Summer Internship 2011 PGDM 2010-12 Summer Internship Project Report on Product and Services Offered By Axis Bank

Undertaken at Axis Bank

Prepared By Sumit Sharma !Ro"" no P#$%&&'&()

*ompany #uide %rs, -anak #hosh choudhary Sr, %ana/er

+acu"ty #uide %r, .eharika

$0*1ARA2IO.

I, hereby, declare that the information presented here is correct to the best of my kno led!e and the analysis has been done as per the norms and !uidelines prescribed by the institute" #he re$uired concepts and methodolo!y ha%e been utili&ed to analy&e the primary and secondary data collected to reach the conclusion of the report" #he ork presented here is not duplicated from any other source and also not submitted earlier for any other de!ree'diploma to any uni%ersity"

Sumit Sharma

A*-.O310$#0%0.2

I e(press my sincere !ratitude to my industry !uide Mr" )anak Ghosh for her able !uidance, continuous support and cooperation throu!hout my pro*ect, ithout hich the present ork ould not ha%e been possible" #his pro*ect is an attempt to share my e(perience + learnin! in a short span of time ith ,(is -ank" I ould also like to thank the entire team of ,(is -ank for the constant support and help in the successful completion of my pro*ect" ,lso, I am thankful to my faculty !uide Mr" .eharika /houdhary of my institute, for his continued !uidance and in%aluable encoura!ement"

Sumit Sharma

2AB10 O+ *O.20.2S

*hapter 1" 2" 3" 3"1 3"1"1 3"2 3"2"1 6" 6"1 6"2 6"3 6"6 6"1 1" 1"1 1"2

2it"e 0(ecuti%e Summary Pro*ect Introduction Industry Profile /ompany Profile Products and Ser%ices of ,(is -ank Priority -ankin! Products + Ser%ices of Priority -ankin! 7esearch Methodolo!y 7esearch 8b*ecti%e9s: 7esearch Desi!n Sample Desi!n Scope of the Study <imitations Data /ollection Primary Data Secondary Data

Pa/e .o, 1 2 4-5 10-21 22-22 22-25 30-12 14 14 1; 15 20 21 22 22 22

2" 4" ;" 5" 10"

=indin!s + ,nalysis 7ecommendations -iblio!raphy >uestionnaire Synopsis of #he Pro*ect

23-43 46-41 41 42-4; 4;-45

*4AP20R '& 050*U2I60 SU%%AR7

,(is -ank <td", formerly ?#I -ank <imited, operates in four se!ments@ #reasury, /orporate'Aholesale -ankin!, 7etail -ankin! and 8ther -ankin! -usiness

#he 2reasury se/ment includes in%estments in so%erei!n and corporate debt, e$uity and mutual funds, tradin! operations, deri%ati%e tradin! and forei!n e(chan!e operations on the account and for customers and central fundin!" #he *orporate83ho"esa"e Bankin/ includes corporate relationships not included under 7etail -ankin!, corporate ad%isory ser%ices, placements and syndication, mana!ement of public issue, pro*ect appraisals, capital market related ser%ices and cash mana!ement ser%ices" #he Retai" Bankin/ se/ment constitutes lendin! to indi%idual'small business sub*ect to the orientation, product and !ranularity criterion and also includes lo -%alue indi%idual e(posures not e(ceedin! the threshold limit of 1, 00, 00,000 as defined by 7eser%e -ank of India" It also includes liability products, card ser%ices and Internet bankin! ser%ices" In India, all the retail bankin! se!ments are e(pected to itness a tremendous !ro th o in! to the lo cost of borro in!, chan!in! customer attitudes to ards borro in! and optimism re!ardin! economic !ro th" 7etail lendin! constitutes *ust &9,(:; of the Indian bankin! system" ,ll around the orld retail lendin! has been an established market ho e%er its rise in emer!in! economies like India has been of recent ori!in" If recent statistics on consumer finance are any indication, the last fe years ha%e been trend settin!" #he traditional debt-a%erse, middle-class Indians ho li%ed ithin their thrifty means, ne%er

to %enture beyond their means, seem to ha%e !i%en ay to a ne middle-class that is free from all inhibitions re!ardin! conspicuous consumption" ?nlike its predecessors, the middle-class of today has donned a ne attitudeB it attaches no social-sti!ma in takin! loans for spendin!" ,part from the abo%e, one ma*or ser%ice launched in the bankin! sector, concentratin! on a particular se!ment of its customers is@ PRIORI27 BA.-I.#

*4AP20R '9 PRO<0*2 I.2RO$U*2IO.

,s a part of curriculum the students of PGDM ha%e to under!o Summer Internship Pro!ram 9SIP: herein a student !ets the kno led!e about practical orklife, ho the ork is done in companies, ho to !et ac$uainted ith orkin! conditions and other many such thin!s, etc" #he main aim behind this pro!ram is that students !et some ork e(perience hich ill pro%e helpful hen they face *ob inter%ie s after they complete their studies" #his pro!ram is !enerally pro%ided by a company and it lasts for at least t o months" Students as per their speciali&ation can apply for SIP ith the help of their colle!eCs Placement /ell and !et the opportunity to ork in a company" ,s a mana!ement student I also had to under!o SIP" I !ot the opportunity to complete this pro!ram in ,DIS -,.) <#D" for t o months" ,(is bank is one of the leadin! banks in pri%ate sector in India" =irst of the t o months has been de%oted to trainin!" My trainin! started ith the session on need and importance of bankin! system and then information about products and ser%ices hich are pro%ided by the ,(is bank" =rom time to time I am learnin! some routine ork done in the bank like 7#GS, che$ue clearin!, issuin! loan to the customers, locker facilities, openin! =i(ed Deposits etc" In the second month I ha%e analy&e all the data collected by me and other priority ser%ices pro%ided to the priority customers because I am in the priority department" 2he =ho"esa"e >ankin/ operations consist of the fo""o=in/ transactions 1" 8penin! of ,ccount 2" Issue of /he$ue book 3" International Debit ' /redit /ard 6" Issue of Demand Draft 9DD: 1" .et bankin! 2" 0-mail statement

4" Phone bankin! ;" Insta >uery 5" Insta ,lert 10" Passbook 11" >uarterly ,ccount Statement 12" <oan =acility

*4AP20R '( I.$US2R7 PRO+I10

34A2 IS BA.-?
, bank is a financial institution hose primary acti%ity is to act as a payment a!ent for customers and to borro and lend money" ,n institution here one can place and borro money and take care of financial affairsB #he first modern bank Geor!e:" as founded in Italy in Genoa in 1602, its name as 9-ank of St"

06O1U2IO. O+ BA.-I.# S7S20% I. I.$IA

#he General -ank of India, hich started in 14;2, and -ank of Eindustan, hich started in 1450B both are no defunct" #he oldest bank in e(istence in India is the State -ank of India, hich ori!inated in the -ank of /alcutta in Fune 1;02, hich almost immediately became the -ank of -en!al" #his as one of the three presidency banks, the other t o bein! the -ank of -ombay and the -ank of Madras, all three of hich ere established under charters from the -ritish 0ast India /ompany" =or many years the Presidency banks acted as $uasi-central banks, as did their successors" #he three banks mer!ed in 1521 to form the Imperial -ank of India, hich, upon IndiaGs independence, became the State -ank of India" 0vo"ution of Bankin/ System can >e summari@ed in fo""o=in/ phases '

Phase'&
General -ank 8f India 14;29=irst -ank: 7eser%e -ank 8f India 1531

 #he -ankin! /ompany ,ct 1565 Slo Gro th ,nd Periodic =ailure

Phase'9
.ationali&ation 8f Imperial -ank 8f India ,nd =ormation 8f Sate -ank 8f India91511: .ationali&ation of S-I and Subsidiaries 91520: Insurance co%er e(tended to deposits /reation of credit !uarantee corporation /reation of re!ional rural banks

Phase'(
.e phase of Indian -ankin! System Sector 0ntry of =orei!n -anks Phone -ankin! and .et--ankin! Shelter from e(ternal macroeconomic System become more con%enient and s ift ith the ad%ent of Indian =inancial + -ankin!

%ajor 3or"d 0vents in Bankin/ Industry

Introduction of Paper Money- Bank .otes =oundation of =irst Foint Stock /ompany 9Dutch 0ast India /ompany:&:A9 #he -ank of .orth ,merica =ounded H &BC& 7othschild family founds 0uro ide bankin!- &CAA #he Aall Street /rash of &D9D, 5,000 banks close, ipin! out a third of the money supply in the ?nited States- &D(A'(( #he lar!est bank failure in history, #he Aashin!ton Mutual collapses9AAC

2ypes of Banks

*entra" Bank H 0%ery country has its central bank" 7eser%e -ank of India is the central bank of our country" It does not deal directly ith the public" It accepts deposits from other banks and lends money to them" It is kno n as -ankerCs -ank" It super%ises and re!ulates the entire bankin! system in the country" *ommercia" Bank H #hey accept deposits from the public and !i%e loans to customers" #hey pro%ide short term financial assistance to businessmen and traders" #hey pay interest on deposits and char!e hi!her interest on loans" State -ank of India is the lar!est commercial bank of India" 0xchan/e >ank- #hey pro%ide forei!n e(chan!e and other facilities to importers and e(porters" /itibank, bank of ,merica, Eon! )on! -ank" Industria" Bank H #hey pro%ide lon! term and medium term loans to industrial concerns" #hey pro%ide not only finance but technical and administrati%e assistance" #hey under rite shares and debentures issued by industrial enterprises" 0(" ID-I, I=/I" A/ricu"tura" Bank H #hese pro%ide financial assistance to farmers" #hey !rant loan term loans a!ainst mort!a!e of land and are so called mort!a!e banks" *ooperative Bank H #hey are formed both in %illa!es and in cities" 7ural cooperati%e banks pro%ide credit facilities to farmers" ?rban cooperati%e banks encoura!e sa%in!s and !rant loans to their members" *urrent"yE India has CC commercia" >anks, out of these there are@ 24 public sector banks 9that is ith the Go%ernment of India holdin! a stake: 31 pri%ate banks 9these do not ha%e !o%ernment stakeB they may be publicly listed and traded on stock e(chan!es: and 3; forei!n banks

,ccordin! to a study by Dun + -radstreet 9an international research body:IJIndiaGs #op -anks 200;JIthere has been a si!nificant !ro th in the bankin! infrastructure" #akin! into account all banks in India, there are o%erall 12,260 branches or offices, ;53,312 employees and 24,0;; ,#Ms"

+U.*2IO.S O+ BA.-S
,cceptin! Deposits from public'others 9Deposits:"

 <endin! money to public 9<oans:" #ransferrin! money from one place to another 97emittances:" ,ctin! as trustees" )eepin! %aluables in safe custody" Go%ernment business"

%A<OR P1A70RS
ED=/ -,.) I/I/I -,.) S#,.D,7D /E,7#070D -,.) ES-/ -,.)

(,& *O%PA.7 PRO+I10

Introduction to Axis >ank

Axis Bank 1imited, formerly U2I Bank, is a financial ser%ices firm that had be!un operations in 1556, after the Go%ernment of India allo ed ne pri%ate banks to be established" #he -ank as promoted *ointly by the ,dministrator of the Specified ?ndertakin! of the ?nit #rust of India 9?#I-I:, <ife Insurance /orporation of India 9<I/:, General Insurance /orporation <td", .ational Insurance /ompany <td", #he .e India ,ssurance /ompany, #he 8riental Insurance /orporation and ?nited India Insurance /ompany" ?#I-I holds a special position in the Indian capital markets and has promoted many leadin! financial institutions in the country" #he bank chan!ed its name to ,(is -ank in ,pril 2004 to a%oid confusion ith other unrelated entities ith similar name" ,fter the 7etirement of Mr" P" F" .ayak, Shikha Sharma as named as the bankGs mana!in! director and /08 on 20 ,pril 2005" ,(is -ank is the first bank in the country to pro%ide a secure debit card-based payment ser%ice" #he -ankGs 7e!istered 8ffice is at ,hmedabad and its /entral 8ffice is located at Mumbai" ,t the end of September 2010, #he -ank has a %ery ide net ork of more than 12;1 branches and 0(tension /ounters 9as on 31st December, 2010:" #he -ank has a net ork of o%er 2240 ,#Ms 9as on 31st March, 2011:" +A*2 S4002

Industry

-ankin! =inancial ser%ices 10

+ounded 4eadFuarters -ey peop"e

Products

1551 Mumbai, India Adarsh -ishore 9/hairman: Shikha Sharma 9MD + /08: In%estment -ankin! /ommercial -ankin! 7etail -ankin! Pri%ate -ankin! ,sset Mana!ement Mort!a!es /redit /ards

347 2407 *4A.#0 240IR .A%0 +RO% U2I 2O A5IS BA. ,(is -ank is born out of the pressure on ?#I -ank to shed its brand name after the split of the erst hile ?#I" #he reason in the chan!e in the bankCs name follo s a year-lon! tiff bet een ?#I Mutual =und and the bank o%er the use of the brand name, ?#I" ,fter 200; ?#I bank as not prepared to accept terms and conditions 9includin! royalty: from ?#I ,M/ to use the name" ,ccordin! to the deal bet een the !o%ernment and the fundGs four sponsors-S-I, <I/,P.- and -ank of -aroda- ?#IGs nine subsidiaries could use the brand name for free till Fanuary 200;" Post Fanuary 200; ?#I bank, ?#I securities, ?#I technolo!ical ser%ices, ?#I in%estor ad%isory ser%ices had to pay royalty to the fund house" ?#I mutual fund had su!!ested that the bank continue usin! the same brand beyond 200; sans royalty fees, but anted a non complete clause to be built in, besides seekin! a *oint brand promotion" Eo e%er, ?#I bank opted for a ne appropriate name" name and appointed a committee to select an

