PREFACE

MBA is not just learning but it is learning by doing. And it is during this program of
Master of Business Administration that we, “The Tomorrow’s managers” undergo
summer training in between the two-year of study.

This report is the outcome of six weeks of exhaustive training at the AXIS BANK,
BUNDI. The idea and intention of taking training in this field came up to me because of
tremendous changes in banking services.

These days presence of banking as service industry for anyone is must and no individual
can ignore it. To have an insight on this emerging domain of BANKS in India and its
potential as a career led me to AXIS to do my summer project in this field. The purpose
of training was to provide practical exposure of working environment, along with
learning of operational aspects of Banking Industry and the role managers play in the
sectors.

During our training the task assigned to us was comparative analysis of Current Accounts
and Financial Analysis of 4 year’s annual report.

It had been an enriching and experience that gave me immense knowledge and brief
insight of a banking industry.
 Acknowledgement
Concentration, dedication and application are necessary but not sufficient to achieve any
goal. They must be awarded by guidance, assistance and cooperation of some people to
make it enable.

Gratitude is short lived but when put in black and white; one hopes it to enjoy a longer
life. Many people have given their valuable time and ideas to enable us to complete our
project and project report. We are deeply indebted to all for their ideas and assistance, and
we bear the entire responsibility for weaknesses in the project.

I cannot forget the wholehearted support, which has given me an expert and learned
supervision of Mr. SACHIN CHODARY, Relationship Manager, and Business Banking
at Axis Bank Bundi branch, for giving us the opportunity to undergo this projection in
company.

We are highly obliged to express our praise and profound thanks to Mr. Vishal Arora, Mr.
Kamal Ramnani, and Mr. Lokesh Sharma for their expert guidance and co-operation
throughout the making of our project and I am highly obliged to them for supervision,
encouragement and valuable advice.

I am also indebted to my teachers Miss. Jyoti Kandpal who have been constant source of
inspiration and provided guidance to me at every point of time.

Lastly I would like to thank all those, who have, directly or indirectly, helped me in
making the project.
 Chapter: 1

1. Object of Study

1.1 EXECUTIVE SUMMARY

As a part of curriculum every management student is required to undergo about eight

weeks of practical training in an organization where he/she gets acquainted about the
management concepts take their shape to be finally implemented as policies and
programs. The student is therefore introduced to the practical aspects of the text he has
learned and gets a better understanding of the concept.

I was assigned a summer project on behalf of AXIS BANK – JAIPUR. I had to analyze
the –

 BUSINESS BANKING SERVICES (CURRENT ACCOUNTS) OF AXIS BANK

AND ITS COMPARISON WITH OTHER BANKS AND
 THE FINANCIAL GROWTH OF THE BANK IN FISCAL YEAR 2007-08.

AXIS Bank earlier known as UTI Bank was the first new generation private sector bank
to be established in India under the overall reform programmed initiated by the
government of India in 1991 under which nine new banking licenses were granted.

Axis Bank is one of the fastest growing banks in the country and has an extremely
competitive and profitable banking franchise evidenced by –

 Comprehensive portfolio of banking services including Corporate Credit, Retail

Banking, Business Banking, Capital Market, Treasury and International Banking.
 Sound technological platform with centralized database and operations enabling
24*7*365 ‘Anywhere Banking’, in order to render the dest customer service to its
more than 2.5 million customer base.

1.2 Training Profile:

 In my summer training the profile that assigned to me was to do market research,

sales, customer interaction and customer survey.
 Along with this my work was to pitch walk-in customers and make them
understand about the investment schemes and to call to the customers and to make
them aware about bank’s new schemes and facilities like zero balance current
accounts for e-tax payment etc.
 I did market research regarding the GICs to know that which insurance company
is preferred by most automobile dealers.
1.3 Research Methodology:

For collecting the data regarding my project I went in the different banks to gain the
information about their current account products, their business banking services and core
competencies they offer to attract the customers.

I collected financial data through internet and annual magazines of Axis.

1.4 Analysis:

As the competition intensifies the difference between features of Current Accounts

makes it narrowing down the cost, product features and offers. A customer not only opens
his account in any bank due to its BRAND VALUE but also because of its CUSTOMER
SERVICES exist as a CORE COMPETENCY OF AXIS.

1.5 Findings:

Business banking services of Axis Bank are more customized having segmented current
account products for different segments covering corporate, institutions, central and
government undertakings.

Axis bank has small pool of customers in comparison to other banks but due to its
customer centric approach it has more satisfied customers and this is the main reason of
its increasing financial gains in successive years.

1.6 Conclusion:

The CUSTOMER SATISFACTION and MARKET SHARE HOLDING is a very

sensitive issue. Due to the cut-throat competition with other banks there is a need to
regular check in all the parameters of banking.
 Chapter: 2
2.1 Industrial Profile:

2.1.1 History

Banks have influenced economies and politics for centuries. Historically, the primary
purpose of a bank was to provide loans to trading companies. Banks provided funds to
allow businesses to purchase inventory, and collected those funds back with interest when
the goods were sold. For centuries, the banking industry only dealt with businesses, not
consumers. Banking services have expanded to include services directed at individuals,
and risk in these much smaller transactions are pooled.

2.1.2 Origin of the word

The name bank derives from the Italian word banco "desk/bench", used during the
Renaissance by Florentines bankers, who used to make their transactions above a desk
covered by a green tablecloth. However, there are traces of banking activity even in
ancient times.

In fact, the word traces its origins back to the Ancient Roman Empire, where
moneylenders would set up their stalls in the middle of enclosed courtyards called
macella on a long bench called a bancu, from which the words banco and bank are
derived. As a moneychanger, the merchant at the bancu did not so much invest money as
merely convert the foreign currency into the only legal tender in Rome—that of the
Imperial Mint.

2.1.3 Banking in India:

Banking in India

Central bank Reserve Bank of India

Nationalized banks State Bank of India · State Bank of Mysore ·

Allahabad Bank · Andhra Bank · Bank of
Baroda · Bank of India · Bank of Maharashtra ·
Canara Bank · Central Bank of India ·
Corporation Bank · Dena Bank · Indian Bank ·
Indian Overseas Bank · Oriental Bank of
Commerce · Punjab & Sind Bank · Punjab
National Bank · Syndicate Bank · Union Bank of
India · United Bank of India · UCO Bank ·
 Vijaya Bank · IDBI Bank

Axis Bank · Bank of Rajasthan · Bharat

Overseas Bank · Catholic Syrian Bank ·
Centurion Bank of Punjab · City Union Bank ·
Development Credit Bank · Dhanalakshmi Bank
· Federal Bank · Ganesh Bank of Kurundwad ·
HDFC Bank · ICICI Bank · IndusInd Bank ·
Private banks ING Vysya Bank · Jammu & Kashmir Bank ·
Karnataka Bank Limited · Karur Vysya Bank ·
Kotak Mahindra Bank · Lakshmi Vilas Bank ·
Nainital Bank · Ratnakar Bank · SBI
Commercial and International Bank · South
Indian Bank · Tamilnad Mercantile Bank · YES
Bank

Citibank · HSBC · Standard Chartered ·

Foreign banks
Deutsche Bank

Regional banks South Malabar Gramin Bank

National Electronic Fund Transfer (NEFT) ·

Services
CashTree · Cashnet

2.1.4 Traditional banking activities

Banks act as payment agents by conducting checking or current accounts for customers,
paying cheques drawn by customers on the bank, and collecting cheques deposited to
customers' current accounts. Banks also enable customer payments via other payment
methods such as telegraphic transfer, EFTPOS, and ATM.

Banks borrow money by accepting funds deposited on current account, accepting term
deposits and by issuing debt securities such as banknotes and bonds. Banks lend money
by making advances to customers on current account, by making installment loans, and
by investing in marketable debt securities and other forms of money lending.

Banks provide almost all payment services, and a bank account is considered
indispensable by most businesses, individuals and governments. Non-banks that provide
payment services such as remittance companies are not normally considered an adequate
substitute for having a bank account.
Banks borrow most funds from households and non-financial businesses, and lend most
funds to households and non-financial businesses, but non-bank lenders provide a
significant and in many cases adequate substitute for bank loans, and money market
funds, cash management trusts and other non-bank financial institutions in many cases
provide an adequate substitute to banks for lending savings to.

2.1.5 Definition

The definition of a bank varies from country to country.

Under English common law, a banker is defined as a person who carries on the business
of banking, which is specified as:

• conducting current accounts for his customers

• paying cheques drawn on him, and
• collecting cheques for his customers.

In most English common law jurisdictions there is a Bills of Exchange Act that codifies
the law in relation to negotiable instruments, including cheques, and this Act contains a
statutory definition of the term banker: banker includes a body of persons, whether
incorporated or not, who carry on the business of banking' (Section 2, Interpretation).
Although this definition seems circular, it is actually functional, because it ensures that
the legal basis for bank transactions such as cheques do not depend on how the bank is
organised or regulated.

The business of banking is in many English common law countries not defined by statute
but by common law, the definition above. In other English common law jurisdictions
there are statutory definitions of the business of banking or banking business. When
looking at these definitions it is important to keep in mind that they are defining the
business of banking for the purposes of the legislation, and not necessarily in general. In
particular, most of the definitions are from legislation that has the purposes of entry
regulating and supervising banks rather than regulating the actual business of banking.
However, in many cases the statutory definition closely mirrors the common law one.
Examples of statutory definitions:

• "banking business" means the business of receiving money on current or deposit

account, paying and collecting cheques drawn by or paid in by customers, the
making of advances to customers, and includes such other business as the
Authority may prescribe for the purposes of this Act; (Banking Act (Singapore),
Section 2, Interpretation).

• "banking business" means the business of either or both of the following:

1. receiving from the general public money on current, deposit, savings or other
similar account repayable on demand or within less than [3 months] ... or with a
period of call or notice of less than that period;
 2. paying or collecting cheques drawn by or paid in by customers.
3. Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct
credit, direct debit and internet banking, the cheque has lost its primacy in most
banking systems as a payment instrument. This has lead legal theorists to suggest
that the cheque based definition should be broadened to include financial
institutions that conduct current accounts for customers and enable customers to
pay and be paid by third parties, even if they do not pay and collect cheques.
Accounting for bank accounts

Bank statements are accounting records produced by banks under the various accounting
standards of the world. Under GAAP and IFRES there are two kinds of accounts: debit
and credit. Credit accounts are Revenue, Equity and Liabilities. Debit Accounts are
Assets and Expenses. This means you credit credit accounts to increase their balances and
you debit debit accounts to increase their balances.

