ABOUT AXIS BANK Axis Bank was the first of the new private banks to have begun operations

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 of India (GIC) and other four PSU insurance companies, i.e. National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The Bank today is capitalized to the extent of Rs. 405.17 crores with the public holding (other than promoters and GDRs) at 53.09%. The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai. The Bank has a very wide network of more than 1000 branches and Extension Counters (as on 31st March 2010). The Bank has a network of over 4055 ATMs (as on 31st March 2010) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. 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.

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 24.00% 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 In December 2002, the UTI Act, 1963 was repealed with the passage of Unit Trust of India (Transfer of Undertaking and Repeal) Act, 2002 by the Parliament, paving the way for the bifurcation of UTI into 2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 appointed Shri K. N. Prithviraj 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 The members of the Board are : Board of Directors The members of the Board are : Dr. Adarsh Kishore Non-Executive Chairman

Smt. Shikha Sharma Shri M. M. Agrawal Shri J.R. Varma Dr. R.H. Patil Smt. Rama Bijapurkar Shri R.B.L. Vaish Shri M.V. Subbiah Shri K. N. Prithviraj Shri V. R. Kaundinya Shri S. B. Mathur

Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director

BRANCHES OF AXIS BANK Axis Bank has all over around 1000 branches in india among these there are branches in prime cities like----

Mumbai. Chennai. Delhi. Calcutta. Goa. Banglore. Madras. Guhati. Tamil nadu. Bhopal. Gujrat. Asam. Uttar Pradesh. Etc

BRANCHES OF AXIS BANK OVERSEAS Axis Bank also has its branches overseas it extends its banking operations in countries like---- Singapore. Hong kong. UAE China.

VARIOUS DEPATMENTS OS AXIS BANK

Personal Banking Department.

Pirority Banking.

NRI Banking Department.

Securities,

Insurance.

Investment solutions

Forex Deparetment.

Business Banking Department.

Corporate Banking Department.

Credit Laundering DepartMent.

INTRODUCTION TO FOREX TRADING Although the foreign exchange market is the largest traded market in the world, its reach to the retail sector pales in comparison to the Equity and Fixed Income markets. This is in large part due to a general lack of awareness of FX in the investor community, along with a lack of understanding of how and why currencies move. Adding to the mystique of this market is the lack of a physical central exchange akin to the NYSE or the CME. It is this very lack of structure that enables the FX markets to operate on a 24-hour basis, beginning the trading day in New Zealand and continuing through the time zones.

Traditionally, access to the FX market was limited to the bank community that traded large blocks of currencies for commercial, hedging, or speculative purposes. The creation of firms like FXDD has opened the door of Forex trading to such institutions as funds and money managers, as well as to the individual retail trader. This sector of the market has grown exponentially over the past several years.

WHAT IS FOREIGN EXCHANGE For active traders and investors, foreign exchange should be no different than other investment products such as equities, commodities or fixed-income. Because of globalization in the economic world and consolidation of whole economic regions (i.e., the European Union), including currencies in a portfolio helps to diversify assets and can reduce risk. Just like other investment alternatives, foreign exchange offers traders/investors a market where they can buy or sell an investment product. In this case it is a specific Currency Pair. The currency pair may be the Euro versus the US Dollar, the US Dollar versus the Japanese Yen, the British Pound versus the US Dollar, the Euro versus British Pound, or a number of other currency combinations. The different currency combinations represent nothing more than the value of one currency versus the value of another. That relationship is represented by a single price. In foreign exchange, the price of a currency pair is the markets expectations (at that time) of the value of that currency measured against another currency given the current and expected economic and political situation in the two economies. In equity terms, it is the price of the stock. If, for example, an economys inflation/interest rates are low and stable, if its output is growing strongly, or if its politics are stable and expectations are for more of the same, then one can expect (in general) for that country's currency to remain strong versus a less fundamentally favorable currency.

Contrasting that with an equity, if the domestic and global economy is strong, if inflation is not rampant, if competition is not taking away market share or eating into margins, if product demand and growth are strong, of if the companies internal "politics" are such that the workers are happy and productive, and expectations are for more of the same, then you can expect that companys stock to remain strong versus a company with less favorable fundamentals. Similar to equities there are other factors that determine the short term value of a product including technical analysis, short term supply and demand, seasonal capital flow patterns, the current price of the instrument, etc. It is these universal dynamics that will move a currencys value up or down. (High Risk Warning )(Past Performance).