#he committee short listed around 10 names before selectin! J,(isJ" Ae had to chan!e our name to ha%e our o n brand and identity" e had to !i%e up the name of ?#I after usin! it for 13 years as e ere not prepared to accept terms and conditions from ?#I ,M/ to use the name -PF .ayak ,chairman and /08 ,(is bank" 8ur central messa!e is that nothin! has chan!ed e(cept the name" #he continuity is maintained throu!h the color" A0 chose ,DIS as it is simple and it con%eys a sense of solidity and a sense of maturity" It also has a uni%ersal appeal" -Eemant kaul,

11

president retail bankin!, ?#I bank" #he chan!e in name as consider for a%oidin! confusion as se%eral unrelated entities ere usin! the ?#I brand" 0D9corporate strate!y: 7 ,shok )umar" #he bank has chalked out a stron! communication campai!n o%er the year" 8n ,u!ust1,the bank ill launch a nation ide ad%ertisement campai!n ith a catchline, G# ins both e$ualG" #he entire brandin! e(ercise is e(pected to cost the bank around 7s" 10 crores" ,nother hu!e task the bank proposes is to chan!e the si!na!es across 200 offices and 2614 ,#MGs in 362 cities, to ns and %illa!es" #he si!na!es across ei!ht ma*or cities includin! Delhi, -ombay, )olkata and Eyderabad ould be chan!ed immediately and in other 210 cities, by the end of September"

6ision 9A&G and *ore 6a"ues

6ISIO. 9A&G #o be the preferred financial solutions pro%ider e(cellin! in customer deli%ery throu!h insi!ht, empo ered employees and smart use of technolo!y"

*ore 6a"ues /ustomer /entricity 0thics #ransparency #eam ork 8 nership

A3AR$S H R0*O#.I2IO.S
=ollo in! are the reco!nitions recei%ed by the -ank durin! the Kear 2005@

Business 3or"d E Best Bank A=ards- =astest Gro in! <ar!e -ank

Business 2odayE Best Bank A=ards - IndiaGs -est -ank, IndiaGs =astest Gro in! -ank, IndiaGs Most /onsistent -ank

02 Inte""i/ence #roup--est -ank 2005

12

.$26 Profit Business 1eadership A=ards 9AAD --est bank Pri%ate Sector

+or>es +a> GA-#he -est of ,sia PacificGs -i!!est <isted /ompany

+0 Best Banks A=ard--est .e Pri%ate Sector bank, 7ank 1

2a"isma - /ustomer ,ppreciation , ard 2005

$ H B Best Bank A=ards - -est Pri%ate -ank

1afferty A=ard - -est ,nnual 7eport-India

S3O2 A.A17SIS

&, S2R0.#24
L L 0(tremely /ompetiti%e and Profitable -ankin! =ranchise Sound #echnolo!ical Platform ith /entrali&ed Database and 8perations Support of %arious Promoters

9, 30A-.0SS
L L L .ot ha%in! Ima!e ?#I 9fraud: Ei!her cost Market /apitali&ation Mery <o

(, OPPOR2U.I27
L L L L <ar!e retail and corporate market Aide scope in rural India 8ther ,cti%ity 9.on -ankin! ,cti%ity: People ha%e become more ser%ice oriented

I, 24R0A2
L 8ther better sa%in!s and in%estment options a%ailable 9like

13

L L

Insurance, Mutual fund, 7eal-estate, Gold: Go%ernment 7ules and 7e!ulations Mery tou!h competition ith other Pri%ate sector 9I/I/I -ank, ED=/ bank: or public sector 9-8-, P.-: banks"

Promoters

,(is -ank <td" has been promoted by the lar!est and the best =inancial Institution of the country, ?#I" #he -ank as set up ith a capital of 7s" 111 crore, ith ?#I contributin! 7s" 100 crore, <I/ - 7s" 4"1 crore and GI/ and its four subsidiaries contributin! 7s" 1"1 crore each" S??#I - Shareholdin! 23"4;N 0rst hile ?nit #rust of India as set up as a body corporate under the ?#I ,ct, 1523, ith a %ie to encoura!e sa%in!s and in%estment" In December 2002, the ?#I ,ct, 1523 as repealed ith the passa!e of ?nit #rust of India 9#ransfer of ?ndertakin! and 7epeal: ,ct, 2002 by the Parliament, pa%in! the ay for the bifurcation of ?#I into 2 entities, ?#I-I and ?#I-II ith effect from 1st =ebruary 2003" In accordance ith the ,ct, the ?ndertakin! specified as ?#I I has been transferred and %ested in the ,dministrator of the Specified ?ndertakin! of the ?nit #rust of India 9S??#I:, ho mana!es assured return schemes alon! ith 2"41N ?S-26 -onds, 2"20N ,7S -onds ith a ?nit /apital of o%er 7s" 16124"15 crores" #he Go%ernment of India has currently appointed Shri )" ." Prith%ira* as the ,dministrator of the Specified undertakin! of ?#I, to look after and administer the schemes under ?#I - I, here Go%ernment has continuin! obli!ations and commitments to the in%estors, hich it ill uphold"

14

%i"estones
Mar-0; Dec-04 Sept-04 Fuly-04 Fuly-04 Fuly-04 Fune-04 May-04 ,pril-04 Mar-04 Mar-04 Mar-04 Mar-04 =eb-04 ,(is -ank launches Platinum /redit /ard, IndiaGs first 0MM chip based card ,(is -ank !ets ,,, .ational <on!-#erm 7atin! from =itch 7atin!s ,(is -ank ties up ith -an$ue Pri%Oe 0dmond de 7othschild 0urope for Aealth Mana!ement ?#I -ank re-brands itself as ,(is -ank ?#I -ank successfully raises ?SD 1010 million ?#I -ank ties up ith #ata Motors <td" for /ar <oans ?#I -ankGs e(pansion into ,sia supported by =7S ?#I -ank launches GSpice 7e ardsG on the bankcards - IndiaGs first-e%er merchant-supported re ards pro!ram ?#I -ank opens a =inancial Ser%ices /ate!ory I -ranch in the DI=/ in Dubai ?#I -ank ties up ith Eyundai Motor India <td" for /ar <oans ?#I -ank ties up ith II=/< to pro%ide finance for infrastructural pro*ects in the country ?#I -ank launches /ar <oans in association ith Maruti ?dyo! <td ?#I -ank opens a =ull <icence -ank -ranch in Eon! )on! =inance Minister Shri P" /hidambaram <aunches Shriram - ?#I -ank /o -

15

-randed /redit /ard 0(clusi%ely =or Small 7oad #ransport 8perators 9S7#8S: =eb-04 =eb-04 =eb-04 Fan-04 .o%-02 Sep-02 ,u!-02 ,u!-02 ,u!-02 ,u!-02 ,u!-02 Fuly-02 May-02 May-02 ,pr-02 Fan-02 ?#I -ank announces the launch of its Meal /ard ?#I -ank announces the launch of its Gift /ard <I/ Premium payment no throu!h ?#I -ank -ranches ?#I bank opens Priority -ankin! branch in Mumbai and )olkata ?#I -ank opens Priority -ankin! <oun!e in Pune ?#I -ank launches operations of ?-< Sales, its Sales Subsidiary Inau!urates its first office in -en!aluru ?#I -ank announces the launch of its /redit /ard -usiness ?#I -ank becomes the first Indian -ank to successfully issue =orei!n /urrency Eybrid /apital in the International Market ?#I -ank -usiness Gold Debit /ard Master/ard <aunched - Desi!ned for business related spendin! by SM0s and self employed professionals ?#I -ank announces the scheme of issuance of JSenior /iti&en ID /ardJ in association ith Di!nity =oundation ?#I -ank rolls out its 2000th ,#M ?#I -ank opens 7epresentati%e 8ffice in Shan!hai ?#I -ank and <I/ *oin hands to launch an ,nnuity /ard for !roup pensioners of <I/ ?#I -ank ties up ith Geo*it =inancial Ser%ices to offer 8nline #radin! ser%ice to its customers ?#I -ank opens its first international branch in Sin!apore ?#I -ank and ?#I Mutual =und to launch a ne ser%ice for sale and redemption of mutual fund schemes throu!h the -ankGs ,#Ms across the country ?#I -ank ins International =inancin! 7e%ie EouseG a ard for the year 2001 9I=7: ,sia GIndia -ond

Dec-01 8ct-01 Fuly-01 May-01 ,pr-01 Mar-01

?#I -ank e(tends bankin! ser%ices to the rural milk producers in ,nand and )heda districts in Gu*arat ?#I -ank and Misa International launch Mobile 7efill facility - ,nytime, ,ny here Pre-Paid Mobile 7efill for all Misa /ardholders in India ?#I -ank and -a*a* ,llian& *oin hands to distribute !eneral insurance products ?#I -ank launches Smart Pri%ile!e - a special bank account desi!ned for omen M#.< ties up ith ?#I -ank for payment of telephone bills throu!h the

16

-ankGs ,#M net ork Mar-01 Mar-01 =eb-01 =eb-01 Fan-01 Mar-06 =eb-06 ?#I -ank !ets listed on the <ondon Stock 0(chan!e, raises ?SP 235"30 million throu!h Global Depositary 7eceipts 9GD7s: ?#I -ank appointed by Go%ernment of )arnataka as the sole banker for the -an!alore 8ne 9-1: pro*ect ?#I -ank launches a po erful %ersion of )isan /redit /ard ?#I -ank ties up ith 7emit2India to launch the 7emittance /ard ?#I -ank enables premium payment of <I/ policies throu!h its ,#Ms" -ilateral arran!ement bet een State -ank of India 9and its 4 associate member banks: and ?#I -ank" comes into force ith the commencement of operations 9as on 3rd =ebruary G06: of the combined net ork of o%er 6000 ,#Ms ?#I -ank 9by pursuin! a proacti%e strate!y of for!in! bilateral a!reements and bein! a pro!ressi%e player in the multi-lateral consortiums for shared ,#M net ork: offers its customers access to o%er 4000 ,#Ms across the country - the lar!est to be offered by any bank in India so far" -ank inau!urated its ,#M at #he!u near the .athula Pass in Sikkim" #his ,#M is at the hi!hest altitude in India" #he -ankGs ,#Ms across the country crosses the thousand mark -ank launches the #ra%el /urrency /ard" #he -ankGs Debit /ard crosses the one million mark" #otal ,d%ances cross 7s 4,000 /rore" -ank declares a net profit of 7s 152"1; crores for =K03, a !ro th of 63N o%er the pre%ious year -ank si!ns ,!reement ith 0mployees Pro%ident =und 8r!ani&ation 90P=8: for disbursement of Pension -ank crosses the ;00 ,#M mark #he -ank issues 3,;3,22,;36 fully paid up e$uity shares totalin! to 7s" 126"00 crores, throu!h a Preferential offer to <ife Insurance /orporation of India 9no constitutin! 13"16N of the -ankGs e(panded e$uity:, /iticorp -ankin! /orporation, -ahrain 9holdin! 3";6N:, /hrys/apital I, <</, Mauritius 9holdin! 3";6N: and )arur Mysya -ank <td"9constitutin! 1"00N: #he -ank also Increases the authorised share capital of the -ank from 7s" 230 crores to

=eb-06

Dec-03 Sep-03 Sep-03 ,u!-03 ,u!-03 May-03 Mar-03 Mar-03 Mar-03 Mar-03 Mar-03 Mar-03 Mar-03

17

7s" 300 crores" =eb-03 =eb-03 8ct-02 ,u!-02 ,pr-02 Mar-02 Fan-02 Fan-02 -ank, in a pioneerin! mo%e, launches the ,# P,7 /he$ue facility, free of cost, for all its Sa%in!s -ank customers" -ank ins mandate to set up 16 ,#Ms at the Aestern 7ail ay stations alon! the Mumbai di%ision" -ank launches /orporate i/onnectQ - the Internet -ankin! facility for /orporates -ank si!ns Mo? ith -S.< re!ardin! bill collection ser%ices across the country throu!h both online and offline channels" -ank opens its 100th ,#M Deposits /ross 7s"12, 000 /rore #he -ankGs 100th branch opens at #uticorin,#amilnadu #he -ank opens an ,#M at the Gol Dak-)hana, i"e" the .e Delhi GP8, makin! it the first instance of a commercial bank settin! up an ,#M at any post-office in the country" #otal ,d%ances cross 7s 1,000 /rore #he deposit base for the -ank crosses 7s" 10,000 /rore Pri%ate placement of 22N stake in the -ank to /D/ /apital Partners" ?#I holdin! reduces to 66";;N -ank si!ns Mo? ith India Post for introducin! %alue added financial products and ser%ices to customers of both or!ani&ations, includin! settin! up of ?#I -ank ,#Ms in post offices" -ank ties up ith Go%t of ,ndhra Pradesh for collection of commercial ta( -ank opens its 200th ,#M" It becomes the 2nd lar!est ,#M net ork in the country, a position held e%en today" -ank becomes fully net orked 0-commerce initiati%es announced =inancial ,d%isory Ser%ices offered be!innin! ith marketin! of ?S 26 ?#I -ank calls off its proposed mer!er ith Global #rust -ank and sur!es ahead on its o n" -ank launches its Internet bankin! module, i/onnect 7etail loans introduced for the first time by the -ank Profits cross 7s 10 crore mark for the first time" -ank adopts =inacle soft are from Infosys for core bankin! Dr"P"F .ayak takes o%er as /hairman and Mana!in! Director from Shri Supriya Gupta"

