Professional Documents
Culture Documents
PROJECT REPORT ON
MARKETING OF BANKING ASSESTS HOME LOANS
SUBMITTED TO
SAVITRIBAI PHULE UNIVERSITY OF PUNE
IN PARTIAL FULFILLMENT OF TWO YEAR FULL TIME
MASTER OF BUSINESS ADMINISTRATION
SUBMITTED BY
AKASH GUPTA
(BATCH -2014-2016)
UNDER THE GUIDANCE OF
PROF.SHRADHA SHINDE
ACKNOWLEDGEMENT
I gratefully acknowledge the help and co-operation of the entire
Department of Punjab National Bank (Retail Assests Branch) at the outset; I
would like to thank Mr. Sandeep Sharma for giving me an opportunity to learn at
Punjab National Bank Retail Assests.
I would like to thank my guide Prof. Shradha Shinde Mam for his
valuable guidance in making my project successful. I also wish to thank the IBMR
staff whose contribution cannot be overemphasized. With all their encouragement
and well wishes, my project proved to be fruitful.
Date:
Place:
Pune-411019.
(Akash Gupta)
DECLARATION
I hereby declare that the Project Report entitled Investment in working capital
market analysis written and submitted by me to the University of Pune in partial
fulfillment of the requirements for the award of degree of Master of Business
Administration under the guidance of Prof. Shradha Shinde is original work and
the conclusions drawn therein are based on the material collected by me.
Date:
Place: CHINCHWAD,
(Akash Gupta)
SL NO
CONTENTS
EXECUTIVE SUMMARY
BANKS IN INDIA
COMPANY PROFILE
OBJECTIVES OF STUDY
REVIEW OF LITREATURE
RESEARCH METHODOLY
DATA ANALYSIS
ACTIVITY CHARTS
10
INTERPRETATIONS
11
12
LIMITATIONS
12
BIBLOGRAPHY
PAGE NO
EXECUTIVE SUMMARY
The major participants of the Indian financial system are the commercial banks, the financial
institutions (FIs), encompassing term-lending institutions, investment institutions, specialized
financial institutions and the state-level development banks, Non-Bank Financial Companies
(NBFCs) and other market intermediaries such as the stock brokers and money-lenders. The
commercial banks and certain variants of NBFCs are among the oldest of the market
participants. The FIs, on the other hand, are relatively new entities in the financial market place.
Bank of Hindustan, set up in 1870, was the earliest Indian Bank . Banking in India on
modern lines started with the establishment of three presidency banks under Presidency Bank's
act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras. In 1921, all presidency
banks were amalgamated to form the Imperial Bank of India. Imperial bank carried out limited
central banking functions also prior to establishment of RBI. It engaged in all types of
commercial banking business except dealing in foreign exchange.
Reserve Bank of India Act was passed in 1934 & Reserve Bank of India (RBI) was
constituted as an apex bank without major government ownership. Banking Regulations Act was
passed in 1949. This regulation brought Reserve Bank of India under government control. Under
the act, RBI got wide ranging powers for supervision & control of banks. The Act also vested
licensing powers & the authority to conduct inspections in RBI
In 1955, RBI acquired control of the Imperial Bank of India, which was renamed as State Bank
of India. In 1959, SBI took over control of eight private banks floated in the erstwhile princely
states, making them as its 100% subsidiaries.
RBI was empowered in 1960, to force compulsory merger of weak banks with the strong
ones. The total number of banks was thus reduced from 566 in 1951 to 85 in 1969. In July 1969,
government nationalised 14 banks having deposits of Rs.50 crores & above. In 1980,
government acquired 6 more banks with deposits of more than Rs.200 crores. Nationalisation of
banks was to make them play the role of catalytic agents for economic growth. The Narsimham
Committee report suggested wide ranging reforms for the banking sector in 1992 to introduce
internationally accepted banking practices.
The amendment of Banking Regulation Act in 1993 saw the entry of new private sector
banks.
