Professional Documents
Culture Documents
(BCOM (H)-1604)
On
Session 2018-2019
School of Management
Babu Banarasi Das University
Sector I, Dr. Akhilesh Das Nagar, Faizabad Road, Lucknow (U.P.) India
i
DECLARATION
I do hereby declare that all the work presented in the research report entitled
Current economic Scenario” is carried out and being submitted at the school of
record of Akhand Singh. The work is carried out under the guidance of Mr.
Shankar Singh(faculty guide). It hasn‟t been submitted at any other place for
(Akhand Singh)
ii
ACKNOWLEDGEMENT
Before I get into the thick of the things I would like to add a few heartfelt words for
the people who were part of this research report in numerous ways and people who
gave unending support right from the stage the project was started, appreciated and
In this context I would like to express my gratitude towards my parents and family
members who have constantly supported and played a pivotal role in shaping my
career.
I owe my sincere gratitude towards faculty guide Mr. Shankar Singh of BBDU,
LUCKNOW for extending the support towards the completion of the Research
Report.
And finally I would like to thank my friends for their unending support.
(Akhand Singh)
iii
PREFACE
important in the field of Business Management. It offers the student to explore the
valuable treasure of experience and an exposure to real work culture followed by the
industries and thereby helping the students to bridge gap between the theories
understand the real world in which he has to work in future. The theories greatly
enhance our knowledge and provide opportunities to blend theoretical with the
practical knowledge where researcher gets familiar with certain aspect of research. I
feel proud to get myself to do research at topic “Investment Avenues Available with
iv
TABLE OF CONTENT
Declaration ii
Acknowledgement iii
Preface iv
1. Introduction
2. Company Profile
3. Objectives of the study
4. Research Methodology
5. Limitations
6. Data Analysis
7. Findings
8. SWOT Analysis
9. Recommendation
10. Conclusion
11. Bibliography
12. Annexure
v
CHAPTER-1
INTRODUCTION
1
INTRODUCTION
INTRODUCTION TO INVESTMENT
The money one earns is partly spent and the rest is saved for meeting future expenses,
instead of keeping savings idle one may like to use savings in order to get returns on it
purchase of goods that are not consumed today but are used in the future to create
wealth. In finance, an investment is a monetary asset purchased with the idea that the
asset will provide income in the future or appreciate and be sold at a higher price.
Mere earning will not help one to secure the future, so it becomes important to invest.
One of the important reasons why one needs to invest wisely is to meet the cost of
Inflation. Inflation is the rate at which the cost of living increases. The cost of living is
simply what it costs to buy the goods and services you need to live. Inflation causes
money to lose value because it will not buy the same amount of a good or a service in
the future as it does now or did in the past. The sooner one starts investing the better.
By investing early one allow one‟s investments more time to grow, whereby the
return or to make use of the money for future benefits or advantages. People commit
money to spend in future years. For example, if you invest Rs. 1000 today and earn
10% over the next year, you will have Rs.1100 one year from today.
An investment can be described as perfect if it satisfies all the needs of all investors.
So, the starting point in searching for the perfect investment would be to examine
2
investor needs. If all those needs are met by the investment, then that investment can
be termed the perfect investment. Most investors and advisors spend a great deal of
Little time, however, is spent understanding the needs of the investor and ensuring
Find out the costs and benefits associated with the investment
Examine if it fits in with other investments you are considering or you have
already made
Explore the options available to you if something were to go wrong, and then, if
3
INVESTMENT NEEDS OF AN INVESTOR
Investing money is a stepping stone to manage spending habits and prepare for the
future expenses. Most people recognize the need to put their money away for events
or circumstances that may occur in future. People invest money to manage their
personal finances some of them invest to plan for retirement, while others invest to
accumulate wealth. Each one has a different need and each of them expect something
By and large, most investors have eight common needs from their investments:
v. Income
4
TYPES OF INVESTMENT AVENUES
Figure 1.1 shows various investment alternatives which are explained below. One can
financial or non-financial in nature. There are many factors that affect one‟s choice of
investment. Millions of Indians buy fixed deposits, post office savings certificates,
stocks, bonds or mutual funds, purchase gold, silver, or make similar investments.
They all have a reason for investing their money. Some people want to supplement
their retirement income when they reach the age of 60, while others want to become
millionaires before the age of 40. We will look at various factors that affect our choice
of an investment alternative, let us first understand the basics of some of the popular
investment avenues.
