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APPENDIX 1

TITLE OF PROJECT REPORT

A study on the effectiveness of using banks as a channel for selling life insurance products

Submitted by

RAHUL JAIN

in partial fulfillment for the award of the diploma

of

POST GRADUATE DIPLOMA IN MANAGEMENT (PGDM)

JAGAN INSTITUTE OF MANAGEMENT STUDIES

2012-2014 Batch

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APPENDIX 2

JAGAN INSTITUTE OF MANAGEMENT STUDIES

BONAFIDE CERTIFICATE

Certified that this project report “A study on the effectiveness of using banks as a channel for selling life insurance products” is the bonafide work of “RAHUL JAIN” of PGDM Batch 2012-2014 who carried out the project work under my supervision.

SIGNATURE SIGNATURE

<<Name>> Mr. Sameer Arora

SUPERVISOR SUPERVISOR

<<AcademicDesignation>> Branch Head

<<Full address of the Dept & College>> Ground Floor , Ward No. 38 ,

Bahadur Residency , Bamor Gate

DATE Tonk -304001 ( Raj.)

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Acknowledgement

This Internship has been a very good experience for me in the way that it has given me the chance to understand the real world outside the classroom. I’ve learnt a lot about the office environment and my interpersonal skills & self-confidence have improved significantly.

Firstly, I express my deep sense of gratitude to my honorable advisor Dr. Mr. Devendra Sir for his endeavor approach and outstanding supervision by which it has been possible for me to make a good combination of theoretical & practical knowledge in preparing this report.

I forfeit my respect to Mr.Sameer Arora (B.H.) under whom I have learnt a lot of practical knowledge about life insurance products as well as general banking. I am also grateful to other employees of AXIS BANK of Tonk Branch as well as Mr. Pradeep Sir, (Branch Operation Manager) for cooperation and direction in getting necessary information.

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Table of Contents

Page No

1. Background………………………………. 61.1 Benefits of Bancassurance ……………………… 71.2 Indian Insurance Sector…………………………. 81.3 Impact of opening up of Insurance Sector………. 91.4 Research Objective………………………………. 91.5 Methodology ……………………………………. 101.6 Data Collection Method…………………………. 101.7 Need For the Study……………………………… 11

2. Introduction About Banking……………. 122.1 Definition of Banking…………………………… 132.2 Evolution of Banks in India…………………….. 142.3 Banking after Independence…………………….. 152.4 Current Scenario………………………………… 182.5 Interest Rate Policy……………………………… 182.6 New Generation Banking……………………….. 19

3. Introduction Of AXIS Bank…………….. 203.1 Company Profile………………………………… 213.2 Business Overview………………………………. 233.3 Board Of Directors………………………………. 243.4 Mission & Vision………………………………… 253.5 Core Values………………………………………. 253.6 Award & Recognition……………………………. 263.7 Key Milestones…………………………………… 273.8 Products…………………………………………... 303.9 About Insurance Partnership……………………… 323.10 Life Insurance Plans……………………………… 33

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4. Data Collection & Techniques…………… 444. 1 Sampling……………………………………….. 454.2 Date Source……………………………………... 464.3 Sampling Techniques…………………………… 47

5. Data Analysis & Interpretation…………. 48

6. Comparison Between Axis Bank & Other Banks……………………………………... 59

7. Observation / Suggestions & Conclusion… 65

8. Bibliography………………………………. 69

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Background:

The rapid growth and globalization of financial markets is one of the most significant developments in the world economy. This development has far reaching consequences, not only for financial markets per se but the growth and direction of world business. Financial deregulation and innovations have changed the whole structure and functioning of financial markets. The financial services environment has been undergoing major changes. The Financial Companies are searching for highly efficient distribution systems due to increasing competitive pressures and the difficulty in sustaining product differentiation. These have led to price competition, emphasis on reduction of marketing costs, product differentiation and the extensive utilization of new channels. Not surprisingly, distribution has become a critical element in marketing strategy for selling of financial products. It has been gaining a more prominent role among marketing variables and has become a major source of competitive advantage.

With the opening up of Insurance sector in India, a new opportunity has emerged For Insurance sector and Banking Sector. This has provided an opportunity to both the sectors for enhanced sales and source of additional income. It is the rise of a New dawn that has brought with it new opportunities. From Innumerable insurers to affordable and quality cover for the consumers, from increase in distribution channels to incorporating information technology measures, from net selling to bringing about increased transparency – its all there.

The Insurance agent is no more the only distribution channel today for insurance products. Increase in distribution channels has among others also seen the concept of Bancassurance taking roots in India and it is emerging to be a viable solution to mass selling of insurance products.

The Financial Sector Reforms introduced after the recommendations of First Narasimham Committee, the contemporary financial landscape has been reshaped. Banks, in particular, stride into several new areas and offer innovative products viz Merchant Banking, Lease and Term finance, Capital / Equity Market related activities, Hire-Purchase, Real Estate finance and so on. Thus, present day banks have become far more diversified than ever before. Therefore, their entering into insurance business is only a natural corollary and is fully justified too as insurance is another financial product required by the bank customers.

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Bancassurance simply defined, is distribution of insurance products through network of Banks. Many Banking Institutions and Insurance Companies have found Bancassurance to be attractive and profitable which complements to the core business. Bancassurance encompasses terms such as ‘Allfinanz (in German). This concept gained importance in the growing global insurance industry and its search for new channels of distribution. Banks with their geographical spread and penetration in terms of customer reach of all segments have emerged as viable source for the distribution of insurance products.

The Insurance Regulatory and Development Authority (the regulatory authority for insurance business in India) refers Bancassurance as “banks acting as Corporate Agents for insurers to distribute insurance products”. Literature on bancassurance does not differentiate between the selling of Life Insurance Products or Non-Life Insurance products through Bancassurance channel. Accordingly, in this paper “Bancassurance” is defined to mean banks dealing in insurance products of both life and non-life type in any forms.

Benefits of Bancassurance:

Bancassurance is beneficial to all the concerned viz. Banking Sector, InsuranceSector and the customers. It provides an opportunity to banks for productdiversification and a source of additional income. The enormous trust that the banks command in the minds of the public is an important reason why Insurance Companies seek to enter into wide ranging banking partnerships. The banks in turn, find that the customers appreciate the provision of integrated financial services at the bank branches, which in turn builds better customer loyalty and retention levels. Insurance Companies see bancasurance as a tool for increasing their market Penetration and premium turnover. The customer sees bancassurance as a bonanza In terms of reduced price, high quality product, professional guidance and delivery at doorsteps. The Insurance Companies and Banks together find that their collaboration at providing a package of financial services not only benefits customers but also maximizes their profits.

Benefits to the Banks: Use of existing infrastructure. Proximity to customers & large database. Additional channel for generation of fee based revenue. As the profits

are declining in the traditional banking, banks need additional noninterest income for their survival. It has been estimated that there is a hidden goldmine of Rs. 1,80,000 crores of Annual Premium Income.

Optimizing manpower utilization. Strengthening customer relationship.

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Benefits to the Insurance Company

Ready-made distribution network – 68,000 bank branches. Access through a vast customer base, whole financial profile is known

30 Crores retail banking customers. Economy in distribution cost. Banks pivotal medium to lift level of insurance penetration in the

country.

Benefits to the Customers

Economy in cost of insurance. High skilled and trained executives to bring them the benefits of insurance. Integrated financial service s under one roof. Banks can meet important set of consumer needs.

Indian Insurance Sector :

The emergence and spread of Bancassurance has been one of the most significant developments in the Retail Financial Services Sector in India. The Indian Insurance Industry is growing very fast. Banks and Insurance Companies see Bancassurance as the answer to the Indian retail financial industry’s future income. The banks in India have a client base of close to 120 Million and therefore are an ideal case for carrying bancassurance forward. A unique aspect will be predominance of rura l bank branches in sales processes and the closeness of the bank staff with customers in general in the rural pockets. In order to capitalize on this new opportunity, several banks have established Joint-Venture Companies with leading insurance majors of the world.

The Indian Insurance Industry upto April 1, 2000, comprised mainly two stateinsurers, Life Insurance Corporation of India to conduct Life Insurance business and General Insurance Corporation of India to transact the non-life insurance business. A single company cannot take up both life and non-life insurance activities in a competitive way as per law.

