Modernisation & Diversification in banking sector due to emerging

trends and growth of AXIS BANK.

Submitted By:

Supervised By:

GEET BHATIA

Miss MONIKA TUSHIR

Enrollment No.:0831491806

Lecturer

BBA 3rd Semester

Dept. of Business Administration

MAHARAJA SURAJMAL INSTITUTE

Recognised by UGC u/s 2(f)
(Affiliated to Guru Gobind Singh Indraprastha University)
C-4, Janak Puri, New Delhi 1100058
Session: 2007-2008

ACKNOWLEDGEMENT

Any project cannot be successfully completed without the support and help of lots of people. It is with great
pleasure and privilege that i wish to thank the People who have actively supported me in this project.
First of all I would like to thank Miss Monika Tushir for providing me an opportunity to work on this project. She
constantly encouraged and guided us to streamline this project from conceptualization to finish. She guided me
through out the project by providing valuable inputs and suggestions. She has been a source of constant support and
encouragement. Her support on each and every time to me as helped to achieve the target of completing my minor
project report. She not only helped me in completing the project, but also helped me by giving esteemed knowledge
of her which will be required in future. I would also thank Miss Monika Tushir for spending her precious time on
me and making me aware about concepts of minor project report.
I would also thank to all the staff members of Axis Bank, who helped me in providing information and aspects of
Axis Bank.

CERTIFICATE

This is to certify that Mr. Geet Bhatia Roll No. 0831491806 a student of BBA (B&I), at MAHARAJA SURAJMAL
INSTITUTE, under affiliation of GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY has successfully
completed his report under my guidance. His subject to study was Modernization & Diversification of Banking
Sector in India-With special study to Working of Axis Bank And the work is original and had not been submitted
anywhere else. All resources of information and help have duly mentioned and acknowledge.
I wish him a very prosperous future.

Guide

Miss Monika Tushir

Lecturer
Dept. of Business Administration

CONTENTS OF TABLE

1)

2)

3)
4)
5)
6)
7)

Introduction about banking system.5

Definition of banking..6
Evolution of banks in India7
Banking after Independence..8
Indian banking system9-11
Introduction about company..12
About Axis Bank....13-14
Board of Directors..15-17
Services provided by Axis Bank18-32
Analysis & Interpretation...33-39
Conclusion..40-41
Suggestions & Recommendations..42
Bibliography...43
Questionnaire.44-46

CHAPTER-1

INTRODUCTION ABOUT
BANKING

DEFINITION OF BANKING

The Banking Regulation Act, 1949 defines the term Banking as accepting, for the purpose of lending or
investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable
by cheque, draft, order or otherwise [Section 5 (b)].
A banking company must perform two essential functions, viz., (a) accepting of deposits, and (b) lending or
investing the same. If the purpose of acceptance of deposits is not to lend or invest, the business will not be
called banking business. Accordingly, any company which is engaged in the manufacture of goods or carries on
any trade and which accepts deposits of money from the public merely for the purpose of financing its business
are not a banking company.
The phrase deposits of money from the public is quite significant. The banker accepts deposits of money and
not of anything else. The word public implies that a banker accepts deposits of money from any one who
offers his/her money for such purpose. The banker, however, can refuse to open an account in the name of a
person who is considered as an undesirable person, e.g., a thief, a robber, etc. Acceptance of deposits should be
the major business of a banker.
The definition also specifies the time and mode of withdrawal of the deposits. The deposited money should be
repayable to the depositor on demand made by the latter or according to the agreement reached between the two
parties. The essential feature of banking business is that the banker does not refund the money on his own
accord, even if the period for which it was deposited expires. The depositor must make a demand for the same.
The Act also specifies that the withdrawal should be effected through an order, cheque, and draft or otherwise. It
implies that the demand should be made in a proper manner and through an instrument in writing and not
merely by verbal order or a telephonic message.
The underlying principle of the business of banking is that the resources mobilised through the acceptance of
deposits must constitute the main stream of funds which are to be utilized for lending or investment purpose.
The banker is, thus, an intermediary and deals with the money belonging to the public.
Section 7 of the Banking Regulation Act, 1949 makes it essential for every company carrying on the business of
banking in India to use as part of its name at least one of the word- bank, banker, banking or banking company.

