A
Project Study Report
ON
HDFC and HSBC
“Comparative Study of Credit policy
of Short Term Loan”
2008-09
Submitted By: Submitted To:
Mohan
lal Sharma Miss. Swati Jain
MBA Part - II
Department
of Management Studies
(Poornima School
of Management)
ISI-2/6, RIICO INSTITUTIONAL AREA, GONER ROAD, SITAPURA, JAIPUR
Preface
This project report has been prepared
as per the requirement of the syllabus of MBA course structure under which the
students are the required to undertake research. We look our project study of
Credit Policy of short term loan from HDFC Bank and HSBC Bank in Jaipur city in
Rajasthan.
It was a firsthand experience for us
as that we were exposed to the professional set-up and were facing the market,
which was really a great experience.
During project period, I had very touching
experiences. When business is involved, experiences counts a lot, as we know,
experience are an instrument, which leads towards success. As we all know that
working in market on the grass route level has always been a pleasure.
Now I take this opportunity to present
the project report and sincerely hope that it will be as much knowledge
enhancing to the readers as it was to use during the fieldwork and the
completion of the report.
Acknowledgement
I
express my sincere thanks to my project guide, Mr. Sachin Jain, Miss Swati Jain
and Designation Faculty, Dept of management studies, for guiding me right from
the inception till the successful completion of the project. I sincerely
acknowledge her for extending their valuable guidance, support for literature,
critical reviews of project and the report and above all the moral support she
had provided to me with all stages of this project.
I
would also like to thank the supporting staff of PGC management Department, for
their help and cooperation throughout our project.
Mohan lal Sharma
Executive Summary
Contents
1. Introduction
to the Industry
2. Introduction
to the Organization
3. Research
Methodology
Title of the Study
Duration of the
Project
Objective of Study
Type of Research
Sample Size and method
of selecting sample
Scope of Study
Limitation of Study
4. Analysis
and Interpretation
5. Facts
and Findings
6. SWOT
7. Conclusion
8. Recommendation
and Suggestions
9. Appendix
10.
Bibliography
Industry
Overview
INTRODUCTON
The growth in the Indian Banking Industry has been more
qualitative than quantitative and it is expected to remain the same in the
coming years.Based on the projections made in the "India that the
pace of expansion in the balance-sheets of banks is likely to decelerate. The
total assets of all scheduled commercial banks by end-March 2010 are estimated
at Rs 40, 90,000 cores. That will comprise about 65 per cent of GDP at current
market prices as compared to 67 per cent in 2002-03. Bank assets are expected
to grow at an annual composite rate of 13.4 per cent during the rest of the
decade as against the growth rate of 16.7 per cent that existed between 1994-95
and 2002-03. It is expected that there will be large additions to the capital
base and reserves on the liability side. Vision 2020" prepared by the
Planning Commission and the Draft 10thPlan, thereport forecasts.
The Indian Banking Industry can be categorized into
non-scheduled banks and scheduled banks. Scheduled banks constitute of
commercial banks and co-operative banks. There are about 67,000 branches of
Scheduled banks spread across India.
As far as the present scenario is concerned the Banking Industry in India
is going through a transitional phase.
The Public Sector Banks (Pubs), which are the base of
the Banking sector in India
account for more than 78 per cent of the total banking industry assets.
Unfortunately they are burdened with excessive Non Performing assets (Naps),
massive manpower and lack of modern technology. On the other hand the Private
Sector Banks are making tremendous progress. They are leaders in Internet
banking, mobile banking, phone banking, ATMs. As far as foreign banks are
concerned they are likely to succeed in the Indian Banking Industry.
Public sector banks
- State Bank of India
- State Bank of Bikaner & Jaipur
- State Bank of Hyderabad
- State Bank of Indore
- State Bank of Mysore
- State Bank of Patiala
- State Bank of Saurashtra (merged with SBI w.e.f. August 13, 2008)
- State Bank of Travancore
- 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
In the
Indian Banking Industry some of the Private Sector Banks operating are IDBI Bank, ING Visa Bank, SBI Commercial and International Bank Ltd, Bank of Rajasthan
Ltd. and banks from the Public Sector include Punjab National bank, Vijay a
Bank, UCO Bank, Oriental Bank, Allahabad Bank among others. ANZ Grind lays Bank, ABN-AMRO Bank, American
Express Bank Ltd, Citibank are some of the foreign banks operating in the
Indian Banking Industry.
Private sector banks
- Axis Bank (formerly UTI Bank)
- Bank of Rajasthan
- Bharat Overseas Bank
- Catholic Syrian Bank
- Centurion Bank of Punjab (Merged with HDFC bank)
- City Union Bank
- Development Credit Bank
- Dhanalakshmi Bank
- Federal Bank
- HDFC Bank
- ICICI Bank
- IndusInd Bank
- ING Vysya Bank
- Jammu & Kashmir Bank
- Karnataka Bank
- Karur Vysya Bank
- Kotak Mahindra Bank
- Lakshmi Vilas Bank
- Lord Krishna Bank ( now Centurion Bank of Punjab)
- Nainital Bank
- Nedungadi Bank (now Punjab National Bank)
- Ratnakar Bank
- Rupee Bank
- Sara swat Bank
- SBI Commercial and International Bank
- South Indian Bank
- Tamil Nadu Mercantile Bank
- Thane Janata Sahakari Bank
- Bassein Catholic Bank
- United Western Bank ( now IDBI Bank)
- YES Bank
Foreign banks (Banks with branches in India as of Apr 2008)
- ABN AMRO Bank N.V.
- Abu Dhabi Commercial Bank Ltd
- American Express Bank
- Antwerp Diamond Bank
- Arab Bangladesh Bank
- Bank International Indonesia
- Bank of America
- Bank of Bahrain & Kuwait
- Bank of Ceylon
- Bank of Nova Scotia
- Bank of Tokyo Mitsubishi UFJ
- Barclays Bank
- BNP Paribas
- Calyon Bank
- ChinaTrust Commercial Bank
- Citibank
- DBS Bank
- Deutsche Bank
- HSBC (Honking & Shanghai Banking Corporation)
- JPMorgan Chase Bank
- Krung Thai Bank
- Mashreq Bank
- Mizuho Corporate Bank
- Oman International Bank
- Shinhan Bank
- Société Générale
- Sonali Bank
- Standard Chartered Bank
- State Bank of Mauritius
Banks with Representative
Offices in India:
American Banks.
- The Bank of New York
- Wachovia Bank
Australian Banks
- Commonwealth Bank
- National Bank Australia
- Westpac Banking Corporation
Austrian Banks
- Raiffeisen Zentral Bank Osterreich
Belgian Banks
- Fortis Bank
- K.B.C. Bank N.V.
Canadian Banks
- Royal bank of Canada
UAE Banks
- Emirates Bank International
French Banks
- Credit Industriel et Commercial
- Natixis sGerman Banks
- Bayerische Hypo und Vereinsbank
- Commerzbank
- Dresdner Bank
- DZ Bank AG Deutsche Zentral – Genossenschafts Bank
- HSH Nordbank
- Landesbank Baden – Wurttemberg Irish Banks
- DEPFA Bank Italian Banks
- Banc Intesa Banca Commerciale Italiana
- Banca di Roma
- Banca Populare Di Verona E Novara
- Banca Popolare di Vicenza
- BPU Banca –Banche Popolari Unite
- Monte Dei Paschi Di Sienna
- Sanpaolo IMI Bank
- Uni Credito Italiano
Nepalese Banks
- Everest Bank
Portuguese Banks
- Caixa Geral de Depositos
Russian Banks
- Vnesheconombank
- VTB India
- Promsvyazbank
South African banks
- First Rand Bank
South Korean Banks
- Wori Bank
Spanish Banks
- Banco de Sabadell
- Banco Bilbao Vizcaya Argentaria
SriLankan Banks
- Hatton National Bank
Swiss Banks
- UBS
- Zurcher Kantonalbank
Regional Rural Banks (RRBs)
- Adhiyaman Grama Bank
- Alaknanda Gramin Bank ( Now Uttranchal Gramin Bank)
- Andhra Pragathi Grameena Bank
- Avadh Gramin Bank
- Aryavart Gramin Bank
- Balasore Gramya Bank
- Ballia Kshetriya Gramin Bank
- Banaskantha Mehsana Gramin Bank
- Bangiya Grameen Vikash Bank
- Bareilly Kshetriya Gramin Bank
- Baroda Uttar Pradesh Gramin Bank
- Bijapur Grameena Bank
- Bilaspur-Raipur Kshetriya Gramin Bank
- Bolangir Anchalik Gramya Bank
- Bundelkhand Kshetriya Gramin Bank
- Bundi Chittorgarh Kshetriya Gramin Bank
- Cauvery Grameena Bank
- Chaitanya Godavari Grameena Bank
- Chambal Kshetriya Gramin Bank
- Champaran Kshetriya Gramin Bank
- Chhatrasal Gramin Bank
- Chhindwara Seoni Kshetriya Gramin Bank
- Chitradurga Gramin Bank
- Cuttack Gramya Bank
- Damoh Panna Sagar Kshetriya Gramin Bank
- Devipatan Kshetriya Gramin Bank
- Dhenkanal Gramya Bank
- Dungarpur Banswara Kshetriya Gramin Bank
- Ellaquai Dehati Bank
- Farrukhabad Gramin Bank
- Gaur Gramin Bank
- Gurgaon Gramin Bank
- Hadoti Kshetriya Gramin Bank
- Himachal Gramin Bank
- Hissar-Sirsa Kshetriya Gramin Bank
- Indore Ujjain Kshetriya Gramin Bank
- Jaipur Nagaur Aanchalik Gramin Bank
- Jamnagar Rajkot Gramin Bank
- Jamuna Gramin Bank
- Jhabua-Dhar Kshetriya Gramin Bank
- Jharkhand Gramin Bank
- Kakathiya Grameena Bank
- Kalpatharu Grameena Bank
- Kamraz Rural Bank
- Kanpur Kshetriya Gramin Bank
- Kapurthala Ferozpur Kshetriya Gramin Bank
- Kashi Gomti Samyut Gramin Bank
- Kisan Gramin Bank,Budaun
- Kolar Gramin Bank
- Krishna Grameena Bank
- Kshetriya Gramin Bank,Hoshangabad
- Kutch Grameen Bank
- Malaprabha Grameena Bank
- Mandla Balaghat Kshetriya Gramin Bank
- Manjira Grameena Bank
- Marwar Ganganagar Bikaner Gramin Bank (Previously : Marwar Gramin Bank)
- Mewar Aanchalik Gramin Bank
- Nagarjuna Grameena Bank
- Netravati Grameena Bank
- Nimar Kshetriya Gramin Bank
- North Malabar Gramin Bank
- Panchmahal Vadodara Gramin Bank
- Pandyan Grama Bank
- Pinakini Grameena Bank (merged to form Andhra Pragathi Grameena Bank)
- Pragjyotish Gaonlia Bank
- Prathama Bank
- Raigarh Kshetriya Gramin Bank
- Rani Lakshmi Bai Kshetriya Gramin Bank
- Ratlam Mandsaur Kshetriya Gramin Bank
- Rayalaseema Grameena Bank (merged to form Andhra Pragathi Grameena Bank)
- Rewa-Sidhi Gramin Bank
- Sahyadri Gramin Bank
- Samyut Kshetriya Gramin Bank
- Sangameshwara Grameena Bank
- Shahjahanpur Kshetriya Gramin Bank
- Shreyas Gramin Bank (Aligarh,Etah,Agra,Mathura,Firozabad)
- Shivpuri Guna Kshetriya Gramin Bank
- South Malabar Gramin Bank
- Sree Anantha Grameena Bank (Merged to Andhra Pragathi Grameena Bank)
- Sri Saraswati Grameena Bank
- Sri Visakha Grameena Bank
- Surat Bharuch Gramin Bank
- Thar Aanchalik Gramin Bank
- Tripura Gramin Bank
- Tungabhadra Gramin Bank
- Vidur Gramin Bank
- MCB
- Madhya Bharat Gramin Bank
Early history
Banking
in India
originated in the last decades of the 18th century. The first banks were The
General Bank of India,
which started in 1786, and the Bank of Hindustan, both of which are now
defunct. The oldest bank in existence in India
is the State Bank of India,
which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the
other two being the Bank of Bombay and the Bank of Madras, all three of which
were established under charters from the British East India Company. For many
years the Presidency banks acted as quasi-central banks, as did their
successors. The three banks merged in 1925 to form the Imperial Bank of India, which, upon India's
independence, became the State Bank of India.
Indian
merchants in Calcutta
established the Union Bank in 1839, but it failed in 1848 as a consequence of
the economic crisis of 1848-49. The Allahabad Bank, established in 1865 and
still functioning today, is the oldest Joint Stock bank in India. It was not the first though.
That honor belongs to the Bank of Upper India, which was established in 1863,
and which survived until 1913, when it failed, with some of its assets and
liabilities being transferred to the Alliance Bank of Simla.
When
the American Civil War stopped the supply of cotton to Lancashire
from the Confederate States, promoters opened banks to finance trading in
Indian cotton. With large exposure to speculative ventures, most of the banks
opened in India
during that period failed. The depositors lost money and lost interest in
keeping deposits with banks. Subsequently, banking in India remained the exclusive domain
of Europeans for next several decades until the beginning of the 20th century.
Foreign
banks too started to arrive, particularly in Calcutta, in the 1860s. The Composite
d'Escompte de Paris opened a branch in Calcutta
in 1860, and another in Bombay in 1862; branches
in Madras and Pond
cherry, then a French colony, followed. HSBC established itself in Bengal in 1869. Calcutta was
the most active trading port in India,
mainly due to the trade of the British Empire,
and so became a banking center.
Nationalization
By
the 1960s, the Indian banking industry has become an important tool to
facilitate the development of the Indian economy. At the same time, it has
emerged as a large employer, and a debate has ensued about the possibility to
nationalise the banking industry. Indira Gandhi, the-then Prime Minister of
India expressed the intention of the GOI in the annual conference of the All
India Congress Meeting in a paper entitled "Stray thoughts on Bank Nationalisation." The paper
was received with positive enthusiasm. Thereafter, her move was swift and
sudden, and the GOI issued an ordinance and nationalized the 14 largest
commercial banks with effect from the midnight of July 19, 1969. Jayaprakash Narayan, a national
leader of India,
described the step as a "masterstroke
of political sagacity." Within two weeks of the issue of the
ordinance, the Parliament passed the Banking Companies (Acquisition and
Transfer of Undertaking) Bill, and it received the presidential approval on 9
August, 1969.
A
second dose of nationalization of 6 more commercial banks followed in 1980. The
stated reason for the nationalization was to give the government more control
of credit delivery. With the second dose of nationalization, the GOI controlled
around 91% of the banking business of India. Later on, in the year 1993,
the government merged New Bank of India with Punjab National Bank. It
was the only merger between nationalized banks and resulted in the reduction of
the number of nationalised banks from 20 to 19. After this, until the 1990s,
the nationalised banks grew at a pace of around 4%, closer to the average
growth rate of the Indian economy.
The
nationalised banks were credited by some; including Home minister P.
Chidambaram, to have helped the Indian economy withstand the global financial
crisis of 2007-2009.
Liberalization
In
the early 1990s, the then Narsimha Rao government embarked on a policy of liberalization,
licensing a small number of private banks. These came to be known as New Generation tech-savvy banks, and
included Global Trust Bank (the first of such new generation banks to be set
up), which later amalgamated with Oriental Bank of Commerce, Axis Bank(earlier
as UTI Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth
in the economy of India,
revitalized the banking sector in India, which has seen rapid growth
with strong contribution from all the three sectors of banks, namely,
government banks, private banks and foreign banks.
The
next stage for the Indian banking has been setup with the proposed relaxation
in the norms for Foreign Direct Investment, where all Foreign Investors in banks
may be given voting rights which could exceed the present cap of 10%, at
present it has gone up to 49% with some restrictions.
The
new policy shook the Banking sector in India completely. Bankers, till
this time, were used to the 4-6-4 method (Borrow at 4%; Lend at 6%; Go home at
4) of functioning. The new wave ushered in a modern outlook and tech-savvy
methods of working for traditional banks.All this led to the retail boom in India.
