The Commercial Banking Services Of Axis Bank Finance Essay

The Commercial Banking Services Of Axis Bank Finance Essay

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Axis bank has commercial banking services which comprises of infrastructure finance, merchant banking, advisory trusteeship, direct finance, treasury, venture capital ship and many other associated financial services. From the time of its establishment it has been steadily increased its branches in many places. Axis bank has group of 827 branches, extension counter and 3,595 automated teller machines (ATMs) as on 31st March 2009.

Axis bank was the first private bank to have commenced its operation in the year 1994 when the Indian government is welcoming all the private banks in the sector of banking. As its operation was started in the year 1994, it was built-in the year 1993 and was formerly known as UTI Bank. Axis bank was endorsed jointly by the mangers of the particular enterprise of the Life Insurance Corporation of Indian (LIC), General Insurance Corporation Ltd and Unit Trust of India and its four subsidiaries such as namely the New India Assurance Company, United Insurance Company Ltd, National Insurance Company Lts and Oriental Insurance Corporation. The name of the UTI has changed for the reason of terms and condition are not satisfied by the authority of bank over definite provisions as well as the on the name of the UTI AMC it was fee charged. In keeping mind about the Indian and international business markets it decided to change its name and from 30th July 2007 onwards UTI bank was named as AXIS bank (IloveInida.com, 2010).

Today the Axis bank is capitalized with the amount of Rs. 359.76 crore and also with the 57.79% of public holding excluding the promoters. It has extended it business in the bank sector with 853 branches and extension counters. With 3723 automated teller machines (ATMs) and providing the 24 hours of customer service. The ATM Network of this bank is one of the largest in the country. The bank register office is located at Ahmadabad and central office is located at Mumbai (IndianBanksGuide.com, 2008).

In this year the bank has approximately 950 branches and 4,055 automated teller machines mainly in urban and metro areas.

Axis bank is a private sector its operations are in various segments like retail banking, treasury, personal banking and also banking services in other forms. The treasury segment services contain some of the venture in independent and corporate debts, operation in trading, mutual funds, foreign exchange and many more. In order to provide funding process essential the section is mostly based on the customer and various agencies ventures. The facilities of the whole sale banking comprises some of the facilities such as relationship of corporate, project appraisals, capital market related facilities, facilities of advisory for corporate, syndication and placement services of management in cash and also administration of public problem. The facilities of the retail banking are expected to be given by the axis bank to every individual customer of their bank in the form of debit and credit cards, facilities of automated teller machines (ATMs), Non-Resident Indian (NRI) accounts, facilities of internet banking and also depository and advisory of financial services. The bank has provided their facilities by expand and pioneering procedure to their customer to make their organisation top in the business market. The main strategy in marketing of the bank is based on the centric of client, facilities of product pioneering and last to offer faculties and high defined facilities to their customers.

The bank net profit has been increasing steadily year by year by an increment of Rs 330.14crore by 89% in the year 2008 first quarter, which has helped by interest income and based income. Its income on interest is rising year by year by steady raise of 93% which has been determined by increment which is strong in the proceeds virtually up to 47% which even go ahead to rise of growth in loan which has even crossed the organisation average and touched the figure 25. 9%. Axis bank has intended to raise the income of fee powerfully it is likely to be 80% during first quarter of 2008. In the year 2008 the last quarter the raise in both debit and credit in industry of banking has been hugely grown from 25.9% and 20.6% correspondingly. The same situation has happened also in the central bank which has raised the reserve ratio of money and also there is a rise in the first quarter of 2008 up to 75bps. And also for some reason such as inflation rates and downturn and demand deposit decrement in the 2009 year relatively with 2008 has showed impact even on some banks which also includes the Axis bank. Even though the firm has got the steady rise in interest of income in the earlier quarters, there was trim down in the net margin in the rates of interest from 3.93 to 3.5 (Business Line, 2008).

History of Axis Bank:

In the year 1993 the company was built -in on December 3rd and business was certificated on December 14th. In all depiction this bank carries outs all the business in banking sector. This bank was endorsed by General Insurance Corporation of India, Unit Trust of India, and Life Insurance of India along with its four contributors. Under the guidelines of Reserve Bank of India (RBI) Axis bank is the foremost private sector to get license.

