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
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
LIST OF CONTENTS
SL NO
CONTENTS
PAGE NO
PROJECT OVERVIEW
COMPANY PROFILE
OBJECTIVES OF STUDY
REVIEW OF LITREATURE
RESEARCH METHODOLOGY
ACTIVITY CHARTS
KEY LEARNING
BIBLOGRAPHY
QUESTIONNAIRE
LIST OF TABLES
NO
1
TITLE
TABLE NO
PAGE NO
5.1
46
5.2
47
5.3
48
5.4
49
5.5
40
5.6
41
5.7
42
5
What is the interest rate of home loan in
PNB, SBI and ICICI bank for individual
customers
6
PROJECT OVERVIEW
Thomas Cook Al Rostamani Exchange Co. Dubai, UAE, and M/s Musandam Exchange, Ruwi,
Sultanate of Oman.
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 March09. As on March09, 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 its 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
7
CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc.
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 its policy of inclusive growth in the
Indo-Gangetic belt, the Banks 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 April09.
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
worlds biggest companies compiled by the US magazine Forbes.
1895-
1904-
1939-
1947-
1960-
(established in 1933)
in a rescue.
19611963-
1965-
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-
1978-
banks on
1988-
1993-
PNB acquired New Bank of India, which the Government of India had
nationalized in 1980.
19982003-
10
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
11
PERFORMANCE OF 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 Banks 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)
12
13
PERIOD
FLOATING RATE OF
INTEREST(%)
14
3-YEARLY FIXED
RATE OF INTEREST
(%)
1-10 Years
11 15 Years
16 20 Years
9.00
9.25
9.50
10.50
10.50
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.
9.00% 9.25%
05
07
10.50
2076
2088
2101
2113
2125
2138
2150
2162
2175
2187
1609
1622
1635
1648
1661
1674
1687
1700
1713
1726
15
10
15
20
1267
1281
1294
1308
1322
1336
1350
1364
1378
1392
1015
1030
1045
1060
1075
1090
1106
1121
1137
1153
900
916
933
949
966
982
999
1016
1033
1050
16
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 Lakhs
Period
Upto 15 Years
Period
Upto 15 Years
Upto 10 YRS rate of interest is 9 %
SECURITY:
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.
Monthly reducing Balance (%)
No. of
Years
1
2
9.00
9.25
9.50
9.75
11.25
8746
8757
8769
8780
8792
8804
8815
8827
8839
8850
4569
4580
4592
4603
4615
4627
4638
4650
4661
4673
18
3
4
5
6
7
8
9
10
3180
3192
3204
3215
3227
3239
3251
3263
3274
3286
2489
2501
2513
2525
2537
2549
2561
2573
2585
2597
2076
2088
2101
2113
2125
2138
2150
2162
2175
2187
1803
1815
1828
1841
1853
1866
1878
1891
1904
1917
1609
1622
1635
1648
1661
1674
1687
1700
1713
1726
1466
1479
1492
1505
1518
1531
1545
1558
1571
1585
1355
1368
1381
1395
1408
1422
1436
1449
1463
1477
1267
1281
1294
1308
1322
1336
1350
1367
1378
1392
19
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
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.
20
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%.
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
ELIGIBILITY
DOCUMENTATION
EXTENT OF LOAN
RATE OF INTEREST
22
23
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:
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
the annual income of the individual, who is applying for the loan, must be greater than or equal
to 1.2 Lac INR.
Eligibility
Existing home loan borrower can also apply provided their loan account is regular and no
IR irregularity persist.
Documents Needed
24
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.
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
Margin
Land/Plot
40%
Construction/repair/addition
25%
Rate of Interest
(Effective from 1st May 2009 BPLR 11.00%)
Housing finance to
Upto 20
Above 20 Lacs.
Individuals including
NRIS /Flexible Housing
Scheme
Lacs.
(i) upto 5 years
9.25%
10.00%
8.75%
9.50%
10.00%
10.25%
9.00%
9.50%
years
(iii) Above 10 years & upto 20 10.50%
10.75%
9.25%
9.75%
years
(iv) Above 20 years & upto 25
11.00%
9.50%
10.00%
10.75%
years
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
26
Documentation charges
Rs. 1350 + Service Tax
Upfront Fee
0.90% of the loan amount + Service Tax& Education Cess
Repayment
Maximum 25 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.
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 mortgage of other immovable property or pledge of NSC etc. upto 125% of
loan amount if property is being purchased from 1 st P/A holder and where there is delay
in the execution of Tripartite agreement.
Features
27
Loan can be sanctioned even if property is in the name of wife/parents provided that the
owner is made co-borrower.
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.
