Ashish Kumar Synopsis Report on-Axis-Bank

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I.T. POINT

11, H.I.G. DOUBLE STOREY, RATAN LAL NAGAR

KANPUR (LC CODE- 00918)

A

SYNOPSIS REPORT

ON

“A Case Study on AxisBank”

Under the guidance of

Mrs. Reema Saxena

Submitted By

Ashish KumarREG.NO. 581122866

in partial fulfillment of the requirement

for the award of the degree

Of

Master of Business Administration

IN

Marketing Management

SIKKIM MANIPAL UNIVERSITY

Directorate of Distance Education

Syndicate House, Manipal - 576104www.smude.edu.in

1

http://www.smude.edu.in/

http://www.axisbank.com/personal/index.asp

http://www.smude.edu.in/



(2012-2013)

ACKNOWLEDGEMENT

It is with real pleasure that, I record my indebtedness to my

academic Guide, Lecturer Mrs. Reema Saxena for his guidance

during the preparation of this project.

I am grateful to (Director) Mr. S.K. Arora and my sincere thanks

to all faculty members of The SMU, IT Point Kanpur (LC Code:

00918)

Place: Kanpur

(ASHISH KUMAR )

Date: REG.NO:581122866

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INDEX1 BANKING IN INDIA

2 COMPANY PROFILE

3 MAJOR PLAYERSIN BANKING INDUSTRY

4 DETAIL DESCRIPTION OF AXIS BANK ON THE 7 Ps FRAMEWORK

5 PRODUCT AND SERVICES OF AXIS BANK

6 COMPETITIVE ANALYSIS & ADVANTAGES

7 MANAGER’S JOB RESPONSIBILITIES

8 MARKET SHARE

9 RELATED SERVICE INDUSTRY 10YR FROM NOW

10 EXISTING PROMOTIONAL & PRICING STRATEGY

11 GOVT. REGULATION

12 EXISTING MARKETING STRATEGY TO GAIN UPPER MARKET SHARE 13 RECOMMENDATIONS

14 BIBLIOGRAPHY

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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. This is one of the main reasons of India's growth process.

HISTORY:

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:

• PHASE I - Early phase from 1786 to 1969 of Indian Banks

• PHASE II - Nationalization of Indian Banks and up to 1991

• PHASE III - Indian Financial & Banking Sector Reforms after 1991.

PHASE I:

The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and

Bengal Bank. The East India Company established Bank of Bengal (1809), Bank of Bombay(1840) and Bank of Madras (1843) as independent units and called it Presidency Banks. These

three banks were amalgamated in 1920 and Imperial Bank of India was established which

started as private shareholders banks, mostly Europeans shareholders. During the first phase the

growth was very slow and banks also experienced periodic failures between 1913 and 1948.

There were approximately 1100 banks, mostly small. To streamline the functioning and

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activities of commercial banks, the Government of India came up with The Banking Companies

Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of

1965 (Act No. 23 of 1965). Reserve Bank of India was vested with extensive powers for the

supervision of banking in India as the Central Banking Authority. During those day’s public has

lesser confidence in the banks. As an aftermath deposit mobilization was slow. Abreast of it the

savings bank facility provided by the Postal department was comparatively safer. Moreover,

funds were largely given to the traders.

PHASE II:

Government took major steps in this Indian Banking Sector Reform after independence. In

1955, it nationalized Imperial Bank of India with extensive banking facilities on a large scale

especially in rural and semi-urban areas. Second phase of nationalization Indian Banking Sector

Reform was carried out in 1980 with seven more banks. This step brought 80% of the banking

segment in India under Government ownership.

The following are the steps taken by the Government of India to Regulate Banking Institutions

in the Country:

• 1949: Enactment of Banking Regulation Act.

• 1955: Nationalization of State Bank of India.

• 1959: Nationalization of SBI subsidiaries.

• 1961: Insurance cover extended to deposits.

• 1969: Nationalization of 14 major banks.

• 1971: Creation of credit guarantee corporation.

• 1975: Creation of regional rural banks.

• 1980: Nationalization of seven banks with deposits over 200 crore.

After the nationalization of banks, the branches of the public sector bank India raised to

approximately 800% in deposits and advances took a huge jump by 11,000%.Banking in the

sunshine of Government ownership gave the public implicit faith and immense confidence

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about the sustainability of these institutions.

