COMPARATIVE STUDY ON SERVICES PROVIDED BY HDFC

AND SBI BANK.

A Project Submitted to
University of Mumbai for partial completion of degree of
Bachelor of Commerce (Banking and Insurance)
Under the Faculty of Commerce

By
Saurabh Ramesh Gautam

Under the Guidance of

Ms. Prajakta Paralkar

Smt. MMK College of Commerce & Economics

Bandra West, Mumbai 400050.
April 2023.

1
COMPARATIVE STUDY ON SERVICES PROVIDED BY HDFC
AND SBI BANK.

A Project Submitted to
University of Mumbai for partial completion of degree of
Bachelor of Commerce (Banking and Insurance)
Under the Faculty of Commerce

By
Saurabh Ramesh Gautam

Under the Guidance of

Ms. Prajakta Paralkar

Smt. MMK College of Commerce & Economics

Bandra West, Mumbai 400050.
April 2023.

2
 S.M.T M.M. K College of Commerce and Economics
[Adv. Nari Gurushani Road, T.P.S 111, Bandra (W) Mumbai-50]

CERTIFICATE

This is to certify that Mr. Saurabh Ramesh Gautam has worked and duly completed his
Project Work for the degree of Bachelor in Commerce (Banking and Insurance) under the
Faculty of Commerce in the subject of Project Work and his project is entitled,
“Comparative study on service provided by HDFC and SBI Bank” under my supervision.

I further certify that the entire work has been done by the learner under my guidance and that
no part of it has been submitted previously for any Degree or Diploma of any University.

It is his own work and facts reported by her personal findings and investigations.

Signature of External Examiner Name and Signature of Guiding Teacher

Date of Submission Signature of Principal

3
 DECLARATION

I the undersigned Mr. Gautam Saurabh here by, declare that the work embodied in this project work titled
“Comparative study on service provided by HDFC and SBI Bank”, forms my own contribution to the
Research work carried out under the guidance of Ms. Prajakta Paralkar is a result of my own research work
and has not been previously submitted to any other University for any other Degree/ Diploma to this or any
other University. Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography. I, here by further declare that all information of this document has
been obtained and presented in accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by
Name and signature of the Guiding Teacher

4
 ACKNOWLEDGEMENT

I would like to acknowledge the following as being the idea listic channels and fresh
dimensions in completion of this project.

I take this opportunity to thank the University of Mumbai for giving me a chance to do this
project.

I would like to thank my Principal, Dr. Kishore Peshori for providing me the necessary
facilities required for completion of this project.

I would like to thank my Coordinator Prajakta Paralkar, for her moral support and guidance.

I would also like to express me sincere gratitude towards my Project guide Ms. Prajakta Paralkar
whose guidance and care made the project successful.

I would like to thank my College library, for having provided various reference books and
magazines related to my project.
Lastly, I would like to thank each and every person who directly or indirectly helped me in
completion of the project especially my parents and peers who supported me throughout the
project.

5
 TABLE OF CONTENTS

CHAPTER NO.
TITLE PAGE NO.
CHAPTER 1 INTRODUCION 8-56
1.1 History of banking system
1.2 Public Sector Bank
1.3 Private Sector Bank
1.4 Introduction to SBI Bank
1.5 Introduction to HDFC Bank
1.6 Compare SBI with HDFC

CHAPTER 2 RESEARCH METHODOLOGY 57-61

2.1 Objectives of Study
2.2 Scope of Study
2.3 Hypothesis
2.4 Limitation of Study
2.5 Research Design
2.6 Data collection

CHAPTER 3 LITERATURE REVIEW 62-66

CHAPTER 4 DATA ANALYSIS, INTERPRETATION AND 66-82

REPRESENTATION
4.1 Primary Data
4.2 Secondary Data

CHAPTER 5 CONCLUSION & SUGGESTION 83-85

5.1 Conclusion
5.2 Findings
5.3 Recommendation

 BIBLOGRAPHY 86-87

6
 CHAPTER 1: INTRODUCTION

Modern banking in India originated in the last decade of the 18th century. Among the
first banks were the Bank of Hindustan, which was established in 1770 and liquidated in 1829–
32; and the General Bank of India, established in 1786 but failed in 1791.

7
The largest and the oldest bank which is still in existence is the State Bank of India (SBI). It
originated and started working as the Bank of Calcutta in mid-June 1806. In 1809, it was
renamed as the Bank of Bengal. This was one of the three banks founded by a presidency
government, the other two were the Bank of Bombay in 1840 and the Bank of Madras in 1843.
The three banks were merged in 1921 to form the Imperial Bank of India, which upon India's
independence, became the State Bank of India in 1955. For many years, the presidency banks
had acted as quasi-central banks, as did their successors, until the Reserve Bank of India was
established in 1935, under the Reserve Bank of India Act, 1934.

In 1960, the State Banks of India was given control of eight state-associated banks under the
State Bank of India (Subsidiary Banks) Act, 1959. These are now called its associate banks. In
1969, the Government of India nationalised 14 major private banks; one of the big banks
was Bank of India. In 1980, 6 more private banks were nationalised. These nationalised banks
are the majority of lenders in the Indian economy. They dominate the banking sector because
of their large size and widespread networks.