Banking Segment in India functions under the umbrella of Reserve Bank of India - the
regulatory, central bank. This segment broadly consists of:
Commercial; Banks
Co-operative Banks
Commercial Banks
The commercial banking structure in India consists of:
Unscheduled Banks
Scheduled commercial Banks constitute those banks which have been included in the
Second Schedule of Reserve Bank of India(RBI) Act, 1934. RBI in turn includes only those
banks in this schedule which satisfy the criteria laid down vide section 42 (60 of the Act. Some
co-operative banks are scheduled commercial banks albeit not all co-operative banks are. Being a
part of the second schedule confers some benefits to the bank in terms of access to accomodation
by RBI during the times of liquidity constraints. At the same time, however, this status also
subjects the bank certain conditions and obligation towards the reserve regulations of RBI. This
sub sector can broadly be classified into:
1. Public sector
2. Private sector
3. Foreign banks.
CO-OPERATIVE BANKS
There
are
two
main
categories
of
the
co-operative
banks.
(a) Short term lending oriented co-operative Banks - within this category there are
three sub categories of banks viz state co-operative banks, District co-operative banks and
society.
(b) Long term lending oriented co-operative Banks - within the second category there
are land development banks at three levels state level, district level and village level.
The co-operative banking structure in India is divided into following main 5 categories:
1. Primary Urban Co-op Banks.
2. Primary Agricultural Credit Societies.
3. District Central Co-op Banks.
4, State Co-operative Banks.
5. Land Development Banks
BANKS IN INDIA
Private Sector
Foreign Banks
Banks
1.
Allahabad Bank
2.
Andhra Bank
3.
Bank of Baroda
4.
Bank of India
BNP Paribas
5.
Bank of Maharashtra
Citibank N.A
6.
Canara Bank
7.
HSBC Ltd.
8.
Corporation Bank
9.
Dena Bank
10.
Indian Bank
11
12.
13.
14.
15.
Syndicate Bank
16.
UCO Bank
17.
18.
19.
Vijaya Bank
IDBI Bank
United Western Bank Ltd
21.
The scope of the present study has been limited interns of period of study as well as sources and
nature of data. The period covered by the study extends over 5 years from F.Y 2008-2009 to
2011-2012. At the time of study, the data could be available up to 2011-2012. The limitations of
this study are as follows:
1. The study is mainly on secondary data. It is come mostly on the basis of and published
financial document, like balance sheet, profit and loss account and other related journals,
magazines and books etc.
2. The study follows with specific tools financial ratio analysis.
3. The lack of sufficient time and resources is another limitation of the study. The study is
fully based on the students financial resources and is to be completed within limited
time. The report has taken only 5-years data for the study from year 2008-2009 to 20112012.
4. The study is limited from the point of view of submission on partial fulfilment of the
requirement for the Master degree in Business Administration (MBA).
Thomas Cook Al Rostamani Exchange Co. Dubai, UAE, and M/s Musandam Exchange, Ruwi,
Sultanate of Oman.
With over 38 million satisfied customers and 4668 offices, PNB has continued to retain its
leadership position among the nationalized banks. The bank enjoys strong fundamentals, large
franchise value and good brand image. Besides being ranked as one of India's top service brands,
PNB has remained fully committed to its guiding principles of sound and prudent banking. Apart
from offering banking products, the bank has also entered the credit card & debit card business;
bullion business; life and non-life insurance business; Gold coins & asset management business,
etc.
Since its humble beginning in 1895 with the distinction of being the first Indian bank to have
been started with Indian capital, PNB has achieved significant growth in business which at the
end of March 2009 amounted to Rs 3, 64,463 crore. Today, with assets of more than Rs 2, 46,900
crore, PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and has
the 2nd largest network of branches (4668 including 238 extension counters and 3 overseas
offices).During the FY 2008-09, with 39% share of low cost deposits, the bank achieved a net
profit of Rs 3,091 crore, maintaining its number ONE position amongst nationalized banks. Bank
has a strong capital base with capital adequacy ratio as per Basel II at 14.03% with Tier I and
Tier II capital ratio at 8.98% and 5.05% respectively as on March09. As on March09, the Bank
has the Gross and Net NPA ratio of only 1.77% and 0.17% respectively. During the FY 2008-09,
its ratio of priority sector credit to adjusted net bank credit at 41.53% & agriculture credit to
adjusted net bank credit at 19.72% was also higher than the respective national goals of 40% &
18%.
