Comparative Study of IDBI and AXIS Bank

1. A
Project Report on Company analysis
For
INDUSTRIAL DEVELOPMENT BANK OF INDIA &
AXIS BANK.
In the partial fulfillment of subject - Enterprise analysis
(Desk Research)-115 Semester-I
Of
Master of Business administration
SUBMITTED BY
Mr. Sany Kishor Ambilwade
UNDER THE GUIDANCE OF
PROF. S.B.Shaikh
SUBMITTED
Savitri bai phule Pune University
Global Institute of Management
132/1 Nasik –Pune Highway, Velhale,
Sangamner – 422605.
(Batch 2015-17)

2. DECLARATION
We, the undersigned, hereby declare that the Project Report of Enterprise analysis
(Desk Research)-115 Semester-I for “INDUSTRIAL DEVELOPMENT BANK OF INDIA &
AXIS BANK. submitted by us to University Of Pune, in partial fulfillment of the
requirements for the award of degree of Master of Business Administration (M.B.A.) under
the guidance of Prof. S. B. SHAIKH. Is our original work and the conclusions drawn there in
are based on the material collected by myself.
Place: Sangamner Signature of Students
Date: Mr. Sany Kishor Ambilwade

3. Acknowledgement
It is a matter of great satisfaction and pleasure to present this report on “Enterprise
analysis. I take this opportunity to owe my thanks to all those involved in my training.
This project report could not have been completed without the guidance of Prof.
SHAIKH S.B. I express my gratitude towards Dr. A. A. DESHMUKH Sir (Director, Global
Institute of Management), his timely help & encouragement helped me to complete this
project successfully. Without which the project work could not have been completed.
Research Students
Mr. Sany Ambilwade

4. College Certificate
This is to certify that the project on Enterprise Analysis for MBA-CBCS 2013 pattern
Semester –I For the academic Year 2015-16 was submitted in the partial fulfillment of
requirement of Master’s Degree in Business Administration Programme of University of
Pune, and embodies the bonafide work carried out by
Mr. Sany Ambilwade
We find the work complete, comprehensive and of significantly high standard to warrant its
presentation for the purpose of MBA examination.
Project Guide Director
(Prof.S. B. SHAIKH) (Dr. A.A. DESHMUKH)
External

5. INDEX- COMPANY 1
S.N. Topic Page No.
1 Introduction of Company
Introduction
History
Vision & Mission
Awards , Achievements & Certifications
2 ResearchMethodology
3 Product Profile
4 Competitors & Customers
5 Financial Data
References

6. INDEX- COMPANY 2
S.N. Topic Page No.
1 Introduction of Company
Introduction
History
Vision & Mission
Awards , Achievements & Certifications
2 ResearchMethodology
3 Product Profile
4 Competitors & Customers
5 Financial Data
References

7. COMPANY -1
INDUSTRIAL DEVELOPMENT
BANK OF INDIA

8. Chapter No.1
1.1 Introduction of Company
1.2 History
1.3 Vision & Mission
1.4 Awards, Achievements & Certificate
1.5 SWOT Analysis

9. 1.1 Introduction of Company
Name : IDBI BANK
Type : Government own bank
Founded on : July 1964
Slogan : “bank aisa dost jaisa”
Product : Corporate banking,
: Financial banking.
Founded by : M.S.Raghvan (chairman & M.D.)
NSE Code : IDBI
BSE Code : IDBI 500116A
Web site : www.idbi.com

10. HISTORY
IDBI is an Indian government owned financial service company, formally known as (IDBI)
Headquarter in Mumbai. It was established in 1964 by an act of parliament to provide credit
and other financial facility for the development of the fledging Indian Industry. IDBI is on of
the leading government bank in India.
It is currently 10th largest development bank in the world in terms of reach, with 3000
ATMs,1746 branches
IDBI Bank is on a par with nationalized banks and the SBI group as far as government
ownership is concerned. It is one of the 27 commercial bank owned by the government of
India

11. VISION
To be the most Preferred and trusted bank enhancing value for all stakeholder.

12. MISSION
Delighting customer with our excellent services and comprehensive suite of best in class
financial solutions touching more people lives with our expanding retail footprint while
maintaining our excellence on corporate and infrastructure financing .
Becoming the role model for corporate governance.

