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A
RESEARCH PROJECT REPORT
ON
AUTO LOAN
Submitted in partial fulfilment of the requirement
For the award of degree
Of
MASTERS OF BUSINESS ADMINISTRATION
(FINANCIAL SERVICES)
SESSION (2010-2012)
SUBMITED TO :- SUBMITED BY:-
PROF. KALPANA DINESH
MATHUR IVth SEMESTER
DEPARTMENT OF MANAGEMENT STUDIES,
FACULTY OF COMMERCE AND MANAGEMENET
STUDIES,
JAI NARAIN VYAS UNIVERSITY, JODHPUR
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ACKNOWLEDGEMENT
It is my pleasure to be indebted to various people,
who directly or indirectly contributed in the development of this
work and who influenced my thinking, behaviour, and acts
during the course of study.
I express my sincere gratitude to PROF. KALPNA
MATHUR (HOD), worthy Principal for providing me an
opportunity to undergo on Research Project Report on AutoLoan at HDFC Bank.
I am thankful to Mr. HIMANSHU SOOD (BM)
for his support, cooperation, and motivation provided to me
during the research for constant inspiration, presence and
blessings.
Lastly, I would like to thank the almighty and my
parents for their moral support and my friends with whom I
shared my day-to-day experience and received lots of
suggestions that improved my quality of work.
Mr. Dinesh
(Name of the student)
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DECLARTION
I, DINESH, STUDENT OF MBA (F.S.) IVTH
SEMESTER, STUDYING AT JAI NARAYAN
VYAS UNIVERSITY (FACULTY OF
MANAGEMENT) JODHPUR, HEREBY DECLARE
THAT THE RESEARCH PROJECT REPORT ON
AUTO LOAN AT HDFC BANK SUBMITTEDTO JAI NARAYAN VYAS UNIVERSITY,
JODHPUR IN PARTIAL FULFILLMENT OF
DEGREE OF MASTERS OF BUSINESS
ADMINISTRATION IS THE ORIGINAL WORK
CONDUCTED BY ME.
THE INFORMATION AND DATA GIVEN IN THE
REPORT IS AUTHENTIC TO THE BEST OF MY
KNOWLEGE.
THIS RESEARCH PORJECT REPORT IS NOT
BEING SUBMITTED TO ANY OTHER
UNIVERSITY FOR AWARD OF ANY OTHER
DEGREE, DIPLOMA AND FELLOWSHIP.
MR. DINESH
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TABLE OF CONTENTS
Page No.
1. INTRODUCTION
2. ABOUT AUTO LOAN
3. RESEARCH METHODOLOGY
RESEARCH DESIGN
STUDY
DATA COLLECTION OBJECTIVES OF THE METHOD
SOURCE OF DATA
SAMPLING CONCEPTS
SAMPLE DESIGN
SCOPE OF STUDY
LIMITATIONS
4. DATA ANALYSIS AND INTERPRETATIONS
5. SWOT ANALYSIS
6. RECOMMENDATION AND FINDINGS
7. CONCLUSIONS
8. APPENDIX
ANNEXUREI QUESTIONNAIRE
9. BIBLIOGRAPHY
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INTRODUCTION
1. The Urban Cooperative Banks (UCBs), along with other cooperative
banks, were brought under the regulatory ambit of RBI by extending
certain provisions of Banking Regulation Act, 1949, (B.R.Act) effective
from March 1, 1966. Since then, the urban banking sector has witnessed
phenomenal growth in terms of reach, size, volume of operations and the
quantum of public deposits held by it. In the past, two Expert Committees
had examined the role assigned to UCBs and the regulatory issues related
to them. Report of the Committee on Urban Cooperative Banks, 1978
(Madhava Das Committee) provided a well-documented study of urban
banking sector in India and set standards of viability for sustained growth
of urban banks. The last Committee on UCBs (Marathe Committee) which
submitted its Report in 1992, had come out with far reaching
recommendations, and it had, primarily aimed at removal of fetters on
UCBs freedom. RBI has accepted most of these recommendations and
implemented them.
2. RBI felt that it should take stock of the performance of urban cooperativebanking sector after the introduction of a fairly deregulated regime in 1993
in the light of the recommendations of Marathe Committee Report and the
more deregulated scenario of the commercial banking sector consequent
to the recommendations of Narasimham Committee Report on Banking
Sector Reforms. This review is to particularly focus on the entry point
capital prescription, proliferation of weak banks, implementation of
prudential norms, inadequate legal provisions and problems created by
dual control of UCBs by RBI under B.R.Act, and State Governments under
the respective State Cooperative Societies Acts. While announcing the
monetary policy for the year 1999-2000, the Governor, Reserve Bank of
India desired to constitute a High Power Committee to address these
issues. Accordingly, the present High Power Committee was constituted
by the Governor, Reserve Bank of India, in May 1999 to review the
performance of urban cooperative banks and suggest necessary
measures to strengthen them.
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Composition of the Committee
Shri K. Madhava Rao Chairman
(Ex-Chief Secretary to the Government of Andhra Pradesh,
Hyderabad) Shri Y.H. Malegam (Member Director, Central Board of RBI and
Chartered Accountant, Mumbai)
Shri Subhash S. Lalla (Member Commissioner for Cooperation &
Registrar of Cooperative Societies Government of Maharashtra, Pune)
Dr. Sawai Singh Sisodia (Member President, National Federation for
Urban Cooperative Banks & Cooperative Societies New Delhi)
Dr. Mukund L. Abhyankar (Member Director, Cosmos Co-op. Bank
Ltd., Pune)
Shri P.S. Vyas (Member Managing Director Gujarat State Co-op. Bank
Ltd., Ahmedabad)
7. Shri M.M.S. Rekhrao (Member Chief General Manager Reserve
Bank of India Urban Banks Department Central Office, Mumbai)
Shri O.P. Sharma (Member-Secretary Chief General Manager Reserve
Bank of India Urban Banks Department Mumbai Regional Office.
Mumbai)
3. Terms of Reference :
i. To evolve objective criteria to determine the need and potential for
organizing urban cooperative banks, review the existing entry point
norms and examine the relevance of special dispensation for less/least
developed areas etc.
ii. To review the existing policy pertaining to branch licensing and area of
operation of urban cooperative banks.
iii. To consider measures for determining the future set up of
weak/unlicensed banks.
iv. To examine the feasibility of introducing capital adequacy norms for
UCBs.
v. To examine the need for conversion of cooperative credit societies into
Primary Cooperative banks.
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vi. To suggest necessary legislative amendments to B.R.Act and
Cooperative Societies Act of various states for strengthening the urban
banking movement.
4. APPROACH OF THE COMMITTEE
The Committees approach to the task assigned to it by the RBI is
governed by three important considerations viz.,
i. Preserving cooperative character of UCBs,
ii. Protecting depositors interests and
iii. Ensuring systemic stability of the banking sector.
PRESERVING COOPERATIVE CHARACTER
It is necessary to recognize the strengths and weaknesses of urban
cooperative banks in the field of much needed micro credit and how best
to foster and encourage UCBs in rendering this service to the small
borrower who is not as welcome at the doors of commercial banks, as at
the hands of UCBs. The representatives of UCBs and their federations
constantly claim that they have a distinct role in the banking sector as theyand the small borrower are made for each other and that any amount of
expansion of branch net work of commercial banks, including RRBs, will
not solve the problem of the small borrower without the presence of UCBs.
The Committee made conscious efforts to go into the veracity of this claim
of UCBs. The Committee organized a survey of 103 clients that
approached 13 UCBs on two different dates. The response of these
clients is a resounding confirmation of the claims of UCBs. 85% of the
clients said that they had come to UCBs because they are not entertained
by the commercial banks; 85% of the clients stated that UCBs provide
faster service and 82% of clients felt that UCBs provide more personalised
service than commercial banks.
