Presented To: Dr. Manjit Singh
Presented By: Pallavi Agarwal MFC- II Roll No.- 512
Contents
Objectives of the study Research methodology Company profile Business mission Capital structure Amalgamation Distribution Technology Management Business Loans Pre-requisites for loan Comparison of loans Customer satisfaction survey Suggestions Limitations Questionnaire
OBJECTIVES OF THE STUDY
The objective of the study is divided into two parts: Primary Objective: The main objective of the study is to find out the tariff charges, percentage of funding, tenure of loan and other charges charged by other banks in comparison to HDFC Bank. The aim of the study is to help HDFC to know where it lacks in Loans and how far the performance of other banks is better, so that HDFC figure out the common problems being faced by customers while dealing in the Loan Department so that further HDFC can improves its services and schemes offered by them to their customers. Secondary objective: The secondary objective of the study is to find out the extent to which customer expectations match HDFC performance in Loan services. This was done to help HDFC to recognize their faults in customer dealing .As in this competitive world customer satisfaction is more important than huge profits so customer satisfaction survey will help it in finding out its position.
RESEARCH METHODOLOGY
PRIMARY DATA Questionnaire Open and close ended questions Interview Personal visits to Various banks
SECONDARY DATA Website of HDFC Pamphlets & Brochures Magazines Articles & News papers
SUGGESTIONS
TOOLS USED Comparative Study Analysis Statistical tools like pie charts & tables
COMPANY PROFILE The HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a commercial bank of India, incorporated on 30th August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai, India , after the Reserve Bank of India allowed establishing private sector banks. HDFC Bank commenced operations as a Scheduled Commercial Bank on 16th January 1995. The Bank was promoted by the Housing Development Finance Corporation, a premier housing finance company (set up in 1977) of India.
BUSINESS MISSION HDFC Bank's mission is to be a World-Class Indian Bank. The objective is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments. HDFC Bank's business philosophy is based on four core values - Operational Excellence, Customer Focus, Product Leadership and People.
CAPITAL STRUCTURE
The present Authorized Share Capital of the Bank is Rs. 550,00,00,000/Paid up Share Capital as on March 31,2009 is Rs. 425,38,41,090/-
From year To
Authorized
Issued Paid up
Paid up shares
year
capital
capital
(nos.)
2008
2009
550.00
425.38
425384109
2007
2008
450.00
354.43
354432920
2006
2007
450.00
319.39
319389608
2005
2006
450.00
313.14
313142408
2004
2005
450.00
309.88
309875308
2003
2004
450.00
284.79
284791713
AMALGAMATION In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman & Co./Times Group) was merged with HDFC Bank Ltd., effective February 26, 2000. As per the scheme of amalgamation approved by the shareholders of both banks and the RBI, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Bank. RBI, has approved the scheme of amalgamation of Centurian Bank of Punjab with HDFC Bank with effect from 23 May,2008. As per the scheme of amalgamation, shareholders of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP. The merger made HDFC Bank the seventh largest in India in terms of assets.
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 1416 branches spread over 550 cities across India. Customers in over 500 locations are also serviced through Telephone Banking. The Bank also has a network of about over 3382 networked ATMs across these cities while it has just 1054 in 2006.
TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of IT and communication systems. All the bank's branches have online connectivity, which enables the bank to offer speedy funds transfer facilities to its customers. The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world-class bank. In terms of software, the Corporate Banking business is supported by Flex cube, while the Retail Banking business by Fin ware, both from i-flex Solutions Ltd. The system is open, scaleable and web enabled.
ManagementStructure of Bank
HR HDFC
Mr. Jagdish Capoor took over as the bank's Chairman in July 2001. Prior to this, Mr. Capoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Aditya Puri, has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibank's operations in Malaysia.
