study of customer satisfaction for the loan product avaqilable at iifl

8/11/2019 Study of Customer Satisfaction for the Loan Product Avaqilable at IIFL

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ER INTERNSHIP PROJECT [SIP] - 201

A PROJECT REPORT

ON

"A study of customer satisfaction for the loan product avaqilable at IIFL"

FOR

"India infoline finance limited"

Submitted to

Marwadi Education Foundation Group of Institutions

In partial fulfilment of requirement of the award for the degree of

Master of Business Administration

Under

Gujarat Technological University

Faculty Guide

Prof.Pradip Mitra

Asst. Professor

Under the Guidance of

Submitted by

Vimmy M. Gangdev

Enrollment No. : 127340592034

MBA Semester III

1

Company Guide

Mr.Naresh rajdev

Branch maneger


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COLLEGE CERTIFICATE

This is to certify that the Summer Internship Project Work

entitled

"study of customer satisfaction of the loan products available at

IIFL"

submitted to me is carried out by Mr. /Ms. Vimmy m gangdev,

student of MBA Semester III, Enrolment Number 127340592034,

for the fulfilment of MBA degree, under my guidance and

supervision.

This is to best of my knowledge

Dr. S. Chinnam Reddy Prof. Pradip Mitra

Dean Assistant Professor

Faculty of Management Faculty of Management

Date: ______________ Place: Rajkot

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SUMMER INTERNSHIP PROJECT [SIP] - 2013

Student Declaration

I Vimmy M. Gangdev hereby declare that the report for 'Summer Training Project'

entitled "A study of customer satisfaction of the loan products available at IIFL"

Is a result of my own work and my indebtedness to other work publications, references, if

any, have been duly acknowledged.

Vimmy M

Place: Rajkot Gangdev

Date:

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INDEX

Page

Sr. No. Particulars No.

Part I General Information

1 Industry Overview

1.1 History11

1.2 Growth and Development131

1.3 Performance and other statistical data [latest]

1.4 Market players in the industry

2 Company Overview2.1 History

2.2 Growth and Development

2.3 Performance and other key performing data

2.4 Products/ Service overview

2.5 Departmental overview

2.6 SWOT and/or PESTEL Analysis

Part II Research Work3 Introduction of the study

3.1 Background of the study

3.2 Review of literature

3.3 Statement of problem

3.4 Objectives of the study

3.5 Contribution and learning from the project

4

Research Methodology4.1 Hypothesis [If applicable]

4.2 Research design

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4.3 Sampling Method

4.4 Sampling Size

4.5 Sources of data

4.6 Data collection method

4.7 Data collection instrument

4.8 Model specification/ Data processing

5 Analysis and interpretation of data

6 Results and findings

7 Suggestions and conclusion

8 Limitations of the study55

9 Scope for further research

10 Bibliography [APA Format compulsory]

Annexures

SUMMER INTERNSHIP PROJECT [SIP] - 2013

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List of tables

Table No. Table title Page No.

List of graphs

Graph No. Graph title Page No.

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Part I General Information

1. INDUSTRY OVERVIEW :

1.1History

In particular, the rapid growth of Non-banking financial company (NBFCs)

especially in the nineties, has led to agradual blurring of dividing lines between

banks and NBFCs, with the exception of the exclusive privilege that commercial

banks exercise in the issuance of cheques. Simplified sanction procedures,

orientation towards customers, attractive rates of return on deposits and flexibility and

timeliness in meeting the credit needs of specified sectors (like equipment leasing

and hire purchase), are some of the factors enhancing the attractiveness of this

sector.

The total regulated deposits1 of NBFCs aggregated Rs.17,390

corer, as at end of March 1994, equivalent to 4.0 % of bank deposits. The quantum

of regulated deposits grew more than three-fold and as at end-March 1997, at

Rs.53,116 corer constituted 7% of bank deposits.

In the year 1998, a new concept of public deposits meaning

deposits received from public including shareholders in the case of public limited

companies and unsecured debentures/ bonds other than those issued to

companies, banks and financial institutions, was introduced for the

Purpose of focused supervision of NBFCs accepting such deposits. The amount of

such public deposits held by NBFCs, which as at end of March 1998 was Rs.23,820

corer, declined to Rs.19,341 corer as at end of March 2000.

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1.2 Growth and Development

NBFCs1 in India continue to grow profitably by meeting the credit needs primarily of

self employed borrowers while maintaining reasonable asset quality and prudent level of

leveraging. Understanding borrowers profile and dynamics of borrower segments of such

NBFCs is a prerequisite for the performance evaluation of NBFCs. Although NBFCs cater

to a wide range of segments, there are common characteristics of borrowers across these

segments. A typical borrower (of such NBFCs) needs to be approached to originate a credit

deal (is unlikely to walk into a branch to seek credit, except for Gold loan borrowers), is

more complex to credit assess (as compared to a salaried person) and could require

intensive monitoring and servicing efforts. Given these characteristics, banks particularly

Public Sector Banks find it unattractive to operate in such segments, as they struggle to

maintain good risk adjusted returns from such segments. As over three fourth of the Indian

credit market is served by PSBs, low credit penetration (at around 10%2 as on March 31,

2011) vis. a vis. Deposits (68%) may be a reflection of PSBs inability to cater to such

borrowers. It is critical to be nimble footed, service oriented and extremely cost efficient to

be profitable in the segment. In light of this private sector banks and NBFCs mostly

compete with each other in such segments.