EVOLUTION OF BANKS IN INDIA

Ancient Hindu scriptures provide enough evidence of the existence of money lending business in India.
Mahajans, Shroff, Sahukars, etc. were enjoyed in banking business. In the beginning of the 18 th century, the
East India Company set up a few commercial banks on moderns lines. In 1770, first Indian bank known as the
Bank of Hindustan was started and was closed down twenty years later. Later, the East India Company started
three Presidency banks with Government participation. These were: the Bank of Calcutta (1806), the Bank of
Bombay (1840) and the Bank of Madras (1843). These banks had the financial participation by the
Government also.
During the 18th century, some other banks were also opened by Agency Houses in Madras and Calcutta. All
these banks failed. Since all the banks emerged due to Agency Houses failed, the need of banking regulation in
India was seriously felt. As a result, Companies Act, 1833 was brought into force. The impact of the Agency
Houses got slowly reduced.
Allahabad Bank came into existence in 1865 and Alliance Bank of Simla in 1875. The first purely Indian
joint stock bank known as the Oudh Commercial Bank was set up in 1880 and the Punjab National Bank was
launched in 1894. The Swadeshi movement in the country in 1906 encouraged the Indian entrepreneurs to start
many new banks. There were as many as 648 commercial banks in India by the end of 1947. As many as 161
banks failed in quick succession during 1913-1914 and the peoples faith in the baking system was shaken.
Thus, there was a great need of an institution to control and regulate banking in the country. As a result, the
Reserve Bank of India was set up in 1935 for regulating the banks in the country and to act as a banker to the
Government.
In 1923, the three Presidency banks were amalgamated into Imperial Bank of India. This bank played an
important role in the economy of the country. After, independence, it was nationalised in 1955 and renamed as
the State Bank of India. The State Bank of India opened a large number of branches in rural and semi-urban
areas.

BANKING AFTER INDEPENDENCE

When the country attained independence in 1947, there were 648 commercial banks with 4,819 branches in
India. Because of frequent failure of banks in the country, the Government of India decided to regulate and
reform the banking system. The Reserve Bank of India was nationalised in 1949 and the Banking Companies
Act was passed in the same year. The name of this Act was later changed to Banking Regulation Act in 1965.
Enactment of the Banking Companies Act was an important landmark for the smooth progress of commercial
banks in the country.
State Bank of India was created by nationalisation of the Imperial Bank of India in 1955. The State Bank of
India has opened a large number of branches in rural and semi-urban areas and has launched several schemes
for the farmers, artisans and small scale units.
A scheme of Social Control on banks was enforced through statutory measures with effect from 1 st February,
1969. The banking industry saw a revolution after 14 major commercial banks were nationalised in June, 1969.
More than 90% of the bank deposits came under the control of the Government. Preference was given to rural
areas while opening branches. Targets of lending were also fixed for agriculture, artisans, unemployed youth,
small scale units, etc.
Regional Rural Banks scheme was launched on 2nd October, 1975. Six more leading commercial banks were
nationalised in 1980. As a result of the recommendations of Sivaraman Committee, Agricultural Credit
Department, Rural Planning and Credit Cell and Agricultural Refinance and Development Corporation were
combined together to set up National Bank for Agriculture and Rural Development (NABARD) in July
1982. Later, the Export and Import Bank of India (Exim Bank) and the National Housing Bank were set up in
1948 and 1988 respectively.

