A

PROJECT REPORT
ON

“A STUDY OF HOUSING FINANCE BY BANK OF

MAHARASHTRA IN NAGPUR”

Submitted To
Rastrasant Tukdoji Maharaj Nagpur University
In partial fulfillment of the requirement for the award of the
degree of Bachelor of Business Administration
Specialisation in Financial Management

FOR THE ACADMIC SESSION 2019-20

SUBMITTED BY
AAKASH S. KAMDE

GUIDED BY
MR. RAHUL KHARWADE

PRERNA COLLEGE OF COMMERECE,

RESHIMBAG SQUARE, NAGPUR.

2019-2020
 CERTIFICATE

This is to clarify that this project entitled “A STUDY OF HOUSING

FINANCE BY BANK OF MAHARASHTRA IN NAGPUR” submitted by
AAKASH KAMDE to R.T.M. Nagpur university, Nagpur for the partial fulfillment
of bachelor of business administration is a bonafied original research work carried out
under my guidance and supervision. It is piece of research of a sufficiently high
standard to warrant it submission to the University for Reward of the said degree.

No part of the project has been submitted for any degree or diploma or
published in any other form.

The assistant and the help rendered to the research during course of this
research in the form of basic source material and information have been duly
acknowledged.

PROJECT GUIDE PRINCIPAL

MR. RAHUL KHARWADE Dr. BHARTI DESHMUKH
 DECLARATION

I hereby declare that this project “A STUDY OF HOUSING FINANCE BY

BANK OF MAHARASHTRA IN NAGPUR” has been submitted as project report
is partial fulfillment of Bachelor of Business Administration.

The project detail or any part has put been submitted earlier to any institute for
any other degree or diploma.

The source of material and data used in the study have been duly acknowledge
and certified.

Place: Nagpur AAKASH KAMDE

Date: B.B.A Final Year
 ACKNOWLEDGEMENT

It express my sincere and hearty gratitude to MR. RAHUL KHARWADE

my project guide for giving me an opportunity and support to carry out this project
without whose able guidance this project would never materialized. It was here polite
talks, Keen interest, knowledge, and practical suggestion that inspired me to bring out
the best.

I gratefully acknowledge my deepest gratitude honorable President Prof. R.

C. GULHANE and honorable secretary Dr. S. C. GULHANE for their persistent
inspiration and the principal Dr. BHARTI DESHMUKH conservative suggestion
and constant encouragement.

I also want to thank my friends, my family and all the members who were
associated directly or indirectly in making my project successful.

Place: Nagpur AAKASH KAMDE

Date: B.B.A Final Year
 INDEX

Sr. No NAME OF CHAPTER Page No.

01 INTRODUCTION AND RESERCH METHODOLOGY

 INTRODUCTION

 COMPANY PROFILE
1-22
 RESEARCH METHODOLOGY

 AIMS AND OBJECTIVES

 SCOPE AND LIMITATION

 HYPOTHESIS

DATA COLLECTION

02
 Primary Data 23-26

 Secondary Date

03 DATA ANALYSIS AND NTERPRETATION 27-39

04 CONCLUSION & SUGGESTION 40-43

05 BIBLIOGRAPHY 44-45

06 ANNEXURE 46-49
 1.1 INTRODUCTION:

Housing finance is a broad topic, the concept of which can vary across
continents, regions and countries, particularly in terms of the areas it covers. For
example, what is understood by the term “housing finance” in a developed country
may be very different to what is understood by the term in a developing country.

The International Union for Housing Finance, as a multinational networking

organisation, has no official position on what the best definition of housing finance is.
However, the selection of quotes below is offered as a snapshot of what housing
finance as a topic cover:

“Housing finance brings together complex and multi-sector issues that are
driven by constantly changing local features, such as a country’s legal environment or
culture, economic makeup, regulatory environment, or political system”
In addition, the concept of housing finance and housing finance systems has been
evolving over time. Looking at definitions from the mid-1980s, we see that housing
finance was defined primarily in terms of residential mortgage finance:

“The purpose of a housing finance system is to provide the funds which

home-buyers need to purchase their homes. This is a simple objective, and the number
of ways in which it can be achieved is limited. Notwithstanding this basic simplicity,
in a number of countries, largely as a result of government action, very complicated
housing finance systems have been developed. However, the essential feature of any
system, that is, the ability to channel the funds of investors to those purchasing their
homes, must remain.”

1
 However, in more recent years, a number of other much wider definitions have
appeared:

“Put simply, housing finance is what allows for the production and
consumption of housing. It refers to the money we use to build and maintain the
nation’s housing stock. But it also refers to the money we need to pay for it, in the
form of rents, mortgage loans and repayments.”

“There is recognition of other relevant forms of housing finance [apart from

residential mortgage finance] such as developer finance, rental finance, or
microfinance applied to housing. Developer finance is often in the form of
unregulated advance payments by buyers, and developers sometimes provide long-
term finance to buyers through instalments sales when mortgages markets are not
accessible. Microfinance for housing is typically used for home improvement or
progressive housing purposes. Loans are typically granted without pledging
properties. Although the overall impact of microfinance in housing remains limited,
this activity can represent an important source of funding for those in the informal
sector.”

