1. A
Project Report
On
(Comparative Analysis of Salary and Saving products of
AXIS bank with its competitors)
Submitted in partial fulfillment of two year full time course in
Master of Business Administration
to
IGNOU
Session 2011-13
Supervision by :- Submitted by:-
(Professor Ravjeet Talwar) (Jyoti)
Designation: Professor Enrollment No:112166010
2012
GLOBAL SCHOOL OF BUSINESS
EVERONN EDUCATION LIMITED
#96 – 99 industrial Estate, Perungudi,
Chennai – 600096.
2. IIPS Page 2
DECLARATION
I the undersigned solemnly declare that the report of the project work entitled
comparative analysis of saving and salary products of Axis bank with its
Competitors on banking , is based my own work carried out during the course
of my study under the supervision of Professor Ravjeet Talwar.
I assert that the statements made and conclusions drawn are an outcome of the
project work. I further declare that to the best of my knowledge and belief that
the project report does not contain any part of any work which has been
submitted for the award of any other degree/diploma/certificate in this
University or any other University.
_______________
(Signature of the Candidate)
Jyoti
Enrollment No:-
112166010
3. IIPS Page 3
CERTIFICATE BY PROJECT GUIDE
This to certify that the report of the project submitted is the outcome of the project
work entitled (COMPARATIVE ANALYSIS OF SAVING AND SALARY PRODUCT OF
AXIS BANK WITH ITS COMPETITORS) carried out by Jyoti bearing Enrollment No:-
112166010 under my guidance and supervision for the award of degree in Master
of Business Administration from IGNOU.
To the best of the my knowledge the report
i) Embodies the work of the candidate him
ii) Has duly been completed,
iii) Fulfils the requirement of the ordinance relating to the MBA degree of
the University and
iv) Is up to the desired standard for the purpose of which is submitted.
(Signature of the Guide)
Name:- Ravjeet Talwar
Designation:-professor
Department:-Faculty
Name & Address of the Institute:-
Indigrow Institute of professional studies(IIPS) Chd.
The project work as mentioned above is hereby being recommended and forwarded
for examination and evaluation.
4. IIPS Page 4
CERTIFICATE BY THE EXAMINERS
This is to certify that the project entitled (comparative Analysis of Salary and
Saving Product of Axis Bank With Its Competitors) submitted by Jyoti Enrollment
No:-112166010 has been examined by the undersigned as apart of the examination
for the award of Master of Business Administration degree of IGNOU.
________________ _________________
________________ __________________
Name & Signature of Name & Signature of
Internal Examiner External Examiner
Date: Date:
Forwarded by
Academic Coordinator / Head
Global School of Business
5. IIPS Page 5
Executive Summary
The main objectives of the study:-
The objectives of the study was to know the brand awareness of AXIS bank and
customer Preferences about AXIS bank and proper understanding analysis of
banking industry .Comparison on salary or saving product between AXIS, HDFC
and ICICI bank.
Research:-
Standard questionnaire was used for finding the brand awareness of
all the three banks.
Questionnaire was used to know the customer preference over
various products available of all the three banks.
It is also used to analyze the most preferred services used by
customers in all the three banks.
Findings:-
Customers are satisfied with salary and saving account of Axis Bank.
Axis bank is the growing bank.its products and availability of options
make it one of the better banks in india.
Axis bank mainly focuses on retaining their customers.
Net banking of Axis bank is Easy to access.
Axis bank should open more Branches.
6. IIPS Page 6
Table of Contents
Acknowledgement
Executive Summary
Chapter 1: Introduction
1.1 Industry Profile
1.2 Company Overview
Chapter 2: Competitors
Chapter 3: Research Methodology
3.1 Need & objective of the study
3.2 Research design
Chapter 4: Data Analysis
Chapter 5: Findings
Chapter 6: Limitations of the project
Chapter 7: Conclusion and Recommendations
Appendix
References
8. IIPS Page 8
INTRODUCTION
Banking is the backbone of the modern industry. Health of the banking industry is one of the
most important pre-condition for sustained economic growth of any country. The world of
banking has assumed the new dimension at the dawn of 20th
century with the advent of tech
banking, thereby lending the industry a stamp of fun avarsality. In general banking may be
classified as retail banking and corporate bankig.Retail banking, which is designed to meet the
requirement of individual customers and increase their savings, includes payment of futility bills,
consumer loans, credit cards, checking bank account balance ,ATM‟s,transferring funds between
accounts and the like.Corporate banking caters the needs of corporate customers like bill
discounting, opening letter of credit and managing cash.
Many individuals find investments to be fascinating because they can participate in the decision
making process and see the results of their choices. Not all investments will be profitable, as
investor wills not always make the correct investment decisions over the period of years;
however, you should earn a positive return on a diversified portfolio. In addition, there is a thrill
from the major success, along with the agony associated with the stock that dramatically rose
after you sold or did not buy. Both the big fish you catch and the fish that get away can make
wonderful stories.
Investing is not a game but a serious subject that can have a major impact on investor's future
well being. Virtually everyone makes investments. Even if the individual does not select specific
assets such as stock, investments are still made through participation in pension plan, and
employee saving program or through purchase of life insurance or a home. Each of this
investment has common characteristics such as potential return and the risk you must bear. The
future is uncertain, and you must determine how much risk you are willing to bear since higher
return is associated with accepting more risk.
