MBA Comparison of Retail Loan of J and K

PROJECT REPORT
ON
“COMPARISON OF RETAIL LOANS OF

J&K BANK WITH OTHER BANKS AND
DEPOSIT SCHEMES”
UNDERTAKEN AT
A dissertation submitted in partial fulfillment of the

requirement for the award of the
MASTER DEGREE IN BUSINESS ADMINISTRATION

For the Session 2012-14
UNIVERSITY OF JAMMU
By
MR. SHAGUN SHARMA
INSTITUTE OF MANAGEMENT SCIENCE

JAMMU
ACKNOWLEDGEMENT
I, Shagun Sharma, take this opportunity to extent my thanks to all those
people who helped me through the successful completion of this project
work.
It gives me a great pleasure to acknowledge my deep and sincere
gratitude to Mr. A. S. Sambyal, Executive Manager Personnel J&K
Bank Ltd.Zonal office (Central), Branches Department, Jammu for this
inspiration and constant encouragement.
I whole heartedly extend my sense of gratitude towards all the members
of J&K Bank whose help during the course of my project work and their
valuable suggestions has helped me a lot in successfully accomplishing
this project.
Finally, I would like to thanks my parents and all my friends doing their
project in various, organizations for their whole hearted cooperation,
without them this project would have not been possible.
SHAGUN SHARMA
PREFACE
Summer Training is necessary part of elementary theoretical study. It
enforces a student to be well conversant with practical aspect of
management profession.
It was allowed to carry out my Project at the Jammu and Kashmir Bank
Ltd. Zonal Office(central), Jammu as my summer training. I was given
task of study the retail loans of the J&K Bank with those of the
competitors. My aim was to provide essential information to the Bank.
This report would guide people working in the Retail banking field. I
have analyzed the retail loans with those of the competitors
I hope that the comparison of Retail Loans with the competitors will
help the bank to analysis its competitor’s performance.
SHAGUN SHARMA
CONTENTS
 Introduction about the Financial Sector
 Indian Banking introduction
 Banking Meaning
 History of JK Bank
 Introduction about Project
 A brief profile of the Competitors banks which include:
 HDFC Bank
 State bank of India
 Punjab national bank
 ICICI bank
 A brief profile on Personal Loans of :
 J&K Bank
 The Competitors banks
 A brief profile on Education Loans of :
 J&K Bank
 A brief profile on Housing Loans of :

 J&K Bank
 A brief profile on Car Loans of :
 J&K Bank
INTRODUCTION TO FINANCIAL SECTOR

The financial sector is in a process of rapid transformation.
Reforms are continuing as part of the overall structural reforms aimed at
improving the productivity and efficiency of the economy. The role of
an integrated financial infrastructure is to stimulate and sustain
economic growth
The US$ 28 billion Indian financial sector has grown at around 15
per cent and has displayed stability for the last several years, even when
other markets in the Asian region were facing a crisis. This stability was
ensured through the resilience that has been built into the system over
time. The financial sector has kept pace with the growing needs of
corporate and other borrowers. Banks, capital market participants and
insurers have developed a wide range of products and services to suit
varied customer requirements. The Reserve Bank of India (RBI) has
successfully introduced a regime where interest rates are more in line
with market forces
Financial institutions have combated the reduction in interest rates
and pressure on their margins by constantly innovating and targeting
attractive consumer segments. Banks and trade financiers have also
played an important role in promoting foreign trade of the country
BANKS
The Indian banking system has a large geographic and functional
coverage. Presently the total asset size of the Indian banking sector is
US$ 270 billion while the total deposits amount to US$ 220 billion with
a branch network exceeding 66,000 branches across the country.
Revenues of the banking sector have grown at 6 per cent CAGR over
the past few years to reach a size of US$ 15 billion. While commercial
banks cater to short and medium term financing requirements, national
level and state level financial institutions meet longer-term
requirements. This distinction is getting blurred with commercial banks
extending project finance. The total disbursements of the financial
institutions in 2001 were US$ 14 billion.
Banking today has transformed into a technology intensive and
customer friendly model with a focus on convenience. The sector is set
to witness the emergence of financial supermarkets in the form of
universal banks providing a suite of services from retail to corporate
banking and industrial lending to investment banking. While corporate
banking is clearly the largest segment, personal financial services is the
highest growth segment.
The recent favorable government policies for enhancing limits of
foreign investments to 49 per cent among other key initiatives have
encouraged such activity. Larger banks will be able to mobilize

sufficient capital to finance asset expansion and fund investments in
technology.
CAPITAL MARKET
The Indian capital markets have witnessed a transformation over
the last decade. India is now placed among the mature markets of the
world. Key progressive initiatives in recent years include:
• The depository and share dematerialization systems that
have enhanced the efficiency of the transaction cycle
• Replacing the flexible, but often exploited, forward trading
mechanism with rolling settlement, to bring about
transparency
• The InfoTech-driven National Stock Exchange (NSE) with
a national presence (for the benefit of investors across
locations) and other initiatives to enhance the quality of
financial disclosures.
• Corporatisation of stock exchanges.
• The Securities and Exchange Board of India (SEBI) has
effectively been functioning as an independent regulator
with statutory powers.

• Indian capital markets have rewarded Foreign Institutional
Investors (FIIs) with attractive valuations and increasing
returns.
• The Mumbai Stock Exchange continues to be the premier
exchange in the country with an increase in market
capitalization from US$ 40 billion in 1990-1991 to US$
203 billion in 1999-2000. The stock exchange has about
6,000 listed companies and an average daily volume of
about a billion dollars
• Many new instruments have been introduced in the
markets, including index futures, index options, derivatives
and options and futures in select stocks.
INDIAN BANKING
INTRODUCTION
The Indian banking can be broadly categorized into nationalized
(government owned), private banks and specialized banking
institutions. The Reserve Bank of India acts a centralized body
monitoring any discrepancies and shortcoming in the system. Since the
nationalization of banks in 1969, the public sector banks or the
nationalized banks have acquired a place of prominence and has since
then seen tremendous progress. The need to become highly customer
focused has forced the slow-moving public sector banks to adopt a fast
track approach. The unleashing of products and services through the
net has galvanized players at all levels of the banking and financial
institutions market grid to look anew at their existing portfolio
offering. Conservative banking practices allowed Indian banks to be
insulated partially from the Asian currency crisis. Indian banks are
now quoting al higher valuation when compared to banks in other
Asian countries (viz. Hong Kong, Singapore, Philippines etc.) that
have major problems linked to huge Non Performing Assets (NPAs)
and payment defaults. Co-operative banks are nimble footed in
approach and armed with efficient branch networks focus primarily on
the ‘high revenue’ niche retail segments.
The Indian banking has finally worked up to the competitive
dynamics of the ‘new’ Indian market and is addressing the relevant
issues to take on the multifarious challenges of globalization. Banks

that employ IT solutions are perceived to be ‘futuristic’ and proactive
players capable of meeting the multifarious requirements of the large
customers base. Private banks have been fast on the uptake and are
reorienting their strategies using the internet as a medium The Internet
has emerged as the new and challenging frontier of marketing with the
conventional physical world tenets being just as applicable like in any
other marketing medium.
The Indian banking has come from a long way from being a
sleepy business institution to a highly proactive and dynamic entity.
This transformation has been largely brought about by the large dose
of liberalization and economic reforms that allowed banks to explore
new business opportunities rather than generating revenues from
conventional streams (i.e. borrowing and lending). The banking in
India is highly fragmented with 30 banking units contributing to almost
50% of deposits and 60% of advances. Indian nationalized banks
(banks owned by the government) continue to be the major lenders in
the economy due to their sheer size and penetrative networks which
assures them high deposit mobilization. The Indian banking can be
broadly categorized into nationalized, private banks and specialized
banking institutions.
The Reserve Bank of India act as a centralized body monitoring
any discrepancies and shortcoming in the system. It is the foremost
monitoring body in the Indian financial sector. The nationalized banks
(i.e. government-owned banks) continue to dominate the Indian
banking arena. Industry estimates indicate that out of 274 commercial
banks operating in India, 223 banks are in the public sector and 51 are
in the private sector. The private sector bank grid also includes 24
foreign banks that have started their operations here. Under the ambit
of the nationalized banks come the specialized banking institutions.
These co-operatives, rural banks focus on areas of agriculture, rural
development etc., unlike commercial banks these co-operative banks
do not lend on the basis of a prime lending rate. They also have
various tax sops because of their holding pattern and lending structure
and hence have lower overheads. This enables them to give a
marginally higher percentage on savings deposits. Many of these
cooperative banks diversified into specialized areas (catering to the
vast retail audience) like car finance, housing loans, truck finance etc.
in order to keep pace with their public sector and private counterparts,
the co-operative banks too have invested heavily in information
technology to offer high-end computerized banking services to its
clients.
TYPES OF BANKS
a) State Bank of India and Associates
b) Nationalized Banks
c) Domestic Private Sector Banks
d) New Domestic Private Sector Banks
e) Foreign Banks
Complementing the roles of the nationalized and private banks
are the specialized financial institutions or Non Banking Financial
Institutions (NBFCs). With their focused portfolio of products and
services, these Non Banking Financial Institutions act as an important
catalyst in contributing to the overall growth of the financial services
sector. NBFCs offer loans for working capital requirements, facilitate
mergers and acquisitions, IPO finance, etc. apart from financial
consultancy services. Trends are now changing as banks (both public
and private) have now started focusing on NBFC domains like long
and medium-term finance, working cap requirements. IPO financing to
etc. to meet the multifarious needs of the business community.
NEW GENERATION BANKING
The liberalize policy of Government of India permitted entry to
private sector in the banking, the industry has witnessed the entry of
nine new generation private banks. The major differentiating