5. Not satisfied with this evidence, the Committee talked to the field officers
of RBI who are now in service as well as some who retired from service.
They also confirmed that UCBs predominantly cater to the persons of
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small means and they unhesitatingly stated that UCBs must be
encouraged to continue and expand. Our interaction with some of the
senior level officers of commercial banks netted the same result. The
State Government Officers have the same word of praise for the UCBs.
The data with RBI also shows that 84.1% of UCBs fulfill the stipulated
priority sector lending of 60% of the banks total advances. Very few UCBs
asked for reduction of 60% target though the priority sector target for
commercial banks is only 40% and which is not always achieved. This
shows what darlings UCBs are in the context of giving micro credit to a
multitude of small borrowers.
6. The yeomen service being rendered by UCBs to micro credit enterprises
and small borrower comes as sweet music to the ears of the Committee.
But the Committee also hears some harsh and unpleasant notes in the
background. Some of them are too jarring to be ignored even as one loves
to concentrate on hearing the sweet notes.
7. Enormous increase in the number of UCBs in the last 6 years is
something which requires a serious focus by the RBI. If the increase is
due to relaxed entry norms and the promoters are genuine cooperators,we can relax. If the new entrants are not genuine cooperators and if some
of them are promoted by the people who had to quit the NBFC sector
because of stringent regulatory framework put in place by RBI, then we
have a lot to worry about. The Committee has no wherewithal to go into
this sensitive but important aspect. It would urge RBI to take appropriate
steps to probe into the whispers we hear that some of the NBFCs are
getting into UCB sector through the backdoor.
8. The second cause of our concern is the number of weak UCBs. It is just
not the number. We should also look at the causes for the sickness. If the
sickness is due to some genuine commercial decisions going wrong, the
problem is less serious. But if a large number of banks became weak due
to motivated actions of the Managing Committees, then there is greater
cause for concern. Theoretically, Managing Committees are answerable to
the General Body. This answerability works if the membership of the
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UCBs is genuine and the members take active interest in the affairs of the
UCBs. Here again we hear some deep throats conveying things to the
contrary that low entry capital norms have facilitated small group of
persons or a few families establishing UCBs by raising the capital and
taking names of voiceless persons on the membership rolls. We also hear
more open complaints that the attendance at the General Body meetings
is alarmingly low. If the low turn out at the General Body meetings is due
to the confidence of the genuine members in the impartiality, integrity and
efficiency of Managing Committee to deliver the goods, the problem is less
serious. But if it is because of bogus membership, the problem becomes
acute.
9. The third cause for concern is the quality of professionalism. If there is
predominant presence of genuine cooperators in the Management
Committee and General Body, their experience, common sense and
commitment to the bank can partly compensate for lack of
professionalism. But if what the deep throats say is true, lack of
professionalism can be fatal to the health of the UCBs.
10. Thus, we find that UCBs have their great strengths but not without theirshare of deficiencies. The Committee has, therefore, to keep this mixed
bag in mind while recommending certain facilities and concessions from
RBI and State Governments and at the same time suggest stringent
norms to be fulfilled by UCBs.
PROTECTING DEPOSITORS INTEREST
11. An UCB is not like any other cooperative society. The good and bad
aspects of a normal cooperative society benefit or harm only its members,
since these societies are organized and run by the members and for the
members. But UCBs do more than that. UCBs accept deposits from the
public and, hence, their actions affect the interests of the depositors. Since
depositors place their funds with UCBs in good faith, the UCBs become
trustees of the depositors money. Hence, service to depositors becomes
a higher duty than service to members. Thus, the moment a cooperativesociety graduates into a bank, its actions and discipline have to be judged
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in altogether a different context. Champions of cooperative movement
claim that since cooperatives are democratic organizations, they should
be left to self-discipline and outside bodies should not trample their
democratic rights. This argument makes perfect sense as long as they
remain normal cooperative societies. But when they aspire to take on
banking functions their democratic rights have to be subordinated to the
interests of the depositors. Safeguarding the interest of depositors cannot
be left only to the Management Committee and General Body. We need
an external agency to play the role of an umpire. If the cooperators are not
prepared to accept external discipline they are free to remain as normal
cooperatives. If some existing UCBs feel uncomfortable with external
discipline they have all the freedom in the world to return the deposits of
the public and revert to the status of a normal society. The banking
function necessitates subordination of democratic rights of the members to
the duty of serving the depositors. Even the Fundamental Rights of an
individual enshrined in the Constitution of a great democratic country like
India are subject to the similar rights of another individual. The inalienable
and the unalterable Fundamental Rights of one individual end when the
Fundamental Right of another individual begins. UCBs, therefore, cannot
complain when stricter financial norms are prescribed or professional
content in the composition of Management Committee is stipulated to
safeguard the interests of the depositors.
ENSURING SYSTEMIC STABILITY
12. No bank can act in isolation. Banking activity is by nature a network. Acts
of one bank have a ripple effect on the system as a whole. Moreover, thebanking activity of UCBs is fairly large. The deposits and advances of
UCBs constituted 7% and 8.8% respectively of the deposits and loans of
scheduled commercial banks as at the end of 31 March, 1999. What is
more, the rate of growth of deposits as well as loans of UCBs is much
higher than commercial banks. With such considerable share in banking
sector, failure or serious sickness in UCB sector will have serious
adverse effect on banking system. Failure of a bank like BCCI in U.K.,
Loans and Saving Societies in U.S. became a matter of great concern for
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other countries. It is, therefore, of utmost importance that the regulator
prescribes and strictly enforces financial and managerial discipline in
such a way that the performance of UCBs contributes to the over all
stability of the banking sector. Each UCB may not know or may not care
for the consequences of its action on the systemic stability. Herein lies
the role of the Regulator to delineate the road map and install the green,
amber and red lights.
13. In making our recommendations regarding the area of operation of the
bank we have, therefore, been guided by the principle that a bank will
initially operate within a district or within adjoining districts because it is
mainly people within a district or within adjoining districts who are likely to
have a common need and a common identity which creates the
environment in which it becomes necessary for an UCB to emerge. As
the bank extends its area of operation, this cooperative character tends to
weaken and it assumes more and more the character of a commercial
bank. Therefore, such extension must be accompanied by prescription of
conditions under which commercial banks are allowed to operate.
14. Ideally, the members of an UCB should have the same or nearly the same
stake in the capital of the bank. However, the need to build up a sizeable
capital structure and the unequal borrowing needs of the members
inevitably result in some members holding a larger part of the capital than
others. This also weakens the cooperative character and, therefore,
creates the need to have some restriction on individual holdings.
15. Ideally also, all depositors and borrowers should be members. However,
the need to increase the deposit base as also to gainfully employ the
funds generated have made it necessary for an UCB to have a large
number of depositors and borrowers. If all borrowers become members it
would place a considerable strain on the administrative requirements
attached to the rights of members to elect the Board of Directors and to
participate in the governance of the bank. Therefore, the concept of
nominal membership has developed whereby such members do not enjoy
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the essential rights of membership to participate in the governance of the
bank. This development also weakens the cooperative character of the
bank and, therefore, it becomes necessary to restrict the extent of nominal
membership.
16. To protect the interests of the depositors it is necessary to ensure that:-
i. only those banks are licensed which are financially sound and
efficiently managed;
ii. there are systems in place to identify, at an early stage, incipient signs
of weakness in the bank;
iii. timely remedial action is taken so that a weak bank is not allowed to
become a sick bank; and
iv. Sickness in a bank is not allowed to progress beyond the stage where
it would prejudice the interests of the depositors.