13. AWARD AND ACHIEVEMENT
IN 2011 it received “BANKING TECHNOLOGY AWARD” for best use of business
intelligence and best risk management from Indian bank association.
It receives the “OVER ALL BEST BANK and “BEST PUBLIC SECTOR BANK”
award in dun and backstreet banking award in 2011
IDBI bank was ranked 1197 in the forbs global 2000 in may 2013
IDBI AWARDED ISO 27001:2013 for security management system.
IDBI AWARDED ISO 9001:2008 for providing consistent standard of quality services.

14. BOARD OF DIRECTORS

15. SWOT ANALYSIS
 Strengths of IDBI Bank
1. The banks major strength is it involves latest cutting edge technologies to support its core
banking operations
2. The bank has network of 943 branches and 1529 ATMs
3. The total turnover of the bank is 3,37,584 cores in the last FY 2010-11, and earned a net
profit of Rs.1650 cr.
4. The bank has grown at a rate of 60% compared to previous year
5. IDBI has the first mover advantage in opening ‘G-sec portal’. This is a platform for the
retail investors to invest in government securities
6. IDBI is one of the largest commercial banks in India which focuses on industrial
infrastructure and development
7. IDBI’s product portfolio includes 14 broad
classifications, and there are some sub categories in each. The bank has customized solution
faculties for its industrial clients
8. The location of its head quarters in Mumbai fosters the growth of the bank
9. IDBI’s subsidiaries are into capital market services, IT services, facet management and
life insurance

16. Weaknesses of IDBI bank
1. IDBI has less penetration into the rural market
2. IDBI has very less number of branches and ATM network compared to other major
players
3. It concentrates mainly on commercial banking services whereas the individual banking
services is where the main revenue lies.b
4. The customer help desk is not performing efficiently and there are many unresolved issues
of customers
5. The bank has lots of consumer complaints with respect to servicing charges
6. The bank lacks in promotional activities

17. Opportunities for IDBI bank
Scope for bagging government schemes are high as IDBI belongs to public sector
Global opportunities for IDBI are the rise as the management is keenly focusing on global
expansion in next few years
They have a good number of financial expertise to face the emerging industrial and economic
growth in India
It is the only bank in public sector which has enabled social media plug-in in its website. This
has increased the brand awareness and better reach to its customers
1. The bank has good opportunities in semi-urban and Tire II cities areas as the industrial
growth is taking very rapidly
Threats for IDBI Bank
1. IDBI faces tough competition in terms of new market development due to competition
from both government and private banks
2. FDI in Indian banking has been opened up to 74% by the RBI
3. In private banking HDFC, ICICI and in public sector SBI, Punjab National Bank, Andhra
bank and Allahabad bank are the major competitors
4. The bank has to focus on improving the customer satisfaction in order to sustain the loyal
customers
5. Recent scams and fraudulent activities of bank have gained mistrust from its customers
and investors

18. Threats for IDBI Bank
IDBI faces tough competition in terms of new market development due to competition from
both government and private banks
FDI in Indian banking has been opened up to 74% by the RBI
In private banking HDFC, ICICI and in public sector SBI, Punjab National Bank, Andhra
bank and Allahabad bank are the major competitors
The bank has to focus on improving the customer satisfaction in order to sustain the loyal
customers
Recent scams and fraudulent activities of bank have gained mistrust from its customers and
investors

19. Weaknesses of IDBI bank
IDBI has less penetration into the rural market
IDBI has very less number of branches and ATM network compared to other major
players
It concentrates mainly on commercial banking services whereas the individual banking
services is where the main revenue lies.
The customer help desk is not performing efficiently and there are many unresolved issues
of customers
The bank has lots of consumer complaints with respect to servicing charges
The bank lacks in promotional activities

20. Chapter No .2
Research
Methodology

21. RESEARCH METHODOLOGY
Tools and techniques for Data Collection:
1. Secondary Data: - Secondary data was collected from books, articles, Wikipedia and
also website of bank and previous research papers that had been conducted by the
company representatives and officials.
Tools and techniques of Analysis:
Simple statistical tools and techniques like average, ratios, pie charts, tables and graphs in
addition to factor analysis method are used to analyze the data

22. Chapter No .3
Product Profile

23. Product line
 24hour banking- IDBI INTERNET BANKING:-
i) A/c information.
ii) De-mate a/c information
iii)online instruction and request
iv)online payment services
v)bill payment
 Lone services
 Fixed deposits and lockers
 Preferred banking
 Insurance services
 Card services
 Flexi current account
 Trust ship
 Pradhanmantri social security scheme
 Sukanya samriddhi account