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Impact of opening up of Insurance Sector

As anticipated and envisaged, the opening up of the sector has had several positives for the Indian Insurance Sector. IRDA was established in the year 2000 as an exclusive Regulatory Authority for the insurance sector through the enactment of IRDA Act, 1999. A number of amendments were brought in various insurance related statutes viz. Insurance Act 1938, LIC Act 1956 and General Insurance Business Nationalisation Act 1972. The progress in the overall developments in the insurance sector was swift and more prominent after the establishment of IRDA. The four public sector non-life insurance companies were de-linked from being subsidiary of the General Insurance Company of India. The upshot of these developments was the breakage of monopoly by public sector in the insurance sector paving the way for the entry of private entities into the insurance market and the era of competition set in with availability of wide range of insurance products in the market than ever.

During the past few years, after the initial phase of privatization, the new entrants have been busy developing new products, setting up the network, enrolling agents, forming alliances with companies, banks and other intermediaries for distribution of products, establishing systems for delivery of products, instituting risk management systems to facilitate underwriting to facilitate underwriting and the like. In the current ongoing phase, the companies are expected to consolidate their operations and further enhance their market share with the infrastructure that has already been created. The new life insurers have been infusing capital periodically to maintain their solvency positions.

The nest few years will be critical for all the insurance companies, as the sector is poised for higher growth. While the nationalized insurers will be endeavoring to protect their market share, the new entrants will be vigorously aiming to further improve their market standing. Each company in the industry will focus on harnessing its strengths and improving its competitive position.

Research Objectives:

1. To examine whether or not Indian retail bank customers are aware of insurance selling through bank branch networks and whether they are willing to purchase insurance products from their banks.

2. To investigate the factors that influence Indian customer’s attitude towards banks and insurance companies in relation to the provision of insurance products.

3. To identify the reasons that Indian customers would buy insurance products from banks and the specific insurance products that could be cross-sold by banks.

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Methodology:

Statement of the problem:

Globally, cross selling is a major component of the business of banks. In India too, it is

catching up fast with several of the banks. Axis Bank has made headway in selling the

insurance products along with the banking products. Cross selling would help the banks

by boosting their fee income. So there is a scope to study how the concept of

bancassurance has been applied in Axis Bank.

Scope of the Project:

The study is limited to Axis Bank , Tonk Branch.

The study will be conducted on the basis of past year’s performance of the bank.

Limitations of the study:

Detailed information is not provided by the bank staff because of the privacy policy of

the bank.

Data collection method:

For the purpose of study the data has been collected from two sources mainly:

1) Primary Data.

2) Secondary Data.

PRIMARY DATA:

Primary Data is the data collected for the first time for the purpose to solve the

problem at hand. In this study the primary data is collected through questionnaire &

Personal Interview.

SECONDARY DATA:

The major sources of secondary data are as follows,

1. WEBSITES.

2. Broachers

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Need for the study:

Squeeze on margins of fund based revenue has taken place in the banks now. Growing

disintermediation by corporate borrowers, better inventory practices that have reined in

working capital needs and a liberalized external borrowing regime coupled with

dwindling international rates have eaten fund incomes of the bank. Banks have felt a

need to offset these through growing fee incomes particularly from retail side. So there

is a need to study how the bank is trying to increase its fee based revenue.

Staff retention and motivation is another big challenge for the banks now. While the

opportunities in other sectors are increasing, to retain the employees, bank must provide

diversification in the work. So there is a need to study how the bank is using the activity

of bancassurance to motivate the employees to remain in the bank.

Universal Banking- approach to provide all financial products under one roof; is another

need for the study. It is nothing but integration of the financial services industry in terms

of banking, insurance and securities business. The banks have been looking towards

bancassurance, a mechanism of distribution of insurance products through a bank’s

network, as a step towards universal banking. Moreover, hawking of insurance products

by banks is seen as a logical step for expanding their business and improving the bottom

line.

Optimum utilization of infrastructure and resources to

maximize revenue has also created the need for the study. It is necessary to study how

the bank is optimally utilizing the resources and infrastructure through the activity of

bancassurance.

Customer retention in the face of competition is very difficult

for the banks. If the bank provides any additional services along with the usual banking

services then only it can survive in the era of competition. So there is a need to study

how the bancassurance is helping the bank to retain its customers.

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INTRODUCTION

ABOUT BANKING

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DEFINITION OF BANKING

The Banking Regulation Act, 1949 defines the term ‘Banking’ as “accepting, for

the purpose of lending or investment, of deposits of money from the public,

repayable on demand or otherwise, and withdrawable by cheque, draft, order

or otherwise” [Section 5 (b)].

A banking company must perform two essential functions, viz., (a) accepting of

deposits, and (b) lending or investing the same. If the purpose of acceptance of

deposits is not to lend or invest, the business will not be called banking business.

Accordingly, any company which is engaged in the manufacture of goods or carries

on any trade and which accepts deposits of money from the public merely for the

purpose of financing its business are not a banking company.

The phrase ‘deposits of money from the public’ is quite significant. The banker

accepts deposits of money and not of anything else. The word ‘public’ implies that a

banker accepts deposits of money from any one who offers his/her money for such

purpose. The banker, however, can refuse to open an account in the name of a person

who is considered as an undesirable person, e.g., a thief, a robber, etc. Acceptance of

deposits should be the major business of a banker.

The definition also specifies the time and mode of withdrawal of the deposits. The

deposited money should be repayable to the depositor on demand made by the latter

or according to the agreement reached between the two parties. The essential feature

of banking business is that the banker does not refund the money on his own accord,

even if the period for which it was deposited expires. The depositor must make a

demand for the same. The Act also specifies that the withdrawal should be effected

through an order, cheque, and draft or otherwise. It implies that the demand should

be made in a proper manner and through an instrument in writing and not merely by

verbal order or a telephonic message.

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The underlying principle of the business of banking is that the resources mobilised

through the acceptance of deposits must constitute the main stream of funds which

are to be utilized for lending or investment purpose. The banker is, thus, an

intermediary and deals with the money belonging to the public.

Section 7 of the Banking Regulation Act, 1949 makes it essential for every company

carrying on the business of banking in India to use as part of its name at least one of

the word- bank, banker, banking or banking company.

EVOLUTION OF BANKS IN INDIA

Ancient Hindu scriptures provide enough evidence of the existence of money lending

business in India. Mahajans, Shroff, Sahukars, etc. were enjoyed in banking

business. In the beginning of the 18th century, the East India Company set up a few

commercial banks on moderns lines. In 1770, first Indian bank known as the Bank of

Hindustan was started and was closed down twenty years later. Later, the East India

Company started three Presidency banks with Government participation. These were:

the Bank of Calcutta (1806), the Bank of Bombay (1840) and the Bank of

Madras (1843). These banks had the financial participation by the Government also.

During the 18th century, some other banks were also opened by Agency Houses in

Madras and Calcutta. All these banks failed. Since all the banks emerged due to

Agency Houses failed, the need of banking regulation in India was seriously felt. As

a result, Companies Act, 1833 was brought into force. The impact of the Agency

Houses got slowly reduced.

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Allahabad Bank came into existence in 1865 and Alliance Bank of Simla in 1875.

The first purely Indian joint stock bank known as the Oudh Commercial Bank was

set up in 1880 and the Punjab National Bank was launched in 1894. The Swadeshi

movement in the country in 1906 encouraged the Indian entrepreneurs to start many

new banks. There were as many as 648 commercial banks in India by the end of

1947. As many as 161 banks failed in quick succession during 1913-1914 and the

people’s faith in the banking system was shaken. Thus, there was a great need of an

institution to control and regulate banking in the country. As a result, the Reserve

Bank of India was set up in 1935 for regulating the banks in the country and to act

as a banker to the Government.

In 1923, the three Presidency banks were amalgamated into Imperial Bank of India.

This bank played an important role in the economy of the country. After,

independence, it was nationalised in 1955 and renamed as the State Bank of India.

The State Bank of India opened a large number of branches in rural and semi-urban

areas.