Mr. Jagdish Capoor
Chairman Managing Director
Mr. Aditya Puri
Regional Head
Mr. Govind Pandey
Zonal Head
Mr. Vineet Arora
Cluster Head
Mr. Amit Gagneja
Branch Manager
Mr. Sanjeev Jindal
Assistant Manager
Mr. Vikas Chopra
Relation Manager
Mr. Manoj Mangla
Personal Banker, Teller, Co.-ex
Awards Given to HDFC Bank
Business Today-Monitor Group survey
One of India's "Most Innovative Companies"
Financial Express-Ernst & Young Award
Best Bank Award in the Private Sector category
Global HR Excellence Awards - Asia 'Employer Brand of the Year 2008 Pacific HRM Congress: -2009' Award & First Runner up Business Today
'Best Bank' Award
Dun & Bradstreet – American 'Corporate Best Bank' Award Express Corporate Best Bank Award 2008 Outlook Money & NDTV Profit
Best Bank Award in the Private sector category
Asian Banker
Our Managing Director Aditya Puri wins the Leadership Achievement Award for India
The Asian Banker Excellence in Retail Financial Services Awards
Best Retail Bank in India
Business The Bank operates in three segments:
Retail Banking
HDFC BANK Wholesale Banking
Treasury Services
LOANS Majority of the people are under the burden of piled up debt, which make them avail various loans just to consolidate their debt. By seeing its sudden importance many financial institutions and firms have started giving these loans on very affordable and nominal rates. Lenders first calculate the amt. you can borrow and that entirely depends upon the salary, expenditure and saving you have. Ones the loan is decided the next step is calculate the time frame, which can usually range from 1 to 25 years. There are few points to be kept in mind while availing the debt consolidation loan. If possible consult any financial expert or broker for the exact information so that there is no problem in the future.
Contd…
Always choose the best and top rated financial firm for getting the loan, as this will let you get the loan at very affordable interest and amount.
Try to make every installment on time so that there is no payment issue in the future. And also keep the track of all the payments made by you so that there is no confusion in the end.
Try to use the advice of the people who have already availed the loan as they can guide you with their experiences.
Therefore the person must keep all these points in the mind in order to get the full and fruitful usage of the loan amount. Thus, if you are buried under the piled up debt then debt consolidation loans are there for you to sail you out but opt for the best and trusted policy and company.
PRE REQUISITES FOR ALL LOANS A) SUPPORTING ‘DOCUMENTS’ REQUIRED TAKING A LOAN In Case Of Salaried Employees: ID proof - Pan card /driving license / employee I-card / voter ID / passport. Residence proof - Electricity bill / telephone bill / water bill / ration card. Latest 3 Months Salary Slip with all deductions Form no.16 for income tax return Bank statement for the last six months One photo self attested In Case Self-employed: ID proof- Pan card /driving license / employee I-card / voter ID / passport. Residence proof- Electricity bill / telephone bill / water bill / ration card. Financial statement of the business / profession along with copies of Individual Tax Returns for the last three years certified by Chartered Accountant Income tax return + computation not more than 2 years old. Bank Statement not more than 6 months old.
(B) ELIGIBILITY CRITERIA In Case Of Salaried Employees: Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 60 years Minimum employment: 1 year in current employment and minimum 2 years of employment Minimum Annual Income: Rs 100000 net annual income Telephone: Must at residence In Case Self-employed: Minimum age of Applicant: 21 years Maximum age of Applicant at loan maturity: 65 years Minimum employment: At least 3 years in business Minimum Annual Income: Rs.100000 per annum Telephone: Must at residence
(C) FILE MOVEMENT IN LOANS FOR VERIFICATION
Documents collected from customer and sent to the credit agency File sent for login at CPA File sent for Field Investigation (FI) for verification
Risk Intelligence & Control agency (RIC) checks the customer’s background Credit Appraisal Memo (CAM) is prepared File reaches the credit manager for approval or rejection File again reaches bank for disbursal Money given to customer File finally reaches Mumbai (Head Office)
COMMON TERMS USED IN COMPARATIVE STATEMENTS
Rate Of Interest- Fixed rate of interest as the name suggests, is the rate that remains fixed throughout the tenure of the loan. The rate does not normally change till the full repayment of the loan. Floating rate is the rate which moves upward or downward depending upon the market forces. Processing fees: A Processing fees are stamp charges. It is charged on the loan amount when the loan is sanctioned. It starts from 0.5 % and goes till 5%. Penalty: Penalty is also known as pre closure charges. If the repayment of the loan is done before the tenure, then penalty charges are charged from the customer of the outstanding loan. Tenure: Tenure is the duration of time the loan is taken. Funding: Funding means maximum percentage of loan to fund to the customer. Generally a small amount of margin is kept with the bank, rest is given to the customer. Charges for late payment of EMI: if the borrower does not pay the EMI at its due date then he will charged with fines. This is generally according to the time for which the payment is delayed.
