia.com
KEY AREAS OF OPERATION
The business operations of SBI can be broadly classified into the key income
generating areas such as National Banking, International Banking, Corporate
Banking, & Treasury operations. The functioning of some of the key divisions is
enumerated below:
a)

CORPORATE BANKING
The corporate banking segment of the bank has total business of around

Rs1,193bn. SBI has created various Strategic Business Units (SBU) in order to
streamline its operations.
These SBUs are as follows:

Corporate Accounts

Leasing

Project Finance

Mid Corporate Group

b)

Stressed Assets Management

NATIONAL BANKING
The national banking group has 14 administrative circles encompassing a vast

network of 9,177 branches, 4 sub-offices, 12 exchange bureaus, 104 satellite offices

and 679 extension counters, to reach out to customers, even in the remotest corners of
the country. Out of the total branches, 809 are specialized branches.
This group consists of four business group which are enumerated below:

c)

Personal Banking SBU

Small & Medium Enterprises

Agricultural Banking

Government Banking
INTERNATIONAL BANKING
SBI has a network of 73 overseas offices in 30 countries in all time zones and

correspondent relationship with 520 international banks in 123 countries. The bank is
keen to implement core banking solution to its international branches also. During
FY06, 25 foreign offices were successfully switched over to Finacle software. SBI has
installed ATMs at Male, Muscat and Colombo Offices. In recent years, SBI acquired
76% shareholding in Giro Commercial Bank Limited in Kenya and PT Indomonex
Bank Ltd. in Indonesia. The bank incorporated a company SBI Botswana Ltd. at
Gaborone.
d)

TREASURY
The bank manages an integrated treasury covering both domestic and foreign

exchange markets. In recent years, the treasury operation of the bank has become
more active amidst rising interest rate scenario, robust credit growth and liquidity
constraints. The bank diversified its operations more actively into alternative assets
classes with a view to diversify the portfolio and build alternative revenue streams in
order to offset the losses in fixed income portfolio. Reorganization of the treasury
processes at domestic and global levels is also being undertaken to leverage on the

operational synergy between business units and network. The reorganization seeks to
enhance the efficiencies in use of manpower resources and increase maneuverability
of banks operations in the markets both domestic as well as international.
e)

ASSOCIATES & SUBSIDIARIES

The State Bank Group with a network of 14,061 branches including 4,755

branches of its seven Associate Banks dominates the banking industry in India. In
addition to banking, the Group, through its various subsidiaries, provides a whole
range of financial services which includes Life Insurance, Merchant Banking, Mutual
Funds, Credit Card, Factoring, Security trading and primary dealership in the Money
Market.
1)

Associates Banks:
SBI has seven associate banks namely

State Bank of Indore

State Bank of Travancore

State Bank of Bikaner and Jaipur

State Bank of Mysore

State Bank of Patiala

State Bank of Hyderabad

State Bank of Saurashtra

All associate banks have migrated to Core Banking (CBS) platform. Single

window delivery system has been introduced in all associate banks. SBIs seven
associate banks are the first amongst the public sector banks in India to get fully
networked through CBS, providing anytime-anywhere banking to its customers to
facilitate a bouquet of innovative customer offerings.
2)

Non-Banking Subsidiaries/Joint Ventures

i)

SBI Life:

ii)

SBI Capital Markets Limited (SBICAP)

iii)

SBI DFHI LTD

iv)

SBI Cards & Payments Services Pvt. Ltd. (SBICSPL)

v)

SBI Funds Management (P) Ltd. (SBIFMPL)\

vi)

Human Resources

NON BANKING SUBSIDIARIES:

The Bank has the following Non-Banking Subsidiaries in India :

SBI Capital Markets Ltd

SBI Funds Management Pvt Ltd

SBI Factors & Commercial Services Pvt Ltd

State Bank of Indias operating profit and net profit for Q209 surged 54.5%
and 40.2% yoy, respectively, exhibiting a strong performance.
Advances growth to slow down: SBI recorded a handsome 37% yoy growth
in advances, translating into an 18% sequential growth in the first half. However,
this momentum is likely to decelerate considerably in the second half of 2008-09.
Robust rise in deposits: State Bank of Indias deposit base surged 28% yoy
and its CASA ratio improved from 39.45% to 39.71% over the same period. On a
quarterly basis, the banks deposits grew by 10.3%.
Improvement in the credit-deposit ratio: The Banks credit-deposit ratio
increased from 68.9% in Q208 to 73.8% this quarter. This was following a
robust 37% yoy increase in advances, which exceeded the 28% growth in
deposits over the same period.
Increase in the NII and NIM: SBIs net interest income (NII) increased by 45%
yoy to reach Rs. 54.6 bn.
Profitability: The Banks ROE declined from 17.38% for H108 to 14.63%
for H109. The return on assets (annualized), however, increased from 0.99%
in Q208 to 1.13% in Q209.

