Comparative Analysis of Products and Services of Axis Bank

Axis Bank Ltd., the first bank to begin operations as a new private bank in 1994 after, Government of India allowed new private banks to be established. Axis Bank was jointly promoted by the Administrator of the specified undertaking of the: Unit Trust of India (UTI), Life Insurance Corporation of India (LIC) and General Insurance Corporation Ltd. Additionally, with associates National Insurance Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United Insurance Company Ltd.

Axis Bank is the third biggest private part bank in India. The bank offers the entire range of money related administrations to client portions covering Large and Mid-Corporates, MSME, Agriculture and Retail Businesses. The Bank has a substantial impression of 3703 branches and 13,814 ATMs spread over the province as on 12 Aug 2016 which is the biggest ATM organize in nation among Private Sector Banks in India. The abroad tasks of the bank are spread over its seven worldwide workplaces with branches at Singapore, Hong Kong, DIFC (Dubai International Financial Centre), Colombo and Shanghai and delegate workplaces at Dubai and Abu Dhār.

With an accounting report size of 6,91,330/ - Cr. as on 31st March 2018, Axis Bank has accomplished steady development and stable resource quality with a 5-year CAGR (2012-13 to 2017-18) of 15% in Total Assets, 12% in Total Deposits, 17% in Total Advances.

The most recent contributions of the bank alongside Dollar variant are the Euro and Pound Sterling variations of the international travel currency card (TCDC Card). The travel currency card is a mark based prepaid travel card which empowers the traveler’s global access to their money in neighborhood cash of the meeting province in a sheltered and helpful way. The bank has qualities in both retail and corporate managing an account and is focused on embracing the best business rehearses internationally in request to accomplish perfection.

This research is titled as ‘Comparative Analysis of Products and Services of Axis Bank’. It involves a deeper study into the various services rendered and the products offered by the bank and doing an analytical study thereafter on the basis of the customers visiting the branch.

This study involves preparation of a questionnaire consisting a formal set of questions to be asked from the customers/consumers visiting the bank branch, with regards to the ease of banking and the features of products and services held and used by them. The prime purpose of this research is to do a comparative analysis of Axis Bank with its other competitors in the private sector market in terms of customer preference and overall performance.

The technique of ‘Random Sampling’ has been put to use in this research and a total of 100 respondents have been questioned to assess the bank on various important and crucial parameters that measure its operational efficiency.

A proper literature review has also been done of the existing work done in the same field in order to understand the concepts more precisely and give the research a better direction and to assist in formulating certain hypothesis. The crux of the following researches has been studied and put to use in the study above, these researches are highly sophisticated and revered by.

The following is the list of studies with their crux:

1. Uppal R K and Poonam Rani (2012), in their study titled Customer Perception towards Better Banking Services in India- An Empirical Study, analyzed customer perception about CRM, reliability, accuracy, security and transparency among the customers of public sector banks, Indian private sector banks and foreign banks in Amritsar, Punjab. They have found that most of the customers are satisfied with banking services and that customer satisfaction can be improved by ensuring more speed in rendering transactions and giving prompt services.

2. D Mishra (1997) makes a study on the performance of commercial banks in India choosing relevant parameters like quality of service, risk management, profitability etc. His conclusion is that the banks should try to increase quality, balance risk management, and optimize profitability to survive and succeed. He identifies four challenges for the bank namely competition, credit, customer and control.

3. Gaganjot Singh (1998) in his study ‘New innovations in banking industry – a study of new private sector banks’ views that the new private sector banks in India are using better technology and are offering better services to the customers. The new private banks have emerged as a model to the banking industry in terms of service levels, ambience, technology etc. As the public-sector banks have already established a huge customer base, they become complacent and are slow to become customer friendly. They are also less innovative in the use of technology-assisted customer service. Because of their huge customer base, they feel that they can withstand competitions from new generation banks.

4. Parimal Vyas (2000) studied customers’ satisfaction from the services provided by different banks and analyzed the response of customers towards the actual time taken by banks to complete the banking transactions. The findings of the study revealed that nationalized banks and co-operative banks need to improve on reducing the time taken to complete banking transactions. Comparatively the private and foreign banks take much less time for completing their transactions. The study suggested that the nationalized commercial banks and cooperative banks must increase the use of information technology and customer relationship management to deliver standardized services to their target customers.

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5. Mosad Zineldin (2005) in his study ‘Quality and Customer Relationship Management as Competitive Strategy in the Swedish Banking Industry’ stated that a bank had to create customer relationships that deliver value beyond that provided by the core product. This involved added tangible and intangible elements to the core products, thus creating and enhancing the ‘product surrounding’. One necessary condition for the realization of quality was the creation of value-added services, quality measurement and control. Thus, it was an important function to ensure the fulfilment of given customer requirements. The key ways for building a strong competitive position were value-added services and differentiation.