Banks are among the main participants of the financial system in India.
Banking offers several facilities and opportunities. Banks in India were started on the
British pattern in the beginning of the 19th century. The first half of the 19th century,
The East India Company established 3 banks The Bank of Bengal, The Bank of
Bombay and The Bank of Madras. These three banks were known as Presidency
Banks. In 1920 these three banks were amalgamated and The Imperial Bank of India
was formed. In those days, all the banks were joint stock banks and a large number of
them were small and weak. At the time of the 2nd world war about 1500 joint stock
banks were operating in India out of which 1400 were non- scheduled banks. Bad and
dishonest management managed quiet a quiet a few of them and there were a number
of bank failures. Hence the government had to step in and the Banking Company’s
Act (subsequently named as the Banking Regulation Act) was enacted which led to
the elimination of the weak banks that were not in a position to fulfil the various
requirements of the Act. In order to strengthen their weak units and review public
confidence in the banking system, a new section 45 was enacted in the Banking
Regulation Act in the year 1960, empowering the Government of India to compulsory

2
amalgamate weak units with the stronger ones on the recommendation of the RBI.
Today banks are broadly classified into 2 groups namely—

(a) Scheduled banks.

(b) Non-Scheduled banks.

In India the banks are being segregated in different groups. Each group has
their own benefits and limitations in operating in India. Each has their own
dedicated target market. Few of them only work in rural sector while others in
both rural as well as urban. Many even are only catering in cities. Some are of Indian
originand some are foreign players.
One more section has been taken note of is the upcoming foreign banks in
India. The RBI has shown certain interest to involve more of foreign banks than the
existing one recently. This step has paved a way for few more foreignbanks to start
business in India.

ABOUT THE BANK

Bank of Maharashtra (BoM) was registered in Sep 16, 1935 with an authorised
capital of 1 million. It commenced business in Feb 8 1936. The bank was nationalised
in 1969. BoM sponsored the following RRBs - the Marathwada Gramin Bank Ltd in
1976 and the Aurangabad-Jalna Gramin Bank Ltd in 1982. In FY04, BoM came out
with its IPO. it known as a common man’s bank since its inception.
The Bank was founded by a group of visionaries led by the late V. G. Kale and
the late D. K. Sathe and registered as a Banking Company on 16 September 1935 at
Pune. Today, Bank of Maharashtra has over 15 million customers across the length
and breadth of the country served through 1825 branches in 29 states and 2 union
territories.
Apart from providing regular banking services to the customers, Bank of
Maharashtra has established two Joint Ventures to fulfill its other commitments
towards the general public and society. These Joint Ventures are MSETI and
Mahabank Info Centre.
Banks are the most significant players in the Indian financial market. - They
are the biggest purveyors of credit, and they also attract most of the savings from the

3
population. Dominated by public sector, the banking industry has so far acted as an
efficient partner in the growth and the development of the country. Driven by the
socialist ideologies and the welfare state concept, public sector banks have long
been the supporters of agriculture and other priority sectors. 'They act as crucial
channels of the government in its efforts to ensure equitable economic development.
The banking sector in India has undergone remarkable changes since the
economic reforms were initiated in 1991-92. The period has been marketed by a slew of
reforms in the sector, which provided the much needed impetus for the growth of the
sector as a whole. One of the remarkable reforms found crucial to study is emphasizes
of public sector banks on retail banking. Thus, the project tells us the basics of retail
banking, the day to day operations of the bank. It also tells us various types of loan
provided by the bank.
Banking typical mass-market banking in which individual customers use local
branches of larger commercial banks. Services offered include savings and checking
accounts, mortgages, personal loans, debit/credit cards and certificates of deposit
(CDs).

What Does Banking Mean?

When the banking is between INDIVIDUAL and BANK then it is Banking

where individual is a person (whether Natural or Artificial) or entity who either
depositing or borrowing money from the bank.

Banking aims to be the one-stop shop for as many financial services as

possible on behalf of retail clients. Some retail banks have even made a push into
investment services such as wealth management, brokerage accounts, private banking
and retirement planning. While some of these ancillary services are outsourced to
third parties (often for regulatory reasons), they often intertwine with core Banking
accounts like checking and savings to allow for easier transfers and maintenance. The
Banking environment today is changing fast. The changing customer demographics
demands to create a differentiated application based on scalable technology, improved
service and banking convenience. Higher penetration of technology and increase in
global literacy levels has set up the expectations of the customer higher than never
before. Increasing use of modern technology has further enhanced reach and
accessibility. The market today gives us a challenge to provide multiple and

4
innovative contemporary services to the customer through a consolidated window as
so to ensure that the bank’s customer gets “Uniformity and Consistency” of service
delivery across time and at every touch point across all channels. The pace of
innovation is accelerating and security threat has become prime of all electronic
transactions. High cost structure rendering mass-market servicing is prohibitively
expensive. Present day tech-savvy bankers are now more looking at reduction in their
operating costs by adopting scalable and secure technology thereby reducing the
response time to their customers so as to improve their client base and economies of
scale. The solution lies to market demands and challenges lies in innovation of new
offering with minimum dependence on branches – a multi-channel bank and to
eliminate the disadvantage of an inadequate branch network. Generation of leads to
cross sell and creating additional revenues with utmost customer satisfaction has
become focal point worldwide for the success of a Bank.

Banking is, however, quite broad in nature - it refers to the dealing of

commercialbanks with individual customers, both on liabilities and assets sides of the
balance sheet. Fixed, current / savings accounts on the liabilities side; and mortgages,
loans (e.g., personal, housing, auto, and educational) on the assets side, are the more
important of the products offered by banks. Related ancillary services include credit
cards, or depository services.Banking refers to provision of banking services to
individuals and small business where the financial institutions are dealing with large
number of low value transactions. This is in contrast to wholesale banking where the
customers are large, often multinational companies, governments and government
enterprise, and the financial institution deal in small numbers of high value
transactions.

Today’s Banking sector is characterized by three basic characteristics:

 Multiple products (deposits, credit cards, insurance, investments and

securities)
 Multiple channels of distribution (branches, call center, internet)
 Multiple customer groups (consumer, small business, and corporate).