In my study I have done the analysis on the saving and salary accounts of Axis Bank with its
main competitors HDFC and ICICI bank. The study focuses on the main points which makes an
individual driven to a bank and open their accounts.
9. IIPS Page 9
1.1Industry profile
OVERVIEW OF THE BANKING INDUSTRY:
Banking in India originated in the last decades of the 18th century. The oldest bank in existence
in India is the State Bank of India, a government-owned bank that traces its origins back to
June1806 and that is the largest commercial bank in the country. Central banking is the
responsibility of the Reserve Bank of India, which in 1935 formally took over these
responsibilities from the then Imperial Bank of India, relegating it to commercial banking
functions.
After India's independence in 1947, the Reserve Bank was nationalized and given broader
powers. In 1969 the government nationalized the 14 largest commercial banks; the government
nationalized the six next largest in 1980.
Currently, India has 88 scheduled commercial banks (SCBs) - 27 public sector banks (that is
with the Government of India holding a stake), 29 private banks (these do not have government
stake; they may be publicly listed and traded on stock exchanges) and 31 foreign banks. They
have a combined network of over 53,000 branches and 17,000 ATMs. According to a report by
ICRA Limited, a rating agency, the public sector banks hold over 75 percent of total assets of the
banking industry, with the private and foreign banks holding 18.2% and 6.5% respectively.
Early history:
Banking in India originated in the last decades of the 18th century. The first banks were The
General Bank of India, which started in 1786, and the Bank of Hindustan, both of which are now
defunct. The oldest bank in existence in India is the State Bank of India, which originated in the
Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was
one of the three presidency banks, the other two being the Bank of Bombay and the Bank of
Madras, all three of which were established under charters from the British East India Company.
For many years the Presidency banks acted as quasi-central banks, as did their successors. The
three banks merged in 1925 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India. Indian merchants in Calcutta established the
Union Bank in 1839, but it failed in 1848 as a consequence of the economic crisis of 1848-49.
The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India. When the American Civil War stopped the supply of cotton to Lancashire from
the Confederate States, promoters opened banks to finance trading in Indian cotton. With large
exposure to speculative ventures, most of the banks opened in India during that period failed.
The depositors lost money and lost interest in keeping deposits with banks. Subsequently,
banking in India remained the exclusive domain of Europeans for next several decades until the
beginning of the 20th century.
Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian Mutiny, and the social, industrial
and other infrastructure had improved. Indians had established small banks, most of which
served particular ethnic and religious communities
10. IIPS Page 10
From World War I to Independence :
The period during the First World War (1914-1918) through the end of the Second World War
(1939-1945), and two years thereafter until the independence of India were challenging for
Indian banking. The years of the First World War were turbulent, and it took its toll with banks
simply collapsing despite the Indian economy gaining indirect boost due to war-related economic
activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following
table:
Years Number of banks
that failed
Authorized capital
(Rs. Lakhs)
Paid-up Capital
(Rs. Lakhs)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1
Post-independence :
The partition of India in 1947 adversely impacted the economies of Punjab and West
Bengal,paralyzing banking activities for months. India's independence marked the end of a
regime of the Laissez-faire for the Indian banking. The Government of India initiated measures
to play an active role in the economic life of the nation, and the Industrial Policy Resolution
adopted by the government in 1948 envisaged a mixed economy. This resulted into greater
involvement of the state in different segments of the economy including banking and finance.
The major steps to regulate banking included:
· In 1948, the Reserve Bank of India, India's central banking authority, was nationalized,
and it became an institution owned by the Government of India.
· In 1949, the Banking Regulation Act was enacted which empowered the Reserve
Bank of India (RBI) "to regulate, control, and inspect the banks in India."
· The Banking Regulation Act also provided that no new bank or branch of an existing
bank could be opened without a license from the RBI, and no two banks could have
common directors.
However, despite these provisions, control and regulations, banks in India except the State Bank
of India, continued to be owned and operated by private persons. This changed with the
nationalization of major banks in India on 19 July, 1969.
11. IIPS Page 11
Liberalization:
In the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,
licensing a small number of private banks. These came to be known as New Generation
techsavvy banks, and included Global Trust Bank (the first of such new generation banks to be
set up), which later amalgamated with Oriental Bank of Commerce, UTI Bank(now re-named as
Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in the
economy of India, revitalized the banking sector in India, which has seen rapid growth with
strong contribution from all the three sectors of banks, namely, government banks, private banks
and foreign banks.
The next stage for the Indian banking has been setup with the proposed relaxation in the norms
for Foreign Direct Investment, where all Foreign Investors in banks may be given voting rights
which could exceed the present cap of 10%,at present it has gone up to 49% with some
restrictions. The new policy shook the Banking sector in India completely. Bankers, till this time,
were used to the 4-6-4 method (Borrow at 4%;Lend at 6%;Go home at 4) of functioning. The
new wave ushered in a modern outlook and tech-savy methods of working for traditional
banks.All this led to the retail boom in India. People not just demanded more from their banks
but also received more.