CHAPTER - 3

SERVICE QUALITY

SERVICE AND ITS CHARACTERSTIC

Banks are investing a lot of money on web technologies and are therefore
expecting numerous benefits on their investments. The intensifying competition on
todays market has forced banks to seek profitable ways to differentiate themselves.
Companies have moved their focus from products and services toward a customercentered focus as a tool to gain competitive advantages and a great return on already
made investments. The success in these customer- centered businesses is to deliver high
service quality. Already in the end of the 1980s researchers were determined that if the
companies wanted to succeed they needed to give the development of service quality
the highest priority. The delivery of high service is a challenging task and to provide
their customers with high service quality companies must know what their customers
want and need. Because of factors that are unique to services, companies face
difficulties while delivering service quality: intangibility, heterogeneity, inseparability
and perishability. Because services are intangible they can not be felt, smelled or tasted
which makes it hard for customers to evaluate the service quality. Furthermore, services
are not possible to store for later use, they are consumed immediately. Therefore
companies need to offer other visible indicators where customers could evaluate the
delivered service quality. Services heterogeneity means that services are not produced
by single unit and then distributed to customers. This means that the quality of services
varies depending on who provides them as well as when, where and how services are
provided.
Here the focus is on the employee and the way in which the service is delivered
and perceived by the customer will depend on the employee. Services are perishable
which means that they are consumed when they are provided and can not be stored.
Service has many definitions, one definition has been chosen that describe it in
summary: A service is something that can be bought and sold, but which you cannot
drop on your foot. Both managers and academic researchers have in recent years given
a great deal of interest in measurement of customer satisfaction and perceived service
quality. Spreng et al (1996) discuss the difference between customer satisfaction and

perceived service quality and suggest that these are not the same and that companies
need to take both into consideration. This because companies need to know whether
they should focus on having satisfied customers or to deliver the maximum service
quality. Perceived service quality is according to Parasuraman et al a global judgment
of, or, attitude relating to the superiority of the service and this definition can be found
in other service literature. The definition of the customer satisfaction has not the same
clear definition but Spreng et al use the definition an evaluative, affective or emotional
response.

SERVICE QUALITY MODEL

THE SERVICE QUALITY MODEL

THE GAPS IN THE MODEL

Gap 1: Customer Expectations Management Perceptions Gap

Gap 2: Management Perceptions - Service Quality Specifications Gap

Gap 3: Service Quality Specifications - Service Delivery Gap

Gap 4: Service Delivery - External Communications Gap

Gap 5: Expected Service - Perceived Service Gap (or the Service Performance
Gap)

Customer Expectations - Management Perceptions Gap

Collect data on customer expectations

Relate customer data to overall service strategy

Increase management contact with customers

Increase internal communications

Track performance on satisfaction

Inappropriate Quality Service Standards

Leadership commitment

Cant be done - create possibilities

Standardise tasks

Goal setting - based on service goals

The Service-Performance Gap.

Provide data on performance, on definition of standards for excellent service

Provide opportunity to change and to grow

Provide training - educate employees about customers

Harmonise roles - define in customer service terms

Develop team environment - work together

Empower people to solve problems

Provide support to employees to create highperformance service

The Promise-Delivery Gap

Break down barriers between departments

Communicate freely

Understand and mentor internal customers

Standardise and communicate policies and procedures

Communicate standards, policies and procedures to customers

Emphasise primary characteristics\

Manage customer expectations

Expected Service - Perceived Service Gap

This gap is the result of the other gaps

This is the gap the customer notices

Feedback on this gap (complaints) is diagnostic of the other gaps

Here is where we obtain information that provides the imperative for

improvement.

Proactively seeking feedback here is essential to improvement Service

Dimensions: The Long List

Reliability

Responsiveness

Competence

Access

Courtesy

Communication

Credibility

Security

Understanding/Knowing the customer

Tangibles

SERVICE QUALITY OF AXIS BANK

They will act fairly and reasonably in all our dealings with you by:

Meeting the commitments and standards for the products and services we
offer, and in the procedures and practices our staff follow;

Making sure our products and services meet relevant laws and regulations;

ensuring that our dealings with you will rest on principles of integrity and
transparency.

They will help you to understand how our financial products and services work
by:

giving you information about the products ;

explaining their financial implications.

General Information
Before you become a customer, we will:

Give you information explaining the key features of the services and products
you are interested in

Tell you what information they need from you to prove your identity and
address in order to comply with legal and regulatory requirements, and Once
you have chosen an account or service, they will tell you how it works. When
you open a single account or a joint account, they will give you information on
your rights and responsibilities

Interest Rates
You can find out about our interest rates by:

calling our branch;

looking at our website; or

asking our designated staff.

When you become a customer, we will give you information on the interest

rates which apply to your accounts and the periodicity of payment of interest. In case
of loan accounts you will be given the relevant information relating to the interest
rates. We will explain how we apply interest to your account.

Loans And Advances

If they offer you an overdraft, or an increase in your existing overdraft limit,
we will tell you if your overdraft is repayable on demand or otherwise.
Wherever possible, reasons for rejection of loans will be conveyed to you

Changes in interest rates

When they change the interest rates on their products, they will update the
information on our website.
At the time of opening of the account they will inform you of the rate at which
interest is paid on your savings deposits, how it is calculated and its periodicity

Charges
When you become a customer, we will give you details of any charges
applicable to the products chosen by you.
You can also find out about our charges by asking our staff at the branch or by
looking at our website.
If they increase any of these charges or introduce a new charge, you will be
notified before the revised charges are implemented.

They will tell you the charge for any other service or product before we provide that
service or product, and at any time you want such information

Terms And Conditions

When you become a customer or accept a product for the first time, they will
give you the relevant terms and conditions for the service you have asked us to
provide.

