a report on comparative study of home loan & customer satisfaction
TRANSCRIPT
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2010
HDFC
CHANDIGARH
TABLE OF CONTENTS
SNO PARTICULARS PAGE NO.
1 EXECUTIVE SUMMARY 5
2 OBJECTIVE OF THE REPORT 6
3 INTRODUCTION 7
4 BACKGROUND
Vision of the organization Vision of HDFC Promoters Organizational goals Organization and management
8-9
5 BOARD OF DIRECTORS 10
6 ABOUT HDFC
Core business Shareholders pattern Balance sheet (liabilities and assets) Continuing growth momentum Sources of mortgage Fund raising
11-16
7 ASSOCIATE COMPANIES
Holdings HDFC bank HDFC AMC HDFC standard life HDFC ERGO HDFC sales HDFC realty
17-23
8 HOME LOAN PRODUCTS 24-25
9 COMPARISON WITH OTHER MARKET PLAYERS
State bank of India ICICI bank AXIS bank IDBI bank
26-32
10 SWOT ANALYSIS 33
11 STUDY ON CUSTOMER SATISFACTION
Customer satisfaction Need for customer satisfaction Objective of study Scope of study Research methodology
34-40
12 ANALYSIS 38-41
13 RELATION BETWEEN VARIOUS PARAMETERS 42-50
14 SPSS ANLYSIS FOR FACTOR 51-54
15 LIMITATIONS 55
16 RECOMMENDATIONS AND SUGESSTIONS 56
17 BIBLIOGRAPHY 57
18 ANNEXURE 58-62
OBJECTIVE OF THE PROJECT
The objective of this research is to analyse the home loans with a view to arrive at the
most popular loan schemes offered by the banks under study and to conclude from the
analysis the best possible schemes which would keep the bank ahead of competition.
Further this study would lead to know about the following:
To have the first hand information on home loan products, sanctioning and disbursement in HDFC ltd.
To compare the performance of HDFC with other market players.
To conduct SWOT analysis of HDFC ltd.
To study the satisfaction level of customers about home loans
INTRODUCTION
Buying a home of one's own is every individual's first stop in life. HDFC LTD have pulled out all the stops to sew together a home loan product that has flexibility as its very foundation. It has created a product that is competitively benchmarked, that is amply affordable and one that is customer-sensitive. Only because when it comes to buying a house, the first thing you need to do is to feel at home with your bank.
There are various opportunities for a young salaried individual to plan their moves ahead of time which will not only lead to wealth creation but will also cater to the demand of their growing family.
To help such individuals various financial institutions work day and to make these people realize their dreams. One of them is HDFC.
We will now look at how these institutions work and what do they do to remain competitive in the market.
Going by the facts we can infer that the demand for reality sector has grown by 7-8%. Though the figures were bit shaky after the subprime crises of the US but the prices are now quite stable which has caused an increase in the demand in this sector.
HDFC brings its home loan policy to one’s doorstep, with over 30 years of experience and a dedicated team of experts with the complete package that meets all the housing finance needs.
BACKGROUND
HDFC was incorporated in 1977 as the first specialized Mortgage Company in India with primary objective of meeting a social need that of promoting the home ownership by providing long term finance to households for meeting their housing needs.
Its services are aimed at individuals as well as companies availing loans for housing purposes. It also provides lease finance to companies and to development authorities for financing infrastructure and other assets along with its property related services.
VISION OF THE ORGANISATION
“HDFC is an organization that strives for excellence, with the twin objectives of enhancing customer satisfaction and shareholder value.”
VISION OF HDFC
To enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner and to promote home ownership.
To increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.
PROMOTERS
HDFC is India’s premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the markets leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed a significant expertise in retail mortgage loans to different market segments and also had a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.
ORGANISATIONAL GOALS
Develop close relationships with individual households.
Maintain its position as the premier housing finance institution in the country.
Transform ideas into viable and creative solutions
Provide consistently high returns to shareholders.
To grow through diversification by leveraging off the existing client base.
ORGANISATION AND MANAGEMENT
HDFC is professionally managed with a board of directors consisting of eminent persons who represents various fields including finance, taxation, construction and urban policy and development. The board primarily focuses on strategy formulation, policy and control designed to deliver increasing value to shareholders.
Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.
BOARD OF DIRECTORS
S.No Name Designation
1 Mr.Deepak S ParekhChairman / Chair Person
2 Mr.Shirish B Patel Director3 Mr.D M Satwalekar Director4 Mr.D N Ghosh Director5 Dr.Bimal Jalan Director6 Dr.J J Irani Director7 Mr.B S Mehta Director8 Mr.D M Sukthankar Director9 Mr.N M Munjee Director
10 Dr.Ram S Tarneja Director11 Dr.S A Dave Director
12 Mr.V Srinivasa RanganExecutive Director
13 Mrs.Renu Sud KarnadManaging Director
14 Mr.Keshub Mahindra Vice Chairman
15 Mr.Keki M MistryVice Chairman & CEO
Housing finance is a part of financial service which has emerged strongly due to growth of banking industry and housing finance institution or companies. The housing finance is a type of installment credit which forms the largest single source of housing finance. Under installment credit scheme, the customer repays the loan in equal periodic or monthly installments (EMI). EMI means the amount of monthly payment necessary to amortize the loan with interest within the tenure of loan.