In recent years critics have charged that the non-government owned banks are too aggresive in
their loan recovery efforts in connection with housing, vehicle and personal loans. There are
press reports that the banks' loan recovery efforts have driven defaulting borrowers to suicide.
Vision of Banks in India
The banking scenario in India has already gained all the momentum, with the domestic and
international banks gathering pace. The focus of all banks in India has shifted their approach to
'cost', determined by revenue minus profit. This means that all the resources should be used
efficiently to better the productivity and ensure a win-win situation. To survive in the long run, it
is essential to focus on cost saving. Previously, banks focused on the 'revenue' model which is
equal to cost plus profit. Post the banking reforms, banks shifted their approach to the 'profit'
model, which meant that banks aimed at higher profit maximization.
12. IIPS Page 12
Focus of banks in India
The banking industry is slated for growth in future with a more qualitative rather than
quantitative approach. The total assets of all scheduled commercial banks by end-March 2010 is
projected to touch Rs 40,90,000crore. This is going to comprise around 65% of GDP at current
market prices as compared to 67% in 2002-03.
Barring the asset side, on the liability perspective, there will be huge additions to the capital base
and reserves. People will rely more on borrowed funds, pace of deposit growth slowing down
side by side. However, advances and investments would not see a healthy growth rate
13. IIPS Page 13
1.2 COMPANY PROFILE
AXIS BANK LTD.
Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. The Bank was promoted
jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI - I), Life
Insurance Corporation of India (LIC) and General Insurance Corporation of India (GIC) and
other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance
Company Ltd.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai.
Presently, the Bank has a very wide network of more than 701 branch offices and Extension
Counters. The Bank has a network of over 2854 ATMs providing 24 hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country.
The Bank has strengths in both retail and corporate banking and is committed to adopting the
best industry practices internationally in order to achieve excellence.
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”.
Now with a name having universal appeal, the bank is working towards becoming a
multinational bank and diversifying into other financial services like AMC, insurance and
restructures operations to reflect a modern approach to banking.
PROMOTERS:-
Axis Bank Ltd. has been promoted by the largest and the best Financial Institution of the
country, UTI. The Bank was set up with a capital of Rs. 115 crore, with UTI contributing Rs. 100
crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.
14. IIPS Page 14
SUUTI Shareholding-27.11%
Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a
view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed
with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the
Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with
effect from 1st February 2003. In accordance with the Act, the Undertaking specified as UTI I
has been transferred and vested in the Administrator of the Specified Undertaking of the Unit
Trust of India (SUUTI), who manages assured return schemes along with 6.75% US-64 Bonds,
6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores..
Board of Directors
The members of the Board are :
Dr. Adarsh Kishore Non-Executive
Chairman
Smt. Shikha Sharma Managing Director &
CEO
Shri M. M. Agrawal Deputy Managing
Director
Shri J.R. Verma Director
Dr. R.H. Patil Director
Smt. Rama Bijapurkar Director
Shri R.B.L. Vaish Director
Shri M.V. Subbiah Director
Shri K. N. Prithviraj Director
Shri V. R. Kaundinya Director
Shri S. B. Mathur Director
Shri M. S.
SundaraRajan
Director
15. IIPS Page 15
VISION AND MISSION
Mission
Customer Service and Product Innovation tuned to diverse needs of individual and corporate
clientele.
Continuous technology up gradation while maintaining human values.
Progressive globalization and achieving international standards.
Efficiency and effectiveness built on ethical practices.
Core Values
Customer Satisfaction through-
Providing quality service effectively and efficiently.
"Smile, it enhances your face value" is a service quality stressed on.
Periodic Customer Service Audits.
Maximization of Stakeholder value.
Success through Teamwork, Integrity and People.
17. IIPS Page 17
SERVICES PROVIDED TO THE CUSTOMER AT AXIS
Accounts
Easy Access Savings Account
Prime Savings account
Salary Savings Account
Power salute: A salute to the defence forces
Azaadi
Senior Privilege Savings Account
For the woman of today – Smart Privilege Savings Account
A complete banking solution for Trusts, Associations, Societies,
Government Bodies, Section 25 companies and NGOs
Pension Savings Bank Account
Deposits
Fixed Deposits
Recurring Deposits
Encash24
Tax Saver Fixed Deposits
Capital Markets
Debt Solutions
Equity Solutions
Private Equity, Mergers & Acquisitions
Advisory Services
Trusteeship Services
18. IIPS Page 18
Depository Services
Capital Market Funding
e-Broking
Credit
Working Capital Finance
Term Loans
Trade Services and Trade Finance
Structured Finance
Supply Chain Management
Overseas Financing and Transactions
SME Standard Products
Power Track
CUSTOMER CARE SERVICE
Axis Bank customer care service has enabled the bank to reach out to their customers and help
them with any information they might need. The Axis Bank customer support centres spread
across the country operate 24 x 7 customer care services that are dedicated to provide most
accurate and prompt information regarding the banking products, services and the respective
policies. As the banking field is getting more and more commercialize, there's a bombardment of
highly innovative banking products to lure as many customers as possible. This creates confusion
among the customers about the terms and conditions that the new banking schemes are subject
to.
