SERVICES MANAGEMENT

INDUSTRY: - BANKING
COMPANY:- AXIS BANK

SUBMITTED BY:RAJU KUMAR SHARMA-JIML 11 FS 042

VIKAS SINGH-JIML 11 FS 060
SANSKRITI CHATURVEDI-JIML 11 142
SHAILENDRA MUKHARIYA-JIML 11 FS 050
RISHAB MITRA-JIML 11 135

Introduction
Indian banking is the lifeline of the nation and its people. Banking has helped in developing
the vital sectors of the economy and usher in a new dawn of progress on the Indian horizon.
The sector has translated the hopes and aspirations of millions of people into reality. But to
do so, it has had to control miles and miles of difficult terrain, suffer the indignities of foreign
rule and the pangs of partition. Today, Indian banks can confidently compete with modern
banks of the world. Before the 20th century, usury, or lending money at a high rate of interest,
was widely prevalent in rural India. Entry of Joint stock banks and development of
Cooperative movement have taken over a good deal of business from the hands of the Indian
money lender, who although still exist, have lost his menacing teeth. In the Indian Banking
System, Cooperative banks exist side by side with commercial banks and play a
supplementary role in providing need-based finance, especially for agricultural and
agriculture-based operations including farming, cattle, milk, hatchery, personal finance etc.
along with some small industries and self-employment driven activities. Generally, cooperative banks are governed by the respective co-operative acts of state governments. But,
since banks began to be regulated by the RBI after 1 st March 1966, these banks are also
regulated by the RBI after amendment to the Banking Regulation Act 1949. The Reserve
Bank is responsible for licensing of banks and branches, and it also regulates credit limits to
state co-operative banks on behalf of primary co-operative banks for financing SSI units.
Banking in India originated in the first decade of 18th century with The General Bank of
India coming into existence in 1786. This was followed by Bank of Hindustan. Both these
banks are now defunct. After this, the Indian government established three presidency banks
in India. The first of three was the Bank of Bengal, which obtains charter in 1809, the other
two presidency bank, viz., the Bank of Bombay and the Bank of Madras, were established in
1840 and 1843, respectively. The three presidency banks were subsequently amalgamated
into the Imperial Bank of India (IBI) under the Imperial Bank of India Act, 1920 which is
now known as the State Bank of India. A couple of decades later, foreign banks like Credit
Lyonnais started their Calcutta operations in the 1850s. At that point of time, Calcutta was the
most active trading port, mainly due to the trade of the British Empire, and due to which
banking activity took roots there and prospered. The first fully Indian owned bank was the
Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the
establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India,
in 1906, in Mumbai both of which were founded under private ownership. The Reserve
Bank of India formally took on the responsibility of regulating the Indian banking sector from
1935. After Indias independence in 1947, the Reserve Bank was nationalized and given
broader powers. As the banking institutions expand and become increasingly complex under
the impact of deregulation, innovation and technological upgradation, it is crucial to maintain
balance between efficiency and stability. During the last 30 years since nationalization
tremendous changes have taken place in the financial markets as well as in the banking
industry due to financial sector reforms. The banks have shed their traditional functions and
have been innovating, improving and coming out with new types of services to cater
emerging needs of their customers. Banks have been given greater freedom to frame their
own policies. Rapid advancement of technology has contributed to significant reduction in
transaction costs, facilitated greater diversification of portfolio and improvements in credit
delivery of banks. Prudential norms, in line with international standards, have been put in
place for promoting and enhancing the efficiency of banks. The process of institution