INDIAN BANKING SYSTEM

Indian banking system comprises of both organised and unorganised banks. Unorganised banking includes
Indigenous Bankers and Village Money-Lenders. Organised banking includes the following:

CURRENT SCENARIO
9

The industry is currently in a transition. On the one hand, the Public Sector Bank`s, which are the mainstay of
the Indian Banking System are in the process of shedding their flab in terms of excessive manpower, excessive
non Performing Assets (NPA`S) and excessive governmental, while on the other hand the private sector banks
are consolidation themselves through mergers and acquisitions.
The private players however cannot match the Public Banker`s great reach great size and access to low cost
deposits. Therefore one of the means for them to combat the Private Sector Bank`s has been through the merger
and acquisition (M & A) route. Over the last two years, the industry has witnessed several such instances.
Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobile banking, debit
cards, Automatic Teller Machines (ATMs) and combined various other services and integrated them into the
mainstream banking arena, while the Public Sector Banks are providing safety to their money kept in bank.
Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on
the retail segment. Banks with their phenomenal reach and a regular interface with the retail investor are the
best placed to enter into the insurance sector. Banks in India have been allowed to provide fee-based insurance
services without risk participation invest in an insurance company for providing infrastructure and services
support and set up of a separate joint venture insurance company with risk participation.

INTEREST RATE POLICY:

As parts of its anti-inflationary policy, RBI has followed a strict policy of control and regulation of Interest
Rates, deposits rates of banks, Lending rates- Infact all kind of interest rates were subject to strict control and
regulation by RBI. Since 1988, RBI reduces the ceiling rate on all bank advances. Subsequently the ceiling on
interest rate on inter-bank term deposits, bills rediscounting and inter-bank participation was removed.
The rate of interest was permitted to be determined by market forces, following the recommendations of
Narassimham Committee in November, 1991.
The present position of interest rate regulation is:

RBI has continuously reduced the bank rate from 10% (1990-91) to 6.25% (2002-03).
The interest rate on domestic deposits have been de-controlled.
Lending rates of banks have also been largely de-controlled.

NEW GENERATION BANKING

10

The liberalise policy of Government of India permitted entry to private sector in the banking, the industry has
witnessed the entry of nine new generation private banks.
The major differentiating parameter that distinguishes these banks from all the other banks in the Indian
banking is the level of service that is offered to the customer. Verify the focus has always been centered on the
customer understanding his needs, preempting him and consequently delighting him with various
configurations of benefits and a wide portfolio of products and services.
The popularity of these banks can be gauged by the fact that in a short span of time, these banks have gained
considerable customer confidence and consequently have shown impressive growth rates. Today, the private
banks corner almost four per cent share of the total share of deposits. Most of the banks in this category are
concentrated in the high-growth urban areas in metros (that account for approximately 70% of the total banking
business). With efficiency being the major focus, these banks have leveraged on their strengths and
competencies viz. Management, operational efficiency and flexibility, superior product positioning and higher
employee productivity skills.

CHAPTER-2

11

INTRODUCTION ABOUT AXIS BANK

OBJECTIVES:
To study the nature of work of AXIS BANK and deeply analyse their core objectives.
To study their Financial & Market stand by analyzing their growth in last 5 years.
To study employees satisfaction level of AXIS BANK employees by analyzing their job performance.

RESEARCH METHODOLOGY:

Primary Data will be used by preparing questionnaire and personal interview of employees.
Secondary Data will be used with the help of internet, newspapers, business magazines and annual
reports of AXIS BANK

LIMITATION OF STUDY:

Change of name of bank from UTI Bank to Axis Bank, hence it was difficult to collect secondary data.
Due to time and financial constraints, the project shows limited scope.