PHASE-III

This phase has introduced many more products and facilities in the banking sector in its reforms

measure. In 1991, under the chairmanship of M Narasimham, a committee was set up by his

name which worked for the liberalisation of banking practices.

The country is flooded with foreign banks and their ATM stations. Efforts are being put to give

a satisfactory service to customers. Phone banking and net banking is introduced. The entire

system became more convenient and swift. The financial system of India has shown a great deal

of resilience. It is sheltered from any crisis triggered by any external macroeconomics shock as

other East Asian Countries suffered. This is all due to a flexible exchange rate regime, the

foreign reserves are high, the capital account is not yet fully convertible, and banks and their

customers have limited foreign exchange exposure.

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COMPANY PROFILE: AXIS BANK

Axis Bank India, the first bank to begin operations as new private banks in 1994 after the

Government of India allowed new private banks to be established. Axis Bank was jointly

promoted 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.

Also with associates viz. National Insurance Company Ltd., The New India Assurance

Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

Axis Bank in India today is capitalised with Rs. 232.86 Crores with 47.50% public holding

other than promoters. It has more than 200 branch offices and Extension Counters in the country

with over 1250 Axis Bank ATM proving to be one of the largest ATM networks in the country.

Axis Bank India commits to adopt the best industry practices internationally to achieve

excellence. Axis Bank has strengths in retail as well as corporate banking. By the end of

December 2004, Axis Bank in India had over 2.7 million debit cards. This is the first bank in

India to offer the AT PAR Cheque facility, without any charges, to all its Savings Bank

customers in all the places across the country where it has presence.

With the AT PAR cheque facility, customers can make cheque payments to anybeneficiary at any of its existence place. The ceiling per instrument is Rs.

50,000/-.The latest offerings of the bank along with Dollar variant is the Euro and

Pound Sterling variants of the International Travel Currency Card. The Travel

Currency Card is a signature based pre-paid travel card which enables traveler’s

global access to their money in local currency of the visiting country in a safe and

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convenient way. 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

EVOLUTION:

UTI was established in 1964 by an Act of Parliament; neither did the Government of India own

it nor contributes any capital. The RBI was asked to contribute one-half of its initial capital of

Rs 5 crore, and given the mandate of running the UTI in the interest of the unit-holders. The

State Bank of India and the Life Insurance Corporation contributed 15 per cent of the capital

each, and the rest was contributed by scheduled commercial banks which were not nationalized

then. This kind of structure for a unit trust is not found anywhere else in the world. Again,

unlike other unit trusts and mutual funds, the UTI was not created to earn profits.

In the course of nearly four decades of its existence, it (the UTI) has succeeded phenomenally in

achieving its objective and has the largest share anywhere in the world of the domestic mutual

fund industry.'' The emergence of a "foreign expert" during the setting up of the UTI makes aninteresting story. The announcement by the then Finance Minister that the Government of India

was contemplating the establishment of a unit trust caught the eye of Mr. George Woods, the

then President of the World Bank. Mr. Woods took a great deal of interest in the Indian

financial system, as he was one of the principal architects of the ICICI, in which his bank, First

Boston Corporation Bank, had a sizeable shareholding. Mr. Woods offered, through Mr. B.K.

Nehru, who was India's Executive Director on the World Bank, the services of an expert.

The Centre jumped at the offer, and asked the RBI to hold up the finalization of the unit trust

proposals till the expert visited India. The only point Mr. Sullivan made was that the provision

to limit the ownership of units to individuals might result in unnecessarily restricting the market

for units. While making this point, he had in mind the practice in the US, where small pension

funds are an important class of customers for the unit trusts. The Centre accepted the foreign

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expert's suggestion, and the necessary amendments were made in the draft Bill. Thus, began

corporate investment in the UTI, which received a boost from the tax concession given by the

government in the 1990-91 Budget. According to this concession, the dividends received by a

company from investments in other companies, including the UTI, were completely exempt

from corporate income tax, and provided the dividends declared by the investing company were

higher than the dividends received.

The result was a phenomenal increase in corporate investment which accounted for 57 per cent

of the total capital under US-64 scheme. Because of high liquidity the corporate sector used the

UTI to park its liquid funds. This added to the volatility of the UTI funds. The corporate lobby

which perhaps subtly opposed the establishment of the UTI in the public sector made use of it

for its own benefits later. The Government-RBI power game started with the finalization of the

UTI charter itself. The RBI draft of the UTI charter stipulated that the Chairman will be

nominated by it, and one more nominee would be on the Board of Trustees. While finalizing the

draft Bill, the Centre changed this stipulation. The Chairman was to be nominated by the

Government, albeit in consultation with RBI. Although the appointment was to be made in

consultation with the Reserve Bank, the Government could appoint a person of its choice as

Chairman even if the Bank did not approve of him.