THE LIQUID CURRENCY PAIRS Currencies, like equities and bonds, have pairs that are very liquid and those that are not so liquid. The liquid currencies can be characterized as those that are the most stable economically and politically. They include the countries that form the G7 - the United States, Japan, Great Britain, France, Germany, Italy, and Canada. Since the unification of the European currencies into the EURO, the currencies that are most liquid now include the US Dollar, the Japanese Yen, the British Pound, the Euro, and the Canadian Dollar. It is estimated that activities in these currencies comprise more than 80% of the daily foreign exchange volume. FOREIGN CURRENCY SYMBOLS Currencies, like equities, have their own symbols that distinguish one from another. Since currencies are quoted in terms of the value of one against the value of another, a currency pair includes the "name" for both currencies, separated by a "/". The "name" is a three letter acronym. The first two letters are in most cases reserved for identification of the country. The last letter is the first letter of the unit of currency for that country. For example, USD = United States Dollar GBP = Great Britain Pound JPY = Japanese Yen

CAD = Canadian Dollar CHF = Confederatio Helvetica (Latin for Swiss Confederation) Franc NZD = New Zealand Dollar AUD = Australian Dollar NOK = Norwegian Krona SEK = Swedish Krona Since the European Euro has no specific country attached to it, it goes simply by the acronym EUR. By combining one currency, EUR, with another USD, you create a currency pair EUR/USD. THE BASE AND THE COUNTER CURRENCY One currency in a currency pair is always dominant. It is called the Base Currency. The base currency is identified as the first currency in a currency pair. It also is the currency that remains constant when determining a currency pair's price. The Euro is the dominant base currency against all other global currencies. As a result, currency pairs against the EUR will be identified as EUR/USD, EUR/GBP, EUR/CHF, EUR/JPY, EUR/CAD, etc. All have the EUR acronym as the first in the sequence. The British Pound is next in the hierarchy of currency name domination. The major currency pairs versus the GBP would, therefore be identified as GBP/USD, GBP/CHF, GBP/JPY, GBP/CAD. Apart from the EUR/GBP, expect to see GBP as the first currency in a currency pair. The USD is the next dominant base currency. USD/CAD, USD/JPY, USD/CHF would be the normal currency pair convention for the major currencies. Since the EUR and the GBP are more dominant in terms of base currencies, the dollar is quoted as EUR/USD and GBP/USD. Knowing the base currency is important as it determines the values of currencies (notional or real) exchanged when a foreign exchange deal is transacted. The Counter Currency is the second currency in a Currency Pair notation. THE VALUE OF CURRENCIES

The base currency is ALWAYS equal to one of the currency's monetary unit of exchange (i.e., 1 Euro, 1 Pound, and 1 Dollar). When an investor buys 100,000 EUR/USD, he is said to be buying (or receiving) the EURO or the Base Currency and selling (or paying for) the USD or Counter Currency. The amount of the Base Currency he is buying is equal to 100,000 Euros. Note that this is true no matter the current exchange rate at the time. The base currency amount remains constant. The Counter Currency equivalent amount that the investor is selling (or paying), on the other hand, will fluctuate with the exchange rate for the Currency Pair. It is equal to: (Amount of Base Currency x Market Foreign Exchange Rate) Since the Counter Currency is the part of the currency pair that fluctuates higher or lower, it determines the strength or weakness of both currencies in a currency pair. As one currency goes up, the other must go down. Currencies trade in fractions of a full unit. The smallest fraction is called a "pip". Currencies trade in pips because exchanges of currencies for speculative reasons are generally for large amounts. This is because of the leverage that is available when trading Foreign Exchange. FXDD provides a Maximum Trading Leverage Ratio of 100:1for standard accounts. At that ratio, a 100,000 EUR position would require $1,200 of Margin at an exchange rate of 1.2000. This is calculated by taking the US$ equivalent of 100,000 EUR or US$120,000 and dividing by the 100:1 leverage ratio. Margin Required = $120,000 / 100 = $1,200 To determine the value of a pip for the deal above the following calculation would be made: Value in US$ = 1.20 x Par Amount of Base Currency = $120,000 Value in US$ + a pip = (1.20+.0001) x Par Amount of Base Currency = $120,000 The value of a pip in dollars is equal to $120,000 - $119,990 or $10. When a currency pair goes from a low price to a higher price, the Base Currency is said to have strengthened or gotten stronger. The converse is true for the Counter Currency. That is, it has weakened or gotten weaker as the Base Currency has gotten stronger. Since Exchange Rates represent what a fixed amount of currency is equal to in terms of another currency, we have seen there is just one price for the

