SUMMER TRAINING PROJECT REPORT ON PRIORITY BANKING-PERCEPTION AND SATISFACTION OF CUSTOMERS AT AXIS BANK Submitted in Partial Fulfilment for

the Award of the Degree of Bachelor in Business Administration 2011-2014

Under the Guidance of: DR. VIJAY KHURANA

Submitted By: AAYUSH JAIN Enrolment No: 0276101711

Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086

STUDENT UNDERTAKING

This is to certify that I have completed the Project titled PRIORITY BANKING-

PERCEPTION AND SATISFACTION OF CUSTOMERS AT AXIS BANK in

AXIS BANK under the guidance of DR. VIJAY KHURANA in partial fulfillment of the requirement for the award of degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Name of the Student AAYUSH JAIN

CERTIFICATE

This is to certify that the project titled PRIORITY BANKING-PERCEPTION AND

SATISFACTION OF CUSTOMERS AT AXIS BANK is an academic work done by

AAYUSH JAIN submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

Date: Place: New Delhi

DR. VIJAY KHURANA PROFESSOR Department Of Management

ACKNOWLEDGEMENT

While conducting this report, I got support in many ways from many people. First I am deeply grateful to my Project guide, DR. VIJAY KHURANA who helped me with full devotion and always supported me earnestly whenever it was needed. Without her guidance, mental and moral support and academic inputs this report was not possible. A word if gratitude goes to my family members whose love, affection and understanding have enabled me to complete this endeavor with ease. At the end, I thank for giving me courage and strength to conduct this report.

PREFACE
After the Globalization and the Industrialization of the Indian Economy in 1991, many positive developments have taken place which includes increase in disposable income, changing life style and one of the major change has been emergence of new private banks and their reforms.

Graduation in Business Management is a three year course to provide a practical outlook to the next generation entrepreneurs in addition to the theoretical knowledge provided in the college. After completing the 2nd year in the college, it is compulsory for a student to undertake Summer Internship Project (SIP) in an organization for a duration of 1 month. Project work refers to supervised assignment at an approved company. Project work emphasizes the integration of academic and hand-on learning. It gives an opportunity to apply course work to practical solutions. It also helps to explore career options and gain valuable skills. The project works on Priority Banking its services and comparison among competitors, through focusing on the main objective of finding out customer perception level and the satisfaction of those who are already availing priority services. A personal observation through questionnaire enabled me to achieve the objectives. The areas covered were basically north Delhi with a sample size of 100 respondents, from where the data was collected and analyzed to arrive at a conclusion. The report covers all the aspects from the research with statistical and graphical analysis. My project work at Axis bank, Delhi has been a great learning experience. During the project I had undertaken a pilot survey and followed it by a structured questionnaire. The present report is a sincere attempt on my behalf to present information, facts and findings on the stated research title. The expectation of the project is to meet the requirements of the company.

TABLE OF CONTENTS S.NO TOPIC 1. About Axis Bank Achievements of the Bank Recent developments SWOT analysis of the bank Priority banking-features Priority banking-eligibility criteria Research methodology Data analysis & Interpretation PAGE NO. 8 13 14 15 16 18 30 33

2.

3. 4. 5. 6. 7.

Conclusion & Recommendations 53 Bibliography Annexure 57 60

BANK PROFILE

ABOUT AXIS BANK

Axis Bank, previously known as UTI Bank, is one of the Big Four Banks of India along with State Bank of India, HDFC Bank and ICICI Bank. Axis Bank began its 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 as on 31st March, 2013 is capitalized to the extent of Rs. 413.2 crores with the public holding (other than promoters and GDRs) at 54.08%. 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 1947 branches (including 169 Service Branches/CPCs as on 31st March, 2013). The Bank has a network of over 11245 ATMs (as on 31st March, 2013) providing 24 hrs a day banking convenience to its customers. This is one of the largest ATM networks in the country. Axis Bank operates one of the worlds highest ATM sites at Thegu, Sikkim at a height of 4023.4 metres (13,200 ft) above sea level, and has the largest ATM network among private banks in India. 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. 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. OFFERINGS: Axis Bank offers a range of financial products and services to its clients throughout the country. It also has special strength in retail and corporate banking. Axis Bank offers following services:

Personal Banking Corporate Banking NRI Priority Banking

Board of Directors

The members of the Board are:

Dr. Sanjiv Misra Chairman Smt. Shikha Sharma Shri S. K. Chakrabarti Dr. R.H. Patil Shri Som Mittal Prof. Samir K. Barua Shri M.V. Subbiah Shri K. N. Prithviraj Shri. Rohit Bhagat Shri S. B. Mathur Smt. Ireena Vittal Shri R. N. Bhattacharyya Managing Director & CEO Deputy Managing Director Director Director Director Director Director Director Director Director Director

Achievements of axis bank

India's 3rd largest Private sector Bank. Outstanding achievement award for year 2005. Best Bank award in private sector by IDRBT, Hyderabad. Outstanding Achiever- Corporate Award. Best clearing and Settlement Award.

MISSION AND VALUES:

VALUES:
Customer Service and Product Innovation tuned to diverse needs of individual and Corporate clientele. Continuous technology up gradation 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 Maximization of Stakeholder value Success through Teamwork, Integrity and People
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MANPOWER DEVELOPMENT
The Company believes that in order to unleash 100% potential, it is necessary to empower talent and prepare its people with the necessary skills to exploit their own potential and the potential of the Company. To enable this, the Company continued to provide employees with appropriate training initiatives and development programs to continuously improve their skills; and international exposures, where feasible and relevant. During 2011, the Company increased its focus on people development. In the current environment people attraction and retention remains a key challenge and focus area for the Company. During 2012, some specific measures were initiated to deal with this challenge.

