Comparative Study of Personal Loan and Home Loan With State Bank of India
Comparative Study of Personal Loan and Home Loan With State Bank of India
COMPARATIVE STUDY OF PERSONAL LOAN AND HOME LOAN WITH STATE BANK OF INDIA
Submitted to
UNIVERSITY OF RAJASTHAN, JAIPUR.
For the Partial Fulfillment of Paper VI for the Degree of Bachelor of Business Administration (B.B.A)
Rambagh, Jaipur
CERTIFICATE
This
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the
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report
entitled
COMPARATIVE STUDY OF PERSONAL LOAN AND HOME LOAN WITH STATE BANK OF INDIA
has been written by Ms. Shivani Sharma; a student of
Date:
DECLARATION
I hereby declare that project report entitled
COMPARATIVE STUDY OF PERSONAL LOAN AND HOME LOAN WITH STATE BANK OF INDIA, is a bonafide record of work done by me during the
project work and that it has not previously formed the basis for the award to me for any degree/diploma, associate ship, fellowship or other similar title of any other institute/society.
Date:
Acknowledgement
I o e m s c re a d h a s g titu e to D w y in e n e rtie t ra d r. P m Jsi ra ila o h s h is e k de o g w m a da a s in n u h ith e n lw y . M De a r. e p k a t IC I B n IC a k wo h h lp m w e e e I n e e e s e hnvr edd I a g te l fo m p je t to m ra fu r y ro c P liw l A s ta t M n g r (H ) a a s is n a a e R ta eth p je t infu rec u efo m c re r. k is ro c tu o rs r y a e L s b t n t th le s I a th n fu to a th a t u o e a t; m ak l ll e m m e o s ff o IC I P d n l fo m k g m e b rs f ta f IC ru e tia r a in y p je t s c e s l ro c u c s fu h lp d m th u h u th p je t a d e c u g d to e e e ro g o t e ro c n n o ra e
SHIVANI SHARMA
B.B.A. III YEAR
Preface
ICICI bank is Indias second largest bank. It provides the home loan facility also with various schemes and plans. It has the Indias best home loan plans. The customers are given best facilities and are provided with every helpful knowledge. Home loans are the loans which are taken by the people who want to purchase houses but are not financially secured. The home loan provided them the financial security by providing them the money on the exchange of some security and charging some interest rates. There are several banks in Home loan sector and due to which the competition has increased in the market, which is always beneficial for the customers. S.B.I and ICICI are the top banks of India and are providing good facilities in home loan sector. I have done the comparison over these two companies policies and which are best for the market growth.
The traditional bank has an inherent tendency to crisis. This is because the bank borrows short terms and lends leveraged long term. The sum of deposits and the banks capital will never equal more than a modest percentage of the loans the bank has outstanding.Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a ban portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in the late 1980s and early 1990s is such an incident.
The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories Non-Scheduled Banks and Scheduled Banks. Scheduled banks comprise commercial banks and the cooperative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the Stat Bank of India and its group banks, regional rural banks and private sector banks these banks have over 67,000 branches spread across the country. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as priority sectors. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold. After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. Eight new private sector banks are presently in operation. These banks due to their late start have access to state-of-the-art technology, which in turn helps them to save on manpower costs and provide better services.
COMMERICAL BANKS
CO-OPERATIVE BANK
Foreign Banks
Public Banks
Private Banks
OLD BANKS
New Banks
ABN-AMRO Bank Abu Dhabi Commercial Bank Ltd. American Express Bank Ltd BNP Paribas Citibank
HSBC Ltd
Allahabad Bank Andhra Bank Bank of Baroda Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Oriental Bank of Commerce Punjab National Bank State Bank of Bikaner & Jaipur
State Bank of India (SBI)
Bank of Rajasthan Centurion Bank of Punjab UTI Bank YES Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank ING Vysya Bank INTRODUCTION OF NEW PRODUCTS AND SERVICES
Banks in India have traditionally offered mass banking products. Most common deposit products being Savings Bank, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, Bankers Cheque and Internal Transfer of funds. Banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Further, due to exposure to global trends after Information explosion led by Internet, customers - both Individuals and Corporate - are now demanding better services with more products from their banks. Financial market has turned into a buyer's market. Banks are also changing with
time and are trying to become one-stop financial supermarkets. Market focus is shifting from mass banking products to class banking with introduction of value added and customized products. A few foreign & private sector banks have already introduced customized banking products like Investment Advisory Services, SGL II accounts, Photo-credit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to Market bonds and debentures, when allowed. Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as 'private banking' - to "high relationship - value" clients. Properly and also take your passport-sized photo. Home banking has already become common, where you can order a draft or cash over phone/internet and have it delivered home. ICICI bank was the first among the new private banks to launch its net banking service, called Infinity. It allows the user to access account information over a secure line, request Cheque books and stop payment, and even transfer funds between ICICI Bank accounts. Citibank has been offering net banking to its Suvidha program to customers. Products like debit cards, flexi deposits, ATM cards, personal loans including consumer loans, housing loans and vehicle loans have been introduced by a number of banks. Corporate are also deriving benefit from the increased variety of products and competition among the banks. Certificates of deposit, Commercial papers, Non-convertible Debentures at can be traded in the secondary market are gaining popularity. Recently, market has also seen major developments in treasury advisory services. With the introduction of Rupee floating rates for deposits as well as advances, products like interest rate swaps and forward rate agreements for foreign exchange, risk management products like forward contract, option contract, and currency swap are offered by almost every authorized dealer bank in the market. The list is growing. Public Sector Banks like SBI have also started focusing on this area. SBI plans to open 100 new branches called Personal Banking Branches (PBB) this year. The will also market SBI's entire spectrum of loan products: housing loans, car loans, personal loans, consumer durable loans, education loans, loans against share, finance against go banks.
Types of loans:
Secured
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or
property) as collateral for the loan. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.
In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. A type of loan especially used in limited partnership agreements is the recourse note. A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[ A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan. This is considered a secured nonrecourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven.
The banks present in India were very quick to assess the retail and property boom prevalent in the economy. This has lead to new bank loan schemes in India. In India, banks alone do not lend money to people, apart from them, public sector housing
finance or private financial institutions are also main sources of home loans. Hence,
now the dreams of owning a home can be materialized just by considering the different
home loans options available in India. These home loan schemes are gaining popularity because of the cheap interest rates they charge and other features of simplicity. A large number of choices for loans give you the opportunity to borrow loans according to your necessity and earning ability.
