CHAPTER -1 INTRODUCTION

1.1 WHAT IS BANK?

1.2 CHARACTERISTICS OF BANK

1.3 HISTORY OF BANKING IN INDIA
1.4 NATIONALIZATION OF BANKS IN INDIA

1.5 DEMERITS, LIMITATIONS - BANK NATIONALISATION IN INDIA

1.6 SCHEDULED COMMERCIAL BANKS IN INDIA

1.7 BANKING SERVICES IN INDIA
1.8 FUTURE OF BANKING IN INDIA

1|Page
1.1 What is Bank?

Finance is the life blood of trade, commerce and industry. Now-a-days, banking sector acts as the
backbone of modern business. Development of any country mainly depends upon the banking
system.

The term bank is either derived from old Italian word banca or from a French word banque both
mean a Bench or money exchange table. In olden days, European money lenders or money
changers used to display (show) coins of different countries in big heaps (quantity) on benches or
tables for the purpose of lending or exchanging.

A bank is a financial institution which deals with deposits and advances and other related services. It receives money
from those who want to save in the form of deposits and it lends money to those who need it.

Definition of a Bank
Oxford Dictionary defines a bank as "an establishment for custody of money, which it pays out
on customer's order."

1.2 Characteristics / Features of a Bank

1. Dealing in Money
Bank is a financial institution which deals with other people's money i.e. money given by
depositors.

2. Individual / Firm / Company

A bank may be a person, firm or a company. A banking company means a company which is in
the business of banking.

3. Acceptance of Deposit

2|Page
A bank accepts money from the people in the form of deposits which are usually repayable on
demand or after the expiry of a fixed period. It gives safety to the deposits of its customers. It
also acts as a custodian of funds of its customers.
4. Giving Advances
A bank lends out money in the form of loans to those who require it for different purposes.

5. Payment and Withdrawal

A bank provides easy payment and withdrawal facility to its customers in the form of cheques
and drafts, It also brings bank money in circulation. This money is in the form of cheques, drafts,
etc.

6. Agency and Utility Services

A bank provides various banking facilities to its customers. They include general utility services
and agency services.

7. Profit and Service Orientation

A bank is a profit seeking institution having service oriented approach.

8. Ever increasing Functions

Banking is an evolutionary concept. There is continuous expansion and diversification as regards
the functions, services and activities of a bank.

9. Connecting Link
A bank acts as a connecting link between borrowers and lenders of money. Banks collect money
from those who have surplus money and give the same to those who are in need of money.

10. Banking Business

A bank's main activity should be to do business of banking which should not be subsidiary to any
other business.

11. Name Identity

3|Page
A bank should always add the word "bank" to its name to enable people to know that it is a bank
and that it is dealing in money.

4|Page
1.3 HISTORY OF BANKING IN INDIA

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. For the past three
decades India's banking system has several outstanding achievements to its credit. The most
striking is its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in
India. In fact, Indian banking system has reached even to the remote corners of the country.The
government's regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private banks of India.

Not long ago, an account holder had to wait for hours at the bank counters for getting a draft or
for withdrawing his own money. Today, he has a choice. Gone are days when the most efficient
bank transferred money from one branch to other in two days. Now it is simple as instant
messaging or dials a pizza. Money has become the order of the day.

The first bank in India, though conservative, was established in 1786. From 1786 till today, the
journey of Indian Banking System can be segregated into three distinct phases. They are as
mentioned below:

 Early phase from 1786 to 1969 of Indian Banks

 Nationalization of Indian Banks and up to 1991 prior to Indian banking sector Reforms.

 New phase of Indian Banking System with the advent of Indian Financial& Banking
Sector Reforms after 1991.

5|Page
1.3 NATIONALIZATION OF BANKS IN INDIA:
After independence the Government of India (GOI) adopted planned economic development for
the country (India). Accordingly, five year plans came into existence since 1951. This economic
planning basically aimed at social ownership of the means of production. However, commercial
banks were in the private sector those days. In 1950-51 there were 430 commercial banks. The
Government of India had some social objectives of planning. These commercial banks failed
helping the government in attaining these objectives. Thus, the government decided to
nationalize 14 major commercial banks on 19th July, 1969. All commercial banks with a deposit
base over Rs.50 crores were nationalized. It was considered that banks were controlled by
business houses and thus failed in catering to the credit needs of poor sections such as cottage
industry, village industry, farmers, craft men, etc. The second dose of nationalisation came in
April 1980 when banks were nationalized.

The nationalisation of commercial banks took place with an aim to achieve following major
objectives.

1. Social Welfare : It was the need of the hour to direct the funds for the needy and required
sectors of the indian economy. Sector such as agriculture, small and village industries
were in need of funds for their expansion and further economic development.

2. Controlling Private Monopolies : Prior to nationalisation many banks were controlled

by private business houses and corporate families. It was necessary to check these
monopolies in order to ensure a smooth supply of credit to socially desirable sections.

3. Expansion of Banking : In a large country like India the numbers of banks existing those
days were certainly inadequate. It was necessary to spread banking across the country. It
could be done through expanding banking network (by opening new bank branches) in
the un-banked areas.

4. Reducing Regional Imbalance : In a country like India where we have a urban-rural

divide; it was necessary for banks to go in the rural areas where the banking facilities
were not available. In order to reduce this regional imbalance nationalisation was
justified:
6|Page
 5. Priority Sector Lending : In India, the agriculture sector and its allied activities were the
largest contributor to the national income. Thus these were labeled as the priority sectors.
But unfortunately they were deprived of their due share in the credit. Nationalisation was
urgently needed for catering funds to them.

6. Developing Banking Habits : In India more than 70% population used to stay in rural
areas. It was necessary to develop the banking habit among such a large population.

1.4 DEMERITS, LIMITATIONS - BANK NATIONALISATION IN INDIA

Though the nationalisation of commercial banks was undertaken with tall objectives, in many
senses it failed in attaining them. In fact it converted many of the banking institutions in the loss
making entities. The reasons were obvious lethargic working, lack of accountability, lack of
profit motive, political interference, etc. Under this backdrop it is necessary to have a critical
look to the whole process of nationalisation in the period after bank nationalisation.

The major limitations of the bank nationalisation in India are:-

1. Inadequate banking facilities: Even though banks have spread across the country; still
many parts of the country are unbanked. Especially in the backward states such as the
Uttar Pradesh, Madhya Pradesh, Chhattisgarh and north-eastern states of India.

2. Limited resources mobilized and allocated: The resources mobilized after the
nationalisation is not sufficient if we consider the needs of the Indian economy.
Sometimes the deposits mobilized are enough but the resource allocation is not as per the
expansions.

3. Lowered efficiency and profits: After nationalisation banks went in the government
sector. Many times political forces pressurized them. Banking was not done on a
professional and ethical grounds. It resulted into lower efficiency and poor profitability of
banks.

4. Increased expenditure: Due to huge expansion in a branch network, large staff

administrative expenditure, trade union struggle, etc. banks expenditure increased to a
dangerous levels.
7|Page
 5. Political and Administrative Inference: Many public sector banks badly suffered due to
the political interference. It was seen in arranging loan meals. It ultimately resulted in
huge non-performing assets (NPA) of these banks and inefficiency.