building has been strengthened with several measures in the areas of debt recovery, asset
reconstruction and securitization, consolidation, convergence, mass banking etc.
Despite this commendable progress, serious problem have emerged reflecting in a decline in
productivity and efficiency, and erosion of the profitability of the banking sector. There has
been deterioration in the quality of loan portfolio which, in turn, has come in the way of
banks income generation and enchancement of their capital funds. Inadequacy of capital has
been accompanied by inadequacy of loan loss provisions resulting into the adverse impact on
the depositors and investors confidence. The Government, therefore, set up Narasimham
Committee to look into the problems and recommend measures to improve the health of the
financial system. The acceptance of the Narasimham Committee recommendations by the
Government has resulted in transformation of hitherto highly regimented and
overbureaucratized banking system into market driven and extremely competitive one.The
massive and speedy expansion and diversification of banking has not been without its strains.
The banking industry is entering a new phase in which it will be facing increasing
competition from non-banks not only in the domestic market but in the international markets
also. The operational structure of banking in India is expected to undergo a profound change
during the next decade. With the emergence of new private banks, the private bank sector has
become enriched and diversified with focus spread to the wholesale as well as retail banking.
The existing banks have wide branch network and geographic spread, whereas the new
private banks have the clout of massive capital, lean personnel component, the expertise in
developing sophisticated financial products and use of state-of-the-art technology. Gradual
deregulation that is being ushered in while stimulating the competition would also facilitate
forging mutually beneficial relationships, which would ultimately enhance the quality and
content of banking. In the final phase, the banking system in India will give a good account
of itself only with the combined efforts of cooperative banks, regional rural banks and
development banking institutions which are expected to provide an adequate number of
effective retail outlets to meet the emerging socio-economic challenges during the next two
decades. The electronic age has also affected the banking system, leading to very fast
electronic fund transfer. However, the development of electronic banking has also led to new
areas of risk such as data security and integrity requiring new techniques of risk management.
Cooperative (mutual) banks are an important part of many financial systems. In a number of
countries, they are among the largest financial institutions when considered as a group.
Moreover, the share of cooperative banks has been increasing in recent years; in the sample
of banks in advanced economies and emerging markets analyzed in this paper, the market
share of cooperative banks in terms of total banking sector assets increased from about 9
percent in mid- 1990s to about 14 percent in 2004.

Growth and contribution of Banking industry to GDP.

Importance of Banking Industry In the analytical and empirical literature on the subject of
finance and growth, there is a consensus among economists that development of the financial
system contributes to economic growth .Financial development creates enabling conditions
for growth through either a supply-leading (financial development spurs growth) or a
demand-following (growth generates demand for financial products) channel. Banking
industry depends on the overall growth of economy. Other sectors like cement, steel and
consumer durables are dependent on banking sector and move in tandem. Although the Indian

economy has done relatively better in these crisis years compared to other countries in the
emerging markets peer group, the slowdown in fiscal 2012 is deeper than anticipated.
Accordingly, the estimates of GDP growth is estimated to be around 5.5% for the F.Y 2012,
lower than the average growth rate of 8.50% of the previous years. Over the last few years,
India has become increasingly integrated with the global economy, both through trade and
through exposure to financial markets. The loss of export markets has consequently hit
domestic demand quite hard, particularly as many export segments are also employment
intensive. The performance of the Banks in 2011-12 should be viewed in the backdrop of the
global and Euro crisis. Unlike developed economies, the slowdown in India has not been led
by the financial sector but affected by mainly the following:
(a) The sharp slowdown in global import demand resulted in an export slowdown,
(b) A contraction in the availability of global finance, particularly export finance, and an
increase in the costs of foreign currency funds
(c) Slowdown in investment plans of many corporate in anticipation of a demand slowdown.

Marketing in banks:The bank marketing is than an approach to market the services profitability. It is a device to
maintain commercial viability. The changing perception of bank marketing has made it a
social process. The significant properties of the holistic concept of management and
marketing has made bank marketing a device to establish a balance between the commercial
and social considerations, often considered to the be opposite of each other. A collaboration
of two words banks and marketing thus focuses our attention on the following:
* Bank marketing is a managerial approach to survive in highly competitive market as well
as reliable service delivery to target customers.
* It is a social process to sub serve social interests.
* It is a fair way of making profits
* It is an art to make possible performance-orientation.
* It is a professionally tested skill to excel competition.