The home loans issued by the housing finance companies allocate funds up to 80-85% of the total flat or plot cost. The approved loan amount is generally transferred to the given account or a cheque is handed over to the borrower. After this the borrowers are free to make use of the amount according to their own requirement. An advantage of these sorts of loans is that they follow long repayment to all categories of people can use the benefits of a home loan, like self-employed, salaried individuals, housewives, business professionals, retired persons and farmers. The scheme also works for NRIs. As mentioned earlier, there are a variety of options to choose from in the home loans sector. India has no scarcity of home loan lenders or home loans schemes. What is important for candidates is to not decide on a home loan without seeing the other options available in the market. The most important criteria while deciding a home loan is the interest rate that the rms and candidates can repay them in easy installments. Home loan charges. These interest rates matter a lot and influence your monthly installment burden. Hence, it is very important to choose that home loan which offers the best deal of interest rate to you. The internet works as an excellent tool in helping people not only choose from the different home loan schemes being offered by the various banks, but also allows one to obtain a detailed comparison of all those home loan schemes. These days, people can also purchase home loans online, instead of physically going to banks. This has helped in saving the time and energy of the borrowers. The process of approval of home loans in India is simple. The applicant can credit his/her property against the loan or if applicant is a salaried individual then he/she should enclose documents proving his/her earnings. The other related identification proofs vary from lender to lender. As a last piece of advice, one must always remember to go thorough with all terms and conditions mentioned in the home loans document. The home loans market is one which one can enter very easily. However, a little amount of intelligence and awareness can
help an individual get the best deal available in the market. So, pick up a pen and a paper and choose the loan that will get you the home of your choice. A boom in the retail sector has seen an immense increase in the home loan interest rates over the past 4 years. Home loan rates have doubled over the past 4 years. The present problem of inflation has also had a negative effect on the consumers as the fixed and the floating rate of interests have soared to an alarming degree. This in turn has certainly affected the loan eligibility for home loans in India. This has also lead to loan borrowers re-evaluating their options to avail new eligibility criteria.
At this time, it is important to understand how to enhance ones home loan eligibility. Given below are some ways which can help in this Endeavour:
The easiest method available to increase ones home loan eligibility is by taking home loans for the Maximum Tenure. As an example, let us consider an individual who earns a monthly salary of Rs 60,000. He decides to purchase a house, and for that he buys a home loan. After deducting a monthly expenditure of Rs 35,000, the individual is able to save Rs 25,000. Undoubtedly, he will use his savings for repaying the loan in the form of equated monthly installments (EMI). Now, lets consider that the installments for a home loan of Rs 1 lakh come at an interest rate of 12.5%. If the loan is taken for tenure of 15 years, the EMI calculated stands at Rs 1,232.50. For this data, his home loan eligibility will be 20.3 lakh. However, it is possible for the same individual to increase his home loan eligibility by around Rs 2 lakh if he can extend his tenure to 20 years. Assuming the same rate of interest i.e. 12.5% and now 20 year tenure on Rs 1 lakh loan, the EMI turns out to be Rs 1,136. Consequently, the home loan eligibility comes to Rs 22 lakh.
The importance of this statement lies in the fact that today there are many banks offering different varieties of home loans to individuals. Nowadays, almost every bank is offering a home loan with the repayment period of maximum 20 years. The next important thing to consider after the tenure is the rate of interest. For that reason, it is always advised, never to rush to purchase a home loan. It is better to carry out a research regarding the available home loan schemes and to study the market meticulously to make the best use of what many banks and housing finance companies are willing to lend before making a choice The next decision that an individual needs to make is to choose between floating and fixed interest rate on home loan, which is largely based on ones personal preference and knowledge about the both. However, the floating rate home loans are available for anywhere between 11.5-13%. Also, it might not be necessary that the first scheme being presented by a bank employee would be the best for an individual. Hence, always ask questions and enquire about the various schemes available with the bank, and then make the final call.
Repay
A good report card always helps. It is highly advised by bankers that before going to purchase any bank loan, an individual should repay all the other pending outstanding loans. Any loan taken by an individual like car loans or personal loans, taken on any bank, needs to be paid up to date. This adds to the ability to repay of the individual and the lending institution takes a greater interest in issuing a home loan. Also, these days, any bounced cheque of any late payment, is not missed by banks. Hence, its important to be thorough with the repayments. When
If one spouses income comes short of the required amount set by the bank to issue a loan, then several banks and HFCs have come up with a joint loan option. This option guarantees a loan for both the husband and wife earning a combined income of Rs 1 lakh per month. The choice for a greater loan is available with either husband or wife earning Rs 60,000 per month. These are simple to follow tips, and can go a long way in increasing the home loan eligibility of an individual. So, buckle up and get ready to purchase your home loan smartly.
Unsecured:
Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages:
credit card debt personal loans bank overdrafts credit facilities or lines of credit corporate bonds
The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.
However it is important for us to deeply examine any loan offer and make the right choice. So following are few facts that help you decide if you want to avail a personal loan.
Although a personal loan is a friend in need but it should be ensured that it is not availed for a luxury that becomes a burden in the future. where by bet on the lowest EMI.
Advantages:
Personal loans do not require you to produce any collateral or security, like other loans. There is no agent or middleman while obtaining a personal loan. Banks are always ready to offer this loan. You may avail personal loans according to your eligibility ranging anywhere from Rs. 15,000 to Rs. 10, 00,000. Paper work to get the loan sanctioned is less. The payment period is up to a maximum of 60 months. It is better to avail a personal loan than to borrow cash on your credit card in terms of the interest rates charged on both. You can use a personal loan for whatever purpose you want.
Disadvantages:
The eligibility criteria are stricter in case of personal loans, since there is no security required and the paper work is also less. The bank checks on your capability to repay more than any other loan due to the same reason. Only an approved category of borrowers are given personal loans because of the higher amount risk associated with them. Personal loan rates are high as compared to the interest rates charged on home loans, loans against property or loans against shares. They could range from 12% to 30%. Even the service charges and prepayment penalty are very high So given the pros and cons of personal loans one should be cautious while he goes shopping for such a loan. He should know what exactly to look for in the market.
interest rates, processing fees, prepayment penalty, administrative charges, document charges, verification charges and other fees make them a pretty costly way to get instant money. How do we get the best rates for our personal loans? What is the process by which we can save money on interest rates, other fees and associated charges on our personal loans? This question bothers almost everyone who wants or has taken a personal loan. Here are few things, which if taken into consideration while applying for a personal loan can save a The basic of getting any loan applies to personal loans as well. For all loans if the bank thinks that you are a worthy customer who shows promise by your repayment capacity and fulfills other eligibility requirements completely, they will try to offer the best rates. On the other Hand if they find that something which is required is missing from your profile they might impose higher terms, which could increase the cost of your personal loan drastically.
against the earlier stipulation of 8 branches .Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on the retail segment. Many of them are also entering the new vistas of Insurance. Banks with their phenomenal reach and a regular interface with the retail investor are the best placed to enter into the insurance sector. Banks in India have been allowed to provide fee-based insurance services without risk participation invest in an insurance company for providing infrastructure and services support and set up of a separate joint-venture insurance company with risk participation. The Indian has finally worked up to the competitive dynamics of new Indian market and is addressing the relevant issues take on the multifarious challenges of globalization. Bank that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirement of large customer base. Private Banks have been fact on the uptake and are reorienting their strategies using the Internet as a medium. The Indian banking has come from a long from being a sleepy business institution to a highly proactive and dynamic entity this transformation has been largely brought by the large dose of liberalization and economic reforms that allowed exploring new business opportunities rather than generating revenues form conventional streams. The Indian Industry has confidently hit the growth trial that pick in activity is best reflected in the banking sector which after all is as candid a mirror of a countrys economy as you could ever find. Most of the Indian financial intermediaries have been keeping pace with the deepening market economy, riding the opportunity that come along with reforms even as they brace themselves for increased competition both foreign and private by strengthening prudential norms and leveraging technology to ensure that growth engine hums smoothly along. The essential function of a bank is to provide services related to the storing of value and the extending credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision
authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called nonbank. Banks are a subset of the financial services industry. The word bank is derived from the Italian bank, which is derived form German and means bench. The terms bankrupt and broke are similarly derived from banker Rota, which refers to an out of business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying them interest on the asset.
