COMPARATIVE STUDY OF HOME LOANS OF PNB AND SBI BANK.

A dissertation submitted to Department of Management in partial fulfillment of the requirement for the award of degree of BACHELOR OF BUSINESS ADMINISTRATION (HONS.)

Submitted by: KOMAL MARWAHA 7020070003

Supervisor: Miss Monika Kanali (lect,lpu)

LOVELY PROFESSIONAL UNIVERSITY PHAGWARA 2010

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TO WHOMSOEVER IT MAY CONCERN
This is to certify that the project report titled “Comparative study of home loans of PNB and SBI” carried out by Miss KOMAL MARWAHA, D/o registered BBA(Hons) RAJESH MARWAHA has been accomplished under my guidance & supervision as a duly student of the Department of Management, Lovely Professional University, Phagwara. This project is being submitted by him/her in the partial fulfillment of the requirements for the award of the BBA(Hons) from Lovely Professional University. Her dissertation represents her original work and is worthy of consideration for the award of the degree of BBA(Hons)

(Name & Signature of the Faculty Advisor) Title: Dare:

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DECLARATION

I KOMAL MARWAHA, hereby declare that the work presented herein is genuine work done originally by me and has not been published or submitted elsewhere for the requirement of a degree programme. Any literature, data or works done by others and cited within this dissertation has been given due acknowledgement and listed in the reference section.

(Student's name & Signature) (Registration No.) Date:

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lovely professional university. I wish to thank my family and friends for their encouragement and support that accomplishment me throughout the research work.phagwara. 4 .Acknowledgement First of all my sincere gratitude goes to my academic supervisor Miss Monika Kanali. for their cooperation and support during this work. In many stages of project. lecture.who helpd andguided me for this work. I also would like to thanks all the staff members of the department. Her conversation and encouragement will always be remembered. Finally. her proudful expertise and professional knowledge provided crucial and key injection to the technical solution.

2 Objective.4 Company’s history 2.TABLE OF COTENTS Page no.3 Profile of the organization 2. Landmarks. Need.1 Introduction to Company 2. 6-11 Chapter CHAPTER 1 Section 1.1 Conclusion 5.2 Limitations 67-69 70-72 CHAPTER 6 References CHAPTER 7 Questionnaire 5 .7 Performance of the company over the last few years(Statistical Profile) 2. Scope & Methodology 12-28 CHAPTER 2 Section 2.6 Product range of the company/industry 2.1 Introduction to Subject 1.2 Overview of the industry (History. Growth. major players and their market share) 2.5 Recent achievements and milestones 2.8 Financial status of the organization 2.9 Future prospects/ plans 29-35 CHAPTER 3 Survey of Literature 36-65 CHAPTER 4 Interpretation 66 CHAPTER 5 Section 5.

when the sites are coming up with all the latest tools and relevant information for us. However. home loans are different in several respects. we must repay our debts with interest. obtaining a home purchase loan or mortgage has 6 .1 Section INTRODUCTION TO SUBJECT: Home loans work like any other debt.CHAPTER 1 1. There are many home loans provider in the market. loans are simply specific money that we borrow from a bank. • • • • • • • Home Purchase Loans Home Improvement Loans Home Construction Loans Home Extension Loans Home Equity Loans Land Purchase Loans Bridge Loans Home purchase loans: These are the basic forms of home loans used for purchasing of a new home. and with all such conveniences.e. Owning a piece of land or property is a lifetime dream for every individual. But at the same time. That is. or some other type of lender. unlike other types of loans. There are different type of home loan i. a private lender. Afterwards. With about a million home lenders and mortgage brokers it's becoming a tough challenge as the days are progressing.

Certain loans can be structured for progress payments to be made during construction. Home improvement loans are used to maintain or enhance the value of your house. though. a new bathroom. at the same time though. 7 . Home improvement loan: Home improvement loans are used to finance improvements and add on to the existing set of credentials of beauty on your owned house. energy-related items (permanent in nature). Home extinction loan Home extension loans are used by customers to get loans from the banks to extend their houses. we may also be required to consider the total expenditures to develop the site in order to build. recently purchased property or rented accommodation. remodeling. Each site is unique requiring different expenditures so this specific rupee amount will vary from site location to site location. we may be flummoxed to look so many attractive rates and offers in the market. besides calculating the construction costs. or any other rooms for your growing family. not to forget the hidden costs associated with each of them. terraces. repairs. terrace. Home construction loan: Home construction loans are used to finance for the construction of our newly acquired home or if we are planning to build a home. wash rooms. For example. However. As work progresses you will need to make payments to the builder. an extension or general property improvements. The factors include in calculations for house building costs? • • • • Design of the house Construction cost Financing Cost Buildable site All the above mentioned costs will help us to determine the amount we may need to borrow.become really pretty simple. we will be required to pay a deposit to your builder as well as paying a deposit for the land if we are buying land. Many improvements in landscape and even swimming pools are nowadays considered to be a part of home improvement. In general it includes: repairs. or constructing a Puja ghar. It may also be used to enclose open balcony/terrace space. by adding more rooms. kitchens. Luxury items and fireplaces are generally not eligible. a new kitchen. Payment: Before the house starts getting build.

So. Now. The bridge loans help finance the new home. Everyone has his/her dream perfectly sketched in his souls and so is his ambition to get his house erected on the exact location he dreamt that to be. Home equity loans don't restrict one to use the loan money in specific investments. While many lending firms around the nation compete to provide mortgages for the purchase of a house on a lot. provided the mortgager is a licensed title holder and the land is free form any kind of dispute. only local institutions typically will be interested in lending for an empty lot. who wish to mortgage his/her property to the bank for taking some loan for some other purpose. It can be considered as a short term financing scheme which 8 . you have come to the best place you could have arrived in the web. Home equity loans are availed by customers. and have arrived here for finance.Maximum Amount of Home Extension Loans: Banks generally offers about 70-85% of the total amount of home extension as loan. Then. Home equity loan: Home equity loans helps customer to encash the market value of the commodity by taking a loan by mortgaging the property. land purchase loan: Land Purchase loans are used by customers who wish to purchase a plot of land for commercial or residential purpose. Loans that are strictly for land purchase can be as scarce as good residential plots. you will realize that a land purchase loan is one you will cherish. tenure of the loan. Both the residential as well as non residential property can be considered for the approval of the loan. Bridge loans are used by customers as an effective vehicle to capitalize on a purchase opportunity. etc. his/her credit history etc. It might also be used in marriage. that you have decided to purchase a land as an investment or for your own dream home. Bridge loan: Bridge loans are designed for people who wish to sell the existing home and purchase another one. until a buyer is found for the home. If you have found and shorlisted the piece of land. medical expenses. The amount of loan sanctioned also depends on a number of factors such as the age of the applicant at the time of loan. However it should not be used in any illegal or speculation purposes. repayment capacity of the borrower. higher education. it's up to the bank's discretion to consider the market value of the property and accordingly decide how much to pay to the customer.

Citibank. It is helpful in analysing the home loan service provided to the customer and their comparison. 9 . SCOPE OF THE STUDY: This study is analysis and comparison of home loans provided by the SBI and PNB banks. They can also be operating loans for periods between LOI and acquisition. Effort will be made to throw light on most of the factors which have either indirect or direct effect on the behavior of the consumer. you may be required to continue payments. you may receive interest payments back. and are used to cover the time between redemption of issuance of one bond and its replacement by a new issue.is generally expected to be paid back.  To know that which bank provide batter loan schemes. I will try to explore about the home loans which would make a difference in the behavior of the consumer. (or swing loans as they are otherwise said) is a short term loan provided by various banks like Bank of India. within the range of 6-36 months. sometimes as much as six months. often used for commercial real estate purchases.  To analyze the home loan scheme by PNB and SBI banks. I will also explore the impact of home loans on the market share of the banks. retrieve real estate from foreclosure. So. A population of peoples who take home loan from these banks will be considered for this study. or quiet period and IPO. Bridge loans in corporate finance are called gap financing. till the time the borrower gets more permanent and lower cost financing.2 Section OBJECTIVES  To study the cost of home loans provided by the bank.  To know the consumer perception about the home loan of PNB and SBI. RESEARCH METHODOLOGY Design of Research: The research will be exploratory in nature. but if it hasn't sold. ICICI etc. 1. If the home gets sold before that time. Bridge loan may contain a decent proportion of prepaid interest. bridge loans.

this research data will collected from the primary source and secondary source. so we will find secondary data also and also use this data for the help of this research. I will go for stratified random sampling as we are interested to study the home loan by SBI and PNB banks. As in probabilistic sampling the select unit for observation with known probabilities so that statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample. And from each strata we will go for random sampling. The sample will be taken in the form of strata based on age. and income group. gender.Sampling plan: • Population: The study aimed to include the customers of SBI and PNB in nawanshahr. so we will make the strata on the basis of age. occupation. • Sampling technique: The sampling technique will be probabilistic sampling more specifically the random convenient and judgemental sampling will be used. Sources of Data: I will use primary source of data that is structured questionnaire. The sample will the peoples of age group lying between eighteen to thirty years. • Sample Size: A Sample size of 100 respondents will be taken for the current study because it is not possible to cover the whole universe in the available time period. 10 . sex.. to make a comparative analysis of home loan schemes of these two banks. so many researchers have done research on this topic. In 100 respondents 50 respondents from PNB and 50 from SBI. So it is necessary to take the sample size. So. income level. As these banks are established from so many years.

