AXIS BANK

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4/28/12

introduction

AXIS bank

4/28/12

introduction

Axis Bank Limited, formerly UTI Bank, ( BSE:532215, LSE:AXBC) is a financial services firm that had 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), General Insurance Corporation Ltd., National Insurance Company Ltd., The New India Assurance Company, 4/28/12 The Oriental Insurance Corporation and

As on the year ended 31 March 2009 the Bank had a total income of 13,745.04 crore ( US$3.07 billion) and a net profit of 1,812.93 crore (US$404.28 million) The Bank's Registered Office is at Ahmedabad and its Central Office is located at Mumbai At the end of September 2010, The Bank has a very wide network of more than 1281 branches and Extension Counters (as on 31st December, 2010). The Bank has a network of over 6270 ATMs 4/28/12 (as on 31st March, 2011)

REFORMS IN 2008

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SHIFT IN STRATEGY

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INITIAL BUSINESS MODEL

The bank started its operation with corporate assets being the main focus area. Corporate loans offered higher yields to the bank during the period FY96 to FY99 Corporate advances witnessed a high growth rate and accounted for about 80 percent of funds lent by the bank till year 2002 But over exposure to corporate loans impacted the banks assets quality
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STRATEGIC INFLETION POINT

In 1999 the banks net NPAs to advances ratio jumped to 6.3% in FY99 from 3.7% in FY97 When the industrial activity slows down, corporate loans are the first to get hit. This was reflected from a marginal 17% growth in the banks total advances in FY02 from CAGR of 44% in the last four years. Realizing the risk AXIS bank started shifting its concentration to retail finance, which presented immense growth opportunities 4/28/12

STRATEGY SHIFT

AXIS bank started its retail focus with building up of both physical and technology infrastructure, which it thinks are key to acquire customers in retail finance segment. It reflected from a significant rise in its distribution network The number of branches increased to 450 from just 35 in FY99, with 95 extension counter and 1890+ ATMs, the bank was speared across 248 location in country
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CURRENT STRATEGY

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MANAGING CHANGING CUSTOMER NEEDS

RISK MANAGEMENT

DEALING WITH REGULATION

KEEPING PACE WITH TECHNOLOGY

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GROWTH STRATEGY

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OBJECTIVES

INCESSE THE MARKET SHARE

IMPROVE QUALITY

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Complementary strategies for business growth and development

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STATEGIC ALLIACES AND COLLABORAIVE PARTNRSHIP

Tie- ups with Maruti and Hyundai for selling car loans

Co-financing pact with India infrastructure finance company ltd Tie-ups with Bajaj Allianz General Insurance Tie-ups with MetLife as banc assurance partner ATM sharing, based on alliance with other banks such as SBI and multi-bank shared payment networks 4/28/12

OUTSOURCING SELECTED VALUE CHAIN ACTIVITY

Out sourcing recruitment to MonsterIndia.com The bank still relies on headhunters for specialized positions Out sourcing Print Operation to Xerox Axis bank is able to mail personalized chequebooks to its customers within 24 hours of a request This means there is no unused chequebook inventories lies at Axis banks 300 branches 4/28/12

OFFENSIVE STRAGEGIC MOVES

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SUPERIOR CUSOMER SERVICE

The high level of customer oriented approach has enabled the bank to aspire to providing high level of customer satisfaction, leading to customer retention and loyalty.

This enable the bank to catty out a deepening of customer relationship and cross selling services
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RANGE OF SERVICE ON ATM MACHINES

The Axis bank develops a huge network of 18000 ATMs across the country. It also provides value addition to its versatile ATM machines including LIC premium payment and telephone bills payments for service providers like MTNL and BSNL. Also provide mobile banking services and mobile refill facilities for Airtel, Vodafone, Orange and Idea
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AGGRESSIVE GROWTH IN CARDS BUSINESS

The bank is one of the largest issuer of debit cards in India and offers International debit cards with association of VISA and MasterCard. The debit card base of the bank grew to 40 lacs in 2005-06 from 30.3 lacs. The bank was the Indian bank to introduce the travel currency card, a foreign denominated pre-paid card, which is positions as a convenience alternative to the traveler cheque.
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EXPANSION OF GEOGRAPHIC REACH

The geographic reach of the Bank now extends to over 26 states and 2 Union Territories, covering 285 different cities, towns and villages

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FINANCIAL ADVISORY SERVICES

Axis bank provides financial advisory services to customers whose income level is high enough for them to require Wealth Advisory Services

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USE OF INTERNET

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I-CONNECT

Axis bank was one of the first banks in the country to provide internet banking services.