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. Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are serviced through Telephone Banking. The Bank also has a network of about over 1054 networked ATMs across these cities. HDFC Bank's ATM network can be accessed by all domestic and international Visas / MasterCard Punjab National Bank was established in 1895 at Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital. In 1969, Punjab National Bank was nation
Lending. This includes credit cards, consumer loans (such as, auto and line of
credit), mortgage, and home equity.
COMPANY PROFILE
ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its whollyowned subsidiary.ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of Madura Limited ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South AfricaToday, ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended December 31, 2008. The Bank has a network of 1,438 branches and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).
The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. The international banking business was set up in 2002 to implement a focused strategy for the overseas market. The Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in UK, Canada and Russia, offshore banking units in Singapore and Bahrain; advisory branch in Dubai, branches in Sri Lanka, Hong Kong and Belgium; and rep offices in the US, China, United Arab Emirates, Bangladesh, South Africa, Indonesia, Thailand and Malaysia. The bank is targeting the NRI (Non Resident Indian) population for expanding its business. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong
corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its whollyowned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.
FOREWORD:
Liberalization and Globalization have shrunk the world into a global village. Rapidly moving world economy has intertwined the geographically divided countries into single thread. Opening up of the economy for the rest of the world would shape our industries and companies by the same economic forces as else where in the world. Industries and companies thus have to work in a competitive market place, where there is no guarantee that every business must make money. Dynamic market condition and global economic slowdown have forced an individual to become more cautious about investment of each penny saved. In such time of uncertainty and insecurity, banks come to investors rescue by offering safe and revenue yielding investment avenues. Modifying their deposit products and developing new and innovative schemes with advanced services modern banks have there by made banking more closer and easier in individuals life. Privatisation waves in last decade of twentieth century have changed the face of baking in service industry. Plethora of private banks flooded in to the market. ICICI bank one, amongst them, come up ahead leaving other private banks one, amongst them, come up ahead leaving other private banks behind by serving e-age-banking of customers. This report unveils the growth story of ICICI bank, throws light on unknown aspects of banking and would unfolds the hidden facts about the bank. This report served as a mean to share our personal experiences while working on this project, which provided us platform where we were face-to face to practical aspects of theoretical knowledge gained so far.
Second largest Bank in India Rated by Moodys above sovereign rating First Indian Bank to be listed on NYSE
The World Bank, the Government of India and representatives of Indian industry
form ICICI Limited as a development finance institution to provide medium-term and long-term project financing to Indian businesses in 1955.
1999 ICICI becomes the first Indian company and the first bank or financial institution
from non-Japan Asia to list on the NYSE.
2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar
bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.
2002 The Boards of Directors of ICICI and ICICI Bank approve the merger of ICICI,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrates the group's financing and banking operations, both wholesale and retail, into a single entity. Also, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank.
2002 ICICI establishes representative offices in NY and London. 2003 ICICI opens subsidiaries in Canada and the United Kingdom (UK), and in the
UK it establishes alliance with Lloyds TSB. It also opens an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.
2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that
country, India and South Africa.
2005 ICICI acquires Investitsionno-Kreditny Bank (IKB), a Russia bank with about
US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI Bank offers a high-interest (5.4% gross) internet savings account to UK customers. Also, ICICI establishes a branch in Dubai International Financial Centre and in Hong Kong.
Business Overview:
ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at March 31, 2006 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2006 (Rs. 1740 crore in
fiscal 2004). ICICI Bank has a network of about 570 branches and extension counters and over 2200 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. At April 4, 2006 ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI, and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. *Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities.
VISION
To be the preferred brand for total financial and banking solutions for both corporate and individuals
ICICI Bank is Indias largest private sector bank with a legacy of over 50 years. We have a wide customer base and a leading global presence. Our Small & Medium Enterprises Group (SMEG) caters to the SME segment and offers banking solutions to sole proprietorship, partnership firms and companies. Our extensive trade related expertise, widespread local network and global alliances enable us to provide value-added service. SMEs trust us for information, assistance, and advice and customized banking solutions.
MISSION
To identify and support initiatives which are designed to improve the capacity of the poorest of the poor to participate in the larger economy. These initiatives must be cost effective, capable of large-scale replication and should have the potential for both near and long-term impact. To leverage technology in order to overcome constraints and enhance the effectiveness of various social initiatives.
COMPANY INFORMATION
BOARD OF DIRECTORS
Ms. Chanda Kochhar, Managing Director
Mr. Lakshmi N. Mittal Mr. Narendra Murkumbi Mr. Anupam Puri Mr. M.K. Sharma Mr. P.M. Sinha Prof. Marti G. Subramanian Mr. T.S. Vijayan Mr. V. Prem Watsa
Anup K Pujari Sonjoy Chatterjee
MAJOR COMPITITORS
HSBC Holding Standard Charted State Bank Of India HDFC Bank
ICICI GROUP
ICICI Infotech
Have a large- scale and measurable- impact; Are replicable in a cost effective manner; and Are time-bound.
capacity building; Providing access to research and information; and providing platforms for an effective exchange of ideas, thoughts and experiences.
ICICI has the following other group companies with in the meaning of the Securities exchange board of India (SEBI) guidelines: Prudential ICICI assets Management Company limited Prudential ICICI Trust limited
In addition, ICICI is the sponsors or co sponsors of prudential ICICI mutual funds, the assets management company of which is prudential ICICI assets Management Company limited and the trustee of which is prudential ICICI trust ICICI securities fund, the assets management company of which is ICICI investment Management Company limited. None of its subsidiaries or other group companies has any shares listed on any stock exchange
Customer convenience Wide distribution Strong process Customer focus Cross selling of the entire range of credit and investment products and banking services in the customer is a critical aspects of ICICI banks retail strategy .ICICI Bank offers a wide range of Varity of consumers credit products such as. Home loans Automobile loan Commercial vehicle loan Personal loans ICICI Bank commercial banking operation for retail customer also consists of raising deposits for retail customer it offer retail liability products in form of variety of unsecured redeemable bond.
GENERAL
Retail lending Activities Home Finance Automobiles Finance
COMMERICIAL BUSINESS
Personal loans Credit cards Dealer financing Retail Deposites In additions to conventional deposit products ICICI Bank offers a variety of SPECIAL VALUE ADDED PRODUCTS AND SERVICES. Such as special products for different categories of customer depending upon their age and occupation, which seek to cater to
their ICICI Bank, offer different liability products to various categories of customer depending on their age group such as;
INVESTMENT SERVICES
LIABILITIES PRODUCTS
LIABILITY PRODUCTS
Salary Account
Saving Account Auto Invest Account Welcome kit Senior Citizen Services Fixed Deposits Term Deposits
ASSET PRODUCTS
Credit Cards Home Loans Personal loan Two wheeler loan
INVESTMENT SERVICES
ICICI Direct .Com Demat Account Mutual Fund Insurance
As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home. ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are: Guidance through out the process Home loan amounts suited to your needs Home Loan tenure upto 20 years Simplified Documentation Doorstep Service Attractive interest rates Sanction approval without having selected a property. Free Personal Accident Insurance (Terms & Conditions) Insurance options for your home loan at attractive premium
No matter what the requirement, we have an appropriate plan for you.Get the best deals, and finance your perfect home, only from ICICI Bank.