5
Non marketable Financial Assets: A good portion of financial assets is represented
by non-marketable financial assets. These can be classified into the following broad
categories:
and depositing money in it one can make a bank deposit. There are various kinds
of bank accounts: current account, savings account and fixed deposit account. The
interest rate on fixed deposits varies with the term of the deposit. In general, it is
lower for fixed deposits of shorter term and higher for fixed deposits of longer
banks, POTD can be made in multiplies of 50 without any limit. The interest rates
on POTDs are, in general, slightly higher than those on bank deposits. The interest
Monthly Income Scheme of the Post Office (MISPO): A popular scheme of the
post office, the MISPO is meant to provide regular monthly income to the
account or 6, 00,000 in a joint account. The interest rate is 8.0 percent per annum,
Kisan Vikas Patra (KVP): A scheme of the post office, for which the minimum
doubles in 8 years and 7 months. Hence the compound interest rate works out to
6
National Savings Certificate: Issued at the post offices, National Savings
Certificate comes in denominations of 100, 500, 1,000, 5,000 and 10,000. It has a
term of 6 years. Over this period Rs. 100 becomes Rs. 160.1. Hence the
Company Deposits: Many companies, large and small, solicit fixed deposits from
the Company Law Board and fixed deposits mobilized by finance company (more
India. The interest rates on company deposits are higher than those on bank fixed
employees, where each employee has a separate provident fund account in which
both the employer and employee are required to contribute a certain minimum
Public Provident Fund Scheme: One of the most attractive investment avenues
available in India. Individuals and HUFs can participate in this scheme. A PPF
account may be opened at any branch of State Bank of India or its subsidiaries or
at specified branches of the other public sector banks. The subscriber to a PPF
account is required to make a minimum deposit of 100 per year. The maximum
permissible deposit per year is 70,000. PPF deposits currently earn a compound
interest rate of 8.0 percent per annum, which is totally exempt from taxes.
1.3.2 Bonds: Bonds are fixed income instruments which are issued for the purpose of
raising capital. Both private entities, such as companies, financial institutions, and the
central or state government and other government institutions use this instrument as a
7
means of garnering funds. Bonds issued by the Government carry the lowest level of
risk but could deliver fair returns. Many people invest in bonds with an objective of
earning certain amount of interest on their deposits and/or to save tax. Bonds are
considered to be a less risky investment option and are generally preferred by risk-
averse investors. Bond prices are also subject to market risk. Bonds may be classified
government and quasi government agencies are referred as gilt edge securities. It
has maturities ranging from 3-20 years and carry interest rate that usually vary
between 7 to 10 percent.
having a shareholding and a fixed interest loan. Debenture holders are normally
Preference shares: Investing in shares is safer and dividends are assured every
year.
Savings bonds
Mutual funds: A mutual fund allows a group of people to pool their money together
diversification, professional management and sound regulation. There are three broad
Equity schemes: The aim of growth funds is to provide capital appreciation over
the medium to long- term. Such schemes normally invest a major part of their
corpus in equities. Such funds have comparatively high risks. These schemes
8
provide different options to the investors like dividend option, capital
appreciation, etc. and the investors may choose an option depending on their
preferences. Growth schemes are good for investors having a long-term outlook
Debt schemes: The aim of income funds is to provide regular and steady income
instruments. Such funds are less risky compared to equity schemes. These funds
of capital appreciation are also limited in such funds. The NAVs of such funds are
affected because of change in interest rates in the country. If the interest rates fall,
NAVs of such funds are likely to increase in the short run and vice versa.
However, long term investors may not bother about these fluctuations.
Balanced schemes: The aim of balanced funds is to provide both growth and
regular income as such schemes invest both in equities and fixed income securities
in the proportion indicated in their offer documents. These are appropriate for
investors looking for moderate growth. They generally invest 40-60% in equity
and debt instruments. These funds are also affected because of fluctuations in
share prices in the stock markets. However, NAVs of such funds are likely to be
Real Estate: Residential real estate is more than just an investment. There are more
ways than ever before to profit from real estate investment. Real estate is a great
investment option. It can generate an ongoing income source. It can also rise in value
overtime and prove a good investment in the cash value of the home or land. Many
9
advisors warn against borrowing money to purchase investments. The best way to do
this is to save up and pay cash for the home. One should be able to afford the
payments on the property when the property is vacant, otherwise the property may
1.3.5 Equity Shares: Equities are a type of security that represents the ownership in a
company. Equities are traded (bought and sold) in stock markets. Alternatively, they
can be purchased via the Initial Public Offering (IPO) route, i.e. directly from the
equities over a long time horizon are generally higher than most other investment
avenues. However, along with the possibility of greater returns comes greater risk.