Dec-01 .o%-01 Sep-01 ,u!-01

Fuly-01 Dec-00 8ct-00 Fuly-00 Fuly-00 ,pr-00 ,pr-00 Mar-00 =eb-00 Fan-00

18

Sep-55 Mar-55 Sep-5;

/ash mana!ement ser%ices 9/MS: launched, /o branded credit card launched Deposits cross 7s"3000 crores ?#I -ank !oes public ith a 7s" 41 crore public issueB Issue o%ersubscribed 1"2 times, o%er 1 lakh retail in%estors" ?#I holdin! reduces to 20";1N /rosses 7s"1000 crore deposit mark /ompletes first profitable year in operation =irst branch of ?#I -ank inau!urated at ,hmedabad by Dr" Manmohan Sin!h, EonGble =inance Minister, Go%ernment of India" ?#I -ank comes into bein! 7e!istered office at ,hmedabadB Eead office at Mumbai

Fun-52 Mar-51 ,pr-56 Dec-53 Dec-53

Board of $irectors

#he members of the -oard are@

%r, A$ARS4 -IS4OR0 %iss, S4I-4A S4AR%A %iss, RA%A BI<APUR-AR %r, -,., PRI246IRA< %r, 6,-, -AU.$I.7A %r, S,B, %A24UR %r, PRASA$ %0.O. %r, RABI.$RA.A24 B4A22A*4AR77A

/hairman Mana!in! Director + /08 Director Director Director Director Director Director

19

Prof, SA%IR - BARUA %r, A,-,$AS#UP2A %r, SO% %I22A1

Director Director Director

Shareho"din/ Pattern
,s on 30'05'2010

Sr, .o, A
1 2 3 6 1 2 4

.ame of the Shareho"ders Promoter Shareho"din/

,dministrator of the Specified ?ndertakin! of the ?nit #rust of India - 9S??#I: <ife Insurance /orporation of India General Insurance /orporation of India #he .e India ,ssurance /ompany <imited

.o, of shares he"d

; stake to 2ota"

54,226,343 60,060,112 4,141,000 3,461,302 3,242,000 1,622,422 1,123,;43 &GIE(II(EIBA

23"13 5"25 1";3 0"51 0"45 0"36 0"2; (B,(B

.ational Insurance /ompany <imited #he 8riental Insurance /ompany <imited ?nited India Insurance /ompany <imited 2ota" promoter shareho"din/ A

B
;

$omestic shareho"ders
Indian =Is and -anks 4,241,155 1"42

20

5 10

Indian M=s 8thers 9Indian bodies corporate'Indian residents'Directors'relati%es'/M'#rust'-anks: 2ota" domestic shareho"din/ B

15,340,545 15,216,561 C:E9DBE&9(

6"25 16"66 9A,CD

*
11 12 13

+orei/n shareho"ders
=IIs =DI 9GD7: =orei!n -odies - D7 =orei!n -anks'=orei!n .ational'.7Is 2ota" +orei/n shareho"din/ * 2ota" AJBJ* 132,112,621 31,251,213 1,011,321 &CCE&(DEGD9 IACECI&E9&( 32"56 ;"16 0"22 I&,BI &AA,AA

*redit Ratin/s

+itch India =,e,f, 9Ath Octo>erE 9A&A Subordinated Debt Perpetual #ier I ?nsecured Subordinated ?pper #ier II Subordinated <o er #ier II Support 7atin! Indi%idual 7atin! I*RA 1td, /ertificate of Deposits Subordinated Debit ?pper #ier II -onds ,1R <,,, <,,R ,,,9Ind: Stable 8utlook ,,R9Ind: Stable 8utlook ,,R9Ind: Stable 8utlook ,,,9Ind: Stable 8utlook 3 /

21

Eybrid #ier I *RISI1 /ertificate of Deposits *AR0 Ratin/s =,e,f, &&th .ovem>er 9AAC Subordinated #ier II -onds

<,,R

P1R

,,,

(,&,& PRO$U*2S A.$ S0R6I*0S O+ A5IS BA.,(is -ank offers the follo in! ser%ices@-

Persona" Bankin/ ,ccounts Deposits <oans /ards =ore( In%estments Insurance Payment 8ther Ser%ices *orporate Bankin/ ,ccounts /redit /apital Market #reasury /ash Mana!ement Ser%ices Go%t -usiness .RI Bankin/ ,ccounts /redit 7emittances Ser%ices

A/ri H Rura" Bankin/ ,!ri -usiness Microfinance =inancial Inclusion 7ural -ankin! Priority Bankin/ ,ccounts Deposits <oans /ards In%estments Payments 7emittances 8ther Ser%ices 9I5B Bankin/

P0RSO.A1 BA.-I.#

22

0asy ,ccess Sa%in!s ,ccount Prime Sa%in!s ,ccount AomenCs Sa%in! ,ccount Demat ,ccount Defence Salary ,ccount ,&aadi H .o frills ,ccount

A**OU.2S )rishi Sa%in!s ,ccount Salary ,ccount Priority ,ccount Senior /iti&enCs ,ccount #rust'.G8 Salary ,ccount Pension sa%in! ,ccount

=i(ed Deposits 0ncash 26

$0POSI2S 7ecurrin! Deposits #a( Sa%er ="D"

Eome <oan Personal <oan

1OA.S /ar <oan <oan ,!ainst Property

*AR$S *redit *ards Infinite /redit /ard #itanium Smart #ra%eler /redit /ard Platinum ,d%anta!e /redit /ard 0asy /redit /ard Sil%er /redit /ard /orporate /redit /ard $e>it *ards Priority Platinum Debit /ard #itanium 7e ards Debit /ard Gold Debit /ard -usiness Gold Debit /ard Prepaid *ards #ra%el /urrency /ard /orporate Gift /ard 7e ards /ard Meal /ard Shriram /redit /ard Si!nature /redit /ard Platinum /redit /ard Gold /redit /ard 0- shop /ard #rust /hemists /redit /ard MyDesi!n-Ima!e Debit /ard /lassic Debit /ard Gold Plus Debit /ard Payroll /ard Gift /ard 7emittance /ard ,nnuity /ard

#ra%el /urrency /ards

+OR05 India #ra%el /ard

23

8ut ard 7emittances =orei!n /urrency /ash

=orei!n /urrency #ra%ellers /he$ues

Mohur Gold Mututal =unds ;N Sa%in! -onds

I.60S2%0.2S 8nline #radin! Demat ,ccount

I.SURA.*0 1ife Insurance Ma( .e Kork life Gain Plus Ma( .e Kork life Partner Plus Ma( .e Kork life Shiksha Plus II Ma( .e Kork life colle!e Plan 4ea"th Insurance =amily Eealth 4ome Safe Eome Motor Insurance Personal ,ccident /ritical IIllness Ma( .e Kork life Ahole <ife Participatin! Ma( .e Kork life Gain Platinum Protect Ma( .e Kork life =le(i fortune Sil%er Eealth Sa!e Eome plus Fe ellery Insurance #ra%el companion -usiness ,d%anta!e

PA7%0.2 2RA.S+0RS Bi"" Pay 0lectronic /learin! Ser%ice 2ax Payments Direct #a( Payments 8ut ard 7emittance Pension Disbursement

Prepaid Mobile 7echar!e 8nline shippin! 0-Statement

Other Services <ocker IP8 Smart

Accounts 0asyAccess Savin/s Account #he account is an endea%or by the -ank to understand the consumersG needs and redefine bankin! to suit your re$uirements for a truly comfortable bankin! e(perience"

24

0asy,ccess Sa%in!s ,ccount !i%es you instant access to your money any here, anytime" Kou can a%ail of all these ser%ices ith a minimum $uarterly a%era!e balance of 7s" 10,000 in metro or urban centers, 7s" 1,000 in semi urban centers and 7s" 2,100 in rural centers" -rishi Savin/s Account ,(is -ank offers a uni$ue sa%in!s account hich is easy to operate and allo s you to transact immediately" #his product has been specially desi!ned keepin! in mind the uni$ue re$uirements of a farmer and others employed in the allied a!ricultural acti%ities sector" #his account is offered balance of 7s 1000 only" ith the re$uirement of maintainin! the half-yearly a%era!e

Prime Savin/s Account ,t ,(is -ank, e ha%e al ays stri%ed to pace our products ith the !ro in! needs of our customers" #he Prime Sa%in!s account has therefore been created ith your specific financial re$uirements in mind" Kou can a%ail of all these ser%ices ith a minimum a%era!e balance of 7s 21,000 in metro'urban'semi-urban centers and 7s 10,000 in rural centers" Sa"ary Account ,(is -ank, belie%e in pro%idin! total financial solutions to the employer as ell as the employee, throu!h the salary relationship" Ae understand that each employee in an or!ani&ation is at a different station of life ha%in! different financial and bankin! needs" 8ne solution may not fit all" #herefore, each employee in an or!ani&ation is offered a &ero balance salary account and associated pri%ile!es commensurate ith her'his net monthly salary" 3omenKs Savin/s Account #he account is an endea%or by the -ank to understand the consumersG needs and redefine bankin! to suit your re$uirements for a truly comfortable bankin! e(perience" AomenGs Sa%in!s ,ccount !i%es you instant access to your money any here, anytime" Priority Account L Resident , ser%ice that ould ensure not only the hi!hest le%el of Priority but also preferential treatment to selected customers" $emat Account

25

,(is -ank is a re!istered member 9Depository Participant: of .SD<" In this system, physical security holdin!s are con%erted into electronic 9or in other ords, demateriali&ed: holdin!s" ,(is -ank has been enrolled as a Depository Participant by the .SD< - IndiaGs first depository" Kou can a%ail of all the depository-related ser%ices by *ust openin! an account ith .SD< throu!h ,(is -ank" Senior *iti@enKs Account It has been desi!ned keepin! in mind the fact that a Senior citi&enGs bankin! re$uirements are holly different and re$uire special consideration" $efence Sa"ary Account It is a product desi!ned keepin! in mind ho tou!h a life in the Defence =orces is" .ot only does it come to you absolutely free, no minimum balance is re$uired either"

2rust8.#O Savin/s Account It is a complete bankin! solution for #rusts, ,ssociations, Societies, Go%ernment -odies, Section 21 companies and .G8s, so that the or!ani&ations can de%ote all of their time to their noble moti%ations" , Sa%in!s ,ccount for your #rust ith ,%era!e >uarterly -alance 9,>-: of 7s" 21,000" Pension Savin/s Account It is specifically, desi!ned for PensionerGs 90(istin! + Prospecti%e: of /entral Go%t" /i%il Ministries' Departments + Defence Ministry keepin! in mind the fact that a PensionerGs bankin! re$uirements are holly different and re$uire special consideration

(,9 PRIORI27 BA.-I.#

In a se!mentation study undertaken in 9AA9, it as found that 9,B9 ; of ,(is -ankCs retail customers contribute to nearly ID,AG; of the total retail deposits" #he clients that brin! a lar!er share of business to the -ank e(pect a differentiated standard of ser%ice" #his also makes business sense, as more often than not, most of the business in a particular branch flo s from a handful of clients" Eence, Priority -ankin! as launched in order to cater to the needs of the hi!h net

26

orth customers ithin the bank" #he product has at its core the thou!ht of pro%idin! differentiation in ser%ice and treatment to a se!ment of its customers ith a %ie to ards@ /ustomer retention, /ustomer ac$uisition and /ross sellin!"

2he services made avai"a>"e in this >ranch Plush <obby ith aitin! area, plasma #M" 0tc" -usiness /enter- for outstation customers tra%ellin! to the city for business, e$uipped ith Internet, fa( and conference call facilities" Meetin!' discussion rooms for the customers to bank ith their 7elationship Mana!er in comfort and confidentiality" Internet access &one /hildrenCs play area- for keepin! the customerCs children en!a!ed hile they are bein! ad%ised on their bankin!' in%estments" /onference area- to hold small e%ents, pri%ate screenin!s, customer meets at the branch on a re!ular basis" <ifestyle pri%ile!es are an inte!ral part of the Priority -ankin! offerin!"