HDFC offers Loans for Homes-for buying or constructing homes, refinancing a home loan availed from another institution or to extend or improve an existing home. HDFC also finances purchase of land approved agencies to help construct a home. HDFC also helps a customer in acquiring a self contained flat in an existing or proposed cooperative society, in an apartment owners’ association or even an independent single family or multifamily bungalow or row house. HDFC Homes Loans have serve 26lakh customers over a period of 29 years.
CORE BUSINESS
BALANCE SHEET OF HDFC LTD (LIABILITIES)
BALANCE SHEET OF HDFC LTD (ASSETS)
CONTINUING GROWTH MOMENTUM OF HDFC LTD.
SOURCES OF MORTGAGE AT HDFC LTD.
FUND RAISING AT HDFC
ASSOCIATE COMPANIES
HOLDINGS
HDFC BANK
HDFC Bank was incorporated in August 1994
Among the first in new generation commercial banks
Registered office in Mumbai, India
Promoted by HDFC, the parent company
IPO in India in 1995
Listed in NSE, BSE, NYSE(ADR)
NETWORK
1416 branches
3570 ATM’s in the country
550 cities in India
All branches are OLRT connected
500 locations serviced through Telebanking
Representative offices in Hong Kong, New York, London & Singapore.
BUSINESS FOCUS
World Class Indian Bank
Benchmarking against international standards.
Best practices in terms of ethical standards, professional integrity, corporate governance and regulatory compliance
To build sound customer franchises across distinct businesses.
Four core values - Operational Excellence, Customer Focus, Product Leadership and People.
OFFERINGS
Wholesale Banking Services
Retail Banking Services
Treasury
ACHIEVEMENTS
HDFC Bank merged with TIMES BANK in 2000.
HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007.
HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance.
HDFC Bank chosen as one of Asia Pacific’s best 50 companies by Forbes magazine.
'Best Bank in the Private Sector 2008.'
HDFC Bank ties up with Qatar National Bank.
HDFC AMC
Incorporated on 10th December, 1999
Approved as AMC for HDFC Mutual Fund on 3rd July, 2000
Particulars % of the paid up equity capital
HDFC Limited 60
Standard Life Investments Limited 40
Zurich India Mutual Fund divested its Asset Management business in India
HDFC AMC acquired Zurich’s Schemes on 19th June, 2003.
VISION
HDFC STANDARD LIFE
Joint Venture between
Financial Expertise
Range of Solutions
Track Record So Far is:
Gross Premium Income – Rs. 5564.69 crs
27 lakh policies in force.
VISION
'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'.
'The most obvious choice for all'.
Company’s Name Percentage holding
HDFC Ltd. 72.43
Standard Life (Mauritius) 2006 26.00
HDFC ERGO GENERAL INSURANCE
74:26 Joint Venture between HDFC Ltd. & ERGO International AG
“Right Insurance Solution” for ALL
46 cities with 52 branch offices with an employee strength of 650 professionals.
VISION
"To be the most admired insurance company that enables the continued progress of customers by being responsive to their needs".
HDFC REALTY
Wholly Owned Subsidiary of HDFC Ltd.
Facilitating Buying, Selling or Leasing of Residential/Commercial Property
Geographic Reach - Mumbai, Navi Mumbai, Pune, Bangalore, Delhi / NCR, Kolkata, Kochi & Hyderabad.
HOME LOAN PRODUCTS
Home Improvement Loans
Flat, row house, bungalow from developers
Existing freehold properties
Properties in an existing or proposed co-operative housing society or apartment
Owner's association
Home Extension Loans
To facilitate the extension of an existing dwelling unit.
The maximum amount of such a loan is Rs. 100 lacs or 100% of the cost of extension, whichever is lower
Maximum duration of 20 years and is to be repaid in equated monthly installments
Home Conversion Loans
Existing HDFC borrowers can avail of a Home Conversion Loan to acquire another dwelling unit, through sale of the existing dwelling unit
The existing loan gets transferred to new property with the increased loan amount
Saves the prepayment processing charges for loan conversion
Top - Up Loans
Encashing the investment in a house without having to dispose it off to fund various needs related to Higher Education, Purchase of Furniture, Business Requirements.
The maximum term of the loan is 10 years. Top up loans can given after 1 to 2 years of the final disbursement of the existing loan or upon possession/completion of the existing financed property.
Home Loan
Maximum loan85% of the cost of the property and based on the repayment capacity of the customer.
Maximum Term20 years subject to your retirement age.