Home Loans
Home Loans are provided to individuals to own a residential property. ICICI Bank offers easy home loans for
First Purchase in ready construction Under construction property Purchase in re-sale Self construction - extension of existing living space
Home loan amount can be chosen to suit specific needs. One can avail of a loan up to 80% of Cost of Property.
Conveniently pay off the loan over a period of up to 25 years. It can be availed at the Floating rate of Interest or at the fixed rate of Interest or at the combination of both Fixed & Floating rates. Faster repayment as principal repayment in on monthly rest.
2.
Home Improvement Loan is offered to facilitate improvement of a self-owned dwelling unit to existing or new customer. HIL considers a range of facilities internal or external to the structure without increase in the living pace. Thus, a customer can add or improve facilities to his dwelling unit with a loan at Home Equity Loan rate of interest Home Improvement Loan can be availed by Resident Indian whether salaried or SelfEmployed.
3.
Office Premises Loan can be used for purchase, construction, extension & also for
improvement (at the time of acquisition of office premises. It creates an opportunity to extend loans to self-employed individuals to house their profession or business giving a permanent address for generating steady flow of income. The product can also include the estimate of renovation at the time of purchase of the property. This loan is especially meant for self-employed professionals like Doctors, Architects etc.
Home Loans can be availed by Resident Indian who are Self-Employed and also by NonResident Indian who are Salaried.
Balance Transfer:
Balance Transfer is a facility offering the customer a choice to transfer the outstanding balance of the loan availed for better terms & conditions. Balance Transfer helps to move from higher rate of interest to lower rate of interest or increase in loan component
as Top up. BT is possible only from loans taken from HFCs approved by NHB for refinance, Banks or employer Loans taken from Central or State Government.
4.
Top Up Loan:
Top up Loan can be availed time and again for various personal requirement based on value of the property. It offers the customer additional funds against the security of the same property. To avail Top Up loan, the vintage of at least six months is required for the loan availed. The basic eligibility emerges with good repayment track record. The end use letter is essential to be collected. The End use of Top Up Loans can be
Furnishing of home Consumer durable Childs education Daughters marriage Family holiday Vehicle
Any other personal requirement of the borrower provided it is not speculative or illegal in nature. This product is applicable to fully disbursed cases with no post- disbursement document pending. This product is priced more than base home loan rates but lower than
any personal loan rates. Top Up Loan can be availed by Resident Indian whether Salaried or Self-Employed.
5.
Loan on Phone:
Loan On Phone is a pre-sanctioned loan. Its is based on the existing relationship of the customer with ICICI Bank. The biggest advantage is that the customer can get the loan with minimum documentation. Good banking transactions and repayment records becomes a strength for availing loans in future. Loan on Phone can be availed by Resident Indian whether salaried or Self-Employed
6.
Loan against property gives the owner of residential or commercial premises to leverage on the value of the property. It offers the ability to unlock funds gives the advantage of looking at the asset as a source of security bringing liquidity and retaining ownership. In case of HEL the property should be self occupied by one of income considered applicants. The security of the property ensures competitive rate of interest. The interest component of the EMI paid by SEP / SENP can be booked as expenses in their P & L Home Equity Loans are provided for many personal requirements of the customer viz.
Marriage Child Education Business Purchase of Property (Where mortgage is not possible) Improvement of Property Medical Treatment
Home Equity Loans can be availed by Resident Indian who are Self-Employed and also by Non- Resident Indian who are Salaried.
Property Overdraft:
The overdraft facility from ICICI Bank Home Loans allows you to borrow money against your self-occupied property. The overdraft facility comes with a multi-city cheque book and phone banking facility. The customer is charged interest only for the amount that he withdraws from the account. Whenever he deposits funds into the account, they go towards reducing the outstanding balance in the account. It offers the following benefits:
Generating capital against property (R) or ( C) for business or personal use Convenience of Pre - Sanctioned limit and draw as you need Pay interest on the amount drawn and for days utilized Convenience of depositing & withdrawing like any Current Account
Benefit of Cheque Book & Phone banking Fast Processing and door-step service Multi-city cheque book and phone banking facility
Marriage Child Education Business Purchase of Property (Where mortgage is not possible) Improvement of Property Medical Treatment
loan. Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included.
What is an EMI?
An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.
PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, we provide the flexibility of dating the cheques for the 10th of the month.
Your search for the perfect home loan ends here at ICICI Bank Home Loans, even before your have found the perfect property. The moment you decide to buy a home, you can put in your application for a home loan. Yes, you can apply for a home loan even before you have selected the property. The property need not even be in the same city where you are residing. The only condition being that ICICI Bank has Home Loans operations in both the cities. Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval of your home loan.
However, we are always ready to assist our customers in the event of legitimate problems. And, we might reconsider this if we find that there are satisfactory reasons for the delay. And, neither would we charge you extra for this delay. If it is refinancing you are interested in, it is possible within 6 months from the date of purchase of property.
Legal Verification
The customer would need to submit the original property documents as per the indicative list given by ICICI 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.
Personal Loans
Thinking of renovating your house? Yearning to buy a new Laptop? Need financial assistance with marriage related expenses or your child higher education? An ICICI Bank Personal Loan is your One-stop-shop for all your financial needs to fulfill any of your desires. Key Benefits of ICICI Bank Personal Loan: Loan up to 15 lacs No security/guarantor required Faster Processing Minimum Documentation Attractive Interest Rates 12-60 Months repayment options
Speak to our phone banking officers and quote your relationship number. For phone banking numbers.
You can avail of an ICICI Bank Personal Loan if you are an existing ICICI Bank customer and if you meet the following criteria:
Salaried 25 yrs. - 58 yrs. Employees of Public Ltd. companies, Private Ltd. companies, Government companies or MNCs
Prepayment of the loan is possible after 180 days of availing the loan. Foreclosure charges as applicable would be levied on the outstanding loan. Part pre-payment is not allowed. No other fees or commitment charges are levied.
Lower of the two amounts given below. 1. 5% of principal Prepayment Charges outstanding or 2. Interest outstanding for unexpired period of the loan. Charges for late payment Cheque Swap Charges Cheque bounce charges 2% per month Rs. 500/- per transaction Rs. 200/- per bounce
Statement of Account Charges Rs. 200/- per statement Foreclosure Statement Charges Duplicate NOC Charges Duplicate Repayment / Amortization Schedule Charges Rs. 200/- per schedule Rs. 100/- per statement Rs. 500/- per NOC
Notes:
1. Service Tax and other govt. taxes, levies, etc. applicable as per prevailing rate will be charged over and above these charges at the discretion of ICICI Bank. 2. The charges or fees given in above table are subject to change and the one recorded in agreement will be binding over this site.
Application Process
You have the option of applying online for a personal loan. An ICICI Bank Ltd. representative will contact you to service your loan requirements. On receiving the completed application form with the requisite documents, we shall process your loan within 3 working days. Please do not send any payment via cash/ cheque with your application. Kindly ensure that all Post Dated Cheques are Drawn in favor of "ICICI Bank Limited", duly filled in all respects and endorsed "Account Payee only".