17. At the inception, financial soundness of the bank can be ensured by
adequate entry point norms. These norms have to be evolved taking into
account relevant criteria like the location of the bank and the area of its
operation. Entry point norms can also be used as an instrument to
encourage the growth of such banks in areas where greater need exists
and to discourage their growth in areas where such a need is not
perceived. Efficient management of the bank could also be ensured by
initially specifying other non-financial criteria like the composition of the
board of directors, the suitability of the promoters and the adequacy of the
proposed management.
18. The systems to identify, at an early stage, incipient signs of weaknessrequire:-
i. reliability and adequacy of the financial information periodically
produced by the bank;
ii. an independent and efficient audit;
iii. periodic and adequate inspection by the regulatory authority; and
iv. A set of tools by which the financial strength of the bank can be
measured.
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19. It is, therefore, necessary that the annual financial statements of UCBs
are, in terms of their context and disclosure, comparable, as far as
possible, with the financial statements of commercial banks and that they
are prepared with the same discipline as regards provisioning and
valuation norms. It is also necessary that these financial statements are
subjected to audit by independent external auditors in exactly the same
manner as the financial statements of commercial banks are subjected to
audit. UCBs also need to be inspected by the regulatory authority in
exactly the same way as commercial banks are inspected and, in so far as
off-sight inspection is concerned, they must be required to furnish to the
regulatory authority the same information as is required from commercial
banks.
20. Finally, the tools by which the financial soundness of commercial banks is
measured must also be made applicable to UCBs. These would includes:
i. capital adequacy norms
ii. permissible limits of non-performing assets
iii. exposure limits
iv. Avoidance of interest rate and maturity mis-matches and the like.
21. In the case of commercial banks, the regulatory authority i.e. the RBI has
a number of options by virtue of the powers conferred on the RBI by the
Banking Regulation Act, 1949 to adequately monitor performance, control
the development of sickness and take remedial action.
These include:
i. The power to give directions to the bank (Section 35A);
ii. The need for RBI approval for appointment or re-appointment or
termination of appointment of the Chairman, Managing or Whole-time
Director, Manager or Chief Executive Officer (Section 35B);
iii. The power to caution or prohibit a banking company from entering into
any particular transaction or class of transactions, to appoint an
observer on the Board of Directors and to require the banking
company to make desired changes in the management (Section 36);
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iv. The power to remove managerial and other personnel and to appoint
additional directors (Part II - A),
The power to acquire undertakings of banking companies in certain
cases (Part II- ), and
v. The power to ask the High Court to order suspension of the business
of the banking company or its winding up or to ask the Government of
India for an order for reconstitution or amalgamation of the banking
company (Part III).
22. These options provide the RBI with the tools, whereby, after weakness in
a banking company is detected, it can take timely action to prevent a weak
bank becoming sick. Unfortunately Sections 35B, 36 (in so far as it relates
to changes in management) and Parts II-A, II-C and the relevant clauses
of Part III have been made inapplicable to urban cooperative banks.
Therefore, the tools available to the RBI to rehabilitate weak UCBs are
severely restricted.
23.However, RBIs obligation to ensure that sickness in an UCB is not
allowed to spread beyond the point at which the interests of the depositors
are not prejudiced, remains. If, therefore, RBI is not able orwillingto stop
the urban cooperative bank from carrying on banking business when it has
become sick, it becomes equally incumbent on the RBI to provide that a
scheme is formulated which ensures that any further sickness does not
prejudice the interests of the depositors.
24. Urban cooperative banks form a significant segment of the financial
system both in terms of their number and also their share in the totaldeposits of the banking system. Continued weakness or failure of a
significant number of urban cooperative banks reflect adversely on the
financial system as a whole. Therefore, RBI has a responsibility to ensure
that the UCB sector functions in a healthy manner.
25. As pointed out by the Marathe Committee, with greater liberalisation of the
commercial banking sector, the urban cooperative banking sector will
need to operate in a more competitive environment. It is, therefore,
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necessary that it has a reasonable ground level treatment and is not
saddled with irksome restrictions regarding its operations.
26. Perhaps the most significant factor which adversely affects the
performance of urban cooperative banks and which prevents timely and
adequate remedial action to prevent sickness is the dual control over the
urban cooperative banking sector. The Committee is convinced that
unless the dual control, is replaced by unitary control, it will not be
possible for a healthy urban cooperative banking sector to subsist. This
unitary control must recognize that whereas the cooperative character of
UCBs may be controlled by the Registrar of Cooperative Societies, its
banking functions must necessarily be under the sole control of the RBI.
27. It is equally important to recognize that an UCB can function effectively in
a competitive environment only if it has freedom to operate and is allowed
to carry on all the activities which are permissible to a commercial bank.
The forms of business in which banking companies may engage are spelt
out in Section 6 of the Banking Regulation Act. The judicious exercise of
these powers is controlled by the RBI through its power to give directions
(Section 35A) and its power to caution or prohibit a banking company from
entering into any particular transaction or class of transactions (Section
36). All these sections are equally applicable to an UCB. Subject to the
normal regulatory safeguards, an UCB must be allowed to operate in all
lines of business available to a commercial bank and must be given such
freedom in its operating practices as is necessary, so long as it does not
dilute the essential cooperative character of the bank.
28. In its interaction with a cross section of the representatives of State
Governments, the urban cooperative banking sector, and eminent
cooperators connected with urban banking movement, the Committee
dwelt on certain operational and regulatory issues raised by these
participants which are strictly not within the realm of Terms Of Reference
of this Committee but which have a considerable bearing on the Terms Of
Reference and healthy functioning of UCBs. These issues are addressed
by the Committee in the Chapter titled Other Related Issues.
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29. The Committee has more or less followed the methodology adopted by
the earlier two Committees. It has devised a comprehensive questionnaire
on each of the Terms Of Reference to elicit the views of select urban
banks, select commercial banks, Indian Banks Association, Government
of India, State governments, State and National Federations of Urban
Cooperative Banks, eminent cooperators and people interested in the
UCB sector.
30. The Committee also had extensive interaction with a cross section of the
above groups at Ahmadabad, Bangalore, Bhopal, Calcutta, Chennai,
Delhi, Guwahati, Hyderabad, Mumbai and Pune to have a grass root feel
on the Terms Of Reference and the region specific issues concerning
urban cooperative banks. These interface sessions have provided
invaluable inputs to the Committee. The Committee also had an
opportunity, in these interface sessions, to gauge the efficacy of the
existing regulatory dispensation and irritants therein. Besides, the
responses to questionnaire and interface sessions, the Committee has
also relied on reports of various Expert Committees and circulars issued
by RBI.
31. With a view to have a focused study on the Terms of Reference, the
Committee constituted three Working Groups to separately examine the
issues pertaining to Terms of Reference. After an indepth examination of
existing policies, these Working Groups have submitted their approach
papers to the Committee. The approach papers were deliberated at length
in the meetings of the Committee and, thereafter, it arrived at its
recommendations set out in this Report.
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PUBLIC SECTOR AND PRIVATE SECTOR BANKING
A private sector is an economy is made up of all businesses and firms owned
by ordinary members of the general public. It also consist of all the private
households in which people live, whereas, public sector is an economy is
owned and controlled by a government. It consist of government businesses
and firms ,and goods and services provided by the government, such as the
national health service, state education, jobs, roads, public parks and law and
order.
Private Sector are generally small business organizations run by private
individuals or groups (not shareholders) and are not listed in the StockExchange. Private companies are also unregulated by a federal authority.
The Public Sector are companies owned by shareholders and available for
public purchase through the stock exchange. Public companies are regulated
by a federal exchange commission, but are available for purchase by foreign
investors - such as China's current shares in GM.
For instance; A public company can become private by having ALL shares inits Stock Exchange purchased by an individual, a small group of investors, or
another company that is privately held.