AXIS BANK
12

INTRODUCTION

Axis Bank was the first bank to begin operation as new private banks in India in 1994, after the Government of
India allowed new private banks to be established. The Bank was promoted jointly by the Administrator of the
specified undertaking of the Unit Trust of India (UTI - I), Life Insurance Corporation of India (LIC) and
General Insurance Corporation Ltd. and other four Public Sector Unit Companies, i.e. National Insurance
Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United
Insurance Company Ltd.
The Bank today is capitalized to the extent of Rs. 356.51 crore with the public holding (other than promoters) at
56.72%.
The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. Presently, the Bank
has a very wide network of more than 596 branch offices and Extension Counters. The Bank has a network of
over 2502 ATMs providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM
networks in the country. The Head Office of Axis Bank Limited in India is situated at Mumbai. Axis Bank
witnessed its first overseas branch in Singapore and has further spread to USA, UK, UAE among other
countries
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. Some industry experts wrote Axis Bank to be a slow
paced organization with its market share dropping. But the Bank believes on the key strategy of slow and
steady wins the race. Axis Bank has never focused on building a retail market by bombarding its customers
with newer and hidden parametric products, instead, the Bank has concentrated on nurturing the backbone
financial services and providing quality banking solutions to the customers.
By the end of June 2007, Axis Bank in India had over 60 lakhs debit cards. This is the first bank in India to offer
the AT PAR Cheque facility. With the AT PAR cheque facility, customers can make cheque payments to any
beneficiary at any of its existence place. ie, a person can deposit the cheque at any of the branch of Axis Bank,
which ever is convenient to the customer. The latest offerings of the bank is the Australian Dollar and Canadian
Dollar variants of the international Travel Currency Card along with the US Dollar, Euro and Pound Sterling
variants. The Travel Currency Card is a signature based pre-paid travel card which enables travellers global
access to their money in local currency of the visiting country in a safe and convenient way.
The bank has also raised its reach to 341 cities, towns and villages. The bank has the outstanding deposit base of
more than Rs. 61,000 crores with over 65 lakh accounts.

13

For the benefit of the customers, the Bank has been engaged in the task of evolving new and value added
products and services and currently has a comprehensive portfolio of such products and services in Corporate
Credit, Retail Banking, Business Banking, Capital Markets, Treasury and International Banking.
However at Axis Bank customers financial needs get addressed in much beyond way. This belief of customers
has provided rich dividends, bringing with it steady growth, rapid expansion and an opportunity for employees
to propel their career further. The success of Axis Bank may be attributed in no small measure to the efforts of
exceptional pool of talent of 4800 employees.

Promoters
Axis 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, LIC - Rs. 7.5 crore and
GIC and its four subsidiaries contributing Rs. 1.5 crore each.

SUUTI - Shareholding 27.27%

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. In accordance with the Act, the
Undertaking specified as UTI I has been transferred and vested in the Administrator of the Specified
Undertaking of the Unit Trust of India (SUUTI), who manages assured return schemes along with 6.75%
US-64 Bonds, 6.60% ARS Bonds with a Unit Capital of over Rs. 14167.59 crores.
The Government of India has currently appointed Mr S B Mathur as the Administrator of the Specified
undertaking of UTI, to look after and administer the schemes under UTI - I, where Government has continuing
obligations and commitments to the investors, which it will uphold.

BOARD OF DIRECTORS

14

The Bank has 11 members on the Board. Dr. P. J. Nayak is the Chairman and CEO of the Bank.
The members of the Board are :
Dr. P.J. Nayak

Chairman & CEO

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

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

Our Mission And Values

Our Mission

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.