These are several limitations faced by the banks nationalisation in India.

Apart from this there are certain other limitations as well, such as weak infrastructure, poor
competitiveness, etc.

But after Economic Reform of 1991, the Indian banking industry has entered into the new
horizons of competitiveness, efficiency and productivity. It has made Indian banks more vibrant
and professional organizations, removing the bad days of bank nationalisation.

List of Total Nationalized Banks in India:-

1.Indian bank
2.Indian overseas bank
3.Oriental bank of commerce
4.Punjab national bank
5.Punjab and sindh bank
6.Syndicate bank
7.Union bank of india
8.United bank of india
9.UCO bank
10.Vijaya bank
11.Allahabad bank
12.Andhra bank
13.Bank of baroda
14.Bank of India

8|Page
15.Bank of Maharastra
16.Canara bank
17.Central bank of india
18.Corporation bank
19.Dena bank
20. IDBI bank

1.5 SCHEDULED COMMERCIAL BANKS IN INDIA:

The commercial banking structure in India consists of:

 Scheduled Commercial Banks in India

 Non scheduled Banks in India

Scheduled Commercial Banks in India:

Scheduled Banks in India constitute those banks which have been included in the Second
Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in
this schedule which satisfy the criteria laid down vide section 42 (6) (a) of the Act.

As on 30th June, 1999, there were 300 scheduled banks in India having a total network of 64,918
branches. The scheduled commercial banks in India comprise of State bank of India and its
associates (8), nationalized banks (19), foreign banks (45), private sector banks (32), co-
operative banks and regional rural banks.

"Scheduled banks in India" means the State Bank of India constituted under the State Bank of
India Act, 1955 (23 of 1955), a subsidiary bank as defined in the State Bank of India (Subsidiary
Banks) Act, 1959 (38 of 1959), a corresponding new bank constituted under section 3 of the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970 (5 of 1970), or under

9|Page
section 3 of the Banking Companies (Acquisition and Transfer of Undertakings) Act, 1980 (40 of
1980), or any other bank being a bank included in the Second Schedule to the Reserve Bank of
India Act, 1934 (2 of 1934), but does not include a co-operative bank".

"Non-scheduled bank in India" means a banking company as defined in clause (c) of section 5 of
the Banking Regulation Act, 1949 (10 of 1949), which is not a scheduled bank".

The following are some of the Scheduled Banks in India (Public Sector):

 State Bank of India

 Allahabad Bank

 Bank of India

 Central Bank of India

 Dena Bank

The following are some of the Scheduled Banks in India (Private Sector):

 Axis Bank Ltd

 HDFC Bank Ltd

 Bank of Punjab Ltd

 IDBI Bank Ltd

 ICICI Bank Ltd

The following are some of the Scheduled Foreign Banks in India:

10 | P a g e
  American Express Bank Ltd.

 Bank of Tokyo Ltd.

 Citi Bank N.C.

 Standard Chartered Bank.

Non Scheduled Commercial Banks in India:

Non-Scheduled Bank refers to the banks which are not listed in the Second Schedule of Reserve
Bank of India.

In finer terms, the banks which do not comply with the provisions specified by the central bank,
within the meaning of the Reserve Bank of India Act, 1934, or as per specific functions, etc. or as
per the judgement of the RBI, are not able to serve and protect the depositor’s interest, are known
as non-scheduled banks.

Non-Scheduled Banks are also required to maintain the cash reserve requirement, not with the
RBI, but with themselves. These are local area banks.

1.6 BANKING SERVICES IN INDIA:

11 | P a g e
With years, banks are also adding services to their customers. The Indian banking industry is
passing through a phase of customers market. The customers have more choices in choosing their
banks. A competition has been established within the banks operating in India.With stiff
competition and advancement of technology, the services provided by banks have become more
easy and convenient. The past days are witness to an hour wait before withdrawing cash from
accounts or a cheque from north of the country being cleared in one month in the south.

This section of banking deals with the latest discovery in the banking instruments along with the
polished version of their old systems.

Bank Account:

The most common and first service of the banking sector. There are different types of bank
account in Indian banking sector. The bank accounts are as follows:

 Bank Savings Account - Bank Savings Account can be opened for eligible person /
persons and certain organizations / agencies (as advised by Reserve Bank of India (RBI)
from time to time)

 Bank Current Account - Bank Current Account can be opened by individuals /

partnership firms / Private and Public Limited Companies / HUFs / Specified Associates /
Societies / Trusts, etc.

 Bank Term Deposits Account - Bank Term Deposits Account can be opened by
individuals / partnership firms / Private and Public Limited Companies / HUFs/ Specified
Associates / Societies / Trusts, etc.

 Bank Account Online - With the advancement of technology, the major banks in the
public and private sector has facilitated their customer to open bank account online. Bank
account online is registered through a PC with an internet connection. The advent of bank
12 | P a g e
 account online has saved both the cost of operation for banks as well as the time taken in
opening an account.

Plastic Money:

Credit cards in India are gaining ground. A number of banks in India are encouraging people to
use credit card. The concept of credit card was used in 1950 with the launch of charge cards in
USA by Diners Club and American Express. Credit card however became more popular with use
of magnetic strip in 1970.Credit card in India became popular with the introduction of foreign
banks in the country. Credit cards are financial instruments, which can be used more than once to
borrow money or buy products and services on credit. Basically banks, retail stores and other
businesses issue these.

Loans:

Banks in India with the way of development have become easy to apply in loan market. The
following loans are given by almost all the banks in the country:

 Personal Loan

 Car loan or Auto Loan

 Loan against Shares

 Home Loan

 Education Loan or Student Loan

Personal loan:
A personal loan is a type of unsecured loan and helps you meet your current financial needs. You
don’t usually need to pledge any security or collateral while availing a personal loan and your
lender provides you with the flexibility to use the funds as per your need. It can serve as your
13 | P a g e
solution for managing your travel costs and wedding expenses as well as the expenses of a
medical emergency, home renovation, debt consolidation and others.

Car Loan or Auto Loan:

A car loan is a personal loan that allows the potential buyer to pay the vehicle off in monthly
payments instead of having to pay the full price all at once. This means that a lending servicer or
bank will pay off the car in full, while in return the borrower pays off the debt in monthly
payments with an interest fee included as well.

This type of personal loan may be either a secured or non-secured loan depending on the
situation they are in. But for the most part lenders will usually offer a loan that is secured just in
case the borrower falls behind on their payments and fails to pay off the debt. If the borrower
fails to pay the monthly payments, their lender will repossess the car to pay off the debt. To
qualify for an unsecured loan the borrower must have a very high credit score and also issue a
higher interest rate on the loan as well.

Most of the time lenders will be very quick to offer a secured loan even with bad credit, because
of the fact that the vehicle is used as collateral if the borrower fails to pay. People with a very
low credit rating may be able to take advantage of this loan by paying all the monthly payments
on time. By doing this they will be able to begin restoring their credit score.