Recent Developments
Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009. Net Profit for FY13 stood at 4,242 crores, up by 35% YOY from 3,142 crores for FY12. The number of Savings Bank accounts grew from 1.25 Crores as on 31st March2012 to 1.72 Crores as on 31st march 2013 The Bank's International Debit Card base has risen to 16 million debit Cards as on 31st March 2012, compared to 12.3 million debit cards as on 31st March 2011 The bank also has overseas offices in Singapore, China, Hong Kong and Dubai. Crosses the 3,723 ATM mark in 2009 Launches Platinum Credit Card, India's first EMV chip based card Axis Bank is now trading at Rs 1119
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Growth Prospects of Axis bank

Over the last five years, the CAGR for loan growth for the banking industry has been 2526 per cent; for Axis Bank it has been above 40 per cent. Nonetheless, the bank is still expected to grow its loan portfolio at 1.5-1. 7x the industry average. In FY10 its advances grew at the rate of 37.5 per cent. In FYI0 they are expected to grow at the rate of 27-28 per cent and in FY11 at 25 per cent. For the banking industry as a whole, the loan book is expected to grow at 18 per cent in FYI0 and 16 per cent in FYl1. Thus, Axis Bank's fast pace of growth is expected to sustain over the next couple of years.

SWOT Analysis of the Bank

1) STRENGTHS
Extremely competitive and profitable banking franchise. Banking Services includes corporate credit retail banking, business banking, capital markets, treasury and International banking. Sound technological platform with centralized database and operations. Capital adequacy ratio 13.69% and net NPA 0.35%. Growth in retail banking and corporate banking

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2) WEAKNESS:
Higher cost of funds compared to peer banks. Low Market Capitalization

3) OPPORTUNITY:
Larger retail and corporate market Wide scope in rural India. People have become more service oriented.

4) THREAT:
Other savings and investments options available ( Insurance, Mutual funds, demat accounts ,gold coins) Very high competition with private sector (ICICI Bank, HDFC Bank) or public sector banks.(SBI,PNB,BOB).

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PRIORITY BANKING

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Axis bank presents to its customer's its Priority Banking Service. A service that would ensure not only the highest level of priority but also preferential treatment to its customers.

Personalized Services-:
Banking privileges Investment Privileges Lifestyle Privileges Gold Credit Card

Banking Privileges
Priority Banking Lounge: Priority banking customers have access to an exclusive 'Priority Banking Lounge' at selected branches. This allows the customers to conduct their financial transactions in utmost comfort and confidentiality through an exclusive Relationship Manager.

Dedicated Relationship Manager: Customers get access to a dedicated Relationship Manager who will be their one point contact at branch for all their banking transactions thus ensuring that customers would neither have to move from one counter to the other nor stand in queues to await for their turn.

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Home Banking: Experience the convenience of home banking facilities. Avail of free cash and cheque pickup and delivery at office or residence of the customer.

Exclusive Priority Banking International Debit card: This card allows customers free access to all VISA ATMs in India. The card also comes with higher ATM withdrawal limits, higher transaction limits at merchant establishments, enhanced insurance cover and a host of special discounts and offers.

Preferential Interest Rates: Customers also get Preferential Interest Rates and lowered Processing Fees on select Retail Loans.

Other Banking Privileges: Enjoy a host of banking privileges like free at-par cheque, demand drafts and pay orders, free passbook updates and monthly statements. Customers would also be entitled to two free minor accounts, one free outward remittance per quarter and free Mobile banking.

Investment Privileges: Avail of assistance in financial planning. Investment advice, market information reports, and invitations to investor meets are offered complimentary to the Customers.

Lifestyle Privileges: However, it's not all about just financial services. Axis bank aims to provide a different Lifestyle experience through special offers on premium brands, movie privileges, special events and
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lots more - especially for Priority Banking customers.

Priority Account-Features

AXIS Bank Priority Banking is committed to offer the best services to its customers and taking this Relationship beyond Banking. Priority banking service provides preferential Banking experience to customers. Only individuals and Hindu Undivided Families (HUF) can sign for Priority Banking. It not only offers customized services but also provides the customers with unmatched Banking investment and life style privileges.

PRIORITY BANKING
Eligibility Criteria (Individual)

A minimum Average Quarterly Balance (AQB) of (OR) A client with net salary credit of (OR) A Client with term deposit relationship (OR)

2 lakhs in Savings Bank-Regular account

75,000

10 lakhs and above

A client with weighted deposits (savings account, current account, term deposit) (AND/OR) investment in mutual fund & life insurance (with minimum 50,000 in savings) - 5 lakhs and above.

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Eligibility criteria (family)

Family of 4 with total weighted deposits(Savings account, current account, term deposit) investment in mutual fund & life insurance(with minimum 1 lakh in savings)- 10 lakhs & above

Premium Branches and Lounges

Large spaces. Soft sunken sofas. Large wall television sets broadcasting the latest business buzz. Hot, freshly brewed coffee. Sounds like the lobby of a star hotel. Not really. It's the new experience at Axis Bank's exclusive 'Premium Branches and Lounges', which have been planned especially keeping in mind the lifestyle, tastes and preferences of the Premium customers .

Going beyond just regular banking, Axis bank brings a concept that is first of its kind in India. Enjoy a boutique banking experience, discover a wide range of banking and investment products, and feel pampered with the various value-added privileges. And what's more, these exclusive branches are designed especially for the Premium Customers.