NBFCs-Infrastructure debt funds (IDF) and NBFCs-Micro finance institutions (MFI)were created in FY12 and brought under a separate regulatory framework. NBFCs- Factors

were introduced in Sep 2012.

As on March 31, 2012 the total number of NBFCs registered with RBI stood at 12,385

compared with 12,409 in 2011. The number of deposit taking NBFCs (NBFC-D), including

residuary NBFCs (RNBC), also reduced from 297 at end-March 2011 to 271 as on end-

March 2012.

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The size of total assets of NBFCs grew from Rs 1,169 bn to Rs 1,244 bn as at end-

March 2012. Net owned funds of NBFCs too grew 25% from Rs 180 bn in 2011 to Rs 225

bn at end-March 2012.

Borrowings from banks and FIs accounted for 50% and debentures accounted for 29%

of the total borrowings of NBFCs-D in FY12.Debentures form an important source of funds

for NBFCs-ND-SI.

The financial performance of NBFC-D demonstrated an upsurge, with 19.1% TI

growth and 11.6% operating profit growth, majorly due to 19.2% growth in fund-based

income. Net profit of NBFCs-D also increased marginally by 13.8% to Rs 33 bn in FY12

Total income of NBFCs-ND-SI registered 26% increase to Rs 948 bn, but net profitdeclined 13% to Rs 139 bn in FY12. RoA for the same period also declined to 1.5% from

2.1% in FY11.

As of end-March 2012, 187 of 190 reporting NDFCs-D had CRAR of more than 15%,

whereas 329 out of the 365 NBFCs-ND-SI had CRAR of more than 15%, indicating

availability of capital for further expansion. Only 10% of reporting NBFCs-ND-SI reported

CRAR of less than 15%.

During FY12, gross NPA to total advances of NBFC-D increased from 0.7% in FY11 to

2.1%. At the same time, net NPAs registered an increase of 0.5% of total advances. In case

of NBFC-ND-SI both gross and net NPA ratio increased from 1.72% and 0.69% in FY11 to

2.08% and 1.25% in FY12.

In Dec 2012, the RBI has issued proposed draft guidelines for NBFCs based on the

recommendations of the Usha Thorat Committee. The guidelines proposed that, w.e.f. Apr

1, 2014, captive NBFCs, NBFCs focusing on sensitive sectors and gold loan companies

shall maintain Tier I of 12%. Other NBFCs shall maintain 10% Tier I capital and NBFCs

shall classify an account as NPA, if payment is overdue for 120 days and follow the 90 daynorm after a year later.

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1.3 Performance and other statistical data [latest]:

The region-wise analysis is based on the number of deposit-holding/accepting NBFCs

that reported data to the Reserve Bank for the years ending March 1999 and March 2000

The NBFCs based in the southern region continued to account for a significant share of the

reporting NBFCs in both years although their share fell sharply from 23.7 per cent of total

public deposits at end-March 1999, to 16.4 per cent at end-March 2000. Of the NBFCs

located in the southern region, the major quantum of public deposits was held by the NBFCs

located in Chennai. The deposits of NBFCs located in the western region declined from

14.0 percent at end-March 1999 to 12.6 per cent at end-March 2000. The share of deposits

of the NBFCs based in the northern region to the total

deposits of all NBFCs, recorded an increase from 2.4 %

at March 1999 to 2.7 per cent at March 2000, mainly due to an increase in the share of

public deposits held in New Delhi. The share of deposits in the eastern region increased from

37.7 per cent of total deposits to 49.5 per cent mainly on account of mobilisation of

nonconvertible debentures (NCDs) to the tune of Rs. 1,668 crore by one Government-

owned NBFC based in West Bengal. The public deposits reported by NBFCs in four

metropolitan centres of Mumbai, New Delhi, Kolkata and Chennai accounted for

Rs.14,403 crore (70.5 per cent) and Rs.14,920 crore (77.1% respectively, of the totaldeposits for the years ending March 1999 and March 2000) .

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Table V.3 : Activity-wise Profile of Public Deposits of NBFCs 2.Company Overview:

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Company Name

HDFC

Power Finance Corp.

Reliance Capital

IDFC

Rural Electricity Corp.