Loan against Shares:

Loan against shares and securities is a loan where you pledge your shares, mutual funds or life
insurance policies or bonds as collateral to the bank against your loan amount. These loans are
very useful in times when cash is needed urgently for any personal or business requirement.
Loans against shares are a popular form of getting short or long term loans and the repayment
period extends to up to 36 months. The list of securities against which one can get a loan will
differ from lender to lender and loan amount can range between Rs. 50,000 to Rs.20 lakh.

Home Loan:

14 | P a g e
Loan acquired from a financial institution to purchase a home. Home loans consist of an
adjustable or fixed interest rate and payment terms. Home loans may also be referred to as
mortgage loans.

Student loan or Education Loan:

An education loan is a loan taken to help pay for an education, usually at a college or trade
school, but may also be used to pay for private schools or prep schools as well. These loans are
available in several different types.

These are student loans, parent loans and private loans. Loans are also either guaranteed or
unguaranteed. Student and parent loans are most likely to be guaranteed by the government,
though many agencies work for the government in this respect. Unguaranteed or unsubsidized
loans are usually from private lenders only, and usually can only be obtained if one has a good
credit score or significant equity.

The student loan is usually the best choice education loan for a student whose parents cannot pay
for his or her education. While the student remains in school, interest on this type of loan accrues
and is paid for by the government. When the student stops attending school, the loan is usually
paid off in payments. These payments can be quite large if the loan is large, so students should
borrow only what they need.

Money Transfer:
Beside lending and depositing money, banks also carry money from one corner of the globe to
another. This act of banks is known as transfer of money. This activity is termed as remittance
business. Banks generally issue Demand Drafts, Banker's Cheque, Money Orders or other such
instruments for transferring the money. This is a type of Telegraphic Transfer or Tele Cash
Orders. It has been only a couple of years that banks have jumped into the money transfer
businesses in India. The international money transfer market grew 9.3% from 2003 to 2004 i.e.
from US$213 bn. to US$233 bn. in 2004. Economists say that the market of money transfer will
further grow at a cumulative 12.1% average growth rate through 2018.

15 | P a g e
1.7 FUTURE OF BANKING IN INDIA:
A healthy banking system is essential for any economy striving to achieve good growth and yet
remain stable in an increasingly global business environment. The Indian banking system has
witnessed a series of reforms in the past, like deregulation of interest rates, dilution of
government stake in PSBs, and increased participation of private sector banks. It has also
undergone rapid changes, reflecting a number of underlying developments. This trend has
created new competitive threats as well as new opportunities.

Given the competitive market, banking will (and to a great extent already has) become a process
of choice and convenience. The future of banking would be in terms of integration. This is
already becoming a reality with new-age banks such as YES Bank ICICI Bank, and others too
adopting a single-PIN, OTP facility. Geography will no longer be an inhibitor. Technology will
prove to be the differentiator in the short-term but the dynamic environment will soon lead to its
saturation and what will ultimately be the key to success will be a better relationship
management.

If one were to say that the future of banking in India is bright, it would be a gross
understatement. With the growing competition and convergence of services, the customers stand
Only to benefit more to say the least. At the same time, emergence of a multitude of complex
financial instruments is foreseen in the near future (the trend is visible in the current scenario
too) which is bound to confuse the customer more than ever unless she spends hours (maybe
days) to understand the same. Hence, I see a growing trend towards the importance of
relationship managers. The success (or failure) of any bank would depend not only on tapping
the untapped customer base (from other departments of the same bank, customers of related
similar institutions or those of the competitors) but also on the effectiveness in retaining the
existing base.

India has witness to a sea change in the way banking is done in the past more than two decades.
Since 1991, the Reserve Bank of India (RBI) took steps to reform the Indian banking system at a
16 | P a g e
measured pace so that growth could be achieved without exposure to any macro-environment
and systemic risks. Some of these initiatives were deregulation of interest rates, dilution of the
government stake in public sector banks (PSBs), guidelines being issued for risk management,
asset classification, and provisioning. Technology has made tremendous impact in banking.
‘Anywhere banking’ and ‘Anytime banking’ have become a reality. The financial sector now
operates in a more competitive environment than before and intermediates relatively large
volume of international financial flows. In the wake of greater financial deregulation and global
financial integration, the biggest challenge before the regulators is of avoiding instability in the
financial system.

17 | P a g e
CHAPTER – 2 RESEARCH METHODOLOGY

2.1 OBJECTIVE OF PROJECT

2.2 RESEARCH OBJECTIVE
2.3 SAMPLE SIZE AND METHOD OF SELECTING SAMPLE
2.4 SCOPE OF STUDY
2.5 LIMITATIONS OF STUDY

18 | P a g e
2.1 OBJECTIVE OF PROJECT:

The main objectives of this project are the following:

 To study the concept of Banks

 To study the comparison of Products and Services of AXIS Bank with other banks

 To study SWOT analysis of AXIS Bank

 To study about AXIS BANK and its related aspects like its products & services, history,
organizational structure, subsidiary companies etc.

 To understand the major attributes of customer satisfaction.

 To determine the main factors influencing the level of customer satisfaction in AXIS
BANK.

2.2 RESEARCH OBJECTIVE

Main objectives of the study are to “Critical appraisal of products and services offered by Axis
Bank.” Some of the major objectives of the study include the determination of the following:
 Consumer awareness about the products and services.

 Consumer preference about various products and services.

 Customer’s perception towards private Banking and their expectations from private
banks.

 Customer satisfaction with the service provided by the bank.

Draw out with conclusion and suggestion based on the analysis and the interpretation of data

2.3 SAMPLE SIZE AND METHOD OF SELECTING

SAMPLE
I chose a sample size of 40 respondents consisting of based on judgement sampling all
respondent were the customers of Axis Bank. The method was simple random sampling.

19 | P a g e
Data Source
For this project both primary and secondary data were valuable sources of information.

Secondary data
Secondary data provides a starting point for any research and offers valuable sources of already
existing information. Secondary data are the easiest to gather and the cost of collecting this data
is also very low. For my project work it was collected through the help of various directories of
various associations, magazine, newspapers, websites etc. The directories helped me in short
listing people, for my target people.
Some of the directories made use of are as follows:
 Telephone directory

 Income tax office

 City directories

 Chartered accountant directories

 Carpet industries directory

 Indian medical association directory

 Transporter directory

 Lawyer directory

 Builders & Constructors directories

Primary data
Primary data are data freshly gathered for a specific purpose. For my project work the primary
data was collected by means of survey though questionnaires.
Contact methods
Once the client had been decided now my task was how to contact them, and for me there only
two ways of contacting them.
1. Personal Interview: - This method was the most appropriate way of survey, because by
personal interview I came to know about their feeling for Axis Bank.
20 | P a g e
 2. Telephone: - This method was also used by me once or twice, keeping in mind the busy
schedule of a few respondents.

