Axis Bank

Banking On Technology & Market

Segment For Competitive Space

Presented By:
Abhideep

Rashmi Ranjan
Deepak.s
 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
 .
• 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 : UTI Bank on Monday
rechristened itself as Axis Bank.
 Current Shareholding Pattern of Axis Bank
.
• 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, mortgage financing,
credit cards, and depository services etc .
 Services
Retail banking
• Deposits schemes
• Loans and advances
– Personal loans
– Housing loans
– Cards
– Consumer durables
– Auto loans
Personal banking
• Accounts
– Term deposit
– Fixed deposit
– Recurring deposit
• Cards
– Different variant like: Gold plus card, Gold card, Silver & silver
plus cards.
Corporate banking
• Accounts
– Normal Current Account
– Trust/NGO Savings Account
• Services
– Private Equity, Mergers & Acquisitions
– Advisory Services
– Capital Market Funding
– E-Broking
 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.
• 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).
 Axis Financial Position
Rs in crs.
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 profit 659.03 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%
 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
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
Comparative Reach Analysis

Bank Branches ATMs Cities Inception

s yr
Axis 1035 4293 515 1994

HDFC 1416 3382 550 1995

ICICI 950 3500 21,408 1895

SBI 9000 6800

 Axis Bank

Marketing Overview
 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.
 Marketing Objectives

Axis Bank want to achieve following marketing

objectives by the end of the year 2011.

• To get the market capitalization 500 Crore

• To get the 200 Crore retail investment.
• To get 125 Crore Corporate investments.
• To get the 175 Crore Capital investments.
Axis Bank Shift In Strategy
Initial Business Model
Corporate assets being the focus area
Corporate loans offered high yields to the
bank
Strategy Shift
Focus on retail finance segment
Physical & Technology infrastructure
improvement
 The Strategy-Making, Strategy-Execution Process for
AXIS Bank

Decreasing the NPAs to below Building Spread across

Achieve organic
1% of total assets, to infrastructure & 248 locations, 109
growth through branches with
Retail banking aggressively tap the retail adhering to the latest
domain via the use of ATMs technology 4293 ATMs,
Adoption of
Finnacle, I-
banking etc

Reduction in NPAs %
to 0.61%, increase in
Revise as needed in the light of actual
retail deposits, Retail
performance, changing conditions, new
banking powering
opportunities & new ideas.
growth in fee based
income
 Current Strategy

Managing the changing customer needs

Risk Management
Dealing with regulations
Keeping pace with technology
Product and service innovation
Complementary Strategies for Business
Growth & Development

Strategic alliances and collaborative

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

It Outsourcing selected value chain activities

1.Outsourcing recruitments to
monsterindia.com
2. Outsourcing print operations to Xerox
3. Outsourcing of EBP and ATM management
 Offensive Strategic Moves

Superior Customer Service

Range of services on ATM machine
Aggressive growth in card business
Expansion of geographical reach
Financial Advisory Services
 Use of Internet

I-Connect net banking service

Internet based electronic remittances portal
E-Payment facility for payment of central
excise & service tax
Seamless Electronic Transfer U
“I -trade
SWOT ANALYSIS OF AXIS BANK
 Positioning strategy
– Axis bank has positioned itself as a bank
which gives higher standard of services
through product innovation for the diverse
need of individual & corporate clients. So they
want to highlight following points in their
positioning statement:
• Customer centric
• Service oriented
• Product innovation
 Features Of Axis Bank
• Anywhere Banking
• Instant Fund Transfer
• Internet Banking
• At-Par (Multicity) Chequebook
• ATM cum Debit Card
• Mobile Banking , Mobi
• Phone Banking
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).

New Initiatives
 Tie-ups with various Govt. Departments:

Govt. Departments:
• DGFT ePayments
• MCD - Municipal Tax or Fees ePayments
• MCD - eTendering Project
• Sampark - Utility Bill ePayments
• Bangalore One Project - Utility Bill ePayments
 Alternate Channels:

• ATM Channel

• Internet Banking Channel

• Mobile Banking Channel

 ATM Channel

• All its ATMs are connected to Base24 ATM switch

• The Bank through its ATMs offers the following services:

– Banking Services
– Mobile Airtime Refill
– Bill Payment e.g.: BSNL, MTNL
– Life Insurance Corporation Premium Payment
– Purchase and redemption of UTI Mutual Fund
Schemes through the ATM.
 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
 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
 Growth Prospects of Axis
• Over the last five years, the CAGR for loan growth for the banking industry
has been 25-26 per cent; for Axis Bank it has been above 40 per cent.
• Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-
1.7x the industry average.
• 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 Bank’s fast pace of growth is expected to sustain over the next
couple of years.
 Core Values of Axis
• Customer Satisfaction through
• Providing quality service effectively and efficiently
• "Smile, it enhances your face value" is a service quality
stressed on
• Periodic Customer Service Audits
• Maximizations of Stakeholder value
• Success through Teamwork, Integrity and People
 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 to

this their market share has increased only despite of tough
competition prevails.
 .

Any Query's
Thank you