BY:
ARCHANA
PGDABM
(2015-2017)
Research Objectives
1. To compare the lending policies of HDFC
BANK with other
banks and MFIs
2. SWOT Analysis
3. To extend credit support to the potential
areas
Research Methodology 1.Preparation of questionnaire.
2.Method of sampling: Stratified random
sampling
3.Focused group discussions.
4.Collection of data from bank and mfis.
5.Comparative study and SWOT analysis
INTRODUCTION
HDFC BANK LTD IS DEALING
WITH TWO PRODUCTS UNDER SELF
LIVELIHOOD INITIATIVE:
SELF
LIVELIHOOD
INITIATIVE
SELF HELP
GROUP
JOINT
LIABILITY
GROUP
15
10
YOUNG: 18 25
MIDDLE AGE: 26 45
AGED: 46 55
70
OLD > 55
ILLETRATE:CANNOT
READ AND WRITE
%activity m em ber
no
23
yes
1 9
24
27%
55
<12000
25000-50000
12000-25000
50000-1lac
73%
120
MEMBER
S
113(acti
7(not
ve
active)
member
s)
Tiffen
Stitching
Farming
Parlour
Fruit/veg.
shops/Vendo
rs
Personal
expenses
TIFFEN/MESS
STITCHING
FARMING
PERSONAL EXPENSES
PARLOUR
FRUITS/VEG.
SHOPS/VENDORS
PAPAD MAKING
NO OF MEMBERS
20
12
6
23
12
PERCENTAGE (%)
17
10
5
19
10
32
27
8
113
7
100
10%
INDEBTHNESS OF
CUSTOMERS
BANKS/MFI'S
LOCAL LENDERS
11(NO
LOAN)
90%
PSU(34)
UJJIVAN(8)
JANLAXMI(21
)
SURYODA
Y(4)
INDEBTHNESS OF CUSTOMER
40
35
34
33
30
25
20
15
1011
12
12
8
5
0
NO LOAN
3
PSU
UJJIVAN
JANLAXMI
BANDHAN
BELSTER
SURYODAY
BELSTER
(3)
BANDHAN
(9)
C
O
M
P
A
R
T
I
V
E
A
N
L
Y
S
I
M
D
S
.0
1
0
S
P
A
N
D
H
A
N
I
J
A
N
L
A
X
M
I
.5IC
Dimensio2
S
K
E
Q
U
I
T
A
S
.-0
0
H
D
F
C
.-1
5
G
R
A
M
E
N
K
O
T
A
U
J
I
V
A
N
.0
-2L
1
0
1
2
E
S
P
R
E
F
R
E
DM
O
S
T
P
R
E
F
R
E
D
GRAMEEN
CRITERIA
HDFC
PRODUCT
ROI
SOURCING
NO
JANALAKSHMI
UJJIVAN
JLG
JLG
23.6%
22%
old
customer, old
KOOTA
ICICI BANK
JLG
and
JLG
19.7%
JLG
27.6%
JLG/SHG
23%
SHG
18-20%
customer
Bank
,pamphlets
,pamphlets
channel
5-20
8-20
group members
5-20
5-25
>80%
THE Minimum
GROUP
SPANDANA
Bank channel
LITERACY
RATE
AGE OF
SKS
OF
MEMBERS
EQUITAS
not considered
not considered
12
months
(12-24) months
6months
NGO, Bank
Bank channel
Bank channel
No limit of max
channel
member(divide in
not considered
5-20
sub groups of 5 to 5- 30
10-20
20%
10)
Not
of
12months-
Minimum
24months
Nil
Know
Min 6 months
months
considered
6 Min
6
months
each
Should
COMPOSITION belong
not
other Know each other
Know
each
other,
to Know
each
same
with
no
caste,same
borrowers
same
family.
family
same family
co-
other
should not
be
ngo
DISTANCE
FROM CENTRE
OF
MEETING
OF
THE
less than 1 km
200-300m
100-300m
200m
Not
per
of
CRITERIA
HDFC
INSURANCE Rs 100
COVERAGE
JANALAKSHMI
UJJIVAN
EQUITAS
for
JLG
yes
Nil
REGULARITY
SPANDANA
KOOTA
BANK
Yes
Nil
yes
Yes
15
weekly
MEETINGS
month
TAT
5 days
3-5 days
disbursement date
7 days
14 days
5days
10 days
Not
Not
Not considered
considere
considered
d
Not considered
Done(SHG)
LENDING
fresh
not
AMOUNT
MARITAL
CRITERIA
existing
first
lender
TOP
Not considered
UP Given
Married,
Mostly married if
unmarried
unmarried
age>40
and
loan fixed
OF
R-D
Not given
completion of
10 weeks.
