A

PROJECT REPORT ON

“MARKETING OF BANKING ASSESTS”

SUBMITTED TO

SAVITRIBAI PHULE UNIVERSITY OF PUNE

IN PARTIAL FULFILLMENT OF TWO YEAR FULL TIME

MASTER OF BUSINESS ADMINISTRATION

SUBMITTED BY

AKASH GUPTA

(BATCH -2014-2016)

UNDER THE GUIDANCE OF

PROF.SHRADHA SHINDE

ASM's Institute of Business Management and Research (IBMR)

Block C, MIDC,Chinchwad,

Pune, Maharashtra 411019

ACKNOWLEDGEMENT

1

I gratefully acknowledge the help and co-operation of the entire Department of Punjab

National Bank (Retail assets Branch) at the outset; I would like to thank Mr. Sanjay Kumar

Sharma for giving me an opportunity to learn at Punjab National Bank – Retail Assets.

I would like to thank my guide Prof. Shradha Shinde for her valuable guidance in

making my project successful. I also wish to thank the IBMR staff whose contribution made it

possible. With all their encouragement and well wishes, my project proved to be fruitful.

Date:

Place: Pune-411019. Akash Gupta

DECLARATION

2

I hereby declare that the Project Report entitled “Marketing Of Banking Assets” written and

submitted by me to the University of Pune in partial fulfillment of the requirements for the award

of degree of Master of Business Administration under the guidance of Prof. Shradha Shinde

original work and the conclusions drawn therein are based on the material collected by me.

Date:

Place: CHINCHWAD Akash Gupta

3

LIST OF CONTENTS

SL NO CONTENTS PAGE NO

1 PROJECT OVERVIEW

2 COMPANY PROFILE

3 OBJECTIVES OF STUDY

4 REVIEW OF LITREATURE

5 RESEARCH METHODOLOGY

6 ACTIVITY CHARTS

7 KEY LEARNING

8 BIBLOGRAPHY

9 QUESTIONNAIRE

4

LIST OF TABLES

NO TITLE TABLE NO PAGE NO

1 Are You Aware About Home Loans? 5.1 46

2Which type of bank do you prefer taking

loan from5.2 47

3Which bank you prefer to take loan 5.3 48

4WHICH LOAN DO YOU PREFER TO TAKE

5.4 49

5What is the interest rate of home loan in PNB, SBI and ICICI bank for individual

customers

5.5 40

6COMPARISON ON THE BASIS OF FLOATING RATE AND FIXED RATE

5.6 41

7What is the Profitability of PNB as

compared to SBI and ICICI5.7 42

5

PROJECT OVERVIEW

PUNJAB NATIONAL BANK RETAIL ASSEST

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinction

of being the first Indian bank to have been started solely with Indian capital. The bank was

nationalized in July 1969 along with 13 other banks. From its modest beginning, the bank has

grown in size and stature to become a front-line banking institution in India at present

A professionally managed bank with a successful track record of over 110 years.

Largest branch network in India - 4668 Offices including 238 Extension Counters spread

throughout the country.

Strategic business area covers the large Indo-Genetic belt and the metropolitan centres.

Ranked as 248th biggest bank in the world by Bankers Almanac, London.

Strong correspondent banking relationships with more than 217 international banks of the world.

More than 50 renowned international banks maintain their Rupee Accounts with PNB.

Well equipped dealing rooms; 20 different foreign currency accounts are maintained at major

centres all over the globe.

Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/s Al Fardan Exchange

Co. Doha, Qatar, M/s Bahrain Exchange Co, Kuwait, M/s Bahrain Finance Co, Bahrain, M/s

Thomas Cook Al Rostamani Exchange Co. Dubai, UAE, and M/s Musandam Exchange, Ruwi,

Sultanate of Oman.

6

With over 38 million satisfied customers and 4668 offices, PNB has continued to retain its

leadership position among the nationalized banks. The bank enjoys strong fundamentals, large

franchise value and good brand image. Besides being ranked as one of India's top service brands,

PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart

from offering banking products, the bank has also entered the credit card & debit card business;

bullion business; life and non-life insurance business; Gold coins & asset management business,

etc.

Since its humble beginning in 1895 with the distinction of being the first Indian bank to have

been started with Indian capital, PNB has achieved significant growth in business which at the

end of March 2009 amounted to Rs 3, 64,463 crore. Today, with assets of more than Rs 2,

46,900 crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank)

and has the 2nd largest network of branches (4668 including 238 extension counters and 3

overseas offices).During the FY 2008-09, with 39% share of low cost deposits, the bank

achieved a net profit of Rs 3,091 crore, maintaining its number ONE position amongst

nationalized banks. Bank has a strong capital base with capital adequacy ratio as per Basel II at

14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on March’09. As

on March’09, the Bank has the Gross and Net NPA ratio of only 1.77% and 0.17% respectively.

During the FY 2008-09, its’ ratio of priority sector credit to adjusted net bank credit at 41.53% &

agriculture credit to adjusted net bank credit at 19.72% was also higher than the respective

national goals of 40% & 18%.

PNB has always looked at technology as a key facilitator to provide better customer service and

ensured that its ‘IT strategy’ follows the ‘Business strategy’ so as to arrive at “Best Fit”. The

bank has made rapid strides in this direction. Along with the achievement of 100% branch

computerization, one of the major achievements of the Bank is covering all the branches of the

Bank under Core Banking Solution (CBS), thus covering 100% of it’s business and providing

‘Anytime Anywhere’ banking facility to all customers including customers of more than 2000

rural branches. The bank has also been offering Internet banking services to the customers of

CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc.

