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Axis bank (jamalian) ppt


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Study on Axis Bank helps in conducting a seminar on such private banks in colleges and in other financial areas of market.....

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Axis bank (jamalian) ppt

  2. 3. STUDY ON AXIS BANK Presented by : L. Irshath Ahamed Sheriff, M.B.A., M.Phil., Jamal Institute of Management (JIM), Jamal Mohamed College, Trichy.
  3. 4. Emergence of Private Banks <ul><li>Private banking in India was practiced since the beginning of banking system in India which is controlled by Reserve Bank of India since 1935 . </li></ul><ul><li>The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited. </li></ul><ul><li>It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995. </li></ul>
  4. 5. List of Private Banks in India <ul><li>Bank of Punjab </li></ul><ul><li>Bank of Rajasthan </li></ul><ul><li>Catholic Syrian Bank </li></ul><ul><li>Centurion Bank </li></ul><ul><li>City Union Bank </li></ul><ul><li>Dhanalakshmi Bank </li></ul><ul><li>Development Credit Bank </li></ul><ul><li>Federal Bank </li></ul><ul><li>HDFC Bank </li></ul><ul><li>ICICI Bank </li></ul><ul><li>IDBI Bank </li></ul><ul><li>IndusInd Bank </li></ul><ul><li>ING Vysya Bank </li></ul><ul><li>Jammu & Kashmir Bank </li></ul><ul><li>Karnataka Bank </li></ul><ul><li>Karur Vysya Bank </li></ul><ul><li>Laxmi Vilas Bank </li></ul><ul><li>South Indian Bank </li></ul><ul><li>United Western Bank </li></ul><ul><li>AXIS Bank </li></ul>
  5. 6. UTI BANK
  6. 7. Introduction <ul><ul><li>Axis Bank (Formerly known as UTI) was one of the few private banks to have began operations in 1994 </li></ul></ul><ul><ul><li>The Bank was promoted jointly by the Administrator of the specified undertaking of the Unit Trust of India (UTI) </li></ul></ul><ul><ul><ul><li>Life Insurance Corporation of India (LIC). </li></ul></ul></ul><ul><ul><ul><li>General Insurance Corporation Ltd (GIC). </li></ul></ul></ul><ul><ul><ul><li>National Insurance Company Ltd. </li></ul></ul></ul><ul><ul><ul><li>The New India Assurance Company. </li></ul></ul></ul><ul><ul><ul><li>The Oriental Insurance Corporation. </li></ul></ul></ul><ul><ul><ul><li>United Insurance Company Ltd. </li></ul></ul></ul>
  7. 8. Journey From UTI to AXIS
  8. 9. 1994-1997 <ul><li>Incorporated as UTI Bank, headquartered in Mumbai. </li></ul><ul><li>First Branch inaugurated at Ahmedabad. </li></ul><ul><li>Completes first profitable year in operation in 1995. </li></ul><ul><li>Deposit crosses Rs.10bn mark in 1996. </li></ul>
  9. 10. 1998-2000 <ul><li>Successfully completes its IPO in 1998 and gets itself listed on NSE and BSE </li></ul><ul><li>Cash management services as well as credit card launched </li></ul><ul><li>Profit crosses Rs.500m in 2000 </li></ul><ul><li>Launches Internet banking module, iConnect retail loans introduced </li></ul><ul><li>Financial advisory services and e-commerce introduced </li></ul><ul><li>Second largest ATM network in the country with 200 ATMs </li></ul>
  10. 11. 2001-2005 <ul><li>Private placement of 26% stake to CDC Capital Partners </li></ul><ul><li>Deposit crosses Rs.100bn mark in 2001, advances crosses Rs.50bn </li></ul><ul><li>First commercial bank to open an ATM at a post office </li></ul><ul><li>Crosses the 1,000 ATM mark in 2003 </li></ul><ul><li>Gets listed on the London Stock Exchange, raises $239.3m </li></ul>
  11. 12. 2006-2008 <ul><li>Opens its first international branch in Singapore </li></ul><ul><li>Opens Representative Office in Shanghai </li></ul><ul><li>Crosses the 2,000 ATM mark in 2006 </li></ul><ul><li>Opens a Full Licence Bank Branch in Hong Kong </li></ul><ul><li>Re-brands itself as Axis Bank </li></ul><ul><li>Mumbai, Jul 30 2007 : UTI Bank on Monday rechristened itself as Axis Bank. </li></ul>
  13. 14. THERE ARE 3 MAIN REASONS <ul><li>They had to give up the UTI name after using it for 13 years as we were not prepared to accept terms and conditions (including royalty) from UTI AMC </li></ul><ul><li>The decision to rebrand itself was taken by the bank as it was allowed to use the 'UTI' brand name for free till January 31, 2008, beyond which it had to pay royalty for using the name. </li></ul>
  14. 15. Rebranding Exercise <ul><li>&quot;The name was taken into effect consequent to the approval of shareholders, Reserve Bank of India and the central government (Registrar of Companies). </li></ul><ul><li>The UTI brand is owned by UTI Asset Management Company </li></ul><ul><li>The bank would change logo and colour of logo the bank is likely to spend around Rs 50 crore in the re-branding exercise. </li></ul><ul><li>The bank acquired the services of Ogilvy & Mather (O&M) to design and implement the rebranding campaign </li></ul>
  15. 16. The new name AXIS <ul><li>The new name was chosen considering the bank’s pan-Indian as well as international presence. </li></ul><ul><li>The first time that a bank has dropped an established brand for an unknown name. </li></ul><ul><li>  The name Axis is chosen as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal. </li></ul>
  16. 17. The New Logo <ul><li>LOGO </li></ul>The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is moving on from a position of strength.