24. Chapter No .4
Competitors &
Customers

26. These are the Leading competitor of IDBI BANK

27. Customer segment
1) Age wise
i) kids – insurance policies
ii) senior citizens –pension policies
2) Level of income
i) lower income – saving a/c
ii) high income – fixed deposit
3) Employees
i) share holders – Dmat a/c
ii) collection agents- current a/c

28. Chapter No. 5
Financial Data
As on 31 March 2014, Government of India held 76.72% shares in IDBI Bank. Over 4 lakh public
shareholders owned 8.75% of its shares. Insurance companies held approx. 12.32% of the shares
while remaining 7.21% shares were held by others

29. References
 www.IDBI.Com
 studyMode.com
 Wikipedia.com
 Www.Money control.com
 Www.Bse.com
 Book of research methodology

30. COMPANY -2
AXIS
BANK

31. INDEX- COMPANY 2
S.N. Topic Page No.
1 Introduction of Company
Introduction
History
Vision & Mission
Awards , Achievements & Certifications
SWOT ANALYSIS
2 ResearchMethodology
3 Product Profile
4 Competitors & Customers
5 Financial Data
References

32. Chapter No.1
1. Introduction of Company
2. History
3. Vision & Mission
4. Awards, Achievements & Certificate
5. SWOT Analysis

33. INTRODUCTION
NAME. : AXIS BANK
TYPE. : Private bank
FOUNDED BY. : Shikha sharma chairman
(CEO and MD)
FOUNDED IN :1990(As UTI Bank)
SLOGAN : BADHATI KA NAM ZINDAGI
PRODUCT : Banking and financial
: services
NSE CODE. : AXISBANK
BSE CODE. : 532215
WEBSITE. : www.axisbank.com

34. History
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai in
December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad by
Dr.Manmohan Singh, then Finance Minister of India. UTI Bank began its operations in 1994,
after theGovernment of India allowed new private banks to be established.
The Bank was promoted in 1993 jointly by the Administrator of the Unit Trust of
India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation,
National Insurance Company, The New India Assurance Company, The Oriental Insurance
Corporation and United India Insurance Company.

35. VISION
To be one of the The Bank was promoted in 1993 jointly by the Administrator of the Unit
Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance
Corporation, National Insurance Company, The New India Assurance Company, The Oriental
Insurance Corporation and United India Insurance Company. respected corporate foundations
in the country excelling in project management and contributing significantly to create factors
responsible for sustainable livelihoods.

36. MISSION
ABF's mission is based on the classical theory of development wherein sustainable livelihood
is defined as the livelihood which can cope with and recover from stress and shocks,
maintains or enhances capabilities and assets and create conditions that are suitable for better
education, health and sanitation seeking behavior and sustainable livelihood for the next
generation.
It aims to support programs, projects and activities that focus on creating conditions suitable
for sustainable livelihood. For this endeavor, ABF partners with civil society organizations
and provide them with financial, technical and capacity development support to make positive
contributions in the lives of the underprivileged and vulnerable communities

37. AWARD'S AND ACHIEVEMENT
1. Mobile Banking Initiative of the Year - India, Asian Banking and Finance (ABF) Retail
Banking Awards 2015
2. Advertising Campaign of the Year - India, Asian Banking and Finance (ABF) Retail
Banking Awards 2015
3. Axis bank has been awarded the title of Superbrand 2014-2015, by Superbrands
4. No. 1 Promising Banking Brand of 2015, ET Best Brands 2015
5. Fastest Growing Large Bank- BW Businessworld Magna Awards 2014
6. Best Corporate Payment Project- The Asian Banker Technology Implementation Award
2015
7. Best HR System Project -The Asian Banker Technology Implementation Award 2015
8. Axis Bank felicitated at CNBC Awaaz Act for Good Governance Summit 2015
9. Axis Bank wins 'Bank of the Year in India' for the year 2014- Banker Magazine, Financial
Times
10. Best Bank for Asian Currencies-Euromoney FX Survey 2014
11. Axis Bank featured for the fourth time in Asia's Fab50 companies for 2014 by Forbes

39. SWOT ANALYSIS
SWOT analysis of Axis Bank
Here is a SWOT of Axis Bank – One of the fastest growing banks in India.
Strengths
 Axis bank has been given the rating as one of top three positions in terms of fastest
growth in private sector banks
 Financial express has given number two position and BT-KPMG has rated AXIS bank
as the best bank with some 26 parameters
 The bank has a network of 1,493 domestic branches and 8,324 ATMs
 The bank has its presence in 971 cities and towns
 The banks financial positions grows at a rate of 20% every year which is a major
positive sign for any bank
 The company’s net profit is Q3FY12 is 1,102.27 which has a increase of 25.19%
growth compared to 2011

