Axis bankReinventing banking

Presented by :Aakriti Dhawan- A21Sumit Nandal- D27

Abhishek Kumar- D38Utkarsh Jaiswal- D41

Indian Banking System

History of Banking in India

The first bank in India, though conservative, was established in 1786. the journey of Indian Banking System can be segregated into three distinct phases.

Phase 1 1786 to 1969

• 1786 : The General Bank of India • 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.

Phase 2

• In 1955, it nationalised Imperial Bank of India with extensive banking facilities on a large scale specially in rural and semi-urban areas.

• It formed State Bank of India to act as the principal agent of RBI

• 7 Banks formed subsidiary of State Bank of India were nationalised.

Phase 3

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

• In 1991, under the chairmanship of M Narasimha, 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 were being put to give a satisfactory service to customers.

• Phone banking and net banking was introduced. • The entire system became more convenient and

swift. • Time was given more importance than money.

Emergence of Private Banks• Private banking in India was practiced since the beginning of

banking system in India.

• The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited.

• It was incorporated in August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled Commercial Bank in January 1995.

List of Private Banks in India• Bank of Punjab • Bank of Rajasthan • Catholic Syrian Bank • Centurion Bank • City Union Bank • Dhanalakshmi Bank • Development Credit Bank • Federal Bank • HDFC Bank • ICICI Bank

• IDBI Bank • IndusInd Bank • ING Vysya Bank • Jammu & Kashmir Bank • Karnataka Bank • Karur Vysya Bank • Laxmi Vilas Bank • South Indian Bank • United Western Bank • UTI Bank

UTI BANK

Introduction Axis Bank (Formerly known as UTI) was one of the few

private banks to have began operations in 1994 The Bank was promoted jointly by the Administrator of

the specified undertaking of the Unit Trust of India (UTI)

• Life Insurance Corporation of India (LIC). • General Insurance Corporation Ltd (GIC). • National Insurance Company Ltd. • The New India Assurance Company. • The Oriental Insurance Corporation. • United Insurance Company Ltd.

Journey From UTI to AXIS

1994-1997

• Incorporated as UTI Bank, headquartered in Mumbai

• First Branch inaugurated at Ahmedabad• Completes first profitable year in operation in

1995• Deposit crosses Rs.10bn mark in 1996

1998-2000

• Successfully completes its IPO in 1998 and gets itself listed on NSE and BSE

• Cash management services as well as credit card launched

• Profit crosses Rs.500m in 2000• Launches Internet banking module, iConnect retail loans

introduced• Financial advisory services and e-commerce introduced• Second largest ATM network in the country with 200

ATMs

2001-2005

• Private placement of 26% stake to CDC Capital Partners

• Deposit crosses Rs.100bn mark in 2001, advances crosses Rs.50bn

• First commercial bank to open an ATM at a post office

• Crosses the 1,000 ATM mark in 2003• Gets listed on the London Stock Exchange, raises

$239.3m

2006-2008

• Opens its first international branch in Singapore• Opens Representative Office in Shanghai• Crosses the 2,000 ATM mark in 2006• Opens a Full Licence Bank Branch in Hong Kong• Re-brands itself as Axis Bank• Mumbai, Jul 30 2007 : UTI Bank on Monday

rechristened itself as Axis Bank.

PROBLEM

• WHY THEY CHANGE THEIR NAME FROM UTI TO AXIS BANK

THERE ARE 3 MAIN REASONS

1. They had to give up the UTI name after using it for 13 years as we were not prepared to accept terms and conditions (including royalty) from UTI AMC

• The decision to rebrand itself was taken by the bank as it was allowed to use the 'UTI' brand name for free till January 31, 2008, beyond which it had to pay royalty for using the name.

2. The recommendation for name change to Axis Bank has arisen from the existence of several shareholder-unrelated entities using the UTI brand, and the consequent brand confusion that this generates

3. The name UTI bank was changed to AXIS bank as UTI gave a look of government sector bank. They had to change our name to have our own brand and identity.

Rebranding Exercise• "The name was taken into effect consequent to the approval

of shareholders, Reserve Bank of India and the central government (Registrar of Companies).