BUSINESS DESCRIPTION:

The Bank's principal activities are to provide commercial banking services which include

merchant banking, direct finance, infrastructure finance, venture capital fund, advisory,

trusteeship, forex, treasury and other related financial services. The Bank has 463 branches and

263 extension counters throughout India. During April, 2006 the Bank open-end 1 overseas

branch in Singapore.

PROMOTERS:

UTI Bank Ltd. has been promoted by the largest and the best Financial Institution of the

country, UTI. The Bank was set up with a capital of Rs. 115 crore, with

UTI contributing Rs. 100 crore,

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LIC - Rs. 7.5 crore

GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI SHARE HOLDINGS-27.33%

Erstwhile Unit Trust of India was set up as a body corporate under the UTI Act, 1963, with a

view to encourage savings and investment. In December 2002, the UTI Act, 1963 was repealed

with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the

Parliament, paving the way for the bifurcation of UTI into 2 entities, UTI-I and UTI-II with

effect from 1st February 2003.

BOARD OF DIRECTORS:

The Bank has 11 members on the Board. Dr. P. J. Nayak is the Chairman and Managing

Director of the Bank. The members of the Board are:

NAME DESIGNATION

Dr. P.J. Nayak Chairman & Managing Director

Shri Surendra Singh Director

Shri N.C. Singhal Director

Shri A.T. Pannir Selvam Director

Shri J.R. Varma Director

Dr. R.H. Patil Director

Smt. Rama Bijapurkar Director

Shri R.B.L. Vaish Director

Shri S.B. Mathur Director

Shri M.V. Subbiah Director

Shri Ramesh Ramanathan Director

MISSION AND VALUES:

OUR VALUES:

Customer Service and Product Innovation tuned to diverse needs of individual and

corporate clientele.

Continuous technology upgradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

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CORE VALUES:

Customer Satisfaction through

o Providing quality service effectively and efficiently

o "Smile, it enhances your face value" is a service quality stressed on

o Periodic Customer Service Audits

Maximization of Stakeholder value

Success through Teamwork, Integrity and People.

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7P’S FRAME WORK IN AXIS BANK:

Once the marketing strategy is developed, there is a "Seven P Formula" that should be used to

continually evaluate and reevaluate your business activities. These seven are:

Product,

Price

Promotion

Place

Process

Positioning

People.

As products, markets, customers and needs change rapidly, company must continually revisit

these seven Ps to make sure you're on track and achieving the maximum results possible for you

in today's marketplace.

1. PRODUCT

To begin with, develop the habit of looking at your product as though you were an outside

marketing consultant brought in to help your company decide whether or not it's in the right

business at this time. Ask critical questions such as, "Is the current product or service, or mix of

products and services, appropriate and suitable for the market and the customers of today?"

Develop a habit of assessing your business honestly and asking,

Are these the right products or services for our customers today?

Compared to your competitors, is your product or service superior in some significant

way to anything else available? If so, what is it? If not, could you develop an area of

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superiority? Should you be offering this product or service at all in the current

marketplace?

Product variety, quality and its features.

Is there a market for the service on offer?

Is the market growing or shrinking?

Is the service new or established?

The competition prevailing in the market for the service on offer?

The USP of the product.

Products and Services on offered by AXIS Bank:

Accounts

• Easy Access Accounts

• Prime Savings Account

• Salary Account

• Women’s Saving Account

• Senior Privilege Account

• Defense Salary Account

• Trust & NGO Savings Account

• Azzadi –No frills

• RFC (D) Account

• Pension savings Account.