Married
Married
ICICI
SKS
meetings On
before
GRAMEEN
On a fixed date
days
meeting
one Yes
with
bank officials
4-5 days
3days
Not
considere
Not considered d
Every
Both
Both
member
existing
avail loan
Not given
Not given
Not given
Married(compuls
Not
Given
ory
present
of
Married
husband
during Married
Married
loan
disbursement)
CRITERIA
HDFC
done
JANALAKSHMI UJJIVAN
EQUITAS
in
group in jlg
COLLECTIO
NS
RATING
1st
SKS
Fixed
On 5th or 15th
Weekly
On
28th
of date
every month
SPANDANA
GRAMEEN
ICICI
KOOTA
BANK
No
Fixed date in a
collection
week or month
of
by
amount
bank Weekly
officials
as
its
deducted
of funding
maximum)
from their
No
account
700/
100/200
80/100
rating
No rating
No rating
1000
120/ 200
No rating
25-50KMS
25KMS
DISTANCE
FROM
BANK
TO
GROUP
DOCUMENT
S FOR
VERIFICATI
ON
25KMS
25 KMS
Aadhar
Aadhar
card,voter
card,voter
SAS/Highma SFDC,Highmark,
NOT
25KMS
25KMS
COSIDER
ED
Ration
Aadhar
Aadhar
card,vote
card,voter
card,voter
card,vot id,electricity
id,electricity
id,aadhar
er id
bill
Highmar
bill
card
25KMS
Aadhar
Ration
card,voter
card,voter
id,electricity
id,aadhar
bill
card
Aadhar
CRITERIA
INITIAL
LOAN
AMOUNT
HDFC
JANALAKS
HMI
UJJIVAN
3000010000 40000
Rs 30000
EQUITAS
SKS
Rs 20000
Rs 15000
SPANDANA
Rs 10000
GRAMEEN KOOTA
Rs 15000
ICICI
BANK
Rs 50000
loan
avg
glp
glp
clien clien
amount
ts
ts
chan loan
loan
per
per loan
disburse
per
ge outstan
amount
ber
loa
Employee( Ofcer(rs loan
d(
Bra
ding
n
(
disbursed
rs in lak) in lakh) ofc bran
State
nch
Emplo
clients
quarterl
Glp(in
of
per
per
ch
er
Quarter
)
s
es
yees
(lakh)
y,
Rs
cr)
cer
client
account(r
%
s
(Rs)
Cr)
s)
YOY
MFI
Q3
15
Janalaksh Q2
mi
16
SKS*
Ujjivan*
Equitas*
fy14- 2,956.30
fy15- 6,338.69
114%
Q3 fy 14- 3,194.81
15
93%
Q2 fy 15- 5,462.09
16
Q3 fy 14- 2,870.02
42%
15
Q2 fy 15- 4,088.20
16
Q3 fy 14- 1,970.88
15
Q3 fy 15- 2,319.72
18%
avg
14,678
995
20,295
19,408
2,742
30,175
9,024 1,544
12,146
14,295
2,665
13,404
15,064
1,174
20,469
15,739
1,648
19,884
8,985 500
13,714
9,634 619
15,342
223
5,544 5,3
77
7,344 7,1
11
20.14 53.32
54.98
375 9,032
32.66 86.31
89.14
459 11,5
82
9,089 4,4
40
18 1,138 10,782 5,4
56
35.40 35.15
71.96
797 3,111
38.21 50.66
100.11
700 3,358
6,547 3,5
42
7,786 4,1
05
19.05 43.84
81.03
538 4,504
25.97 52.51
99.59
633 5,538
3,730 2,0
86
4,255 2,3
21.93 52.84
24.08 54.52
18
282
1,138
423
24
469
354
8
377
With the above graph we can see that MFIs penetration is less in the
northern states which holds a good opportunity for the bank to expand in
those areas, also no of rural people inhabiting in states like Bihar, Uttar
Pradesh, Madhya Pradesh are more comparison to the southern states so
those untapped areas hold a good opportunity to expand with the bank
The
MFI
customer base as a percentage of total households in most southern
credit
policies.
and eastern states is alarmingly high. Our analysis suggests that in the five
large states of Tamil Nadu, Karnataka, West Bengal, Assam and Odisha, which
account for 50% of Indias total outstanding microfinance credit, one of every
five households has borrowed from MFIs as of FY15. In the top 7 states which
SWOT ANALYSIS
Distance from the Branch
Less Number of Staff
Rules and regulations not properly
followed
Special Services
Huge networking.
Low Interest Rate
Strong Customer Base
Strong Brand Image
Timeliness service
STRENGTH
WEAKNESS
OPPORTUNI
TY
THREAT
Increasing competition
Not utilization of credit for economic activity
Money lenders and brokers decreases ROI
SUJJESTIONS AND
DISCUSSIONS
U
O
Y
K
THAN