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Axis BankManagement Information System

Submitted By:-

Rishabh Chaudhary

11DCP092

Section- B

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ORGANISATION INTRODUCTION:

Axis Bank previously called UTI Bank, was the first of the new private banks to have begun

operations in 1994, after the Government of India allowed new private banks to be established.

The Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit

Trust of India (UTI-I),Life Insurance Corporation of India(LIC), General Insurance CorporationLtd., National Insurance Company Ltd. ,The New India Assurance Company ,The Oriental

Insurance Corporation and United Insurance Company Ltd. UTI-I holds a special position in the

Indian capital markets and has promoted many leading financial institutions in the country. Thebank changed its name to Axis Bank in April 2007 to avoid confusion with other unrelated

entities with similar name.

Shikha Sharma was named as the bank's managing director and CEO on 20 April 2009.As on the year ended March 31, 2009 the Bank had a total income of Rs.13,745.04 crores and a

net profit of Rs 1,812.93 crores

Branch Network

At the end of March 2009, the Bank has a very wide network of more than726 branch offices andExtension Counters. The Bank has loans now (as of June 2007) account for as much as 70 per

cent of the banks total loan bookof Rs 2,00,000 crore. For HDFC Bank, retail assets are around

57 per cent(Rs 28,000 crore) of the total loans as of March 2007.In the case of Axis Bank, retailloans have declined from 30 per cent of the total loan book of Rs 25,800 crore in June 2006 to

around 23 per cent of loan book of Rs.41,280 crore (as of June 2007). Even over a longer period,

while the overall asset growth for Axis Bank has been quite high and has matched that of the

other banks, retail exposures grew at a slower pace. If the sharp decline in the retail asset book inthe past year in the case of Axis Bank is part of a deliberate business strategy, this could have

significant implications (not necessarily negative) for the overall future profitability of the

business. Despite the slower growth of the retail book over a period of time and the outright

decline seen in the past year, the banks fundamentals are quite resilient. With the high level ofmid-corporate and wholesale corporate lending the bank has been doing, one would have

expected the net interest margins to have been under greater pressure. The bank, though, appears

to have insulated such pressures. Interest margins, while they have declined from the 3.15per cent seen in 2003-04, are still hovering close to the 3 per cent mark. (The comparable

margins for ICICI Bank and HDFC Bank area round 2.60 per cent and 4 per cent respectively.

The margins for ICICI Bank are lower despite its much larger share of the higher marginretail business, since funding costs also are higher).

Company History - Axis Bank

1993

The Bank was incorporated on 3rd December and Certificate of business on 14thDecember. The Bank transacts banking business of all description. UTI Bank Ltd.

http://en.wikipedia.org/wiki/Government_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/Oriental_Insurancehttp://en.wikipedia.org/wiki/Oriental_Insurancehttp://en.wikipedia.org/wiki/Oriental_Insurancehttp://en.wikipedia.org/wiki/Oriental_Insurancehttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/New_India_Assurancehttp://en.wikipedia.org/wiki/Life_Insurance_Corporation_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Unit_Trust_of_Indiahttp://en.wikipedia.org/wiki/Government_of_India

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was promoted by Unit Trust of India, Life Insurance Corporation of India, General

Insurance Corporation of India and its four subsidiaries.

The bank was the first private sector bank to get a license under the new guidelines issuedby the RBI.

1997

The Bank obtained license to act as Depository Participant with NSDL and applied forregistration with SEBI to act as `Trustee to Debenture Holders'.

Rupees 100 crores was contributed by UTI, the rest from LIC Rs 7.5crores, GIC and itsfour subsidiaries Rs 1.5 crores each.

1998

The Bank had 28 branches in urban and semi urban areas as on 31stJuly. All the branchesare fully computerised and networked through VSAT. ATM services are available in 27

branches. The Bank came out with a public issue of 1,50,00,000 No. of equity shares of Rs 10 each

at a premium of Rs 11 per share aggregating to Rs 31.50 crores and Offer for sale of2,00,00,000 no. of equity shares for cash at a price of Rs 21 per share. Out of the public

issue 2,20,000 shares were reserved for allotment on preference basis to employees of

UTI Bank. Balance of 3,47,80,000 shares were offered to the public.

The company offers ATM cards, using which account-holders can withdraw money fromany of the bank's ATMs across the country which is inter-connected by VSAT.

UTI Bank had launched a new retail product with operational flexibility for its customers. UTI Bank signed a co-brand agreement with the market, leader, Citibank NA to enter into

the highly promising credit card business.