Shree Global

1.4 Market players in the industry

MarketCap.(Rs.Billion)*

445.3

150.1

105.2

77.1

67.4

61.5

Shriram Transport Finance 39.7

Bajaj Finserv

Indiabulls

Religare Enterprises

Bajaj Holdings

M&M Financial

LIC Housing Finance

Edelweiss Capital

KGN Industries

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27.1

25.7

24.5

23.5

22.6

20.1

17.9

17.1


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Shriram City

IFCI

JM Financial

India Infoline

Centrum Finance

15.8

15.8

15.8

13.1

11.1

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COMPANY OVERVIEW

2.1. History

Mr. Nirmal Jain (Non-Executive Director)

Mr. Nirmal Jain, aged 45 years, is a non-executive Director of our Company and is one of

the original Directors of our Company. He holds a Bachelors Degree in Commerce from

University of Mumbai. He is a fellow member of the Institute of Chartered Accountants of

India (held the 2nd rank) and also a cost accountant. He holds a Post Graduate Diploma in

Management from Indian Institute of Management, Ahmedabad. He started his career in

1989 with Hindustan Lever Limited, the Indian arm of Unilever, where he handled a variety

of responsibilities, including export and trading in agro- commodities. In 1995 he foundedProbity Research and Services Private Limited (later re-christened India Infoline) Mr. Jain

subsequently launched www.indiainfoline.com in 1999. He is currently the Chairman of India

Infoline Limited, our Promoter.

The IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:

INDIAINFO, BSE: 532636) and its subsidiaries, is one of India's premier providers of

financial services.

: IIFL offers advice and execution platform for the entire range of financial services

covering products ranging from Equities and derivatives, Commodities, Wealth

management, Asset management, Insurance, Fixed deposits, Loans, Investment

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Banking, Gold bonds and other small savings instruments.

one of India's leading financial services companies, promoted by 1 st generation

professionals.

Mr. R. Venkataraman (Non-Executive Director)

Mr. R. Venkataraman, aged 45 years, is a non-executive Director of our Company and is

one of the original Directors of our Company. He is a B.Tech in electronics and electrical

communications engineering from Indian Institute of Technology, Kharagpur and holds a

Post Graduate Diploma in Management from Indian Institute of Management, Bangalore.

He has more than 20 years in the financial services sector. He is the Co-Promoter and anExecutive Director of our Promoter. India Infoline Limited. Prior to joining the India Infoline

Board in July 1999, he held senior managerial positions in ICICI Limited, ICICI Securities

Limited, BZW and Taib Capital Corporation Limited. He was also the Assistant Vice

President with G E Capital Services India Limited in

their private equity division.5

IIFL (India Infoline) group, comprising the holding company, India Infoline Ltd (NSE:

INDIAINFO, BSE: 532636) and its subsidiaries, is one of India's premier providers of

financial services.

: IIFL offers advice and execution platform for the entire range of financial services

covering products ranging from Equities and derivatives, Commodities, Wealth

management, Asset management, Insurance, Fixed deposits, Loans, Investment

Banking, Gold bonds and other small savings instruments.

: one of India's leading financial services companies, promoted by 1 st generationprofessionals.

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: services more than a million retail clients.

: operates from over 4000 business location across 900 cities & town in india

: consolidated net worth of about 1750 corers & balance sheet size of 9000 corers.

: support the employment directly & indirectly of over 20000 families.

: Licensed in 8 th countries besides India for asset advisory, equity, etc.

: IIFL has received membership of the Colombo Stock Exchange becoming the first

foreign broker to enter Sri Lanka. IIFL owns and manages the

website,www.indiainfoline.com, which is one of India's leading online destinations forpersonal finance, stock markets, economy and business. IIFL has been awarded the 'Best

Broker, India' by FinanceAsia and the 'Most improved brokerage, India' in the AsiaMoney

polls. India Infoline was also adjudged as 'Fastest Growing Equity Broking House -

Large firms' by Dun & Bradstreet . A forerunner in the field of equity research, IIFL's research

is acknowledged by none other than Forbes as 'Best of the

Web' and ' a must read for investors in Asia' .

: Our research is available not just over the Internet but also on international wireservices like Bloomberg, Thomson First Call and Internet Securities besides others

where it is amongst one of the most read Indian brokers.

IIFL is a listed company with a consolidated group networth of about Rs 1,800 crores.

The income and net profit during FY2010-11 were Rs. 14.7 bn and Rs. 2.1 bn respectively.

The Group has a consistent and uninterrupted track record of profits and dividends

since its listing in 2005.

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: IIFL's Crisil and ICRA Rating for short term is top rated as CRISIL A1+ and ICRA

(A1+) respectively. For long term, IIFL has been rated ICRA(AA-) by ICRA and CRISIL AA-

/Stable by CRISIL indicating high degree of safety for timely servicing of financial obligations.

: IIFL is near you physically - we are present in every nook and cranny of the country,

with over 4,000 business locations across 900 cities in India. You can reach us in a variety

of ways, online, over the phone and through our branches. All our offices are connected with

the corporate office in Mumbai with cutting edge networking technology.

1995 Commenced operations as an Equity Research firm

1997 Launched research products of leading Indian companies, key sectors and the

economy Client

included leading FIIs, banks and companies.

