axis nimesh vadhel

8/4/2019 Axis Nimesh Vadhel

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Axis Bank Aapka SolutionBanking On Technology & Market

Segment For Competitive Space


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ABOUT Axis Bank

Dr. Adarsh Kishore Chairman

Smt. Shikha Sharma Managing Director & CEO


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ABOUT Axis Bank

Incorporated as UTI Bank, headquartered in

Mumbai

First Branch inaugurated at Ahmadabad

Completes first profitable year in operation in

1995

Deposit crosses Rs.10bn mark in 1996


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.

Opens its first international branch in

Singapore

Opens Representative Office in Shanghai

Crosses the 2,000 ATM mark in 2006

Opens a Full Licence Bank Branch in Hong

Kong Re-brands itself as Axis Bank

Mumbai, Jul 30 2007 : Join with UTI Bank


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Current Shareholding Pattern of Axis Bank

.


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The Axis banks business is divided into four

segments:

Retail, corporate, treasury and merchant

banking.

Apart from this the bank is also into insurance,

investment banking, credit financing, credit

cards, and depository services etc .


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Services

Retail banking

Deposits schemes

Loans and advances

Personal loans

Housing loans

Cards

Consumer durables

Auto loans


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Personal banking

Accounts

Term deposit

Fixed deposit

Recurring deposit

Cards

Different variant like: Gold plus card, Gold card, Silver & silver

plus cards.


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Corporate banking

Accounts

Normal Current Account

Trust/NGO Savings Account

Services

Private Equity, Mergers & Acquisitions

Advisory Services

Capital Market Funding

E-Broking


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Axis Bank Performance

As on the year ended March 31, 2010 the

Bank had a net profit of Rs 2514.53crores

The bank now has 1035 branches including

extension networks across 30 States and 4

Union Territories.


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The bank also has overseas offices in Singapore,

China, Hong Kong and Dubai.

Crosses the 4,293 ATM mark in Mar 2010

Axis Bank share is now trading at Rs 1359.00 (18th

Aug2010).


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Axis Financial Position

Particulars Mar 07 Mar 08 Mar 09

Deposits 58,785.60 87,626.22 117,374.11

Advances 36,876.48 59,661.14 81,556.77

Share Capital 281.63 357.71 359.01

Net worth 3,402.21 8,770.69 10,214.80

Book Value 120.80 245.19 284.53

Interest earned 4,560.40 7,005.32 10,835.49

Interest expenditure 2,993.32 4,419.96 7,149.27

Net profit659.03 1,071.03 1,815.36

Net NPAs 0.61% 0.36% 0.35%

Total Assets 73,257.21 109,577.84 147,722.06

Return on Assets 1.10% 1.24% 1.44%

Rs in crs.


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Axis Bank Ratio Analysis

Particulars Mar 07 Mar 08 Mar 09

Capital Adequacy Ratio 11.57 13.73 13.69

Net profit margin 12.01 12.22 13.31

Operating Expense / Total Inc 23.26 26.20 24.95

Return on Net worth (%) 19.37 12.21 17.77

Net Interest Income/total funds 4.01 4.74 4.98

Non Interest Income/total funds 0.03 0.02 0.06

Net Profit / Total Funds 1.07

1.17

1.41

Earning per share 23.40 29.94 50.57

Equity Dividend (%) 45.00 60.00 100.00


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Comparative Ratio Analysis

Particulars Axis HDFC

Capital Adequacy Ratio 13.69 13.60%

Net profit margin 13.31 11.35

Operating Expense / Total Inc 24.95 35.06

Return on Net worth (%) 17.77 15.32

Net Interest Income/total funds 4.98 6.86

Net Profit / Total Funds 1.41 1.42

Earning per share 50.57 52.77

Equity Dividend (%) 100.00 100.00

Net Interest margin (%) 3.33 4.40


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Comparative Reach Analysis

Banks Branches ATMs Cities

Axis 1035 4293 515

HDFC 1416 3382 550

ICICI 950 3500 21,408


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Axis Bank

Marketing Overview


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Mission

Customer Service and Product Innovationtuned to diverse needs of individual andcorporate customers.

Continuous technology up gradation whilemaintaining human values.