PNB has always looked at technology as a key facilitator to provide better customer service and
ensured that its IT strategy follows the Business strategy so as to arrive at Best Fit. The
bank has made rapid strides in this direction. Along with the achievement of 100% branch
computerization, one of the major achievements of the Bank is covering all the branches of the
Bank under Core Banking Solution (CBS), thus covering 100% of its business and providing
Anytime Anywhere banking facility to all customers including customers of more than 2000
rural branches. The bank has also been offering Internet banking services to the customers of
CBS branches like booking of tickets, payment of bills of utilities, purchase of airline tickets etc.
Towards developing a cost effective alternative channels of delivery, the bank with more than
2150 ATMs has the largest ATM network amongst Nationalised Banks.
With the help of advanced technology, the Bank has been a frontrunner in the industry so far as
the initiatives for Financial Inclusion is concerned. With its policy of inclusive growth in the
Indo-Gangetic belt, the Banks mission is Banking for card based technology enabled Financial
Inclusion with the help of Business Correspondents/Business Facilitators (BC/BF) so as to reach
out to the last mile customer. The BC/BF will address the outreach issue while technology will
provide cost effective and transparent services. The Bank has started several innovative
initiatives for marginal groups like rickshaw pullers, vegetable vendors, diary farmers,
construction workers, etc. The Bank has already achieved 100% financial inclusion in 21,408
villages.
Backed by strong domestic performance, the bank is planning to realize its global aspirations. In
order to increase its international presence, the Bank continues its selective foray in international
markets with presence in Hong Kong, Dubai, Kazakhstan, UK, Shanghai, Singapore, Kabul and
Norway. A second branch in Hong Kong at Kowloon was opened in the first week of April09.
Bank is also in the process of establishing its presence in China, Bhutan, DIFC Dubai, Canada
and Singapore. The bank also has a joint venture with Everest Bank Ltd. (EBL), Nepal. Under
the long term vision, Bank proposes to start its operation in Fiji Island, Australia and Indonesia.
Bank continues with its goal to become a household brand
With global expertise. Amongst Top 1000 Banks in the World, The Banker listed PNB at 250th
place. Further, PNB is at the 1166th position among 48 Indian firms making it to a list of the
worlds biggest companies compiled by the US magazine Forbes.
1895-
1904-
1939-
1947-
1960-
(established in 1933)
in a rescue.
19611963-
1965-
the offices in
Pakistan of Indian banks, including PNB's head office, which may have moved to
Karachi. PNB also had branches in East Pakistan (Bangladesh).
1969-
banks on
1988-
1993-
PNB acquired New Bank of India, which the Government of India had
nationalized in 1980.
19982003-
VISION
"To be a Leading Global Bank with Pan India footprints and become a
household brand in the Indo-Gangetic Plains providing entire range of
financial products and services under one roof"
MISSION
PERFORMANCE OF BANK
Punjab National Bank continues to maintain its frontline position retained its NUMBER ONE
position among the nationalized banks in terms of number of branches, Deposit, Advances, total
Business, operating and net profit in the year 2008-09. The impressive operational and financial
performance has been brought about by Banks focus on customer based business with thrust on
SME, Agriculture, more inclusive approach to banking; better asset liability management;
improved margin management, thrust on recovery and increased efficiency in core operations of
the Bank. The performance highlights of the bank in terms of business and profit are shown
below:
Parameters
Mar'07
Mar'08
Mar'09
CRAR
Operating Profit*
3617
4006
5744
26.02
Net Profit*
1540
2049
3091
41.67
Deposit
139860
166457
209760
22.47
Advance
96597
119502
154703
26.55
Total Business
236456
285959
364463
24.15
(Rs.Crores)
"Best IT Team of the Year Award"At the IDRBT Banking Technology awards for the year 2005-06.
