Project Report on
Information System of Axis Bank
(Project report submitted in partial fulfillment of the requirements for the MBA
Submitted by: -MAN MOHAN SINGH(0341233908)
Submitted to:- Ms. Bharti Taneja
Delhi Institute of Advanced Studies
(Affiliated to GGSIP University, Delhi)
Plot No.6, Sector-25, Rohini, Delhi-110085.
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 Administrator 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.
The bank changed its name to Axis Bank in April 2007 to avoid confusion
with other unrelated entities with similar name. Shikha Sharma was named
as the bank's managing director and CEO on 20 April 2009.
As on the year ended March 31, 2009 the Bank had a total income of Rs.
13,745.04 crores and a net profit of Rs 1,812.93 crores
At the end of March 2009,the Bank has a very wide network of more than
726 branch offices and Extension Counters. The Bank has loans now (as of
June 2007) account for as much as 70 per cent of the bank’s total loan book
of Rs 2,00,000 crore. For HDFC Bank, retail assets are around 57 per cent
(Rs 28,000 crore) of the total loans as of March 2007.
In the case of Axis Bank, retail loans have declined from 30 per cent of the
total loan book of Rs 25,800 crore in June 2006 to around 23 per cent of loan
book of Rs.41,280 crore (as of June 2007). Even over a longer period, while
the overall asset growth for Axis Bank has been quite high and has matched
that of the other banks, retail exposures grew at a slower pace.
If the sharp decline in the retail asset book in the past year in the case of
Axis Bank is part of a deliberate business strategy, this could have
significant implications (not necessarily negative) for the overall future
profitability of the business.
Despite the slower growth of the retail book over a period of time and the
outright decline seen in the past year, the bank’s fundamentals are quite
resilient. With the high level of mid-corporate and wholesale corporate
lending the bank has been doing, one would have expected the net interest
margins to have been under greater pressure. The bank, though, appears to
have insulated such pressures. Interest margins, while they have declined
from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per
cent mark. (The comparable margins for ICICI Bank and HDFC Bank are
around 2.60 per cent and 4 per cent respectively. The margins for ICICI
Bank are lower despite its much larger share of the higher margin retail
business, since funding costs also are higher).
Company History - Axis Bank
- The Bank was incorporated on 3rd December and Certificate of
on 14th December. The Bank transacts banking business of all
description. UTI Bank Ltd. was promoted by Unit Trust of India,
Life Insurance Corporation of India, General Insurance Corporation of
India and its four subsidiaries.
- The bank was the first private sector bank to get a license under
The new guidelines issued by the RBI.
- The Bank obtained license to act as Depository Participant with NSDL
and applied for registration with SEBI to act as `Trustee to Debenture
- Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5
crores, GIC and its four subsidiaries Rs 1.5 crores each.
- The Bank has 28 branches in urban and semi urban areas as on 31st
July. All the branches are fully computerised and networked through
VSAT. ATM services are available in 27 branches.
- The Bank came out with a public issue of 1,50,00,000 No. of equity
shares of Rs 10 each at a premium of Rs 11 per share aggregating to
Rs 31.50 crores and Offer for sale of 2,00,00,000 No. of equity shares
for cash at a price of Rs 21 per share. Out of the public issue 2,20,000
shares were reserved for allotment on preferencial basis to employees
of UTI Bank. Balance of 3,47,80,000 shares were offered to the
- The company offers ATM cards, using which account-holders can
withdraw money from any of the bank's ATMs across the country which are
inter-connected by VSAT.
- UTI Bank has launched a new retail product with operational
flexibility for its customers.
- UTI Bank will sign a co-brand agreement with the market, leader,
Citibank NA for entering into the highly promising credit card business.
- UTI Bank promoted by India's pioneer mutual fund Unit Trust of India
along with LIC, GIC and its four subsidiaries.
- UTI Bank and Citibank have launched an international co-branded
- UTI Bank and Citibank have come together to launch an
International co-branded credit card under the MasterCard umbrella.
- UTI Bank Ltd has inaugurated an off site ATM at Ashok Nagar here,
taking the total number of its off site ATMs to 13.m
- The Bank has announced the launch of Tele-Depository Services for its
- UTI Bank has launch of `iConnect', its Internet banking Product.