This also means you debit your savings account everytime you deposit money into it (and
the account is normally in deficit) and you credit your credit card account everytime you
spend money from it (and the account is normally in credit).

However, if you read your bank statement, it will say the opposite- that you have credited
your account when you deposit money, and you debit when you withdraw it. If you have
cash in your account you have a positive or credit balance and if you are overdrawn it
will say you have a negative or a deficit balance.

The reason for this is because the bank, and not you, has produced the bank statement.
Your savings might be your assets, but it is the bank's liability, so your savings account is
a liability account which is a credit account and should have a positive credit balance.
Your loans are your liabilities but the bank's assets so they are debit accounts which
should have a negative balance.

Below where bank transactions, balances, credits and debits are discussed, they are done
so from the viewpoint of the account holder which is traditionally what most people are
used to seeing.

2.1.6 Wider commercial role

However the commercial role of banks is wider than banking, and includes:

• issue of banknotes (promissory notes issued by a banker and payable to bearer on

demand)
• processing of payments by way of telegraphic transfer, EFTPOS, internet banking
or other means
• issuing bank drafts and bank cheques
• accepting money on term deposit
• lending money by way of overdraft, installment loan or otherwise
 • providing documentary and standby letters of credit (trade finance), guarantees,
performance bonds, securities underwriting commitments and other forms of off
balance sheet exposures
• safekeeping of documents and other items in safe deposit boxes
• currency exchange
• sale, distribution or brokerage, with or without advice, of insurance, unit trusts
and similar financial products as a 'financial supermarket'

2.1.7 Economic functions

The economic functions of banks include:

1. issue of money, in the form of banknotes and current accounts subject to cheque
or payment at the customer's order. These claims on banks can act as money
because they are negotiable and/or repayable on demand, and hence valued at par
and effectively transferable by mere delivery in the case of banknotes, or by
drawing a cheque, delivering it to the payee to bank or cash.
2. netting and settlement of payments -- banks act both as collection agent and
paying agents for customers, and participate in inter-bank clearing and settlement
systems to collect, present, be presented with, and pay payment instruments. This
enables banks to economise on reserves held for settlement of payments, since
inward and outward payments offset each other. It also enables payment flows
between geographical areas to offset, reducing the cost of settling payments
between geographical areas.
3. credit intermediation -- banks borrow and lend back-to-back on their own account
as middle men
4. credit quality improvement -- banks lend money to ordinary commercial and
personal borrowers (ordinary credit quality), but are high quality borrowers. The
improvement comes from diversification of the bank's assets and the bank's own
capital which provides a buffer to absorb losses without defaulting on its own
obligations. However, since banknotes and deposits are generally unsecured, if the
bank gets into difficulty and pledges assets as security to try to get the funding it
needs to continue to operate, this puts the note holders and depositors in an
economically subordinated position.
5. maturity transformation -- banks borrow more on demand debt and short term
debt, but provide more long term loans. Bank can do this because they can
aggregate issues (e.g. accepting deposits and issuing banknotes) and redemptions
(e.g. withdrawals and redemptions of banknotes), maintain reserves of cash,
invest in marketable securities that can be readily converted to cash if needed, and
raise replacement funding as needed from various sources (e.g. wholesale cash
markets and securities markets) because they have a high and more well known
credit quality than most other borrowers.
2.1.8 Law of banking

Banking law is based on a contractual analysis of the relationship between the bank and
the customer. The definition of bank is given above, and the definition of customer is any
person for whom the bank agrees to conduct an account.

The law implies rights and obligations into this relationship as follows:

1. The bank account balance is the financial position between the bank and the
customer, when the account is in credit, the bank owes the balance to the
customer, when the account is overdrawn, the customer owes the balance to the
bank.
2. The bank engages to pay the customer's cheques up to the amount standing to the
credit of the customer's account, plus any agreed overdraft limit.
3. The bank may not pay from the customer's account without a mandate from the
customer, e.g. a cheque drawn by the customer.
4. The bank engages to promptly collect the cheques deposited to the customer's
account as the customer's agent, and to credit the proceeds to the customer's
account.
5. The bank has a right to combine the customer's accounts, since each account is
just an aspect of the same credit relationship.
6. The bank has a lien on cheques deposited to the customer's account, to the extent
that the customer is indebted to the bank.
7. The bank must not disclose the details of the transactions going through the
customer's account unless the customer consents, there is a public duty to
disclose, the bank's interests require it, or under compulsion of law.
8. The bank must not close a customer's account without reasonable notice to the
customer, because cheques are outstanding in the ordinary course of business for
several days.

These implied contractual terms may be modified by express agreement between the
customer and the bank. The statutes and regulations in force in the jurisdiction may also
modify the above terms and/or create new rights, obligations or limitations relevant to the
bank-customer relationship.

2.1.9 Entry regulation

Currently in most jurisdictions commercial banks are regulated by government entities

and require a special bank licence to operate.

Usually the definition of the business of banking for the purposes of regulation is
extended to include acceptance of deposits, even if they are not repayable to the
customer's order, however money lending, by itself, is generally not included in the
definition.
Unlike most other regulated industries, the regulator is typically also a participant in the
market, i.e. government owned bank (a central bank). Central banks also typically have a
monopoly on the business of issuing banknotes. However, in some countries this is not
the case, e.g. in the UK the Financial Services Authority licences banks and some
commercial banks, such as the Bank of Scotland, issue their own banknotes in
competition with the Bank of England, the UK government's central bank.

Some types of entity may be partly or wholly exempt from bank licence requirements and
are regulated by separate regulators, e.g. building societies and credit unions.

The requirements for the issue of a bank licence vary between jurisdictions but typically
incude:

1. Minimum capital
2. Minimum capital ratio
3. 'Fit and Proper' requirements for the bank's controllers, owners, directors, and/or
senior officers
4. Approval of the bank's business plan as being sufficiently prudent and plausible.

2.1.10 Banking channels

Banks offer many different channels to access their banking and other services:

• A branch, banking centre or financial centre is a retail location where a bank or

financial institution offers a wide array of face-to-face service to its customers
• ATM is a computerised telecommunications device that provides a financial
institution's customers a method of financial transactions in a public space without
the need for a human clerk or bank teller. Most banks now have more ATMs than
branches, and ATMs are providing a wider range of services to a wider range of
users. For example in Hong Kong, most ATMs enable anyone to deposit cash to
any customer of the bank's account by feeding in the notes and entering the
account number to be credited. Also, most ATMs enable card holders from other
banks to get their account balance and withdraw cash, even if the card is issued by
a foreign bank.
• Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages containing
other matter, are delivered to destinations around the world. This can be used to
deposit cheques and to send orders to the bank to pay money to third parties.
Banks also normally use mail to deliver periodic account statements to customers.
• Telephone banking is a service provided by a financial institution which allows its
customers to perform transactions over the telephone. This normally includes bill
payments for bills from major billers (e.g. for electricity).
• Online banking is a term used for performing transactions, payments etc. over the
Internet through a bank, credit union or building society's secure website
2.1.11 Types of banks

Banks' activities can be divided into retail banking, dealing directly with individuals and
small businesses; business banking, providing services to mid-market business; corporate
banking, directed at large business entities; private banking, providing wealth
management services to high net worth individuals and families; and investment banking,
relating to activities on the financial markets. Most banks are profit-making, private
enterprises. However, some are owned by government, or are non-profits.

Central banks are normally government owned banks, often charged with quasi-
regulatory responsibilities, e.g. supervising commercial banks, or controlling the cash
interest rate. They generally provide liquidity to the banking system and act as the lender
of last resort in event of a crisis.

2.1.12 Types of retail banks

• Commercial bank: the term used for a normal bank to distinguish it from an
investment bank. After the Great Depression, the U.S. Congress required that
banks only engage in banking activities, whereas investment banks were limited
to capital market activities. Since the two no longer have to be under separate
ownership, some use the term "commercial bank" to refer to a bank or a division
of a bank that mostly deals with deposits and loans from corporations or large
businesses.
• Community Banks: locally operated financial institutions that empower
employees to make local decisions to serve their customers and the partners
• Community development banks: regulated banks that provide financial services
and credit to under-served markets or populations.
• Postal savings banks: savings banks associated with national postal systems.
• Private banks: manage the assets of high net worth individuals.
• Offshore banks: banks located in jurisdictions with low taxation and regulation.
Many offshore banks are essentially private banks.
• Savings bank: in Europe, savings banks take their roots in the 19th or sometimes
even 18th century. Their original objective was to provide easily accessible
savings products to all strata of the population. In some countries, savings banks
were created on public initiative, while in others socially committed individuals
created foundations to put in place the necessary infrastructure. Nowadays,
European savings banks have kept their focus on retail banking: payments,
savings products, credits and insurances for individuals or small and medium-
sized enterprises. Apart from this retail focus, they also differ from commercial
banks by their broadly decentralised distribution network, providing local and
regional outreach and by their socially responsible approach to business and
society.
• Building societies and Lanrdesbanks: conduct retail banking.
• Ethical banks: banks that prioritize the transparency of all operations and make
only what they consider to be socially-responsible investments.
• Islamic banks: Banks that transact according to Islamic principles.
2.1.13 Types of investment banks

• Investment banks "underwrite" (guarantee the sale of) stock and bond issues,
trade for their own accounts, make markets, and advise corporations on capital
markets activities such as mergers and acquisitions.
• Merchant banks were traditionally banks which engaged in trade finance. The
modern definition, however, refers to banks which provide capital to firms in the
form of shares rather than loans. Unlike venture capital firms, they tend not to
invest in new companies.

2.1.14 Both combined

• Universal banks, more commonly known as financial services companies, engage

in several of these activities. For example, First Bank (a very large bank) is
involved in commercial and retail lending, and its subsidiaries in tax-havens offer
offshore banking services to customers in other countries. Other large financial
institutions are similarly diversified and engage in multiple activities. In Europe
and Asia, big banks are very diversified groups that, among other services, also
distribute insurance, hence the term bancassurance is the term used to describe the
sale of insurance products in a bank. The word is a combination of "banque or
bank" and "assurance" signifying that both banking and insurance are provided by
the same corporate entity.