Business Center: A Premium customer, can utilize banks fully equipped business center for his business meetings whenever he is travelling to the respective city where a Premium Branch or Lounge is located. Customer needs to just make a booking for the business center in advance, through phone or email.
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Internet Access Zone: Utilize the convenient Internet Access Zone where customers can check their email, surf the web or transact through Internet Banking for their banking and investment requirements.

Meeting Rooms: Meeting rooms are provided for the customers to discuss their investments or transactions along with their Relationship Manager, in comfort and confidentiality.

Relax Zone: The Premium Branches and lounges have a special area for the entire family of the customer to relax while the customer is discussing his finances with his Relationship Manager.

Conference room: A Premium customer, can receive invitations for special events such as investment conferences, art exhibitions and other programmes periodically organized by the Branch, in the specially designed conference area.

All the above-mentioned features are available only at Exclusive Premium Branches and Lounges

INVESTMENT PRIVILEGES:

Mohur Gold Thought to be one of the first known metals, gold has been coveted throughout history for its beauty, scarcity, malleability, and uncanny resistance to rust and corrosion. Centuries ago, gold's unique combination of properties -- its sun-like color, its soft hardness and especially its imperviousness to decay -- imbued it with magical associations in the eyes of many. Because of these unique properties, gold has traditionally been the currency of choice for much of the world's population. Gold as an investment The value of gold has transcended all national, political, and cultural borders, to become a desired asset. It in the form of coins and bars has attracted investments across various cultures for centuries. The advantages of investing in gold are: Investment in Gold has given a average return of 26.98% in the last 3 years One time investment, which accumulates and gains value throughout its lifetime
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Not subject to any maintenance cost Investment cum utility commodity Low risk of losing invested capital Does not require regular monitoring Is very liquid- valued and traded every where

Mohur Gold Coins/Bars

Axis Bank brings Mohur Gold coins/bars in the purest form! Made in Switzerland, Mohur Gold coins/bars carry the Assay certification of being 24 carat, 99.99% pure! It comes in a specialized packaging that is tamper proof so that its purity is preserved. Available in 2 gms, 5 gms, 8 gms, 10 gms, 20 gms & 50 gms.Gold Bars of 5 gms denomination have Goddess Laxmi embossed on them. Mohur Gold Bars can be bought over the counter in over 850 branches of Axis Bank.

Gold Coins- An Investment

ETFs requires exchanges. Exchanges requires brokers and sound knowledge of the transactions. Gold coins can be bought as systematic investment plan to even out the price variations. Gold Coins offer assured purity compared to Jewellery.

Mutual Funds A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realized are shared by its unit holders in proportion to the number of units owned by them.Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost.

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Offerings at Axis Bank Axis Bank Financial Advisory team, adopts a strong research driven recommendation model to help the customers choose the best funds based on qualitative and quantitative parameters. Apart from this, a dedicated Relationship Manager can also be assigned to the customer to ensure that their investment requirements are taken care of, smoothly and efficiently. The advisors understand the customers profile and lead them through a structured financial planning process to devise financial solutions best suited for the customer. The advisors will also help the customer to choose the right investment products in line with his investment goals. Axis Bank offers a unique 'One Page Portfolio Snapshot' report across investment products to the customers investing in Mutual Funds. This report can be viewed through Banks Internet Banking module.

AxisDirect - Online Trading. Simplified Identifying the best investment opportunities in unpredictable markets can be challenging. At least the trading portal should be easy. Thats why Axis Bank brings an easy-to-use trading portal, www.axisdirect.in. Its intelligent and intuitive features keep all necessary information handy so that the customer doesnt have to painstakingly browse multiple windows. Its sharp research and analysis tools helps the customer take wellinformed and timely decisions. Experience simplified online trading with AxisDirect. Axis Bank provides solutions to suit different investment needs and approaches. So- a beginner, an avid investor or trader everyone gets customized solutions, which match specific needs. Beginners If a customer is new to the online trading or don't understand all the stock market jargon, then AxisDirect is 'the destination' for them. Its unique & intuitive features and simplified content helps the customer understand the basics of the stock market, the research products and helps them to confidently trade online, even with as little as Rs. 1,000. Investors An independent investor, will have access to all the research and trading facilities to execute his trades at the click of a button. He could be anywhere, anytime and still manage to place his trades through the internet or by using Trade on Phone facility'. Banks customer service representatives can easily be reached via phone, as well as email.
Traders

Trading is an art that is mastered with experience and a lot of discipline. As a trader, one cannot afford to miss out on real time opportunities that present themselves in the market hours. One can simplify as well as customize his trading experience using any of two unique Online Trading Platforms viz EXE and Applet based, depending on the trading needs.

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Key Features: o Single platform for multiple exchanges BSE & NSE (Cash & F&O) o Market Watch available on Single Screen o Multiple Charts with Tick by Tick Intraday and charting powered with various Studies o User can save his own defined screen as well as graph template o User-defined alert settings for Stock Price trigger o Shortcut key for swift access to order placements & reports.

Depository Services Axis Bank is a registered member (Depository Participant) of NSDL. In this system, physical security holdings are converted into electronic (or in other words, dematerialized) holdings. Axis Bank has been enrolled as a Depository Participant by the NSDL - India's first depository. One can avail of all the depository-related services by just opening an account with NSDL through Axis Bank.

