PROJECT REPORT ON

“HDFC BANK (TWO WHEELERS LOAN)”

SUBMITTED TO
KURUKSHETRA UNIVERSITY, KURUKSHETRA

IN PARTIAL FULFILLMENT OF DEGREE OF BACHELOR OF INFORMATION AND MANAGEMENT
SESSION 2010-2011
SUBMITTED TO: BY: SUBMITTED

Miss. Arushi Bhandari Tembhekar Lect. in Commerce Department

Smita B.I.M III Roll No 5063 University Roll No.

GANDHI MEMORIAL NATIONAL COLLEGE AMBALA CANTT

ACKNOWLEDGEMENT
My experience at HDFC was like a ride to another world. We were overwhelmed with the support and information provided to us by HDFC. To start with, I would like to thank Mr. ________________________, Branch Manager, HDFC for his able and inspiring guidance throughout the course of this report has helped me to bring this work to its present form. I owe a great deal of gratitude and sincere thanks to Mr. ________________ for helping us in every possible way and providing me crystal and critical approach to take right decisions at each phase of execution of project. Further, I would like to thank all the staff members of HDFC, who provided me cooperation in collecting the data and requested the concerned authorities to extend their help for the completion of the project. The project was also enriched by their valuable suggestions.

DECLARATION
I, Smita Tembhekar hereby declare that the project work entitled “HDFC BANK (TWO WHEELERS LOAN)” is my original work submitted in partial fulfillment of Bachelor in Information and Management from Kurukshetra University, Kurukshetra and not submitted to any other institute or university for the award of any other degree.

PREFACE
“PRACTICAL TRAINING IS FAR BETTER THAN ROOM TEACHING” Practical training gives a feel of the actual difficulties faced during the work. As part of our summer training, we got an opportunity to work with HDFC Ltd. Two wheeler loan an economic growth to the social life of the countrymen. For millions of India’s working families, may owning a home have a dream to buy their own vehicle. Our nation’s greatest opportunity now is the chance to build a better life for our people. Recognizing this, the vehicle sector has now been regarded as a potent engine of economic growth. The government had outlined a substantive and detailed plan, seen first in the policy of vehicle loan, to reach this goal. Many incentives announced in the Union Budget every year have helped to improve the affordability enormously over the past couple of years. All this has led to an enormous increase in the demand for Vehicle finance and thus, in the banks/ institutions providing this finance. The present scenario has led to the steady evolution of especially two wheeler finance as a vital sector.

No 1.CONTENTS S. Chapter-5  Findings  Conclusion 6. Chapter-3  Research Methodology o Objectives of the Study o Limitations 4. Chapter-2  HDFC-A Profile 3. Chapter-6  Questionnaire  Bibliography . Chapter-4  Data Analysis and Interpretation 5. Chapter-1  Introduction to HDFC Bank o Highlights o Awards & Achievements 2.

BUSINESS FOCUS HDFC Bank's mission is to be a World-Class Indian Bank. The bank is committed to maintain the highest level of ethical standards. as part of the RBI's liberalization of the Indian Banking Industry in 1994. consistent with the bank's risk appetite. Customer Focus. The bank was incorporated in August 1994 in the name of 'HDFC Bank Limited'.INTRODUCTION ABOUT HDFC BANK. LTD. HDFC Bank's business philosophy is based on four core values: Operational Excellence. Multi-branch access is also provided to . TECHNOLOGY HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. The Bank's aim is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services in the segments that the bank operates in and to achieve healthy growth in profitability. The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in-principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Product Leadership and People. India. with its registered office in Mumbai. professional integrity and regulatory compliance. HDFC Bank commenced operations as a Scheduled Commercial Bank in January 1995. All the bank's branches have connectivity which enables the bank to offer speedy funds transfer facilities to its customers.

2. 3. expertise and technology to create a competitive advantage and build market share.01 per share to Rs. scaleable and webenabled.00 per share (proposed) * Branch network up from 171 to 231 outlets * ATM network up from 479 to 732 * Phone Banking coverage in 80 cities * Point-Of-Sale (POS) Terminals at merchant outlets up from 6480 to 21804 * Geographic reach expanded from 77 cities to 123 cities 13. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in webenabling its core businesses.75 . The Bank has made substantial efforts and investments in acquiring the best technology available internationally to build the infrastructure for a world-class bank. the Bank has succeeded in leveraging its market position. 11. while the Retail Banking business by Finware. the Corporate Banking business is supported by Flexcube. both from i-flex Solutions Ltd.6 crores * Earnings per share increases from Rs.50 per share to Rs. Per share * Dividend per share increases from Rs.retail customers through the branch network and Automated Teller Machines (ATMs). 387. In terms of software.5% to Rs. HIGHLIGHTS * Profit after tax up by 30. In each of its businesses. The systems are open.