Large AT networking
ADVANTAGE EMPLOYEES
Welcome kit
Value added saving Free anywhere banking Debit card Free internet banking Online fund transfer Mobile banking Phone baking Free utility Bill payments Overdraft facility SMS alert Free bank statement Access to non ICICI Bank ATM
UNIVERSAL BANKING
Loan and credit card Investment and services Employee reimbursement account
PROFILE:
Spreading its arms around the world, the SBIs International Banking Group delivers the full range of cross-border finance solutions through its four wings the Domestic division, the Foreign Offices division, the Foreign Department and the International Services division. The Domestic wing provides services like merchant banking, shipping finance and project export finance. The Foreign Offices wing offers the entire range of international trade and industrial finance products, while the Kolkatta-based Foreign Department undertakes treasury and currency operations. The International Services division renders specialized services like correspondent banking, global link services and country and bank risk exposure monitoring. Being
Indias largest and most trusted commercial bank, the SBI offers you a network of relationships unmatched in strength and span by any other Indian financial entity. The bank has a network of 66 offices/branches in 29 countries spanning all time zones. The SBIs international presence is supplemented by a group of Overseas and NRI branches in India and correspondent links with over 522 leading banks of the world. SBIs offshore joint ventures and subsidiaries enhance its global stature. The bank has carved a niche for itself in Euroland with branches strategically located in Paris, Frankfurt and Antwerp. Indian banks and corporate are able to avail singlewindow Euro services from SBI Frankfurt. These strengths are reinforced by a dedicated and highly skilled team of professionals deployed by the bank in each specific segment. The Bank is actively involved since
1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways.
INVESTOR RELATIONS:
State Bank of India, the countrys largest commercial Bank in terms of profits, assets, deposits, branches and employees, welcomes you to its Investors Relations Section. SBI, with its heritage dating back to the year 1806, strives to continuously provide latest and upto date information on its financial performance. It is our endeavor to walk on the path of transparency and allow complete access to all the stakeholders enabling total awareness about the Bank. The Bank communicates with the stakeholders through a variety of channels, such as through e-mail, website, conference call, one-on-one meeting, analysts meet and attendance at Investor Conference throughout the world. Please find below Banks financial results, analysis of performance and other highlights which will be of interest to Investors, Fund Managers and Analysts. SBI has always been fundamentally strong in its core business which is mirrored in its results year after year.
EVOLUTION OF SBI:
The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board. Business The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities,
including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.
government nominees, invariably civil servants, one of whom was elected as the president of the board.
Business:
The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.
on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had till then any branches (except the sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centres in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.
India witnessed rapid commercialization in the last quarter of the nineteenth century as its railway network expanded to cover all the major regions of the country. New irrigation networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash crops, a portion of which found its way into the foreign markets. Tea and coffee plantations transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of estate agriculture par excellence. All these resulted in the expansion of India's international trade more than six-fold. The three presidency banks were both beneficiaries and promoters of this commercialization process as they became involved in the financing of practically every trading, manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing industries, the Bank of Madras went into the financing of large modern manufacturing industries; the Bank of Madras went into the financing of small-scale industries in a way which had no parallel elsewhere. But the three banks were rigorously excluded from any business involving foreign exchange. Not only was such business considered risky for these banks, which held government deposits, it was also feared that these banks enjoying government patronage would offer unfair competition to the exchange banks which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank of India in 1935.
The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.
Our Bureau Mumbai, April 20 The median forecast of real GDP growth, according to the Reserve Bank of Indias latest professional forecasters survey, for 2011-2012 has been revised downwards to 5.7 per cent from 6 per cent. The central bank, in its report on the Macroeconomic and Monetary Developments in 2008-2011, said that the various surveys of economic activity point towards prevalence of less-than-optimistic sentiment for the outlook of the economy in the coming months. Between the sixth round survey conducted in December 2008 and seventh round survey in March 2011, median forecast of real GDP growth for 2008-09 was revised downwards to 6.6 per cent from 6.8 per cent. According to the report, for the April-June 2011 quarter, the overall net sentiment for all industries, except textiles, is positive. Moderate growth is expected across the various companies in the first quarter. However, the expectations are less optimistic for smaller companies compared with their bigger counterparts.
Inflation:
On the inflation front, the report underscored the fact that unlike the wholesale price index based inflation, consumer price index based inflation in India remains high, with recent evidence of very slight moderation. The transmission process of lower inflation at the wholesale level to inflation at the retail level has emerged as an important issue in the conduct of RBIs monetary policy, the report said. The WPI-based inflation eased to 0.18 per cent for the week ended April 4 from 0.26 per cent for the previous week. Various measures of consumer price inflation, though started declining, still remained high in the range of 9.6-10.8 per cent during January/ February 2011. The higher level of consumer price inflation (CPI) as compared with WPI inflation , in recent months, could be attributed to higher prices of food articles, which have higher weight in CPI. Scheduled commercial banks (SCBs) investment in statutory liquidity ratio (SLR) securities as a per cent of their net demand and time liabilities (NDTL) increased at endMarch 2011 to 28.1 per cent, from 27.8 per cent a year ago. However, adjusted for Liquidity Adjustment Facility collateral securities on an outstanding basis, SCBs holding of SLR securities amounted to Rs 11,10,156 crore or 26.7 per cent of NDTL at end-March 2011 implying an excess of Rs 1,13,817 crore or 2.7 per cent of NDTL over the prescribed SLR of 24 per cent of NDTL. The lower expansion in credit relative to the expansion in deposits resulted in a decline in the incremental credit-deposit ratio (y-o-y) of SCBs to 64.4 per cent at March-end 2011 from 73.6 per cent a year ago.
Personal loans:
Our Chennai Bureau reports: The latest confirmation of a slowdown in the personal loans segment comes from the Statement on Macroeconomic and Monetary Developments put out by the Reserve Bank of India. Personal loans (inclusive of housing, credit cards, educational loans, consumer durable loans etc.) at Rs 5, 55,392
crore account for about 22 per cent of the total loans outstanding as of end February 2011. Personal loans grew at just 8.5 per cent in the last one year compared with 13 per cent growth registered in the previous year. Loans for housing, which constitute about half the personal loan segment, were at Rs 272,376 crore. They grew at just 7.5 per cent last year compared with 13 per cent in the previous year (2007-08) and 26 per cent in the year 2006-07. Credit card outstanding also grew at a mere 8 per cent compared to about 51 per cent in 2007-08 and 46 per cent in 2006-07. Despite oft-repeated complaints that the real estate sector was credit starved, statistics provided by the RBI show that real-estate loans grew 61.4 per cent last year to Rs 9,0765 crore compared with a 27 per cent growth in 2007-08.
Similarly, loans to NBFCs also grew by 42 per cent during the last year to Rs 90,521 crore.