Research Methodology

• Type: Descriptive.
• Method: Questionnaire (Formal).
• Locale of the Study: Axis Bank Limited, Phagwara.
• Sampling Design. The technique of ‘Random Sampling’ has been resorted to, to perform the study. A total of 100 respondents were taken to form a sample for fulfilling the purpose. Random sampling technique was chosen to cover all types of customers of the bank and giving each type an equal opportunity to be a part of the sample.
• Data Collection. A proper literature review has been done to perform the task of data collection. Both the sources, namely primary and secondary data sources have been used to collect data. The data focuses on collecting both the qualitative and quantitative aspects regarding the customer satisfaction. A proper questionnaire with formal set of questions was framed to collect the data from the customers visiting the branch.
• Statistical Framework. In regards to the statistical framework, the following tools and techniques have been used to collect study and present the data. The concept of ‘Percentage’ has been used to differentiate amongst the categories of the customers. The interpretation of the data has been done for both the aspects, namely qualitative and quantitative. The data set has been presented through effective ‘Pie Charts’ to enable easy and quick understanding. The result of the study has been presented effectively in the form of a ‘Two Way Table’.

Findings and Interpretations

The majority (39%) people have savings account in axis bank. While, 23% have current account and FD & other accounts are respectively 28% and 10%. Thus, we can say that most of customers prefer savings account in Axis Bank.

Majority of the customers give 'good' criteria lesser give 'very good'. It shows service quality of axis bank to its customers.

Many customers have other products other than saving/salary account such like, locker, investment, OD, CC, loan, credit card, etc.

Majority customers are accessing their accounts through walk-in to branch less number of customers are using other channel like, mobile banking, net banking, phone banking. Which describes lack of awareness about technology in banking service.

Review of customers on ease of access: the first number is bagged by HDFC and the second one is ICICI and the last is Axis Bank.

In the criteria of flexibility HDFC is best and ICICI is second and last is Axis Bank.

Axis bank is giving better service regarding transactions as compared to HDFC and ICICI.

From the research we can see that axis bank should improve technology for using banking operations and products.

Majority customers rated the axis bank in 'good' criteria and less in 'poor'. Which shows that axis bank is giving proper products and services to customers.

24% respondents said that they expect less formalities while opening account. While 22% respondents said that they expect proper information, other respondent expect quick access, variety of products and working hours of banking.

So, the bank has good relationship with customers. The customers are satisfied with the relationship manager service provided by the bank. The bank and its customers have a long-term relationship. Axis Bank has the tendency to retain its customers at any cost. The number of customers using the Net Banking and Mobile Banking service forms a very low percentage of the total customers. The accounts of these three banks don’t have much difference in terms of features but when it comes to number of branches and ATM’s, HDFC Bank is ahead of Axis Bank. The customers of Axis Bank are satisfied with their savings and salary accounts.

Conclusion

Much is changing in the banking landscape — with regulation, technology, demographics, customer expectations, greater competition and issues with banks’ own legacy business and operating kneels. The challenges are clear, even if the karate endgame is not. The contemplate primarily was on the client introduction that how they think, what they need from their banks and how they take choice heading off to any bank. In this examination I found that the obligation of Axis Bank with its clients is great, since Axis Bank essentially centres on holding their clients. This study finds that anyway Axis Bank isn't the main restricted area bank, however its huge scope of items and accessibility of choices improve it one of the banks in India. The bank should give careful consideration on giving updates and should expand the level of administration, because the contenders of Axis are better and growing rapidly. The bank should attempt to expand the utilization of innovative methods like versatile and net managing an account among its clients, the customers should be made familiar with newer and easier ways of banking. The bank should keep up with its thought of serving the customers at priority, this is so because it gives the feeling of belongingness to the customer and gives an edge to the organization over the other players in private banking industry.

Recommendations

AXIS Bank was one of the first private banks to launch operations in the country in 1994, after the Government of India passed a resolution in favor of privatization. An IT savvy bank, AXIS Bank is a pioneer in adopting modern technologies in the banking sector. It a very large network of branch offices and extension counters across the country. AXIS Bank needs to promote and encourage people to use internet banking. In terms of ease of access AXIS Bank needs to increase the number of ATM’s. The bank should be more flexible to compete with its competitors like HDFC, ICICI. The bank should focus on attracting and attaining both the business class and other segments, by offering wide range of products and services tailored for matching their specific requirements because, these two classes are significant for keeping the money flow in check and maintain the money administration.