Users of Banking Services:

The emerging trends in the level of expectation affect the formulation of marketing mix.
Innovative efforts become essential the moment it finds a change in the level of expectations.
There are two types of customers using the services of banks, such as general customers and
the industrial customers.

General Users:
Persons having an account in the bank and using the banking facilities at the terms and
conditions fixed by a bank are known as general users of the banking services. Generally,
they are the users having small sized and less frequent transactions or availing very limited
services of banks.

Industrial Users:
The industrialists, entrepreneurs having an account in the bank and using credit facilities and
other services for their numerous operations like establishments and expansion, mergers,
acquisitions etc. of their businesses are known as industrial users. Generally, they are found a
few but large sized customers.
Bank Marketing In the Indian Perspective:
The formulation of business policies is substantially influenced by the emerging trends in the
national and international scenario. The GDP, per capita income, expectation, the rate of
literacy, the geographic and demographic considerations, the rural or urban orientation, the
margins in economic systems, and the spread of technologies are some of the key factors
governing the development plan of an organization, especially banking organization. In ours
developing economy, the formulation of a sound marketing mix is found a difficult task. The
nationalization of the Reserve Bank of India (RBI) is a landmark in the development of
Indian Banking system that have paved numerous paths for qualitative-cum quantities
improvements in true sense. Subsequently, the RBI and the policy makers of the public
sector commercial banks think in favor of conceptualizing modern marketing which would
bring a radical change in the process of quality up gradation and village to village
commercial viability.

Bank Marketing Mix and Strategies:

The first task before the public sector commercial Banks is to formulate that Bank marketing
mix which suits the national socio-economic requirements. Some have 4 P's and some have 7
P's of marketing mix. The common four Ps of Marketing mix are as follows:Product:
To be more specific the peripheral services need frequent innovations, since this would be
helpful in excelling competition. The product portfolio designing is found significant to
maintain the commercial viability of the public sector banks. The banks professionals need to

assign due weightage to their physical properties. They are supposed to look smart active and
attractive.
Price:
Price is a critical and important factor of bank marketing mix due numerous players in the
industry .Most consumers will only be prepared to invest their money in search of
extraordinary or higher returns. They are ready to pay additional value if there is a perception
of extra product value. This value may be improved performance, function, services,
reliability, promptness for problem solving and of course, higher rate of return.
Promotion:
Bank Marketing is actually is the marketing of reliability and faith of the people.It is the
responsibility of the banking industry to take people in favor through Word of mouth
publicity, reliability showing through long years of establishment and other services.
Place:
The choice of where and when to make a product available will have significant impact on
the customers. Customers often need to avail banking services fast for this they require the
bank braches near to their official area or the place of easy access.

Challenges to Indian Banking:

The banking industry in India is undergoing a major change due to the advancement in
Indian economy and continuous deregulation. These multiple changes happening in series has
a ripple effect on banking industry which is trying to be organized completely, regulated
sellers of market to completed deregulated customers market20
1. Deregulation:
This continuous deregulation has given rise to extreme competition with greater autonomy,
operational flexibility, and decontrolled interest rate and liberalized norms and policies for
foreign exchange in banking market. The deregulation of the industry coupled with decontrol
in the interest rates has led to entry of a number of players in the banking industry. Thereby
reduced corporate credit off which has resulted in large number of competitors battling for
the same pie.
2. Modified New rules:
As a result, the market place has been redefined with new rules of the game. Banks are
transforming to universal banking, adding new channels with lucrative pricing and freebees
to offer. New channels squeezed spreads, demanding customers better service, marketing
skills heightened competition, defined new rules of the game pressure on efficiency. Need
for new orientation diffused customer loyalty. Bank has led to a series of innovative product
offerings catering to various customer segments, specifically retail credit.
3. Efficiency:
Excellent efficiencies are required at banker's end to establish a balance between the
commercial and social considerations Bank need to access low cost
funds and
simultaneously improve the efficiency and efficacy. Owing to cutthroat competition in the
industry, banks are facing pricing pressure, have to give thrust on retail assets.