parameter that distinguishes these banks from all the other banks in the
Indian banking is the level of service that is offered to the customer.
Verify the focus has always been centered around the customer –
understanding his needs, preempting him and consequently delighting
him with various configuration of benefits and a wide portfolio of
products and services. These banks have generally been established by
promoters of repute or by ‘high value’ domestic financial institutions.
The popularity of these banks can be gauged by the fact that in a short
span of time, these banks have gained considerable customer
confidence and consequently have shown impressive growth rates.
Today, the private banks corner almost four per cent share of the total
share of deposits. Most of the banks in this category are concentrated
in the high-growth urban areas in metros (that account for
approximately 70% of the total banking business). With efficiency
being the major focus, these banks have leveraged on their strengths
and competencies viz. Management, operational efficiency and
flexibility, superior product positioning and higher employee
productivity skills.
The private banks with their focused business and service
portfolio have a reputation of being niche players in the industry. A
strategy that has allowed these banks to concentrate on few reliable
high net worth companies and individuals rather than cater to the mass
market. These well-chalked out integrates strategy plans have allowed
most of these banks to deliver superlative levels of personalized
services. With the Reserve Bank of India allowing these banks to
operate 70% of their businesses in urban areas, this statutory
requirement has translated into lower deposit mobilization costs and
higher margins relative to public sector banks.
BANKING
Banks are the institutions where those who have some savings can
keep their money in the form of deposits & those who need money
borrow money on payment of interest with certain conditions that
assure recovery of the borrowed money. The rate of interest charged by
the bank from its borrower is usually higher than what it pays to the
depositor. In addition to the safe money keeping of depositor and money
lending to the borrower a bank also helps people in many kinds of
money transactions. In brief the main functions of bank are:-
 Receiving money from the depositors
 Lending money on demand
 Transferring money from one place to another
 Receiving payment for public utility services such as
telephone bills electricity and water bills, house tax etc
 Renting safe deposits locker for safe custody of valuables
 Helping travelers and tourist by providing travelers cheques
and foreign currency Etc.
The various types of account provided by the bank are as follows:
 Saving account
 Current account
 Term or fixed deposits
 Recurring deposits
SAVING ACCOUNT
In this account any person can open an account in a bank even
with a small amount of 100 rupees only. After opening the account the
account holder can go on depositing the money into his/her account.
He/She can also withdraw money from his/her account whenever
required through a withdrawal form or Cheque.
CURRENT ACCOUNT
This account is usually maintained by businessman, companies,
govt. organization that have to do a no. of money transactions daily due
to the nature of their work. No interest is paid for the money kept in this
account.
TERM DEPOSIT
In this scheme money is deposited for a fixed period. Money can
be withdrawn after the expiry of the fixed period, which is specified at
the time of opening the account. The bank uses this money more freely
than money kept in saving bank account.
RECURRING DEPOSITS
In this account depositor chooses a specified amt. and deposit
that amt. every month for a fixed period chosen by him/her in the
beginning. The periods vary from six months to 10 years. The rate of
interest is same on these deposits as in case of term deposits
HISTORY OF J&K BANK

The J&K Bank Ltd. incorporated on October 1st, 1938
commenced business on July 4th, 1939. From a small beginning the
bank has grown to become a giant with a network of 600 branches
spread over the length and breadth of the country. A significant
contributing factor for this fast growth is the solid founding principles
which are dedicated to the cause of transforming the Bank not only as a
financial heart but also the social heart of the community.
The J & K Bank is the first state owned bank of the country and
53% of equity is held by the Govt. of J & K .The bank has a consistent
track record of growth and profitability . It has a unique distinction of
being banker to the J & K State Govt. and has has also been appointed
by RBI as its agency in J & K , responsible for carrying general banking
business of the Central Govt. and collection of Taxes pertaining to the
Central Board of Direct Taxes.
The landmark achievements in the diversification of the banks
including the sponsoring of two Regional Rural Banks viz., Kamraz
Rural Bank and Jammu Rural Bank; permission for dealing in foreign
Exchange, holding the Lead bank responsibilities in eight of the fourteen
districts in J & K, governorship of State Level Bankers Committee
(SLBC) and State Level Export Promotion Committee ( SLEPC ). The
bank is the only one non-nationalized sector, having been entrusted with
such assignments and has come up to the expectations of RBI and other
agencies, like CBDT.
The bank has been swift in responding to the need for technology
adaptation in meeting its commitment to the customers and offers the
best of services and a wide range of products. The bank is investing in a
big way in information technology; Installation of ATMs at Residency
Road , Srinagar and Gandhi Nagar ,Trikuta Nagar, Jammu Ahamadabad
and Mera Road Mumbai and at other important centres; introduction of
EFT and E-Mail services substantiate this fact. The number of
computerized branches of the bank has risen to 246 as on March 2001,
which accounts for 80 per cent of total bank business. The tele-banking
facilities are available at 23 branches with such services being extended
to 65 branches in the near future. The anywhere banking facility
available at 23 branches shall be raised to 65 soon. The Bank is in the
process of connecting its branches through VSAT and lease lines from
the existing 23 to 85. The number of ATMs which is most convenient
system of extending 24 hour banking facility is 23. ATMs at six
locations including B/O Ansal Plaza, Delhi, Corporate Headquarters,
Srinagar, B/O Trikuta Nagar, Jammu, B/O Government Medical
College, Srinagar, B/O SSI Lal Chowk, Srinagar, Kashmir, B/O SKIMS,
Srinagar and B/O Ahmedabad, are having IST Switch connectivity.

Once the Data centre is completed our bank shall be the first to
introduce the Internet Banking in the J&K State. A new concept of
customer facility Touch Screen kiosks shall be installed at 65 branches
of the bank.
J & K bank is one of the few banks in the country which has been
able to show exemplary performance in adjusting to the rigorous
prudential norms that came into force during 1992-93 and has been able
to achieve CAPITAL ADEQUACY RATIO of above 17.44 per cent a s
on 31st March, 2001, which is far ahead of RBI stipulation and is one of
the highest in the industry today.
HISTORICAL BACK GROUND
Entire banking in the state of Jammu and Kashmir was performed
by traditional lenders till 1920 -30 and that too at exorbitant interest
rates .At the same time some banks functioned at a very limited scale,
such as Punjab National Bank Limited ,Grindlay's Bank and Imperial
Bank of India .
The role of these banks was reduced to the acceptance of deposits
as they could not grant loans and advances to the people of the state
owing to the statutory limitations .Under this scenario banks could not
ameliorate the financial and social position of the people of the state .
To over come this critical situation the then Maharaja of the state
conceived an idea of setting up of a state bank in the state . After a
prolonged exercise and deliberations the assignment for establishment
of " The Jammu and Kashmir Bank Limited " was given to the late Sir
Sorabji N Pochkhanwala, the then Managing Director of the Central
Bank of India.
Mr. Pochkhawala formulated a scheme on 24-09-1930,
suggesting establishment of a semi state Bank with participation in
capital by state and the public under the control of state Government.
Thus the bank was formally incorporated on the 1 st of October, 1938 and
commenced business from 4th of July 1939 at its Registered Office
Residency Road Srinagar, Kashmir.
The Jammu & Kashmir Bank Limited has been the first of its
nature and composition as a State owned bank in the country .The state
Govt. besides contributing half of the issued capital also appointed it as
its bankers for general banking and treasury business .In its formative
years , the bank had to encounter several serious problems , particularly
around the time of independence, when out of its total of ten branches
two branches of Muzaffar-abad and Mirpur fell to the other side of the
line of control(now Pak Administered Kashmir) along with cash and
other assets ;in 1947. However the State Govt. came to its rescue with
the assistance of Rs.6.00 Lacs to meet the claims however the bank
stead fastly over came its difficulties and kept growing . Following the
extension of Central laws to the state of Jammu & Kashmir, the bank
was defined as a govt. company as per the provisions of Indian
companies act 1956 .The bank had its first full time chairman in 1971,
following social Central measures in banks .The year 1971 was a
turning point for the bank on conferment of scheduled bank status and
witnessed remarkable progress in all the vital fields of operations .The
bank was declared as "A" Class Bank by Reserve Bank of India in
1976 .In recognition of dominant role and exulted performance ,
Reserve bank of India appointed the bank as its agent for performing the
general banking business of the Central Govt. especially in maintaining
currency chests and collection of taxes.
TOPIC: - COMPARISON OF J&K BANK’S RETAIL
LOANS WITH OTHER BANKS.