2.4 SCOPE OF STUDY

Axis Bank is one of the most famous banks in India. The various products and services offered
by it include:
PRODUCT
 Deposits (Saving account and current account)

 Loans

 Card

SERVICES
 ATM

 Mobile Banking

 Internet Banking

 Payment

 Other Services

The deposit mix of an organization especially the Saving accounts are the backbone of every
bank as an ordinary man is most inclined to invest in it due to its convenience and easy
availability. This project deals with the various customer concerns regarding these and tries to
suggest appropriate suggesting based on conclusions. I hope that this report would be able to
suggest some measures and draw attention of bank towards the area of improvement.

21 | P a g e
2.5 LIMITATIONS OF STUDY
 The study was based on a very modest sample size hence cannot be called as a
representation of the views and opinion of the majority.

 In a rapidly changing industry, analysis on one day or in one segment can change very
quickly. The environmental changes are vital to be considered in order to assimilate the
findings.

 The conclusion arrived at are based on a very less experience of researcher in this field.

22 | P a g e
CHAPTER - 3 LITERATURE REVIEW
3.1 Literature Review

23 | P a g e
3.1 LITERATURE REVIEW
A study on public and private sector banks and their study shows that quality gap between
expectations of consumers and perceptions of service delivered is highest in public sector banks
and lowest in private sector banks(using gap 5). Another study found out that public sector banks
are better than private sector banks. Other studies and their findings are given below

Joseph M. et al (1999)- The study investigates role of technology on Australian banking sector
and 300 customers were surveyed. The findings suggested that except from
convenience/accuracy and efficiency e
banking services did not match with importance rating specified by customers.
Lassar, et al (2000)- The study compared two models, that is, SERVQUAL and
technical/functional quality model of technology using 65 bank customers using SERPERF
SCALE. The findings revealed that technical/functional quality model was better than
SERVQUAL because latter was lacking technical dimensions. 2 models were having distinct and
unique strength for measuring service quality aspects.

Bahia, K and J Nantel (2000)- The paper suggested an alternative scale for measuring service
quality in retail banking. The study developed a scale called as Banking Service Quality Scale
which contained factors like effectiveness and assurance, access, price, tangibles, service
portfolio and reliability. This model was found to be more reliable than SERVQUAL

Jamal, A., Naser, K., 2002-The study examined key drivers of customer satisfaction using 167
customers and it was found that core and relational performances had impact on customer
satisfaction and there was negative relationship between customer expertise and customer
satisfaction.

Sureshchandar et al (2002).- The study examined relationship between service quality and
customer satisfaction in Indian banking sector. These were found to be independent but closely
related. Both constructs vary significantly in core services, human element, systematization of
service delivery, tangibles and social responsibility.

24 | P a g e
Gani A,Mushtaq Bhatt(2003)-The study is conducted to do a comparative study of service
quality of commercial banks and its dimensions in commercial banks. SERVQUAL is used and
sample size was 800 customers. The study found out that CITI bank and Standard chartered bank
are good in tangibility and in reliability also they are good. In responsiveness parameter Indian
banks are inferior to foreign banks. In Assurance and empathy Indian banks are inferior.

Navdeep Aggarwal and Mohit Gupta (2003)- This study basically finds out the primary
dimensions and sub dimensions of service quality. Informal structured interviews are conducted
with branch managers and academicians to formulate a banking service quality model. The study
found out that service time and personal interactions are very important along with ambience for
service quality.

Zhou, L( 2004)- The study analysed impact of service quality in banks on customer satisfaction
in china’s retail banking and it was found out that reliability and assurance were the primary
drivers of customer satisfaction. It was also found out that there were significant variations in
expectations and perceptions in customers

Arora S (2005)- This study analysed factors influencing customer satisfaction in public sector,
private sector and foreign banks in northern India. 300 customers were given questionnaires
which reveled that significant differences exist in customer satisfaction level of customers in
each group of banks regarding routine operation and situational and interactive factors. Foreign
banks were found to be the leaders in mechanization and automation.

Debashis and Mishra (2005)-The study analysed and measured customer satisfaction in branch
services provided by nationalized banks in northern India. 1200 customers were given
questionnaires and it was found out that computerization, accuracy in transactions, attitude of
staff and availability of staff

25 | P a g e
CHAPTER - 4 AXIS BANK PROFILE
4.1 Introduction to AXIS BANK
4.2 History of AXIS Industry
4.3 Reasons for Changes in UTI Bank
4.4 Corporate Profile
4.5 Products & Services provided by AXIS Bank

26 | P a g e
4.1 INTRODUCTION TO AXIS
BANK
AXIS bank completed the 5th year of its operation at the end of March 99. The bank witnessed
good growth in its business and profit and also came out with a public issue of its quality for the
1st time during the year, which evoked excellent retail response. The bank made significant
progress during the year in line with its committed business target’s, despite difficult market
condition the bank spread over different states, there by enlarging its client based substantially.
The bank continues to introduce new products, upgrade the technology support system to
improve operational efficiencies and strengthen its human resource based on the whole, 2002-
2003 has been some productive years for the bank in terms of both growth and consolidation of
business as well as strengthening of its infrastructure.
The bank ended the year 2002-2003 conducting business in 80 cities and towns, with
192branches and extension counters and 822 ATMs. The AXIS bank will spread out across the
country with operation in 23 states and 1 union territory.

ABOUT US
Axis Bank was the first of the new private banks to have begun operations in 1994, after the
Government of India allowed new private banks to be established. AXIS, the largest mutual fund
in India, Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. and
its four subsidiaries viz. Promoted the Bank Jointly National Insurance
Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and
United Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 230.88 Crore
with the public holding (other than promoters) at 45.63%.
The Bank's Registered Office is at Ahmadabad and its Central Office is located at Mumbai.
Presently the Bank has a very wide network of more than 200 branch offices and Extension
Counters. The Bank has a network of over 2010 ATMs providing 24hrs a day banking
convenience to its customers. This is one of the largest ATM networks in the country. The Bank
has strengths in both retail and corporate banking and is committed to adopting the best industry
practices internationally in order to achieve excellence.

27 | P a g e
4.2 HISTORY OF AXIS INDUSTRY
Axis Bank, previously called UTI Bank, was the first of the new private banks to have
begun operations in 1994, after the Government of India allowed new private banks to be
established. The Bank was promoted jointly by the Administrator of the Specified Undertaking of
the Unit Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance
Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, The
Oriental Insurance Corporation and United Insurance Company Ltd. UTI-I holds a special
position in the Indian capital markets and has promoted many leading financial institutions in the
country. As on the year ended March 31, 2006 the Bank had a net worth of Rs. 2872.19 crores
with the public holding (other than promoters) at 56.65%. Net Profit for the year was up 44.98%
to Rs485.08 cores.