LOAN PRODUCT OF STATE BANK OF INDIA State Bank of India Home Loan: Introduction:
There are number of finance companies offering cheap home loans. State Bank Of India is one such government bank, which understands your needs and helps you to purchase the homes of your dreams. A lot of hard work goes into building a home, owning it and then decorating it. State Bank Of India understands your efforts and for that matter they have designed their Home Loan schemes in a way to make the process hassle free and full transparency has been offered. The Unique Features of their Home Loan Schemes are no cap on maximum loan amount for purchase or construction of house or flat. They give an option to club the income of your partner and children to compute eligible loan amount. You can repay the loan up to 70 years of age. The home loan schemes also have free personal accident insurance cover. They charge no administration fee or application fee. Provision for downward refixation of EMI in respect of floating rate
borrowers who avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision of interest rate by 1% or more. They provide Home Loans for various purposes such as: for the purchase or construction of a new house or flat, purchase of an already built house or flat and if you want to buy a plot of land for construction of house. Finance for home is also provided if you want to undertake extension, repair, renovation, and alteration of an existing house or flat, if you wish to buy furniture, furnishings and other commodities for your home. You are Eligible for taking Home Loan if you have a minimum age of 21 years as on the date on which your loan is sanctioned. They charge a processing fee that comes to 0.50 % of loan amount including service tax. Their Interest Rate amount is of two types- Floating Interest Rate and Fixed Interest Rate. Floating Interest Rate is linked to State Bank Advance Rate- SBAR. The interest rate under Floating Interest Rate is 10.75% and on Fixed Interest Rate it is 9.50% upto first five years then 9.75% above five years and upto ten years. The most important aspect is that you need to submit duly filled documents as mentioned in their schemes. You need to complete application form, passport size photograph, a proof of identity, proof of Residence, proof of business address and all documents relating to sale deed or agreement deed, tax paid receipt, statement of bank account etc. State Bank of India has four types of Home Loan schemes under which they provide finance: 'SBI-Flexi' Home Loans 'SBI-Maxgain' Home Loans 'SBI-Realty' Home Loans 'SBI-Freedom' Home Loans
they have a package for exclusive benefits like complimentary international ATM- Debit card. They provide complimentary SBI Classic and International Credit Card with waiver of joining and first year's fees. State Bank Of India provides an option for E- Banking. There is a confessional package for car home loan borrowers. SBI has been awarded The Most Preferred Home Loan Provider by AWAAZ Consumer
Awards. SBI home loans give concession on interest rates on GREEN HOMES under its environment protection program. SBI has different options for loan borrowers such as SBI Flexi home loans provides borrowers a one time irrevocable option to choose one of the three combinations of fixed and floating interest rates and also to choose the order in which the fixed and floating rate will be availed. The other is SBI- Maxgain home loans - earn optimal yield on savings and minimize interest burden on home loans, with no extra cost. SBI Realty Home loans - purchase a plot of land for house construction. SBI Freedom Home loans who want to invest in a property without mortgaging the same. SBI offers SBI Optima additional home loans and SBI Homeline special personal loans for existing home loan borrowers who have a repayment record of 3 years, etc.
Provision for on the spot "In principle" approval. Loan sanctioned within 6 days of submission of required documents. Option to avail Home Loan as a Term Loan or as an Overdraft facility to save on interest and maximise gains (see SBI MaxGain in the following sections) Option to club income of your spouse and children to compute eligible loan amount Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost Repayment permitted upto 70 years of age Free personal accident insurance cover Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) Interest calculated on daily reducing balance basis, and starts from the date of disbursement. Plus schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies.
Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat Option to avail loan at the place of employment or at the place of construction
Eligibility:
SBI home loans are available for purchase or construction of house or flat; purchase of a plot of land for construction of house; extension, repair, renovation, alteration of an existing house or flat; purchase of furnishings and consumer durables as a part of the project cost, takeover of an existing loan from other banks or housing finance companies.
Age:
Minimum age of applicant is 18 years as on the date of sanction and maximum age limit for a home loan borrower is 70 years, i.e. the age by which the loan should be fully repaid.
Loan Amount:
Applicants aged between 18 and 45 years, can get 60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI) and for applicants aged over 45 years of age; it is 48 times NMI or 4 times NAI. This will be subject to a maximum EMI/NMI ratio as under:
Net Annual Income Upto Rs.2 lacs Above Rs.2 lac to Rs. 5 lacs Above Rs. 5 lacs
Margin:
The SBI home loan borrower should pay 20% of the cost of home for loans up to Rs 1 crore and 25% for loans above Rs 1 crore.
Repayment Period:
The maximum repayment period for home loan is 20 years for applicants below 45 years and 15 years for applicant above 45 years.
Documents Required:
1. Completed application form 2. Passport size photograph 3. Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License 4. Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID 5. Proof of business address in respect of businessmen/ industrialists 6. Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer) 7. Copy of approved plan and approval from the Local Body 8. Statement of Bank Account/ Pass Book for last 6 months Highlights: Interest Rate Loan Amount Tenure Time to Process Loan Interest Rates Tenure 20 - 25 Yrs. Interest Type Floating Interest Rate 11 % Offer 11.25% Min. - Rs 100000 Max. - Rs 20000000 Min. - 5 Yrs. Max. - 20 Yrs. 7 days
Security:
Equitable mortgage of the property Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged
Moratorium:
Up to 18 months from the date of disbursement of first installment or 2 months after final disbursement in respect of loans for construction of new house/ flat (moratorium period will be included in the maximum repayment period)
Disbursement:
In lump sum direct in favour of the builder/ seller in respect of outright purchase In stages depending upon the actual progress of work in respect of construction of house/ flat etc.
Documents:
Completed application form Passport size photograph Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/
Passport/ Voters ID Proof of business address in respect of businessmen/ industrialists Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer) Copy of approved plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months
SBI-Maxgain
Home Loans:
An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues. Minimum Loan Amount: Rs.5 lacs (Other terms and conditions as applicable to regular Home Loans)
SBI-Realty
Home Loans:
A unique product if you are on the look out for a loan to purchase a plot of land for house construction. The loan is available for a maximum amount of Rs.20 lacs* and with a
comfortable repayment period of upto 15 years. You are also eligible to avail another Housing Loan for construction of house on the plot financed above with the benefit of running both the loans concurrently. (House construction should commence within 2 years from the date of a ailment of SBIRealty Housing Loan) (Other terms and conditions as applicable to regular Home Loans) (* relaxation considered on case to case basis)
borrowers. In case of take-over of Home Loans from other Banks/HFCs, the borrower should have fulfilled the above conditions with the present Bank/HFC. Purpose: to meet expenditure towards major repair, SBI-Optima Additional Home Loans SBI-Homeline Special Personal Loans renovation, addition to their house/flat, purchase of furniture, fixtures and consumer durables General purpose loan to meet expenditure to meet foreseen/unforeseen contingencies
Eligibility: 18 times NMI (for salaried borrowers)/ SBI-Optima Additional Home Loans 1 times NAI ( for others) or (i)25% of the original project cost of house/flat (ii) 85% of the cost of repairs etc. or (iii) gap between 85% of the current market price of flat/house and actual outstanding loan dues , Which ever is lower (EMI/NMI ratio of all loans should not exceed 60%) SBI-Homeline Special Personal Loans 18 times NMI (for salaried borrowers)/ 1 times NAI (for others)
Inbuilt provision for availment of the loans on the expiry of each bloc of 5 years, the first bloc commencing on the expiry of 5 years from the date of sanction of original Home Loan.
Original Home Loan and all SBI-Optima Home Loans/SBI-Home Line Personal Loans can run concurrently Comfortable repayment obligations Tenure of the loans equal to the residual maturity of the original Home Loans -
PRASHASAN PLUS, TEACHER PLUS AND OIL PLUS: The above plus schemes offer concessional interest rate of 0.25% below the applicable interest rates on Home Loans to niche client groups like Government Employees, Teachers, employees of public sector oil companies etc.