People not just demanded more from their banks but also received more.
Currently
(2007), banking in India is
generally fairly mature in terms of supply, product range and reach-even though
reach in rural India
still remains a challenge for the private sector and foreign banks. In terms of
quality of assets and capital adequacy, Indian banks are considered to have
clean, strong and transparent balance sheets relative to other banks in
comparable economies in its region. The Reserve Bank of India is an autonomous body, with
minimal pressure from the government. The stated policy of the Bank on the
Indian Rupee is to manage volatility but without any fixed exchange rate-and
this has mostly been true.
With
the growth in the Indian economy expected to be strong for quite some
time-especially in its services sector-the demand for banking services,
especially retail banking, mortgages and investment services are expected to be
strong. One may also expect M&A, takeovers, and asset sales.
In
March 2006, the Reserve Bank of India
allowed Warburg Pincus to increase its stake in Kotak Mahindra Bank (a private
sector bank) to 10%. This is the first time an investor has been allowed to
hold more than 5% in a private sector bank since the RBI announced norms in
2005 that any stake exceeding 5% in the private sector banks would need to be vetted
by them.
In
recent years critics have charged that the non-government owned banks are too
aggressive in their loan recovery efforts in connection with housing, vehicle
and personal loans. There are press reports that the banks' loan recovery
efforts have driven defaulting borrowers to suicide.
Banking
Industry has revolutionized the transaction
and financial services system worldwide. Through the development in technology
banking services has been availed to the customers at all times, even after the
normal banking hours, on a 24x7 basis. Banking Industry services is
nothing but the access of most of the banking related services (such as
verification of account details, going with the transactions, etc.). In today’s
world, progress of online services is available to all customers of the
concerned bank and can be accessed at any point of time and from anywhere
provided the place is equipped with the Internet facility. Now-a-days, almost
all the banks all over the world, especially the multinational ones, provide
their customers with Online Banking facility.
Banking Industry has revolutionized the transaction and financial services system worldwide. Through the development in technology banking services has been availed to the customers at all times, even after the normal banking hours, on a 24x7 basis. Banking Industry services is nothing but the access of most of the banking related services (such as verification of account details, going with the transactions, etc.). In today’s world, progress of online services is available to all customers of the concerned bank and can be accessed at any point of time and from anywhere provided the place is equipped with the Internet facility. Now-a-days, almost all the banks all over the world, especially the multinational ones, provide their customers with Online Banking facility.
Banking Industry has revolutionized the transaction and financial services system worldwide. Through the development in technology banking services has been availed to the customers at all times, even after the normal banking hours, on a 24x7 basis. Banking Industry services is nothing but the access of most of the banking related services (such as verification of account details, going with the transactions, etc.). In today’s world, progress of online services is available to all customers of the concerned bank and can be accessed at any point of time and from anywhere provided the place is equipped with the Internet facility. Now-a-days, almost all the banks all over the world, especially the multinational ones, provide their customers with Online Banking facility.
Banking credit is the elemental
source of all other forms of credit in the society. The other significance of
bank credit is in the form of checking account credit. The primary source for
this credit comes from the depositor's savings account. In this article a
serious attempt is made to take look at the most common forms of banking
credit.
Forms of Banking Credit:
Loans:
Loan is a type of debt in which the
lender lends money to the borrower and the borrower pays back the loan with
interest either in installments or as a whole after a specified period of time.
Both the lender and borrower can be a person or an organization. In present
times the group of lenders has been typically reduced to commercial banks. The
moneylenders have been eliminated as they used to charge a higher rate of
interest and imposed stringent terms and conditions. In the process of lending,
banking credit flows out to satisfy desirable needs of people whose dreams
couldn't have been otherwise realized. There is a list of pre-specified terms
and conditions laid down by the bank. The bank keeps an asset of the borrower
as collateral to secure the loan. This is important because the bank bears the
whole risk default by the borrower. Following are some forms of the banking
credit in terms of loans that are commonly used:
Home Loan- Home loans
give an opportunity to a person to purchase the desired private dwelling using
banking credit and later repay it according to pre-decided terms. A home loan
also helps one who already owns a house but wishes to make it better using some
innovative ideas but lacks the resources to fulfill his aspiration. The title
or deed is held by the bank until the borrower has fully repaid the loan (and
interest).
HDFC Bank Home Loans, offer unbeatable benefits
to ensure that the customers get the best deal without any hassles.
As one of the leading home loan provider, HDFC Bank understands how special building a new home is for the customers and HDFC Home Loan help the customers lay the foundation for their dream home.
HDFC offers customers the most convenient home loan plans to suit their needs. With so many attractive features in every type of home loan HDFC offer, creating the home customers always wanted is no longer a distant dream. Some of HDFC’s key benefits are:
As one of the leading home loan provider, HDFC Bank understands how special building a new home is for the customers and HDFC Home Loan help the customers lay the foundation for their dream home.
HDFC offers customers the most convenient home loan plans to suit their needs. With so many attractive features in every type of home loan HDFC offer, creating the home customers always wanted is no longer a distant dream. Some of HDFC’s key benefits are:
- Guidance through out the process.
- Home loan amounts suited to customer’s needs.
- Home Loan tenure up to 20 years.
- Simplified Documentation.
- Doorstep Service.
- Attractive interest rates.
- Sanction approval without having selected a property.
- Free Personal Accident Insurance.
·
Insurance options for your home
loan at attractive premium.
No matter what the requirement, HDFC have an appropriate plan for customers to Get the best deals, and finance their perfect home, only from HDFC Bank.
No matter what the requirement, HDFC have an appropriate plan for customers to Get the best deals, and finance their perfect home, only from HDFC Bank.
Interest rate on HDFC Bank Home Loans is
linked to the HDFC Bank Floating Reference Rate (FRR/PLR). HDFC Bank FRR has
been reduced by 50 basis points (i.e. 0.50%) with effect from December 31,
2008. Thus the FRR has been reduced from 14.25% to 13.75%. HDFC Bank PLR has
also been reduced by 50 basis points (i.e. 0.50%) with effect from December 31,
2008. Thus the PLR has changed from16.25% to 15.75%.
Accordingly, the Home Loan floating rate
of interest has been reduced by 0.5% (50 basis points).
Reasons why customers must consider an
HDFC Bank Home Loan
Home Loans from HDFC Bank is a really easy way to fulfill
customer’s dreams of a dream home. With HDFC
Bank Home Loans customers can avail of a hassle
free loan which can enable them to buy an apartment, bungalow or villa in a
locality of their choice – quickly & without much effort.
Enjoy multiple benefits when customers choose to
take the loan.
- Simplified Documentation – Loan application process is now easier and faster with simplified documentation.
- Door Step Service – HDFC personally deliver Home Loan at customer’s doorstep - so they don’t need to rush out & disrupt their day’s activities.
- Attractive Interest Rates – HDFC Bank Home Loans offers a wide range of home loan rates to choose from:
- Adjustable Rate Home Loan
- Fixed Rate Home Loan
- Part Fixed, Part Floating Rate Home Loan
- Smart Fix Home Loan
- Home Search – Along with giving the perfect home loan, HDFC also aid customers in their quest for that perfect dream home. Home Search is a specialized division focused on providing customers with a hassle-free means of acquiring their new home. When they choose to avail of our Home Search service, they assure themselves of a relaxed search experience as they are assisted at each step. When they describe their dream home, Home Search will locate it from their database of the entire real estate market. What’s more, Home Search will also help them in getting the best deal and the paperwork involved.
- Home Insurance – Keep home safe with Home Safe plus & Home/Health Assure, a comprehensive insurance policy available at attractive premium especially for HDFC’s esteemed customers.
- No fees on part – prepayment - HDFC Bank Home Loans does not levy any fee on Part - Prepayment .So, if there is a high probability that customers will be able to at least part-prepay their loan, then they should consider a loan from a housing finance institution that does not take fees from them for doing so. When they do prepay, they will get an option on whether they would like to reduce the EMI or the tenure.
Safe
Banking with HDFC Bank Home Loans
Technical terms demystified
Technical terms demystified
HDFC
Bank home loan does a complete Legal and Technical verification of the property
that customers intend to buy. This ensures the safety of the purchase for the
customer Legal Verification. The customer would need to submit the original
property documents as per the indicative list given by HDFC Bank along with the
letter from the registrar for pending documents if any and NOC from the
landowner. The copies of the same are forwarded to an empanelled lawyer who has
to peruse the document, provide a legal opinion and a title clearance
certificate to ensure a clear and marketable legal title.
Technical Appraisal
This
appraisal serves the following purpose
- It confirms that the property really exists
- It is an assess of the available infrastructure
- It checks the quality and speed of construction
- For resale cases, it confirms the external & internal condition of the building and flat/property respectively.
Thus,
HDFC Bank ensures that the interest of both the customer and the Bank is
safeguarded.
PRODUCTS OF HOME LOAN
HDFC Bank Home loans provide
not just the most competitive interest rates & best level of service, but
also products designed to cater to the specific needs of consumer. New products
/ new features in existing products are introduced based on customer feedback.
Choose the HDFC Bank
Home Loan that suits your needs.
Automobile Loans- an
automobile loan helps one to buy the vehicle of his choice. It is a secured
loan in the sense that the collateral in this case is represented by the
vehicle bought using the loan. New as well as used cars can be purchased using
an automobile loan. The loan is a continuous flow of the banking credit because
as borrowers periodically payback the loan amount and interest the balance of
the automobile loan keeps on liquidating.
HDFC
Bank Car Loans help you realize your dream of owning a car of your own. HDFC
Car Loans are available for both new cars as well as used cars (up to 10 years
old at the time of maturity of the loan term) for a period of up to 7 years for
re-payment. The details of a car loan by HDFC Bank India
Loan Amount:
For New Cars:
Up to 100% of the 'on road' cost on select car models and a loan of up to 95 % on the 'ex-showroom price' with a minimum loan amount limit of Rs. 1,00,000
For a Used Car:
Up to 90% of the valuation amount of the car with a minimum loan amount limit of Rs. 75,000
Loan Amount:
For New Cars:
Up to 100% of the 'on road' cost on select car models and a loan of up to 95 % on the 'ex-showroom price' with a minimum loan amount limit of Rs. 1,00,000
For a Used Car:
Up to 90% of the valuation amount of the car with a minimum loan amount limit of Rs. 75,000
Loan Eligibility:
Age: The minimum age for application for an HDFC Car Loan is 21 years at the time of application and the maximum age at the time of maturity of the loan is 60 years for salaried individuals and 65 years for self-employed. For Private or public ltd. Companies the existence limit is a minimum of 2 years. Income:
Annual incomes of the loan applicant should be above Rs. 1 lakh for salaried individuals, Rs. 60,000 for self employed, Rs. 60, 000 PAT (Profit After Tax) income for Partnership Firms and Private or Public Ltd. Cos.
Loan Application Procedure:
Age: The minimum age for application for an HDFC Car Loan is 21 years at the time of application and the maximum age at the time of maturity of the loan is 60 years for salaried individuals and 65 years for self-employed. For Private or public ltd. Companies the existence limit is a minimum of 2 years. Income:
Annual incomes of the loan applicant should be above Rs. 1 lakh for salaried individuals, Rs. 60,000 for self employed, Rs. 60, 000 PAT (Profit After Tax) income for Partnership Firms and Private or Public Ltd. Cos.
Loan Application Procedure:
HDFC Bank Car
Loans have been made easier and quicker by reduction the documentations that
were mandatory earlier. Now you can receive loans within 2 hours of the
submission of all the post-sanction documents. HDFC Bank offers various
channels for you to apply for a car finance scheme. You can either apply online
through their website (link to which is provided below) or email or call HDFC
Bank Customer Care to meet an HDFC representative to brief you on the available
options or you can also visit your nearest HDFC Bank branch or SMS the request
to HDFC Bank.
Re-Payments:
The tenure of repayment of HDFC Bank Car Loans is available as 1 to up to 7 years. The due dates for monthly payments are 5th and 10th of every month. The repayment channels accepted by HDFC Bank include post-dated cheques, direct debit mandates (for HDFC bank account holders), and ECS (available in select cities). HDFC Bank does not accept cash or credit card payments for car loans repayments. A charge of Rs. 250 is charged per bounced Cheque.
Re-Payments:
The tenure of repayment of HDFC Bank Car Loans is available as 1 to up to 7 years. The due dates for monthly payments are 5th and 10th of every month. The repayment channels accepted by HDFC Bank include post-dated cheques, direct debit mandates (for HDFC bank account holders), and ECS (available in select cities). HDFC Bank does not accept cash or credit card payments for car loans repayments. A charge of Rs. 250 is charged per bounced Cheque.
Pre-Payment:
A full pre-payment of an HDFC Bank Car Loan is acceptable whereas part-pre-payment is not allowed. The charges for pre-payment of your car loan include 5% pre-payment fee on outstanding principal amount along with the applicable service charges.
Car Overdraft:
It is a facility to covert your existing car into a. HDFC Bank Current account by availing an overdraft of up to 90% of the net assessed value of your car. The interest is charged only on the funds withdrawn and only a minimum of 5% of the utilized amount without any hassles of a fixed EMI.
On this website we provide you many dedicated pages on other HDFC Bank Banking Services and other products from the bag of HDFC. For further info on IHDFC bank car finance schemes, you can call up their customer service centers or login to their website.
A full pre-payment of an HDFC Bank Car Loan is acceptable whereas part-pre-payment is not allowed. The charges for pre-payment of your car loan include 5% pre-payment fee on outstanding principal amount along with the applicable service charges.
Car Overdraft:
It is a facility to covert your existing car into a. HDFC Bank Current account by availing an overdraft of up to 90% of the net assessed value of your car. The interest is charged only on the funds withdrawn and only a minimum of 5% of the utilized amount without any hassles of a fixed EMI.
On this website we provide you many dedicated pages on other HDFC Bank Banking Services and other products from the bag of HDFC. For further info on IHDFC bank car finance schemes, you can call up their customer service centers or login to their website.
The process for getting a loan
involves only a few simple steps
- Loan on Phone for Customers: Are you an HDFC Bank customer? Go for a pre-approved car loan. Call our Customer Care numbers or sms “car loan” to 5676766. (e.g., if you are in Mumbai, “car loan Mumbai”).
- Loan on the Strength of Your Income: Submit income proofs as required and avail finance up to 90% of the ex-showroom price of the car.
- Loan in the absence of Income Proof: We offer car loan for customers without income proof on producing the bank statement, loan repayment track record, etc.
- Car Loans with Fixed and Floating Interest Rates: ICICI Bank now offers new car loans with both fixed and floating interest rate options. The customer can opt for fixed interest rate or floating interest rate for taking a car loan from ICICI Bank according to his/her discretion.
- Repayment tenure ranges from 1 year to 6 years for new car loans.
- You may change the tenure of the loan before the loan is disbursed. The interest rate & EMI would change accordingly.
- The repayment due dates for the loan are 1st and 15thof every month and would depend on the date of disbursement. Payment due dates cannot be changed.
- You can make the Payments through post-dated cheques (PDCs)
- Repayment option through Direct Debit Mandates is also available for all ICICI Bank account holders.
- Option of repaying through ECS is also available in select cities.
- Payments through cash or credit cards are not accepted.
- You may change the PDC's in case your Bank Account is changed. However, we would require verification of signatures by new banker. A nominal fee of Rs.500/- (Swap Charges) would be charged for exchange of cheques.
- A full pre-payment of the loan is accepted. Part pre-payment is not allowed.
- We charge Rs.200/-per bounced cheques.
Note: All
charges are subject to Service Tax as applicable.
Home Equity Loan-
This is a type of second mortgage banking credit that is suitable
particularly for homeowners and the security is by a mortgage on the property.
The loan amount may carry fixed or floating rates. A house owner can successfully
use his house as collateral for the loan and the loan proceeds can be usefully
employed for paying education or medical bills or buying another house.
Student Loans-
These are federal funded banking
credit that help students to pay the the (sometimes extraordinary) costs of
professional college education. These have no statute of limitations. The
student loans carry lower rate of interest and usually can't be included in
bankruptcy. New Mexico Student Loans help qualified persons by financing and
servicing educational loans. The Canada Student Loans Program is another
program with similar objectives.