23.India 1999" and "Best Domestic Commercial Bank India 2000".India 2000" and "Best Domestic Bank . leading financial magazine Forbes Global named us in its list of "The 300 Best Small Companies" in the world and as one of the "20 for 2004" best small companies in the world.424 crores * Assigned highest rating 'CRISIL GVC Level 1' on corporate governance and value creation by the CREDIT RATING INFORMATION SERVICES OF INDIA LIMITED (CRISIL) AWARDS AND ACHIEVEMENTS Asia Money: Among top 25 best managed companies in Asia-pacific & Best Commercial Bank in India 2003 HDFC Bank began operations in 1995 with a simple mission: to be a "World-class Indian Bank". Aditya Puri * Business Standard: Finance professional of the year 2004 to the Managing Director. Mr. Mr.* Balance Sheet size up from Rs. 30. Aditya Puri .India 2001" * Hong-kong based Finance Asia magazine : "Best Domestic Commercial Bank . There have been some other proud moments. "Best Domestic Commercial Bank . "Best Bank . * Business Week International: Star of Asia Award to the Managing Director. * London based Euro money: "Best Bank .India 2001" * In the year 2003-04.787 crores to Rs. * The Economic Times Award: Corporate Excellence for Emerging Company of the Year 2003-04 and as Business India's Best Bank for the year 2004.India 2000".

Insurance & Real Estate category 'We realized that only a single-minded focus on product quality and service excellence would help us get there. We are confident. that with your feedback and support. however. we will be able to maintain and improve our services." (CHAIRMAN) HDFC BANK . We are aware that all these awards are mere milestones in the continuing.* Asia Money: Among top 25 best managed companies in Asia-pacific & Best Commercial Bank in India 2004 * Asia Risk Magazine: India's No.1 bank in terms of risk policies * Business India: India's Best Bank in 2000 * Business Today: Best Private Sector Bank in India in 1999. Today. we are proud to say that we are well on our way towards that goal. Inc.. USA: Awarded the 21st Century Achievement Award in 2003 for Finance. * Computerworld. never-ending journey of providing excellent service to our customers. It is extremely gratifying that our efforts towards providing customer convenience have been recognized both nationally and internationally.

large shareholder base and unique consumer franchise. Its outstanding loan portfolio covers over a million dwelling units. with its registered office in Mumbai. With its experience in the financial markets. The Bank's aim is to build a sound customer franchise across distinct businesses so as to be the preferred provider of banking services in the niche segments that . BUSINESS MISSION HDFC Bank's mission is to be a World Class Indian Bank.HDFC BANK . HDFC has developed significant expertise in retail mortgage loans to different market segments and also has a large corporate client base for its housing related credit facilities. HDFC was ideally positioned to promote a bank in the Indian environment. as part of the RBI's liberalizations of the Indian Banking Industry. India. a strong market reputation. The bank commenced operations as a Scheduled Commercial Bank in January 1995. The bank was incorporated in August 1994 in the name of HDFC Bank Limited. the Corporation has maintained a consistent and healthy growth in its operations to remain the clear market leader in mortgages and banking services in India.A PROFILE BACKGROUND The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. PROMOTER HDFC is India's premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977.

the bank operates in and to achieve healthy growth in profitability. The HDFC Group holds 24. CAPITAL STRUCTURE The authorized capital of HDFC Bank is Rs. Mumbai and the National Stock Exchange. professional integrity and regulatory compliance. formerly Chase Capital Partners) together hold about 11. The paid-up capital is Rs.450 crores.5% of the bank's equity while about 13. Roughly 18% of the equity is held by FIIs. The bank's American Depository Shares are listed on the New York Stock Exchange under the symbol "HDB".281. HDFC Bank's business philosophy is based on four core values: * Operational Excellence * Customer Focus * Product Leadership * People The Bank signed a strategic business collaboration agreement with Chase Manhattan Bank in February 1999.3% of the equity is held by the depository in respect of the bank's issue of American Depository Shares (ADS/ADR Issue). NRIs/OCBs while the balance is widely held by about 300.2 crores. The bank aims to ensure the highest level of ethical standards.000 shareholders. Mauritius (IFHL) (both funds advised by J P Morgan Partners.. consistent with the bank's risk appetite. The shares are listed on the The Stock Exchange. . Mauritius (IPEF) and Indocean Financial Holdings Ltd. The Indian Private Equity Fund.6% of the bank's equity.

HDFC Bank's ATM network can be accessed by all domestic and international Visa/MasterCard. skilled manpower and the opportunity to crosssell and leverage alternative delivery channels. As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India. shareholders of Times Bank received 1 share of HDFC Bank for every 5.. enhanced customer base. The Bank also has a network of almost over 775 networked ATMs across these cities. The Bank at present has an enviable network of over 241 branches spread over 129 cities all across the country. Moreover. Visa Electron/Maestro. It is the only bank in India which provides access to all the 3 major International Card Networks on its ATM network. Coleman & Co.TIMES BANK AMALGAMATION In a milestone transaction in the Indian banking industry.75 shares of Times Bank. Plus/Cirrus and American Express Credit/Charge cardholders./Times Group) was merged with HDFC Bank Ltd. DISTRIBUTION NETWORK HDFC Bank is headquartered in Mumbai. effective February 26. The amalgamation added significant value to HDFC Bank in terms of increased branch network. Times Bank Limited (another new private sector bank promoted by Bennett. BUSINESS PROFILE HDFC Bank caters to a wide range of banking services covering commercial and investment banking on the wholesale side and . expanded geographic reach. 2000. Customers in 39 locations are also serviced through Telephone Banking. All branches are linked on an online real-time basis.