BANKING AFTER INDEPENDENCE

When the country attained independence in 1947, there were 648 commercial banks

with 4,819 branches in India. Because of frequent failure of banks in the country, the

Government of India decided to regulate and reform the banking system. The

Reserve Bank of India was nationalised in 1949 and the Banking Companies Act

was passed in the same year. The name of this Act was later changed to Banking

Regulation Act in 1965. Enactment of the Banking Companies Act was an

important landmark for the smooth progress of commercial banks in the country.

State Bank of India was created by nationalisation of the Imperial Bank of India in

1955. The State Bank of India has opened a large number of branches in rural and

semi-urban areas and has launched several schemes for the farmers, artisans and

small scale units.

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A scheme of Social Control on banks was enforced through statutory measures with

effect from 1st February, 1969. The banking industry saw a revolution after 14 major

commercial banks were nationalised in June, 1969. More than 90% of the bank

deposits came under the control of the Government. Preference was given to rural

areas while opening branches. Targets of lending were also fixed for agriculture,

artisans, unemployed youth, small scale units, etc.

Regional Rural Banks scheme was launched on 2nd October, 1975. Six more

leading commercial banks were nationalised in 1980. As a result of the

recommendations of Sivaraman Committee, Agricultural Credit Department, Rural

Planning and Credit Cell and Agricultural Refinance and Development Corporation

were combined together to set up National Bank for Agriculture and Rural

Development (NABARD) in July 1982. Later, the Export and Import Bank of India

(Exim Bank) and the National Housing Bank were set up in 1948 and 1988

respectively.

Liberalisation in the 1990s

In the early 1990s, the then Narasimha Rao government embarked on a policy

of liberalisation, licensing a small number of private banks. These came to be known

as New Generation tech-savvy banks, and included Global Trust Bank (the first of such

new generation banks to be set up), which later amalgamated with Oriental Bank of

Commerce, UTI Bank (since renamed Axis Bank),ICICI Bank and HDFC Bank. This

move, along with the rapid growth in the economy of India, revitalised the banking

sector in India, which has seen rapid growth with strong contribution from all the three

sectors of banks, namely, government banks, private banks and foreign banks.

The next stage for the Indian banking has been set up with the proposed relaxation in the

norms for Foreign Direct Investment, where all Foreign Investors in banks may be given

voting rights which could exceed the present cap of 10%,at present it has gone up to

74% with some restrictions.

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The new policy shook the Banking sector in India completely. Bankers, till this time,

were used to the 4–6–4 method (Borrow at 4%;Lend at 6%;Go home at 4) of

functioning. The new wave ushered in a modern outlook and tech-savvy methods of

working for traditional banks.All this led to the retail boom in India. People not just

demanded more from their banks but also received more.

INDIAN BANKING SYSTEM

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CURRENT SCENARIO

The industry is currently in a transition. On the one hand, the Public Sector Bank`s,

which are the mainstay of the Indian Banking System are in the process of shedding

their flab in terms of excessive manpower, excessive non Performing Assets

(NPA`S) and excessive governmental, while on the other hand the private sector

banks are consolidation themselves through mergers and acquisitions.

The private players however cannot match the Public Banker`s great reach great size

and access to low cost deposits. Therefore one of the means for them to combat the

Private Sector Bank`s has been through the merger and acquisition (M & A) route.

Over the last two years, the industry has witnessed several such instances. Private

sector Banks have pioneered internet banking, phone banking, anywhere banking,

mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined

various other services and integrated them into the mainstream banking arena, while

the Public Sector Banks are providing safety to their money kept in bank.

Meanwhile the economic and corporate sector slowdown has led to an increasing

number of banks focusing on the retail segment. Banks with their phenomenal reach

and a regular interface with the retail investor are the best placed to enter into the

insurance sector. Banks in India have been allowed to provide fee-based insurance

services without risk participation invest in an insurance company for providing

infrastructure and services support and set up of a separate joint – venture insurance

company with risk participation.

INTEREST RATE POLICY:

As parts of its anti-inflationary policy, RBI has followed a strict policy of control and

regulation of Interest Rates, deposits rates of banks, Lending rates- Infact all kind of

interest rates were subject to strict control and regulation by RBI. Since 1988, RBI

reduces the ceiling rate on all bank advances. Subsequently the ceiling on interest

rate on inter-bank term deposits, bills rediscounting and inter-bank participation was

removed.

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The rate of interest was permitted to be determined by market forces, following the

recommendations of Narassimham Committee in November, 1991.

The present position of interest rate regulation is:

RBI has continuously reduced the bank rate from 10% (1990-91) to 8.25%

(w.e.f. close of business of 03/05/2013).

The interest rates on domestic deposits have been de-controlled.

Lending rates of banks have also been largely de-controlled.

NEW GENERATION BANKING

The liberalize policy of Government of India permitted entry to private sector in the

banking, the industry has witnessed the entry of nine new generation private banks.

The major differentiating parameter that distinguishes these banks from all the other

banks in the Indian banking is the level of service that is offered to the customer.

Verify the focus has always been centered on the customer – understanding his

needs, preempting him and consequently delighting him with various configurations

of benefits and a wide portfolio of products and services.

The popularity of these banks can be gauged by the fact that in a short span of time,

these banks have gained considerable customer confidence and consequently have

shown impressive growth rates. Today, the private banks corner almost four per cent

share of the total share of deposits. Most of the banks in this category are

concentrated in the high-growth urban areas in metros (that account for

approximately 70% of the total banking business). With efficiency being the major

focus, these banks have leveraged on their strengths and competencies viz.

Management, operational efficiency and flexibility, superior product positioning and

higher employee productivity skills.

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INTRODUCTION OF AXIS BANK

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COMPANY PROFILE

Axis Bank is the third largest private sector bank in India Axis Bank offers the entire spectrum of financial services to customer segments covering Large and Mid- Corporates, SME, Agriculture and Retail Businesses.

The Bank has a large footprint of 1,947 domestic branches (including extension counters) and 11,245 ATMs spread across 1,263 cities and towns in the country as on 31st March 2013. The Bank also has 7 overseas branches / offices in Singapore, Hong Kong, Shanghai, Colombo, Dubai, DIFC – Dubai and Abu Dhabi.

Axis Bank is one of the first new generation private sector banks to have begun operations in 1994. The Bank was promoted in 1993, jointly by Specified Undertaking of Unit Trust of India (SUUTI) (then known as Unit Trust of India),Life Insurance Corporation of India (LIC), General Insurance Corporation of India (GIC), National Insurance Company Ltd., The New India Assurance Company Ltd., The Oriental Insurance Company Ltd. and United India Insurance Company Ltd. The shareholding of Unit Trust of India was subsequently transferred to SUUTI, an entity established in 2003.

With a balance sheet size of Rs.2,85,628 crores as on 31st March 2012, Axis Bank is ranked 9th amongst all Indian scheduled banks. Axis Bank has achieved consistent growth and stable asset quality with a 5 year CAGR (2007-12) of 31% in Total Assets, 30% in Total Deposits, 36% in Total Advances and 45% in Net Profit.

Subsidiaries

The Bank has set up six wholly – owned subsidiaries:

Axis Securities and Sales Ltd. (Since renamed Axis Capital Ltd. ) Axis Private Equity Ltd. Axis Trustee Services Ltd. Axis Asset Management Company Ltd. Axis Mutual Fund Trustee Ltd. Axis U.K. Ltd.

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Promoters

Axis Bank Ltd. has been promoted by the largest Financial Institutions of the country, UTI, LIC, GIC and its subsidiaries. The Bank was set up in 1993 with a capital of Rs. 115 crore, with UTI contributing Rs. 100 crore, LIC - Rs. 7.5 crore and GIC and its four subsidiaries contributing Rs. 1.5 crore each.

Capital Structure

The Bank has authorized share capital of Rs. 500 crores comprising 500,000,000 equity shares of Rs.10/- each. As on 31st March, 2012 the Bank has issued, subscribed and paid-up equity capital of Rs. 413.20 crores, constituting 413,203,952 shares of Rs. 10/- each. The Bank’s shares are listed on the National Stock Exchange and the Bombay Stock Exchange. The GDRs issued by the Bank are listed on the London Stock Exchange (LSE).