Axis Bank customer care centres aim to carry forward the transparency Axis Bank has
maintained with its customers regarding the terms and conditions on any new banking product
and scheme.
19. IIPS Page 19
FINANCIAL ADVISORY SERVICES
Axis bank has employed a highly proficient financial advisory team comprising of experienced
and competent relationship managers. The Axis Bank relationship manager advises the customer
on the available investment opportunities like mutual funds, deposits, IPO‟s etc. that will suit his
investment requirements. They aim to help the customers achieve their investment goals
efficiently and without any hassles. A research team of experts from financial industry is
responsible for establishing out investment strategy and providing real time information to
support it.
Mutual Funds
Axis Bank Financial Advisory team adopts a strong research driven recommendation model to
help the customer choose the best funds based on qualitative and quantitative parameters. They
also offer a unique 'One Page Portfolio Snapshot' report across investment products customers
investing in Mutual Funds
Mohur Gold Coins/Bars
Axis Bank brings to you Mohur Gold coins/bars in the purest form! Made in Switzerland,Mohur
Gold coins/bars carry the Assay certification of being 24 carat, 99.99% pure! It comes to you in a
specialized packaging that is tamper proof so that its purity is preserved.
Online Trading
Investing and trading @ click of a mouse
Axis Bank in alliance with Geojit Financial Services offers an Online Trading Account. This
service provides with an integrated Savings Bank Account, Demat Account and an Online
Trading Account to give a convenient and paper free trading experience.
20. IIPS Page 20
Convenient and Secure, Axis Bank Demat Account makes the transaction of shares completely
effortless. A superior Demat Account is offered across all the branches which also include
Commodity Deliveries and NSC/KVP Demat.
Life Insurance
Axis Bank, in partnership with MetLife India, offers a wide choice of Life Insurance plans that
take care of your needs. The policies are customizable to suit the requirements of the customers.
General Insurance
The products offered by Axis Bank, in association with Bajaj Allianz are customized to ensure
complete peace of mind.
Priority Banking - Resident
Axis Bank has recently launched its priority banking service, in this the bank are providing their
services to customers very efficiently. In this kind of banking the customer doesn‟t need to stand
in ques or wait for bank personnel to solve their problem. Thebank is giving some unique
advantages to the customers so that they can experience the banking with a difference. When any
one opens his or her account with priority banking of Axis Bank, he or she will have a different
lounge for themselves. They will also have some dedicated relationship managers for their every
single need in banking.
Banking Privileges
Priority Banking Lounge:
As a Priority banking customer you will have access to an exclusive 'Priority Banking Lounge' at
branches. This will allow you to conduct your financial transactions in utmost comfort and
confidentiality through an exclusive Relationship Manager.
Dedicated RelationshipManager:
You will enjoy access to a dedicated Relationship Manager who will be your one point contact at
21. IIPS Page 21
branch for all your banking transactions thus ensuring that you would neither have to move from
one counter to the other nor stand in queues to await your turn.
Home Banking:
Experience the convenience of our home banking facilities. Avail of free cash and cheque pick-
up and delivery at your office or residence.
Exclusive Priority Banking International Debit card:
This card allows you free access to all VISA ATMs in India. The card also comes with
higher ATM withdrawal limits, higher POS transaction limits at merchant establishments,
enhanced insurance cover and a host of special discounts and offers.
You also get Preferential Interest Rates and lowered Processing Fees on select Retail
Loans.
Other Banking Privileges:
Enjoy a host of banking privileges like free at-par cheques, demand drafts and pay
orders, free passbook updates and monthly statements.
Customers would also be entitled to two free minor accounts, one free outward
remittance per quarter and free Mobile banking.
Investment Privileges
Avail of assistance in financial planning. Investment advice, market information reports,
and invitations to investor meets are offered complimentary to you.
Lifestyle Privileges
However, it's not all about just financial services. We aim to provide a different Lifestyle
experience through special offers on premium brands, movie privileges, special events
and lots more - especially for our Priority Banking customers.
22. IIPS Page 22
Gold Credit Card
As an added privilege, Priority Banking customers may also apply for a Gold Standard
Credit Card and Gold Standard Secured Credit Card without any additional fee, subject
to the applicable terms and conditions.
Priority Banking customers would also be eligible for a 50% reduction on the Issuance
Fee of Gold Plus Credit Card and Gold Plus Secured Credit Card. Rs. 500 will be charged
as the annual maintenance charge for Priority Banking customers, subject to the
applicable terms and conditions.
Eligibility Criteria
One can sign up for Priority Banking service by agreeing to any one of the following
criteria
Average quarterly balance (AQB) of Rs. 2 Lakh in your savings account ( this
requirement is Rs. 75,000 if in case you have a salary account with Axis Bank)
Average quarterly balance of Rs. 5 lakhs in combination of your savings and term
deposits (Minimum AQB of Rs. 50,000 in the savings account)
Minimum Average Quarterly relationship (SB+TD) of Rs. 10 lakhs across members of
the same family - Subject to a minimum average SB Balance of Rs. 80,000 being
maintained in the SB accounts of the participating members and the remaining amount in
Term Deposits.