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Towards developing a cost effective alternative channels of delivery, the bank with more than

2150 ATMs has the largest ATM network amongst Nationalised Banks.

With the help of advanced technology, the Bank has been a frontrunner in the industry so far as

the initiatives for Financial Inclusion is concerned. With it’s policy of inclusive growth in the

Indo-Gangetic belt, the Bank’s mission is “Banking for card based technology enabled Financial

Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach

out to the last mile customer. The BC/BF will address the outreach issue while technology will

provide cost effective and transparent services. The Bank has started several innovative

initiatives for marginal groups like rickshaw pullers, vegetable vendors, diary farmers,

construction workers, etc. The Bank has already achieved 100% financial inclusion in 21,408

villages.

Backed by strong domestic performance, the bank is planning to realize its global aspirations. In

order to increase its international presence, the Bank continues its selective foray in international

markets with presence in Hong Kong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and

Norway. A second branch in Hong Kong at Kowloon was opened in the first week of April’09.

Bank is also in the process of establishing its presence in China, Bhutan, DIFC Dubai, Canada

and Singapore. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal. Under

the long term vision, Bank proposes to start its operation in Fiji Island, Australia and Indonesia.

Bank continues with its goal to become a household brand

With global expertise. Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 250th

place. Further, PNB is at the 1166th position among 48 Indian firms making it to a list of the

world’s biggest companies compiled by the US magazine ‘Forbes’.

8

HISTORY OF PUNJAB NATIONAL BANK

1895- PNB established in Lahore by Lala Lajpat Rai.

1904- PNB established branches in Karachi and Peshawar.

1939- PNB acquired Bhagwan Dass Bank Limited.

1947- Partition of India and Pakistan at Independence. PNB lost its premises in

Lahore, but continued to operate in Pakistan.

1960- PNB amalgamated Indo-Commercial Bank Limited (established in 1933)

in a rescue.

1961- PNB acquired Universal Bank of India.

1963- The Government of Burma nationalized PNB's branch in

Rangoon (Yangon).

1965- After the Indo-Pak war the government of Pakistan seized all the offices in

Pakistan of Indian banks, including PNB's head office, which may have moved to

Karachi. PNB also had branches in East Pakistan (Bangladesh).

1969- The Government of India nationalized PNB and 13 other major banks on

19th July, 1969.

1978- PNB opened a branch in London.

1988- PNB acquired Hindustan Commercial Bank Limited in a rescue.

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1993- PNB acquired New Bank of India, which the Government of India had

nationalized in 1980.

1998- PNB set up a representative office in Almaty, Kazakhstan.

2003- PNB took over Nedungadi Bank (established the bank in 1899), the oldest

private sector bank in Kerala. It was incorporated in 1913 and in 1965 had

acquired selected assets and deposits of the Coimbatore National Bank. At the

time of the merger with PNB, Nedungadi Bank's shares had zero value, with

the result that its shareholders received no payment for their shares.

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VISION

"To be a Leading Global Bank with Pan India footprints and become a household brand in

the Indo-Gangetic Plains providing entire range of financial products and services under

one roof"

 

MISSION

‟Banking for the unbanked”

11

PERFORMANCE OF BANK

Financial Performance of the Bank

Punjab National Bank continues to maintain its frontline position retained its NUMBER ONE

position among the nationalized banks in terms of number of branches, Deposit, Advances, total

Business, operating and net profit in the year 2008-09. The impressive operational and financial

performance has been brought about by Bank’s focus on customer based business with thrust on

SME, Agriculture, more inclusive approach to banking; better asset liability management;

improved margin management, thrust on recovery and increased efficiency in core operations of

the Bank. The performance highlights of the bank in terms of business and profit are shown

below:

  Parameters Mar'07 Mar'08 Mar'09 CRAR

Operating Profit* 3617 4006 5744 26.02

Net Profit* 1540 2049 3091 41.67

Deposit 139860 166457 209760 22.47

Advance 96597 119502 154703 26.55

Total Business 236456 285959 364463 24.15

(Rs.Crores)

Respective figure for the corresponding financial year

12

PUNJAB NATIONAL BANKHOUSING FINANCE LTD

INTRODUCTION

This is a wholly owned subsidiary of Punjab National Bank, is engaged in providing housing loans for purchase, construction and up gradation of a dwelling unit. The company offers Loans for construction or for purchase of house/flat from development authorities and also from private builders/ group housing societies as well as for renovation/ repairs .Company also provide finance for construction of residential projects. Loans to NRIs are also provided for purchase/ construction of house/ flat along with a resident/ non-resident co-borrower.

PRODUCTS AND SERVICES

• APNA GHAR YOJANA

• GHAR SUDHAR YOJANA

• LOAN AGAINST PROPERTY

• LOAN FOR COMMERCIAL PROPERTY

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APNA GHAR YOJANA

We provide housing finance to individuals for construction or for acquisition/ purchase of house/flat from development authorities such as DDA/HUDA/PUDA/RHB etc. and also from private builders/groups housing societies. We consider enhancement in loan amount in the event of escalations in cost.

ELIGIBILITY:

a) Individuals in permanent service or having their own business (Resident or non -resident). b) Age of the applicant should not be more than 60 years in case of service class and 65 years in case of businessman or self employed;

LOAN AMOUNT:

a) Minimum loan amount would be Rs.50,000/- and maximum loan amount depends entirely on the repayment capacity of the borrower(s). b) Actual loan eligibility shall be on the basis of repayment capacity as determined be PNBHFL taking into account income, age, qualification and occupation. c) Income of borrower(s) j co-borrower(s) shall be clubbed together for calculation of loan eligibility / the level of finance in case of joint application

MARGIN: The borrower's contribution shall be minimum 20% of the total cost of project, including stamp duty and registration charges. INTEREST RATES: (Effective from 1.07.2006)

PERIOD FLOATING RATE OF INTEREST(%)

3-YEARLY FIXED RATE OF INTEREST

(%)1-10 Years 9.00 10.50

14

11 – 15 Years 9.25 10.5016 – 20 Years 9.50 1.50

SECURITY:

Security for the loan is first charged by way of equitable/registered mortgage of the property to be financed and/ or such other collateral securities as may be necessary. Loans to allottees of flats/houses of development authorities or members of co-op. housing societies or reputed private builders can be considered on the basis of tripartite agreement and/or interim security. With respect to property under construction, interim security may be required. Collateral/interim security may be assignment of Life Insurance Policies, guarantees from sound and solvent guarantors, pledge of marketable shares and such other investments acceptable to PNBHF.