Term Loans-
Term loans are usually granted for
a period of 3 or 5 or 10 years and the borrower continuously repays the
principal and accruing interest in such a way that the loan is fully amortized
by the end of the term. Collateral in case of such loans are usually real
estates or equipments.
Credit Cards:
Beside loans, credit cards nowadays
also form a whopping proportion of banking credit. The use of credit cards has
increased exponentially in the last few years. Credit cards facilitate retail
transaction and the credit card issuer actually lends money for the time being
to its user. The user agrees to pay the issuer the sum along with interest.
Customers prefer it as the reluctance to carry money. Many banks offering
credit cards also reward a substantial consumer in kind or in terms of cash
back. However there are frequent cases of fraud in credit cards as a form of
banking credit as it can be easily stolen or is prone to duplicable. The banks
usually refund a part of the money that the consumer has not spent if theft or
loss is proved. Master Card and Euro card are some of the most common credit
cards that are in use.
Banking credit is simply the
borrowing capacity of an individual provided by banks. This of course depends
on the credit history of the individual. So maintaining an excellent credit
history always pays.
Banking
loans refers to the different types of
banking loans offered by banks. Banking loans may be availed of for various
purposes. Banking loans are governed by banking laws and banking regulations.
Depending on the need of an individual, banking loans should be applied for.
The banking loans are provided by different banking institutions after an individual satisfies certain criteria.
Banking laws and banking regulations governing banking loans:-
The banking loans are governed by banking laws and banking regulations. The banking laws and the banking regulations may be either at the state level or at the federal level.
Banking loans rate of interest:
Banking loans are availed of by paying a particular rate of interest. The rate of interest of the banking loans may be either fixed or the rate of interest may be variable or adjustable.
The rate of interest is influenced by several factors. If one opts for a variable rate of interest, the rate of interest fluctuates with the rate of interest prevailing in the market at that point of time.
If an individual opts for a rate of interest which is fixed, the rate of interest throughout the duration of the loan period remains constant. In this case the rate of interest is not affected by the market conditions.
Factors affecting rate of interest of banking loans:-
Rate of interest of banking loans usually vary due to few reasons. The reasons affecting banking loans rate of interest may be as under:
Depending on the need of an individual, banking loans should be applied for.
The banking loans are provided by different banking institutions after an individual satisfies certain criteria.
Banking laws and banking regulations governing banking loans:-
The banking loans are governed by banking laws and banking regulations. The banking laws and the banking regulations may be either at the state level or at the federal level.
Banking loans rate of interest:
Banking loans are availed of by paying a particular rate of interest. The rate of interest of the banking loans may be either fixed or the rate of interest may be variable or adjustable.
The rate of interest is influenced by several factors. If one opts for a variable rate of interest, the rate of interest fluctuates with the rate of interest prevailing in the market at that point of time.
If an individual opts for a rate of interest which is fixed, the rate of interest throughout the duration of the loan period remains constant. In this case the rate of interest is not affected by the market conditions.
Factors affecting rate of interest of banking loans:-
Rate of interest of banking loans usually vary due to few reasons. The reasons affecting banking loans rate of interest may be as under:
Inflation:
Inflation is one reason due to which the rate of interest of banking loans gets influenced.
Inflation is one reason due to which the rate of interest of banking loans gets influenced.
·
If there is a modest
or moderate rise in inflation the rate of interest increases by a lower margin.
On the other hand if inflation is high, the rate of interest also rises
markedly.
·
The other reason for
the increase in rate of interest is the prevailing economic condition of the
market. The rate of economic growth also influences the rate of interest.
·
Banking loans are
influenced by the term period of banking loans.
·
If an individual opts
for banking loans for a long term, the rate of interest may be less depending
on the type of rate of interest opted for.
Federal reserves also influence the rate of interest of banking loans.
Federal reserves also influence the rate of interest of banking loans.
Banking
loans are also subjected to a certain term period. Term period refers to the
duration of the banking loans. The duration of banking loans may vary depending
on the type of banking loans availed by individuals.
On line banking loans:-
Banking loans can also be availed on line or through the Internet.
One can apply for banking loans on line or through the Internet by simply filling up banking loans form depending on the type of banking loans an individual is applying for.
Applying for banking loans on line is much easier and faster as compared to applying for banking loans through a banking official.
On line banking loans provide the facility of comparing the rate of interest of different banking loan providers.
There are times when certain banking loan providers offer schemes to the banking loan seekers.
If the banking loans are applied on line, one should take care of the safety measures while performing transactions involving banking loans. One must guard oneself against Internet fraud.
Banking loans may be of the following types:
Banking loans can be availed of, for various needs like buying ones home, buying a vehicle, staring a business, enrolling for a course in the university etc., .the list can go on.
The above facilities can be availed off in different categories of banking loans.
Banking loans can be broadly classified as under mentioned:
On line banking loans:-
Banking loans can also be availed on line or through the Internet.
One can apply for banking loans on line or through the Internet by simply filling up banking loans form depending on the type of banking loans an individual is applying for.
Applying for banking loans on line is much easier and faster as compared to applying for banking loans through a banking official.
On line banking loans provide the facility of comparing the rate of interest of different banking loan providers.
There are times when certain banking loan providers offer schemes to the banking loan seekers.
If the banking loans are applied on line, one should take care of the safety measures while performing transactions involving banking loans. One must guard oneself against Internet fraud.
Banking loans may be of the following types:
Banking loans can be availed of, for various needs like buying ones home, buying a vehicle, staring a business, enrolling for a course in the university etc., .the list can go on.
The above facilities can be availed off in different categories of banking loans.
Banking loans can be broadly classified as under mentioned:
(1) Secured banking loans:
Secured banking loans are availed in exchange for a security or collateral. The banking loans provider offers banking loans to an individual provided the banking loan borrowers give something as security.
In the event when the banking loans borrower is unable to pay back the loan amount, the banking loans lender has the authority to confiscate the security. Security may be ones property or some asset.
Banking loans providers or lenders do not provide banking loans which exceeds the total value of the property. 100% payment is not provided.
Banking loans providers may provide as much as 60% to 80% of the property value.
Secured banking loans are availed in exchange for a security or collateral. The banking loans provider offers banking loans to an individual provided the banking loan borrowers give something as security.
In the event when the banking loans borrower is unable to pay back the loan amount, the banking loans lender has the authority to confiscate the security. Security may be ones property or some asset.
Banking loans providers or lenders do not provide banking loans which exceeds the total value of the property. 100% payment is not provided.
Banking loans providers may provide as much as 60% to 80% of the property value.
(2) Unsecured
banking loans:
Unsecured banking loans are the banking loans which do not require any security.
There is hardly any banking loans provider wishing to offer unsecured banking loans to individuals intending to begin a new business.
The reason being the banking loans provider or the banking loans company is not aware of the credit history of the banking loans borrower and is not intending to any risk.
Under these circumstances, unsecured banking loans are extended to individuals whose credit worthiness is known and the individual has a good report.
Unsecured banking loans are the banking loans which do not require any security.
There is hardly any banking loans provider wishing to offer unsecured banking loans to individuals intending to begin a new business.
The reason being the banking loans provider or the banking loans company is not aware of the credit history of the banking loans borrower and is not intending to any risk.
Under these circumstances, unsecured banking loans are extended to individuals whose credit worthiness is known and the individual has a good report.
Tax benefits of banking loans:
One can avail of tax benefits on applying for banking loans
the interest paid by individuals are subjected to tax benefits.
Banking loans:
Banking loans of the following types may be offered to individuals:
One can avail of tax benefits on applying for banking loans
the interest paid by individuals are subjected to tax benefits.
Banking loans:
Banking loans of the following types may be offered to individuals:
·
Business banking loans:
Business banking loans are provided by banks for the purpose of starting a business.
Business banking loans are provided by banks depending on the credit history of the intending banking loans borrower.
During the early days of a business firm, operations are kept rolling with the help of the business banking loans.
Business banking loans play an important part in keeping the business rolling during the early days.
The business banking loans are provided to individuals depending on the type of business one intends to start.
Criteria for availing business banking loans:
One should have a good credit history for availing business banking loans. A good credit history gives the impression of being a good and responsible business banking loans borrower.
One can also avail of the the Free Credit Reports, offered by the government of United States of America.
This credit report is made available to all American citizens to spread awareness among the citizens.
The Free Credit Report provides extensive information as to how one can prevent ones individuality from being misused by others.
The report also enables an individual to keep oneself abreast with the latest information pertaining to business banking loans.
Business banking loans are provided depending on the nature and the age of the business firm.
Business banking loans may be provided to well establish business houses or a business firm about to be launched.
Business banking loans for small business firms:
Business banking loans are provided by banks for the purpose of starting a business.
Business banking loans are provided by banks depending on the credit history of the intending banking loans borrower.
During the early days of a business firm, operations are kept rolling with the help of the business banking loans.
Business banking loans play an important part in keeping the business rolling during the early days.
The business banking loans are provided to individuals depending on the type of business one intends to start.
Criteria for availing business banking loans:
One should have a good credit history for availing business banking loans. A good credit history gives the impression of being a good and responsible business banking loans borrower.
One can also avail of the the Free Credit Reports, offered by the government of United States of America.
This credit report is made available to all American citizens to spread awareness among the citizens.
The Free Credit Report provides extensive information as to how one can prevent ones individuality from being misused by others.
The report also enables an individual to keep oneself abreast with the latest information pertaining to business banking loans.
Business banking loans are provided depending on the nature and the age of the business firm.
Business banking loans may be provided to well establish business houses or a business firm about to be launched.
Business banking loans for small business firms:
o The credit history is ascertained
o Necessary documents are required to be furnished
o The business banking loans borrower is required to explain
the financial status of the individual
o The business plan has to be dealt with.
o The final step is to select a business banking loans
provider having a good history and offering the optimum facilities.
- Unsecured
credit lines:
The unsecured credit lines refer to the upper limit of money funded by a lender to a borrower.
The rate of interest for unsecured credit lines differs from one banking loan provider to another.
The rate of interest for unsecured credit line is also determined on the basis of business one intends to start. - Banking
loans for a short term:
Banking loans for a short term period can be availed off as a capital fund.
One is required to pay the principle amount as well as the interest for every month for banking loans borrowed.
The duration of banking loans for short term period do not exceed a time frame of three years.
One is also required to opt for collateral security. - Banking loans for a long period:
Banking loans for long term are usually made available to the individuals intending to buy instrumentations or valuables.
Banking loans for a long period are granted for financing for a second time. The banking loans are to be tagged along with a security.
Banking loans for a long period requires one to make prepayments and banking loans compact connected with the banking loans.
Criteria for availing unsecured credit lines banking loans:
o credit history of the borrower
o age of the business firm
o Whether the borrower banks with the lending bank.
- Business banking loans for starting a new business:
Business banking loans for starting a new
business are hard to avail of.
The reason for the unavailability of the business banking loans for beginning new business is that the business banking loans provider finds it hard to trust an individual intending to start a new business.
The initial years of a new business house have the tendency of facing a lot of doldrums.
Should any mishap occur, the business banking loan providers are subjected to loss. For such reasons, very few business banking loans are made available to individuals.
However, business banking loans can be availed off as personal banking loans.
The reason for the unavailability of the business banking loans for beginning new business is that the business banking loans provider finds it hard to trust an individual intending to start a new business.
The initial years of a new business house have the tendency of facing a lot of doldrums.
Should any mishap occur, the business banking loan providers are subjected to loss. For such reasons, very few business banking loans are made available to individuals.
However, business banking loans can be availed off as personal banking loans.
- Mortgage
banking loans:
Mortgage banking loans can be provided to banking loans borrowers for building a new home or renovating an existing asset.
Mortgage banking loans schemes may vary from one banking loans provider to another.
The mortgage banking loans rate of interest also differs depending on factors like federal reserves, inflation, term of mortgage banking loans etc.,.
Mortgage banking loans may be of a rate of interest which may be fixed or adjustable.
If an individual opts for rate of interest which is fixed, one is required to make payments which remain constant throughout the loan term.
On the other hand if an individual opts for an adjustable or variable rate of interest, one is required to make monthly payments depending on the prevailing market conditions.
Prior to applying for mortgage banking loans, an individual needs to qualify for the amount of money that can be borrowed.
Also taken into account is an individual's borrowing capacity.
Mortgage banking loans come for a fee which is required to be shelled out by the one applying for banking loans. The mortgage banking loans fee may range anywhere from $50 to $500.
In order to avail of mortgage banking loans one is required to furnish documents as listed below:
o details about debts, if applicable
o ones social security number
o Detailed information about ones assets.
o Ones income proof.
Mortgage banking loans can be of the following types:
o Balloon mortgage banking loans:
Balloon mortgage banking loans provided to an individual offers banking loans with a low rate of interest.
Balloon mortgage banking loans are also known as reset mortgage banking loans. One is required to pay back the loan amount within a period of either 5 or 7 years.
The balloon mortgage banking loans are regarded as more dangerous than normal mortgage banking loans.
The reason for this being the sudden increase in the rate of interest.
In other mortgage banking loans, the monthly payment which one is required to pay consists of the principle amount and also the interest.
Balloon mortgage banking loans provided to an individual offers banking loans with a low rate of interest.
Balloon mortgage banking loans are also known as reset mortgage banking loans. One is required to pay back the loan amount within a period of either 5 or 7 years.
The balloon mortgage banking loans are regarded as more dangerous than normal mortgage banking loans.
The reason for this being the sudden increase in the rate of interest.
In other mortgage banking loans, the monthly payment which one is required to pay consists of the principle amount and also the interest.
o Jumbo mortgage banking loans:
Jumbo mortgage banking loans are extended to people falling in the higher income group.
These banking loans are mainly made available to individuals intending to purchase very expensive residents in very expensive areas.
The rate of interest of the jumbo mortgage banking loan, is approximately 0.5% more than conventional mortgage banking loans. Jumbo mortgage banking loans fall in the category of non conventional banking loans.
Jumbo mortgage banking loans are extended to people falling in the higher income group.
These banking loans are mainly made available to individuals intending to purchase very expensive residents in very expensive areas.
The rate of interest of the jumbo mortgage banking loan, is approximately 0.5% more than conventional mortgage banking loans. Jumbo mortgage banking loans fall in the category of non conventional banking loans.
o Convertible mortgage banking
loans:
Convertible mortgage banking loans allow an individual to switch over to fixed rate of interest mortgage banking loans from the existing variable.
Convertible mortgage banking loans allow an individual to switch over to fixed rate of interest mortgage banking loans from the existing variable.
Auto
banking loans:
Auto banking loans allow an individual to own an automobile.
The bank also called the auto banking loans provider or the auto banking loans lender makes available the fund essential for the same.
The auto banking loans products offered by banks differ from bank to bank.
However, good banking loans providing bank is expected to have the under mentioned features and advantages:
o Processing of auto banking loans expected to be completed
without much harassment.
o The first payment or the deposit should be low. Preferentially
as low as about 15%.
o One should be able to opt for auto banking loans which have
the provisions of being customized according to ones own needs.
o The duration of auto banking loans should be elastic. The
term of auto banking loans should be ranging between one to 7 years.
o The rates of insurance for auto banking loans offered is
expected to be offering better options as compared to other auto banking loans
available in the market.
o The auto banking loans should allow booking of the vehicle
or the automobile in advance.
o The bank should be transparent in the dealings with the
customers availing auto banking loans. Transparency is preferred.
Guidelines
for availing the best auto banking loans:
- Managing ones credit:
An individual opting for auto banking loans can follow up ones credit history prior to applying for auto banking loans.
A good credit history can work as a good qualifier for availing banking loans.
o One should have a clear understanding of the amount one can
shell out. One can also take the help of auto payment calculator.
o One should read between lines for the fine print of the
terms and conditions of auto banking loans.
A term or condition of auto
banking loans may require one to make minimum deposit initially.
This feature mostly misguides people as auto banking loans seekers are required to pay more eventually after the banking loans terms and conditions are executed or implemented.
Buying disability insurance:
The auto banking loans providers usually fear that an applicant may fail to repay the loan amount in the event of a disability. For such reason the banking loans providing bank prefer to insure one self.