23. IIPS Page 23
SAVING ACOUNTS OF AXIS BANK
1.Zero Balance Saving Account
Features
No Average Quarterly Balance requirement
Free International Debit Card with an Accidental Insurance cover up to Rs 2 lakhs*
Free mobile banking facility
Access through more than 1000 branches and over 4055 ATMs (as on 31st March 2010)
At-Par cheque facility with the clearing limit of Rs 50,000
24x7 Telebanking & Internet banking
Free quarterly statements
Free monthly e-statement.
2.Krishi Savings Account
Features:-
Average Balance Requirement
This account is offered with the requirement of maintaining the half-yearly average balance
of Rs 1000 only.
International Master Debit Card
The Krishi Savings Account entitles you to an International Master Debit Card with which you can
Access your account anytime through the Axis Bank ATM network free of cost.
This card comes with:
A cash withdrawal limit of Rs 25,000 per day
Free Accident Insurance cover of Rs 2 lacs
3.Senior Privilege Account
Axis Bank's Senior Citizen Savings Account has been designed keeping in mind the fact
that a senior citizen's banking requirements are wholly different and require special
consideration.
24. IIPS Page 24
4.Pension Savings Account
Pension Savings Bank Account, from Axis Bank is specifically, designed for Pensioner's
(Existing & Prospective) of Central Govt. Civil Ministries/ Departments &Defence
Ministry keeping in mind the Facts that a Pensioner‟s banking requirements are wholly
different and require special consideration.
Benefits
Timely communication to the customer on receipt of the PPO
No delays in commencement of pension disbursals - The Bank is handling the
disbursement of Pension under a Centralised Pension Disbursement Module wherein the
Pensioner records are credited centrally through its Centralised Pension Payment Hub
(CCPH) at Mumbai.
Timely issue of Form- 16A for tax deducted at source in the immediately previous
financial year.
5.Zero Balance Minor Account
Round-the-Clock access through ATMs: There could be an instance when at 3 am you could
require cash
. With our round-the-clock access you can withdraw cash up to Rs. 40,000 per day, deposit
cash/cheques, transfer funds, print a mini statement and pay insurance premiums (LIC), all
through our ATM channel
This is one of the largest ATM networks in the country.
25. IIPS Page 25
SALARY ACCOUNTS OF AXIS BANK
Corporate Salary Account
.
Benefit to Employers
Efficient salary disbursal.
Web Upload - Transfer salaries/reimbursements directly from your current account with Axis
Bank to your employee's accounts using I Connect from your office.
Single-instruction salary credit - Same day salary credits for all companies having Corporate
Account with Axis Bank.
Dedicated Relationship Manager at metro locations to understand the financial requirements of
your employees.
Benefit to Employees
No minimum balance criteria.
Unparalleled Access - Anywhere banking facility through our network of Branches, Atm and
Internet banking facility.
AT Par cheque books payable locally at all Axis Bank locations.
International Debit cum ATM cards with enhanced Cash withdrawal facility and other value add
ons.Online Banking with funds transfer, online shopping and bill payment options.
Depository services with free online trading accounts
.
Meal Cards on a master card platform.
Employee Reimbursement accounts as a savings account variant.
Preferential pricing on loan products and credit cards and other banking products & services*.
27. IIPS Page 27
COMPETITORS
HDFC BANK
The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the
private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered
office in Mumbai, India. HDFC Bank commenced operations as a Scheduled Commercial Bank
in January 1995.
ICICI BANK
ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00 billion (US$ 81
billion) at March 31, 2010 and profit after tax Rs. 40.25 billion (US$ 896 million) for the year
ended March 31, 2010. The Bank has a network of 2,016 branches and about 5,219 ATMs in
India and presence in 18 countries. ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of delivery channels and
through its specialized subsidiaries in the areas of investment banking, life and non-life
insurance, venture capital and asset management. The Bank currently has subsidiaries in the
United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong
Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in
United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany.
OTHER COMPETITORS ARE………..