Core Values
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

Maximisation of Stakeholder value
Success through Teamwork, Integrity and People

15

Axis Bank is new name for UTI Bank

On 27th April, 2007, the bank's board decided on the new name at a meeting in Mumbai.UTI Bank on 30th June,
2007 rechristened itself as Axis Bank. Announcing the new name, PJ Nayak, chairman & CEO, Axis Bank, said
the bank has ambitious plans to diversify into non-banking financial sector. The bank, with a customer base of six
million, is planning inorganic growth for its ventures dealing with new areas.
According to Nayak, chairman and CEO of Axis bank, the bank would go in for international expansion
sometime down the line. The bank is well capitalised after raising over $ 1 billion recently and is adding another
150 branches and 584 ATMs. Axis Bank is the fifth largest bank in terms of capitalisation and will have a Rs 1
lakh crore balance sheet by end March 2008.
Axis Bank is born out of the pressure on UTI Bank to shed its brandname after the split of the erstwhile UTI.
Though UTI was a government instutition, its subsidiary UTI Bank has been categorised as a private sector bank,
according to RBI guidelines. The name change to Axis Bank means that UTI Bank will have to undergo a
rebranding exercise soon. The rebranding process is expected to be complete by September 2007.
After the split of UTI, entities like UTI Securities, UTI MF and UTI Bank were all allowed to retain the UTI
brand name for a while. Now that it is time for UTI Bank to shed the brand name, it has opted to go for the more
modern-sounding Axis Bank.
Axis Bank chairman will be PJ Nayak, who is currently chairman and managing director of UTI Bank. 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. The name will take effect
consequent to the approval of shareholders, RBI and the Central Government (Registrar of Companies).

Chairman & CEO's Message

Welcome to AXIS BANK, which is the new name of UTI BANK. The decision
to re-brand the Bank emanated from the need to move out of a scenario of brand
confusion that is created by several shareholder-unrelated entities using the UTI

16

brand. We renamed ourselves on 30th July, 2007. The rest of the Bank remains the same. Whether you are a
customer or a visitor to this site, let me tell you a little about the Bank and the various opportunities it
offers.
At AXIS BANK it will continue to be our constant endeavour to bring a sharper focus to the requirements of our
customers and we strive to leverage cutting-edge technology to provide the highest levels of service to you. We
are one of the few banks in India which has built up a fully integrated centralised banking architecture to offer
you banking services anywhere, anytime. We endeavour, therefore, to bring to you through this website a whole
range of banking services. At present our Internet Banking module, iConnect, allows you to view all your
accounts with us, including savings, current and depository accounts, for transactions and balance details, and to
transfer funds between accounts within the Bank. We provide facilities for bill payments, NRI services, a
shopping mall, financial advice and retail loans. Notwithstanding the immense benefits that Internet Banking
brings, the Bank also has other distribution channels. At the end of June 2007, the Bank increased its reach to 341
cities, towns and villages across the country through 574 Branches & Extension Counters and 2428 ATMs. The
Bank offers a complete range of retail and corporate services, including retail loans, corporate credit, forex
services, investment banking, depository services and investment advisory services. Our deposit base currently
stands at over Rs. 61,000 crores with over 65 lakh accounts.
The Bank's International Debit Card, which comes with the Savings Bank Account, personalised and carrying a
unique insurance cover for every account holder, has received an excellent response from customers, with over 60
lakh debit cards having been issued as at end June 2007. We were the first bank to offer the AT PAR Cheque
facility, free of cost, to all our Savings Bank customers in all the places across the country where the Bank is
currently present. By virtue of this facility, customers can now use the AT PAR cheque to make cheque payments
(upto a ceiling of Rs. 50,000/- per instrument) to any beneficiary at any of these places. I welcome you to AXIS
BANK and hope that you enjoy surfing through our website. And if you are not already our customer, I invite you
to become one, and to enjoy the AXIS BANK experience.
Dr.P.J.Nayar
Chairman & CEO

SERVICES PROVIDED BY AXIS BANK

Axis Bank is concentrating towards its Diversification & Modernisation. With a slow speed in retail banking &

17

commercial banking, Axis Bank is trying to expand in every field of banking. There core objective is not only to
provide services to customers but to give best of their services. They provide services to:

Customers for saving purpose,

Customers for corporate purpose,
Customers for loan purpose,
Customers for investment and insurance purpose,
NRI customers,
Priority Banking.