This feature mostly misguides people as auto banking loans seekers are required to pay more eventually after the banking loans terms and conditions are executed or implemented.
Buying disability insurance:
The auto banking loans providers usually fear that an applicant may fail to repay the loan amount in the event of a disability. For such reason the banking loans providing bank prefer to insure one self.
o An individual should opt for banking loans which are
allowed to be paid off prior to the closing of auto banking loans.
o One should take the initiative of making a thorough
research of all the auto banking loans banking companies prior to taking the
plunge.
The following automobile products are financed by auto banking loans:
The following options are offered to the customers availing of auto banking loans:
o Booking the automobile in advance:
One can book the vehicle in advance and wait for the delivery of the vehicle after some time after availing of auto banking loans.
This facility is applicable for vehicles of the following companies:
One can book the vehicle in advance and wait for the delivery of the vehicle after some time after availing of auto banking loans.
This facility is applicable for vehicles of the following companies:
§ Suzuki
§ Honda
§ Dewan
§ Indus.
o Prompt delivery of the automobile:
The vehicle is delivered to the customer in no time.
This prompt service is offered to all auto banking loans borrowers.
The vehicle is delivered to the customer in no time.
This prompt service is offered to all auto banking loans borrowers.
o Auto banking loans for cars or vehicles which are used: The
funding option can be availed of for as long as 5 years.
The conditions governing the
funding of cars which are used states that the vehicle which is used should be
older than 5 years.
Salient features of auto banking loans:
Salient features of auto banking loans:
o Age of the applicant of auto banking loans should range
between 23 to 65 years.
o The amount of fund which is entitled to be financed under
auto banking loans is $3572 to $83334.
o The aim of auto banking loans includes funding of non
commercial automobiles.
o The down payment or the deposit amount should be 15% of the
total value.
o The following kinds of automobiles can be owned with the
help of auto banking loans:
o Brand new vehicles
o Vehicles which are used
o Vehicles which are imported.
- Escrow account under mortgage banking
loans:
An escrow account is an account which is mainly held by banking loan providers.
The escrow account is an account from which money for the payment of insurance charges and property taxes are debited.
In a nut shell, mortgage banking loan services offered by a bank can be of the following categories:
o Government loans
o Construction loans
o Lot loans
o Conventional loans
o Portfolio loans
o Non traditional financing
o Pre approved loans
Student banking loans:
Student banking loans are provided to students for the purpose of completing ones education. There are several banks offering student banking loans.
However, the student banking loans packages may differ from one bank to another.
There are several student banking loans offered by banks in the United States of America.
List of student banking loans:
o Federal Stafford
Loan: Federal Stafford student
banking loans under this category have the following features.
There are two varieties of the federal Stafford student banking loans:
There are two varieties of the federal Stafford student banking loans:
o Subsidized student banking loans
under subsidized student banking loans, the government makes all the payments of the interests while the student is on the rolls of the school register for a minimum period.
These types of student banking loans do not require the student to make any payments whether the principle amount or the interest amount before six months after majoring in a particular subject or after leaving school.
under subsidized student banking loans, the government makes all the payments of the interests while the student is on the rolls of the school register for a minimum period.
These types of student banking loans do not require the student to make any payments whether the principle amount or the interest amount before six months after majoring in a particular subject or after leaving school.
o Unsubsidized student banking
loans
In case of subsidized student banking loans, one has the liberty to postpone the payment of the interest.
After a student passes out or finishes school, the student is required to make all the payments including the interests.
In case of subsidized student banking loans, one has the liberty to postpone the payment of the interest.
After a student passes out or finishes school, the student is required to make all the payments including the interests.
o Discounts on student banking loans
(Stafford loans):
Student banking loans provide the incentive of allowing discounts on the rate of interest to all the eligible students.
Student banking loans provide the incentive of allowing discounts on the rate of interest to all the eligible students.
o Federal plus banking loans:
Federal plus student banking loans are provided to graduates who are about to complete their graduation.
The federal plus banking loans are also offered for undergraduate students who are dependent.
The student who applies for federal plus student banking loans do not apply due to financial emergency.
This entitles a student to avail of the federal student banking loans to fund for the entire course of education.
There is however criteria that needs to be fulfilled.
A student is expected to fill up a form intended for financial help, prior to applying for the federal plus student banking loans.
The credit history of the student applying for the federal plus student banking loans need to be verified.
Federal plus student banking loans are provided to graduates who are about to complete their graduation.
The federal plus banking loans are also offered for undergraduate students who are dependent.
The student who applies for federal plus student banking loans do not apply due to financial emergency.
This entitles a student to avail of the federal student banking loans to fund for the entire course of education.
There is however criteria that needs to be fulfilled.
A student is expected to fill up a form intended for financial help, prior to applying for the federal plus student banking loans.
The credit history of the student applying for the federal plus student banking loans need to be verified.
o Federal consolidation banking loans:
Federal consolidation student banking loans provide the following Supplemental student banking loans:
Features of supplemental student banking loans:
Federal consolidation student banking loans provide the following Supplemental student banking loans:
Features of supplemental student banking loans:
§ Based on credit
§ Allows a joint application holder (a person catalyzing
qualification of student banking loans faster).
§ Eligibility depends on the credit history of the applying
individuals.
§ One is not required to pay the principle or the interest
amount of the fund during the time the student spends in school.
§ The supplemental student banking loans allows an individual
to avail of the banking loans through the Internet.
Personal banking loans:
Personal banking loans comprise of the banking loans availed of an amount which is less than $5000.
The personal banking loans are usually unsecured banking loans.
Unsecured banking loans because in order to apply for personal banking loans. An individual is not required to provide any security or collateral.
Personal banking loans are provided by banks depending on the credit history of the applicant.
Personal banking loans are availed for purposes different from what one gets to see in other categories of banking loans.
The personal banking loans may be availed of for spending a holiday, or paying off ones medical expenses sect.
Similar to the other banking loans, personal banking loans are also subjected to the banking laws and the banking regulations.
The rate of interest offered by different personal banking loans providers may vary depending on factors including inflation, federal reserves, rate of economic growth of the country and also the type of rate of interest one has applied for.
The rate of interest may be either fixed or variable.
The rate of interest of personal banking loans fluctuate depending on the fixed rate type of interest or the variable type of interest rate opted for.
Benefits of personal banking loans:
o One can avail of withdrawing money for free for 10 months.
o An individual applied for personal banking loans can repay
the amount prior to the term of the banking loans end.
o An individual is able to repay the full amount within a
short span of time. The individual can enjoy benefits low interest rate
provided the individual has opted for a variable plan of rate of interest.
o can protect ones personal banking loans repayments from
untoward incidents by insuring.
o Making payments can be done through auto payments which
deducts the amount from the account.
o Payments can also be made through the Internet or by tale
banking. This saves an individual from defaulting in payments and shelling out
default fees
Given below is a list of the companies offering banking loans in the different categories:
o World savings bank
o Citibank
o Nations choice mortgage.
o The money store
o Price line mortgage
o Virtual bank.
o American Interact mortgage.
o Bank of America
NA.
o Aversive
o Direct mortgages.
o Agency Mortgage Corporation.
o Windsor financial mortgage corporation
o Mortgage capital associates.
o Americas plaza west financial
o Epix funding
o First federal bank of California
o National bank of Kansas
City
o Union bank of California,
NA
o Home finance of America.
o American Enterprise bank of Florida.
o Advent lending group, Inc.
o One mortgage network, Inc.
o First equity direct.
BANKING
STRUCTURE IN INDIA
Scheduled Banks in India
(A) Scheduled
Commercial Banks
|
Public sector Banks
|
Private sector Banks
|
Foreign Banks in India
|
Regional Rural Bank
|
|
(28)
|
(27)
|
(29)
|
(102)
|
|
·
Nationalized Bank
·
Other Public Sector Banks
(IDBI)
·
SBI and its Associates
|
·
Old Private Banks
·
New
Private Banks
|
|
|
(B) Scheduled Cooperative Banks
|
Scheduled Urban Cooperative
Banks (55)
|
Scheduled State Cooperative
Banks (31)
|
Here we more concerned about
private sector banks and competition among them. Today there are 27 private
sector banks in the banking Sector: 19 old private sector banks and 8 new private
sector banks. These new banks have brought in state-of-the-art technology
andAggressively marketed their products.
The Public sector banks are facing a stiff competition from the new private sector banks. The banks which
have been setup in the 1990s under the guidelines of the Narasimham Committee are referred to as NEW
PRIVATE SECTOR BANKS.
New Private Sector Banks
·
Superior Financial Services
·
Designed Innovative Products
·
Tapped new markets
·
Accessed Low cost NRI funds
·
Greater efficiency
INDIAN BANKING INDUSTRIES
The Indian banking market is growing at an astonishing rate, with Assets expected to reach US$1 trillion by 2010. An expanding economy, middle class, andtechnological innovations are all contributing to this growth. The country’s middle class accounts for over 320 million people. In correlation with the growth of the economy, rising income levels, increased standard of living, and affordability of banking products are promising factors for continued expansion?
The
Indian banking Industry
is in the middle of an IT
revolution, Focusing on the
expansion of retail
and rural banking. Players are becoming increasingly customer - centric
in their approach, which has resulted
in innovative methods of offering new banking
products and services.
Banks are now
realizing the importance of
being a big
player and are beginning to focus
their attention on mergers
and acquisitions to
take advantage of economies
of scale and/or comply
with Basel II regulation.” Indian banking industry assets
are expected to reach US$1 trillion by 2010 and are poised to receive a greater
infusion of foreign capital,” says Parthian Rajan, analyst in Clint’s
banking group and author of the report.” The banking industry should focus on
having a small number of large players that can compete globally rather than havinga
large number of fragmented players."
UPCOMING FOREIGN BANKS IN INDIA
By 2009 few more names is going
to be added in the list of foreign banks in India. This is as an aftermath of
the sudden interest shown by Reserve
Bank of India paving roadmap
for foreign banks in India
greater freedom in India.
Among them is the world's best private bank by Euro Money magazine, Switzerland's
UBS. The following are the list of foreign banks going to set up
business in India:-
- Royal Bank of Scotland
- Switzerland's UBS
- US-based GE Capital
- Credit Suisse Group
- Industrial and Commercial Bank of China s
INTRODUCTION TO THE ORGANIZATION
WE UNDERSTAND YOUR WORLD
The Housing Development
Finance Corporation Limited (HDFC) was amongst
the first to receive an ‘in principle' approval
from the Reserve Bank of India
(RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking
Industry in 1994. The bank was incorporated
in August 1994 in the name of 'HDFC Bank Limited', with its registered office
in Mumbai, India. HDFC Bank commenced
operations as a Scheduled Commercial Bank in January 1995.
HDFC is
India's premier housing
finance company and enjoys an
impeccable track record
in India as well as in international markets. Since its
inception in 1977, the
Corporation has maintained a consistent
and healthy growth in its operations to remain the market leader in mortgages.
Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed significant expertise
in retail mortgage loans to different market segments and also has a large
corporate client base for its housing related
credit facilities. With its
experience in the financial markets, a
strong market reputation, large
shareholder base and unique consumer franchise,
HDFC was ideally positioned to promote a bank in the Indian environment.
HDFC Bank began operations
in 1995 with a simple mission: to be a “World
Class Indian Bank.” We realized that
only a single minded focus on product quality and service excellence would help
us get there. Today, we are proud to
say that we are well on our way towards that goal.
COMPANY PROFILE
STRONG
NATIONAL NETWORK
HDFC BANK
|
|
March 2006
|
March 2007
|
March 2008
|
|
Citied
|
228
|
316
|
327
|
|
Branches
|
535
|
684
|
761
|
|
ATMs
|
1323
|
1605
|
1977
|
As of March 31, 2008, the Bank’s distribution network was at 761Branches
and 1977 ATMs in 327
cities as against 684 branches and
1,605 ATMs in 320
cities as of March 31, 2007. Against the regulatory approvals
for new branches in hand, the Bank expects to further expand the branch
network by around 150 branches by June 30, 2008. During the year, the Bank
stepped up retail customer acquisition
with deposit accounts increasing from 6.2 million to 8.7 million and total
cards issued (debit and credit cards) increasing from 7
million to 9.2 million. Whilst credit
growth in the banking system slowed down
to about 22% for the year ended
2007-08, the Bank’s net advances grew by 35.1% with retail
advances growing by 38.6% and
wholesale advances growing by 30%, implying a higher market share in
both segments. The transactional banking business also registered healthy
growth with cash management volumes increased by around 80% and trade services volumes
by around 40% over the previous year. Portfolio quality as of March 31, 2008
remained healthy with gross nonperforming assets at 1.3% and net non-performing
assets at 0.4% of total customer assets. The Bank’s provisioning policies for
Specific loan loss provisions remained higher than regulatory Requirements.
TECHNOLOGY USED IN HDFC BANK
In the era
of globalization each and every
sector faced the
stiff Competition frothier rivals.
And world also converted into the flat from the globe. After the policy of liberalization and RBI
initiatives to take the step for the private sector banks, more and more
changes are taking the part into it.
And there are create competition between the private sector banks and
public sector bank. Private sector banks are today used the latest technology
for the different transaction of day to day banking life. As we know that Information Technology plays
the vital role in the each and every industry and gives the optimum return from
the limited resources. Banks are service industries and today IT gives the innovative Technology application
to Banking industries. HDFC BANK is the
leader in the industries and today IT and HDFC BANK together combined they
reached the sky. New technology changed the mind of the customers and changed
the queue concept from the history banking transaction. Today there are different channels are
available for the banking transactions. We can see that the how technology
gives the best results in the below diagram.
There are drastically changes seen in the use of Internet banking, in a
year 2001 (2%) and in the year 2008 (25%). This type of technology gives the
freedom to retail customers.
|
Centralized Processing Units
|
|
Derived Economies of Scale
|
|
Electronic Straight Through
Processing
|
Reduced Transaction Cost
|
|
|
Data Warehousing , CRM
|
Improve cost efficiency, Cross
sell
|
|
|
Innovative Technology
Application
|
Provide new or superior
products
|
HDFC BANK is the very consistent
player in the new private sector banks. New private sector banks to withstand
the competition from public sector banks came up with innovative products and
superior service.
2001
2005
( %
customer initiated Transaction by Channel)
HDFC BANK PRODUCT AND
CUSTOMER SEGMENTS
PERSONAL
BANKING
|
Loan Product
|
Deposit Product
|
Investment & Insurance
|
|
|
|
|
Cards
|
Payment
Services
|
Access To Bank
|
--------------------------------
Forex
Services
--------------------------------
|
|
Mobile
Banking
|
WHOLESALE BANKING
|
Corporate
|
Small and Medium Enterprises
|
Financial Institutions and Trusts
|
|
·
Funded Services
·
Non Funded Services
·
Value Added Services
·
Internet Banking
|
·
Funded Services
·
Non Funded Services
·
Specialized Services
·
Value added services
·
Internet Banking
|
BANKS
·
Clearing Sub-Membership
·
RTGS – sub membership
·
Fund Transfer
·
ATM Tie-ups
·
Corporate Salary a/c
·
Tax Collection
Financial Institutions
Mutual Funds
Stock Brokers
Insurance Companies
Commodities Business
Trusts
|
BUSINESS MIX
Total Deposits Gross Advances Net Revenue
Retail Wholesale
·
HDFC Bank is a consistent player in the private
sector bank and have a well balanced product and
business mix in the Indian as well as overseas
markets.
·
Customer segments (retail & wholesale)
account for 84% of Net revenues
( FY 2008)
·
Higher retail revenues partly offset by higher operating
and credit costs.
·
Equally well positioned to grow both segments.
.