1.3.6 Money market instruments: The money market is the market in which short
term funds are borrowed and lent. These instruments can be broadly classified as:
Treasury Bills: These are the lowest risk category instruments for the short term.
RBI issues treasury bills [T-bills] at a prefixed day and for a fixed amount. There
are 4 types of treasury bills: 14-day T-bill, 91-day T-bill, 182-day T-bill and 364-
day T-bill.
Certificates of Deposits: After treasury bills, the next lowest risk category
10
are generally sold on discount basis. Organizations can issue CPs either directly or
through banks or merchant banks. These instruments are normally issued for
30/45/60/90/120/180/270/364 days.
seller or drawer of the goods on the buyer or drawee of the good for the value of
the goods delivered. These are called as trade bills and when they are accepted by
commercial banks they are called as commercial bills. If the bill is payable at a
future date and the seller needs money during the currency of the bill then the
used to hedge the risk of a contingent loss. Insurance is defined as the equitable
transfer of the risk of a loss, from one entity to another, in exchange for a premium.
entity buying the insurance. The insurance rate is a factor that is used to determine the
avenues as they offer partial cash-back at certain intervals. This money can be
Endowment Insurance: These are term policies. Investors have to pay the
premiums for a particular term, and at maturity the accrued bonus and other
1.3.8 Bullion Market: Precious metals like gold and silver had been a safe haven for
Indian investors since ages. Besides jewellery these metals are used for investment
11
purposes also. Since last 1 year, both Gold and Silver have highly appreciated in value
both in the domestic as well as the international markets. In addition to its attributes as
a store of value, the case for investing in gold revolves around the role it can play as a
portfolio diversifier.
where settlement takes place on a specific date in the future at today‟s pre-agreed
price.
asset at a certain time in the future at a certain price. Futures contracts are special
types of forward contracts in the sense that the former are standardized exchange
traded contracts
Options: Options are of two types - calls and puts. Calls give the buyer the right
but not the obligation to buy a given quantity of the underlying asset, at a given
price on or before a given future date. Puts give the buyer the right, but not the
Swaps: Swaps are private agreements between two parties to exchange cash flows
12
EVALUATION OF VARIOUS INVESTMENT AVENUES
Table 1.1 shows the evaluation of various investment avenues. From this table we can
say that risk, liquidity and return are the so called factors which are considered before
making an investment. But there is a trade off between risk and return. Higher the risk
higher is the return. Lower the risk and lower is the return. The decision of which
mode of investment to choose largely depends upon the investors necessity and the
13
People with more security concern choose fixed investment like bank deposits and
investments in government securities and various post office savings. The main
reason for choosing such an investment mode is that the amount invested in the above
stated securities seems to be very secure and hence they seemed to be more preferred
People whom returns are most important are ready to take risk to earn fairer risk. The
preferred mode of investment over here is equity shares and mutual fund. The risk
factor in these modes of investment is basically the returns are basically performance
based. If the company performs well the investors can accept fairer returns but if the
company fails to perform then there can be a threat to the invested amount. Hence the
returns are very volatile with the changes in the market conditions.
ATTRIBUTES OF INVESTMENT
Investment can be said to be an art. Many people invest money without knowing what
they are doing. Only a few people really understand the art of investing money. They
invest according to certain principles. There are also certain factors that affect the
investment decisions. All these are done mainly to increase the return on the
investment and also to keep the risk to a minimum. The various factors that affect the
a) Rate of Return: The rate of return on an investment for a period (which is usually
Beginning price
14
Yield: Yield is the annual rate of return for any investment and is expressed as a
percentage. With stocks, yield can refer to the rate of income generated from a stock
calculated as the annual dividend payments divided by the stock's current share price.
Market price
Capital Appreciation: It‟s the rise in the market price of an asset. Capital
appreciation is one of two major ways for investors to profit from an investment in a
b) Risk: The risk of investment refers to the variability of its rate of return.