40. Weaknesses
 Gaps – Majorly they concentrated in corporate, wholesale banking, treasury services,
retail banking
 Foreign branches constitute only 8% of total assets
 Very recently the bank started focusing its attention towards personal banking and
rural areas
 The share rates of AXIS bank is constantly fluctuating in higher margins which makes
investors in an uncomfortable position most of the time
 There are lot of financial product gaps in terms of performance as well as reaching out
to the customer
 There are many fraudulent activities involved in credit cards as the banks process
credit card approval even without verification of original documents
 Their financial consultants are not wise enough to guide the customers towards right
investments
 Customer service has to improve a lot in order to be in race with other major players

41. Opportunities
 Acquisitions to fill gap
 In 2009, Alliance with Motilal Oswal for online trading for 10 million customers
 In 2010, acquired Enam Securities Pvt Ltd – broking and investment banking
 In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business
 No. of e-transactions increased from 0.7 million to around 2 million
 Geographical expansion to rural market – 80% of them have no access to formal
lending
 46% use informal lending channels
 24% unregulated money lenders
 Now number of branches increased to 1493 from 339.
 Last quarter there were 48 new branches opened across the Nation
 Since it’s a new age banking there are lot of opportunities to have the advance
technicalities in banking solutions compared to existing major players
 The assets in their international operations are growing at a very faster pace with a
growth rate of 9%.
 The concept of ETM (Everywhere teller machine) by AXIS Bank had a good response
in terms of attracting new customers in personal banking segment

42. Threats
 Since 2009, RBI has increased CRR by 100 basis points
 Increased repo rate reverse repo rate by 50 points – 11 times of late
 Increasing popularity of QIPs due to ease in fund raising
 RBI allowed foreign banks to invest up to 74% in Indian banking
 Government schemes are most often serviced only by govern banks like SBI ,Indian
Banks, Punjab National Bank etc
 ICICI and HDFC are imposing strong threats in terms of their expansion in customer
base by their aggressive marketing strategies

43. Chapter No .2
Research
Methodology

44. RESEARCH METHODOLOGY
Tools and techniques for Data Collection:
2. Secondary Data: - Secondary data was collected from books, articles, Wikipedia and
also website of bank and previous research papers that had been conducted by the
company representatives and officials.
Tools and techniques of Analysis:
Simple statistical tools and techniques like average, ratios, pie charts, tables and graphs in
addition to factor analysis method are used to analyze the data

45. Chapter No .3
Product Profile

46. Card To Card Money Transfer, Currency Exchange, Demat Services, Direct Tax Payment,
Electronic Clearing Service, Mobile Phone Banking, Multi City Cheque Facility, Net
Banking, Pension Disbursement, Personal Tax Assistance And Investment, Portfolio
Management, Retail Sale Of Gold Coin, Travellers Cheque, Wealth Management Service
Bill Payment Services, Credit Card
Facility, Current Account, Debit Card Facility, ECS Facility, Internet Banking, Loan Facility,
Locker
Facility, Mobile Banking, Phone Banking, Savings Account
Commercial Vehicle Loan, Consumer Goods Loan, Educational Loan, Four Wheeler Loan,
Home Improvement Loan, Housing Loan, Loan Against Deposit, Loan Against Gold, Loan
Against Property, Loan Against Share, Loan Against Vehicle, Personal Loan, Two Wheeler
Loan

47. Chapter No .4
Competitors &
Customers

49. Revenue 340 billion (US$5.1 billion) (2012)
Operating income 94 billion (US$1.4 billion) (2012)
Net income
52 billion (US$790 million) (2012)
Total assets 3.4 trillion (US$51 billion) (2012)

50. CONSUMER SEGMENT
 Age wise
kids – insurance policies
senior citizens –pension policies
 Level of income
. lower income – saving a/c
high income – fixed deposit
 Employees
share holders – Dmat a/c
. collection agents- current a/c

51. Financial data

52. Revenue
₹340 billion (US$5.1billion)
(2012)[2][3]
Operating income
₹94 billion(US$1.4billion)
(2012)[2][3]
Net income
₹52 billion(US$790 million)
(2012)[2][3]
Total assets ₹3.4 trillion (US$51 billion)
(2012)[2][3]
Number of
employees
42,420 (on31-March-2014)

53. References
 www.axixbank.Com
 studyMode.com
 Wikipedia.com
 Www.Money control.com
 Www.Bse.com
 Book of research methodology