AXIS BANK Assignment Strategic Management

AXIS BANK
About the company
The bank wanted to positioned itself as a independent bank and to eradicate

confusion. The bank was allowed to use the ‘UTI’ brand name for free till
January 31, 2008, beyond which it had to pay royalty for using the name. The
name UTI bank was changed to AXIS Bank as UTI gave a look of government
sector bank.
MISSION
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 Centricity
 Ethics
 Transparency
 Teamwork
 Ownership
Vision
To be the preferred financial services provider excelling in customer service

delivery through insight, empowered employees and smart use of technology.
Objectives
 The objectives of HDFC Bank cover a wide variety of topics. They focus
on optimizing returns for shareholders, providing innovative products for
their customers, and committing themselves to a high level of ethics
Business strategy emphasizes the following :
 Increase the market share in India’s expanding banking and financial

services industry by following a disciplined growth strategy focusing on
quality and not on quantity and delivering high quality customer service.
 Leverage the technology platform and open scalable systems to deliver

more products to more customers and to control operating costs.
 Maintain the current high standards for asset quality through disciplined
credit.
BCG MATRIX
AXIS bank’s products can be mapped to the BCG matrix as shown below
Relative Market Share
High Low
STAR ?
High
AXIS Prudence AXIS Focuses Equity Fund
AXIS Equity
Market Growth Rate
Low CASH COW DOG
AXISTop 200IS AXIS Index Fund – Sensex Plan
AXIS Balanced
EXTERNAL ANALYSIS- OPPURTUNITIES AND THREATS
OPPURTUNITIES
1. The rural market is also a major market for Axis Bank.
2. Acquisitions for filling the void. Various future prospects in financial

markets, such as mutual funds, maybe exploited in the Bond Market.
3. The internet banking network can be supported.
4. UPI payments and mobile wallets can be promoted.
5. The number of e-transactions rose from 0.7 million to about 2 million.

Geographical extension to the rural market – 80% of them do not have
access to structured lending. 46 percent of them use informal lending
platforms. The bank should target the rising demand for business loans
and vehicle loans. 24 percent of unregulated money lenders.
6. Since it’s a new era of banking, there are a lot of opportunities to provide
innovative banking solutions techniques compared to established major
players.
7. The Assets of Axis Bank are rising at a much faster growth rate of 9%.
8. AXIS Bank ‘s definition of ATM had a strong response in terms of

attracting new customers to the personal banking market.
THREATS
1. RBI control of interest rates.
2. Regulation of the State on the basis of pandemic circumstances.

3. Foreign Investments in Banking Sector.
4. Government schemes are most frequently run only by SBI, Indian Banks,
Punjab National Bank, etc.
5. ICICI and HDFC are placing their aggressive marketing campaigns at

significant risk in terms of their growth in the consumer base.
6. New banking license issued by Reserve Bank Of India.
STRATEGY OF AXIS BANK
It look a good mix of some common sense, some keen observation of the world
around and some analytics led number crunching, to crack the code. The
marketing team thus managed to identify the space, as yet, largely unoccupied
by any of the bank cards in a wholesome manner, and one that binds a large
part of this countrymovies.
The process of brand-change started around 2007 when the UTI changed it’s
name to axis bank-largely necessitated, owing to the fact that it had permission
to use the UTI name only till early 2008. It provided a blessing in disguise and
in a way, led to the birth of the fledgling Axis bank.
Competitive Strategy
For the private sector banks:
1. Differentiation on the basis of area coverage.

2. Restricted Reach.
3. Level of service is the same.
4. Axis got advantage because of Product Innovation.
7 P’s OF MARKETING OF AXIS BANK Product Mix:
• Deposits
• Investments
• Anywhere banking
• Loans
• Cards
• Mobile banking
• NRI services
INTERNALS
STRENGTHS
1. Axis Bank was ranked is the fastest growing Bank in the Private Sector.
Financial Express and KPMG have rated Axis Bank as the best bank on
the basis of 26 parameters.
2. Axis Bank has 4800 regional branches and 17801 ATMs.