etc. transactional services. companies from the domestic business houses and prime Public Sector companies. emerging mid-sized corporate. The debit card allows the user to directly debit his account at the point of purchase at a merchant establishment. in India and overseas. as well as alternative delivery channels like ATMs. trade services. The bank has three key business areas:- A) CORPORATE BANKING The Bank's target market is primarily large. . including working capital finance. Phone Banking. HDFC Bank was the first bank in India to launch an International Debit Card in association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as well.transactional / branch banking on the retail side. For these corporate. blue-chip manufacturing companies in the Indian corporate sector and to a small extent. cash management. giving the customer a one-stop window for all his banking requirements. the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals. The products are backed by world class service and delivered to the customers through various delivery channels including the branch network. The Bank launched its credit card in association with VISA in November 2001. NetBanking and Mobile Banking. B) RETAIL BANKING The objective of the Retail Bank is to provide a full range of financial products and banking services. Based on its superior product delivery / service levels and strong customer orientation. the Bank provides a wide range of banking services.

corporates need more sophisticated risk management information.C) TREASURY OPERATIONS Within this business. . These and fine pricing on various treasury products are provided through the bank's Treasury team. advice and product structures. the bank has three main product areas:* Foreign Exchange and Derivatives * Local Currency Money Market & Debt Securities * Equities With the liberalization of the financial markets in India.

The monthly disbursements have also been over Rs.Y. 2004-2005. "In the F. The objective is to facilitate accelerated growth & to make the bank's credit policies competitive market friendly & aggressive" HDFC BANK REPORTS .TWO WHEELER LOANS AN OVERVIEW "Two wheelers business has grown significantly in the last six months to a portfolio of over Rs. Based on market feedback competition practices & feedback from the sales & credit teams a few changes are proposed in the credit policy & processes. 20 crores. this business will be a high focus area in the retail assets stream & the bank will endeavor to achieve a leadership position in the market. 100 crores. The business has a vast geography of over 164 approved locations & 206 district locations.

Credit Policy Changes.To lower the LTV's for vehicles that have a low market share & poor resale price * PART C .POLICY OF HDFC BANK REGARDING TWO WHEELER LOANS * PART A .Changes in Fast Track Programs .Revisions in LTV's for No Income Documents Program. Objectives . . Objectives .To cater to the defence personnel for the vehicles sold through the CSD (Canteen Store Department) . Objectives .To offer the bank's programs to new segments .To bring the policy in line with competition on best selling models that have higher market shares & better resale prices.To bring the processes closer to the market which is rapidly moving towards on the spot approvals at the dealership counters * PART D .To improve TAT's * PART B .CSD Policy .To facilitate easier documentation . Objectives .

Surrogate income proof. The following are proposed to be taken as surrogate" income proof * May not be treated as ownership proof in certain cities For eg: electricity bill / water board bill does not conclusively prove residence ownership in Kolkata Hence such variations will be treated in region specific bulletins The surrogate income proof is not applicable in the following cases 1) NTS /HRP 2) Multiple vehicles applications 3) Where the employment stability is less than 6 months B) Bank Statements: Bank statements need not be taken as a mandatory requirement but may be asked for at a credit buyer's discretion for the following profiles : * HRP(High Risk Profiles) . Ltd. the most preferred Income Proof is a salary slip. Partnership firms & proprietary concerns that do not issue salary slips.PART A: CHANGES IN THE CREDIT POLICY DOCUMENTATION A) a) Proof of income: Amongst the salaried segment. Companies. Salary indicated in the certificate to be confirmed. However for employees of Pvt. salary certificates may be accepted to the confirmation of the following: i) ii) b) The name & designation of the authorized signatory. to further enable easier documentation & to cater to more segments of two wheeler customers.

2) Manufacturing of some of the above models have already been discontinued & the others are likely to be discontinued in the near future.at the residence of the applicant * For self employed .at the office/shop/factory of the applicant However. the credit buyer. .* Applications from negative areas * When LTV's > 85% * Cases with poor residence & employment stability * Cases with weak CPV * Except in Kolkata where the CPV is mandatory at only 1 point * For salaried . at his discretion may have 2 point CPV's conducted. Where credit discomfort is established. SOURCING OF THE UNDERNOTED VEHICLE MODELS IS DISCONTINUED The sourcing of loan applications for the undernoted 7 vehicle models to be discontinued: 1) BAJAJ ASPIRE 2) TVS SPECTRA 3) KINETIC CHALLENGER 4) LML PULSE 5) LML SUPREMO 6) LML ADRENO 7) LML ENERGY This is account of: 1) Poor demand HERO HONDA & consequently poor resale value of the above models.