Loans (i.e. Sanctioned limits) up to Rs.30 Lacs Loan amount Loan Tenure -> Up to 5 Yrs Loans up to Rs.30 lacs for new loans sanctioned on or after 01.01.2011 Special product level discount which may be withdrawn/revised solely at the discretion of the Bank. Effective Rate Loans (i.e. Sanctioned limits) above Rs.30 Lacs and up to Rs.75 Lacs Loan Tenure Up to 5 Yrs -> Above Rs.30 lacs and up Linkage with 2.00% below to Rs.75 Lacs w.e.f. 01.01.2011 Effective rate Loans (i.e. Sanctioned limits) above Rs.75 Lacs Above Rs.75 Lacs w.e.f. 01.01.2011 Linkage with SBAR 2.00% below SBAR 1.75% below SBAR 10.50% p.a. 1.25% below SBAR 11.00% p.a. 10.25%p.a. 10.50% p.a. 10.75% p.a. SBAR SBAR Above 5 Yrs Above 15 Yrs & up to 15 Yrs & up to 25 Yrs 1.75% below 1.50% below SBAR SBAR 9.75% p.a.10.00% p.a. 10.25% p.a. Linkage with SBAR in the loan 2.25% document below SBAR, 0.25% Above 5 Above 15 Yrs & up to Yrs & up to 15 Yrs 25 Yrs 2.00 below 1.75% below SBAR 0.25% SBAR 0.25%
B) Fixed rates - Re-payment Up to 10 Years (w.e.f. 01.01.2011): Fixed rates (subject to force majeure clause and interest rate reset at the end of every two years on the basis of fixed interest rates prevailing at that time) Up to Rs. 30 Lacs 11.25% p.a. Above Rs. 30 Lacs 12.25% p.a.
c) Loans for deposit of earnest money for allotment of a plot / house / flat
(Floating rates only)- W.E.F. 01.01.2011 - 1% above SBAR, Min. 13.25% p.a. Loan amount Up to Rs.30 Lacs Margin 20%
20% 25%
Highlights
Salaried Loan Scheme Loan Type Loan Amount Tenure Interest Rate Time to Process Loan Saral Personal Loan Term Loan
Max Loan: 12 times the Max Loan: 12 times the monthly income monthly income Min. - 12 Yrs. Min. - 16.5 % Max. - 16.5 % 2 days Min. - 12 Yrs. Min. - 16.5 % Max. - 16.5 % 2 days
NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE. SBI SARAL PERSONAL LOAN:
Do you want funds readily available to you whenever you desire or need, be it a sudden vacation that you plan with your family or urgent funds required for medical treatment? SBI Saral - Personal Loan is the answer to your questions. Access this facility from over 3000 branches across the country and confidently face the challenge of meeting any kind of personal expenses!
The Scheme:
Purpose:
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.)
Eligibility:
you are eligible if you are a salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.
Salient Features:
Loan Amount: Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24, 000/- in metro and urban centres Rs.10, 000/- in rural/semi-urban centres
Documents Required: important documents to be furnished while opening a Personal Loan Account: For existing bank customers:
Passport size photograph From salaried individuals: Latest salary slip and Form 16
Margin:
we do not insist on any margin amount. Interest Rates: 4.25% above SBAR Floating i.e. 16.50% p.a. (w.e.f. 01.01.2011) Repayment: The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.
Security: NIL
Processing Fee: Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges. Enjoy the SBI Advantage: Low interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges; only 2%-3% of loan amount No hidden costs or administrative charges. No security required which means minimal documentationsomething that you had always wanted. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan (1% of the loan amount will be charged if you
Simultaneously, SBI also reduced interest rates on deposits under two special schemes by 0.25 per cent to 9 per cent with effect from October 8. "We reduced interest rates on Smart Deposit Scheme of 550 days and on Super Saver Term Deposit of 4-5 years duration by 0.25 per cent to 9 per cent," PTI quoted SBI CGM Personal Banking Sangeet Shukla as saying. For senior citizens too, it was good news as SBI announced its entry into reverse mortgage, through which they can avail loan, released in monthly or quarterly installments or as a lump sum payment at the beginning, against the security of the house they own and live in.
RESEARCH METHDOLOGY
INTRODUCTION:
Research in Common parlance refers to search for Knowledge. Its a scientific and systematic search for pertinent information on specific topic. Research is an art of Scientific investigation its mean Systematized effort to gain new Knowledge.
SAMPLE DESIGN
Sample design refers to the technique or the procedure the researcher would adopt in selecting item for the Sample. Sample design may be well lay down the number of items to be included in the sample that is the size of the sample design is determined before data are collected. There are many Sample designs from which a researcher can choose some designs are relatively more precise and easier to apply than other researcher must select a sample design which should be reliable and appropriate for his research study.
DATA COLLECTION
Basically there are two main method of data Collection primary data and Secondary data. Primary data are those which are Colleted freshly and the first time and thus happen to be original in character. Other hand Secondary data are those which have already been collected by someone else and which have already been passed through the Statistical granting
.PRIMARY
DATA
QUESTIONNAIRE METHOD: This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers private and public organization and even by governments in this method a questionnaire Consists of a number of question printed or typed in definite order on a form or set of form I have made a Questionnaire for Survey. The inquiry was done of the respondents through questionnaire in which the same set of questions were asked to the very respondents
falling within out sample. The advantage is that it is simple to administer easy to tabulate and analyse.
PERSONAL INTERVIEWS:
The interview method of collecting data involves presentation of oral verbal stimuli and reply in term of oral verbal responses. We have used this method through personal interview.
SECONDARY DATA:
Secondary data means data that are already available they refer to the data which have already been collected and analyzed by someone else. We have used for it following method Internet and journals of company. The search was done on internet and related magazines, companys websites to extract relevant information. The other necessary information regarding ICICI & SBI Bank products and other bank products and offerings were obtained through printed sources such as Handouts, Pamphlets, Advertisements and circulars etc
LIMITATIONS
Due to the financial & time constraints the study was limited to our place thus the conclusion arrived in the end rely in short term experience.
Being an opinion survey the personal bases of the respondents might have entered
into their responses. Time constraints resource constraints were some of the limitations. The selected sample might have affected the results of the study therefore the findings & conclusions of the study are only suggestive & not conclusive. Sample was chosen according to convenience & judgment sampling & not according to random sampling.
FACTS &FINDINGS
As part of the project we had make a survey with the help of questionnaire that has to taken to different people to get perception towards ICICI and SBI product the questionnaire is passed on the general public and requested to give their opinion toward ICICI and SBI product the questionnaire Consists of both open and close ended question the main motto behind the Study is to find out how people react against the ICICI and SBI Home Loan And Personal Loan products and aware about the benefits of these products. In research methodology we have used random sampling and sample size was 50. Simple random sampling method is followed where every member of population have equal chance of been selected. The questionnaire is administrated on sample to find out their perception to wards ICICI and SBI Banking loan product and benefits of product. After analysis of questionnaire Conclusions were made based on finding from pie charts.
0% 35%
Above this chart show that I am conduct in this survey occupation peoples 14% student, 48% service mans 34% business men part of this survey report. What is your age group?
Below-20 20-25 30-35 35-45 above 45
35% 30% 25% 20% 15% 10% 5% 0%
30% 18%
16%
Series1
4%
Below- 20-25 20
30-35
35-45
above 45
Interpretation
This chart represents that 32% customer which belongs to 35-32age group. 30% customers belong to age group between 30-35, 18% & 16% customers which belong to age group between 20-25 and above 45. Only 4% customers that age group below 20 years. What is your income level (monthly)?