BAR CHARTS . Technological Tools: MS -WORD MS-EXCEL 11 . it will be structured questionnaire. simple way. Basic tools which I used for project are: . Tools and Techniques: As no study could be successfully completed without proper tools & techniques. So I need not necessary for any observer to read all the theoretical detail.PIE CHARTS . For the better presentation and right explanation I used tools of statistics and computer very frequently and I am very thankful to all those tools for helping me a lot. simple on seeing the charts anybody that what is being said. Because I used bar charts and pie charts in my project for showing data in a systematic way. same with my project.Our method of collecting the data is from the questionnaire that will be filled by the respondent from the sample.TABLES Bar charts and pie charts are very useful tools for every research to show the result in a clear.

The eight banking subsidiaries are:State Bank of Bikaner and Jaipur (SBBJ).State Bank of 12 . Nodal and Bangalore. Ahmedabad. Chandigarh.State Bank of India (SBI). STATE BANK OF INDIA: State Bank of India (SBI) is India's largest commercial bank. Hyderabad.State Bank of Hyderabad (SBH). For an overview of the annual report or the bank profile.1 Section INTRODUCTION TO COMPANY: PUNJAB NATIONAL BANK : PNB has over 4500 branches and offices bringing the Punjab National Bank to your doorstep. A need for centralized banking system prompted PNB to go computerized and what followed was the establishment of CBS in Punjab National Bank branches in all the leading cities like Delhi. factoring services.45% as evaluated by the SSS Retirement. Ludhiana. The website also provides info on the careers and recruitments at PNB and the exam results. fund management. SBI has a vast domestic network of over 9000 branches (approximately 14% of all bank branches) and commands one-fifth of deposits and loans of all scheduled commercial banks in India. primary dealership in government securities. credit cards and insurance. Chennai. The careers at nationalized banks like PNB are the most sought after one and candidates are selected on the basis of their exam result. Mumbai. The State Bank Group includes a network of eight banking subsidiaries and several non-banking subsidiaries offering merchant banking services. Death & Funeral Benefits Program. Kolkata. Internet Banking Services are provided to all customers in the CBS branches. the site can be resourceful. A branch and ATM locator is also available on the official website of Punjab National Bank.CHAPTER 2 2. Jalandhar. PNB topped the Best Paying Commercial Bank category with an overall rating of 87. Gurgaon. Around 2400 offices come under the network of Centralized Banking Solution or CBS. Pune.

But the industry changed rapidly and drastically. the Foreign Offices division. The beginning of this industry can be traced back to 1786. Industry estimates indicate that out of 274 commercial banks operating in the country.State Bank of Mysore (SBM). This is primarily due to the size of the banks and the penetration of the networks. Opportunities The Banking sector is considered the most lucrative option in today’s job market. Investment Banking and Retail Banking. etc. One could work in a variety of areas in banking industry including Recurring Deposit 13 . The industry is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances.State Bank of Patiala (SBP). The Indian banking system can be classified into nationalized banks. In the industry. nationalized banks continue to be biggest lenders in the country. Then came the muchtalked-about liberalization and economic reforms that allowed banks to explore new business opportunities and not just remain constrained to generating revenues from mere borrowing and lending. Bank of Bengal. Today. after the nationalization of banks in 1969. The specialized banking institutions that include cooperatives. private banks and specialized banking institutions.Indore (SBIR). The Reserve Bank of India is the foremost monitoring body in the Indian Financial sector. It is a centralized body that monitors discrepancies and shortcomings in the system. was established. form a part of the nationalized banks category. despite the foray of foreign banks in the country. even today. 223 banks are in the public sector and 51 are in the private sector.the Domestic division. when the country’s first bank. These private sector banks include 24 foreign banks that have begub their operations here.State Bank of Saurashtra (SBS) and State Bank of Travancore (SBT). rural banks. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . the Foreign Department and the International Services division. However. 2.2 Section OVERVIEW OF THE INDUSTRY: HISTORY: Banking in India has a long and elaborate history of more than 200 years. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. a position in Treasury or Forex is considered right on top and this is followed by careers in Private Banking. This provided the Indian banking scenario a remarkable facelift that only continues to get better with time. the public sector banks began experiencing numerous positive changes and enormous growth. As a result.

the banking sector is witnessing a decline in the growth of its home loan portfolio. personal loan officer. While some brokers like to practice with individual clients others work for institutions. which constitutes more than 52% of all retail loans. Brokers who work for institutional investors are often called securities traders. the limit for foreign institutional investment in private banks is 49%. Many prefer to work as dealers.account. Rajiv Sabharwal. survey the industry as a whole and on the basis of the available information. The report also paints a future outlook for the market. assess various statistical information. In addition. In order to help banks in India to understand the market and competition and plan future strategies. Research and Markets has announced the addition of 'Indian Retail Banking. 14 . mortgage loan underwriter. probationary officer. as against 30% growth in home loans earlier. 2006' to their offering. some of the important jobs include that of a stockbroker who is essentially a person who buys and sells securities on behalf of individuals and institutions for some commission. Equity Analysts do jobs similar to investment analysts and research the equity markets and make predictions. along with issues and challenges. This leap was despite the increase in risk weight by RBI for housing and real estate loans during August.2006 edition. They study the financial reports of companies. Liberalization and globalization have created a more challenging environment in the banking sector as well as in the other segments of the financial sector such as mutual funds. In the Financial Services. Besides it profiles 21 major players in the retail banking space and their strategies. loan officer. loan manager. With tightening of interest rates by the RBI and a simultaneous increase in real estate prices in a few markets. Housing. compare financial results. accountant. Non Banking Finance Companies. Growth: The limit for foreign direct investment in private banks has been increased from 49% to 74%. loan processing officer. post offices. Indian Retail Banking continues to redefine the credit growth in the country. It grew by a whopping 44. product marketing and sales executive. assessor.35% during 2005-06. The home loan industry is experiencing a growth of 25% this year. capital markets. advisors and securities analysts. and customer service executive among others. Security analysts are those who advise companies on floatation’s of shares as they are expected to have sound knowledge of capital markets. and finally conclude to a decision. 2005. grew at a robust rate of 44. Investment analysts are the backbone of the financial services sector.4% in 2005-06 to touch Rs 3. venture capitalists. etc. senior general manager. home loan officer. profitability projections. it seems Reserve Bank of India's (RBI) flurry of measures to restrain the home finance market is paying off. banking officer. ICICI Bank. This report analyses the retail banking market and its segments in India and presents the key trends. home loan agent.538 billion. Finally. we have just come out with an Industry Insight on Indian Retail banking .

” He added that the bigger impact had come from real estate prices. In the first half of fiscal 2007. said. “The real estate prices have become very high in few markets. a senior official of State Bank of India (SBI) said the home loan market is showing some signs of slowing down. MAJOR PLAYERS: The financial sector in India has become stronger in terms of capital and the number of customers. Retail lending comprises 70% of the total loan portfolio of the bank.400 crore. TOP 10 PLAYERS IN BANKING & FINANCE State Bank of India HDFC bank Citibank ICICI Bank Punjab National bank UTI Bank Hongkong & Shanghai Banking Corp. another major player. profitability. However. investment fluctuation reserve. there will be some impact on us too. exposure limits. at higher productivity and efficiency. Reforms have changed the face of Indian banking and finance. He. Exposure to worldwide competition and deregulation in Indian financial sector has led to the emergence of better quality products and services. Kotak Mahindra Bank Sundaram Bank Oriental Bank of Commerce TOP 10 PLAYERS IN INSURANCE 15 . Housing Development Finance Corporation (HDFC) said the housing finance market for the middle class segment was growing at a healthy pace. The banking sector has improved manifolds in terms of capital adequacy.which has recorded the highest incremental growth in home finance segment in recent past. income recognition. which has resulted in the fall in growth rates for home loans for the banking industry. PNB Bank is a leading home loan lender of the country with about 30% market share. Echoing a similar view. the bank experienced total home loan disbursements of Rs 13. It has become globally competitive and diverse aiming. provisioning. etc. however. risk management. Home loan growth has reduced to 25% from its earlier growth rate at 30% and since we are an integral part of the industry. asset classification. of which the home loan lending is about 50%. but obviously interest rates hikes will also have an impact. declined to disclose the bank’s current home loan growth rate.

which would contribute to price discovery. today it offers the largest banking network to the Indian customer. 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.  Ensure the development of underwriting and market making capabilities for Government Securities  Improve secondary market trading system.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. Iffco Tokio General Insurance Oriental Insurance Co. 16 . The Bank is also in the process of providing complete payment solution to its clientele with its over 8500 ATMs. industrial and agricultural finance and finance of trade. and other electronic channels such as Internet banking. Punjab National Bank boasts of a varied clientele consisting of small and medium industrial units. Indian conglomerates and NRI. personal and international banking. debit cards. With about 8500 of its own 10000 branches and another 5100 branches of its Associate Banks already networked. etc. HDFC Standard Life Insurance 2. mobile banking.Life Insurance corporation of India Bajaj Allianz General Insurance ICICI Prudential Life Insurance ICICI Lombard General Insurance Birla Sunlife Insurance Tata AIG General Insurance New India Assurance Co. liquid and broad based. multi-national companies. exporters. The Bank is changing outdated front and back end processes to modern customer friendly processes to help improve the total customer experience.3 Section PROFILE OF THE ORGANISATION: PROFILE OF PNB: The profile of the PNB shows superior banking services in corporate.