NRI SERVICES
|
Accounts & Deposits
|
Remittances
|
|
Quick remit
India Link
Cheque Lockbox
Telegraphic/ Wire Transfer
Funds Transfer Cheques/DDs/TCs
|
|
Investment & Insurances
|
Loans
|
|
|
|
Payment Services
|
Access To Bank
|
|
·
NetSafe
·
Bill Pay
·
InstaPay
·
Direct Pay
·
Visa Money
·
Online Donation
|
·
Net Banking
·
One View
·
InstaAlert
·
ATM
·
Phone Banking
·
Email Statements
·
Branch Network
|
BUSINESS STRETEGY
HDFC BANK mission is to be” a World Class Indian Bank", benchmarking themselves
against international standards and
best practices in terms of product
offerings, technology, service levels, risk management and audit &
compliance. The objective is to build
sound customer franchises across distinct businesses so as to be a preferred
provider of banking services for target retail and wholesale customer segments,
and to achieve a healthy growth in profitability, consistent with the Bank's
risk appetite. Bank is committed to do
this while ensuring the highest levels of ethical standards, professional
integrity, corporate governance and regulatory compliance. Continue to develop new product and
technology is the main business strategy of the bank. Maintain good relation with the customers is
the main and prime objective of the bank.
HDFC BANK business strategy emphasizes the following:
- Increase market share in India’s expanding banking and financial services industry by following a disciplined growth strategy focusing on quality and not on quantity and delivering high quality customer service.
- Leverage our technology platform and open scaleable systems to deliver more products to more customers and to control operating costs.
- Maintain current high standards for asset quality through disciplined credit risk management.
- Develop innovative products and services that attract the targeted customers and address inefficiencies in the Indian financial sector.
- Continue to develop products and services that reduce bank’s cost of funds.
- Focus on high earnings growth with low volatility.
INSIDE HDFC
FIVE
“S”, PART OF KAIZEN
WORK
PLACE TRANSFORMATION
Focus
on effective work place organization
Believe in
“Small changes lead
to large improvement”
Every
successful organization has their own strategy to win the race in the
competitive market. They use some technique and methodology for smooth running
of business. HDFC BANK also acquired the
Japanese technique for smooth running of work and effective work place
organization.
Five
‘S’ Part of Kaizen is the technique
which is used in the bank For easy
and systematic work place and
eliminating unnecessary things from the work place.
BENEFIT OF
FIVE “S”
- It can be started immediately.
- Every one has to participate.
- Five “S” is an entirely people driven initiatives.
- Brings in concept of ownership.
- All wastage is made visible.
FIVE ‘S’
Means:-
|
S-1
|
SORT
|
SEIRI
|
|
S-2
|
SYSTEMATIZE
|
SEITON
|
|
S-3
|
SPIC-N-SPAN
|
SEIRO
|
|
S-4
|
STANDARDIZE
|
SEIKETSU
|
|
S-5
|
SUSTAIN
|
SHITSUKE
|
(1) SORT:-
It focuses on eliminating unnecessary
items from the work place. It is
excellent way to free up valuable floor space. It segregates items as per
“require and wanted”.
|
Frequently Required
|
|
Less Frequently
Required
|
|
Remove everything from workplace
|
|
Wanted but not required
|
|
Junk
|
(2) SYSTEMATIZE:-
Systematize is focus on efficient and effective
Storage method. That means it identify, organize and arrange retrieval. It
largely focuses on good labeling and identification practices. Objective: - “A place for everything and
everything in its place”.
(3) SPIC- n - SPAN:-
Spic-n-Span focuses on regular clearing
and self inspection. It brings in the sense of ownership.
(4) STANDERDIZE:-
It focuses on simplification and
standardization. It involves standard rules and policies. It establish checklist
to facilitate autonomous maintenance of workplace. It assigns responsibility
for doing various jobs and decides on Five S frequency.
(5) SUSTAIN:-
It focuses on defining a new status and
standard of organized work place. Sustain means regular training to maintain standards
developed under S-4. It brings in self- discipline and commitment towards
workplace organization.
LABELLING OF FILE
|
FILE NUMBER
|
|
SUBJECT
|
|
FROM DATE
|
|
TO DATE
|
|
OWNER
|
BOX LABEL
For Example
1 / 3 / A / 6
1 – Work
Station (1)
3 – Drawer (3)
A - Shelf (A)
6 – File Number
(6)
COLOUR CODDING OF FILE
|
DEPARTMENT
|
|
Welcome Desk
|
|
Personal
Banker
|
|
Teller
|
|
Relationship
Manager
|
|
Branch
Manager
|
|
Demat
|
|
Others
|
In the HDFC
BANK each department has their different color coding apply on the different
file. Due to this everyone aware about their
particular color file which is coding on it and they save their valuable
time. It is a part of Kaizen and also
included in the system of the Five ‘S’.Logic behind it that, the color coding is
always differentiating the things from the similar one.
HUMAN RESOURCES
The Bank’s staffing needs
continued to increase during the year particularly in the retail banking
businesses in line with the business growth. Total number of employees
increased from 14878 as of March31, 2006 to 21477 as of March 31,
2007. The Bank continues to focus on training its employees on a continuing
basis, both on the job and through training programs conducted
by internal and
externalfaculty.The Bank has consistently believed that broader employee
ownership of its shares has a positive impact on its performance and employee
motivation. The Bank’s employee stock option scheme so far covers around 9000
employees.
RUPEE EARNED – RUPEE SPENT
It is more important for every
organization to know about from where and where to spent money. And balanced between these two things rupee
earned and rupee spent are required for smooth running of business and
financial soundness. This type of watch
can control and eliminate the unnecessary spending of business. In this diagram
it includes both things from where Bank earned Rupee and where to spend.
HDFC BANK earned
from the’ Interest from Advances’ 51.14 % ,‘Interest reinvestment’ 27.12 %, bank earned commission exchange and brokerage of 15.25 %.
These are the major earning sources of the bank. Bank also earned from the Forex and
Derivatives and some other Interest Income. Bank spent 39.75 % on Interest
Expense, 30.27 % on Operating Expense and 14.58 % on Provision. Bank also spent Dividend and Tax on dividend,
Loss on Investment, Tax. As we discuss above that balancing is must between
these two for every organization especially in the era of globalization where
there are stiff competition among various market players.
RECENT DEVELOPMENT
The Reserve
Bank of India has
approved the scheme of amalgamation of Centurion Bank
of Punjab Ltd. with HDFC Bank Ltd. with effect from May 23,
2008.All the branches
of Centurion Bank of
Punjab will function
as branches of HDFC Bank with effect from May 23, 2008. With RBI’s approval, all requisite statutory and
regulatory approvals for the merger have been obtained. The combined entity
would have a nationwide network of 1167. Branches; a strong deposit base of around
Rs.1, 22,000 cores and net advances of around Rs.89,000 cores. The balance
sheet size of the combined entity would be over Rs.1, 63,000 cores.
Merger with Centurion Bank of Punjab
Limited
On March 27, 2008, the
shareholders of the Bank accorded their consent to a scheme of amalgamation of
Centurion Bank of Punjab Limited with HDFC Bank Limited. The shareholders of the Bank approved the issuance of one equity
share of Rs.10/- each of HDFC Bank
Limited for every 29
equity shares of Re.
1/- each held in Centurion Bank of Punjab Limited. This is
subject to receipt
of Approvals from the
Reserve Bank of India, stock
exchanges and Other requisite
statutory and regulatory authorities. The shareholders Also accorded
their consent to issue equity shares and/or warrants
convertible into equity
shares at the rate of
Rs.1,530.13 each to HDFC Limited and/or other promoter group
companies on preferential basis, subject
to final regulatory
approvals in this
regard. The Shareholders of the Bank have
also approved an
increase in the authorized capital
from Rs.450 cores to Rs.550 cores.
Promoted in 1995 by Housing
Development Finance Corporation (HDFC), India's leading housing finance company, HDFC
Bank is one of India's
premier banks providing a wide range of financial products and services to its
over 11 million customers across hundreds of Indian cities using multiple
distribution channels including a pan-India network of branches, ATMs, phone
banking, net banking and mobile banking. Within a relatively short span of
time, the bank has emerged as a leading player in retail banking, wholesale banking,
and treasury operations, its three principal business segments. The bank's
competitive strength clearly lies in the use of technology and the ability to
deliver world-class service with rapid response time. Over the
last 13 years, the bank has successfully gained
market share in its target
customer franchises while
maintaining healthy
profitability and asset quality.
As on March 31, 2008, the Bank had a network of 761
branches and 1,977 ATMs in 327 cities.
For the year ended March 31,
2008, the Bank reported a
net profit of INR 15.90
billion (Rs.1590.2crore),up
39.3%, over the corresponding
year ended March 31, 2007. As of
March 31, 2008 total deposits
were INR 1007.69 billion, (Rs.100,769 core) up 47.5% over
the corresponding year ended March 31,
2007. Total balance sheet size too grew by 46.0% to INR1, 331.77 billion (133177 cores). Leading Indian and international Publications
have recognized the bank for its performance and quality.
Centurion Bank of Punjab is
one of the leading new generation
private sector banks in India.
The bank serves individual consumers, small
and medium businesses
and large corporations
with a full range of financial
products and services for investing,
lending and advice on financial
planning. The bank offers its customers an array of wealth management products such as mutual
funds, life and general insurance and
has established a
leadership 'position'.
The bank
is also a strong
player in foreign exchange
services, personal loans, mortgages and agricultural loans. Additionally the
bank offers a full suite of NRI banking
products to Overseas
Indians. On 29th August 2007,
Centurion Bank of Punjab merged with Lord Krishna
Bank (LKB), post obtaining all
requisite statutory and regulatory
approvals. This merger has
further strengthened the geographical reach of the Bank in major towns
and cities across the country, especially in the State of Kerala, in addition
to its
existing dominance in
the northern part
of the country.Centurion Bank
of Punjab now
operates on a strong
nationwide franchise of 404
branches and 452 ATMs in 190 locations across the country, supported
by employee base
of over 7,500
employees.In addition to
being listed on
the major Indian
stock exchanges, the Bank’s shares
are also listed
on the Luxembourg Stock Exchange.
ACHIEVEMENT IN 2007
|
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
Pacific HRM Congress:
|
|
|
Business Today
|
|
|
Dun & Bradstreet – American Express Corporate Best
Bank Award 2007
|
|
|
The Bombay
Stock Exchange and Nasscom Foundation's Business for Social Responsibility
Awards 2007
|
|
|
Outlook Money & NDTV Profit
|
Best Bank Award in the Private
sector category.
|
|
The Asian Banker Excellence in Retail Financial Services
Awards
|
|
|
Asian Banker
|
|
COMPETITIVE SWOT ANALYSIS WITH ICICI BANK
|
|
STRENGTHS
|
WEAKNESSES
|
|
O
P
P
O
R
T
U
N
I
T
I
E
S
|
S – O
Strategies
Strength: Large Capital
base.
Opportunity:
Market Expansion.
Strategy: Deep
Penetration into
Rural Market.
|
W – O
Strategies
Weakness: Workforce
Responsiveness.
Opportunity:
Outsourcing of Non –
Core Business.
Strategy:
Outsource Customer
Care & other E-Helps.
|
|
T
H
R
E
A
T
S
|
S – T
Strategies
Strength: Low
operating costs
Threat:
Increased Competition
from others Pvt. Banks.
Strategy: Steps
to Ensure
Loyalty by old
Customers.
|
W – T
Strategies
Weakness: Not
Equal to
International Standards.
Threat: Entry of
many Foreign
Banks.
Strategy:
Consider additional
benefits
|
Detailed Analysis:
i.
Strength
- Opportunity Analysis.
Strength:
It is well know that ICICI Bank
has the largest Authorized Capital Base in the Banking System in India
i.e. having a total capacity to raise Rs. 19,000,000,000 (Non – Premium Value).
Opportunity:
Seeing the present financial & economic
development of Indian Economy and
also the tremendous
growth of the Indian Companies including
the acquisition spree followed
by them, it clearly
states the expanding market for finance
requirements and also the growth in surplus disposal income of Indian citizens has given a huge rise in savings
deposits – from the above point it is clear that there is a huge market
expansion possible in banking sector in India.
Strategy:
From the
analysis of Strength
& Opportunity the
simple and straight possible
strategy for ICICI Bank
could be - to penetrate into the rural sector of India for expanding its
market share as wellas leading all other Pvt. Banks from a
great gap.
Strength - Threat Analysis.
Strength:
ICICI Bank is not only known for large capital but
also for having a low operations cost though having huge number of branches and
services provided.
Threat:
After showing a
significant growth overall, India is able to attract many international financial &
banking institutes, which are known
for their state of
art working and
keeping low operation
costs.
Strategy:
To ensure that ICICI Bank keeps going on with low operation
cost & have continuous business it should simply promote it self well &
provide quality service so as to ensure customer loyalty, therefore
guaranteeing continuous business.
Weakness - Opportunity
Analysis.
Weakness:
It is well known that workforce responsiveness in
banking sector is Very low in Indian banking sector, though ICICI Bank has better responsible staff but
it still lacks behind its counterparts like HSBC, HDFC BANK, CITI BANK, YES BANK
etc.
Opportunity:
In the present world, India is preferred one of the best
places for out – sourcing of business
process works and many
more.
Strategy:
As international companies are reaping huge benefits after
out-sourcing there customer care & BPO’s, this same strategy should
be implemented by ICICI Bank so as to have proper
customer Service without hindering customer expectations.
Weakness -
Threat Analysis.
Weakness:
Though having a international presence, ICICI Bank
has not been able to keep up the international standards in providing customer service
as well as banking works.
Threat:
In recent times, India has
witnessed entry of many international banks like
CITI Bank, YES Bank etc
which posses an
external entrant threat to ICICI Bank – as this Banks are known for
their art of working and
maintain high standards
of customer service.
Strategy:
After having new entrants threat, ICICI Bank should
come up with More additional
benefits to
its customer or may be even
reduce some fees for any
additional works of
customers.
HSBC PROFILE
Founded :
Hong Kong (1865)
Founder
:
Thomas
Sutherland
Headquarters:
London, England,
UK
Key people:
Stephen green,
Chairman-
Michael
geoghegan, ceo
Industry:
Finance and insurance
Products:
Financial
services
Revenue:
$70.1
billion (2006)
Operating income:
$54.8(2006)
Net income:
$15.8 billion (2006)
Employees:
312000
Subsidiaries:
HSBC bank plc, the Hong Kong and Shanghai Bank Corporation, HSBC bank USA, HSBC
Mexico, HSBC Bank Brazil,
HSBC Finance
Slogan: The world’s local
bank
Website: http://www.hsbc.com
- Ranked the third largest company in the world in Forbes global 2000.
- The bank is fourth largest corporation in the world in terms of assets.
- The HSBC logo, known as the hexagon,ie derived from the Hong Kong and shanghai banking corporation 19th century house flag, itself derived from the Scottish flag, which is the angular cross that saint Andrew was crucified upon.
WHAT IS HSBC?
“We are the World’s Local Bank.”
Headquarter in London; HSBC is one of the largest banking
and financial services organization in the world.
HSBC international network comprises over 10,000
offices in 83 countries and territories in Europe, the Asia pacific region, the
Americas, the Middle East
and Africa.
With listing in the London,
honking, New York, Paris
and Bermuda stock exchanges around 20000
shareholders in some 100 countries and territories hold shares in HSBC holdings
plc. The shares are traded on the New
York stock exchange in the form of American
depositary receipts.
Vision
Path must always be guided by integrity,
thoughtfulness and creativity. Our solutions, focused on the needs of our
clients. Thus we will become the insurer people trust and turn to, the leader
the industry looks to.
Mission
To protect our personal clients, their families and
way of life. To protect our corporate clients, their business and employees.
Goals
Provide solutions that exceed or meet the needs and
aspirations of our clients. Set the industry standard for service delivery and
value creation. Influence and enhance the development of our industry. Be
valued by our clients, shareholders and staff.
HSBC BANK, INDIA
HSBC BANK, INDIA
HSBC bank was founded in 1865 to serve the needs
of the merchants of the china coast and finance the growing trade between China, Europe and the United States. The origins of HSBC
bank in India can be traced
back to October 1853 when he Mercantile Bank of India,
London and china were founded in Bombay.
In 1959, the Honking and shanghai banking
corporation acquired the mercantile bank of India and the head office of the
HSBC bank was established in Mumbai. In 1987, HSBC bank gave India its first ATM.
THROUGH THE 1990S, HSBC bank blossomed into the
one of the leading baking and financial services organizations of the world. As
on June 30, 2004, the bank has over 110 million customers worldwide with assets
over us$1,154 billion.
The organization's adaptability, resilience and
commitment to its customers have further enabled it to service through
turbulent times and prosper through good times over the past the 150 years.