Depository Services

Transfer of shares and settlements Receipt of Corporate Benefits Dematerialization of shares

Rematerilialization Pledge-Hypothecation Freezing or Locking of Accounts

Transfer of shares and settlements: Transfer and settlements have never been easy as it is under the depository system. All that is required is an instruction slip from the customer. If a customer is selling securities then it has to be a delivery instruction slip. If a customer is purchasing securities it has to be a receipt instruction slip or standing instructions for credit. Receipt of Corporate Benefits: Even securities entitlements like bonus and rights can be credited to the Demat Account electronically. Cash benefits like dividends and interest will, however be forwarded to the customer directly and not through the depository. However, MICR code details in the Demat Account would ensure credit of cash corporate action to customers respective bank account. Dematerialisation of shares: At request the bank can arrange to convert customers physical holdings into electronic form. The customer will have to open an account with NSDL through the Axis Bank called "Beneficiary Account" in the name and style in which the shares are held and lodge the share certificates with the bank accompanied by a dematerialisation request form, separate for each scrip. Customers are required to only make sure that NSDL has admitted that scrip for dematerialisation. An upto date list will be provided to the customer which will be constantly updated.
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Rematerilialisation: Customers have the option to convert their electronic shares back to physical shares. Pledge-Hypothecation: Customers can also avail loans against their electronic shares. This process is also much faster than in the case of physical shares. Freezing or Locking of Accounts: Customers can also keep their accounts frozen or locked for the span of time desired by them. No debits from their account will be made during this period. Portfolio Investment Scheme (PIS) Account Portfolio Investment Scheme (PIS) allows NRIs to invest in shares of Indian companies, in secondary market, under repatriation or non-repatriation basis in respect of shares or convertible debentures sold or purchased through a registered stock broker on a recognised stock exchange. Any other modes of acquiring shares are not covered under this scheme ie, shares purchased through IPOs, as resident individuals, bonus shares etc. Features
o o o o

Low minimum balance requirement of Rs 5,000 Low cost of transaction Seamless reporting to RBI and complying with all statutory regulations on your behalf Calculation of capital gains tax liability and issuance of tax deduction certificate

Fees and Charges: Account maintenance charge of Rs 1,000 Transaction charge of Rs 100 per script on sale and purchase irrespective of transacted quantity or value.
o

Mandate or Power of Attorney facility available so that in the absence of the customer from the country the customer can authorize his relative or friend to operate conduct banking transactions on his behalf. Free iConnect: 24 X 7 account access through secure Internet banking facility from anywhere and anytime

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CARDS FOR PRIORITY CUSTOMERS

Platinum Credit Card Enjoy the world of exciting privileges and benefits with Axis Bank Platinum card. Platinum Privileges Highest Level of Security While the rest of the world is still catching up with this increased level of security, Axis Bank Platinum Credit Card membership presents you with the Platinum Chip card. The Platinum Chip offers clear Authentication of credit payments combined with easy fraud detection. The chip can not be duplicated, Ruling out counterfeiting and skimming. This makes your card safer and secure than any other card in India. 2.5% Savings on Fuel Spends

Now get a 2.5% Fuel Surcharge Waiver on all fuel transactions with your Axis Bank Platinum Credit card. The offer is valid across all petrol stations in India for a minimum transaction amount of Rs. 400 and a maximum of Rs. 4000 *No Plus Points are earned on fuel transactions made using your Axis Bank Credit Card. *No refund shall be provided for Service Tax charged on the surcharge. Exciting Rewards Program Enjoy an exciting rewards program specially designed to reward your big spends and international Transaction Earn 1 PlusPoint for every Rs.100 spent on Domestic spends Earn 2 Plus Points for every Rs. 100 spent on International Spends Plus Points can be redeemed against exciting Gifts, Merchandise & Gift Vouchers. You need to accumulate 1000 PlusPoints in order to start redeeming.

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Additional Platinum Benefits Comprehensive Insurance Cover Axis Bank Platinum Credit Card includes a package of insurance benefits to set you mind at ease. The table below enumerates the benefits provided on Axis Bank Platinum Credit Card. S. No. 1 2 3 Total Cover Type Air Accident Cover Credit Shield Lost Card Liability Amount (Rs.) 40,00,000 1,00,000 3,00,000 44,00,000

Exclusive Platinum Offers Check out the Exclusive Offers on your Platinum Credit Card.

Matrix Cellular: Stay connected the smarter way with Matrix Sim cards. Hertz Car rentals: Enjoy 10% off on car rentals Joining & Annual Fees Joining Fee Annual Fee (from 2nd year onwards)

Rs. 500 (Waived on spends of Rs. 5000 within 45 200 (Waived on spends of Rs. 100000 in the days of card setup preceding year)

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Priority Platinum Debit Card:

Features:

Free usage at all Visa ATMs: The Priority Platinum debit card gives you free usage at all Visa ATMs in India, even at ATMs of other banks.

Zero Fuel Surcharge On using Axis Banks Priority Platinum Debit Card for fuel purchases, customers get a full waiver of fuel surcharge that would be normally applicable otherwise.

Instant Identification The aesthetically designed Priority Platinum debit card with the Axis bank Priority logo would identify the customer as Axis Bank Priority customer at any of the branches across India where the service is being offered. It would also help the customer to avail the various privileges the bank offers from time to time. Higher Transaction Limits Especially for Axis Bank Priority Platinum Debit cardholders, the daily ATM Cash Withdrawal Limit has been enhanced to Rs 1,00,000 per day at all Axis Bank ATMs. The daily POS limit is Rs 1,50,000 at Merchant Establishments, subject to the balances held in the account. No issuance Charges on Primary and one add-on card No issuance Charges and get waiver on Annual charges of Rs 200 subject to Rs 50,000 POS transactions in a year. Enhanced Insurance Coverage The Axis Bank Priority Platinum Debit Card comes with special insurance features that protect you and your loved ones.