2.1.12 Islamic banking (other types of Banks)

• Islamic banks adhere to the concepts of Islamic law. Islamic banking revolves
around several well established concepts which are based on Islamic canons.
Since the concept of interest is forbidden in Islam, all banking activities must
avoid interest. Instead of interest, the bank earns profit (mark-up) and fees on
financing facilities that it extends to the customers.

2.1.13 Size of global banking industry

Worldwide assets of the largest 1,000 banks grew 16.3% in 2006/2007 to reach a record
$74.2 trillion. This follows a 5.4% increase in the previous year. EU banks held the
largest share, 53%, up from 43% a decade earlier. The growth in Europe’s share was
mostly at the expense of Japanese banks whose share more than halved during this period
from 21% to 10%. The share of US banks remained relatively stable at around 14%. Most
of the remainder was from other Asian and European countries. .

The US had by far the most banks (7,540 at end-2005) and branches (75,000) in the
world. The large number of banks in the US is an indicator of its geography and
regulatory structure, resulting in a large number of small to medium sized institutions in
its banking system. Japan had 129 banks and 12,000 branches. In 2004, Germany, France,
and Italy had more than 30,000 branches each—more than double the 15,000 branches in
the UK.
2.1.14 Bank crisis

Banks are susceptible to many forms of risk which have triggered occasional systemic
crises. Risks include liquidity risk (the risk that many depositors will request withdrawals
beyond available funds), credit risk (the risk that those who owe money to the bank will
not repay), and interest rate risk (the risk that the bank will become unprofitable if rising
interest rates force it to pay relatively more on its deposits than it receives on its loans),
among others.

Banking crises have developed many times throughout history when one or more risks
materialize for a banking sector as a whole. Prominent examples include the U.S. Savings
and Loan crisis in 1980s and early 1990s the Japanese banking crisis during the 1990s,
the bank run that occurred during the Great Depression, and the recent liquidation by the
central Bank of Nigeria, where about 25 banks were liquidated.

2.1.15 Challenges within the banking industry

The banking industry is a highly regulated industry with detailed and focused regulators.
All banks with FDIC-insured deposits have the FDIC as a regulator; however, for
examinations, the Federal Reserve is the primary federal regulator for Fed-member state
banks; the Office of the Comptroller of the Currency (“OCC”) is the primary federal
regulator for national banks; and the Office of Thrift Supervision, or OTS, is the primary
federal regulator for thrifts. State non-member banks are examined by the state agencies
as well as the FDIC. National banks have one primary regulator—the OCC.

Each regulatory agency has their own set of rules and regulations to which banks and
thrifts must adhere.

The Federal Financial Institutions Examination Council (FFIEC) was established in 1979
as a formal interagency body empowered to prescribe uniform principles, standards, and
report forms for the federal examination of financial institutions. Although the FFIEC has
resulted in a greater degree of regulatory consistency between the agencies, the rules and
regulations are constantly changing.

In addition to changing regulations, changes in the industry have led to consolidations

within the Federal Reserve, FDIC, OTS and OCC. Offices have been closed, supervisory
regions have been merged, staff levels have been reduced and budgets have been cut. The
remaining regulators face an increased burden with increased workload and more banks
per regulator. While banks struggle to keep up with the changes in the regulatory
environment, regulators struggle to manage their workload and effectively regulate their
banks. The impact of these changes is that banks are receiving less hands-on assessment
by the regulators, less time spent with each institution, and the potential for more
problems slipping through the cracks, potentially resulting in an overall increase in bank
failures across the United States.
The changing economic environment has a significant impact on banks and thrifts as they
struggle to effectively manage their interest rate spread in the face of low rates on loans,
rate competition for deposits and the general market changes, industry trends and
economic fluctuations. It has been a challenge for banks to effectively set their growth
strategies with the recent economic market. A rising interest rate environment may seem
to help financial institutions, but the effect of the changes on consumers and businesses is
not predictable and the challenge remains for banks to grow and effectively manage the
spread to generate a return to their shareholders.

The management of the banks’ asset portfolios also remains a challenge in today’s
economic environment. Loans are a bank’s primary asset category and when loan quality
becomes suspect, the foundation of a bank is shaken to the core. While always an issue
for banks, declining asset quality has become a big problem for financial institutions.
There are several reasons for this, one of which is the lax attitude some banks have
adopted because of the years of “good times.” The potential for this is exacerbated by the
reduction in the regulatory oversight of banks and in some cases depth of management.
Problems are more likely to go undetected, resulting in a significant impact on the bank
when they are recognized. In addition, banks, like any business, struggle to cut costs and
have consequently eliminated certain expenses, such as adequate employee training
programs.

Banks also face a host of other challenges such as aging ownership groups. Across the
country, many banks’ management teams and board of directors are aging. Banks also
face ongoing pressure by shareholders, both public and private, to achieve earnings and
growth projections. Regulators place added pressure on banks to manage the various
categories of risk. Banking is also an extremely competitive industry. Competing in the
financial services industry has become tougher with the entrance of such players as
insurance agencies, credit unions, check cashing services, credit card companies, etc.

As a reaction, banks have developed their activities in financial instruments, through

financial market operations such as brokerage and trading and become big players in such
activities.

2.1.16 Profitability

A bank generates a profit from the differential between the level of interest it pays for
deposits and other sources of funds, and the level of interest it charges in its lending
activities. This difference is referred to as the spread between the cost of funds and the
loan interest rate. Historically, profitability from lending activities has been cyclical and
dependent on the needs and strengths of loan customers. In recent history, investors have
demanded a more stable revenue stream and banks have therefore placed more emphasis
on transaction fees, primarily loan fees but also including service charges on an array of
deposit activities and ancillary services (international banking, foreign exchange,
insurance, investments, wire transfers, etc.). Lending activities, however, still provide the
bulk of a commercial bank's income.
In the past 10 years American banks have taken many measures to ensure that they
remain profitable while responding to increasingly changing market conditions. First, this
includes the Gramm-Leach-Bliley Act, which allows banks again to merge with
investment and insurance houses. Merging banking, investment, and insurance functions
allows traditional banks to respond to increasing consumer demands for "one-stop
shopping" by enabling cross-selling of products (which, the banks hope, will also
increase profitability). Second, they have expanded the use of risk-based pricing from
business lending to consumer lending, which means charging higher interest rates to
those customers that are considered to be a higher credit risk and thus increased chance of
default on loans. This helps to offset the losses from bad loans, lowers the price of loans
to those who have better credit histories, and offers credit products to high risk customers
who would otherwise been denied credit. Third, they have sought to increase the methods
of payment processing available to the general public and business clients. These
products include debit cards, pre-paid cards, smart cards, and credit cards. They make it
easier for consumers to conveniently make transactions and smooth their consumption
over time (in some countries with under-developed financial systems, it is still common
to deal strictly in cash, including carrying suitcases filled with cash to purchase a home).
However, with convenience of easy credit, there is also increased risk that consumers will
mismanage their financial resources and accumulate excessive debt. Banks make money
from card products through interest payments and fees charged to consumers and
transaction fees to companies that accept the cards.

The growth in the Indian Banking Industry has been more qualitative than quantitative
and it is expected to remain the same in the coming years. Based on the projections made
in the "India Vision 2020" prepared by the Planning Commission and the Draft 10th Plan,
the report forecasts that the pace of expansion in the balance-sheets of banks is likely to
decelerate. The total assets of all scheduled commercial banks by end-March 2010 is
estimated at Rs 40,90,000 crores. That will comprise about 65 per cent of GDP at current
market prices as compared to 67 per cent in 2002-03. Bank assets are expected to grow at
an annual composite rate of 13.4 per cent during the rest of the decade as against the
growth rate of 16.7 per cent that existed between 1994-95 and 2002-03. It is expected that
there will be large additions to the capital base and reserves on the liability side.

The Indian Banking Industry can be categorized into non-scheduled banks and scheduled
banks. Scheduled banks constitute of commercial banks and co-operative banks. There
are about 67,000 branches of Scheduled banks spread across India. As far as the present
scenario is concerned the Banking Industry in India is going through a transitional phase.

The Public Sector Banks(PSBs), which are the base of the Banking sector in India
account for more than 78 per cent of the total banking industry assets. Unfortunately they
are burdened with excessive Non Performing assets (NPAs), massive manpower and lack
of modern technology. On the other hand the Private Sector Banks are making
tremendous progress. They are leaders in Internet banking, mobile banking, phone
banking, ATMs. As far as foreign banks are concerned they are likely to succeed in the
Indian Banking Industry.
In the Indian Banking Industry some of the Private Sector Banks operating are IDBI
Bank, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan
Ltd. and banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO
Bank, Oriental Bank, Allahabad Bank among others. ANZ Grindlays Bank, ABN-AMRO
Bank, American Express Bank Ltd, Citibank are some of the foreign banks operating in
the Indian Banking Industry.

2.2 Company Profile:

Axis Bank , previously called UTI 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 jointly by the
dministrator of the Specified Undertaking of the Unit Trust of India (UTI-I),
Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd.,
National Insurance Company Ltd., The New India Assurance Company , The
Oriental Insurance Corporation and United Insurance Company Ltd. UTI-I holds
a special position in the Indian capital markets and has promoted many leading
financial institutions in the country.P J Nayak is its Chairman and Managing
Director.

Banks registered office is located in Ahmedabad and its Central Office is in

Mumbai. The bank provides 24 hrs banking convenience to its customers
through its largest ATM network in the country with 2595 ATMs and network of
608 branches

2.2.1 Institution Information :

Head Office: Axis Bank Limited
“TRISHUL” III Floor,
Opp. Samrateshwer Temple,
Nr. Law Garden, Ellisbridge
Ahemedabad – 380006
Gujarat India

Website: http://www.axisbank.com/

No. of branches 608

No. of ATMs 2595

Customer Care Mumbai (002)67074407, 011-2331 1051 /052/

Number 067, Chennai 044 – 2855 1515 / 2859 2264,

The erstwhile UTI Bank has changed its name to Axis Bank effective July 30,
2007. This is the first time that a bank has gone in for a brand-change
voluntarily; earlier names of banks have been changed either due to a merger or
an acquisition.