Changes to Terms and Conditions

When you become a customer, they will tell/notify you about changes to terms
and conditions through a separate communication, or through their statement of
accounts or the Bank's Website.
Normally, changes in your account facility, if any, will be made with
prospective effect and with adequate notice. If the changes are to your disadvantage,
you may close the account at any time up to two months from the date of the notice
without having to pay any extra charges or interest for doing this.

Advertising And Marketing

They will make sure that all advertising and promotional material is clear,
fair, reasonable and not misleading. They will seek your specific consent for giving
details of your name and address to any third party, including other entities in our
group, for marketing purposes. We would like to provide you with the entire range of
financial services and products. Some of the products offered could be from our
associates / group companies or companies with whom we have specific
arrangements. They will inform you, if you so desire, of the third party products
marketed at our branch.
They might enter into arrangements with third party service providers for
marketing our products. They will however tell you about their associate / group
entities or companies having business tie-up arrangements with us if you so desire.

Statements

To help you manage your operative account [Savings / Checking / Overdraft]

and check entries on it, they will give you account statements at regular intervals.
Savings Bank & Current account statements are directly sent to customers address at
monthly intervals. No statements are sent to customers for term deposit accounts.
The Bank at its discretion and with your concurrence may send statement of
accounts through e-mal. Do check with the branch in case you need such services.

Cash Transactions
You should count notes and ensure correctness before leaving the cash
counter. The branch may have restrictions on certain cash transactions and you are
advised to check with the branch before contemplating any large cash transactions.

Fund Transfer
If you want to transfer money, they will give you:

A description of the services and how to use them time involved in the
remittance of funds and the reasons for possible delays

The exchange rate applied when converting to another currency, and

Details of any commission or charges which you will have to pay.

If money is transferred to your bank account from abroad, they will tell you

the original amount received and charges, if any at our end.

Confidentiality
They will treat all your personal information as private and confidential [even
when you are no longer a customer]. They will not reveal transaction details of your
accounts to a third party, including entities in our group, other than in the following
cases:

Information revealed part of the outsourcing arrangement:

Axis Bank, Hong Kong Branch has outsourcing arrangements with Axis Bank,
India. The details are given below:

The Head Office of AXIS Bank Ltd. (AXIS Bank), having its place of
business in India and carrying on the business of banking in India as licensed
under the applicable laws and regulations of India, has decided to implement
the system to integrate and centrally manage and process the back office
operations of its overseas branches, including AXIS Bank Ltd., Hong Kong, at
the head office level in India.

In implementing the outsourcing system the Hong Kong Branch of the Bank
and AXIS Bank have entered into a Master Service Level Agreement (the
"Agreement" which includes such agreement as from time to time amended
and varied) which, provides that customers' data confidentiality under the
Personal Data (Privacy) Ordinance and Hong Kong's common law on
customer secrecy shall be recognized and protected.

If they have to give the information by law

If there is a duty towards the public to reveal the information

If you ask them to reveal the information, or if they have your permission to
provide such information to their group/ associate /entities or companies when
they have tie-up arrangements for providing other financial service products.

Communication Link
Please make sure you let us know as soon as possible when you change your:

Name

Address

Phone number or

e-mail address [if this is how we communicate with you].

Checking your account

They recommend that you check your statement regularly. If there is an entry,
which seems to be wrong, you should tell them as soon as possible so that they can
sort it out. If they need to investigate a transaction on your account you should cooperate with them and any other authority, if they need to involve them.

Taking care
Taking care of your cheques and other security information is essential to help
prevent fraud and protect your accounts. Please make sure that you follow the advice
given below:

Do not keep your cheque book which will be accessible by unauthorized

persons

Do not keep the blank cheque leaves signed

Do not allow anyone else to use your password or other security information

Always learn your password and other security information and destroy the
notice as soon as you receive it

Never write down or record your password or other security information

Always take reasonable steps to keep your cheque book in your personal
custody and your password and other security information secret at all times

Never give your account details password or other security information to

anyone unless you know who they are and why they need them.
If you are paying a cheque into a bank account, always write on the cheque the

name of the account holder [ABC Bank Account - XYZ]. You should draw a line
through unused space on the cheque so unauthorized person cannot add extra numbers
or names. Ignore any e-mail asking for your password or account number. What to do
if you lose your chequebook, or if someone else knows your password?
It is essential that you send a written communication to us immediately if you suspect
or discover that:

your cheque book has been lost or stolen or

someone else knows your password or other security information.

Cancelling Payments

If you want to cancel a payment or series of payments you have authorised,

you should do the following:

To stop payment of a cheque or cancel standing instruction given, you must

tell us in writing

To cancel a direct debit, you can inform the originator of the direct debit

Feedback and Suggestions

they will always put their customers first and treat your feedback with the
utmost importance. In order to improve their services and fulfill our role as your right
partner, they would like to know more about your needs and hear your feedback.
Please provide feedback on our services. Your suggestions will help us to improve our
services. Such suggestions / feedback may be sent to customercarehk@axisbank.com

What can a complaint be about?

The complaint can be about:

Any aspect of the services provided by the branch

The behaviour and decision of the staff

Practices, Policies and Procedures

Where to make a Complaint?