PUBLIC SECTOR BANKING
Among the Public Sector Banks in India, United Bank of India is one of the
14 major banks which were nationalized on July 19, 1969. Its
predecessor, in the Public Sector Banks, the United Bank of India Ltd.,was formed in 1950 with the amalgamation of four banks viz. Comilla
Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. (1918), Comilla
Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932).
Oriental Bank of Commerce (OBC), a Government of India Undertaking
offers Domestic, NRI and Commercial banking services. OBC is
implementing a GRAMEEN PROJECT in Dehradun District (UP) and
Hanumangarh District (Rajasthan) disbursing small loans. This Public
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Sector Bank India has implemented 14 point action plan for strengthening
of credit delivery to women and has designated 5 branches as specialized
branches for women entrepreneurs.
The following are the list of Public Sector Banks in India.
Allahabad Bank
Andhra Bank
Bank of Baroda
Bank of India
Bank of Maharashtra
Canara Bank
Central Bank of India
Corporation Bank
Dena Bank
IDBI Bank
Indian Bank
Indian Overseas Bank
Oriental Bank of Commerce
Punjab & Sind Bank Punjab National Bank
Syndicate Bank
UCO Bank
Union Bank of India
United Bank of India
Vijaya Bank
List of State Bank of India and its subsidiary, a Public Sector Banks
State Bank of India
o State Bank of Bikaner & Jaipur
o State Bank of Hyderabad
o State Bank of Indore
o State Bank of Mysore
o State Bank of Saurastrao State Bank of Travancore
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PRIVATE SECTOR BANKING
Private banking in India was practiced since the beginning of banking
system in India. The first private bank in India to be set up in Private
Sector Banks in India was IndusInd Bank. It is one of the fastest growing
Bank Private Sector Banks in India. IDBI ranks the length largest
development bank in the world as Private Banks in India and has
promoted a world class institutions in India.
The first Private Bank in India to receive an in principle approval from the
Reserve Bank of India was Housing Development Finance Corporation
Limited, to set up a bank in the private sector banks in India as part of the
RBI's liberalisation of the Indian Banking Industry. It was incorporated in
August 1994 as HDFC Bank Limited with registered office in Mumbai and
commenced operations as Scheduled Commercial Bank in January 1995.
ING Vysya, yet another Private Bank of India was incorporated in the year
1930. Bangalore has a pride of place for having the first branch inception
in the year 1934. With successive years of patronage and constantly
setting new standards in banking, ING Vysya Bank has many credits to itsaccount.
List of Private Banks in India
Bank of Punjab
Bank of Rajasthan
Catholic Syrian Bank
Centurion Bank
City Union Bank
Dhanalakshmi Bank
Development Credit Bank
Federal Bank
HDFC Bank
ICICI Bank
IndusInd Bank
ING Vysya Bank
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Banks like HDFC, standard chartered, ICICI, and Citibank now bring your
Bank Account and Debit card to your fingertips. With Mobile commerce, you
can perform a wide range of query-based transactions from your Mobile
Phone, without even making a call.
HDFC bank one of India's leading financial institutions, offering complete
financial solutions that encompass every sphere of life. From commercial
banking, to stock broking, to mutual funds, to life insurance, to investment
banking, the group caters to the financial needs of individuals and corporate.
The group has a net worth of over Rs. 2,500 crore, employs around 6,700
people in its various businesses and has a distribution network of branches,
franchisees, representative offices and satellite offices across 250 cities and
towns in India and offices in New York, London, Dubai and Mauritius. The
Group services over 1.6 million customer accounts.
CREATING BANKING HISTORY:
Established in 1984, The HDFC bank group has long been one of India's
most reputed financial organizations. In February 2003, HDFC bank Finance
Ltd, the group's flagship company was given the license to carry on banking
business by the Reserve Bank of India (RBI). This approval creates banking
history since HDFC bank Finance Ltd. is the first company in India to convert
to a bank.
THE COMPLETE BANK:
At HDFC Bank, we address the entire spectrum of financial needs for
individuals and corporate. From Retail Finance to Equities, Mutual Funds to
Life Insurance and Investment Banking, we have the products, the
experience, the infrastructure and most importantly the commitment to deliver
pragmatic, end-to-end solutions that really work.
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BUSINESS
HDFC Bank Ltd
HDFC Bank Ltd is a one stop shop for all banking needs. The bank offers
personal finance solutions of every kind from savings accounts to credit
cards, distribution of mutual funds to life insurance products. HDFC Bank
offers transaction banking, operates lending verticals, manages IPOs and
provides working capital loans. HDFC bankhas one of the largest and most
respected Wealth Management teams in India, providing the widest range of
solutions to high net worth individuals, entrepreneurs, business families and
employed professionals.
HDFC bankOld Mutual Life Insurance Ltd
HDFC bankOld Mutual Life Insurance Ltd is a 74:26 joint venture between
HDFC Bank Ltd., its affiliates and Old Mutual plc. A Company that combines
its international strengths and local advantages to offer its customers a wide
range of innovative life insurance products, helping them takes important
financial decisions at every stage in life and stays financially independent.
The company covers over 3 million lives and is one of the fastest growing
insurance companies in India.
HDFC bankSecurities Ltd
HDFC bankSecurities is one of the largest broking houses in India with a wide
geographical reach.
HDFC banksecurities operations include stock broking and distribution of
various financial products including private and Secondry placement of debt,
equity and mutual funds.
HDFC bankSecurities operate in five main areas of business:
Stock Broking (retail and institutional)
Depository Services
Portfolio Management Services
Distribution of Mutual Funds
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BANK'S VISION AND MISSION
The Bank has codified its ethos, values, culture and aspirations in the
following Vision and Mission statements:
Vision:
To be a values driven modern bank aspiring for excellence in customer
service, perpetually enhancing shareholders value and contributing to the
economic development of society.
Mission:
To continue to be a premier bank of Rajasthan with all India presence,
committed to empower its personnel for providing excellent, personalised and
quality customer service by adoption of modern technology, achieving
sustained and profitable growth in business thereby increasing shareholders
value and contributing to the welfare of the society.
SENIOR MANAGEMENT
Mr. Uday S. Kotak
Executive Vice Chairman and Managing Director
Mr. Uday HDFC bankis the Executive Vice-Chairman and Managing Director
of the Bank, and its principal founder and promoter. Mr. HDFC bankis an
alumnus of Jamnalal Bajaj Institute of Management Studies.
In 1985, when he was still in his early twenties, Mr. HDFC bankthought of
setting up a bank when private Indian banks were not even seen in the game.
First HDFC bankCapital Management Finance Ltd (which later became HDFC
bankFinance Ltd), and then with HDFC bankFinance Ltd, HDFC bankbecame
the first non-banking finance company in India's corporate history to be
converted into a bank. Over the years, HDFC bankGroup grew into several
areas like stock broking and investment banking to car finance, life insurance
and mutual funds.
Among the many awards to Mr Kotak's credit are the CNBC TV18 Innovator
of the Year Award in 2006 and the Ernst & Young Entrepreneur of the Year
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Award in 2003. He was featured as one of the Global Leaders for Tomorrow
at the World Economic Forum's annual meet at Davos in 1996. He was also
featured among the Top Financial Leaders for the 21st Century by Euro
money magazine. He was named as CNBC TV18 India Business Leader of
the Year 2008 and as the most valued CEO by business world in 2010.
Mr. C Jayaram
Joint Managing Director
Mr. C. Jayaram, is a Joint Managing Director of the Bank and is currently in
charge of the Wealth Management Business of the HDFC bankGroup. An
alumnus of IIM Kolkata, he has been with the HDFC bankGroup since 1990
and member of the HDFC bankboard in October 1999. He also oversees the
international subsidiaries and the alternate asset management business of
the group. He is the Director of the Financial Planning Standards Board,
India. He has varied experience of over 25 years in many areas of finance
and business, has built numerous businesses for the Group and was CEO of
HDFC bankSecurities Ltd. An avid player and follower of tennis, he also has a
keen interest in psychology.