The branch network includes 22 branches specialising in foreign exchange,

5
industrial finance, small-scale industry and hi-tech agriculture. • BoM offers
numerous schemes such as: Mahabank Family Banking Card, Mahabank
Educational Loan Scheme, Mahabank Aadhar Scheme for pensioners, Laghu
Udhyami Credit Card Scheme and Women Empowerment Scheme. • The bank
implemented the rural bank mechanisation project to computerise its 591 rural
branches, that capture 10.2% of the bank’s bus Cont. • BoM acquired a 9% stake in
Global Trade Finance Pvt Ltd, a NBFC promoted by Exim Bank. In Jun 2004, the
bank implemented RTGS for inter-bank fund transfer, FEX receipts & payments
and treasury settlements. • For the year to Mar 31, 2005, total income increased to
Rs 27.5 bn, up 3.2% over the previous year’s figure. Net profit decreased 41.8% to
Rs 1.8 bn. • Bank has a tie up with LIC of India and United India Insurance
company for sale of Insurance policies. Bank has achieved 100% CBS enabling
anytime anywhere banking to its customers.

6
 1.2 COMPANY PROFILE

Bank of Maharashtra बैंक ऑफ

महाराष्ट्र

Ek Parivaar, Ek Bank
Type Public

Traded as BSE: 532525

NSE: MAHABANK

Industry Banking, Financial services

Founded 1935; 85 years ago

Headquarters 1501, Lokmangal,

Shivajinagar,
Pune India

Key people A. S. Rajeev

(MD & CEO)[1]

Products consumer banking, corporate

banking, finance and
insurance, investment
banking, mortgage loans, private
banking, private
equity, savings, Securities, asset

7
 management, wealth
management, Credit cards,

Revenue ₹13,052.98 crore (US$1.8 billion)

Operating ₹2,345.18 crore (US$330 million)

income (2016)

Net income ₹100.69 crore (US$14 million)

(2016)

Total assets ₹160,957.32 crore (US$23 billion)

(2016)

Owner Government of India

 12,932 (2018)
Number of
 13,765 (2016)
employees
Capital ratio 11.20% (2016)
Website www.bankofmaharashtra.in

Bank of Maharashtra is a major public sector bank in India. The

Government of India holds 87.74% of the shares. The bank had 15 million customers
across the country with 1,897 branches as of 5 April 2016. It had the largest network
of branches of any public sector bank in the state of Maharashtra.

The bank was founded by V. G. Kale and D. K. Sathe in Pune, India.

The bank was registered on 16 September 1935 with an authorized capital

of US$1 million and became operational on 8 February 1936. It provided financial
assistance to small business and gave birth to many industrial houses. After
nationalization in 1969, the bank expanded rapidly.

Narendra Singh, who assumed the office of Chairman and Managing Director
from 1 February 2012, retired on 30 September 2013 and was succeeded by Sushil
Muhnot and Ravindra Prabhakar Marathe respectively. A.S. Rajiv became Managing
Director and CEO on 1 December 2018.

Bank of Maharashtra is a public sector bank in Maharashtra which offers

personal banking cash management retail loans and other financial services. Their