3. Banks ‘ financial positions are rising at a rate of 20% last year, which is
a big positive sign for every country.
4. Operating sales of 2.7 billion US dollars in 2019.
5. Total assets of US$ 110 billion in 2019.
6. Gross Profit Rs. 1677.90 Crores.
7. Axis Bank has a strong picture of the urban population. Axis Bank is
rising well in the Indian banking sector.
8. Broad array products and services are provided by the Bank.

9. Decent penetration in rural areas has boosted the industry.
10.One of India’s largest private-sector funding for agricultural loans is

Retail Agri & Corporate Agri.
11.Great online services provided by Axis Bank, such as net banking,

smartphone phones, etc.
12.Effective ads and branding have helped the brand to expand.

WEAKNESS
1. Gaps – primarily focused on corporate banking, wholesale banking,

treasury services, retail banking.
2. Global branches account for just 8 % of the total assets. The bank has
recently begun to concentrate its attention on personal banking and rural
areas.
3. AXIS bank’s share prices are continually fluctuating at higher margins,
leaving investors in an awkward position most of the time.
4. There are a lot of efficiency differences in the financial product as well
as reaching out to the consumer.
5. There are many fraudulent activities involving credit cards, as banks
process the acceptance of credit cards even without the verification of
the original documents.
6. Their financial advisors are not smart enough to direct consumers into
the right investment.
7. Customer support needs to change a lot in order to contend with other
big players.
Impact of Covid-19 on the performance of the Bank

The Indian economy would be impacted by Covid-19 pandemic with
contraction in industrial and services output across small and large businesses.
The Bank’s business is expected to be impacted by lower lending opportunities
and revenues in the short to medium term. The impact of the Covid-19
pandemic on Bank’s results, including credit quality and provisions, remains
uncertain and dependent on the spread of Covid-19, further steps taken by the
government and the central bank to mitigate the economic impact, steps taken
by the Bank and the time it takes for economic activities to resume at normal
levels. The Bank’s capital and liquidity position is strong and would continue
to be the focus area for the Bank during this period.

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AXIS BANK

About the company

The bank wanted to positioned itself as a independent bank and to eradicate

Customer Service and Product Innovation tuned to diverse needs of individual

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

To be the preferred financial services provider excelling in customer service

 Increase the market share in India’s expanding banking and financial

 Leverage the technology platform and open scalable systems to deliver

Relative Market Share

Market Growth Rate

Low CASH COW DOG

AXISTop 200IS AXIS Index Fund – Sensex Plan

1. The rural market is also a major market for Axis Bank.

2. Acquisitions for filling the void. Various future prospects in financial

3. The internet banking network can be supported.

4. UPI payments and mobile wallets can be promoted.

5. The number of e-transactions rose from 0.7 million to about 2 million.

8. AXIS Bank ‘s definition of ATM had a strong response in terms of

1. RBI control of interest rates.

2. Regulation of the State on the basis of pandemic circumstances.

5. ICICI and HDFC are placing their aggressive marketing campaigns at

6. New banking license issued by Reserve Bank Of India.

STRATEGY OF AXIS BANK

For the private sector banks:

1. Differentiation on the basis of area coverage.

7 P’s OF MARKETING OF AXIS BANK Product Mix:

2. Axis Bank has 4800 regional branches and 17801 ATMs.

4. Operating sales of 2.7 billion US dollars in 2019.

5. Total assets of US$ 110 billion in 2019.

6. Gross Profit Rs. 1677.90 Crores.

8. Broad array products and services are provided by the Bank.

10.One of India’s largest private-sector funding for agricultural loans is

11.Great online services provided by Axis Bank, such as net banking,

12.Effective ads and branding have helped the brand to expand.

1. Gaps – primarily focused on corporate banking, wholesale banking,

Impact of Covid-19 on the performance of the Bank

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