LTV will be increased to 80% for the no income documents program for the above 9 vehicle models. TVS & LML) 1) HERO HONDA SPLENDOR 2) HERO HONDA PASSION 3) HERO HONDA AMBITION 4) HONDA ACTIVA 5) HONDA DIO 6) TVS SCOOTY 7) TVS VICTOR 8) BAJAJ PULSAR (150 & 180) 9) BAJAJ CALIBER (REGULAR. These models are manufactured by the 4 major two wheeler manufacturers (HERO HONDA. CROMA. these are: 1) DELHI 2) CHANDIGARH 3) LUDHIANA 4) JAIPUR 5) BANGALORE 6) HYDERABAD 7) VIZAG 8) CHENNAI 9) COIMBATORE 10) CALICUT 11) COCHIN 12) PUNE 13) MUMBAI 14) NAGPUR 15) AHMEDABAD .PART B: CHANGES IN LTV FOR NO INCOME DOCUMENTS PROGRAM A) UPWARD REVISIONS: Key players in the two wheeler finance industry offer 80% LTV for vehicle models with higher market shares & resale values. However this increase in LTV will be applicable in the top 23 locations only for a period of 90 days. BAJAJ. 115) In line with competitor trends.

16) BARODA 17) SURAT 18) KOLKATA 19) UDAIPUR 20) JALANDHAR 21) NASIK 22) GOA 23) RAJKOT The program will be reviewed after 90 days for any negative trend (credit / repayment). NO REVISIONS: There would be no change in the existing program (income documents waiver with 70% LTV) for the vehicle models mentioned below : 1) HERO HONDA CD 100 2) HERO HONDA STREET (REGULAR & SMART STD) 3) HERO HONDA CBZ (DRUM & DISK BRAKES) 4) HERO HONDA DAWN 5) KINETIC DX 6) KINETIC ZX 7) KINETIC MARVEL 8) BAJAJ CHETAK MT & 4S 19) BAJAJ M-80 10) BAJAJ CLASSIC SL 11) BAJAJ CLASSIC 12) BAJAJ SUPER 13) BAJAJ LEGEND 14) BAJAJ BRAVO 15) BAJAJ BOXER AT & CT 16) BAJAJ ELIMINATOR 17) TVS FIERO 18) TVS MAX 100 R 19) TVS MAX 100 DC 20) TVS SAMURAI 21) TVS XL SUPER (ONLY SOUTH) 22) LML SCOOTERS (ONLY NORTH) .

125 6) KINETIC BOSS 7) KINETIC AQUILA (50% LTV) 8) BAJAJ SAFFIRE 9) BAJAJ SUNNY 10) BAJAJ SPIRIT 11) LML FREEDOM 12) LML SELECT (NORTH .70% LTV) 15) LML PRITHVI (NORTH -70% ) 16) ENFIELD ( ALL MODELS) .C) DOWNWARD REVISIONS: For the following two wheeler vehicle models.70% LTV) 14) LML NV (NORTH . the LTV for the no documents program to be reduced to 60% from the existing 70% 1) KINETIC ZOOM 2) KINETIC NOVA 3) KINETIC STYLE 4) KINETIC ZING 5) KINETIC GF .70% LTV) 13) LML SENSATION (NORTH .

identity proof. For these vehicle models 30 minutes fast track approval will also be applicable. identity proof. .CROMA & 115) This is applicable only to the top 23 locations .PART C: 30 MINUTES FAST TRACK APPROVALS SPECIFIC VEHICLE MODELS A) NO INCOME DOCUMENTS PROGRAM : The 30 minutes fast track approval is applicable Income documents are waived when the LTV Existing program: Proposed program: only for cases with 70% LTV is 80% for specific vehicle models at the top 18 locations only. are couriered for credit decisions. B) VERIFIED INCOME PROGRAM: Existing program: For all cases where the LTV is greater than 70% income proof. etc. address proof. Proposed program: For loan applications of the vehicle models in which the LTV is less than or equal to 85% income proof. be communicated within 30 minutes on following: * HERO HONDA SPLENDOR * HERO HONDA PASSION * HERO HONDA AMBITION * HONDA ACTIVA * HONDA DIO * TVS SCOOTY * TVS VICTOR * BAJAJ PULSAR ( 150 & 180) * BAJAJ CALIBER (REGULAR . address proof. etc.

having template authority / credit executive/ ACM) * However sales managers who have been delegated L1 authority will have to refer cases with L1 deviations & without income proof where approval is required within 30 minutes to the exclusive credit person (credit buyer /AVM) in this program * The program is not applicable for NTS profiles & applications from predefined negative areas * The program is not applicable when there is credit discomfort (when the TVR is conducted) * In case of NTS profiles & when there is credit discomfort the case will have to be routed thro the normal CPV route * Applications from HRP may be considered in the revised program. . at the discretion of the credit buyer.C) OTHER REVISIONS IN THE EXISTING FAST TRACK PROGRAM: * Decisions can be taken on cases with deviations upto the authority of the local credit authority (off roll rep.