8
services include deposits savings/current bank account vehicle loans personal loans
retail trade finance global banking lending to priority sector and small-scale sector
foreign exchange and export finance corporate loans and equipment loans. As on 31
March 2018 the bank’s total branch network comprised of 1846 branches spread
across all the States and 4 union territories. The branch network includes specialized
branches in the area of Foreign Exchange Government Business Treasury and
International Banking Industrial Finance MSME and Hi-tech Agriculture Pension
Payment etc. The bank’s ATM network stood at 1864 as on 31 March 2018.The Bank
has one subsidiary namely The Maharashtra Executor & Trustee Company Pvt Ltd
which undertakes management of public/ private trusts and administration/ execution
of Will. They also sponsored three Regional Rural Banks namely Aurangabad Jalna
Garmin Bank Thane Garmin Bank and Marathwada Garmin Bank with head office at
Aurangabad Thane and Nanded respectively. Bank of Maharashtra was incorporated
on September 16 1935 and started their business on February 8 1936. In April 10
1946 The Maharashtra Executor & Trustee Company Pvt Ltd was incorporated as a
wholly owned subsidiary of the Bank. In July 1969 Bank of Maharashtra was
nationalized along with 13 other banks. After nationalization the Bank expanded
rapidly. In the year 1998 the Bank attainted the autonomous status which helped the
Bank in providing more and more services with simplified procedures without
intervention of Government. In the year 2000 they incorporated Magic money Ltd
(MeM) a joint venture of Bank of Maharashtra Dena Bank Next Step Infotech P. Ltd.
(NSIPL) and Magic Software Enterprises (MSE) Israel continued to undertake
departmental projects. During the year 2003-04 the Bank came with their initial
public offer of 10 crore shares of Rs 10/- each at a premium of Rs 13/- amounting to
Rs 230 crore. The issue received overwhelming response and was oversubscribed by
more than 11 times. Also, they opened 34 new branches and upgraded 10 extension
counters into full-fledged branches during the year. During the year 2004-05 the Bank
opened 14 new branches 2 extension counters and up-graded 1 extension counter into
a full-fledged branch. Also, they opened Holiday Home at Shirdi in addition to 5
existing Holiday Homes at different places. The Bank acquired a stake of 9% in
Global Trade Finance Pvt Ltd a non-banking finance company promoted by the
EXIM Bank. In January 2006 the Bank signed a MoU with Life Insurance
Corporation of India for distribution of their insurance products. Also, they launched a
scheme of money transfer service for Non-Resident Indians and other foreign account
9
customers using the Western Union Money Transfer Services provided by Western
Union Financial Services Inc. For this regard the Bank has entered into agreement
with Weizmann Forex Ltd the primary agent of Western Union Financial Services
Inc. During the year 2006-07 the Bank opened 29 new branches and upgraded 16
extension counters into full-fledged branches. They expanded the ATM Network from
145 ATMs to 302 ATMs during the year and entered into collaboration with VISA for
issuance of Debit cards. The Bank commissioned their own Data Centre at Pune and
Disaster Recovery (DR) site at Hyderabad. Also, they established six IT Labs at Delhi
Kolkata Chennai Hyderabad Bangalore and Lucknow in order to take care of the
massive training requirement for the CBS project. The Bank launched new schemes
like Mahalaxmi Term Deposit Scheme (3 years term deposit scheme) Mahadeep
Scheme (Financing of Solar Water Heating System) Insta Remit Scheme (RTGS
scheme for instant fund transfer) etc during the year. In May 2006 they entered into
tie up with United Insurance Company Ltd for distribution of their non-life insurance
products. During the year 2007-08 the Bank also launched two group insurance
schemes namely Maha Suraksha Deposit Scheme for all types of deposit account
holders and Maha Grih Suraksha for home loan borrowers. Also, they entered into
distribution agreement with 15 select Asset Management Companies during the year.
They opened 20 new branches upgraded 10 extension counters into full-fledged
branches. They also opened 3 Currency Chests during the year. In March 2008 the
two Regional Rural Banks namely Aurangabad Jalna Garmin Bank and Thane
Garmin Bank were amalgamated into one unit in the name of Maharashtra Godavari
Gramin Bank with head office at Aurangabad and having area of operation in nine
districts of Maharashtra. As at March 31 2008 the total branch network comprised of
1375 branches and three extensions counters spread over 22 states and two union
territories. During the financial year ended 31 March 2010 Bank of Maharashtra
crossed the milestone business level of Rs 100000 crore. During the year the bank set
up currency futures desk at its dealing room and started proprietary trading in MCX-
SX Exchange. Straight-through-Processing (STP) of Merchant Transactions was
implemented in all 28 designated Fex Centres during the year. During the year under
review Bank of Maharashtra opened 33 new branches. The bank set up three retail
credit hubs one each at Pune Mumbai and Delhi to facilitate robust and qualitative
growth in retail credit with special focus on housing loans. Five Asset Recovery
branches were also set up one each at Pune Mumbai Nagpur Kolkata and Aurangabad
10
to provide greater thrust to the legal and administrative measures for recovery of
NPAs.The year 2009-2010 was a landmark year in the chronicle of the bank as far as
technology implementation and up-scaling are concerned.

Today’s Banking sector is characterized by three basic characteristics:

 Multiple products (deposits, credit cards, insurance, investments and

securities)
 Multiple channels of distribution (branches, call center, internet)
 Multiple customer groups (consumer, small business, and corporate).

Bank of Maharashtra operates in the Commercial banks sector. In addition to

historical fundamental analyses, the complete report available to purchase compares
Bank Of Maharashtra with three other companies in this sector in India: Federal Bank
Ltd (2018 sales of 110.76 billion Indian Rupees [US$1.59 billion] of which 42% was
Retail Banking), Vijaya Bank (141.92 billion Indian Rupees [US$2.04 billion] of
which 39% was Corporate/wholesale), and United Bank of India (105.53 billion
Indian Rupees [US$1.52 billion] of which 43% was Treasury Operations).

Sales Analysis. Bank of Maharashtra reported sales of 126.02 billion Indian

Rupees (US$1.81 billion) for the fiscal year ending March of 2018. This represents a
decrease of 7.1% versus 2017, when the company’s sales were 135.71 billion Indian
Rupees. Contributing to the drop in overall sales was the 28.8% decline in
Corporate/wholesale Banking, from 51.48 billion Indian Rupees to 36.64 billion
Indian Rupees. . However, these declines were partially offset by the increase in sales
of Retail Banking (up 5.9% to 42.29 billion Indian Rupees) and Treasury (up 3.1% to
42.05 billion Indian Rupees) and Other Banking Operations (up 45.9% to 5.37 billion
Indian Rupees).

11
Name Designation

A C Rout Executive Director

A S Rajeev CEO

A S Rajeev Managing Director & CEO

Archana Ravindrarai Dholakia Part Time Non-Official Director

C V Venkatesh Chief Vigilance Officer & General Manager

Chandrakant Bhagwat Co. Secretary & Compl. Officer

Chandrakant Bhagwat Secretary

Deendayal Agrawal Director

G Sreekumar Director

N Muniraju General Manager

N Ram Babu General Manager

Nalini Shriraman General Manager

P N Deshpande General Manager

Pradeep Mishra Asst. General Manager

R H Phadnis General Manager

R Thamodharan Director

Rajkiran Bhoir General Manager

Ramesh B Kshirsagar General Manager

Sanjay Rudra Deputy General Manager

T V Raman Murthy General Manager

Vandita Kaul Director

Vasant Mhaske General Manager

Vijay Prakash Srivastava Chief Financial Officer

12
FACILITIES
All the branches of BOM have been fully computerized whit depository
services with depository services and DEMAT facilities being offered at 131 branches
as of April 2009. The bank aims at increasing its ATM network from planning to
install biometric and mobile banking is also on the cads.