30. IIPS Page 30
Axis Bank HDFC
Features Plus Priviledge Premium Payroll Classic Regular Premium Salary Easy Pay
CHARGES
Demand Draft
Free Limits
Upto
Rs.25000
per month
Free Limits
Upto
Rs.50000
per month
Unlimited
Free Limit
Upto
Rs.10000/-
Rs.50
Upto
Rs.10000/-
Rs.50
Free upto
Rs.25000/-
per month
Free upto
Rs.25000/-
per month
Max of
Rs.50000/-
per
instrument
Max of
Rs.50000/-
per
instrument
Between
Rs.10 k - 50
k : Rs.75
Between
Rs.10 k - 50
k : Rs.75
Between
Rs.25 k - 50
k : Rs.75
Between
Rs.25 k - 50
k : Rs.75
Above
Rs.50 k up
to Rs. 1 lac
- Rs.2.50 /
000 min of
Rs.150
Above
Rs.50 k up
to Rs. 1 lac
- Rs.2.50 /
000 min of
Rs.150
Above
Rs.50 k up
to Rs. 1 lac
- Rs.2.50 /
000 min of
Rs.150
Above
Rs.50 k up
to Rs. 1 lac
- Rs.2.50 /
000 min of
Rs.150
Above Rs.1
lac -
Rs.2
/000Min -
Rs.250 and
a max of
Rs.5000/-
Above Rs.1
lac -
Rs.2
/000Min -
Rs.250 and
a max of
Rs.5000/-
Above Rs.1
lac - Min -
Rs.250 and
a max of
Rs.5000/-
Above Rs.1
lac - Min -
Rs.250 and
a max of
Rs.5000/-
OSC
Collection -
Our Bank
Comission
Charges to
be
recovered
Only Out
of Pocket
Charges of
Rs.30
Only Out
of Pocket
Charges of
Rs.30
No
Charges
for cheque
amount
upto
Rs.500 per
instrument
No
Charges
for cheque
amount
upto
Rs.500 per
instrument
No
Charges
for cheque
amount
upto
Rs.500 per
instrument
No
Charges
for cheque
amount
upto
Rs.500 per
instrument
Rs.2.50
/000
subject to
min - Rs.30
and Max
of
Rs.10000/-
Rs.2.50
/000
subject to
min - Rs.30
and Max
of
Rs.10000/-
Above
Rs.501-
Rs.1 / 000
Min of
Rs.50/-
Above
Rs.501-
Rs.1 / 000
Min of
Rs.50/-
Above
Rs.501-
Rs.1 / 000
Min of
Rs.50/-
Above
Rs.501-
Rs.1 / 000
Min of
Rs.50/-
Upcountry
Collection -
Non Bank
Location
Rs
2.5/1000
Min Rs.50
plus
Postage
Rs 30
Rs
2.5/1000
Min Rs.50
plus
Postage
Rs 31
Rs
2.5/1000
Min Rs.50
plus
Postage
Rs 32
Cheques
(MICR)
drawn on
non-
branch
lacations
with no
correspo
ndent
bank tie-
up-
0.40%(mi
n Rs 50)
Cheque
Drawn on
non -
branch
locatins
with no
correspo
ndent
bank tie-
up/non
MICR
cheque-
0.65%+Rs
25(Min Rs
50)
Cheques
(MICR)
drawn on
non-
branch
lacations
with no
correspo
ndent
bank tie-
up-
0.40%(mi
n Rs 50)
Cheque
Drawn on
non -
branch
locatins
with no
correspo
ndent
bank tie-
up/non
MICR
cheque-
0.65%+Rs
25(Min Rs
50)
Cheques
(MICR)
drawn on
non-
branch
lacations
with no
correspo
ndent
bank tie-
up-
0.40%(mi
n Rs 50)
Cheque
Drawn on
non -
branch
locatins
with no
correspo
ndent
bank tie-
up/non
MICR
cheque-
0.65%+Rs
25(Min Rs
50)
Cheques
(MICR)
drawn on
non-
branch
lacations
with no
correspo
ndent
bank tie-
up-
0.40%(mi
n Rs 50)
Cheque
Drawn on
non -
branch
locatins
with no
correspo
ndent
bank tie-
up/non
MICR
cheque-
0.65%+Rs
25(Min Rs
50)
Rs.3/thous
and,
subject to
min of
Rs.30 and
max of
Rs.10000
plus other
bank
charges
as actuals
Rs.3/thous
and,
subject to
min of
Rs.30 and
max of
Rs.10000
plus other
bank
charges
as actuals
Cheque
Return
Charges
Rs.350+
Tax
Insufficient
Funds -
With Step
Up After
the 4th
Return
Rs.350+
Tax
Insufficient
Funds -
With Step
Up After
the 4th
Return
Rs.350+
Tax
Insufficient
Funds -
With Step
Up After
the 4th
Return
Insufficient
Funds -
Rs.350 per
return
Insufficient
Funds -
Rs.350 per
return
Insufficient
Funds -
Rs.350 per
return
Insufficient
Funds -
Rs.350 per
return
Insufficient
Funds -
Rs.350 per
return
Insufficient
Funds -
Rs.350 per
return
ICICI
31. IIPS Page 31
COMPARISON OF SALARY PRODUCTS
Features AXIS BANK HDFC ICICI BANK
Minimum
average salary
10000 10000 12000
Minimum no. of
employees
10 10 25
Reimbursement
of account
YES YES YES
Term deposit
Sweep
YES Yes, but only sweep
in
Yes, but not
automated
Investment
Account
Available to all
Customers
NA NA
Investment
Advisory
Services
Available to all Only to selected
customers
Only to selected
customers
Account
Statement
Monthly Free Quarterly Free Quarterly free
Free online bill
payment
YES YES YES
Salary alerts on
mobile
YES YES YES
NET Card YES NA NA
Account
opening&
welcome kits
Instant In a week‟s time Instant
Online
Investment
Depository service with
free online trading
accounts
NA NA
33. IIPS Page 33
3.1NEED AND OBJECTIVE
Project at a glance-
‘COMPARATIVE ANALYSIS OF SAVING AND SALARY
PRODUCTS OF AXIS BANK WITH ITS COMPETITORS’
The main of the present study is accomplish the following objectives-
Proper understanding and analysis of banking industry.
To know about the brand awareness of Axis Bank and customers preferences about Axis
Bank.