Mr. Dipak Gupta
Joint Managing Director
An electronics engineer and an alumnus of IIM Ahmadabad, Mr. Gupta has
been with the HDFC bankGroup since 1992 and joined the board in October
1999.
He heads commercial banking, retail asset businesses and looks after group
HR function. Early on, he headed the finance function and was instrumental inthe joint venture between HDFC bankand Ford Credit International. He was
the first CEO of the resulting entity, HDFC bankPrimus Ltd.
AWARDS
At HDFC bankGroup we take a client-centric view and constantly innovate to
provide you with the best of services and infrastructure. We have regularly
received accolades that stand testimony to our success in this endeavor.
Some of our recent achievements are:
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Banking
ICAI Award
Excellence in Financial Reporting under Category 1 - Banking Sector
for the year ending 31st March, 2010
Asiamoney
Best Local Cash Management Bank 2010
IDG India
HDFC bank won the CIO 100 'The Agile 100' award 2010
IDRBT
Banking Technology Excellence Awards Best Bank Award in IT
Framework and Governance Among Other Banks' - 2009
Banking Technology Award for IT Governance and Value Delivery,
2008
IR Global Rankings
Best Corporate Governance Practices - Ranked among the top 5
companies in Asia Pacific, 2009
Finance Asia
Best Private Bank in India, for Wealth Management business, 2009
HDFC bank Royal Signature Credit Card
Was chosen "Product of the Year" in a survey conducted by Nielsen in
2009
IBA Banking Technology Awards
Best Customer Relationship Achievement - Winner 2008 & 2009
Best overall winner, 2007
Best IT Team of the Year, 4 years in a row from 2006 to 2009
Best IT Security Policies & Practices, 2007
Euro money
Best Private Banking Services (overall), 2009
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Investment Bank Best Investment Bank in India, 2010
Best Equity House in India, 2010
Best Broker in India, 2010
Asia money
Best Domestic Equity House, 2010
Best Local Brokerage in the Asia money Brokers Poll 2010
Global Finance
Best Investment Bank in India, 2010
Euro money Real Estate Poll
Best Bank for Equity Finance in India, 2010
Asset Asian Awards
Best Domestic Investment Bank, 2010
Finance Asia Country Awards for Achievement
Best Investment Bank in India, 2006, 2007, 2008, 2009 & 2010
Best Equity House in India, 2008 & 2010
Asia money Best Domestic Bank Awards
Best Domestic Equity House, 2008, 2009 & 2010
IFR Asia
India Equity House of the Year, 2008
Global Finance
Best Investment Bank in India, 2008, 2009 & 2010
Asset Asian Awards
Best Domestic Investment Bank, 2006, 2007, 2008 & 2009
CORPORATE RESPONSIBILITY
Community investment and development HDFC bankviews Corporate Social
Responsibility as an investment in society and in its own future. HDFC
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EDGE SAVINGS ACCOUNT:HDFC Banks Edge Savings Account is acomplete financial package customized to suit individual banking needs.
Its constant endeavor is to enable regular financial transactions through
online platform so that most of payments can be made directly through
your account or card.Features & Benefits
Wide ATM access through the HDFC Bank Debit Card
One can walk into any HDFC BANKor HDFC Bank ATMs to withdraw
cash or enquire balance at no extra charge!
Multiple Access Channels Access
An account through phone, mobile phone or internet to get information
about account balance or track transactions. One can even transfer funds
through Phone Banking or Net Banking.
Financial payments facilitated through the savings account
Use the free Payment Gateway to make online payments for utility bills,
credit cards online trading of shares or even online shopping.
Quick and easy funds transfer
Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque
book so that money from account is received by the beneficiary in the
fastest possible time.
Free investment account
One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting
your Bank Account. Besides this you get a consolidated view of all your
mutual fund investments across schemes with updated returns status,
latest NAV information and research reports.
Attractive returns
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Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into your
account to meet fund requirements when your withdrawals exceed the
balance available in your account, thereby providing you maximum
liquidity.
PRO SAVINGS ACCOUNT
HDFC Banks Pro Savings Account is an account packed with powerful
features to provide a superior banking experience at a very comfortable
balance requirement. They provide a relationship manager who will
specifically take care of banking and investment needs.
Features & Benefits
Free ATM access all domestic VISA ATM network
Walk into any VISA ATM in India to check balance or withdraw cash
absolutely free. no longer have to worry about locating your Bank or
Partner Bank ATM Use the first VISA ATM that you spot, for cash
withdrawal or balance enquiry transactions.
Multiple access channels
Access your account through phone, mobile phone or internet to get
information on your account balance or track your transactions. You can
even transfer funds through Phone Banking or Net Banking.
Free investment account
One can open an investment account, and use the Net Banking facility to
purchase/redeem mutual funds online while directly debiting / crediting
bank account. Besides this get a consolidated view of all the mutual fund
investments across schemes with updated returns status, latest NAV
information and research reports.
Financial payments facilitated through the savings account
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Use our free Payment Gateway to make online payments for utility bills,
credit cards, online trading of shares or even online shopping.
Quick and easy funds transfer
Quick funds transfer to a third party account with another Bank is available
across 15 locations through Net Banking. Also get a multi-city cheque
book so that money from account is received by the beneficiary in the
fastest possible time
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into your
account to meet fund requirements when your withdrawals exceed the
balance available in your account, thereby providing you maximum
liquidity.
Dedicated relationship manager
You get a one point contact for all your banking related queries and
transactions. Your relationship manager will also help you with financial
planning and sound investment decisions.
Free banking transactions
You can issue demand drafts or send cheques for collection on branch
locations without any charge to your account.
ACE SAVINGS ACOUNT
HDFC Bank's Ace Savings Account has been designed as a gateway to a
world of financial benefits and privileged banking transactions. The
account carries benefits ranging from personal investment advisory
services to concierge services to free banking transactions. Onewill find
that this package of services and privileges is unmatched by any other
savings account in the market.
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Features & Benefits
Free access at all domestic and international VISA ATMs
No longer have to worry about locating your Bank or Partner Bank ATM -
Use the first VISA ATM that you spot, for free cash withdrawal or balance
enquiry transactions. So walk into any VISA ATM in India or abroad to
withdraw cash or for balance enquiry.
Multiple access channels
Access the account anytime through land line, mobile phone or internet to
get information on account balance or track transactions. One can even
transfer funds through Phone Banking or Net Banking.
Financial payments facilitated through the savings account
Use the free HDFC bankPayment Gateway to make online payments for
utility bills, credit cards, online trading of shares or even online shopping.
All this at the click of a mouse!
Quick and easy funds transfer
Transfer funds easily and with speed, to a beneficiary account at anotherbank. One can avail of this facility by walking into any of branches or by
simple logging on to Net Banking. Also get a free multi-city cheque book
so that money from your account is transferred to the beneficiary's
account at any of branch locations, in the fastest possible time.
Free banking transactions
One can issue demand drafts or send cheques for collection at all
branches for no extra charge.
Attractive returns
Earn better returns in your savings account, with our 2-Way Sweep facility
that automatically sweeps out idle funds, above a threshold, from your
account into Term Deposits. These Term Deposits sweep back into
account to meet fund requirements when withdrawals exceed the balance
available in the account, thereby providing maximum liquidity.
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CURRENT ACCOUNT
HDFC Bank offers unparalleled advantages with its three Current Account
offerings. Whether small/ mid size business or an enterprise spread
across multiple locations in the country, would find a Current Account
that's just designed for you. These Current accounts offer attractive
returns along with personalized banking services at three convenient
average quarterly balances(AQB)levels of Rs. 25000 (HDFC BANKEDGE
SAVINGS ACCOUNT),Rs. 50000 (HDFC BANKPRO SAVINGS
ACCOUNT) and at Rs250000(HDFC BANKACE SAVINGS
ACCOUNT).The average quarterly balance levels as well the
corresponding services and benefits try to ensure the various customer
needs and requirements. With features ranging from Free DDs, Free
Cheque Collection, Free At -Par Cheque facility to Free Trading Account &
free Demat Account, and more!