The Indian banking sector is broadly classified into scheduled and non-scheduled banks. The
scheduled banks are those included under the 2nd Schedule of the Reserve Bank of India Act,
1934. The scheduled banks are further classified into: nationalised banks; State Bank of
India and its associates; Regional Rural Banks (RRBs); foreign banks; and other Indian private
sector banks. The SBI has merged its Associate banks into itself to create the largest Bank in
India on 01 April 2017. With this merger SBI has a global ranking of 236 on Fortune 500 index.
The term commercial banks refer to both scheduled and non-scheduled commercial banks
regulated under the Banking Regulation Act, 1949.

Generally the supply, product range and reach of banking in India is fairly mature-even though
reach in rural India and to the poor still remains a challenge. The government has developed
initiatives to address this through the State Bank of India expanding its branch network and
through the National Bank for Agriculture and Rural Development (NABARD) with facilities
like microfinance.

8
1.1 HISTORY OF BANKING SYSTEM IN
INDIA
Ancient India:
The Vedas are the ancient Indian texts mention the concept of usury, with the
word kusidin translated as "usurer". The Sutras (700–100 BCE) and the Jatakas (600–400
BCE) also mention usury. Texts of this period also
condemnedusury: Vasishtha forbade Brahmin and Kshatriya varnas from participating in
usury. By the 2nd century CE, usury became more acceptable. The Manu smriti considered
usury an acceptable means of acquiring wealth or leading a livelihood. It also considered
money lending above a certain rate and different ceiling rates for different castes a grave sin.

The Jatakas, Dharma shastras and Kautilya also mention the existence of loan deeds,
called rnapatra, rnapanna, or rnalekhaya.

Later during the Mauryan period (321–185 BCE), an instrument called adesha was in use,
which was an order on a banker directing him to pay the sum on the note to a third person,
which corresponds to the definition of a modern bill of exchange. The considerable use of these
instruments has been recorded [citation needed]. In large towns, merchants also gave letters of
credit to one another.

Medieval era:

The use of loan deeds continued into the Mughal era and were called dastawez.[what language
is this? Two types of loans deeds have been recorded. The dastawez-e-indult lab was payable
on demand and dastawez-e-miadi was payable after a stipulated time. The use of payment
orders by royal treasuries, called barattes, have been also recorded. There are also records of
Indian bankers using issuing bills of exchange on foreign countries. The evolution of hundis, a
type of credit instrument, also occurred during this period and remain in use.

9
Colonial era:

During the period of British rule merchants established the Union Bank of Calcutta in
1829, first as a private joint stock association, then partnership. Its proprietors were the owners
of the earlier Commercial Bank and the Calcutta Bank, who by mutual consent created Union
Bank to replace these two banks. In 1840 it established an agency at Singapore, and closed the
one at Mirza pore that it had opened in the previous year. Also in 1840 the Bank revealed that
it had been the subject of a fraud by the bank's accountant. Union Bank was incorporated in
1845 but failed in 1848, having been insolvent for some time and having used new money from
depositors to pay its dividends.

The Allahabad Bank, established in 1865 and still functioning today, is the oldest Joint Stock
bank in India, it was not the first though. That honour belongs to the Bank of Upper India,
which was established in 1863 and survived until 1913, when it failed, with some of its assets
and liabilities being transferred to the Alliance Bank of Simla.

Foreign banks too started to appear, particularly in Calcutta, in the 1860s. Grind lays
Bank opened its first branch in Calcutta in 1864. The Comptoir d'Escompte de Paris opened a
branch in Calcutta in 1860, and another in Bombay in 1862; branches followed
in Madras and Pondicherry, then a French possession. HSBC established itself in Bengal in
1869. Calcutta was the most active trading port in India, mainly due to the trade of the British
Empire, and so became a banking centre.

The first entirely Indian joint stock bank was the Oudh Commercial Bank, established in 1881
in Faizabad. It failed in 1958. The next was the Punjab National Bank, established in Lahore in
1894, which has survived to the present and is now one of the largest banks in India.

Around the turn of the 20th Century, the Indian economy was passing through a relative period
of stability. Around five decades had elapsed since the Indian rebellion, and the social,
industrial and other infrastructure had improved. Indians had established small banks, most of
which served particular ethnic and religious communities.

The presidency banks dominated banking in India but there were also some exchange banks
and a number of Indian joint stock banks. All these banks operated in different segments of the
economy. The exchange banks, mostly owned by Europeans, concentrated on financing foreign
trade. Indian joint stock banks were generally undercapitalised and lacked the experience and
maturity to compete with the presidency and exchange banks. This segmentation let Lord

10
Curzon to observe, "In respect of banking it seems we are behind the times. We are like some
old-fashioned sailing ship, divided by solid wooden bulkheads into separate and cumbersome
compartments."[citation needed]

The period between 1906 and 1911 saw the establishment of banks inspired by
the Swadeshi movement. The Swadeshi movement inspired local businessmen and political
figures to found banks of and for the Indian community. A number of banks established then
have survived to the present such as Catholic Syrian Bank, The South Indian Bank, Bank of
India, Corporation Bank, Indian Bank, Bank of Baroda, Canara Bank and Central Bank of
India.

The fervour of Swadeshi movement led to the establishment of many private banks in Dakshina
Kannada and Udupi district, which were unified earlier and known by the name South Canara
(South Kanara) district. Four nationalised banks started in this district and also a leading private
sector bank. Hence undivided Dakshina Kannada district is known as "Cradle of Indian
Banking".

The inaugural officeholder was the Britisher Sir Osborne Smith (1 April 1935), while C. D.
Deshmukh (11 August 1943) was the first Indian governor. On December 12, 2018,
Shaktikanta Das, who was the finance secretary with the Government of India, begins his
journey as the new RBI Governor, taking charge from Urjit R Patel.

