TERM PAPER

OF
STRATEGIC MANAGEMENT
ON
“SBI Vs. Axis Bank”
“(A Comparison And Analysis Of Marketing Strategies Of Public &
Private Sector Companies)”

VS.
Submitted To:- Submitted By:-
Lect. Gagandeep Bhatara Rajiv Kumar(A17)

10901437

RR1902

MBA-LSB

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 LOVELY PROFESSIONAL UNIVERSITY

ACKNOWLEDGEMENT
I feel pleasure to give the credit of my term paper not only to one individual as this work is
integrated effort of all those who concerned with it. I want to owe my thanks to all those
individuals who guided me to move on the track.
This report entitled “SBI Vs. Axis Bank”.
I sincerely express my gratitude and lot of thanks to Lect. Gagandeep Bhatara (Lect.
of,Straegic Management) also thank to my friends for helping me in completing my Term
paper and give me better ideas to doing my job and making it a great success.
I would like to express my deep sense of gratitude to staff of LOVELY SCHOOL OF
BUSINESS who introduced me to the subject and under whose guidance I am able to
complete my project.
RAJIV KUMAR
A17
RR1902
MBA 3rd sem.

INDEX
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1. Introduction about SBI..............................................................page no.4
2. Mission,Vision...........................................................................page no.4
3. Value provided by SBI...............................................................page no.6
4. Strategies changes by SBI..........................................................page no.6
5. Award and Recognition.............................................................page no.7
6. Strategies by SBI.......................................................................page no.7
7. SWOT of SBI............................................................................page no.10
8. Porter’s Five Forces Model........................................................page no.11
9. BCG Theory of SBI...................................................................page no.12
10. Other strategies by SBI.............................................................page no.13
11. Changing straegies 1991-2015...................................................page no.15
12. Axis bank..................................................................................page no.17
13. Mission, Vision, Values.............................................................page no.17
14. Segmentation of saving bank....................................................page no.20
15. SWOT of AXIS Bank...............................................................page no.20
16. Strategies compete the competetors...........................................page no.21
17. Marketing objectives.................................................................page no.21
18. Competetive strategies..............................................................page no.21
19. STP Analysis............................................................................page no.22
20. Communication strategies........................................................page no.23
21. Other marketing strategies........................................................page no.24
22. Complemantary strategies for business growth & development..page no.25
23. Value chain activities..................................................................page no.25
24. Conlusion...................................................................................page no.26
25. Bibliography...............................................................................page no.27

Introduction about SBI

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 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 state-associate 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.
Mission statement:
To retain the banks position as the premier Indian financial services. It also aims to be a
group with world class standards and significant global business commitments to
excellence in customer, shareholder and employee satisfaction so as to play a leading role in
expanding and diversifying financial services while continuing emphasis on its
development banking role.
Vision:
To be a premier Indian financial services group with global perspective, world class
standard of the efficiency and professionalism and also its core institutional values, To retain
its position in the country as a pioneer in developing countries, It also aims to maximize
its shareholders value through high sustained earnings per share, To become an institution with a
culture of mutual care and commitment. It also focuses on a pleasant working environment to
have continuous learning opportunities.
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.
 State Bank of India has 131 foreign offices in 32 countries across the globe.
 SBI has about 21000 ATMs and SBI group(including associate banks) has about 45000
no of ATMs.

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  SBI has 26500 branches, inclusive of branches that belong to its Associate banks.
 SBI alone has 13076 Branches (including the branches of State Bank of Indore), as on 26
August 2010.
Symbol and slogan
 Symbol is the Key Hole, whose meaning is "Welcome to SBI".
Slogans are:
 With you all the way
 Pure banking nothing else
 The Banker to every Indian
 The Nation banks on
The Symbol of State Bank of India is a Circle and not Key hole and a small man at the centre of
the Circle. Cirlce depicts perfection and the common man being the centre of the banks business.
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.
The eight banking subsidiaries are:
 State Bank of Bikaner and Jaipur (SBBJ)
 State Bank of Hyderabad (SBH)
 State Bank of India (SBI)
 State Bank of Indore (SBIR)
 State Bank of Mysore (SBM)
 State Bank of Patiala (SBP)
 State Bank of Saurashtra (SBS)
 State Bank of Travancore (SBT)
 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
Other Services
• Agriculture/Rural Banking
• NRI Services
• ATM Services
• Demat Services
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• Corporate Banking
• Internet Banking
• Mobile Banking
• International Banking
• Safe Deposit Locker
• RBIEFT
• E-Pay
• E-Rail
• SBI Vishwa Yatra Foreign Travel Card
• Broking Services
• Gift Cheques
Values provided by SBI
 Excellence in customer service
 Profit orientation
 Belonging and commitment to bank
 Fairness in all dealings and relations
 Risk taking and innovations
 Team playing
 Learning and renewal
 Integrity
 Transparency and discipline in policies and systems
Strategies Changes The SBI