Thus the three account opening options in savings account are as
mentioned above:
1. Edge Current AccountIn need of a well equipped bank account to keep pace in all the
business endeavors. They offer the HDFC bank Edge Current
Account, armed with HDFC bank2-Way Sweep and the entire gamut of
Banking Privileges, providing that extra edge to get ahead. The feature
rich HDFC bankEdge Current Account is the ideal way to make money
work harder.
Features & Benefits
Multi City Banking
Current account/s with HDFC Bank will be recognized in every other
branch. One can just walk into a HDFC Bank branch in any of our
branches across country to satisfy all the banking needs.
2. 2 - Way Sweep: Term Deposit linked Current Account
HDFC bank2-Way Sweep ensures that money never stops workingfor you. Daily balances, above a threshold level, in Current Account
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are automatically swept out into Term Deposits (TD). This 'swept
out amount' is brought back into account to meet fund requirements
when withdrawals exceed the balance available in the account (or
when the account balance goes below the specified threshold
level.) With HDFC bank2-Way Sweep you enjoy the twin
advantages of attractive returns & maximum liquidity.
Free Demand Drafts and Pay Orders
Enjoy the benefit of our free Demand Drafts, payable at HDFC Bank
Branch location in India.
At-par ChequesGet free At-par Cheques that are treated as 'local clearing' cheques
across all branch locations. All these at nominal costs.
Cheque Collection
All Outstation cheques, drawn on any of branch locations, are collected 'at
nominal charge' for you. The strong network of correspondent banks
enables us to collect cheques from 1600 locations across India at faster
speed and minimal cost.
Mobile Banking and Alerts
Our Mobile Banking & Alerts service enables to access bank account on
Mobile Phone. One can access all your standing instructions (SI), any
large credits or debits, available balance, balance below AQB, any SI
failure and SIs successfully executed will be intimated to you via SMS
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AUTO LOAN
As per the various Auto Loan reviews, there is a general format observed in
the way automobile finance products are designed. This is a loan scheme thatis designed specifically to enable borrowers to acquire their own vehicles.
Auto Loan is usually secured, with either a charge on the valuation of the vehicle
to be acquired or collateral, in the form of securities owned.
It is usually in the form of a term loan.
According to many Auto Loan reviews, since the easy availability of loans, there
has been 60% increase in the sale of automobiles, through Auto Loan options.
The term, auto loan is different from the term car loan and encompasses allkinds of vehicles, such as two-wheelers, used and new cars etc.
The two-wheeler segment has a smaller part in the market share of auto loans,
as the cost of acquisition of vehicles is less.
All FIs offering loans have a screening procedure or auto loan eligibility norms
that varies with each bank.
Auto Loan Interest Rates:
Many banks offer you automobile loans at auto loan rates that vary between 9%
per annum to about 15% per annum. This bunch includes all popular banks,
namely:
a) HDFC Bank: 12.75% p.a.
b) ICICI Bank: 14.25% p.a.
c) Dena Bank: 11% p.a.
d) Punjab and Sind Bank: 12.75% p.a.e) Dhanalakshmi Bank: 13.5% p.a.
The auto loan rates are determined as per the base rate that is set according to
the benchmark rate by the Reserve Bank of India.
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Auto Loan Eligibility Norms:
Both Auto Loan reviews and official websites of the banks state that following
are persons and institutions eligible for loan at the auto loan interest rates, as
per auto loan eligibility norms:
Salaried employees of PSUs, government bodies (state/central), reputed
companies, firms, educational institutions, reputed private sector
companies
Above should be permanent employees
Non-salaried class:
a) Self-employed, such as businessmen and entrepreneurs.
b) Professionals, like doctors, MBAs, engineers etc
c) Agriculturists
Retired persons: who should preferably have their pension account with
the concerned bank.
Many banks even have differential auto loan rates of interest as per the
professional profile of the prospective borrower.
Quantum of Auto Loan:
Permissible quantum of loan to purchase automobiles is determined by
the earning and the repayment capacity of the borrower, in case of
individuals.
In case of institutional borrowers, the determinant is the amount of
revenue earned in the past couple of financial years.
Thus permissible quantum of loan is generally equal to 2 or 3 times of the
net annual income of borrower.
Above amount is in the range of Rs.5lacs to over Rs.25 lacs.
Above amount is subject to a margin that falls in the range of 5% to 25%
on loan amount.
According to many Auto Loan reviews, some banks, such as HDFC Bank
do not consider any margin before disbursement of loan.
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HDFC BANK HOME LOAN INTEREST RATE:
HDFC Bank Home loan rate offered is variable and fixed.
HDFC Bank Home loan interest rate is based on base rate system. HDFC
Bank Home loan rate is based on 8.50% base rate.
HDFC Bank Home loan interest rate offer reduced interest rates during the
intervening period. HDFC Bank Home loan rate which offers this facility is by
opting for adjustable interest rates.
HDFC Bank Home loan rate keep changing periodically. One can get updated
information on HDFC Bank Home loan rate from the bank.
HDFC Bank Home loan interest rate is attractive even for NRIs. HDFC Bank
Home loan interest rate are similar for home loan as well as home
improvement loan.
HDFC BANK HOME LOAN ELIGIBILITY:
HDFC bank Home Loan Eligibility Criteria For Salaried People:
As per the HDFC bank home loan review the eligibility depends on the
persons repayment capacity. HDFC bank home loan applicant should have
salary certificate. As per the HDFC bank home loan eligibility a salaried
customer should present his 6 months bank statement.
HDFC bank Home Loan Eligibility Criteria For Self Employed:
HDFC bank home loan review shows the self employed person has to show
proof of income. HDFC bank home loan self employed applicant needs to
show audited balance sheet and PL account of 3 years. As per the HDFC
bank home loan eligibility an applicant should have 3 years of minimum work
experience.
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HDFC bank Home Loan Documents:
HDFC bank home loan review shows that one has to submit
Identity proof
Address proof
Filled application form
Two photographs
HDFC bank home loan Documents for salaried
Form 16
Bank Statement
Latest Salary slip
HDFC bank home loan Documents for self employed
IT papers
Bank Statement
Proof of Business existence
Profit and Loss Account/ Balance Sheet
Procedure and Options to Apply For the Loan:
The customer needs to submit duly filled form and attach related documents
and submit it to the bank authorities for processing. The form is available at
the branches or can be downloaded from the official website of the bank.
Maximum and Minimum Tenor of the Loan:
As per the HDFC bank home loan review one can get a maximum repayment
period of 10 years.
What would be the repayment options/facilities?
The customer can pay back his loan in equated monthly installments.
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RESRACH MEHTDOLOGY
RESEARCH DESIGN
STUDY
DATA COLLECTION OBJECTIVES OF
THE METHOD
SOURCE OF DATA
SAMPLING CONCEPTS
SAMPLE DESIGN
SCOPE OF STUDY
LIMITATIONS
RESEARCH METHODOLOGY
Survey research is the systematic gathering of information from respondents
for the purpose of understanding and/or predicting some aspects of the
behaviours of the population of interest. It is the most common method of
collecting primary data for marketing decisions. Survey can provide data on
attitudes, feelings, beliefs, past and intended behaviours, knowledge,
ownership, personal characteristics and other descriptive items.