SKOTCH Challenger AwardFor Change Management for the year 2005-06
Banking Technology Awards 2004 Runner up in 'Best IT Team of the Year Award 2005'
Jointly Adjudged by IBA, Finacle & TFCI
Service Brands 3rd Rank amongst Banking Sector in India 323rd Rank in the World
The Bankers' Almanac, January 2006
368 amongst Top 1000 Global Banks
The Banker, London July 2005
MISSION
BACKGROUND
In the year 1996 Reserve Bank of India introduced the system of Primary Dealers with a view to
strengthen the institutional infrastructure of Government Securities market. Six entities were
granted licenses of which PNB Gilts was one. The Company was established as a wholly owned
subsidiary of PUNJAB NATIONAL BANK with an initial paid up capital of Rs.50 crores which is
also the minimum capital requirement for a Primary Dealer.
The net-worth of the Company has increased from Rs.50 crs to Rs.541.33 crs in a span of 8 years.
RBI, New Delhi, granted its certificate of registration vide its letter dated 10th February 1998, to
carryon the business of a Non-Banking Finance Company. The Company decided to expand its
capital base & came with an IPO of Rs.3.5 crore shares at an offer price of Rs 30/- per share
aggregating Rs.105 crore in July :woo. This increased the paid up capital of the Company to Rs
135.01 crores and reduced the holding of Punjab National Bank to 74.07%.
OBJECTIVES
The objectives of the Company are in line with objectives laid down by RBI for the Primary
Dealers:
Strengthen the infrastructure in the government securities market in order to make it vibrant,
liquid and broad based.
Ensure the development of underwriting and market making capabilities for Government
Securities.
Improve secondary market trading system, which would contribute to price discovery, enhance
liquidity and turnover and encourage voluntary holding of Government securities amongst a
wider investor base.
Become an effective conduit for conducting open market operations.
Besides the above, the Company has been pioneer in retailing of Government Securities
contributing to a deep and broad-based market. The Marketing Department specifically caters to
select segments viz. Provident Funds, Trusts, Regional Rural Banks, Co-operative Banks,
Corporate & Individuals to create awareness and encourage healthy investment practices.
Treasury Bills
Central Government Dated Securities
State Government Securities
PSU Bonds
Inter-Corporate Deposits
CSGL accounts
Money market instruments
Merchant Banking
Mutual Fund Distribution
In addition to the above, we also offer advisory services to our clients to manage the government
securities portfolio.
The Company has well-defined systems and procedures. The Internal Control & Management
systems are in place and are in accordance with the guidelines issued By the Regulatory
Authorities.
The Company has a lean staff of 38 employees spread over the Country with 31 employees in the
Head Office in New Delhi & rest in our branches at Mumbai, Chennai, Kolkata, Ahmedabad and
Bangalore.
During the years the Company has emerged as a leading Primary Dealer in the country. We have
to our credits ...
The first stand alone Primary Dealer to come with an IPO & get listed.
The first PD to achieve ISO 9001:2000 certification.
The first to obtain a PH rating from CRISIL for its short-term borrowing program. At present
the rating from CRISIL is for borrowing up to Rs 250 crore.
The company has achieved a turnover of Rs.116468 crores during 2003-2004, making it one
of the largest debt traders in the country.
INTRODUCTION
This is a wholly owned subsidiary of Punjab National Bank, is engaged in providing housing
loans for purchase, construction and up gradation of a dwelling unit. The company offers Loans
for construction or for purchase of house/flat from development authorities and also from private
builders/ group housing societies as well as for renovation/ repairs .Company also provide finance
for construction of residential projects. Loans to NRIs are also provided for purchase/ construction
of house/ flat along with a resident/ non-resident co-borrower.
PERIOD
1-10 Years
11 15 Years
16 20 Years
SECURITY:
FLOATING RATE OF
INTEREST(%)
9.00
9.25
9.50
3-YEARLY FIXED
RATE OF INTEREST
(%)
10.50
10.50
1.50
Security for the loan is first charged by way of equitable/registered mortgage of the property to be
financed and/ or such other collateral securities as may be necessary. Loans to allottees of
flats/houses of development authorities or members of co-op. housing societies or reputed
private builders can be considered on the basis of tripartite agreement and/or interim security.
With respect to property under construction, interim security may be required. Collateral/interim
security may be assignment of Life Insurance Policies, guarantees from sound and solvent
guarantors, pledge of marketable shares and such other investments acceptable to PNBHF.