In the year 1997 bank has got the license to work as Participant of Depository with NSDL. To work as a Trustee to Debenture Owners the bank as applied for registration with SEBI. The contribution from UTI was RS.100crores, 7.5crores from Life Insurance of India, 1.5crores from its four contributors each and General Insurance Corporation of India (Source2Update.com, 2009)

In the year 1998 as on July 31st the bank has 28 branches in urban and metro areas. This bank branches are very well computerised and through VSAT they have been networking. And it has got 27branches of automated teller machines (ATMs) services. UTI Bank has came out with the public issue of 1,50,00,000 is of RS 10 for No. of share of equity each and by the payment of Rs 11 per share it is collecting 31.50crores and it offer sale of 2,00,00,000 no. of share of equity for a cash at a rate of 21Rs per share. The employees of UTI bank as got privileges out of the 2, 20,000 shares were reserved for allotting them. And the remaining share of 3, 47, 80, 000 are allotted to the public. ATM cards are offered by this organisation, by using this ATM cards the owner of the account can take out cash from any bank ATM centre anywhere in the country as they are interrelated by VSAT. The bank has started a new product of retail with effective elasticity for its customers. For entering into credit card business which highly promising the bank will sign on an agreement of co-brand with leader, Citibank NA, market, leader. This bank has been endorsed by establisher's of mutual fund in India is Unit Trust of India along with General Insurance Company, Life Insurance Company with their four contributors (Putercalls, 2009).

In the year 1999 both the UTI Bank and Citibank have started a credit card is of co-branded internationally. These two banks have combined to internationally start a co-branded credit card in the umbrella of MasterCard.

In the year 2000 the bank as declared to its depository clients to commence the services of Tele-Depository. The bank has started a product of internet banking with 'I connect'. In order to operate the e-broking on site infinity.com economic securities ltd, UTI bank has signed on considerate communication with equitymaster.com. The foremost organisation to operate service of trading on online is Geojit securities ltd has signed a MoU with this bank to facilitate depositor to trade Demat stocks through their company website.

In the year 2001 the bank has started a placement for confidential of non-convertible debentures to grow up to 75crores. With the launch of one extension counter with an automated teller machine and two new offsite ATMs in the Karnataka state at Mangalore. UTI bank has raised the number of ATMs to 355 across the country (Putercalls, 2009).

In the year 2005 UTI bank for general insurance trading through its network of branch it as got into the joint venture with Bajaj Allianz General. In state of Karnataka at Mangalore UTI bank has launched its first ever satellite retail assets centre (SRACs).

In the year 2006 UBL has started a new branch in Jaipur. The UTI Bank discloses the precedence of banking lounge.

In the year 2007 the ranking of bank national enduring upgraded from AAA to AA+ which was informed on 14th December of that year in rating of Fitch by Axis bank ltd. Apart from that for the post of additional director on the board it has appointed K N Prithviraj at bank of directors (Source2Update.com, 2009)

In the year 2010 on 15th January Axis bank has informed that decisions would be taken at the meeting of board of directors. The following are decisions taken by bank.

Dr. Adarsh Kishore was appointed by the approval of Reserve bank of India as Non- Executive chairman for this bank.

M. S. Sundara Rajan as Additional Director of Independent has been appointed immediately (Moneycontrol.com, 2010).

Internet Banking of Axis Bank :

The internet banking of Axis bank from locations of remote areas has been conducting in the very sophisticated way to meet the need of their customers in that locality. In order to access the facility of the internet banking of this bank the customer should have a user ID and password so that network access will be very well secured. 'I connect' is the name for internet banking of Axis bank (MapofIndia.com, 2010).

With the 'I Connect' service the entire bank operation will be available to the customer with one mere click of the mouse. And now the customer can check their status of the account in the axis bank, make transaction through online, payment of bills, IRCTC online booking and also has service to submit their queries to the bank (India Housing, 2009)

Features of Net Banking

The facilities of 'I Connect' can be used for the fundamental operations which are as follows:

The operation for a depository accounts are that can check the status of the holding statement and display of instruction and also the statements for the transactions made by the depositor. Apart from this the customer can enquiry about their balances when they connected with the internet. The customer can enquiry about the balance of saving accounts, loan account, current bank account and deposits of term.

The bank also provides the customer to make online queries such as viewing their personal account through online; by the restriction provided to the client they can view the transaction of accounts, and also view the summary of the transaction of last six in a particular account quickly.

The bank has provided a facility of fund transfer. With facility of fund transfer of 'I connect' facilitate the client to book the railways tickets online, make the service payment bills (MapofIndia.com, 2010).

Operating Procedure of Activating Net Banking:

In Axis bank when the customer opens an account in saving account or current account irrespective of both the bank provides them services of net banking. Thus the customer need not register and fill the form for net banking separately in the Axis bank with this time of the customer will be saved.

The bank provides the customer a separate manuscript in which it contains the ID of the customer for the functioning of banking on net. Axis bank mails a preserved envelope in accumulation to the above, within which a semi-grey coloured envelope will be found to the customers. The envelope would contain hole on both the ends of right and left side. It contains with a heading Axis 'I Connect' password of net banking.

Net Banking Benefits

With 'I Connect' net banking in Axis bank the customer can do all possible kinds of transactions. There are some kinds of transaction which are more important is list below.