LOAN DISBURSEMENT:

For outright purchase of house/flat, the loan amount will be paid in lump-sum to the vendor at the time of registration after satisfying that the borrower has paid/provided for the balance amount. For houses/flats under construction, the loan amount will be disbursed in stages based on the progress of construction. Disbursement win be made after the property has been technically appraised and all legal documentation has been completed. The borrower has to invest his proportionate share of the cost, prior to disbursement of loan.

The loan can be disbursed either in lump sum or installments according to the requirement of the development authority/society/ private builder.

LOAN REPAYMENT:

Loan repayment shall normally be in Equated Monthly Installments (EMI) comprising of principal and interest over a maximum period of 20 years. The table below shows the EMI for a loan of Rs. 1,00,000/- at different rates of interest.

No. of Years

/Term of loan

9.00% 9.25% 9.50% 9.75 10.00 10.25 10.50 10.75 11.00 11.25

05 2076 2088 2101 2113 2125 2138 2150 2162 2175 218707 1609 1622 1635 1648 1661 1674 1687 1700 1713 172610 1267 1281 1294 1308 1322 1336 1350 1364 1378 139215 1015 1030 1045 1060 1075 1090 1106 1121 1137 1153

15

20 900 916 933 949 966 982 999 1016 1033 1050

SPECIAL REPAYMENT PLANS

In deserving cases, installments may be fixed in increasing/decreasing order or in lump sum or even linked to Life Insurance Policies, under PNB Housing Finances special repayment plans like: • Graduated repayment plan • Decreasing repayment plan • LIC linked repayment plan • Balance payment facility

16

GHAR SUDHAR YOJANA

Under "Ghar Sudhar Yojna", we make available housing finance to individuals for up gradation, renovation or repair of house/flat. It includes among others, internal & external repairs, water proofing, roofing, flooring, electrical, woodwork etc.

ELIGIBILITY:

Individuals who are in permanent service or self employed or have their own business. Age of the applicant should not be more than 60 years.

LOAN DETAILS:

Loan Amount Minimum amount of loan is Rs. 50,000. Maximum amount of oan shall not exceed Rs. 10,00,000. Borrower's minimum contribution will be 25% of the estimated cost of repairs/renovations. Actual loan amount shall be calculated on the basis of repayment capacity of the borrower as determined by PNBHFL.

INTEREST RA.TES (With effect from 1.07.2006)

For loans upto Rs.10 LakhsPeriod Rate of Interest (%)

Upto 15 Years 11.25

  For loans above Rs.10 Lakhs

Period Rate of Interest (%)Upto 15 Years 11.00

Upto 10 YRS rate of interest is 9 %

SECURITY:

17

Normally, the security for the loan shall be first charge by way of Equitable/Registered mortgage of the property. However, PNB Housing Finance at its discretion, can sanction a loan on the basis of: • Pari-passu/second charge in the case of Central/State Govt./Public Sector/Nationalized Bank employees and other similar bodies or • Other securities such as assignment of LIC policies (surrender value at least equivalent to the amount of loan), pledge of marketable shares and such other investments acceptable to PNBHF. Besides this, personal guarantee from sound and solvent guarantors may be asked for.

LOAN DISBURSEMENT:

A loan will be disbursed in lump sum or in stages (not more than three) based on the progress of renovation/repair. Disbursement will be made after the property has been technically appraised and all legal documentation and other formalities have been completed. The borrower has to invest his share of the cost in full prior to disbursement of the loan. The borrower is expected to complete the repair/renovation within six months.

REPAYMENT:

Loan repayment shall normally be in Equated Monthly Installments (EMI) comprising of principal and interest over a maximum period of 10 years.

No. of Years

Monthly reducing Balance   (%)9.00 9.25 9.50 9.75 10.00 10.25 10.50 10.75 11.00 11.25

1 8746 8757 8769 8780 8792 8804 8815 8827 8839 88502 4569 4580 4592 4603 4615 4627 4638 4650 4661 46733 3180 3192 3204 3215 3227 3239 3251 3263 3274 32864 2489 2501 2513 2525 2537 2549 2561 2573 2585 25975 2076 2088 2101 2113 2125 2138 2150 2162 2175 21876 1803 1815 1828 1841 1853 1866 1878 1891 1904 19177 1609 1622 1635 1648 1661 1674 1687 1700 1713 17268 1466 1479 1492 1505 1518 1531 1545 1558 1571 15859 1355 1368 1381 1395 1408 1422 1436 1449 1463 147710 1267 1281 1294 1308 1322 1336 1350 1367 1378 1392

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LOAN AGAINST PROPERTY

We provide loans to individuals against mortgage of their existing residential immovable property situated in urban/semi-urban/metro centres. Finance would be made available for personal requirements of borrowers such as education, marriage of children, family function, foreign travel, medical expenses, furnishing the house, buying a computer or other consumer durables, etc. by mortgaging their existing immovable property.

ELIGIBILITY:

Any individual having regular source of income can apply for the loan. Age of the applicant should not be more than 55 years.

LOAN AMOUNT:

Minimum loan amount would be Rs. 50,0001-. Maximum Loan Amount would be 50 % of the market value of the property as certified by PNBHF's approved valuer OR actual loan eligibility as determined on the basis of repayment capacity of the borrower, whichever is less. In case other earning family members are offered as co-borrowers, their income can also be clubbed with that of the borrower for computation of eligible loan amount.