A simple measure of dispersion is the range of values, which is simply the difference
Figure 1.2 shows the relationship between expected return and risk. From this figure it
is clear that with higher risk the returns also increases while it decrease as the risk
decreases. High variance indicates high degree of risk and low variance indicates
lesser risk. Expected returns increases when investors is willing to take risk.
15
Variance: This is the mean of the squares of deviations of individual returns around
Beta: This reflects how volatile the return from an investment is, in response to
market swings.
The liquidity of a market may be judged in terms of its depth, breadth, and resilience.
Depth refers to the existence of buy as well as sells orders around the current market
price. Breadth implies the presence of such orders in substantial volume. Resilience
means that new orders emerge in response to price changes. Generally, equity shares
of well established companies enjoy high marketability and equity shares of small
Initial Tax Benefit: An initial tax benefit refers to the tax relief enjoyed at the time of
Continuing Tax Benefit: A continuing tax benefits represent the tax shield associated
16
Terminal Tax Benefits: A terminal tax benefit refers to relief from taxation when an
e) Convenience: Convenience broadly refers to the ease with which the investment can
The degree of convenience associated with investments varies widely. At one end of
the spectrum is the deposit in a savings bank account that can be made readily and
that does not require any maintenance effort. At the other end of the spectrum is the
purchase of a property that may involved a lot of procedural and legal hassles at the
At any given point of time, there are some securities for which the existing market
price will differ from the intrinsic value. Sooner or later, of course, the market price
intrinsic value exceeds the market price) and selling over-valued securities (securities
17
ii. Psychological Approach: The psychological approach is based on the premise that
stock prices are guided by emotion rather than reason. Stock prices are believed to be
influenced by the psychological mood of investors. When greed and euphoria sweep
the market, prices rise to dizzy heights. On the other hand, when fear and despair
Since psychic values appear to be more important than intrinsic values, the
tend to behave as the market is swept by waves of optimism and pessimism, which
seem to alternate. The psychological approach has been described vividly as the
Those who subscribe to the psychological approach or the „castles in the air‟
theory generally use some form of technical analysis which is concerned with a study
of internal market data, with a view to developing trading rules aimed at profit
making. The basic premise of technical analysis is that there are certain persistent and
data. Technical analysts use a variety of tools like bar chart, point and figure chart,
iii. Academic Approach: Over the last five decades or so, the academic community has
studied various aspects of the capital market, particularly in the advanced countries,
Stock markets are reasonably efficient in reacting quickly and rationally to the flow of
information. Hence, stock prices reflect intrinsic value fairly well. Put differently,
18
Stock price behaviour corresponds to a random walk. This means that successive
price changes are independent. As a result, past price behaviour cannot be used to
In the capital market, there is a positive relationship between risk and return. More
specifically, the expected return from a security is linearly related to its systematic
risk
iv. Eclectic Approach: The eclectic approach draws on all the three different approaches
discussed above. The basic premises of the eclectic approach are as follows:
caution.
Technical analysis is useful in broadly gauging the prevailing mood of investors and
the relative strengths of supply and demand forces. However, since the mood of
regarded as suspect because they often represent figments of imagination rather than
19
COMMON ERRORS IN INVESTMENT MANAGEMENT
some conditions. The reason for this failure is either the market condition or some
mistakes made by the investors. We cannot control market condition but errors made
their investments. Some of the errors made by investors are discussed below:
investments, in particular from equity shares and convertible debentures. One often
comes across investors who say that they hope to earn a return of 25 to 30 percent per
year with virtually no risk exposure or even double their investment in a year or so.
They have apparently been misled by one or more of the following; (a) tall and
(b) Exceptional performance of some portfolio they have seen or managed, which
(c) Promises made by tipsters, operators, and others. In most of the cases, such
Often investors do not clearly spell out their risk disposition and investment
policy. This tends to create confusion and impairs the quality of investment decisions.