4. Diffused customer loyalty:

Attractive offers by MNC and other nationalized banks, customers have become more
demanding and the loyalties are diffused. Value added offerings bound customers to change
their preferences and perspective. These are multiple choices; the wallet share is reduced per
bank with demand on flexibility and customization. Given the relatively low switching costs;
customer retention calls for customized service and hassle free, flawless service delivery.
5. Misaligned mindset:
These changes are creating challenges,as employees are made to adapt to changing
conditions. The employees are resisting to change and the seller market mindset is yet to be
changed. These problems coupled with fear of uncertainty and control orientation. Moreover
banking industry is accepting the latest technology but utilization is far below from
satisfactory level.
6. Competency gap:
The competency gap needs to be addressed simultaneously otherwise there will be missed
opportunities. Placing the right skill at the right place will determine success. The focus of
people will be doing work but not providing solutions, on escalating problems rather than
solving them and on disposing customers instead of using the opportunity to cross sell.
Strategic options to cope with the challenges:
Dominant players in the industry have embarked on a series of strategic and tactical
initiatives to sustain leadership. The major initiatives incorporate:
a) Focus on ensuring reliable service delivery through Investing on and implementing right
technology..
b) Leveraging the branch networks and sales structure to mobilize low cost current and
savings deposits.
c) Making aggressive forays in the retail advances segments of home and personal loans.
d) Implementing initiatives involving people, process and technology to reduce the fixed
costs and the cost per transaction.
e) Focusing on fee based income to compensate foe squeezed spread.
f) Innovating products to capture customer 'mind share' to begin with and later the wallet
share.
g) Improving the asset quality as Basel II norms.
The banking environment of today is rapidly changing and the rules of yesterday no longer
applicable. The corporate and the legal barriers that separate the various banking, investment
and insurance sectors are less well defined and the cross-over are increasing. As a
consequence the marketing function is also changing to better support the bank in this
dynamic market environment. The key marketing challenge today is to support and advice on
the focus positioning and marketing resources needed to deliver performance on the banking
products and services. Marketing, as an investment advisor, is about defining 4Ps and
implementing key strategic initiatives to Market segments, increasingly redefined, relevant
micro-segments to survive and flourish in the highly competitive market.

SWOT Analysis of Indian Banking Industry:-

STRENGTH
Indian banks have compared favourably on growth, asset quality and profitability with
other emerging economies banks over the last few years.
Policy makers have made some notable changes in policy and regulation to help strengthen
the sector. These changes include strengthening prudential norms, enhancing the payments
system and integrating regulations between commercial and co-operative banks.
Bank lending has been a significant driver of GDP growth and employment.
Extensive reach: the vast networking & growing number of branches & ATMs. Indian
banking system has reached even to the remote corners of the country.
In terms of quality of assets and capital adequacy, Indian banks are considered to have
clean, strong and transparent balance sheets relative to other banks in comparable economies
in its region.
Foreign banks will have the opportunity to own up to 74 per cent of Indian private sector
banks and 20 per cent of government owned banks.
WEAKNESS
PSUs need to fundamentally strengthen institutional skill levels especially in sales and
marketing, service operations, risk management and the overall organisational performance
ethic & strengthen human capital.
Old private sector banks also have the need to fundamentally strengthen skill
levels.
The cost of intermediation remains high and bank penetration is limited to only a few
customer segments and geographies.
Structural weaknesses such as a fragmented industry structure, restrictions on capital
availability and deployment, lack of institutional support infrastructure, restrictive labour
laws, weak corporate governance and ineffective regulations beyond Scheduled Commercial
Banks (SCBs), unless industry utilities and service bureaus.
Refusal to dilute stake in PSU banks: The government has refused to dilute its stake in PSU
banks below 51% thus choking the headroom available to these banks for raining equity
capital.