Deposits:

• Fixed Deposits

• Recurring deposits

• Encash 24

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• Tax Saver Fixed Deposits

Loans:

• Home loan

• Personal loan

• Loan Against Property

• Loan Against Security

• Car Loans

• Study Loans

• Two Wheeler Loan

• Consumer Loan

Investments:

• Online Trading

• Mutual Funds

• Fixed Income

• Depository Services

• E Depository Services

Insurance:

• Health Insurance

• Family Health

• Health Guard

• Hospital Cash

2. PRICES

The second P in the formula is price. Develop the habit of continually examining and

reexamining the prices of the products and services you sell to make sure they're still

appropriate to the realities of the current market. Sometimes you need to lower your prices. At

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other times, it may be appropriate to raise your prices. Many companies have found that the

profitability of certain products or services doesn't justify the amount of effort and resources

that go into producing them. By raising their prices, they may lose a percentage of their

customers, but the remaining percentage generates a profit on every sale. Could this be

appropriate for you?

Sometimes you need to change your terms and conditions of sale. Sometimes, by spreading

your price over a series of months or years, you can sell far more than you are today, and the

interest you can charge will more than make up for the delay in cash receipts. Sometimes you

can combine products and services together with special offers and special promotions.

Sometimes you can include free additional items that cost you very little to produce but make

your prices appear far more attractive to your customers.

In business, as in nature, whenever you experience resistance or frustration in any part of your

sales or marketing activities, be open to revisiting that area. Be open to the possibility that your

current pricing structure is not ideal for the current market. Be open to the need to revise your

prices, if necessary, to remain competitive, to survive and thrive in a fast-changing marketplace.

AXIS bank has developed innovative strategies against its competitors with respect to pricing

by use of technology. The use of technology is the strategic differentiator for AXIS bank thathelps in cost minimization and creating efficiency for the customer. The creation of centralized

processing system linking all its branches has been a major strategic move in this regard.

The pricing mechanism and features of various HDFC products are as follows:

Home Loans:

Floating rates:

For loan of up to five years for amounts between Rs one lakh and Rs 50 lakh is at

9.25 per cent (9 per cent).

The rate for loans of 5 years and above up to 10 years is now at 9.75 per cent (9.50

per cent).

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The interest rate for above ten years now stands at 10.25 per cent (10 per cent).

3. PROMOTION

The third habit in marketing and sales is to think in terms of promotion all the time. Promotion

includes all the ways you tell your customers about your products or services and how you then

market and sell to them. Small changes in the way you promote and sell your products can lead

to dramatic changes in your results. Even small changes in your advertising can lead

immediately to higher sales.

AXIS bank has devised an aggressive promotional strategy through its diversified distribution

mix which includes tied agencies and alternate channels like banks, brokers, telemarketing,

direct sales force, internet advertizing .

Some of the promotional activities undertaken are:

Cross Selling exercises

Organizing school level painting competitions in order to create awareness about

the environmental concerns and the wild life to promote kids advantage account.

Wheels of fortune - This promo are targeted at all those customers who avail a

personal loan, car or a two wheeler loan. There will be lucky draw at the end of

the promo and the winners would get exotic prizes.

Personalized promos by sending mailers about various products on offer to all

those who come in contact during the mass promotion strategies.

The promotional strategies are carried out with an objective of positioning AXIS

bank as a one stop financial super market. The focus of the promotions are not just

confined to acquisition of new products but also extends to creating productawareness, enhancing usage, and also provide value add to the customers for their

faith and loyalty.

These promotions are scientifically designed based on data analysis and data mining

in order to have maximum impact on the target audience.

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4. PLACE

The fourth P in the marketing mix is the place where your product or service is actually sold.

You can sell your product in many different places. Some companies use direct selling, sending

their salespeople out to personally meet and talk with the prospect. Some sell by telemarketing.

Some sell through catalogs or mail order. Many companies use a combination of one or more of

these methods. It refers to those activities of the company that makes the product available to

target consumers. It includes geographic spread, distribution channels, dealer ships that

facilitate network establishment. Axis bank is widely spread in India and its core banking

operations has huge network –

• 580 branches and extension counters foreign offices – in Singapore, Hong Kong,

Shanghai and Dubai

• 2457 ATMs reaches out to 350 cities, towns and villages across the country

AXIS bank owns a wholly owned distribution channel with dedicated workforce, thereby

lowering the operating costs. It uses its network base to good effect to sell customized products.

5. PROCESS

The fifth element in the marketing mix is the process. Develop the habit of standing back and

looking at every visual element in the process or service through the eyes of a critical prospect.

Remember, people from their first impression about you within the first 30 seconds of seeing

you or some element of your company. Small improvements in the process or external

appearance of your product or service can often lead to completely different reactions from your

customers.

With regard to the process of your company, your product or service, you should think in terms

of everything that the customer sees from the first moment of contact with your company all the

way through the purchasing process.