Axis Bank stands apart from its private sector competitors — ICICI Bank and HDFC
Bank — in one crucial respect. While the other two banks have envisaged retail banking as a key
area of strategic emphasis — with the share of the retail business (both on the funding and asset
sides) growing strongly year after year— the share of retail business, particularly retail assets,
has actually come down quite sharply in the case of Axis Bank. The numbers here are quite
interesting. For ICICI Bank, retail loans now (as of June 2007) account for as much as 70 per
cent of the bank’s total loan book of Rs 2,00,000 crore. For HDFC Bank, retail assets are
around57 per cent (Rs 28,000 crore) of the total loans as of March 2007. In the case of Axis
Bank, retail loans have declined from 30 per cent of the total loan book of Rs 25,800 crore in
June 2006 to around 23 per cent of loan book of Rs. 41,280 crore (as of June 2007). Even over a
longer period, while the overall asset growth for Axis Bank has been quite high and has matched
that of the other banks, retail exposures grew at a slower pace. If the sharp decline in the retail
asset book in the past year in the case of Axis Bank is part of a deliberate business strategy, this
could have significant implications (not necessarily negative) for the overall future profitability
of the business. Despite the relatively slower growth of the retail book over a period of time and
the outright decline seen in the past year, the bank’s fundamentals are quite resilient. With the
high-level of mid-corporate and wholesale corporate lending the bank has been doing, one would
have expected the net interest margins to have been under greater pressure.
28 | P a g e
 The bank, though, appears to have insulated such pressures. Interest margins, while they
have declined from the 3.15 per cent seen in 2003-04, are still hovering close to the 3 per cent
mark. (The comparable margins for ICICI Bank and HDFC Bank are around 2.60 per cent and 4
per cent respectively. The margins for ICICI Bank are lower despite its much larger share of the
higher margin retail business, since funding costs also are higher). Such strong emphasis and
focus on lending also does not appear to have had any deleterious impact on the overall asset
quality. The bank’s non-performing loans are even now, after five years of extremely rapid asset
build-up, below 1 per cent of its total loans. From a medium-term perspective, it appears that
Axis Bank could be charting out a niche for itself in the private bank space. It appears to be
following a business strategy quite different from the high-volume and commodity-style
approach of ICICI Bank and HDFC Bank.

That strategy also has its pluses in terms of the relatively higher margins in some
segments of the retail business and the in-built credit risk diversification (and mitigation)
achieved through a widely dispersed retail credit portfolio. But, as indicated above, Axis Bank
has been to able to maintain the quality of its loan portfolio despite the concentrated nature of
wholesale corporate lending. The Bank today is capitalized to the extent of Rs. 357.48 crore with
the public holding (other than promoters) at 57.03%. The Bank's Registered Office is at
Ahmadabad and its Central Office is located at Mumbai. Presently, the Bank has a very wide
network of more than 608 branch offices and Extension Counters.

The Bank has a network of over 2595 ATMs providing 24 hrs a day banking convenience
to its customers. This is one of the largest ATM networks in the country. The Bank has strengths
in both retail and corporate banking and is committed to adopting the best industry practices
internationally in order to achieve excellence. Axis Bank continued its robust growth in the
December 2007 quarter and has once again beaten analysts’ expectations on all parameters.
However, the difference this quarter is that the growth in profitability has been driven more by a
significant jump in the net interest income (core business) rather than non-interest income unlike
in last several quarters. Net interest income leaped by 91 per cent y-o-y to Rs 747 crore—the

29 | P a g e
highest in the past four quarters—as advances and deposits grew by 50 per cent and 35 per cent
respectively and also there was an increase in net interest margin (NIM).

Its NIM went up by 63 basis points q-o-q and 91 basis points y-o-y to3.91 per cent. This
was because of a jump in yield on advances while CASA (current and savings account) was
maintained at 45 per cent sequentially. Though other income went up 74 per cent y-o-y to Rs 488
crore, it was still lower than the 87 per cent growth reported in the September 2007 quarter. The
bank’s fee income increased by 81 per cent to Rs 348 crore and trading profits were up 65 per
cent to Rs 131 crore in Q3. All these factors led to doubling of operating profit to Rs 672 crore
while operating expenses went up 67 per cent. However, its net profit grew relatively slower at
66 per cent to Rs 307 crore as provisions and contingencies went up 290 per cent and a 68 per
cent jump was recorded in tax provisioning. However, growth in net profit is still higher than
previous three quarters and has been higher than expectations.

Axis Bank is relatively immune to the slowdown in the retail credit and high cost of
funding. This is because retail credit’s share of 25 per cent has gone down from 28 per cent last
year and other advances like corporate, SME (small and medium enterprises) and agriculture
loans have grown faster than retail-advances.

4.3 REASONS FOR CHANGES IN UTI BANK

Few banks have gone in for a brand makeover; UTI Bank is one of them that have changed its
name to Axis Bank. It seems to be quite clear from the strategic decision about the way forward,
the change in identity, the positioning of the bank, the pros and cons of pursuing organic growth,
etc.
One of the reasons for bringing changes in the corporate identity is to enhance the image of the
bank because now they want to become an MNC bank.

Why did the bank decide to change its brand name?

Bank has done this partly because there are shareholder-unrelated entities that carry the UTI
brand, which was becoming increasingly untenable. If there are no shareholder relations between

30 | P a g e
the two organizations, how can they actually share a common name? When UTI was split into
two vehicles, the brand was given to UTI Mutual Fund and others were permitted to use the
brand only till January 2008. When it became clear to the bank that it was no longer tenable, they
decided to have a brand of our own. The name Axis was chosen as it means a line of reference,
around which everything is measured.

Their feeling is that with time, people will think of the bank brand as Axis Bank. The tough test
was whether in the next six months people would forget old name or not. Otherwise, nothing has
really changed in the bank. They raised capital worth Rs 4,500 crore, which helped Axis Bank to
start off on a strong footing. They feel that this capital would last at least for three years in the
case of pure organic growth.

The UTI brand had a quasi-government sovereign ring to it, especially when it goes outside
metros. It was an advantage, then why bank have taken this decision on cost of losing it?
Bank’s customer base is very different from the customer base of a mutual fund. So they have
never really able to ride on the brand. The pace at which customer base have grown indicates the
level of customer service bank provide. Also, the UTI brand was seen as a public sector brand.
They were board-managed private sector entity. By changing the name, Bank has reinforced this
image.

Where Axis Bank positioned from the business point of view?

Axis Bank has taken first step towards seeing themselves as becoming an MNC bank from India.
They have presence in four overseas locations — Singapore, Hong Kong, China and Dubai. This
is part of a journey for becoming a Pan-Asian bank and then, eventually, a bank that is more
multinational. They are foraying into smaller towns and entering district headquarters in a big
way. In the next thirty months, they want to be present in 450 district headquarters. They have
received licenses to open 150 branches and 500 ATMs. Also they are planning to open
125branches by July 2008, half of which would be in large cities. They are also setting up a large
agriculture financing business, for which they need to be close to farmers; hence the bank is
going to open branches in villages. Besides, the bank has set up priority banking branches for
customers with deposits of over Rs 5 lakh. It is one of the fastest growing customer bases of our

31 | P a g e
bank, growing at 4% each year. They have three such specialized branches now, and planning to
have one each in all the major metros.

Would it have been very tempting for the bank to stay on the existing b rand by paying a
higher royalty, given the cost and time involved in this exercise?

In recent years, the Bank has contributed more than their fair share on restoration of the UTI
brand. But when it was clear to them that there was no other option, they decided to bite the
bullet. Bank decided to assume their very own identity. The UTI identity came to the bank from
the undivided Unit Trust of India (UTI). The split of UTI was the starting point for what was
eventually a search for a new identity.