Awards and recognition

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 STRATEGIES BY SBI
Generic strategies adopted by State Bank of India:
 Institution for advanced learning: to provide state of the art training in financial
products to middle level and senior level executives.
 Internal consultant/change agent: to act as a catalyst for change in attitudes and
orientation of banking staff and to provide expertise and consultative support
 Feedback supplier: to capture and structure feedback from trainees and from the
market
 Think tank: to provide expert and inform suggestions, model business strategies,
analysis of market developments from a banker perspective.
 Research and development role: to carry out research on contemporary subjects
that are relevant to the banks short term and medium term and operational needs
and policy formulation
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  Overlapping staff training centers: to validate and closely monitor the staff
training centers in seven circles attached to the academy.

Centralization and Decentralization

It has a well defined system for decision making process. The financial decisions are taken at
various levels by different officials depending upon their positions and also through committee
approach.
The centralized credit processing cells are being formed at certain centers for sanction of
personal segment loans and under SBI segments. Its branches source the applications and
forward them to the respective credit processing sale for their consideration.
Regarding the sanction of loan each officer of the bank considers the loan proposals and
takes a decision in terms of scheme of delegation of powers, on merits of proposal.If the
bank needs to purchase any kind of equipment like computers or software branch managers
are required to take permission from high authority.
So in term of decision making centralization is high and low decentralization wherein the
managers have some powers to take decision but at a limited base.

The Restructuring
To overcome the intense competition from private and foreign banks, SBI planned a major
organizational restructuring exercise.
The key aspects involved
 Redesigning of branches
 Providing alternate channels
Focus on a lean structure and
Technological up gradation.

A business process reengineering (BPR) team was constituted in June 2003 with
McKinsey & Company as consultants. The BPR's basic goal was to create an operating
architecture that would facilitate service delivery of international standards.
The strategies behind that project.
 Increasing customer satisfaction and convenience,
 Freeing up time for branch manager and
 Branch staff to focus on sales and marketing,
 Simplifying process for employees,
 Enhancing SBI's competitiveness in the market,
 Increasing the profitability through higher market share and improved process
Efficiency.

New Products and Services

Apart from restructuring, SBI launched several innovative, value-added products and
services to project a customer friendly image. It launched a special service for corporate
customers called 'telebanking and remote login' to support transactional requests, This facility
would be available at 593 branches, and remote login at 269 branches. The banks trade finance
solutions, called EXIMBILLS, were intended to handle trade finance transactions efficiently and
enhance the range of services provided to corporate and network branches. In March 2004,
SBI announced that it would introduce ‗anywhere banking‘ facility for its customers over 9000
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branches across India in the next two years. All the branches in Mumbai would provide
this facility by December 2004. SBI also launched different customized loan programs to
cater to various sections of society depending on income levels and repayment capabilities.
Interest rates and repayment periods were tailor-made to suit the customer groups.

Alliances and Tie-Ups

To boost its business, SBI entered into several alliances and tie-ups with automobile,
insurance, mutual fund, project finance and medical equipment companies.

Auto Finance
Unlike other competitors that relied on reduced interest rates to get business, SBI
extended the tenure of car loans from five to seven years, thereby lowering the monthly debt
repayment burden of the loan seeker. SBI entered into a tie-up with Maruti,the largest
automobile manufacturer in India, to provide loans for purchase of Maruti cars at the rate of
10.05 per cent and 11.25 per cent for three years and above three years respectively. After the
scheme was introduced, SBI emerged as the largest financier for Maruti cars in India and the
number of Maruti vehicles financed grew by 17 per cent in the fiscal 2003-04 over fiscal 2002-
03.