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Zero Lost Card Liability An Axis Bank Debit Card customer, will be insured for risk of loss due to fraudulent use of a lost or stolen or missing debit card. Purchase Protection All consumer durable goods purchased using the debit card are insured against fire, natural calamity, burglary and housebreaking up to 90 days from the date of purchase. Customer will be eligible for a combined lost card liability and purchase protection of up to Rs 1.5 lakh. Personal Accident Cover In the unfortunate event of loss of life in a mishap, the customer's beneficiaries will receive the benefit of accident insurance of Rs 5 lakh. Exclusive Offers Axis Bank regularly tie up with leading restaurants, shopping establishments, hotels, resorts etc, to bring exclusive discounts and offers from time to time for its customers. These offers would be valid only when the customer utilizes his Priority Platinum Debit Card to make the payments. Rewards Program: The Priority Platinum Debit Card Rewards Programme allows customer to earn reward points on your spends at merchant outlets. The accumulated reward points can be redeemed for gift coupons from leading retailers, restaurants, international brands, leather products, cosmetics etc. Customers will earn 1 reward point for every Rs 100 of domestic spends and 3 reward points for every Rs 100 international spends done using your Priority Platinum Debit Card.

Travel Currency Card: Axis Bank's Travel Currency Card aims to make traveling abroad a truly memorable experience. Available off the shelf at the nearest Axis Bank Branch and select FFMCs (Full Fledged Moneychangers), the Travel Currency Card is a secure, convenient and hassle free way to carry money and make payments when in foreign shores. With it customers can attend to their business, enjoy the delightful tourist spots, dine out, and take in the breathtaking landscape and exotic culture of the country without worrying about money changers and converting their traveller's cheques into local currency. The Travel Currency Card gives customers a 24-hour access to their money. Customers can withdraw funds in the local currency from any Visa or Visa Plus ATM's (Automated Teller Machine) as well as pay for all their purchases in any country they visit, anywhere in the world.

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Features

Travel Across the Globe

The Axis Bank Travel Currency Card is a prepaid foreign currency card, which is currently available in the denominations of US Dollars, Euro, Great Britain Pound, Australian Dollar, Canadian Dollar, Singapore Dollar, Swiss Francs, Swedish Kroner, Japanese Yen, Dirhams (AED) and Saudi Riyals (SAR). The Card is available off the shelf at the nearest Axis Bank Branch and select FFMCs by filling up in a simple application form along with relevant documents and one can walk out with the card in their hand, loaded with the required amount of foreign currency. The minimum requirements on the 11 currency denominations are USD-250; EURO-200; GBP-150; AUD-300; CAD-300; SGD-350; CHF-300, SEK-1500, JPY 30000, AED 950 and SAR 950. The maximum amount of foreign currency that can be loaded on to the card is as per the extant guidelines of the Reserve Bank of India. The Travel Currency Card variants are available on VISA as well as MasterCard platforms. The USD, EUR, GBP, AUD, CAD, SGD, CHF, SEK, JPY are on VISA platform. The USD, GBP, EUR, AED and SAR variants are available on the MasterCard platform. The Travel Currency Cards can be used to withdraw cash at over 1 million VISA/MasterCard ATMs and for purchase transactions at over 14 million merchant outlets across the world.

Convenience Guaranteed
With the Travel Currency Card customers can carry and use their money in the denomination they want. Cash can be withdrawn from an ATM or shop for very small amounts. A person need not carry loose change anymore that he is left with when he encashes his Traveler's Cheques. Also customers have unlimited access to their money at any time - day or night. They don't have to waste precious time looking for moneychangers to encash their Travelers Cheque. With the Travel Currency Card one can pay directly at all Visa enabled merchant outlets (shops, restaurants, hotels, grocery stores etc.)

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Security
A secure 4 digit PIN helps to secure all the cash withdrawal transactions. If a customers card is lost or misplaced he can call on the 24-Hour Customer Service Number, the card will be immediately blocked to secure the money and a replacement card will be sent to the customer upon the request. As a cardholder,a customer can also access Visa's Global Customer Assistance Service (GCAS), which can be used to report a lost or stolen card, get emergency cash assistance or emergency card replacement and make inquiries (charges applicable). The Cards comes with a Comprehensive Travel Insurance to provide customers with the peace of mind when they are travelling abroad. The Insurance cover becomes available to the customers upon payment of the Card Issuance fee. Customers also get insurance coverage equivalent of upto Rs 2, 00,000 for Loss of Card from the time customer reports the loss to the bank. It is mandatory to lodge a Police Complaint/FIR for making a claim in the event of loss and misuse of the card.

Unutilized balance
Choose option refill or refund or transfer to a dollar account. When a customer returns from his trip, he can choose to 1. Get his balance on the card encashed 2. Transfer it to a Resident Foreign Currency Domestic Account 3. Or simply let the balance on his Card (upto $2000 as per RBI Regulation) remain so that it can be used for any future trips. The date of expiry is indicated on the card. During this time customers can use there card as many times as they wish.It can also be refilled on subsequent trips by filling up a reload coupon and attaching the necessary documents. the card will be reloaded with additional amount within 24 Hours.

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RESEARCH METHODLOGY
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RESEARCH METHODOLOGY
The project work on the customer's satisfaction and their perception for priority banking services. It also seeks to compare the different services offered by various banks in the same and provides an overview of the present market conditions and areas to improve upon to increase market share of banking products. The sample size was 100 people from where the data was collected and hence analyzed. The Modus Operandi of the survey was accomplished with the help of questionnaires. In the initial part of the project a pilot survey was conducted taking a sample of 20 people. So as to understand the different factors of the market and plan accordingly to proceed on the research and find out the relevant data to achieve the required objective of the research.

OBJECTIVE OF THE STUDY:

The study would focus on the collection of data from the desired sample size with a view to attain the following stated objectives: Comparison among different private banks with respect to services they are Offering in priority banking. Customer satisfaction level having priority accounts. Customer perception of priority banking.