Distribution Network

The Bank has a network of 1947 domestic branches (including extension counters) and 11,245 ATMs across the country, as on 31st March 2013, the network of Axis Bank spreads across 1,263 cities and towns, enabling the Bank to reach out to a large cross-section of customers with an array of products and services. The Bank’s overseas network consists of 4 branches in Singapore, Hong Kong, DIFC – Dubai and Colombo and 3 Representative offices at Shanghai, Dubai, and Abu Dhabi.

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Business overview:

RETAIL BANKING BUSINESS BANKING CORPORATE CREDIT TREASURY INTERNATIONAL BANKING SMALL AND MEDIUM ENTERPRISES INFORMATION TECHNOLOGY AGRICULTURE FINANCIAL INCLUSION HUMAN RESOURCES

FINANCIAL INCLUSION

The Bank perceives financial inclusion (FI) not as a corporate social responsibility or a regulator driven initiative but as a large business opportunity that lies untapped in the rural and unexplored section of the urban market. Till March 2012, the Bank has opened over 4.4 million No-Frills accounts in over 7,607 villages through a network of 15 Business Correspondents and nearly 6,000 customer service points. The Bank has a strong presence in the Electronic Benefit Transfer (EBT) space and has covered around 6,800 villages across 19 districts and 9 states till date with over 3.7 million beneficiaries.

In the urban space, the Bank has launched financial inclusion initiatives in Bangalore, Chennai and Delhi targeting migrant labourers, slum dwellers and other under-banked sector of the urban population and has opened over 3.5 lac No Frill accounts. The Bank’s financial inclusion efforts are not merely restricted to launching of financial inclusion initiatives and sourcing basic No Frill accounts, but to also promote the savings habits and enable the customers to obtain customized solutions for their financial needs.

The Bank also has a range of other customised products for this customer segment like different variants of Axis Uday No Frills Savings Accounts, Chhota RD, Chhota FD, and Chhota SIP. The Bank has been one of the first few banks to have tied-up with telecom companies to offer remittance led financial inclusion services on the mobile platform.

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BOARD OF DIRECTORS

NAME DESIGNATION

DR. SANJIV MISRA CHAIRMAN

SHIKHA SHARMA MD & CEO

K.N. PRITHVI RAJ DIRECTOR

V.R. KAUNDINYA DIRECTOR

S.B. MATHUR DIRECTOR

PRASAD MENON DIRECTOR

RABINDRANATH BHATTACHARYYA

DIRECTOR

PROF. SAMIR K BARUA DIRECTOR

A.K. DASGUPTA DIRECTOR

SOM MITTAL DIRECTOR

IREENA VITTAL DIRECTOR

ROHIT BHAGAT DIRECTOR

VARADARAJAN SRINIVASAN ED CORPORATE BANKING

SOMNATH SENGUPTA ED, CORPORATE CENTER

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MISSION AND VISION

Customer Service and Product Innovation tuned to diverse needs of individual and corporate clients.

Continuous technology up gradation while maintaining human values.

Progressive globalization and achieving international standards.

Efficiency and effectiveness built on ethical practices.

CORE VALUES

Customer Satisfaction through Providing quality service effectively and efficiently

"Smile, it enhances your face value" is a service quality stressed on:

Periodic Customer Service Audits

Maximisation of Stakeholder value

Success through Teamwork, Integrity and People

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Awards & Recognition

2012

Bank of the Year - Money Today FPCIL Awards 2012-13 Best Bank - CNBC-TV18 India’s Best Bank and Financial Institution Awards

2012 Best Bank - Runner Up - Outlook Money Awards 2012 Consistent Performer - India’s Best Banks – 2012 Survey by Business Today &

KPMG Fastest Growing Large Bank - Dun & Bradstreet - Polaris Financial Technology

Banking Awards 2012 Fastest Growing Large Bank - Businessworld Best Banks Survey 2012 Best Domestic Bond House - The Asset Triple A Country Awards 2012 - Our

Bank has been honored with this award for the third year in a row. India Bond House of the year - IFR ASIA - Country Awards 2012 Deal Maker of the Year in Rupee Bonds - Businessworld Magna Awards - India's

Best Deal Makers 2012 The Best Emerging Bullion Dealing Bank - 9th India International Gold

Convention-2011-12 Best Acquiring Institution in South Asia - Visa LEADER Award at Visa’s 2012

APCEMEA Security Summit, Bali Gold Shield for Excellence in Financial Reporting in the Private Banks category -

2011-12 - ICAI (Institute of Chartered Accountants of India)

2011

Bank of the Year – India –The Banker Awards 2011 Best Bank in the Private Sector - NDTV Profit Business Leadership Awards

2011 Best Bank - Outlook Money Awards 2011 The Best Domestic Bank – India - The Asset Triple A Country Awards 2011 Fastest Growing Bank - Bloomberg UTV Financial Leadership Awards 2012 Most Productive Private Sector Bank- FIBAC 2011 Banking Awards 3rd Strongest Bank in Asia -Pacific Region by Asian Banker Brand Excellence Award- 2011(BFSI Sector) - Star News Most Preferred Bank amongst retail consumers - CLSA survey on personal

banking trends Best Bond House India - 2011 by Finance Asia Best Risk Master award - (Private Sector Category) – FIBAC 2011 Banking

Awards

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2010

Best Debt House in India - Euromoney 2010 Best Domestic Debt House in India - Asiamoney 2010 Best Bond House in India - Financeasia 2010 Best New Private Sector Bank, Rank 2 - FE Best Banks Award 2010 The Best of Asia-Pacific’s Biggest Listed Companies- second year in a row -

Forbes Fab 50 The AssetAwards 2010:Best Domestic Bank, India The AssetAwards 2010:Best Domestic Bond House, India Overall Winner & Consistent Performer -(Large Banks Category) - Business

Today Best Bank Awards 2010 Fastest Growing Large Bank - Business World’s Best Banks Award 2010 Ranked No. 1 in "overall experience with bank staff" and "overall branch

facilities" by The Hindustan Times-MaRS Survey Report dated, 29th March, 2010

Key Milestones

2012

Opens the 10,000th ATM - Largest ATM network amongst private sector banks in India

Reached 2 lakh installed EDC machines – the highest for any bank in India Becomes the first Bank in the world to reach $2 billion loading on prepaid

Travel CurrencyCards

2011

Launches India travel card - India's first and only Indian currency prepaid travel card for foreign nationals

The Bank inaugurates Axis House, its new Corporate Office at Worli, Mumbai

2010

Opens it's 1000th branch at MET Bandra Reclamation, Mumbai

28

2008

Launches Platinum Credit Card, India's first EMV chip based card Open sits Dubai Representative Office

2006

Opens it's first international branch at Singapore The first Indian Bank to successfully issue foreign currency hybrid capital

in the international market Opens Representative Office in Shanghai Launches credit card business Opens the first of it's kind Priority Banking lounge in Pune

2005

Bank gets listed on London stock exchange The Bank and Visa International launch mobile refill facility for all Visa

card holders in India

2003

The Bank’s debit card base crosses the one million mark The Bank opens its ATM at Thegu near the Nathula Pass in Sikkim. This

ATM is at the highest altitude in India First Indian bank to launch the travel currency card The Bank opens its 1000th ATM

2002

Banks’ 100th branch opens at Tuticorin, Tamil Nadu The Bank opens an ATM at the GolDak-Khana, (New Delhi GPO), the

first ATM at any post office in the country Bank launches Corporate iConnect - the internet banking facility for

corporate customers

29

2001

Deposits base crosses Rs.10,000 crores

1994 Banks’ first branch inaugurated at Ahmedabad by Dr.Manmohan Singh,

then Hon'bleFinance Minister, Government of India

1993

Axis Bank (erstwhile UTI Bank) opens its Registered Office in Ahmedabad and Corporate Office in Mumbai

30

Products:

Accounts

Saving Account

Current Account

Salary Account

Deposits

Fixed Deposit

Tax Saver fixed Deposit

Recurring Deposits

Encash 24

Safe Deposit Locker

Loans

Home Loan

Car Loan

Education Loan

Personal Loan

Loan Against Shares

Loan Against Property

Loan Against Security

Loan Against Gold

31

Cards

Credit Cards

Debit Cards

Investments

Silver Mohurs

Mutual Funds

Demat Account

8% Saving Bonds

IPO Smart

Insurance

Life Insurance

Health Insurance

Home Insurance

Travel Insurance

Motor Insurance

32

About Insurance Partnership

Axis Bank has tied up with Tata AIG General Insurance Company Limited (‘Tata AIG’) as a Corporate Agent for General Insurance to offer you a range of General Insurance products from Tata AIG backed by its award winning Customer and Claims Services.