  17. 18. ABOUT AXIS
  18. 19. Mission <ul><li>Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele. </li></ul><ul><li>Continuous technology up gradation while maintaining human values. </li></ul><ul><li>Progressive globalization and achieving international standards. </li></ul><ul><li>Efficiency and effectiveness built on ethical practices. </li></ul>
  19. 20. Core Values of Axis <ul><li>Customer Satisfaction through </li></ul><ul><ul><li>Providing quality service effectively and efficiently </li></ul></ul><ul><ul><li>&quot;Smile, it enhances your face value&quot; is a service quality stressed on </li></ul></ul><ul><ul><li>Periodic Customer Service Audits </li></ul></ul><ul><li>Maximizations of Stakeholder value </li></ul><ul><li>Success through Teamwork, Integrity and People </li></ul>
  20. 21. <ul><li>The banks business is divided into four segments: </li></ul><ul><li>Retail, corporate, treasury and merchant banking. </li></ul><ul><li>Apart from this the bank is also into insurance, investment banking, mortgage financing, credit cards, and depository services amongst others. </li></ul><ul><li>it is also registered on the following exchanges: </li></ul><ul><ul><ul><li>OTCEI </li></ul></ul></ul><ul><ul><ul><li>BSE </li></ul></ul></ul><ul><ul><ul><li>NSE </li></ul></ul></ul><ul><ul><ul><li>London stock exchange </li></ul></ul></ul>
  21. 22. Services <ul><ul><li>Retail banking </li></ul></ul><ul><ul><ul><li>Deposits schemes </li></ul></ul></ul><ul><ul><ul><li>Loans and advances </li></ul></ul></ul><ul><ul><ul><ul><li>Personal loans </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Housing loans </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Cards </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Consumer durables </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Auto loans </li></ul></ul></ul></ul>
  22. 23. <ul><ul><li>Personal banking </li></ul></ul><ul><ul><ul><li>Accounts </li></ul></ul></ul><ul><ul><ul><ul><li>Term deposit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Fixed deposit </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Recurring deposit </li></ul></ul></ul></ul><ul><ul><ul><li>Cards </li></ul></ul></ul><ul><ul><ul><ul><li>Different variant like: Gold plus card, Gold card, Silver & silver plus cards. </li></ul></ul></ul></ul>
  23. 24. <ul><ul><li>Corporate banking </li></ul></ul><ul><ul><ul><li>Accounts </li></ul></ul></ul><ul><ul><ul><ul><li>Normal Current Account </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Trust/NGO Savings Account </li></ul></ul></ul></ul><ul><ul><ul><li>Services </li></ul></ul></ul><ul><ul><ul><ul><li>Private Equity, Mergers & Acquisitions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Advisory Services </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Capital Market Funding </li></ul></ul></ul></ul><ul><ul><ul><ul><li>E-Broking </li></ul></ul></ul></ul>
  24. 25. Recent Developments <ul><li>Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009. </li></ul><ul><li>As on the year ended March 31, 2009 the Bank had a net profit of Rs 1,815.36crores </li></ul><ul><li>The bank now has 835 branches including extension networks across 30 States and 4 Union Territories. </li></ul>
  25. 26. Recent Developments <ul><li>The bank also has overseas offices in Singapore, China, Hong Kong and Dubai. </li></ul><ul><li>Crosses the 3,723 ATM mark in 2009 </li></ul><ul><li>Launches Platinum Credit Card, India's first EMV chip based card </li></ul><ul><li>Axis Bank is now trading at Rs 911.85 (17 th sep). </li></ul>
  26. 28. 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%
  27. 29. 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