SCOPE AND COVERAGE OF THE RESEARCH STUDY:

The study has been undertaken in the area of Rohini, Pitampura and Punjabi Bagh. The various bank customers were approach to get the questionnaires filled up.

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SOUCES OF INFORMATION:

a) Primary Data:
For collecting primary data an approved structure - questionnaire was used which was a framework of various questions covering various aspects of priority banking services.

b) Secondary Data:
Available published books, magazines, journals,various websites etc. has been used to better understand the concept, nature and even application of the problem so as to derive fruitful result. Even the literature, Pamphlets, past reports and the web site of the organization provided valuable inputs.

Sampling:

a.) Sampling Method:

As a part of this project report Disproportionate stratified random sampling was used. Wherein, the sample size in each group is not proportional to the respective group sizes. This method has been chosen to make the sample represent the universe. Universe, here is the entire group of items that the researcher wishes to study and about which he plans to generalize.

b) Sampling Plan:
As the entire population cannot be surveyed upon keeping in mind the time constraint the selected units of the population are drawn for getting an idea and information regarding the characteristics under study. This is called as "Sampling Plan".
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The sample selection has been done at random keeping in mind the main objective.

c.) Sample Size:

A population of 100 customers has been selected at random on the subject mentioned previously considering the constraints of the researcher and the research study.

d.) Sample Selection:

The samples have been chosen randomly from the universe on the basis of convenience and in some way targeted at customers who are availing priority account services.

ANALYSIS AND INETPRETATION:

The data so collected with the help of questionnaires and observation has been analyzed graphically and statistically. The Microsoft excel has been used to compile the data which has been further used to make various diagrams and pie charts.

SUGGESTION AND RECOMMENDATIONS:

The suggestion and recommendation are given on the basis of personal observations, suggestions given by the customers so as to improve the present market share and bring about the improvement in brand visibility.

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DATA ANALYSIS AND INTERPRETATIONS

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PRIMARY DATA ANALYSIS

Number of accounts being held by a customer

NUMBER OF ACCOUNTS( in %)

17%

44%

1-2 Accounts 3-4 Accounts 5-6 Accounts

39%

The above pie diagram shows that out of 100 respondents, 44% customers hold only single account. Whereas the number of customers holding two accounts is 39%. There are only 17% customers who hold less than two accounts.

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The most Preferred Bank of Customers

Preferred bank
35 30

29 26

No. of Customers

25 20 15

22

12
10 5 0 ICICI HDFC AXIS HSBC CITI YES OTHERS

6 2

Bank

The above graph shows the most preferred bank of customers. Here X-axis represents different banks and Y-axis represents the number of customers preferring different banks. It is visible from the graph that maximum number of respondents i.e. 26 prefer ICICI bank, which is followed by HDFC bank, preferred by 22 respondents. Axis bank is preferred by 12 respondents. The other banks preferred are about 29.

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Priority Account status of Customers

Priority status

25% 45% Hold Aware But Do Not Hold Not aware

30%

The above pie diagram shows the status of customers in context to their awareness about priority account. It is visible that out of total number of respondents observed still 25% are not aware of such priority account services, which shows the potential to tap this segment as there is another 30% people who are aware of priority banking but are not availing such services.

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Rating of the particular factors of priority banking based on their importance to the customers. Where, 5-most important 3-important 1-least important

Waiver of Banking charges

35

33 25 21 15

No. of Customers

30 25 20 15 10 5 0 1 2 3

Ratings

The above graph shows that 33% customers admire this benefit to a good extent.25% customers thinks this benefit to be a normal one. Whereas for 21% (15+6) customers this benefit is not a major one for them.

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Free home Banking

46
50 45 40 35 30 25 20 15 10 5 0 5 4

No. of Customers

26 20

3 Ratings

The above graph shows that nearly half of the respondents thinks this services to be very important, apart from that 26% customers have awarded 4 points to this service. This shows that this is one of the lucrative service of priority banking.

Free OS Cheque collection

39
40 35 30 25 20 15 10 5 0 5 4 3 2 1

No. Of Customers

25 20 12

Ratings
The above graph shows that the most of the respondents have not appreciated this service.As 25% of the respondents thinks this service to be average and another 59% below average.They dont give much importance to it. Only 16% respondents think that this service is important for them.

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ATM withdrawl upto 150000

46
50 45 40 35 30 25 20 15 10 5 0 5 4

number of customers

33

12 1

Series 1

Ratings
The above graph shows that nearly 80% of the respondents have rated this service to be 4 or greater than 4,which shows that this can be one of the lucrative services which can be used to pitch customers for an priority account.

Free Investment management services

35

46 33

31

No. of Customers

30 25 20 15 10 5 0 5 4

11 5

Ratings
The above graph shows that most of the customers have appreciated this service. As 28 customers have awarded a rating of 5, whereas 24 awarded 4,and it is only 16% of the respondents who thinks that this service is not important for them.

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Lifestyle Privileges
34
35

29

No. of customers

30 25 20 15 10 5 0 5 4 3 2 1

17

17

Ratings
The above graph shows that 51% of the respondents thinks this services to be of importance. Another 29% thinks this service to be average .It is only 20% people who doesnt think this service is important.

Dedicated relationship management

40 35

number of customers

30 25 20 15 10 5 0 5 4 Ratings 3 2 1

The above graph shows that 32% of the respondents thinks this service to be of high importance and another 38% feels this service is important. Only 10% thinks this service to be unworthy.
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Free RTGS and NEFT

34
35

29 23

Nuber of customers

30 25 20 15 10 5 0 5

9 5

Ratings
The above graph shows that maximum number of respondents are in favour of this service as 23% have rated it as 5,another 34% have rated it as 4, and 29% think it to be an average service. According to 14% people this is not an additive service and doesnt hold importance to them.

