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Perseverance, inspiration and motivation have played a great role in the

success of any venture. It would be incomplete to submit this report without
acknowledging the people behind this endeavor and without this report
without acknowledging the people behind this endeavor and without whose
support I wouldn’t have able to achieve this.
It gives us immense pleasure to express our gratitude to everyone who
shared with me their precious time and effort during the project.
A mammoth job like this calls for both intellectual nourishment and
encouragement. I would like to thank Mr. Rajeev bhargav
( Branch Head HDFC, Jaipur) for giving me an opportunity to
work on such a fabulous project .


S.No. Contents
1 Preface
2 Aims of Study
3 Age Profile
4 Introduction
5 Mortgage loan
6 File Process
7 Loans for every need
8 Achievements of HDFC Bank
9 Research Methodology
10 Observation
11 Findings
12 Comparative Analysis
13 Analysis Part
14 Confusion
15 Suggestions/Recommendations
16 SWOT Analysis
17 Appendix or Questionnaire
18 Bibliography
Several researches are conducted every year. But very little care is taken to
am important are a relating to research methodology. Due to the ignorance or
absence of the research methodology, the study proves to be futile. In the
context of planning, organizing and development, the importance of research
depend upon its quality and not in quantity.
I have use appropriate methodology for my research study. It has planned,
organized and developed in a very systematic manner. Great attention has
been given towards the quality of the research. I tried to the best of my
knowledge, experience, sincerity, cautiousness, and concentration with
analytical power for this research study. This research study is conducted for
the HDFC BANK branch Jaipur regarding the product and services. But and
to the new budding of researchers who will conduct such type of research in
future to enhance their work.
I would like to convey my sincere gratitude towards Mr. Rajeev Bhargava
(Branch Head HDFC, Jaipur) I would also like to thank Mr Taral
Pathak(Training and placement officer AES PGIBM) . They guided me at
each and every step in our research programme. They motivated me to
collect fair, accurate, reliable and unbiased information.
I would be failing my duty if I do not express my sincere gratitude towards
my parents friend and colleagues. They significantly contributed their
support during the course of my project.
At last I extend my sincere thankful to all those customer who have given
me reliable and valuable information regarding service in service centers.
The study helps to know about the market position of the bank and the
opinion of the customers and respondents about the bank as well as the
service provided in respect of various products offered by the bank. The
respondents were the customers as well as the non customers. Some of them
were the employees of HDFC Bank and other were the non-employee.
The aims of the study was to be well aware about the retail financing
products or assets like personal Loan, Mortgage Loan, Auto Finance, Home
Loan, Commercial Vehicles etc.

HDFC bank HDFCBK was incorporated in Aug. 1994 and promoted by

Housing Development Finance Corporation limited (HDFC) India’s premier
housing finance company, which also enjoys an impeccable track record in
India as well as in international markets. HDFC was amongst the first to
receive an in ‘principle’ approval from 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. HDFC bank concentrates in four areas-corporate banking,
treasury management, custodial services and retail banking. It has entered
the banning consortia of over 50 corporate for providing working capital
finance trade services, corporate finance and merchant banking. It is also
providing sophisticated.

Product structures, sound advice and fine pricing mainly in areas of foreign
exchange and derivatives, money markets and debt trading and equity
research through its state-of-the –art dealing room with its sophisticated and
customer friendly facilities & services including multi-branch access, ATM
& cluster deposits and is well positioned and is well positioned to establish a
significant niche for itself in retail banking.

In Feb. 2000, times bank has been amalgamated with the bank. This is an
important milestone in the history of bank as well as Indian banking sector,
being the first merger of two private sector banks. This adds significant
value to bank in terms of increased branch network, expanded geographic
reach, enhanced customer base, skilled manpower, etc. Reverently HDFCBK
& life insurance corporation from alliance for online facility for payment of
insurance premium . With this facility, LIC policyholders can now pay their
insurance premiums through HDFC bank’s on -line payment facility .
HDFCBK has become the first private sector bank to be authorized by the
central of direct taxes as well as the RBI to accept direct taxes, commencing
April 01,2001. the taxes will be accepted at specified branches of the bank.
Also it has announced a strategic tie-up with Bangalore based business
solutions software developer tally solution Pvt (TSPL) for developing and
offering products and services facilitating on-line accounting and banking
services to SME’s (small and medium enterprise). in 2001-02 the bank was
listed on the new York stock exchange in the form of ADS. Each ADS
represents 3 equity shares. Consequent to the issue . The paid up capital of
the bank has increased by RS.37.42 corers.

A loan is a kind of advance made with or without security. In the case

of a loan two banks makes a Lump sum payment to the borrowers. It is
given tour a fixed period at an agreed rate of interest.