10% Employment .PART D: FINANCING OF TWO WHEELERS THROUGH CSD TO DEFENSE PERSONNEL A) DETAILS OF THE PROGRAM: 1) This program to be extended to only permanent defence personnel currently in service 2) Two wheeler loans to be extended on all approved two wheeler models 3) LTV to be restricted to 75% 4) The defence personnel must not be posted at a family station 5) A defence personnel is posted at a location for a fixed period only.21 to 58 years Minimum income . 3500 gross per month Instalment to net income ratio .Rs.2 years in the defence services . Hence the tenure of the loan must not exceed the balance period of the defence personnel at that location 6) This program will not be applicable to the following: i) jawan /sepoy /sentry /seaman ii) soldier /corporal iii) subedar /sergeant iv) surveyor v) ex-serviceman (the ex serviceman must meet all the eligibility criterias) B) 1) ELIGIBILITY NORMS: This program to be extended to only permanent defence personnel currently in service& does not apply to ex serviceman 2) 3) 4) Age .

positive CPV at the residence & the unit of the defence personnel C) 1) PRE-APPROVAL DOCUMENTS : Application form (permanent address & telephone no.5) 6) 7) Telephone . to be indicated on the application form along with the name & address of parents) 2) 3) 4) 5) Age & address proof (current address) as indicated in the two wheeler policy manual Income proof as indicated in the two wheeler policy manual Identity proof as indicated in the two wheeler policy manual 3 months bank pass book copy (of the salary a/c & PDC's to be issued from this salary a/c) 6) Eligibility certificate signed & sealed by the commanding officer of the unit confirming the date of joining & his duration of stay at the particular location 7) Proforma invoice D) 1) 2) 3) 4) PRE-DISBURSEMENT DOCUMENTS: loan agreement & RTO forms duly signed post dated cheques duly signed initial payment receipt VAF (vehicle availability form) endorsed by the dealer stating that the required vehicle is available .office or residence Banking .PDC's must be issued from the salary account & must be MICR & local clearing CPV .

HDFC BANK applicant. HDFC BANK to intimate approval to the applicant & the dealer 2) 3) The dealer to then receive the initial payment amount from the On completion of the pre-disbursement formalities. The applicant to complete pre-disbursal documentation to make out a disbursement cheque to the dealer (difference between the on road vehicle cost & the initial payment made by the clint to the dealer) 4) 5) The dealer to make full payment to CSD through the applicant The applicant to handover a DD for the full cost of the vehicle along with the vehicle availability duly endorsed by the dealer to CSD . further CSD disbursals to be discontinued at the location until the position is rectified. submission all pre-approval documents & on receipt of positive CPV report . F) 1) PROCESS FLOW : On meeting the eligibility norms .E) POST-DISBURSAL DOCUMENTS : 10 days from the disbursement date 1) Delivery challan signed by the customer to be obtained within 2) Insurance cover note with hypothecation favouring HDFC BANK to be obtained within 10 days from the disbursement date 3) Road tax receipt to be obtained within 10 days from the disbursement date 4) Original CSD invoice in favour of the customer to be obtained within 10 days from the disbursement date 5) RC book with hypothecation favouring HDFC BANK to be obtained within 45 days from the disbursement date The tracking of post disbursal documents to be done by operations department & if the post disbursals documents (except RC book) of 10 CSD cases are not received within the specified period.

. Form 21 & form 34 with HDFC BANK hypothecation. sale letter & insurance cover note mentioning hypothecation to HDFC BANK) 8) The dealer to submit the following to HDFC BANK : i) Copy of the delivery challan ii) Copy of the LSR iii) Invoice of CSD favouring the applicant iv) Copy of the sale letter v) copy of the insurance cover note mentioning hypothecation to HDFC BANK & vi) The RTO receipt showing the payment of hypothecation fees G) Risks: RISKS & MITIGANTS: 1) The invoice raised by the CSD will not have the bank's hypothecation 2) The RC therefore may not have.invoice of CSD favouring the customer. who will ensure the bank’s hypothecation.(an HDFC BANK /dealer 6) personnel to visit csd with the client for receipt . CSD invoice submission of the DD & VAF) The applicant to obtain the payment favouring the applicant & the Local Supply Requisition Order (LSR) from CSD & to submit the same at the dealership 7) The dealer to deliver the vehicle to the applicant after completing the registration formalities (with LSR . if bank's FORM 20 is not used MITIGANTS: The registration is done by the dealer. CSD business will only be done through authorized dealers of major manufactures who have signed the dealer agreement with the bank.