INTEREST RATES: (With effect from 1.07.2006)

Interest rate for individuals will be 11.50% and for builders (floating rate) will be 12.00%

SECURITY:

We shall require Equitable I Registered Mortgage of property against which loan is being sought. Guarantee of one/ two persons will be required as per existing guidelines of the company.

LOAN DISBURSEMENT

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The loan would be disbursed directly to the borrower in lump sum through his bank account. Disbursement will be made after the property has been technically and legally appraised and legal documentation has been completed.

LOAN REPAYMENT

The loan would be repaid by way of Equated Monthly Installments (EMIs) consisting of principal and interest within a maximum period of 15 years. Repayment will commence in the month subsequent to the month in which loan has been disbursed.

LOAN FOR C0MMERCIAL PROPERTY

We provide loans to individuals against mortgage of their existing residential immovable property situated in urban/semi-urban/metro centers. Finance would be made available for personal requirements of borrowers such as education, marriage of children, family function, foreign travel, medical expenses, furnishing the house, buying a computer or other consumer durables, etc. by mortgaging their existing immovable property.

ELIGIBILITY:

Any individual having regular source of income can apply for the loan. Age of the applicant should not be more than 55 years.

LOAN AMOUNT:

Minimum loan amount would be Rs. 50,000/-. Maximum Loan Amount would be 50 % of the market value of the property as certified by PNBHF's approved value OR actual loan eligibility as determined on the basis of repayment capacity of the borrower, whichever is less. In case other earning family members are offered as co-borrowers, their income can also be clubbed with that of the borrower for computation of eligible loan amount.

INTEREST RATE: (With effect from 1.07.2006)

Interest rate both for individuals and builders will be 12.00%.

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SECURITY: We shall require Equitable/Registered Mortgage of property against which loan is being sought. Guarantee of one/ twu persons "vill be required as per existing guidelines of the company. LOAN DISBURSEMENT

The loan would be disbursed directly to the borrower in lump sum through his bank account. Disbursement will be made after the property has been technically and legally appraised and legal documentation has been completed.

LOAN REPAYMENT: The loan would be repaid by way of Equated Monthly Installments (EMIs) consisting of principal and interest within a maximum period of 10 years. Repayment will commence in the month subsequent to the month in which loan has been disbursed.

21

PNB HOME LOAN

ELIGIBILITY

DOCUMENTATION

EXTENT OF LOAN

RATE OF INTEREST

REPAYMENT & SECURITY

FEATURES & CONDITIONS OF PNB HOME LOAN

22

PNB HOME LOAN

Punjab National Bank provides its customers with various Home loan policies and features at

highly competitive rates. They know the needs of the Indian customers that they have to deal

with, on a regular basis, and provide the policies accordingly. The PNB Home Loan cater mainly

to the requirement of the middle class individuals of India, as Pnb itself is one of the leading

public –sector banks of the nation.

The PNB Home loans are very easily available, and have an even easier process of repayment

that is given over a prearranged time period. This period of time is determined, when the PNB

Home loans are being finalized and along with the loans, the buyers get the opportunity of

having a life insurance covered against him. The basic grounds on which the PNB Home loans

are provided are:

Extending, repairing, modification and even renovating of an already existing building or

flat.

Purchase or building of a new house or flat.

The basic interest of the PNB Home loans may be around 9.5%, and the time period may vary

from a minimum of 5 years to a maximum of 25 years. However there is a certain limitation of

the loan amount that an individual may take from the bank. The maximum amount of the loan

amount sanctioned under PNB Home loans is need based. It generally takes around 7 days to

process the PNB Home loans, from the day it has been finalized with the bank.

Apart from all these details, the PNB Home loans also enable us to choose between fixed and

floating rates that may be applicable from time to time, and keep varying from one time period to

another. As far as the eligibility is concerned, a person between the age group of 18 to 60 years

may be qualified to apply for the PNB Home loans. Along with this, it has also to be noted that

23

the annual income of the individual, who is applying for the loan, must be greater than or equal

to 1.2 Lac INR.

Eligibility

Age of the applicant must be less than 60 years.

Existing home loan borrower can also apply provided their loan account is regular and no

IR irregularity persist.

Documents Needed

1. Proof of identity

2. Proof of income

3. Proof of residence

4. Bank statement or Pass Book where salary or income is credited.

5. Education Certificate

6. Photos

7. Salary slip & form 16

8. Income tax return last 3 years along with balance sheets.

9. Assets liabilities statements.

10. Documents of property.

11. Estimate of construction.

12. Guarantor

Freehold and Leasehold Property

1. The loan can be granted both for freehold and leasehold property.

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2. In case of leasehold, loan can be granted on the basis of power of attorney basis from original

allotee where DDA/PUDA/HUDA permit conversion of leasehold into freehold property

otherwise advance is not permitted against plot purchased on Power of Attorney basis.

Extent of loan

For construction/purchased of house/flat 75% of the cost of construction or purchase of

house/flat.

For carrying out repairs/renovation/additions/alternation: - 75% of the estimated cost

subject to maximum of Rs. 20 lacs.

Loan upto Rs. 20 lacs for purchase of land/plot

Loan is available maximum upto Rs. 2 lacs for furnishing.

Margin

Land/Plot 40%

Construction/repair/addition 25%

Rate of Interest

(Effective from 1st May 2009 – BPLR 11.00%)

Housing finance to

Individuals including

NRI’S /Flexible Housing

Scheme

Fixed option for loans Floating option for loans

25

Upto 20

Lacs.

Above 20 Lacs. Upto 20 lacs. Above 20 Lacs.

(i) upto 5 years 9.25% 10.00% 8.75% 9.50%

(ii) Above 5 years & upto 10

years

10.00% 10.25% 9.00% 9.50%

(iii) Above 10 years & upto

20 years

10.50% 10.75% 9.25% 9.75%

(iv) Above 20 years & upto 25

years

10.75% 11.00% 9.50% 10.00%

The interest rate can be fixed or floating

Option can be changed from fixed to floating and vice versa with flat charges of 2% fee

on balance outstanding.