Survey research is concerned with administration of questionnaires
(interviewing). The survey research must be concerned with sampling,
questionnaire design, questionnaire administration and data analysis. The
administration of questionnaire to an individual or group of individuals is
called an interview. A questionnaire is simply a formalized set of questions for
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eliciting information. As such, its function is measurement and it represents
the most common form of measurement in marketing research.
The report has been prepared on the basis of information collected from
different sources. In order to achieve the objective of the project proper
research method was applied. After giving through brain storming session,
objectives were selected and the set on the base of these objectives, A
questionnaire was designed major emphasis of which was gathering new
ideas or insight so as to determine and bind out solution to the problems.
RESEARCH DESIGN
This study is a mix of explorative and formal methodologies adopting
monitoring and observing to study the customer satisfaction for loan
preference at HDFC Bank to elicit responses from customers. This is a cross
sectional study.
The study also aims at findings out the customer satisfaction level for loan of
HDFC Bank. For the customer satisfaction study a questionnaire was
formulated containing 23 questions which were sent out for response mainly
through personal interviews of customers. Results of this step formed the
basis of the recommendations given to the company.
OBJECTIVES OF THE STUDY
This study aims to examine research that sought to identify whether the
customers are satisfied or not by products and services offered by bank.
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To give an insight into Field project to bridge gap between theory and
practical.
The survey aims at finding out various dimensions and factors which form
components of grievance handling of customers.
To provide suggestion based on the survey, which can be incorporated by
the organization.
To study Company image of HDFC Bank and Survey research to
measure customer satisfaction towards HDFC Bank.
To understand customer attitude for loan towards HDFC Bank.
To measure customer satisfaction of HDFC Bank.
To know the market share of HDFC bank.
DATA COLLECTION METHOD
Researcher instruments is the tool by which the researcher can do research
on specific problems or objective. The most popular researcher instrument for
collection data is Questionnaire for a particular investigation. It is simple for
a moiled set of questions presented to respondents for their answers. Due to
this flexibility, it is most common instrument used to collect the primary data.
During the pre- testing of questionnaire, I seen the reaction of respondents
and suggestions required to make change in research instrument.
The questionnaire contains three types of questions.
1. OPEN-ENDED QUESTIONS: - It is helpful in knowing what is uppermost
in the mind of the respondents. It gives complete freedom to the
respondent.
2. DICHOTOMOUS QUESTIONS:- It has only two answers in form yes or
no, true or false, use or do not use. So the respondent is offered two
or more choice.
3. MULTIPLE-CHOICE QUESTION:-In this, the respondent is offered two or
more choice.
SOURCE OF DATA
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The report has been prepared as per the information obtained from two
sources. They are:
Primary data
Secondary data1. PRIMARY DATA:
The primary data is that which details we collect first time from the market
and also used first time in the research. To collect the primary data
structured non disguise questionnaire is prepared. Primary Data was very
crucial to collect so as to know various past & present consumer views
about bikes/scooter and to calculate the market share of this brand in
regards to other brands. Fresh primary data was collected by taking direct
filling of a questionnaire from customer which involved face to face, all the
Suzuki customer who visited the dealership showroom for the service of
their bikes/scooters were questioned in order to find out the behavior of
customer.
2. SECONDARY DATA:
Secondary dataare those which has been collected by some one else andwhich already have been passed through statistical process. When the
secondary data are sufficient, the researcher has to be satisfied with the
primary sources of data. Secondary data can be used as bases for
comparison with primary data have been collected by questionnaire.
Secondary data has been taken from internet, newspaper, magazines and
companies web sites.
SAMPLING CONCEPTS
What is a sample?
A sample is a finite part of a statistical population whose properties are
studied to gain information about the whole (Webster 1985). When dealing
with the people it can be defined as a set of respondents (people) selected
from a larger population for the purpose of a survey.
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A population is a group of individuals persons, objects, or items from which
samples are taken for measurement for example a population of presidents or
professors, books or students.
What is Sampling
Sampling is an act, process or techniques of selecting a suitable sample or s
representative part of a population for the purpose of determining parameters
or characteristics of the whole population.
What is the purpose of Sampling
To draw conclusions about populations from sample, we must use inferential
statistics, which enables us to determine a populations characteristics by
directly observing only a portion ( or sample) of the population. We obtain a
sample rather than a complete enumeration ( a census) of the population for
many reasons. Obviously, it is cheaper to observe a part rather than the
whole, but we should prepare ourselves to cope with the dangers of using
samples. In this tutorial, we wil investigate various types of sampling
procedures. Some are better than others but all may yield samples that areinaccurate and unreliable. We will learn how to minimize these dangers, but
some potential error is the price we must pay for the convenience and
savings the samples provide.
There would be no need for statistical theory if a census rather than a sample
was always used to obtain information about populations. But a census may
not be practical and is almost never economical. There are six main reasons
for sampling instead of doing a census. These are:- Economy-timeliness-the
large size of many populations- inaccessibility of some of the population-
destructiveness of the observation- accuracy.
The economic advantage of using a sample in research obviously, taking a
sample requires fewer resources than census. For eg. Let us assume that
you are one of the very curious students around. You have heard so much
about the famous Cornell and now that you ate there, you want to hear form
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insiders. You want to know what all students at Cornell think about the quality
of teaching they receive, you should know what all the students are different
so they are likely to have different perceptions and you believe you must get
all these perceptions so you decide because you want an in-depth view of
every student, you will conduct personal interviews with each of them and you
want results in 20 days only, let us assume this particular time you are doing
your research Cornell has only 20,000 students and those who are helping
are so fast at interviewing art that together you can interview at least 10
students per person per day in addition to your 18 credit hrs of course work.
You will require 100 research assistants for 20 days and since you are paying
them minimum wage of $ 5.00 per hour for ten hrs ($50.00) per person per
day, you will require $10000.00 just to complete the interviews, analysis will
just be possible. You may decide to hire additional assistants to help with the
analysis at another $10000.00 and so on assuming you have that amount on
your account.
Selecting the Sample
The preceding section has covered the most common problems associatedwith the statistical studies. The desirability of a sampling procedure depends
on both its vulnerability to error and its cost. However, economy and reliability
are competing ends, because, to reduce error often requires an increased
expenditure of resources. Of the two types of statistical errors, only sampling
error can be controlled by exercising care in determining the method for
choosing the sample. The previous section has shown that sampling section
may be due to either bias or chance. The chance component ( sometimes
called random error) exists no matter how carefully the selection procedures
are implemented, and the only way to minimize chance sampling errors is to
select a sufficiency large sample (sample size is discussed towards the end
of his tutorial). Sampling bias on the other hand may be minimized by the
wise choice of a sampling procedure.
Types of Samples
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There are three primary kinds of samples: the convenience, the judgement
sample, and the random sample. They differ in the manner in which the
elementary units are chosen.
The convenient sample
The convenience sample results when the more convenient elementary units
are chosen from a population for observation.
The judgment sample
The judgment sample is obtained according to the discretion of someone who
is familiar with the relevant characteristics of the population.
The random sample
This may be the most important type of sample. A random sample allows a
known probability that each elementary unit will be chosen. For this reason, it
is sometimes referred to as a probability sample. This is the type of sampling
that is used in lotteries and raffles. For eg. If u want to select 10 players
randomly from a population of 100, you can write their names, fold them up,
mix them thoroughly then pick ten. In case, every name had any equal
chance of being picked.
Types of Random Sample
It is obtained by choosing elementary units in search a way that each unit in
the population has an equal chance of being selected. A simple random
sample is free from sampling bias. However, using a random no. table tochoose the elementary units can be cumbersome. If the sample is to be
collected by a person untrained In statistics, then instructions may be
misinterpreted and selections may be improperly. Instead of using a least of
random numbers, data collections can be simplified by selecting say every
10th or 100th unit after the first unit has been chosen randomly as discussed
below. Such a procedure is called systematic random sampling.