Applicant and Co- Applicant to the loan
Adjustable Rate Home Loan
Fees
Home Improvement Loan
Maximum loan
Existing customer
New customer
No Charges for
Replacement of cheques
Income Tax Certificates
Accelerated Repayment Option
Land Purchase Loan
Maximum loan
Maximum Term
Applicant and Co- Applicant to the loan
Adjustable Rate Home Loan
No Charges for
Replacement of cheques
Income Tax Certificates
Accelerated Repayment Option
COMPARISON OF HDFC LTD WITH OTHER MARKET PLAYERS
STATE BANK OF INDIA
Features & Benefits of SBI Home Loan • Purchase/ Construction of House/ Flat• Purchase of a plot of land for construction of House• Lowest Home Loan Interest Rate..• Extension/ repair/ renovation/ alteration of an existing House/ Flat• Purchase of Furnishings and Consumer Durables as a part of the project cost.• Takeover of an existing loan from other Banks/ Housing Finance Companies.• Interest charged on the daily reducing balance• No penalty on prepayments of home loan• No hidden costs• Option to club income of your spouse and children to compute eligible loan amount• Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount• Provision to finance cost of furnishing and consumer durables as part of project cost.
CURRENT RATE OF INTEREST
LOAN SCHEME 1st YEAR 2nd YEAR & 3rd YEAR
AFTER 3rd YEAR
SBI HI-FIVE Loan Loan Amount upto Rs. 5 Lacs
8.00% (p.a.)Fixed interest rate
9.00% (p.a.)Floating Interest RatesOR10.50% (p.a.)Fixed Interest Rates
9.00% (p.a.)Floating Interest RatesOR10.50% (p.a.)Fixed Interest Rates
SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs
8.00% (p.a.)Fixed interest rat
8.00% (p.a.)Fixed interest rat
9.00% (p.a.)Floating Interest Rate OR10.50% (p.a.)Fixed Interest Rate
SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs
8.00% (p.a.)Fixed interest rate
9.00% (p.a.)Fixed Interest Rates
10.00% (p.a.)Floating Interest Rate OR11.00% (p.a.)Fixed Interest Rate
ELIGIBILITY CRITERIA & DOCUMENTATION REQUIRED
SALARIED SELF EMPLOYEED
Age 21years to 60years 21years to 70years
Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)
Loan Amount Offered 5,00,000 - 1,00,00000 5,00,000 - 2,00,00000
Tenure 5years-20years 5years-20years
Current Experience 2years 3years
Documentation 1) Application form with photograph2) Identity & residence proof3) Last 3 months salary slip 4) Form 165) Last 6 months bank salaried credit statements6) Processing fee cheque
1) Application form with photograph2) Identity & residence proof3) Education qualifications certificate & proof of business existence4) Business profile,5) Last 3 years profit/loss & balance sheet
6) Last 6 months bank statements
ICICI BANK
Features & Benefits of ICICI Bank Home Loan
• Attractive Home Loan Rates • No charges on part pre-payment of your Home Loan• Top Up & Home Improvement Loan facility available on existing Home Loan• Home loan amounts suited to your needs • Home Loan tenure upto 25 years • Simplified Documentation • Doorstep Delivery of home loan papers • Sanction approval without having selected a property. • Free Personal Accident Insurance policies • Insurance options for your home loan at attractive premium
CURRENT RATE OF INTEREST
LOAN SCHEME UPTO 30 LACS FROM 30 LACS-50 LACS
ABOVE 50 LACS
ICICI Bank Floating 8.75% Floating 9% Floating 9.50%
DOCUMENTATION REQUIRED
SALARIED SELF EMPLOYED
Age 21years to 65years 21years to 65years
Income Rs.1,44,000 (p.a) Rs.1,50,000 (p.a)
Loan Amount Offered 2,00,000 - 1,00,00000 2,00,000 - 2,00,00000
Tenure 5years-20years 5years-20years
Current Experience 1years 3years
Processing Fee 0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher
0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher
Documentation 1) Application form with photograph2) Identity & residence proof3) Latest salary slip4) Form 165) Last 6 months bank statements6) Processing fee cheque
1) Application form with photograph
2) Identity & residence proof3) Proof of business existence4) Profile of the Business5) Last 3years ITR6) Last 6 months bank statements7) Processing fee cheque
AXIS BANK
Features and benefits of Axis Bank Home Loan
• Attractive Home loan rate of interest• Balance Transfer Facility• You can choose between floating rate of interest and fixed rate of interest• Loan can be sanctioned if you want to purchase any residential plot or a new house/flat• Pre approved loan facility
ELIGIBILITY & DOCUMENTS REQUIRED
SALARIED SELF EMPLOYED
Age 24 years to 60 years 24 years to 65 years
Loan Amount Offered Rs.1lac to 50lacs Rs.1lac to 50lacs
Processing Fee 0.5% + Service tax as applicable Nil
Documentation 1) Application form with photograph
2) Identity & residence proof 3 )Latest salary slip,4) Form 165) Last 6 months bank statements6) Processing fee cheque
1) Application form with photograph2) Identity & residence proof3) Education qualifications certificate & proof of business existence4) Business profile, Last 3 years profit/loss & balance sheet5) Last 6 months bank statements6) Processing fee cheque
IDBI BANK
IDBI, the tenth largest development bank in the world has promoted world class
institutions in India. A few of such institutions built by IDBI are The National
Stock Exchange (NSE), The National Securities Depository Services Ltd.(NSDL),
Stock Holding Corporation of India (SHCIL) etc. IDBI is a strategic investor in a
plethora of institutions which have revolutionized the Indian Financial Markets.