I-connect, the internet banking service of the bank saw a rise during 2005-06 in its user base.

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INTERNET BASED ELECTONIC

The bank partnered with Overseas Indians to offer an Internet based electronic remittances portal to facilitate remittance from NRIs

The portal also provide information services relating to investments in financial markets, tax consultancy and investment in real estate
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E-PAYEMENT FACILITY

The bank launched an e-payment facility for payment of central exis & servise tax through the Internet for it customers as part of the e-Governance initiative of the Central Board of Excise & Customs

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SETU (SEAMLESS ELECTRONIC TRANFER TO AXIS BANK)

The banks it team provides technical and process know-how support for enabling seamless internet banking funds transfer to corporate and to overseas banks who prefer to have a regular business tie-ups for remittances. This process is called SETU, (Seamless Electronic Transfer to Axis Bank)

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I-TRADE

The software development team launched a new process called i-trade

This process allows large corporate to route their procurement transactions through the internet, keeping track of outstanding dues of their dealers

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EVALUATION OF GROWTH

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CURRENT SENARIO

The bank posted a net profit of Rs 485.08 cores for the year 2005-06, which was 44.98% higher than Rs 334.58 cores in the previous year. The capital Adequacy ratio ( CAR ) of AXIS bank is at 11.08% subsequently above the benchmark requirement of 9% prescribed by the Reserve Bank of India The Net NPA ratio of the bank is also down to .75% from 1.07% during the 4/28/12 year 2005-06

Net profit

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Operating revenue

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Fee income

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Enhancing shareholders value

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dividend

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Centers covered

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Branches

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ATMs

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GOVERNANCE & ETHICS STRUCTURE

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BANKS POLICY ON CORPORATE GOVERNANCE

TO ENHANCE THE LONG ERM INTEREST OF SHAREHOLDER

TO IDENTIFY AND RECOGNIZE THE BOARD OF DIRECTOR AND THE MANAGEMENT OF THE BANK AS THE PRINCIPAL INSTRUMENT THSOUGH WHICH GOOD CORPORATE GOVERNANCE PRINCIPAL ARE ARTICULATED AND IMPLEMENTED
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INNOVATION AND ENTREPRENEURSHIP

The bank experimented with new delivery models for credit, including setting up low cost rural ATMs at Anand Such application of technology provides customers convience as well as product innovation A channel Finance Hub has been created to provide seamless service to various channel finance customers AXIS bank believes that in the long run a composite suite of credit as well as liabilityrelated products would make low cost ATM 4/28/12 centered models a profitable business

LEARNING, THINKING AND SHARING

Axis facilitates communication, collaboration and workflow between scatteres emplee bases. With over 150 branches and 2000+ knowledge workers there was as impeding requirement for emplees to communicate, collaborate and work in a productive manner AXIS bank chose Wipro to provide an online solution to fit their needs. Wipro set up an employee portal for internal activity and information requirement of the employees of AXIS.
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KNOWLEDGE, COMPETENCIES AND CAPABILIIES

Axis bank has a skilled and well trained workforce at all levels, including the front customer interface Almost a quarter of its managers are recruited from premier business institutes across the country. The knowledge management oriented employee portal span functions of the bank ranging from marketing, credit banking, merchant banking to support function such as IT, HR, accounts, legal and 4/28/12 administration.

TECHNOLOGY, SCALE AND SCOPE ADVANTEGES

The banks Information technology strategy is focused on capacity enhancement, which is able to mainatain an efficient servicing capabilities in a multi channel delivery environment. With second largest number of ATMs, AXIS bank is leveraging the scale and service advantage Up to date market infrastructure, sofistication in product development, realiable banking techniques and mitigation 4/28/12 of risk enables AXIS bank to reach newer

NETWORKING, INTERDEPENDANCIES AND PARTNESHIPS

AXIS bank has interred into numerous collaborative partnership and mutually beneficial strategy alliances to extend the marketing reach of its products. Gain entry into previously unchartered territories such as insurance and provide value added services to its customer and gain a sustainable competitive edge Certain value chain activities have been out source to cut down cost and achieve greater efficiency
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TOTAL CUSTOMER ORIENATATION

By centralizing transaction processing, the bank is able to achieve better consistency. The banks centralized Phone Banking Centers provides customer across the country access to the bank over the phone handling multiple queries. To ensure that customer satisfaction is high and improvement are introduced from time to time in customer service standard, a customer service committee of the board and a standing committee on customer 4/28/12 Service comprising senior functionaries as

CORE VALUES

Customer satisfaction

Maximization of stakeholders value

Success through teamwork, integrity and people

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Thank You

AXIS bank

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