Ironically, conservative investors turn aggressive when the bull market is near its peak
in the hope of reaping a bonanza; likewise, in the wake of sharp losses inflicted by a
bear market, aggressive investors turn unduly cautions and overlook opportunities
before them. Ragnar D. Naess put it this way: “The fear of losing capital when prices
20
are low and declining, and the greed for more capital gains when prices are rising, are
probably, more than any other factors, responsible for poor performance. “if you
know what your risk attitude is and why you are investing, you will learn how to
and do not effectively incorporate changes into expectations. As Arthur Zeikel says:
Most investors tend to cling to the course to which they are currently committed,
dangerous. As Peter Bernstein says: “Momentum causes things to run further and
longer than we anticipate. They very familiarity of a force in motion reduces our
ability to see when it is losing its momentum. Indeed, that is why extrapolating the
present into the future so frequently turns out to be the genesis of an embarrassing
forecast.”
Base their decisions on partial evidence, unreliable hearsay, or casual tips given by
21
Cavalierly brush aside several of investment risk (market risk, business risk, and
Uncritically follow others because of the temptation to ride the bandwagon or lack of
Investors tend to follow an irrational start and stop approach to the market
characterized by untimely entries (after a market advance has long been underway)
High costs
good proportion of investors indulge in day trading in the hope of making quick
profits. However more often transaction cost wipes out whatever profits they may
different stocks. Managing such portfolios is an unwieldy task and as R.J.Jenrette put
of the portfolios we look at have too many names. As a result, the impact of a good
idea is negligible.”
22
Wrong Attitude towards Losses and Profits
An investor has an aversion to admit his mistake and cut losses short. If the
price falls, contrary to his expectation at the time of purchase, he somehow hopes that
it will rebound and he can break even. Surprisingly, such a belief persists even when
the prospects look dismal and there may be a greater possibility of a further decline. If
the price recovers due to favourable conditions, there is a tendency to dispose of the
share when its price more or less equals the original purchase price, even though there
investor from recovering losses seems to motivate such behaviour. This means the
tendency is to let the losses run and cut profits short, rather than to cut the losses short
RISKS IN INVESTMENT
investment (equity, debt, property, etc.) carries an element of risk that is unique to it.
effective risk management. To manage risk, one first need to identify different kinds
of risks involved in investing and then take appropriate steps to reduce it.
Risk and return share a direct relationship with one another. Therefore, an
investment which carries negligible risk, will offer a low return (viz. bonds issued by
the Reserve Bank of India) while an investment which carries a higher risk, also
offers the potential of higher returns (stocks).All investments are a „trade off‟ between
23
Types of Risks
All investments carry their unique set of risks. Though there are several types
of risks, the important ones are - market risk, credit risk, interest rate risk, inflation
risk, currency risk and liquidity risk. These are briefly explained below:
a) Market Risk: A share may rise or fall depending on the fortunes of the company, the
b) Credit Risk: This risk is attributed to debt investments wherein the borrower may
c) Interest Rate Risk: When interest rates rise, fixed income investments lose value.
This is because the investor will continue to earn the same (lower) interest rate until
the investment matures while market interest rates have already gone up. In order to
compensate for a lower interest rate compared to the market rate, the fixed income
d) Inflation Risk: Rising inflation will erode the value of your income and asset. Due to
inflation, the cost of products and services will rise and consequently, your future
income and assets will be worth less than what they are worth today.
e) Currency Risk: Changes in exchange rates between currencies could lead to decline
in value of your investments. With Indian investors now being allowed to invest in
other countries, you will now be exposed to currency risk i.e. a fall in the value of the
currency in which you are investing vis-à-vis your home currency i.e. the Rupee.
f) Liquidity Risk: Certain investments carry the risk of poor liquidity either due to the
investments like the Reserve Bank of India bonds are not transferable till maturity.
24
Investments in Equity Linked Savings Schemes are illiquid for a period of 3 years and
in case you redeem from such schemes, your tax benefit is withdrawn.
Risk Management
appropriate steps can be taken to reduce these risks. Some of these steps are:
investments across asset classes (stocks, bonds, properties etc.), industry, currencies
etc. Diversification spreads the risk and reduces the adverse impact that any one
b) Research and Monitor: Rigorous research and continuous monitoring will help in
controlling the market and credit risk of your investments. This will caution
25
Risk Tolerance Level: Risk includes the possibility of losing money. However, extra
considerations should be made in addition to the safety of the principal and the
potential for growth. These considerations include the likelihood of achieving the
financial goals you have established. Additionally, one should consider whether
he/she is willing and able to accept a higher level of risk in order to achieve further
rewards.
should establish his/her risk tolerance level. Only after this he/she is ready to build
strategies for the accomplishment of his/her financial goals. The higher the degree of
risk involved in the investment portfolio the greater the chances of higher returns and
failures.