Banking today has transformed into a technology intensive and
customer friendly model with a focus on convenience. The sector is set
to witness the emergence of financial supermarkets in the form of
universal banks providing a suite of services from retail to corporate
banking and industrial lending to investment banking. While corporate
banking is clearly the largest segment, personal financial services is the
highest growth segment.
The recent favorable government policies for enhancing limits of
foreign investments to 49 per cent among other key initiatives have
encouraged such activity. Larger banks will be able to mobilize
sufficient capital to finance asset expansion and fund investments in
technology.
Now- a days , the whole of the Indian banking Industry is passing
through the metamorphosis stage by converting itself from merely
banking to the retail banking. This is because of the happenings at the
macro level of the Indian economy. Since the Cash Reserve Ratio
(CRR) and the Statutory Liquidity ratio (SLR) is at the decrement level.
As a result of which the banks have turned themselves into the retail
banks.
Therefore, it becomes necessary to study the effects of this change
at the micro level. Since no organization works in isolation. Therefore,
the banks should analyze their performance in relation to those of the
competitors.
I, in the capacity of my summer trainee have tried to analyze the
scenario of retail banking for J&K bank with its competitors. The retail
Loans studied during my summer training include:
 Personal loan
 Home loan
 Car loan
 Educational loan
These loans have been compared with those of the competitors which
include:
 HDFC Bank
 State Bank of India
 Punjab National Bank
 ICICI Bank
THE PROFILES OF THESE BANKS
HDFC BANK
HDFC Bank was incorporated in August 1994 in the name of
'HDFC Bank Limited', with its registered office in Mumbai, India. The
Bank commenced operations as a Scheduled Commercial Bank in
January 1995.
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, as
part of the RBI's liberalization of the Indian Banking Industry in 1994.
Headquartered in Mumbai, HDFC Bank, has a network of over
531 branches spread over 228 cities across India. All branches are
linked on an online real-time basis. Customers in over 120 locations are
serviced through Telephone Banking. The Bank also has a network of
about over 1054 networked ATMs across these cities. HDFC Bank's
ATM network can be accessed by all domestic and international Visa /
MasterCard, Visa Electron / Maestro, Plus / Cirrus and American
Express Credit / Charge cardholders.

HDFC Bank has won many awards for its excellent service.
Major among them are "Best Bank in India" by Hong Kong-based
Finance Asia magazine in 2005 and "Company of the Year" Award for
Corporate Excellence 2004-05.
ICICI BANK
ICICI Bank is India's second-largest bank. The Bank has a
network of about 573 branches and extension counters and over 2,000
ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited,
an Indian financial institution, and was its wholly-owned subsidiary.
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The
objective was to create a development financial institution for providing
medium-term and long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified
financial services group offering a wide variety of products and services,
both directly and through a number of subsidiaries and affiliates like
ICICI Bank.
In 1999, ICICI become the first Indian company and the first bank
or financial institution from non-Japan Asia to be listed on the NYSE. In
2001, ICICI bank acquired Bank of Madura Limited.
ICICI Bank set up its international banking group in fiscal 2002
to cater to the cross border needs of clients and leverage on its domestic
banking strengths to offer products internationally. ICICI Bank currently
has subsidiaries in the United Kingdom, Canada and Russia, branches in
Singapore and Bahrain and representative offices in the United States,
China, United Arab Emirates, Bangladesh and South Africa.
Today, ICICI Bank offers a wide range of banking products and
financial services to corporate and retail customers through a variety of
delivery channels and through its specialised subsidiaries and affiliates
in the areas of investment banking, life and non-life insurance, venture
capital and asset management.
STATE BANK OF INDIA
State Bank of India (SBI) is India's largest commercial bank. 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.

The State Bank Group includes a network of eight banking
subsidiaries and several non-banking subsidiaries offering merchant
banking services, fund management, factoring services, primary
dealership in government securities, credit cards and insurance. \
The eight banking subsidiaries are:
1. State Bank of Bikaner and Jaipur (SBBJ)
2. State Bank of Hyderabad (SBH)
3. State Bank of India (SBI)
4. State Bank of Indore (SBIR)
5. State Bank of Mysore (SBM)
6. State Bank of Patiala (SBP)
7. State Bank of Saurashtra (SBS)
8. State Bank of Travancore (SBT)
The origins of State Bank of India date back to 1806 when the
Bank of Calcutta (later called the Bank of Bengal) was established. In
1921, 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. In 1955, 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.
Today, State Bank of India (SBI) has spread its arms around the
world and has a network of branches spanning all time zones. SBI's
International Banking Group delivers the full range of cross-border
finance solutions through its four wings - the Domestic division, the
Foreign Offices division, the Foreign Department and the International
Services division.
PUNJAB NATIONAL BANK
Punjab National Bank (PNB) was established in 1895 at Lahore.
PNB has the distinction of being the first Indian bank to have been
started solely with Indian capital. In 1969, Punjab National Bank was
nationalized along with 13 other banks
Punjab National Bank serves over 3.5 crore customers and has the
largest branch network in India - 4062 branches and 447 extension
counters spread all over the country. Punjab National Bank has achieved
many awards and distinctions. Major among them are:

 Ranked 21st amongst top 500 companies by the leading
financial daily, Economic Times.
 Ranked as 323rd biggest bank in the world by Bankers
Almanac (January 2006), London.
 Earned 9th place among India's Most Trusted top 50 service
brands in Economic Times- A.C Nielson Survey.
 Ranked 368 amongst the top 1000 banks in the world
according to "The Banker" London.
 Golden Peacock Award for Excellence in Corporate
Governance - 2005 by Institute of Directors.
 FICCI's Rural Development Award for Excellence in Rural
Development - 2005.
JK BANK PERSONAL LOAN
The personal loan scheme now renamed as “JK Bank SAHOLIAT/
SARAL Financial Scheme” as permanent employees of central/state
Govt., Public Sector undertakings, Autonomous Bodies, self employed
individual can take this loan
PURPOSE
To meet any kind of personal expenses, e.g., marriage, family functions,
medical, educational, travel expenses, etc.

Amount of loan: Rs.7 lakhs
Eligibility: employees of Govt. , Semi Govt. undertaking, autonomous
bodies Public Sector undertakings., self employed individual
Maximum ceiling: 9 months gross salary
Document required: important document to be furnished while
opening a personal loan account.
For existing bank customer:
a) Passport Size photograph ( salaried individual)
b) Latest salary slip and form 16 ( for self employed individual
and professionals)
c) IT returns for the last two financial years
d) Proof of professional qualification: copy of highest
professionals degree held
e) Proof of official address. This can include shop and
establishment certificate/lease deed/telephone bill
Margin : nil
Repayment : 36 equal monthly installments

HDFC BANK PERSONAL LOAN
HDFC Personal Loans have been designed by HDFC Bank to suit
personal requirements of individuals like marriage, holiday, education,
purchase of any expensive commodity or any such anticipated or
unanticipated monetary involvement.
HDFC Bank, India, announced the arrival of the new generation,
technology driven commercial banks in India. HDFC Bank in India was
set up in August 1994 with the approval of Reserve Bank of India. The
bank was promoted by Housing Development Finance Corporation

Limited, a premier housing finance company of India (set up in 1977).
HDFC Personal Loans provide the following benefits:
 Loans up to Rupees one million for any purpose.
 Flexible Repayment Options ranging from 12 to 48 months.
 Repayment through Easy Monthly Installments (EMIs).
 Low Rate of Interest
 Hassle free loans - No guarantor/security/collateral required
 Speedy loan approval
 Service at the customer's doorstep
Further, there are additional privileges for HDFC Bank account
holders like:
 Special rates of interest.
 For existing Auto Loan customers with a clear repayment of 12
months or more from even any of the approved financiers of
HDFC Bank, a hassle free personal loan without income
documentation can be obtained.
 For existing HDFC Bank Personal Loan customer with a clear
repayment of 12 months or more, personal loan can be enhanced.

ELIGIBILITY
a) Salaried Individuals
b) Self employed (Professionals)
c) Self Employed (Individuals)
d) Self Employed (Pvt Cos and Partnership Firms)
Each of the above groups of professionals encounters a specific
set of criteria for sanction of loan. They are also required to present a
specific set of document.
SALARIED INDIVIDUALS
Include Salaried Doctors, CAs, employees of select Public and
Private limited companies, Government Sector employees including
public sector undertakings and central, state and local bodies:
Eligibility criteria
 Minimum age of Applicant: 21 years
 Maximum age of Applicant at loan maturity: 60 years
 Minimum employment: Minimum 2 years in employment and
minimum 1 year in the current organization
 Minimum Net Monthly Income: Rs. 8,000
Documents required
 Proof of Identity (Passport Copy/ Voters ID card/ Driving
License)
 Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport
copy/Trade license /Est./Sales Tax certificate)
 Bank Statements (latest 3 months bank statement / 6 months bank
passbook)
 Latest salary slip or current dated salary certificate with latest
Form 16
Self employed (Professionals)
Include self - employed Doctors, Chartered Accountants,
Engineers, MBA Consultants, Architects, Company Secretaries.
Eligibility Criteria
 Years in business: 4 to 7 years depending on profession
 Minimum Annual Income Rs. 100000 p.a.
Documents required:
License).
 Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport
copy/Trade license /Est./Sales Tax certificate).
 Bank Statements(latest 6 months bank statement /passbook)
 Latest ITR along with computation of income, B/S & P&L a/c for
the last 2 yrs. certified by a CA
 Qualification proof of the highest professional degree
Self Employed (Individuals) include self-employed - Sole proprietors,
Partners & Directors in the Business of Manufacturing, Trading or
Services.
 Years in business: 5 yrs continuous business experience
 Minimum Annual Income: Rs. 1,00,000 p.a.
 Available in select cities
Documents required:
License)
 Proof of continuation (Trade license /Establishment /Sales Tax
certificate)
 Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of
Partnership Deed, Cert. Copy of MOA, AOA & Board
resolution.)
Self Employed (Pvt. Cos. and Partnership Firms) include Private
Companies and Partnership firms in the Business of Manufacturing,
Trading or Services.
 Years in business: Minimum of 3 years in current business and 5
years total business experience
 Business must be profit making for the last 2 years