LOAN DISBURSEMENT:
For outright purchase of house/flat, the loan amount will be paid in lump-sum to the vendor at the
time of registration after satisfying that the borrower has paid/provided for the balance amount.
For houses/flats under construction, the loan amount will be disbursed in stages based on the
progress of construction. Disbursement win be made after the property has been technically
appraised and all legal documentation has been completed. The borrower has to invest his
proportionate share of the cost, prior to disbursement of loan.
The loan can be disbursed either in lump sum or installments according to the requirement of the
development authority/society/ private builder.
LOAN REPAYMENT:
Loan repayment shall normally be in Equated Monthly Installments (EMI) comprising of principal
and interest over a maximum period of 20 years. The table below shows the EMI for a loan of Rs.
1,00,000/- at different rates of interest.
9.00% 9.25%
05
07
10
15
20
2076
2088
2101
2113
2125
2138
2150
1609
1622
1635
1648
1661
1674
1687
1267
1281
1294
1308
1322
1336
1350
1015
1030
1045
1060
1075
1090
1106
900
916
933
949
966
982
999
ELIGIBILITY:
Individuals who are in permanent service or self employed or have their own business. Age of the
applicant should not be more than 60 years.
LOAN DETAILS:
Loan Amount
Minimum amount of loan is Rs. 50,000. Maximum amount of oan shall not exceed Rs. 10,00,000.
Borrower's minimum contribution will be 25% of the estimated cost of repairs/renovations. Actual
loan amount shall be calculated on the basis of repayment capacity of the borrower as determined
by PNBHFL.
INTEREST RA.TES (With effect from 1.07.2006)
For loans upto Rs.10 Lakhs
Period
Upto 15 Years
SECURITY:
Normally, the security for the loan shall be first charge by way of Equitable/Registered mortgage
of the property. However, PNB Housing Finance at its discretion, can sanction a loan on the basis
of:
Pari-passu/second charge in the case of Central/State Govt./Public
Sector/Nationalized Bank employees and other similar bodies or
Other securities such as assignment of LIC policies (surrender value at least equivalent to the
amount of loan), pledge of marketable shares and such other investments acceptable to PNBHF.
Besides this, personal guarantee from sound and solvent guarantors may be asked for.
LOAN DISBURSEMENT:
A loan will be disbursed in lump sum or in stages (not more than three) based on the progress of
renovation/repair. Disbursement will be made after the property has been technically appraised
and all legal documentation and other formalities have been completed. The borrower has to
invest his share of the cost in full prior to disbursement of the loan. The borrower is expected to
complete the repair/renovation within six months.
REPAYMENT:
Loan repayment shall normally be in Equated Monthly Installments (EMI) comprising of principal
and interest over a maximum period of 10 years.
No. of
Years
1
2
3
4
5
6
9.25
9.50
11.25
8804
8815
8827
8839
8850
4627
4638
4650
4661
4673
3239
3251
3263
3274
3286
2549
2561
2573
2585
2597
2138
2150
2162
2175
2187
1866
1878
1891
1904
1917
7
8
9
10
1674
1687
1700
1713
1726
1531
1545
1558
1571
1585
1422
1436
1449
1463
1477
1336
1350
1367
1378
1392
earning family members are offered as co-borrowers, their income can also be clubbed with that
of the borrower for computation of eligible loan amount.
INTEREST RATES: (With effect from 1.07.2006)
Interest rate for individuals will be 11.50% and for builders (floating rate) will be 12.00%
SECURITY:
We shall require Equitable I Registered Mortgage of property against which loan is being sought.
Guarantee of one/ two persons will be required as per existing guidelines of the company.
LOAN DISBURSEMENT
The loan would be disbursed directly to the borrower in lump sum through his bank account.
Disbursement will be made after the property has been technically and legally appraised and legal
documentation has been completed.
LOAN REPAYMENT
The loan would be repaid by way of Equated Monthly Installments (EMIs) consisting of principal
and interest within a maximum period of 15 years. Repayment will commence in the month
subsequent to the month in which loan has been disbursed.
SECURITY:
We shall require Equitable/Registered Mortgage of property against which loan is being sought.