The setting of the risk tolerance level is very subjective issue. However,
younger investors can afford more risk taking since they have more time to fix the
losses. On the other hand older investors should apply more conservative approach
since they have less time in front of them. But, they should keep in mind that they
A portfolio that carries more bonds is considered more conservative and risk
averse. However, the one that includes a greater percentage of stocks is more risk
taking with higher potential of rewards. Many financial experts recommend the
diversification between investments with different degrees of risk. This is a good idea
since your portfolio will benefit from the rises and falls of the different investments
Risk Personalities: Based on the risk capacity and risk tolerance, risk appetite
can be decided. This is the level of risk that one is ready to bear. Broadly risk
26
personalities can be categorised at 3 levels – Conservative, Balanced and Aggressive.
Each risk personality has a different objective which it aims to achieve through the
capital invested is the ultimate goal, even if it means compromising on the returns.
Balanced personality: People with this type of personality wish to strike a balance
27
CHAPTER-2
COMPANY PROFILE
28
COMPANY PROFILE
Axis Bank
Key people Shikha Sharma (MD & CEO) Sanjiv Misra (Chairman)
Website www.axisbank.com
Axis Bank Limited is the third largest private sector bank in India. Axis Bank's stake
29
approximately 43% of the shares are owned by Foreign Institutional Investors.
Promoters (UTI, LIC and GIC), who collectively held approx. 34% of the shares, are
all entities owned and controlled by the Government of India. The remaining 23%
shares are owned by corporate bodies, financial institutions and individual investors
among others. The bank offers financial services to customer agent covering Large
and Mid-Sized Corporates, MSME, Agriculture and Retail Businesses. Axis Bank
Operations
Indian Business: As of 12 Aug 2016, the bank had a network of 3,120 branches and
extension counters and 12,922 ATMs. Axis Bank has the largest ATM network
among private banks in Indiaand it operates an ATM at one of the world‟s highest
sites at Thegu, Sikkim at a height of 4,023 meters (13,200 ft) above sea level.
International Business: The Bank has eight international offices with branches at
Singapore, Hong Kong, Dubai (at the DIFC), Shanghai, Colombo and representative
offices at Dubai and Abu Dhabi, which focus on corporate lending, trade finance,
syndication, investment banking and liability businesses. In addition to the above, the
Bank has a presence in UK with its wholly owned subsidiary Axis Bank UK Limited.
Services
As of 2014, Axis Bank operates in four segments: treasury operations, retail banking,
30
Treasury operations
corporate debt, equity and mutual funds, trading operations, derivative trading and
foreign exchange operations on the account, and for customers and central funding.
ads efv
Retail banking
In the retail banking category, the bank offers services such as lending to
criterion, along with liability products, card services, Internet banking, automated
teller machines (ATM) services, depository, financial advisory services, and Non-
resident Indian (NRI) services. Axis bank is a participant in RBI's NEFT enabled
Corporate/wholesale banking
The Bank offers to corporate and other organisations services including corporate
NRI services
31
Business banking
The Bank collects income and other direct taxes through its 214 authorised branches
at 137 locations and central excise and service taxes (including e-Payments) through
Investment banking
Markets, Mergers and Acquisitions and Private Equity Advisory. The bank is a SEBI-
registered Category I Merchant Banker and has been active in advising Indian
companies in raising equity through IPOs, QIPs, and Rights issues etc. During the
financial year ended 31 March 2012, Axis Bank undertook 9 transactions including 5
Axis Bank SME business is segmented in three groups: Small Enterprises, Medium
Enterprises and Supply Chain Finance. Under the Small Business Group a subgroup
for financing micro enterprises is also set up. Axis bank is the first Indian Bank
Agriculture banking
759 branches of the Bank provide banking services, including agricultural loans, to
farmers. As on 31 March 2013, the Bank‟s outstanding loans in the agricultural sector
32
Advisory Services have been developed to advise public and private sector clients on
capital structuring and funding options with a view to help the clients to help them
reduce the cost of funds. The Group has also been active in advising the central and
power, oil and gas, petrochemicals, cement, sugar, textiles, steel & allied sectors, auto
Ping Pay was unveiled between 21–25 May 2015, which is a multi-social payment
solution that let customers to transfer funds using their smart phones to both Axis
History
UTI Bank opened its registered office in Ahmedabad and corporate office in Mumbai
in December 1993. The first branch was inaugurated on 2 April 1994 in Ahmedabad
by Dr. Manmohan Singh, the Finance Minister of India. UTI Bank began its
operations in 1993, after the Government of India allowed new private banks to be
established. The Bank was promoted in 1993 jointly by the Administrator of the Unit
Trust of India (UTI-I), Life Insurance Corporation of India (LIC), General Insurance
Corporation, National Insurance Company, The New India Assurance Company, The
In 2001 UTI Bank agreed to merge with and amalgamate Global Trust Bank, but the
Reserve Bank of India (RBI) withheld approval and nothing came of this. In 2004 the
33
RBI put Global Trust into moratorium and supervised its merger into Oriental Bank of
Commerce.