The Marketing Initiatives

SBI carried out various marketing initiatives to enhance its reach. They included
 Segregating and targeting existing high value customers,
 Cross sales of other products,
 Setting up call centers and outbound sales force to secure new customers.
 Plans were also made to utilize database marketing to pursue large and medium sized
corporate, government and trade finance customers.
 Database marketing was expected to draw increased revenue from cross selling, lower
costs and increased customer loyalty.

SBI also introduced various other ways of reaching out to customers like

 Extension of hours of work(SBI increased daily working hours by two hours and
Sunday banking was introduced) and
 Aggressive marketing through print and television media.
The bank is entering into many new businesses with strategic tie ups – Pension Funds
General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc – each one of these
initiatives having a huge potential for growth.

SWOT ANALYSIS

Strengths

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  Brand name: SBI Bank has earned a reputation in the market over the period of
time(Being the oldest bank in India tracing history back to 1806)
 Market Leader: SBI is ranked at 380 in 2008 Fortune Global 500 list, and ranked 219
in 2008 Forbes Global 2000. With an asset base of $126 billion and its reach,it is a
regional banking behemoth.
 Wide Distribution Network: Excellent penetration in the country with more than
10000 core branches and more than 5100 branches of associate banks
(subsidiaries).
 Diversified Portfolio: SBI Bank has all the products under its belt, which help it to
extend the relationship with existing customer‘s Bank has umbrella of products to offer
their customers, if once customer has relationship with the bank. Some Products,
which SBI Bank is offering are: Retail Banking Business Banking Merchant
Establishment Services (EDC Machine) Personal loans & Car loans Insurance
Housing Loans
 Government Owned: Government owns 60% stake in SBI. This gives SBI an
edge over private banks in terms of customer security.
 Low Transition Costs-SBI offers very low transition costs which attracts small
customers.
 Continued effort to increase low cost deposit would ensure improvement in NIMs and
hence earnings.

Weaknesses

 The existing hierarchical management structure of the bank, although strength in some
respects, is a barrier to change.
 Though SBI cards are the 2nd largest player in the credit card industry, it has the highest
non performing assets (NPAs) in the industry, which stand out to be at 16.28 %
(Dec 2007).
 Modernisation: SBI lags with respect to private players in terms of modernisation of its
processes, infrastructure, centralisation, etc.
 SBI is currently operating at a lowest CAR(8%). Insufficient capital may restrict the
growth prospects of the bank going forward.
 Delay in technology up gradation could result in loss of market shares.
 Management indicated a likely pension shortfall on account of AS-15 to be close to
Rs50bn.
 Contribution of retail credit to total bank credit stood at 26%. Significant thrust on
growing retail book poses higher credit risk to the bank.

Opportunities

 Merger of associate banks with SBI: Merger of all the associate banks (like SBH, SBM,
etc) into SBI will create a mega bank which streamlines operations and unlocks
value.
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  Planning to add 2000 branches and 3000 ATMs in 2008-2009. This will further increase
its reach.
 Increasing trade and business relations and a large number of expatriate populations
offers a great opportunity to expand on foreign soil.
 Global expansion: SBI already has expanded globally and start its operations
internationally in 32 countries like Australia, Bangladesh, etc.and has more plans of
expansion in other global markets.
 Growing retail & SMEs thrust would lead to higher business growth.
 Micro Finance: there is a lot of growth opportunity in the area of micro finance.
 Strong economic growth would generate higher demand for funds pursuant to
higher
 Corporate demand for credit on account of capacity expansion.

Threats

 Advent of MNC banks: Large numbers of MNC banks are mushrooming in the Indian
market due to the friendly policies adopted by the government. This can increase the
level of competition and prove a potential threat for the market share of SBI bank.
 Consumer expectations have increased many folds in last few years and the bank has not
been responsive enough to meet them on time.
 Private banks have started venturing into the rural and semi-urban sector, which used to
be the bastion of the State Bank and other PSU banks
 Employee Strike: There was an employee strike in the year 2006 which disrupted SBI‘s
activities. This can be repeated in the future.
 Stiff competition, especially in the retail segment, could impact retail growth of SBI
and
Hence slowdown in earnings growth.
 Slow down in domestic economy would pose a concern over credit off-take
thereby
Impacting earnings growth.
 The changing interest rates and the changing policies of RBI.