IDBI promoted idbi bank to mark the formal foray of the IDBI Group into commercial Banking. This initiative has blossomed into a major success story.
IDBI bank offers only Floating rate home loans.
INTEREST RATE CHART
TENURE(in years) SALARIED SELF EMPLOYED
Upto 5 7.50% 7.75%
10 7.50% 7.75%
15 7.50% 7.75%
20 7.50%
ELIGIBILITY CRITERIA
SALARIED SELF EMPLOYED
Age 24years-58years 24years-65years
Loan amount 2lacs-3crore 2lacs-3crore
Income Gross 1.20lacs Net 1lac
Minimum work experience 2years 2years
SWOT ANALYSIS
Risk of fraud & NPAMajor private players.RBI policies.Increase in funding cost.
Untapped rural marketLeader in home loan segmentFast growing insurance business
Strict policy of funding.Not very aggressive in M&A.Mere international presence.
Leader in home loan segmentRight Strategy for products.Distribution Structure
Strength
Weakness
Threat
Opportunity
STUDY ON CUSTOMER SATISFACTION
CUSTOMER SATISFACTION
: State of mind of customers when expectations have been met or have exceeded over the
lifetime of the products/services i.e. Customer satisfaction, a business term, is a measure of how
products and services supplied by a company meet or surpass customer expectation. It is seen as
a key performance indicator within business. In a competitive marketplace where businesses
compete for customers, customer satisfaction is seen as a key differentiator and increasingly has
become a key element of business strategy. Customer satisfaction is an ambiguous and abstract
concept and the actual manifestation of the state of satisfaction will vary from person to person
and service to service. The state of satisfaction depends on a number of both psychological and
physical variables.
It's a well known fact that no business can exist without customers. And with increasing
competition and with that more customers need and expectations a whole lot of changes have
taken place.
THE NEED TO MEASURE CUSTOMER SATISFACTION
Satisfied customers are central to optimal performance and financial returns.In many places in
the world, business organizations have been elevating the role of the customer to that of a key
stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with
the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are
finding value in directly measuring and tracking customer satisfaction (CS) as an important
strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to
improved organizational performance in a global marketplace.
With better understanding of customers' perceptions, companies can determine the actions
required to meet the customers' needs. They can identify their own strengths and weaknesses,
where they stand in comparison to their competitors, chart out path future progress and
improvement. Customer satisfaction measurement helps to promote an increased focus on
customer outcomes and stimulate improvements in the work practices and processes used within
the company.
When buyers are powerful, the health and strength of the company's relationship with its
customers – its most critical economic asset – is its best predictor of the future. Assets on the
balance sheet – basically assets of production – are good predictors only when buyers are weak.
So it is no wonder that the relationship between those assets and future income is becoming more
and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing
on competition has its place, but with buyer power on the rise, it is more important to pay
attention to the customer.
Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about
what exactly is required and how to go about it. This article is an attempt to review the necessary
requirements, and discuss the steps that need to be taken in order to measure and track customer
satisfaction.
OBJECTIVE OF THE STUDY
The objective of this study is to study the level of satisfaction among the existing customers of
HDFC Ltd. on the basis of various parameters and also tocompare HDFC Ltd. services with
other public sector banks and private sector banks in terms of customer satisfaction and to find
out the various reasons of customer satisfaction or dissatisfaction in HDFC Ltd.services.
SCOPE OF THE STUDY
The scope of the study is confined in studying extent of HDFC Ltd. services in successful
achievement of the customer satisfaction and also comparing the public sector and private sector
banks in terms of customer satisfaction level. The study will be undertaken on the basis of
sample survey.
RESEARCH METHODOLOGY
Research design:
The research design would be descriptive and cross sectional
Sample size:
The sample would be selected on random basis. A sample of 50 respondents would be used in
the research.
Target Area : Chandigarh
Data Sources:
Both Secondary and Primary Sources of data will be used.
The major type of information used is primary data (Questionnaires and Personal Interview).
This is done through primary survey. The literature review is a secondary data type. The sources
include books, periodicals, websites, printed literature etc.
Data Collection Tool: - Structured Questionnaire:
A structured Questionnaire is a formal list of questions framed so as target the facts. For
Collecting Primary Data I used a Structured Questionnaire. I prepared questionnaire to be filled
by customers of HDFC Bank. I meet to 50 customers of HDFC Bank who filled the
questionnaire so that I can know about the satisfaction level of that services which they enjoy as
a customer.
Sampling Technique: Convenient Sampling
In convenience sampling, the selection of units from the population isbased on easy
availability and/or accessibility.I am using this sampling method because sample will be
selected on thebasis of availability of the respondents who met the desired criteria.