During the First World War (1914–1918) through the end of the Second World War (1939–
1945), and two years thereafter until the independence of India were challenging for Indian
banking. The years of the First World War were turbulent, and it took its toll with banks simply
collapsing despite the Indian economy gaining indirect boost due to war-related economic
activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the following
table:

11
 Number of
Authorised Capital Paid-up Capital
Years banks
(₹ Lakhs) (₹ Lakhs)
that failed

1913 12 274 35

1914 42 710 109

1915 11 56 5

1916 13 231 4

1917 9 76 25

1
1918 7 209

Post-Independence:

During 1938–46, bank branch offices trebled to 3,469 and deposits quadrupled to ₹962 crore.
Nevertheless, the partition of India in 1947 adversely impacted the economies
of Punjab and West Bengal, paralysing banking activities for months.
India's independence marked the end of a regime of the Laissez-faire for the Indian banking.
The Government of India initiated measures to play an active role in the economic life of the
nation, and the Industrial Policy Resolution adopted by the government in 1948 envisaged
a mixed economy. This resulted in greater involvement of the state in different segments of the
economy including banking and finance. The major steps to regulate banking included:

 The Reserve Bank of India, India's central banking authority, was established in April
1935, but was nationalized on 1 January 1949 under the terms of the Reserve Bank of India
(Transfer to Public Ownership) Act, 1948 (RBI, 2005b).
 In 1949, the Banking Regulation Act was enacted, which empowered the Reserve Bank of
India (RBI) to regulate, control, and inspect the banks in India.

12
 The Banking Regulation Act also provided that no new bank or branch of an existing bank
could be opened without a license from the RBI, and no two banks could have common
director.

Nationalisation in 1969:

Despite the provisions, control and regulations of the Reserve Bank of India, banks in India
except the State Bank of India (SBI), remain owned and operated by private persons. By the
1960s, the Indian banking industry had become an important tool to facilitate the development
of the Indian economy. At the same time, it had emerged as a large employer, and a debate had
ensued about the nationalization of the banking industry. Indira Gandhi, the then Prime
Minister of India, expressed the intention of the Government of India in the annual conference
of the All India Congress Meeting in a paper entitled Stray thoughts on Bank Nationalization.

Thereafter, the Government of India issued the Banking Companies (Acquisition and Transfer
of Undertakings) Ordinance, 1969 and nationalized the 14 largest commercial banks with
effect from the midnight of 19 July 1969. These banks contained 85 percent of bank deposits
in the country. Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it
received presidential approval on 9 August 1969.

The following banks were nationalized in 1969:

 Allahabad Bank (now Indian Bank)

 Bank of Baroda
 Bank of India
 Bank of Maharashtra
 Central Bank of India
 Canara Bank
 Dena Bank (now Bank of Baroda)
 Indian Bank
 Indian Overseas Bank
 Punjab National Bank
 Syndicate Bank (now Canara Bank)

13
 UCO Bank
 Union Bank of India
 United Bank of India( now Punjab National Bank)

Nationalisation in 1980:

A second round of nationalizations of six more commercial banks followed in 1980. The stated
reason for the nationalization was to give the government more control of credit delivery. With
the second round of nationalizations, the Government of India controlled around 91% of the
banking business of India.

The following banks were nationalized in 1980:

 Punjab and Sind Bank

 Vijaya Bank (Now Bank of Baroda)
 Oriental Bank of India (now Punjab National Bank)
 Corporation Bank (now Union Bank of India)
 Andhra Bank (now Union Bank of India)
 New Bank of India (now Punjab National Bank)

Later on, in the year 1993, the government merged New Bank of India with Punjab National
Bank. It was the only merger between nationalised banks and resulted in the reduction of the
number of nationalised banks from 20 to 19. Until the 1990s, the nationalized banks grew at a
pace of around 4%, closer to the average growth rate of the Indian economy.

Liberalisation in the 1990s:

In the early 1990s, the then government embarked on a policy of liberalisation, licensing a
small number of private banks. These came to be known as New Generation tech-savvy banks,
and included Global Trust Bank (the first of such new generation banks to be set up), which
later amalgamated with Oriental Bank of Commerce, IndusInd Bank, UTI Bank (since
renamed Axis Bank), ICICI Bank and HDFC Bank. This move, along with the rapid growth in
the economy of India, revitalised the banking sector in India, which has seen rapid growth with
strong contribution from all the three sectors of banks, namely, government banks, private
banks and foreign banks.

14
The next stage for the Indian banking has been set up, with proposed relaxation of norms for
foreign direct investment. All foreign investors in banks may be given voting rights that could
exceed the present cap of 10% at present. In 2019, Bandhan bank specifically, increased the
foreign investment percentage limit to 49%. It has gone up to 74% with some
restrictions.[citation needed]

The new policy shook the Banking sector in India completely. Bankers, till this time, were used
to the 4–6–4 method (borrow at 4%; lend at 6%; go home at 4) of functioning. The new wave
ushered in a modern outlook and tech-savvy methods of working for traditional banks. All this
led to the retail boom in India. People demanded more from their banks and received more.

1.2 PUBLIC SECTOR BANK:

Public Sector Banks (PSBs) are a major type of bank in India, where a majority stake (i.e.
more than 50%) is held by the government. The shares of these banks are listed on stock
exchanges.