Porters five forces theory

1. Threat of competitors

Top Performing Public Sector Banks

a. Andhra Bank
b. Allahabad Bank
c. Punjab National Bank
d. Dena Bank
e. Vijaya Bank
Top Performing Private Sector Banks
a. HDFC Bank
b. ICICI Bank
c. AXIS Bank
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d. Kotak Mahindra Bank
e. Centurion Bank of Punjab

Top Performing Foreign Banks

a. Citibank
b. Standard Chartered
c. HSBC Bank
d. ABN AMRO Bank
e. American Express

2. Threat of new entrants

There have been many new entrants in banking sector like yes bank.

3. Threat of substitutes

Investors as a substitute can always invest into the capital markets instead of depositing in
their capital in the bank.

4. Buying power of suppliers

Changing policies and guidelines of RBI, interest rates, CRR and SLR maintained by the
banks as per RBI norms.

5. Buying power of customers

Changing scenarios, increasing and decreasing disposable incomes, other attractive options
available to customers.
BCG Theory: Cash Cows

There is a lot of growth potential for the banking industry because of increasing
disposable income of customers, increasing working class, more volatility in other markets
also increasing importance of savings and in this banking industry SBI has shown a
growth rate of 13% with a 21 % increase in PAT standing to 62.1 cr in the FY 2008-09. Hence it
can be concluded that SBI stands at cash cow in BCG matrix.

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 OTHER STRATEGIES BY SBI
1.Targeting new technical professional persons

State Bank Freedom – Your Mobile Your Bank

Sbi targeting the skilled professional people by provining mobile service clled Freedom .Away
from home, bills can be paid or money sent to the loved ones or balance enquiries done anytime
24x7!!! That is what State Bank FreedoM offers -convenience, simple, secure, anytime and
anywhere banking.
The following functionalities are available in the application based service/ WAP
 Funds transfer (within and outside the bank –using NEFT)
 Enquiry services (Balance enquiry/ Mini statement)
 Cheque book request
 Demat Enquiry Service( (Portfolio value,Request for DIS booklet, Value of holdings,
statement of charges, Transaction status etc.)
 Bill Payment (Utility bills, credit cards, Insurance premium payments) Donations,
Subscriptions
 M Commerce (Mobile Top Up, Top up of Tatasky, BigTV, SunDirect, DishTV
connections and receive recharge pins for DigitalTV/Videocon d2h, Merchant payment,
SBI life insurance premium)
 Interbank Mobile Payment Services (IMPS): To be introduced shortly.

Business Rules governing Mobile Banking Service over Application / WAP.

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 The Mobile Banking Service will be available to all the customers having Current/ Savings
Bank Account(Personal segment). The customers will have to register for the services.Daily
transaction limits for fund transfer/ bill/ merchant payment is Rs.50,000/- per customer with an
overall calendar month limit of Rs.2,50,000.00.The service will be carrier-agnostic i.e. all
customers can avail the mobile banking service with the Bank irrespective of the service provider
for their mobiles. The service is free of charge. However, the cost of SMS / GPRS connectivity
will have to be borne by the customer.

2. A good strategy by SBI

SBI launches its first 'crorepati only' branch:- They serve millions of customers and
manage crores of rupees worth of small savings, there is a tendency to look upon public sector
banks (PSB) in India as social institutions.
But while PSBs do have social goals, banking is also a business venture and it is important that
the sector is treated as such. The State Bank of India’s (SBI) recent decision to open a branch in
Hyderabad exclusively for crorepatis is in line with commercial principles, and there is nothing
wrong with that.
While public sector banking should serve as a tool for socio-economic uplift, it needs to shed
its sleepy ‘sarkari’ image. This is what SBI seems to be doing with its ‘crorepati only’ branch. To
provide customised services to high-end clients, it will have to be as competitive as private banks
and adopt quality banking standards and practices . This will help energise work at all branches
of the bank, benefiting small and medium-income account holders as well.

3. STATE BANK OF INDIA FORMULATES GLOBAL STRATEGY FOR EXPANSION.

With a view to meet the growing needs of foreign customers, the State Bank of India has
formulated an ambitious programme to expand its operations in many countries, including the
United States and South Africa.