- UTI Bank has signed a memorandum of understanding with
equitymaster.com for e-broking activities of the site.
- Infinity.com financial Securities Ltd., an e-broking outfit is typing
up with UTI Bank for a banking interface.
- Geojit Securities Ltd, the first company to start online trading services, has
signed a MoU with UTI Bank to enable investors to
buysell demat stocks through the company's website.
- Indiabulls has signed a memorandum of understanding with UTI Bank.
- UTI Bank has entered into an agreement with Stock Holding Corporation
of India for providing loans against shares to SCHCIL's customers and
funding investors in public and rights issues.
- ICRA has upgraded the rating og UTI Bank's Rs 500-crore certificate
of deposit programme to A1+.
- UTI Bank has tied up with L&T Trade.com for providing customised
online trading solution for brokers.
- UTI Bank launched a private placement of non-convertible debentures
to raise up to Rs 75 crore.
- UTI Bank has opened two offsite ATMs and one extension counter with
an ATM in Mangalore, taking its total number of ATMs across the country
- UTI Bank has recorded a 62 per cent rise in net profit for the
quarter ended September 30, 2001, at Rs 30.95 crore. For the second
quarter ended September 30, 2000, the net profit was Rs 19.08 crore.
The total income of the bank during the quarter was up 53 per cent at
Rs 366.25 crore.
- UTI Bank Ltd has informed BSE that Shri B R Barwale has resigned as a
Director of the Bank w.e.f. January 02, 2002. A C Shah, former chairman
Of Bank of Baroda, also retired from the bank’s board in the third quarter
of last year. His place continues to be vacant. M Damodarantook over as the
director of the board after taking in the reins of UTI. B S Pandit has also
joined the bank’s board subsequent to the retirement of K G Vassal.
- UTI Bank Ltd has informed that Shri Paul Fletcher has been appointed
as an Additional Director Nominee of CDC Financial Service (Mauritius)
Ltd of the Bank.And Shri Donald Peck has been appointed as a Additional
Director (nominee of South Asia Regional Fund) of the Bank.
- UTI Bank Ltd has informed that on laying down the office of Chairman
of LIC on being appointed as Chairman of SEBI, Shri G N Bajpai, Nominee
Director of LIC has resigned as a Director of the Bank.
- B Paranjpe & Abid Hussain cease to be the Directors of UTI Bank.
- UTI Bank Ltd has informed that in the meeting of the Board of
Directors following decisions were taken: Mr Yash Mahajan, Vice
Chairman and Managing Director of Punjab Tractors Ltd was appointed
as an Additional Director with immediate effect. Mr N C Singhal former
Vice Chairman and Managing Director of SCICI was appointed as an
Additional Director with immediate effect.
-ABN Amro, UTI Bank in pact to share ATMs.
-UTI Bank Ltd has informed BSE that a meeting of the Board of
Directors of the Bank is scheduled to be held on October 24, 2002 to
consider and take on record the unaudited half yearly/quarterly
financial results of the Bank for the half year/Quarter ended
September 30, 2002.
-UTI Bank Ltd has informed that Shri J M Trivedi has been appointed
as an alternate director to Shri Donald Peck with effect from
November 2, 2002.
-UTI Bank Ltd has informed BSE that at the meeting of the Board of
Directors of the company held on January 16, 2003, Shri R N
Bharadwaj, Managing Director of LIC has been appointed as an Additional
Director of the Bank with immediate effect.
- UTI Bank, the private sector bank has opeaned a branch at Nellore.
The bank's Chairman and Managing Director, Dr P.J. Nayak,
inaugurating the bank branch at GT Road on May 26. Speaking on the
occasion, Dr Nayak said, This marks another step towards the
extensive customer banking focus that we are providing across the
country and reinforces our commitment to bring superior banking
services, marked by convenience and closeness to customers.
-UTI Bank Ltd. has informed the Exchange that at its meeting held on
June 25, 2003 the BOD have decided the following: 1) To appoint Mr. A
T Pannir Selvam, former CMD of Union Bank of India and Prof. Jayanth
Varma of the Indian Institute of Management, Ahmedabad as additional
directors of the Bank with immediate effect. Further, Mr. Pannir
Selvam will be the nominee director of the Administrator of the
specified undertaking of the Unit Trust of India (UTI-I) and Mr.