NAINA LAL KIDWAI(BOARD OF DIRECTOR)
Nina Lal Kidwai (born 1957) was the
first Indian
woman to graduate from the Harvard
Business School. As of 2006, she is the Chief Executive Officer of The Hongkong and Shanghai Banking Corporation India
branch.
HISTORICAL BACKGROUND
The antecedents of the HSBC group in India can be traced back to October 1853 when
the mercantile bank of India,
London, and china were founded in Bombay. Starting with
authorized capital of Rs.5 million, the mercantile bank soon opened office London, Madras (Chennai), Colombo and Kandy, followed
by Calcutta, Singapore, Honking and shanghai by
1855. The following hundred years were in many ways propitious for the
mercantile bank. In 1950 it moved into its head office building in Mumbai at
flora fountain.
The acquisition in 1959 by the Honking and shanghai banking corporation limited
of the mercantile bank was a decisive factor in laying the foundation for
today’s HSBC group. Founded in 1865 to sere the needs of the merchant of the
china coast and finance the growing trade between china, Europe, and the United States,
HSBC has been an international bank from its earliest days.
After the Honking and shanghai banking corporation acquired the mercantile
bank, the flora fountain building became and remains to this day, the head
office of the HSBC group in India.
The HSBC group has an international pedigree,
which is unique. Many of its principal companies opened for business over a
century ago and they have a history, which is rich in variety and achievement.
The HSBC group is named after its founding member. The Honking and shanghai
banking corporation limited, which is established in 1865 to finance the
growing trade between china and Europe.
Company
History
A global pedigree
HSBC Global Asset Management draws upon a long history of serving clients of
the HSBC Group, tracing its roots back to the foundation of the Hong Kong and Shanghai Banking Corporation in 1865. The
HSBC Group has identified asset management as a key constituent of the HSBC
Group’s wealth management strategy and at HSBC Investments; we have been
dedicated to managing assets on behalf of our clients for more than 30
years.
In 1994 the HSBC Group recognized the increasingly global nature of financial
markets, would create the need for a credible global asset management
organization to ensure delivery of the best possible solutions for clients. In
response, the separate regional asset management businesses of HSBC were
unified to create a single powerful investment manager aimed at delivering
global investment capabilities combined with significant local expertise
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In 2001, following the integration of CCF and its investment businesses into
HSBC, a new global strategy was launched for asset management. The strategy
aimed to create a core proprietary global investment management business – HSBC
Asset Management, operating alongside a series of Specialist investment
businesses, namely: Sinopia for quantitative and structured products, HSBC
Specialist Investments for property and infrastructure investments, and HSBC
Multimanager for best-in-class ‘open architecture’ investments and HSBC
Alternative Investments for single-manager hedge fund strategies.
In 2004, following a strong period of growth in HSBC’s investment businesses, a
new strategy was announced for the investment businesses of HSBC. The strategy
is intended to position HSBC for market leadership in the provision of
investment solutions that meet client needs and involved a reorganization of
HSBC’s investment businesses including HSBC Management and HSBC Investment
Management, leading to the creation of: HSBC Investments.
2008, HSBC Investments is re-named to HSBC Global Asset Management. The name
change is more closely to align it with Global Banking and Markets (the new
name for Corporate, Investment Banking and Markets).
A concise
history
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HSBC forms Hong Kong based Wardley
as a wholly owned merchant banking subsidiary.
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The European arm of HSBC Asset Management is conceived with the
purchase of James Capel, a leading and well established international
securities company.
The addition of New York based Marin vest establishes the US
arm of HSBC Asset Management.
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1992
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Consolidation in Europe with the acquisition of the Midland Bank Group.
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1994
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Regional companies are brought together under the name HSBC Asset
Management, a single investment manager offering global investment capability
combined with significant local expertise.
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2000
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HSBC Group purchases CCF Bank,
France - CCF Capital Management in Paris
joins HSBC Asset Management.
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2001
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The market for asset management solutions has grown rapidly and
investors’ requirements have become ever more sophisticated. In response to
this, the asset management business of HSBC was re-organized at the end of
2001 to provide a full range of sophisticated services under the name Asset
Management Services, comprising the core business; HSBC Asset Management
completed its acquisition of China Securities Investment Trust Corporation, Taiwan's
premier asset management company, in August.
HSBC Asset Management (India)
Private Limited is incorporated in December 2001.
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2002
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New investment and marketing
office established in India.
Co-operation with HSBC Trinkaus Capital Management and its parent HSBC
Trinkaus & Burkhardts.
HSBC Asset Management (India)
Private Limited, the Investment Manager to HSBC Mutual Fund launches its
first four schemes in December 2002.
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2003
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Integration of Bital's fund management business in Mexico following its purchase by
HSBC.
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2004
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Integration and development of
investment management activity in Bermuda
following the acquisition of Bank of Bermuda.
1st December HSBC announces a reorganization of
its investment management businesses as part of a new strategy designed to
drive further growth.
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2005
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HSBC Asset Management is replaced by HSBC Investments and HSBC
Halbis Partners during 2005 (subject to local legal and regulatory approvals
in all jurisdictions).
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2006
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HSBC receives approval for joint
venture fund management company in China. HSBC Halbis Partners is
renamed Halbis Capital Management.
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2008
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HSBC Investments is re-named to HSBC Global Asset Management
(subject to local legal and regulatory approvals in all jurisdictions).
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COMPETITIVE STRENGTHS
1. Wide
international Network
2. Comprehensive
range of products and services
3. Long
term customer orientation
4. Quick
response time
Hong Kong's
waterfront is one of the world's most familiar panoramas. Backed by the hills
rising to Victoria Peak, Hong Kong's
financial and commercial centre includes a number of remarkable buildings.
Without doubt one of the most eye-catching is the headquarters of The Honking and Shanghai Banking Corporation Limited, designed by renowned British architect Sir Norman Foster.
Without doubt one of the most eye-catching is the headquarters of The Honking and Shanghai Banking Corporation Limited, designed by renowned British architect Sir Norman Foster.
Long-term
assets:
Since its founding in 1865, the site of The Honking
and Shanghai Banking Corporation Limiter’s successive headquarters buildings
has remained the same. Viewed by the Bank as a long-term asset, the present
building was commissioned in 1980 and completed in November 1985. It was
designed for the Bank's exclusive use by Sir Norman Foster and is considered
one of the finest and most innovative bank buildings in the world.
The project called upon all Foster's ingenuity.
The Bank required a very much larger building but it had to fit on the original
site area; its interior layout needed to be as flexible as possible to
accommodate new technology and the changing needs of a fast-expanding organization
until well into the next century; and it had to be constructed quickly on a
very confined site.
INTERNATIONAL OFFICES
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Offices
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Australia
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34
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Bahamas
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4
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Bahrain
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1
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Bangladesh
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9
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Brunei
Darussalam
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12
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China,
Mainland
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56
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Hong
Kong SAR
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322
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India
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47
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Indonesia
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14
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Japan
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4
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Korea,
Republic of
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13
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Macau
SAR
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6
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Malaysia
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2
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Maldives
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1
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Mauritius
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12
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New
Zealand
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7
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Pakistan
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5
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South
Africa
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1
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Philippines
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25
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Singapore
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16
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Awards and rankings
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Awards
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October 2007
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Interest Rate Derivatives
House of the Year
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July 2007
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Best Cash Management House
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July 2007
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Best Risk Management House
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May 07
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Ranked number 1 – Single-bank
online platforms - Research & analytics
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May 07
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Ranked number 1 - Who's best
where? - Asia & Middle East
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May 07
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Best for currencies – Hong Kong dollar, Chinese Yuan, Middle Eastern
currencies, Asian currencies, US$/£
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May 07
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Ranked number 1 - Treasury
outsourcing
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February 2007
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Best International Islamic Bank
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February 2007
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Best Sukuk House
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February 2007
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Best Project Finance House
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Feb 2007
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Best Project Finance Deal
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February 2007
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Best Sukuk Deal
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November 2006
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Global Cash & Working
Capital Management Bank of the Year
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November 2006
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Best Consumer Internet Bank –
Global
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October 2006
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First place in International
Cash Management Poll
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July 2006
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Best Sub-Custodian Worldwide
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September 2004
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Global Bank of the Year
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WEALTH MANAGEMENT
What is wealth management?
The term “wealth management” has been defined as
the coordination of a client’s investment tax and estate plans into
comprehensive plans to achieve their personal goals. What distinguish their
services from other type of financial advisors emphasizes the uniqueness of
their client relationships—relationships that are bound in terms of
encompassing all areas of a client’s financial life and deep respect to the
advisors intimate knowledge of a clients value and priorities.
Affluent individuals often need sophisticated and
strategic guidance to capitalize on opportunities to preserve, grow and
transfer their wealth. In addition, a desire exists within wealthy family to
simplify the management of multigenerational needs and lesson the profound
emotional impact of wealth on family members.
Financial advisor can provide comprehensive,
integrated wealth management strategies to address your wealth management
needs.
The outlook of the modern day investors has undergone a dramatic change. In the
changed fiscal scenario with drastic fall in the interest for investment and the
volatile capital market with limited investment options, ULIP comes to the
rescue of the prudent investors. Investment in insurance has become the style
of the day. The individual looks at buying an insurance policy more of an
investment, which comes with the additional benefits of life cover and tax
benefit also.
ULIP - Unit Linked Insurance Policy - ULIP is a unique, multiple benefits Plan
which combines the basic benefit of life insurance, tax benefits and accident
insurance cover. The plan offers tax rebate of 20% on the amount invested under
Section 88 of the Income Tax Act within the overall limit of Rs.
60,000/-.
With the Insurance industry booming up in the Indian economy following liberalized regulations from the IRDA, the ULIPs have regained their strength. This was further boosted by the private insurance companies with foreign partners. .
With the Insurance industry booming up in the Indian economy following liberalized regulations from the IRDA, the ULIPs have regained their strength. This was further boosted by the private insurance companies with foreign partners. .
Under ULIPs, the premiums are invested after deducting the charges and fees in
a fund similar to that of a mutual fund along with a life insurance
cover.
The IRDA regulates that a unit-linked plan must be offered to the investor with
an option to select among debt, balanced and equity funds. For example, if an
investor opts for a unit-linked endowment policy, he can choose to invest his
premiums in debt, balance or equity funds. If he selects a debt fund, the
majority of his premium will be invested in debt securities like gilts and
bonds. If the option is equity, a major portion of the premium is invested in
the equity market. The selection of policy depends upon its risk profile and
the investment needs. Higher the risk, higher would be the returns and vice
versa.
Description of the current state
Why ULIPs?
Firstly, ULIP is a bundled product of investments and insurance proceeds. So if
you have a ULIP invested in equities, you are exposing your life insurance
monies as well as your invest able surplus to the vagaries of equity markets.
While it is fine and even sensible to let your invest able assets get an equity
flavor, the same cannot be said about your life insurance monies, which to a
large extent should be sacred. The volatility in equity markets can disturb the
calmest of minds and the last thing you want to see is your nest egg being
eroded by the latest slide in equity markets. A ULIP policyholder has the
option to invest in a variety of funds, depending on his risk profile. If one
does not have the appetite to invest in equity, they can choose a debt or
balanced fund.
ULIPs are also suitable for individuals who are already adequately insured and
are reasonably well-informed and savvy to take active investment decisions by
using the `switch option' that is provided to a ULIP policyholder. Also
policyholders with regular endowment plans who are not satisfied with the 4-6%
returns can consider taking a ULIP with a lower equity component. It is best if
insurance-seekers tread the middle path and choose balanced plans (with about
50-60% equity component). Ideally they need to avoid taking the aggressive 100%
equity ULIP, which could needlessly expose their assets to market
volatility
When ULIPs were introduced, they had a few takers. The schemes had low
allocations and high charges. As the markets have matured and competition has
crept in, it’s only natural that allocations have gone up and charges have gone
down. Illustrating how well ULIPs have been doing in the recent past, it can be
seen that ‘Demands are always increasing and the main thing is that they are
keeping pace with global trends, with ULIPs performing well across the board.
Points to be considered before switching by a
prudent Investor:
- YourLongTermgoals
give a thought to your long term goals. Will switching at this point mean
deviating from your long term financial planning or will it bring in large
benefits.
- .YourAssetallocation
what does your asset allocation say? What component of it constitutes of ris
and safety instruments. Decide how much you need to divert towards equity
- .YourRiskappetite
How much risk can you take? What is your appetite? If you are not market savvy
you’d rather switch and book at least part profits now
- YourAge
If you are young you do not need to really worry about timing the market – your
ULIPs will continue to earn. But if you are around 40-45 years or your policy
is going to mature in the next few years may be you should consider swithing to
make the most of what ever you have earned. Your decision to switch should be
based on the time left to maturity.
- UrgentNeedformoney
Besides if you have any pressing need for which you have bought the ULIP you
could consider - before the policy matures - takes a part of it.
REASONS FOR POPULARITY OF ULIP:
1. ULIPs offer a twin benefit: – ULIPs
serve the purpose of providing life insurance combined with savings at
market-linked returns. This is more beneficial to the investor as compared to
his investment in a mutual fund which does not offer a life cover. Moreover,
they offer transparent disclosure, monthly portfolios and daily NAVs (net asset
values).
2. ULIPs have multiple investment options:
The individuals have an option of investing
based on his market analysis and his risk profile. Generally there are three
categories of ULIPs.
• Aggressive ULIPs (which can typically
invest 80%-100% in equities, balance in debt)
• Balanced ULIPs (can typically invest around
40%-60% in equities)
• Conservative ULIPs (can typically invest up
to 20% in equities)
3. ULIPS are Flexible:
The individuals are allowed to switch
between the ULIP variants outlined above to capitalize on investment
opportunities across the equity and debt markets. Free switches are an
important feature that allows the informed individual/investor to benefit from
the vagaries of stock/debt markets. For instance, when stock markets were on
the brink of 7,000 points (Sensex), the prudent investor would prefer to shift
his assets from an Aggressive ULIP to a low-risk Conservative ULIP.
As
generally advocated by the mutual fund industry, ULIPs also facilitate SIP to
the investors. With an SIP, individuals invest their funds regularly over time
intervals of a month/quarter and don't have to worry about `timing' the stock
markets. An added benefit with ULIPs is that individuals can also invest a one-time
amount in the ULIP either to benefit from opportunities in the stock markets or
if they have an ingestible surplus in a particular
year that they wish to put aside for future. The popularity of ULIPs may
have helped in bringing down charges and raising allocations. As markets grow
and get more complex, players get more competitive and margins get squeezed,
but then it’s something that has helped. However, some other companies aren’t
that open to admitting that the popularity of ULIPs has affected their strategies.
The growing popularity and affordability of ULIPs seems to be giving other
investment options like MFs a run for their money.
SWOT Analysis of ULIP as a Product:
STRENGTHS:
§ Investment
plus Insurance
§ High
Returns
§ Transparent
§ Flexibility
OPPORTUNITIES:
§ Large
Untapped Market
§ Products
for every age group and income level
§ Benefits
of both an investment and insurance product.
WEAKNESSES
§ Lack
of Awareness.
§ High
administrative charges
§ High
mortality charges.
§ High
fixed annual charges.
THREATS
§ Presence
of very strong competitors.
§ Aggressive
marketing by competitors.
§ Not
considered reliable.
§ People
prefer to invest in Mutual funds and Fixed Deposits..
Methodology of study
Bank basically means business and in business
collection of raw data allows the managers to see the real scenario and then
take a decision as per the data obtained. There are several implications in
this statement:
The bank gets a clear picture of the ULIP Market
scenario.
They can examine the available information in the
form of data to make a decision
This will help the bank in making necessary
decision.
The information can only be gathered by data
collection and then analyzing the available data.
Therefore, it can be said that the data collection
is an important part of the project.
DATA
COLLECTION
Procedure:
The
procedure that followed can be enlisted as below:
- Reading about the product
- Deciding on the objective to proceed.
- Developing Survey instruments
- Conducting personal interviews of different age-groups, sex, monthly income and occupation through a Questionnaire.
- Finally analyzing the data of various Geographic areas and trying to study with the other players.