UTI brand was given in 1994 by its promoters and UTI Bank could use the
brand only till January 2008 as per Govt directives. Many unrelated shareholder
entities like UTI Technological Services, UTI Investor Services and UTI
Securities were carrying the UTI brand.

Axis refers to a line of reference, stability and maturity. The new logo of the
bank has the same color as the previous UTI logo but now uses the alphabet ‘A’
from the word Axis. The bank is also publicizing the change through campaign
titled “Twins both equal”.

Axis Bank has business of Rs.102,000 crore with a market capitalization of

Rs.21,817 crore making it the fifth largest in India . It has 60 lakh customers and
communicating to them the name change would be the prime exercise for the
bank.

Immediately, the bank will replace signage’s in 8 metro cities while in other 250
cities by September. It is also informing customers about the brand change
though Internet and mobile banking, ATM, call centers, newspapers and radio.
Even elements like cheque books, welcome kits, and pay orders have been
resigned to reflect the new look.

Now with a name having universal appeal, the bank would now work towards becoming
a multinational bank and diversifying into other financial services like AMC, insurance
and restructure operations to reflect a modern approach to banking.

However, the bank also has a task in its hand to communicate to the customers
and public about its nature as having a UTI name prefixed would have implied
that it has been a quasi-government bank. It would also have to educate about its
shareholding to further expand itself into the retail business.

Axis Bank in India today is capitalized with Rs. 282.65 Crores with 57.05%
public holding other than promoters. It has more than 574 branch offices and
Extension Counters in the country with over 2428 Axis Bank ATM proving to be
one of the largest ATM networks in the country. It commits to adopt the best
industry practices internationally to achieve excellence. It has strengths in retail
as well as corporate banking. By the end of June 2007, Axis Bank in India had
over 60 lakhs debit cards. This is the first bank in India to offer the AT PAR
Cheque facility, without any charges, to all its Savings Bank customers in all the
places across the country where it has presence.

2.2.2 Few milestones of the Axis bank:

Mar. 07: Axis Bank joins hands with IIFCL to provide leverage for
infrastructural projects in the country.

Mar 07: AXIS Bank comes up with full license bank branch in Hong Kong .

Feb 07: Finance minister Shri P. Chidambaram introduces Shriram – AXIS Bank
Co - Branded Credit Card especially for Small Road Transport Operators
(SRTOS).

Aug 06: AXIS Bank holds the position of being the first Indian Bank to
successfully issue Foreign Currency Hybrid Capital in the International
Market.

Aug 06: AXIS Bank launches the beneficial scheme of issuance of "Senior Citizen
ID Card" in collaboration with Dignity Foundation.

Dec 05: AXIS Bank adds International Financing Review (IFR) Asia 'India Bond
House' award for the year 2005 in its appreciation record.

Jul 05: AXIS Bank and Visa International launch Mobile Refill facility - Anytime,
Anywhere Pre-Paid Mobile Refill for all Visa Cardholders in India.

Mar 05: AXIS Bank gets counted on the London Stock Exchange, raises US$
239.30 million through Global.

2.2.3 Share Capital of Axis Bank

· Authorised Share Capital :Rs. 300 Crores

· Paid Up Share Capital : Rs. 232.86 Crores

2.2.4 Branch Network

At the end of April 2008,the Bank has a very wide network of more than 671
branch offices and Extension Counters. The Bank has a network of over 2764
ATMs. The Bank's Registered Office is at Ahmedabad and its Central Office is
located at Mumbai. .

2.2.5 AXIS Axiom

An axis is a line of stability around which each planet rotates . The earth’s axis
concepts the polar coordinates and impacts everything from our sense of time to
the passing of seasons. A bank is akin to the axis of our financial world. In its
fundamental role it connects the two poles of the financial system – the savers
and the users of money. Of course, it has a much larger role to play, and its
impact is nearly universal – spanning as it does- the individualized needs of an
account holder to the institutional requirement of governments.

The term Axis represents the bank presence, and signifies the universality of its
services. It speaks of the transnational ambitions we nurture . It was a time for
renaming and Axis is what the bank today is.

 Wide Branch Network including the third largest number of ATMs spanning the
country The convenience of 24 * 7 phone and banking facility
 Comprehensive range of product offering for the retail and corporate sectors
encompassing retail loans, corporate credit, forex, investment banking, depository
and investment advisory services
 Broad spectrum of clients from individuals and corporates to the central
and state governments
 Consistently clocked profits and distributed dividends
 Steady augmentation of the asset base through increased investments and
advances
 Growing international presence
 The core of all your banking needs delivered

2.2.6 The Axis Banks Products:

Priority banking service offers you a host of banking, investment and lifestyle
privileges, which will enrich banking experience of customers. As a priority
banking customer, a dedicated relationship manager will cater to all customer’s
banking needs at the branch. One can enjoy special privileges on saving bank
account, such as free pick-up and drop of cheques and cash, monthly account
statement, multi-city at Par chequebook anywhere banking facility, free
passbook updates etrc. A complimentary priority banking international debit
card comes packed with a host of facilities such as free usage at all VISA ATMs
in India, Zero fuel surcharge and exciting reward point scheme. The
complimentary financial advisory services of the bank will help the customer’s
investment needs and decisions. In addition, Priority banking offers some unique
concierge assistance services. Priority banking customers also enjoy a host of
lifestyle privileges such as invitation to exclusive film screenings, investment
conferences, music concerts etc, and special offers pertaining to shopping,
dining and travel. Bank is also take care of the special banking requirements of
the NRI customers by offering them the Priority Banking – NRI services.

Beside this AXIS offers a comprehensive range of innovative products and

financial services that would be available to customers. Just some of these are
given below –

2.2.7 Easy Access Through Various Channels:

Axis Bank account is accessible through a number of channels. A fast growing
network of over 2400 ATM’s backs up an ever increasing nation wide network
of more than 500 offices. Customers can also avail telebanking, internet banking
(iConnect), and mobile banking facilities.

2.2.8 Term Deposit:

Axis bank offer a range of options like reinvestment plan, monthly income and
quarterly income schemes, ranging in duration from 15 days to 10 years that
enable one to put his saving to work in a manner of his choice.

2.2.9 Locker Facility:

Customers can avail of Safe Deposit locker facilities at most of our branches. As
a priority banking customer one can enjoy preferential allotment of lockers.

2.2.10 Financial Authority Advisor:

Axis bank offer its customers complete personal finance solutions. Through
financial advisory services bank understand customers investment requirements
and design a tailor-made financial solution to customers.

2.2.11 Online Trading:

AXIS bank in alliance with Geojit Financial Services offers you an Online
Trading Account, which will let its customers trade in the comfort of home or
office either through internet or the phone.

2.2.12 Wealth Advisory Services:

Wealth advisory Services from AXIS Bank is focused on the health creation,
wealth protection and wealth transmission neet of customers.

2.2.13 Depository Services:

AXIS Bank a registered member (Depository Participant) of NSDL, presents DP

Services, to cater to requirements of Transfer of shares, Receipt of corporate
benefits, Dematerialization and Rematerialization of customers securities,
Pledge – Hypothecation of securities, and Freezing of accounts.

2.2.14 Current Accounts:

We realize that different businesses need different solutions according to their

size, nature and scale of operations. We also understand what you need to add
impetus to your business. Our range of Current Accounts comes geared to
answer all kinds of business requirements. Each of our Current Accounts has
been customized to ensure efficient management, quick transfers and instant
availability of your funds across our network.

2.2.15 Salary Account:

Salary Savings Account comes with a host of facilities that give your
employees access to the complete gamut of banking services (including
overdrafts, loans and zero-balance requirements) on a preferential basis. Making
it the perfect incentive for your employees

2.2.16 Retail Loans:

AXIS Bank offers products like personal loans, Educational loans, Home
Loans, Loans against shares vehicle loans and anything one have dreamed of.

2.2.17 NRI Services:

AXIS Bank offer its NRI cutomers a plethora of services customized to their
needs, such as an entire bouquet of NRI Deposit Products & Services, free
international debit card with a personal accident insurance cover, portfolio

2.2.18 Travel Currency Card:

Travel Currency Card is a secure, convenient and hassle free way to carry
money and make payments when in foreign shores. The Travel Currency Card
gives you a 24-hour access to your money. Withdraw funds in the local currency
from any Visa or Visa Plus ATM's (Automated Teller Machine) as well as pay
for all your purchases in any country you visit, anywhere in the world

2.2.19 Remittance Card:

Money at your doorstep

Axis Bank's Remittance Card is meant for people who receive remittances from
abroad. It aims to make the procedure of receiving money from your loved ones
abroad easy and hassle free. Thereby rendering the age-old instruments like
Demand Drafts and Pay Orders obsolete.
This card is brought to you in association with www.Remit2India.com, a global
online money transfer service of Times Online Money Limited. Funds remitted
through www.Remit2India.com are directly loaded onto the Remittance Card,
which you, as the beneficiary of the remitted funds, have access to anytime and
anywhere.

2.2.20 Resident Foreign Currency (RFC) Account:

RFC accounts can be opened, held and maintained by a person resident in India
with an authorized dealer for depositing eligible foreign exchange funds once
the individual has ceased to be a NRI. Citizens of India or PIOs who have been
non-residents for a continuous period of not less than one year and have become
resident in India on or after 18 April, 1992.

2.2.21 Trust & Saving Account:

Axis Bank's Trust Account is an effort to offer thoughtful banking for people
who spend their lives thinking of others. It is a complete banking solution for
Trusts, Associations, Societies, Government Bodies, Section 25 companies and
NGOs, so that the organizations can devote all of their time to their noble
motivations.

2.2.22 Cash Management Services:

Axis Bank offers a wide range of collection and payment services to meet your
complex cash management needs. Payments received from your buyers and
made to your suppliers are efficiently processed to optimise your cash flow
position and to ensure the effective management of your business' operating
funds. The flow of receivables and payables can also be seen through our web
solution Above all our quick adaptation of the latest technology differentiates us
from the other competing banks.

2.2.23 Payment Of Government Taxes:

The Bank is authorised for Collection of Income or Other Direct Taxes on behalf
of Central Board of Direct Taxes (CBDT) w.e.f 1 October, 2003. The assessees
or taxpayers can pay Income or Other Direct Taxes as listed below at 214
authorised branches of Axis Bank across the country.

