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Indian Banking System
Introduction to axis bank.
Promoted in 1994 by
 4urrent scenario
_ Earlier axis bank was known
as UTI.
_ It has its registered office in
Ahemdabad and central
office at Mumbai.
_   !"#$%To be the
preferred financial solutions
provider excelling in
customer delivery through
insight, empowered
employees and smart use of
technology
Members of the Board
 ÷arious Departments of Axis Bank
_ Personal Banking _ Forex Department.
Department. _ Business Banking
_ Priority Banking. Department.
_ NRI Banking _ 4orporate Banking
Department. Department.
_ Securities. _ 4redit Laundering
_ Insurance. Department.
_ Investment Solutions
AXIS BANK FOREX BRAN4 ES IN LUD IANA

_ Branch Name-The Mall _ Branch Name-

_ Branch Id-042 MillerGanj
_ Address-Lower Ground _ Branch- Id 324
Floor, Boulevard, Plot _ Address-B-15-179/1,
No.105, Mall Road, Nirankari Kucha No. 4,
Ludhiana 141001, Between ÷ishwakarma
Punjab, India 4howk and Dholewal
_ MI4R 4ode-141211002 4howk, Miller Ganj
_ SWIFT 4ode - Punjab, India
AXISINBB042 _ MI4R 4ode-141211006
_ SWIFT -AXISINBB324
 Functions of Forex Department Mall Road
Ludhiana
_ Transfer through SWIFT _ 4urrency Options.

_ Demand Drafts and _ Forward Rate

4heques Agreement.

_ Spot 4ontracts. _ 4urrency Swaps

_ Forward 4ontracts.
Organisational 4hart.
Swot Analysis of Axis Bank
 Financial Ratios
4




_ 4

 m
4urrentAssets
4urrent Liabilities.
c
4 
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4urrent Assets 865443666 1019873018

4urrent Liabilities 707768671 893325459

4


 1.36 1.14

  ) 


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Absolute Liquid 150168957 152064387
Assets
4urrent Liabilities 707768671 893325459
((
 "(!# "(#*
  ) +
_ 
, m
Total Debt
Shareholder͛s Funds
 Introduction to export finance
_ Export in simple words means selling goods abroad.
International market being a very wide market, huge
quantity of goods can be sold in the form of exports.

_ Success or failure of any export order mainly

depends upon the finance available to execute the
order .
 4oncept of Export finance.
_ The exporter may require short term, medium
term or long term finance depending upon the
types of goods to be exported and the terms
of statement offered to overseas buyer.
_ Export finance is short-term working capital
finance allowed to an exporter. Finance and
credit are available not only to help export
production but also to sell to overseas
customers on credit.
 Purpose of Export Finance-

_ 

 
-.
. 
,/0112
1

. %
_ Availability of the funds at the required time to the
exporter.
_ Affordability of the cost of funds.
 Types of Export Finance.
_ The export finance is being classified into two
types viz.
_ Pre-shipment finance.(180 days-270 days)
_ Post-shipment finance. (180 days)
 Some concepts of Export Finance
_ Forfeiting --is a mechanism of financing exports.
_ By discounting export receivables
_ Evidenced by bills of exchange or promissory notes.
_ Without recourse to the seller (viz. exporter)
_ On a fixed rate basis (discount)
_ Upto 100 percent of the contract value.
_ 4
3  ,0111
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_ In simple words...Factoring turns your

-,
1
2/ instead of waiting to be paid at a future date
 Major Institutions Involved in
Export Finance
_ Reserve Bank of India (RBI)- The RBI with its head
quarters in Mumbai and several regional offices is the central
banks of our country to authorize extend and regulate export
credit and transaction including foreign exchange affairs. RBI
does not directly provide export finance to the exporters, but
it adopts policies and initiates measures to encourage
commercial banks and other financial institutions to provide
liberal export finance.
_ Two Departments- i) Industrial and credit department
ii)Exchange 4ontrol Department
_ Exim Bank- Set up by an Act of Parliament in September
1981.
_ Wholly owned by the Government of India.
_ Exim is the principal financial institution in the country for co-
ordinating working of institutions engaged in financing exports
and imports.
_ ..