Process
adopted:
Gaining knowledge about the product:
Reading about the product was the first step
undertaken. This gave not only in depth knowledge about what is been offered by
other players but also proved useful while developing the questionnaire.
Steps in the Development of the Survey
Instruments
The main
instruments required for survey was a well-developed questionnaire. The
questionnaire development took place in a series of steps as described below
The
people play an important part as a clear perception of people about the product
can be estimated and known. Studying the need levels of the people regarding
the Insurance product can be observed. It was very useful in knowing about
the requirements of the people.
2. Referred
to brochures and websites of competitors:
To
understand the competitors product brochures and websites of various players
were referred and a competitive analogy of all the information is been made.
Research Design:
A two stage Research was conducted:
1. Secondary Research:
Data was collected from websites and catalogues to
understand the product of the different players
2. Primary Research:
A Primary Research was conducted:
The questionnaire was prepared for the companies
and following areas covered:
Features offered by different banks
Consumer profile
Satisfaction level
Reason for the selection of specific Companies
ULIP
Desirable features of the product
Sampling Plan:
Elements:
The target population of the study included the
general population above the age of 21 yrs. It will further be based on
Confidence Interval Approach.
Sample size: 100 people
Canara Bank, HSBC and Oriental Bank of Commerce to
establish life insurance Company in India
05 March 2007
Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited and Oriental
Bank of Commerce (OBC) have today signed a non-binding Memorandum of
Understanding to jointly establish a life insurance company in India.
The new company will have exclusive access to the
customer bases of both of the State-owned banks, Canara Bank and OBC, and of
HSBC in India.
This comprises more than 40 million people and a nationwide network of 3,600
branches. This formidable distribution capability will be used by the company
to become a significant player in the country's rapidly expanding life
insurance industry.
Under the proposed agreement, Canara Bank will
take a 51 per cent stake in the new company, HSBC a 26 per cent interest and
OBC the remaining 23 per cent. The new life insurance company will be
capitalized at INR3,250 million (approximately US$73 million), of which HSBC
will contribute INR1,770 million (approximately US$40 million), Canara Bank INR1,020
million (approximately US$23 million) and OBC INR460 million (approximately
US$10 million). Under the terms of the agreement, HSBC will provide a range of
management services, which may include providing executives for senior roles.
Life insurance premiums in India grew at an annual rate of 21
per cent in the six years following the opening of the market to private
players in 1999, exceeding US$20 billion in 2005. From April to November 2006,
new life insurance premiums grew by 155 per cent, according to the business
figures released by India's
Insurance Regulatory and Development Authority. However, with a penetration
rate of only 2.5 per cent in 2005, India's nascent life insurance
market has considerable long-term growth potential. Canara HSBC Life Unit Linked Whole Life Plan
Canara HSBC Oriental bank of commerce life
insurance company ltd.Is a company formed jointly by three leading financial
organizations-Canara bank and Oriental bank of commerce, two of India’s largest
nationalized banks in terms of aggregate business and HSBC Insurance(Asia
Pacific) Holdings Ltd., a part of the HSBC group one of the largest banking and
financial organizations in the world. The share holding pattern of the joint
venture is as follows-Canara Bank -51%, HSBC Insurance (Asia Pacific) holding
ltd-26% & Oriental bank of commerce-23%.
At Canara HSBC Life, our aim is to provide you
with a transparent range of Life Insurance products backed by excellent
customer service. Our aim is to make life simple for you.
Over the years like most of us, the primary income earners of our families work hard to provide the best for our children, family and our loved ones and continuously strive to ensure a better future for them. But its only when you begin, you realize most of the investment opportunities available to you are not truly designed for you as per your needs. Now you can avail an opportunity where exists an ideal balance between protection and investments for your changing needs through life’s different stages. Additionally, the plan not only enables you to secure yourself but also the dreams of your loved ones’ and family – and that too for a lifetime!
Over the years like most of us, the primary income earners of our families work hard to provide the best for our children, family and our loved ones and continuously strive to ensure a better future for them. But its only when you begin, you realize most of the investment opportunities available to you are not truly designed for you as per your needs. Now you can avail an opportunity where exists an ideal balance between protection and investments for your changing needs through life’s different stages. Additionally, the plan not only enables you to secure yourself but also the dreams of your loved ones’ and family – and that too for a lifetime!
Canara HSBC Oriental Bank of Commerce Life
Insurance Company Limited Introduces to you Canara HSBC Life Unit Linked Whole
Life Plan, a unique investment linked plan which not only ensures protection
and investment returns but also covers you till age 99 years. The plan allows
you the flexibility of choice on amount of cover and flexibility of investing
in fund options matching to your risk profile and needs as well as Limited pay
options to suit your financial capabilities.
Key Benefit / Features of Canara HSBC Life Unit Linked Whole Life Plan
Key Benefit / Features of Canara HSBC Life Unit Linked Whole Life Plan
Whole of Life Protection -The plan
provides you life cover till age 99 years, while you pay for a fixed number of
years as per your financial capability
Limited Pay Option of 5 Years, 10 Years or
Up to Age 60 -To suit your earning capacity while you enjoy life cover
up till 99 years
Flexibility To choose your life cover -
And also Increase or reduce your sum assured to match your requirements through
the policy term
Flexibility of choosing investment funds -
Hassle free investment management product with market related returns.Investment
flexibility to choose from 5 funds to match your attitude to investment risk
and return.
Increase the value of your savings -
by contributing through Top Up premiums over and above your regular
premiums.
Liquidity By way of partial withdrawals
- from your funds, as and when required post completion of 3 years since
policy start date, to meet any unforeseen financial hardships.
Flexibility Of Switching/Redirection -
Between the available funds to take advantage of market movements or change in
risk attitude.
Benefits By way of Loyalty Additions -
(for premium payment term 10 years and above) up to end of policy term to give
you free allocation of extra units and enhance the value of your
investment
Option to continue your policy -
After 3 policy years even if, premiums are unpaid post three years due to
financial hardships.
Save tax - While investing
under section 80C & get tax-free maturity benefits under section 10 (10 D)
as per regulation of Income Tax Act, 1961
Entry Age
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31 Days
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65 Years
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Policy Term
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Up till age 99 Years
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Up till age 99 Years
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Maturity Age
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99 Year of Age
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99 Year of Age
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Premium
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Rs. 25,000 Per Annum
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No Limit
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Top-up
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Rs. 2,000
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25 % of total cumulative regular
Premium paid
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Life Cover
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5 X Annualized Premium
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Based on Underwriting Limit
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Premium Paying Term
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5 Years/10 Years till Age of 60
(Entry age less then or equal to 55 years)
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5 Years/10 Years till Age of 60
(Entry age less then or equal to 55 years)
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How Does The Plan Work?
You can choose your premium & the number of
years you want to pay, as per your desired cash flow or as per your protection
cover & investment need. A minimum of 5 times of your premium or more as
per your need shall be your sum assured under the plan.
You have 5 fund options to choose from based on
your risk appetite, in which post deduction of applicable charges the
investible premium shall be invested. In the market through the fund options
chosen by you.
Complete your Application form & submit it
with the initial premium and the necessary documents
We shall be notifying you on the requirement of
medical examinations, if required. Post assessment of your medical conditions
and health standard by the company, the policy shall be issued and sent to
you
You will be required to pay premiums every year
for the premium payment term as chosen by you. After deducting applicable
charges, the premium will be allocated to your unit account to create units in
the funds that you choose.
You have the option to pay your premium annually/semi-annually/
quarterly or monthly
On periodic basis, the company shall notify you
about your unit account summary.
Auto Cover Continuance Option
This Plan offers you on request (before the end of
revival period) to continue with your life coverage even if you are not in
position to pay your premium post first three policy years. Please refer to the
detailed brochure for more details on the same
Increase and Decrease of Sum Assured
You can choose to increase/ decrease your sum
assured to accommodate an increased need for Insurance cover, due to an
increase in your responsibility like Birth of a child etc. or lesser cover by
directing more funds towards Investments.
Tax Benefit
- Premiums paid under this policy will be eligible
for tax benefit under Section 80C and
- Any benefit amount paid to you will be eligible for tax benefits under Section 10(10D), as per prevailing Income Tax laws.
- Any benefit amount paid to you will be eligible for tax benefits under Section 10(10D), as per prevailing Income Tax laws.
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Fund Philosophy
LIQUID FUNDS
To generate
reasonable returns commensurate with low risk and high degree of liquidity.
This fund will primarily invest in portfolio constituted of money market and a
high quality debt securities.
DEBT FUNDS
To earn
regular income by investing in high quality debt securities this fund will
primarily invest in a portfolio of high quality bonds and other fixed and
floating rate securities issued by the government, government agencies and
corporate issuers. To maintain liquidity the fund will invest in cash and money
market instruments.
BALANCED FUNDS
To generate
capital appreciation and current income, through a judicious mix of investments
in equities and fixed income securities. This fund will invest in listed
equities and high quality fixed income securities, and money market instruments.
The fund intends to adopt a relatively balanced approach towards bonds and
equities exposure with the objective of achieving capital appreciation with
minimal short term performance volatility.
GROWTH FUND
To achieve
capital appreciation by investing predominantly in equities, with limited
investments in fixed income securities. This fund will invest in listed
equities and high quality fixed income and money market securities.The fund
intends to adopt a relatively aggressive approach towards bonds and equities
with the objective of achieving capital appreciation.
EQUITY FUND
EQUITY FUND
T0 generate long term capital appreciation from
active management of a portfolio invested in diversified equities. The
diversified equity fund is a long term growth fund. The funds primary objective
is to have high capital appreciation through investment in equities to maintain
the liquidity the fund will invest in cash and money market instruments.
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EQUITY FUND
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GROWTH FUND
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BALANCED FUND
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DEBT
FUND
|
LIQUID FUND
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|||||||||||
|
|
MIN.
|
MAX
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MIN.
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MAX.
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MIN.
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MAX.
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MIN.
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MAX.
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MIN.
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MAX.
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|||||
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EQUITY
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60%
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100%
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50%
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90%
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30%
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70%
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-
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-
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-
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-
|
|
DEBT SECURITIES
|
-
|
-
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10%
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50%
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30%
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70%
|
60%
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100%
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0%
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60%
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MONEY MARKET
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0%
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40%
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0%
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40%
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0%
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40%
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0%
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40%
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40%
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100%
|
|
RISK PROFILE
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HIGH
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MEDIUM TO HIGH
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MEDIUM
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LOW TO MEDIUM
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LOW
|
Mutual funds are associations or trusts of public
members who wish to make investments in the financial instruments or assets of
the business sector or corporate sector for the mutual benefit of its members.
The Fund manager (Asset Management Company) collects the money of these members
from their savings and invests them in a diversified portfolio of financial
assets with a view to reduce risks and to maximize their income and capital
appreciation for distribution to its members on pro-rata basis.
Mutual Funds
Operation Flow Chart
Mutual Funds Operation Flow Chart
Returns
Fund
ULIPs vs.
Mutual Funds: Who's better?
Unit Linked Insurance Policies (ULIPs) as an investment
avenue are closest to mutual funds in terms of their structure and functioning.
As is the case with mutual funds, investors in ULIPs is allotted units by the
insurance company and a net asset value (NAV) is declared for the same on a
daily basis.
Similarly ULIP investors have the option of
investing across various schemes similar to the ones found in the mutual funds
domain, i.e. diversified equity funds, balanced funds and debt funds to name a
few. Generally speaking, ULIPs can be termed as mutual fund schemes with an
insurance component.
However it should not be construed that barring
the insurance element there is nothing differentiating mutual funds from
ULIPs.
How ULIP & Mutual Fund can make you
Rich
The seemingly comparable structures there are
various factors wherein the two differ. In this article we evaluate the two
avenues on certain common parameters and find out how they measure up.
- Mode of investment/ investment amounts
Mutual fund investors have the option of either
making lump sum investments or investing using the systematic investment plan
(SIP) route which entails commitments over longer time horizons. The minimum
investment amounts are laid out by the fund house. ULIP investors also have the
choice of investing in a lump sum (single premium) or using the conventional
route, i.e. making premium payments on an annual, half-yearly, quarterly or
monthly basis. In ULIPs, determining the premium paid is often the starting
point for the investment activity. This is in stark contrast to conventional
insurance plans where the sum assured is the starting point and premiums to be
paid are determined thereafter. ULIP investors also have the flexibility to
alter the premium amounts during the policy's tenure. For example an individual
with access to surplus funds can enhance the contribution thereby ensuring that
his surplus funds are gainfully invested; conversely an individual faced with a
liquidity crunch has the option of paying a lower amount (the difference being
adjusted in the accumulated value of his ULIP). The freedom to modify premium
payments at one's convenience clearly gives ULIP investors an edge over their
mutual fund counterparts.
2. Expenses
In mutual fund investments, expenses charged for
various activities like fund management, sales and marketing, administration
among others are subject to pre-determined upper limits as prescribed by the
Securities and Exchange Board of India.
For example equity-oriented funds can charge their
investors a maximum of 2.5% per annum on a recurring basis for all their
expenses; any expense above the prescribed limit is borne by the fund house and
not the investors.
Similarly funds also charge their investors entry
and exit loads (in most cases, either is applicable). Entry loads are charged
at the timing of making an investment while the exit load is charged at the
time of sale.
Insurance companies have a free hand in levying
expenses on their ULIP products with no upper limits being prescribed by the
regulator, i.e. the Insurance Regulatory and Development Authority. This
explains the complex and at times 'unwieldy' expense structures on ULIP
offerings. The only restraint placed is that insurers are required to notify
the regulator of all the expenses that will be charged on their ULIP offerings.
3. Portfolio disclosure
Mutual fund houses are required to statutorily
declare their portfolios on a quarterly basis, albeit most fund houses do so on
a monthly basis. Investors get the opportunity to see where their monies are
being invested and how they have been managed by studying the portfolio. There
is lack of consensus on whether ULIPs are required to disclose their
portfolios. During our interactions with leading insurers we came across
divergent views on this issue. While one school of thought believes that
disclosing portfolios on a quarterly basis is mandatory, the other believes
that there is no legal obligation to do so and that insurers are required to
disclose their portfolios only on demand. Some insurance companies do declare their
portfolios on a monthly/quarterly basis. However the lack of transparency in
ULIP investments could be a cause for concern considering that the amount
invested in insurance policies is essentially meant to provide for
contingencies and for long-term needs like retirement; regular portfolio
disclosures on the other hand can enable investors to make timely investment
decisions.
ULIPs vs. Mutual Fund
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4. Flexibility in altering the asset allocation
As was stated earlier, offerings in both the
mutual funds segment and ULIPs segment are largely comparable. For example
plans that invest their entire corpus in equities (diversified equity funds), a
60:40 allotment in equity and debt instruments (balanced funds) and those
investing only in debt instruments (debt funds) can be found in both ULIPs and
mutual funds. If a mutual fund investor in a diversified equity fund wishes to
shift his corpus into a debt from the same fund house, he could have to bear an
exit load and/or entry load. On the other hand most insurance companies permit
their ULIP inventors to shift investments across various plans/asset classes
either at a nominal or no cost (usually, a couple of switches are allowed free
of charge every year and a cost has to be borne for additional switches).
5. Tax benefits
ULIP investments qualify for deductions under
Section 80C of the Income Tax Act. This holds well, irrespective of the nature
of the plan chosen by the investor. On the other hand in the mutual funds
domain, only investments in tax-saving funds (also referred to as equity-linked
savings schemes) are eligible for Section 80C benefits.
Maturity proceeds from ULIPs are tax free. In case
of equity-oriented funds (for example diversified equity funds, balanced
funds), if the investments are held for a period over 12 months, the gains are
tax free; conversely investments sold within a 12-month period attract
short-term capital gains tax @ 10%. Similarly, debt-oriented funds attract a
long-term capital gains tax @ 10%, while a short-term capital gain is taxed at
the investor's marginal tax rate.
ANAYLSIS
Q 1: - Age of people
The above chart is showing that most of the
customers are between 30 to 49 years of age
who avails maximum banking and investing services……
Q 2: - Annual Salary / Income
: -This can be analyzed from the last chart that
persons having annual salary of Rs. 1 lakh to 5 lakh avail maximum banking and
investing services because of efficient utilization of funds available…………
Q 3: - In which bank or any other financial
institute does your banking and investment with?