ANALYSIS
1) Participants’ proportion:
CATEGORY TOTAL(50) %
Male 34 68Female 16 32
2) Occupation type:
CATEGORY TOTAL(50) %
Self-employed 11 22
Employed(private) 21 42
Employed(government) 18 363) Income level’s:
CATEGORY TOTAL(50) %
<3 lakhs 21 42
3-5 lakhs 20 40
5-8 lakhs 6 12
8 lakhs and above 3 6
GENDER * INCOME Cross tabulation
INCOME
Total
<3 lakhs
3-5 lakhs 5-8 lakhs8 lakhs and
above GENDER Male 13 15 4 2 34
Female 8 5 2 1 16Total 21 20 6 3 50
EMPLOYEE * INCOME Cross tabulation
INCOMETotalA b c D
EMPLOYEE Self-employed 0 8 3 0 11Employed(pvt) 13 4 1 3 21
Employed(gvt) 8 8 2 0 18Total 21 20 6 3 50
GENDER * EMPLOYE E Cross tabulation
EMPLOYEE
TotalSelf-employed Employed(pvt) Employed(gvt)GENDER Male 7 14 13 34
Female 4 7 5 16Total 11 21 18 50
GENDER *LOAN PERIOD Cross tabulation
LOAN PERIOD
Total>1 year 1-3 years 3-5 years >5 yearsGENDER Male 9 8 6 11 34
Female 2 3 3 8 16Total 11 11 9 19 50
4) Purpose of Visit:
CATEGORY TOTAL(50) %
Deposit Enquiry 8 16
Home Loan Enquiry 30 60
Any other 12 24
5) Knowledge about HDFC Ltd.-
CATEGORY TOTAL(50) %
Friends, relatives 23 46
Internet 0 0
Existing employees 13 26
Other sources 14 28
6) Period of Loan:
CATEGORY TOTAL(50) %
>1 year 11 22
1-3 years 11 22
3-5 years 9 18
>5 years 19 38
7) Rate option:
CATEGORY TOTAL(50) %
Fixed 13 26
Floating 33 66
Dual 4 8
8) Schemes awareness:
CATEGORY TOTAL(50) %
Trenching 3 6
Conversion 2 4
Prepayment 18 36
Not aware 28 56
9) Loan from other banks:
CATEGORY TOTAL(50) %
Yes 38 76
No 12 24
10) Awareness about value added services:
CATEGORY TOTAL(50) %
Life Insurance cover 12 24
Home Insurance cover 5 10
International credit card facility 6 12
Not aware 27 54
11) Recommendation to others/ taking another loan from HDFC Ltd.:
CATEGORY TOTAL(50) %
Yes 35 70
No 15 30
RELATION BETWEEN VARIOUS PARAMETERS
Statistical analysis has not provided any statistically significant correlations or regression for all
variables. In this part, we will present the statistically significant correlations and regression that
exist among the various factors examined in this research:
relation between SERVICES(independent variable) and RECOMMENDATION(dependent variable):
Frequencies:
Statistics: SERVICES
N Valid 50Missing 0
Mean 17.86
Median 17.50
Mode 16
Std. Deviation 5.383
Variance 28.980
Sum 893
Frequency Percent Valid Percent Cumulative PercentValid 9 3 6.0 6.0 6.0
11 2 4.0 4.0 10.012 1 2.0 2.0 12.013 4 8.0 8.0 20.014 4 8.0 8.0 28.015 3 6.0 6.0 34.016 7 14.0 14.0 48.017 1 2.0 2.0 50.018 5 10.0 10.0 60.019 4 8.0 8.0 68.020 1 2.0 2.0 70.021 6 12.0 12.0 82.022 2 4.0 4.0 86.023 1 2.0 2.0 88.025 1 2.0 2.0 90.027 2 4.0 4.0 94.028 1 2.0 2.0 96.031 1 2.0 2.0 98.033 1 2.0 2.0 100.0Total 50 100.0 100.0
Frequencies
Statistics: RECOMMENDATIONS
N Valid 50
Missing 0Mean 1.70Median 2.00Mode 2Std. Deviation .463Variance .214Sum 85
Frequency Percent Valid PercentCumulative
PercentValid N 15 30.0 30.0 30.0
Y 35 70.0 70.0 100.0Total 50 100.0 100.0
REGRESSION:
Variables Entered/Removed (b)
Model Variables EnteredVariables Removed Method
1 SERVICES(a) . Enter
Model Summary (b)
Model R R SquareAdjusted R
SquareStd. Error of the Estimate
Change Statistics
R Square Change F Change df1 df2 Sig. F Change
1 .427(a) .182 .165 .423 .182 10.683 1 48 .002a Predictors: (Constant), SERVICESb Dependent Variable: RECOMMENDATIONS
ANOVA (b)
ModelSum of Squares df Mean Square F Sig.
1 Regression 1.912 1 1.912 10.683 .002(a)Residual 8.588 48 .179Total 10.500 49
a Predictors: (Constant), SERVICESb Dependent Variable: RECOMMENDATIONS
Coefficients (a)
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.
95% Confidence Interval for B
B Std. Error Beta Lower Bound Upper Bound1 (Constant) 2.355 .209 11.258 .000 1.935 2.776
SERVICES-.037 .011 -.427 -3.269 .002 -.059 -.014
ANALYSIS:1. The value of R2= .182, which shows that the relation between SERVICES(occupation) and
RECOMMENDATION is not strong enough.