  28. 38. Comparative Analysis As on Mar 09. Rs in crs Particulars Axis HDFC PNB HSBC Deposits 117,374.11 142,811.58 209,760.50 49,970.27 Advances 81,556.77 98,883.05 154,702.99 27,588.68 Share Capital 359.01 425.38 315.30 4,499.16 Net worth 10,214.80 15,052.73 14,653.63 11,214.3 Book Value 284.53 344.44 416.74 - Interest earned 10,835.49 16,332.26 19,326.16 6,326.9 Interest expenditure 7,149.27 8,911.10 12,295.30 2,661 Net profit 1,815.36 2,244.94 3,090.8 12,91.2 Net NPAs 0.35% 1.49% 0.17% 1.42% Total Assets 147,722.06 183,270.78 246,918.62 94,620.3 Return on Assets 1.44% 1.10% 1.15% 1.51%
  29. 39. Axis Bank Marketing Overview
  30. 40. Marketing Objectives <ul><li>Axis Bank want to achieve following marketing objectives by the end of the year 2012. </li></ul><ul><li>To get the market capitalization 500 Crore </li></ul><ul><li>To get the 200 Crore retail investment. </li></ul><ul><li>To get 125 Crore Corporate investments. </li></ul><ul><li>To get the 175 Crore Capital investments. </li></ul>
  32. 42. Features Of Axis Bank <ul><li>Anywhere Banking </li></ul><ul><li>Instant Fund Transfer </li></ul><ul><li>Internet Banking </li></ul><ul><li>At-Par (Multicity) Chequebook </li></ul><ul><li>ATM cum Debit Card </li></ul><ul><li>Mobile Banking </li></ul><ul><li>Phone Banking </li></ul>
  33. 43. Axis Bank H. R. Overview
  34. 44. OBJECTIVES OF HRD IN AXIS BANK <ul><li>Initiate & institutionalize globally competitive HR practices. </li></ul><ul><li>Put in place relevant HRD strategies and use modern methodologies. </li></ul><ul><li>Create a performance-driven culture and an exciting workplace. </li></ul><ul><li>Create a pool of entrepreneurial managers and business leaders. </li></ul><ul><li>Create a learning organization for employees . </li></ul>
  35. 45. FUNCTIONS OF HRD <ul><li>Ultimate aim of the human resources function is to build and manage a motivated pool of professionals delivering optimum value to customers. </li></ul><ul><li>Major platforms on which the success of the bank's corporate strategy rests is bringing on board the requisite skills. </li></ul><ul><li>Young bank with an average age of 29 years and a talent pool comprising a mix of new recruits and experienced officers. </li></ul>
  36. 46. CONTD…… <ul><li>Training-Scheduling. </li></ul><ul><li>Performance Management. </li></ul><ul><li>Compensation/Reward Administration. </li></ul><ul><li>Grievance Handling. </li></ul>
  39. 49. Axis Bank Information System Overview
  40. 50. INFORMATION SYSTEM <ul><li>Implemented a new derivatives system-- Summit FT with the help of global financial applications provider – Misys. </li></ul><ul><li>Provides ability to structure derivative products in real time and give a single view of the entire transaction to the customer </li></ul><ul><li>The bank hopes to leverage the ability to rationalize its currently dispersed functions to provide a single view of every transaction to customers. </li></ul>
  41. 51. CONTD….. <ul><li>Apart from creating a new derivatives product, it also helps from a regulatory compliance standpoint. </li></ul><ul><li>RBI favors transparent online systems that can track every transaction and report it exactly as it is. </li></ul><ul><li>An automated system removes this anomaly and improve compliance to a great extent. </li></ul>
  42. 52. HOW IT WORKS?
  43. 53. Conclusion !!!! <ul><li>AXIS bank has differentiated itself very well on the basis of high level service and product quality. </li></ul><ul><li>They have successfully implemented the change and due to this their market share has increased only despite of tough competition prevails. </li></ul>
  44. 54. Thank you