When Axis Bank looks at private sector peers, there are missing links, since most of them
have a mutual fund and insurance business?
Axis Bank has tried to focus on Commercial banking since their inception. As the first step
towards diversion, bank has set up an AMC to manage a private equity venture. They would be
in a position to launch the first trenched of the fund by end of September 2008.The AMC will
provide equity support for infrastructure projects. There are not many private equity funds here,
focusing on infrastructure projects

4.4 Corporate Profile

Axis Bank is the third largest private sector bank in India. The Bank offers the entire spectrum of
financial services to customer segments covering Large and Mid-Corporates, MSME, Agriculture
and Retail Businesses.

The Bank has a large footprint of 3,964 domestic branches (including extension counters) with
12,705 ATMs & 3,548 cash recyclers spread across the country as on 31st December, 2018. The

32 | P a g e
overseas operations of the Bank are spread over ten international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at
Dhaka, Dubai, Abu Dhabi; a step down subsidiary in the US- Axis Capital USA, LLC and an
overseas subsidiary in London, UK. The international offices focus on corporate lending, trade
finance, syndication, investment banking and liability businesses.

Axis Bank is one of the first new generation private sector banks to have begun operations in
1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India
(SUUTI) (then known as Unit Trust of India), Life Insurance Corporation of India (LIC), General
Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance
Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI,
an entity established in 2003.

With a balance sheet size of Rs. 6,91,330 crores as on 31st March 2018, Axis Bank has achieved
consistent growth and with a 5 year CAGR (2012-13 to 2017-18) of 15% in Total Assets, 12% in
Total Deposits, 17% in Total Advances.

Capital Structure
The Bank has authorized share capital of Rs. 850 crores comprising 4,250,000,000 equity shares
of Rs.2/- each. As on 31st March 2018, the Bank has issued, subscribed and paid-up equity
capital of Rs. 513.31 crores, constituting 2,56,65,38,936 equity shares of Rs.2/- each. The Bank’s
shares are listed on the National Stock Exchange of India Limited and the BSE Limited. The
GDRs issued by the Bank are listed on the London Stock Exchange (LSE). The Bonds issued by
the Bank under the MTN programme are listed on the Singapore Stock Exchange.

Distribution Network
The Bank has a large footprint of 3,964 domestic branches (including extension counters) with
12,705 ATMs & 3,548 cash recyclers spread across the country as on 31st December, 2018. The
overseas operations of the Bank are spread over nine international offices with branches at
33 | P a g e
Singapore, Hong Kong, Dubai (at the DIFC), Colombo and Shanghai; representative offices at
Dhaka, Dubai, Abu Dhabi and an overseas subsidiary at London, UK. The international offices
focus on corporate lending, trade finance, syndication, investment banking and liability
businesses.

34 | P a g e
Whistleblower Policy
A central tenet in the Bank’s Policy on Corporate Governance is commitment to ethics, integrity,
accountability and transparency. To ensure that the highest standards are maintained in these
aspects on an on-going basis and to provide safeguards to various stakeholders (including
shareholders, depositors and employees) the Bank has formulated a ‘Whistleblower Policy’. The
Policy provides stakeholders with the opportunity to address serious concerns arising from
irregularities, malpractices and other misdemeanours, if any, committed by the Bank’s personnel
by approaching a Committee of senior officials of the Bank, set-up for the purpose (known as the
Whistleblower Committee).

Concerns relating to senior management can be reported directly to the Audit Committee of the
Board. The Policy is intended to encourage stakeholders to report suspected or actual occurrence
of illegal, unethical or inappropriate actions, behaviour or practices by staff without fear of
retribution. To ensure smooth flow and management of complaints under Whistleblower policy, a
web-based application – www.cwiportal.com has also been set up which provides an option for
anonymous reporting thereby enabling the stakeholders to lodge their complaints online over a
secure platform without fear of revelation of identity. The Policy contains provisions protecting
Whistleblowers from any unfair action prejudicial to their interest. The Audit Committee of the
Board reviews, on a quarterly basis, a synopsis of the complaints received and the resolution
thereof.

4.5 Products & Services provided by AXIS Bank

Axis Bank is the third largest privately-owned financial institutions in India. It offers a wide
range of financial products and services to individual customers, large and mid-corporates,
MSME, Agriculture and Retail Businesses. Axis Bank has more than 3,500 domestic branches
and over 13,900 ATMs across the country. The bank also has overseas branches in Singapore,
Hong Kong, Dubai (at the DIFC), Shanghai and Colombo; representative offices at Dubai, Abu
Dhabi, Dhaka and Sharjah. The product and services palette of Axis Bank includes personal loan,
credit cards, education loan, car loan, business loan, fixed deposit and more.

35 | P a g e
  AXIS BANK BUSINESS LOAN

To assist the small businesses in expansion, Axis Bank offers collateral-free business loans.
Amount up to Rs. 50 Lakhs can be availed at competitive rates of interest. In order to avail the
loan, the business should be at least 3 years old and have a turnover of Rs. 30 Lakhs to Rs. 10
Crores. Professionals like engineers, doctors and chartered accountants can also avail this loan to
expand their practice to new levels. Axis Bank Business Loan requires minimal documentation
and has a hassle-free application process that makes it one of the most popular options in the
market. The balance of existing business loans from other bank can also be transferred to Axis
Bank for availing lower rates of interest.
 AXIS BANK CAR LOAN

Axis Bank offers the easiest and the most cost-effective way to own your dream car in the form
of its car loan. Starting from Rs. 1 Lakh, the loan amount may go up to 100 percent of the on-
road price of the car. The maximum tenure is 8 years for Axis Bank car loan. Priority Banking,
Wealth Banking, Privee Banking customers and salary account holders- all are eligible to avail a
car loan with the bank. The processing fee for Axis Bank car loan is also comparatively lower in
the market and the interest rates start at 9.25% only.

 AXIS BANK CREDIT CARD

Credit cards have become extremely popular in the Indian market nowadays and Axis Bank is
counted among the top credit card issuing banks in the country. Loaded with many benefits
and features, these cards are suitable for customers with varying spending preferences. Direct
discounts are offered on a number of websites and branded stores with some of these cards.
Given below are a few credit cards offered by Axis Bank –

 Axis Bank Buzz Credit Card

 Neo Credit Card

 Axis Bank Vistara Credit Card

36 | P a g e
  Axis Bank Vistara Infinite Credit Card

 MY Zone Credit Card

 AXIS BANK DEBIT CARD

Savings account holders of Axis Bank can enjoy the cashless privilege with the help of a
complimentary debit card. Based on the type of debit card, users can enjoy the privileges of
higher daily cash withdrawal limit, extra loyalty reward points and direct discounts on select
transactions. Some cards also offer movie benefits and complimentary airport lounge access.
These are some popular debit cards in Axis Bank’s gamut-

 Priority Debit Card

 Online Rewards Debit Card

 Burgundy Debit Card

 Titanium Rewards Debit Card

 Rewards+ Debit Card

 Youth Debit Card

 Display Debit Card

 Ladies First Debit Card

 Power Salute Debit Card

 NRI Domestic Titanium Debit Card

37 | P a g e
  AXIS BANK EDUCATION LOAN

Whether it is about higher studies in a reputed Indian institute or in an international college, Axis
Bank fuels the dream of all students by offering financial assistance in the form of education
loan. It is available at attractive rates of interest and covers tuition fee, hostel fee, cost of study
material, etc. The quantum of loan depends on eligibility of the applicants and cost of education;
the maximum loan amount, however, is capped at Rs. 75 Lakhs. There is no margin money
required for loans of less than Rs. 4 Lakhs. The application process is also smooth and hassle-
free.