 Corporation Tax - Tax on Companies and Tax Deducted at Source from

Companies
 Income Tax
 Interest Tax and Expenditure Tax
 Gift Tax
 Wealth Tax
 Fringe Benefit Tax (FBT)
 Securities Transaction Tax (STT)
 Banking Cash Transaction Tax (BCTT)
 Other Tax Deducted or collected at source (TDS or TCS) on salaries of
Employees, income from Fixed Deposits, Vendor Payments, Rent,
Income from Game Shows or Lottery, etc.
 Any other Direct Tax including Advance Tax
Verified by Visa (VBV) is an easy to use, secured online payment service from
Axis Bank that lets you shop securely online with your existing Axis Bank Visa
Debit Card. This service through a simple checkout process, confirms your
identity when you make purchases on the Internet.

Through a personal assurance message it also reassures you of the authenticity

of the online store.

2.2.24 Debit Cards that can be registered to Verified by Visa

Gold Debit Card International Debit International Debit

Card Card

NRI International Power Salute Priority Debit

Debit Card Debit Card Card

Smart Privilege
Debit Card
 Chapter: 3
3.1 INTRODUCTION TO CURRENT ACCOUNTS

3.1.1 What is Current account?

 A running account supporting unlimited withdrawals and deposits

 A current account is meant for convenience and not to save money

3.1.2 Who needs a Current Account?

Businessman, Joint stock companies, Institutions, Public authorities,

public corporations etc. Any business that has numerous banking
transactions needs a current account

3.1.3 Benefits:

1. Card Convenience:

Get your free ATM cum DEBIT Card and have access to the widest network of over
5400 ATMs across the country to withdraw cash, enquire about your balance, etc.
Moreover, your card enables you to shop at more than 23,000 Merchant
Establishments in India . You can also avail yourself of our International ATM-cum-
Debit Card which can be used within as well as outside India , at a nominal fee.

2. Easy and Wide Accessibility

Transact at your convenience, saving time and cost through SBI internet Banking You
can also withdraw cash from Maestro endorsed ATMs and from ATMs of HDFC
Bank, UTI Bank, Andhra Bank, Punjab National Bank, Corporation Bank, etc., at a
nominal fee.

3. Monitoring Your Account

 Monitor and control your funds through SBI Internet Banking or/ and through
Passbook/ statement of account facility.Alternatively, access your account by
downloading Instant SBI on your computer.

4. Transaction Ease
 Unlimited number of payments
 Make payments by giving us standing instructions
 Remit funds from any part of the country to your account.
 Upcountry Cheque Collection facility.

5. Other Facilities:

 Overdraft Facility.
 Transfer of accounts between our wide network of branches without any charge.
 Nomination Facility - Available.
 Low minimum balance requirements

3.1.4 BUSINESS BANKING SERVICES OF AXIS BANK:

Axis Bank is committed to creating an easy and comfortable banking

environment for its customer’s business. It realizes that different businesses
need different solutions according to their size, nature and scale of operations. It
also understands what a customer needs to add impetus to his business. Its
range of Current Accounts comes geared to answer all kinds of business
requirements.

Axis Bank brings different kinds of current accounts for different types of
businesses. One can select the one that best suits to his business requirements.

Axis Bank's Current Accounts come equipped with the following features to
give maximum value for your money.

Features:

Anywhere Banking
Banks Current Account allows its customers to bank from all our branches and
extension counters. One can deposit cash, withdraw cash, deposit cheques, and
issue 'at-par' cheques at any of its branches.

Instant Fund Transfer

customers can transfer funds instantly between any of banks branches. Funds
transfers can be effected online, right from customers desktop, through internet
banking services.
Internet Banking
Axis Bank presents Corporate iConnect - a unique Net Banking platform for its
current account customers. Available with multiple user IDs, depending on your
needs. Access your account at any time form anywhere. You can transfer funds
to your own accounts or to third party accounts within Axis Bank & Inter Bank
covering over 25,000 branches of various banks. Corporate iConnect also
permits transaction initiation by one user and approval by another. You can also
execute bulk payments like salary and commission across Axis Bank network,
right from your desktop.

At-Par (Multicity) Chequebook

Enjoy the benefits of multicity chequebook with Axis Bank's current accounts.
You can issue cheques payable at par at all our branches across the country. Your
cheques will be treated as local cheques at more than 375 locations as on
January 31, 2008.

ATM or Debit Card

With every Current Account (for proprietary and partnership concerns), you can
avail upto 2 ATM cum Debit cards, which allow you round the clock access to
your account from any of all our ATMs all over the country. You can withdraw
upto Rs 40,000 a day.

Free Monthly Account Statement

By courier and daily on email.

Mobile Banking
Mobile Banking will enable you to bank with us through your mobile phone
irrespective of where you are.

Phone Banking
Phone banking or Tele-banking service can help you access your account from
your telephone anytime you want.
 3.2 CURRENT ACCOUNT PRODUCTS:

3.2.1 Normal Current Account

At a Monthly Average balance of Rs 10,000 this account takes you into the all
new world of banking.

At-Par Cheque Facility

Enjoy the benefits of payable 'At-Par' chequebook at very nominal charges.
Issue cheques payable at par at any of our branches / outlets, presently 575
across the country.

Inter Branch Cash Deposit Facility

Deposit cash upto Rs. 50,000 per day at a remote branch for instant credit into
your account.

Home Branch Cash Withdrawal

Free upto 50 transactions for unlimited amount per month.

Local Cheque Deposit Facility

Deposit cheques at any Axis Bank branch and get the credit into your account.

Demand Drafts
Avail Demand Drafts at very nominal charges. You can issue demand drafts at
any of our branches / outlets, presently 575 and a wide network of correspondent
bank locations.

Outstation Cheque Collection

Avail outstation cheques.

3.2.2 Business Advantage Account

As your business grows, so do your banking requirements. For that you need an
account that can keep pace with your growth. Business Advantage Account, at a
Monthly Average balance of Rs 25,000 is just right for you.

At-Par Cheque and Local Cheque Deposit Facility

Issue cheques payable 'At-Par' and deposit cheques for local clearing at any of
our branches / outlets, presently 575 across the country. This facility is free for
10 transactions and upto Rs 10 lacs per month and at nominal charges beyond
free limit.

Pay Orders
Free 3 Pay Orders per day from your branch.

Inter Branch Cash Deposit Facility

Deposit cash upto Rs. 75,000 per day at a remote branch for instant credit into
your account.

Intercity Cash Withdrawal Facility

Cash withdrawal upto Rs 2,00,000 per day at a remote branch.

Home Branch Cash Withdrawal

Free 75 transactions per month for unlimited amount.

Demand Drafts
Free 10 Demand Drafts upto Rs 3 lacs per month, payable at other Axis Bank
locations.

Free Fund Transfer Facility

12 transactions upto Rs 10 lacs per month.

Outstation Cheque Collection

Avail outstation cheques.


3.2.3 Business Classic Account:

Business Classic Account from Axis Bank helps you co-ordinate your finances
perfectly with total control on your funds. So enjoy the power. All at a Monthly
Average Balance of Rs 1 lac.

At-Par Cheque Facility

Free 20 transactions upto Rs 50 lacs per month for issue of 'at-par' cheques and
deposit for local collections.
Pay Orders
Free 5 Pay Orders per day from your branch

Inter Branch Cash Deposit Facility

Deposit cash upto Rs. 1 lacs per day at a remote branch for instant credit into
your account.

Intercity Cash Withdrawal Facility

Cash withdrawal upto Rs 3 lac per day at a remote branch.

Home Branch Cash Withdrawal

Free 100 transactions for unlimited amount.

Demand Drafts
Maximum 10 Demand Drafts per day free.

Free Outstation Collection

On Axis Bank network with faster realization. Only out of pocket expenses to be
recovered.

Fund Transfer
Free 20 transactions upto Rs 50 lacs per month across Axis Bank network.
Almost Instantaneously

3.2.4 Business Privilege Account:

Enjoy the host of privileges with our Business Privilege Account. If you can
maintain Rs 5 lacs monthly average balance, opt for the great facilities on offer
with this account. Demand drafts at correspondent bank locations will be
available at very nominal charges.

Pay Order Facility

Free 10 Pay Orders per day from your branch.

Demand Drafts
Maximum 12 Demand Drafts per day free.

Inter Branch Cash Deposit Facility

Upto Rs. 2 lacs each day at a remote branch.

Intercity Cash Withdrawal

Upto Rs 3 lacs per day at remote branch.
Home Branch Cash Withdrawal
Free 100 transactions for unlimited amount.

Free At-Par Cheque Facility and Free Local Cheque Collection

40 transactions upto Rs 90 lacs per month.

Free Fund Transfer

40 transactions upto Rs 1..5 crores per month across Axis Bank locations all
over the country.

Free Outstation Collection

On Axis Bank network with faster realization. Only out of pocket expenses to be
recovered.

3.2.5 Club 50 Current Accounts:

At a half yearly average balance of Rs. 50 lacs this current account smoothly
fulfills your daily banking requirement. It gives you the freedom to concentrate
on what you do best - growing your business and attaining new heights of
success.

Salient Features

Enhanced Transactional Benefits

Enhanced product free limits & transactional limits.

Customized Cheque Stationery with Hologram

Customized Cheque stationery with Hologram for additional safeguard of

banking transactions.

Lifestyle Benefits / Privileges*

Enjoy lifestyle benefits / privileges like subscriptions to magazines and books.

Free Doorstep Banking

Deposit cash/cheques, withdraw cash or have demand drafts/pay orders

delivered at your office free of cost.

Free DD's on Non Axis Bank locations

Avail the facility of free demand drafts on Non Axis Bank locations upto a
certain limit.

Free International Business Gold Debit Card / Gold Plus Credit Card*

Get free International Business Gold Debit Card / Gold Plus Credit Card to
enjoy a host of benefits

3.2.6 Channel One:

Channel One is Axis Bank's Premium Current Account with Minimum Monthly
Average Balance requirement of Rs 10 lacs.

Doorstep Banking
Doorstep Banking and designated relationship manager are the salient features
which include services like free cheque and DD pick up, PO delivery and cash
pick up or delivery at nominal cost.