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
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
Salaried
Self
ID Proof
Passport/PAN card/Driving
License/Voter ID
Passport/PAN card/Driving License/Voter ID
Card/Any other valid ID Card/Any other valid ID proof
proof
Address Proof
Electricity bill/telephone
Electricity bill/telephone bill/Driving
bill/Driving License/Voter
License/Voter ID Card/Passport/Any other valid
ID Card/Passport/Any
Address Proof
other valid Address Proof
DOB Proof
10th class
certificate/certificate of
birth
30
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
Service
Charges
Rs.2500/-
Rs.350/-
2.5 L to 3.9
Rs.3500/L
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.350/-
Rs.5000/-
31
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 Amount
Interest Rate
14% to 19%
Tenure
12 to 60 months.
Pre Payment
Charges
Service Charges
32
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%
33
Interest Rate
Tenure
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/-
Salaried
Self
ID Proof
PAN Card/ Voters ID/ Passport/ Driving PAN Card/ Voters ID/ Passport/
License
Driving License
Address Proof
DOB Proof
Financial Docs
Completed
application
form Proof of business address in
Passport
size
photograph respect
of
businessmen/
Proof of Identity - PAN Card/ Voters industrialists
ID/
Passport/
Driving
License Sale Deed, Agreement of Sale,
Proof of Residence - Recent Telephone Letter
of
Allotment,
Non
Bill/ Electricity Bill/ Property tax receipt/ encumbrance certificate, Land/
Passport/
Voters
ID Building Tax paid receipt etc. (as
Statements (latest 3 months bank applicable and subject to satisfaction
statement / 6 months bank passbook) report from our empanelled lawyer)
and Signature identification from present Copy of approved plan and
bankers
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
statement
34
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/semiurban 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
No prepayment penalties
Charges
Service
Charges
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, onetime road tax and accessories worth Rs.25000/-.
35
Loan Feature
Loan Amount
Interest Rate
Tenure
Up to 84 Months
No pre-payment charges
Service Charges
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
Not provided
Processing charges:
Service Charges
1% of the loan amount
36
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.
Meaning of research
Research problem
Research design
Sampling design
Data coIlection method
Data analysis and interpretation
Recommendations
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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 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.
Research Problem
The 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
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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
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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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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10.3
10
10.4
9.75
10.2
10.15
10
9.8
9.6
9.4
9.25
9.15
9.2
9
Above 20 Lacs
8.8
8.6
8.4
Up to 20 Lacs
PNB
SBI
ICICI
Up to 20 Lacs
Above 20 Lacs
INTERPRETATION
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25
20
15
10.15
9.25
9.15
10
9.95
9.85
10.5
PNB
ICICI
SBI
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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40%
35%
35%
30%
30%
25%
25%
25%
20%
20%
15%
15%
10%
5%
0%
PNB
ICICI
Profitability
SBI
Growth
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
27%
32%
41%
PNB
ICICI
SBI
BANK
PNB
SBI
ICICI
PERCENTAGE
32%
41%
27%
INTERPRETATIONS
The above pie chart shows that taking loan from SBI is easier as compared to PNB and
ICICI bank.
45
40
40
35
35
30
25
25
20
15
10
5
0
PNB
SBI
BANK
PNB
SBI
ICICI
ICICI
PERCENTAGE
35
40
25
INTERPRETATIONS
Above pie chart state that documentation process for taking home loans is easier in SBI as
compared to PND and ICICI.
PERSONAL LOAN
EDUCATIONAL LOAN
CAR LOAN
11
10.5
10.9
12.75
13
14
13.75
14.5
PNB
S BI
IC IC I
13.5
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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100
YES
NO
Percentage
100
0
INTERPRETATION
Private
Nationalized
Bank type
Percentage
30
70
Private
Nationalized
INTERPRETATION
The 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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45
40
35
30
25
20
15
10
5
0
PNB
ICICI
SBI
Bank
PNB
ICICI
SBI
Others
Others
Percentage
30
22
40
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.
50
50
45
40
35
30
25
20
15
10
5
0
Home Loan
Education Loan
Type Of Loan
Home Loan
Education Loan
Car Loan
Personal Loan
Car Loan
Personal Loan
Percentage
45
20
20
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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PNB
ICICI
SBI
Customer Friendliness
Others
Percentage
26
18
24
15
ICICI
PNB
SBI
Others
INTERPRETATION
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The above pie chart shows that maximum number of people finds ICICI more customer friendly
than other banks.
ACTIVITY CHART
Particular
1st week
nd
2 week
3rd week
th
4 week
th
5 week
th
6 week
Activity
Find out the project topic and discuss with company guide and college
guide.
Finalize the topic and making a schedule for how to go about with project.
Find out the company profile , history, current data and the various loan
schemes.
Learn what are the various documents and procedure required for the loan,
and checking the eligibility of customers
Collecting data of SBI bank, company profile, various types of loan
provided by the bank.
Collecting data of ICICI bank , company profile, various types of loan
7 week
8th week
th
KEY LEARING
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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,
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
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.
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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 Report
Data 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
o
o
o
SBI
ICICI
PNB
Others
Home Loan
Education Loan
Car Loan
Personal Loan
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