UTI Bank promoted by India's pioneer mutual fund Unit Trust of India along with LIC,GIC and its four subsidiaries.

1999

UTI Bank and Citibank have launched an international co-branded credit card. UTI Bank and Citibank have come together to launch an International co-branded credit

card under the MasterCard umbrella.

UTI Bank Ltd had inaugurated an off site ATM at Ashok Nagar here, taking the totalnumber of its offsite ATMs to 13 mn

2000

The Bank had announced the launch of Tele-Depository Services for its depositoryclients. - UTI Bank has launch of `iConnect', its Internet banking Product.

UTI Bank had signed a memorandum of understanding with equitymaster.com for e-broking activities of the site.

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Infinity.com financial Securities Ltd., an e-broking outfit typed up with UTI Bank for abanking interface. Geojit Securities Ltd, the first company to start online trading

services, had signed a MoU with UTI Bank to enable investors to buy\sell stocks throughthe company's website.

India bulls had signed a memorandum of understanding with UTI Bank. UTI Bank entered into an agreement with Stock Holding Corporation of India forproviding loans against shares to SCHCIL's customers and funding investors in public

and rights issues.

ICRA upgraded the rating of UTI Bank's Rs 500-crore certificate of deposit program toA1+.

UTI Bank had tied up with L&T Trade.com for providing customized online tradingsolution for brokers.

2001

UTI Bank launched a private placement of non-convertible debentures to raise up to Rs75 crore.

UTI Bank opened two offsite ATMs and one extension counter with an ATM inMangalore, taking its total number of ATMs across the country to 355.

UTI Bank has recorded a 62 per cent rise in net profit for the quarter ended September30, 2001, at Rs 30.95 crore. For the second quarter ended September 30, 2000, the netprofit was Rs 19.08 crore. The total income of the bank during the quarter was up 53

per cent at Rs 366.25 crore.

2002

UTI Bank Ltd informed BSE that Shri B R Barwale has resigned as a Director of theBank w.e.f. January 02, 2002. A C Shah, former chairman Of Bank of Baroda, alsoretired from the banks board in the third quarter of last year. His place continues to be

vacant. M Damodaran took over as the director of the board after taking in the reins of

UTI. B S Pandit has alsojoined the banks board subsequent to the retirement of K GVassal.

UTI Bank Ltd had informed that Shri Paul Fletcher has been appointed as an AdditionalDirector Nominee of CDC Financial Service (Mauritius)Ltd of the Bank. And Shri

Donald Peck has been appointed as a Additional Director (nominee of South AsiaRegional Fund) of the Bank.

UTI Bank Ltd has informed that on laying down the office of Chairman of LIC on beingappointed as Chairman of SEBI, Shri G N Bajpai, Nominee Director of LIC has resigned

as a Director of the Bank.

2002

B Paranjpe & Abid Hussain ceased to be the Directors of UTI Bank. UTI Bank Ltd had informed that in the meeting of the Board of Directors following

decisions were taken: Mr Yash Mahajan, Vice Chairman and Managing Director of

Punjab Tractors Ltd were appointed as an Additional Director with immediate effect.

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Mr. N C Singhal former Vice Chairman and Managing Director of SCICI was appointed

as an Additional Director with immediate effect.

ABN Amro, UTI Bank in pact to share ATMs. UTI Bank Ltd had informed BSE that a meeting of the Board of Directors of the Bank

is scheduled to be held on October 24, 2002 to consider and take on record the unaudited

half yearly/quarterly financial results of the Bank for the half year/Quarter endedSeptember 30, 2002.

UTI Bank Ltd informed that Shri J M Trivedi has been appointedas an alternate directorto Shri Donald Peck with effect from November 2, 2002.

2003

UTI Bank Ltd informed BSE that at the meeting of the Board of Directors of thecompany held on January 16, 2003, Shri R NBharadwaj, Managing Director of LIC has

been appointed as an Additional Director of the Bank with immediate effect.

UTI Bank, the private sector bank had opeaned a branch at Nellore.The bank's Chairmanand Managing Director, Dr P.J. Nayak, inaugurating the bank branch at GT Road onMay 26. Speaking on the occasion, Dr Nayak said, This marks another step towards the

extensive customer banking focus that we are providing across the country andreinforces our commitment to bring superior banking services, marked by convenience

and closeness to customers.