Process refers to the way your product or service appears from the outside. Packaging refers to

your people and how they dress and groom. It refers to your offices, your waiting rooms, your

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brochures, your correspondence and every single visual element about your company.

Everything counts. Everything helps or hurts. Everything affects your customer's confidence

about dealing with you.

6. POSITIONING

The next P is positioning, the habit of thinking continually about how you are positioned in the

hearts and minds of your customers.

How do people think and talk about you when you're not present?

How do people think and talk about your company?

What positioning do you have in your market, in terms of the specific words people use

when they describe you and your offerings to others?

AXIS Bank has positioned its branches in all the strategic position so that it is easily accessible

to maximum customer. It has also come up with some phone banking centre and centralized

collection and payment hub.

7. PEOPLE

The final P of the marketing mix is people. Develop the habit of thinking in terms of the people

inside and outside of your business who are responsible for every element of your sales and

marketing strategy and activities.

It's amazing how many entrepreneurs and businesspeople will work extremely hard to think

through every element of the marketing strategy and the marketing mix, and then pay little

attention to the fact that every single decision and policy has to be carried out by a specific

person, in a specific way. Your ability to select, recruit, hire and retain the proper people, with

the skills and abilities to do the job you need to have done, is more important than everything

else put together. An essential ingredient to any service provision is the use of appropriate staff

and people. Recruiting the right staff and training them appropriately in the delivery of service

is essential if the organization has to obtain competitive advantage.

AXIS bank values its human resources very highly and is on a constant endeavor to

continuously develop its human resources by laying strong emphasis on training development. It

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possesses a highly motivated team of professionals and has the lowest employee turnover rate in

the industry.

SERVICES ADDED TO GAIN COMPETETIVE ADVANTAGE:

BUSINESS CONTINUITY CENTRE:

UTI Bank was the first bank in the country to set up a Business Continuity Centre (BCC)

In Bangalore which replicates the entire centralized database with a view to enable the Bank to

run smoothly in case of any eventuality affecting the Bank’s Data Centre in Mumbai.

Each transaction that gets recorded at the Data Centre gets reflected almost instantaneously

through WAN on the back-up database at the BCC.

CENTRALISED PHONE BANKING CENTRE

The Bank’s Centralized Phone Banking Centre provides customers across the country

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Access to the Bank over the phone, handling multiple queries in about 7000 calls per day.

CENTRALISED COLLECTION AND PAYMENT HUB

The Bank’s Centralized Collection and Payment Hub (CCPH) manages the entire collection and

Payment activity under the Bank’s Cash Management Services (CMS) across the country,

handling on an average about Rs.5000 crores per month on the collection front and about

Rs.1500 crores per month on the payment front.

RETAIL ASSETS MANAGEMENT GROUP

The Bank’s Retail Assets Management Group (RAMG) is the operations hub of the entire

Retail asset distribution structure. In addition to opening and disbursing more than 3000

Schematic loans every month, it is responsible for the maintenance of more than 100,000

Such loan accounts, and handles the entire post – dated cheque presentation and several

Kinds of repayments for all these accounts.

ATM BACKEND CELL

The ATM Backend Cell handles the entire cash management and reconciliation of balances

pertaining to ATMs across the country and ends up tallying over four lakh

Transactions by the end of the day.

SERVICE BRANCHES

The Bank’s Service Branches in the 8 major metros take care of centralized clearing activity,

Handling more than one lakh cheques every day for outward and inward clearing.

DATA CENTRE

The Bank’s Data Centre in Mumbai, the centralized IT powerhouse is like the central nervous

system of the Bank. It is a real time 24x7 setup which manages 270 products and services of the

Bank with a database size of 1850 GB supporting on an average 42 lakh transactions per day

to service over 42 lakh customer accounts and adding new customers @ 8000 per day.

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CENTRALISED PROCESSING UNIT

The Bank’s Centralised Processing Unit (CPU) is the backbone of the Bank, managing

production and delivery of the entire range of deliverables to customers across the country

within 24 – 72 hours from the time the customer opens the account. The CPU currently handles

about 8500 new accounts every day.

JOB RESPONSIBILITIES OF A MANAGER

Job description

A banker is responsible for establishing and maintaining positive customer relationships,

planning and delivering effective sales strategies and monitoring the progress of new and

existing financial products. Bankers may work as managers in high street branches providing

operational support on a day-to-day basis, or in more specialized posts in corporate or

commercial departments at area, regional or head offices.