The Axis Bank-Tata AIG synergy will offer products for a range of insurance needs such as Motor, Health, Travel, Home for retail customers and Marine, Liability, Property etc for corporate customers. This association will leverage the strengths of both companies; to bring to Axis Bank customers a comprehensive suite of insurance products designed to protect all aspects of their lives.

Tata AIG is a joint venture between the Tata Group and AIG Inc. Tata AIG combines the Tata Group's values and pre-eminent leadership position in India and AIG's global presence as the world's leading international insurance and financial services organization.

Axis Bank has entered into a corporate agency agreement with Max Life Insurance Co. Ltd., one of the most reputed Life Insurance companies in India. Axis Bank is in line with its core values of customer centricity, ethics, transparency, teamwork and ownership has entered into this arrangement to distribute the best Life Insurance solutions to its customers. This arrangement also earmarks the first step to top-class customer service by setting up dedicated Max Life Toll Free helpline and technology integration in bank branches to cater to Axis Bank customer queries who have bought Max Life insurance policies.

This arrangement is complemented by Max Life Insurance's flexible product suite, service excellence, and financial strength and internationally benchmarked training processes, which ensure that we are able to deliver the true value of life insurance to our customers. The product suite offered to our customers is based on the core needs of life insurance for an individual.

33

LIFE INSURANCE PLANS:

Max Life Life Gain Plus

Max Life Whole Life Participating

Max Life Life Partner Plus

Max Life Maxis

Max Life Platinum

Max Life Flexi Fortune

Max Life Shiksha Plus II

Max Life College Plan

Max Life Fast Track Plan

Max Life Guaranteed Monthly Income Plan

34

Max Life Life Gain Plus:

Max Life Life Gain Plus® 20/25 Participating Plan provides a unique opportunity where you could just relax without worrying about your lifestyle. It's like an extended vacation from where you need not come back, because your wealth continues to grow and your

lifestyle is guaranteed.

Policy Features:

o Guaranteed Maturity Benefit – 110% of Sum Assured Plus accrued bonuses, if

anyo Guaranteed Death Benefit – 200% of Sum Assured Plus accrued bonuses, if any,

from 5th policy anniversary onwards.o Flexible Bonus Options

o Limited Premium Payment Term

Maturity Benefits

Upon maturity of the policy, we shall pay you 110% of the Sum Assured together with Sum Assured of all paid up additions (if any)

Death Benefits Upon death of life insured in the first five years of policy enforcement – 100%

Sum Assured plus sum assured of paid up additions, if any Upon death of life insured after five years of policy enforcement – 200% of the Sum

Assured plus sum assured of paid up additions, if any

Criteria Max Life Life Gain Plus 20 Participating Plan

Max Life Life Gain Plus 25 Participating Plan

Entry age 18 years to 55 years 18 years to 50 years

Maturity age 75 years 75 years

Policy Term 20 Years 25 Years

Premium Payment Term 6 / 10 years 6 / 10 / 15 years

Minimum Sum Assured Rs. 50,000 Rs. 50,000

Maximum Sum Assured No limit, subject to underwriting

No limit, subject to underwriting

35

Max Life Whole Life Participating Plan :

Max Life Whole Life Participating Insurance is a Traditional Plan which offers an insurance cover till age 100. This plan is designed to provide you a lifetime of security and provides you with the comfort that your near and dear ones will continue to live their lives in comfort without financial worries even when you are not around.

Key Benefits and Features

Insurance cover up to age 100 Option to Participate in Progressive Bonuses Tax benefits on premiums and maturity proceeds Additional protection through riders

Bonus Options

From third policy year onwards, you may be eligible for bonus, and these will be paid out based on your choice of bonus option:

Cash Bonus: Bonuses declared paid to policyholder in cash Premium Offset: Bonuses declared can be used to pay a part of the premium Paid Up Additions: Bonuses declared can be used to buy single premium

endowment benefit, which inturn can increase the Sum Insured and this will mature along with base policy

Death benefit

On death of Life Insured upon attaining ten (10) years of age, an amount equal to Sum Assured along with Sum Assured of paid-up additions, if any, is payable

On death of the Life Insured before attaining ten (10) years of age, there is refund of all the premiums received, together with interest at the rate of four (4) percent per annum, compounded annually, subject to maximum of Sum Insured.

Features Specification

Minimum Entry Age of Life Assured (Last Birthday) 91 days

Maximum Entry Age of Life Assured (Last Birthday) 70 years

Expiry Age 100 years

Minimum Sum Assured Rs 1 Lac

Maximum Sum Assured Rs 10 Crores

36

Max Life Life Partner Plus Plan:

Max Life Life Partner™ Plus (Limited Pay Endowment to Age 75 Plan) is truly a plan that will be with you in the later years. This plan would help you ensure that you have a carefree retirement through an assured return of 212.5% of Sum Assured by the age 75. It offers support in your golden years, with a steady income to fuel your dreams, independence, and pride.

Key Benefits and Features

Guaranteed money back of 7.5% of initial Sum Assured each year from age 61 to 75 of Life Insured

Limited Premium payment terms – 3/7/10/20 years Additional protection through riders

Bonus Options

From third policy year onwards, you may be eligible for bonus and these will be paid out, based on your choice of bonus option

Cash Bonuses: Bonuses declared paid to policyholder in cash Premium Offset: Bonuses declared can be used to pay a part of the premium Paid Up Additions: Bonuses declared can be used to buy single premium

endowment benefit, which inturn can increase the Sum Insured and this will mature along with base policy

features Specification

Minimum Entry Age of Life Assured (Last Birthday)

91 days

Maximum Entry Age of Life Assured (Last Birthday)

55 years

Maximum Maturity Age 75 years

Minimum Sum Assured Rs. 50,000

Maximum Sum Assured Unlimited, subject to underwriting

Living Benefit Between ages 61 to 75 of life insured, amount equal to 7.5% of initial Sum Assured will be paid every year.

Benefit at Maturity 100% of Sum Assured together with Sum Assured of Paid-Up Additions, (if any).

Death Benefit 1. Death before age 10 yrs.: Refund of Premium with interest @ 3% per annum, subject to a maximum of Sum Assured chosen.

2. Death after age 10 yrs. but before age 60 yrs.: Sum Assured together with Sum Assured of Paid Up Additions, (if any).

3. Death after age 60 yrs.: Sum Assured (without deducting any living benefit that may have already been paid) together with Sum Assured of Paid Up Additions, (if any).

37

Max Life Maxis

Max Life Maxis, a unit-linked life insurance plan that helps you in planning your finances better by balancing the equity and debt exposure automatically, so that your future years are the best years of your life.

Key Benefits

Wealth Creation with safety of funds, Shorter Premium Payment Terms,

Flexibility of Protection Cover

Features Specification

Entry Age (Minimum/Maximum)

18 years to 55 years (Age last birthday)

Maximum Age at Maturity 70 Years

Sum Assured multiples

Age (Years) Sum Assured Multiple

18-34 years 10/15/20 times Annual Premium

35 to 44 years 10/15 times Annual Premium

45 to 55 years 10 times Annual Premium

Premium Payment Term & Policy Term

Premium Payment Terms: 7 Years and 10 Years Policy Term: 15 years fixed

Minimum Annual Premium Rs. 35,000

Maximum Annual Premium No Limit (subject to underwriting)

Premium payment Mode Annual Mode Only

Death Benefit Sum Assured + Fund Value

Maturity Benefit Fund Value

Investment Options Six Fund Options + Dynamic Fund Allocation

Riders Offered * Max Life Personal Accident Benefit Rider(UIN: 104C007V02)Max Life Dread Disease Rider (UIN : 104C010V02)

38

Max Life Platinum Protect Plan

Max Life Platinum Protect Plan is designed especially keeping in mind your requirements. A comprehensive solution that fulfills protection needs for you and your family.