Currency Pair. The movement of that price determines whether a currency is getting stronger or weaker. If the EUR/USD exchange rate goes from 1.2000 to 1.2024, we have concluded that the EUR got stronger, the USD weaker. Why? When looking at Foreign Exchange Rates (or prices) an action to Buy the Currency Pair implies buying the Base Currency, or EUR, and selling the Counter Currency, or USD. If the EUR/USD exchange rate moves higher, as expected, the trader can now sell the EUR/USD at a dearer/higher price. The difference represents a Profit to the trader that was Long, or who bought the EUR/USD Currency Pair. Another way of looking at it is at 1.2000, an investor/trader could exchange 1 EUR for $1.20. At 1.2100, however, that same single EUR can now be exchanged for a higher amount of USD, in this case $1.21 USD. The EUR has strengthened or gotten stronger.

TRANSACTING FOREIGN EXCHANGE FUNDAMENTALS BUYING AND SELLING FOREIGN EXCHANGE THE BID/ASK PRICE Like equities, foreign exchange has a Bid price and an Ask price. The bid is where the market maker will buy. The ask is where the market maker will sell. For investors, the reverse is true. The bid price is where an investor can sell, while the ask is where an investor can buy. The bid price is always less than the ask price. This makes logical sense as a market maker, like any investor, wants to buy low and sell high. The spread between the bid and the ask is called the Bid/Ask Spread or Dealing Spread. The bid/ask spread is the premium that market makers charge to provide constant liquidity to a retail client base. For example, the bid and ask might be 1.2050/1.2055. The spread is 5 pips. Paralleling foreign exchange trading to equities, a market maker, like FXDD, is the equivalent of a specialist on the floor of the exchange.

A specialist is always willing and able to make a market (i.e. provide liquidity) to the market/investor. For this service, he will have a bid where he buys the stock and an offer or ask, where he will sell the stock. The bid/ask spread the specialist charges will fluctuate with the general liquidity of the underlying stock. That same principle applies to FXDD's Bid/Ask Spreads. Dealing Spreads for the major currencies pairs on FXDD are 2-3 pips wide. Some less liquid currencies will be a bit wider. This reflects the relative liquidity/risk in the professional market for that particular currency pair. The dealing spreads that we quote reflect a normal market making spread given the risks we take and the costs we incur for servicing our clients' business. Obviously, if the volatility and risk of making a market increase because the markets become less liquid, it stands to reason that our spreads will increase as well. These are universal realities of market makers and should not come as a surprise to knowing investors/traders.

Foreign Exchange Department Axis Bank Treasury is a leading player in the foreign exchange market. Using sophisticated technology and experienced dealers we are able to provide the cheapestto-deliver spot and forward prices to our clients. Various products of Forex department Spot Contracts.

Forward Contracts.

Currency Swaps

Interest Rates Swap.

Currency Options.

Forward Rate Agreement.

Spot Contract It is the simplest and most common foreign exchange transaction widely used by corporates to cover their receivables and payables

Commitment by the client to buy and sell one currency against another at a fixed rate for delivery two business days after the transaction This eliminates the possible risk due to exchange rate fluctuation for the client Corporates can buy or sell foreign currency for genuine transactional purposes

only

Forward Contract Commitment by the client to buy or sell one currency against another at a fixed rate for delivery on a specified future date, or during a period

Corporates can buy or sell outright dollars to hedge genuine underlying exposure with certain restrictions Onshore Interbank forward market is liquid upto to 1 year

Currency Swaps A transaction in which the bank agrees to exchange specified amount of one currency for another currency on future dates at a fixed price

Cash flows can be exchanged for both principal and interest (cross-currency swap), interest only (coupon-only swap) and only principal (principal-only swap) Interest Rates Swaps A transaction in which the Bank contracts to exchange a fixed interest liability for a floating interest rate liability or vice versa on behalf of the client

No exchange of principal amount, only difference in cash flows are settled

Benchmark rates from NSE MIBOR, 1-year INBMK, 5 year INBMK rates are normally used Currency Options A currency option is an instrument, which gives the buyer the option the right to purchase (or sell) a specified currency at a specified rate

Call Options give the buyer the right to buy the currency at the contracted strike price and Put Options give the buyer the right to sell a certain currency at the contract strike price

Contract could be entered by the corporates having an underlying exposure

Forward Rate Agreement FRA provides means for hedging the interest rate risk and is a contract for exchange of interest payments for a specified period from start date in the future to maturity date

There is no exchange of principal amount, only difference in cash flows are settled

The settlement is based on the agreed benchmark rate, which could be USD LIBOR, NSE MIBOR, 1 year INBMK, T-Bill rates etc.