A Public Sector bank is one in which, the Government of India holds a majority stake. It is as
good as the government running the bank. Since the public decide on who runs the government,
these banks that are fully/partially owned by the government are called public sector banks

 History

Emergence of public sector banks

The Central Government entered the banking business with the nationalization of the Imperial
Bank of India in 1955. A 60% stake was taken by the Reserve Bank of India and the new bank
was named State Bank of India. The seven other state banks became subsidiaries of the new
bank in 1959 when the State Bank of India (Subsidiary Banks) Act, 1959 was passed by
the Union government.

The next major government intervention in banking took place on 19 July 1969 when
the Indira government nationalised an additional 14 major banks. The total deposits in the

15
banks nationalised in 1969 amounted to 50 crores. This move increased the presence of
nationalised banks in India, with 84% of the total branches coming under government control.

Before the economic liberalisation

The share of the banking sector held by the public banks continued to grow through the 1980s,
and by 1991 public sector banks accounted for 90% of the banking sector. A year later, in
March, 1992, the combined total of branches held by public sector banks was 60,646 across
India, and deposits accounted for ₹1,10,000 crore. The majority of these banks was profitable,
with only one out of the 21 public sector banks reporting a loss.

Liberalisation in the 2000s

The nationalised banks reported a combined loss of ₹1160 crores. However, the early 2000s
saw a reversal of this trend, such that in 2002-03 a profit of ₹7780 crores by the public sector
banks: a trend that continued throughout the decade, with a ₹16856 crore profit in 2008–
2009.[3]

Mergers

The consolidation of SBI-associated banks started first by State Bank of India merging its
subsidiary State Bank of Saurashtra with itself on 13 August 2008.[4] Thereafter it
merged State Bank of Indore with itself on August 27, 2010.[5] The remaining subsidiaries,
namely the State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State Bank of
Mysore, State Bank of Patiala and State Bank of Travancore, and Bharatiya Mahila Bank were
merged with State Bank of India with effect from 1 April 2017.

Vijaya Bank and Dena Bank were merged into Bank of Baroda in 2018.[6] IDBI Bank was
categorised as a private bank with effect from January 2019.[7]

On 30 August 2019, Finance Minister Nirmala Sitharaman announced the government's plan
for further consolidation of public sector banks: Indian Bank's merger with Allahabad
Bank (anchor bank - Indian Bank); Punjab National Bank's merger with Oriental Bank of
Commerce and United Bank (anchor bank - Punjab National Bank); Union Bank of India's
merger with Andhra Bank and Corporation Bank (anchor bank - Union Bank of India);
and Canara Bank's merger with Syndicate Bank (anchor bank - Canara Bank).[8] The mergers
took effect from 1 April, 2020.

16
Public Sector Banks

1. Public Sector Banks (Government Shareholding %, as of 1st January 2021)

2. State Bank of India (56.92%)
3. Punjab National Bank (85.59%)
4. Bank of Baroda (71.60%)
5. Canara Bank (78.52%)
6. Union Bank of India (89.07%)
7. Indian Bank (88.06%)
8. Bank of India (89.10%)
9. Central Bank of India (92.39%)
10. Indian Overseas Bank (95.84%)
11. UCO Bank (94.39%)
12. Bank of Maharashtra (92.49%)
13. Punjab and Sind Bank (83.06%)
14. India Post Payments Bank (100%) - pvt bank

1.3 PRIVATE SECTOR BANK:

Private sector banks are those banks, where private individuals or private companies own a
major part of the bank’s equity. Even though these banks follow the nation’s central bank’s
guidelines, but they can formulate their independent financial strategy for the customers.

Private Sector Banks refer to those banks where the majority of the stake is maintained by
private individuals. Examples of private sector banks are ICICI Bank, HDFC Bank, IndusInd
Bank, and Axis Bank, etc.

17
In India, there are two types of private sector banks

1. Old Private Sector Banks (emerged before 1968).

2. New Private Sector Banks (emerged after 1968).

 History

The regulation of interest rates has largely been dismantled and banks are expected to function
under a free-market-based environment, managing credit, interest rate and investment risks
within the prudential framework of the central bank.

These prudential norms have evolved since the 1990s in consonance with international best
practices. In the current environment, with the exception of restrictions to entry, all groups of
commercial banks by and large function under a homogeneous regulatory and supervisory
environment.

After the nationalisation of major commercial banks in 1969, for well over two decades no new
banks were allowed to be set up in the private sector. In the early 1990s, guidelines for licensing
of new banks in the private sector were issued in January 1993 and subsequently revised in
January 2001.The objective was to instil greater competition in the banking system to increase
productivity and efficiency.

Only 12 banks were allowed under these guidelines. Large industrial houses were not permitted
to promote new banks.

There are 27 public sector banks and 22 private sector banks operating currently, of which only
seven are new private sector banks. The overall performance of private sector banks since 1990
has not been unsatisfactory. The share of private sector banks in total deposits increased from
4 per cent in 1990 to 18 per cent in 2010 and the share of credit increased by the same order,
though their share in total number of offices increased to only 12 per cent from 7 per cent
during the same period.

While the share of priority sector lending to total adjusted net bank credit showed hardly any
increase and remained flat at around 42 per cent for public sector banks, the share of private
sector banks increased from 37 per cent to 46 per cent.

18
 In terms of financial services and advancement in information technology application, private
sector banks are not behind their counterparts, which is well-acknowledged. If industrial houses
are allowed entry, despite all restrictions placed on their operations, they are bound to pose
formidable competition to both public sector banks and the existing private sector banks.

