ACKNOWLEDGEMENT

Perseverance, inspiration and motivation have played a great role in the

success of any venture. It would be incomplete to submit this report without

acknowledging the people behind this endeavor and without this report

without acknowledging the people behind this endeavor and without whose

support I wouldn’t have able to achieve this.

It gives us immense pleasure to express our gratitude to everyone who

shared with me their precious time and effort during the project.

A mammoth job like this calls for both intellectual nourishment and

encouragement. I would like to thank Mr. Rajeev bhargav

( Branch Head HDFC, Jaipur) for giving me an opportunity to

work on such a fabulous project .

ABHISHEK JOSHI

M.B.A 2nd SEMESTER

AES PGIBM

AHEMDABAD.

TABLE OF CONTENTS

S.No. Contents1 Preface2 Aims of Study3 Age Profile4 Introduction5 Mortgage loan6 File Process7 Loans for every need8 Achievements of HDFC Bank9 Research Methodology10 Observation11 Findings12 Comparative Analysis13 Analysis Part14 Confusion15 Suggestions/Recommendations16 SWOT Analysis17 Appendix or Questionnaire18 Bibliography

PREFACE

Several researches are conducted every year. But very little care is taken to

am important are a relating to research methodology. Due to the ignorance

or absence of the research methodology, the study proves to be futile. In the

context of planning, organizing and development, the importance of research

depend upon its quality and not in quantity.

I have use appropriate methodology for my research study. It has planned,

organized and developed in a very systematic manner. Great attention has

been given towards the quality of the research. I tried to the best of my

knowledge, experience, sincerity, cautiousness, and concentration with

analytical power for this research study. This research study is conducted for

the HDFC BANK branch Jaipur regarding the product and services. But and

to the new budding of researchers who will conduct such type of research in

future to enhance their work.

I would like to convey my sincere gratitude towards Mr. Rajeev Bhargava

(Branch Head HDFC, Jaipur) I would also like to thank Mr Taral

Pathak(Training and placement officer AES PGIBM) . They guided me at

each and every step in our research programme. They motivated me to

collect fair, accurate, reliable and unbiased information.

I would be failing my duty if I do not express my sincere gratitude towards

my parents friend and colleagues. They significantly contributed their

support during the course of my project.

At last I extend my sincere thankful to all those customer who have given

me reliable and valuable information regarding service in service centers.

AIMS OF THE STUDY

The study helps to know about the market position of the bank and the

opinion of the customers and respondents about the bank as well as the

service provided in respect of various products offered by the bank. The

respondents were the customers as well as the non customers. Some of them

were the employees of HDFC Bank and other were the non-employee.

The aims of the study was to be well aware about the retail financing

products or assets like personal Loan, Mortgage Loan, Auto Finance, Home

Loan, Commercial Vehicles etc.

ORGANISATION PROFILE

HDFC bank HDFCBK was incorporated in Aug. 1994 and promoted by

Housing Development Finance Corporation limited (HDFC) India’s premier

housing finance company, which also enjoys an impeccable track record in

India as well as in international markets. HDFC was amongst the first to

receive an in ‘principle’ approval from reserve bank of India (RBI) to set up

a bank in the private sector, as part of the RBI’s liberalization of the ‘Indian

banking industry. HDFC bank concentrates in four areas-corporate banking,

treasury management, custodial services and retail banking. It has entered

the banning consortia of over 50 corporate for providing working capital

finance trade services, corporate finance and merchant banking. It is also

providing sophisticated.

Product structures, sound advice and fine pricing mainly in areas of foreign

exchange and derivatives, money markets and debt trading and equity

research through its state-of-the –art dealing room with its sophisticated and

customer friendly facilities & services including multi-branch access, ATM

& cluster deposits and is well positioned and is well positioned to establish a

significant niche for itself in retail banking.