_ 4
2..
 Mumbai.
_ 
0 .#5..
22 -

(
_ 
 ..
 - Ahmedabad, Bangalore, 4hennai,
yderabad, Kolkata, Mumbai, New Delhi, Pune.
_ -

 ..
  Budapest, Johannesburg, Milan, Singapore,
Washington D4.
 Functions of Exim Bank.
From financing Facilitating India
foreign trade and promoting Foreign
trade.

To creating export capability by

arranging competitive financing at
various stages of export cycle.

Providing 4onsultancy and high range of

services to exporters.
 E4G4- c
4
3 

4
c
  (
_ E4G4 is a company wholly owned by the GOI. It
functions under the administrative control of the
Ministry of 4ommerce and is managed by a Board of
Directors representing government, Banking,
Insurance, Trade and Industry.
_ 64  434%
_ To protect the exporters against credit risks, i.e. non-
repayment by buyers
_ To protect the banks against losses due to non-repayment of
loans by exporters.
_ c
 4c74Pre-shipment is also
referred as ë
28( It is working
capital finance provided by commercial banks
to the exporter prior to shipment of goods.
The finance required to meet various
expenses before shipment of goods is called
pre-shipment finance or packing credit.
_ 7c
4 4c
 4c7
3%
_ To purchase raw material, and other inputs to
manufacture goods.
_ To assemble the goods in the case of merchant
exporters.
_ To store the goods in suitable warehouses till the
goods are shipped.
_ To pay for packing, marking and labelling of goods.
_ 7 447 c
 4c7 3 
4
( 

4
4onsumer goods are normally
sold on short term credit, normally for a period up
to 180 days. owever, there are cases, especially, in
the case of export of capital goods and
technological services; the credit period may
extend beyond 180 days. Such exports were longer
credit terms (beyond 180 days) is allowed by the
exporter is called as ë2
.

2
28 or ë2
.

2


8(
_
 4 3 c
 


 447This facility will be an additional
window available to exporter along with the exiting
rupee financing schemes to an exporter at post
shipment stage. This facility will be available in all
convertible currencies. This scheme will cover
export bills upto 180 days from the date of
shipment (inclusive of normal transit period and
grace period) .
 c  4c74
_ 73%
_ Post shipment finance is provided to meet working
capital requirements after the actual shipment of
goods. It bridges the financial gap between the date
of shipment and actual receipt of payment from
overseas buyer thereof. Whereas the finance
provided after shipment of goods is called post-
shipment finance.
 Importance of Post Shipment
Finance.
_ To pay to agents/distributors and others for their
services.
_ To pay for publicity and advertising in the over seas
markets.
_ To pay for port authorities, customs and shipping
agents charges.
_ To pay towards export duty or tax, if any.
_ To pay towards E4G4 premium.
 Methods of Post Shipment
Finance.
_ 
 ,

22
4 _ 2-



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Packing 4redit for Rupee Expenditure
for project export contracts
_ c434


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_ 1
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_ This program seeks to Finance Rupee Expenditure for
Project Export 4ontracts, incurred by Indian companies.
_ 11
 
.14
2
_ To enable Indian project exporters to meet Rupee
expenditure incurred/required to be incurred for execution
of overseas project export contracts such as for
acquisition/purchase/acquisition of materials and
equipment, acquisition of personnel, payments to be
made in India to staff, sub-contractors, consultants and to
meet project related overheads in Indian Rupees.
 Foriegn 4urrency Preshipment 4redit
_ The F4P4 is available to exporting companies as well as
commercial banks for lending to the former.
_ It is an additional window to rupee packing credit scheme &
available to cover both the domestic i.e. indigenous &
imported inputs. The exporter has two options to avail him of
export finance.
_ To avail pre-shipment credit in rupees & then the post
shipment credit either in rupees or in foreign currency
denominated credit or discounting /rediscounting of export
bills.
 Tittle-comparative Analysis on
Export finance execution by public
and private banks in respect to
Sme exporters in ludhiana zone.
 Objectives of Research.