27

Priority Bankin/ 1oun/e ,s a Priority bankin! customer you ill ha%e access to an e(clusi%e GPriority -ankin! <oun!eG at branches" #his ill allo you to conduct your financial transactions in utmost comfort and confidentiality throu!h an e(clusi%e 7elationship Mana!er"

28

$edicated Re"ationship %ana/er Kou ill en*oy access to a dedicated 7elationship Mana!er ho ill be your one point contact at branch for all your bankin! transactions thus ensurin! that you ould neither ha%e to mo%e from one counter to the other nor stand in $ueues to a ait your turn"

29

(,9,& PRO$U*2S H S0R6I*0S O+ PRIORI27 BA.-I.# Accounts Priority Account ' Resident Ae present to you ,(is -ank - Priority" , ser%ice that ould ensure not only the hi!hest le%el of Priority but also preferential treatment to selected customers like you" Persona"i@ed Services

30

7elationship #eam Kou ill en*oy access to 7elationship #eam ho ill be your point of contact at branch for all your bankin! transactions thus ensurin! that you ould neither ha%e to mo%e from one counter to the other nor stand in $ueues to a ait your turn" Preferred reco!nition across branches /omplimentary three Sero -alance Priority accounts in family relationship Personali&ed che$ue book ith unlimited at-par facilities In%itation to e%ents ,nnual Gifts

*onvenience
/omplimentary ,ny here -ankin! Priority Processin! of all re$uests =ree Mobile -ankin! =ree Internet -ankin! Monthly Mutual =und .a%i!ator and Market 7eports Monthly e-statements /onsolidated physical $uarterly statements

Preferentia" Pricin/
/omplimentary Demat ,ccount Preferential lendin! solutions Discounts 8n #ra%el /ards Preferential rates on =ore( ser%ices Gold -ars at preferential rates

Services on Priority
Mirtual 7elationship Man!er Preferred reco!nition across all ,(is -ank branches Separate $ueue at /P? for account openin! Priority at /all centre

+"exi>"e 0"i/i>i"ity *riteria

0"i/i>i"ity *riteria !Individua")

31

Minimum ,%era!e >uarterly -alance in Sa%in!s /lient ith #erm deposit 7elationship

Rs, 9 "akhs Rs, &A "akhs H a>ove Rs, G "akhs H a>ove

/lient ith Aei!hted deposits 9Sa%in!s ,ccount,/urrent ,ccount, #erm Deposit: (AND/OR) Investment in Mutual Fund & Life Insurance (with minimum Rs.50,000 in Savings) 0"i/i>i"ity *riteria !+ami"y) =amily of 6 ith #otal Aei!hted Deposits 9Sa%in!s ,ccount,/urrent ,ccount, #erm Deposit: In%estment in Mutual =und + <ife Insurance 9 ith minimum Rs, & "akh in Sa%in!s:

Rs,&A "akhs H a>ove

Specia" Benefits to Priority Sa"ary *ustomers

?nlimited /he$ue book facility DD'P8 free of any char!e 3 per month /omplete Aai%er on annual char!es for Priority Platinum Debit /ard /omplete Aai%er on 1st year ,nnual Maintenance /har!es on a Demat ,'c and 10N off on ,nnual Maintenance /har!es from 2nd Kear on ards

32

Priority P"atinum $e>it *ard

/omplimentary 0(clusi%e Platinum Debit /ard 0nhanced ,#M Aithdra al limit of 7s" 1 lac Ei!her #ransaction limit 9P8S: limit of 7s"6 lacs 0nhanced Personal ,ccident Insurance /o%er of 7s" 1 lacs 0(clusi%e benefits on Dinin!, Eealth, Personal /are ,,pparels, Fe ellery ,Ser%ices + #ra%el 0nhanced <ost /ard liability Protection Sero =uel Surchar!e /omplimentary access to ,irport <oun!es at select Domestic + International ,irports in India +eatures +ree usa/e at a"" 6isa A2%s #he Priority Platinum debit card !i%es you free usa!e at all Misa ,#Ms in India, e%en at ,#Ms of other banks" Mero +ue" Surchar/e 8n usin! your Priority Platinum Debit /ard for fuel purchases, you !et a full ai%er of fuel surchar!e that ould be normally applicable other ise" Instant Identification #he aesthetically desi!ned Priority Platinum debit card ith the ,(is bank Priority lo!o ould identify you as our ,(is -ank Priority customer at any of our branches across India here the ser%ice is bein! offered" It ould also help you a%ail of the %arious pri%ile!es e offer from time to time" 4i/her 2ransaction 1imits 0specially for ,(is -ank Priority Platinum Debit cardholders, the daily ,#M /ash Aithdra al <imit has been enhanced to 7s 1,00,000 per day at all ,(is -ank ,#Ms" #he daily P8S limit is 7s 6,00,000 at Merchant 0stablishments, sub*ect to the balances held in the account" .o issuance *har/es on Primary and one add'on card .o issuance /har!es and !et ai%er on ,nnual char!es of 7s 200 sub*ect to 7s 10,000 P8S transactions in a year" 0nhanced Insurance *overa/eT #he ,(is -ank Priority Platinum Debit /ard comes ith special insurance features that protect you and your lo%ed ones" Mero 1ost *ard 1ia>i"ity ,s an ,(is -ank Debit /ard customer, you ill be insured for risk of loss due to fraudulent use of a lost or stolen or missin! debit card" ,ll you need to do is communicate the loss of your card by callin! our 26-hour customer ser%ice

33

number" Purchase Protection ,ll consumer durable !oods purchased usin! the debit card are insured a!ainst fire, natural calamity, bur!lary and housebreakin! up to 50 days from the date of purchase" Kou ill be eli!ible for a combined lost card liability and purchase protection of up to 7s 1"1 lakh" Persona" Accident *over In the unfortunate e%ent of loss of life in a mishap, the customerGs beneficiaries ill recei%e the benefit of accident insurance of 7s 1 lakh" 0xc"usive Offers Ae re!ularly tie up ith leadin! restaurants, shoppin! establishments, hotels, resorts etc, to brin! you e(clusi%e discounts and offers from time to time" #hese offers ould be %alid only hen you utili&e your Priority Platinum Debit /ard to make the payments" Re=ards Pro/ram #he Priority Platinum Debit /ard 7e ards Pro!ramme allo s customer to earn re ard points on your spends at merchant outlets" #he accumulated re ard points can be redeemed for !ift coupons from leadin! retailers, restaurants, international brands, leather products, cosmetics etc" Kou ill earn 1 re ard point for e%ery 7s 100 of domestic spends and 3 re ard points for e%ery 7s 100 international spends done usin! your Priority Platinum Debit /ard" 9I'4our 0mer/ency 4e"p"ine Kou can call our 0mer!ency Eelpline for /ard -lockin! 51-22- 245;4400" 8ur /ustomer Ser%ice 0(ecuti%es ill assist you"

*onditions App"y
8ther'/orrespondent -ank commission and fees ill be char!ed here%er applicable" ,(is -ank does not !uarantee returns on any of the in%estments" ,(is -ank Priority is offered in select -ranches'/ities only" ,(is -ank is entitled in its absolute discretion to pro%ide or refuse all loan, credit card and credit facilities" ,ny offerin! under ,(is -ank Priority ill be sub*ect to a formal application bein! recei%ed for the same and at the absolute discretion of the bank" ,ll standard terms, conditions of the bank'7-I apply"

$eposits +ixed $eposits ,(is -ank offers you simple rein%estment =i(ed Deposits hich can be opened ith a

34

minimum in%estment of 7s 10,000" Kou can make additions to your deposit in multiples of 7s 1,000 each" #he tenure of your deposit must be a minimum of 2 months" $eposit Schemes Reinvestment $eposits In a rein%estment deposit, the interest accrued to your deposit at the end of each $uarter is in%ested alon! ith the principal" #he tenure of your deposit must be a minimum of 2 months" ,t the end of the $uarter, the interest and the principal are both rolled o%er, and the interest is calculated on the total sum" Income ta( is deducted at source" Automatic Ro""over ,s a =i(ed Deposit holder, you can a%ail of the facility for automatic rollo%ers on maturity 9for both the principal and interest:" Kou can select this option in the ,ccount 8penin! Document 9,8D:" #he options a%ailable are@ Ro""over on"y Principa" 8nly the principal amount ill be rolled o%er" #he interest ill be either credited to your desi!nated account or paid out" Ro""over Principa" and Interest accrued in Reinvestment $eposit #his ill rollo%er both the deposit and the interest accrued for the same tenure at the interest rate applicable on the maturity date"

8n or before the maturity date, you can make the follo in! chan!es in the rollo%er instructions of the deposit@ /han!e in tenure /han!e in maturity instructions /han!e in payment instructions /han!e in principal 9only reduced amount: /han!e rollo%er of Principal to rollo%er of Principal R Interest, or %ice %ersa"

3ithdra=a"s ,ll encashments or ithdra als of =i(ed Deposits can only be made at the branch here the deposit as booked" %ethod of ca"cu"ation of interest =or deposits ith tenure of 2 months + abo%e, interest is calculated on a $uarterly

35

basis" Interest earned durin! the pre%ious $uarter is added to the Principal for calculation of interest" Interest on this amount is calculated e%ery $uarter" =or deposits ith tenure of belo 2 months, interest is calculated at Simple Interest" Please note that the period of +ixed $eposit is considered in num>er of days" In the e%ent the depositor chooses to recei%e the periodic interest payments on a $uarterly basis, interested is calculated and paid on $uarterly rests" 8n premature ithdra al of the deposit, interest shall be paid only for the period for hich the deposit is maintained ith the -ank and at the rate applicable for such period" #a( at source is deducted as per the Income #a( re!ulations pre%alent from time to time"

2he #ro=th *hart of Axis BankNs Priority Bankin/ Se/ment 36

Annua" Priority Income !in cr,) BA :A GA Income IA !in cr,) (A 9A &A A 9AA: 9AAB 9AAC 9AAD 9A&A 9A&& years

=rom the year 2002, the re%enue from Priority -ankin! is continuously increasin!" In 2002, the re%enue as 7s"11 crs hich shooted up to 7s" 22 crs" In 200;, the re%enue as 7s" 25 crs" In 2005, the re%enue as 7s" 31 crs" In 2010, the re%enue as 7s" 10 crs" ,nd the e(pected re%enue from the 2011 is calculated to be 7s" 40 crs"

Recurrin/ $eposits +eatures

37

7ecurrin! deposits are accepted in e$ual monthly installments of minimum 7s 1,000 and abo%e in multiples of 7s 100 thereafter" 7ecurrin! Deposit accounts can be opened for a minimum period of 12 months and in multiples of 12 months thereafter, upto a ma(imum of 120 months" #he amount of installment once fi(ed, cannot be chan!ed " Installment for any calendar month is to be paid on or before the last orkin! day of the month" Ahere there is delay in payment of installment, one can re!ularise the account by payin! the defaulted installment to!ether ith a penalty 9at present it is U P<7 plus 6 N for the period of delay:"=raction of a month ill be treated as full month for the purpose of calculatin! the penalty" #he total amount repayable to a depositor, inclusi%e of interest, depends on the amount of monthly installments and the period of deposit"

0ncash 9I #he 0ncash 26 9=le(i Deposit: !i%es you the li$uidity of a Sa%in!s ,ccount coupled ith hi!h earnin!s of a =i(ed Deposit" #his is achie%ed by creatin! a =i(ed Deposit linked to your Sa%in!s ,ccount pro%idin! you the follo in! uni$ue facilities@ %aximum Returns Kour money is no lon!er idle" ,s soon as the balance in your Sa%in!s ,ccount crosses o%er Rs" 9GEAAA, the e(cess, in multiples of Rs, &AEAAA ill be transferred automatically to a hi!her interest earnin! =i(ed Deposit ,ccount" #he maturity of fi(ed or term deposits formed as a result of transfer of money from the Sa%in!s -ank account ill be for a ma(imum period of &C& days and the interest ill be calculated on simple interest rate basis" %aximum 1iFuidity #he money parked in =i(ed Deposits as a result of the abo%e mentioned s eep out from your Sa%in!s account can be easily accessed by issuin! a che$ue, ithdra in! throu!h ,#M etc" #his amount is automatically re%erse s ept from the most recently formed =i(ed Deposit in units of Rs, GEAAA to the Sa%in!s account hene%er the balance in your Sa%in!s account falls belo Rs, 9GEAAA" #he amount broken form your =i(ed Deposit ill earn interest rates at the applicable rate for the period that the deposit as held ith the -ank" #he remainin! amount of =i(ed Deposit ill continue to earn the contracted rate of interest" Auto Rene=a" 8n maturity of your linked =i(ed Deposit, the -ank ma(imum period of 1;1 days" 4o= do I si/n up for 0ncash 9I? ,ll you ha%e to do is to open a Sa%in!s ,ccount and si!n up an 0./,SE 26 declaration ill automatically rene it for a

38

form" , minimum a%era!e $uarterly balance of 7s 10,000 must be maintained in your Sa%in!s ,ccount to a%ail the 0ncash 26 facility" Priority -ankin! customers ishin! to a%ail of 0ncash 26 =acilities, need to maintain a minimum total relationship of 7s 1 lacs only, in their 0ncash 26 ,ccount" ,s soon as the balance in the Priority -ankin! Sa%in!s ,ccount crosses o%er 7s 1, 00,000 the e(cess balance, in multiples of 7s 10,000 ill be transferred automatically to the =i(ed Deposit ,ccount"

2ax Saver +ixed $eposit In the =inance -ill of 2002, the !o%ernment had announced #a( benefits to -ank #erm Deposits hich are of o%er 1 year tenure u's ;0/ of I# ,ct, 1521 %ide .otification .umber 203'2002 and S81220 90: dated 2;'04'2002"

2he sa"ient points of the scheme notification are 9a: =i(ed tenure ithout premature ithdra al" 9b: Kear is defined as a financial year" 9c: ,mount limited to 7s" 100 minimum and 7s" 100,000 ma(imum" 9d: -ank benefit" ill issue a =i(ed Deposit 7eceipt that shall be the basis of claimin! ta(

9e: #erm deposit under this scheme cannot be pled!ed to secure a loan"