Guarantee of one/ twu persons "vill be required as per existing guidelines of the company.
LOAN DISBURSEMENT
The loan would be disbursed directly to the borrower in lump sum through his bank account.
Disbursement will be made after the property has been technically and legally appraised and legal
documentation has been completed.
LOAN REPAYMENT:
The loan would be repaid by way of Equated Monthly Installments (EMIs) consisting of principal
and interest within a maximum period of 10 years. Repayment will commence in the month
subsequent to the month in which loan has been disbursed.
Punjab National Bank provides its customers with various Home loan policies and features at
highly competitive rates. They know the needs of the Indian customers that they have to deal
with, on a regular basis, and provide the policies accordingly. The PNB Home Loan cater mainly
to the requirement of the middle class individuals of India, as Pnb itself is one of the leading
public sector banks of the nation.
The PNB Home loans are very easily available, and have an even easier process of repayment
that is given over a prearranged time period. This period of time is determined, when the PNB
Home loans are being finalized and along with the loans, the buyers get the opportunity of
having a life insurance covered against him. The basic grounds on which the PNB Home loans
are provided are:
The basic interest of the PNB Home loans may be around 9.5%, and the time period may vary
from a minimum of 5 years to a maximum of 25 years. However there is a certain limitation of
the loan amount that an individual may take from the bank. The maximum amount of the loan
amount sanctioned under PNB Home loans is need based. It generally takes around 7 days to
process the PNB Home loans, from the day it has been finalized with the bank.
Apart from all these details, the PNB Home loans also enable us to choose between fixed and
floating rates that may be applicable from time to time, and keep varying from one time period to
another. As far as the eligibility is concerned, a person between the age group of 18 to 60 years
may be qualified to apply for the PNB Home loans. Along with this, it has also to be noted that
the annual income of the individual, who is applying for the loan, must be greater than or equal
to 1.2 Lac INR.
Eligibility
Existing home loan borrower can also apply provided their loan account is regular and no
IR irregularity persist.
Documents Needed
1. Proof of identity
2. Proof of income
3. Proof of residence
4. Bank statement or Pass Book where salary or income is credited.
5. Education Certificate
6. Photos
The loan can be granted both for freehold and leasehold property.
2. In case of leasehold, loan can be granted on the basis of power of attorney basis from original
allotee where DDA/PUDA/HUDA permit conversion of leasehold into freehold property
otherwise advance is not permitted against plot purchased on Power of Attorney basis.
Extent of loan
Margin
Land/Plot
40%
Construction/repair/addition
25%
Rate of Interest
(Effective from 1st May 2009 BPLR 11.00%)
Housing finance to
Upto 20
Above 20 Lacs.
Individuals including
NRIS /Flexible Housing
Scheme
Lacs.
(i) upto 5 years
9.25%
10.00%
8.75%
9.50%
10.00%
10.25%
9.00%
9.50%
years
(iii) Above 10 years & upto 20 10.50%
10.75%
9.25%
9.75%
years
(iv) Above 20 years & upto 25
11.00%
9.50%
10.00%
10.75%
years
Option can be changed from fixed to floating and vice versa with flat charges of 2% fee
on balance outstanding.
Fixed interest rate be reset after a block of 5 year in respect of loans disbursed on or after
1.08.2006
Documentation charges
Rs. 1350 + Service Tax
Upfront Fee
0.90% of the loan amount + Service Tax& Education Cess
Repayment
Maximum 25 years.
The income of spouse and earning children can be taken into account provided they are
made co-borrower.
Father/Mother can also be made co-borrower in cases property is in single name of his
/her son and also clubbing of their income is permitted for determining eligibility criteria.
Minimum 24 advance cheque should be obtained as and when, 6 cheques remain, fresh
lot to be obtained out of 24, 23 cheques should be of the amount equal to the balance.
Loan is to be repaid in EMI within a period of 25 years or before the borrower attains the
age of 65 years.
Security
Equitable mortgage of other immovable property or pledge of NSC etc. upto 125% of
loan amount if property is being purchased from 1 st P/A holder and where there is delay
in the execution of Tripartite agreement.
Features
Loan can be sanctioned even if property is in the name of wife/parents provided that the
owner is made co-borrower.