2. SBI Life and SBI Cards . Throughout all this change. SBICAP Securities.The National Banking Group also delivers the entire spectrum of corporate banking products to other corporate clients. focusing on the prime corporate and institutional clients of the country’s biggest business centers.forming a formidable group in the Indian Banking scenario. Foremost among these a specialized group is the Corporate Accounts Group (CAG).PROFILE OF SBI: The SBI’s powerful corporate banking formation deploys multiple channels to deliver integrated solutions for all financial challenges faced by the corporate universe. The Corporate Banking Group and the National Banking Group are the primary delivery channels for corporate banking products. on a nationwide platform. SBI Factors.000 employees in a period of 100 days using about 400 Trainers. The bank is also looking at opportunities to grow in size in India as well as Internationally. the Bank is also attempting to change old mindsets. The workshops fired the imagination of the employees with some other banks in India as well as other Public Sector Organizations seeking to emulate the programme.4 section 17 . SBI DFHI. It has also 7 Subsidiaries in India – SBI Capital Markets. The Corporate Banking Group consists of dedicated Strategic Business Units that cater exclusively to specific client groups or specialize in particular product clusters. In a recently concluded mass internal communication programme termed ‘Parivartan’ the Bank rolled out over 3300 two day workshops across the country and covered over 130. It presently has 82 foreign offices in 32 countries across the globe. It is in the process of raising capital for its growth and also consolidating its various holdings. attitudes and take all employees together on this exciting road to Transformation. The others are the Project Finance unit and the Leasing unit. to drive home the message of Change and inclusiveness.

Today it is the second largest public sector bank in India. SBI HISTORY: The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. PNB was fully privatized.77 per share bid offered by a competitor and purchased the shares owned by the government. PNB became the first Philippine bank to reach P100 billion in assets. the Bank of Bengal and two other Presidency banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament as successor to the Imperial Bank of India. It was nationalized in 1969 along with 13 other major commercial banks. The Lucio Tan Group exercised its right to match the P 43. In 1921. The privatization started in 1989 when 30 per cent of its shares were offered to the public and it was listed on the stock exchange.COMPANY HISTORY: PNB HISTORY: Punjab National Bank of India was established by Lala Lajpat Rai in the preindependence India in 1895 in Punjab. SBI's International Banking Group delivers the full range of cross-border finance solutions through its four wings . In 1955. The completion of sale is expected to speed up the development of PNB’s franchise and operational competitiveness. In August 2005. The joint sale by the Philippine government and the Lucio Tan Group of the 67% stake in PNB was completed within the third quarter of 2005. Today. privatization continued with a second public offering of its shares. State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. the Foreign Department and the International Services division. Later that year. with Lahore as its head office.the Domestic division.In 1992. the Foreign Offices division. 18 .

PNB sought to not only achieve automation. The visionary zeal and the futuristic view of the Bank’s top management in the year 2007-2008 incubated the idea of introduction of a Centralised Banking solution.5 million. 4 months ahead of schedule. With Finacle’s agile and future proof technology. and quickly and confidently adapt to an increasingly changing competitive environment. PNB is able to provide 24X7 services to customers at a reduced transaction cost. reduce overall costs. has announced that it has completed 100% core banking implementation at all its 4604 branches and extension counters through the Finacle Universal Banking Solution from Infosys. In addition. standardize branch processes. Finacle core banking platform also provides the bank with exceptional agility for product innovation and improved flexibility of operations. The solution’s scalability has also enabled the bank’s scalability to be the best in the country with the number of peak transactions at 3. With seamless integration of delivery channels such as ATM and internet banking solutions.2. gain better business insight.5 million transactions and 22500 concurrent users – a significant achievement in the Indian banking industry. 19 . PNB’s choice of the Oracle Database has provided the bank’s IT infrastructure with robustness. the bank implemented industry-leading Finacle core banking solution from Infosys across its operations running a flexible. the bank today has over 22. provide flexibility of creating innovative banking products to its lines of business. Completed in November 2008.5 Section RECENT ACHIVEMENTS AND MILESTONES: PNB Recent achievements and milestones Punjab National Bank (PNB). The bold and innovative thought culminated into the CBS architecture with Finacle application on Oracle Database and Sun hardware platform with Solaris Operating System. achieve high scalability for future business growth. management features. but also centralize operations.500 concurrent users. security and scalability as well as performance requirements to service 3. and scalable database platform from Oracle and innovative servers from Sun Microsystems With an increasingly dynamic business and regulatory environment. the Oracle Database will help PNB take control of its enterprise information. on Sun infrastructure and the Oracle Database setting a significant milestone for themselves and a new benchmark for the Indian banking industry. and at the same time.

20 . a joint venture between State Bank of India and GE Money.000 branches. PNB long-standing and progressive partnership also highlights Finacle’s leadership in large scale banking transformation. 'That is what economists say is financial inclusion.000 branches when Union Finance Minister P Chidambaram inaugurated its latest branch here. Speaking on the occasion. the solution’s future proof technology and powerful capabilities.' he said. India is a strategic market for Finacle and we look forward to closely collaborating with Punjab National Bank for their future growth plans. The Minister said out of the over 100 crore people.000 branches: Public sector State Bank of India on Sunday became only the second bank in the world to have 10.000 branches was a great feat. SBI Card reaches three million milestone: SBI Card. Similarly.8 times. business intelligence and content management applications. CNBC TV – 18. CEO-SBI Card." SBI Card recently signed up Indian cricketer Yuvraj Singh as its brand ambassador.18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards for our schemes. including the Chinese. Chidambaram said China's ICBC Bank was the other bank to have 10. The bank should be proud of the achievement he said and wished that the bank opened one lakh branches." he said. "It is not an easy milestone though the SBI was the bank of the government and Indian people even before other banks were nationalised. Our objective is to accelerate the pace of growth by extending the benefits to a broader range of consumers in Tier II cities. seventy 75 per cent did not have any type of insurance. The 100% implementation of Finacle Core Banking Solution shall enable PNB to further reduce operational costs and revenue leakage while improving productivity of branches. would now know about this small village where the 10000th branch of the SBI had been opened. introduction of new and innovative products and visibility of business. People all over the world. announced yet another landmark achievement of crossing the three million cardholders-mark. Banks should go to the people and enroll them as account holders. The Lipper Award (Year 2005-2006) and most recently with the CNBC TV . "This milestone is even more remarkable as we have added one million cardholders in just ten months. 50 per cent of the 11 crore farmers did not have bank account. Oracle customers can tackle the most demanding transaction processing. along with improved value propositions for the urban affluent customers. highly available and scalable grids of low-cost servers and storage. said. SBI joins Chinese bank to touch 10.With secure. Roopam Asthana. The anywhere anytime banking facility will enable the bank to offer products for every segment of the customer. Crisil Award 2006 .” SBI RECENT ACHIVEMENTS AND MILESTONES: AWARDS:SBI has been the proud recipient of the ICRA Online Award . he said adding they would be amazed by the bank's growth. data warehousing. Opening 10.4 Awards.

7 billion versus end-2007. PNB still managed to reflect a 136% growth in foreign exchange gains year-on-year.3 21 . With the significant strengthening of its balance sheet over the past few years. PNB’s consolidated total asset size remained strong at P242 Billion.6 Section PRODUCT RANGE OF COMPANY/INDUSTRY: The products and services provided by the SBI and PNB are in various fields. PNB continues to reap the benefits from its efforts to strengthen core businesses. The Bank has recently implemented a new generation core banking system: Flexcube – an end-to-end solution designed to automate both corporate and retail banking businesses. This performance bucks industry trends for the 1st quarter of 2008 based on published income reports. and effectively in-source core overseas operations to its global data center in the Philippines. Operating expenses were down 23% despite investments made in systems enhancement and upgrading of facilities. Total deposits closed firm at P180 billion. A relentless focus in generating low-cost funds from deposits and other funding sources led to a reduction in total interest expense by as much as 27%. reduce non-performing assets and manage costs.2. As of March 31. from P242 million to P571 million. both in the large and SME categories.5 billion. Total consumer loans portfolio stood at P3. Hongkong and United States branches as well as the London subsidiary have already been converted and the rest of the Bank is expected to go live soon. Singapore. PNB has been able to concentrate on generating new client relationships in the corporate segment. Net Income for the 1st Quarter of 2008 registered P457 million. Even as the operating environment proved volatile where negative trends are expected. such as: • Banking services • NRI services • International banking • Corporate banking • Agricultural banking • International banking 2. The contribution from the consumer finance business has likewise continued to register accelerated growth. up P2. PNB’s Japan.7 Section PERFORMANCE OF COMPANTY IN LAST FIVE YEARS: PNB performance in last five years: 1st Quarter Net Income UP 48% Year-on-Year Taking-off from a breakthrough performance in 2007 with a registered net income of P1. 2008. up 48% from P308 million of the same period last year.