1.4 STATE BANK OF INDIA

State Bank of India (SBI) is an Indian multinational, public sector banking and financial
services statutory body headquartered in Mumbai, Maharashtra. SBI is the 43rd largest bank in
the world and ranked 221st in the Fortune Global 500 list of the world's biggest corporations
of 2020, being the only Indian bank on the list. A nationalised bank, it is the largest in India
with a 23% market share by assets and a 25% share of the total loan and deposits market.

19
The bank descends from the Bank of Calcutta, founded in 1806 via the Imperial Bank of India,
making it the oldest commercial bank in the Indian subcontinent. The Bank of Madras merged
into the other two presidency banks in British India, the Bank of Calcutta and the Bank of
Bombay, to form the Imperial Bank of India, which in turn became the State Bank of India in
1955. The Government of India took control of the Imperial Bank of India in 1955,
with Reserve Bank of India (India's central bank) taking a 60% stake, renaming it State Bank
of India.

 History:

Stamp dedicated to the State Bank of India in 2005

Share of the Bank of Bengal, issued 13 May 1876

Seal of Imperial Bank of India

20
The roots of State Bank of India lie in the first decade of the 19th century when the Bank of
Calcutta later renamed the Bank of Bengal, was established on 2 June 1806. The Bank of
Bengal was one of three Presidency banks, the other two being the Bank of
Bombay (incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July
1843). All three Presidency banks were incorporated as joint stock companies and were the
result of royal charters. These three banks received the exclusive right to issue paper currency
till 1861 when, with the Paper Currency Act, the right was taken over by the Government of
India. The Presidency banks amalgamated on 27 January 1921, and the re-organised banking
entity took as its name Imperial Bank of India. The Imperial Bank of India remained a joint-
stock company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,
which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On
1 July 1955, the Imperial Bank of India became the State Bank of India. In 2008,
the Government of India acquired the Reserve Bank of India's stake in SBI so as to remove
any conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act. This made
eight banks that had belonged to princely states into subsidiaries of SBI. This was at the time
of the First Five Year Plan, which prioritised the development of rural India. The government
integrated these banks into the State Bank of India system to expand its rural outreach. In 1963
SBI merged State Bank of Jaipur (est. 1943) and State Bank of Bikaner (est.1944).

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which SBI
acquired in 1969, together with its 28 branches. The next year SBI acquired National Bank of
Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired Krishnaram
Baldeo Bank, which had been established in 1916 in Gwalior State, under the patronage of
Maharaja Madho Rao Scindia. The bank had been the Dukan Pichadi, a small moneylender,
owned by the Maharaja. The new bank's first manager was Jall N. Broacha, a Parsi. In 1985,
SBI acquired the Bank of Cochin in Kerala, which had 120 branches. SBI was the acquirer as
its affiliate, the State Bank of Travancore, already had an extensive network in Kerala.

There was, even before it actually happened, a proposal to merge all the associate banks into
SBI to create a single very large bank and streamline operations.

The first step towards unification occurred on 13 August 2008 when State Bank of
Saurashtra merged with SBI, reducing the number of associate state banks from seven to six.

21
On 19 June 2009, the SBI board approved the absorption of State Bank of Indore, in which SBI
held 98.3%. (Individuals who held the shares prior to its takeover by the government held the
balance of 1.7%.)

The acquisition of State Bank of Indore added 470 branches to SBI's existing network of
branches. Also, following the acquisition, SBI's total assets approached ₹10 trillion. The total
assets of SBI and the State Bank of Indore were ₹9,981,190 million as of March 2009. The
process of merging of State Bank of Indore was completed by April 2010, and the SBIndore
branches started functioning as SBI branches on 26 August 2010.

On 7 October 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank. Mrs. Bhattacharya received an extension of two years of service to
merge into SBI the five remaining associate banks.

 The current position of the State Bank of India (SBI Bank)

The State Bank of India is a giant in its own right, and there are several reasons that contribute
to that. It is the oldest bank in the country currently if you go by the size of its balance sheet.
Additionally, its market capitalization, hundreds of bank branches and the number of profits
are helping it give stiff competition to other private sector banks in the country.

Presently, the bank is getting into a couple of new business with strategic tie-ups, which have
quite a large growth potential. Some of these tie-ups are General Insurance, Pension Funds,
Private Equity, Custodial Services, Mobile Banking, Structured Products, Advisory Services,
and Point of Sale Merchant Acquisition etc.

Additionally, it is concentrating on wholesale banking capacities and the top end of the
market, in order to offer India’s corporate sector with numerous services and products.

Gaining entry in the field of derivative instruments and structured products along with the
consolidation of the global treasury operations is also something they are focusing on now.

As of now, the State Bank of India is the biggest arranger responsible for external
commercial borrowings in the country and is the biggest provider of infrastructure debt. In
addition, it is the sole Indian bank to be a part of the Fortune 500 list.

22
Apart from banking, State Bank of India was also associated with non-profit ventures since
1973, such as Community Services Banking. In such cases, administrative offices and
branches all over the country sponsor and take part in a huge number of social causes and
welfare activities.

Additionally, they had also launched three digital banking facilities, in order to make
financial transaction an easier affair for their customers.

Two of the digital banking facilities specialize in providing their services at the customers’
doorstep by utilizing the method of TAB banking (One for housing loan applicants and the
other for customers looking to open a savings account).
The third banking facility specializes in the KYC process (Know Your Customer).