2. Standard error = .423
3. The value of constantcoefficient (a) is = 2.355.4. The value of variablecoefficient (b) is = -.037.5. From ANOVA test we get:
SSR(sum square between rows/columns) = 1.912
SSE(sum square error) = 8.588 SST(sum square total) = 10.500 MSR(mean square between rows) = 1.912
MSE (mean square between error) = .179
relation between PERIOD(independent variable) and RATE(dependent variable):
Frequencies:Statistics: PERIOD
N Valid 50Missing 0
Mean 2.72Median 3.00Mode 4Std. Deviation 1.196Variance 1.430Sum 136
Frequency Percent Valid PercentCumulative
PercentValid a 11 22.0 22.0 22.0
b 11 22.0 22.0 44.0c 9 18.0 18.0 62.0d 19 38.0 38.0 100.0Total 50 100.0 100.0
Frequencies:
Statistics: RATE
N Valid 50Missing 0
Mean 1.82Median 2.00Mode 2Std. Deviation .560Variance .314Sum 91
Frequency Percent Valid PercentCumulative
PercentValid a 13 26.0 26.0 26.0
b 33 66.0 66.0 92.0c 4 8.0 8.0 100.0Total 50 100.0 100.0
RATE into NRATEOld Value New Value Value Label
a 1 ab 2 bc 3 c
PERIOD into NPERIODOld Value New Value Value Label
a 1 ab 2 bc 3 cd 4 d
Regression: Variables Entered/Removed (b)
ModelVariables Entered
Variables Removed Method
1 NPERIOD(a) . Entera All requested variables entered.b Dependent Variable: NRATE
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate1 .046(a) .002 -.019 .565
a Predictors: (Constant), NPERIOD
ANOVA(b)
ModelSum of Squares df Mean Square F Sig.
1 Regression .033 1 .033 .103 .750(a)Residual 15.347 48 .320Total 15.380 49
a Predictors: (Constant), NPERIODb Dependent Variable: NRATE
Coefficients(a)
Model
Unstandardized CoefficientsStandardized Coefficients
t Sig.B Std. Error Beta1 (Constant) 1.879 .200 9.378 .000
NPERIOD -.022 .068 -.046 -.321 .750
ANALYSIS:1) The value of R2= .002, which shows that the relation between SERVICES(occupation)
and RECOMMENDATION is very weak.2) Standard error = .5653) The value of constant coefficient (a) is = 1.879.4) The value of variable coefficient (b) is = -.022.5) From ANOVA test we get:
SSR(sum square between rows/columns) = .033. SSE(sum square error) = 15.347 SST(sum square total) = 15.380 MSR(mean square between rows) = .033
MSE (mean square between error) = .320
relation between INCOME(independent variable) and PERIOD(dependent variable):
FrequenciesStatistics: INCOME
N Valid 50Missing 0
Mean 1.82Median 2.00Mode 1Std. Deviation .873Variance .763Sum 91
Frequency Percent Valid PercentCumulative
PercentValid a 21 42.0 42.0 42.0
b 20 40.0 40.0 82.0c 6 12.0 12.0 94.0d 3 6.0 6.0 100.0Total 50 100.0 100.0
INCOME into NINCOME
Old Value New Value Value Label
a 1 ab 2 bc 3 cd 4 d
Regression
Variables Entered/Removed(b)
Model Variables EnteredVariables Removed Method
1 NINCOME(a) . Enter
a All requested variables entered.b Dependent Variable: NPERIOD
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate1 .244(a) .059 .040 1.172
a Predictors: (Constant), NINCOME
ANOVA(b)
ModelSum of Squares df Mean Square F Sig.
1 Regression 4.167 1 4.167 3.034 .088(a)
Residual 65.913 48 1.373Total 70.080 49
a Predictors: (Constant), NINCOMEb Dependent Variable: NPERIOD
Coefficients(a)
Model
Unstandardized CoefficientsStandardized Coefficients
t Sig.B Std. Error Beta1 (Constant) 2.112 .386 5.470 .000
NINCOME .334 .192 .244 1.742 .088a Dependent Variable: NPERIOD
ANALYSIS:
1) The value of R2= .059, which shows that the relation between SERVICES(occupation) and RECOMMENDATION is very weak.
2) Standard error = 1.1723) The value of constant coefficient (a) is = 2.112.4) The value of variable coefficient (b) is = .334.5) From ANOVA test we get:
SSR(sum square between rows/columns) = 4.167 SSE(sum square error) = 65.913 SST(sum square total) = 70.080 MSR(mean square between rows) = 4.167 MSE (mean square between error) = 1.373
relation between INCOME(independent variable) and RATE(dependent variable):
Regression
Variables Entered/Removed(b)
ModelVariables Entered
Variables Removed Method
1 NINCOME(a)
. Enter
a All requested variables entered.b Dependent Variable: NRATE
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate1 .193(a) .037 .017 .555
a Predictors: (Constant), NINCOME
ANOVA(b)
ModelSum of Squares df Mean Square F Sig.