RESEARCH
METHODOLOGY
INTRODUCTION
The procedure adopted for conducting the research requires a lot of attention as it has direct
bearing on accuracy, reliability and adequacy of results obtained. It is due to this reason that
research methodology, which we used at the time of conducting the research, needs to be
elaborated upon. Research Methodology is a way to systematically study & solve the research
problems. If a researcher wants to claim his study as a good study, he must clearly state the
methodology adopted in conducting the research so that it may be judged by the reader whether
the methodology of work done is sound or not.
Meaning of research
Research problem
Research design
Sampling design
Data coIlection method
Data analysis and interpretation
Recommendations
Meaning of Research
Research is defined as "a scientific & systematic search for pertinent information on a specific
topic. Research is an art of scientific investigation. Research is a systematized effort to gain new
knowledge. It is a careful investigation or inquiry especially through search for new facts in any
branch of knowledge.
Research is an academic activity and this term should be used in a technical sense. Research corn
prices defining and redefining problems, formulating hypothesis or suggested solutions; making
deductions and reaching conclusions to determine whether they fit the formulating hypothesis.
Research is thus, an original contribution to the existing stock of knowledge making for this
advancement. The search for knowledge through objective and systematic method of finding
solution to a problem is research.
Research Problem
The first step while conducting research is careful definition of research problem.
Research design
A research design is the arrangement of conditions for collection and analysis of data in a manner
that aims to combine relevance to the research purpose with economy in procedure. Research
design is the conceptual structure within which research is conducted. It constitutes the blue print
for the collection measurement and analysis of data. Research design includes an outline of what
the researcher will do from writing the hypothesis and its operational implications to the final
analysis of data.
A research design is a framework for the study and used as a guide in collecting and analyzing the
data. It is a strategy specifying which approach will be used for gathering and analyzing the data.
It also includes the time and cost budget since most studies are done under these two constraints.
Research design can be categorized as:
Exploratory research
Descriptive
Diagnostic research
Experimental research
Sampling Design
Sampling is necessary because it is almost impossible to examine the entire parent population (i.e.
the entire universe) various factors such as time available, cost, purpose of study etc make it
necessary for the researchers to choose a sample. It should neither be too small nor too big. It
should be manageable.
Primary data
Secondary data
Secondary data means the statistics not gathered for the immediate study at hand but for some
other data. It is the data collected by some one for purposes other than solving the problem being
investigated. On the other hand primary data are generated in a study specifically designed to
accommodate the data needs of the
problem at hand.
ANALYSIS AND INTERPRETATION OF DATA AND RECOMMENDATIONS
The data collected in the aforesaid manner have been tabulated in condensed form to draw the
meaningful result. The different techniques are adopted to analyze a data.
All the data and the material is arranged through internal resources and the last part of the project
consist of the conclusions drawn from the report, a brief summary and recommendations and
giving the final touch to the reports by stating a conclusion.
The market of Delhi mainly comprises of the rural & urban people with population of around 15
million. The literacy rate is fairly high and there are around 65% males & 35% females.
This data clearly indicates the emergency of a middle class at Delhi. As is elsewhere, this class is
the harbors of modern facilities. Apart from other contribution, it is this class for its money. These
demands exhibits a vigilant
customer & financial products have been on their toes to return them to pay the least if not attract
the other ones.
Besides Delhi also boasts of a large financial market. It has an upcoming pharmacy distribution
network & lots of Govt. institutions. There is increasing use of Cyber Cafe Internet & cable
connection. The market size of the city is around 2 lacks, a significant chunk of which is occupied
by the upcoming middle classes.
Besides, there is good number of industries.
Apart from this, there are many management and engineering conege's and universities. The much
roaming growth of such institutions shows the presence of many high nets worth individual is
Delhi.
For the purpose of the study the respondents were selected from all corners of Delhi mainly
popular colonies and for gathering information about the trends, demands & brands available in
financial products.
The data was collected through questionnaires. The question consisted of 10 questions along with
the information regarding the occupation of the respondent. The number of respondents were kept
to 100. The graphs of all the findings question wise are given below along with the tables of the
data collected.