In a present scenario it is loan that is running the life in more

meaningful manner. Through loan or Borrowing or credit or funding a part
of society (middle +Lower) enjoy well in advance. I think loan is getting
alone with our life.

a) Being a career objective develop understanding about the retail loan

assets i.e mortgage loan, personal loan, auto loans, home loan.
b) Why the NPA’s are taking place in commercial Banking.
c) Policy of credit management which approves (credit approval memo).
d) Making the competitive study about the different segments of loans.
e) To know the valuation criteria of technical feasibility, financial
viability and role of F.I agency.
f) Key-Criteria of Loan Funding.

Conditions of Funding Financing:-
(Policy Snapshot)
i) Loan Amount
Minimum =Rs2 Maximum = 1 Crore.
ii) Minimum Property Value
Residential = 8 Laces Commercial = Rs 15 Lacs.
iii) Income of Maximum 3 persons to be considered for eligibility
iv) Age Angle
minimum = 21 years
maximum = Salaried – (60 years)
Self – employed – (65 years)
v) Age of property should not exceed 40 years at the end of the Loan.
vi) Property to not be situated in Negative area List as per HDFC
vii) Financing Pattern
TV (Property) Retail Premium
Residential 55% 60%
Commercial 45% 50%
(i) Retail mortgage take-over (RMT)
(ii) Premium mortgagee takeovers (PMT)
(iii) Liquid Income products (LIP)
(iv) Gross Turnover Product (GTP)
(v) Gross Receipts Products (GRP)
(vi) Banking Products (BKP)

1. RMT
a) Loan Amount up to Rs. 50 Local
b) Minimum Repayment track records of 18 months with maximum 2
c) Loan Eligibility
= Principal + (No. of EMI’s X EMI paid)
2. PMT
Loan Amount = 50-100 Lecs.
Loan eligibility = According to RMT.
3. LIP
a) Applicable for traders Service industry etc. (NON-Manufacturing
b) Maximum & Minimum criteria
Minimum = RS 5 Lacs Maximum = 25 Lacs.
c) Documentation :- Normal including financial & 12 months Bank
(4) GTP (Gross Turnover Product):-
a) Applicable for Traders, Distributors & Businesses (Non-
b) 10% of gross turnover to be taken as net profit
c) Loan Eligibility – As per normal calculation based on re-
worked net profit.
(5) Gross Receipts Product (GRP)
a) Applicable – Doctors & Architects only.
b) Maximum – 25 Lacs
c) 50% of Gross Receipts to Take as net profit
(6) Banking Product (BKP):-
a). Loan Range – 25 Lacs.
b) No Financial or income documents required
c) Only Saving & current A/C Customers will be evaluated.
d) Maximum LTV will be 40% (both Residential & Commercial)
e) Banking Norms.
i) AV. balance (an a daily basis) to be calculate adjusted for cheques
returns (Last 12 months statement)
(ii) Not more than 2 cheques bouncing over 6 month’s period.
(iii) Loan’s funding
Up to Rs. 15 Lacs
= Average balance / EMI should be 2 times
(iv) Up to Rs 25 Lacs
= Average Balance / EMI Should be 3 times

Documentation Requirement:-
 Duly filled application form.
 Recent passport size photograph of applicants.
 Form-16 for last 2 years for salaried applicants.
 Acknowledged copies of income lax returns & computation of income
for last 2 years.
 Resident / ID proof of all applicants.
 For non-Salaried applicants Copies of audited financial statement s for
last 2 years for the firm company in which the applicant / co-applicnts
is the partner /owner/ Director (As the Case may) certified by a
C.A.(Along with name & M.N.)


Customers – DCA- BANKS- CPA (Central Processing Agency – FI

Agency) – Personal – Meeting or Interview – Survey Conducted – Back to
Bank with report attached – CAM decides about Sanction of Loan –
Approves – cheques in the hands of customers.

Now, our loans come to you in easy –to –pay monthly installments, and are
available with easy documentation and quick delivery.

Personal loans: Take a loan of up to Rs. 15 lacs for a wedding, education,

purchase of a computer or an exciting holiday.

New car loans and used car loans :- finance up to 90% of the cost of a car
,new or used ! and the loans come to you with easy documentation and
speedy processing at attractive interest rates.

Loans against shares:- Get an overdraft up to Rs. 10 lacs at an attractive

interest rate against physical shares ,up to 50% of the market value of your
shares. In case of Demate shares, you can get a loans Against shares of up to
65% of the market value of your shares, till Rs. 20 lacs.

Two wheeler & consumer Loans :- To help you buy the best durables for
your home .

Demat account:- protect your shares from damage , loss and theft, by
maintaining your shares in electronic form. you can also access your demate
account on the interest .

Current Account :- Get a personalised cheques book , monthly account

statements , inter-branch banking and much more.
Mutual funds :- Apart from a wide choice of mutual funds to suit customer
needs you benefit from export advice on choosing the right funds based on
in depth market analysis.