RECOMMENDATIONS AND APPROVAL REVISED NTS / HRP LIST A) NTS(Non Target List) List 1) POLITICIANS / EX-POLITICIAN 2) COLLECTION AGENCIES 3) TWO-WHEELER / AUTO BROKERS 4) PRIVATE FINANCERS 5) OWNERS OF BARS / SMALL HOTELS (& THERE EMPLOYEES) 6) ADVOCATES / LAWYERS 7) EMPLOYEES OF DISTRIBUTION CHANNELS (DSA /DEALERS /CPA /HBL /COLLECTION AGENCIES)* 8) SWEEPERS 9) DAILY WAGE EARNERS 10) POLICE 11) OCTROI & RTO AGENTS B) HRP(High Risk Profile) List 1) OWNERS OF PRIVATE SECURITY SERVICE AGENCIES (& THEIR EMPLOYEES) 2) SMALL TRAVEL AGENTS /SMALL TOUR OPERATORS /SMALL TOURIST TAXI OPERATORS (& THERE EMPLOYEES) 3) CABLE OPERATORS 4) STAND ALONE STD /PCO /XEROX BOOTH OWNERS) 5) CIVIL & LABOUR CONTRACTORS 6) JOURNALISTS 7) SMALL NON BRANDED COURIER COMPANIES (& THERE EMPLOYEES) .

politician. . when the LTV is restricted to 50% & where there is ownership proof as well .the same will be L2 deviation * All HRP cases can be approved as L1 deviations with the mitigants. However if a family member of the applicant who resides with the applicant is a police.8) YOUNG INSURANCE AGENTS (LESS THAN 30 YEARS) 9) DRIVERS & CONDUCTORS 10) COMMISSION AGENTS 11) CLASS IV GOVERNMENT EMPLOYEES 12) PSU BANK EMPLOYEES (BELOW MANAGER GRADE) Loans to employees of distribution channels to be sanctioned subject to : * Co applicant / guarantor to be taken & * Recommendations from the * Liabilities RSM (if the distribution channel is engaged in liabilities products sourcing /collection) * Retail assets RSM (if the distribution channel is engaged in retail asset products sourcing /collection) * An applicant may not himself be a NTS / HRP. or an advocate then the applicant will also be construed to belong to NTS/HRP. * All NTS cases can approved with L3 deviation .

p. Bangalore. 7000 TO RS. if you reside in Mumbai.000/.RS. You are between 21 and 60 years of * Age. * You have been working for at least 2 years. Pune and Rs. 42. Delhi. 1 LAKH ( MAXIMUM 85% OF PRODUCT VALUE) * TENURE .FEATURES OF TWO WHEELER LOANS GIVEN BY HDFC BANK * LOAN AMOUNT . Calcutta.6 TO 36 MONTHS * ELIGIBILITY . * You have a phone at your residence or office.a. . 54.per annum for all other cities.000/. * Your minimum gross income is equivalent to Rs. Chennai.ARE AS FOLLOWS : ELIGIBILITY You need to fulfil the following requirements : * You are a salaried or self-employed individual.

 You can pre-pay the loan any time after six months of availing of the loan.  Flexible repayment options. computers and many more. washing machines.BENEFITS OF HDFC TWO WHEELER LOAN SERVICES:  Speedy Loan Approval. air-conditioners.  Repay through post-dated cheques with easy EMIs.  Large range of schemes/products/modules. microwave ovens.two-wheelers.  Lowest interest rates. refrigerators. ranging from 6 to 36 months available even at the point of purchase.  No guarantor required .  Wide variety of consumer products financed . audio systems. televisions.

. The information required for fulfilling the objective of the study was collected from various Primary and Secondary sources. SAMPLING The survey comprised of Selective Sampling and Convenience Sampling of Preferred Banks.RESEARCH METHODOLOGY Methodology is the method followed while conducting the study on a particular project. To know general perception about HDFC bank in comparison to To know how consumers rate services and facilities provided by the HDFC bank. To study about two wheeler loans provided by the HDFC bank other banks. 2. customers and general Public. Through this methodology a systematic study is conducted on the basis of which the basis of a report is produced. OBJECTIVES OF THE STUDY 1. 3. NATURE The methodology adopted to achieve the project objective involved exploratory research method.

SAMPLE DESIGN XXXXXXXXXXXXXXXXX .

growth and rationale.  To find out the level of consumers satisfaction or dissatisfaction with the bank.  To Study Why Private Banks are more successful than Public Banks. .  To study the most Popular Schemes of the Banks.  To evaluate the operational efficiency of HDFC bank in comparison of other banks.  To study Which Sector (Public or Private) is more Committed towards its services.OBJECTIVES OF THE STUDY  To review the whole system of HDFC bank in terms of origin.  To get the feedback from customers regarding the performance of private sector and public sector banks.  To explore various schemes offered by Public and Private Sector Banks.

As the data of the two wheeler loans was collected from different banks through personal visits . . of interest. There were some practical problems which came across and could not be properly dealt with. which prevailed in my project. The data was collected for a period of 4 weeks which may be slightly shorter for completely studying the different schemes of the two wheeler loans provided by different banks. Due to paucity of time.so delay in collection of data was inevitable. there are still some limitations. I believe that my findings are a reasonable representative of the attitude of the population. Even though all these factors must have some adverse impact on the validity of my study. the clients could not be contacted in entirety and the study was conducted on a sample basis and the choice of the sample was random from a small area.LIMITATIONS Despite of trying my level best.