2ax Advanta/e #he pro%ision of Section ;0/ hereby a deduction of up to 7s 100,000 is allo ed hile computin! total income of an indi%idual or E?= in respect of the life insurance premium, contribution to Pro%ident =und etc has bein! amended to include fi(ed deposit ith a scheduled bank of a period of not less than fi%e years" ,ccordin!ly, an indi%idual or E?= shall no be entitled to deduction of up to 7s 100,000 in case he makes a fi(ed deposit of the period of fi%e years or more" #his e(emption shall be part of the 7s 100,000 e(emption presently a%ailable in respect of life insurance premium, contribution to P= etc" Ei!h 7ate of Interest for senior citi&ens as ell as normal customers in %ie lon! term lock-in period enshrined in the scheme" 0"i/i>i"ity of the

39

,ll indi%idual depositors and E"?"=" ho ha%e a P,. number are eli!ible to open a fi(ed deposit account" ,ny indi%idual ho is a 7esident Indian and has attained 1; years of a!e can open a =i(ed Deposit accountB In his or her indi%idual capacity, or In indi%idual capacity on *oint basis" #erm deposit shall be of follo in! types, namely@ Sin/"e ho"der type deposits #he sin!le holder type deposit receipt shall be issued to an indi%idual for himself or in the capacity of the )arta of the Eindu undi%ided family" <oint ho"der type deposits #he *oint holder type deposit receipt may be issued *ointly to t o adults or *ointly to an adult and a minor, and payable to either of the holders or to the sur%i%or@ Pro%ided that in the case of *oint holder type deposit, the deduction from income under section ;0/ of the ,ct shall be a%ailable only to the first holder of the deposit ho should be a P,. holder" +eatures 2=o schemes G7I 97ein%estment #ype: and #DG>I 9>uarterly Interest #ype:" %inimum and %aximum $eposit Amount #he minimum deposit amount ill be I.7 100 or multiples thereof and ma(imum deposit amount ill be I.7 100,000" 1ock'in'Period Since there is an underlyin! ta( ad%anta!e u's ;0/ of I# ,ct, there ould be a lock in period of at least 1 years on the =D under this scheme" 2ype of deposit # o types of deposits are to be offered under the scheme, one pro%idin! for $uarterly compoundin!'rein%estment of interest 97I/ scheme: and the other pro%idin! for $uarterly payout of Interest 9>I/ scheme: to the desi!nated operati%e account of the depositor" Premature c"osure of +ixed $eposits , minimum lock in period of 1 years is stipulated to enable the deposit to be assessed as e(empt from ta(able income u's ;0/ of the I# ,ct" #he maturity period of a term deposit receipt of any denomination shall be fi%e years commencin! from the date of the receipt" .o term deposit shall be en-cashed before the e(piry of fi%e years from the date of its receipt +ixed $eposit Receipt ,s per the scheme notification, ta( benefits under this scheme are to be claimed throu!h the =i(ed Deposit receipt issued by the -ank" 2ax $educted at Source =i(ed Deposits ith the bank shall be sub*ect to #a(

40

Deduction at source as per Income #a( ,ct 1521" Interest on these term deposits shall be liable to ta( under the ,ct, on the basis of annual accrual or receipt, dependin! upon the method of accountin! follo ed by the assessee" #he ta( on such interest shall be deducted in accordance ith the pro%isions of section 156, or section 151 of the ,ct"

1oans 4ome "oan

+eatures of 4ome 1oan ,ttracti%e interest rates -alance #ransfer facility Doorstep ser%ice .il Prepayment char!es

1oan Purposes Purchase of a plot of land + construction of house /onstruction of a house on plot of land already o ned Purchase of a ne house'flat Purchase of old house'flat" #he residual a!e of the property as confirmed by our empanelled %aluators at the maturity of the loan should not be less than 10 years 0(tend'7eno%ate'7epair of a house or flat already o ned by self #ake o%er of e(istin! housin! loan 0"i/i>i"ity A) Sa"aried Individua"s ,ny indi%idual ho is in permanent ser%ice in Go%ernment or reputed companies" #he applicant in all the cases should be abo%e 26 years of a!e at the time of loan commencement and up to the a!e of 20 years or less at the time of loan maturity" B) Professiona"s Professionals 9ie, doctors, en!ineers, dentists, architects, chartered accountants, cost accountants, company secretary, mana!ement consultants only: can apply

41

 #he applicant should be abo%e 26 years of a!e at the time of loan commencement and up to 21 years or less at the time of loan maturity *) Se"f 0mp"oyed Individua"s ,ny indi%idual filin! Income #a( returns can apply #he applicant in all the cases should be abo%e 26 years of a!e at the time of loan commencement and up to 21 years or less at the time of loan maturity"

$ocuments ReFuired

1oan amount
Minimum salary should be 7s"11000 p"m" Sa"ary s"a> ?pto 20000 20000-1lac ,bo%e 1lac 1oan ; 10N 11N 20N ;0N finance of cost 41Nfinance of re!ister %alue or market %alue hiche%er is less

In case of resale of flat a!reement In case of plot Interest Rates H *har/es Rate of interest =i(ed - 16Np"a" =loatin! ?pto 21 lacs -10"21N 21 lacs to 41 lacs -10"1N

42

,bo%e 41lacs *har/es

-10"41N hole

1N of loan amount as a processin! fee" #his is a one time fee char!e on the amount loan taken by the customer" 2erms and *onditions Repayment

7epayment period for home loans shall not e(ceed 21 years" 7epayment period of pre-allotment bookin!s of housin! loans shall not e(ceed 1V year 7epayment period of impro%ement or reno%ation or e(tension of e(istin! property shall not e(ceed 10 years" Security 0$uitable mort!a!e of the property to be financed by ay of deposit of title deeds" Pena"ty for ear"y c"osure .il Other *onditions -ank reser%es the ri!ht to re*ect any application ithout assi!nin! reasons thereof #he applicant ill undertake to inform the -ank as and hen there is a chan!e in address or employment

1oan A/ainst Property <oan a!ainst property - 7esidential <oan a!ainst property - /ommercial 0li!ibility and documentation are same as home loan Rate of Interest =or 7esidential - 12"41N =or /ommercial - 13"41N Kou can take loan on your residential property and on your commercial property and after sanction loan e can use that amount for any purpose" <oan amount is calculated on the market %alue of the property and 10-11N of the %alue of the property loan sanction to the customer"

43

#here is no any prepayment char!e and processin! fee is 1N Repayment 7epayment period for <oan ,!ainst Property is ma(imum 11 years" Persona" 1oan <oans for salaried indi%iduals of select companies Special loans for doctors, chartered accountants, en!ineers, architects, /S and I/A, <oans are a%ailable from 7s 1 lac to 7s 10 lacs 7epayment tenures from 12 to 20 months ,ttracti%e interest rates , balance transfer facility a%ailable for those ho ant to retire any hi!her cost debt 0"i/i>i"ity Minimum a!e of applicant@ 21 years Ma(imum a!e of applicant at loan maturity@ 20 years $ocumentation Same as abo%e Rate of interest *O, "isted Super /,# , /,# , /,# /,# / /,# D ROI 16"1N 11"1N 14N 15N .,

=or closure'Prepayment'part payment char!es - .I< *ar 1oan <oan %alue calculated as per the e(-sho room price of the %ehicle ,ttracti%e interest rates <#M of upto 50N of the e(-sho room price on selected models <oans a%ailable for salaried and self employed indi%iduals, proprietorships and partnership firms and /ompanies <oans offered from 7s" 1 lac on ards <oans tenure from 1 year to 1 years 0"i/i>i"ity Sa"aried Individua"s %inimum a/e of app"icant@ 21 years

44

%aximum a/e of app"icant at "oan maturity@ 20 years Income@ Minimum .et ,nnual Salary of 7s" 1"; <ac p"a" Income 0"i/i>i"ity@ ,s per latest salary slip or =orm 12 0mp"oyment@ Minimum 2 yrs of continuous employment

Se"f'emp"oyed Individua"s %inimum a/e of app"icant @ 21 years %aximum a/e of app"icant at "oan maturity @ 21 years Income@ Minimum .et ,nnual -usiness income of 7s" 1"; <ac p"a" Income 0"i/i>i"ity @ ,s per latest I#7 and computation of income 0mp"oyment@ Minimum 3 yrs in same line of business" Same as abo%e

$ocumentation

Processin/ fee - 3100 to 1000 accordin! to their cate!ory =or closure'prepayment char!es - 1N Rate of interest *ar cate/ory /,# , /,# /,# / /,# /R O(G months 16"10N 16"21N 16"10N 16"10N (:':A months 16"21N 13"21N 12"41N 12"10N

*redit *ard 7ate of interest char!e is 2"51N /ard is issued ithin 20-21 days after completed all formalities Kearly char!e on !old credit card 7s" 210 Kearly char!e on platinum credit card - 7s" 100

Issuance of *redit *ard On the >asis of sa"ary Salary upto 7s" 20000 p"m" 9minimum ith a(is bank: Salary 7s" 20000 to 10000 p"m" 9minimum in other bank and no relation ith a(is bank:

45

Salary 20000R Salary 33000R Salary 1lac R

Gold card Platinum card Si!nature card

On the >asis of savin/ In this e fill up all the data re!ardin! customer to the system then system ill decide hether card is issue or not to that accordin! to their dealin! ith the bank" #he %ariety of the card is also decided by the system" /redit card can be issued a!ainst the =i(ed deposit but =D should be minimum of 7s"21000 7ate of interest on this is 1"51N" ;0N of the %alue of the =D !ets financed for the credit card" 7s" 21000 =D - 0asy !old card ,bo%e 7s" 21000 =D - Platinum card

2rave" *urrency *ard Bon 6oya/e ,(is -ankGs #ra%el /urrency /ard aims to make tra%elin! abroad a truly memorable e(perience" ,%ailable off the shelf at your nearest ,(is -ank -ranch and select ==M/s 9=ull =led!ed Moneychan!ers:, the #ra%el /urrency /ard is a secure, con%enient and hassle free ay to carry money and make payments hen in forei!n shores" Aith it you can attend to your business, en*oy the deli!htful tourist spots, dine out, and take in the breathtakin! landscape and e(otic culture of the country ithout orryin! about money chan!ers and con%ertin! your tra%ellerGs che$ues into local currency" #he #ra%el /urrency /ard !i%es you a 26-hour access to your money" Aithdra funds in the local currency from any Misa or Misa Plus ,#MGs 9,utomated #eller Machine: as ell as pay for all your purchases in any country you %isit, any here in the orld" +eatures 2rave" Across the #"o>e #he ,(is -ank #ra%el /urrency /ard is a prepaid forei!n currency card, hich is currently a%ailable in the denominations of ?S Dollars, 0uro, Great -ritain Pound, ,ustralian Dollar, /anadian Dollar, Sin!apore Dollar, S iss =rancs, S edish )roner, Fapanese Ken, Dirhams 9,0D: and Saudi 7iyals 9S,7:" #he /ard is a%ailable off the shelf at your nearest ,(is -ank -ranch and select ==M/s" ,ll you need to do is fill in a simple application form alon! ith rele%ant documents and you

46

can alk out currency"

ith the card in your hand, loaded

ith the re$uired amount of forei!n

2he minimum reFuirements on the 11 currency denominations are ?SD-210B 0?78200B G-P-110B ,?D-300B /,D-300B SGD-310B /E=-300, S0)-1100, FPK 30000, ,0D 510 and S,7 510" #he ma(imum amount of forei!n currency that can be loaded on to the card is as per the e(tant !uidelines of the 7eser%e -ank of India" #he #ra%el /urrency /ard ?SD %ariant is a%ailable on Misa as ell on Master/ard platform" #he other currency %ariants, i"e" 0?7,G-P,,?D, /,D, SGD, /E=, S0), FPK, ,0D and S,7 are Misa =la! unembossed /ards that can be used to ithdra cash from 1 million Misa or Misa Plus ,#Ms and for purchase transactions at o%er 16 million merchant outlets across the orld" *onvenience #he #ra%el /urrency /ard lets you carry and use your money in the denomination you ant" Kou can ithdra cash from an ,#M or shop for %ery small amounts" Kou need not carry loose chan!e anymore that you are left ith hen you encash your #ra%elerGs /he$ues" ,lso you ha%e unlimited access to your money at any time - day or ni!ht" Kou donGt ha%e to aste precious time lookin! for moneychan!ers to encash your #ra%elerGs /he$ue" Aith the #ra%el /urrency /ard you can pay directly at all Misa enabled merchant outlets 9shops, restaurants, hotels, !rocery stores etc": Security , secure 6 di!it PI. helps to secure all your cash ithdra al transactions" If your card is lost or misplaced all you need to do is call on the 26-Eour /ustomer Ser%ice .umber, your card ill be immediately blocked to secure your money and a replacement card ill be sent to you upon re$uest" ,s a cardholder you can also access MisaGs Global /ustomer ,ssistance Ser%ice 9G/,S:, hich can be used to report a lost or stolen card, !et emer!ency cash assistance or emer!ency card replacement and make in$uiries 9char!es applicable:" Insurance #he /ards comes ith a /omprehensi%e #ra%el Insurance to pro%ide you the peace of mind hen you tra%el abroad" #he Insurance co%er becomes a%ailable to you upon payment of the /ard Issuance fee" Kou also !et insurance co%era!e e$ui%alent of upto 7s 2,00,000 for <oss of /ard from the time you report the loss to us" Please note that it is mandatory to lod!e a Police /omplaint'=I7 for makin! a claim in the e%ent of loss and misuse of the card" Unuti"ised >a"ance /hoose your option refill or refund or transfer to a dollar account" Ahen you return from your trip, you can choose to 1" Get your balance on the card encashed 2" #ransfer it to a 7esident =orei!n /urrency Domestic ,ccount 3" 8r simply let the balance on your /ard 9upto P2000 as per 7-I 7e!ulation: remain so that you can use it for any future trips"