The details of the Branch Complaint Handling Officer along with their e-mail
IDs are given below:
Mr. Cyril Anand,
Chief Executive Officer
Axis Bank Ltd.
Hong Kong Branch
Room No.805 - 809
Alexandra House,
18 Chater Road,
Central Hong Kong

Tel No. : 00852-36564000

Fax No : 00852- 2522 7821
Email : complaintshk@axisbank.com:
Level One
The complaints will be resolved by the Complaint Handling Officer within 7
working days from the date of receipt.
Level Two
In case the complaint remains unresolved after 7 working days or is
unsatisfactorily resolved, the customer has the option to escalate the complaint to the
President, International Banking Department at the Central Office,by mailing to
cib.co@axisbank.com, who will arrange to resolve the complaint within 10 working
days from the date of receipt. The customer has the option of escalating the
unresolved or unsatisfactory resolved complaints to the Chief Compliance Officer at
Central office after expiry of 10 working days by mailing to cco@axisbank.com
Level Three
In case the customer is not satisfied with the final resolution, the customer
may consider escalating the complaint to the local statutory body/regulator. In such a
situation the branch would provide to the relevant local authority the complete details
of the complaint including the investigation details and the related documents.

What is the Complaints Escalation Procedure?

If unsatisfied with the resolution by the branch, the customer can escalate
complaint to the President, International Banking Department at the Central
Office by emailing to cib.co@axisbank.com

President, International Banking Department at the Central Office will arrange

to resolve the complaint with in 10 working days.

The customer has the option of escalating the unresolved or unsatisfactory

resolved complaints to the Chief Compliance Officer at Central Office after
expiry of 10 working days by emailing to cco@axisbank.com

In case the customer is not satisfied with the outcome of resolution, the
customer may consider escalating the complaint to the local, statutory
body/regulator

CHAPTER - 4

RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Research Methodology is a way to systematically study & solve the research

problems. If a researcher wants to claim his study as a good study. He must clearly
state the methodology adopted in conducting the research so that it may be judged by
the reader whether the methodology of work done is sound or not.
MEANING OF RESEARCH
Research is defined as a scientific & systematic search for pertinent
information on a specific topic. Research is an art of scientific investigation.
Research is systematized effort to gain new knowledge.
The Research Methodology here includes :

Type of Research

Research Problems

Research Design, Hypothesis

Source of Data

Sampling Design

Sample Size

Data collection method

Analysis of Data

Interpretation

Beneficiaries of project

Objective of Study

Limitations

TYPES OF RESEARCH
The basic types of research are as follows:

Analytical Research
In this the researcher has to use facts or information already available, and
analyze these to make a critical evaluation of material.

Quantitative Research
It is based on measurement of a quantity or an amount.

RESEARCH PROBLEM
The first step while conducting research is careful definition of Research
Problem. It refers to some difficulty, which a researcher experiences in the context of
either a theoretical or practical situation and wants to obtain a solution for the same.
My research is related to working capital problem.

RESEARCH DESIGN
A research design is a framework for the study and is used as a guide in
collection and analyzing the data. It is a strategy specifying which approach will be
used for gathering and analyzing the data. It also includes the time and cost budget
since most studies are done under these two constraints.

SOURCES OF DATA
The task of data collection begins after a research problems has been defined
and research design/plan chalked out. While deciding about the sources of data
collection to be used for the study, the researcher problem defines the nature of
sources of the sources of data.

Primary Data
Primary Data are those, which are collected afresh and for the first time. It
may be described as those data that have been observed and recorded by the
researchers for the first time to their knowledge.

Secondary Data
Secondary Data are those which have been collected by someone else and
which have already been through the statistical process. For example libraries,
literature, periodicals etc.
I have used secondary data in my study.

SAMPLING DESIGN
A Sample Design is a definite plan for obtaining s sample from a given
population. It refers to the technique or the procedure the researcher would adopt in
selecting items for the sample. Sample Design is determined before data are collected.

SAMPLE SIZE
A part of Population is known as sample. The process of drawing a sample
from a larger population is called Sampling. Following sampling is designed in order
to execute the survey.
Sample Area: : KURUKSHETRA
Sample size: 100 AXIS customers

100 SBI customers

Sample Design: Samples selected in the survey are those who are the
customers of either AXIS or SBI or both

UNIVERSE AND SURVEY POPULATION

The aggregate of all the units pertaining to a study is called Population or
Universe.
The universe for the study is considering the whole world for different sources
of fund.

DATA COLLECTION METHOD

There are many different methods for data collection. The researcher would
have to decide regarding the type of data and accordingly he will have to select one or
the other method of data collection. Important ones for collecting primary data are:
Observation method, interviews, questionnaires, through schedules etc

ANALYSIS OF DATA
The collected data in the study has been presented and analyzed using the
various graphs for satisfaction level, score of various factors on the particular
dimensions, and overall dimension score and is compared with other service.
Also data is analyzed through performance matrix

INTERPRETATION
Interpretation is concerned with relationships within the collected data,
partially overlapping analysis. Interpretation also extends beyond the data of the study
of other research, theory and hypothesis..

BENEFICIARIES OF PROJECT:

Beneficiary of this project is to the bank, to improve the customer satisfaction

in the dimension in which they are lagging.

Key findings and analysis will helpful to them for provide better services to
customers.

For researchers, to know the competitive advantage of both the banks and their
services.

OBJECTIVE OF THE STUDY

Any project to be meaningful should have certain objectives. The main

objectives and the specific objectives met by the project undertaken are.:
1.

The main objectives of this study were to examine the level of service
quality in Private banking industry from the perspective of bank customers

2.

To assess and compare the overall service performance of SBI and

AXIS bank.