 AXIS BANK FIXED DEPOSIT

If you have a lump sum amount to invest, fixed deposit can be a great option. Offering high rates
of interest, Axis Bank lets you open a fixed deposit for an amount as low as Rs. 5,000. The
tenure can vary from 7 days to 10 years. FD can be opened with Axis Bank from the comfort of
your home using the online banking or mobile banking facility. Some additional advantages of
Axis Bank Fixed Deposit include-

 Attractive rates of interest

 Avoidable premature encashment penalties with some types of deposits

 More interest with a reinvestment deposit

 Seamless fund transfer between accounts

 AXIS BANK GOLD LOAN

38 | P a g e
Meet your urgent monetary needs with Axis Bank Gold Loan. Liquidate your gold jewellery and
get loan against it at competitive rates of interest. The loan is disbursed on the same day provided
that all your documentation formalities are in place. The pledged gold ornaments are kept in
secure bank vaults. Also, you do not have to pay any foreclosure charges on gold loan. The
tenure for such loans ranges from 6 months to 36 months and the applicants can choose the
tenure that suits them the best.

 AXIS BANK HOME LOAN

Axis Bank offers home loans at highly-competitive rates to make dream homes real for the
people. Applicants can choose a loan tenure that suits them the best- a longer tenure calls for
smaller EMIs and vice-versa. Both fixed and floating rate home loans are offered by Axis
Bank. Some reasons why Axis Bank home loans are so popular are-

 Attractive rates of interest

 Choice of interest rate type- fixed and floating

 Transfer other bank home loans to avail lower rates

 Zero pre-payment charges

 Service at your doorstep

 Smooth application process

 AXIS BANK PERSONAL LOAN

Whether it is about financing your wedding or going on a lavish vacation, Axis Bank personal
loan comes in handy. Available at attractive rates of interest and with minimal documentation,
these loans help you meet an urgent need of cash. You can get loan for an amount as high as Rs.
15 Lakhs. Minimum age requirement for availing a personal loan is 21 years and a valid set of
documents is needed including ID proof, address proof and income proof. The application

39 | P a g e
process is simple as it is an unsecured loan. You can also use their personal loan EMI calculator
to know the estimated amount of EMI that you have to pay per month.

 AXIS BANK SAVING BANK ACCOUNT

Save and watch your money grow with Axis Bank Savings Account. These are the types of
savings account one can open with Axis Bank-

 ASAP Instant Savings Account

 EasyAccess Savings Account

 Prime Plus Savings Account

 Prime Savings Account

 Women’s Savings Account

 Senior Privilege Savings Account

 Future Stars Savings Account

 Pension Savings Account

 Trust/NGO Savings Account

 Insurance Agent Account

 YOUTH Account

 Basic Savings Account

40 | P a g e
Chapter No. 5:
Data Analysis, Interpretation and Presentation

5.1 COMPERATIVE ANALYSIS OF SAVING AND SALARY

PRODUCTS OF AXIS BANK WITH HDFC AND ICICI BANK

41 | P a g e
 5.1 COMPERATIVE ANALYSIS OF SAVING AND SALARY
PRODUCTS OF AXIS BANK WITH HDFC AND ICICI BANK

Facts & Findings

ANALYSIS 1:
This analysis displays the division of sample according to the occupation. A total of 100 people
were surveyed.

Table
Frequency Percent Valid Percent Cumulative Percent

Valid SALARIED 44 44.0 44.0 44.0

BUSINESS 24 24.0 24.0 68.0
PROFESSIONAL 32 32.0 32.0 100.0
Total 100 100.0 100.0

50

45

40

35

30

25 Frequency
20

15

10

0
Val i d SALARIED BUSINESS PROFESSIONAL

42 | P a g e
5.1 Survey Report

1. How long have you been customer of the ICICI bank?

No. of Years No. of Respondents

Less than a year 13

1-4 years 18

4-7 years 15

More than 7 years 4

43 | P a g e
INTERPRETATION: From the above graph it is clear that majority of the respondents are part
of the ICICI bank from 1-4 years i.e.36%; 30% of the respondents are part of the ICICI bank
from 4-7 years; 26% respondent from less than a year and remaining 8% respondent are part of
the ICICI bank form more than 7 years.

2. Do you always get the prompt service whenever you visit the ICICI bank branch?

No. of Respondents

Strongly agree 23

Agree 17

Neither Agree nor Disagree 7

Disagree 2

Strongly disagree 1

44 | P a g e
INTERPRETATION: From the above graph it is clear that majority of the respondents get
timely and quick services by the ICICI bank i.e.46%; 34% of the respondents seem to be just
satisfied; 14% respondent are neither happy nor have any problem and remaining 6% respondent
are dissatisfied with respect to get late services from the ICICI bank.

3. Do you agree that the procedure to open an account with the ICICI bank is
difficult?

No. of Respondents
Strongly agree 0
Agree 1
Neither Agree nor Disagree 5
Disagree 19
Strongly disagree 25

45 | P a g e
 th
INTERPRETATION: From the above graph it is clear that 3/4 of the respondents doesn’t face
any problem in the process of opening a new account; 10% respondent are neither happy nor
have any problem and remaining 2% respondent are dissatisfied with the procedure of opening a
new account in the ICICI bank.

46 | P a g e
 4. Do you agree that the process of depositing and withdrawing money from the
ICICI bank is complex?

No. of Respondents
Strongly agree 1
Agree 1
Neither Agree nor Disagree 8
Disagree 29
Strongly disagree 11

INTERPRETATION: From the above graph it is clear that 80% of the respondents feel that the
process of depositing and withdrawing money from the by ICICI bank isn’t complex; 16% of the
respondents are neither happy nor have any problem and remaining 4% respondent face problem
in depositing and withdrawing money from the ICICI bank.

47 | P a g e
 5. Are satisfied you with the way the queries of the customers have been resolved
by the ICICI bank?

No. of Respondents
Strongly agree 23
Agree 16
Neither Agree nor Disagree 10
Disagree 0
Strongly disagree 1

INTERPRETATION: From the above graph it is clear that 82% respondent’s query and conflict
has been easily resolved by the ICICI bank; 16% of the respondents are neither happy nor have
any problem and remaining 4% respondent feels that their problems have not been resolved in
the best way by the ICICI bank.

48 | P a g e
 6. Do you agree that minimum account limit is not high and easy to maintain in the
ICICI bank?