 Minimum Annual Income: Rs 100000 p.a.
 Available in select cities
Documents required:
 Proof of continuation (Trade license /Establishment /Sales Tax
certificate)
 Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of
Partnership Deed, Certified true copy of Memorandum & Articles
of Association (certified by Director) & Board resolution
(Original)
HIGHLIGHTS
Salaried Self Employed

Loan Amount
Min. Rs. 25000 Min. Rs. 25000
Max. Rs. 1000000 Max. Rs. 1000000
Tenure
Min. 12 years Min. 12 years
Interest Rate
Min. 14% Min. 14%
Max. 22% Max. 24%
Processing Force
2% 2%
Time to Process Loan
3 days 3 days
ICICI BANK PERSONAL LOAN
ICICI bank offers personal loans unto an amount of Rs.15 lakhs.
No security/ guarantor is required for this loan and it can be repaid over
a period of between 12 months and 60 months. They claim that
'minimum documentation' is required. You can also get an ICICI Bank
Personal Loan on the repayment track of your existing Home loan, Car
loan or Personal loan; or your Credit Card statement. If you're an ICICI
bank customer, you can get a loan without having to visit your local
branch. If you've been an ICICI customer for at least six months, you
may have been 'pre-approved' for a loan, according to ICICI.

ELIGIBILITY FOR THE ICICI PERSONAL LOAN
Salaried
The salaried and self-employed are both, eligible for this personal loan.
If you're salaried, you need to be between 25 years and 58 years of age
with a minimum net annual income of 96,000 per annum and employed
with a public limited company, a private limited company, a
multinational corporation (MNC) or with the government. You should
have been employed for atleast one year and living in your current
residence for atleast one year.
Self employed
If you're self employed, you need to be between 25 years and 65
years of age with a minimum net profit after tax of Rs.60,000 per
annum. Doctors, MBA's, Architects, CA's, Engineers, Traders &
Manufacturers are eligible. You need to have been in your profession
for atleast three years and living at your current residence for atleast one
year.
DOCUMENTATION REQUIRED
Salaried
 Latest 3 months Bank Statement (where salary/income is
credited)
 3 Latest salary slips
 Proof of Continuity current job (Form 16 / Company appointment
letter )
 Proof of Identity (any one)Passport / Driving Licence / Voters
ID / PAN card / Photo Credit Card / Employee ID card
 Proof of Residence (any one) Ration Card / Utility bill / LIC
Policy Receipt
 Proof of Qualification Highest Degree (for Professionals / Govt
employees
Self employed
 Latest 3 months Bank Statement (where salary/income is
credited)
 Last 2 years ITR with computation of income / Certified
Financials.
 Proof of Turnover (Latest Sales / Service tax returns).

 Proof of Continuity of current profession (IT Returns / Certificate
of business continuity issued by the bank).
 Proof of Identity (any one) Passport / Driving License / Voters ID
/ PAN card / Photo Credit Card / Employee ID card.
 Proof of Residence (any one) Ration Card / Utility bill / LIC
Policy Receipt.
 Proof of Office (any one) Lease deed / Utility bill / Municipal Tax
receipt / title deed.
 Proof of Qualification Highest Degree (for Professionals / Govt.
employees.
HIGHLIGHTS

Loan Amount Min. Rs 50000 Min. Rs 50000
Max. Rs 1500000 Max. Rs 1500000
Tenure Min. 12 Yrs. Min. 12 Yrs
Interest Rate Min. 12 % Min. 14 %
Max. 22 % Max. 24 %
Time to Process Loan 3 days 2 days

Processing Fee 3% 3%
STATE BANK OF INDIA PERSONAL LOAN
SBI Personal Loans also known as State Bank of India personal
finance schemes, aim to provide the necessary financial assistance to as
many people as possible to help them realize their dreams or come out
of situations of financial need. State Bank of India being India's largest
bank is a trusted name and the SBI personal loan rate of interest are kept
at the most competitive level to make a personal loan as approachable as
possible.
Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g.
expenses for domestic or foreign travel, medical treatment of self or a
family member, meeting any financial liability, such as marriage of
son/daughter, defraying educational expenses of wards, meeting margins
for purchase of assets etc.).
Advantage
 Low interest rates. Further, we charge interest on a daily
reducing balance!!
 Low processing charges; only 1%-2% of loan amount.
 No hidden costs or administrative charges.
 No security required which means minimal documentation
something that you had always wanted.
 No prepayment penalties. Reduce your interest burden and
optimally utilize your surplus funds by prepaying the loan
(1% of the loan amount will be charged if you repay the loan
before 6 months).
 Long repayment period of up to 48 months.
Eligibility
You are eligible if you are a Resident Indian National having
capability to repay a loan, except agriculturists. (At present, only
salaried individuals are covered under the scheme).
HIGHLIGHTS

Loan Type Term Loan Term Loan
Loan Amount Min. Rs. 50,000 Min. Rs. 50,000
Max. Rs 15,00000 Max. 15,00000
Tenure (Max.) Min. 12 yrs. Min. 12 yrs.
Interest rate Min. 12% Min. 12%
Max. 22% Max. 24%
PNB PERSONAL LOAN
PNB gives personal loan to all permanent defence personnel
including officials of Military Station Headquarters, BSF, CRPF, CISF,
ITBP, permanent central / state govt. employees, etc to meet all types of
personal needs. Loan can be repaid in 60 EMIs or remaining period of
services, whichever is earlier but in case of army jawans and defence
personals the tenure is of 36 EMIs or remaining period of stay at the
particular posting, which ever is lower.
Purpose
Own To meet all types of personal needs.
Eligibility
i) All permanent Defense Personnel including officials of
Military Station Headquarters, BSF, CRPF, CISF, ITBP
ii) Confirmed/ permanent employees of Central/ State Govt/
PSUs and all reputed companies/ Institutions, who are
drawing their salary through accounts maintained with our
branches.
Employees of above categories under ‘check-off facility’ OR
having minimum annual income of Rs.3.00 lac.
iii) Professionally qualified Doctors viz. MBBS, BDS & above
having annual income of Rs.3.00 lac & above.
Minimum Net Monthly Income
 Rs.8500 per month for eligible customers at Metro Centres;
 Rs.7000 per month for eligible customers at Urban Centres; and
 Rs.5000 per month for eligible customers at Semi-Urban and
Rural Centres.
DOCUMENT REQUIRED
Salaried
ID Proof, Residence Proof, Income Proof, Telephone, Photograph, Bank
Statement, Signature Proof.
Self employed
ID Proof, Residence Proof, Income Proof, Telephone, Photograph, Bank
Statement, Signature Proof.
HIGHLIGHTS
Salaried Self employed

Loan Amount 3,00,000 or 30 times net 3,00,000 or 30 times Salary
monthly net monthly salary

Tenure Min. 12yrs. Min. 12 yrs.
Interest Rate Min. 14% Min. 14%
Max. 15% Max. 15%
Monthly Income Rs. 7000 Rs. 7000
Age Min. 21 yrs. Max. 58 yrs.
Min. 21 yrs. Max. 65 yrs.
STUDENT LOAN BY JAMMU AND KASHIMER BANK
Scale of Finance
 Rs.7.50 Lacs for studies in India .
 Rs.15.00 Lacs for studies abroad .
Courses Financed
Graduate / P.G Courses in: Medicine, Surgery, Engineering, Hotel
Management, Design, Architecture, Bio-chemistry, Agriculture,
Veterinary etc.
P.G Courses in: Business Management, Chartered or Cost Accounting ,
Company Secretary ship.
Eligibility
 Should be an Indian National
 Should have secured admission to professional/technical courses
through entrance test/selection process.
 Should have secured admission to foreign universities/institutions
 Should have passed the qualifying examination for admission to
the courses.
 Employed person intending to improve their educational
qualification and/or receive training in modern technology in

India or abroad can also be assisted under this scheme provided
training offers prospects of better placement.
Security
 Personal guarantee of borrower/ 's
 Collateral security equal to amount of loan.
Margin
 For loans upto Rs. 4 lacs - nil
 For loans above Rs. 4 lacs Studies in India - 5% Studies abroad -
15%
Rate of Interest (subject to change)
Loan amount Interest rate
Up to Rs.25,000 9% p.a
Rs.25,000 to Rs.5,00,000 10.5% p.a
Above Rs.5,00,000 11.5%
REPAYMENT
Repayment Holiday/ Moratorium: Course period + 1 year or 6 months
after getting job, whichever is earlier. The loan to be repaid in 5 to 7

years after commencement of repayment. If the student is not able to
complete the course within the scheduled time, extension of time for
completion of course may be permitted for a maximum of two years
TERM LOAN FOR B.ED/ M.ED. COURSES
Purpose
To provide loan to students. Employed persons who want to pursue
B.Ed / M.Ed courses. For meeting admission / tuition/ examination/
library/ lab Fee.
Eligibility
 Student should be an Indian National.
 Should be a graduate in any discipline from any recognized
university.
 Should have secured admission to the recognized
Institution/College imparting the B. Ed/M. Ed Course.
 Loan application should be forwarded by the Principal of the
college.
Quantum of finance : Maximum: Rs 25,000.
Margin : 10%.
Security : Third party guarantee of one person.
Processing charges : 0.05% (Minimum: Rs.25/-).
Rate of Interest : PLR with quarterly rests.
Repayment : 12 equal monthly installments.
HDFC BANK EDUCATION LOAN
HDFC bank offers education loan for studies in India or abroad to
bridge the gap between you and higher education. Bank offers hassle
free loan at attractive interest rates. Bank gives loan for other course
related expenses also. Loan approval process is speedy.
Loan Purpose for study abroad
Loans are also provided for studying abroad for job oriented
courses at degree level and advanced studies in all areas for post-
graduation. For payment of fees to school/college and for purchase of
books, hostel fees, examination fees, etc.
Loan Purpose for study in India