Key Benefits and Features

Cost-Effective Term Plan - One of the most competitive rates for life cover in the industry. In case of death, your family will get the sum assured to take care of their needs.

Low Premium Rates for leading a healthy lifestyle - Low premium rates for non-smokers

Comprehensive Cover - Ensure you are ready for any eventuality by opting for Max Life Dread Disease Rider (UIN – 104C010V02) and/or Max Life Personal Accident Benefit Rider (UIN – 104C007V02).

Medical Report - Comprehensive medical report at the time of policy issuance

Death Benefit :

An amount equal to Sum Assured will be paid to the nominee in case of death of the Life Assured.

High Sum Assured Discounts

On a sum assured of Rs. 50 Lacs or more, there is a discount of Rs. 15 per lac sum assured

Reduced Insurance Cover

If Premiums have been paid for at least 15 consecutive Policy Years beginning with the Effective Date and the Policyholder discontinues payment of further Premium(s), the Policy will continue with a “Reduced Insurance Cover” as per the formula shown below.

Reduced Insurance Cover = [((Policy Year* – 1) / Policy Term) – 25%] * Sum Assured

Features Specification

Minimum Entry Age of Life Assured (Last Birthday)

18 years

Maximum Entry Age of Life Assured (Last Birthday)

60 years

Maximum Cover Ceasing Age

75 years

Sum Assured Minimum: Rs. 25 lacs, subject to a minimum premium of Rs. 5,000 Sum assured available in multiples of 5 lac only Maximum: No Limit

39

Policy Term 10, 15, 20, 25 or 30 years

Max Life Flexi Fortune

Features & Benefits

Comprehensive protection through high sum assured multiples Systematic Transfer Plan: A feature intending to provide you the benefit

through market volatility as the average entry price in the Growth Super Fund will be the average of all investment done on the Growth Super Fund over the policy year. Every month 1/12 of the initial units purchased shall automatically switch from Secure Plus Fund to Growth Super Fund to make the most of market volatility

Progressively increasing sum assured for increasing liabilities without additional underwriting

Choice of premium payment options to suit cash flow patterns Choice of seven well managed funds for investors of different risk profiles Flexibility to make partial withdrawals to meet unplanned expenses

Protection

Let your life cover keep pace with inflation:

10% enhancement to life Cover – each year with no increase in premium, starting from year 2 till end of policy tenure (Progressive Auto Cover Enhancement – PACE)

Get added protection with Max Life Personal Accident Benefit Rider and Max Life Dread Disease Rider.

Particulars Features

Minimum/ Maximum Age of Life Insured at Entry (Last Birthday)

7 years - 50 years

Premium payment term / Policy Term 5 pay / 10 years term 10 pay / 15 years term 15 pay / 20 years term

Maximum Age of Life Assured at Maturity 70 years

Premium Payment Term Limited Pay

Minimum Annual Target Premium 5 pay/10 years term Rs. 50,000 p.a. for all modes 10 Pay/15 Pay variant Annual Mode: Rs. 24,000 p.a. Non-annual mode: Rs. 36,000 p.a.

Maximum Annual Target Premium Rs. 100,000 p.a. for all premium modes

Sum Assured Annual Premium X Cover Multiple Up to age 30: 10/20/30 times of ATP Age 31 to 40: 10/20 times of ATPAge 41 to 50: Fixed 10 times of ATP

40

Max Life Shiksha Plus II

Key Benefits and Features

University Education Pool: On the policy maturity date, the Fund Value is paid out to take care of higher education expenses for your child

Dynamic Fund Allocation: This investment strategy endeavors to safeguard your fund from capital erosion, as the policy progresses and nears maturity and enable you to plan your investment basis your life stage

Systematic Transfer Plan: A feature intending to provide you the benefit through market volatility as the average entry price in the Growth Super Fund will be the average of all investment done on the Growth Super Fund over the Policy Year. Every month 1/12 of the initial units purchased shall automatically switch from Secure Plus Fund to Growth Super Fund to make the most of the market volatility

Talent Enhancement Withdrawal: If you feel your child has some special talent which need further nurturing, you can withdraw specified amount as partial withdrawal from your Fund Value for aiding their skill enhancement

University Education Support: In case of death, all future premiums are funded by the Company

School Fee Support: In case of death, 10% of the Sum Assured is paid out immediately on death and thereafter 10% of the sum assured will be paid at each policy year anniversary to provide for school expenses subject to maximum of 100% of the sum assured but not beyond the original term of the policy. Expenses subject to maximum of 100% of the sum assured but not beyond the original term of the policy

Particulars Features

Eligibility Life insured should have a child (which may include legally adopted child) between age 0 to 18 years, to propose for this plan

Minimum/ Maximum Age of Life Assured at Entry (Last Birthday)

Regular pay: 21 years to 50 years Limited Pay: 21 years to 55 years Also, you must have a child

Policy Term 5 pay - 10 years term or 15 to 20 years, pick a term, Regular Pay

Maximum Age of Life Assured at Maturity 65 years (For both Regular and Limited Pay option)

Premium Payment Term Regular Pay: Pick a term from 15 to 20 years or 5 pay - for 10 year term

Premium payment Mode All Modes. Non-annual modes through ECS only

Minimum Annual Target Premium Regular Pay Annual Mode: Rs. 24,000 Non-annual mode: Rs. 30,000 Limited PayAll modes minimum Premium is Rs. 50,000

Sum Assured Annual Premium X Cover Multiple Cover multiple: 20 (fixed)

41

Max Life College Plan

Key Benefits and Features

Protect your child’s college fund against any eventuality:

In Max Life College Plan, a Money Back Life Insurance Plan, the policy continuance is assured in case of Payor* meeting with death or Total and Permanent disability through the Payor rider. This guarantees your child’s college fund and helps protect it against all emergencies.

Save extra during your child’s schooling days to fund higher education:

The plan comes with a limited premium payment term up to child’s age 18, so you pay premiums only till he/she turns 18 and get guaranteed payouts for their college education from age 18-21.

Features Specification

Minimum/Maximum Entry Age of Life Assured (Last Birthday)

91 Days to 8 Years

Life Insured Child On child attaining the age of 18 the policy shall be vested to the child

Policy Term 21 - Age at Entry of the Life Assured (Child)

Premium Payment Term 18- Age at Entry of the Life Assured (Child)

Minimum Sum Assured only Rs. 2,00,000

Maximum Sum Assured No limit subject to underwriting

Bonus Compound Reversionary Bonus: will be declared every year from end of year 2 onwards and once declared, is guaranteed for the life of the contract. The reversionary bonus in any year is a percentage of the base sum assured of the policy and previously declared cumulative reversionary bonus in previous years. Terminal Bonus: may be declared by the company after the 10th policy anniversary as a percentage of reversionary bonus, payable once during the lifetime,

Guaranteed Policy continuance in case of Payor's death or disability

Max Life College Plan comes with a Payor rider which ensures that the policy continues even in case of Payor meeting with Death or, Total and Permanent disability, Max Life Payor Rider: UIN – 104B013V02 (For more details on the rider and the various terms and conditions, please refer to the rider brochure

Death Benefit Before attained age 7: Total premiums paid (with interest @3.5% p.a. compounded annually) + accrued (if any) reversionary bonus Attained Age 7 & onwards: Sum Assured + Accrued reversionary bonus + Terminal bonus (if any)

Maturity Benefit Guaranteed cash backs every year from child's age 18 to 21

Child's Age

Money Back (% of S.A.)