In Feb. 2000, times bank has been amalgamated with the bank. This is an

important milestone in the history of bank as well as Indian banking sector,

being the first merger of two private sector banks. This adds significant

value to bank in terms of increased branch network, expanded geographic

reach, enhanced customer base, skilled manpower, etc. Reverently

HDFCBK & life insurance corporation from alliance for online facility for

payment of insurance premium . With this facility, LIC policyholders can

now pay their insurance premiums through HDFC bank’s on -line payment

facility . HDFCBK has become the first private sector bank to be authorized

by the central of direct taxes as well as the RBI to accept direct taxes,

commencing April 01,2001. the taxes will be accepted at specified branches

of the bank. Also it has announced a strategic tie-up with Bangalore based

business solutions software developer tally solution Pvt (TSPL) for

developing and offering products and services facilitating on-line accounting

and banking services to SME’s (small and medium enterprise). in 2001-02

the bank was listed on the new York stock exchange in the form of ADS.

Each ADS represents 3 equity shares. Consequent to the issue . The paid up

capital of the bank has increased by RS.37.42 corers.

INTRODUCTION:

A loan is a kind of advance made with or without security. In the case

of a loan two banks makes a Lump sum payment to the borrowers. It is

given tour a fixed period at an agreed rate of interest.

In a present scenario it is loan that is running the life in more

meaningful manner. Through loan or Borrowing or credit or funding a part

of society (middle +Lower) enjoy well in advance. I think loan is getting

alone with our life.

OBJECTIVE

a) Being a career objective develop understanding about the retail loan

assets i.e mortgage loan, personal loan, auto loans, home loan.

b) Why the NPA’s are taking place in commercial Banking.

c) Policy of credit management which approves (credit approval memo).

d) Making the competitive study about the different segments of loans.

e) To know the valuation criteria of technical feasibility, financial

viability and role of F.I agency.

f) Key-Criteria of Loan Funding.

MORTGAGE LOAN

Conditions of Funding Financing:-

(Policy Snapshot)

i) Loan Amount

Minimum =Rs2 Maximum = 1 Crore.

ii) Minimum Property Value

Residential = 8 Laces Commercial = Rs 15 Lacs.

iii) Income of Maximum 3 persons to be considered for eligibility

calculations

iv) Age Angle

minimum = 21 years

maximum = Salaried – (60 years)

Self – employed – (65 years)

v) Age of property should not exceed 40 years at the end of the Loan.

vi) Property to not be situated in Negative area List as per HDFC

Bank.

vii) Financing Pattern

TV (Property) Retail Premium

Residential 55% 60%

Commercial 45% 50%

RETAIL MORTAGE PRODUCTS

(i) Retail mortgage take-over (RMT)

(ii) Premium mortgagee takeovers (PMT)

(iii) Liquid Income products (LIP)

(iv) Gross Turnover Product (GTP)

(v) Gross Receipts Products (GRP)

(vi) Banking Products (BKP)

1. RMT

a) Loan Amount up to Rs. 50 Local

b) Minimum Repayment track records of 18 months with maximum 2

bounces.

c) Loan Eligibility

= Principal + (No. of EMI’s X EMI paid)

2. PMT

Loan Amount = 50-100 Lecs.

Loan eligibility = According to RMT.

3. LIP

a) Applicable for traders Service industry etc. (NON-Manufacturing

concerns)

b) Maximum & Minimum criteria

Minimum = RS 5 Lacs Maximum = 25 Lacs.

c) Documentation :- Normal including financial & 12 months Bank

Statement.

(4) GTP (Gross Turnover Product):-

a) Applicable for Traders, Distributors & Businesses (Non-

Manufacturing)

b) 10% of gross turnover to be taken as net profit

c) Loan Eligibility – As per normal calculation based on re-

worked net profit.

(5) Gross Receipts Product (GRP)

a) Applicable – Doctors & Architects only.

b) Maximum – 25 Lacs

c) 50% of Gross Receipts to Take as net profit

(6) Banking Product (BKP):-

a). Loan Range – 25 Lacs.

b) No Financial or income documents required

c) Only Saving & current A/C Customers will be evaluated.

d) Maximum LTV will be 40% (both Residential & Commercial)

e) Banking Norms.

i) AV. balance (an a daily basis) to be calculate adjusted for cheques

returns (Last 12 months statement)

(ii) Not more than 2 cheques bouncing over 6 month’s period.

(iii) Loan’s funding

Up to Rs. 15 Lacs

= Average balance / EMI should be 2 times

(iv) Up to Rs 25 Lacs

= Average Balance / EMI Should be 3 times

Documentation Requirement:-

Duly filled application form.

Recent passport size photograph of applicants.

Form-16 for last 2 years for salaried applicants.