1 Regression .571 1 .571 1.851 .180(a)
Residual 14.809 48 .309Total 15.380 49
a Predictors: (Constant), NINCOMEb Dependent Variable: NRATE
Coefficients(a)
Model
Unstandardized Coefficients
Standardized Coefficients
t Sig.B Std. Error Beta1 (Constant) 2.045 .183 11.171 .000
NINCOME -.124 .091 -.193 -1.360 .180a Dependent Variable: NRATE
ANALYSIS:1. The value of R2= .037, which shows that the relation between SERVICES(occupation) and
RECOMMENDATION is very weak.2. Standard error = .5553. The value of constant coefficient (a) is = 2.045.4. The value of variable coefficient (b) is = -.124.5. From ANOVA test we get:
SSR(sum square between rows/columns) = .571 SSE(sum square error) = 14.809 SST(sum square total) = 14.380 MSR(mean square between rows) = .571 MSE (mean square between error) = .309
Correlation Matrix(a)
PROP_FIN REP_MOD DISB_TIM TRANSPCY LOCATION KYC FLEXIBIL BEHAVIOU
Correlation PROP_FIN 1.000 0.543 0.697 0.333 0.503 0.576 0.538 0.595
REP_MOD 0.543 1.000 0.439 0.310 0.309 0.202 0.305 0.441
DISB_TIM 0.697 0.439 1.000 0.388 0.461 0.530 0.372 0.407
TRANSPCY 0.333 0.310 0.388 1.000 0.502 0.381 0.706 0.617
LOCATION 0.503 0.309 0.461 0.502 1.000 0.472 0.482 0.408
KYC 0.576 0.202 0.530 0.381 0.472 1.000 0.564 0.422
FLEXIBIL 0.538 0.305 0.372 0.706 0.482 0.564 1.000 0.800
BEHAVIOU 0.595 0.441 0.407 0.617 0.408 0.422 0.800 1.000
TOP_UP 0.422 0.238 0.525 0.285 0.503 0.451 0.382 0.450
Sig.(1-tailed) PROP_FIN 0.000 0.000 0.009 0.000 0.000 0.000 0.000
REP_MOD 0.000 0.001 0.014 0.015 0.079 0.016 0.001
DISB_TIM 0.000 0.001 0.003 0.000 0.000 0.004 0.002
TRANSPCY 0.009 0.014 0.003 0.000 0.003 0.000 0.000
LOCATION 0.000 0.015 0.000 0.000 0.000 0.000 0.002
KYC 0.000 0.079 0.000 0.003 0.000 0.000 0.001
FLEXIBIL 0.000 0.016 0.004 0.000 0.000 0.000 0.000
BEHAVIOU 0.000 0.001 0.002 0.000 0.002 0.001 0.000
TOP_UP 0.001 0.048 0.000 0.022 0.000 0.001 0.003 0.001
SPSS ANALYSIS OF FACTOR
Step 1 preliminary analysis:
The top half of this table contains the Pearson correlation coefficient between all pairs of
questions whereas the bottom half contains the one-tailed significance of these coefficients. This
correlation matrix is used to check the pattern of relationships. Significance values are scanned
and any variable for which the majority of values are greater than 0.05 are looked for. Then
scanning of the correlation coefficients is done any value greater than 0.9 is looked for. The
values are hence checked and it is found that no value is greater than the above tabulated value.
Therefore the problem of singularity does not exist.
Step 2the Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett's test of Sphericity:
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure... 0.782
Bartlett's Test of Sphericity Approx. Chi-Square 235.799
df 36
Sig.Bartlett 0.000
The KMO statistic varies between 0 and 1. A value of 0indicates that the sum of partial
correlations is large relative to the Kaiser-Meyer-Olkin Measure of Sampling Adequacy.sum of
correlations, indicating diffusion in the pattern of correlations (hence, factor analysis is likely to
be inappropriate). A value close to 1 indicates that patterns of correlations are relatively compact
and so factor analysis should yield distinct and reliable factors. The values between.07to0.8 are
considered good as per our analysis; the value is 0.782 which is good. Hence it is confirmed that
factor analysis is appropriate for this data.
The significance of barlett’s test should be less than 0.05 hence it is again proved that the test is
consistent.
Step 3 Extraction of factors:
In the above table the first column shows us the initial eigen values. The first factor shows us the
eigen value in the terms of percentage of variance explained. The spss then extracts the factors
whose eign values are greater than one based on which two of the factors are extracted. In the
third column rotated sum of squares of the factor loading is shown. The percentage of variance in
this is reduced because of optimization of factors.
Step 4 Table of Communalities:
Communalities
Initial Extraction
PROP_FIN 1.000 0.748 TRUE
REP_MOD 1.000 0.370 FALSE
DISB_TIM 1.000 0.755 TRUE
TRANSPCY 1.000 0.764 TRUE
LOCATION 1.000 0.508 FALSE
KYC 1.000 0.523 FALSE
FLEXIBIL 1.000 0.876 TRUE
BEHAVIOU 1.000 0.764 TRUE
TOP_UP 1.000 0.498 FALSE
Component Matrix(a)
Component
1 2
FLEXIBIL 0.807 -0.474
PROP_FIN 0.806
BEHAVIOU 0.801
DISB_TIM 0.739 0.457
KYC 0.713
LOCATION 0.711
TRANSPCY 0.699 -0.525
TOP_UP 0.647
REP_MOD 0.563
The SPSS has extracted two of the factors however it is statistical tool and we have to judge by
our self as to what factors are important and what are to be left out. Based on thumb rule we are
considering the factors having value above 0.7 are marked as true and they are recommended to
the management.