UTI Bank opened its first overseas branch in 2006 Singapore. That same year it
UTI Bank opened a branch in the Dubai International Financial Centre in 2007. That
same year it began branch operations in Hong Kong. The next year it opened a
Bank supervised by the Central Bank of Sri Lanka. Also in 2011, Axis Bank opened a
In 2013, Axis Bank's subsidiary, Axis Bank UK commenced banking operations. Axis
As on 31 March 2013, Axis Bank had 37,901 employees(Axis Bank Recruitment), out
of which 7,117 employees were women (19%). The bank incurred INR 26.7 billion on
employee benefits during the FY 2012-13.The average age of an Axis Bank employee
Initiatives
The Business Gaurav SME Awards: In 2011 centres and SME cells each across the
country, taking the total number to 32 SME Centres. The Bank also organised the
'Business Gaurav SME Awards' in association with Dun & Bradstreet to recognise
34
Financial inclusion: Till March 2012, the Bank had opened over 4.4 million No Frills
nearly 6000 customer service points. Axis Bank has a strong presence in Electronic
Benefit Transfer (EBT) and has covered 6800 villages across 19 districts and 9 states
Axis Bank launched Mobile Banking App 2.0 for its retail resident Indian customers
the first of its kind in India, which offers a high level of personalisation . The App has
company. The new application uses Tagit's mobility solution platform that enables
Banking on-the-go.
'Axis Bank - ISIC Forex Card' for students, is the first photo Travel Currency Card
available in USD, Euro, GBP and AUD currencies. It can be used across 34 million
Axis Bank has partnered with Visa to launch 'eKYC' (electronic Know your
accounts.
35
Listing and shareholding
Axis Banks's equity shares are listed on the Bombay Stock Exchange and National
Stock Exchange of India. The company's global depository receipts (GDRs) are listed
on the London Stock Exchange. The Bonds issued by the Bank under the MTN
As on 31 December 2013, the promoters UTI, LIC and GIC held approx. 34% of the
shares in Axis Bank. Foreign Institutional investors (FII) held approx. 43% of the
The bank aims to increase its share in the financial services sector by continuing to
build a strong retail franchise. The segment continues to be one of the key drivers of
the Bank‟s growth strategy, encompassing a wide range of products delivered through
Employees
Axis Bank has over 50,000 employees (as of 31 March 2018). The bank incurred
₹26.7 billion (US$400 million) on employee benefits during the FY 2016–17. The
average age of an Axis Bank employee is 29 years. The attrition rate in Axis Bank is
36
ORGANIZATION STRUCTURE OF AXIS BANK
37
Careers Prospects
Axis Bank is a meritocratic organization and offers fast and rewarding career growth
paths subject to the employees‟ potential. The Bank provides grade elevation
opportunities to the high performers within a span of 2-3 years .There are ample
opportunities for employees to grow within the same vertical/ function and even
According to the skills, potential and calibre of the ABYB student, the Bank may give
and challenging positions in other departments in the Bank such as SME and Business
38
Vision & Mission
sustainable livelihoods.
Our mission
livelihood is defined as the livelihood which can cope with and recover from stress
and shocks, maintains or enhances capabilities and assets (social, physical and
economic) and create conditions that are suitable for better education, health and
sanitation seeking behavior and sustainable livelihood for the next generation.
It aims to support programs, projects and activities that focus on creating conditions
suitable for sustainable livelihood. For this endeavor, ABF partners with civil society
organizations and provide them with financial, technical and capacity development
vulnerable communities.