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Banks operate in a fiercely competitive marketplace where change is common. Products and

services offered have to develop to satisfy the expectations and demands of customers and

working with staff and customers to achieve targets has become a very major part of the role.

Typical work activities

Responsibilities and work activities may vary between retail and corporate and commercial

banking. Most retail bankers work in high street branches, dealing with both private and

corporate customers, while some work in regional or head offices. Bankers who work with

commercial or corporate customers may be based in branches or may work from specialized

area or regional offices.

Bankers who have area and regional responsibilities adopt a strategic role and, whilst retaining

overall accountability for service and product delivery, usually delegate supervision of day-to-

day operations to staff in branch outlets.

Responsibilities for both retail and corporate and commercial bankers may include:

• implementing the delivery of sales strategies and targets and motivating employees to

meet these;

• establishing and maintaining effective relationships with new and existing customers,

establishing their needs and advising on the suitability of services;

• visiting business customers and attending meetings and conferences with them and other

professionals;

• managing and supporting staff and facilitating appropriate continuing professional

development (CPD);

• communicating, implementing and monitoring compliance with corporate standards and

procedures;

• processing data to produce accurate facts, figures and reports;

• evaluating new and renewal lending proposals, negotiating terms with customers and,

where appropriate, submitting proposals to the credit department for approval;

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• checking accounts and initiating action if they are overdrawn without arrangement or are

in excess of agreed arrangements;

• assuming overall accountability for products and services, such as consumer lending,

current account transactions, unsecured loans, overdrafts, credit cards and personal

loans;

• networking with appropriate professionals;

• Representing the bank within the wider community.

EXISTING PRICING AND PROMOTIONAL STRATERGIES:

In the banking industry the pricing strategies is concerned with the rate of interest these banks

offer to the customers on there investments and also the rate of interest they levy on the

customers for different type loans. These also include service charges they charge on the

customer for the services they offer.

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PROMOTIONAL STRATERGIES:

In early 1950's most of the markets were choking with surplus products on offer, defying the

theory "the best quality will always sell". The emergence of Branding as a value in offering has

kept many organizations leaders, and in survival. Branding is termed as a part of offering,

created in the mind of customer and consumer of superior values that he or she perceives and

ready to pay for. The brand can be associated with superior product, superior services, superior

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sales after services, or easy access. In today's era with increasing competition, is that not

important enough to revisit Brand as a marketing offering (Product or Service).

GOVERNMENT REGULATION IN BANKING:

Banking Regulation Act, 1949

As per Section 5(c) of Banking Regulation Act, 1949 a "Banking Company" means any

company which transacts the business of banking in India.

Any company which is engaged in the manufacture of goods or carries on any trade and

which accepts the deposits of money from public merely for the purpose of financing its

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business as such manufacturer or trader shall not be deemed to transact the business of

banking within the meaning of this clause."

As per Section 5(b) of Banking Regulation Act, 1949 , banking means the accepting, for

the purpose of lending or investment, of deposits of money from the public, repayable

on demand or otherwise, and withdrawals by cheque, draft, order or otherwise.

As per Section 5(d) of Banking Regulation Act, 1949, company means any company as

defined in Section 3 of the Companies Act, 1956 and includes a foreign company within

the meaning of Section 591 of that Act.

As per section 51 of Banking Regulation Act, 1949, certain provisions of the Banking

Regulation Act are also applicable to the State Bank of India, any corresponding new

bank, a regional rural bank and any subsidiary bank. "Corresponding new bank" has

been defined under clause (ee) of section 2 of the DICGC Act to mean a corresponding

new bank constituted under the Banking Companies (Acquisition and Transfer of

Undertakings) Acts of 1970 or 1980.