COMPARATIVE STATEMENT OF HOME LOAN
PARTICULARS HDFC
ICICI
SBI
SBOP
R.O.I.(FIXED)
14.1%
15%
13.25%
13.75%
FLOATING
8.75%<20 lacs For salaried 8.75%<15 lacs 9.25% upto 9.00%>15 lacs 1 crore Self employed 9.75%>1 crore 9.00%
PROCESSING FEES
0.5%+service 0.5%+service tax tax
8%
NIL
8%
1%
Contd… PENALTY 2% p.m. on
2% p.m. on the o/s amount
2% p.m. on the o/s amount
2% p.m. on the o/s amount
20 years
20 years
10 years
10 years
CBC
100
225
225
225
FUNDING
85%
80%
80%
80%
MIN. AGE
18
21
21
21
MAX. AGE
65
65
70
65
the o/s amount upto 4 years & 4 years its nil TENURE
COMPARATIVE STATEMENT OF PERSONAL LOAN PARTICULARS HDFC R.O.I.(FIXED)
FLOATING
PROCESSING FEES
ICICI
SBI
SBOP
12.5%
N.A.
No Fixed
13.75%
14%
N.A.
13.5%
13%
2.25%
2.5%
0.5%
1%
Contd… PENALTY
TENURE
2% p.m. on the o/s amount 5 years
2% p.m. on the o/s amount 4 years
CBC
450
400
FUNDING
85%
N.A.
MIN. AGE
21
25
MAX. AGE
65
58
2% p.m. on the o/s amount 5 years 225 No Fixed
2% p.m. on the o/s amount 5 years 225 No Fixed
21
21
65
65
COMPARATIVE STATEMENT OF AUTO LOAN PARTICULARS HDFC
ICICI
R.O.I.(FIXED)
10.5%
N.A.
FLOATING
10.5%
N.A.
SBI
SBOP
11.75% For
1 year
11.25% 10.25%
8% Above 1 year 10% PROCESSING FEES
<2 lacs-2000 <2.5 lacs-2500 2-4 lacs-3000 2.5-5 lacs-3100 >4 lacs-3500 5-10 lacs-4000 >10 lacs-5000
Nil
0.5%
Contd… PENALTY
2% p.m. on the o/s amount
2% p.m. on the o/s amount
TENURE
3-5 years
5 years
CBC
450
400
FUNDING
90%
90%
MIN. AGE
21
21
MAX. AGE
65
65
2% p.m. on the o/s amount 7 years
2% p.m. on the o/s amount 7 years
225
225
85%
90%
21
21
65
65
COMPARATIVE STATEMENT OF TWO WHEELER LOAN PARTICULARS HDFC
ICICI
SBI
SBOP
R.O.I.(FIXED)
12.75%
N.A.
No Fixed
14%
FLOATING
14%
N.A.
15.5%
13.25%
2%
N.A.
Nil
PROCESSING FEES
1%
Contd… PENALTY
3% p.m. on the o/s amount
N.A.