OTHER HIGHLIGHTS

apart from providing regular banking services to the customers banks of

Maharashtra has established two joint ventures to fulfill its other commitments
towards its other commitments towards the gernal public a society. These joint
ventures are M-SETI and MAHABANK information center. MAHABANK self-
employment training instituted

(M-SETI) is an an effort initiated by MAHABANK agricultural research and

rural development fund (MARDEF), a trust run by Bank of Maharashtra receiving
help from national bank for rural development (NABARD). the institute run various
self-employment oriented training courses for the rural unemployed youth from the
districts of pune, Kolhapur, satara, sangli, nshik, ahmednagar, jalgaon, dhule and
nandurbar.

Mahabank information center is get another initiative by bank of Maharashtra

aimed at providing various retail banking related information to the customers and
enabling smoother operation for them

Head office

Bank of Maharashtra,

Lolmangal,

1501, Shivaji Nagar,

Pune:- 411005.

Website:- bankofmaharashtra.in

The Birth

Registered on 16th Sept 1935 with an authorized capital of Rs 10.00 lakh and
commenced business on 8th Feb 1936.

13
The Childhood

Known as a common man’s bank since inception, its initial help to small units
has given birth to many of today’s industrial houses. After nationalization in 1969, the
bank expanded rapidly. It now has 1276 branches (as of 31st March 2004) all over
India. The Bank has the largest network of branches by any Public sector bank in the
state of Maharashtra.

The Adult

The bank has fine-tuned its services to cater to the needs of the common man
and incorporated the latest technology in banking offering a variety of services.

Banks Philosophy

Technology with personal touch.

The 3m’s symbolizing

 Mobilization of Money
 Modernization of Methods and
 Motivation of Staff.

Banks Aims

The bank wishes to cater to all types of needs of the entire family, in the whole
country. Its dream is “One Family, One Bank, Maharashtra Bank”.

The Autonomy

The Bank attained autonomous status in 1998. It helps in giving more and more
services with simplified procedures without intervention of Government.

Banks Social Aspect

The bank excels in Social Banking, overlooking the profit aspect; it has a good
share of Priority sector lending having 46% of its branches in rural areas.

Other Attributes

Bank is the convener of State level Bankers committee

Bank has signed a MoU with EXIM bank for co-financing of project exports
Bank offers Depository services and Demat facilities in Mumbai.
Bank has captured 95.25% of its total business through computerization.

14
Banks Future Plans

 Opening of 40 new branches at the most strategic business centers.

 Circle offices at Pune, Mumbai, Delhi, Banglore and Nagpur.

 255 additional ATMs will be installed.

 To cross business level of around Rs 46000 crore.

 To increase customer base by 10%.

 To increase finance to Self Help Groups in rural areas.

 To substantially increase the Savings Bank Deposits.

 Bank is planning setting up of overseas representative offices in New York ,

London, Singapore & Dubai.

15
 Duration For amount less than Rs. 1.00 For Indicative
crore amount Rs. 1.00 Rates for
crore to Rs. 5.00 amount
crore above Rs. 5.00
crore

Normal Annuali Senior Annualize Norm Annuali Norm Annual

zed Citize d Yield al zed al (% ized
(% p.a.)
Yield n (% Yield p.a.) Yield
(% p.a.)
(% p.a.) (% p.a.)
(% p.a.) (%
p.a.)
p.a.)

7 to 14 Days 4.00 4.00 4.00 4.00 7.00 7.00 7.00 7.00

15 to 45 days 5.50 5.50 5.50 5.50 8.00 8.00 8.00 8.00

46 to 90 days 7.00 7.00 7.00 7.00

91 days to 7.00 7.06 7.50 7.57 8.00 8.08 8.00 8.08

180 days

181 days to less 8.50 8.77 9.00 9.31 8.50 8.77 8.50 8.77
than 1 year

One year 9.10 9.42 9.85 10.22 9.10 9.42 9.10 9.42

Mahanidhi (444 days)

9.30 11.86 10.05 12.86 - - - -

Above one year to 3 years 9.10 10.33 9.85 11.30 9.10 10.33 9.10 10.33

Over 3 years to 5 years 9.00 11.21 9.75 12.37 8.75 10.83 8.75 10.83

Over 5 years to 10 years 9.00 14.35 9.75 16.20 8.50 13.19 8.50 13.19

Effective from 11.09.2018)

All rates are subject to change from time to time

16
 The rate of interest on Bank Term Deposits Scheme, (Tax Saving Scheme for
5-year term deposit) up to investments of Rs. 1.00 Lakh only will be 9.00%.

In case of premature withdrawal of deposits, interest is payable at the rate

applicable to the period for which deposit has been actually held with the Bank.

On premature withdrawal of term deposits, for deposits up to 1-year maturity

(tenor at the time of opening the account) there will be NO PENALTY on the
applicable interest rate. Interest rates on prematurely withdrawn term deposits with
maturity period more than 1 year will be 1% below the applicable rate.

Deposits to be accepted for a maximum period of 10 years.

“Maha Double” Deposit Scheme

Under “Maha Double” Deposit Scheme, deposits will be doubled in 94 months for
depositors other than senior citizens. For senior citizens, under the scheme deposits
will be doubled in 87 months.

Category Duration For amount less than Rs. 1.00 crore

Normal (% p.a.) Annualized Yield (% p.a.)