OPPORTUNITY
The market is seeing discontinuous growth driven by new products and services that
include opportunities in credit cards, consumer finance and wealth management on the retail
side, and in fee-based income and investment banking on the wholesale banking side. These
require new skills in sales & marketing, credit and operations.
With increased interest in India, competition from foreign banks will only intensify.
Given the demographic shifts resulting from changes in age profile and household income,
consumers will increasingly demand enhanced institutional capabilities and service levels
from banks.
New private banks could reach the next level of their growth in the Indian banking sector
by continuing to innovate and develop differentiated business models to profitably serve
segments like the rural/low income and affluent/HNI segments; actively adopting acquisitions
as a means to grow and reaching the next level of performance in their service platforms.
Attracting, developing and retaining more leadership capacity.
Foreign banks committed to making a play in India will need to adopt alternative
approaches to win the race for the customer and build a value-creating customer franchise
in advance of regulations potentially opening up post 2009. At the same time, they should
stay in the game for potential acquisition opportunities as and when they appear in the near
term. Maintaining a fundamentally long-term value-creation mindset.
Reach in rural India for the private sector and foreign banks.
With the growth in the Indian economy expected to be strong for quite some timeespecially in its services sector-the demand for banking services, especially retail banking,
mortgages and investment services are expected to be strong.
Reserve Bank of India (RBI) has approved a proposal from the government to amend the
Banking Regulation Act to permit banks to trade in commodities and commodity derivatives.
Hybrid capital: In an attempt to relieve banks of their capital crunch, the RBI has allowed
them to raise perpetual bonds and other hybrid capital securities to shore up their capital. If
the new instruments find takers, it would help PSU banks, left
with little headroom for raising equity.
THREATS
Threat of stability of the system: failure of some weak banks has often threatened the
stability of the system.
Rise in inflation figures which would lead to increase in interest rates.

Increase in the number of foreign players would pose a threat to the PSB as well as the
private players.

AXIS BANK
AXIS Bank is one of the fastest growing banks in private sector. The Bank operates in four
segments, namely treasury, retail banking, corporate/ wholesale banking and other banking
business. The treasury operations include investments in sovereign and corporate debt, equity
and mutual funds, trading operations, derivative trading and foreign exchange operations on
the account, and for customers and central funding. The Bank's registered office is located at
Ahmedabad and their Central Office is located at Mumbai. The Bank has a very wide
network of more than 1042 branches (including 56 Service Branches/ CPCs as on June 30,
2010). The Bank has a network of over 4,474 ATMs providing 24 hrs a day banking
convenience to their customers. This is one of the largest ATM networks in the country. The
Bank has five wholly-owned subsidiaries namely Axis Securities and Sales Ltd, Axis Private
Equity Ltd, Axis Trustee Services Ltd, Axis Asset Management Company Ltd and Axis
Mutual Fund Trustee Ltd. Axis Bank was incorporated in the year 1993 with the name UTI
Bank Ltd. The Bank was the first private banks to have begun operations after the
Government of India allowed new private banks to be established In the year 2003, the Bank
was given the authorized to handle Government transactions such as collection of
Government taxes, to handle the expenditure related payments of Central Government
Ministries and Departments and pension payments on behalf of Civil and Non-civil
Ministries such as defence, posts, telecom and railways. The Bank changed their name from
UTI Bank Ltd to Axis Bank Ltd with effect from July 30, 2007 to avoid confusion with other
unrelated entities with similar name. During the year, they opened 831 ATMs, thereby taking
the ATM network of the Bank from 2,764 to 3,595.
Axis Bank is the first bank in the country to provide a secure debit card-based payment
service over IVR. During the year 2010-11, 407 new branches were added to the Bank's
network taking the total number of branches and extension counters (ECs) to 1,390. Of these,
564 branches/ ECs are in semi-urban and rural areas and 826 branches/ECs are in
metropolitan and urban areas. The Bank is present in all states and Union Territories (except
Lakshadweep) covering 921 centres. The ATM network of the Bank increased from 4,293 to
6,270. During the year, the Bank also opened a Representative Office in Abu Dhabi. This was