Progressive globalization and achieving

international standards. Efficiency and effectiveness built on ethical

practices.


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Marketing Objectives

Axis Bank want to achieve following marketingobjectives 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.


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Axis Bank Shift In Strategy

A. Corporate assets being the focus areaB. Focus on retail finance segment

C. Physical & Technology infrastructure

improvement


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Current Strategy

A. Managing the changing customer needs

B. Risk Management

C. Dealing with regulations

D. Keeping pace with technology

E. Product and service innovation


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Complementary Strategies for Business

Growth & Development

Strategic grouping and joint partnerships

Tie up with Maruti and Hyundai for selling

car loansTie up with Bajaj Allianz General Insurance

ATM sharing based on alliances such as SBI

and multibank payment networks


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Value Chain Activities

It Outsourcing selected value chain activities

1.Outsourcing recruitments to

monsterindia.com2. Outsourcing print action to Xerox

3. ATM management


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Offensive (unsatisfied) Strategic

Moves

Superior Customer Service

Range of services on ATM machine

Aggressive growth in card business

Expansion of environmental reach

Financial Advisory Services


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Use of Internet

I-Connect net banking service

Internet based electronic payment portal

E-Payment facility for payment of centralexcise & service tax


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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.

Market capitalization is very low.

Not been fully able to position itselfcorrectly.

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.

SWOT


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Positioning strategy

Axis bank has positioned itself as a bankwhich gives higher standard of servicesthrough product innovation for the diverse

need of individual & corporate clients. So theywant to highlight following points in theirpositioning statement:

Customer oriented

Service oriented Product innovation


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Features Of Axis Bank

Anywhere Banking

Instant Fund Transfer

Internet Banking At-Par (Multicity) Chequebook

ATM cum Debit Card

Mobile Banking , Mobi

Phone Banking


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TECHNOLOGICAL ADVANCEMENTS

Extensive Network .

Centralized transaction processing system

Centralized Phone Banking system

Mobile Alert Service.

NEFT ( National Electronic Fund Transfer)

Real Time Gross Settlement (RTGS).


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New plans


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Tie-ups with various Govt. Departments:

Govt. Departments:

MCD - Municipal Tax or Fees ePayments

MCD - eTendering Project Sampark - Utility Bill ePayments

Bangalore One Project - Utility Bill ePayments


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Alternate Channels:

ATM Channel

Internet Banking Channel

Mobile Banking Channel


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ATM Channel

All its ATMs are connected to Base24 ATM switch

The Bank through its ATMs offers the following services:

Banking Services Mobile Banking Services

Bill Payment e.g.: BSNL, MTNL

Life Insurance Corporation Premium Payment

Purchase and recovery of UTI Mutual Fund Schemes

through the ATM.


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Internet Banking Channel:

Axis bank provides a number of value-added services on the

Internet banking platform

Services:

a) Funds Transfers

b) Bill payment

c) Shopping


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Mobile Banking Channel:

Debit or credit in your account:

Receive alerts on your mobile phone every time there is a

debit or credit in your Axis Bank account for more than

Rs. 5,000

You can also request for the following information:

- Balance

- Last three Transactions- Know the status of your cheque

- Request security balance in demat account


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Growth Prospects of Axis

Over the last five years, the CAGR (Compound AnnualGrowth Rate) for loan growth for the banking industry

has been 25-26 per cent for Axis Bank it has been

above 40 per cent.

In FY09 its advances grew at the rate of 37.5 per cent. In FY10 they are expected to grow at the rate of 27-28

per cent and in FY11 at 25 per cent.

For the banking industry as a whole, the loan book is

expected to grow at 18 per cent in FY10 and 16 per

cent in FY11.

Thus, Axis Banks fast pace of growth is expected to

sustain over the next couple of years.


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Core Values of Axis

Customer Satisfaction through

Providing quality service effectively and efficiently

Periodic Customer Service Audit

Maximizations of Stakeholder value Success through Teamwork, honesty and People


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Conclusion !!!!

AXIS bank has differentiated itself very well on the basis of

high level service and product quality.

They have successfully implemented the change and due tothis their market share has increased only despite of tough

competition overcome.

axis nimesh vadhel

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