Percentage
92
8
INTERPRETATION
The above Pie chart depicts that 92% of total sample size is aware about the home loans and only
8% are unaware.
Percentage
51
49
INTERPRETATION
51% of the sample size finds easy to get the home loan while 49% finds it difficult The ratio is
more or less same.
Percentage
76
24
INTERPRETATION
The above graph depicts that maximum percentage of the sample size prefers to go for home loan.
LOAN RECEIVED
Loan Recieved
Yes
No
Percentage
67
33
INTERPRETATION
It has been found from the graph that 67% of the sample size has gone for the home loan.
BANK PREFERENCE
PREFERENCE OF BANK
ICICI
PNBHF
LICHF
HDFC
OTHERS
PERCENTAGE
36
18
10
35
1
INTERPRETATION
The above graph depicts that only 18 % of the sample size has preferred to take home loan from
PNB and maximum percentage of the sample size preferred to take home loan either from ICICI
or HDFC and very few that is only one percent has the preference of other financial institutes.
Provision Of Optimal/Economical
Interest Rate
ICICI
PNBHF
LICHF
HDFC
OTHERS
Percentage
32
24
13
27
4
INTERPRETATION
The above graph shows that according to the 32 percentage of total sample size, ICICI provides
the optimal/economical interest rate. The next preference is given to HDFC and PNBHFL has
received the third preference for providing the optimal interest rate. And only 13 percent of the
sample preferred LICHF.
SUITABLE EMI
Percentage
32
24
13
27
4
INTERPRETATION
The above graph shows that according to the 32 percentage of total sample size, ICICI provides
suitable EMI. The next preference is given to HDFC and PNBHFL has received the third
preference for providing suitable EMI. And only 13 percent of the sample preferred LICHF.
Percentage
27
24
25
20
4
INTERPRETATION
The above pie chart depicts that maximum number of people has preferred ICICI bank for long
term loans and only 24 percent of sample size has given preference to PNBHF and only 4% has
given preference to other financial institutes.
CUSTOMER FRIENDLINESS
Customer Friendliness
ICICI
PNBHF
LICHF
HDFC
OTHERS
Percentage
26
18
24
17
15
INTERPRETATION
The above pie chart shows that maximum number of people finds ICICI more customer friendly
than other banks.
PROMPT SERVICE
Prompt Service
ICICI
PNBHF
LICHF
HDFC
OTHERS
Percentage
45
13
23
14
5
INTERPRETATION
ICICI bank has found to be quickest in sanctioning the loan among other financial
institutes by maximum number of people.
Percentage
25
35
10
15
15
INTERPRETATION
The above graph depicts that customer friendly home loan schemes are the main aspect for the
success of PNBHF.
LAGGING AREA
Sales
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Lagging Area
Confined Only In Urban Areas
Non Effective Advertisements
Delay In Processing
Percentage
12
78
10
INTERPRETATION
The above Pie chart shows that Non effective Advertisement is the lagging area of PNBHFL in
comparison to other home loan banks.
CONCLUSION AND
SWOT
ANALYSIS
AND LIMITATIONS
SWOT ANALYSIS
STRENGTHS
Brand name of Punjab National Bank (PNB) is established over the years.
Single window clearance - a single employee provides wide variety of
facilities to the borrower, minimizing the hassle of wastage of time.
Appraisal techniques are used.
Specialized software's are big assets.
There is no penalty for prepayment from borrowers own service.
WEAKNESSES
OPPORTUNITIES
Special rates of interest can be introduced for employees of PSU'S & reputed national or
multinational companies'
Product life cycle is to be reviewed.
The growing category of the builders ensure that good, high value & qualitative projects,
providing them home loans with the new and innovative schemes can lead to over all
development of the company.
THREATS
A fraud case involving 32 cases worth Rs.3 crores at the one branch of PNB Housing Finance
Limited in year 2002 leads decreasing brand name.
Limitations & biasness of convenience & judgment sampling used in the present study to some
extent.
MONEY
Available with the researcher also imposed a limitation on the comprehensive of
this research.
BIBLIOGRAPHY
Books
Websites:
www.pnb.com
www.indiainfoline.com
www.sribd.com