BSCA PROJECT AXIS BANK vs ICICI BANK

BY: NIMMI JHA(12PGDM092) NISHI KUMARI(12PGDM093) NITIKA GOEL(12PGDM094) PIYUSH ANAND(12PGDM095) PRATAPCHANDAR(12PGDM096)

Comparing two banks in terms of competitive strategies - Differentiation

Axis Bank
Customer centric Service oriented Product innovation Maximum area coverage Level of service is same

ICICI Bank
Product differentiation & Product augmentation People Customer service, Division of SME, Personal Banking, Projection of sophisticated and modern image of the bank Process - Use of technology, system driven processes, Standardization of service, Extensive investment in software solutions for process innovation

Comparing two banks in terms of competitive strategies Cost Leadership

Axis Bank
Profit driven through mass selling

ICICI Bank
Penetrative pricing aimed at achieving large market share Philosophy of profit through volume Effort to drive out competition Price leader in retail banking product Aggressive pricing facilitated through low cost of fund acquisition

Segmentation analysis

Axis Bank
Demographic Variables Location: Metros, Sub-urban Occupation: Business persons, salaried class (both govt. and private), Working woman

ICICI Bank
Demographic Variables

Occupation: Different products for different

occupational segment identified segment barrier

Income: Minimum balance serves as a income

Geographical : Concentrated on Tier 1 & Tier

2 Cities trying to extend reach there Age: Different products like student account, old age account, etc

Age: Senior citizens, working group, Minors

Psychographic Variables Lifestyle: internet banking

Social Class: social class influences preferences for products & services.
Target Segments

Axis Bank
ICICI Bank

Corporate banking market Capital market Retail banking market Retail Banking Project finance Wholesale banking Corporate centre

Competitor analysis of two banks

A committee set up by RBI suggested that supervision of bank should focus on defined parameters of soundness, financial, managerial and operational efficiency. It recommended that bank should be rated on a 5 point scale; from A to E, widely on the lines of international CAMELS framework. It stands for:

C- CAPITAL ADEQUACY A- ASSET QUALITY M-MANAGEMENT E- EARNINGS L- LIQUIDITY S- SENSITIVITY

Capital Adequacy : Capital to Risk Weighted Asset Ratio

Asset Quality : NPA to advances ratio

Management: Profit per employee

Earnings: Earning per share

Liquidity: Cash Deposit ratio

Business Strategy :ICICI Bank

Industry attractiveness High Medium Low

Business strength

High

Corporate Asset banking, management structured finance Retail Banking, Insurance Investment Banking Mortgages

Medium

Low

Business Strategy :Axis Bank

Industry attractiveness High Medium Low

High Business strength

Retail Banking, corporate banking, corporate credit, Treasury Business banking

Debt capital market and equity trading

Medium

Capital market

Low

Investment banking