SBI for acquisitions in Indonesia, Thailand

The country's largest lender SBI is eyeing acquisitions in the south-east Asia, particularly in
Indonesia where it acquired a bank way back in 2006, bolstered by Indian companies keenness of
step up operations there.
The top priority will be to look at the possiblity of acquisition in Indonesia then Thailand and
then possibly the Philippines.SBI has already acquired PT Bank IndoMonex in 2006. "We took a
bank in Indonesia and call it SBI Indonesia. It has seven branches now. We could think of taking
over another bank, bring them together and scale up quickly."

Changing strategies of SBI banks

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 4. Strategy in Auto Mobile

SBI ties up Tata Motors for Nano bookings

State Bank of India “The Banker to Every Indian” has entered into an exclusive agreement
with the Tata Motors the country’s largest automobile company, for the management of the
bookings of the Tata ‘Nano’ through its 11,111 plus branch network
Through this tie-up, more than 1350 branches of State Bank of India would assist in the
booking process. The booking forms would be distributed and filled up application forms with
booking amount will be collected through more than 1350 branches in 850 plus cities, besides,
Tata Motors passenger car dealerships nationwide, Croma and Westside stores. SBI will be
marketing the application form sale from 11,111 plus branches and marketing teams would
provide information to customers and generate leads.
SBI will provide end to end processing with a bouquet of retail products for the bookings
through its branches as beleow;-
 Sale of Nano Booking forms
 Nano Booking loans
 Acceptance of booking amount at designated branches
 Nano Car Loans &
 Refund to unsuccessful applicant
The sale of application forms and acceptance of booking amount at SBI branches will start
from April 9, 2009 till April 25, 2009. SBI will be using its SBI FAST, the Cash Management
Product, which is suitably poised to handle bulk centralized collection and payment services. SBI
has also set up a 24*7 help line to facilitate the booking process.

5 .Strategy in rising competetion

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 Rs 20cr SBI rights issue likely by Nov-Dec 2010 :- The State Bank of India is likely to hit
the market with its rights issue by the year-end to mop up around Rs 20,000 crore, a senior bank
official said. This would enable the banking behemoth to fuel its business plans, particularly
in the face of rising competition from its deep-pocketed rivals, both private and overseas.

6. SBI resorts to private banking strategies to woo customers

State bank of India (SBI) has implemented the concept of Super Circle of Excellence (SCE) to
focus on select branches for high growth, improved efficiency, high quality of customer service
and also act as a forum for sharing best practices.
As on March 2010, there are 661 branches in SCE, out of which 331 branches are under 16
dedicated SCE regions and 330 selected on the basis of one-per-region, facilitated by SCE
coordinator.
The branches have been selected on a twin track approach, one subset comprising cluster of
branches in metro and large urban centres to meet the burgeoning competition and other subset
consisting of branches selected on the basis of one per region, aiming to transplant best practices
from high-performing branches to other outlets across the country.
The SCE branches are primarily focusing on growth in retail business, CASA deposits and
income from cross selling.
The overall performance of SCE branches is being measured on a multi-dimensional efficiency
matrix, covering all aspects of business. The SCE branches are benchmarking with the best
performing bank in retail operations and has set high standards of customer service. The objective
of SCE branches is to reach a zero complaint status.

AXIS BANK
Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted
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jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and
other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance
Company Ltd.
The Bank today is capitalized to the extent of Rs. 408.84 crores with the public holding (other
than promoters and GDRs) at 53.81%.
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 1095 branches (including 57 Service
Branches/CPCs as on 30th September 2010). The Bank has a network of over 4846 ATMs (as on
30th September 2010) 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.

VISION, MISSION, VALUES

VISION

To be preffered brand fot total financial banking solution for both corporate and individuals.

MISSION

• Customer Service and Product Innovation tuned to diverse needs of individual and
corporate clientele.
• Continuous technology up gradation while maintaining human values.
• Progressive globalization and achieving international standards.
• Efficiency and effectiveness built on ethical practices.