in addition to the existing branches at Singapore, Hong Kong and DIFC (Dubai International
Financial Centre) and representative offices at Shanghai and Dubai. In March 7, 2011, the
Bank incorporated a new subsidiary namely Axis U.K. Ltd. as a private limited company
registered in the United Kingdom (UK) with the main purpose of filing an application with
Financial Services Authority (FSA), UK for a banking license in the UK and for the creation
of necessary infrastructure for the subsidiary to commence banking business in the UK.
VISION & VALUES:
VISION 2015: To be the preferred financial solutions provider excelling in customer delivery
through insight, empowered employees and smart use of technology
Core Values

Customer Centricity
Ethics
Transparency
Teamwork
Ownership

CUSTOMER RELATIONSHIP MANAGEMENT

One of the important marketing tools in the developed countries is Relationship Marketing.
The CRM is a comprehensive approach for creating, maintaining and expanding relationship
with the customers. It has emerged as one of the most widely prescribed solutions for
diminishing market share and sluggish growth of many industries in general and banking and
financial sector in particular. CRM is a simple philosophy, which places the customer at the
heart of the business processes, activities and cultures for improving customer satisfaction
and maximizing profits. In one of the encompassing definitions, CRM is described as the
establishment, development, maintenance, and optimization of long term, mutually-valuable
relationship between the customers and the organizations. It is a comprehensive approach for
creating, maintaining and expanding relationship with the customers.
The concept of CRM is very important to the business sector. The essence of the business has
been described by Mr. Peter Drucker, the Management Guru as, the purpose of the business
is to attract and retain a good customer. Good Customer Service is the best brand

ambassador for any bank. The entire business process consists of highly integrated efforts to
discover, create, arouse and satisfy customers needs. The modern business has realized it and
is making all out efforts to become customer-centric across the globe.
Hence, CRM is not a once-for-all affair but a continuous process. It is the way of carrying out
business covering all the aspects of the modern business. It is an integral approach of dealing
with customers by deploying the advanced information technology.
CRM is the Information Technology face of the business process that aims to establish
enduring and mutually-beneficial relationships with customers in order to drive customer
retention, value and profitability. It is meant for a common and equal good of the two
stakeholders-businesses and their customers. It calls for capturing pertinent data about the
prospective and current customers in respect of their buying pattern, shopping behavior and
usage habits. It represents the current philosophy that the businesses should be customer
oriented.
CRM is a tool for delivering a variety of marketing dreams such as:

To target and serve customers on an individual basis. It permits one to one marketing

as opposed to mass marketing.

It helps in establishing durable relationship with customers.
It is to dis-intermediarize channels of the wasteful barriers and distortions.
It helps in reducing marketing cost progressively.

Requirements of an effective CRM Structure

An effective CRM system consists of the following:
(i) Personal Customer Needs

Personal contact
A knowledgeable and reliable banker.
Relevant Information.
Customized and timely solutions
Value for money.

(ii). Business Customer Needs

A professional partnership approach.

High levels of information.
Customized and highly responsive service.
Quality Customer Information.

Benefits of CRM

Benefits of CRM can be categorized into three groups namely: Benefits for customers,
benefits for employees and benefits for banks.
(i) Benefits for Customers

There is a more coordinated and professional approach to customer contact.

With up-to-date customer information, Banks can offer more personalized services.
Customers feel empowered if they have greater access to products and services. For

example, 24- Hours banking.

Targeted product and service offerings can be timed to coincide with customer events
and requirements e.g., Education Loans and Tourism Loans.

(ii) Benefits for Employees

Employees are empowered with the information to deliver high quality service and

meet customer expectations.

Employees have more time to serve customers.
Employees have higher satisfaction ratings.