For General Public 94 months 9.00 12.86

For senior Citizens 87 Months 9.75 13.93

17
Purpose  Build your own house
 Purchase new house/Flat (Old or New)
 Repairs/Renovation of existing house
Eligibility Salaried Persons, Professionals, Businessmen with sufficient disposable
income. Farmers having min five acres of irrigated land holding. Non-
Resident Indians are also eligible.
Age Minimum 21 years – Maximum 50 yrs. for salaried persons.
Maximum 55 years for other than salaried persons
Quantum of For salaried class
Loan: 50 times of Gross Salary or 60 times of Net Monthly salary whichever is
higher subject to applicable margin
For Businessmen
Equal to avg annual income (Net profit + Depreciation) of last 3 yrs X 4
times (B/S, IT returns) Also note repayment of any other term liabilities.
For Farmers
4 times of avg annual net income. Cross check Gross income, land
holding, cropping pattern, Sugar Factory/APMC/ other agencies bills etc.
Ensure for repayment capacity & repayment experience. If jointly
owned, consider joint holder’s income
Maximum No maximum limit for Metro/Urban area
Loan Rs.15 lakh in Semi Urban/Rural area
Rs.5 lakh for repairs/renovation in all areas
Quantum:
Deductions Total deductions including proposed EMI should not exceed 65% of
gross monthly salary / annual income.
Security Upto Rs 25000/- One Guarantor with sufficient income/net worth
Above Rs 25000/- Equitable/Regd. Mortgage of property or Equal
amount of paper security (NSCs, FDRs of our Bank etc. excluding
shares) guarantee of the spouse, guarantee of relatives whose income is
considered for quantum
Insurance For full value against fire/ Earthquake etc. with Bank’s clause.

Base Rate: 10.50% (With effect from 01. 05. 2017)

BPLR: 15.00% (With effect from 01. 10. 2018)

18
 RESERCH METHODOLOGY

Research methodology is a way to systematically solve the problem. It may be

understood as a science of studying how research is done scientifically. In it we study
the various steps that are generally adopted by a researcher in studying his research
problem along with the logic behind them. It is necessary for the researcher to know
not only the research method/techniques but also the methodology.

DATA COLLECTION
1. Primary Data
2. Secondary Data

PRIMARY DATA

The primary data are those which are collected afresh and for the first time, and thus
happen to be original in character. Primary data do not exist in record and publication.
The researcher has to gather primary data which is fresh for the specific study, under
taken by him. The researcher would have to decide which sort of data he would be
using for his study and accordingly he will have to one or the other method of data
collection. The method of collecting primary and secondary data differ since primary
data are to be originally collected, data the nature of data work is merely that of
compilation. The various methods to collect primary data are as follows:
1. Observation Method
2. Experimental Research

SECONDARY DATA

The data referred to those which had gathered for some other purpose and already
available in the firm’s initial record and commercial, trade or sources of secondary
data.
1. Internet.
2. Published of secondary data.
3. Specialized libraries.

In my project I have used Exploratory, Descriptive and Casual Research. A vast

amount of Primary data was collected through Interviews and secondary data was
collected through various books, journals and Internet sites appreciated in
Bibliography and Webliography.

19
 OBJECTIVES OF STUDY

 A Study of Housing finance bank of Maharashtra.

 Studying the importance of housing, demand for housing and house finance in
India.

 Evaluation of the role of Bank of Maharashtra in financing of houses.

 To identify the popular schemes of Bank of Maharashtra.

 To analyze the trends in housing finance by Bank of Maharashtra.

 Measuring the service quality being provided by Bank of Maharashtra to its

customers.

20
 SCOPE OF STUDY AND LIMITATION

The project has a wide scope, especially in India, where a vast area is rural and
is yet to be covered by banks and various other reasons. My project can be very
easily related to India as the bank I have chosen to work in is a picture of developing
banking scenario in rural and semi urban areas.

1. A vast area is still untapped

2. Farmers require funds for various needs
3. Middle class is growing, and they have different financial needs All round
increase in economic activity
4. Increase in the purchasing power. The rural areas have the large purchasing
power at their disposal and this is an opportunity to market Retail Banking.
5. India has 200 million households and 400 million middleclass population
more than 90% of the savings come from the house hold sector. Falling
interest rates have resulted in a shift. “Now People Want To Save Less And
Spend More.”
6. Nuclear family concept is gaining much importance which may lead to large
savings, large number of banking services to be provided are day-by-day
increasing.
7. Tax benefits are available for example in case of housing loans the borrower
can avail tax benefits for the loan repayment and the interest charged for the
loan.

21
 HYPOTHESIS

2. H0: The hypothesis taken under consideration for the study is “That 20% of

customer require housing loan of the total loan provided by bank of

Maharashtra.”

3. Sample Size
4. A random sample of 100 were administered with the questionnaire and
responses collected.
5. Research Area
6. The research was carried out in Wardhamannagar, Nagpur.

22
 CHAPTER - 02

DATA COLLECTION

23
 DATA COLLECTION

Collection of data refers to purposive gathering of information relevant to

the subject matter under study and the methods used depend mainly on
the nature, purpose and scope of the enquiry to be undertaken, as well as
on the availability of resources and time.

The data collection can be grouped under two types:-

 Primary data

 Secondary data

 PRIMARY DATA:- Primary data are those which are collected

for the first time. They are original in character. They are collected
by the researcher for the first time for her own use.

The source of primary data includes:

1. Direct personal investigation

2. Interview

1. DIRECT PERSONAL INVESTIGATION- This implies the

situation where the researcher goes into the field of study in person for
the collection of required data. Also, the investigation of this nature is
normally confined to a single locality and the information gathered is
capital in nature.
2. INTERVIEW METHOD- Every interview has got its own balance
of revaluation and has withheld information, an interview can be
effective informal verbal and non-verbal conversation initiated for the
specific purpose focus on a certain planned contained areas.

 SECONDARY DATA- Secondary data are those which have already

been collected by others. When it is not possible to collect data in
24
 primary form, the researcher may take the help of secondary data.
They are thus which have already been collected for serving the
objectives other then what the researcher might have in his mind.