UTI Bank Ltd. had informed the Exchange that at its meeting held on June 25, 2003 theBOD have decided the following:

o To appoint Mr. AT Pannir Selvam, former CMD of Union Bank of India and Prof.JayanthVarma of the Indian Institute of Management, Ahmedabad as additionaldirectors of the Bank with immediate effect. Further, Mr. Pannir Selvam will be the

nominee director of the Administrator of the specified undertaking of the Unit Trustof India (UTI-I) and Mr.Jayanth Varma will be an Independent Director.

o To issue Non-Convertible Unsecured Redeemable Debentures upto Rs.100 crs, in oneor more tranches as the Bank's Tier - II capital.

UTI had been authorized to launch 16 ATMs on the Western Railway Stations ofMumbai Division.

UTI filed suit against financial institutions IFCI Ltd in the debt recovery tribunal atMumbai to recover Rs.85cr in dues.

UTI bank made an entry to the Food Credit Program, it has made an entry into the 59cluster which includes private sector, public sector, old private sector and co-operativebanks.

Shri Ajeet Prasad, Nominee of UTI has resigned as the director of the bank. Banks Chairman and MD Dr. P.J.Nayak inaugurated a new branch at Nellore. UTI bank allots shares under Employee Stock Option Scheme to its employees. Unveils pre-paid travel card 'Visa Electron Travel Currency Card' Allotment of 58923 equity shares of Rs 10 each under ESOP.

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UTI Bank ties up with UK govt. fund for contract farming -Shri B S Pandit, nominee ofthe Administrator of the Specified Undertaking of the Unit Trust of India (UTI-I) has

resigned as a director from the Bank wef November 12, 2003.

UTI Bank unveils new ATM in Sikkim2004

Comes out with Rs. 500 mn Unsecured Redeemable Non-Convertible Debenture Issue,issue fully subscribed

UTI Bank Ltd has informed that Shri Ajeet Prasad, Nominee of the Administrator of theSpecified Undertaking of the Unit Trust of India(UTI - I) has been appointed as anAdditional Director of the Bank w.e.f. January 20, 2004.

UTI Bank opens new branch in Udupi -UTI Bank, Geojit in pact for trading platform inQatar -UTI Bank ties up with Shriram Group Cos

Unveils premium payment facility through ATMs applicable to LIC &UTI Bankcustomers -Metaljunction (MJ)- the online trading and procurement joint venture of Tata

Steel and Steel Authority of India (SAIL)- has roped in UTIBank to start off ownequipment for Tata Steel.

DIEBOLD Systems Private Ltd, a wholly owned subsidiary of Diebold Incorporated, hassecured a major contract for the supply of ATMs and services to UTI Bank

HSBC completes acquisition of 14.6% stake in UTI Bank for .6 m UTI Bank installs ATM in Thiruvananthapuram -Launches `Remittance Card' in

association with Remit2India, a Website offering money-transfer services

2005

UTI Bank enters into a bank assurance partnership with Bajaj Allianz General for sellinggeneral insurance products through its branch network.

UTI Bank launches its first Satellite Retail Assets Centre (SRAC) in Karnataka atMangalore.

2006

UBL sets up branch in Jaipur UTI Bank unveils priority banking lounge

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SERVICES:

1. Personal banking

Accounts

Term deposit

Fixed deposit Recurring deposit

Cards

Gold plus & gold card Silver plus & silver card

2. Corporate banking

Accounts Normal current a/c Trust/NGO saving a/c

Services

Private equity Advisory services Capital market funding E- Broker

3. Retail banking

Deposit schemesLoans & advances

Personal loan Housing loan Cards Consumer durables Auto loan

INFORMATION SYSTEM

Axis Bank has implemented a new derivatives system -- Summit FT by global financial

applications provider -- Misys. The system will provide the bank with the ability to structurederivative products in real time, reduce time to market, and give a single view of the entire

transaction to the customer. According to Prabhakar Saxena, general manager (India) of Misys,

"A lot of banks are providing derivative products on a back to back basis. But these are plainvanilla products, which are uniform in nature. Summit FT will help Axis to structure its

derivative products differently and offer its customers products that are different from the run-of-

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the-mill derivatives. Thus, it can charge a premium for its dynamic services." The bank hopes to

leverage the ability to rationalize its currently dispersed functions to provide a single viewof every transaction to customers. Derivative transactions can expose the bank to three

broad categories of risks: counterparty credit risk, market risk, and operational risk. With some

derivatives and structured products operations currently served by a range of third party vendor

solutions, spreadsheets, and customer built platforms, the bank is predicting that rationalizingsystems across front, middle, and back office operations will provide significant competitive

advantage. "Apart from helping the bank to create new derivative products without having to

resort to developers each time, it also helps from a regulatory compliance standpoint," saidSaxena. The RBI favors transparent online systems that can track every transaction and report

it exactly as it is. Currently spreadsheets are being used to record information, which leaves

room for misreporting, errors etc. An automated system will remove this anomaly and improvecompliance to a great extent. The Summit FT product was evaluated against products by

competitors Murex and Calypso before it was finally adopted by Axis Bank.