Guiding principles
Strive to reach out and create meaningful socioeconomic impact in the lives of the
vulnerable and underprivileged sections of the society i.e the differently abled, street
children, destitute women, children of commercial sex workers, people suffering from
39
Support projects and programs that are aligned with the national development
priorities, needs of the communities and are in sync with the CSR objectives and
that facilitates better access and leverage with Government programs, schemes and
Undertake research on socially relevant issues, document best practices and engage
management approaches to all the work that has a focus on appropriately defined
Endeavor to develop the capacities and capabilities of the staff members, partners and
the other stakeholders at the community level through exposure to new approaches,
Be guided by the core values and ethics that govern operations namely transparency,
40
CHAPTER-3
41
OBJECTIVES
To Study all about the perception of investors towards the equity futures as an
To Study how the investors get information about the various financial
instrument
To Study the saving habits of the different customers and the amount they
42
CHAPTER-4
RESEARCH METHODOLOGY
43
RESEARCH METHODOLOGY
It tends taken by the researcher in studying the research problem along with the logic
behind them.
being studied. The research undertaken was a descriptive research as it was concerned
44
Mode of Collecting Data – The respondents were chosen randomly and requested to
Data Processing –
(i) A number of tables was prepared to bring out the main characteristics of the
collected data.
45
CHAPTER 5
LIMITATIONS
46
LIMITATIONS
3. The study was conducted in Lucknow. So the findings and conclusion drawn are
4. The methods used for analysis and interpretation purpose may have some
limitations of their own and some errors can always creep in.
47
CHAPTER-6
DATA ANALYSIS
48
Analysis and Interpretation
FINDINGS
49
SWOT analysis
50
SWOT analysis of Axis Bank
Axis bank has been given the rating as one of top three positions in terms of fastest
Financial express has given number two position and BT-KPMG has rated AXIS bank
The bank has a network of 1,493 domestic branches and 8,324 ATMs
The banks financial positions grows at a rate of 20% every year which is a major
The company‟s net profit is Q3FY12 is 1,102.27 which has a increase of 25.19%
retail banking
Very recently the bank started focusing its attention towards personal banking and
rural areas
The share rates of AXIS bank is constantly fluctuating in higher margins which makes
There are lot of financial product gaps in terms of performance as well as reaching out
to the customer
There are many fraudulent activities involved in credit cards as the banks process
51
Their financial consultants are not wise enough to guide the customers towards right
investments
Customer service has to improve a lot in order to be in race with other major players
In 2009, Alliance with Motilal Oswal for online trading for 10 million customers
In 2010, acquired Enam Securities Pvt Ltd – broking and investment banking
In Sep 2009, SEBI approved Axis Asset Management Co. for mutual fund business
lending
Last quarter there were 48 new branches opened across the Nation
Since it‟s a new age banking there are lot of opportunities to have the advance
The assets in their international operations are growing at a very faster pace with a
The concept of ETM (Everywhere teller machine) by AXIS Bank had a good
52
RBI allowed foreign banks to invest up to 74% in Indian banking
Government schemes are most often serviced only by govern banks like SBI ,Indian
ICICI and HDFC are imposing strong threats in terms of their expansion in customer
53
RECOMMENDATIONS
CONCLUSION
54
BIBLIOGRAPHY
vi
BIBLIOGRAPHY
Books
Edition
Herbert B. Mayo, Investments, Chennai Micro Print pvt. Ltd Chennai, 2006
Journals
Websites Reference
www.indiafinance&investmentguide.com
www.wikipedia.org
www.nseindia.com
www.capitalmarkets.com
vii
www.bseindia.com
www.financeindia.org/article
viii
APPENDIX
ix
QUESTIONNAIRE
(Please tick mark √ the choice from the option given below)
PART – A
1) Name:
3) Age Group:
Single Married
Businessman Student
x
PART – B
Commodities/ Derivatives
a) __________________________________
b) __________________________________
c) __________________________________
d) __________________________________
3) Which of the following statements best describes your main objective of investment?
Satisfactory
Above 10years
xi
6) How regularly do you make investment decisions?
Frequently Often
Internet
10) If you could choose only one of the three portfolios characterized below, which
would you select, given your investments are in Equities, Fixed deposits, cash
Thank You
xii