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_ To know that which industry or product will be
financed aggressively by Public and private
banks respectively to SME exporters in
Ludhiana.



 17
12

Objectives Research Sample

of the study Design Design

Data Data
Analysis collection
 Research Design.
Research design specifies the methods and procedures
for conducting a particular study.
_


 12
, 2.
21



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_ Exploratory Research Design.
_ Descriptive Research Design.
_ 4ausal Research Design.
_ Our design is Descriptive Research Design.
_ 7c3 3
_ A Sample Design is a definite plan for obtaining a sample from a given
population. It refers to the technique to the procedure adopted in selecting
items for the sampling designs are as below:
_ 7c :
_ Sample method
_ Survey period
_ 7c :% The substantial portions of the target Banks in
Ludhiana that are sampled to achieve reliable result are 20
Banks.
_ The cost and time limitation compelled us to select 20
respondents as sample size .

%
_ 7c374 %
_ In this research project, we are using
4onvenience sampling method.
_ 7c :
_ 20 banks.
_ 7c+c
_ AREA SAMPLING
_ Sample Area : Ludhiana
_ 7c344) 
_ We have taken the Statistical tool of percentage method to
analysis and interpretation of the collected data.
4onvinience Sampling-
 4ollection of Data
_ 4 4 
_ The study was conducted by the means of
personal interview with respondents and the
information given by them were directly
recorded on questionnaire.
_ 4 4 44) %
_ 6uestionnaire method is used in collection the
data.
 Banks 4hosen For comparison
_ PUBLI4 BANKS _ PRI÷ATE BANKS
_ State Bank of India. _ Icici Bank.
_ Bank Of India. _ DF4 Bank.
_ Indian Bank. _ Standard 4harted Bank.
_ Syndicate Bank. _ Axis Bank.
_ 4orporation Bank. _ 4atholic Serian Bank.
_ 4anara Bank. _ Fedral Bank.
_ 4entral Bank of India. _ 4ity Bank.
_ Punjab National Bank. _ South Indian Bank.
_ SIDBI _ IndusInd Bank.
_ ÷ijaya Bank _ Yes Bank.
 Data Analysis Public Banks
77 7 
77  4
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 4omparison in terms of Rate of Interest
 
. c
 

1 SBI 11.75% 7%
2 PNB 11% 8%
3 BANK OF INDIA 12% 8%
4 4ENTRAL BANK OF 12% 8%
INDIA
5 4ORPORATION 12% 7.75%
BANK OF INDIA
6 SIDBI 11% 7.5%
7 INDIAN BANK 12.50% 8%
8 SYNDI4ATE BANK 12% 8.25%
9 ÷IJAYA BANK 12.15% 8.25%
10 4ANARA BANK 12% 8%
_ The above table represents the comparison between
the BPLR and Base rates between the public banks.
_ From the above table it is clear that
_ PUNJAB NATIONAL BANK and SIDBI come up with the
lowest BPLR and PNB also goes to subvent up to 2%
there by making lending rate more lower, however
SIDBI does not go out for further subvention.
_ SBI stands out to have the lowest Base rate that is
7%.
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_ The above Fig shows the subvention rate
offered to the Ludhiana SME exporters and
70% of the Public Banks subvent 0%-2%.These
include
 Axis Bank.
 4atholic Syrian Bank.
 4iti Bank.
 Federal Bank.
 I4I4I Bank.
 IndusIndBank.
 Yes Bank.
_ While 10% of the public Bank that is Standard
4hartered allows Subvention of 2-4% to the
exporters.
_ While 20% banks subvent 4-6%
_ DF4 Bank.
_ South Indian Bank.
 