Some of the services by Axis Bank are:

1. ACCOUNTS:
(a) EasyAccess Account
The product is an endeavor by the Bank to understand the consumers' needs and redefine banking to suit your
requirements for a truly comfortable banking experience. EasyAccess gives customer instant access to your money
anywhere, anytime. Possessing a range of unmatched features, it has been devised to better suit the convenience of
bank eclectic client base.
Customer can avail of all these services with a minimum average balance of Rs 5,000 in metro or urban centers, and
Rs 2,500 in semi urban centers. Some of its features are:

At Par Cheque Book:

ATM Network:

Anywhere Banking:

Telebanking:

Mobile Banking:

Account Statement:

(b) Azaadi Account- No Frills

A savings account that doesn't require a minimum balance. Customer qualifys for Azaadi Account if:

The sum total of all credits to account does not exceed Rs 1 lack during the Financial year,

18

Customers do not intend to maintain an account balance higher than Rs 50,000 at any given instant,

(c) Prime Savings Account

The Prime Savings account has been created with your specific financial requirements in mind:

Wider Accessibility of ATMs.

Greater Convenience of payment through debit card.
24 hr Internet Banking and Tele Banking services.

(d) Senior Privilege

Axis Bank's Senior Savings Account has been designed keeping in mind the fact that a senior citizen's banking
requirements are wholly different and require special consideration.
Banking Features

Relationship Managers

Free At-Par Cheque book

Free Debit Cards for the primary and the joint account holders

Free Monthly Statement of Accounts

Free Issuance of Pay Orders or Demand Drafts drawn on Axis Bank branches

Mobile Banking

(e) Salary Power

The bank have prepared Salary Savings Account for service class customers. Salary Saving Account is not only
convenient way for customer to manage salaries (across various centres, through centralised database), but also
provide customer with a range of value added benefits. Some of its features are:

No minimum balance required.

Anywhere Banking.
International Debit cum ATM card with withdrawal upto Rs 25,000 daily.

(f) Power Salute

Defence Salary Account from Axis Bank is a product designed keeping in mind how tough a life in the Defence
Forces is. Not only does it come to them absolutely free, no minimum balance is required either. Customer can also
access the entire Axis Bank network, including more than 2400 ATMs and 550 branch offices (and growing) no
matter where you are posted. Some of its features are:

19

At-Par Cheque Facility

Additional Debit Card
Financial Advisory Services

(g) Trust/NGO Savings Account

Axis Bank's Trust Account is an effort to offer thoughtful banking for people who spend their lives thinking of
others. It is a complete banking solution for Trusts, Associations, Societies, Government Bodies, Section 25
companies and NGOs, so that the organisations can devote all of their time to their noble motivations. Some of
features are:

A multi-city at-par cheque facility with no limit on clearing payments at centers across the country wherever
we are present.

Free Anywhere Banking across all our Branches and Extension Counters and over all ATMs.

Free Demand Drafts or Pay Orders as and when required to remit funds.

Monthly Statement of Account delivered at doorstep.

Facility for collecting donations in account through various network of Branches and Extension Counters
across the country, as well as through iConnect - Internet Banking facility.

(h) Pension Savings Account

This type of account is specifically designed for Pensioner's (Existing & Prospective) of Central Govt. Civil
Ministries/ Departments & Defence Ministry keeping in mind the fact that a Pensioner's banking requirements are
wholly different and require special consideration. Some benefits are:

Timely communication to the customer on receipt of the PPO

No delays in commencement of pension disbursals - The Bank is handling the disbursement of Pension
under a Centralised Pension Disbursement Module wherein the Pensioner records are credited centrally
through its Centralised Pension Payment Hub (CCPH) at Mumbai.

Timely issue of Form- 16A for tax deducted at source in the immediately previous financial year.

Timely revisions based on changes in rates of Pension or Dearness Allowance, done centrally from the
CCPH.

2.DEPOSITS:
20

(a) Fixed Deposits

Axis Bank offers simple reinvestment Fixed Deposits (at very competitive interest rates), which can be opened with
a minimum investment of Rs 10,000. Customer can make additions to his deposit in multiples of Rs 1,000 each.
The tenure of the deposit must be a minimum of 6 months.