23% of them are PNB customers. 14% deals with OBC and rest 20% deals with other banks. Which bank you are dealing with? % age of Respondents 25 21 20 23 22 20 15 14 % age of Respondents 10 5 0 % age of Respondents HDFC 21 PNB 23 BOP 22 OBC 14 Any other 20 Findings: Data collected form my survey reveals 21% of respondents are HDFC customers. 22% of them goes to BOP.DATA ANALYSIS AND INTERPRETATION Q1. .

. Which type of account you have with the bank ? Account Current Account Saving Account Fixed Deposits Any Other %age of Respondents %age of Respondents 30 40 20 10 Any Other 10% Fixed Deposits 20% Current Account 30% Saving Account 40% Findings : Graphical and tabular representation of my survey reveals maximum number of respondents are having saving account in there banks 40% of respondents having it.Q2. 20% of them have fixed deposits and 10% are having other accounts like demat account. 30% of respondents having current accounts in banks for their daily activities.

. How did you come to know about the bank ? Media Newspaper Friends Magazines Any Other %age of Respondents 40 25 20 15 Any Other 15 Magazines 20 %age of Respondents Friends 25 New spaper 40 0 10 20 30 40 50 Findings: Graphical and tabular representation of my survey shows 40% of respondents came to know about the bank form the newspaper. 20% of them came to know about it from the customers of bank and rest 15% have other sources. 25% of them came to know about it from their friends.Q3.

Q4(a) Have you got your two-wheeler vehicle financed from any bank? Response Yes No %age of Respondents 85 15 No 15% %age of Respondents Yes No Yes 85% Findings: The data in table above and graphical representation shows 85% of respondents have got there two-wheeler vehicle financed from bank and 15% of respondents had not financed there two-wheeler vehicle from bank .

55 38 HDFC Bank Of Punjab Oriental Bank Of Commerce Punjab National Bank Any other 0 0 2 5 %age of Respondents Findings: The data in table above and graphical representation shows 55% of respondents have got there two-wheeler vehicle financed from HDFC bank and 38% of respondents had got it financed from BOP and OBC had not financed a single two wheeler and only 2% of respondents had got there two wheeler financed by PNB and 2% of respondents had got there two wheeler financed by other banks .(b) which bank Banks HDFC Bank Of Punjab Oriental Bank Of Commerce Punjab National Bank Any other 60 50 40 30 20 10 %age of Respondents 55 38 00 02 05.

. Are you satisfied with the loan facility you are availing ? Response Yes No %age of Respondents 70 30 %age of Respondents No 30% Yes No Yes 70% Findings: In my survey I came to know 70% of my respondents are satisfied with the performance of their bank and 30% of them are not satisfied with their banks.Q5.

. Which sector do you think is more committed towards its services? Banking Sector Public sector Banks Private sector Banks %age of Respondents 35 65 70 60 50 40 30 20 10 0 35 65 Public sector Banks Private sector Banks %age of Respondents Findings: The table above on the bases of survey shows according to 65% of respondents private sector banks are more committed towards its services as compare to public sector banks 35% of respondents found public sector banks more committed.Q6.

Do you want to avail any other loan facility? Response Yes No Findings: %age of Respondents Yes 30% %age of Respondents 30 70 Yes No No 70% The table above on the bases of survey shows according to 70% of respondents does not want to avail any other loan facility and 35% of respondents want to avail any other loan facility.Q7. .

Q8. Are you facing any problem in availing the loan facility? Response Yes No %age of Respondents 25 75 %age of Respondents Yes 25% Yes No No 75% Findings: The table above on the bases of survey shows according to 25% of respondents are facing some kind of problem in availing the loan facility and 75% of respondents are not facing any kind of problem in availing the loan facility .

Q9. Which Bank do you think is the best bank in your view? . Your Bank provides the fastest and most Flexible service for loans. Q10. Level of Satisfaction Strongly Disagree Disagree Uncertain Agree Strongly Disagree %age of Respondents 05 12 20 45 18 50 45 40 35 30 25 20 15 10 5 0 5 12 20 45 Strongly Disagree Disagree Uncertain 18 Agree Strongly Disagree %age of Respondents Findings: The table above on the bases of survey shows that 5% of respondents are strongly dissatisfied by there banks whereas 12% of respondents are dissatisfied by there banks and 20% of respondents are uncertain and 45% of respondents are satisfied by there banks &18% strongly of respondents are very much satisfied by there banks.

Banks HDFC Bank Of Punjab Oriental Bank Of Commerce Punjab National Bank Any other %age of Respondents 25 27 18 20 10 30 25 25 27 20 20 15 10 10 5 0 %age of Respondents 18 HDFC Bank Of Punjab Oriental Bank Of Commerce Punjab National Bank Any other Findings: The table above on the bases of survey shows that 25% of respondents think HDFC is the best. How would you rank your bank services? . whereas 27% of respondents thinks BOP is the best whereas 18% of respondents think OBC is the best while 20% of respondents think PNB is the best and 10% of respondents votes for other bank Q11.