18 40%

19 20%

20 20%

21 40% + Accrued reversionary bonus + Terminal bonus (if any)

Total Guaranteed Money Back / Payout = 120% of Sum Assured

42

Max Life Fast Track Plan

Features & Benefits Option of short premium payment terms enabling an early maturity and fast

track accumulation. Choice of six well-managed funds for policyholders with different risk appetite Entry age of life insured upto 60 years Choice of protection cover basis age of life insured Systematic Investment through STP option- to safeguard your wealth against

market volatilities Flexibility to make partial withdrawals to meet any unplanned expenses

Short premium payment terms (Single pay/5 pay/10 pay)Achieve your goals by putting your investments on the Fast Track by choosing any one of the Premium payment terms

Particulars Features

Minimum/ Maximum Age of Life Insured at Entry (Last Birthday)

30 years to 60 years

Maximum Age of Life Assured at Maturity

70 years

Premium payment term & Policy Term

Single Pay – 10 years policy term5 pay - 10 years policy term10 pay - 20 years policy term

Minimum Annual Target Premium

All Variants: Rs. 1,00,000

Maximum Annual Target Premium

No limit (Subject to Underwriting)

Sum Assured Multiples Limited Pay

Age 30 to 45 years 10 or 20 times ATP

Age 46 to 60 years 10 times ATP

Single Pay ("SP")

Age 30 to 45 years 1.25 or 5 times SP

Age 46 to 60 years 1.25 times SP

Death Benefit Sum Assured + Fund ValueAt no point in time during the term of the policy, the death benefit will be less than; higher of the Sum Assured or 105% of total premium paid to date.

Riders Offered Max Life Personal Accident Benefit Rider (UIN 104C007V02), Max Life Dread Disease Rider (UIN 104C010V02). (For more details on the riders and the various terms and conditions, please refer to the rider brochures) Please note that Rider Sum Assured cannot be greater than base plan Sum Assured.

43

Max Life Guaranteed Monthly Income Plan

Key Benefits and Features:

Short Policy Terms

The plan offers you flexibility to choose your policy terms. You can choose either 6 years or 11 year policy terms depending on your financial goals.

Guaranteed Monthly Income for a Payout Period of 10 years after your policy term

The plan lets you choose the guaranteed monthly income you desire. This income is guaranteed to be paid for a period of 10 years (120 months) from the end of policy term , payable at payout dates.

Monthly Income Boosters (“MIB”) 12th year onwards

Over and above the guaranteed monthly income, the plan also offers MIB starting year 12, payable at payout dates. This ensures that your chosen monthly income is cushioned against inflation.

Criteria Eligibility

Minimum Entry Age (Last Birthday)

25 years

Maximum Entry Age (Last Birthday)

6 Pay – 65 years 11 Pay – 60 years

Maximum Maturity Age (Last Birthday)

71 years

Premium Modes Annual Mode only

Policy Term / Premium Payment Term (PPT)

6 Year Term 11 Year Term (Premium Term is same as Policy Term)

Minimum Monthly Income Rs. 2,000 p.a. and thereafter in multiples of Rs. 500

Maximum Monthly Income No Limit – based on underwriting on a case-to-case basis

Sum assured For 6 pay: 180 times monthly income For 11 pay: 240 times monthly income

44

DATA COLLECTION & TECHNIQUES

45

SAMPLING:-

Sample size : 25 respondents

Sampling Method : Random sampling

Sample Plan : Personal Interview

Sample Unit : Respondents in Tonk city

Survey conducted on Geographic bases.

Every decision poses unique needs for information, and relevant strategies can be

developed based on the information gathered through research. Research is the

systematic objective and exhaustive search for and study of facts relevant to the problem.

Research design means the framework of study that leads to the collection and analysis

of data. It is a conceptual structure with in which research is conducted. It facilitates

smooth sailing of various research operations to make the research as effective as

possible.

The study was conducted as an exploratory sampling survey method to collect primary

and secondary data.

46

DATA SOURCE:

PRIMARY SOURCE OF DATA:

Primary data are those collected by the investigator himself for the first time and

thus they are original in character, they are collected for a particular purpose.

A well-structured questionnaire was personally administrated to the selected sample to

collect the primary data.

SECONDARY SOURCE OF DATA:

Secondary data are those, which have already been collected by some other

persons for their purpose and published. Secondary data are usually in the shape of

finished products.

Two types of secondary data were collected for the preparation of the project work:

Internal Data was generated from company’s brochures, manuals and annual reports.

External Data, on the other hand, was generated from research books and internet

(websites)

47

SAMPLING TECHNIQUES

A sample is a representative part of the population. In sampling technique,

information is collected only from a representative part of the universe and the

conclusions are drawn on that basis for the entire universe.

A random sampling technique was used to collect data from the respondents. A random

sample is a sample selected from a population in such a way that every member of the

population has a equal chance of being selected and the selection of any individual does

not influence the selection of any other. The selection is purely depends on chance. So

while conducting the survey, 25 respondents were selected at random.

SAMPLE SIZE

Sample size denotes the number of elements selected for the study. For the present study,

25 respondents were selected at random.

48

DATA ANALYSIS AND

INTERPRETATION

49

DATA ANALYSIS AND INTERPRETATION

Data collected is useful only after analysis. Data Analysis involves converting a

series of recorded observations into descriptive statements and inferences about

relationships. The types of analysis that can be conducted depend on the nature of the

measurement instrument and the data collected method.

If the researcher selects the analytical techniques prior to collecting data, the

researcher should generate fictional responses to the measurement instrument, these

dummy data are then analyzed the results of this analysis will provide the information

required by the problem at hand.

The results obtained by analyzing such data may not be accurate due to present of

dummy data, so it is preferable to select analytical technique after collection of data,

depending on data collected.

50

1. Gender

Gender NO.OF RESPONDENTS

PERCENTAGE

Male 22 88

Female 3 12

NO.OF RESPONDENTS

22

3

Male

Female

Interpretation- According to my project survey i have come to now the out of 25 responds in that 88% are male and 12% female.

2. Qualification of Respondents

QUALIFICATION NO.OF RESPONDENTS PERCENTAGE

SECONDARY 1 4.0%

HIGH SECONDARY 3 12.0%

GRADUATE 21 84.0%

OTHER 0 0.0%

51

NO.OF RESPONDENTS

13

21

00

5

10

15

20

25

NO.OF RESPONDENTS

Interpretation:

From the above table , it is clear that out of 25respondents, 01 respondent

is belong to Secondary , 03 respondents are belong to High Secondary, 21 respondents

are belong to Graduate and 0 respondents belong to other categories. So that majority of

the respondents are belonging to Graduate.

3. Occupation

OCCUPATION NO.OF RESPONDENTS PERCENTAGE

GOVT. EMPLOYEE 04 16.0%

PRIVA.EMPLOYEE 08 32.00%

BUSINESSMAN 03 12.0%

STUDENTS 08 32.00%

OTHERS 02 08.0%

52

NO.OF RESPONDENTS

4

8

3

8

2

0123456789

NO.OF RESPONDENTS

Interpretation:

From the graph it has been observed that, 04 out of 25respondents are belong

to Government Employee, 08 respondents are belong to Private Employee, 03

respondents are belong to Businessman, 08 respondents are belong to students and 02

respondents are belong to other categories. So that major respondents are belongs to

Private Employee & Students.

4. Age Group of Respondents.

AGE GROUP NO.OF RESPONDENTS PERCENTAGE

18 TO 25 17 68.0%

26 TO 35 0 0.0%

36 TO 45 03 12.0%

46 & ABOVE 05 20.0%

53

NO.OF RESPONDENTS

1703

518 TO 25

26 TO 35

36 TO 45

46 & ABOVE

Interpretation:

From the graph it is clear that, out of 25 respondents, 17 respondents are

falls in the Age group of (18 to 25), 0 respondents are falls in the Age Group of (26 to

35), 03 respondents are falls in the Age Group of (36 to 45), And 05 respondents fall in

the Age Group of (46 & above).

5. Family Size of Respondents

FAMILY SIZE NO.OF RESPONDENTS PERCENTAGE

0 TO 3 0 0.0%

3 TO 5 18 72.0%

5 TO 7 06 24.0%

7 & ABOVE 01 4.0%

54

NO.OF RESPONDENTS

0

18

6

1

02468

101214161820

0 TO 3 3 TO 5 5 TO 7 7 &ABOVE

NO.OF RESPONDENTS

Interpretation:

From the graph it has been observed that, out of 25 respondents 0

have the Family size between (0 to3), 18 respondents have the family size between

(3 to 5), 06 respondents have the family size between (5 to 7). 01 respondent has the

family size between (7 & above), So that major respondents belong to size of family

between (3to 5).