Conduct a market survey on a sample selected from the customer and derived opinion on
that research.
Along with it I will be gaining the experience of banking industry. This will help me to
market the products given to me.
As the Axis Bank is one of the leading private sector banks in India, It will be a great
chance for me to gain a deep insight of the products launched by Axis and its competitors
like HDFC and ICICI bank.
The research gives me a great chance to communicate the customers directly as they are
the main focus of this study. This will help me to know what a customer want and how
they think while opening an account with banks.
This will also help me to know what people think about the private sector banks in India.
This research will also help in finding that that the customers are happy with the services
provided by the bank and with the features of their saving and savings account.
34. IIPS Page 34
RESEARCH METHODOLOGY
The research applied in the project is descriptive research as the major objective of the research
is to describe the investment preferences of salaried and self-employed retail investors. The study
aims at comparing the investment patterns of the two.
DESCRIPTIVE RESEARCH
The major objective of descriptive research is to describe something ---- usually market
Characteristics or functions .Descriptive research is conducted for the following reasons:
1. To describe the characteristics of relevant groups, such as consumer, salespeople
organizations, or market areas.
2. To estimate the percentage of units in a specified population exhibiting a certain behavior
3. To determine the perception of products characteristics.
4. To determine the degree to which marketing variables are associated.
5. To make specific predictions.
Descriptive research is preplanned and structured. It is typically based on large representative
samples. A formal research design specifies the method for selecting the sources of information
and for collecting data from those sources.
SAMPLE ELEMENT
An element is the object about which or from which the information is desired.The samplr element of
this project is the people who have their saving and salary accounts in Axis Bank and HDFC and
ICICI bank in Chandigarh.
35. IIPS Page 35
SAMPLING EXTENT
It refers to geographical boundaries in which sampling has been done.
The sampling extent of this project is Chandigarh.
SAMPLING SIZE
It refers to the number of units to be included in the study. The sampling size of the study is
100 people who have their accounts in these three banks.
SAMPLING TECHNIQUE
The sampling technique refers to the technique used for getting response from the
respondent. Probability sampling refers to the technique wherein each and every unit of the
universe has an equal chance of being selected as sample. Non probability sampling refers
to the technique wherein each and every unit does not stand an equal chance of being as
sample and sample chosen relies on the personal judgment of researcher. The researcher can
arbitrarily or consciously decide what elements to include in the sample.
For the purpose of this study, probability sampling will be used which relies on the
chance to select sample elements. The purpose of using this technique was to yield good
estimates of the population characteristics within non-probability sampling.
CONVENIENT SAMPLING
It is the least expensive and least time consuming of all sampling techniques. Sampling units
are accessible, easy to measure and co-operative so convenient sampling will be used for the
purpose of project. The retail investors who invest through various consultants and banks
were interviewed.
36. IIPS Page 36
INSTRUMENT DECISION
A structured Questionnaire supported by personal interviews has been used to collect
primary data in this project.
DATA COLLECTION
The data collected for the research includes both primary and secondary data. As the
research is descriptive and involves the study of investment patterns of retail investors, most
of the data used is primary. Secondary data has been used to support the study at some
places.
METHODS OF DATA COLLECTION:
The task of data collection begins after a research problem has been defined and research
plan chalked out. While deciding about the method of data collection to be used for the
study the researcher should keep in mind two types of data via: primary and secondary. The
primary data are those which are collected afresh and for first time, and thus happen to be
original in character, the secondary data , on the other hand , are those which have already
been passed through statistical procedure.
COLLECTION OF PRIMARY DATA
We collect primary data during the course of doing experiments in an experimental
research but in case we do research of the descriptive type and perform surveys ,
whether sample surveys or census surveys , then we can obtain primary data either
through observation or direct communication with the respondents in one form or
another or through personal interviews . in other words there are several methods of
collecting primary data, particularly in surveys and descriptive researches. Important
ones are
37. IIPS Page 37
Observation method
Interview method
Questionnaires
In this project the source of primary data collection are structured questionnaire supported
by interviews. This has further helped me in the study while giving recommendations and
establishing the co-relations in the project.
COLLECTION OF SECONDARY DATA
Secondary data means that are already available i.e .They refer to the data which gave
already been collected and analyzed by someone else. The collection of secondary data has
been done by various publications, books, magazines, journals, newspaper and internet. By
way of caution, the researcher, before using data, must see that they possess following
characteristics
Reliability of data
Suitability of data
Adequacy of data
39. IIPS Page 39
DATA ANALYSIS
1. This analysis displays the division of sample according to the occupation. A
total of 100 people were surveyed.
Table1.
Categories Frequency Percent
Valid
Percent
SALARIED 44 44.0 44.0
BUSINESS 24 24.0 24.0
PROFESSIONAL 32 32.0 32.0
Total 100 100.0 100.0
In the convenience sample I find that out of 100, 44% were
salaried class,22% were business class and 32% were
professionals.
40. IIPS Page 40
2.How the customers find salary and savings account provided by Axis
Bank?
customers
very good
good
satisfactory
exellent
poor
Analysis show that customers find salary and saving account of axis bank
are good.