2008 approving the plan to merge the two banks. which is addressed to all SBI officers and employees andaimed at changing their attitude towards customers. the bank is also going flat out to increase its customer base. Canara Bank's profit per employee (PPE) is also on the higher side at Rs 3. these two parameters are among the lowest in the industry. PNB’s Net Loans and Receivables closed P77 billion.36 crore and Bank of Baroda's (BoB) Rs 3. "Our business per employee and profit per employee is one of the lowest in the industry.13 lakh. PNB’s Capital Adequacy Ratio under Basel II remained formidable at 18. while its profit per employee is just about Rs 2. SBI performance in last five years: State Bank of India (SBI) is all geared up to increase its business per employee and profit per employee as it thinks that for SBI. The respective Board of Directors of PNB and ABC passed resolutions last April 30. Our vast network is failing to attract the new and demanding young customers. On one hand. while Union Bank of India's BPE is at Rs 4. The PPEs of Union Bank and BoB are at Rs 2.66 lakh and Rs 2.17 lakh. 22 . up 25% from end-2007.02 lakh. 2008. still way above the 10% ratio required by the Bangko Sentral ng Pilipinas.99 crore of business per employee. respectively. but on the other. These are according to their respective annual reports for 2005-06.billion. the bank is trying to reduce its staff strength which would eventually improve the ratios.51 crore." SBI had recently said in a joint statement issued by the management and unions.42 crore. Canara Bank has a business per employee (BPE) of Rs 4. This transaction is subject to the approval of shareholders and regulatory authorities and is expected to be completed by the 3rd quarter of 2008. majority of the large public sector banks are better in terms of both these parameters. PNB will emerge as the 4th largest domestic bank in the country in terms of asset size once its planned merger with Allied Banking Corporation (ABC) is completed. By contrast. As of March 31. Combined new bookings for the 1st quarter 2008 already reached the half-billion mark. For instance. Subject to appropriate approvals and clearances. PNB is going to the capital markets to raise a minimum of P3 billion of Tier 2 Capital in preparation for its maturing subordinated notes in February 2009. we have been steadily losing our marketshare from about 35% in 1970s to around 16% in 2006." SBI said in that statement. "Over the years.51%. On the other hand.SBI's generates Rs 2.

The statement was jointly signed by chairman OP Bhatt, managing directors TS Bhattacharya and Yogesh Agarwal and top office bearers of its officers and employees associations. To address these issues, both the management and unions have agreed to work hand in hand. They have appealed to the bank's staffs to go flat out to increase its customer base."Let us be conscious of the customer's overall needs rather than only the transaction at hand. Let us expand our customer base," the statement read. The bank has nearly 37 lakh savings bank accounts in the Bengal circle itself.Meanwhile, the country's largest and oldest bank has offered an exit option scheme (EOS) to its employees. The bank has some 2.1 lakh staffs, out of which nearly 1.4 lakh are clerical and subordinate employees.

2.8 Section FINANCIAL STATUS OF THE ORGANISATION:
PNB financial status for last five years: Annual results
Mar ' 08 Sales Operating profit Interest Gross profit EPS (Rs) Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 14,265.02 11,537.48 9,584.15 8,459.85 7,778.94 10,029.21 8,730.86 4,006.24 64.98 7,149.74 5,721.06 4,683.04 4,056.84 6,022.91 4,917.39 4,453.11 4,154.99 3,230.64 2,874.77 2,707.21 3,120.86 48.84 45.65 44.72 41

Balance sheet
Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds 315.30 10,467.35 315.30 9,826.31 315.30 8,758.68 315.30 265.30 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

7,533.50 4,425.47

23

Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets, loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding (Lacs)

-

-

-

-

-

1,66,457.23 1,39,859.67 1,19,684.92 1,03,166.89 87,916.40 1,77,239.88 1,50,001.28 1,28,758.90 1,11,015.69 92,607.16

3,699.64 1,535.70 1,384.12 779.83 53,991.71

2,247.74 293.85 1,237.92 715.98 45,189.84

2,106.92 302.38 1,076.69 727.84 41,055.31

1,875.65 1,645.93 312.49 910.42 652.74 321.04 746.08 578.81 -

50,672.83 42,125.49

4,380.84 14,798.23 -10,417.38 44,354.15

3,980.80 10,178.51 -6,197.71 39,708.10

3,762.79 9,518.93 -5,756.14 36,027.01

3,101.44 3,261.18 12,194.80 8,114.48 -9,093.36 -4,853.30 -

42,232.20 37,850.99

1,04,055.87 3153.03

74,700.48 3153.03

58,739.31 3153.03

-

-

47,047.19 32,229.85 3153.03 2653.03

Profit loss account
Mar ' 08 Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses 2,461.54 23.31 2,352.45 18.03 2,114.97 20.15 2,121.23 19.16 1,654.06 10.85 15,925.65 12,104.24 9,791.12 9,712.63 9,617.34 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04

24

Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings

1,247.47 3,732.33 3,462.46 231.62 3,694.08 8,730.86 170.23 3,523.85 1,247.15 2,047.63 1.13 2,048.76 2,064.28 409.89 69.66 1,584.73

1,360.77 3,731.25 2,350.09 186.67 2,536.76 6,022.91 194.80 2,341.96 629.05 1,539.33 0.76 1,540.08 1,723.57 409.89 63.11 1,250.57

941.38 3,076.51 1,797.23 131.54 1,928.77 4,917.39 186.65 1,742.12 412.83 1,436.66 2.65 1,439.31 1,439.31 189.18 26.53 1,223.60

933.60 3,073.99 2,185.53 470.69 2,656.22 4,453.11 183.28 2,472.94 495.49 1,409.50 0.62 1,410.12 1,410.12 174.18 23.48 1,212.46

1,764.91 3,429.82 2,032.53 59.85 2,092.38 4,154.99 181.45 1,910.93 660.79 1,108.45 0.24 1,108.69 1,108.69 106.12 13.60 988.97

Cash flow
Mar ' 08 Profit before tax Net cashflow-operating activity Net cash used in investing activity Netcash used in fin. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year 3,295.91 Mar ' 07 2,169.13 Mar ' 06 2,033.87 Mar ' 05 Mar ' 04 1,904.74 1,768.68 1,073.53 -349.83 1,544.81 2,268.51 529.29 -176.20 390.24 743.33

1,756.13 -10,144.34 14,961.44 -444.46 1,873.54 3,185.21 -159.41 1,157.57 -465.64 -793.13

-9,146.17 13,702.66

15,645.52 24,791.69 11,089.03

8,820.51 8,077.19

18,830.72 15,645.52 24,791.69 11,089.03 8,820.51

SBI financial status for last five years: Annual results
Mar ' 09 Sales Operating profit Mar ' 08 Mar ' 07 0.90 0.35 Mar ' 06 0.44 -0.06 Mar ' 05 0.66 -0.03

25

00 -245.35 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 26 .58 Balance sheet Mar ' 08 Sources of funds Owner's fund Equity share capital Share application money Preference share capital Reserves & surplus Loan funds Secured loans Unsecured loans Total Uses of funds Fixed assets Gross block Less : revaluation reserve Less : accumulated depreciation Net block Capital work-in-progress Investments Net current assets Current assets.64 -250.00 -291.10 0.98 296.00 0.15 263.56 15.56 -276.00 10.77 -231.09 -276.00 -265.35 0.10 -272.72 0.40 150.40 150.66 32.47 -295.00 0.00 -309.38 275.Interest Gross profit EPS (Rs) 24.30 -21.21 150.48 0.10 0.57 0.48 2.04 -294.24 -12.32 -271.32 23.66 15.29 -4.35 -13.36 -18.22 150.48 0.24 0.57 0.24 0.52 -251.17 21.62 -230.67 -24.00 -286.56 16.12 -271.64 24.66 -230. loans & advances Less : current liabilities & provisions Total net current assets Miscellaneous expenses not written Total Notes: Book value of unquoted investments Market value of quoted investments Contingent liabilities Number of equity sharesoutstanding 0.22 150.48 0.64 15.27 -294.72 0.19 21.42 21.79 -3.44 306.86 1.32 15.00 10.13 21.14 -250.30 293.00 11.79 -276.63 -16.35 15.17 -14.59 1.30 -20.

02 -20.16 12.41 0.(Lacs) Profit loss account Mar ' 08 Income: Operating income Expenses Material consumed Manufacturing expenses Personnel expenses Selling expenses Adminstrative expenses Expenses capitalised Cost of sales Operating profit Other recurring income Adjusted PBDIT Financial expenses Depreciation Other write offs Adjusted PBT Tax charges Adjusted PAT Non recurring items Other non cash adjustments Reported net profit Earnigs before appropriation Equity dividend Preference dividend Dividend tax Retained earnings 0.13 -4.55 21.31 -268.11 1.24 -18.27 0.29 0.12 0.53 3.26 0.44 0.56 -20.08 0.95 9.30 28.10 0.90 0.67 Mar ' 06 -20.20 0.68 -0.17 -20.66 1.81 4.03 12.35 -8.32 0.09 0.30 0.44 0.24 Mar ' 07 -4.65 -25.98 -2.67 -294.30 -2.29 0.72 0.36 0.08 -294.99 -289.32 -312.80 0.01 0.03 0.90 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04 Cash flow Mar ' 08 Profit before tax -18.42 0.29 -248.03 0.01 -8.36 -18.44 0.01 0.76 21.01 -21.39 12.98 -31.79 0.14 0.20 -2.02 0.48 0.11 -248.40 0.66 10.11 21.01 -21.56 0.27 -20.58 2.11 21.40 -289.51 0.08 0.25 -312.02 -31.42 -268.06 Mar ' 04 -25.98 Mar ' 05 -21.25 -18.45 13.29 27 .

46 -6.Net cashflow-operating activity Net cash used in investing activity Netcash used in fin.51 16. SBI want the future mergers to be as smooth as the merger.06 2. or two at a time or in a phased manner.Post-merger.000 million to fund its business expansion plans for this current fiscal. the size of SBI’s balance sheet will cr-oss Rs 12.50 -13.08 0.01 0. Singapore. PNB currently has 71 CBS branches in Kerala and has registered good growth from this region. The State Bank of India (SBI) has formulated a “home-grown strategy” to merge its six associated banks with it within this fiscal.02 0.85 -0. The Canada office is likely to open very soon. 21.65 5. 28 .9 Section FUTURE PLANS: PNB future plans: PNB has initiated various steps in a bid to expand its operations in the state of Kerala. activity Net inc/dec in cash and equivlnt Cash and equivalnt begin of year Cash and equivalnt end of year -4.The Bank has started to leverage our vast SHG network for various services beyond credit delivery.19 29.91 17. These include opening new branches and increasing the number of its core banking solutions branches.000 crore and its profitablity will increased.42 88.51 -7. SBI future plans: SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March 2008.42 10. PNB in looking at increasing its international presence and in line with this.89 16. the company is planning to set up offices in UK.09 10.16 11. Hong Kong and Canada.64 17.16 0.65 10.06 10.85 30. while the other locations are likely to commence operations by end of this fiscal year.46 -131.27 5.00.89 -4. SBI drawn up a home-grown strategy to carry out the merger programme and we may take up such mergers one by one. PNB unvieled its plans to raise additional capital of Rs.