47

#he date of e(piry is indicated on the card" Durin! this time you can use your card as many times as you ish" Kou can also refill it on your subse$uent trips" ,ll you need to do is fill in a reload coupon and attach the necessary documents" Kour card ill be reloaded ith additional amount ithin 26 Eours"

Investments
%utua" +unds , Mutual =und is a trust that pools the sa%in!s of a number of in%estors ho share a common financial !oal" #he money thus collected is then in%ested in capital market instruments such as shares, debentures and other securities" #he income earned throu!h these in%estments and the capital appreciations reali&ed are shared by its unit holders in proportion to the number of units o ned by them" #hus a Mutual =und is the most suitable in%estment for the common man as it offers an opportunity to in%est in a di%ersified, professionally mana!ed basket of securities at a relati%ely lo cost" 8ur 8fferin! ,s ,(is -ank =inancial ,d%isory team, e adopt a stron! research dri%en recommendation model to help you choose the best funds based on $ualitati%e and $uantitati%e parameters" ,part from this, a dedicated 7elationship Mana!er can also be assi!ned to you to ensure that your in%estment re$uirements are taken care of, smoothly and efficiently" 8ur ad%isors understand your profile and lead you throu!h a structured financial plannin! process to de%ise financial solutions best suited to you" #he ad%isors ill also help you choose the ri!ht in%estment products in line ith your in%estment !oals" Advanta/es of investin/ in %utua" +unds Professiona" %ana/ement ,sset Mana!ement /ompanies 9,M/: are mana!ed by professionals and carry out the speciali&ed in%estment acti%ity" $iversification Di%ersification amon! a number of in%estments helps reduce the risk of any sin!le holdin!" *onvenient Administration

48

#he facility of makin! in%estments throu!h ser%ice centers as Internet ensures con%enience" Return Potentia"

ell as throu!h the

-y allocatin! the ri!ht asset mi( Mutual =unds offer a chance of hi!her potential returns" #he hi!h concentration of risky assets ould lead to a hi!her return and %ice-%ersa" 1o= *osts Gi%en its si&e, an ,M/ ould be in a position to ne!otiate better brokera!e terms for the sale and purchase of its in%estments" 1iFuidity 8pen-ended schemes offer li$uidity throu!h on-!oin! sale and repurchase facility" #hus the in%estor does not ha%e to orry about findin! a buyer for their in%estments" 2ransparency Information a%ailable throu!h fact sheets, offer documents, annual reports and promotional materials helps pro%ide the in%estor ith the kno led!e about their in%estments" +"exi>i"ity Mutual =unds offer fle(ibility in terms choosin! a scheme that matches the in%estment to an in%estorGs in%estment ob*ecti%e" *hoice of Schemes #he in%estors can chose from %arious kinds of schemes a%ailable to them" #he in%estors ith a hi!her appetite for risk can !o for more a!!ressi%e schemes hile those needin! a fi(ed sum e%ery month can !o for MIPs and so on" 2ax Benefits =or e$uity funds, di%idends recei%ed from e$uity schemes of Mutual =unds 9i"e" schemes ith e$uity e(posure of more than 21N: are completely ta(-free" .either does the Mutual =und ha%e to pay di%idend distribution fee nor does the in%estor ha%e to pay income ta(" 2ypes of +unds By Structure Open 0nded

49

#hese are schemes that do not ha%e a fi(ed maturity" #he mutual fund ensures li$uidity by announcin! sale and repurchase price for the unit of an open-ended fund" *"ose 0nded #hese are schemes that ha%e a fi(ed maturity" #he money of the in%estor is locked in for the period" 8ccasionally, closed-end schemes pro%ide a re-purchase option to the in%estors, either for a specified period or after a specified period" <i$uidity in these schemes is pro%ided throu!h listin! in a stock marketB ho e%er this option is not yet a%ailable in India" By Investment O>jective 0Fuity Schemes 0$uity schemes primarily in%est in shares" -ased on the ob*ecti%e in%estments could be in !ro th stocks here earnin!s !ro th is e(pected to be hi!h or %alue stocks here the %ie of the fund mana!er is that current %aluations in the markets do not reflect the intrinsic %alue" 6arious kinds of eFuity schemes are 0Fuity $iversified ,ll non-theme and non-sector funds can be classified as e$uity di%ersified funds" %id *ap #hese funds in%est in companies from different sectors" Eo e%er they put a restriction in terms of the market capitali&ation of a company, ie, they in%est lar!ely in -S0 Mid /ap Stocks" 01SS 0<SS is an open-ended e$uity !ro th scheme that is offered by mutual funds in line ith e(istin! 0<SS !uidelines" #he in%estments under this type of scheme are sub*ect to a lock-in period of 3 years and, as per the =inance ,ct 2001, are allo ed the benefit of income deduction up to 7s 1, 00,000" 2hematic #hese schemes in%est in %arious sectors but restrict themsel%es to a particular theme e!, ser%ices, e(ports, consumerism etc" Sector Specific #hese are schemes that in%est in a particular sector for e(ample I#" #hey ha%e a hi!h de!ree of risk associated ith them as if that particular sectors does not perform then their returns ill suffer"

50

+"exicap #hese kinds of schemes in%est across market caps"

$e>t or Income Schemes Such a fund in%ests in interest bearin! securities mainly !o%ernment securities and corporate bonds" #his fund earns returns for its in%estors from interest income on its in%estments and profits on tradin! securities" In terms of risk, this type of fund is the least risky" %oney %arket Schemes #hese schemes in%est in short term debt instruments issued by the !o%ernment, corporate or banks" #hese are typically in%estments in short term papers like the /Ps and /Ds etc"

4y>rid Schemes

Ba"anced Schemes -alanced schemes in%est in a mi( of e$uity and debt" #he debt in%estments ensure a basic interest income, hich the fund mana!er hopes to top ith a capital !ain from the in%estment in e$uities" Eo e%er loses can eat into basic interest income and capital" %onth"y Income P"ans MIPs are suitable for conser%ati%e in%estors ho alon! ith an e(posure to debt do not mind a small e(posure to e$uities" #hese funds aim to pro%ide consistency in returns by in%estin! a ma*or part of their portfolio in debt market instruments ith a small e(posure to e$uities" #hus an MIP ould be suitable for conser%ati%e in%estors ho alon! ith protection of capital seek some capital appreciation as MIPs ha%e an e(posure to e$uities" Eo e%er the monthly income is not assured"

+reFuent"y Used 2erms .et Asset 6a"ue !.A6) .et ,sset Malue is the market %alue of the assets of the scheme minus its liabilities" #he per unit .,M is the net asset %alue of the scheme di%ided by the number of units outstandin! on the Maluation Date" Sa"e Price Price paid called 8ffer Price" hile in%estin! in a scheme" May include sales load" ,lso

1oad #his is the price of buyin! a unit" Most funds sell units at a premium to its underlyin! net asset %alue, and purchase them at the net asset %alue" Ahen the fund company char!es a load hen it sells units, it is called entry load" Ahen it

51

char!es a load at the time of buyin! the units back from an in%estor, it is called e(it load" Repurchase Price 7epurchase Price is the price at hich a close-ended scheme repurchases its units" May include -ackend load" ,lso called -id Price" Redemption Price 7edemption Price is the price at hich an open-ended scheme repurchases its units and a close-ended scheme redeems its units on maturity" Prices here are .,M related" Sa"es 1oad Sales <oad is the char!e collected by a scheme hen it sells its units" ,lso called =ront 0nd <oad" Schemes that do not char!e a load are called .o <oad Schemes" Repurchase or KBack'endK 1oad 7epurchase or G-ack-endG <oad is a char!e collected by a scheme hen it buys back the units from the scheme" SIP or Systematic Investment P"an refers to the practice of in%estin! a constant amount re!ularly, !enerally e%ery month" SIP ensures that the in%estorsG ac$uisition costs are appro(imated to the a%era!e .,M, as hen the market ill !o up more units ill be bou!ht and hen the markets come do n fe er units ill be bou!ht" Eo e%er it does not offer protection from losses" S3P #his is a mirror ima!e of an SIP only here the in%estor ithdra s a constant amount re!ularly" #his is a!ain aimed at !ettin! a%era!in! effect mentioned abo%e" $ividend versus #ro=th ,mon! the in%estors ho subscribe to a scheme some mi!ht ant a re!ular flo of income hile others mi!ht prefer their income from the scheme to !ro ithin the scheme itself" #he di%idend option caters to the first kind of in%estors by offerin! the in%estors di%ided at re!ular inter%al" 0ach time the di%idend is declared the .,M of the scheme ill fall" #he !ro th option is for the second kind of in%estors" Institutiona" versus Re/u"ar #here is a si!nificant difference bet een time and cost implications bet een ser%icin! one in%estor ho has in%ested 7s 1 crore and ser%icin! 1,000 in%estors ho ha%e each in%ested 7s 10,000 althou!h the ,?M is same for both the cases" #hus funds differentiate bet een the classes of in%estors on the abo%e !rounds by offerin! different options or plans of the same scheme to different kinds of in%estors" #he institutional plan bein! offered to the bi! in%estors and re!ular for the small"

0Fuity 1inked Savin/ Scheme 0$uity <inked Sa%in! Scheme 90<SS: 0$uity <inked Sa%in! Scheme is an open-ended e$uity !ro th scheme that is offered by mutual funds in line ith e(istin! 0<SS !uidelines" #he in%estments under this type of scheme are sub*ect to a lock-in period of 3 years and, as per the =inance ,ct 2001, are allo ed the benefit of income deduction up to 7s" 1,00,000" 0<SS offers the benefits of ta( sa%in! and capital !ains" Instead of spreadin! your in%estments across different instruments such as PP=, 0<SS, .S/ and

52

infrastructure bonds, you can no Sec ;0/ in 0<SS" Advanta/es of 01SS

in%est the entire limit of 7s" 100,000 a%ailable under

<ock-in for three years pre%ents unnecessary ithdra als and allo s your money to !ro o%er a period of time In%estments in e$uity o%er a lon!-term deli%ers better returns than that of other sa%in!s instruments and similar to other e$uity schemes #a( sa%in!s and hi!h returns =le(ibility to In%est in small amounts throu!h a Systematic In%estment Plan

Systematic Investment P"an Systematic In%estment Plan 9SIP: is a con%enient ay to accumulate ealth in a disciplined manner o%er a lon!-term period" It helps you to in%est re!ularly in small installments and thereby build ealth o%er a period of time" SIP is a method of in%estin! in a mutual funds scheme" Mutual fund schemes are offered by the ,sset Mana!ement companies 9,M/: to customers throu!h a distributor" #he -ank acts as a distributor of Mutual =und products for the ,M/ to the customers" , customer antin! to in%est in a mutual fund scheme can a%ail of the Systematic In%estment Plan option throu!h ,(is -ank" Advanta/es of SIP Po=er of *ompoundin/ SIP helps you to start in%estin! at an early a!e to meet the !reater e(penses of your life" Sa%in! a small sum of money re!ularly makes money ork ith !reater po er of compoundin! ith si!nificant impact on ealth accumulation" 7upee /ost ,%era!in! SIP minimi&es the effects of in%estin! in %olatile markets" It helps you a%era!e out your cost by !eneratin! superior returns in the lon! run" It reduces the risk associated ith lump sum in%estments" Since you !et more units hen the .,M drops and fe er hen it rises, the cost a%era!es out o%er time #hus the a%era!e cost of your in%estment is often reduced" *onvenience and Re/u"arity SIP !i%es you the con%enience to pay throu!h ,(is -ank 0lectronic clearance ser%ice 90/S: or ,uto Debit" Kou can decide the amount and the mutual fund scheme" , fi(ed amount ill automatically !et debited from your account on a date specified by you" Disciplined approach to ards in%estment Since you in%est re!ularly, it makes you disciplined in your sa%in!s, hich leads to ealth accumulation" Disciplined in%estin! is %ital to earnin! !ood returns o%er a lon!er

53

time frame" 4o= to invest in SIP? Step & Select a mutual fund scheme of your choice ith the payment option as SIP Step 9 Decide the In%estment periodicity 9fre$uency of makin! payments:" Kou can choose to make your in%estment on a monthly or $uarterly basis" Step ( Select the minimum in%estment amount" =or instance, if you choose to in%est 7s 12,000 e%ery year ith a monthly SIP 8ption" #herefore you ould be in%estin! 7s 1,000 e%ery month in your fund" -y the end of a year, you ould ha%e in%ested 7s 12,000 in your fund" Step I #he amount !ets con%erted into units, dependin! on the .et ,sset Malue 9.,M:" .,M is the market %alue per unit of a fund" If the .,M in the first month is 7s 20, you ill !et 10 units" Similarly in the ne(t month if the .,M is 7s 21, you ill !et 60 units" #he follo in! month if the .,M is 7s 1;, then you ill !et 11"12 units" So, after three months, you ould ha%e 161"12 units" 8n an a%era!e, you ould ha%e paid around 7s 21 per unit" Step G #he units !et accumulated o%er a period of time" Kou can stay in%ested till the time you ish and redeem your units hen you ish to e(it from the scheme" #he units are redeemed at the market %alue 9.,M: and you !et back your money ith returns" =or in%estin! in SIP, all you need to do is %isit your nearest ,(is -ank branch and *ust fill up a simple application form" Kou can also fill in your personal details on the J,pply .o J link on our ebsite and our relationship mana!er ill !et in touch ith you shortly"