Cheque Protection Facility

Cheque protection upto Rs 50,000.

Inter Branch Cash Deposit Facility

Deposit cash upto Rs. 2 lacs per day.

Free Cash Deposit

Upto Rs. 100 lacs per month at Home branch.

Free Anywhere Banking

Without limit.

Free Fund Transfers

Without limit.

Pay orders and Demand Drafts

15 Pay Orders & 15 Demand Drafts per day free..

3.2.7 Business Global Current Account:

A current account for Exporters / Importers that satisfies their banking needs for
both domestic & foreign transactions.
Salient Features

Zero Balance Current Account

To facilitate your domestic transactions, Business Global brings you a zero

balance current account.

Rebates

Enjoy rebates on current account charges and forex services*.

Avail specialised Forex services with least cost

 Export / Import Bill Collection

 Foreign Inward / Outward Remittance
 Foreign DD Issue
 Foreign Cheque Collection

Inland Demand Drafts / Pay Orders

Enjoy 10 free DDs per day and 5 free POs per day of unlimited amount.

Enhanced transaction limits

Avail the facility of higher free limits for funds transfer and Anywhere Banking.

Travel Currency Debit Card

Available off the shelf at your nearest Axis Bank Branch and select FFMCs (Full
Fledged Moneychangers), the Travel Currency Card is a secure, convenient and
hassle free way to carry money and make payments when in foreign shores.

3.2..7 Current Account for Govt Organizations:

The Government Organisations/Bodies (Central Govt./State Govt./Local

Govt./Autonomous) are offered Current Accounts with no Minimum Balance
Stipulation and host of other services without any charges as under.

Account Management Services:

 Current Account with No Minimum Balance Stipulation.

 Free Anywhere Banking Facility at all Axis Bank Locations.
 Free Cash Deposit Facility.
  No Chequebook Issue Charges.

Payment Services:

Free At Par Payable Cheque Facility with no limit on the amount of the cheque
at all Axis Bank centres across the country. The Multi-city At Par Cheque book
enables the cheques to be treated as local cheques across any of the centres
across the country where Axis Bank is present.

 Free Instant Online Funds Transfer Facility to Axis Bank Beneficiary

Accounts.
 Free Demand Drafts/ Pay Orders on all Axis Bank Locations.
 Free Demand Drafts on Non-Axis Bank Centres, on a case to case basis.

Collection Services:

Free Local Cheque Collection Facility - Deposit cheques at any Axis Bank
Branch and get the credit into the Account as per local clearing cycle.

Free Outstation Cheque Collection Facility - Collection of outstation cheques

drawn on any Axis Bank location with assured faster realization (only out of
pocket expenses to be charged).

Other Value-Added Services

 Account Statements: Monthly Account Statement delivered at doorstep

as well as Daily Account Statement through e-mails.
 Internet Banking Facility - Corporate iConnect.
 Delivery & Pick-up of Cheques and Cash from Office premises

3.3 Current Account for Banks:

One of the fastest growing New Generation Private Sector Banks presently
having more than 575 branches / outlets and 2,500 plus ATM's which are
interconnected to each other on a Real Time Online mode giving you the
convenience of having a bank account in any of the more than 330 locations
where we have our presence.

We have a special relationship with over 650 Co-operative Banks/Private Sector

Banks/MNC Banks/Public Sector Banks across the country. We have a dedicated
business unit to take care of the banking requirements of these Banks..

We offer the following services under Correspondent Banking arrangement.

  Payable at Par-Cheque Drawing Arrangement
 Up Country Cheque Collection (UCC) - Axis Bank Locations
 Remote Pay Outs
 Constituent's Subsidiary General Ledger Account
 Corporate Demat Account
 Foreign cheque collection
 Collateralized Borrowing & Lending Operations (CBLO)
 Trading in Government & Corporate securities

3.3.1 Current Account for Builders & Real Estate:

At a monthly average balance of Rs. 5 lacs this account comes loaded with
special facilities and benefits, most appropriate for your businesses.

Salient Features

Home Branch Cash Deposit

Deposit cash upto Rs. 1.30 crores free per month at your home branch.

Non Home Branch Cash Withdrawal

Free cash withdrawal upto Rs. 5 lakhs per day from any branch location.

Free Anywhere Banking

You can deposit cheques / transfer funds at any of our branches / outlets,
presently 575, absolutely free of cost and you will get the credit as if these
transactions were done at your home branch.

Free Doorstep Services

Free local Cash / Cheque pickup and delivery of cash upto Rs. 2 lacs per day.

Cluster facility

A facility, which allows you to maintain the required balances in your accounts
in totality, without the compulsion of maintaining the required balances in
individual accounts.
Zero Balance account for Vendors & Suppliers:

A facility, which allows seamless settlement of funds between you & your
vendors & suppliers i.e. architects, cement suppliers, iron & steel, construction
material, construction equipments, paint dealers, sub contractors, etc..

Franking facility

Enjoy the facility of Doorstep delivery of franked documents at select

authorized centres.

Customized Cheque Printing

Customized Cheque Printing at a nominal cost.

3.3.2 Capital Market Current Account:

The current account product for brokers comes with wider choice of variants and
you may choose the one variant, which suits you the best.

 CAP Normal: MAB - Rs. 10,000/-

 CAP Advantage: MAB - Rs. 25,000/-
 CAP Business Classic: MAB - Rs. 1,00,000/-
 CAP Business Privilege: MAB - Rs. 5,00,000/-
 CAP Channel One: MAB - Rs. 10,00,000/-

Salient Features

Free anywhere banking

Irrespective of variant you choose you can pay / deposit cheques at any of our
branches / outlets, presently 575 absolutely, free of cost and you will get the
credit as if these transactions were done at your home branch.

Free Funds Transfer

Instant Funds Transfer across all locations absolutely free.

Payments through fastest mode

Flat charge of Rs. 50/- per outward RTGS transfer. Inward remittance to your
account is free.

Customized Cheque Printing

Customized Cheque printing at nominal cost. You may also avail the benefits of
our robust technology for bulk printing of your payment instruments with least
turn around time.

3.4 Krishi Current Account:

The product with half yearly average balance requirements captures the
seasonality nature and is packed with host of powerful features and incentives
for higher balances.

Salient Features

Half Yearly Average Balance

There are different Half Yearly Average Balances (HABs) for different category
of locations.
(Urban - Rs. 10,000/-, Semi Urban - Rs. 5,000/-, Rural - Rs. 2,500/-)

Anywhere Banking

You can deposit cheques / transfer funds at any of our branches / outlets,
presently 575, absolutely free of cost and you will get the credit as if these
transactions were done at your home branch.

Rebate for Higher balances

The product comes with reward in the form of rebate on transaction charges, if
you maintain higher balances. Higher the balances you maintain higher is the
scale of rebate.

At Par (Multicity) Chequebook

Enjoy the benefits of multicity chequebook with Axis Bank's current accounts.
You can issue cheques payable at par at all our branches across the country..

Free Fund transfer between Krishi accounts

Opening accounts of wholesaler / retailer and farmer at any location would also
help you for instant funds transfer without any cost.

3.5 Comparative Analysis of Current Accounts

Features Axis Bank HDFC Bank ICICI Bank IDBI

Normal Regular Standard Basic
Accounts 10000 Monthly 10000 quarterly 10000 quarterly 10000 quarterly
Balance
Require
Non Rs. 600/- per Rs. 750/- per Rs 750/- per Rs 565/- per
Maintenance month if MAB quarter if quarter quarter if AQB
Charges is 5000-10000. AQB<10000/- AQB<=5000/-. is 10000-5000/-
Rs 300/- per Rs. 600/- per Rs. 1125/- per
month if MAB quarter if quarter if AQB
is less than AQB>5000/- is less than
5000. but <=7500/-. 5000/-.
Rs. 450/- per
quarter if AQB
between 7500-
10000/-.
Home Branch Cash Deposit Limit
Free Limit Rs 10000/- per Rs. 2 lacs. per Up to 50000/- Rs 1 lacs. per
month month or 25 per month month
transaction.
Which is lower.
Charges above Rs. 2/- per Rs. 2 per Denomination Rs. 2.20/- per
free limit thousand. thousand. Wise thousand.
Min. Rs. 50/- Min. Rs. 60/-
Cash Withdrawal
Home branch No limit. No limit No limit No limit
limit (Free up to 50
transactions per
 min.)
Charges above Rs. 25/- per Free Free Free
free limit transactions
Inter branch Max. Rs. 50000/- per Rs. 50000/- per Rs. 100000/-
limit withdrawal Rs. day day per day
1 lac. per day.
Transactions Rs. 2/- per Rs. 2/- per Rs. 2/- per Rs. 2.75/- per
Charges above thousand thousand thousand thousand.
free limit Min. 60/- rs
Demand Draft & Pay Order
On branch DD Rs. 1.50/- per Up to 50000/- Rs 1.50/- per Rs. 1.25/- per
thousand Rs 40/- per DD thousand. thousand.
Rs. 25/- for
50000-
100000/-.
Pay Order Rs 1/- per As above. Rs 1/- per Rs. 1.25/- per
thousand. thousand. thousand
Min. Rs. 50/-
ATM (Cash Withdrawal)
Transactions Free up to 4 Free Free Rs. 25000/- per
withdrawals per day.
day.
Cheque Book Rs. 2 per leaf. Rs. 2/- per leaf. Up to 200 First cheque
Charges cheques leaves book free
issued to additional Rs.
customer per 2.50/- per leaf.
month.
Above that Rs.
2/- per leaf.
Any where Payable at par Payable at par Available at is Available at is
banking cheques. cheques. rs. 1/- per rs 2.50/- per
Cheque would thousand. thousand.
be treats as Min. rs 25/-.
local.
Cash pick up NA NA Rs. 1.30/- per NA
facility visit limit rs 2
lacs.
Cheque pick up NA NA Rs 1.30/- per NA
facility visit limit rs 2
lacs.
RTGS & NEFT
RTGS 0.25% of the Collection free. Payments Rs Collection free.
amount. Payment Rs. 25/- per Payments Rs
Min. Rs. 50/- 100/- per thousand. 1.50/- per
Max. Rs. transaction thousand.
1500/-
 NEFT Free Free Rs. 50/- for less Collection free.
than 2 lacs. Payments Rs
Rs. 100/- for 1.50/- per
more than 2 thousand.
lacs.
Internet Free Free Free Free
Banking
Mobile Free Free Free Free
Banking
Account Free Free Free Free
Statement
Charges

