Project Report on Axis Bank-Finance MBA Topic on Profitability of banks in India
Company Profile
Incorporated in 1993 as a private bank (then UTI Bank), is one of the first private sector banks in the country. The name of the bank has been changed to Axis Bank w.e.f. July 30, 2007.
The promoters of the bank are UTI, LIC and GIC & its four subsidiaries. The bank provides complete suit of corporate and retail banking products. The bank is acting as a clearing member of NSE and also tied up companies in e-commerce.
The bank has five international offices- three branches and two representative offices. The branches are located in Singapore, Hong Kong and Dubai and the representative centers at Shanghai and Dubai. The bank has recently revamped its entire technology backbone and the distributed database has been replaced by a state-of-the-art centralized Data Center located in Mumbai. The bank is among the few Indian banks to have completely centralized its database. The Bank continued to build a wide presence through its 861 Branches & Extension Counters and 3,723 ATMs across 534 cities and towns. During the quarter the Bank added 26 Branches Extension Counters and 128 ATMs. Axis bank is the first Indian bank to launch Remittance Card and Metal Card.
Company Services
The business of the company has been segmented into retail, corporate, merchant and treasury banking.
Retail Banking
The different services available in retail banking can be classified as accounts, deposits, loan, cards, investments, insurance, payments and other services. Other than these services the bank gives assistance to NRIs to have PAN cards and also serve them with locker facilities.
Accounts
Different types of accounts that the company offers are:
(i) Zero balance Saving Account:
(ii) Krishi Saving Account
(iii) Easy Access Saving Account:
(iv) Prime Saving Accounts
(v) Salary Saving Accounts
(vi) Women’s Saving Account
(vii) Senior Citizen’s Account
(viii) Defence Salary Account
(ix) Trust/NGO Saving Account
(x) Azaadi- No Frills
(xi) RFC (D) Account
(xii) Pension Saving Account
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| Corporate Banking Chart of Axis Bank |
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Key Concerns
• Decline in the GDP growth rate.
• The Banking industry is very competitive and the ability of banks to grow depends on their
ability to compete effectively.
• Banking in India is a heavily regulated industry and material changes in the regulations
could adversely affect Banks business.
• Exchange rate fluctuations may have an impact on banks financial performance.
• A slowdown in economic growth in India could cause banks business to suffer.
• Continuously changing customer requirement.
Global Outlook
The global economic environment continues to be uncertain. The world economy, which was passing through unprecedented financial turmoil since August 2007, experienced a jolt in September 2008 when the failure of Lehman Brothers led to widespread panic across global financial markets. The liquidity crisis that ensued not only engulfed developed markets but also quickly transmitted to emerging markets, including India. The US Federal Reserve responded by infusing dollar liquidity into large financial centers through currency swap arrangements with major foreign central banks in addition to massive injection of liquidity in the domestic market through several innovative schemes.
Domestic Outlook
Like other EMEs, India too has been affected by the global financial crisis. Real GDP growth moderated to 7.8 per cent in the first half of 2008-09 as against 9.3 per cent in the first half of 2007-08. The third quarter of 2008-09 witnessed signs of further moderation in growth, especially in the industrial sector and some segments of the services sector. Over the last five years, India clocked 8.8 per cent average annual growth, driven largely by domestic consumption and investment even as the share of net exports rose. While the benign global environment, easy liquidity and low interest rates helped, at the heart of India’s growth have been its growing entrepreneurial spirit and rise in productivity. These fundamental strengths continue to be in place. Nevertheless, the global crisis will dent India’s growth trajectory as investments and exports slow. Clearly, there is a period of painful adjustment ahead of us. However, once the global economy begins to recover, India’s turnaround will be sharper and swifter, backed by our strong fundamentals and the untapped growth potential. Meanwhile, the challenge for the Government and the Reserve Bank is to manage the adjustment with as little pain as possible.
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| Charts showing Financial Analysis of Axis Banks |
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