Payments &) Bi"" Pay ,(is -ankGs -ill Pay ser%ice enables you to make secure payments from the comfort of your home or office" So its time to say !oodbye to late payment fines, lon! $ueues, lost bills, and commissions paid to local errand boys" 9) 0"ectronic *"earin/ Service 0/S is an electronic clearin! system that facilitates paperless credit ' debit transaction directly linked to your account and also pro%ides for a faster method of effectin! periodic and repetiti%e payments" () Out=ard Remittance Send money abroad in a secure and con%enient ay" ,(is -ank offers 8ut ard 7emittance facilities enablin! you to remit money abroad throu!h reliable and $uick

54

transactions" Send money abroad for reasons more than one@ education, medical purpose, !iftin!, maintenance for lo%ed ones or donation for a cause"

I) 2ax e'Payments Kou can pay your Income ' 8ther Direct #a(es, as ell as /entral 0(cise + Ser%ice #a(T throu!h i*onnect from your account online and !et on-line ackno led!ement of the payment by ay of a /yber 7eceipt, includin! /hallan Identification .umber 9/I.: immediately after makin! the payment" G) $irect 2ax Payment #he assessees or ta(payers can pay Income or 8ther Direct #a(es as listed belo at 216 authorised branches of ,(is -ank across the country and also by online mode throu!h Ge-PaymentG =acilityG in case they maintain ,ccounts ith ,(is -ank" Other Services &) Prepaid %o>i"e Rechar/e Aith ,(is -ankGs mobile rechar!e facility, you no lon!er ha%e to orry about losin! your mobile connecti%ity anytime of the day or ni!ht" ,(is -ankGs prepaid mobile rechar!e facility enables you to rechar!e your mobile o%er the internet" .o all ,(is -ank customers can use their Sa%in!s -ank ,ccount to rechar!e their prepaid mobile phone instantly usin! i*onnect" #he process of rechar!in! is hassle free and instantaneous" #he facility can be used by all Internet -ankin! users netsecure" 4o= does it =ork? #o a%ail this facility, all you need to do is follo the steps !i%en belo @ ho ha%e re!istered for

Kou ha%e to simply lo! in to i/onnect usin! his lo!in ID and pass ord to access this facility" Kou can see the follo in! options in the menu under Mobile 7echar!e@ 7echar!e mobile 7e!ister mobile number /heck status Mie re!istered mobile

#o start rechar!in!, you ha%e to do the follo in!@ 7e!ister the mobile number by clickin! on the J7e!ister Mobile numberJ option" =or security purposes, this option is .etsecure enabled" Kou can

55

re!ister as many numbers as you ant" /lick on J7echar!e mobileJ option and start rechar!in! the re!istered mobiles" Kou ha%e to enter lo!in id and transaction pass ord to complete the transaction"

Kou can %ie re!istered mobile numbers throu!h JMie re!istered mobileJ and check the status of past rechar!es throu!h Jcheck statusJ options" Important Points #he facility is a%ailable only for Prepaid Mobile Phones" Kou ha%e to enter the correct mobile numberB ,(is -ank ill not be responsible for the correctness of the mobile number bein! entered by the user" ,(is -ank sends a rechar!e re$uest to mobile operator for the amount entered by the customer" Kou ha%e to check ith the mobile operator for increase in talk-time limit and %alidity period on the rechar!e amount" 8n successful top up, mobile operator ill send the confirmation throu!h SMS ithin 11 minutes" In case you do not recei%e any confirmation, you ha%e to check ith the mobile operator" 0%en on successful debit of the rechar!e amount from the account, if the talk-time limit does not increase for any reason, the rechar!e amount ill be refunded to your account ithin 6 orkin! days"

1imits on 2ransactions 7echar!e <imit per transaction - 7s 1,000 7echar!e <imit per mobile number per day - 7s 3,000 #ime bet een t o consecuti%e rechar!es - 11 minutes

9) 1ocker $etai"s re/ardin/ "ockers in Axis >ank ' In ,(is bank locker facility cannot be pro%ided to all the customers because there is more demand and less supply of lockers in the bank" In other ords, customerCs credibility is kept in mind hile pro%idin! this facility" #here are t o ays to operate the locker @ 1: Foint H In this type of locker, si!nature of all the persons in hose names the locker has been allocated, are mandatory each time the locker needs to be operated" 2: 8ther H In this type of locker, si!nature of any one person out of all the holders to a locker is sufficient at the time of operatin! the locker" $ocuments @-

56

Identity proof and address proof is re$uired to open the locker" In one year, it is necessary to operate the locker at least once other ise the bank may ithdra this facility from the concerned customer" It is not possible for a customer to !et his locker transferred to another branch of the bank" In this case he ill ha%e to open a ne locker in the other branch and submit all the re$uired documents once a!ain for this purpose" Ahen the locker holder ants to operate his locker then he has to si!n the re$uired documents in the bank, follo ed by the bank %erifyin! his si!nature and photo!raph a!ainst those present in its records" -ank char!es an annual maintenance fees from the customer" #his amount is decided in accordance ith the si&e of the locker pro%ided and may ran!e from 7s"1000 to 2000"

() On"ine Shoppin/ Safe and Secure Internet Payment ,(is -ank offers you the con%enience of shoppin! at many ma*or 8nline stores from the comfort of your home or office" ,ll you need is an internet enabled P/" Kou can choose + then !et the items deli%ered at your doorstep" Kou can also a%ail of numerous online ser%ices, !et to kno about the current special offers'discounts and !et a pre%ie of the ne items added on to the shel%es by these online retailers'ser%ice pro%iders" Kou can shop as much as you like and con%eniently make instant payments by debitin! your account throu!h the secured payment channel, i/onnect - 8ur internet bankin! platform" I) 0'Statement ,(is -ank offers the facility of 0-Statement" 0-Statement is secure and electronic ay to recei%e statement of accounts from the -ank" Advanta/es Prompt deli%ery Person specific deli%ery .o hassle of physical record maintenance Monthly statements on email id ithin a eek of the follo in! month

57

 Pass ord protected for security

*4AP20R 'I R0S0AR*4 %024O$O1O#7

7esearch methodolo!y is a ay to systematically sol%e the research problem" It may be understood as a science of studyin! ho research is done scientifically" Ahen e talk about research methodolo!y e not only talk of the research methods but also consider the lo!ic behind the methods e use in the conte(t of our research study and e(plain hy e are usin! a particular method or techni$ue so that research results are capable of bein! e%aluated either by the researcher himself or by others"

I,& R0S0AR*4 OB<0*2I60 PRI%AR7 OB<0*2I60

#his particular study as desi!ned ith the ob*ecti%e of 0va"uatin/ and ana"y@in/ the success of Priority Bankin/ Products and Services of Axis Bank #he Primary O>jectives of the study are as follo s@

58

L ?nderstandin! the concept of Priority -ankin!" L ?nderstandin! the %arious promotional measures taken by the -ank for promotin! Priority -ankin!" L ,ssessin! the !ro th in the total %olume"

S0*O.$AR7 OB<0*2I60
L Determinin! the position of ,(is -ank %is-a-%is its competitors"

I,9 R0S0AR*4 $0SI#.

7esearch desi!n stands for the plannin! of methods to be adopted for collectin! the rele%ant data and techni$ues to be used in their analysis "It is a plan in ad%ance for data collection and analysis and is needed for the research report" #he o>jective of the study as formulated before commencin! the research" #he samp"e si@e as not decided in ad%ance as the population as co%ered for a ne concept WPriority -ankin!X" #he research type follo ed in the study is exp"oratoryE ana"ytica" and descriptive in hich specific forecastin! and narration of facts is !athered" #he type of data used durin! research is Primary as ell as Secondary $ata" #he method of data collection as decided in ad%ance and a ri!id procedure as follo ed for the collection of data, such as preparin! Fuestionnaire in a manner so as to a%oid redundancy and not missin! any of the important part" .e=spapers and Internet has been e(tensi%ely used for data collection"

59

I,( SA%P10 $0SI#.

2ype of Universe ,s many customers ho are comin! to the -ank for a%ailin! Priority Ser%ices" Samp"in/ Unit 1 -ranch is taken into ,ccount- Gur!aon, Sector-16 -ranch" Samp"in/ procedure Since the total area of interest is a bi! one and the concept is still under promotional sta!e, e select a branch here customers from almost e%ery financial back!round" #hus, >uota Samplin! is the most appropriate samplin! techni$ue in this study" .umber of customers comin! to the -ank@ Sample si&e of customers n Y 31

60

I,I Scope of the Study

0ach and e%ery pro*ect study alon! ith its certain ob*ecti%es also ha%e scope for future" ,nd this scope in future !i%es to ne researches a ne need to research a ne pro*ect ith a ne scope" Scope of the study not only consist one or t o future business plan but sometime it also !i%es idea about a ne business hich becomes much more profitable for the researches then the older one" Scope of the study could !i%e the pro*ected scenario for a ne successful strate!y ith a proper implementation plan" Ahate%er scope I obser%ed in my pro*ect are not e(actly ha%in! all the features of the scope hich I described abo%e but also not lackin! all the features" 7esearch study could !i%e an idea of net ork e(pansion for capturin! more market and customer ith better ser%ices and lo er cost, ith out compromisin! ith $uality" In future customer re$uirements could be added !ettin! an ed!e o%er competitors" ith the product and ser%ices for

/onsumer beha%ior could also be used for the purpose of launchin! a ne product ith e(tra benefits hich are re$uired by customers for their account 9sa%in! or current : and'or for their in%estments" =actors hich are responsible for the performance for bank can also be used for the

61

modification of the strate!y and product for bein! more profitable"

I,G 1I%I2A2IO.S
L 8nly population of a -ranch at Gur!aon as sur%eyed so that report cannot be depended upon for other areas" L /ustomers are least interested in fillin! up the $uestionnaire" L <imited no" of customer %isits the bank" -ein! priority customers, the customers prefer doorstep ser%ices" L /ustomers are not ready to ans er sub*ecti%e $uestions" L Data a%ailable on the ebsites is not up to date"

62

*4AP20R ' G $A2A *O110*2IO.

*o""ection - =rom the sample of 31 customersC data has been collected re!ardin! their e(perience ith the priority bankin! se!ment, usin! a $uestionnaire hich has been filled by me on my system" $ata Sources Primary as ell as secondary data has been collected"

Sources of *o""ectin/ Primary and Secondary $ata

=or the purpose of pro*ect, data is %ery much re$uired hich orks as a food for process hich ill ultimately !i%e output in the form of information" So before mentionin! the source of data for the pro*ect I ould like to mention that hat type of data I ha%e collected for the purpose of pro*ect and hat it is e(actly"

63

G,& Primary $ata It is the data collected first hand relatin! to specific $ueries and problems" Its main ad%anta!e is that the information is up-to-date" 8n the other hand, it is e(pensi%e and time consumin!" Primary data is basically the li%e data hich I collected hile doin! cold calls ith the customers and I sho n them list of $uestion for hich I had re$uired their responses" In some cases I !ot no response form their side and than on the basis of my pre%ious e(periences I filled those fields" Source Main source for the primary data for the pro*ect as Fuestionnaires hich I !ot filled by the customers or some times filled myself on the basis of discussion ith the customers" G,9 Secondary $ata It is the information hich has been already collected for other purposes and is readily a%ailable in some form" Its ad%anta!e is that it is readily a%ailable and cheap hile its disad%anta!e is that the data may be irrele%ant" Sources of co""ectin/ Secondary $ata Internal Sources =inancial books from %arious libraries pro%idin! information on bankin! sector" .e spapers like 0conomic #imes, =inancial 0(press etc" pro%idin! %arious articles on the bankin! sector and priority bankin!

*4AP20R ' : +I.$I.#S A.$ A.A17SIS

A.A17SIS
#o determine the a!e !roups of Priority /ustomers"

64

+I.$I.#S
#he a!e !roup of consumers ere di%ided into 6 !roups i"e" 20-30, 30-60, 60-10 and 10 + abo%e" 8ut of 31 consumers 5"4N belon! to 1st !roup,15"6N belon! to 2 nd !roup, 21";N belon! to 3rd !roup and 61"2N belon! to 6th !roup"

A.A17SIS
#o identify the $ualification of the Priority /ustomers"

0ducational >ualification of the

65

/ustomer Matriculatio ProfessionaPost Graduate +I.$I.#S

8ut of 31 priority customers, ma(imum customers are Post-Graduate and the minimum le%el of $ualification is Matriculation" #his means, ma*or part of the Priority /ustomers are ell educated and thus, can perform their bankin! transactions %ia e-mails and other modern techni$ues" A.A17SIS #o identify the 8ccupation of the Priority /ustomers"

66

+I.$I.#S #he abo%e !raph sho s that almost customers from e%ery field ould like to ha%e preference as far as their bankin! transactions are concerned and ant to a%ail the benefits of priority bankin!"