The Educational Loan Scheme outlined below aims at providing
financial support from the bank to deserving/ meritorious students for
pursuing higher education in India and abroad. The main emphasis is
that every meritorious student is provided with an opportunity to pursue
education with the financial support on affordable terms and conditions.
No deserving student is denied an opportunity to pursue higher
education for want of financial support.
HIGHLIGHTS
Study Abroad Study India
Course Graduation Post Graduation

Loan amount Min. Rs. 50,000 Min. Rs. 50,000
Max. 75,0000 Max. Rs. 75,0000
Margin 155 5%
Tenure Min. 1 yrs. Min. 1 yrs.
Interest Rate 14% 14%
Age Min. 16 yrs. Max. 30 yrs. Min. 16 yrs. Max. 30 yrs.
DOCUMENTS REQUIRED
Study Abroad
ID Proof, Age Proof, Residence Proof, Income Proof, Telephone,
Photograph, Bank Statement, Signature Proof,
Others Letter from the Head of Department (University), Visa approval
papers, Travel papers, GMAT/GRE/SAT score
Study in India
ID Proof, Age Proof, Residence Proof, Income Proof, Telephone,
Photograph, Bank Statement, Signature Proof,
Others latest mark sheet of the student, Letter of admission from the
Institute, Letter from the Institute stating cost break up of the program
(term-wise, year-wise)
ICICI BANK EDUCATION LOAN
ICICI bank education loan covers the course fee, other
supplementary expenses set by the institute. Student must have the letter
from the Institute which has the details confirming his admission and
course fee along the other important documents. ICICI bank requires a
confirmation letter from ICICI Prudential life stating that the students
will get absorbed under the payroll of the company

Loan Purpose
Fee payable to College / Hostel, Examination / Library / Laboratory fee,
Purchase of books / equipments / instruments, Caution Deposit /
Building Fund, Travel Expenses / Passage, Purchase of computers.
HIGHLIGHTS

Course Graduation Graduation
Loan Amount Min. Rs 50,000 Min. Rs 50,000
Max. Rs. 40,0000 Max. Rs. 40,0000
Interest Rate 13% 13.75%
DOCUMENTS REQUIRED
1. Loan application form duly filled.
2. Letter from Institute confirming the admission of the candidate
with stipulated fees & other charges for completing the course.
3. Letter from ICICI Prudential Life confirming that students will
get absorbed under the payroll of ICICI Prudential Life.
4. ID proof (Driving License/ Passport/ Pan Card etc).
5. Permanent address - residence proof (Ration Card/ Utility Bill).

6. Qualification proof - Mark sheets of graduation, 12th and 10th
Std.
7. Signature Proof - (Driving License/ Passport/ Pan Card).
SBI EDUCATION LOAN
State Bank of India offers loan to Indian National seeking higher
education in India or aboard and have secured admission. Bank gives
loan for graduation, post graduation, professional courses, courses
approved by UGC/govt./AICTE etc. which have employment prospects.
Loan covers all the expenses from fees to purchase of computers, etc.
Purpose
For study in India: To extend financial assistance to
deserving/meritorious students for pursuing full time courses in India
and abroad at select premier & reputed institutions
For Studying Abroad: To extend financial assistance to
deserving/meritorious students for pursuing full time courses in India at
select premier & reputed institutions
HIGHLIGHTS

Course Post Graduation Graduation
Max. Rs. 40,0000 Max. Rs. 40,0000
Margin 15% 5%
Interest Rate 14.75% 14.75%
Time to process Loan 7 days 7 days
 Completed loan application form
 Mark sheets of your last qualifying exam
 Proof of admission
 Schedule of expenses
 2 passport size photographs
 Bank statement for the last 6 months
 Income tax assessment order of the last 2 years
 Brief statement of assets and liabilities of the co-borrower
 Proof of income (i.e., salary slips / form 16, etc)
PNB EDUCATION LOAN

PNB has designed "VIDYALAKSHYAPURTI” scheme to
provide education loan to needy students such as students of +2 stage,
Graduation courses – B.A., B.Com. B.Sc., etc., Post-Graduation courses,
for professional courses, etc, on comfortable and affordable terms. Bank
also provide life insurance cover to loan borrowers, it has tie up with
Kotak Mahindra Insurance.
Loan Purpose for studying in abroad Fee payable to College / Hostel,
Examination / Library / Laboratory fee, Purchase of books /
equipments / instruments, Caution Deposit / Building Fund, Travel
Expenses / Passage, Purchase of computers
Loan Purpose for studying in India Fee payable to College / Hostel,
Examination / Library / Laboratory fee, Purchase of books /
equipments / instruments, Caution Deposit / Building Fund
HIGHLIGHTS

Course Graduation Graduation
Max. 40,0000 Max. 40,0000
Repayment starts 1 year after course completion / 6 months after
obtaining employment (whichever earlier).

JK BANK HOME LOAN
Quantum of loan
 For Construction /Purchase 60 months net salary or 75.00 Lacs
whichever is lower.
 For repairs/renovation 20 months net salary, subject to a
maximum of Rs.10.00 Lacs.
 For purchase of land: 20 months net salary/income subject to
maximum of Rs.5 Lacs within J&K and Rs10.00 Lacs outside
J&K.
 Also as an incentive for small borrowers, the loans upto Rs.
1.5 Lacs granted for repairs/renovations of existing houses
would now be secured by third party guarantee of two persons
or such other security as is deemed appropriate by the Bank.
Eligibility
 Employees of Govt. , Semi-Govt. Dept., Civic Bodies, PSU's
with minimum 5 years service.
 Reputed Businessmen with minimum 5 years standing.
 Professionals & Self employed like Doctors ,Engineers , CA's ,
Advocates with minimum 5 years standing

Security
 Primary: Mortgage of the house Property to be purchased /
constructed.
 Collateral: Third party Guarantee of one person, or assignment
of LIC Policies, pledge of Govt. securities etc.

Rate of Interest
Floating Fixed
Upto Rs. 20 Above Rs. 20 Upto Rs. 20 Above Rs. 20
lacs. lacs. lacs lacs.
Repayment upto 5 11.25% 13.25% 12.00% 14.25%
yrs.
Above 5 yrs. upto 11.25% 13.25% 12.00% 14.25%
10 yrs.
Above 10 yrs. upto 12.75% 14.25% -- --
15 yrs.
Above 15 yrs. upto 13.00% 14.75% -- --
20 yrs.
Security
 Mortgage of the house/property to be purchased/
constructed.
 Third party guarantee of one person or Assignment of LIC
policies, pledge of govt. securities etc.
 Negative lien on the property to be repaired/renovated
without mortgaging the same to the Bank.
Repayment
 For construction of new house 20 years including 9
months moratorium in equal monthly installments.(Applicable
to new loans and disbursements only)

 For addition / Renovation 7 years Including 2
months moratorium in equal monthly Installments
Margin
 15% for construction/purchase of built house flat.
 20% for renovation/purchase of land.
Processing charges
 0.25% of loan amount
HDFC BANK HOME LOAN
What is your dream to own a two-bed apartment, a dream to own
sea-facing penthouse or want to buy a land to build your dream house?
You can fulfill all your dreams by taking home loan from HDFC bank.
Bank finances up to 85% maximum of the cost of the property, gives
home improvement loan, loan for extension of existing house. Bank has
flexible repayment options so that you don’t face problem. Insurance
cover plan is given by HDFC Standard Life Insurance Company Ltd. to
cover life’s uncertainties of the borrowers.
Eligibility criteria for Resident Indians:
 Stability and continuity of occupation and savings history

 Repayment capacity takes into consideration factors such
as income, number of dependants, spouse's income, assets,
liabilities
 The applicant should have a steady source of income.
Eligibility criteria for NRIs:
 Loan eligibility subject to 85% of the cost of the property.
 Repayment capacity assesses factors such as income, age,
qualifications, number of dependants, spouse's income, assets,
liabilities.
 Stability and continuity of occupation and savings history
Loan Repayment terms:
The repayment options are flexible and customized to suit the
individual needs of the customers. While repaying the loan amount
customers can choose from Fixed Rate of Interest or Floating Interest
Rate.
In case of home loans to purchase (fresh/resale) or construct
houses, the maximum period of repayment is 15 years or retirement age,
whichever is earlier. The maximum period of repayment for home
improvement loan is 15 years or retirement age, whichever is earlier.