CUSTOMER RELATIONSHIP MANAGEMENT IN INDIAN BANKS

Relationship Marketing is the process of building long term mutually beneficial relationship
with the customers. The Financial Institutions in the developed countries are using this
marketing tool very effectively by taking full advantage of Information and Communication
Technologies.
Banks in India are under intense pressure in todays volatile market place. Steep competition,
globalization, growing customer demand and exposure to higher credit risks are forcing the
banks to find new ways of improving profitability. On the other hand, cost-cutting measures
have forced banks to manage operations with few Customers Relationship Managers and
Product Specialists. Industry consolidation also poses fresh challenges to this sector.
Even today, most of the banks in India rely on the legacy of Customer Information System. In
such a scenario, it is difficult to have a complete customer view across divisions. They face
unprecedented challenges to sustain their growth path for survival. The challenges include
customer retention, reducing transaction costs, risk management and Regulation Compliance.
The result was a huge proliferation in customers choice. The strategic tool that was chosen
for aiding this process was Information Technology and most of the banks went through
adoption of various stages and forms of IT over the years and the process is still continuing.
The rapid growth in Information Technology and its potential to serve the customers in a new
way awakened the marketers and enabled them to transform these challenges into

opportunities. Under these circumstances, customer satisfaction became an important aspect

of the business. The search for new strategies began to meet not only the high expectations of
customers but the need to retain them. The competitive world witnessed many banks
participating in the race to optimize their profits. It increased the pressure to perform leading
to adoption of advanced technology and better skilled work force. Therefore, business model
changed from bank-centric approach to customer-centric approach. The customer became not
only an essential but the most important part of the business.
Hence the increased role of banking in Indias economic development on the one hand and
the changes in the business climate on the other has put increased pressure on them. These
changes are compelling the banks to reorganize themselves in order to cope with the present
conditions. Now, the Financial Institutions are trying to provide all the services at the
customers doorstep. The customer has become the focal point either to develop or maintain
stability in the business. Every engagement with the customer is an opportunity to either
develop or destroy a customers faith in the Bank. The expectations of the customers have
also increased many fold. Intense competition among the banks has redefined the concept of
the entire banking system. The banks are looking for new ways not only to attract but also to
retain the customers and gain competitive advantage over their competitors. The banks like
other business organizations are deploying innovative sales techniques and advanced
marketing tools to gain supremacy.
Need for Study
The important factors that establish the need for CRM in the Banking Industry are detailed
below:

Intense Competition

There is intense competition among the Private Sector Banks, Public Sector Banks and
Foreign Banks and they are all taking steps to attract and retain the customers. New
technologies, research facilities, globalization of services, the flood of new products and the
concept of all the facilities under one roof to provide better customer service leading to
customer delight.

Well Informed Customers

The Customers in Banking Industry today are well informed. With the introduction of new
technology, the world has become like a small village. Thus, if a Bank wants to have more

customers, it should develop a good relationship with its present customers and try to
maintain the same in the future also.

Decline in Brand Loyalty

In the present scenario, brand loyalty is on decline. The customers are switching over
frequently to avail the better facilities from other banks. Newer and superior products and
services are being introduced continuously in the market. Thus, the banks have to upgrade
their products, improve customer service and create bonds of trusts through proper care of
customer needs and regular communications. With the help of CRM, strong customer loyalty
and a good image for the organization can be developed.

Improved Customer Retention

In the intensely competitive banking industry, retention of existing customers is vital, which
can be achieved through the process of CRM.
Benefits for Banks

Managers are empowered with information that can help them manage
Customer relationships and make better decisions.
Optimum use of resources.
Customer satisfaction and increased loyalty.
Improved customer acquisition and cross-selling.
It helps in capitalizing on short windows of opportunities in the market.

Introduction of Innovative Services through CRM

Banks have made several innovations for sustenance by using the CRM System such as:

The introduction of ATMs.

Biometric ATMs.
Single Window Service.
Teller System.
Internet Banking
Introduction of Plastic Money: Credit Card, Debit Card, Smart Card.
Mobile and E-Mail Alerts
Electronic Cash
Introduction of two in one Accounts.
Introduction of new loan schemes as per the customers needs viz. Education Loans,
Marriage Loans, Housing Loans, Personal Loans, Vehicle Loans, Furniture Loans,
Renovation Loans and Tourism Loans.