Acknowledged copies of income lax returns & computation of income

for last 2 years.

Resident / ID proof of all applicants.

For non-Salaried applicants Copies of audited financial statement s for

last 2 years for the firm company in which the applicant / co-applicnts

is the partner /owner/ Director (As the Case may) certified by a C.A.

(Along with name & M.N.)

FILE PROCESS

Customers – DCA- BANKS- CPA (Central Processing Agency – FI

Agency) – Personal – Meeting or Interview – Survey Conducted – Back to

Bank with report attached – CAM decides about Sanction of Loan –

Approves – cheques in the hands of customers.

LOANS FOR EVERY NEED

Now, our loans come to you in easy –to –pay monthly installments, and are

available with easy documentation and quick delivery.

Personal loans: Take a loan of up to Rs. 15 lacs for a wedding, education,

purchase of a computer or an exciting holiday.

New car loans and used car loans :- finance up to 90% of the cost of a

car ,new or used ! and the loans come to you with easy documentation and

speedy processing at attractive interest rates.

Loans against shares:- Get an overdraft up to Rs. 10 lacs at an attractive

interest rate against physical shares ,up to 50% of the market value of your

shares. In case of Demate shares, you can get a loans Against shares of up to

65% of the market value of your shares, till Rs. 20 lacs.

Two wheeler & consumer Loans :- To help you buy the best durables for

your home .

Demat account:- protect your shares from damage , loss and theft, by

maintaining your shares in electronic form. you can also access your demate

account on the interest .

Current Account :- Get a personalised cheques book , monthly account

statements , inter-branch banking and much more.

Mutual funds :- Apart from a wide choice of mutual funds to suit customer

needs you benefit from export advice on choosing the right funds based on

in depth market analysis.

International credit card:- Get an option of silver ,gold ,or Health plus

credit card accepted worldwide from a world-class bank .

NRI Services : A comprehensive range, backed by unmatched features and

world-class service, ensures NRI’s all the banking support they need .

Forex Facilities: Avail of foreign currency, travellers cheques, foreign

exchange demand drafts, to meet travel needs .

Insurance : HDFC Bank now brings Life Insurance and Pension solutions

like risk cover Scheme, Children’s Plan and Personal Plan from HDFC

standard Life Insurance Company Ltd .

* Insurance is the subject mater of solicitation.

ACHIVEMENTS OF HDFC BANK

The bank was selected for the economics times award-corporate

excellence foe emerging company.

The bank has continued to receive awards and gain recognition from

various leading domestic and international publications during2002-

03.

The bank was selected as “best bank in India 2002” by Euro money,”

best local bank in India 2002 by finance Asia.

The bank was also rated as the “best domestic commercial bank 2002”

by Asia money .

The bank was selected from amongst over 400 nominations from 24

countries, to be a recipient of the computer world honors 2002 award

in the finance, insurance and real estate category for its use of

information technology.

RESEARCH METHODOLOGY

DATA SOURCE:- New and previous record of existing customers.

RESEARCH APPROACH:- survey Approach

RESEARCH INSTRUMENT:- Structured questionnaire

SAMPLE PLAN:-

ELEMENT: Existing and new customers

SAMPLE UNIT: Delhi and jaipur

SAMPLING METHOD: Random sampling

SAMPLE SIZE: 200

DATA COLLECTION: Personal Interview Method

CONTACT METHOD:

Personal interview of the entire respondent was carried out .

TARGATE CUSTOMER:

CORPORATE Houses

Corporate Houses Covered:

Times of India Building

Sterling group of companies

Godrej Group of Companies

L & T Head Office

HPCL

BPCL

BCE

Taj President

Birla Sunlife Insurance

East Coast Pvt Ltd

Samsung India

Sansui India

Print Info Tech

Kodak

OBESRVATION:

1. People are of the view that initially bank provides very good

services and later on it starts deteriorating.

2. People are afraid of the hidden cost which most of the banks

generally charges later on .

3. Transaction Rate of the De-mate A/C is very High as Compared

to other DP.

4. People are very unsatisfied with HDFC ATM Network .

5. Instead of Folio maintenance charges , transation charges

should be lowered down.