3.Do customers have any other product of AXIS BANK other than savings and
salary account? (Like term deposit, mutual funds, insurance, home loan, car loan
etc.)
Analysis show that most of the customers have other products of
Axis bank other than saving and salary account.
41. IIPS Page 41
4.Are the customers satisfied with their savings and salary account?
Analysis show that most of the customers are satisfied with their salary
and saving account in Axis bank.
5.Which bank is better in providing services regarding transactions?
BANKS
AXIS BANK
HDFC BANK
ICICI BANK
Analysis show that Axis Bank is better in providing services
regarding transactions
42. IIPS Page 42
6.Which is better bank in ease of access (both branch & ATM)?
Analysis show that Axis Bank is better in ease of access. In case
of branch HDFC is better in ease of access.
7.Which bank‟s accounts provide greater flexibility?
Analysis show that HDFC and ICICI Bank‟s provide better
Flexibility.
43. IIPS Page 43
8.Are you satisfied with the relationship manager‟s service provided by Axis
Bank?
Analysis show that most of the persons are satisfied with relationship
manager service.
9.Which channel you use to access your account?
Analysis show that most of customers use phone banking and
very few customer use mobile banking.still some customers use
direct brach service.
44. IIPS Page 44
10.Which are the areas of improvement?
Analysis show that major areas of improvement are updates and
services.
46. IIPS Page 46
FINDINGS
The bank has good relation with its customers. The customers are very satisfied with the
relationship manager service provided by Axis Bank.
The bank and its customers have a long term relationship. Axis Bank has the tendency to
retain its customers at any cost. They believe that the old customer is more profitable in
stead of a new one that‟s why they try to maintain good and long term relations to their
customers.
Less no. of customer use mobile banking or net banking.
The accounts of axis bank (both salary & saving) provide great flexibility in terms of
offering.
The accounts of these three banks don‟t have much difference in terms of features but
when it comes to service providing the Axis Bank gets an edge because of their great
customer services.
The axis bank has good no. of branches and ATM‟s that‟s why it has more ease of access.
The customers of Axis Bank are satisfied with their savings and salary accounts.
48. IIPS Page 48
Limitations of Study:-
Convenient sample is the main limitation of study.
Sample was very small.it represents whole the customers of bank.
Geographical area was the another limitation if the study.
50. IIPS Page 50
CONCLUSION AND RECOMMENDATIONS
The study mainly was on the customer orientation that how they think, what they want
from their banks and how they take decision going to any bank.
In this study I found that the bond of Axis Bank with its customers is very strong,
because Axis Bank mainly focuses on retaining their customers.
This study finds that however Axis Bank is not the leading private sector bank but its vast
range of products and availability of options make it one of the better banks in India.
The bank should focus on the semi urban and rural market because these markets are very
good opportunity for someone like Axis Bank which is in growing face. Without
expanding in these markets Axis Bank can not be a leading bank so they should focus on
this market.
The bank should focus on mass banking in order to increase their market share. They
should launch such products which would be within the reach of the lower middle class.
The bank should pay more attention on giving updates and should increase the level of
service providing because the competitors of axis are better in this area.
The bank should try to increase the use of technology like mobile and net banking among
its customers.
51. IIPS Page 51
APPENDIX
QUESTIONNAIRE
(Dear Sir/Madam, I am an MBA student doing a survey on study of salary and saving account of Axis
Bank,HDFC Bank and ICICI Bank as a part of my course curriculum, as an intern at AXIS BANK,
Chandigarh. I request you to kindly spare some of your valuable time answering the questionnaire. The
information collected through this questionnaire are meant purely for academic purpose.)
1. Name:
2. Sex: (Male/Female)
3. Age:
a) 20-30 yrs
b) 30-40 yrs
c) 40-50 yrs
d) More than 50 yrs
4. Educational Qualification:
a) Less than High School
b) High School
c) Intermediate
d) Graduate
e) Post-Graduate
5. Marital status:
a) Single
b) Married
52. IIPS Page 52
6. If married, is your spouse working?
a) Yes
b) No
7. No. of dependents in the family?
a) 2
b) 3
c) 4
d) More than 4
8. Occupation:
a) Public sector employee
b) Private sector employee
c) Business
d) Retired
e) Professional
9. Which income group do you belong to?
a) Less than 50,000 p.a.
b) 50,000 to 1, 00,000 p.a.
c) 1, 00,000 to 3, 00,000 p.a.
d) 3, 00,000 to 5, 00,000 p.a.
e) More than 5, 00, 000 p.a.
10. Do you have any other product of axis bank other than salary/saving account?
a) Yes
b) No
53. IIPS Page 53
11.How you find the salary/saving accounts of Axis Bank?
a) very good
b) good
c) excellent
d) poor
e) satisfactory
12. Are you satisfied with your salary/saving account?
a) Yes
b) No
13. Which bank has ease of access?
a) Axis bank
b) HDFC Bank
c) ICICI bank
14. Which bank offers you the flexibility in its products?
a) Axis Bank
b) HDFC Bank
c) ICICI Bank
15. Which is the area of improvement for Axis Bank?
a) Products
b) RM
c) Services
d) Technology
e) Updates
THANK YOU