. The paper is based on the case study of LIC Housing Finance Ltd. The National Housing Bank (NHB) was set up in 1988 as an apex institution for housing finance and a wholly-owned subsidiary of Reserve Bank of India (RBI). (2) changes in the risk profile of borrowers. Moreover. government and society at large. Here we assess three possible explanations for the observed increase in 2005 over 2004: (1) changes in lender business practices.. Specifically. and the yield curve. the tax rebates on housing loans have been introduced. The public release of the 20042005 Home Mortgage Disclosure Act data raised a number of questions given the increase in the number and percentage of higher-priced home mortgage loans and continued differentials across demographic groups. economy. 3) In May 18. Housing. which analyzes region-wise disbursements of individual house loans. 2007 Michael LaCour-Little had studied about the Economic Factors Affecting Home Mortgage Disclosure Act Reporting. Three possible reasons for the extension of this selective credit subsidy to community banks and thrifts are examined. The data reject the hypothesis that access to increased funds will increase the amount of small-business loans made by community banks. they estimate two empirical models of small-business lending by community banks. Results suggest that after controlling for the mix of loan types.e. always remains on the top priority of any person. They empirically investigate whether funding constraints impact the smallbusiness lending decision by rural community banks.are Targeted Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the lending authority of the Federal Home Loan Banks to include advances secured by small enterprise loans of community financial institutions. majority of the population lives in slums and shabby shelters in rural areas. 2) In December 2006 Fulbag Singh and Reema Sharma had studied about the housing Finance in India. credit risk factors. including the need to: subsidize community depository institutions. there was no statistically significant 29 . as one of the three basic needs of life. which was introduced in 1988. From the last decade. stabilize the Federal Home Loan Banks. and address a market failure in rural markets for small enterprise loans. Craig had studied about the Federal Home Loan Bank Lending to Community Banks. The first attempt in this regard was the National Housing Policy (NHP). the Government of India has been continuously trying to strengthen the housing sector by introducing various housing loan schemes for rural and urban population. for the salaried section. their portfolio amounts and the defaults for the last ten years. Thomson and Ben R.CHAPTER 3 REVIEW OF LITERATURE: 1) In august 2001 James B. The main objective of the bank is to promote and establish the housing financial institutions in the country as well as to provide refinance facilities to housing finance corporations and scheduled commercial banks. and (3) changes in the yield curve environment. In India. i. A relevant chart has also been prepared to highlight the results. from 1995-96 to 2004-05 by working out relevant ratios in terms of percentages and the compound annual growth rates.

Therefore.S. Such policy initiatives may for a time distort the relevancy of delinquency and foreclosure statistics. They studied about the prospects of the U. a relatively new method of loan forgiveness can temporarily alter the perception of credit health in the housing sector. which can lead to lower profits when interest rates rise. it may be possible for lenders to further ease credit standards and more fully exploit less penetrated markets. housing/mortgage sector over the next several years. a decline in real estate prices and increased foreclosure expenses. we believe there are risks that can materially distort the growth prospects of the sector. Recently targeted populations that have historically been denied homeownership opportunities have offered the mortgage industry novel hurdles to overcome. we predict that 2006 results will continue to show an increase in the percentage of loans that are higher priced when final numbers are released in September 2007. 4) In may 1991 Stephen F. it is likely that the home purchase boom of the past decade will continue unabated. thus. Whereas banks assets consist of short-term loans. the asset structure of S&Ls is quite different. in the absence of adequate hedging measures. They include a reduction in the demand for homeownership. However. given a model of the factors affecting results for 2004-2005. we believe there are elements in place for the housing sector to continue to experience growth well above GDP. However. such as home ownership mortgages. consumer and the reduction of home equity available in the home. S&Ls are more vulnerable to interest rate risk. If there is an economic disruption that causes a marked rise in unemployment. Despite the increasingly more difficult economic environment. Industry participants in combination with eased regulatory standards and the support of the GSEs (Government Sponsored Enterprises) have overcome many of them. 5) In June 29. These impacts would be exacerbated by the increasing debt burden of the U. though indirect. the negative impact on the housing market could be quite large. With a somewhat similar liability structure to that of banks (mainly short-term deposits). Proposed solutions are discussed in the context of the industry as it currently stands. Importantly. Finally. credit quality 30 .S. These impacts come in several forms. holders of mortgage assets are currently recasting or modifying troubled loans. Specifically.increase in reportable volume for loans originated directly by lenders during 2005. 2001 Joshua Rosner had studied about the Housing in the New Millennium: A Home Without Equity is Just a Rental with Debt. wholesale originations did significantly increase. Based on our analysis. a protracted housing slowdown could eventually cause modifications to become uneconomic and. Although we have yet to see any materially negative consequences of the relaxation of credit standards. S&L assets consist largely of long-term loans. In an effort to keep homeowners in the home and reduce foreclosure expenses. it appears that a large portion of the housing sector's growth in the 1990's came from the easing of the credit underwriting process. we believe the risk of credit relaxation and leverage can't be ignored. Borde had studied about the “Is the Savings and Loan Industry Facing Extinction?” This article tells about the Saving and loan crisis. Such easing includes: * The drastic reduction of minimum down payment levels from 20% to 0% * A focused effort to target the "low income" borrower * The reduction in private mortgage insurance requirements on high loan to value mortgages * The increasing use of software to streamline the origination process and modify/recast delinquent loans in order to keep them classified as "current" * Changes in the appraisal process which has led to widespread overappraisal/overvaluation problems If these trends remain in place.

this essay starts the process of analyzing mortgage delinquency management tools in the proposed fashion. We use a simultaneous equation Tobit estimation method. however. and thirdparty interventions such as delinquency housing counseling. leveraged. and predictable strategies for home exit as well as for home retention. Wealth effects on private mortgage debt. Although more empirical research is needed. They studied that Public investment in and promotion of homeownership and the home mortgage market often relies on three justifications to supplement shelter goals: to build household wealth and economic self-sufficiency. Legal scholarship should no longer discuss mortgage enforcement primarily in terms of foreclosure law and instead should include other debtor-creditor laws such as bankruptcy. We estimate the wealth effect on private mortgage debt as well as housing consumption by applying a model where mortgage debt demand is derived from house purchase decisions and is determined jointly with housing consumption. and housing consumption are not elastic. maintained. The most visible triggers of the recent surge in subprime delinquency have produced calls for emergency foreclosure avoidance interventions (as well as front-end regulatory fixes). likelihood of borrowing. and sometimes undermine them. positive social psychological states. Jacoby had studied about the Home Ownership Risk Beyond a Subprime Crisis: The Role of Delinquency Management. Avery and Allen N. Berger had studied about the Loan commitments and bank risk exposure. a system of delinquency management that honors these objectives should strive to provide fair. industry loss mitigation efforts. 7) In 1999 Yoko Moriizumi had studied about the Current Wealth. Furtherance of housing and household policy objectives hinges in part on the conditions under which homeownership is obtained. However. but my proposed analysis is based on whether the system honors and furthers the goals of wealth building. Given that high leverage or trigger events such as job loss and medical problems play significant roles in mortgage delinquency independent of loan terms. moral hazard and adverse selection problems 31 . humane. The virtuous circle of increasing homeownership due to greater leverage has the potential to become a vicious cycle of lower home prices due to an accelerating rate of foreclosures. They studied about the Loan commitments increase a bank's risk by obligating it to issue future loans under terms that it might otherwise refuse. to generate positive social-psychological states. Therefore. and . One function of this brief essay is to identify an existing rough framework for managing delinquency.statistics would likely become relevant once again. transparent. Homeownership and mortgage obligations do not inherently further these objectives. Japanese households accumulate wealth for downpayments at a high rate. 6) In dec 2002 Melissa B. I contend that a system of mortgage delinquency management should be an enduring component of housing policy.in some situations . 8) Robert B. Housing and private mortgage markets fluctuate very closely with the number of participants in the mortgage market.exited. it is tempting to focus on its impact on mortgage credit cost and access or on the absolute number of homes temporarily saved. current wealth plays an important role in home acquisition as public loans whose direct mortgage lending is a strong support for home purchasers. On the other hand. Whatever their merit. better origination practices cannot eliminate the need for delinquency management. a change in housing consumption affects the likelihood of borrowing elastically much more than the private mortgage amount of borrowers. Housing Purchase and Private Housing Loan Demand in Japan. Therefore. and to develop stable neighborhoods and communities. and community development. In terms of analyzing this framework. Because those ends are not inexorably linked to ownership generally or owning a particular home. the number of housing starts is linked strongly to the private mortgage market.