3.

To know in which service quality dimension the bank is performing

well and in which dimension it needs improvement.

4.

To know customers requirements or expectation for service.

5.

To examine Gender wise customers expectations and perceptions of

service quality provided by the Private banks in Hissar District

6.

To identify whether there is difference in expectation & perception of

service quality of male & female customers.

7.

To identify the main attributes of service quality in which male &

female (separately) are more

LIMITAIONS OF STUDY
The study was restricted to two banks, so the competitive scenario could not
be studied.
Inadequate time was the major constraint during the whole project.
All the answers given by the respondents have been assumed true.
It difficult to gather sufficient data relating to financial management.
Although, I tried my best to learn the possible during my stay, but still time
and resources constraints came in my way to learn more.
Data could not be available hence, it became difficult to analyze the
companys performance .
Although, all the employees of AXIS are highly co-operative and devoted their
valuable time on me, but still I was unable to use their knowledge due to their
busy schedule.

CHAPTER - 5
ANALYSIS AND INTERPRETATION

1.

Modern looking equipment

 From the graph it is clearly seen that for AXIS and SBI most of the
respondents are fall in satisfaction range.
For AXIS highest frequency is observed in satisfactory level, whereas
for SBI highest frequency is observed in neither satisfied nor
dissatisfied range.
So, for modern looking equipment AXIS bank has more number of
satisfied responses as compared to SBI.

2.

Visually appealing physical facilities

 For both the banks highest frequency is observed in neither satisfied

nor dissatisfied range.
And most of the respondents for both the banks are less satisfied as far
as visually appealing physical facilities concerned, as in level 3 i.e.
dissatisfied more numbers of respondents are there for both the banks.
AXIS bank has more satisfied customers, so for visually appealing
physical facilities AXIS bank has good response as compared to SBI.

3.

Neat appearing employees

 From the graph, SBI respondents are showing more positive response then
that of AXIS respondents, and also respondents fall in satisfied range is
more in case of SBI then that of AXIS.
Also there are more numbers of respondents in moderate and strongly
agreed zone for SBI as compared to AXIS. And for AXIS most of the
respondents are present in 3,4 and 5 level of satisfaction, so respondents
are not satisfied for AXIS.
So for neat appearing employees SBI respondents has more satisfaction
level.

4.

Visually appealing materials associated with the services

 Here, for AXIS bank there are slightly more numbers of respondents which are
fall in satisfied range then from SBI. Also most of the respondents fall in
neither dissatisfied nor satisfied and satisfied area for both the banks.
Here it is difficult to say that which bank is performing better in visually
appealing materials associated with the services.

5.

Keeping promise to do something by certain time

 Here from the graph it is clearly seen that respondents of SBI are having more
satisfaction than that of AXIS, as more numbers of respondents are fall in
satisfaction level.
For both the banks most of the respondents are fall in neither satisfied nor
dissatisfied level and satisfied level. So for this factor both the banks are
relatively not performing well as per resondents.
Overall for this question SBI respondents are showing more satisfaction than
that of AXIS.

6.

Showing sincere interest in solving a customers problem

 Here from the graph, SBI and AXIS have nearly the same kind of responses,
but AXIS has slightly more numbers of satisfied repondents as compared to
SBI for showing sincere interest in solving a customers problem, so for this
factor AXIS is performing slightly well over SBI.
Here both the banks have more numbers of respondents who are fall in level 4
i.e. neither satisfied nor dissatisfied so both the banks can improve the level of
satisfaction by improving on this variable.

7.

Performing the service correctly the first time

 Here for SBI highest frequency is observed in satisfied level, whereas for
AXIS it is in neither dissatisfied nor satisfied level.
Total number of respondents for SBI are more in satisfaction level, whereas
for AXIS most of the respondents are fall in dissatisfied and neither
dissatisfied nor satisfied level.
So for performing the service correctly the first time SBI respondents are
agreed compared to AXIS respondents.
Also for this factor AXIS is underperforming compared to SBI.

8.

Providing the service at the time the service was promised

 From the graph, the responses are nearly similar for both AXIS as well as SBI.
So for providing the service at the time the service was performed both the
bank has similar kind of responses. Hence there is not so much difference in
providing the service at the time the service was performed.
Also there are very few respondents for both the banks which are highly or
moderatley satisfied, so both the banks need to improve satisfaction level on
this factor, so satisfaction level of their customers will improve.

9.

Insisting on error free records

 There is quite large difference among the respondents for insisting on error
free records, SBI respondents are showing

more positive response

as

compared to AXIS respondents.

Also AXIS respondents are more on dissatisfaction level than SBI
respondents.
So respondents of SBI are agree with the statement as compared to AXIS
respondents.
For this factor AXIS need improvement so satisfaction level of their customer
will improve, whereas for SBI they are performing well.

10.

Employees telling customers exactly what services will be

performed

 Here from the graph it is clearly seen that almost all the respondents for both
the banks are falling in satisfied and neither dissatisfied nor satisfied level.
But number of respondents for SBI are more satisfied for employees telling
customers exactly what services will be performed.
Also there are very few respondents which are moderately and highly agreed
with the statements for both the banks.
So for both the banks there is a scope of improvement on this factor so
satisfaction level of customers can be improved.

11.

Employees giving prompt service to customers

Here for SBI highest frequency is observed in satisfaction level, whereas for
AXIS it is in neither dissatisfied nor satisfied level.
So for employees giving prompt service to customers SBI respondents are
more agreed over AXIS respondents.