Fixed interest rate be reset after a block of 5 year in respect of loans disbursed on or after

1.08.2006

Documentation charges

Rs. 1350 + Service Tax

Upfront Fee

0.90% of the loan amount + Service Tax& Education Cess

Repayment

Maximum 25 years.

Installment can be fixed upto maximum age of 65 years.

The income of spouse and earning children can be taken into account provided they are

made co-borrower.

Father/Mother can also be made co-borrower in cases property is in single name of his

/her son and also clubbing of their income is permitted for determining eligibility criteria.

26

Minimum 24 advance cheque should be obtained as and when, 6 cheques remain, fresh

lot to be obtained out of 24, 23 cheques should be of the amount equal to the balance.

Loan is to be repaid in EMI within a period of 25 years or before the borrower attains the

age of 65 years.

Security

Equitable/Registered mortgage of immovable property.

Tripartite agreement be executed amongst Housing Board/ Dev Authority / Coop

Society / Builder the borrower and the bank where mortgage cannot be created

immediately.

Equitable mortgage of other immovable property or pledge of NSC etc. upto 125% of

loan amount if property is being purchased from 1st P/A holder and where there is delay

in the execution of Tripartite agreement.

Verification of security is required once in 2 years.

Features

Loan can be sanctioned by branch/hub near to the present place of work/posting

/residence of the borrower.

Loan can be sanctioned even if property is in the name of wife/parents provided that the

owner is made co-borrower.

Loan can be granted for 2nd house in the same city.

Loan can be granted for purchase of house for rental purpose

For take over, permission of higher authority is not required.

Important Conditions : Loan cannot be granted

For construction in Un-authorized colonies.

If property is to be used for commercial purpose.

Without approved Map.

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COMPARISION BETWEEN ICICI AND STATE BANK OF INDIA

ICICI BANK

ICICI Bank is India's second-largest bank with total assets of about Rs.1,676.59 bn(US$

38.5 bn) at March 31, 2005 and profit after tax of Rs. 20.05 bn(US$ 461 mn) for the year ended

March 31, 2005 (Rs. 16.37 bn(US$ 376 mn) in fiscal 2004). ICICI Bank has a network of about

573 branches and extension counters and over 2,000 ATMs. ICICI Bank offers a wide range of

banking products and financial services to corporate and retail customers through a variety of

delivery channels and through its specialised subsidiaries and affiliates in the areas of investment

banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its

international banking group in fiscal 2002 to cater to the cross border needs of clients and

leverage on its domestic banking strengths to offer products internationally. ICICI Bank

currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and

Bahrain and representative offices in the United States, China, United Arab Emirates,

Bangladesh and South Africa.

ICICI TODAY

Today Icici offers wide range of banking products and financial service to corporate and

retail customer through a variety of delivery channels and throughits specialized subsdiary

affiliates in the areas of investmrnt banking,life and no life insurance,venture capital and account

management.

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TYPES OF LOAN

HOME LOAN

Overview

ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal without any hassles. As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home. ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream.

Loan Feature

Loan Amount 80% of the cost of the property

Interest Rate 10.1% to 11.25%

Tenure Maximum 20 years

Pre Payment Charges

2% on the principal outstanding

Service Charges

0.50% - 1.00% of the loan amount or Rs.1500/- (Rs.2000/- for Mumbai, Delhi & Bangalore), whichever is higher + applicable Service Tax & Surcharge

Docs Required : Home Loan

  Salaried Self

ID Proof

Passport/PAN card/Driving License/Voter ID Card/Any other valid ID proof

Passport/PAN card/Driving License/Voter ID Card/Any other valid ID proof

Address Proof

Electricity bill/telephone bill/Driving License/Voter ID Card/Passport/Any other valid Address Proof

Electricity bill/telephone bill/Driving License/Voter ID Card/Passport/Any other valid Address Proof

DOB Proof10th class certificate/certificate of birth

10th class certificate/certificate of birth

Financial Docs Last 3 months Salary Slip Income Tax Return / Computation of Total

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Form 16Bank Statement for last 6 months from Salary Account Processing fee cheque

Income / Auditors Report / Balance Sheet / Profit & Loss Account certified by Chartered Accountant for last 3 years (3 years for Home Equity) (both for business and personal of partners/directors)Bank Statement for last 6 month from operating accountRepayment Track record of existing loans / Loan closure letterBoard Resolution in case of a companyProof of existence of BusinessOffice Address Proof Photo Identity Proof, Residence Address Proof, Signature Verification is required to be provided for all the main partners / directors.Processing fee cheque

CAR LOAN

Overview

Turn your dream into reality. Own that new car you have always desired, with a little help from ICICI. The bank offer cars loans up to 90% of the ex-showroom price of the car. Its interest rates would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan. ICICI Bank offers new car loans with fixed rate option only.

Turn your dream into reality. Own that new car you have always desired, with a little help from ICICI. The bank offer cars loans up to 90% of the ex-showroom price of the car. Its interest rates would pleasantly surprise you. What's more, you can take up to 5 years to repay the loan. ICICI Bank offers new car loans with fixed rate option only.

Loan Feature

Loan Amount 90% of ex-showroom price

Interest Rate 11.5% to 16.5%

Tenure Up to 5 Years

Pre Payment Charges

Lower of the two amount : 5% on the principal outstanding or Interest outstanding for unexpired period of the loan.

Service Charges

Loan Processing FeesNew Car

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Gross Loan Amt

Processing Fee Amt

Documentation Charges

<2.5 L Rs.2500/- Rs.350/-

2.5 L to 3.9 L

Rs.3500/- Rs.350/-

4 L to 4.9 L Rs.4000/- Rs.350/-

5 L to 5.9 L Rs.4200/- Rs.350/-

>10 L Rs.5000/- Rs.350/-

PERSONAL LOAN

Overview

ICICI Personal Loans is provided only to an existing ICICI Bank customer. It is possible to secure a loan even without having to visit your bank branch. If you have been an ICICI Bank customer for the past 9 months, you might have a pre-approved loan offer waiting for you.