economy has experienced substantial fluctuations in real and nominal interest rates since the 1970s. We develop a combined model of debtors' decisions to file for bankruptcy and to default on their mortgages and show that the theory predicts positive relationships between both the homestead and personal property exemption levels and the probability of borrowers being denied mortgage (secured) and home improvement loans. Applicants for mortgages are 2 percentage points more likely to be turned down for mortgages and 5 percentage points more likely to be turned down for home improvement loans if they live in states with unlimited rather than low homestead exemptions. suggesting that commitments generate little risk or that this risk is offset by the selection of safer borrowers. Almost all firms convert unused credit line portions into spot loans and take out new lines. White and Emily Y. households disinvest in government securities and invest in real assets. This paper investigates empirically the relationship between home mortgage loans and volatility in mortgage rates for the period 1971:02 through 2003:03.potentially may result in these contracts being rationed or sorted. we find a positive relationship between mortgage rate volatility and home mortgage loans. 2008 David P. They studied about the the impact of increased use of home equity lines and decreased 32 .Souphala Chomsisengphet and John C. Most loans are in the form of credit lines. 12) In October 14. Firms experiencing more uncertainty in their funding needs commit to smaller credit lines. which yield a positive relationship between mortgage rate volatility and home mortgage loans. Hillebrand had studied about the Interest Rate Volatility and Home Mortgage Loans . In times of high interest volatility. We avoid this problem by using a unique proprietary data set from a large financial institution of loan commitments made to 712 privately-held firms. They studied that. 9) Sumit Agarwal. They studied that This paper investigates the relationship between bankruptcy exemptions and the availability of credit for mortgage and home improvement loans. 10) Faik Koray and Eric T. commitment loans could be safer or riskier on average than other loans. Firms with higher growth commit to larger lines of credit and have a higher rate of line utilization. in which lines give firms the speed and flexibility to pursue investment opportunities. Depending on the relative risks of the borrowers who do and do not receive commitments. We test these predictions empirically and find strong and statistically significant support when evidence from crossstate variation in bankruptcy exemption levels is used. Driscoll had studied about the Loan commitments and private firms. Our findings are consistent with their predictions. which have a wide menu of financing options. Firms facing higher rates and fees have smaller credit lines. Further investigation indicates that this is due to volatility in the bond market.S. These relationships also hold when we introduce state fixed effects into the model. 11) In nov 2000 Michelle J. they studied that The U. We test Martin and Santomero's (1997) model. Contrary to common wisdom. Empirical studies of line demand have been complicated by their use of data on publicly traded firms. Bernstein had studied about the Home Equity Loans and Private Mortgage Insurance: Recent Trends & Potential Implications. the empirical results indicate that commitment loans tend to have slightly better than average performance. Lin had studied about the Bankruptcy and the Market for Mortgage and Home Improvement Loans.

8% in survey year 2001 to 21. This paper documents the increase in residential mortgage distress during the Depression. I identify the factors associated with conventional conforming. owner-occupied dwellings in the United States.and moderateincome (LMI) households in home purchase mortgage choice. Many states imposed moratoria on both farm and nonfarm residential mortgage foreclosures. and liquid assets) for multiple-lien versus single-lien households.5% in survey year 2007. Results also indicate that targeted conventional programs effectively compete with government-insured products in the LMI segment. home mortgages were delinquent and. including pricing. The Great Depression experience suggests how foreclosures might be reduced during the present crisis.S. Multiple-mortgage financing packages as a percent of newly originated mortgages (mortgages originated within the previous five years) went from 14. Sharp declines in household income and real estate values resulted in soaring mortgage delinquency rates. as of January 1. and about 20 percent of those with an outstanding mortgage. consumer credit. 33 . They studied about the The Great Depression was the worst macroeconomic collapse in U. 13) In aug 2007 Michael LaCour-Little had studied about the The Home Purchase Mortgage Preferences of Low. This article employs recent mortgage origination data to focus on the revealed preferences of low. yet variation persists across income groups. Between 1933 and 1936. Housing policy in the United States has long supported homeownership. they appear to have also reduced the supply of loans and made credit more expensive for subsequent borrowers.S. history. Data from the SCF was used to compare five financial characteristics (credit card debt. The federal government took a number of steps to relieve residential mortgage distress and to promote the recovery and growth of the national mortgage market. fully one-half of U. FHA. installment loans. home-owners equity. The reduced use of PMI and the increased use of home equity loans increased mortgage holder risk in several different ways and was a contributing factor to the 2008 mortgage and financial crisis.1 billion. amortizing mortgages. nonprime and specially targeted programs. The comparisons suggest single-lien households tend to have slightly stronger financial variables than multiple-lien households. on average. According to one estimate. Further comparisons reveal a large decrease in the proportion of mortgages with PMI with the largest decreases in PMI coverage occurring among newly originated multiple-lien packages.private mortgage insurance (PMI) on mortgage markets. the HOLC acquired and refinanced one million delinquent loans totaling $3. This change in lending and borrowing behavior is not a subprime market problem. The Home Owners Loan Corporation (HOLC) was created in 1933 to purchase and refinance delinquent home loans as long-term. with some variation evident when loans are originated through brokers. 1934. The data confirms that in the years leading up to the mortgage crisis home buyers and lenders have aggressively used piggyback loans to avoid taking out PMI on first mortgages. 14) In 24 oct 2008 David C. The HOLC refinanced loans on some 10 percent of all nonfarm. Empirical results show that individual credit characteristics and financial factors. The data does not support the view that homeowners with multiple liens are less risky and should therefore be allowed to avoid PMI. Wheelock had studied about the Government Response to Home Mortgage Distress: Lessons from the Great.and Moderate-Income Households. and discusses actions taken by state governments and the federal government to reduce mortgage foreclosures and restore the functioning of the mortgage market. Although moratoria reduced farm foreclosure rates in the short run. some 1000 home loans were foreclosed every business day. The multiple-mortgage percentage for seasoned mortgages (mortgages originated more than five years prior to the origination date) also increased by a modest amount. generally drive product choice.

S. 19) In july 2005 Gwilym B. the less is the tax revenue raised by the limitation and smaller is its 34 . home "bias" appears to be material for pricing. The greater the shift. Countries that limit deductibility create a debt tax penalty that presumably leads households to shift from debt toward equity financing.000 households with aggregate panel data on mortgage loans and down payment ratios. The results have important implications for the debate on the relationship between saving and growth. and Fairlie (2005) decomposition techniques. This is the case for both prime and subprime originations. merging data on more than 400.. Following the Oaxaca (1973). They explore the determinants of the international pattern of home ownership using the Luxembourg Income Study (LIS). The period 2004-2005 showed a significant increase in Home Mortgage Disclosure Act (HMDA) rate spread reporting. especially at the young end." This may explain why pricing discrepancies are not competed away.J. We offer evidence that interest rate spreads on syndicated loans to corporate borrowers are economically significantly smaller in Europe than in the U. but the fundamental causes of the discrepancies remain a puzzle. loan and lender characteristics associated with equilibrium mechanisms suggested in the literature do not appear to explain the phenomenon. 18) In aug 2004 Mark Carey and Greg Nini had studied about the Is the Corporate Loan Market Globally Integrated? A Pricing Puzzle. Thus. The main question addressed is how much households borrow when refinancing their current mortgage debt in a cash-out transaction. 16) In 10 dec 2007 Irina Paley and Chau Do had studied about the Explaining the Growth of Higher-Priced Loans in HMDA: A Decomposition Approach. Hendershott had studied abot the The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest. this study identifies the fraction of the increase due to the flattening of the yield curve. we find strong evidence that the availability of mortgage finance . This allows us to construct a truly unique international dataset. 17) In feb 1 2009 Vincent W. other things equal. Differences in borrower. the findings reveal that during 20042006. Blinder (1973). Yao and Eric Rosenblatt and Michael LaCour-Little had studied about the unique paired loan dataset containing information on multiple conventional conforming mortgage loans of households to examine home equity extraction decisions over the period 2000-2006.Mortgage interest tax deductibility is needed to treat debt and equity financing of homes equally.as measured by outstanding mortgage loans and down payment ratios . the cross-section is repeated over time and includes several demographic variables carefully matched between the different surveys. Even after controlling for changes in borrower risk characteristics. We also provide estimates of the marginal effect of certain borrower characteristics.15) In march 2001 Tullio Jappelli and Maria Concetta Chiuri had studied about the Financial Market Imperfections and Home Ownership: A Comparative Study.affects the age-profile of home ownership. a collection of microeconomic data on fourteen OECD countries. important determinants of loan origination market outcomes remain to be identified. In most. Results contribute both to the literature on refinancing behavior and the role of house price appreciation in providing funds that may be used for consumer spending or other purposes. country effects. and corporate financing costs differ in Europe and the U. Pryce and Patric H. the flattening of the yield curve explains a significant amount of the increase in rate spread reportable loans. cohort effects and calendar time effects. After controlling for demographic characteristics.S. Borrowers overwhelmingly issue in their natural home market and bank portfolios display significant home "bias.

our analysis suggests that little of the aggregate differences in APRs paid by minority and non-minority borrowers are appropriately attributed to differential treatment. costing and market factors that appropriately explain mortgage pricing differentials.negative impact on housing demand. We provide a unique empirical assessment of this issue by using aggregated proprietary data provided to us by lenders and an endogenous switching regression model to estimate the probability of taking out a subprime mortgage. We find that up to 90 percent of the African American APR gap. and 85 percent of the Hispanic APR gap. likelihood of delinquency is greater for borrowers with low credit history scores and those with high ratios of housing expense to income. Also. The estimation is based on 86. 35 . We examine long-term delinquency in relation to neighborhood housing market conditions. Wachter and Paul S. Calemhad studied about the Community Reinvestment and Credit Risk: Evidence from an Affordable Home Loan Program. and when the property is unusually expensive for the neighborhood where it is located. is attributable to observable differences in underwriting. 20) In 1 nov 2007 Marsha Courchane studied about The Pricing of Home Mortgage Loans to Minority Borrowers: How Much of the APR Differential. borrower credit history scores. Measuring the financing response to a legislative change is complicated by the fact that lenders restrict mortgage debt to the value of the house (or slightly less) being financed.000 newly originated UK loans from the late 1990s. Taking this restriction into account reduces the estimated financing response by 20 percent (a 32 percent decline in debt vs a 40 percent decline). We find that likelihood of delinquency declines with the level of neighborhood housing market activity. and other factors. The public releases of the 2004 and 2005 HMDA data have engendered a lively debate over the pricing of mortgage credit and its implications regarding the treatment of minority mortgage borrowers. 21) In 1991 Susan M. Although any potential discrimination is problematic and should be addressed. and annual percentage rate ("APR") conditional on getting either a subprime or prime mortgage.This study examines the performance of home purchase loans originated by a major depository institution in Philadelphia under a flexible lending program between 1988 and 1994.