Features Axis Bank HDFC Bank ICICI Bank IDBI

Business Bank Plus Gold Bronze Plus
Classic
Accounts Rs. 1 lacs. Rs. 1 lacs. Rs. 1 lacs. Rs. 1 lacs.
Balance Monthly Quarterly Quarterly Quarterly
Maintenance
Non Rs. 800/- per Rs. 600/- per Rs. 300/- if Between 1 lac-
Maintenance month if MAB quarter if AQB<50% 50000/- is Rs.
Charges is between AQB<=50000/- Rs. 2250/- if 2805/- per
50000/- Rs 1500 per AQB is quarter
Rs. 1200/- per quarter if between 50%- Less than
month if MAB AQB<100000 75%. 50000/- is Rs.
is less than but >50000 Rs. 10500/- if 4530/- per
50000 AQB>1 lacs.
Cash Deposit Rs. 10 lacs. Per Up to Rs. 10 Up to Rs. 8 Rs. 6 lacs. Per
Limit month lacs. Per month lacs. Per month month
or 50
transaction.
(which ever is
lower)
Charge above Rs. 2.50/- per Rs. 2/- per Denomination Rs. 2.20/- per
free limit 1000/- 1000/- wise 1000/-
Min. Rs.50/- Min. Rs. 60/-
Inter Branch Nil Rs. 1 lacs. Per Nil Nil
Free Limit day
Charge above Rs. 4.50/- per Rs. 3/- per
Denomination Max. Rs.
free limit 1000/-. 1000/-. wise (charges 20000/- per day
plus Rs. 2 per Charge
1000/-)
Cash Withdrawal Limit
Home Branch No Limit Free Free Free
 Limit Free up to 100
transaction
Inter Branch Max. withdraw Free up to 50000/- per day Rs. 1 lac. Per
Limit limit Rs. 3 lacs. 50000/- per day day
Per day
Free up to 4 per
transaction
Transaction Rs. 2/- per Rs. 2/- per Rs. 2/- per Rs. 2.75/- per
charges 1000/- 1000/- 1000/- 1000/-
Min. Rs. 25/- Min. Rs. 50/-
Demand Draft & Pay Order
Home branch Free up to 10 Free up to 50 At location A Free up to Rs. 5
DD DDs per day DDs per month. free. lacs. Per day
Above that Rs. Above that Rs. At location B Above that Rs.
25/- per 25/- per free up to Rs. 1/- per
instrument instrument 10 lacs. Per day instrument
Above that Rs. Min. Rs. 60/-
0.50/- per
1000/-
Min. Rs. 30/-
per instrument
Pay Order 5 POs per day Free up to 50 Free Free
free POs per month.
Above that Rs. Above that Rs.
25/- per PO 50/- per PO
Inter Branch Rs. 1.50/- per Rs. 2/- per Rs. 1.50/- per Free up to Rs. 1
DD 1000/- 1000/- 1000/- lac. Per month
Min. Rs. 25/- Min. Rs 50/- Min. 40/- per Above that Rs.
per DD per instrument instrument 2.25/- per
1000/-
Min. Rs. 60/-
ATM (cash Free Free Free Limit Rs.
withdrawal) Domestic Rs. 50000/- per day
20/-
International Rs
110/-.
Cheque Book Up to 100 300 cheque Up to 500 3 cheque book
Charges leaves per leaves per cheque leaves per quarter free
month Rs. 2/- month per month. Additional Rs.
leaf Beyond it Rs. Above that Rs. 2.25/- per leaf
Above that Rs. 2/- per leaf 2/- per leaf
5/- per leaf
Any where Rs. 1/- per Fund transfer Location at A Clearing and
banking 1000/-. free free, at B fund transfer
Min. Rs. 25/- Clearing location free up free up to 60
transaction free to 40 lacs. Per lacs.
 up to 100 lacs. month Above that Rs.
Per month. Above that Rs. 1/- per 1000/-
Above that Rs. 0.50/- per Min. Rs. 60/-
0.50/- per 1000/-
1000/- Min Rs. 25/-
Min. Rs. 25/-
Cash pick up NA Rs. 300 per Free once a day NA
month
RTGS & NEFT
RTGS 0.25% of Free Rs. 0.25/- per Inward
amount 1000 transaction free
Min. Rs. 250/- Outward Rs.
per transaction 1.50/- per
Max. Rs 1500/- 1000/-
Min. 100/-
Max. 1500/-
NEFT Free Free Rs 50 for Inward
transaction transaction free
value of less Outward
than 2 lacs. transaction
Rs. 100/- for Rs.25/- per
transaction transaction
value of Rs. 2
lacs.and above
Mobile banking Free Free Free Free
Internet Free Free Free Free
banking
Accounts Free Free Free Free
Statement

Features Axis Bank ICICI Bank IDBI

Privilege Platinum Gold
Min account Rs 5,00,000/- Rs. 5,00,000/- 5,00,0000/-
balance monthly quarterly quarterly
required
Non Rs 1200/- per If QAB<=50% Between rs 5-4
Maintenance month if MAB Rs 10,000/- per lacs – rs 2,245/-
Charges is between rs quarter per quarter
2,50,000/- & rs If QAB>50% Less than rs 4
5 lacs but <=75% Rs lacs- rs 2 lacs –
Rs 1600/- per 7500/- per rs 3,365 per
month if MAB quarter quarter
is less than rs If QAB>75% Less than rs 2
2,50,000/- but <100% Rs lacs – rs 1 lacs
 5000/- per -- rs 4,530 per
Quarter quarter
Less than rs
1,00,000 – rs
5,615 per
quarter
Cash Deposit Limit
Home branch Rs. 30 lacs. per Up to rs Rs 40 lacs per
free limt month 25,00,000/- per month
month,
Charges above Rs 2 per rs Denomination Rs 2.20/- per
free limit 1000/- wise charges as 1000/-
below (min rs 60)
Interbranch free Nil Nil Nil
limit
Charges above Rs 4.50 per rs Denomination Rs 4.50 per
free limit 1000/- wise charges as 1000/-
Rs 100 per below plus rs min rs 60
transaction 2/- per rs 1000/- (Max up to rs
(at the time of 50,000/-
deposit) allowed)
Cash Withdrawal Limit
Home branch No limit No limit for self
limit (free up to 100 cheques
transactions per
month)
Transaction Above free Free
Charges limit rs 25 per
transaction
Interbranch Max Only for self 1 lac per day
limit withdrawal cheques –
limit rs 3 lacs specified
per day process to be
followed
Transaction Rs 2 per rs Rs 2/- per rs Rs 2..75 per
charges 1000 1000/- for 1000/- for
amount above amount above
rs 50,000/- per rs 1 lac
day (min rs 60)
Demand Draft & Pay Order
On branch DD Free up to 12 At category A Free
DDs per day location- Free
Above that rs At category B
25 per day location- free
 upto rs 15 lac
per day
Above that rs
0.50/-
Per rs 1000/-
Min rs 30/- per
instrument
On branch PO 10 Pos per day Free Free
free
Above that rs
25 per DD
Non branch DD Rs 1.50/- per Rs 1.50/- per rs Free up to rs 30
1000 1000/- min rs lacs per month
min Rs 50 per 40/- per Above that rs
DD instrument 2.50/- per
1000/-
ATM (cash Rs 50,000 per
withdrawal ) day
Cheque book Up to 100 Upto 500 5 cheque books
charges leaves per cheque leaves- per quarte Free
month rs 2 per Rs 2/- per leaf Additional leaf
leaf More than 500 at rs 2.25 per
Above 100 cheque leaves- leaf.
leaves per Rs 5/- per leaf
month rs 5 per
leaf
Anywhere Free up to rs Payment FREE Clearing &
banking 1.50/- crore per at A location transfer – free
(Clearing & month At B location- up to rs 3 crore
transfer) Rs 0.30/ rs free up to 80 Above that rs 3
1000/- above lacs per month crore rs 3 per
free limit Above that rs 1000/-
0.50/- per rs ( min rs 60)
1000/- min rs
25/- per
transaction
Cash pick up NA Rs 130/- per NA
visit
Rs 2 lac per day
at base branch
only
Cheque pick up NA Once a day NA
cheque pick up
free
 RTGS & NEFT
RTGS 0.25% of the Rs 0.25/- per rs Inward
amount 1000/- subject transaction-
(min 50, max to min of rs Free
1500) 250/- per Outward rs 1.50
transaction and per 1000/-
max of rs (min rs 100 &
1500/- per max rs 1500)
transaction
NEFT Free Rs 50/- for Inward
transaction transactions
value of less Free
than rs Outward rs 25/-
2,00,000/- & rs per transaction
100/- for
transaction
value of rs
2,00,00,000/-
and above
Mobile Free Free Free
Banking
(day end
balance)
Internet Free Free
banking
Account Free Free Free
statement

3.6 BUSINESS BANKING : GROWTH IN 2008

Business banking continued to focus on offering the best in transactional banking

services by leveraging the Bank’s strengths in terms of network and technology. The bank
has consistently focus on procuring low-cost funds by offering a range of Current
Account products across all segments covering corporates, institutions, Central and
State Government Ministries and Undertakings as well as small business customers.
Cross selling of transactional banking products to develop account relationship, aided by
product innovation and a customer centric apporoch has borne fruit in the form of
growing current account balances and increasing realization of transaction banking fee.

Sourcing of current account deposits continued to be the focus area and as on 31 st March
2008, current account balances stood at Rs. 11,304 crores a year earliar, refleting a year
on year growth of 77%. During the year the bank sourced 1,38,765 new current accounts
against 97,857 accounts the previous year. There was a greater focus on the acquisition of
high value current accounts, thus accelerating the pace of growth in current account
balances. Additionally, the focus was also to understand the requirements of various
business segments and thereby introduce segment based current account products for
effectively targeting the diverse requirements of different segments. On a daily average
basis, current accounts grew to a level of Rs. 11,834 crores in 2007-08 against Rs. 7,193
crores during the last year.