VALUES
• Customer Satisfaction through
• Providing quality service effectively and efficiently
• "Smile, it enhances your face value" is a service quality stressed on
• Periodic Customer Service Audits
• Maximizations of Stakeholder value
• Success through Teamwork, Integrity and People

Vision and Core Values 2015

VISION 2015
To be the preferred financial solutions provider excelling in customer delivery through insight,
empowered employees and smart use of technology.

Core Values 2015

 Customer Centricity
 Ethics
 Transparency
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  Teamwork
 Ownership
UTI Bank is now Axis Bank

The change in name was considered for avoiding confusion as several unrelated entities
were using the UTI brand.
The name of the country’s third largest private sector lender UTI Bank has been officially
changed to the Axis Bank Ltd with effect from 30 July.
The Registrar of Companies has issued a fresh certificate of incorporation, the bank has
informed the Bombay Stock Exchange, adding that with this, the name of UTI Bank has been
changed to Axis Bank Ltd with effect from 30 July.The company’s board had approved the
proposal to change its name on 30 April.
The bank would change logo and colour of logo, he had said, adding, the bank is likely
to spend around Rs50 crore in the re-branding exercise.

UTI

Axis Bank (Formerly known as UTI) was one of the few private banks to have began
operations in 1994 The Bank was promoted jointly by the Administrator of the specified
undertaking of the Unit Trust of India (UTI) .

 Life Insurance Corporation of India (LIC).

 General Insurance Corporation Ltd (GIC).
 National Insurance Company Ltd.
 The New India Assurance Company.
 The Oriental Insurance Corporation.
 United Insurance Company Ltd.

THREE MAIN REASONS FOR CHANGING NAME

1. They had to give up the UTI name after using it for 13 years as we were not prepared to
accept terms and conditions (including royalty) from UTI AMC The decision to rebrand itself
was taken by the bank as it was allowed to use the 'UTI' brand name for free till January 31,
2008, beyond which it had to pay royalty for using the name.
2. The recommendation for name change to Axis Bank has arisen from the existence of
several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion
that this generates.
3. The name UTI bank was changed to AXIS bank as UTI gave a look of government sector
bank. They had to change our name to have our own brand and identity.

Aggressive branch expansion to lead to business growth at a CAGR of 40.6% over FY08-
FY10.

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 As a conscious strategy of growing organically the bank continues to expand its distribution
network, in both domestic and overseas geographies, to enlarge its reach and accelerate its
business momentum. The business model of the bank is concentrated on developing a branch
network built on customer convenience and service, helping it particularly in the acquisition of
low-cost retail deposits, retail assets, lending to agriculture, SME and mid-corporates and
facilitating the cross-selling of third party products.
As on the quarter ended June 30, 08 the bank has 693 branches, 20 extension counters and
2904 ATMs most of which are concentrated in the mass affluent locations in the metro and urban
cities. It plans to open total 150 branches and 450 ATMs in FY09 (42 branches and 140 ATMs
already opened in Q1 FY09) mainly in upcoming tier II and tier III cities where the disposable
incomes are on an upsurge.

Global Ambitions
Axis Bank currently has global footprints in four countries by way of 3 branches in Singapore,
Hong Kong, Dubai and 2 representative offices in Shanghai and Dubai. It has also sought
permission from the Sri Lankan Government to open a branch in Sri Lanka in the current fiscal.
In these locations it offers corporate credit and trade finance solutions, debt syndication and
wealth management services to NRI population settled in these cities.
Also the bank is a market leader in the foreign currency travel card segment and has generated
a sales volume of USD 285.33 mn in FY08 on such cards.

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 SEGMENTATION OF THE SAVING BANK
A Product Manger is in-charge of one or more of these segments.
• EasyAccess Savings Account
• Banking made easy
The account is an endeavor by the Bank to understand the consumers' needs and redefine banking
to suit the requirements for a truly comfortable banking experience. EasyAccess Savings
Account gives instant access to your money anywhere, anytime. Possessing a range of unmatched
features, it has been devised to better suit the convenience of our eclectic client base.

 Interest paid on a quarterly basis @ 3.5 % per annum.

 International Debit Card.
 Tele-banking
 iConnect™ Internet Banking
 Multi-city ‘At Par’ cheque book for all Savings Account holders
 Free Anywhere Banking facility
 Auto sweep facility for excess balances into high interest earning term deposits
 Quarterly statement of account.
 Access to account information over iConnect, Tele-banking and ATMs
There can avail of all these services with a minimum quarterly average balance of Rs 5,000 in
metro or urban centers, and Rs 2,500 in semi urban centers.