This reveals that people do banking with ICICI
Bank as compare to other banks.
Q 4: - Do you have invested your money for the
purpose of wealth management?
It suggests that customers now a days are more
interested in Middle term Investment plan (Mutual Fund)
Q 5: - Which one do you have?
It can be seen from last chart clearly that
maximum persons do investment or avail Mutual Fund, and Fixed Deposit
services.
Q 6: - From how long times have you got
this plan?
Q 7: -What % of your savings goes into
investment?
It has been analyses that there is moderate ratio
between people Saving from their frequency of investment as they believe in
safety principal and it depends on their choice and preference also…
Q 8: -How much do you pay for the premium
payment?
This can be analyzed from the survey that most
important consideration while doing investment is paying of Premium
amount.
Q 9: - What do you have the option of payment
of the premium?
This can be seen that the most persons prefer
Payment option Annual
Q 10: -What returns are you getting from your
current portfolio?
This can been analyzed that customers current
portfolio holds 11 – 25 % Returns from their Investment Portfolio
Q 11:- What types of fund have you choose to
cater to your investment needs depending on your risk appetite?
This can been analyzed that customers invest their
savings in Growth and Equity Fund for maximum Wealth
Q 12: - Have you ever switch one fund to
another one?
: This can been analyzed that once customer invest
their money according to market conditions and also they switch it according to
Market Portfoli
ULIP AWARENESS:
|
FREQUENCY
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YES
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63
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NO
|
37
|
Out of the sample size of 100, 37% of the
respondents are unaware about ULIP but a major portion of this (almost 63%)
agreed that they would invest into it when they have relevant information.
It is here that the potential of ULIP needs to be
tapped. They are ready investors who know only traditional avenues of
Investment. Making them informed would open the Investments into this
Instrument. The remaining 63% of the respondents have a complete awareness
about ULIP and more than 90% of them have already invested in some ULIP.
GENDER WISE AWARENESS:
|
FREQUENCY
|
|
|
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MALES
|
75
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FEMALES
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25
|
As far as awareness is concerned males are
comparatively more aware about ULIP as an Investment option. They are almost
three times (75%) as much aware as the females (25%)
- Females
in India
are underinsured, they think about Investment mostly into Bullion. A best
solution would be to pass information to the working women class about the
product and to create awareness among them.
RESEARCH METHODOLOGY
Title of the Study
“COMPARATIVE
STUDY OF CREDIT POLICY FROM HDFC AND HSBC BANK FORM SHORT TERM LAON”
Duration of the Project
Project Timeline (till now) - one month
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1
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2-9
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9 to 18
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18 to 25
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Project Description
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Literature Review
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Questionnaire Preparation
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Market Research
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Data Compilation
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Findings & Recommendations
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Final Report
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Presentation
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Objective of Study
The objective of this project study to
find ousts the potential of different types of loans provided by the banks
among different segments in future. To know the reasons why the customers are
going towards other banks and also the comparison of the interest rates
provided by the bank vis-à-vis other competitor banks. For this purpose a
research was done in different area of loans. For the research part the data
collection was the objective to know the experiences of the customers of loans,
their preferred banks and their future requirements regarding loans. Another
task is to make the customers aware of the bank and its policies.
Type of
Research
Exploratory research:-
This genre of
research simply allows the marketer to gain a greater understanding of
something that s/he doesn’t know enough about. For example, just because we
know that 3G phones exist, it doesn’t necessarily mean that we Understand
howthey work. Exploratory research can help in this instance. Differing mainly
indesignfrom descriptive research, exploratory research is used principally to
gain a deeper understanding of something. The design is far more flexible and
dynamic than that of descriptive research.
Descriptive research:-
This research is the most commonly
used and the basic reason for carrying out descriptive research is to identify
the cause of something that is happening.
For instance, this research could be used in order to find out what age
group is buying a particular brand of cola, whether a company’s market share
differs between geographical regions or to discover how many competitors a
company has in their marketplace. However, if the research is to return useful
results, whoever is conducting the research must comply with strict research
requirements in order to obtain the most accurate figures/results possible.
Type of
research is Descriptive Research. In descriptive research characteristics of
user of a given product; the degree to
which product use varies with income ,age, sex or other characteristics; or the
number who saw a specific television commercial This research is the
“statistical method” this is usually implied when a “survey” is referred to.
Sample
Size and method of selecting sample
In this
research I have select the sample size is 55 and Selecting sample is random
sampling (probability sampling design).
The simplest form of random
sampling is called simple random sampling. Pretty tricky, huh?
Here's the quick description of simple random sampling:
- Objective: To select n units out of N such that each NCn has an equal chance of being selected.
- Procedure: Use a table of random numbers, a computer random number generator, or a mechanical device to select the sample.
A probability sampling
method is any method of sampling that utilizes some form of random
selection. In order to have a random selection method, you must set up
some process or procedure that assures that the different units in your
population have equal probabilities of being chosen. Humans have long practiced
various forms of random selection, such as picking a name out of a hat, or choosing
the short straw. These days, we tend to use computers as the mechanism for
generating random numbers as the basis for random selection.
Scope of Study
Limitation of Study
Analysis
and Interpretation
Q.1 Age:
Analysis & Interpretation:
In
this question clearly seen that more people from age group of 30-35 are more
involved in tacking loan as it was seen that people from age group of 30-35 are
well established either in their business and services.
Q.2 Profession:
Analysis & Interpretation:
In
this question it was seen that more of private sector person was involved in
loan tacking activates because as these persons are working in private sector
so they were keener to take loan from private sector banks because of leniency
of private sector banks towards people.
Q.3 Income level (per annum)
Analysis & Interpretation:
People
of income level more then 1, 00,000 were there.
Q.4 Have you ever taken loan in the past
if yes? Then from where
Analysis
& Interpretation:
In this question it was seen that majority of
customers took loan from private sector banks rezones behind selecting private
sector banks was their leniency towards customer and their quick services which
was not been easily found in others bank.
Q.5 Are you
willing to take loan from Private Banks?
Analysis
& Interpretation:
Reasons
behind selecting private banks was due their leniency towards customer and
their quick services, competitive interest rate , more branches and providing
more facility to the customers.
Q.6 you need loan up to?
Analysis & Interpretation:
It
was found that People was more interested in taking loans above 50,000 because
of increasing day to day needs of people.
Q.7 before investing in to a particular
company, you look into?
Analysis & Interpretation:
In
this question it was seen that people are more cautious about their interest
rates so that there loan can get cheaper, services was also a concerning matter
of some the customers.
Q.8 what kind of loan you want?
Analysis & Interpretation:
Majority of customers were
interested in home loans, personal loans as it was seen that constructing home
was there first priority for customers.
Q.9 you want your loan repayment
duration up to?
Analysis & Interpretation:
As
it was seen earlier that services sector
people was more interested in taking loans so these people earn on monthly
basic so they want there installment for more longer period and easily
adjustable in there earning.
Q.10 Are you willing to take loan from
these following companies?
Analysis & Interpretation:
People
was found more interested in taking loan from HDFC bank as well from HSBC bank
because of there cheaper interest rates ,faster services, wider network which
is not easily found in government sector
banks.
Q.11 Do you know about Credit policy of
Short term Loans?
Analysis & Interpretation:
Normally
majority of people were aware of short terms loans those who were not aware
mainly were less literate.
Facts and
Findings
The above
chart is showing that most of the customers are
between 30 to 35 years of age who avails maximum banking
and investing services.
This can be analyzed from the chart that persons
having annual salary of Rs. 1 lakh above avail maximum banking and investing
services because of efficient utilization of funds available.
It has been analyses that there is moderate ratio
between people saving from their frequency of investment as they believe in
safety principal and it depends on their choice and preference also.
SWOT ANALYSIS
SWOT ANALYSIS OF HDFC BANK
|
STRENGTH
·
Right strategy for
the right products.
·
Superior customer
service vs. competitors.
·
Great Brand Image
·
Products have required
accreditations.
·
High degree of
customer satisfaction.
·
Good place to work
·
Lower response time
with efficient and effective service.
·
Dedicated workforce
aiming at making a
long-term career in
the
field.
|
WEAKNESSES
constrained by
low
unemployment
levels and
competition for staff
|
Opportunities
|
Threats
attack by
major competitors
|
SWOT ANALYSIS
OF HSBC BANK
STRENGHTS:
- World wide brand name of HSBC as credible and trustworthy
- Outstanding relationship management with customers.
- Automated operations due to highly computerized network Personal financial review are the strongest tool with HSBC, which facilitates the customers in doing their risk prohibiting and investing their money accordingly. This PFR is provided free of cost ion HSBC.
- It enjoys a good share of NRI business due to greater services to NRI’s provided worldwide.
- A product known as GLOBAL PREMIER of HSBC, according to which if you have premier account in HSBC in India or in any country you will be recognized globally as the premier customer of the bank, and for this you do not have to maintain average quarterly balance of Rs. 25 lakh separately to other countries as well.
- The withdrawal limit (Rs1 lakh) provided by the bank is highest.
- Bank provides the facility of doorstep banking to all customers.
WEAKNESS
- Less number of branches in Rajasthan (only 2, one in Jaipur and other in Jodhpur)
- Only one ATM in jaipur which is located at the branch only.
- Lots of hidden charges especially in case of credit card facility, cash credit limit is also less.
- Minimum amount to open a fixed deposit is Rs.10, 000 which is comparatively higher.
OPPORTUNITIES
- Being a world class bank and having a good reputation, the goodwill can be cashed upon with the growing economy of India.
- People’s dissatisfaction toward nationalized banks in terms of services has turned out to be blessing for the private banks. HSBC with its brand image can be benefited to a large extent by this opportunity.
- Citibank has not yet introduced private banking and locked facility in Jaipur; therefore there is a opportunity for the growth of premier account.
- Rapid growth of Jaipur city is the prime opportunity and moreover new industry in and around has sprung up.
- Jaipur has great business and export of precious and semi precious stones and gems, jewellery and handicrafts, HSBC has good opportunity to provide for better banking at the national as well as international level.
- The bank should focus on common customers for wealth management as they have more day to day spare money.
- Superior segment demarcation and co-ordination will be beneficial.
THREATS:
- All the public sector banks have started to redefine their services in order to attract customer’s attention.
- Stringent norms by reserve bank of India at any time in near future can be threat to foreign banks as their activities could be adversely affected.
- The entry of other foreign banks can take away some of the business.
- The nationalized banks are also coming up with ATM’s, which will act as a major threat.
- The presence of other private sector banks and foreign banks in Jaipur and because of intense competition they are coming with the better products and services.
- The cash credit limit provided by other nationalized banks is the major threats.
- There is a myth surrounding the people that foreign banks are not trustworthy and hence, do not rely on such banks.
- Special permission is required to open for the accounts of various segments like politicians, exporters and jewelers.
CONCLUSION
- The important facts which we could conclude from our data regarding the buying behavior of individuals are that people give maximum importance to the tax benefit that they receive after investing in the unit linked insurance plan .Further the next most attractive benefit that people look forward to most as per our sample is that of income growth .Infect most of the unmarried chunk of our population who has no liabilities like child education or marriage goes in for a ULIP product just to multiply the money in a couple of years. Other benefits are important as well but these two take away most of the attention.
- Regarding the acceptance of ULIP as a product over other investments it is analyzed that though a lot of our sample population was aware about it and had invested in it but still a lot of them (including Females) wanted to invest in it but were confused regarding other options like mutual funds. So a lack of public awareness was encountered.
- Another important finding was that time horizon was one of the factors of concern while investing in ULIP and as per the analysis of the questionnaire we found that a large proportion of our sample was convenient with the time period of 4-7 years and then others were in favor of a period not beyond 3 years. This implies that very less number of people were comfortable with long time horizons
- Another very interesting finding from our data is that when we talk about risk as an investment criterion then the female population which already has or is interested in investing would favor either no risk at all or low risk and low gain. Whereas the customer’s businessmen by occupation and specifically from age group 21- 30 would favor both moderate risk and moderate gain or rather go for a high risk and high gain strategy. This result came completely in line with our expectations.
- Talking of its the market share of the leading players it was found that loan rules when it comes to an age group of 50 plus due to the credibility and trust it has gained in all past years.Where the other age groups prefer to explore the leading private players where in our sample Standard Chartered Baja Allianz and ICICI prudential make a clean sweep. Other banks like HDFC were found with a limited proportion only according to our findings.
- Our analysis shows that though the product has been able to cater to a number of benefits but still a lot of brand awareness is lacking and loan is posing the biggest threat followed by HDFC life to the private players.
RECOMMENDATION AND SUGGESTIONS
- Firstly I could observe that the general level of awareness among the people regarding HSBC brand is very low, therefore the brand should focus on advertising both at the central as well as local level.
- We know that the products and services offered by the bank are the best but more or less similar are offered by other banks as well e.g. Citibank, standard chartered etc,so promotional campaigns are must in this era of stringent competition.
- The bank should consistently try to improve and upgrade its technology with the global standard in order to provide excellent customer satisfaction
- Establish more branches and ATM’s although there is no need to do so without requirement.
- We know that in this world of intense competition everyone is trying to prove itself best in its respective field therefore we can conclude that there is always an edge of improvement and hence the brand should work on that.
- Establish and coordinate business relation with big corporate houses across the country
- HSBC can improve upon its efficiency by not changing its staff frequently. By doing this bank can continue to create, maintain and grow strong relationship with its existing customers.
- Idea behind this is that staff which is already working for bank is well acquainted with the nature and wants of the existing customers.
- Every private bank can be provided much more services to be relatively to loan facility.
APPENDIX
Questionnaire
Dear Sir/Madam,
I am the student of Poornima School of
Management (DMS) and I am conducting a survey on “Comparative study of
Credit policy from Short term Loan” The following
questionnaire has been drafted to make me understand the needs and expectations
of the customers. Therefore I request you to kindly spare some time and give me
the following information. I assure you that this data will not be misused and
will only be used in the study.
Name: - ____________________________________________________________
Contact No. - ____________________________________________________________
E- Mail Id: - ____________________________________________________________
1. Age:
a) 20-25 b)
25-30 c) 30-35 d) 35-40 e) 40-45 f) 45 above
2. Profession:
a) Entrepreneur
b) Govt / Public Sector c)
Private Sector d)
Retired e) Others
3.
Income level (per annum)
a) 5000-10000 b) 10000-40000
c) 40000-1, 00,000 d) 1, 00,000
& above
4.
Have you ever taken loan in the past if yes? Then from where
a) Private Banks b)
Foreign Banks
c) Govt. Banks d) Germaine Banks
D) Others (Please specify) __________________________________
5.
Are you willing to take loan from Private Banks?
A) Yes b) No
6.
You need loan up to?
a) Above 5,000 b) Above
10,000 c) 10,001-25,000
d) 25,001-50,000
e) Above 50,000
7.
before investing in to a particular company, you look into?
a) Interest Rate b) Service c) Unique feature d) Relationship with the customer
f) Others (Please specify) ____________________________________
8.
What kind of loan you want?
a) Personal loan b)
Home loan
c) Automobile loan d) Short
term personal loan
9.
You want your loan repayment duration up to?
A) 1-2 Years
b) 2-3 Years
c) 3-4 Years d) More than 4 Years
10.
Are you willing to take loan from these following companies?
A) HDFC b) HSBC c) ICICI
d) SBBJ e) SBI
f) Others (Please specify)
__________________________________________
11.
Please mention the reasons for selecting the above COMPANY?
1______________________________________________________________
2______________________________________________________________
3______________________________________________________________
12.
Do you think Private Sector loans are much better than Public Sector?
If Yes: Why, If No Why
13.
Do you know about Credit Policy of Short term Loans?
A) Yes b)
No
14.
What do you expect from HDFC Bank? Suggestions
________________________________________________________________________
________________________________________________________________________
15. What do you expect from HSBC
Bank? Suggestions
________________________________________________________________________________________________________________________________________________
BIBLIOGRAPHY
REFERENCES
Literature provided by the bank
Research methodology methods and techniques (C.R
Kothari)
“Credit policy of management”
Websites
www.banknet India.com
www.hdfcbank.com
Google.com
Wikipedia.org
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