For home extension maximum term is 20 years subject to your
retirement age.
There are multiple payment options like Step-Up Repayment
Facility Flexible Loan Installments Plan, Tranche Based EMI and
Accelerated Repayment Scheme.
Automated Repayment of Home loan EMI. You can give standing
instructions to repay your Home Loan EMIs directly from your HDFC
Bank Savings Account which does away with the cumbersome process
of procuring, signing and tracking post-dated cheques.
While repaying the loan amount customers can choose from Fixed Rate
of Interest or Floating Interest Rate.
HIGHLIGHTS
Interest Rate 11.25%

Loan Amount Min. Rs. 1,00000
Max. Rs. 1,00000

Tenure Min. 5 yrs.
Max. 20 yrs.
Time to Process Loan 7 days
Processing Fee 1%
Age Min. 24 yrs. Max. 55 yrs.
ICICI BANK HOME LOAN
ICICI bank is No. 1 home loan provider. Bank has designed home
loan plans to suit your needs to lay foundation for your dream home.
Bank has special offers such as attractive loan interest rates, home loan
amounts to suit your needs, home loan repayment tenure is up to 25
years, bank even sanction approval without having selected a property.
Bank also gives free personal accident insurance cover and insurance
option for home loan at very attractive premium.
Features:
 Attractive loan interest rates.
 Home loan amounts suited to your needs.
 Home Loan tenure upto 25 years.
 Simplified Documentation.
 Doorstep Delivery of home loan papers.
 Sanction approval without having selected a property.
 Free Personal Accident Insurance.
 Insurance options for your home loan at attractive premium.

Loan Amount
The home loan amount depends on your repayment capability and is
restricted to a maximum of 85% of the cost of the property or the cost of
construction as applicable
HIGHLIGHTS

Max. Rs. 1,00,00000

Tenure Min. 5 yrs.
Max. 25 yrs.
Processing Fee 0.5%
INTEREST RATES
Tenure Interest Type Interest Rate

10 - 15 Yrs. Floating 11.25 %
5 - 10 Yrs. Floating 11.25 %
1 - 5 Yrs. Floating 11.25 %
15 - 20 Yrs. Fixed 13.75 %
10 - 15 Yrs. Fixed 13.75 %
5 - 10 Yrs. Fixed 13.75 %
1 - 5 Yrs. Fixed 13.75 %
15 - 20 Yrs. Floating 11.25 %
SBI HOME LOAN
SBI has been awarded “The Most Preferred Home Loan Provider”
by AWAAZ Consumer Awards. SBI home loans give concession on
interest rates on GREEN HOMES under its environment protection
program. SBI has different options for loan borrowers such as ‘SBI –
Flexi’ home loans provides borrowers a one time irrevocable option to
choose one of the three combinations of fixed and floating interest rates
and also to choose the order in which the fixed and floating rate will be
availed. The other is ‘SBI- Maxgain’ home loans - earn optimal yield on
savings and minimize interest burden on home loans, with no extra cost.
‘SBI –Realty’ Home loans - purchase a plot of land for house
construction. ‘SBI – Freedom’ Home loans – who want to invest in a

property without mortgaging the same. SBI offers ‘SBI – Optima’
additional home loans and ‘SBI – Homeline’ special personal loans for
existing home loan borrowers who have a repayment record of 3 years,
etc.
FEATURES
 Home loans for individuals to purchase (fresh / resale) or
construct houses. HDFC finances up to 85% maximum of the
cost of the property (Agreement value + Stamp duty +
Registration charges).
 HDFC also provides with Home Improvement Loan for
internal and external repairs and other structural improvements
like painting, waterproofing, plumbing and electric works,
tiling and flooring, grills and aluminium windows. HDFC
finances up to 85% of the cost of renovation (100% for
existing customers).
 Home Extension Loan facilitates the extension of an existing
dwelling unit. All the terms are the same as applicable to
Home Loan.
 HDFC Land Purchase Loan is a convenient loan facility to
purchase land. HDFC finances up to 70% of the cost of the

land. Repayment of the loan can be done over a maximum
period of 10 years.
 Choose from Fixed Rate or Floating Rate with options to
structure your loan as Partly Fixed or Partly Floating.
 Flexible repayment options to suit your individual needs.
 HDFC Standard Life Insurance Company Ltd. offers an
insurance plan, which is designed to ensure that life's
uncertainties do not affect your family's interests and your
precious home. This pure risk plan is designed in a way that
the cover decreases as you repay your home loan making it a
low cost premium insurance plan.
 Loan Amount: Customers are eligible to get upto 85% of the
amount of the property.
 Tenor: 1-20Years
HIGHLIGHTS

Max. Rs. 2,00,00,000

Tenure Min. Rs. 5 yrs.
Max. 20 yrs.
Processing Fee 0.5%
PNB HOME LOAN
PNB offers you home loan for your convenience and requirement
so that you can be a proud owner of your dream house. You can take for
purchase of house/flat on first power of attorney basis from the original
allottee, to do renovation / alterations in the existing house/flat, etc.
Moreover bank gives loan to cover the loan outstanding, you can also
take life insurance cover on payment of one time premium which bank
can also finance.
ELIGIBILITY
a) Individuals in permanent service or having their own business
(Resident or non-resident).
b) Age of the applicant should not be more than 60 years in case of
service class and 65 years in case of businessman or self
employed.
INDIVIDUAL
For construction/purchase of house/ flat: 75% of the cost of construction
of house or purchase of house/ flat.
For carrying out repairs/ renovation/ additions/ alterations: 75% of the
estimated cost subject to maximum of Rs. 20lacs.
Loan upto Rs.20 Lacs for purchase of Land/Plot.
Loan is available maximum upto Rs.2 Lacs for furnishing.
SECURITY
Mortgage of property for which finance is being given.
In case of purchase of house/ flat from housing board/ society
where mortgage cannot be created immediately, a tripartite agreement
shall be executed amongst the housing board/ society, borrower and the
Bank.
In case of purchase of house/ flat on first power of attorney,
additional security equal to 125% of the loan amount by way of
mortgage of some other property or pledge of bank's FDR/ LIC policy/
Govt. Securities, NSCs, KVPs, IVPs, / PSU Bonds etc. has to be
provided.
REPAYMENT
Loan is to be repaid in equated monthly installments within a period of
25 years or before the borrower attains the age of 65 years.
MARGIN
The borrower's contribution shall be minimum 20% of the total
cost of project, including stamp duty and registration charges.
HIGHLIGHTS
Interest Rate 9.5%

Loan Amount Min. 1, 00000
Max. Rs. 2,00,00,000

Tenure Min. 5 yrs.
Max. 25 yrs.
Processing Fee 1%
Margin (Max.) 20%
CAR LOAN
JK BANK CAR LOAN
Eligibility
 Permanent Employees of State / Central Government, Employees
of Government / Semi-Government Undertakings & Autonomous
Bodies
 Employees of Private Limited Companies, Private Organizations,
Reputed Establishments & Employees on contractual basis with
Central/State Govt, Government/ Semi-Government Undertakings
& Autonomous bodies.
 Businessmen, Professionals and self employed individuals.
Security
 Primary
Hypothecation of vehicle to be purchased & Bank’s charge to be
registered with RTO.
 Collateral
No third party guarantee required in respect of permanent
employees of State and Central Government, employees of State /
Central Government Undertakings & Autonomous bodies
drawing salary through our Bank and where letter of undertaking
from employer is available.
Margin
 10% of the Sales Invoice Value for employees of State /
Central Government, State / Central Government
Undertakings, Autonomous bodies, Platinum / Gold Current

Account holders.10% margin shall also apply to
Businessmen, Professionals & Self-Employed persons with
yearly income of Rs 2,50,000/- & above.
 20% of the sales invoice value in case of all the other cases.
 100% finance shall be available to applicants if they keep a
fixed deposit with the bank for amount equal or more than
the margin money & for duration not less than the repayment
period of the loan. This deposit shall be kept under lien to the
Bank.
Repayment
Flexible repayment options ranging from 12 to 84 months in
equal monthly installments.
Minimum Loan Amount
Rs 75,000/- (Rupees Seventy Five Thousand Only)
Maximum Loan Amount
 30 months net monthly salary of the applicant or 2.5 times
net annual income. However, in case of employees of private

organizations & employees on contract basis as mentioned
above, the maximum finance shall be limited to 18 times net
monthly salary or 1.5 times net annual income
 In case of married individuals, certified income of spouse
can also be considered provided the spouse guarantees the
loan.
 The upper ceiling on the loan amount shall be Rs 25 lacs
Processing Charges
0.25% of Loan amount to be paid upfront subject to a minimum of Rs.
500/-.
HDFC BANK CAR LOAN
The Housing Development and Finance Corporation (HDFC)
Bank's Car Loan Scheme is very convenient and offers a host of
advantages. These include speedy processing, flexible repayment
options, hassle-free documentation, and attractive interest rates. HDFC

car loans cover the widest possible range of cars and multi-utility
vehicles in India.
ELIGIBILITY & DOCUMENTATION
Salaried Individuals
 Minimum age of Applicant: 21 years
 Maximum age of Applicant at loan maturity: 60 years
 Minimum employment: 1 year in current employment and
minimum 2 years of employment
 Gross household income i.e. including income of the spouse:
Rs 100000 net annual income
 Telephone: Necessary at residence
Documents required
 Age Proof: Any one of Passport copy, PAN Card, Voters ID
card, Photo driving licence with birth date (laminated, recent,
legible), Photo ration card with DOB, Employer
certificate/ID, School/College Leaving certificate.
 Proof of Identity: Any one of Passport copy, PAN Card,
Voters ID card, Photo driving licence with birth date, Photo
ration card with DOB.