2% p.m. on the o/s amount
TENURE
4 years
N.A.
CBC
450
N.A.
225
225
FUNDING
85%
N.A.
85%
85%
MIN. AGE
18
N.A.
21
21
MAX. AGE
65
N.A.
65
65
7 years
2% p.m. on the o/s amount 7 years
COMPARATIVE STATEMENT OF LOAN AGAINST PROPERTY PARTICULARS HDFC
ICICI
SBI
SBOP
R.O.I.(FIXED)
15%
14.75%
No Fixed
FLOATING
13.5%
13.5%
13.5%
13.25%
1%
1%
1%
1%
PROCESSING FEES
No Fixed
Contd… PENALTY
2% p.m. on the o/s amount
2% p.m. on the o/s amount
2% p.m. on the o/s amount
2% p.m. on the o/s amount
TENURE
15 years
20 years
10 years
10 years
225
225
CBC
450
400
FUNDING
45-65%
65%
MIN. AGE
21
21
21
21
MAX. AGE
65
65
65
65
No Fixed
No Fixed
CUSTOMER SATISFACTION SURVEY
In the study, a random sample of only existing customers of the HDFC Bank was taken. The customers studied under this survey were mostly walk-in customers. Proper care was taken to approach those customers who could easily fill up the questionnaire and were rational in their response. But there could be some errors in the analysis, which could have crept into due to lazy respondents, human errors and other factors. Sampling procedure convenience sampling Sample size 100 Sample extent Allahabad city
Occupation of respondents stu de n t
re t ire d 8% se lf e m p lo y e d
10% sa la rie d 47%
35%
Maximum numbers of customer i.e. 47% belong to salaried class, 35% of the customers are self- employed, 08% of the customer are retired and 10% are students.
Types Loan lo a n a g a in of st tw o w he e le r lo a n
p ro p e rtyh o m e lo a n 8% 24%
12% a u to lo a n 34%
p e rso n a l lo a n 22%
34% customers are of Auto Loans, 24% are of Home loans, 22% are of personal loan, 12% are of Two Wheeler loans and 8% are of loan against property.
Bank from which loan service is being availed HSBC
7%
OTHERS
HDFC
12%
22%
IDBI
8% AXIS
10%
ICICI
13% SBOP
12%
SBI
16%
22% have taken the loan from HDFC Bank,13% from ICICI,16% from SBI,12% from SBOP,10% from AXIS,8% from IDBI,7% from HSBC and 12% from others.
Based on the customers experience would you like to prefer this bank in future probably
probably would
not 2%
30% definitely would 68%
Majority of the HDFC Bank loan holders i.e. 68% say that they would definitely select this bank again in future for further services. 30% of the customers say they would Probably select this bank again, while 2% say they would probably not select this bank again.
Bank is quick in documentation process
As far as documentation process is concerned, 61% of the respondents has positive feedback i.e. bank is quick in process as compare to 5% of respondents who has negative feedback.
Bank shows promptness in disbursements
This chart indicates that 61% of the respondents have a view that bank shows promptness in disbursement as compare to the very few respondents who has mixed kind of response
Bank has convenient banking hours
Here the view is different; the response was quite mixed up as only 8% strongly agreed with it while 28% moderately disagreed with it.
Bank is transparent in all the dealings and details are communicated properly
Above chart shows that around 54% of the respondents agree with the statement where as 30% of the respondents have no stand about the statement and nearly 4% of the respondents disagree with the statement.