 OBJECTIVES OF SBI:

 Accept deposit
 Gives loans and advances
 Invests and Borrows
 Deals in bill of exchange
 Deals in gold and silver
 Deals in foreign currencies
 Underwrite issues
 Housing schemes

 SERVICES OF SBI

 SBI’s non- banking subsidiaries/joint ventures are market leaders in their respective areas
and provide wide ranging services, which include

 life insurance
 merchant banking

23
  mutual funds
 credit cards
 factoring services
 security trading and primary dealership etc…

SBI Group a truly large financial supermarket and India’s financial icon

Other Services:

 Agriculture/Rural Banking
 NRI Services
 ATM Services
 Demat Services
 Corporate Banking
 Internet Banking
 Mobile Banking
 International Banking
 Safe Deposit Locker
 RBIEFT
 E-Pay
 E-Rail
 Broking Services

 Ranking:

SBI is one of the Big Four banks of India, along with ICICI Bank, Bank of Baroda and
Punjab National Bank. As of 2016, SBI is ranked 232nd on the Fortune Global 500 list of the
world’s biggest corporations, and stands as the proxy for the Indian Economy. SBI was
ranked 152nd in The Forbes list of Global 2000 firms in May 2015. The Government of India
owns 58.60% of SBI and thus is the largest shareholder of SBI, a Fortune 500 company.

24
 Listings and shareholding:

As on 31 March 2017, Government of India held around 61.23% equity shares in SBI.
The Life Insurance Corporation of India, itself state-owned, is the largest non-promoter
shareholder in the company with 8.82% shareholding.

Shareholders Shareholding Promoters: Government of India 56.92% FIIs/GDRs/OCBs/NRIs

10.94% Banks & Insurance Companies10.63% Mutual Funds & UTI 13.72% Others07.79%
Total100.0%

The equity shares of SBI are listed on the Bombay Stock Exchange, where it is a constituent
of the BSE SENSEX index, and the National Stock Exchange of India, where it is a
constituent of the CNX Nifty. Its Global Depository Receipts (GDRs) are listed on
the London Stock Exchange.

 Network:
State Bank of India is India's largest bank with a network of over 15000 branches
and 5 associate banks located even in the remotest parts of India. State Bank of India (SBI)
offers a wide range of banking products and services to corporate and retail customers

 SBI PERSONAL LOANS:

SBI offers various types of personal loans such as Xpress Credit Loan, SBI Pension Loan,
Xpress Elite and Pre-approved Personal Loans that cater to the needs of different borrowers.
Personal loans offered by SBI may be used for various purposes such as business expansion,
debt consolidation, foreign travel expenses, marriage, home renovation, medical emergency,
etc. Currently SBI offers personal loans of up to Rs. 20 lakhs with interest rates starting from
9.60% p.a. onwards.

Features of SBI Personal Loan:

Loan amount: SBI offers a loan amount as high as Rs. 20 lakh to fulfil various personal
needs with a single loan

25
Loan schemes: SBI offers specific loan schemes to different categories of borrowers such as
pensioners, salaried and self-employed

Flexible tenure: If you opt for SBI personal loan, you can repay it within a flexible tenure
ranging from 6 months to 6 years

Easy application: SBI Personal loan can be availed online without any hassle. The process
involves minimum documentation and quick processing

Eligibility Criteria:

The following are the key eligibility criteria for different types of SBI personal loans
currently on offer:

A. SBI Xpress Credit Personal Loan

You must have a salary account with SBI

You should be an employee of central/state/quasi government organization/central or state

govt. PSUs/educational institutions of national repute/selected corporates with or without
relationship with the bank

Your minimum monthly income should be Rs. 15,000

Your EMI/NMI ratio should be less than 50%

B. SBI Xpress Bandhan

You should not be having a salary account with SBI

You should be an employee of Central/State Governments/Defence Establishments, PSUs,

26
Quasi Government Bodies, Select Rated Corporates, Educational Institutions of National
Repute

Your minimum monthly income should be Rs. 50,000

Your EMI/NMI ratio should be up to 50%

C. SBI Pension Loan – The following are the key features of the SBI pension loan for
different categories of applicants:

For Central & State Government Pensioners:

The pensioner’s age should be below 76 years

Must have SBI pension account and the account needs to be maintained in good standing
during the loan tenure

Applicant needs to submit declaration to treasury preventing transfer pension payment to

pension account of any other bank till a NOC is issued by SBI

For Defence Pensioners:

Applicant should be a pensioner of Armed Forces such as Navy, Army, Air Force, Coast
Guard, Para-military Forces (e.g. CRPF, CISF, BSF, ITBP, etc.), Rashtriya Rifles, Assam
Rifles, etc.

Pension payment order of the prospective applicant should be maintained with SBI

Maximum age for loan eligibility is less than 76 years.

For Family Pensioners:

Family pensioners consist of authorized members of the pension recipient’s family who are
eligible to receive pension after the death of the pensioner.

27
The maximum age of family pensioner should be 76 years to be eligible for the SBI Pension
Loan

D. Pre-approved Personal Loans to the Salaried & Pensioners on YONO

Applicant must have a salary or a pension account with SBI.