SWOT ANALYSIS OF AXIS BANK

STRENGTHS
• Brand Name
• Support of various promoters.
• High level of services.
• Knowledge of Indian market.
WEAKNESS
• Not having good image.

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 • Market capitalization is very low.
• Not been fully able to position itself correctly.
OPPORTUNITIES
• Growing Indian banking sectors.
• People are becoming more service oriented.
• In the global market.
• Dissatisfied Customers.
• Business advising for smaller Players
THREATS
• Advent of MNC banks
• Foreign banks
• Govt. banks
• Future market trends.

Strategies compete the competetors

Targeting women

Smart Privilege Account-

In today's busy world it's tough being a working woman. Right from shuttling between a
job and family to taking care of her finances she has to be on her heels all the time. Keeping this
ideal in mind, we at Axis Bank have designed a savings account best suited for the woman of
today. Now with the Smart Privilege Account you can manage your money, your life and enjoy a
host of lifestyle privileges as well. What's interesting is that the Smart Privilege Account ensures
that you have enough time for all those important things in life.
Discount on Retail P urchases
Just live the feeling of walking into a store and getting amazing discounts not available to
others. As people are a valued customer,bank shall Endeavour to provide the customers with
discounts at various outlets, periodically. All people have to do is use your new Smart Privilege
Debit Card and avail of discounts at these outlets.

MARKETING OBJECTIVES 2011

Axis Bank want to achieve following marketing objectives by the end of the year 2011.
• To get the market capitalization 500 Crore
• To get the 200 Crore retail investment.
• To get 125 Crore Corporate investments.
• To get the 175 Crore Capital investments.

COMPETETIVE STRATEGY

For the private sector banks

• Differentiation on the basis of area coverage.

• Restricted Reach.
• Level of service is the same.
• Axis got advantage because of Product Innovation.
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For the government sector banks

• High level of service quality and through product innovation.

• AXIS not any where near, but has created a different set of segment.
• People who believe in the higher set of services.

For the International Banks

• Differentiated itself on the base of the reach and coverage to the people.
• Service level is somewhat same.
• In the future these banks may create a problem.

STP ANALYSIS

Segmentation Strategy ( S )

Demographics variables
 Location
 Metros & divisional cities
 Occupation
 Business persons
 Salaried class (both Govt. and private)
 Working woman
 Age
 Senior citizens
 Minor
 Psychographic variables
 Lifestyle
 The people who believes in modern banking with higher set of services i.e.
Internet banking (icontact, mobile refill, travel currency card etc.)

Targeting strategy ( T )

 Corporate banking market: This market target the industries and fulfil their financial
needs.
 Capital market: This segment is targeted on the long term needs of the individual as well
as of industries
 Retail banking market: This segment is for the retail investor and provide them short
term financial credit for their personal, household needs.

Positioning strategy ( P )

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 Axis bank has positioned itself as a bank which gives higher standard of services through
product innovation for the diverse need of individual & corporate clients. So they want to
highlight following points in their positioning statement:
 Customer centric
 Service oriented
 Product innovation

The Communication Strategy

Communication Objectives

 Bring the bank into the top 3 banks in India. (At present it is on 6th position).
 Generate Brand awareness.
 Develop positive attitude about the brand.
 Give product information.
 Communicate Bank’s emphasis on high standard of services.
Result of the communication exercise

 Image change about the bank.

 Purchase our services

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 OTHER MARKETING STRATEGIES

1.) Axis focusing on strategy aimed at long term growths

As the economy is slowly recovering from the hard faces of recession, Indian banks are
forecasting a bright growth in its revenue and operations. The Axis Bank is all set to reap the
opportunities to sustain its growth over the years and to mark a global footprint.
Indian banks arrive at the business decisions after analyzing the long term economic and
financial conditions. Axis bank understands the immense business opportunities in the bank
business in India. Indian banks and their operations are looked with high degrees of anticipation
globally as they have successfully sustained recession. Global investors are in an all time ready
mood to invest in Indian banks. The analysis shows that Indian banks will sustain about 25%
growth in the next three to four years.

