Retail Banking of Axis Bank

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Retail Banking
Of
Axis Bank
(Summer Internship Report)
From 3rd June to 24th July

ACKNOWLEDGEMENT

I express my deep gratitude to AXIS Bank division, Kanpur for giving me this opportunity to do summer internship. I acknowledge the give and take relationship wherein I could work diligently on the project assigned to me and contribute to the organization with my efforts and get essential credit to my profile before I enter the corporate world. I thank my project trainer “MR. ASHUTOSH VERMA” for giving me the opportunity to work on a project that holds strategies importance to the organization. Subsequently, I want to thank my faculty teacher MR. ANOOP SINGH SIR for generating confidence in me and providing some construction providing some constructive suggestion which benefitted in me and a lot. I am grateful to them for their indispensible and sensible guidance through the project.

AKANSHA TEWARI

EXECUTIVE SUMMARY

The financial year 2007-08 will be remembered as a year of transformation in the history of the Bank, when the name of the Bank changed to Axis Bank from UTI Bank. The conviction that it was worthwhile to invest in building a brand that would solely be our own helped to create a distinct identity. The name Axis Bank connotes solidity and transcends geographical boundaries as we seek to become a multinational bank. The Bank was successful in establishing a new identity in the market in a short span of time.

The Bank once again met with considerable success over the past year and achieved all its key objectives. This encouraging performance not only underscored the sustainability of the Bank's high tempo of growth, but also helped to move closer to its objective of being one of the more customer-focused banks in the country. This is reflected in the robust growth in both business and revenue during 2007-08 and in various financial parameters.

During 2007-08, the Bank's business and earnings continued to show high growth, indicative of a clear strategic focus, the communication of corporate priorities to branches across the country, and finally the execution of these goals through intensive efforts. The Bank reported a net profit of Rs. 1,071.03 crores during the year ended 31st March 2008, up 62.52%, from Rs. 659.03 crores in the previous year. Diluted earnings per share (EPS) were Rs. 31.31 per share, up 37.38% from Rs. 22.79 per share a year earlier. Return on Equity (ROE) was 16.09% compared to 21.84% a year earlier. The decline in ROE was primarily on account of the raising of fresh equity capital during the financial year. Return on Average Assets was 1.24%, compared to 1.10% in the previous year.

In 2007-08, the Bank achieved a total income of Rs. 8,800.80 crores, up 60.84% from 2006-07. During this period, operating revenue was Rs. 4,380.84 crores, up 76.76% from the previous year, while operating profit was up by 76.12% to reach Rs. 2,225.92 crores. The strong growth in income was largely driven by a strong increase in both net interest income by 76.07% to Rs. 2,585.35 crores, and fee and other income by 77.75% to Rs. 1,795.49 crores. The strong income growth reflects the solid business growth across all banking segments and the successful execution of growth initiatives. The strong growth in incomes was partly offset by an increase in operating expenses, including depreciation, by 77.42% to Rs. 2,154.92 crores. The increase in operating expenses primarily reflects the higher costs incurred as a result of increased business levels that include additional sales and service personnel and higher variable compensation. Additional expenses incurred to support the growth initiatives of the Bank (including network expansion as well as the re-branding exercise) also contributed to the increase in operating expenses. As a...
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