The sources of secondary data includes:-

1) Books

2) Websites

3) Journals

1. BOOKS:

A book is a collection of paper or other material with text, pictures,

or both written on them, bound together along one edge, usually with
covers. In library and information science, a book is calling a monograph
to distinguish it from serial periodicals such as magazines journals or
newspapers.

2. WEBSITE:

A website may be the work of an individual, a business or other

organization and is typically dedicated to some particular topic or
purpose. Any website can content s hyperlink to any other website, so the
distinction between individual sites, as perceived by the user, may
sometimes to blur.

3. JOURNALS:

A journal may publication issued at stated intervals, such as

magazines or the record of the transactions of a society, are often called
journals. In academic use, a journals refers to a serious, scholarly
publication, most often peer-reviewed. The purpose of a journal is to
provide a place for the introduction a scrutiny of new research and often a
forum for the critique of existing research.

25
The Balance sheet shows the financial status of a business. The registered
companies are to follow part 1 of schedule VI of act 1956 for recording
Assets and Liabilities in the Balance Sheet.

26
 CHAPTER - 03

DATA ANALYSIS
AND
INTERPRETATION

27
 ANALYSING AND FINDING OF STUDY

1) AGE DISTRIBUTION OF THE HOUSING FINANCE CUSTOMERS OF

NAGPUR.

Age group 18-25 26-33 34-41 42-49 > 50

Customers 10 43 30 12 5

50
45 43

40
35
30
30
25
Series1
20
15 12
10
10
5
5
0
18-25 26-33 34-41 42-49 > 50

Interpretation:

According to this chart we knows that the customers who takes loan from
Bank of Maharashtra are most in age group 26-33 that is 43%. And least in group
which is above 50 that is 5%.

28
2) Occupation of the customers.

Occupation Farmer Agriculture Fertilizer Self Any

labour merchant employed other

customers 41 38 8 10 3

45
40
35
30
25
20 Series1
15
10
5
0
Farmer Agriculture Fertilizer Self Any other
labour merchant employed

Interpretation:-

In occupation group out of 100 customers 38% are farmers, 40% are labours,
8% are fertiliser merchant, 10% are self employed and 3% customers are involved in
other business.

29
3) Monthly income of the HOUSING FINANCE Customers.

Monthly Income Customers

< 3000 8

3001-5000 38

5001-8000 32

8001-10000 18

> 10000 4

4 8

18
< 3000
3001-5000
5001-8000
38
8001-10000
> 10000
32

Interpretation:

By observation it is found that the income of the customers is highest in 3001-

5000 that is 38% then in between 5001-8000 that is 32%.

30
4) Customers who taken loan from Bank of Maharashtra.

Response Yes No

No. of Respondents 78 22

22%

Yes
No

78%

Interpretation:-

From the above chart it is inferred that 78% people are already taken loan
from Bank Of Maharashtra and 22% people are not taken any loan from BoM.

31
5) Different kind of loan taken from Bank of Maharashtra.

Name of Loan Customers Percentage

Tractor finance 06 8%

Housing loan 42 42%

MSE finance 19 24%

Educational loan 03 4%

Agricultural finance 08 10%

Other loan 10 12%

50 42
40

30 24

20 12
8 10
10 4

Tractor Finance MSE Finance

Educational loan Agricultural finance Other loan

Interpretation: -

From the various schemes of Bank of Maharashtra 8% customers take

Housing finance, 42% take agricultural finance, 24% MSE (Micro and small
enterprise finance),4% educational finance, 10% Tractor finance and 12% take other
loan.

32
6) While taking home loan, which things attract you the most?

Chances of Very less Less Average High Very

taking loan high

customer 10 20 25 40 5

5 10

20 very less
40
less
avg
25 high
very high

Interpretation:
By observation of this pie chart I inferred that chances of taking loan from
Bank of Maharashtra is very high because 40 customer out of 100 are said that high
chances. 20% said that less chances.

33
7) No. of day for Disbusrsement

Ratings 20 Lakhs 30 Lakhs 40 Lakhs 50 Lakhs

Customer 8 16 26 39

40
35 Strongly
30 Disagree
25
Disagree
20 39 Do not know
15 26
10 Agree
16
11
5 8 Strongly Agree
0

Interpretation:-
By observation it is found that 39 customers are Agree that their objective are
satisfied by BoM in terms of HOUSING FINANCE. 8 customers are strongly
disagree, 16 customers are disagree, 26 customers are Do not know, 11 customers are
strongly agree.

34
8) The term of loan taken by them

The respondents were asked to provide information on the term of loan taken
by them. On the basis of the replies given by them, table 4.13 given below was
constructed.

Table 4.13 Term of Loan

Years Number of Respondents (%)
5 to 10 54 54.0
11 to 15 40 40.0
> 15 06 06.0
Total 100 100.0

Figure 4.8 Term of Loan

> 15 6
Years

11 to 15 40

5 to 10 54

0 10 20 30 40 50 60

(%)

It can be seen from the table that slightly more than half (54%) of the respondents had
taken home loans with terms ranging from 5 to 10 years. For 40 respondents the term
was between 11 to 15 years and for the remaining 06 the term was more than 15
years.

35
9) Ratings of Bank of Maharashtra for fulfilling your objective in terms of
HOUSING FINANCE .

Ratings Strongly Disagree Do not Agree Strongly

Disagree know Agree

Customer 8 16 26 39 11

40
35 Strongly
30 Disagree
25
Disagree
20 39 Do not know
15 26
10 Agree
16
11
5 8 Strongly Agree
0

Interpretation:-
By observation it is found that 39 customers are Agree that their objective are
satisfied by BoM in terms of HOUSING FINANCE. 8 customers are strongly
disagree, 16 customers are disagree, 26 customers are Do not know, 11 customers are
strongly agree.