• The UTI brand is owned by UTI Asset Management Company

• The bank would change logo and colour of logo the bank is likely to spend around Rs 50 crore in the re-branding exercise.

• The bank acquired the services of Ogilvy & Mather (O&M) to design and implement the rebranding campaign

The new name AXIS

• The new name was chosen considering the bank’s pan-Indian as well as international presence.

• The first time that a bank has dropped an established brand for an unknown name.

• The name Axis is chosen as it is simple and it conveys a sense of solidity and a sense of maturity. It also has a universal appeal.

The New Logo

The logo depicts a strong growth path for the bank supported by a strong base, indicating that the bank is

moving on from a position of strength.

ABOUT AXIS

Mission

• Customer Service and Product Innovation tuned to diverse needs of individual and corporate clientele.

• Continuous technology up gradation while maintaining human values.

• Progressive globalization and achieving international standards.

• Efficiency and effectiveness built on ethical practices.

Core Values of Axis

• Customer Satisfaction through• Providing quality service effectively and efficiently• "Smile, it enhances your face value" is a service quality

stressed on• Periodic Customer Service Audits

• Maximizations of Stakeholder value

• Success through Teamwork, Integrity and People

• The banks business is divided into four segments:

• Retail, corporate, treasury and merchant banking.

• Apart from this the bank is also into insurance, investment banking, mortgage financing, credit cards, and depository services amongst others.

• it is also registered on the following exchanges: • OTCEI • BSE • NSE • London stock exchange

Services

Retail banking • Deposits schemes • Loans and advances

– Personal loans – Housing loans – Cards – Consumer durables – Auto loans

Personal banking • Accounts

– Term deposit – Fixed deposit – Recurring deposit

• Cards – Different variant like: Gold plus card, Gold card, Silver & silver

plus cards.

Corporate banking • Accounts

– Normal Current Account – Trust/NGO Savings Account

• Services – Private Equity, Mergers & Acquisitions – Advisory Services – Capital Market Funding – E-Broking

Recent Developments

• Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.

• The bank now has 835 branches including extension networks across 30 States and 4 Union Territories.

• The bank also has overseas offices in Singapore, China, Hong Kong and Dubai.

• Crosses the 3,723 ATM mark in 2009

• Launches Platinum Credit Card, India's first EMV chip based card

• Axis Bank is now trading at Rs 911.85 (17th sep 2013).

Axis Bank

Marketing Overview

Marketing Objectives

Axis Bank want to achieve following marketing objectives by the end of the year 2014.

• To get the market capitalization 500 Crore• To get the 200 Crore retail investment. • To get 125 Crore Corporate investments. • To get the 175 Crore Capital investments.

REBRANDING

• Has retained the burgundy color, but has changed the logo.

• Spend around Rs50 Crore in the re-branding exercise.

• Had hired advertising firm O&M.

Bankers Identify Near-Team and Long Term Concerns

1991 2015

Maintaining profitability

Credit Portfolio Management

Service Quality

Regional Economy

Cost Management / Expense reduction

Declining Earnings/ more failures

Market / customer focus

Capital adequacy

Stock market value

Industry Overcapacity

Service quality

Maintaining profitability

Market / customer focus

Operations/systems/technology

Credit portfolio management

Productivity improvement

Investment to stay competitive

Stock market value

Asset/liability management

Electronic Banking

SWOT ANALYSIS OF AXIS BANK

THREATS:Advent of MNC banksForeign banks Govt. banks Future market trends.

SWOT

Features Of Axis Bank

• Anywhere Banking• Instant Fund Transfer• Internet Banking• At-Par (Multicity) Chequebook• ATM cum Debit Card• Mobile Banking• Phone Banking

Marketing Mix in Banking Industries

• Product.• Price.• Place.• Promotion.

Other than these:

• People.• Process.• Physical Evidence.

7 P’s OF MARKETING OF AXIS BANK

Product Mix:• Deposits• Investments• Anywhere banking• Loans• Cards• Mobile banking• NRI services

PRICING MIX

• Value for money.• Lower fee charged.

PLACE MIX

• Making available the promised services to the ultimate users.

• Selecting a suitable place for bank branches.