A Systematic Random Sample
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Selecting one unit on a random basis and choosing additional elementary
units at evenly spaced intervals until the desired no. of units is obtained
obtains a systematic random sample. For eg. There are 100 students in your
class. You want a sample of 20 from these 100 and you have their names
listed on a piece of paper may be in an alphabetical order. If you choose to
use systematic random sampling, divide 100 by 20, you will get 5. Randomly
select any no. between 1 and 5. Suppose the number you have picked is 4 ,
that will be your starting number. So student number 4 has been selected.
From there you will select every 5th name until you reach the last one, number
one hundred. You will end up with 20 selected students.
A stratified sample: It is obtained by independently selecting a separate
simple random sample from each population stratum. A population can be
divided into different groups may be based on some characteristic or variable
like income of education. Like any body with ten years of education will be in
group A, between 10 and 20 group B and between 20 and 30 group C. These
groups are referred to as strata. You can then randomly select from each
stratum a given number of units which may be based on proportion like if
group A has 100 persons while group B has 50, and C has 30 you may
decide you will take 10% of each. So you end up with 10 from group A, 5 from
group B, and 3 from group C.
A cluster sample: It is obtained by selecting clusters from the population
on basis of simple random sampling. The sample comprises a census of each
random cluster selected. For example a cluster may be some thing like a
village a school , a state. So you decide all the elementary schools in NewYork state are clusters. You want 20 schools selected. You can use simple or
systematic random sampling to select the schools, and then every school
selected becomes a cluster. If u are interested is to interview teachers on
their opinion of some new program, which has been introduced, then all the
teachers in a cluster must be interviewed. Though very economical cluster
sampling is very susceptible to sampling bias. Like for the above case, you
are likely to get similar responses from teachers in one school due to the fact
that they interact with one another.
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Survey research is one of the most important areas of measurement areas of
measurement in applied research. The broad area of survey research
encompasses any measurement procedures that involve asking questions of
respondents. A survey can be anything forms a short paper and pencil
feedback form to an expensive one-on one in depth interview.
SAMPLE DESIGN:
Sampling is a process of obtaining. The information about the entire
population by examine a part of it .The effectiveness of the research depends
on the sample size selected for the survey purpose. For the customer
satisfaction study a sample of 50 persons was chosen from the HDFC Bank.
SAMPLING PLAN:
Data collected has been analyzed and interpreted by using simple percentage
method and finally the data is presented in graphs and charts.
SAMPLING FRAME:
Customers visiting bank for getting loan and depositing their cash or
withdrawal of cash.
SAMPLE SITE:-
The survey was conducted in Jodhpur city.
SAMPLING UNIT:-
It means Who is to be surveyed. Here target population is decided and it is
who are interested to purchase Scooter and sampling frame is developed so
that every one in the target population has known chance of being sampled.
So the survey is conducted particularly in jodhpur City.
SAMPLE SIZE:-
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For the purpose of proper survey, there is need of perfect research
instruments to find out sample size for more accurate result about buying
behavior of scooter. The sample size is 100 respondents.
SAMPLING METHOD :-
A Stratified random sample is one where the population is divided in to
mutually exhaustive strata or sub-group and then a simple random is selected
within each of strata on age groups, occupation etc. It may be noted that
stratification does not means absence of randomness. I use a simple random
sampling method.
SCOPE OF STUDY
The scope of the study is limited to the Jodhpur city. This study is aimed at
providing loan facility with an insight on the customer satisfaction pattern of
HDFC Bank as well as the customers response and awareness towards the
products and services of HDFC BANK it studies about the grievances
handling procedures , customers satisfaction. I had covered 50 customers of
the organization.
The data has been analyzed and presented in a simple and precise way on
the basis of which pertinent recommendations have been made to the
company to better the services, policies and strategies of the company in
India. Companies also want the Suggestion for improvement from
users of HDFC Bank & get Feedback from customer.
Limitations of the study
The research had the city constraint , as the location was limited so the
research could not be done on a wide scope.
The research had the sample size constraint, as the organizations
were not large in size so it has a narrow scope.
The research had the time constraint, as it had to be completed in a
month so much data could not be collected and analyzed.
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Analysis and data interpretation
Customers Review
1) Do you have any vehicle ?
a) car
b) two wheelerc) others
d) none
ANALYSIS:
The above pie chart shows that 30% of the customers have cars, 40% are
having two wheeler, 10% have others (i.e. no car no two wheeler) and rest
10% have no vehicle.
30%
40%
10%
10%
percentage
car two wheeler other none
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2) Reason for taking loan from HDFC Bank?
a) Faster processing
b) Interest rate
c) Brand image of the bank
d) Margin amount
ANALYSIS:
This pie states that 20% of the customers take loan from HDFC
Bank because it have faster processing.
40% customers statement is that it provides interest rates more as
compared to other banks.
30% customers states that it have good brand image.
10% of the customers states that it have margin amount
20%
40%
30%
10%
Percentage
faster processing Interest rate Brand image of the bank Margin amount
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3) How do you rate the interest rates charged by HDFC Bank?
a) Highly Satisfactory
b) Satisfactory
c) Averagely Satisfactory
d) Dissatisfactory
e) Highly Dissatisfactory
ANALYSIS
In the above pie chart 10% of the customers are highly satisfied
with interest rate of the bank.
60% are satisfied with interest rates
20% of the customers are averagely satisfied
10% of the customers are dissatisfied
10% of the customers are Highly dissatisfied
60%
20%
10%
10%
PERCENTAGEHighly satisfactory satisfactory averagely satisfactory dissatisfactory highly dissatisfactory
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4) How do you rate the EMI of HDFC Bank?
a) Highly Satisfactory
b) Satisfactory
c) Averagely Satisfactory
d) Dissatisfactory
e) Highly Dissatisfactory
ANALYSIS
This pie chart shows that 20% of the customers are highly satisfied
with emi rate of HDFC Bank.
40% customers are satisfied with the emi rate of HDFC Bank.
40% customers are averagely satisfied with emi rate of HDFC Bank.
20%
40%
40%
0 0 percentage
highly satisfactory satisfactory averagely satisfactory dissatifactory highly dissatifactory
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5) How do you rate the documentation procedure of HDFC Bank?
a) Highly Satisfactory
b) Satisfactory
c) Averagely Satisfactory
d) Dissatisfactory
e) Highly Dissatisfactory
ANALYSIS
In the above pie chart 40% of the customers are highly satisfied with
the documentation procedure of HDFC Bank
30% of the customers are satisfied with the documentation procedure
of HDFC Bank
10% of the customers are averagely satisfied with the documentation
procedure of HDFC Bank
10% of the customers are dissatisfied with the documentation
procedure of HDFC Bank
10% of the customers are Highly Dissatisfied with the documentation
procedure of HDFC Bank
40%
30%
10%
10%
10%
Percentagehighly satisfactory satisfactory averagely satisfactory
dissatisfactory highly dissatisfactory
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6) How do you rate the processing fees of HDFC Bank?
a) Highly Satisfactory
b) Satisfactory
c) Averagely Satisfactory
d) Dissatisfactory
e) Highly Dissatisfactory
ANALYSIS
30% of the customers are Highly satisfied with the processing fee of
the HDFC Bank
30% of the customers are satisfied with the processing fee of the
HDFC Bank
30% of the customers are Averagely satisfied with the processing fee
of the HDFC Bank
10% of the customers are dissatisfied with the processing fee of the
HDFC Bank
30%
30%
30%
10%
0 PercentageHighly Satisfactory B)Satisfactory C)Averagely Satisfactory
D)Dissatisfactory E)Highly Dissatisfactory
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7) How do you rate the Sanctioning Procedure of HDFC Bank?
a) Highly Satisfactory
b) Satisfactory
c) Averagely Satisfactory
d) Dissatisfactory
e) Hi