1999 Launched www.indiainfoline.com

2000 Launched online trading through www.5paisa.com Started distribution of life

insurance

2003 Launched proprietary trading platform Trader Terminal for retail customers

2004 Acquired commodities broking license

Launched Portfolio Management Service

2005 Maiden IPO and listed on NSE, BSE

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2006 Acquired membership of DGCX

Commenced the lending business

2007 Commenced institutional equities business under IIFLFormed Singapore subsidiary, IIFL (Asia) Pte Ltd

2008 Launched IIFL Wealth

Transitioned to insurance broking model

2009 Acquired registration for Housing Finance

SEBI in-principle approval for Mutual Fund

Obtained Venture Capital license

2010 Received in-principle approval for membership of the Singapore Stock Exchange

Received membership of the Colombo Stock Exchange

2011 Launched IIFL Mutual Fund.

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2.2 Development and growth:

DCB's loan book grew by 10.4% sequentially, almost in-line with our expectationof 9%. The robust growth was largely driven by Agri & Inclusive Banking segment (35%qoq; a seasonal impact to meet the year-end Priority sector target) followed by Retail(11.9% qoq) and Corporate (9.6% qoq) segments. Bank plans to add 20-30 branchesin FY14 primarily to meet its PSL target (for direct lending) and support CASAmobilization. Strong yoy credit growth momentum (24.6%) was supported by Retail(46%) and Corporate (30.1%) segments. Growth in SME+MSME segment wasdeliberately slowed (6.2% yoy) owing to asset quality issues confronted by thissegment. Within Retail, mortgages continued to be the main growth driver posting12.6% qoq/54.6% yoy growth. Management has guided 23% credit growth for FY14.Deposits grew faster than advances by 10.7% qoq/32% yoy, resulting in declinein Credit/Deposit ratio from 83.4% in FY12 to 78.7% in FY13. Sluggish growth inCASA deposits (4.1% qoq/11.6% yoy) led to decline in CASA ratio by 1.7% qoq and5% yoy. We expect this ratio to improve going forward given the branch expansionplans of the bank. Share of Wholesale TDs increased from 10.6% of total deposits inQ3 FY13 to 11.3% in Q4 FY13. Traction in NRI depositscontinued to remain robust reporting a growth of 14.9% qoq and 69.3% yoy.NIM rose by 14bps qoq to 3.52% largely driven by strong growth in investments

(24.1% qoq/33.4% yoy). Bank is structurally improving upon its priority sector yield

by focusing on direct lending rather than portfolio buyout (relatively lower-

yielding). Both YoA and CoD rose ~10bps sequentially offsetting the resulting

impact on margin. Robust traction in retail lending, structural improvement in priority

sector portfolio and improvement in deposit profile is likely to keep the margin insteady state. Management has guided a NIM of 3-3.25% for FY14.

Asset quality showed remarkable improvement with GNPA ratio declining from 3.8% in

Q3 FY13 to 3.2% in Q4 FY13. This happened mainly on account of significant recovery

and up-gradation Delinquency ratio rose marginally from 1.4% in Q3 FY13 to 1.5% in Q4

FY13. A large part of the delinquencies in FY13 are attributed to SME+MSME segment.

Thereby, bank has become very selective and cautious in SME lending. We expect

asset quality to improve further given the bank's cautious approach in lending and

effective monitoring. PCR stands strong at 85.7%, one of the best in the industry.Non-interest income reported a healthy growth of 14.4% sequentially driven bystrong CEB fee (11.7% qoq) and sale of investments (92.6% qoq). Cost/Income

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ratio improved by 6ppt from 74.6% in FY12 to 68.6% in FY13. Additional opexarising out of new branches will be offset by the improving productivity of the existingbranches and healthy growth in non-interest income. We expect a further improvementin Cost/Income ratio in the coming quarters.

DCB is strongly capitalized with CAR & tier I ratio of 13.6% and 12.6%

respectively, more-than-commensurate to meet its balance sheet expansion plan andBasel III norms. RoA is expected to remain above 1% supported by healthy marginand improvement in operating efficiency. With unabsorbed losses to the tune ofRs2.2bn currently, DCB will not be required to make any tax payments for next 5-6quarters.DCB has consistently exhibited strong performance even in challenging times.Given the healthy margin, improvement in asset quality and operating efficiency,robust PCR, strong capitalization and resulting upward trending RoA, we continueto remain upbeat on our outlook for the bank. Maintain BUY with target price of Rs55.

(Rs mn) Q4 FY13 Q3 FY13 % qoqQ4 FY12 % yoyTotal Interest Income 2,532 2,294 10.4 1,933 31.0

Interest expended (1,717) (1,574) 9.1 (1,363) 26.0

Net Interest Income 815 720 13.2 571 42.9

Other income 331 289 14.4 299 10.6

Total Income 1,146 1,009 13.6 870 31.8

Operating expenses (716) (692) 3.5 (630) 13.5

Provisions (89) (49) 82.8 (66) 34.4

PBT 341 269 27.0 173 97.2

Tax - - - - -

Reported PAT 341 269 27.0 173 97.2

EPS 5.5 4.3 26.9 2.9 89.8

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Key Ratios

Q4 Q3 chg Q4 chgFY13 FY13 qoq FY12 yoy

NIM (%) 3.5 3.4 0.1 3.1 0.4

Yield on Advances (%) 12.8 12.7 0.1 12.9 (0.1)