• Plans to set up 210 more branches across the country in this fiscal.

PROMOTION MIX

• Advertising• Print media• Publicity• Sales promotion• Personal selling• Telemarketing

PROCESS MIX

• Flow of activities• Standardization• Customization• Number of steps• Simplicity

PHYSICAL EVIDENCE

• Internet • Paperwork • Brochures • Furnishings • Business cards• Tangibles• Punch lines• Employee’s dress code

PEOPLE

• EMPLOYEES

Positioning strategy– Axis bank has positioned itself as a bank

which gives higher standard of services through product innovation for the diverse need of individual & corporate clients. So they want to highlight following points in their positioning statement:

• Customer centric • Service oriented • Product innovation

The Communication Strategy Worksheet

– What are the Communication Objectives ? • Bring the bank into the top 3 banks in India. (At present

it is on 5th position). • Generate Brand awareness. • Develop positive attitude about the brand. • Give product information. • Communicate Bank’s emphasis on high standard of

services. – Result of the communication exercise:

• Image change about the bank. • Purchase our services.

SUNTEC’S TOOL FOR AXIS BANK

• AXIS Bank Chose SunTec Business Solutions software to centralize and streamline the bank’s pricing and billing processes.

• Implemented a solution that helps Axis Bank create personalized product packages and manage fee billing for payment and cash management, while having a unified view of its customers.

• Axis Bank is SunTec’s second banking services client in India, after ICICI Bank.

Services Offered

• Atom Technologies, A Subsidiary Of The BSE-listed Financial Technologies (India) Ltd (FTIL), Which Runs The Multi Commodity Exchange Of India Has Innovated A Technology, Which Enables Mobile Payments.

• Electronic Clearing Service (ECS Credit) .• NEFT.• Real Time Gross Settlement (RTGS).• EBS (E-Billing Solutions)

TECHNOLOGICAL ADVANCEMENTS• Extensive Network . • Centralized Service Desk.

• Comprehensive MIS .

• Mobile Alert Service.

Information Technology:

• Played a vital role in growth of organization

• To retain a competitive edge, the Bank's technology infrastructure is continuously upgraded

• Use of technology-first among Indian banks in submitting centralised Return

for foreign exchange transactions first bank in the India to market EMV chip embedded

Debit Platinum, Travel Currency and Credit Platinum cards

New Initiatives

Remittance Card:

• A unique product that has changed the way money is sent across borders.

• Available as a delivery mode for remittances made through the Web Portal www.Remit2India.com.

• Based on the remitter’s request, a personalised Remittance Card is prepared for the beneficiary, which is preloaded with the funds remitted to him in INR.

VISA Money Transfer Service:

• To send money from an AXIS Bank account to any of the VISA Cards issued in India

• To pay VISA credit card bills by giving the card number and making a direct payment

• The sender’s account would be debited instantaneously with the transferred amount, but the funds will reach the beneficiary’s VISA Card within one or two days.

• The service has been enabled through all Axis bank’s ATMs and i-Connect (Internet Banking)

EMV standard based Platinum Credit Card:

• Card has an embedded chip, which stores cardholder’s information in an encrypted format, thereby providing the highest level of security to the cardholder against possible misuse.

• Offers clear authentication of debit and credit payments combined with easy fraud detection.

• The chip cannot be duplicated, ruling out counterfeiting and skimming. This makes your card safer and secure than any other card in India.

Growth Prospects of Axis• Over the last five years, the CAGR for loan growth for the banking industry

has been 25-26 per cent; for Axis Bank it has been above 40 per cent. • Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-

1.7x the industry average. • In FY09 its advances grew at the rate of 37.5 per cent. • In FY10 they are expected to grow at the rate of 27-28 per cent and in

FY11 at 25 per cent. • For the banking industry as a whole, the loan book is expected to grow at

18 per cent in FY10 and 16 per cent in FY11. • Thus, Axis Bank’s fast pace of growth is expected to sustain over the next

couple of years.

Conclusion !!!!

• AXIS bank has differentiated itself very well on the basis of high level service and product quality.

• They have successfully implemented the change and due to this their market share has increased only despite of tough competition prevails.

Thank You