 Here AXIS need improvement as there are less numbers of satisfied

respondents.

12.

Employees always being willing to help customers

Here, more number of the respondents of AXIS is falling in satisfaction level

as compared to SBI respondents.
SBI respondents are mainly falling in lower side of satisfaction level.

 So, for the statement employees always being willing to help customers AXIS
respondents are more agreed than of SBI respondents.

13.

Employees are never too busy to respond to

customers requests

 From the graph, SBI respondents are more in number in satisfaction level as
compared to AXIS respondents.
Highest frequency of respondents for both AXIS and SBI is fall in neither
dissatisfied nor satisfied level.
Also there are quite more numbers of respondents for both the banks which
are dissatisfied.
So, for the statement that employees are never too busy to respond to
customers request SBI respondents are more agreed as compared to AXIS
respondents, the satisfaction level is slightly low for both the banks.

14.

The behavior of employees instilling confidence in their

customers

 From the graph it is seen that, there are more number of respondents for SBI
who are satisfied as compared to AXIS respondents.
Also most of the respondents for both the banks are falling in neither
dissatisfied nor satisfied and satisfied level.
So for the statement that the behavior of employees instilling confidence in
their customers, SBI respondents are more agreed as compared to AXIS
respondents.

15.

Customers feeling safe in their transactions

Here, for SBI highest frequency of respondents is observed in satisfied level,

whereas for AXIS it is in moderately satisfied level.

 But for AXIS respondents they are nearly equally distributed in neither
dissatisfied nor satisfied to highly satisfied level, whereas for SBI in satisfied
level there is quite large peak of respondents.
So for the staement customer feeling safe in there transactions AXIS has more
number of respondents which are moderate to highly satisfied level and for
SBI respondents in satisfied zone are more.
Also here for AXIS numbers of respondents in moderate and highly satisfied
are more compared to SBI, but due to large number of respondents in satisfied
level for SBI lead them to more stronger position.

16.

Employees being consistently courteous with their customers

 Here from the graph, respondents of both the banks have nearly the same type
of responses, except in level 5 i.e. satisfied where more noumber of AXIS
respondents are fall.
For both the banks, there are more numbers of satisfied respondents so both
the banks are performing well on this criteria.
So here for the statement employees being consistently courteous with their
customers, AXIS has slightly more number of satisfied respondents.

17.

Employees having the knowledge to answer customers

questions

 For this question the respondents are distributed all over the satisfaction scale
for both the banks.
So here there are more number of dissatisfied respondents as well as more
number of satisfied respondents for both the banks.
Highest frequency is observed in level 5 i.e. satisfied respondents.
But there are more number of respondents for SBI who are agreed with
statement hence for employees having the knowledge to answer customers
question SBI is ahead of AXIS.

18.

Giving customers indivdual attention

 Here for AXIS there are more numbers of respondents who are agreed with the
question as compared to SBI respondents.
But here there is minor difference in the responses of respondents for both the
banks.
So level of satisfaction of respondents for both the banks is almost same for
this question.
Both the banks need to convert low satisfied customers to more satisfied
customers by improving the performance of this factor.

19.

Operating hours convenient to all their customer

 There are more numbers of satisfied respondents for AXIS as compared to

SBI.
Highest frequency of respondents for both the banks is at level 4 i.e. neither
dissatisfied nor satisfied.
Also there are slightly more numbers of respondents on dissatisfied level for
both the banks, so they have to improve in this factor.

20.

Employees giving customers personal attention

 Here from the graph, we can say that SBI has more number of respondents
who are dissatisfied as compared to AXIS respondents.
Also highest frequency of respondents for AXIS is at level 4 i.e. neither
dissatisfied nor satisfied, whereas for SBI it is at level 3 i.e. dissatisfied.
So for employees giving customers personal attention AXIS has better
response as compared to SBI. Also for both the banks there are quite large
numbers of repondents who are not agreed with statement.

21.

Having the customers best interest at heart

 Here most of the respondents for both the banks are fall in dissatisfaction
zone.
Also highest frequency is observed in level 3 i.e. dissatisfied for both the
banks.
So as far as for this question both the banks have negative response and they
need to improve it.

22.

The employees understanding the specific needs of customers

 From the graph, there are more numbers of respondents who are disagree with
this statement for both the banks.
But for SBI there are more numbers of repondents which are falling in level 4
and for AXIS more numbers of respondents are falling in level 5.
So for this question AXIS has comparatively good response. But both the
banks have below average response.

CHAPTER - 6

FINDINGS

 AXIS has more satisfaction level of respondents for dimensions tangibility and
empathy; whereas SBI has more satisfaction level of respondents for
remaining three dimensions i.e. reliability, responsiveness, and assurance.
Most of the respondents for both the banks are less satisfied as far as visually
appealing physical facilities concerned and neat appearing employees are
concerned.
The difference in score was more for SBI, so AXIS was lagging more on
reliability dimension.
Insisting on error-free records the difference in score was huge for SBI in comparison
to AXIS. Also there is moderate difference in score for performing the service
correctly the first time for SBI over AXIS. Hence AXIS needs to improve on these
two factors as far as reliability dimension is concerned.
For these three factors keeping promise to do something by certain time,
providing the service at the time the service was promised and, performing the
service correctly the first time both the banks can improve the level of
satisfaction as there were less number of respondents who were satisfied.
For employees telling customers exactly what services will be performed

difference is so large for SBI over AXIS so AXIS has to focus on this factor to
improve score on responsiveness dimension.
Whereas for SBI they are almost performing well on responsiveness
dimension, but they need improvement on employees always being willing to
help customers.
Employees telling customers exactly what services will be performed and
employees are never to busy to respond to customers request for these two
questions both the banks had less satisfaction of customers so by focusing on
this to factors they can improve satisfaction level.
Both the banks are performing nearly same on dimension assurance, as there
was slight difference in the score.