36
10) Reasons for getting the home financed

Sr.No. Number of Reasons Percentage

a. Non-availability of funds 36

b. Reluctancy to pay cash in one go 35

c. Tax benefit 24

d. Any other 5

40
35
30
25
percentage of
customers 20
15
10
5
0
non- reluctancy tax benefit any other
availability
of funds

Interpretation :-
To interpret the response of the questions, the figures shows that most of the
customers find the problem in availability of funds i.e. 36% and very less number of
customers found problem in paying cash in one go is 35%, customers get housing
loan for tax benefits is 24%. This was the expected response because a large number
of people find a problem of availability of funds which works as an obstacle in
owning a dream home.

In today's life, people hardly earn both means and ends of life and they don't
have much of money to buy a home or a land to construct house because of cost of
property. So, they take the advantage of home loans provided by different banks at

37
different terms feasible to the customers. There are very less number of people, who
don't own home even when they have sufficient funds and they take the advantage of
home loans because they don't want to pay huge cash in one go.

On the basis of study, it is concluded that most of people lack of money in

fulfilling their dreams and few of them were reluctant to pay cash in one go and
wanted to pay their home loans slowly in installments.

38
11) Chances of taking any loan in future from Bank of Maharashtra.

Chances of Very less Less Average High Very

taking loan high

customer 10 20 25 40 5

5 10

20 very less
40
less
avg
25 high
very high

Interpretation:
By observation of this pie chart I inferred that chances of taking loan from
Bank of Maharashtra is very high because 40 customer out of 100 are said that high
chances. 20% said that less chances.

39
CHAPTER - 04
CONCLUSION

40
 CONCLUSIONS

CONCLUSIONS:

 From the above objectives & hypothesis it is clear that because of study of
housing loan of bank of Maharashtra know the rate of loan given by bank
to its customers.
 From the data & study graph it is clear that the age group between 26 – 83
takes maximum housing loan.
 The age group between less than 50 take minimum housing loan from
bank of Maharashtra.
 From the above objectives we know the role of bank of Maharashtra in
timing of houses.
 Because of these research study of importance of housing demand of
housing in India.

The hypothesis taken under consideration for the study is “That 50% of
customer squire housing loan out of the total loans provided by bank of Maharashtra”
is proven to be false seen on the basis of survey it is reflected that only 25% people
procure housing loan out of the role loan provided by Bank of Maharashtra. Hence the
hypothesis of rejected.

41
CHAPTER - 05

FINDINGS
AND
SUGGESTION

42
 FINDINGS OF STUDY & SUGGESTION

 It is analysis that there is the glorious future in retail banking, bank must
innovate new product for customers.
 Processing time in the various business operations in bank is higher it must me
minimize for the customers.
 The majority of the customers go with Bank of Maharashtra for housing loan,
because it provides housing loan at lower interest rates.
 Purchase decision of customers mainly influence by interest rates.
 Easy access of statement of accounts of the customers should be made
convenient in each and every branch.
 More spread over of the company branches in other cities & rural areas of
India.
 Processing time of providing service to customer should be reduced.
 Bank should introduce new attractive schemes to attract new customers &
thereby to increase its market share.
 Bank should also concentrate on developing & maintaining customer
relationship which now a day’s plays vital role in retail banking.

43
BIBLOGRAPHY

44
 BIBLIOGRAPHY

BIBLOGRAPHY

Financial Management-Prasanna Chandra

The Institute of Company Secretary-Indian Economy

www.bankofmaharashtra.com

www.google.com

www. bankofmaharashtra.in

45
ANNEXURE

46
 ANNEXURE

The Survey Of Housing Finance Customers

Name: ………………………………………………………………………..

Address: ……………………………………………………………………..

Contact No :®………………( O)……………… (M)………………………

City: ………...............Pin: ………………….State: ……………………….

(I) General Information

i. Name : -----------------------------------------------------------------
ii. Sex- M / F: -----------------------------------------------------------------

1) AGE distribution of the Housing Finance customers of Nagpur.

 8-25
 26-33
 34-41
 42-49
 > 50

2) Occupation of the customers.

 Farmer
 Agriculture labor
 Fertilizer merchant
 Self employed
 Any other

3) Monthly income of the HOUSING FINANCE Customers.

 < 3000
 3001-5000
 5001-8000
 8001-10000
 > 10000

47
4) Customers who taken loan from Bank of Maharashtra.

 Yes
 No

5) Different kind of loan taken from Bank of Maharashtra.

 Tractor finance
 Agricultural finance
 MSE finance
 Educational loan
 Housing loan
 Other loan

6) While taking home loan, which things attract you the most?

 Interest rates
 Service Provided
 Payback period
 Scheme
 Others
tion
 Renovation
 Conversion Loan

7) No. Of day for Disbursement

 20 Lakhs
 30 Lakhs
 40 Lakhs
 50 Lakhs

8) The term of loan taken by them

 5 to 10
 11 to 15
 > 15

9) Ratings of Bank of Maharashtra for fulfilling your objective in terms of

HOUSING FINANCE .

 Strongly Disagree
 Disagree
 Do not know
 Agree
 Strongly Agree

48
10) Reasons for getting the home financed
 Non-availability of funds
 Reluctancy to pay cash in one go
 Tax benefit
 Any other

11) Chances of taking any loan in future from Bank of Maharashtra.

 Very less
 Average
 Less
 High
 Very high

49