Free Cash deposits

35

31 25 28

no. of customers

30 25 20 15 10 5 0 5

13

Ratings
This graph shows that most of the respondents have appreciated this service of free cash deposit as 53% of them thinks this service is important, another 31% thinks it is an average service whereas, only 13% thinks that the service is not important.
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Global help
30
30 25

24 22 21

No. of Customers

20 15 10 5 0 5 4 3 Ratings 2 1

This graph shows that most of the respondents are evenly distributed in all the four 4 ratings,it is only 3% of the respondents it is of least importance.

Preferential Loan rates

29
30

24

23 20

No. of customers

25 20 15 10 5 0 5 4 3 2

Ratings
This graph shows that the distribution pattern of likings of respondents is similar to that of global help. As only 4% says it to be least important, rest of the ratings have received somewhat equal number of respondents favouring them.
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Priority service
42
45 40

No of customers

35 30 25 20 15 10 5 0 5 4

25 18 12 3

Ratings
This graph shows that most of the respondents thinks this service to be important as 67% people have awarded a rating of 4 or 5.only 3% people thinks this to be relevant and another 12% to be not important

Branch and ATM network

30 25 20 15 10 5 0 Column1 Higly satisfied 14 Satisfied 26 Average 1 Unsatisfied 1 Highly Unsatisfied 3

The above graph shows that out of 45 respondents(priority account holders) 14 i.e 31% are highly satisfied with the branch and ATM branch network of their respective bank, whereas 26 respondents which is 60% of the priority account holders says that they are just satisfied with it. Only 10% of them i.e. 4 people are unsatisfied with it.
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Average Quaterly Balance

7% 8% 29% 50000 100000 150000 56% 200000

This graph shows that 56% respondents says that AQB should be atleast Rs.100000. whereas another 29% think it should be 50000. 7% says that AQB should be Rs.150000 and rest 8% says that it should be Rs.200000.

Customer relationship value

7% 10% 5-10L 10L-15L above 15L

83%

This graph shows that majority of the respondents which is 83% recommends the value of CRV to be between Rs 5L-10L. Only 10% of them feels that CRV should be in between 10L15L.Another 7% people feel that CRV should be more than Rs 15L.
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Free door step Banking

25 20 15 10 5 0 Column1

Highly satisfied 10

Satisfied 24

Average 9

Unsatisfied 1

Highly unsatisfied 1

The above graph shows that whooping 75% of the respondents are either satisfied or highly satisfied by this service being offered to them. Only 2 respondents did not like this service.

ATM withdrawl limit upto 150000

18 16 14 12 10 8 6 4 2 0 Column1 Highly satisfied 16 Satisfied 17 Average 7 Unsatified 4 Highly unsatisfied 1

The above graph shows that 33% ie 75% are either satisfied or highly satisfied with the extended ATM withdrawl limits where as only 12% ie 5 people are not satisfied with this service.

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Waiver of Banking Charges

20 18 16 14 12 10 8 6 4 2 0 Column1

Highly satisfied 7

Satified 9

Average 20

Unsatisfied 7

Highle unsatisfied 2

This graph shows that 37% of the respondents are either satisfied or highly satisfied. Most of them ie 45% says they just got average satisfaction while 9 people ie 20% said they are unhappy with this service.

Dedicated Relationship Manager

18 16 14 12 10 8 6 4 2 0 Column1 Highly satisfied 13 Satisfied 18 Average 10 Unsatisfied 4 Highly Unsatisfied 0

This graph shows that almost all the people are satisfied with it. Wherein 30% are highly satisfied,40% are satisfied and another 22% got average satisfaction. None of the respondents are unhappy with this service.
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Free Investment management Services

20 18 16 14 12 10 8 6 4 2 0 Column1

Highly satisfied 5

Satisfied 19

Average 19

Unsatisfied 2

Highly satisfied 0

This graph shows that most of the respondents are just satisfied with this service as 19 ie 42% are satisfied and another 42% got average satisfaction and only 2 people are not satisfied with this service.

Preferential Loan and Forex Rates

20 18 16 14 12 10 8 6 4 2 0 Column1

Highly satisfied 9

Satisfied 8

Average 20

Unsatisfied 8

Highly Unsatisfied 0

This graph shows that 20% respondents are highly satisfied with this service and receives preferential rates,18% are just satisfied and 44% got average satisfaction and only 18% respondents are not happy with this service.
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Free RTGS and NEFT

18 16 14 12 10 8 6 4 2 0 Column1 Highly satisfied 12 Satisfied 18 Average 11 Unsatisfied 2 Highly Unsatisfied 2

This graph shows that 27% of respondents are highly satisfied,40% are just satisfied and another 25% got average satisfaction. Only 10% of the respondents are not satisfied.

Free Phone and Net Banking

14 12 10 8 6 4 2 0 Column1 Highly satisfied 7 Satisfied 14 Average 14 Unsatisfied 6 Highly Unsatisfied 4

This graph shows that most of the respondents which is 28 i.e. 65% got average or just above average satisfaction. Only 22% are not satisfied with this service. Whereas 16% are highly satisfied with this service

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Lifestyle Privileges
25 20 15 10 5 0 Column1

Highly satisfied 0

Satisfied 9

Average 23

Unsatisfied 9

Highly Unsatisfied 4

This graph shows that most of the customers are not satisfied with this service offered. As only 9 respondents i.e. 20% are just satisfied, and no respondent ids highly satisfied with this service.Moreover,13 respondents i.e. 30% are either unsatisfied or highly unsatisfied. Major 23 people i.e. 50% derieved average satisfaction.