Jayanth Varma will be an Independent Director. 2) To issue
Non-Convertible Unsecured Redeemable Debentures upto Rs.100 crs, in
one or more tranches as the Bank's Tier - II capital.
-UTI has been authorised to launch 16 ATMs on the Western Railway
Stations of Mumbai Division.
-UTI filed suit against financial institutions IFCI Ltd in the debt
recovery tribunal at Mumbai to recover Rs.85cr in dues.
-UTI bank made an entry to the Food Credit Programme, it has made an
entry into the 59 cluster which includes private sector, public sector, old
private sector and co-operative banks.
-Shri Ajeet Prasad, Nminee of UTI has resigned as the director of the bank.
-Banks Chairman and MD Dr.P.J.Nayak inaugurated a new branch at
-UTI bank allots shares under Employee Stock Option Scheme to its
-Unveils pre-paid travel card 'Visa Electron Travel Currency Card'
-Allotment of 58923 equity shares of Rs 10 each under ESOP.
-UTI Bank ties up with UK govt fund for contract farming
-Shri B S Pandit, nominee of the Administrator of the Specified
Undertaking of the Unit Trust of India (UTI-I) has resigned as a
director from the Bank wef November 12, 2003.
-UTI Bank unveils new ATM in Sikkim
-Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible
Debenture Issue, issue fully subscribed
-UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the
Administrator of the Specified Undertaking of the Unit Trust of India
(UTI - I) has been appointed as an Additional Director of the Bank
w.e.f. January 20, 2004.
-UTI Bank opens new branch in Udupi
-UTI Bank, Geojit in pact for trading platform in Qatar
-UTI Bank ties up with Shriram Group Cos
-Unveils premium payment facility through ATMs applicable to LIC &
UTI Bank customers
-Metaljunction (MJ)- the online trading and procurement joint venture
of Tata Steel and Steel Authority of India (SAIL)- has roped in UTI
Bank to start off own equipment for Tata Steel.
-DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold
Incorporated, has secured a major contract for the supply of ATMs and
services to UTI Bank
-HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m
-UTI Bank installs ATM in Thiruvananthapuram
-Launches `Remittance Card' in association with Remit2India, a Web
site offering money-transfer services
- UTI Bank enters into a bancassurance partnership with Bajaj Allianz
General for selling general insurance products through its branch
-UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in
Karnataka at Mangalore.
-UBL sets up branch in Jaipur
-UTI Bank unveils priority banking lounge
1. Personal banking
• Term deposit
• Fixed deposit
• Recurring deposit
Different variety like
• Gold plus & gold card
• Silver plus & silver card
2. Corporate banking
o Normal current a/c
o Trust/NGO saving a/c
Capital market funding
• E- Broker
3. Retail banking
Loans & advances
• Personal loan
• Housing loan
• Consumer durables
• Auto loan
Axis Bank has implemented a new derivatives system -- Summit FT by
global financial applications provider -- Misys. The system will provide the
bank with the ability to structure derivative products in real time, reduce
time to market, and give a single view of the entire transaction to the
customer. According to Prabhakar Saxena, general manager (India) of
Misys, "A lot of banks are providing derivative products on a back to back
basis. But these are plain vanilla products, which are uniform in nature.
Summit FT will help Axis to structure its derivative products differently and
offer its customers products that are different from the run-of-the-mill
derivatives. Thus, it can charge a premium for its dynamic services." The
bank hopes to leverage the ability to rationalize its currently dispersed
functions to provide a single view of every transaction to customers.
Derivative transactions can expose the bank to three broad categories of
risks: counterparty credit risk, market risk, and operational risk. With
derivatives and structured products operations currently served by a range of
third party vendor solutions, spreadsheets, and customer built platforms, the
bank is predicting that rationalizing systems across front, middle, and back
office operations will provide significant competitive advantage. "Apart
from helping the bank to create new derivative products without having to
resort to developers each time, it also helps from a regulatory compliance
standpoint," said Saxena. The RBI favors transparent online systems that can
track every transaction and report it exactly as it is. Currently spreadsheets
are being used to record information, which leaves room for misreporting,
errors etc. An automated system will remove this anomaly and improve
compliance to a great extent. The Summit FT product was evaluated against
products by competitors Murex and Calypso before it was finally adopted by
ORGANISATION COMPUTING RESOURCES:
Risk Management solutions provider for derivatives market, Pyxis Systems,
has announced that UTI Bank has selected its RisKompass as the software
solution for financial derivatives risk management.