Cost of Funds (%) 7.8 7.7 0.1 7.6 0.3

CASA (%) 27.2 28.9 (1.7) 32.1 (5.0)

C/D (x) 78.7 78.9 (0.2) 83.4 (4.7)

Non-interest income (%) 40.6 40.2 0.4 52.4 (11.9)

Non-interest in/Int exp (%) 19.3 18.4 0.9 22.0 (2.7)

Cost to Income (%) 62.5 68.5 (6.1) 72.5 (10.0)

Provisions/Avg Advances (%) 0.6 0.3 0.2 0.6 0.0

RoA (%) 1.3 1.1 0.2 0.6 0.7

CAR (%) 13.6 13.7 (0.1) 15.4 (1.8)

Gross NPA (%) 3.2 3.8 (0.6) 4.4 (1.2)

Net NPA (%) 0.8 0.7 0.0 0.6 0.2

Source:Company,IndiaInfolineResearch

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Financial Summary

Y/e 31 Mar (Rs m) FY12 FY13E FY14E FY15E

Total operating income 3,304 4,014 4,788 5,869

yoy growth (%) 9.7 21.5 19.3 22.6

Operating profit (pre-provisions) 838 1,261 1,595 2,133

Net profit 551 1,021 1,228 1,469

yoy growth (%) 157.1 85.3 20.3 19.7

EPS (Rs) 2.3 4.1 4.9 5.9

Adj. BVPS (Rs) 32.3 35.9 40.2 45.6

P/E (x) 19.2 10.8 9.0 7.5

P/BV (x) 1.4 1.2 1.1 1.0

ROE (%) 8.0 11.6 12.2 12.8

ROA (%) 0.7 1.0 1.0 1.0

CAR (%) 15.4 13.6 12.3 11.8

Source: Company, India Infoline Research

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2.4 Products overview

Loans

Lifeinsurance

Other

facilities

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Gold loan

IIFL offers a wide array of secured loan products. Currently, secured loans (mortgage loans,

margin funding, loans against shares) comprise 94% of the loan book. The Company hasdiscontinued its unsecured products. It has robust credit processes and collections mechanism

resulting in overall NPAs of less than 1%. The Company has deployed proprietary loan-processing

software to enable stringent credit checks while ensuring fast application processing. Recently the

company has also launched Loans against Gold. no processing fees

in gold loan, simple documents & loan rates 1%,1.5%,and 2%

Insurance

IIFL entered the insurance distribution business in 2000 as ICICI Prudential Life Insurance

Co. Ltd's corporate agent. Later, it became an Insurance broker in October 2008 in line with its

strategy to have an 'open architecture' model. The Company now distributes products of major

insurance companies through its subsidiary India Infoline Insurance Brokers Ltd. Customers can

choose from a wide bouquet of products from several insurance companies including Max New

York Life Insurance, MetLife, Reliance Life Insurance, Bajaj Allianz Life, Birla Sunlife, Life

Insurance Corporation, Kotak Life Insurance and others.

Home loan

IIFL group has set up India infoline Housing Finance Ltd to offer highly customized facilities of

availing Home loans . Every customer has a specific and unique concern and our home loan

product is customized to provide you solution for your unique concern.

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Home loan Features:

Home loan amount suited to your needs

Home loan tenure upto 20 years

Simplified documentation

Home loan sale deed 130% on documents

Home loan interest rate 13%

You can take minimum of 5 lack & maximum of 10 corer subject to your income eligibility as well

Mortgage loan

IIFL group has set up India infoline Mortgage Finance Ltd to offer highly customized facilities of

availing Mortgage loan.

Features

Residential Mortgage 65% (Valuation) Tenure Maximum 15 years. (14% interest rate)

Commercial Mortgage 55% (Valuation) Tenure Maximum 10 years (15% interest rate)

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2.6 SWOT and/or PESTEL Analysis:

Strength :

1. Wide range of financial products

2. Successful implementation of "Insurance broking" model

3. Online portal's successful branding as "5paisa.com"

4. Have over 2500 offices in India in over 500 cities

5. First Indian brokerage house to get membership of Singapore Exchange

6. IIFL has been awarded the 'Best Broker, India' , 'Most improved brokerage, India' , 'FastestGrowing Equity Broking House'

Weakness:

1. High risk exposure as seen by conservative population

2. Less emphasis on advertising causes lack of brand visibility

Opportuniies:

1. High income Urban families

2. More penetration into the growing cit

Threat:

1. Stringent Economic measures by Government and RBI

2. Entry of foreign finance firms in Indian Market

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3.Indroduction of the study:

Research methodology is a way to systematically solve the research problem. It may

be understood as a science of studying how research is done scientifically. In it we study the

various step that are generally adopted by a researcher in studying his research problem

along with the logic behind them. It is necessary for the researcher to know not only the

research methods/techniques but also the methodology.