AXIS BANK LIMITED PRACTICES FOR CUSTOMER SATISFACTION

The Indian banking industry faces stiff competition and new challenges due to increasing the
size of banks, financial services and rising customer expectations. Banks enjoy fighting the
competition by introducing additional financial services and different schemes to attract the
customers more and more.
Therefore, due to a lot of changes, the need of the customer satisfaction becomes necessary
for the Axis Bank Limited also.

SERVICES PROVIDED BY AXIS BANK LIMITED TO ITS CUSTOMERS

Current accounts, savings account, term deposits, recurring deposit, PPF accounts and

all other deposit accounts

Payment services such as pension, payment orders, remittances by way of Demand

Drafts and wire transfers

Banking services related to Government transactions
DeMat accounts, equity, government bonds
Indian currency notes exchange facility
Collection of Cheques, safe custody services, safe deposit locker facility
Loans and overdrafts
Foreign exchange services including money changing
Third party insurance and investment products sold through our branches.
Card products including credit cards, debits cards, ATM cards and services

AXIS BANK LIMITED COMMITMENT TO ITS CUSTOMERS

To act fairly and reasonably in all dealings with the customers by

Providing minimum banking facilities of receipt and payment of cash/ cheques at the

bank's counter
Meeting the commitments and standards in this Code, for the products and services it

offer, and in the procedures and practices its staff follow.

Making sure its products and services meet relevant laws and regulations in letter and
spirit

Ensuring that its dealings with customers rest on ethical principles of integrity and

transparency
Operating secure and reliable banking and payment systems

To help you to understand how our financial products and services work by

Giving customer information about them in any one or more of the following

languages: Hindi, English or the appropriate local language

Ensuring that its advertising and promotional literature is clear and not misleading
Ensuring that customers are given clear information about its products and services,

the terms and conditions and the interest rates/service charges, which apply to them
Giving customers the information on what are the benefits to them, how they can
avail of the benefits, what are their financial implications, and whom they can contact
for addressing their queries

To deal quickly and sympathetically with things that goes wrong by

Correcting mistakes promptly and canceling any bank charges that the Bank applies

due to its mistake.

Handling their complaints promptly
Telling them how to take their complaint forward if they are still not satisfied.
Providing suitable alternative avenues to alleviate problems arising out of
technological failures

To treat all the personal information of the customers as private and confidential
Bank will treat all personal information of the customer as private and confidential in the
cases of:

Advertising. Marketing and sales

Privacy and confidentially
Collection of dues

To adopt and practice a Non -Discrimination Policy

Bank will not discriminate on the basis of age, race, gender, marital status, religion, or
disability. Customers can get information on interest rates, common fees, and charges through
any one of the following:

Looking at the notices in their branches;

Phoning their branches or helplines;
Looking on their website;
Asking their designated staff/help desk; or
Referring to the service guide/Tariff Schedule.

Before a person becomes a customer Bank will:

Give the person the clear information explaining the key features of the services and

products customer tell the Bank that they are interested in;
Give the person information on any type of products and services which Bank offer

and that may suit your needs;

Tell the person if Bank offer products and services in more than one way for example,
through ATMs, on the Internet, over the phone, in branches and so on and tell them

how to find out more about them;

Tell the person what information Bank need from them to prove their identity and
address, for us to comply with legal, regulatory and internal policy requirements.

When the person Become a Customer Bank will:

Give the person more information on the key features of the product, including

applicable interest rates/fees and charges;

Give the person extra information on his rights and responsibilities especially
regarding availing of nomination facility offered on all deposit accounts, articles in

safe custody and safe deposit vaults;

Automatically, register the persons name under 'Do Not Call ' Service. Bank will not
inform/extend to the person through telephone calls/SMSs/ emails any new product /
service unless and until he inform the Bank in writing his/her consent to avail of this
information service.