LIMITATIONS
Every study conducted may have certain shortcomings and unfortunately mine is also a similar
case. A few errors have crept in despite mine best efforts to avoid them but it is expected that
still mine study and findings are very much relevant.
An error may have been due to the samples taken not conforming to the actual
population; this is because the sample was a convenience sample.
Certain questions which are not properly responded by the Respondents.
Personal bias or personal error of the interviewer might also have crept in, some cases,
while interpreting the respondents.
There are several customers who don’t show proper interest in filling the questioner as
they feel that they won’t get any benefit after filling the questioners and it’s just a waste
of time for them.
RECOMMENDATIONS AND SUGESSTIONS
To satisfy their customers and for good dealings in future, the HDFC LTD should make
prompt disbursement of loan amount to the customers so that they can buy or construct
their dream home as early as possible..
The HDFC LTD should use easy procedure or say, less lengthy procedure for the
sanctioning of loan to the customer. There should be less number of legal formalities, in
case this exists, then, these should be completed in less time. This will be helpful in
attracting more customers.
Company should enter into tie ups with reputed builders and development authorities.
HDFC should increase their reach by penetrating into rural and semi urban areas .They
should also capitalize on present customer base by generating referrals .
Aggressive marketing and great publicity through newspapers, hoarding, websites and
other medias should be done.
Restriction to be reduced to bare minimum for loan advances and for repayment. For e.g. offer long-term repayment facilities and have no age restriction to choosing repayment.
The maximum age for repayment could be increase to 65-70 years of age. Such facility will help grow fast retail segment of the bank.
Offer multiple repayment loans.
Service class to be exploited by offering special reduced rates and linking the
repayment from the source from where the pay-cheque to the employee is issued. This needs to undergo special contract with government organization to ensure implementation.
BIBLIOGRAPHY
ANNEXURE
QUESTIONNAIRE
HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED
SECTOR 8, CHANDIGARH
Good Morning Mam/Sir,
We are summer trainees doing our summer industrial training at HDFC Limited. As a part of our project we would like to get some valuable information.
On behalf of HDFC Limited, I want to thank you for giving us the opportunity to serve you. Please help us in filling up the questionnaire so that we can serve you to the best of our abilities. This information will help us to further improve our products and will give us a feedback on our service standards.
SPECIAL INSTRUCTIONS:The object of this study is to collect primary data from the respondents on the above subject purely for the fulfillment of the requirements of the institution. Following pages contain number of questions on various aspects. Each question carries a number of alternatives. Please read the question carefully and indicate your attitude by marking (√) in the check box of alternative that is more appropriate for you. There are no rights or wrong answers. Please answer all the questions without omitting any. Your answers shall be treated as STRICTLY CONFIDENTIAL.
Name: -_______________________________________________________________________
Contact no.:- ________________________
Email: -_______________________________________________________________________
Occupation: Self-Employed Employed (Private)
Employed (Government)
Annual income:<3 lakhs 3-5 lakhs
5-8 lakhs 8 lakhs and above
Q1.Purpose of Visit:
Deposit Enquiry Home Loan Enquiry
Any other
Q2.How did you come to know about HDFC Ltd.?
From friends, relatives From internet
From existing employees Other sources
Q3.How long have you been availing services of HDFC Ltd?
Less than a year 1 -3 years
3-5 years Above 5 years
Q4.Which rate of interest scheme you prefer for housing loan?
Fixed Floating Dual
Q5.Which of the following schemes of loans you are familiar with
Trenching Conversion
Prepayment Tick if not aware
Q6.Have you ever taken a HOME loan from any other bank?
No
Yes (……………………………….>) name of the bank
Q7.Are you aware of the following value added schemes provided by HDFC? If yes, else otherwise, NO-
Life Insurance cover
Home Insurance cover
International credit card facility
Q8.Will you take another loan from HDFC in future or will you recommend our services to someone?
Yes No
Q9.How will you rate the following services of HDFC on a scale of 5:
Factor 1(Very good) 2(good) 3(average) 4(bad) 5(below expected level)
Proportion of Financing
Repayment mode
Time taken for disbursement
Information delivery/ transparency of the process
Location acceptance
KYC norms
Flexibility in work procedures
Behavior of the staff
Top up loan
Q10.In what areas HDFC is better than others :( √ if YES; else BLANK)
Factors/Banks SBI ICICI AXIS IDBI
Prepayment charges
Proportion of Financing
Time taken for disbursement
Processing fees
Transparency of procedure
Location acceptance
Top up Loan
Telephone/ internet services
Flexibility in Work Procedure
Reputation of the institution
Employee courtesy
Promotion strategy
Interest Rate
Pay-back period