ORGANISATION COMPUTING RESOURCES:

SOFTWARE RESOURCES

Risk Management solutions provider for derivatives market, Pyxis Systems, has announced thatUTI Bank has selected its RisKompass as the software solution for financial derivatives risk

management. A software system for derivatives valuation and risk management, RisKompass

enables clients to manage derivative trades in a further controlled way from the front to back

office. Supporting the industry standard FPML (Financial Product Markup Language) protocol,it can manage valuation and risk management of a broad range of derivatives instruments. The

system will handle derivatives such as interest rates and foreign exchange for UTI Bank. The

implementation will provide the bank with an automated system that reduces manual effort

to streamline its operations. The benefit envisaged by the bank is that everybody being on thesame system, it can be accessed by anyone on the different locations of the bank. The users at the

bank would include marketing staff, traders, dealers and risk managers. The solution will result

in smoother deal processing, with verifying and online risk monitoring mechanism. It willstreamline all operations and the risk mechanism can be monitored centrally.UTI will be

replacing their Crystal Xcelcius system with this solution. Pyxis has developed utilities for data

migration to this system. The solution is on a .Net platform, and will operate on the Windowsoperating system. The database employed is Oracle 9i.Pyxis has already conducted a training

program for the users at UTI, and their personnel will be present at their premises, providing on-

site support, for a further period of three months.

According to R.V.S. Sridhar, VP - Treasury, UTI Bank, The system is user friendly, and thesoftware offers good portfolio management features and pricing capabilities required to meet the

increasingly complex requirements of customer business. The process of implementation started

in June 2006, and UTI will go live with the solution by mid-October, said Sunil Nikhar co-founder, &President, Pyxis Systems. Pyxis will offer full implementation, customization and

maintenance support services for the solution. It is a very complex system, and it took Pyxis

18months to develop it, added Nikhar.UTI Bank is the first customer for Pune based Pyxis and

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the company is into talks with some other large private banks for implementation

of RisKompass.

Axis Bank eShop NetBuy is developed by Axis Bank and is used by2 users of Software

Informer. The most popular version of this product among our users is 1.0. The product will soon

be reviewed by our informers.

Axis bank testing new mobile payment method

Axis Bank is in advanced stages of beta testing a new method of using mobile phones to makepayments. The service is expected to be fully launched in just three months. A pilot study

involving 500 customers of Axis Bank is currently being conducted at various locations. If this

mobile payment method is implemented, users can swipe their mobile phone and conduct various

transactions, which were earlier possible using the credit cards. Atom Technologies, a subsidiaryof the BSE-listed Financial Technologies(India) Ltd (FTIL), which runs the Multi Commodity

Exchange of India has innovated a technology, which will enable mobile payments. Atom card-a product developed by the company and the accompanying software can embed a user's credit

card data, over-the air like SMS into his mobile phone.

A 2-D bar code will store this credit card detail, which will be unreadable for the user and will

keep the credit card details safe even when the mobile phone is stolen or lost. Whenever,the mobile phone user has to make a payment he will have to provide his PIN details. After

embedding the credit card details into the mobile phone, the instrument can be used in place

of credit cards. Purchases can be made at a merchant establishment, which has the requisite

software to implement the transaction. The company has called this swiping model as 'opticalpayment' and has received a patent in US for this payment mode. A simple webcam is required

to read the 2-D bar code and can be implemented at merchant establishments at a very low cost.The software required to implement mobile transactions will be provided free of cost tomerchants, banks and customers by Atom. However, this technology will be available for JAVA

enabled phones at present. Many other companies like Bharti Airtel, Reliance Communications

and C-Sam were also looking at offering mobile commerce solutions, but the Reserve Bank ofIndia (RBI) is yet to give its clearance for a mobile wallet service in India.

Electronic Clearing Service (ECS Credit)

ECS Credit is an electronic clearing system that facilitates paperless transaction through an

offline system. Axis Bank facilitates ECS Credit at all ECS designated locations. We accept

the electronic file and arrange obtention of settlement date (date of credit to beneficiary account)from RBI/SBI/Local Clearing House as the case may be. The funds gets debited from

a centralized account and credit is accorded to the respective beneficiaries as per settlement

cycle. A detailed MIS about the transactions is provided to the customer.