Loan Feature

Loan AmountUpto Rs 15,00,000/- depending on your eligibility, income and repayment capacity.

Interest Rate 14% to 19%

Tenure 12 to 60 months.

Pre Payment Charges

Lower of the two amount :5% on the principal outstanding or Interest outstanding for unexpired period of the loan.

Service Charges2% or 3 % depending on the location of loan amount + Origination Charges of 1.5% of loan amount

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STATE BANK OF INDIA

State Bank of India is an Indian multinational, Public Sector banking and financial services company. It is a government-owned corporation with its headquarters in Mumbai, Maharastra and also its corporate office in Mumbai, Maharashtra. As of December 2013, it had assets of US$388 billion and 17,000 branches, including 190 foreign offices, making it the largest banking and financial services company in India by assets.

State Bank of India is one of the Big Four banks of India, along with Bank of Baroda, Punjab

National Bank and ICICI Bank.

The bank traces its ancestry to British India, through the Imperial Bank of India, to the founding,

in 1806, of the Bank of Calcutta, making it the oldest commercial bank in the Indian

Subcontinent. Bank of Madras merged into the other two "presidency banks" in British

India, Bank of Calcutta and Bank of Bombay, to form the Imperial Bank of India, which in turn

became the State Bank of India. Government of India owned the Imperial Bank of India in 1955,

withReserve Bank of India (India's Central Bank) taking a 60% stake, and renamed it the State

Bank of India. In 2008, the government took over the stake held by the Reserve Bank of India.

State Bank of India is a regional banking behemoth and has 20% market share in deposits and

loans among Indian commercial banks.

TYPES OF LOANS:

HOME LOAN

Overview

"THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India. SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection. SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India.

 Loan Feature

Loan Amount Up to 90%

Interest Rate 10.3% to 10.5% p.a. (depending upon the amount)

Tenure Maximum 30 years or up to the age of 70 years

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Pre Payment Charges

Nil

Service Charges

0.25% of the loan amount , minimum Rs.1000/- for less than 25 lacs.Above Rs.25 Lacs and upto Rs.75 Lacs is Rs.6500/-. Above 75 Lacs Rs.10000/-

Docs Required : Home Loan

  Salaried Self

ID ProofPAN Card/ Voters ID/ Passport/ Driving License

PAN Card/ Voters ID/ Passport/ Driving License

Address ProofRecent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID

Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID

DOB Proof 10th class certificate 10th class certificate

Financial Docs

• Completed application form• Passport size photograph• Proof of Identity - PAN Card/ Voters ID/ Passport/ Driving License• Proof of Residence - Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID• Statements (latest 3 months bank statement / 6 months bank passbook) and Signature identification from present bankers

 

• Proof of business address in respect of businessmen/ industrialists• Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer)• Copy of approved plan and approval from the Local Body

• Statement of Bank Account/ Pass Book for last 6 months with Personal Assets and Liabilities statement and Proof of business address for non-salaried individuals.

Personal Assets and Liabilities statementProof of business address for non-salaried individual

 

 

 

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PERSONAL LOAN

Overview

SBI Saral - Personal Loan makes funds readily available to you whenever you desire or need.Access this facility from over 3000 branches across the country and confidently face the challenge of meeting any kind of personal expenses

Loan Feature

Loan Amount

Minimum: Rs.24,000/- in metro and urban centres,Rs.10,000/- in rural/semi-urban centres.Maximum : 12 times Net Monthly Income for salaried individuals and pensioners subject to a ceiling of Rs.10 lacs

Interest Rate 8.5% above Base Rate floating, currently 18.5% p.a

Tenure up to 48 months

Pre Payment Charges

No prepayment penalties

Service Charges

Processing Charges: 2%-3% of loan amount

CAR LOAN

Overview

Move ahead in life with SBI Car Loans with more than 6000 Branches offering Car Loans. If you have been putting off purchasing that Car, SBI invites you to an attractive Car Loan Scheme with low interest rates, free accidental insurance, easy repayment options, optional SBI life cover, total transparency. Loan finance will include vehicle registration charges, insurance, one-time road tax and accessories worth Rs.25000/-.

Loan Feature

Loan Amount 85% to 90% of on-road price

Interest Rate 10.75% Per Annum

Tenure Up to 84 Months

Pre Payment Charges No pre-payment charges

Service Charges Processing Charges: Rs. 500/- per Car Loan Application

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BUSINESS LOAN

Overview

Traders Easy Loan scheme is launched by SBI to provide hassle free loan to Traders. Any businessman/ entrepreneur/ professional and self employed person can avail this loan. Loan under the scheme can be availed to meet normal business requirements and is sanctioned against equitable mortgage of property.

Loan Feature

Loan Amount Upto Rs 5 crore

Interest Rate 12.50-13.00%

Tenure Maximum 5 years

Pre Payment Charges Not provided

Service ChargesProcessing charges:1% of the loan amount

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RESEARCH

METHODOLOGY

INTRODUCTION

The procedure adopted for conducting the research requires a lot of attention as it has direct bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that research methodology, which we used at the time of conducting the research, needs to be elaborated upon. Research Methodology is a way to systematically study & solve the research problems. If a researcher wants to claim his study as a good study, he must clearly state the methodology adopted in conducting the research so that it may be judged by the reader whether the methodology of work done is sound or not.