Researchers not only need to know how to develop certain indices or tests, how to

calculate the mean, the mode, the median or the standard deviation or chi-square, how to

apply particular research techniques, but they also need to know which of these methods or

techniques, are relevant and which are not, and what would they mean and indicate and why.

Researchers also need to understand the assumptions underlying various techniques

and they need to know the criteria by which they can decide that certain techniques and

procedures will be applicable to certain problems and others will not. All this means that it is

necessary for the researcher to design his methodology for his problem as the same may

differ from problem to problem.

3.1 Background of the study:

I have done one research that is s atisfaction level of IIFL's customers. The main

objective of the study is to know the satisfaction level of the customers from bank's

Services.

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For accomplishing the objective of the study researcher needs primary information

From the respondents and for that exploratory research design is suitable.

TITLE:

The title of research project is "consumer satisfaction for loan products available at IIFL"

DEFINITION:

Research is " a careful investigation or inquiry especially through search for new facts in

any branch of knowledge."

"Systematize effort to gain new knowledge.

MEANING:

Research in common parlance refers to a search for knowledge; one can also define research

as a scientific and systematic search for pertinent information on a specific topic. In fact, research

is an art of scientific investigation.

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Hazra, Sandip Ghosh, Srivastava, Kailash B L, (2009),

Studied the Impact of Service Quality on Customer Loyalty, Commitment and Trust in

the Indian Financial Sector. This study examined the strength of the association between the

independent variable service quality perception and the dependent variables, namely,

customer loyalty, commitment and trust.

2. Dr. Naveen Kumar & Dr. V.K.Gangal (2011),

Held a study on customer satisfaction in new generation Financial companies and found

that the majority of India's Financial companies are not very diversified in terms of the

products and services they offer. One strategic focus that companies can implement to

remain competitive would be to retain as many customers as possible. International Refereed

Research Journal, Vol. - II, Issue -4, Oct. 2011, pp. 177 - 186.M.

3. Jyoti Agarwal (2012),

Customer satisfaction in Indian banking services (a study in aligarhdistrict)

International Journal of Computing and Business Research (IJCBR) ISSN (Online) : 2229-

6166Volume 3 Issue 1 January 2012, pp. 1-14. Banks must pay attention to potential failure

points and service recovery procedures, which become integral to employees training. In

other words, it amounts to empowering employees to exercise responsibility, judgment and

creativity in responding to customer's problems

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4.Vimi Jham & Kaleem Mohd Khan, (2008),

Conducted a study on Customer Satisfaction in the Indian Banking Sector, among five

Indian banks, aimed at identifying customer satisfaction variables which lead to relationshipbuilding, and developing a conceptual framework of relationship marketing practices in Indian

banks by capturing the perspectives of customers with respect to their satisfaction with

various services. A Study of Nationalized and Private Banks '. Prajnan. 35(4). 390-398

3.3 Objective of study

The first and foremost step of a researcher is to identify the research objective, so that it can

become easy for the researcher to achieve the goal and might solve the research problem

based on the objective.

The purpose of research is to discover answers to questions through the application of

scientific procedures. The main aim of research is to find out the truth which is hidden and

which has not been discovered as yet. Though each research study has its own specific

purpose, we may think of research objectives as falling into a number of following broad

groupings:

1) To do analysis of information about customer satisfaction.

2) To know the stability and potentiality of customer towards bank. 3) To

know the customer attraction towards services.

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4.1 hypothesis

Type of research

Sampling method

Sample universe

Sample unit

Sample size

Method of data collection

Time period

Sample instruments

Research Methodology

Descriptive research

Simple random sampling

Rajkot

IIFLs (customers)

100 customers and 8 questions

Primary research and secondary research

During training time in between june - july

2013

Annual reports of IIFL and research

questionnaire

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Limitations of study

The market survey was limited to area of Rajkot

Sample size is only 100, which may not represent the overall population.

Lacks of advance scientific techniques for analysis and interpretation.

In such cases respondents were not able to give all information in such cases as much

as possible information was taken.

I can't meet each and every user because of human limitations and other problems

so I have selected some sample.

Time constraint.

: Research Methodology is way to systematic slove problem.it may be understood has a

science of studying how to research done scientifically.

This methodology is that it help in identify the problem, collecting data, analyzing the require

information data and provide alternative solution to the problem. it also help in collecting vital

information that is require by the top management to the assist them for the better decision

making both day to day decision and critical ones. Report is based on primary as well as

secondary data, however primary data collection was given more importance since it is

overhearing.

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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 systemized effort to gain new

knowledge. the research for knowledge through objective and systematic method of solution to a

problem is a research.

Research Design

Research design is the conceptual structure within. Which research is conducted, it constitutes

The blueprint for the collection, measurement and analysis of data.

As research the design includes an outline what the researcher will do from writing hypothesis

its operational implication to the final analysis of data.

The Research objectives, questionnaire was design.

Data collection

Two types of data collection primary and secondary

Primary Data

Primary data refer to the first and fresh data collection from the field it was collected trough the

questionnaire method. Questionnaire will include MCQ, ranking, and rating type of equation.