SUGGESTIONS During the survey, it was found that the customer had to wait too long for the loans to get disbursed. The processing time is too long. Customer had to wait for their loan processing done by the staff. Efforts should be made to reduce it It was found out that there is lot of formalities in the loan disbursement process. Too much documentation is done. Customer is not aware of all the formalities to be done which he is asked to do. Reading loan agreement at the time of taking loan is time consuming. Therefore paper work should be more friendly and clear. After sales service is not up to the mark. Customers facing problems are not attended on time. Staff is generally co-operative only at the time of loan is sanctioned and disbursed. Therefore after sales service should be improved up to satisfaction level of the customer. Customers should be given proper information about EMI. They are generally not told how their EMI are calculated. They should know its calculation and its amount. Public dealing hours should be increased to some later time period because majority of the customers were found out to be salaried in the survey. Website of HDFC Bank should be up dated and should give more options and features to customers so that they can get maximum information sitting at home. Bank should make efforts to attract more and more customers through increased advertisement.
LIMITATIONS OF THE STUDY
While working on the project following limitations and constraints were found. As the study was done within a branch of HDFC Bank it did not cover the broad spectrum of customers. Lack of expertise being a trainee in analyzing data. The sample size had to be contained 100 respondents due to constraints on time. Some respondents were not co-operative, did not respond to the questionnaires very well. Some respondents gave biased information so as to promote their Bank in which they are dealing.
QUESTIONNAIRE
(Customer Survey) NAME:__________________ AGE:__________________ ADDRESS:___________________________________ SEX: Male / Female What is your annual income?
a) b)
Below 1 lac 1-2 lac
What is your occupation ?
a) b)
c) 2-3 lac d) above 3 lac
Salaried Self-Employed
c) Retired
What kind of loan you have taken? a) b) e)
Home loan c) Auto loan Personal loan d) Two wheeler loan If any other, specify ____________
What is the: Amount of loan: ________________ Tenure: _______________________ From which bank you have taken?
Since when a) Less than 2 years b) Less than 5 years c) More than 5 years Based on your experience, would you select this bank for any service again in future? a) Definitely would c) Probably not b) Probably would d) Definitely not
Please rate how would you compare the following attributes for customer convienence. Given below are set of statements kindly give your choice:-
1
2
3
4
Strongly disagree
Moderately disagree
Neither agree Moderately or disagree agree
5 Strongly agree
Bank has modern buildings and up to date infrastructure
1
2
3
5
Bank is located at a convenient location and has proper parking space
1
2
3
Average transaction time involved in transactions is acceptable
1
2
3
Employees have caring attitude towards their customers
1
2
3
My bondage with banker is very strong Bank is technology driven
1 1
2 2
3 3
4 4
5 5
Bank understands specific needs of customers and give individual attention
1
2
3
4
5
Customers have access to bank management in case of some serious problem
1
2
3
4
5
Employees are courteous and show willingness to help client
1
2
3
4
5
4
4
5
4
5
4
5
Bank is transparent in all the dealings and details are communicated properly
1
2
3
4
5
Bank has convenient banking hours
1
2
3
4
5
Bank is quick and efficient in transfer
1
2
3
4
5
1
2
3
4
5
Bank has an adequate branch network
1
2
3
4
5
Bank has an adequate skilled and trained Employees
1
2
3
4
5
Bank shows promptness in disbursement
1
2
3
4
5
Bank is quick in documentation process
1
2
3
4
5
Transaction cost involved is acceptable
1
2
3
4
5
of funds
Bank have foolproof security arrangements to ensure safety
as compared to other banks
Additional staff and counters are deployed
1
2
1
2
3
4
5
4
5
during peak hours
Bank has proper seating arrangement
Any suggestions for improvement ______________________________________ ______________________________________ ______________________________________ Thank you.
3
BIBLIOGRAPHY
http://www.hdfcbaknk.com/personal/loans/auto_loans.htm http://www.hdfcbaknk.com/personal/loans/personal_loans.htm http://www.hdfcbaknk.com/personal/loans/home_loans.htm http://www.hdfcbaknk.com/personal/loans/twowheeler_loans.htm http://www.hdfcbaknk.com/personal/loans/loanagainstproperty.htm http://www.icicibank.com http://www.statebankofindia.com http://www.statebankofpatiala.com Various pamphlets and brochures of HDFC bank