 Customers feeling safe in their transaction for this question, AXIS has more

number of respondents which were moderate to highly satisfied level and for
SBI respondents in satisfied zone were more but there were less number of
respondents in moderate to highly satisfied level so due to more numbers of
respondents in satisfied level, score of SBI is more.
Employees having enough knowledge to answer customers questions, here
both the banks need to improve on this factor as there were more numbers of
respondents in level 3 and level 4 for both the banks, so by focusing on this
they can improve satisfaction level of their customers.
SBI has to improve in all the aspects for the dimension empathy as AXIS is
performing well on this dimension. Mainly they have to focus on giving
customers individual attention and employees giving customers personal
attention as they were more lagging behind in these factors in comparison of
AXIS.
Both the banks need to improve its service for employees giving customers
personal attention, operating hours convenient to all their customers, having
the customers best interest at heart and the employees understanding the
specific needs of customers as there were more numbers of respondents who
were either not satisfied or less satisfied.

CHAPTER - 7
SUGGESTIONS

AXIS:
AXIS needs to improve on mainly these three factors i.e. Promise, Doing it
right and Competency as these factors are more important for banking industry
and they are lagging on these factors as compared to SBI.
AXIS should maintain these four factors i.e. Promptness, Willingness,
Competency and Understanding as in these factors either AXIS is performing
well or doing up to the mark and these four factors are important for banking
industry.
AXIS should deemphasize on factor Appearance and Approachable as in these
factors they are performing well, but these factors have less importance as
compared to other factors.
AXIS should concentrate on insisting on error free records, on performing the
service correctly the first time and employees telling customers exactly what
services will be performed.
SBI:
SBI should improve its performance on Understanding and Credibility as these
factors are important for banking industry and they are lagging in these two
factors.
SBI should concentrate on employees always being willing to help customers,
on giving customers individual attention, on employees giving customers
personal attention.
As SBI is performing poorly in all the aspect of empathy dimension, so SBI
should concentrate on this dimension more.
SBI should maintain these five factors i.e. Appearance, Promises, Doing it
right, Competency, and Approachable in these factors either SBI is performing
well or doing up to the mark and these four factors are important for banking
industry.
SBI should deemphasize on factor Promptness as in this factor they are
performing well, but these factors have less importance as compared to other
factors.

BOTH AXIS AND SBI:

Both the banks should increase satisfaction level of their customers by mainly

focusing on following factors:

Keeping promise to do something by certain time.
Providing services at the time the service was promised.
Performing the services correctly the first time.
As on above factor, most of the respondents shows neither satisfied nor
dissatisfied, so by improving this factors satisfaction level can be improve.

CONCLUSION

CONCLUSOIN
1.

AXIS is doing well on the tangibility and empathy dimension,

whereas SBI performing well on reliability, responsiveness and assurance
dimensions.

2.

Mainly SBI is doing well on insisting on error free record,

employees telling customers exactly what service will be performed and

employees are never too busy to respond to customers.

3.
Whereas AXIS is performing well on giving customers
4.
5.

individual customers and employees always being willing to help customers.

Both the banks need to improve on empathy dimension.
Both the banks need to improve its service for employees
giving customers personal attention, operating hours convenient to all their
customers, having the customers best interest at heart and the employees
understanding the specific needs of customers as there were more numbers of

respondents who were either not satisfied or less satisfied.

6.
They always ready to serve their customer.
7.
Now AXIS taking steps to increase the safety level of their
customer.

BIBLIOGRAPHY

REFERENCE BOOKS:
1) Zeithamal V. A., Gremler D.D., Bitner M.J., and Pandit A.: Service
Marketing Integrated Customer Focus Across The Firm, Fourth Edition, pp.
156-172.
2) Zillur Rahman, Service Quality: Gap in the Indian Bank Industry The ICFAI
Journal of Marketing Management, Feb. 2005, pp 37-50.
WEBSITES:
1) ideas.repec.org/a/ipf/finteo/v31y2007i2p185-201
2) marketing.byu.edu/download/measurementanalysis/servqual
3) http://areas.kenan-flagler.unc.edu/Marketing/FacultyStaff/zeithaml/Selected
%20Publications/SERVQUAL-%20A%20Multiple-Item%20Scale%20for
%20Measuring%20Consumer%20Perceptions%20of%20Service
4)
5)
6)
7)

%20Quality.pdf
business.mapsofindia.com/banks-in-india
rbidocs.rbi.org.in/rdocs/Speeches/PDFs/86160.pdf
www.researchandmarkets.com/reports/4020/indian_banking_industry
www.mckinsey.com/locations/india/mckinseyonindia/pdf/india_banking_

2010.pdf
8) media.wiley.com/product_data/excerpt/34/04713931/0471393134.pdf
9) www.marketresearch.com/product/display.asp?productid=2156584&g=1
10) www.sbi.co.in/
11) www.AXISbank.com/
12) www.experiencefestival.com/banking_in_india_-_current_scenario
13) http://pmindia.nic.in/eac_report_09.pdf

QUESTIONNAIRE

Sr. no.____
Questionnaire
The data/information gathered through this questionnaire would be strictly used for
academic purpose only. All the responses and data will be kept CONFIDENTIAL.