None of our Respondent belonged to the category of others.50 1) What is your occupation? Business man Student Government Employee Other House wife 15 0 22 0 9 25 20 15 10 5 0 Series1 Series2 Series3 STUDENT BUSINESS MAN GOVERNMENT EMPLOYEE Interpretation:o o o o o o o Total Number of Respondents was 46. 22 of the Respondents were into government employees 15 of our Respondents were Businessman. 9 of our Respondents were Housewives. 4 respondents did not answer.CHAPTER 4 INTERPRETATION: SBI: NO. HOUSE WIFE OTHER 36 . 0 of our Respondents was Students.

3) How do you come to know about the home loan schemes of that bank? News paper Television 18 14 37 . 12 persons are associated from more than 5 years.2) From how many years you are associated with this bank? Less than 1 year 1-5 years More than 5 10 24 12 30 25 20 15 10 5 0 Less than year 1-5 year more then 5 Series1 Series2 Interpretation:o o o o o Total Number of Respondents was 46 10 persons are associated less than 1 year 24 persons are associated from 1-5 years.

Internet other resources 10 4 20 18 16 14 12 10 8 6 4 2 0 News paper Television Internet Other resources Series1 Series2 Interpretation:o o o o o Total Number of Respondents was 46 18 persons came to know from newspaper 14 persons came to know from television 10 persons came to know from internet 4 persons came to know from other resources 4) Are you aware of these type of home loans? Home purchase loan Home construction loan Home improvement loan Home equity loan Land purchase loan 9 18 6 4 9 38 .

9 peoples know home purchase loan. Many of peoples know home construction loan. 5) Are you aware all terms and conditions of home loans? Yes No 40 6 39 . 6 peoples knowhome improvement loans.20 18 16 14 12 10 8 6 4 2 0 Series1 Interpretation:o o o o o Total Number of Respondents was 46 Only 4 persons know home equity loan.

6 persons had not know properly about all terms and conditions. 6) Are you satisfy with the interest rate charges by your bank? Strongly agree Agree Disagree strongly disagree 12 30 4 0 40 . Many of persons know all terms and conditions of home loan i. 40.e.45 40 35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 46.

16 14 12 10 8 6 4 2 0 Strongly agree Agree Disagree strongly disagree Series1 Interpretation:o o o o o Total Number of Respondents was 46 12 among all consumers are strongly agreed by interest rate of the bank. 30 among all consumers are agreed by interest rate of the bank 4 among all consumers are disagreed by interest rate of the bank 0 among all consumers are strongly disagreed by interest rate of the bank 7) Your bank offer which type of services? Mobile banking Net banking Forex banking 24 15 7 41 .

15 said that bank offer net banking services. Only 7 persons said that bank offer forex banking services. 24 persons said that bank offer mobile banking services.30 25 20 15 10 5 0 Mobile banking Net banking Forex banking Series1 Interpretation:o o o o Total Number of Respondents was 46. 8) Do you agree that your bank loan processing is fast? Strongly agree Agree Disagree strongly disagree 8 26 9 3 42 .

3 persons strongly disagree that bank processing is fast.30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1 Interpretation:o o o o o Total Number of Respondents was 46. 9 persons disagree that bank processing is fast. 8 persons strongly agree that bank home loan processing is fast. 9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank? Strongly agree Agree Disagree strongly disagree 12 30 4 0 43 . 26 persons agree that bank home loan processing is fast.

35 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1 Interpretation:o o Total Number of Respondents was 46 12 among all consumers are strongly agreed by after sale services of the bank. 30 among all consumers are agreed by after sale services of the bank 4 among all consumers are disagreed by after sale services of the bank 0 among all consumers are strongly disagreed by after sale services of the bank o o o 10) Does the cost of home loan is appropriate. according to your demand? Yes No 33 13 44 .

35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o Total Number of Respondents was 46. 33 persons said that home loan is appropriate according to their demand. o 11) Are you satisfy with the employees behaviour of the bank? Strongly agree Agree Disagree strongly disagree 19 23 4 0 45 . 13 persons said that home loan is not appropriate according to their demand.

25 20 15 Series1 10 5 0 Strongly agree Agree Disagree strongly disagree Interpretation:o o o o o o Total Number of Respondents was 46. 19 persons very satisfied with the employee behaviour of the bank. 4 persons disagree with the employee behaviour of the bank. No one is disagree with the employee behaviour of the bank. 23 persons satisfied with the employee behaviour of the bank. 12) Does the bank give any discount upon loan services? Yes No 40 6 46 .

13) Are you satisfy by the time taken in sanctioning the loan? Yes No 34 12 47 . 40 persons said that bank give discount upon loan services.45 40 35 30 25 20 15 10 5 0 Yes No Series 1 Interpretation:o o o Total Number of Respondents was 46. Only 6 persons said that bank does not give any discount upon loan services.

40 35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 46. 34 persons are satisfied by the time taken 12 persons are not satisfied by the time taken 14) Have you face any difficulty during taking the loan? Yes No 39 7 48 .

39 persons face difficulty during taking the loan. 15) Which grade you want to give of home loan schemes of the bank? Excellent Good Average below average 24 18 4 0 49 . Only 7 persons does not face any difficulty during taking the loan.45 40 35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 46.

PNB: NO. 18 persons gove good grade to the bank.30 25 20 15 10 5 0 Excellent Good Average below average Series1 Interpretation:o o o o o Total Number of Respondents was 46. 24 persons give excellent grade of the bank. No none give below average grade to the bank.50 1) What is your occupation? Business man Student Government Employee Other House wife 17 0 23 0 7 50 . Only 4 persons give average grade to the bank.

0 of our Respondents was Students. 7 of our Respondents were Housewives. None of our Respondent belonged to the category of others. 23 of the Respondents were into government employees 17 of our Respondents were Businessman.25 20 15 10 5 0 Series1 Interpretation:o o o o o o o Total Number of Respondents was 47. 2) From how many years you are associated with this bank? 3) Less than 1 year 1-5 years More than 5 17 19 11 51 . 3 respondents did not answer.

11 persons are associated from more than 5 years.20 18 16 14 12 10 8 6 4 2 0 Less than 1 1-5 years year More than 5 Series1 Interpretation:o o o o Total Number of Respondents was 47 17 persons are associated less than 1 year 19 persons are associated from 1-5 years. 3) How do you come to know about the home loan schemes of that bank? News paper Television Internet other resources 12 22 9 4 52 .

4) Are you aware of these type of home loans? Home purchase loan Home construction loan Home improvement loan Home equity loan Land purchase loan 9 19 9 2 8 53 .25 20 15 Series1 10 5 0 News paper Television Internet other resources Interpretation:o o o o o Total Number of Respondents was 47 12 persons came to know from newspaper 22 persons came to know from television 9 persons came to know from internet. 4 persons came to know from other resources.

9 peoples know home purchase loan. Only 2 persons know home equity loan. 5)Are you aware all terms and conditions of home loans? Yes No 34 13 54 .20 18 16 14 12 10 8 6 4 2 0 Series1 Interpretation:o o o o o Total Number of Respondents was 47. 9 peoples knowhome improvement loans. Many of peoples know home construction loan.

13 persons had not know properly about all terms and conditions.e. 34.40 35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 47. Many of persons know all terms and conditions of home loan i. 6)Are you satisfy with the interest rate charges by your bank? Strongly agree Agree Disagree strongly disagree 11 34 2 0 55 .

11 among all consumers are strongly agreed by interest rate of the bank. 34 among all consumers are agreed by interest rate of the bank 2 among all consumers are disagreed by interest rate of the bank 0 among all consumers are strongly disagreed by interest rate of the bank 7) Your bank offer which type of services? Mobile banking Net banking Forex banking 26 13 8 56 .40 35 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1 Interpretation:o o o o o Total Number of Respondents was 47.

8)Do you agree that your bank loan processing is fast? Strongly agree Agree Disagree strongly disagree 4 21 13 9 57 .30 25 20 15 10 5 0 Mobile banking Net banking Forex banking Series1 Interpretation:o o o o Total Number of Respondents was 47. 13 said that bank offer net banking services. 26 persons said that bank offer mobile banking services. Only 8 persons said that bank offer forex banking services.

25 20 15 Series1 10 5 0 Strongly agree Agree Disagree strongly disagree Interpretation:o o o o o Total Number of Respondents was 47. 21 persons agree that bank home loan processing is fast. 9 persons strongly disagree that bank processing is fast. 4 persons strongly agree that bank home loan processing is fast. 13 persons disagree that bank processing is fast. 9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank? Strongly agree Agree Disagree strongly disagree 14 29 4 0 58 .