Ranking Best Good Fair Poor Very poor 35 30 30 25 20 15 10 5 0 Best Good Fair Poor 16 27 24 %age of Respondents 16 30 27 24 03 %age of Respondents 3 Very poor Findings: The table above on the bases of survey shows according to 16% of respondents feels that there bank provides the best services and 30% of respondents feels that there bank provides the good services and 27% of them feels that there bank provides fair services and 24% of respondents feel that the bank services are poor and 3% of respondents feels the services provided are very poor. .

SWOT ANALYSIS OF HDFC BANK STRENGTHS: * It has an extensive distribution network comprising of 253 branches all over India and one international office in Dubai. This provides a competitive edge over the competitors. securities and foreign exchange markets . the margins on the Bank's wholesale assets has drastically reduced * The branches are not proactively selling third party products to the customers OPPORTUNITIES: * Greater liberalization in foreign ownership via fdi in Indian Private sector banks * Healthier exposure norms * Infrastructural improvements and better systems for trading and settlement in the govt.2 million accounts * The bank has a near competitive edge in its area of operations * The bank boasts of a strong brand equity * ISO 9001 certification for its depository and custody operations and direct banking operations WEAKNESSES: * Due to continuous fall in the rate of interest . * The bank has a strong retail depositor base of 3.

Y. etc. 2001-02 : growth rate in the aggregate deposits .4% F. ICICI.THREATS: * The bank has started facing competition from players like Bank Of Punjab. * Declining trend in the aggregate deposits growth with the scheduled commercial banks as can derived from the following figures: F.Y.3% .18. 2002-03 : growth rate in the aggregate deposits . in the finance market.14. This could reduce the margins in future. SBI.

. and has better services and many other advantages. more profitable.FINDINGS OF COMPARATIVE STUDY OF PUBLIC & PRIVATE BANKS THE BEST BANK After comparative analysis of various schemes of different banks according to me criteria for selection of best operating bank is: * Cost of Transactions * Number of customers * Response time. more automated. This bank has many advantages over the public sectors banks. The Best Bank: HDFC According to the study of various schemes and working of different banks the best bank comes out to be "HDFC". HDFC has the largest clientele in the new private sectors banks. It is more efficient. * Automation * Paper work * Attitude of Employees * Market image * Processing time * Facilities * Profitability * Distinguished features * Coverage.

Private Banks have a better image in the market and thus have more customers. The facilities offered by private sectors are more advanced than public sector banks. whereas the Private Banks to urban areas. Public Sector Banks are counted safer and more secure in comparison to Private Sector Banks due to mentality of Indian people.CONCLUSIONS The performance of private sector banks is better then public sector banks. Coverage of Public Sector Banks is more both in rural and urban areas but of Private Banks is lesser in rural areas. . Private Sector banks will have to change consumer's mentality. Public Sector banks have several weaknesses which are to be removed or banks should be privatized. There workforce is not at all efficient besides they are not well aware of IT that is creeping into Banking sector with its speed at mount. People are shifting from pubic to private sector banks. Public Sector banks are more committed towards the rural areas. Processing charges of Private Banks are higher than other banks.

QUESTIONNAIRE Name:_______________________________________________ Age : _______________________________________________ Address: _____________________________________________ _____________________________________________ Telephone no. Which type of account do you have with the bank? Saving? Current? Fixed deposit? Anyother? 3.: ________________________________________ Occupation: __________________________________________ 1. In Which bank do you have an account? HDFC BOP PNB OBC ANY OTHER 2. How did you come to know about the bank ? NEWSPAPER ? MAGAZINES ? FRIENDS? ANY OTHER 4. Which additional facility are you looking for? 5. (a) Have you got your two-wheeler vehicle financed from any bank? Yes ? No? Any other? (b)If Yes Which: HDFC ? BOP? OBC? PNB? .

a) Are you facing any problem in availing the loan facility? Yes? b) if yes . Your Bank provides the fastest and most Flexible service for loans. ? Strongly Disagree ? Disagree ? Uncertain ? Agree ? Strongly Agree 11. How would you rank your bank services? ? Best ? Good ? Fair ? Poor ? Very poor . Do you want to avail any other loan facility? Yes? No? 9.what 10.6. Which sector do you think is more committed towards its services? ?Public sector Banks ?Private sector Banks 8. Which Bank do you think is the best bank in your view? ?HDFC ?PNB ? BOP ? OBC ?Any other No? 12. Are you satisfied with the loan facility you are availing ? Yes? No? 7.

Please give some references? 14.13. DATE SIGNATURE . Your suggestions.

com www.BIBLIOGRAPHY Books : Research Methodology Business Research and Methods Marketing Management -By Kothari. C.hdfcbank.R.com . -By Cooper. Donal R. Philip Magazine: Business Today Business World Annual Report of HDFC Bank Manuals Brochures Websites www.& Schindler -By Kotler.indiainfoline.