Inorganic Growth Opportunities

Inorganic growth opportunities like buying out are the best methods to increase the market
share. As many Indian banks are adopting the strategies of buyout to utilize the business options,
Axis bank takes a much neutral step. They are more focused on further improvising their business
operations by filling up the missing areas in their business strategies.

Efficient risk management capabilities are mandatory to operate successfully in the current
market. Axis bank has defined its operational planning considering in improvising its risk
management capabilities along with the immense growth the bank has achieved.

Creating More Value

Axis bank is less focused on the insurance space as they are less interested in diversifying
immensely but rather prefer to seize the huge growth opportunities in the bank business. With
reduced lateral hiring, Axis bank expects to meet the operational demands in the banking sector.
As a part of improvising, Axis bank is also looking at some marginal restructuring in its
operations.
As the competitor banks are analyzing the strategies for lending, Axis bank is looking for a
sustained stable margin rather than making the margin to go up. With a diverse customer nature,
whether it is Retail, SMEs mid corporate or large corporate, Axis bank believes in focusing its
strategies according to the customers who are chosen to be served.

2.) Axis Bank likely to limit retail expansion plan

Axis Bank will likely to limit its retail advance expansion plan due to various reasons such
as sluggish housing loan demand, recent foray into auto loan business and a cautious stance
on Personal loan.
The bank has set a target to increase its share of retail loans to 25% of total advances in next
two years from 20% now. To achieve the target, the growth rate of 26% (in retail advances) needs
to be improved substantially.

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 3.) Axis Bank plans to tap urban poor
Axis Bank has tied up with south-based microfinance institution Janalakshmi Social Services
to provide banking services to the urban poor.
There will use its client base to provide banking services of Axis bank and will work as
business correspondent to sell other products of the bank.
Axis Bank is one of the fastest growing banks of the country. As per analysts, this step
would help the lender to enter into micro finance space, which was till now largely
untapped by commercial banks.

4.) Axis Bank to cover 12,000 villages under it's financial inclusion plan

Bank implementing it’s rural expansion plans and intends to cover 5,500 villages for financial
inclusion by March 2011 and scale it up to 12,000 villages in five years’ time.
The bank has kick-started its financial inclusion initiative in villages located near Nashik in
the state of Maharashtra and Darjeeling in West Bengal . Financial inclusion consists of
providing banking services at affordable costs to weaker sections of society or the unbanked
segment, which does not have any access to the formal banking system.The RBI and Government
of India have made it mandatory for private sector banks to implement a financial inclusion
plans.

Complementary Strategies for Business Growth & Development

 Strategic alliances and collaborative partnerships

 Tie up with Maruti and Hyundai for selling car loans
 Tie up with Bajaj Allianz General Insurance
 ATM sharing based on alliances such as SBI and multibank payment networks

Value Chain Activities

It Outsourcing selected value chain activities are;-

1.Outsourcing recruitments to monsterindia.com

2. Outsourcing print operations to Xerox
3. Outsourcing of EBP and ATM management

Conclusion
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 Banking sector in India has gone through a metamorphosis change in its concept
perception and outlook quantitative expansion with quality has been a phenomenon in the
operations of the banking system bank being a service selling show has to meet the need of the
customers which vary from place to place, time to time and purpose to purpose and also at the
same time it has to sustain the tough competition coming from all the four endsS.
An increase in the income and saving of the urban population has raised hopes for
banking institutions to fill up the gaps by catering to the need of the potential customers and also
penetrate into new target markets like rural sectors through its innovative financial
products like micro finance and SBI is doing the same and this has been proved by so many
awards it has achieved in the recent past, A few of them being most preferred bank as declared by
CNBC in Aug 2007.
State bank of India earlier known as Imperial Bank has proved its existence
through introducing various innovative schemes and that also are considered as competitive
in present market.
In this span of time, they have also come up with new strategies so as to compete in this
fiercely competitive market where every next day a new scheme is introduced so as to grab the
market share.
It follows a centralized system, so as to bring synchronization in the decision making
process which helps the organization to create better strategies so as to focus on the
overall functioning and growth prospects of the bank.
At the same time it can be concluded that they need to focus on the human resources in
order to achieve the maximum market share.

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