A software system for derivatives valuation and risk management,
RisKompass enables clients to manage derivative trades in a further
controlled way from the front to back office. Supporting the industry
standard FpML (Financial Product Markup Language) protocol, it can
manage valuation and risk management of a broad range of derivatives
The system will handle derivatives such as interest rates and foreign
exchange for UTI Bank.
The implementation will provide the bank with an automated system that
reduces manual effort to streamline its operations.
The benefit envisaged by the bank is that everybody being on the same
system, it can be accessed by anyone on the different locations of the bank.
The users at the bank would include marketing staff, traders, dealers and risk
The solution will result in smoother deal processing, with verifying and
online risk monitoring mechanism. It will streamline all operations and the
risk mechanism can be monitored centrally.
UTI will be replacing their Crystal Xcelcius system with this solution. Pyxis
has developed utilities for data migration to this system. The solution is on
a .Net platform, and will operate on the Windows operating system.
The database employed is Oracle 9i.
Pyxis has already conducted a training programme for the users at UTI, and
their personnel will be present at their premises, providing on-site support,
for a further period of three months.
According to R.V.S. Sridhar, VP - Treasury, UTI Bank, The system is user
friendly, and the software offers good portfolio management features and
pricing capabilities required to meet the increasingly complex requirements
of customer business.
The process of implementation started in June 2006, and UTI will go live
with the solution by mid-October, said Sunil Nikhar co-founder, &
President, Pyxis Systems.
Pyxis will offer full implementation, customization and maintenance support
services for the solution. It is a very complex system, and it took Pyxis 18
months to develop it, added Nikhar.
UTI Bank is the first customer for Pune based Pyxis and the company is into
talks with some other large private banks for implementation of
Axis Bank eShop NetBuy is developed by Axis Bank and is used by 2 users
of Software Informer. The most popular version of this product among our
users is 1.0. The product will soon be reviewed by our informers.
Axis bank testing new mobile payment method
Axis Bank is in advanced stages of beta testing a new method of using
mobile phones to make payments. The service is expected to be fully
launched in just three months. A pilot study involving 500 customers of
Axis Bank is currently being conducted at various locations. If this mobile
payment method is implemented, users can swipe their mobile phone and
conduct various transactions, which were earlier possible using the credit
Atom Technologies, a subsidiary of the BSE-listed Financial Technologies
(India) Ltd (FTIL), which runs the Multi Commodity Exchange of India has
innovated a technology, which will enable mobile payments. Atom card- a
product developed by the company and the accompanying software can
embed a user's credit card data, over-the air like SMS into his mobile phone.
A 2-D bar code will store this credit card detail, which will be unreadable for
the user and will keep the credit card details safe even when the mobile
phone is stolen or lost. Whenever, the mobile phone user has to make a
payment he will have to provide his PIN details. After embedding the credit
card details into the mobile phone, the instrument can be used in place of
Purchases can be made at a merchant establishment, which has the requisite
software to implement the transaction. The company has called this swiping
model as 'optical payment' and has received a patent in US for this payment
mode. A simple webcam is required to read the 2-D bar code and can be
implemented at merchant establishments at a very low cost.
The software required to implement mobile transactions will be provided
free of cost to merchants, banks and customers by Atom. However, this
technology will be available for JAVA enabled phones at present. Many
other companies like Bharti Airtel, Reliance Communications and C-Sam
were also looking at offering mobile commerce solutions, but the Reserve
Bank of India (RBI) is yet to give its clearance for a mobile wallet service in
• Electronic Clearing Service (ECS Credit)
ECS Credit is an electronic clearing system that facilitates paperless
transaction through an offline system. Axis Bank facilitates ECS
Credit at all ECS designated locations. We accept the electronic file
and arrange obtention of settlement date (date of credit to benefiary
account) from RBI/SBI/Local Clearing House as the case may be. The
funds gets debited from a centralized account and credit is accorded to
the respective beneficiaries as per settlement cycle. A detailed MIS
about the transactions is provided to the customer.