Debit Card Benefit

14 12 10 8 6 4 2 0 Column1 Highly satisfied 4 Satisfied 13 Average 14 Unsatisfied 10 Highly Unsatisfied 4

This graph shows that here most of the customers fall in the range of those who are either just satisfied or derieved average satisfaction.14 people i.e. 30% themselves said that they are unsatisfied with it.
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LIMITATIONS OF THE STUDY:

With the findings of this report, one cannot assume that this research can solve all the problems under the preview of the research title. There are a few limitations and so the results cannot be generalized. Research tends to be fragmentary in its approach as a result of which it becomes difficult to have an overall perspective of the research problem, to be viewed and studied. Samples taken are on random basis and hence it cannot be assured that it will represent the universe accurately. Research is a time consuming job and even though the principles of research are based on a scientific basis, the actual application, analysis and findings are time consuming. As far as the interpretation of result is concerned, there are chances of certain miscalculations or misinterpretations.

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53

CONCLUSIONS AND RECOMMENDATION S

54

CONCLUSION:
The purpose of this study was to know scope of priority banking by interpreting the customer response in terms of their satisfaction level derived for those who are already availing priority banking services and also knowing the perception of those banking customers who are availing the routine banking and channel facilities but not the priority services. Even though the research was undertaken for a period of 1 month, several findings would be highlighted from the survey which was done with 100 respondents. One biggest challenge that various banks are facing today is competition which is very intense because almost all the banks even including the nationalized banks are offering the priority banking services. All of them are focusing on the same market in their own way. So they all need to provide their services in a way that most of the customers are not only satisfied rather they feel delighted One thing that can be traced out from the study is that private banks in this priority sector can be categorized into two parts: on one side are those who are asking for customer relationship value of 5 lakhs or less like Axis bank, HDFC, ICICI bank, on the other side are HSBC,Standard Charted, Citi bank whose customer relationship value is in the range of 20-30 lakhs. The number of services offered in prioirity banking are numerous. However the study shows that customers are attracted only towards few services. They are: Free door step banking Dedicated relationship manager Rendering services on priority ATM withdrawal limit up to 1,50,000

There are few services in priority banking which people do not attach much importance to. These services are: Free outstation cheque collection Free phone and net banking Global help

Axis bank and HDFC bank-are the two banks which are giving an additional benefit in terms of free insurance cover to their priority customers.Axis bank is providing a high cover of 5 lacs whereas HDFC is providing a cover of just 1 lac. HSBC bank and Citi bank are two banks
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whose focus on global help is maximum and seeems dedicated in providing assistance to their customers while they are on a foreign tour. The banking services are mostly used by businessmen and channel facilities are mostly used by people in services.

RECOMMENDATIONS:
Once the results are interpreted from the better informed perspective of the company officials, these recommendations can be used as a starting point for improvement. Thoughtful consideration is required for some of the recommendations: Increasing the ATM withdrawal limit from the present 50,000 to 1,50,000.

The approach of providing free door step banking should be made flexible as like other multinational banks rather than specific on once a day or twice a week. One of the USPs of priority banking is dedicated relationship manager, so it should focus its emphasis on handling it properly. As per the study, 25% of the respondents are still not aware of the priority banking services,so the company can put some more emphasis on advertising and promoting its priority banking services in order to increase the customer base.

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BIBLIOGRAPHY

57

BIBLIOGRAPHY:
References:
Philip Kotler marketing management Naresh K. Malhotra, marketing research 2008

Websites:
http://www.axisbank.com/media-center/mediacenter.aspx http://en.wikipedia.org/wiki/Axis_Bank http://economictimes.indiatimes.com/axis-bank-ltd/infocompanyhistory/companyid9175.cms http://www.google.com/finance?cid=678059 http://www.moneycontrol.com/india/stockpricequote/banksprivatesector/axisbank/AB16 Plus other web sources

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Annexure

59

QUESTIONNAIRE
I am a student of MAIMS conducting this research for academic purpose and I request you to spare out sometime to fill this questionnaire as your views are very important to us.

1. Which of these banks do you have your account with? ICICI BANK HDFC BANK HSBC BANK AXIS BANK CITI BANK YES BANK

2. Please tick accordingly: a) You are aware of priority account b) You are not aware of priority account c) You hold priority/special account If answer to Q2 is option- a or b then move to Q5.

3. Please rate the following services of the bank, you hold your account with:FACTORS Highly Satisfactory Average Unsatisfactory Highly satisfactory unsatisfactory

Branch+ ATM network Free door step banking High ATM withdrawl upto 1,00,000 Waiver of charges(DD, outstation
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cheque collection) Dedicated relationship manager Free investment management services Preferential loan+ forex rates Free RTGS/NEFT Free phone net banking Lifestyle priviledges

4. how much balance requirement is appropriate to avail special banking services? In savings account: 50000- 1,00,000 1,00,000- 1,50,000 1,50,000- 2,00,000 Customer relationship value: 5-10lakhs 10-15 lakhs Above 15 lakhs

5. Please rate the following factors based on their importance to you: Where, 5-most important 3-important 1-least important S.no 1 Attribute Waiver of demand draft
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2 3

8 9

10 11 12

charges Free home banking Free outstation cheque collection ATM withdrawl limit upto 1,50,000 Investment management services Dedicated priority helpline number Dedicated relationship management Free RTGS/NEFT Free intra/intercity deposit Global help Preferential loan rates Rendering services on priority

6. Any suggestions to improve banking services: 7. Please fill the following information: Profession: Gender:

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