 Income Proof: Latest salary slip with latest form 16/latest
ITR. HDFC bank corporate salary account statement for
salary credits of above Rs 8000 for three months.
 Address Proof: Any one of Photo Ration card with DOB,
Photo Driving licence with DOB, Passport copy, Telephone
bill, Electricity bill, Credit Card statement with credit card
copy, Employer certificate/ID.
 Sign Verification Proof: Any one of Passport copy, Photo
driving licence with birth date ( laminated, recent , legible),
Credit Card statement with credit card copy, Banker's
verification, Copy of margin money paid to bank.
Self Employed
 Minimum age of Applicant : 21 years
 Maximum age of Applicant at loan maturity : 65 years
 Minimum employment : Atleast 3 years in business
 Minimum Annual Income : 60000
 Telephone: Necessary at residence
Documents required
 Age Proof: Any one of Passport copy, PAN Card, Voters ID
card, Photo driving license with birth date (laminated,
recent , legible), Photo ration card with DOB, Employer
certificate/ID, School/College Leaving certificate.
 Proof of Identity: Any one of Passport copy, PAN Card,
Voters ID card, Photo driving license with birth date
(laminated, recent , legible), Photo ration card with DOB.
 Income Proof: Latest ITR / Previous ITR with Adv. Tax
paid challan / latest IT assessment order.
 Address Proof: Any one of Photo Ration card with DOB,
Photo Driving license with DOB, Passport copy, Telephone
bill, Electricity bill, Credit Card statement with credit card
copy, Employer certificate/ID.
 Sign Verification Proof: Any one of Passport copy, Photo
driving license with birth date (laminated, recent , legible),
Credit Card statement with credit card copy, Banker's
verification , Copy of margin money paid to bank.
HIGHLIGHTS
New Car Used Car

Max. Rs. 9,00,000 Max. Rs. 9,00,000
Tenure Max. 12 yrs. Max. 12 yrs.
Interest rate 14% 16%
Margin (Max.) 20% 20%
ICICI BANK CAR LOAN
ICICI Bank is the No. 1 financier for car loans in India. It has a
network of more than 1800 channel partners in over 1000 locations. The
bank has tie-ups with all leading automobile manufacturers in India to
ensure the best deals. ICICI Bank offers flexible schemes and quick
processing.
ELIGIBILITY FOR CAR LOANS
For salaried individual

Age Criteria: The applicant should be at least 21 years old at the time
of application, and below 58 years of age at time of maturity of the loan.
Income Criteria: Gross annual salary above Rs 1 lakh p.a
Self-Employed Individual: Any Proprietor, partner, professional or
director above 21 years of age but below 65 at the time of the loan's
maturity.
Income Criteria: Gross annual salary above Rs 1 lakh p.a.
Salaried Individual
 Photograph
 Proof of bank account continuity
 One income proof for the last two years (ITR, Form 16,
salary slip
 One proof of identity (driving license / voters' identity card /
passport / PAN card / photo credit card / photo ration card)
 One proof of residence (laminated driving license / voters'
identity card / photo ration card / passport /utility bills for the
last 3 months / company ID - limited company or
government / PAN card)
Self-Employed Individual
 Photograph
 Proof of bank account continuity
 One proof of income (ITR for the last two years)
 One proof of residence (driving license / voters' identity
card / ration card / passport / utility bills for the last 3
months)
 One proof of office address (utility bill / lease deed / excise
or sales tax receipt / Shops and Establishment Act
Registration)
NEW CAR LOAN
HDFC Bank gives maximum loan of 90% of the invoice value on
new cars. The minimum loan amount is Rs 50000. The loan tenure
varies from 12 to 84 months. One can pre-pay the loan any time after 6
months of availing of the loan by paying a small prepayment fee on the
outstanding loan amount.
USED CAR LOAN
The maximum loan amount given for used cars is up to 80% of
the invoice value. One can choose from loan tenure options of 12, 24,
36, 48, or 84 months.
HIGHLIGHTS
New Car Used Car

Interest rate 14.25% 16%
Time to Process Loan 1 day 1 day
STATE BANK OF INDIA CAR LOAN
SBI car loan scheme has been designed to help you in purchasing
your dream car. Bank charges low interest rates, and gives you easy
repayment options. Bank maintains total transparency. Amount includes
vehicle registration charges, insurance, one-time road tax and
accessories as per conditions.

ADVANTAGE
Excellent service and lower costs. A quick survey of similar schemes
available elsewhere and you will find that SBI Car Loans for new and
old vehicles offer you :
 Lowest interest rates
 Longer repayment period of upto 84 months.
 No hidden costs or administrative charges.
 Finance for one-time road tax, registration fee, insurance
premium and accessories
 No advance EMIs. (Some Banks/companies ask you to pay
one or more EMIs at the time of disbursement of loan,
thereby effectively reducing your loan amount.)
Eligibility
To avail an SBI Car Loan, you should be:
 Individual between the age of 21-65 years of age.
 A Permanent employee of State / Central Government,
Public Sector Undertaking, Private Company or a reputed
establishment.
 A Professionals or self-employed individual who is an
income tax assesses.
 A Person engaged in agriculture and allied activities.
 Net Annual Income Rs. 100,000/- and above.
LOAN AMOUNT
There is no upper limit for the amount of a car loan. A maximum
loan amount of 2.5 times the net annual income can be sanctioned. If
married, your spouse's income could also be considered provided the
spouse becomes a co-borrower in the loan. The loan amount includes
finance for one-time road tax, registration and insurance!
No ceiling on the loan amount for new cars.
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
You would need to submit the following documents along with the
completed application form if you are an existing SBI account holder:
1. Statement of Bank account of the borrower for last 12 months.
2. 2 passport size photographs of borrower(s).
3. Signature identification from bankers of borrower(s).
4. A copy of passport /voters ID card/PAN card.

5. Proof of residence.
6. Latest salary-slip showing all deductions
7. I.T. Returns/Form 16: 2 years for salaried employees and 3 years
for professional/self-employed/businessmen duly accepted by the
ITO wherever applicable to be submitted.
8. Proof of official address for non-salaried individuals.
If you are not an account holder with SBI you would also need to
furnish documents that establish your identity and give proof of
residence.
Margin
New/Used vehicles: 15% of the on the road price.
HIGHLIGHTS
New Car Used Car

Loan Type Term Loan Term loan
Max. Rs. 15 lakhs
Margin 15% 15%
PNB CAR LOAN
Bank offers loan for the purchase of foreign make or Indian
manufactured. Bank has set 20% margin on loan amount. Bank gives
loan for all types of four wheelers.
Eligibility
Individuals as well as Business Concerns (Corporate or non-corporate).
Amount of Loan for Individuals

25 times of the monthly net salary OR Rs.15 lac, whichever is
lower. Income of spouse can be taken into account for determining loan
amount. In such cases, the spouse shall stand as a guarantor.
Margin 20%
Repayment
For new Car/ Van/ Jeep: The loan amount together with interest is to
be repaid maximum in 84 Equated Monthly Installments (EMIs)
For old Car/ Van/ Jeep: The loan amount together with interest is to be
repaid maximum in 60 Equated Monthly Installments (EMIs)
HIGHLIGHTS
New Car Used Car

Interest Rate 12.5% 17%
Margin (Max.) 20% 20%
DOCUMENT REQUIRED
i) Bank statement for last six months

ii) Two passport size photograph
iii) Latest salary slip
iv) It returns for the last two financial years, in the
case of self employed individual and professionals.
v) Identity and proof of residence.
COMPARISON OF RETAIL LOAN
OF J&K BANK WITH PNB, SBI,
ICICI AND HDFC BANK

COMPARISON OF PERSONAL LOAN OF J&K BANK WITH
OTHER BANKS
J&K HDFC ICICI PNB SBI

Loan Amount 7 lakhs 10 lakhs 15 lakhs 3 lakhs 15 lakhs
(Max.)
Tenure (Max.) 12 yrs. 12 yrs. 12 yrs. 12 yrs. 12 yrs.
Personal Loan (Max. Amount Granted by J&K

Bank and other Banks)
Loan Amount
15.00 15.00 (Max.)
15.00
10.00
10.00 7.00
5.00 3.00
0.00
Bank Bank Bank
Time Limit (Max.)
12 12 12 12 12 Tenure (Max.)
12
10
(In years)
8
6
4
2
0
Bank Bank Bank
AGE CRITERIA
Salaried
Min. 21 yrs. 21 yrs. 25 yrs. 21 yrs. 21 yrs.
Max. 6o yrs. 60 yrs. 58 yrs. 50 yrs. 58 yrs.
Self Employed
Max. 65 yrs. 65 yrs. 65 yrs. 65 yrs. 65 yrs.
Processing 1% 2% 3% 2% 2%
Age Criteria Salaried

60 60
60 58 58 S a la rie d (Min.)
50 S a la rie d (Ma x.)
50
(In Years)
40
30 25
21 21 21 21
20
10
0
Bank Bank Bank
Age Criteria of Self Employed
80
(In Years) (Min.)
60
40 (Max.)
20
0
Bank Bank Bank
MONTHLY INCOME
Salaried 7500 7000 8000 7000 5000
Self-employed 8500 8000 8000 7000 7000
Processing time 3 days 3 days 3 days 5 days 2 days
Rate of interest
Min. 13.5% 14% 12% 14% 14%
Max. 22% 24% 24% 15% 17.75%
Monthly Income of Salaried and Self Employed