A pre-approved SBI Personal Loan offer must be available when applicant logs into YONO

E. Pre-approved Personal Loans to Non-salaried (PAPL) On YONO

You should be having a savings account with SBI with regular deposits

Your monthly balance should be beyond a specific threshold (threshold depends on the type
of SBI a/c)

Documents Required for Loan Application:

The documents to avail SBI personal loan may vary depending upon the personal loan
category you opt for. However, the list of basic documents is as follows:

Identity proof: Passport, PAN, Voter Identity Card, Driving License, Aadhaar Card

Address proof: Ration Card, Bank Account Statement, Passport, Driving License, Electricity
Bill, Telephone Bill, Sale Deed/Property purchase agreement (for owned properties),
Aadhaar Card

Income proof: Bank Account Statement, Salary Slips, ITR, Form 16

 SBI Home Loan:

The home loan offered by SBI is an ideal choice of everyone. The bank offers lowest home

28
loan interest rate, SBI home loan is what every home loan borrower seeks. Read this article to
know details of the product to understand and apply for it in time of need.

SBI Home Loan Features:

SBI home loan at zero processing fee

SBI home loan balance transfer at zero processing fee

SBI Home Loan Eligibility Criteria:

SBI provides home loans to salaried, self-employed, employees of central/state

government, self-help groups and defense personnel belong to army, navy and air force. For
your reference, below is
the table showing SBI home loan eligibility.
0E0l000000000ig.i0b0ility Criteria for Salaried for Self-employed Minimum Age18 Years21
Years Maximum Age70 Years70 Years Mini0mum Income INR 1,80,000 (p.a.) INR
1,80,000 (p.a.) Loan Amount Offered Customized Customized Loan Tenure Up to 30 Years
Up to 30 Years Current Experience2 Years3 Years

SBI Home Loan Eligibility for Non-Salaried People

Resident Type: Resident Indian Wherever the applicant is Proprietor of a

Proprietorship firm or is one of the partners in a Partnership Firm or is one of the Directors in
a Company, the firm/Company:

Should be in existence for at least last 3 years

Must have earned Net Profit in the last two years

Existing Credit Facilities, if any, should be Regular and Standard. Opinion Report in this
regard will be obtained from the existing Bankers.

29
Wherever the proposed House Property is acquired in joint names of the Proprietor and the
Proprietary Firm, the firm should be our existing borrower or a debt free entity.

Minimum Age: 18 years

Loan Tenure: up to 30 years.

Loan Amount: Minimum: INR 50,000/- & Maximum: INR 50 crores.

SBI Home Loan Documents

The list of papers/documents required for SBI home loans is a little different depending on
the profession.

Documents required for SBI home loan for all applicants:

Employer Identity Card

Loan Application: Completed loan application form duly filled in affixed with 3 Passport
size photographs

Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card

Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity
Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhaar Card

Property Papers for SBI home loans:

Permission for construction (where applicable)

Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement

for Sale

Occupancy Certificate (in case of ready to move property)

30
Share Certificate (for society flats), Maintenance Bill, Electricity Bill, Property Tax Receipt

Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder,
Conveyance Deed (For New Property)

Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

Account Statement:

Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s

If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year

Income Proof documents required for SBI home loans for Salaried Applicant/s:

Salary Slip or Salary Certificate of last 3 months

Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years,
acknowledged by IT Dept.

Income Proof documets required for SBI home loan for Non-Salaried Applicant/s:

Business address proof

IT returns for last 3 years

Balance Sheet & Profit & Loss A/c for last 3 years

Business License Details(or equivalent)

TDS Certificate (Form 16A, if applicable)

31
 Certificate of qualification (for C.A./ Doctor and other professionals)
Enter desired loan amount, monthly income, employment status and city

 SBI Education Loan:

State Bank of India offers a wide range of education loans with interest rates that start at
10.05% p.a. The flexible repayment tenures also include a moratorium period after course
completion. There are no penalty charges for pre-payment of the loan, which can be done at
any time during the loan tenure. Some loans also offer interest concession for girl students.

Student loans from SBI are available for studies in India and abroad. You can avail loans for
studying for vocational courses as well as professional ones. There are also takeover loans
that help you close existing high-interest loans with a lower-interest SBI loan.

Compare SBI Education Loan Schemes for Students

1. SBI Student Loan Scheme

Interest rate: 10.05%

Processing fee:

For loans up to Rs.20 lakh: Nil

Processing fee for loans above Rs.20 lakh: Rs.10,000 plus applicable taxes

Collateral:

For loans up to Rs.7.5 lakh: None

For loans above Rs.7.5 lakh: Tangible collateral

32
 Loan Tenure: 15 years after the course ends plus a repayment holiday of 12 months

Eligibility: Indian nationals

2. SBI Scholar Loan Scheme

Interest rate: 7.95% to 9.25%

Processing Fees: Nil

Collateral: Required only for List A and List C colleges

Loan Tenure: 15 years after the course ends plus a repayment holiday of 12 months

Eligibility: Indian national who is selected through entrance tests/selection processes

3. SBI Global Ed-Vantage Scheme

Interest Rate: 10.05%

Processing Fees: Rs.10,000 per application

Collateral: Tangible collateral as security

Loan Tenure: 15 years

Eligibility: Indian nationals

4. SBI Skill Loan Scheme

Interest Rate: 9.55%

33
 Collateral: None

Loan Tenure: Up to 7 years

Eligibility: Indian nationals

5. SBI Takeover of Education Loan Scheme

Interest Rate: 10.05%

Processing Fees: Nil

Collateral: Minimum 100% of the proposed loan’s value

Loan Tenure: 15 years

Eligibility: Indian nationals who are majors at the loan switchover time with regular EMIs
being paid

SBI Education Loan Documents Required and Application Form :

The documents required to apply for the SBI education loan are as given below (all
documents should be self-attested):

1. For the student/applicant:

Identity proof (either voter’s ID card, passport, PAN card, or driver’s license)

Proof of address or residence (either a utility bill or a copy of the Aadhaar card/driver’s
license/passport)

Passport

34
Academic records (10th, 12th, Graduation (if applicable), entrance exam result through which
admission is obtained

Proof of admission: Admission letter or offer letter from the educational institution

Loan account statement of the previous 1 year, if loan has been taken from another lender

Passport size photographs

2. For co-applicant:

Identity proof (either voter’s ID card, passport, PAN card, or driver’s license).