The research method here includes:-

1. Meaning of research 2. Research problem 3. Research design 4. Sampling design 5. Data coIlection method 6. Data analysis and interpretation 7. Recommendations

Meaning of Research

Research is defined as "a scientific & systematic search for pertinent information on a specific topic. Research is an art of scientific investigation. Research is a systematized effort to gain new knowledge. It is a careful investigation or inquiry especially through search for new facts in any branch of knowledge. Research is an academic activity and this term should be used in a technical sense. Research corn prices defining and redefining problems, formulating hypothesis or suggested solutions; making deductions and reaching conclusions to determine whether they fit the formulating hypothesis. Research is thus, an original contribution to the existing stock of knowledge making for this advancement. The search for knowledge through objective and systematic method of finding solution to a problem is research.

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Research ProblemThe first step while conducting research is careful definition of research problem.

Research design A research design is the arrangement of conditions for collection and analysis of data in a manner that aims to combine relevance to the research purpose with economy in procedure. Research design is the conceptual structure within which research is conducted. It constitutes the blue print for the collection measurement and analysis of data. Research design includes an outline of what the researcher will do from writing the hypothesis and its operational implications to the final analysis of data.

A research design is a framework for the study and used as a guide in collecting and analyzing the data. It is a strategy specifying which approach will be used for gathering and analyzing the data. It also includes the time and cost budget since most studies are done under these two constraints.

Research design can be categorized as:

• Exploratory research • Descriptive • Diagnostic research • Experimental research

Sampling Design

Sampling is necessary because it is almost impossible to examine the entire parent population (i.e. the entire universe) various factors such as time available, cost, purpose of study etc make it necessary for the researchers to choose a sample. It should neither be too small nor too big. It should be manageable. Data Collection Method

After the sample has been taken the type of information to be sought was decided upon, the next step is to collect the data. As the data collected is to be the base of what we plan to find out, the relevant care should be taken that the errors in methods of collection of data involved are minimized. The factors of availability of time, cost and human involvement come to effect the reliability of the data collected. Broadly there are two types of data:

• Primary data • Secondary data

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Secondary data means the statistics not gathered for the immediate study at hand but for some other data. It is the data collected by some one for purposes other than solving the problem being investigated. On the other hand primary data are generated in a study specifically designed to accommodate the data needs of the problem at hand.

ANALYSIS AND INTERPRETATION OF DATA AND RECOMMENDATIONS

The data collected in the aforesaid manner have been tabulated in condensed form to draw the meaningful result. The different techniques are adopted to analyze a data.

All the data and the material is arranged through internal resources and the last part of the project consist of the conclusions drawn from the report, a brief summary and recommendations and giving the final touch to the reports by stating a conclusion.

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COMPARATIVE CUSTOMER PREFERENCE ANALYSISIN HOME LOAN SECTOR

SCOPE OF THE STUDY

The present study was conducted by the researcher in Delhi covering some main and popular markets of Delhi because of constraints of time and money study could not be extended to other cities. As Delhi being a popular and among the good cities of India is a good market of financial products & also here customers of different classes like business segment, service segment, and professional segment are in excess. Since the report aims at finding the potential for financial products at Delhi itself taking into consideration certain limits and problems, the area was chosen on the basis of coverage of product no. of respondents.

DELHI MARKET SEGMENT The market of Delhi mainly comprises of the rural & urban people with population of around 15 million. The literacy rate is fairly high and there are around 65% males & 35% females.

This data clearly indicates the emergency of a middle class at Delhi. As is elsewhere, this class is the harbors of modern facilities. Apart from other contribution, it is this class for its money. These demands exhibits a vigilant customer & financial products have been on their toes to return them to pay the least if not attract the other ones.

Besides Delhi also boasts of a large financial market. It has an upcoming pharmacy distribution network & lots of Govt. institutions. There is increasing use of Cyber Cafe Internet & cable connection. The market size of the city is around 2 lacks, a significant chunk of which is occupied by the upcoming middle classes.

Besides, there is good number of industries. Apart from this, there are many management and engineering conege's and universities. The much roaming growth of such institutions shows the presence of many high nets worth individual is Delhi.

For the purpose of the study the respondents were selected from all corners of Delhi mainly popular colonies and for gathering information about the trends, demands & brands available in financial products.

The data was collected through questionnaires. The question consisted of 10 questions along with the information regarding the occupation of the respondent. The number of respondents were kept to 100. The graphs of all the findings question wise are given below along with the tables of the data collected.

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DATA ANALYSIS – PART I

Comparison of banks based on Interest Rates for home loan

PNB SBI ICICI8.4

8.6

8.8

9

9.2

9.4

9.6

9.8

10

10.2

10.4

Up to 20 Lacs

Above 20 Lacs

9.259.15

10.15

10

9.75

10.3

Up to 20 Lacs Above 20 Lacs

INTERPRETATION

In PNB Bank up to 20 lacs – 9.25% ; Above 20 lacs – 10% In SBI up to 20 lacs – 9.15% ; Above 20 lacs – 9.75% In ICICI up to 20 lacs – 10.15% ; Above 20 lacs – 10.30%

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Comparison on the basis of Floating Rate and Fixed Rate

PNB ICICI SBI0

5

10

15

20

25

9.95 9.85 10.5

10.15 9.159.25

Floating Rate Fixed Rate

INTERPRETATION

The above graph shows the difference between Floating and Fixed rates of different banks For ICICI the Floating Interest Rate is 9.95% and Fixed Interest Rate is 10.15% For SBI the Floating Interest Rate is 9.85% and Fixed Interest Rate is 9.15% For PNB the Floating Interest Rate is 10.50% and Fixed Interest Rate is 9.25%

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Comparision on the basis of Profitability

PNB ICICI SBI0%

5%

10%

15%

20%

25%

30%

35%

40%

25%

20%

30%

35%

15%

25%

Profitability Growth

*Source: Balance sheet of SBI, ICICI & PNB

INTERPRETATION

The above chart depicts profitability and growth of PNB with other banks. As we can see that SBI bank has higher profitability and thus higher growth with respect to other banks

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Comparision on basis of easy availability of home loans

32%

41%

27%

PNB ICICI SBI

BANK PERCENTAGEPNB 32%SBI 41%

ICICI 27%

INTERPRETATIONS

The above pie chart shows that taking loan from SBI is easier as compared to PNB and ICICI bank.