29 among all consumers are agreed by after sale services of the bank 4 among all consumers are disagreed by after sale services of the bank 0 among all consumers are strongly disagreed by after sale services of the bank o o o 10) Does the cost of home loan is appropriate.35 30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1 Interpretation:o o Total Number of Respondents was 47. 14 among all consumers are strongly agreed by after sale services of the bank. according to your demand? Yes No 29 18 59 .

18 persons said that home loan is not appropriate according to their demand.35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o Total Number of Respondents was 47. 29 persons said that home loan is appropriate according to their demand. o 11)Are you satisfy with the employees behaviour of the bank? Strongly agree Agree Disagree strongly disagree 16 25 6 0 60 .

16 persons very satisfied with the employee behaviour of the bank. No one is disagree with the employee behaviour of the bank. 12)Does the bank give any discount upon loan services? Yes No 35 12 61 . 6 persons disagree with the employee behaviour of the bank. 25 persons satisfied with the employee behaviour of the bank.30 25 20 15 10 5 0 Strongly agree Agree Disagree strongly disagree Series1 Interpretation:o o o o o Total Number of Respondents was 47.

13)Are you satisfy by the time taken in sanctioning the loan? Yes No 30 17 62 . 35 persons said that bank give discount upon loan services.40 35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 47. Only 12 persons said that bank does not give any discount upon loan services.

30 persons are satisfied by the time taken 17 persons are not satisfied by the time taken 14)Have you face any difficulty during taking the loan? Yes No 43 4 63 .35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 47.

43 persons face difficulty during taking the loan. 15)Which grade you want to give of home loan schemes of the bank? Excellent Good Average below average 18 20 8 1 25 20 15 Series1 10 5 0 Excellent Good Average below average 64 .50 45 40 35 30 25 20 15 10 5 0 Yes No Series1 Interpretation:o o o Total Number of Respondents was 47. Only 4 persons does not face any difficulty during taking the loan.

1 person give below average grade to the bank. 65 . 20 persons gove good grade to the bank.Interpretation:o o o o o Total Number of Respondents was 47. 18 persons give excellent grade of the bank. Only 8 persons give average grade to the bank.

Peoples related with SBI is more satisfy with the employee behaviour as compare to PNB. 2.2 Section LIMITATIONS Although best of the efforts were made to conduct a prefect survey but still it faces certain limitation.The survey was conducted only on 100 respondents. No.CHAPTER 5 5.People are more satisfied by SBI for time taken for sanctioning the loan. Both PNB and SBI mostly offer mobile banking services. After home loan services of PNB is good as compare to SBI. which could hamper the final results to a certain extent. 66 . SBI peoples much know about home loans then PNB. Processing of SBI is fast then PNB. From all this I conclude that SBI bank provide good home loan services as compare to PNB and many peoples are very satisfied from SBI. 3.Some of the respondents did not answer all the questions. Peoples are relating with PNB more satisfy with the interest rate as compare to SBI. 1.The study confines itself to the respondents of “NAWANSHAHAR” region only. of respondents of SBI were 46 and 47 of SBI Bank.1 Section CONCLUSION: All the people are availing loan facility from both the banks. 5. Hence findings would not be relevant to other cities. Following were certain limitation of this project.

Melissa B.. ICFAI Journal of Financial Economics.com/abstract=151018 • Rosner.Is the Savings and Loan Industry Facing Extinction?The Secured Lender. Available at SSRN: http://ssrn.com/abstract=1162456 • Jacoby. and Thomson.Housing in the New Millennium: A Home Without Equity is Just a Rental with Debt.com/abstract=282410 or DOI: 10. No. 2008. Vol. SSRN: http://ssrn. 63-74. (dec 1999) Housing Purchase and Private Housing Loan Demand in Japan.com/abstract=1074442 • Moriizumi.Available at SSRN: http://ssrn.Vol. Vol. 01-12.com/abstract=959359 • LaCour-Little.2139/ssrn.Economic Factors Affecting Home Mortgage Disclosure Act.com/abstract=992815 • Borde. 4. Reema. 2001). Joshua (June 29. May/June 1991 . 4.(December 2006) Housing Finance in India: A Case Study of LIC Housing Finance Limited. pp. Available at SSRN: http://ssrn. Journal of Real Estate Finance and 67 . Yoko. Stephen F. 2007) Michael..282410 • Singh.( dec 2006) Home Ownership Risk Beyond a Subprime Crisis: The Role of Delinquency Management. Fulbag and Sharma.47.Federal (August 2001). December 2006. SSRN:http://ssrn. Fordham Law Review.CHAPTER 6 REFERENCES: • Craig. 1074442. 76. Home Loan Bank Lending to Community Banks: Are Targeted Subsidies Necessary? FRB of Cleveland Working Paper No.Current Wealth. Ben R. (May 18. UNC Legal Studies Research Paper No. Available at SSRN: http://ssrn. James B.

and Koray.Federal Reserve Bank of St.The Sensitivity of Homeowner Leverage to the Deductibility of Home Mortgage Interest.Explaining the Growth of Higher-Priced Loans in HMDA: A Decomposition Approach. 2009). 3.com/abstract=1007862 or DOI: 10. 21.. (November 2000).com/abstract=237815 1. Faik. Rosenblatt.2007. (March 2001) Financial Market Imperfections and Home Ownership: A Comparative Study. Vincent W.NBER Working Paper No. Michael. 2008-038A.com/abstract=264399 Do. Vol. Greg and Carey. Available at SSRN: http://ssrn.com/abstract=585742 Hendershott.Home Equity Extraction by Homeowners: 2000-2006. and Pryce. CEPR Discussion Paper No..repec. W11489. 4. Emily Y. Michael. David C(October 24. Chau and Paley. Available at SSRN: http://ssrn. 29. No. (August 2004) Is the Corporate Loan Market Globally Integrated? A Pricing Puzzle. and White. Real Estate Economics. Michigan Law and Economics Research Paper No.1540-6229.Home Equity Loans and Private Mortgage Insurance: Recent Trends & Potential Implications.Economics.com/abstract=1030058 LaCour-Little. Forthcoming. Irina.1111/j. Available at SSRN: http://ssrn.html • • • • • • • • • • Hillebrand. pp. Available at SSRN: http://ssrn. Available at SSRN: http://ssrn. Journal of Real Estate Research.2139/ssrn.. Available at SSRN: http://ssrn.org/p/fip/fedcwp/9015.repec. No.. Applied Economics. 813.Interest Rate Volatility and Home Mortgage Loans.org/p/fip/fedgfe/2004-27. Tullio. Available at • http://ideas. (July 2005). Available at SSRN: http://ssrn. Eric T. Eric and Yao. Available at SSRN: http://ssrn. Michelle J.x Wheelock. Louis Working Paper No.com/abstract=1289440 Chiuri.com/abstract=1277353 LaCour-Little.com/abstract=1336049 Nini. 2008). Mark. Gwilym B. Fall 2007. Patric H. Vol.The Home Purchase Mortgage Preferences of Lowand Moderate-Income Households. Issue SSRN: http://ssrn. Maria Concetta and Jappelli. (October 14. FRB International Finance Discussion Paper No.(February 1. 265-290. Vol.com/abstract=252699 or DOI: 10. Journal of Real Estate Research.00190. 2717. 00-013.com/abstract=762768 68 .html • http://ideas.Bankruptcy and the Market for Mortgage and Home Improvement Loans. Available at SSRN: http://ssrn. 2009.com/abstract=923358 Lin. 2007.Government Response to Home Mortgage Distress: Lessons from the Great Depression.J. David P. Available at SSRN: http://ssrn.252699 Bernstein. 35. 2008) .

(Nov 1.Community Reinvestment and Credit Risk: Evidence from an Affordable Home Loan Program. 2007). Marsha. Susan M.• • Courchane.com/abstract=145360 69 . 1999). and Wachter.com/abstract=1374872 Calem. Vol. Real Estate Economics. The Pricing of Home Mortgage Loans to Minority Borrowers: How Much of the APR Differential Can We Explain? Available at SSRN: http://ssrn. 27. (November 1. Available at SSRN: http://ssrn. Paul S.

CHAPTER 7 QUESTIONNAIRE: Name Qualification Age 18-25  25-35  35-40  Abov e Gender 16) What is your occupation? Business man  House wife Other   Government employee  Student  17) From how many years you are associated with this bank? 1-5  Less than 1 year  More than 5 year  3) How do you come to know about the home loan schemes of this bank? News paper  Internet  Television  Other resources  4) Are you aware of these type of home loans? Home purchase laon  Home improvement loan  Home equity loan  Home construction loan  Home extention loan  Land purchase loan  5) Are you aware all terms and conditions of home loans? Yes  No  6) Are you satisfy with the interest rate charges by your bank? Strongly agree  Agree  70 .

Strongly disagree  Disagree  7) Your bank offer which type of services ? Mobile banking  Forex banking  8) Do you agree that your bank loan processing is fast? Strongly agree  Strongly disagree  Agree  Disagree  Net banking  9) Do you satisfy with the after home loan services provided by your bank are best as compare to other bank? Strongly agree  Strongly disagree  Agree  Disagree  10) Does the cost of home loan is appropriate. according to your demand? Yes  No  11) Are you satisfy with the employees behaviour of the bank? Strongly agree  Strongly disagree  Agree  Disagree  12) Does the bank give any discount upon loan services? Yes  No  13) Are you satisfy by the time taken in sanctioning the loan? Yes  No  14) Have you face any difficulty during taking the loan? Yes  If yes then specify 15) Which grade you want to give of home loan schemes of your bank? Excellent  Good  No  71 .

Average  Below average  16) Any suggestions that you want to give 72 .

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