National Housing Bank Act, 1987

Section 2(d) of the National Housing Bank Act, 1987 defines a housing finance institution as

under:

"Housing finance institution includes every institution, whether incorporated or not, which

primarily transacts or has as one of its principal objects, the transacting of the business of

providing finance for housing, whether directly or indirectly"

Reserve Bank of India Act, 1934

Section 2(d) of the National Housing Bank Act, 1987 defines a housing finance institution as

under

"Financial Institution" means any non-banking institution which carries on as its business or

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• the acquisition of shares, stock, bonds, debentures or securities issued by a government

or local authority or other marketable securities of a like nature;

• letting or delivering of any goods to a hirer under a hire-purchase agreement as defined

in clause (c ) of section 2 of the Hire-Purchase Act, 1972;

• the carrying on of any class of insurance business;

• managing, conducting or supervising, as foreman, agent or in any other capacity, of chits

or kuries as defined in any law which is for the time being in force in any State, or any

business, which is similar thereto;

• collecting, for any purpose or under any scheme of arrangement by whatever name

called monies in lump sum or otherwise, by way of subscriptions or by sale of units, or

other instruments or in any other manner and awarding prizes or gifts, whether in cash

or kind, or disbursing monies in any other way, to persons from whom monies are

collected or to any other person.

As per Section 45-I (f) of the RBI act, "non-banking financial company" means: - a financial

institution which is a company;

a non banking institution which is a company and which has as its principal business the

receiving of deposits, under any scheme of arrangement or in any other manner, or lending

Tiny manner;

EXISTING MARKETING STRATERGIES TO GAIN UPPER MARKET SHARE:

The Bank continues to identify new thrust areas to sustain its growth, and these include:

Growth in credit to the SME and agriculture sectors that will be driven by a network of

rural and semi urban branches supported by organizational reinforcement in the form of

SME cells and agriculture clusters.

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the financing, whether by way of making loans or advances or otherwise, of any

activity other than its own;




Reinforcement of the international remittance business. The Bank has already tied up

with various banks and exchange houses in the Gulf for tapping the high-volume

remittance business emanating from this region.

New initiatives such as Wealth Management will enable the Bank to advice and to cross-

sell third party products to high net-worth customers.

An expansion in the overseas branch and representative office network, commencing

with the first branch in Singapore, will create opportunities for cross-border trade

finance, syndication of debt and NRI business.

RECOMMENDATIONS TO THE COMPANY TO GAIN UPPER MARKET SHARE:

UTI Bank was one of the first private banks to launch operations in the country in 1994, after

the Government of India passed a resolution in favor of privatization. An IT savvy bank, UTI

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Bank is a pioneer in adopting new technologies in the banking sector. UTI has a very large

network of branch offices and extension counters across the country. With over 1700 ATMs,

UTI Bank has the largest ATM network of its kind in India.

CRM:

Privatization opened up the Indian banking sector, allowing a large number of players to offer

retail banking services in the country. Using the latest technologies, UTI Bank introduced

quality services to enhance the banking experience of its customers. As the services stack

expanded, supporting customers became a challenging task. Efficient service and timely support

were the deciding factors for customers to remain loyal to any particular bank, which brought

Customer Relationship Management (CRM) into sharp focus.

BPO:

UTI Bank wanted to establish itself as a customer focused bank and carve a niche for itself

amidst the widespread competition. Setting up a state of the art call center facility that could

provide quality support to customers across the country became vital to further this goal. The

call center was expected to eliminate the load of routine queries that branch operators had to

handle. A dedicated response center would allow branch operators to divert all customers’

queries to the helpdesk number and focus on their core responsibilities instead. Also, a single

window service with a populated knowledgebase would introduce a high degree of

standardization in the replies given to customer queries. The bank was also looking to avoid a

situation where customers would be put on hold for long periods of time. A failover and

redundancy solution was required to guarantee high availability of services and ensure

uninterrupted call traffic. For handling large call volumes, the application infrastructure was

also required to be perfectly scalable. The bank wanted a solution that could accommodate

growth over a long period of time.

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Conclusion

UTI Bank has been turned into an Open Source believer after the success of its call center

project. The bank has set the lead for the hundreds of BPOs and call centers in the country to

follow. By running their CRM infrastructure on an open, standards based platform .BPOs can

achieve significant TCO reduction along with high performance and security.

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BIBLIOGRAPHY:

1. www.utibank.com

2. www.google.co.in

3. www.finance.india.mart.com

4. www.banknetindia.com

5. www.rbi.org

6. www.moneycontrol.com

http://www.utibank.com/

http://www.google.co.in/

http://www.finance.india.mart.com/

http://www.banknetindia.com/

http://www.rbi.org/

http://www.moneycontrol.com/


http://www.utibank.com/

http://www.google.co.in/

http://www.finance.india.mart.com/

http://www.banknetindia.com/

http://www.rbi.org/

http://www.moneycontrol.com/

Documents

Ashish Kumar Synopsis Report on-Axis-Bank