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Comparison on basis of Ease of documentation

PNB SBI ICICI0

5

10

15

20

25

30

35

40

45

35

40

25

BANK PERCENTAGEPNB 35SBI 40

ICICI 25

INTERPRETATIONS

Above pie chart state that documentation process for taking home loans is easier in SBI as compared to PND and ICICI.

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Comparision on basis of various loan products interest rates

P N B S B I I C I C I

14 13.75 14.5

12.75 13 13.5

10.5 10.911

PERSONAL LOAN EDUCATIONAL LOAN CAR LOAN

INTERPRETATIONS

PNB provides Personal loan @14% and Education Loan @12.75% and Car Loan @10.5%.

SBI provides Personal loan @13.75 and Education Loan @13% and Car Loan @10.9%

PNB provides Personal loan @14.5% and Education Loan @13.5% and Car Loan @11%

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Data Analysis Part II

QUESTIONS ASKED TO RESPONDENT

Are You Aware About Home Loans?

100

YES NO

Interest in home loans PercentageYes 100No 0

INTERPRETATION

The above Pie chart depicts that 60% of the people surveyed are interested in home loans.

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40% of the people surveyed are not interested in home loans.Which type of bank do you prefer taking loan from?

INTERPRETATIONThe above chart depicts that:

70% of the people surveyed chose Nationalized banks as the bank the prefer taking loans from, clearly stating that Nationalized banks are more trusted than the Private banks

30% who chose Private bank, when asked for the reason of choosing those banks gave customer satisfaction as the reason for doing so.

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Private Nationalized

Bank type PercentagePrivate 30

Nationalized 70

Which bank you prefer to take loan?

PNB ICICI SBI Others0

5

10

15

20

25

30

35

40

45

Bank PercentagePNB 30ICICI 22SBI 40

Others 8

INTERPRETATION

The above graph depicts that maximum percentage of the sample size prefers SBI bank over other banks as interest rates of SBI is lower than other banks. SBI got the highest percentage of 40%, while PNB was chosen by 30% of the sample, rest where by ICICI and other banks.

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Which loan do you prefer to take?

Home Loan Education Loan Car Loan Personal Loan0

5

10

15

20

25

30

35

40

45

50

Type Of Loan PercentageHome Loan 45

Education Loan 20Car Loan 20

Personal Loan 15

INTERPRETATION

It has been found from the graph that 45% of the sample has gone for the home loan, showing that the demand for home loan is rising as compared to other loans . Education and Home Loan both were favored by 20% of the sample respectively.

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According To Your Opinion Which Bank Is More Customer Friendly?

PNB ICICI SBI Others

Customer Friendliness PercentageICICI 26PNB 18SBI 24Others 15

INTERPRETATION

The above pie chart shows that maximum number of people finds ICICI more customer friendly than other banks.

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ACTIVITY CHART

Particular Activity

1st week Find out the project topic and discuss with company guide and college

guide.

2nd week Finalize the topic and making a schedule for how to go about with project.

3rd week Find out the company profile , history, current data and the various loan

schemes.

4th week Learn what are the various documents and procedure required for the loan,

and checking the eligibility of customers

5th week Collecting data of SBI bank, company profile, various types of loan

provided by the bank.

6th week Collecting data of ICICI bank , company profile, various types of loan

provided by the bank

7th week Making the comparison between PNB, SBI and ICICI bank. Preparing

thequestionnaire, conducting data analysis and finding interpretations

8th week Preparation of the project report

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KEY LEARING

Interest rate is the main factor considered by the customers while taking the loan.

30% of the customers have preferred to the loan from PNB and remaining from SBI,

ICICI and other banks.

Documentation of PNB is more legible than other banks.

In PNB various types of loans are available for lower income group.

Lower income group face difficulty while taking home loans as the they don’t have

enough collateral for guartnee.

As compared to SBI and ICICI bank PNB provides loans more quickly and in hassle free

manner.

Out of the governement employees surveyed majority preferred loans from Nationalized

Bank.

Housing loan is most demanded by the people in the current scenario, as it is difficult to

purchase a home without loan

Other than housing loan, Education loan is taken by people from PNB.

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CONTRIBUTION TO THE ORGANIZATION

Banks should introduce new Retail loan products, so as to cater to different customer

segments.

Banks should also pay attention to customer satisfaction by working on fast and easy

services.

Advertisements pays an important role in getting customer attention and banks should

focus on those.

Banks should come up with information centers, so as to provide the customers with the

knowledge of various products in the market. Thus helping them make better choices.

Banks should focus on strong branch network.

Banks should also come up with different loan repayment and EMI schemes.

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BIBLIOGRAPHY

Books

Agrawal, N.K. (2003) Marketing Of Banking Products, Sterling

Publishers Pvt, Ltd, New Delhi

Agrawal, N.P (1983) Analysis of Financial Statements, National

Publishing House, New Delhi.

Websites:

www.pnb.com

www.indiainfoline.com

www.sribd.com

www.sbi.co.in

www.icicibank.com

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QUESTIONNAIRE

Survey ReportData collected is only for academic record and it will be kept confidential.

Please fill the correct response (•)

Q1 Are You Interested In Taking Home Loans?

o Yes

o No

Q2 Which type of bank do you prefer taking loan from?

o Private Banks

o Nationalized Banks

Q3 Which bank you prefer to take loan?

o SBI

o ICICI

o PNB

o Others

Q4 Which loan do you prefer to take?

o Home Loan

o Education Loan

o Car Loan

o Personal Loan

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Q5 Is your bank customer friendly?

o Yes

o No

Q6 How would you rate on your bank’s documentation procedure?

o Easy

o Average

o Difficult

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