No. of Respondents
Strongly agree 5
Agree 17
Neither Agree nor Disagree 16
Disagree 9
Strongly disagree 3

INTERPRETATION: From the above graph it is clear that 44% of the respondents are satisfied
with the minimum account limit and easy maintenance of the in the ICICI bank; 32% of the
respondents are neither happy nor have any problem and remaining 24% respondent feels that
minimum account limit isn’t good and face some problem in operating their accounts.

49 | P a g e
 7. According to you which service provided by the ICICI bank is best?

Services No. of Respondents

Depositing and withdrawing money 8
Query handling 12
New account process 9
Friendliness of bank personnel 7
Minimum account limit is not high 1
Easy maintenance of account 2
Parking facilities and accessibility 2
Convenience of location 1
Online services 8

INTERPRETATION: From the above graph it is clear that majority of the respondents would
feel that new account process, inquiry facility, depositing and withdrawing process & online
services are the best services provided by the ICICI bank; 14% like friendliness of personnel and
the remaining like parking facilities, convenience of location etc. as best services among the
various services provided by the ICICI bank.

50 | P a g e
 8. What are problems that you face whenever you make a visit to the ICICI Bank?

Services No. of Respondents

Depositing and withdrawing money 1
Query handling 1
New account process 1
Friendliness of bank personnel 0
Minimum account limit is not high 1
Easy maintenance of account 1
Parking facilities and accessibility 27
Convenience of location 10
Online services 8

Interpretation: From the above graph it is clear that majority of the respondents face the
problem of parking and location of the branch of the ICICI bank i.e.74; 16% face the problem
while performing online services and the remaining face the problem in depositing and
withdrawing process, new account opening process in the ICICI bank.

51 | P a g e
 9. Are satisfied you with the services provided by the ICICI bank?

No. of Respondents
Strongly agree 21
Agree 16
Neither Agree nor Disagree 9
Disagree 3
Strongly disagree 1

INTERPRETATION: From the above graph it is clear that 74% of the respondents are satisfied
with the dealing of the ICICI bank, 16% are not fully satisfied and 18% are satisfied to some
extent.

52 | P a g e
53 | P a g e
54 | P a g e
55 | P a g e
56 | P a g e
57 | P a g e
5.2 Findings
From the analysis of the results and based on the objectives of the study the following findings
can be ascertained.

1) According to the data collected, it is clear that most of the respondents are part of the
ICICI bank from 1-7 years.
2) Almost half of the population gets timely and quick services by the ICICI bank and
75%f the respondents are satisfied with the service offered by ICICI bank.

58 | P a g e
3) Presently the bank offers varieties of services but the customers are mostly happy with
the easy and simple process of opening a new account, depositing and withdrawing
money and query handling process of the ICICI bank.
4) The problems face by the majority of the population is related to the location of branch
and parking facility availability. Whereas online services are new to the customers so
they also face some problem in performing the online services of the ICICI bank.
5) As minimum account limit is a cause that restricts the population to make them a part of
t
the ICICI bank. On the other hand, maintain the account is seeming to a problem for 1/4
h
of the population.
6) All the respondents are the customer of ICICI Bank.
7) 57% respondents are maintaining Savings account with bank and 23% of them are
maintaining Current account.
8) 80% of the respondents are holding their account for more than 6 months while 15% of
them are holding account for between 3-6 months and only 5% respondents have bank
accounts for less than 3 months.
9) 80% of the respondents are satisfied with the interest rates charged on their deposits.
10) 82% of the respondents use the credit card facility of ICICI Bank.
11) 62% of the respondents are satisfied with credit card payment policy while 13%of the
respondents are not satisfied and 25% respondents are neutral.
12) 86% of the respondents have taken loan from Bank.
13) 51% of the respondents are satisfied with the interest rates charged on the Loans while
41% of the respondents are not satisfied and 8% of them are neither satisfied nor
dissatisfied.
14) 96% of the respondents are using ATM services provided by bank.
15) 82% of respondents are satisfied with the banking facilities provided by ICICI Bank and
only 2% of them are dissatisfied.
16) 8% of the respondents felt that quality of services provided by ICICI Bank is good while
58%and only 34% of them felt services are excellent.
17) 64% of the respondents are satisfied with Internet banking facility and 12% are neither
satisfied nor dissatisfied
18) Only 22% of the respondents are satisfied with the policies and procedures, 74% are
neither satisfied nor dissatisfied while 4% of the total are dissatisfied .
19) Maximum customers of ICICI Bank recommend their Bank to others.

59 | P a g e
 Chapter No. 6: Conclusion,
Suggestion & Bibliography
6.1 SUGGESTIONS
6.2 CONCLUSION
6.3 BIBLIOGRAPHY
6.4 ANNEXURE

60 | P a g e
6.1 Suggestions

1. Bank should focus on loan services provided to their customers and should revise its
interest on loan in a manner that people may go for loan.
2. Banks should share all the relevant information about the products and services with the
customers.
3. ICICI Bank should improve its Internet Banking Facilities as customers are not satisfied
with it.
4. With regard to banking products and services, consumers respond at different rates,
depending on the consumer’s characteristics. Hence ICICI Bank should try to bring their
new product and services to the attention of potential early adopters.
5. Due to the intense competition in the banking sector, the ICICI Bank should adopt better
strategies to attract more customers.
6. ICICI Bank should select the location for its branch in such a way that the parking
problem should be solved, as more than half of the respondents are facing this problem.
7. ICICI Bank should come up with various supporting policies to increase the awareness
level among the consumers about the new online services.
8. ICICI Bank should ask for their consumer feedback to know whether the consumers are
really satisfied or dissatisfied with the service and product of the bank. If they are
dissatisfied, then the reasons for dissatisfaction should be found out and should be
corrected in future.
9. ICICI Bank should try to increase the Brand image through performance and service then
only the customers will be satisfied.
10. Majority of the people find banking important in their life, so the ICICI Bank should
employ the strategies to convert the want in to need which will enrich their business.

6.2 Conclusion

61 | P a g e
ICICI Bank is one of the largest private sector bank in India. Popularity of the bank is clear from
the Survey done above. From analysis it is concluded that people mostly prefer ICICI Bank for
Savings account needs because of its attractive interest rates and comfortable repayment system.

Considerably less amount of people prefers this bank for maintain current accounts due to
cumbersome documentation. ICICI is a diversified bank and has extended its operations into
different areas like mutual funds, insurance etc. ICICI bank is known for its quality services and
excellent customer care which is very evident from this survey customer are increasingly going
tech savvy and hence ICICI bank has also worked hard in this domain and that’s why less
number of people are dissatisfied with online banking services provided by ICICI bank. Overall,
ICICI bank is the preferred bank by maximum people in private sector.

6.3 Bibliography

1. http://en.m.wikipedia.org/wiki/ICICI_Bank
2. http://en.m.wikipedia.org/wiki/Bank
3. Kothari, C.R. (1990) Research Methodology
4. www.rbi.org.in
5. www.moneycontrol.com
6. www.nseindia.com
7. www.icicibank.com
8. www.google.com

6.4 Annexure
62 | P a g e
QUESTIONNAIRE

63 | P a g e
64 | P a g e
65 | P a g e