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NEFT

To establish an Electronic Funds Transfer System to facilitate an efficient, secure, economical,

reliable and expeditious system of funds transfer and clearing in the banking sector throughout

India. The customer willing to avail the NEFT facility offered by us shall submit an "NEFT

Application Form" authorizing the sending bank to debit the sender's account and transferfunds to the beneficiary specified in the NEFT Application Form. The Beneficiary's account will

be credited on the same day by crediting the specified account of the beneficiary or otherwise

placing funds at the disposal of the beneficiary.

Real Time Gross Settelement (RTGS)

RTGS System is a payment settlement system that minimizes the credit risk in the prevalent

cheque clearing system. Under RTGS the funds are settled on a near real time basis across Banks

in different locations. Bank offers this immediate electronic fund transfer facility to RTGS

enabled bank branches across through the country its designated RTGS enabled locations.

ORGANISATION TRANSACTION PROCESSINGSYSTEM:

Team Inertia The way people do business has been changed significantly with the advent of the

Internet Revolution. Today customers have an option to choose from a plethora of options whileshopping for that favorite item.

Web Commerce or Ecommerce has witnessed a significant increase in revenue year on year. You

can now integrate this option to your website in the various Secured Payment Gateway Options

we have to offer. Technologies are the authorized reseller for Axis Bank Payment GatewayServices in the state. EBS ( E-Billing Solutions) is the Merchant Account providing company

partnered with Axis Bank that visualizes you how to become more competitive and help you to

make the changes to your online payment processing for risk free business.EBS "Payment Gateway

" is specifically designed to accommodate the increasing demand by e-commerce companies forsophisticated payment solutions to tap the enormous opportunities for global Internet transactions . The

system also includes several exciting new technologies that enable e-commerce businesses to

make the things more customized and backend more user friendly with advanced features andtechnical know-how.

How It Works.

Step 1: Customer select and adds item in the shopping cart And places the order on

your (merchant) website.

Step 2: Customer selects to pay via credit card .

Step 3: Customer is redirected through EBS Payment Gateway to Transaction Processing Bank.

Step 4: Customer enters credit card details on Secured Payment page.

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Step 5: Credit card information is transmitted securely to the corresponding bank for approval.

Step 6: Corresponding bank sends appropriate information to the transaction Processing bank.

Step 7: The result is forwarded to EBS (via the Transaction Processing Bank).

Step 8: Customer receives a confirmation and is redirected to your (merchant) website.

Figure 1:

EBS has taken tremendous steps to secure your transactions from fraud, data piracy and hacking.

Some of the steps taken are as follows

An automated risk management system which triggers for all transactions and flags thetransaction for risk involved.

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High Risk Transactions are manually investigated by our intelligence team and Riskcontrol unit at your customers and their issuing banks working hours.

RMS parameters. Verisign 128 bit SSL encrypted. Hacker safe certification. PCI Audited servers. Robust secured highly strategic data servers and network design for sustaining heavy

traffic transaction and data load.

Extensive Network

Axis Bank has its own branches in various locations. Above this our arrangement with reputedcorrespondent banks covering more than900 locations ensures that most of your cheques are

covered under our network and the realization status can be known at the earliest.

Lower Interest Costs & Improved Liquidity

A dedicated HUB ensures that you receive funds in your designated account within transit timethereby reducing interest costs and improving your liquidity position.

Centralized Service Desk

A dedicated service desk has been started at our Centralized Collection and Payment HUB

(CCPH) to ensure that your queries are resolved quickly and efficiently. The Customers can

contact CCPH regarding any query about the MIS or the process flow.

Web CMS

Web CMS provides you with all the information at a click. Detailed MIS like location wise

collection and return, product-wise pooling, pooling in pipeline (due credit report) etc. can

be viewed and downloaded from web interface through internet.

Comprehensive MIS

We provide comprehensive MIS reports like daily report, transaction report future credits reports

and cheque returned unpaid report. On the payments side we provide daily paid - unpaid

status for the demand drafts, cheques or warrants issued by your Organization.

Mobile Alert Service

The CMS clients availing our collection products now have the facility to subscribe to Mobile

Alert Service for receiving alerts on registered mobile phone numbers instantly after the fundsare pooled. To avail this facility, please visit nearest CMS designated branch or log on to our

Web CMS to download the form online and send it to our branch where your account is

maintained.

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