Dear Sir/Madam,
I am the student of GLS-MBA conducting a study on SERVQUAL analysis of
banking sector with emphasis on State Bank of India and AXIS Bank.
SERVQUAL for AXIS

Please rate the following 22 SERVQUAL instruments by circling the number from
strongly disagree=1 to strongly agree=7 accordingly to your perception.
1 Modern looking equipment

1 2 3 4 5 6 7

2 Visually appealing physical facilities

1 2 3 4 5 6 7

3 Neat-appearing employees

1 2 3 4 5 6 7

4 Visually appealing materials associated with the service

1 2 3 4 5 6 7

5 Keeping promise to do something by a certain time

1 2 3 4 5 6 7

6 Showing sincere interest in solving a customers problems

1 2 3 4 5 6 7

7 Performing the service correctly the first time

1 2 3 4 5 6 7

8 Providing the service at the time the service was promised

1 2 3 4 5 6 7

9 Insisting on error-free records

1 2 3 4 5 6 7

10 Employees telling customers exactly what services will be performed 1 2 3 4 5 6 7

11 Employees giving prompt service to customers

1 2 3 4 5 6 7

12 Employees always being willing to help customers

1 2 3 4 5 6 7

13 Employees are never too busy to respond to customers requests

1 2 3 4 5 6 7

14 The behavior of employees instilling confidence in their customers 1 2 3 4 5 6 7

15 Customers feeling safe in their transactions

1 2 3 4 5 6 7

16 Employees being consistently courteous with their customers

1 2 3 4 5 6 7

17 Employee having the knowledge to answer customers questions

1 2 3 4 5 6 7

18 Giving customers individual attention

1 2 3 4 5 6 7

19 Operating hours convenient to all their customers

1 2 3 4 5 6 7

20 Employees giving customers personal attention

1 2 3 4 5 6 7

21 Having the customers best interests at heart

1 2 3 4 5 6 7

22 The employees understanding the specific needs of customers

1 2 3 4 5 6 7

Personal Information
1. Gender
Male

Female

2. Age
25 years and below
36-45 years

26-35 years
Above 45 years

3. Education
Below H.Sc.
Graduate

Completed school education

Post Graduate

4. Occupation
Own business
Professional
Housewife

Government employee
Student
Other

5. Income
Less than 1 lakh p.a.
3-5 lakh p.a.

1-3 lakh p.a.

More than 5 lakh p.a.

Sr. no.____
Questionnaire
The data/information gathered through this questionnaire would be strictly used for
academic purpose only. All the responses and data will be kept CONFIDENTIAL.

Dear Sir/Madam,
I am the student of GLS-MBA conducting a study on SERVQUAL analysis of
banking sector with emphasis on State Bank of India and AXIS Bank.
SERVQUAL for SBI
Please rate the following 22 SERVQUAL instruments by circling the number from
strongly disagree=1 to strongly agree=7 accordingly to your perception.
1 Modern looking equipment

1 2 3 4 5 6 7

2 Visually appealing physical facilities

1 2 3 4 5 6 7

3 Neat-appearing employees

1 2 3 4 5 6 7

4 Visually appealing materials associated with the service

1 2 3 4 5 6 7

5 Keeping promise to do something by a certain time

1 2 3 4 5 6 7

6 Showing sincere interest in solving a customers problems

1 2 3 4 5 6 7

7 Performing the service correctly the first time

1 2 3 4 5 6 7

8 Providing the service at the time the service was promised

1 2 3 4 5 6 7

9 Insisting on error-free records

1 2 3 4 5 6 7

10 Employees telling customers exactly what services will be

1 2 3 4 5 6 7

performed
11 Employees giving prompt service to customers

1 2 3 4 5 6 7

12 Employees always being willing to help customers

1 2 3 4 5 6 7

13 Employees are never too busy to respond to customers requests 1 2 3 4 5 6 7

14 The behavior of employees instilling confidence in their 1 2 3 4 5 6 7
customers
15 Customers feeling safe in their transactions

1 2 3 4 5 6 7

16 Employees being consistently courteous with their customers

1 2 3 4 5 6 7

17 Employee having the knowledge to answer customers 1 2 3 4 5 6 7

questions
18 Giving customers individual attention

1 2 3 4 5 6 7

19 Operating hours convenient to all their customers

1 2 3 4 5 6 7

20 Employees giving customers personal attention

1 2 3 4 5 6 7

21 Having the customers best interests at heart

1 2 3 4 5 6 7

22 The employees understanding the specific needs of customers

1 2 3 4 5 6 7

Personal Information
1. Gender
Male

Female

2. Age
25 years and below
36-45 years

26-35 years
Above 45 years

3. Education
Below H.Sc.
Graduate

Completed school education

Post Graduate

4. Occupation
Own business
Professional
Housewife

Government employee
Student
Other

5. Income
Less than 1 lakh p.a.

1-3 lakh p.a.

3-5 lakh p.a.

More than 5 lakh p.a.