AXIS BANK

2010
Assignment on Business
Policy and Strategic
Management

ANJU LOPEZ
T I S T , E R N A K U L A M
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AXIS BANK
Company Background
Axis Bank Ltd was incorporated in the year 1993 as UTI Bank Ltd which
provided corporate and retail banking products and was the first 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.
A Successful makeover as AXIS BANK
In 2007 the bank decided to have an identity of its own distinct from its parent
UTI-I. Thus was born a brand Axis - a word which connotes solidity and gives a feel of
transcending geographical boundaries. The Bank successfully rebranded itself as Axis
Bank in July 07 which has helped it in shedding the faint perception of being a
Government owned entity. This brand makeover was very well executed, thus ensuring
No slippages in the banks growth trajectory which was evident from the 67% growth in
its customer accounts to 9.9 mn during FY08 as against 5.93 mn during FY07.
The Bank today is capitalized to the extent of Rs. 403.63 crores with the public
holding (other than promoters and GDRs) at 53.72%.
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 896 branches and Extension
Counters (as on 31st December 2009). The Bank has a network of over 4055 ATMs (as
on 31st December 2009) 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. Axis
Bank currently has global footprints in four countries by way of 3 branches in Singapore,
Hong Kong, Dubai and 2 representative offices in Shanghai and Dubai. It has also sought
permission from the Sri Lankan Government to open a branch in Sri Lanka in the current
fiscal. In these locations it offers corporate credit and trade finance solutions, debt
syndication and wealth management services to NRI population settled in these cities.
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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 24.09%
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 currently 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.







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VISION, MISSION AND VALUES
Vision
To be the preferred brand for total financial banking solAXISons for both
corporate and individuals

Mission
o Customer Service and Product Innovation tuned to diverse needs of
individual and corporate clientele.
o Continuous technology upgradation while maintaining human values.
o Progressive globalization and achieving international standards.
o Efficiency and effectiveness built on ethical practices.

Values
o 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
o Maximization of Stakeholder value
o Success through Teamwork, Integrity and People

Vision 2015 and Core Values
VISION 2015:
o To be the preferred financial solutions provider excelling in customer
delivery through insight, empowered employees and smart use of
technology
CORE VALUES
o Customer Centricity
o Ethics
o Transparency
o Teamwork
o Ownership




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ORGANISATION STRUCTURE

o








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SERVICES

Retail banking

Deposit schemes
Loans and advances
- Personal Loans
- Housing Loans
- Cards
- Consumer durables
- Auto Loans

Personal banking

Accounts
- Terms deposits
- Fixed deposits
- Recurring deposits
Cards
- Different variants like: Gold plus cards, silver and silver plus cards

Corporate banking

Accounts
- Normal current a/c
- Trust/NGO savings a/c
Services
- Private equity, mergers and acquisitions
- Advisory services
- Capital market funding
- E- broking
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SWOT ANALYSIS OF AXIS BANK


Strength
Support of various promoters.
High level of services.
Knowledge of Indian market.

Weakness
Market capitalization is very low.
Not having good image.
Not been able to position itself correctly.

Opportunities
Growing Indian bank sectors.
People are becoming more service oriented.
Opportunities to be explored in global market.

Threats
Threat from various competitors.
Foreign banks
Govt. banks, e.g. SBI, PNB etc
Private sector competitors like HDFC, ICICI
Future market trends.
Advent of MNC banks.


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STRATEGIES FOLLOWED BY AXIS BANK

Segmentation Strategy

The market segmentation strategy can give a firm a commercial
competitive advantage. Axis bank considers the customer as the base for
segmentation. This strategy crosses over traditional boundaries set within the
company. It takes into account important issues such as market demographic and
Psychographic Variables of niche markets currently being served or targeted.

Demographic Variables
Demographic segmentation variables are amongst the most popular bases for
segmenting customer groups.
o Location
Metros
o Occupation
Business persons
Salaried class(both govt and private)
Working woman
o Age
Senior citizens
Minors

Psychographic Variables

o Lifestyle
The people who believes in modern banking i.e. internet banking
(icontact, mobile recharge, e-payment, travel currency card etc.)
o Social class
Many Marketers believe that a consumers "perceived" social class
influences their preferences for products & services.



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Targeting strategy

The targeting strategy involves segmenting the market, choosing which
segments of the market are appropriate, and determining the products that will be
offered in each segment.

Target market

A 'target market or target Audience is the market segment which a particular
product is marketed to. Market Targeting is the process in which intended actual
markets are defined, analyzed and evaluated just before the final decision to enter
is made.

o Corporate banking market: this market target the industries
o Capital market: this segmented is targeted on the long term needs of the
individual as well as of industries
o Retail banking market: this segment is for the retail investor and provide
them short term financial credit for their personal, household needs

Selective specialization strategy

o This is a multiple-segment strategy, also known as a differentiated strategy.
o Different marketing mixes are offered to different segments. The product
itself may or may not be different - in many cases only the promotional
message or distribution channels vary.
o I.e. the bank selects a number of segments, each objectively attractive and
appropriate. There may be little or low synergy among the segment but
each segment proves to be worth full of it.
o For example, axis bank have different set of credit cards, each targeted at
different set of people i.e. segment and each one has its own importance in
bank.



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Positioning Strategy

Positioning has come to mean the process by which marketers try to create
an image or identity in the minds of their target market for its product, brand,
or organization.

Axis bank has positioned itself as a bank which gives higher standard of
services through product innovation for diverse need of individual and
corporate clients.
Axis banks are positioned as the technically advanced
They highlight following points in their positioning statement:
o Customer centric.
o Service oriented.
o Product innovation.

These are the main strategies followed by axis bank so as to achieve competitive
advantage over others.