To establish an Electronic Funds Transfer System to facilitate an
efficient, secure, economical, reliable and expeditious system of funds
transfer and clearing in the banking sector throughout India. The
customer willing to avail the NEFT facility offered by us shall submit
an "NEFT Application Form" authorising the sending bank to debit
the sender's account and transfer funds to the beneficiary specified in
the NEFT Application Form. The Beneficiary's account will be
credited on the same day by crediting the specified account of the
beneficiary or otherwise placing funds at the disposal of the
• Real Time Gross Settement (RTGS)
RTGS System is a payment settlement system that minimises the
credit risk in the prevalent cheque clearing system. Under RTGS the
funds are settled on a near real time basis across Banks in different
locations. Bank offers this immediate electronic fund transfer facility
to RTGS enabled bank branches across through the country its
designated RTGS enabled locations.
ORGANISATION TRANSACTION PROCESSING
Team Inertia The way people do business has been changed significantly
with the advent of the Internet Revolution. Today customers have an option
to choose from a plethora of options while shopping for that favourite item.
Web Commerce or Ecommerce has witnessed a significant increase in
revenue year on year. You can now integrate this option to your website in
the various Secured Payment Gateway Options we have to offer.
Technologies are the authorized reseller for Axis Bank Payment Gateway
Services in the state.
EBS (E-Billing Solutions) is the Merchant Account providing company
partnered with Axis Bank that visualizes you how to become more
competitive and help you to make the changes to your online payment
processing for risk free business.
EBS "Payment Gateway" is specifically designed to accommodate the
increasing demand by e-commerce companies for sophisticated payment
solutions to tap the enormous opportunities for global Internet
transactions. The system also includes several exciting new technologies
that enable e-commerce businesses to make the things more customized and
backend more user friendly with advanced features and technical know-how.
How It Works.
Step 1: Customer select and adds item in the shopping cart And places the order on your
Step 2: Customer selects to pay via credit card .
Step 3: Customer is redirected through EBS Payment Gateway to Transaction Processing
Step 4: Customer enters credit card details on Secured Payment page.
Step 5: Credit card information is transmitted securely to the corresponding bank for
Step 6: Corresponding bank sends appropriate information to the transaction Processing
Step 7: The result is forwarded to EBS (via the Transaction Processing Bank).
Step 8: Customer receives a confirmation and is redirected to your (merchant) website.
EBS has taken tremendous steps to secure your transactions from fraud, data
piracy and hacking. Some of the steps taken are as follows
An automated risk management system which triggers for all
transactions and flags the transaction for risk involved.
High Risk Transactions are manually investigated by our intelligence
team and Risk control unit at your customers and their issuing banks
Verisign 128 bit SSL encrypted.
Hacker safe certification.
PCI Audited servers.
Robust secured highly strategic data servers and network design for
sustaining heavy traffic transaction and data load.
• Extensive Network
Axis Bank has its own branches in various locations. Above this our
arrangement with reputed correspondent banks covering more than
900 locations ensures that most of your cheques are covered under our
network and the realisation status can be known at the earliest.
• Lower Interest Costs & Improved Liquidity
A dedicated HUB ensures that you receive funds in your designated
account within transit time thereby reducing interest costs and
improving your liquidity position.
• Centralised Service Desk
A dedicated service desk has been started at our Centralised
Collection and Payment HUB (CCPH) to ensure that your queries are
resolved quickly and efficiently. The Customers can contact CCPH
regarding any query about the MIS or the process flow.
• Web CMS
Web CMS provides you with all the information at a click. Detailed
MIS like location wise collection and return, product-wise pooling,
pooling in pipeline (due credit report) etc. can be viewed and
downloaded from web interface through internet.
• Comprehensive MIS
We provide comprehensive MIS reports like daily report, transaction
report future credits reports and cheque returned unpaid report. On the
payments side we provide daily paid - unpaid status for the demand
drafts, cheques or warrants issued by your Organisation.
• Mobile Alert Service
The CMS clients availing our collection products now have the
facility to subscribe to Mobile Alert Service for receiving alerts on
registered mobile phone numbers instantly after the funds are pooled.
To avail this facility, please visit nearest CMS designated branch or
log on to our Web CMS to download the form online and send it to
our branch where your account is maintained.