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_ From the above fig it is clear that 10 % of the
Private banks, i.e. Axis Bank disburse the case
with in the time span of 0-2 days.
_ While 10% of the Private Banks, i.e. Yes Bank
takes 2-4days to disburse the case.
_ While 10% of the banks take 4-6 days to
disburse the case that is I4I4I Bank.
_ While 70% of the banks take more than 6
days to disburse the case that includes
_ 4atholic Syrian Bank.
_ 4iti Bank.
_ Federal Bank.
_ DF4 Bank.
_ IndusInd Bank.South Indian Bank.Standard
4hartered Bank .
c
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_ Shows that only 1 bank that
is federal bank requires the
income tax return for 1 year
to be submitted by the SME
exporters, rest all the
private banks considered by
us require income tax
returns for 3 years

..2
 
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_ The above figure shows a
very scattered response of
the banks when they were
asked about the industry
that they feel will be
booming in the next 2
years.
_ 10% of the private banks,
i.e. axis bank said that bi-
cycle industry will be
aggressively funded in the
next two years.
4omparison in Terms of Interest Rates in Private
Banks
 
. c




1 Standard 16% 7.25%
4harted Bank
2 4ity Bank 15% 7.5%
3 Axis Bank 14.75% 7.50%
4 South Indian 16.% 8.10%
Bank
5 I4I4I Bank 15.75% 7.5%
6 4atholic 14.75% 8%
Serian Bank
7 Fedral Bank 15.25% 7.75%
8 DF4 Bnak 15.75% 7.5%
9 Indusind 16.75% 7%
Bank
10 Yes Bank 16.50% 7%
 Interpretation
_ From the above table it is clear that.
_ IndusInd Bank lends out with ighest BPLR
that is 16.75% but on the same hand the base
rate is 7%.
_ Whereas Yes Bank has lowest Base Rate that is
7% with indusind bank.
_ Where as the Leading Banks DF4 and I4I4I
stand common in terms of BPLR as well as
base rate.
 4onclusion and findings
_ Export Finance is a very important branch to
study & understand the overall gamut of the
international finance market.
_ Availability of favorable Export finance
schemes directly impacts the local trade,
encourages exporters, enlarges markets
abroad, improves quality of domestic goods
and overall helps the nation boost its
exchange earnings.
 4omparison
_ 60% of public banks do not _ 60 % of the private banks
disburse more than 50cr also donot disburse more
annually to Ludhiana SME than 50cr to SME exporters
export houses. in Ludhiana.
_ Where as 40% of the Public _ Where as 60% of the Private
Banks disburse finance to banks go to Disburse for
oseiry exporters. Yarn.
_ While 50 % of the Public _ 60%of the Private Banks
banks have scantioning have NILL scantioning
power of Rs 1 crore- Rs 5 power at their end and have
crore that means they have centralized system and get
De-centralised system of the cases approved from
Funding. their respective corporate
offices.
_ In terms of Safe funding
industry Public banks(30%)
consider all viable projects
safe to fund.
_ Public Banks ave less rate
of Interest.
_ And in terms of subvention
90% of the public banks
subvent 0-2%.
_ In case of Private Banks
maximum Private
Banks(60%) find Bicycle Sme
exporters safe to fund.
_ ave more rate of
Interest.
_ Where as 50% of the private
banks subvent 0-2% but
40% of the private banks
subvent more 4-6% down
their lending rates to be in
competition with public
banks
_ In terms of fund based
assistance to the new
exporters Public banks
completely over ruled
Private Banks as 60% of said
that they provide maximum
complete fund based
assistance to fresh
exporters.
_ In terms of processing fee
charges 60% of the public
banks charge 0.6%-1%
_ Where as no private
bank said that it
encourages most to
new exporters.
_ 50% of the private banks
charge the same however
the processing fee charges
could be reduced but it
depends upon the
reputation of exporter and
discretion of the Bank
_ In terms of Bill realization
charges only 50% public
banks charge Rs
1000+service tax.
_ owever in terms of Income
tax returns and Balance
sheets required both Public
and private banks are equal.
_ Where as all the private
banks charge Rs
1000+service tax that makes
public banks better than
private banks.
_ But in terms of customer
attention and co-operation
Private banks are better
than Public Banks however
ING ÷YSYA Bank is an
exception.
Thank you