(b) Encash 24
The ENCASH 24 (Flexi Deposits) gives the liquidity of a Savings Account coupled with high earnings of a Fixed
Deposit. This is achieved by creating a Fixed Deposit linked to Savings Account providing you the following
unique facilities:

Maximum Returns: As soon as the balance in Savings Account crosses over Rs 25,000, the excess, in
multiples of Rs 10,000 will be transferred automatically to a higher interest earning Fixed Deposit Account.

Maximum Liquidity: The money parked in Fixed Deposits as a result of the above mentioned sweep out
from Savings account can be easily accessed by issuing a cheque, withdrawing through ATM etc.

Auto Renewal: On maturity of linked Fixed Deposits, the bank will automatically renew it for a maximum
period of 181 days.

(c) Recurring Deposits

Axis Bank's Recurring Deposit scheme will allow customer with an opportunity to build up their savings through
regular monthly deposits of fixed sum over a fixed period of time. Some of features are:

Recurring deposits are accepted in equal monthly installments of minimum Rs 1,000 and above in multiples
of Rs 500 thereafter.

The fixed number of installments for which a depositor can opt are 12, 24, 36, 39, 48, 60, 63, 72, 84, 96, 108
and 120 months.

A recurring deposit account can be transferred from one office of the Bank to another branch.

(d) Tax Saver Fixed Deposit

In the Finance Bill of 2006, the government had announced Tax benefits to Bank Term Deposits which are of over 5
year tenure u/s 80C of IT Act, 1961 vide Notification Number 203/2006 and SO1220 (E) dated 28/07/2006.
The salient points of the scheme notification are; (a) Fixed tenure without premature withdrawal. (b) Year is defined
as a financial year. (c) Amount limited to Rs. 100 minimum and Rs. 100,000 maximum. (d) Bank will issue a Fixed

21

Deposit Receipt that shall be the basis of claiming tax benefit. (e) Term deposit under this scheme cannot be
pledged to secure a loan.

3. LOANS:
(a) Power Home
Axis Bank's Power Home puts an end to Real Estate troubles. Its helps customer purchasing their dream home
without any problem. Some of features are:

Attractive interest rates.

Balance Transfer facility.

Doorstep service.

Option to choose from floating rate or fixed rate.

Free Property & Personal accident insurance.

(b) Power Drive

Drive will bridge that distance by financing a major part of the cost of new car. So, customer don't have to put
the brakes on his ambition. It helps customer to purchase his dream car without any kind of problem.

22

Loan value calculated as per the on-road-price of the vehicle

Loans available for salaried and self employed individuals, proprietorships and partnership firms

Loans offered from Rs. 1 lac onwards

Loans tenure from 1 year to 7 years.

(c) Personal Power

With the help of this service, customer can fulfill his dream holiday, can buy the latest lifestyle gizmo, gift his
wife a lovely diamond ring, renovate his house or just squash a temporary cash crunch. This loan service fulfills
all kinds of his personal needs.

Loans for salaried and self employed individuals

Loans are available from Rs 50,000 to Rs 20 lack.

Repayment tenures from 12 to 60 months.

Free personal accident insurance cover with personal loan.

Loans can be used for any purpose with no questions asked regarding the end use of the loan.

(d) Study Power

Axis Bank's Study Power aims to provide financial support to deserving students for pursuing higher
professional or technical education in India and abroad. The loan would be provided to students who have
obtained admission to career-oriented courses eg, medicine, engineering, management etc., either at the graduate
or post-graduate level.

(e) Asset Power (Loan Against Property)

In this type of loan system, bank provides loan to customer against their property i.e. property is kept in the form
of security. Property kept as security can be commercial or residential. Customer can also apply for this loan if
they need funds to acquire new property. A take-over of existing loan with refinancing is also possible with Asset
Power. Some of features are:

Attractive interest rates.

Balance Transfer facility available with additional finance.

Doorstep service.

(f) Two Wheeler Loan

In this type of loan service, bank tries to provide money to customer so that he can buy a two wheeler.

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