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Secondary Data

Secondary data refer to already published information. Secondary data collected from various

sources magazines, newspapers, internet, government and industry.

Research has been done by primary data collection and primary data has been collected by

with various people in Rajkot city. The secondary data has been collected from various

Journals and websites.

Out of total 100 questionnaire distributed only 100 receive back. The questionnaire focus on

investment like insurance, share-market, post-office, real estate, fixed-deposit etc and loan

products like gold loan, home loan, mortgage loan, loans against property.

Data sampling

The target audient for this research includes city people. It was also collected through personal

visits to persons, by formal and informal talks and through filling up the questionnaire prepared. The

data has been analyzed by using mathematical/statistical tools.

Sample units: a decision has to take concerning sampling units before select sample. herehave my sample unit includes the people of city.

Sample size : The sample size of my project is limited to people only.100% people believeFinancial investments but in different categories like 10% people interested in

Real-estate,20% people interested in share-market,35% people interested in

Post Office,25% people interested in insurance and 5% people interested in

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others like Bonds, mutual funds (SIP) etc.

In loans most of the people believe in loans like gold loan, home loan ,mortgage

Loan, loans against property etc. but approx 53% peoples are interested in gold

because gold loan process is very easy, simply documents are required. otherpeople also interested in home loan and mortgage loan .approx 33% people

erected in home loan and approx 14% peoples are interested in mortgage loan

Sampling technique: The selection of respondents was done on the basis of convenienceSampling. In convincing sampling the samples are being elected on

the basis of ease or convenience. The respondents who are easily

Meaning of ResearchResearch is defined as "a scientific & systematic search for pertinent information on a

specific topic" .research is an art of scientific investigation, Research is system effort to

gain new knowledge .the research for knowledge through objective and systematic

method of solution to a problem is a research.

Research DesignResearch design is the conceptual structure within. Which research is cocducted,it

constitutes the blueprint for the collection, measurement and analysis of data.

As research the design includes an outline what the researcher will do from writing

hypothesis its operational implication to the final analysis of data.

The Research objectives, questionnaire was design

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Data interpretation and Analysis

I have collect data of 100 customers of India Infoline Finance Ltd. for knowing collect

satisfaction level of customers from its services.

1)Are you aware about the Loan products of the IIFL?

Option

Yes

No

Total

about products

Table.1 awareness about loan products

No. of Customers

93

7

100

7

YesNo

93

`

Graph.1 awareness about loan products

Interpretation

From the above graph we can easily understand that most of the people are awareabove graph graph easily understand people

about the loan products of IIFL. In the graph we can show that 93% people knows theproducts products we peoplepeople

productproduct an only 7% out of 100 people are not aware about the loan productt of IIFL.product only people productproduc

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2)Have you taken any loan from IIFL?

Option

Yes

No

Total

Table.2 loan products of IIFL

No.of Customers(in%)

45

55

100

5545 Yes

No

Graph.2 loan products of IIFL

Interpretation

In this graph, how many people have taken any loan from IIFL is been shown.

55 % of the people out of 100 have not taken any kind of loan from IIFL and 45%

of the people have taken loan from IIFl.

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3)If yes then which loan you taken from the IIFL.? IIFL.?

ParticularGold loan

Home loan

Mortgage loan

Table.3 loan taken by the customer loan

In (%)57 32

11

32

11

57

Gold loanHome loanMortgage loan

Graph.3 loan taken by the customer

Interpretation

In this graph which types of loan are provided by the IIFL is been shown.57types loan provided by the been

person have taken gold loan, 32 person have taken home loan and 11 person have

personhave have

taken mortgage loan is been shown in the graphshown graph

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4) Are you satisfied with the interest rate of the loan of the IIFL?satisfied

Option

Yes

No

Total

Table.4 satisfaction level for interest rate

satisfaction

No. Of Customers

27

73

100

27

Yes

No

73

Graph.4 satisfaction level for interest rate

Interpretation

In this graph customers satisfaction level is been shown that how many customersatisfaction level shown that how many

are satisfied with the interest rate of the loan provided by IIFL. Out of 100 people 73%interest rate provided by 100 people

people are not satisfied with the interest rate only 27% are satisfied with the interest ofsatisfied only only interes

the loan given by IIFL.

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5) Are you satisfied with the service or facility of the IIFL?

Table.5 satisfaction level with the service or facility

Option

Yes

No

Total


28

72

100


28%

Yes

No

72%

Graph.5 satisfaction level with the service or facility

Interpretation

In this graph satisfaction level for the facility or services has been shown that how

many out of 100 people 72% are not satisfied with IIFL's facility and only 28% people

are satisfied

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In these graphs who are satisfied they have to give rank according to the given

data

7) If no then why?Table.7 reason for dissatisfaction

Option No. Of Customers

(in%)

Interest rate is high 33

Less amount is provided 30

Duration is not convenient 17

Service is not proper 20

Total 100

2033

Interest rate is high

Less amount isprovided

17

30

Duration is notconvenient

Service is notproper

Graph.7 reason for dissatisfaction

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In this graph who so aver is not satisfied they have to give reason why they are

not satisfied with the products of IIFL

8) Are you satisfied with the documentation process for the loan products of IIFL?