5000-10000 10000-40000 40000-100000 above 100000 22% 42% 14% 22%
42%
22% 14%
22%
Series1
500010000
1000040000
40000100000
above 100000
Here we can see by this graph that income level of the peoples mainly is 10000-40000 monthly. Whose wants to take loan from different public and private banks. Do you want to take loan?
yes no 78% 22%
Interpretation In this survey I found that 78% respondents who want to take the loan whereas 22% respondents do not want to take the loan from any others institutions.
an
lo an
he r
ho m e
ot
pe
no
re qu ire
an y
m en
lo
Interpretation This table represents that future loan requirements for the respondents from 34% in personal loan, 22% from the home loan and 28% from other instruments and 16% respondents which have not give any response. from where you would like to take loan?
private bank NBFC'S govt. bank Gramine bank others
60% 50% 40% 30% 20% 10% 0% 52% 38% Series1 4% 4% 2%
38% 4% 52% 4% 2%
ba nk
NB FC 'S go vt .b an G k ra m in e ba nk
Interpitation In survey I found that most of the respondents want to take the loan from government banks, whereas 38% respondents want to take loan from the private banks. 4% respondents want to take loan from NBFCS and 4% from Gramine banks and 2% from other institutions. Before taking a loan from a particular bank, you look for?
interest rate services unique features good relationship others 52% 14% 10% 18% 6%
pr iv
at e
ot he rs
6% 18% 52% interest rate services unique features good relationship others 14% 10%
Interpretation According to this chart I found in survey that 52% respondents look before taking a loan from particular bank interest rate and 14% respondents services, 10% unique features, 18% bank relationship with customers and 6% respondents see others features provide by the bank.
8% 10% 42% 18% 50000 100000 100000-150000 150000-200000 above 200000 22%
Interpretation In this survey I found that 8% respondents interested up to 50000, 10% respondents interested up to 100000, 18% respondents interested between 100000-150000, 22% respondents interested between 150000-200000, and 42% respondents which want to take loan above 200000.
Have you ever taken loan from any of the following banks?
SBI ICICI BANK SBBJ BANK OF INDIA OHTERS 26% 28% 12% 10% 24%
26%
28% 24%
12%
10%
Series1
SBI
ICICI BANK
SBBJ
Interpretation This tables represents that 26% respondents take loan from state bank of India, 28% take loan from ICICI bank ,12% takes loan from state bank of Bikaner and Jaipur , 10% takes loan from Bank of India , and 24% takes loan from others.
Interpretation This chart represent that how much of customers know about the credit norms of banks yes and no. 76% respondents know about the credit norms and 24% respondents not know about the credit norms.
Interpretation In this survey I found that know about the credit norms of the banks by the help of advertisement 26%, by friends 36% and others sources like bank employee, agents, sales persons 38%
ICICI BANK
SWOT ANALYSIS:
STRENGTHS:
All the branches are interconnected which give the unique facility of anywhere banking. All operations of the bank are carried on with the help of computers thus transaction are carried with greater efficiency. ICICI bank provide after loan services for the customers.
Employees of ICICI Bank make good relationship with the customers. Documentations process of loan is easily other banks. High number of executives which make the work of customers very convenient. Maximum customer base in Jaipur; as compared to any of the bank.
WEAKNESS:
Less awareness among general masses about the different LOAN PRODUCTS provided by bank. Peoples faith in private banks is still not very high. Dissatisfaction among customers due to improper and lack of after sales services. Exchange rates of demand draft are high
OPPORTUNITIES:
Peoples dissatisfaction towards nationalized banks in terms of services has turned to be blessing for private banks. Among the private players ICICI Bank have the excellent brand image. There lies a great scope in forex department which is unutilized to a greater extent can yield much better results by which the bank can increase its volume. Special services can be provided to women as the womens role is becoming prominent. The trust of people is increasing on the banks rather then going for financial institution. There is vast untapped opportunity which lies for every bank in the rural areas.
THREATS:
Reorganization of PSUs. The all PSUs have started to redefine their services to attract customers attention. A few foreign banks have been permitted to increase their number branches and its entry has taken away some business of the existing banks.
Stringent norms by RBI in any time in future can be a threat to private banks as their activities can be adversely affected.
RECOMMENDATIONS
Banks should have extensive advertising to attract potential Customers by giving advertisement in t.v commercials, newspaper so that people have knowledge of their new policies. Adequate training improves the skill of employees; a company which has well trained employees has good future because they are the assets of the company. Company should put stress on market Capture by increasing their policies and plans. Adequate transparency in product plans and policies should be as it increase the trust of customers and build healthy relationship. Company should maintain proper Customer relationship by solving the problems of customers & helping them in understanding the home loan plans. A weekly review may be publishing for internal or external Competitive business. Time to time bank should launch new loan products for the customers with extra unique features.
CONCLUSION
There was a great experience working with the ICICI Bank and delighted to serve for the Company. This is working for a noble service by providing home loans to needed person.
In the due course of summer training I met with many people. I come to the conclusion that most of the people are having an urge to earn more than their current status, but they are not getting any kind of right opportunity they desire, in which mode they earn; what they need in a legal and better way. In my study I draw the conclusion that getting home loan is a difficult task for people and there are various companies in home loan field. Due to tough competition there is regular decline of interest rate so profit is low. Thus company should make such plans and policies to maximized customer satisfaction and is resulted into popularity of company among public and can reach at the maximum height of success. Proper training to the employees increases their confidence and helps them in building the great atmosphere in organization.
BIBLIOGRAPHY
Internet:
Magazines:
Business Today (Various Issues) Business World (Various Issues) Business India (Various Issues)
News Papers:
Economic times Business standard Business line Financial express
Text books:
Research Methodology By C.R.Kothari. Investment Management By Avadhani
Questionnaire
Dear Sir/Madam, I am the student of S.S JAIN SUBODH P.G MAHILA MAHAVIDHYALAYA, Jaipur. As part of the requirements for my project study I am required to do a research based project on COMPARATIVE STUDY OF PERSONAL AND HOME LOANS OF ICICI V/S STATE BANK OF INDIA Kindly spend a few minutes of your valuable time and fill in this questionnaire. Every information given by you will be only for Academic purpose.
Q.1
a) c)
Q.2 a) c) e)
What is your Age Group? <20 30-35 Above 45 years b) d) 20-25 35-45
Q.3 a)
c)
40000-100000
d)
above 100000
Q.4 a)
Q.5 a) c)
What is your future loan requirement? Personal loan Any other b) Home loan d) No requirement
Q.6 a) c) e)
From where you would like to take loan? Private Bank Government Bank b) d) NBFCS Gramine Bank
Q.7 a) c) e)
Before taking a loan from a particular Bank, you look for? Interest rate Unique feature b) d) Services Relationship with the customers
Q.8 a) c) e)
How much Amount of loan you would like to take? 50,000 1, 00,000-1, 50,000 Above 2, 00,000 b) d) 1, 00,000 1, 50,000-2, 00,000
Q.9 a)
Have you ever taken loan from any of the following institutions? SBI b) ICICI BANK
c) e)
SBBJ
d)
BANK OF INDIA
Q.10
Do you think about Private sector loan is better than Public sector loans? If Yes: Why, If No Why?
Q.11 a)
Q.12 How you know about the credit norms of the above specified Banks? a) c) Advertisement b) friends
Q.13 what suggestions you want to give for Bank to improve their services? ________________________________________________________________ ________________________________________________________________ __________________________________________________________
Thank You