6. Income Group of respondents

INCOME GROUP NO.OF RESPONDENTS PERCENTAGE

3000 TO 5000 /month 02 08.0%

5000 TO 10000/month 05 20.0%

10000 TO15000/month 07 28.0%

15000 TO ABOVE 11 44.0%

NO.OF RESPONDENTS

2

5

7

113000 TO 5000 /month

5000 TO 10000/month

10000 TO15000/month

15000 TO ABOVE

55

Interpretation:

From the graph it has been observed that, out of 25 respondents, 02

respondents have the Income between (3000 to 5000), 05 respondents have the income

between (5000 to 10000), 07 respondents have the income between (10000 to 15000)

and 11 respondents have the income between (15000 & above).

7. Graph Showing respondents Awareness about Life Insurance.

YES 20 80.0%

NO 05 20.0%

Aw areness About Life Insurance

20

5

YES

NO

Interpretation:

From the graph, it is observed that, out of 25 respondents, 20 respondents are Aware about Life Insurance, and 05 respondents are not Aware about Life Insurance. So that majority of the respondents are Aware of Life Insurance.

56

8. Graph Showing respondents Sources of Awareness

SOURCES NO.OF RESPONDENTS PERCENTAGE

MEDIA 04 16.0%

AGENT 13 52.0%

FRIENDS 06 24.0%

NEWS PAPER 02 8.0%

NO.OF RESPONDENTS

4

13

6

2

MEDIA

AGENT

FRIENDS

NEWS PAPER

Interpretation:

From the graph, it is observed that, out of 25 respondents O4

respondents are Aware about Max Life Insurance through Media, 13 respondents are

Aware through Agent, 06 respondents are Aware through Friends, and 02 respondents

are Aware through News Paper. So that major source of Awareness of respondents is

Agent.

57

9. Graph Showing respondents Influence Factors

18 1921

28.00%84.00%72.00% 76.00%

0

5

10

15

20

25

NO.OF RESPONDENTS

PERCENTAGE

Interpretation:

From the above graph, 72% of the respondents are look for security while investing in Max Life Insurance, 76% of the respondents look for high returns, 84.0% of the respondents look for risk coverage, 8% of the respondents look for service . So that most of the respondents look for Risk Coverage while investing in Max Life Insurance.

FACTORS NO.OF RESPONDENTS PERCENTAGE

SECURITY 18 72.0%

HIGH RETURNS 19 76.0%

RISK COVERAGE 21 84.0%

SERVICE 2 8.0%

58

10. Graph Showing respondents Rating with the Benefits of Max Life Insurance.

Rating No. Of Respondents Percentage

Security Returns Service Coverage

Very Good 22 14 5 0 41

Good 2 10 13 12 37

Average 1 1 7 9 18

Bad 0 0 0 4 4

22

14

5

02

10

1312

1 1

79

0 0 0

4

0

5

10

15

20

25

Security Returns Service Coverage

No. Of Respondents

Very Good

Good

Average

Bad

Interpretation:

From the graph it has been observed that, out of 25 respondents, 41% respondents have given rate as Very Good, 37 % respondents have given Good, 18% respondents have given Average and 4 % respondent has given Bad, So the Majority of respondents have satisfied with the Benefits of Max Life Insurance.

59

COMPARISON BETWEEN AXIS BANK & OTHER BANKS

60

1. Market Capitalisation

Private BanksMarket Capitalisation (Rs.

Cr.)HDFC BANK 161,144.25

ICICI 131,696.79Axis 64,560.74

Kotak Mahindra 58,480.77IndusInd bank 26,543.71

Yes Bank 18,057.94

61

2. Total Assets

Private Banks Total AssetsAxis 259,105.63ICICI 143,907.06Yes 86,214.26

HDFC 79,452.51Federal 54,762.31

62

3. Net Profit

Private SectorNET PROFIT

(Rs. Cr.)ICICI 8325.47HDFC 6726.28Axis 4242.21

Kotak mahindra 1360.72Yes Bank 1300.68

IndusInd Bank 1061.18

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4. Net Sales

Private Banks Net Sales ( Rs. Cr.)ICICI 40,075.60HDFC 35,064.87Axis 21994.65Yes 8,294.00

Kotak Mahindra 8,042.49

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5. Investments

Private Investments % of Total AssestsICICI 171393.6 92.48HDFC 111613.6 104.57

Axis Bank 93192.09 34.13Yes Bank 42976.04 47.6

Kotak mahindra 28873.43 95.49

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OBSERVATION / SUGGESTIONS & CONCLUSION

66

OBSERVATIONS

1) Bancassurance is the process of selling insurance products through a bank’s

network.

2) Max Life Insurance Company Limited is a joint venture between Max India

Limited and Mitsui Sumitomo Insurance Co. Ltd. Axis Bank is a Corporate

Agent of Max Life Insurance Co. Ltd.

3) There are various individual and group insurance products marketed through

Axis Bank targeting different groups of customers.

4) Bancassurance is beneficial for the banks, because

i. It helps the bank by increasing the skills of the employees.

ii. It reduces the risk of loan becoming debt loan for the bank.

iii. Nonperforming assets will be reduced as it gives security to the loan

amount.

iv. It increases the total other income of the bank.

5) As per the trend line, the total income has increased after the branch took up the

activity of cross selling and also there is an increase in the total miscellaneous

income.

6) The proportion of total miscellaneous income in total income has been increased

after the branch took up the activity of cross selling.

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SUGGESTIONS

1) Banks have witnessed a decline in margins in their core lending business due

to falling interest rates. Insurance distribution helps to increase the fee based

earnings of banks to a considerable extent. So the bank employees should try to

increase the total other income of the bank by doing cross selling.

2) Bank employees should be motivated to take the training by specifying the

commission amount which they are going to get after cross selling.

3) Bank employees who are involved in bancassurance should be given full

knowledge of the target customers.

4) Bank should try to facilitate online and internet payments towards insurance

products.

5) In order to attract more policy holders, the bank employees and insurance agents

should promptly attend to the enquiries of policyholders.

6) All the policyholders who came under tax bracket should be provided with the

necessary documents for claiming the tax concession.

7) Bank staff should make an effort to educate the public about the social security

provided by the insurance policies.

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CONCLUSION

With huge untapped market, insurance sector is likely to witness a lot of activity - be it

product innovation or distribution channel mix. Bancassurance, the emerging

distribution channel for the insurers, will have a large impact on Indian financial services

industry. Traditional methods of distributing financial services would be challenged and

innovative, customized products would emerge.

Banks will bring in customer database, leverage their name recognition and reputation at

both local and regional levels, make use of the personal contact with their clients, which

a new entrant cannot, as they are new to the industry. In customer point of view, a

plethora of products would be available to him. More customized products would come

into existence and that too all within hands reach. Success of the bancassurance would

mostly depend on how well insurers and banks understand each other's businesses and

seize the opportunities presented, weeding out differences that are likely to crop up.

Bancassurance has developed its form gradually where banks at first do not carry risks

and distribute insurance products for a fee and product development is left to insurance

company. But gradually banks have assumed risks regarding distribution assuming full

responsibility. But the proper implementation of bancassurance is still facing some

problems such as, poor manpower with in the banks, detachment of branch manager,

insufficient product promotion, managerial database expertise, inadequate incentives,

negative attitude towards insurance etc. In order to get the full benefit of it the following

steps should be taken:-

i) Service delivery mechanism should be strengthened.

ii) Knowledge of target customer needs should be developed.

iii) Extensive and high quality training should be ensured.

iv) Strategies consistent with the banks vision should be developed.

v) Bank's data base system should be made flexible to cope with the change.

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BIBLIOGRAPHY

70

BOOKS

1) Principles & Practice of Management

By Chhabra T. N., 2003, Dhanpat Rai & Sons

2) Banking Theory Law & Practice

By Sundharam & Varshney, 2006, Sultan Chand & Sonss

WEBSITES

http://en.wikipedia.org/wiki/Axis_Bank

http://www.axisbank.com http://www.google.com

http://www.moneycontrol.com

http://www.rbidocs.rbi.org.in

ARTICLES

Bancassurance in India – Janardhan G Naik

ANNUAL REPORT OF

AXIS BANK