Table.8 satisfaction level for documentation process

Option amt (in %)

Yes 28

No 72

Total 100

amt (in %)

28%

Yes

No

72%

Graph.8 satisfaction level for documentation process

Interpretation

In this graph who many people are not satisfied with the documantation process hasbeen shown out of 100 people 72% are not satisfide and 28% are satisfied with it

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10) Are you getting the loan statement regularly?

Table.10 loan statement

Option amt

(in %)

Yes 45

NO 55

Total 100

amt (in %)

55%

45%

Yes

N

O

Graph.10 loan statement

Intrepretation

In this graph how many people are getting loan statement ragularly that has beenshown that 55% of the people are not getting and 45% are getting.

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11) Are you getting proper answer/response from the employees of IIFL?

Table.11 getting proper answer/response

Option amt

(in %)

Yes 40

NO 60

Total 100

amt (in %)

40%

Yes

60% NO

Graph.11 getting proper answer/response

Interpretation

In this graph how many people are getting proper answer/response

that has been shown that 60% of the people are not getting and 40% are getting.

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12)Will you refer any loan from IIFL to your relatives?

Table.12 refer any loan from IIFL

Option amt

(in %)

Yes 25

NO 75

Total 100

amt (in %)

25%

Yes

N

O

75%

Graph.12 refer any loan from IIFL

Interpretation

In this graph how many people are refer any loan from IIFL that has been shown that

75% of the people are notrefer and 25% are refer.

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6. Result and findings

This chapter some of the findings from my study of selected IIFL (India infoline)

The strong point of IIFL is its financial strength, amount of gold loan and good

services.

In some of the area like loan, firm is very rigid so, flexibility is needed.

One of the important point is that new client comes through the recommendation

of existing investors and reputation of the company.

The new client must be member of IIFL

In the area of loans & advances, IIFL having a high rate of interest among

nationalize as well as co-operative sector.

The tendency to donate generously to institutions by the board of directors of IIFL

is commendable. Some of institutions to whom huge contributions are given to

V.V.P. engineering college, Satya Sai Seart Hospital, Ashok Gandhi Memorial

Hospital, etc .

Practice of easy availability of office bearers of the Rajkot Nagarik Sahakari Bank

Ltd. For the members, a investor or loans is well adopted. This also serves as the

intelligent agency to keep a watch on the ways and means how the bank advances

are utilized.

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Suggestion

The company should be increases advertisements regarding loans products and

investments products in television.

The company should be provide top to bottom information about IIFL products to

existing customers.

The company should be provide motivational training to all the IIFL employees.

The company should be arranging workshop and seminars. So that they can provide

information to the people and give answers to queries.

The company should be arranging quarterly get to gather for employees.

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Conclusion

Most of the companies are offering loans products and investment products in India still

at growth stage. And there are enough of opportunities for all the financial

Companies which are offering loan products and investment products .According to my

Survey majority peoples are believe in government sector for investment. Like LIC (life

Insurance company), post office .Few peoples believe in private sector for investments

Like ICICI prudential, Birla life insurance, Bajaj insurance etc.coz any time plane may be

Closed in private sector. And half people believe in nationalize banks for take home

Loan mortgage loan etc.coz in banks interest rate is low but documents process is very

Long and Half people believe in finance companies for take loan coz in finance

Company interest rate is very high but document process is short according to my

Survey.

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Name : ____________________ Date of Birth:______________________

Marital Status: Married Single Occupation : Business Sararied

Contact : ________________________ Email ID :

_______________________

Residence

Location:________________________________________________________

No of Dependent: ___________________ No. Of Earning Member: _____________

Your Income p.a.: ______________ Family Income: ________________

Q.1 How many times in a year you have emergency requirement of money?

0 1 2 3 4 5 6

Q.2 Are you aware about loan products of IIFL?

yes no

Q.3 Have you taken any loan from IIFL?

yes no

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Q.4 If yes then which loan you taken from the IIFL.?

Gold loan

Home loan

Mortgage loan

Q.5 Are you satisfied with the interest rate of the loan of the IIFL?

yes no

Q.6 Are you satisfied with the service or facility of the IIFL?

yes no

Q.7 If yes, Then give rank as per your satisfaction?

Strongly satisfy

Satisfy

Neutral

Dissatisfy

Strongly dissatisfy

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Q.8 If no then why?

Interest rate is high

Less amount is provided

Duration is not convenient

Service is not proper

9) Are you satisfied with the documentation process for the loan products ofIIFL?

yes no

10) Are you getting the loan statement regularly?

yes no

11) Are you getting proper answer/response from the employees of

IIFL?

yes no

12) Will you refer any loan from IIFL to your relatives?

yes no

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study of customer satisfaction for the loan product avaqilable at iifl

Documents