Salaried
10000 8500 8000
8000 8000 7000
Self Employed
(In Rupees)
8000 7500 7000 7000
6000 5000
4000
2000 700
0
Bank Bank Bank
COMPARISON OF EDUCATION LOAN OF J&K BANK WITH
OTHER BANKS

Loan Amount 15 lakhs 7.5 lakhs 4 lakhs 4 lakhs 4 lakhs
(Max.)
Margin in India 5% 5% 5% 5% 5%
Abroad 15% 15% 15% 15% 15%
Age
Rate of interest
In India 5% 14% 13% 13.5% 14.75%
Abroad 15% 14% 13.75% 13.25% 14.75%
Max. Education Loan Granted by Different
Banks
Max.
(In Lakh) 15.0
10.0
5.0
0.0
J&K Bank HDFC ICICI Bank PNB SBI
Bank
Rate of Interest in Education Loan Charged by

Different Banks
15%
(in Percentage)
10%
In India
5%
Abroad
0%
Bank Bank Bank
COMPARISON OF HOME LOAN OF J&K BANK WITH
OTHER BANKS

Loan Amount
Min. 4 lakh 1 lakh 2 lakh 1 lakh 1 lakh
Max. 1 crore 1 crore 1 crore 2 crore 2 crore
Tenure
Processing days 7 days 7 days 7 days 7 days 7 days
Rate of Interest 13.25% 11.25% 12.75% 9.5% 11.25%
(Max.)
Age Criteria
Income Annual 1,40,000 1,20,000 1,20,000 1,20,000 1,20,000
Max. Rate of Interest Charged by Different Bank

on Home Loan
0.13 0.13
0.14 0.11 0.11
0.12 0.09
0.10
0.08
0.06
Max.
0.04
0.02
0.00
Bank Bank Bank
Max. Rate of Interest Charged by Different
Banks on Home Loan
1.40 Annual Income

1.40
(In Lakhs)
1.30
1.20 1.20 1.20 1.20
1.20
1.10
Bank
COMPARISON OF CAR LOAN OF J&K BANK WITH OTHER
BANKS

Loan Amount
Max. 10 lakh 9 lakh 15 lakh 15 lakh 15 lakh
Tenure
Processing fee Rs. 1850 Rs. 1500 Rs.1950 Rs. 1850 Rs. 1800
(in Rs.)
Age Criteria Salaried
Min. 21 yrs 21 yrs 21 yrs 21 yrs 21 yrs
Self Employed
Margin (Max.) 20% 20% 20% 20% 155
Max. Loan Amount Granted by Different Banks

on Car Loan
Max. Loan Amount

16.00 15.00 15.00
14.00
12.00
(In Lakhs)
10.00
10.00 9.00
8.00 7.00
6.00
4.00
2.00
0.00
Bank
FINDINGS:
 J&K Bank is providing service to its customer as better as any
other nationalized or private Bank.
 I studied the retail loan of J&K Bank and compare it with retail
loan of PNB, SBI, ICICI and HDFC Bank and I found that there
is not so much difference in interest rate charged by J&K Bank
and other. almost all bank grant loan to its customer on same
basic conditions, Age criteria, Tenure of loan, personal income
etc.
 J&K Bank have a good market share in retail loans despite
competition give by other bank PNB, SBI, HDFC, ICICI, Bank.
 Although , J&K Bank have a good customer back ground, the
competition in retail loan market is increasing a private bank like
HDFC, ICICI and other bank are opening new branches in the
state and using advertisement and direct market and more
aggressively the J&K Bank.
 Many people trust on J&K Bank because it is semi state owned
and is considered as State Local Bank, specially in rural areas.
 Most of the J&K Bank customers with those I personally
interacted while my summer training are satisfied with service of
J&K Bank .
SUGGESTIONS:
As it is already mention in my report that J&K Bank is providing
service to its customers as better as any other bank but there is still
some changes need to be introduced. Technologically, J&K Bank is
as competitive as any other bank but still the J&K Bank management
running on conventional line of business. The advertisement medias
which are used by its private competitors like ICICI, HDFC Bank
more rapidly and aggressively as it not in case of J&K Bank. The
advertisement medias used by J&K Bank does not match with its
competitors. So, management of J&K Bank should change it policy
of strategic media policy.
The management of J&K Bank should give more consideration to
marketing through advertisement and direct marketing as it is used
by its competitors like ICICI , HDFC etc. which hire mediators to
reach more and more customers.
SCHEDULE
Related to J&K Bank Customers
1. Personal information
Name :
Gender:
Address:
PH/Mob:
2. Age Group
Below 20 Between 20-35
Between 35-50 Above 50
3. How long you are dealing with J&K Bank.
1 year 1-5 year

5-10 year More than 10 year
4. What type of Account do you have?
a) Saving A/C b) Current A/C
c) Fixed A/C d) Recurring A/C
e) Multibenefit Saving deposite Scheme f) Flexideposite scheme
g) Child deposit
5. How do you feel dealing with J&K Bank?
a) Highly safe b) Safe
c) Not very safe
6. Are you also dealing with another bank
Yes No
7. If Yes, in which bank do you have an account __________.
8. Do you know J&K Bank have been rated as one of the best in India?
Yes No
9. Are you aware of different scheme offered by J&K Bank
Yes No
10. How do you come to know about different scheme offered by J&K Bank?
a) Branch b) Friend/ Relatives
c) Advertisement medias d) Internet
11. Is there is any following reason for selecting J&K Bank only?
a) Provides better service than any other bank.
b) Because it is state’s local bank.
c) selected because it is located near your house.
d) Selected on some recommendation.
12. What do you feel bottle neck in gathering information of the Bank Product?
a) Indifferent of Bank officials.
b) Lack of proper advertisement.
c) Difficult access to bank official.
d) No such problem exist.
13. Do you have avail any loan from J&K Bank.
Yes No
14. If Yes, Is there is any following loan you avail?
a) Home loan b) Car loan
c) Education loan. d) Personal loan
e) Another type of loan.
15. Do you use ATM facility offered by J&K Bank.
Yes No
16. Do you know J&K Bank offers financial assistance for
Business/Firm/Manufacturing units.
Yes No
17. Are you satisfied with the service of J&K Bank?
Yes No
18. Have you any suggestion for more improvement in J&K Bank service?
________________________________________________________
________________________________________________________
________________________________________________________.

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PROJECT REPORT

“COMPARISON OF RETAIL LOANS OF

A dissertation submitted in partial fulfillment of the

MASTER DEGREE IN BUSINESS ADMINISTRATION

INSTITUTE OF MANAGEMENT SCIENCE

I, Shagun Sharma, take this opportunity to extent my thanks to all those

people who helped me through the successful completion of this project

It gives me a great pleasure to acknowledge my deep and sincere

gratitude to Mr. A. S. Sambyal, Executive Manager Personnel J&K

Bank Ltd.Zonal office (Central), Branches Department, Jammu for this

inspiration and constant encouragement.

I whole heartedly extend my sense of gratitude towards all the members

valuable suggestions has helped me a lot in successfully accomplishing

project in various, organizations for their whole hearted cooperation,

without them this project would have not been possible.

Summer Training is necessary part of elementary theoretical study. It

enforces a student to be well conversant with practical aspect of

Ltd. Zonal Office(central), Jammu as my summer training. I was given

competitors. My aim was to provide essential information to the Bank.

have analyzed the retail loans with those of the competitors

help the bank to analysis its competitor’s performance.

 Introduction about the Financial Sector

 Indian Banking introduction

 Introduction about Project

 A brief profile of the Competitors banks which include:

 State bank of India

 Punjab national bank

 A brief profile on Personal Loans of :

 The Competitors banks

 A brief profile on Education Loans of :

 The Competitors banks

 A brief profile on Housing Loans of :

 The Competitors banks

 A brief profile on Car Loans of :

 The Competitors banks

INTRODUCTION TO FINANCIAL SECTOR

Reforms are continuing as part of the overall structural reforms aimed at

improving the productivity and efficiency of the economy. The role of

an integrated financial infrastructure is to stimulate and sustain

The US$ 28 billion Indian financial sector has grown at around 15

corporate and other borrowers. Banks, capital market participants and

insurers have developed a wide range of products and services to suit

varied customer requirements. The Reserve Bank of India (RBI) has

successfully introduced a regime where interest rates are more in line

with market forces

Financial institutions have combated the reduction in interest rates

and pressure on their margins by constantly innovating and targeting

attractive consumer segments. Banks and trade financiers have also

played an important role in promoting foreign trade of the country

a branch network exceeding 66,000 branches across the country.

banks cater to short and medium term financing requirements, national

level and state level financial institutions meet longer-term

requirements. This distinction is getting blurred with commercial banks

extending project finance. The total disbursements of the financial

institutions in 2001 were US$ 14 billion.

Banking today has transformed into a technology intensive and

customer friendly model with a focus on convenience. The sector is set

to witness the emergence of financial supermarkets in the form of

universal banks providing a suite of services from retail to corporate

banking and industrial lending to investment banking. While corporate

banking is clearly the largest segment, personal financial services is the

highest growth segment.

The recent favorable government policies for enhancing limits of

foreign investments to 49 per cent among other key initiatives have