International credit card:- Get an option of silver ,gold ,or Health plus
credit card accepted worldwide from a world-class bank .

NRI Services : A comprehensive range, backed by unmatched features and

world-class service, ensures NRI’s all the banking support they need .

Forex Facilities: Avail of foreign currency, travellers cheques, foreign

exchange demand drafts, to meet travel needs .

Insurance : HDFC Bank now brings Life Insurance and Pension solutions
like risk cover Scheme, Children’s Plan and Personal Plan from HDFC
standard Life Insurance Company Ltd .
* Insurance is the subject mater of solicitation.

 The bank was selected for the economics times award-corporate

excellence foe emerging company.

 The bank has continued to receive awards and gain recognition from
various leading domestic and international publications during2002-

 The bank was selected as “best bank in India 2002” by Euro money,”
best local bank in India 2002 by finance Asia.

 The bank was also rated as the “best domestic commercial bank 2002”
by Asia money .

 The bank was selected from amongst over 400 nominations from 24
countries, to be a recipient of the computer world honors 2002 award
in the finance, insurance and real estate category for its use of
information technology.

DATA SOURCE:- New and previous record of existing customers.

RESEARCH APPROACH:- survey Approach

RESEARCH INSTRUMENT:- Structured questionnaire


 ELEMENT: Existing and new customers

 SAMPLE UNIT: Delhi and jaipur

 SAMPLING METHOD: Random sampling


 DATA COLLECTION: Personal Interview Method


 Personal interview of the entire respondent was carried out .



Corporate Houses Covered:

 Times of India Building

 Sterling group of companies
 Godrej Group of Companies
 L & T Head Office

 Taj President
 Birla Sunlife Insurance
 East Coast Pvt Ltd
 Samsung India
 Sansui India
 Print Info Tech
 Kodak

1. People are of the view that initially bank provides very good
services and later on it starts deteriorating.
2. People are afraid of the hidden cost which most of the banks
generally charges later on .
3. Transaction Rate of the De-mate A/C is very High as Compared
to other DP.
4. People are very unsatisfied with HDFC ATM Network .
5. Instead of Folio maintenance charges , transation charges
should be lowered down.

a) 50% People of country is covered by loan umbrella.

b) Private Banks (Specially ICICI & HDFC) are playing a key-role in
mortgage loan segments.
c) People seems to be problematic with regards to nationalised Banks so
for as formalities is concerned.
d) 5% Defaulter cases were estimated in entire project.
e) In cut-throat competition rate of interest (ROI) plays vital role in
sanctioning to loan.
f) Private finance companies like GE country wide are taking market
shore of entire loan segment.
g) Deposit the money in nationalised Banks due to high ROI, Pick-up the
money from private banks due to lower ROI.
h) Working capital management credit management, risk management
system is up to the mark.
i) In my finding it seems that loan has become part and parcel in every
corner of life.

We also did analysis about net banking and come to a conclusion that:-
HDFC bank gives a convenient way of accessing your bank account from
anywhere and at any time. When your register for net banking, HDFC bank
issues you a password, which you can use with your customer identification
number to do all your banking transactions, round the clock.
All you can do through Net banking of HDFC bank are:-
1. Account balance enquiry.
2. Account statement enquiry.
3. F.D. Enquiry.
4. Net F.D. request.
5. Funds.
6. TDS Enquiry.
7. Demand Draft.
8. Stop payment request.
9. Cheque status enquiry.
10.Cheque book request.
11.Demat on the net.
Experience a live Demo of net banking. Log on to
whereas Global trust bank provides such facilities like:
1. Account information.
2. Depository enquiry.
3. Requests.
4. Transfers.



1. Mortgage (Loan Secured 11% Rs. 1378 Rs. I Crore More

Against Property
construction Unsecured 8% Rs. 956 Less than - do -
Loan Mortgage
3. Personal or Cash
Loan Unsecured 24-32% Rs. 3612 Rs. 10 Lacs - Less Requirements
4. Auto Finance
Unsecured 5-6% Rs. 778 Mutually -High-
Personal Loan

28% Mortgage

16% Loan
21% Home Loan

(1) Huge-crowd on the road due to auto finance

(2) Personal Loan is kecking out the personal problems of people.
(3) Loan against property (Mortgage Loan) is also growing concept due
to rising in price of land due to not being charged of depreciation on
(4) Home Loan is also building block to build up the building of every
dreams exist in society

On the Analysis with the peer banks, following weaknesses in the

system were found out. The possible remedy is also suggested hereunder:

(i) Branch expansion should be expanded to small cities to capture

huge market share.
(ii) Documentation, Must be Minimize for easy disbursement.
(iii) NPA mechanism must be made easy for the betterment of the
(iv) Branch expansion should be touching the entire Jaipur City
because all the buildings of banks exist is c-scheme mostly.
(v) Should also make attention to the capital market services i.e.
Depository services, custodian, de-mat through its subsidiary
following the ICICI. Bank with subsidiary I-CEK.
(vi) Analysis the policies of ICICI Bank, standard chartered. Banks &
make the action plan understanding the expectations of borrowers.
(vii) There are so may people who are interested in opening their
account in HDFC Bank.
(viii) Majority of people access to net.
(ix) Most of the people are aware of net banking. But very few people
use it, as they say that they think net is not safe and doing banking
transaction on net would not prove safe.
(x) A, lot of people agree to this thing that net is convenient and time
(xi) Higher ATMS in Jaipur rather than any other banks in Jaipur.
(xii) We came to conclusion that people think net banking should be
very with tight security.
(xiii) Bank must strive continuously to come out with the product
innovation ahead of its competitors. For this, the bank needs to
identify and enter into a niche market. For example, it might focus
on the youth / student oriented products and tap its huge potential.
(xiv) Kotler says, “Its 5 times as costly to make a new customers and
just not believing in increasing their numbers. This requires giving
more attention to its existing base of customers by way of better
after sales service. For example, motivation should be set high for
the employees of the bank to attend and provide solution to the
customer’s query and if possible check out with the preferred
customers at regular intervals.
(xv) The bank must rejuvenate its housing loan plans (earlier core
activity) . it has lost substantially to its rivals in this sector . it must
come out with some attractive policies in this regard.
(xvi) The bank focuses mainly on the Metropolitan cities. It lacks
geographical reach in other important centers (semi urban and
rural) in the country which are considered to be the main
mobilization centers. It must take a lead to its competitors by
opening up more and more branches and there by registering its
presence in these important areas.
(xvii) Creating awareness in the customers to make use of net banking /
phone banking facilities would enable bank to cut down its cost of
teller transaction, The money, thus saved, could be utilized in
providing better service to its customers.
(xviii)Cross selling of products to customers could enhance the
company’s bottom line to a great extent.

The most important aspect is none but the people working in the
organization. Without their willing co operation, all other efforts are
rendered useless. So, the bank must continuously see to it that their
employees are always satisfied. The perks given to them should match the
perks prevailing in the industry. Some discretion can also be given to them
in certain regards. Thy must always be appreciated for the good work done
by them.
(a) Leader in home loan segment
(b) Account having in HDFC Bank will get more facilities.
(c) Credits at the sole discretion of HDFC Bank.
(a) Strict Policy of funding
(b) Disbursement mechanism is not unto the mark.
(c) Personal Loan Policy of bank is not up to the mark compared to
(d) Defaulter cases.
(a) To tap the huge market share.
(b) To maintain the leadership in home loan segment.
(C) To tape the opportunities lying in Auto finance.
(a) Major Private players like ICICI, standard chartered.
(b) May lose the leadership position in any time if competitors
wins the game.
(c) RBI Policy.

“Corporate Finance and Merchant Banking”

As a prerequisite for two years full time regular degree course of

Master in Business Administration

Submitted To:- Submitted By:

Mr Rajeev Bhargava Abhishek joshi

(Branch Head,HDFC, Jaipur)





Education ______________________________________

Q.1 You are banking with (Tick the appropriate option)?

A. Private Banks
B. Nationalized banks.

Q.2. Which type of account do you operate in (Tick the appropriate

A. Saving Bank Account
B. Fixed Deposit Account
C. Current Account.
D. Recurring Deposit Account
E. Internet Account

Q.3 What made you open the Account in HDFC bank?

Q.4 What time it took you to open the Account?

Q.5 Are you aware about the debit cum ATM card provided by
bank (Tick the appropriate option)?

B. No

Q.6 Are you aware of 8 to 8 working of HDFC bank (Tick the

appropriate option)?
Q.7 Is ATM convenient to you ( Tick the appropriate option)?

Q. 8 Have you ever faced any problem in operating ATM(Tick the

appropriate option)?

Q.9 How often do you use ATM for banking operation?

Q.10 Do you feel ATM is safe and secure (Tick the appropriate
option) ?
Q.11 What is the behaviour of bank employees towards you (Tick
the appropriate option)?
Q. 12 Have you ever made complaint against any employee (Tick
the appropriate option)?
Q.13 Do personal relationships with the employees help cut short
the waiting time (Tick the appropriate option)?
Q.14 Is the space and environment of the bank is suitable and
comfortable for customers (Tick the appropriate option)?
Q.15 Do you feel there is need of more ATM’s in the city(Tick the
appropriate option)?
Thank you

• Annual report 2003-2004 HDFC bank

• HDFC Manual
• .com
• Indian Bank Association Library, Cuffe Parade, Mumbai
• www.iba. com