FINDINGS:-

a) 50% People of country is covered by loan umbrella.

b) Private Banks (Specially ICICI & HDFC) are playing a key-role in

mortgage loan segments.

c) People seems to be problematic with regards to nationalised Banks so

for as formalities is concerned.

d) 5% Defaulter cases were estimated in entire project.

e) In cut-throat competition rate of interest (ROI) plays vital role in

sanctioning to loan.

f) Private finance companies like GE country wide are taking market

shore of entire loan segment.

g) Deposit the money in nationalised Banks due to high ROI, Pick-up the

money from private banks due to lower ROI.

h) Working capital management credit management, risk management

system is up to the mark.

i) In my finding it seems that loan has become part and parcel in every

corner of life.

COMPARATIVE ANALYSIS

We also did analysis about net banking and come to a conclusion that:-

HDFC bank gives a convenient way of accessing your bank account from

anywhere and at any time. When your register for net banking, HDFC bank

issues you a password, which you can use with your customer identification

number to do all your banking transactions, round the clock.

All you can do through Net banking of HDFC bank are:-

1. Account balance enquiry.

2. Account statement enquiry.

3. F.D. Enquiry.

4. Net F.D. request.

5. Funds.

6. TDS Enquiry.

7. Demand Draft.

8. Stop payment request.

9. Cheque status enquiry.

10.Cheque book request.

11.Demat on the net.

Experience a live Demo of net banking. Log on to www.hdfcbank.com.

whereas Global trust bank provides such facilities like:

1. Account information.

2. Depository enquiry.

3. Requests.

4. Transfers.

ANALYSIS PART

Loan Segment Type of Loan ROI Roll EMI PER

LACS

SANCTION OF

LOAN

DOCUMENTTION

PROCESS

1. Mortgage (Loan

Against Property

)

2. HOME

construction

Loan

3. Personal or Cash

Loan

4. Auto Finance

Secured

Unsecured

Unsecured

Unsecured

11%

8%

24-32%

5-6%

Rs. 1378

Rs. 956

Rs. 3612

Rs. 778

Rs. I Crore

Less than

Mortgage

Rs. 10 Lacs

Mutually

agreed

More

- do -

- Less Requirements

-High-

28%

16%

21%

10%

25%

Personal Loan

MortgageLoan

Auto

CommercialLoan

Home Loan

CONCLUSION

(1) Huge-crowd on the road due to auto finance

(2) Personal Loan is kecking out the personal problems of people.

(3) Loan against property (Mortgage Loan) is also growing concept due

to rising in price of land due to not being charged of depreciation on

Land.

(4) Home Loan is also building block to build up the building of every

dreams exist in society

SUGGESTIONS / RECOMMENDATIONS

On the Analysis with the peer banks, following weaknesses in the

system were found out. The possible remedy is also suggested hereunder:

(i) Branch expansion should be expanded to small cities to capture

huge market share.

(ii) Documentation, Must be Minimize for easy disbursement.

(iii) NPA mechanism must be made easy for the betterment of the

Banks.

(iv) Branch expansion should be touching the entire Jaipur City

because all the buildings of banks exist is c-scheme mostly.

(v) Should also make attention to the capital market services i.e.

Depository services, custodian, de-mat through its subsidiary

following the ICICI. Bank with subsidiary I-CEK.

(vi) Analysis the policies of ICICI Bank, standard chartered. Banks &

make the action plan understanding the expectations of borrowers.

(vii) There are so may people who are interested in opening their

account in HDFC Bank.

(viii) Majority of people access to net.

(ix) Most of the people are aware of net banking. But very few people

use it, as they say that they think net is not safe and doing banking

transaction on net would not prove safe.

(x) A, lot of people agree to this thing that net is convenient and time

saving.

(xi) Higher ATMS in Jaipur rather than any other banks in Jaipur.

(xii) We came to conclusion that people think net banking should be

very with tight security.

(xiii) Bank must strive continuously to come out with the product

innovation ahead of its competitors. For this, the bank needs to

identify and enter into a niche market. For example, it might focus

on the youth / student oriented products and tap its huge potential.

(xiv) Kotler says, “Its 5 times as costly to make a new customers and

just not believing in increasing their numbers. This requires giving

more attention to its existing base of customers by way of better

after sales service. For example, motivation should be set high for

the employees of the bank to attend and provide solution to the

customer’s query and if possible check out with the preferred

customers at regular intervals.