3.7 FINANCIAL HIGHLIGHTS 2008

 Profit after tax up 62.52% to Rs. 1,071.03 crores

 Net interest income up 76.07% to Rs. 2,585.35 crores
 Fee & other income up 65.91% to Rs. 1,367.75 crores
 Deposits up 49.06% to Rs. 87,626.22 crores
 Demand deposits up 70.84% to Rs. 40,026.99 crores
 Advances up 61.79% to Rs. 59,661.14 crores
 Retail assets up 52.24% to Rs. 13,591.68 crores
 Network of branches & extension counters increased from 561 to 671
 Total no of ATMs went up from 2341 to 2764
 Net NPA ratio as a percentage of net customer assets down to 0.36% from
0.61%
 Earning per share (basic) increased from Rs. 23.50 to 32.15
 Proposed dividend up from 45% to 60%
 Capital adequacy ratio stood at 13.73% as against the minimum regulatory
norm of 9%
 3.8 Financial Position Of the Bank

Balance Sheet

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Sources of funds
Owner's fund
Equity share capital 357.71 281.63 278.69 273.80 231.58
Share application money 2.19 8.98 13.44 13.42 1.63
Preference share capital - - - - -
Reserves & surplus 8,410.79 3,111.60 2,593.50 2,134.39 904.84
Loan funds
Secured loans - - - - -
Unsecured loans 87,626.22 58,785.60 40,113.53 31,712.00 20,953.90
Total 96,396.91 62,187.81 42,999.16 34,133.60 22,091.95
Uses of funds
Fixed assets
Gross block 1,384.70 1,098.93 898.68 764.78 593.58
Less : revaluation reserve - - - - -
Less : accumulated depreciation 590.33 450.55 345.33 261.98 184.65
Net block 794.37 648.38 553.34 502.80 408.93
Capital work-in-progress 128.48 24.82 14.37 15.64 26.22
Investments 33,705.10 26,897.16 21,527..35 14,274.95 7,792.76
Net current assets
Current assets, loans & advances 2,784.51 1,892.07 1,679.98 2,071.38 896.10
Less : current liabilities & provisions 7,556.90 5,873.80 4,051.03 1,828.68 1,530.46
Total net current assets -4,772.38 -3,981.73 -2,371.05 242.70 -634.36
Miscellaneous expenses not written - - - - -
Total 29,855.57 23,588.62 19,724.02 15,036.08 7,593.55

Notes:
Book value of unquoted investments - - - - -
Market value of quoted investments - - - - -
Contingent liabilities 94,598.40 67,744.86 45,043.14 23,441.83 16,802.75
Number of equity shares outstanding (Lacs) 3577.10 2816.31 2786.91 2737.96 2315.81
 Profit & Loss Account

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income:
Operating income 8,750.68 5,461.60 3,594.46 2,299.23 2,115.52
Expenses
Material consumed - - - - -
Manufacturing expenses - - - - -
Personnel expenses 670.25 381.35 240.20 176.85 121.25
Selling expenses 74.41 29.62 17.05 11.47 10.81
Adminstrative expenses 1,551.27 864.23 575.74 302.21 468.82
Expenses capitalised - - - - -
Cost of sales 2,295.92 1,275..19 833.00 490.53 600.88
Operating profit 2,034.80 1,193.09 950.90 615.71 493.20
Other recurring income 13.86 21..24 6.34 34.52 1.44
Adjusted PBDIT 2,048.66 1,214.32 957.24 650.24 494.64
Financial expenses 4,419.96 2,993.32 1,810.56 1,192.98 1,021.45
Depreciation 158.11 111.86 92.19 81.58 61.89
Other write offs - - - - -
Adjusted PBT 1,890.54 1,102.46 865.05 568.66 432.75
Tax charges 734.86 418.82 246.35 180.03 177.52
Adjusted PAT 1,086.21 661.94 486.78 326.17 272.88
Non recurring items -15.18 -2.91 -1.70 -2..39 -1.49
Other non cash adjustments - -31.80 - 10.80 6.93
Reported net profit 1,071.03 627.23 485.08 334.58 278.31
Earnigs before appropriation 2,100.10 1,358.26 682.49 516.68 400.78
Equity dividend 251..64 148.79 112.55 87.75 65.31
Preference dividend - - - - -
Dividend tax - - - - -
Retained earnings 1,848.47 1,209.47 569.94 428.93 335.47

Cash Flow

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

Profit before tax 1,646.27 996.24 731.30 503.81 429.62

Net cash flow-operating activity 5,960.45 5,295.53 240.17 4,334.19 2,177.38

Net cash used in investing activity -4,702.52 -3,655.58 -2,097.47 -5,829.62 -190.94

Net cash used in fin. activity 4,325.79 1,637.01 996.21 1,108.22 107.06

Net inc/dec in cash and equivalent 5,585.94 3,276.46 -861.09 -387.20 2,093.50

Cash and equivalent begin of year 6,918.31 3,641.84 4,502.94 5,663.21 3,569.71

Cash and equivalent end of year 12,504.24 6,918.31 3,641.84 5,276.01 5,663.21
 Ratios

Particular Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Per share ratios
Adjusted EPS (Rs) 30.37 23.50 17.47 11.91 11.78
Adjusted cash EPS (Rs) 34.79 27.48 20.77 14.89 14.46
Reported EPS (Rs) 29.94 23.40 17.41 12.22 12.02
Reported cash EPS (Rs) 34.36 27.37 20.71 15.20 14.69
Dividend per share 6.00 4.50 3.50 2.80 2.50
Operating profit per share (Rs) 56.88 42.36 34.12 22.49 21.30
Book value (excl rev res) per share (Rs) 245.13 120.49 103.06 87.96 49.07
Book value (incl rev res) per share (Rs.) 245.13 120.49 103.06 87.96 49.07
Net operating income per share (Rs) 244.63 193.93 128.98 83.98 91.35
Free reserves per share (Rs) 208..03 86.60 75.38 54.08 20.84
Profitability ratios
Operating margin (%) 23.25 21.84 26.45 26..77 23.31
Gross profit margin (%) 21.44 19.79 23.88 23.23 20.38
Net profit margin (%) 12.22 12.01 13.47 14.33 13.14
Adjusted cash margin (%) 14.19 14.11 16.07 17.47 15.81
Adjusted return on net worth (%) 12.38 19.50 16.94 13.54 24.01
Reported return on net worth (%) 12.21 19.42 16.88 13.89 24.49
129.51
Return on long term funds (%) 71.17 120.06 88.56 70.55

Leverage ratios
Long term debt / Equity - - - - -
Total debt/equity 9.99 17.32 13.97 13.17 18.44
Owners fund as % of total source 9.09 5.45 6.68 7.05 5.14
Fixed assets turnover ratio 6.32 4.97 4.00 3.01 3.56
Liquidity ratios
Current ratio 0.36 0.32 0.41 1.13 0.58
Current ratio (inc. st loans) 0.02 0.02 0.03 0.06 0.03
Quick ratio 9.23 7.39 6.52 11.55 9.17
 3.9 Graphic Presentation of the Ratios

1.2

0.8

0.6

0.4

0.2

0
Mar, 08 Mar, 07 Mar,06 Mar,05 Mar,04

Chart shows the Current Ratio of five years

14
12
10
8
Quick Ratio
6
4
2
0
Mar, Mar, Mar, Mar, Mar.
08 07 06 05 04

Chart Shows the Quick Ratio of five years

 7
6
5 Mar, 08
Mar, 07
4
Mar, 06
3
Mar, 05
2 Mar, 04
1
0
Mar, 08 Mar, 07 Mar, 06 Mar, 05 Mar, 04

Chart shows the dividend per share of five years

18.44 9.99
Mar, 08
Mar, 07
Mar, 06
17.32
Mar, 05
13.17
13.97 Mar,04

Char shows the ratio between debts and equity

 3.10 FINANCIAL RESULTS:

Axis Bank posts strong Q4 results, declares 60 percent dividend:

India's banking major, Axis Bank announced strong fiscal results, posting a net
profit to Rs.1071.03 crore ($267.75 million), a year-on-year (YoY) growth of
62.52 percent , from Rs.659.03 crore ($164.75 million).

For the fourth quarter, the net profit increased 70.56 percent to Rs.361.40 crore
($90.35 million) from Rs.211.89 crore ($52.97 million) a year earlier, on loan growth and
fees from advising clients, the bank said.

The private sector lender said its revenue for the year ended March 31, 2008,
including interest revenue, rose to Rs.8800 crore ($2.2 billion) from Rs.5472
crore ($1.368 billion).

On a stand-alone basis, its interest grew 53.61 percent to Rs.7005 crore ($1.75
billion) from Rs.4560 crore ($1.14 billion) earned during the previous
corresponding year.

The total income for the quarter ended March 31, 2008 stood at Rs.2571.90
crore ($642.97 million) as compared to Rs.1642.61 crore ($410.65 million)
during the same period a year ago.

The bank's net interest income , the difference between what it paid for funds
and what it earned from lending, rose 88.72 percent to Rs.828.43 crore
($207.10 million) in the fourth quarter, from a year earlier.

Earnings per share (EPS) for the whole fiscal year ended March 31, 2008, was
Rs.31.31 up from Rs.22.79, a YoY growth of 37.38 percent.
3.11 RECOMMENDATIONS:

As an short term experience with AXIS – BUNDI Branch it is very difficult to put
forward some recommendation, as the brand like AXIS is already enriched in its
management and services channels.

Yet, being student of management I would like to propose some thoughts as with
expected acceptance and not to be taken as personal notion.

Innovate products – as with low cost and less risk funds.

Marketing through promotion tools as print and visual media as followed in the
campaign of promotion.

Targeting immigration consultancy offices and educational institutes.

Shortening of process time.

Maintain the brand value.

Exposure provided to the trainees must be continued.

Boosting more social and Environment friendly activities as presently followed.

Arrange presentations and seminars in Business schools.

Enhance more access to middle income group as it compose maximum share of

population of Bundi.

Design products and schemes which are very youth oriented.

3.12 REFRENCES :

 www.axisbank.com
 www.asianbanker.com
 www.ibtimes.com
 www.labnol.org
 www.icici.com
 www.idbi.com
 www.hdfc.com
 www.axisbankservices.html
 finance.indiamart.com
 en.wikipedia.org
 Axis bank’s brochures
 14 th annual report