A.A17SIS #o identify the ,nnual Eousehold Income of the Priority /ustomers"

67

+I.$I.#S 8ut of 31 !eneral mobile users, ma(imum customers are from the income !roup of 10 lakhs or belo , there are %ery less customers ho earns more than 7s" 20 lakhs annually as income"

A.A17SIS #o determine the Ser%ice Satisfaction from the 7elationship Mana!er"

68

+I.$I.#S #he sur%ey states that ma(imum customers under Priortiy -ankin! are some hat satisfied from the ser%ices !i%en by their 7elationship Mana!ers" #here are %ery %ery less customers ho marked their dissatisfation from the ser%ices rendered by the 7elationship Mana!ers"

A.A17SIS #o determine the most demanded Ser%ice of ,(isCs Priority -ankin!"

69

+I.$I.#S ,ll the customers ould like to use plastic money, thus hold ,#Ms and /redit /ards" 8ther than this, customers ha%in! fi(ed deposits ould like to a%ail the facility of priority bankin!" A.A17SIS #o determine the stren!ths of the 7elationship Mana!ers"

70

1 10 11 20 Stren!ths +I.$I.#S 8ut of 31 customers, 25 thinks that 7elationship Mana!ers are ise and 20 says the 7elationship Mana!ers ha%e the )no led!e of the products they are offerin!, the 7Ms are spontaneous and fairly ha%e decision takin! skills too"

A.A17SIS #o identify the eaknesses of the 7elationship Mana!ers"

71

+I.$I.#S Ma(imum customers say that the 7Ms ha%e Aeak Persentation Skills ith this they ha%e less customer contact and do not do re!ular follo -ups"

A.A17SIS #o determine the type of -ankin! /ustomers prefer" +I.$I.#S 8ut of 21 customers 11 of them use pre-paid connections and 10 use post paid connections"

A.A17SIS #o determine the a%era!e rankin! of the 7elationship Mana!ers" 07ankin! +I.$I.#S 8ut 31 customers sur%eyed, 12 rate their 7Ms at 3 on the scale of 1 may be due to the eaknesses mentioned abo%e " #here are customers ho rate their 7Ms to ards the ma(imum ratin! 0f 6 + 1"

A.A17SIS

72

#o analy&e the Promotional part of Priority -ankin!"

+I.$I.#S .early all the Priority /ustomers came to kno about the Priority -ankin! %ia ,(is -ankCs Aelcome )it" #his sho s that ,(is -ank is not usin! or usin! %ery little promotional measures other than their o n elcome kits"

A.A17SIS

73

#o determine the $uality of relationship ith ,(is -ank" 7elationship >uality

0(cellent Good ,%era!e =air Poor +I.$I.#S Ma(imum customers are happy ith the ay they are !ettin! ser%ices and the $uality of the relationship they ha%e ith the ,(is -ank" ,lmost e%eryone rates the 7elationship >uality ith ,(is -ank bet een 0(cellent, Good + ,%era!e"

A.A17SIS

74

#o determine the other ser%ices used by the ,(is -ankCs customers from other -anks" +I.$I.#S 0(istin! Priority /ustomers are also a%ailin! different ser%ices from -anks other than ,(is -ank" Ma*or protion of the ser%ices a%ailed is co%ered by =i(ed Deposits and Demat ,ccounts"

A.A17SIS #o determine the Professional Ser%ices re$uired by customers" +I.$I.#S 13 out of 31 customers re$uire a =inancial ,d%isor and Porfolio Mana!er, ho can ad%ise them ith their in%estments" -usinessmen re$uire the ser%ices of /hartered ,ccountant"

A.A17SIS #o determine the fre$uency of %isits to the -ank by Priority /ustomers" +I.$I.#S Mana!ement professionals, retired customers and ser%ice class customers are the one ho hardly !o to the banks for performin! any transactions and customers from business class are the one ho %isit bank %ery fre$uently"

*4AP20R ' B

75

R0*O%%0.$A2IO.S
,s the research as conducted ith the ob*ecti%e of understandin! the concept of Priority -ankin! launched by ,(is -ank, customerCs e(pectations from the priority ser%ices and su!!estin! the remedial course of action for ,(is -ank in re!ards to Priority -ankin!" Recommendations made L #he tar!et customers should be customers from all a!e !roups and specifically from the a!e !roup of 10 + abo%e, as these customers, due to their a!e constraints, ould like to ha%e ser%ices ithout %isitin! the bank" L #he 7elationship Mana!ers should impro%e their Presentation skills, should do re!ular follo -ups and should impro%e decision takin! skills as ell" L ,(is -ank should start usin! some more Promotional Measures other than its o n Aelcome )it" Aelcome )it ill only tar!et the e(istin! customers but not the !eneral public" #he bank should opt for the follo in! promotional measures@ - -rand ,mbassador - ,d%ertisements- #ele%ision and .e s Papers - Eoardin!s L #he company should aim at impro%in! the Promotion of Priority -ankin! Se!ment of ,(is -ank" L Demat and =i(ed deposits are the ser%ices hich the e(istin! customers of ,(is -ank are a%ailin! from other -anks as ell" #he bank should ork to capture these t o markets as ell so as to increase its o%erall %olume" L #he /ustomers are also a%ailin! ser%ices of Professionals like =inancial ,d%isors, Portfolio Mana!ers and /hartered ,ccountants from outside" #o !rab some more customers ,(is -ank should think of pro%idin! these ser%ices as ell" L #he /redit !i%in! re!ulations of ,(is -ank is $uite strin!ent, hich, on one hand pullin! the .P,s do n but also affectin! the bankCs credit business" L Proper trainin! should be !i%en to the staff so that the staff can impro%e their skills" L #he problem of Pin /odes is the ma*or problem as far as i-connect bankin! is concerned" #here is a hu!e scope to impro%e this particular area at ,(is -ank" L #he do n!radin! limit of the Priority /ustomers should be either reduced or

76

some more pro%isions should be kept to attract the ne the e(istin! ones"

customers and retain

L If the !ood amount of =i(ed Deposits are their in the -ank of a particular customers than the limit of 7s" 1,00,000 minimum balance for a priority account should be made fle(ible" L #he facility of Deli%ery'pickup of /ash'che$ue should be impro%ised so as to remo%e this limitation as compared to Standard /hartered -ank" L #he ,#M ithdra al per day limit should also be re%ised from 7s" 10, 000'per day as ,-. ,M78 -ank is offerin! 7s" 1,00,000'- per day ithdra al limit"

*4AP20R ' C

BIB1IO#RAP47
"a(isbank"com ikipedia"or!' iki',(isZ-ank "moneycontrol"com'india'"""'banks"""'a(is-bank',-12

connect"in"com'profile',(isZ-ank'2525;3 money"rediff"com'companies'a(is-bank-ltd'"""'balance-sheet in"reuters"com'money'$uotes'incomeStatementQsymbol "financiale(press"com'ne s'"""-ank""",(is--ank'2042;;'

*4AP20R ' D PU0S2IO..AIR0 77

Puestionnaire for Priority Bank *ustomers

.ame@ ,!e [ -elo 20 yrs" [ 20-30 yrs" [ 30-60 yrs" [ 60-10 yrs" [ 10 yrs" and abo%e [ Matriculation [ ?nder!raduate [ Graduate [ Professional [ Post- Graduate [ Mana!ement Professional [ Medical Practitioner [ Ser%ice [ /","'/"S"'<a yer [ -anker [ -usinessman [ 8thers\\\\\\\\\\"" [ upto 7s"10 <akhs [ 7s" 10-20 <akhs [ 7s" 20-30 <akhs [ 7s" 30-60 <akhs [ 7s" 60 <akhs + abo%e [ Mery satisfied [ Some hat satisfied [ .either satisfied nor dissatisfied [ Some hat dissatisfied [ Dissatisfied [ Aise [ Dedication [ Spontaneous [ Decision #akin! Skills [ )no led!e about the products [ Aeak presentation Skills [ <ess )no led!e about the products [ .o re!ular follo -ups [ <ess customer contacts [1 [2

0ducation

8ccupation

Kour appro(imate annual household income

Eo satisfied are you ith the ser%ices you recei%ed from your 7elationship Mana!erQ

Ahat are the stron! points of your 7elationship Mana!erQ

Ahat are the eaknesses of your 7elationship Mana!erQ

7ate your 7elationship Mana!er on the scale of 1

78

1- Ei!hest R%e 1- <o est -%e Eo satisfied are you ith the speed in hich the ser%ices' products are deli%eredQ

[3 [6 [1 [ Mery satisfied [ Some hat satisfied [ .either satisfied nor dissatisfied [ Some hat dissatisfied [ Dissatisfied [ ,(is -ankCs Aelcome )it [ =riends [ 7elati%es [ Promotions [ Aalk-ins [ Mery 0asy [ 0asy [ Difficult [ Mery Difficult [ Kes [ .o [ 0(cellent [ Good [ ,%era!e [ =air [ Poor [ ,#M /ards [ -onds [ /ar <oans [ /redit /ards [ /urrent ,ccount [ =i(ed Deposits [ 8thers\\\\\\\\\\"" [ <oans [ Demat [ Sa%in!s ,ccount [ =i(ed Deposits [ /urrent ,ccount [ .o other ,ccount [ 8thers\\\\\\\\\\"" [ /hartered ,ccountant [ =inancial ,d%isor [ Portfolio Mana!er

Kou came to kno about Priority -ankin! %ia@

Eo easy as it to find the information on the schemeQ

Aould you recommend your friends'relati%es for Priority -ankin! Ser%ices of ,(is -ankQ Eo do you rate the o%erall $uality of your relationship ith ,(is -ank, considerin! all of your e(periences ith themQ Do you ha%e any other relationship ith ,(is -ankQ

Do you ha%e an account ith other bank9s:Q

Do you use the ser%ices of @

79

[ .ot 7e$uired Ahich of the follo in! ser%ices do you useQ [ Mobile -ankin! [ Internet -ankin! [ Phone -ankin! [ 7elationship Mana!er

7e Ini*4AP20R ' &A S7.OPSIS A5IS BA.Priority Bankin/

StudentCs .ame@ 7ohit Fain Industry Guide@ Mrs" Priyanka .autiyal- Priority -ankin! =aculty Guide@ Mr" Mipul Sin!h 2he primary o>jective of this pro*ect as to understand the concept of priority bankin! and promotional measures used by ,(is -ank" ,nd su!!estin! remedial course of actions for impro%in! this particular se!ment" 2he secondary o>jective is to make a comparison of ,(is -ank ith other competitors and su!!estin! remedial actions" 2he findin/s after doin! the research ork as that the bankCs priority se!ment co%ers the customers from all a!e !roups but customers from a!e !roup of 10 yrs" + abo%e are more attracted to ards priority bankin!" Most customers and $ualified and come from all income !roups + educational back !rounds" /ustomers are some hat satisfied ith the ser%ices !i%en by their 7elationship Mana!ers" #hus, ma(imum customers are interested in performin! any bankin! transaction throu!h their 7elationship Mana!er" #heir ise beha%ior and !ood kno led!e of the products are their stren!ths but they are eak as far as their presentation skills are concerned" /redit cards, ,#M cards and fi(ed deposit are the ma*or ser%ices customerCs opt under priority bankin! because plastics money is todayCs trend and fi(ed deposits help customers to become priority customers" #he promotional measures used by the bank is either its o n elcome kit, hich can only attracts e(istin! customers to the priority se!ment or the pamphlets" 2he conc"usions dra=n on the >asis of the project =ork

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done =ere that L #he tar!et customers should be customers from all a!e !roups and specifically from the a!e !roup of 10 + abo%e, as these customers, due to their a!e constraints, ould like to ha%e ser%ices ithout %isitin! the bank" L #he 7elationship Mana!ers should impro%e their Presentation skills, should do re!ular follo -ups and should impro%e decision takin! skills as ell" Proper trainin! pro!rammes should be or!ani&ed" L ,(is -ank should start usin! some more Promotional Measures other than its o n Aelcome )it" Aelcome )it ill only tar!et the e(istin! customers but not the !eneral public" #he bank should opt for the follo in! promotional measures@ - -rand ,mbassador - ,d%ertisements- #ele%ision and .e s Papers - Eoardin!s L #he /ustomers are also a%ailin! ser%ices of Professionals like =inancial ,d%isors, Portfolio Mana!ers and /hartered ,ccountants from outside" #o !rab some more customers ,(is -ank should think of pro%idin! these ser%ices as ell" L #he /redit !i%in! re!ulations of ,(is -ank is $uite strin!ent, hich, on one hand pullin! the .P,s do n but also affectin! the bankCs credit business" L #he problem of Pin /odes is the ma*or problem as far as i-connect bankin! is concerned" #here is a hu!e scope to impro%e this particular area at ,(is -ank" L #he do n!radin! limit of the Priority /ustomers should be either reduced or some more pro%isions should be kept to attract the ne customers and retain the e(istin! ones" L If the !ood amount of =i(ed Deposits are their in the -ank of a particular customers than the limit of 7s" 1,00,000 minimum balance for a priority account should be made fle(ible" Perception a>out the industry /uide My industry !uide, Mrs" Priyanka .autiyal- Priority -ankin!, is not only the thorou!h professionals but also %ery intelli!ent persons" #hey all ha%e immense kno led!e in their respecti%e fields" #hey ha%e !uided me ith patience and e(plained me the intricacies of the pro*ect, made me a are of my !oals and sho ed me the ay in hich I should achie%e them" #hey not only tau!ht me professionalism but also ha%e been friends, !uides and mentors durin! my period of trainin!" It has bean a pleasure orkin! ith them and I hope that in future also I encounter people of their caliber and patience"

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