(xv) The bank must rejuvenate its housing loan plans (earlier core

activity) . it has lost substantially to its rivals in this sector . it must

come out with some attractive policies in this regard.

(xvi) The bank focuses mainly on the Metropolitan cities. It lacks

geographical reach in other important centers (semi urban and

rural) in the country which are considered to be the main

mobilization centers. It must take a lead to its competitors by

opening up more and more branches and there by registering its

presence in these important areas.

(xvii) Creating awareness in the customers to make use of net banking /

phone banking facilities would enable bank to cut down its cost of

teller transaction, The money, thus saved, could be utilized in

providing better service to its customers.

(xviii)Cross selling of products to customers could enhance the

company’s bottom line to a great extent.

The most important aspect is none but the people working in the

organization. Without their willing co operation, all other efforts are

rendered useless. So, the bank must continuously see to it that their

employees are always satisfied. The perks given to them should match the

perks prevailing in the industry. Some discretion can also be given to them

in certain regards. Thy must always be appreciated for the good work done

by them.

SWOT

1. STRENGTHS:-

(a) Leader in home loan segment

(b) Account having in HDFC Bank will get more facilities.

(c) Credits at the sole discretion of HDFC Bank.

2. WEAKNESSES:-

(a) Strict Policy of funding

(b) Disbursement mechanism is not unto the mark.

(c) Personal Loan Policy of bank is not up to the mark compared to

ICICI Bank

(d) Defaulter cases.

3. OPPORTUNITY:-

(a) To tap the huge market share.

(b) To maintain the leadership in home loan segment.

(C) To tape the opportunities lying in Auto finance.

4. THREATS

(a) Major Private players like ICICI, standard chartered.

(b) May lose the leadership position in any time if competitors

wins the game.

(c) RBI Policy.

PROJECTREPORT

. HDFC BANK. JAIPUR

On “Corporate Finance and Merchant Banking”

As a prerequisite for two years full time regular degree course of

Master in Business Administration

(2005-2007)-

Submitted To:- Submitted By:

Mr Rajeev Bhargava Abhishek joshi

(Branch Head,HDFC, Jaipur)

APPENDIX OR QUESTIONNAIRE

QUESTIONNAIRE FOR CUSTOMERS

Name_________________________________________

Address_________________________________________

Sex___________________

Age___________________

Education ______________________________________

Occupation_____________________________________

Q.1 You are banking with (Tick the appropriate option)?

A. Private Banks

B. Nationalized banks.

Q.2. Which type of account do you operate in (Tick the appropriate

option)?

A. Saving Bank Account

B. Fixed Deposit Account

C. Current Account.

D. Recurring Deposit Account

E. Internet Account

Q.3 What made you open the Account in HDFC bank?

Q.4 What time it took you to open the Account?

Q.5 Are you aware about the debit cum ATM card provided by

bank (Tick the appropriate option)?

A. YES

B. No

Q.6 Are you aware of 8 to 8 working of HDFC bank (Tick the

appropriate option)?

A. YES

B.NO

Q.7 Is ATM convenient to you ( Tick the appropriate option)?

A. YES

B. NO

Q. 8 Have you ever faced any problem in operating ATM(Tick the

appropriate option)?

A. YES

B. NO

Q.9 How often do you use ATM for banking operation?

Q.10 Do you feel ATM is safe and secure (Tick the appropriate

option) ?

A. YES

B. NO

Q.11 What is the behaviour of bank employees towards you (Tick

the appropriate option)?

A. WELL

B. FAIR

C. BAD

Q. 12 Have you ever made complaint against any employee (Tick

the appropriate option)?

A. YES

B. NO

Q.13 Do personal relationships with the employees help cut short

the waiting time (Tick the appropriate option)?

A. YES

B. NO

Q.14 Is the space and environment of the bank is suitable and

comfortable for customers (Tick the appropriate option)?

A. YES

B. NO

Q.15 Do you feel there is need of more ATM’s in the city(Tick the

appropriate option)?

A. YES

B. NO

Thank you

BIBLIOGRAPHY

Annual report 2003-2004 HDFC bank

HDFC Manual

www.hdfcbank .com

Indian Bank Association Library, Cuffe Parade, Mumbai

www.iba . com

. www.karvy.com