FUCNTIONS OF FOREX DEPARTMENT IN AXIS MALL ROAD LUDHIANA AXIS MALL Road Ludhiana is authorized Dealers in Foreign exchange and the dealer code is6360042/3300009 International Inward Remittances We ensure quick, efficient and safe delivery of your funds to beneficiaries in India. You can remit funds to India easily by: Transfer through SWIFT The SWIFT message is a highly secure and efficient method of fund transfer. We have arrangements with over 200 major banks across the globe to receive SWIFT messages. Most of our branches are directly connected to the globe via SWIFT to ensure that your remittances secure and safe from any place of your choice.

Demand Drafts and Cheques You can also send remittances to India through demand drafts and cheques payable at our branches.

International Outward Remittances When any person or firm or organisation resident in India, desires to transfer funds from India to any place outside India, it gives rise to foreign outward remittance. Axis Bank is an Authorised Dealer and has been delegated powers to effect outward remittances on behalf of their constituents subject to certain conditions and subject to completion of certain formalities, as enumerated in the Exchange Control Manual as amended up to date. Outward remittances can be effected by:

Transfer through SWIFT The SWIFT message MT 100 is highly secure, quickest and efficient method of fund transfer. We have arrangements with over 200 major banks across the globe to receive SWIFT messages. Most of our branches are directly connected to the globe via SWIFT to ensure that your remittances secure and safe from any place of your choice.

Demand Draft This mode of remittance of funds is used when you desire to effect remittance in favour of a named payee by means of an instrument. Upon deposit of rupee equivalent of draft amount together with commission and completion of Exchange Control requirements, you can get the DD issued in foreign currency. You can send the Demand Draft to the beneficiary, who receives payment from drawee bank on presentation.

Sale or purchase foreign currency and Traveller Cheques As a part of its expanding travel related services, Axis bank offers a one-stop shop for a traveller's foreign exchange needs. We can deliver foreign exchange in currency notes or widely accepted travellers cheques according to your convenience. Our services include: Sale of Foreign Currency Notes As authorised dealers, we have been delegated powers by Reserve Bank of India to release foreign exchange for foreign travel. The purpose of travel can be business, vacation or education. Our authorized branches can deliver foreign currency notes as per your entitlement in a currency of your choice. US Dollars and Pound Sterling being the general currency used by travellers.

Sale of Foreign Currency Traveller Cheques Traveller's cheques (TCs) is a convenient risk free form of carrying money and TCs are encashable at a number of locations across the world. All our authorized branches sell foreign currency traveller cheques, which you can purchase according to your entitlement. You can buy a MasterCard or Visa Travellers cheques issued by American Express, Thomas Cook or Citi-Corp. Travellers cheques are sold in all major currencies.

Purchase of Foreign Currency Notes and Travellers cheque We purchase foreign currency notes in all major currencies from:
o o o o

Foreign tourists on a visit to India Indian residents surrendering surplus foreign currency

Authorised moneychangers like Hotels, Emporia etc., who have received foreign currency towards payment of goods and services in the course of their business Authorised full-fledged moneychangers

THERE are basically two Forex Branches in Ludhiana ABOUT AXIS BANK LUDHIANA MALL ROAD BRANCH

Branch Name Branch Id

The Mall 042

Address

Branch Id Address MICR Code IFSC Code SWIFT Code Contact Nos. MICR Code Email IFSC Code Timings SWIFT Code Contact Nos. Lockers Email Timings

Lower Ground Floor, Shop No.AG-01, 02, 03,3 A, 04, 05,05-A, 06, 07, 08, 09, 10, 11, Unit No. 1 & 2,The Boulevard, Plot No.105, Mall Road, Ludhiana 141001 Miller Ganj Punjab India 324 141211002 Nirankari Kucha No. 4, B-15-179/1, Between Vishwakarma Chowk and Dholewal Chowk, UTIB0000042 G.T. Road, Miller Ganj, AXISINBB042 Ludhiana 141003 Tel: 0161- 4684600/ 631/ 625/ 690 Punjab India Fax: 0161- 4684677 141211006 ibrm@axisbank.com UTIB0000324 9.30 a.m. - 3.30 p.m (Monday-Friday) AXISINBB324 9.30 a.m. - 1.30 p.m.(Saturday) Tel: 0161-5093967/8/90161-5095888 Weekly Off: Sunday
Yes

Fax: 0161-5019087 ibrm@axisbank.com 9.30 a.m. - 3.30 p.m (Monday-Friday) 9.30 a.m. - 1.30 p.m.(Saturday) Weekly Off: Sunday

Lockers

Yes

Axis BankMiller Ganj Branch