Proof of address or residence (either a utility bill or a copy of the Aadhaar card/driver’s
license/passport).

Loan account statement of the previous 1 year, if loan has been taken from another lender

Passport size photographs.

35
1.5 HOUSING DEVELOPMENT FINANCE CORPORATION:

 History

The HDFC Bank was incorporated on August 1994 by the name of 'HDFC Bank Limited',
with its registered office in Mumbai, India. HDFC Bank commenced operations as a
Scheduled Commercial Bank in January 1995. The Housing Development Finance
Corporation (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.

36
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of
over 1416 branches spread over 550 cities across India. All branches are linked on an online
real–time basis. Customers in over 500 locations are also serviced through Telephone
Banking. The Bank also has a network of about over 3382 networked ATMs across these
cities.

The promoter of the company HDFC was incepted in 1977 is India's premier housing finance
company and enjoys an impeccable track record in India as well as in international markets.
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.
With its experience in the financial markets, a strong market reputation, large shareholder
base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the
Indian environment.

The shares are listed on the Bombay Stock Exchange Limited and The National Stock
Exchange of India Limited. The Bank's American Depository Shares ( ADS ) are listed on the
New York Stock Exchange (NYSE) under the symbol 'HDB' and the Bank's Global
Depository Receipts (GDRs) are listed on Luxembourg Stock Exchange.

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC Bank was
formally approved by Reserve Bank of India to complete the statutory and regulatory
approval process. As per the scheme of amalgamation, shareholders of CBoP received 1
share of HDFC Bank for every 29 shares of CBoP.

The merged entity now holds a strong deposit base of around Rs. 1,22,000 crore and net
advances of around Rs. 89,000 crore. The balance sheet size of the combined entity would be
over Rs. 1,63,000 crores. The amalgamation added significant value to HDFC Bank in terms
of increased branch network, geographic reach, and customer base, and a bigger pool of
skilled manpower.

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new
private sector bank promoted by Bennett, Coleman & Co. / Times Group) was merged with
HDFC Bank Ltd., effective February 26, 2000. This was the first merger of two private banks
in the New Generation Private Sector Banks. As per the scheme of amalgamation approved

37
by the shareholders of both banks and the Reserve Bank of India, shareholders of Times Bank
received 1 share of HDFC Bank for every 5.75 shares of Times Bank.

HDFC Bank offers a wide range of commercial and transactional banking services and
treasury products to wholesale and retail customers.

The bank has three key business segments:

Wholesale Banking Services – The Bank's target market ranges from large, blue–chip
manufacturing companies in the Indian corporate to small & mid–sized corporates and agri–
based businesses.

Retail Banking Services – The objective of the Retail Bank is to provide its target market
customers a full range of financial products and banking services, giving the customer a one–
stop window for all his/her banking requirements.

Treasury – Within this business, the bank has three main product areas – Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities. The
Treasury business is responsible for managing the returns and market risk on this investment
portfolio.

HDFC Securities (HSL) and HDB Financial Services (HDBFSL) are its subsidiaries.

 Services offered by the company:

Accounts & Deposits

Loans
Cards
Forex
Investments & Insurance
NRI Banking

Accounts & Deposits

Remittances

38
Investments & Insurance Loans Payment Service
Wholesale Banking
Corporate Small & Medium Enterprises
Financial Institutions & Trusts
Government Sector

 Listings and shareholding:

The equity shares of HDFC Bank are listed on the Bombay Stock Exchange and the National
Stock Exchange of India. Its American depositary receipts are listed on the NYSE and
its global depository receipts (GDRs) are listed on the Luxembourg Stock Exchange where
two GDRs represent one equity share in HDFC Bank.

Shareholders (as of 31 December 2015)Shareholding Promoter group (HDFC) 26.14%

Foreign institutional investors (FII)20.4% Individual shareholders 8.5% Bodies
corporate7.5%Insurance companies5.38% Unit Trust of India8.65%NRI/OCB/others 0.29%
Financial institutions/banks2.75%ADS/GDRs18.78%

 Network :

HDFC Bank is headquartered in Mumbai. As of September 30, 2019, the Bank's distribution
network was at 5,314 branches across 2,768 cities. All branches are linked online on a real-
time basis. Customers across India are also serviced through multiple delivery channels such
as Phone Banking, Net Banking, Mobile Banking, and SMS based banking. The Bank's
expansion plans take into account the need to have a presence in all major industrial and
commercial centers, where its corporate customers are located, as well as the need to build a
strong retail customer base for both deposits and loan products. Being a clearing / settlement
bank to various leading stock exchanges, the Bank has branches in centres where the NSE /
BSE have a strong and active member base. The Bank also has a network of 13,514 ATMs
across India. 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.

39
 PERSONAL LOANS:

HDFC Bank offers personal loan with minimal documentation and speedy approvals, making
it easy for individuals to easily access funds due to a financial emergency. You can avail a
loan amount of up to Rs. 40 lakh that can be repaid within a tenure which ranges between 12
to 60 months.

Features of HDFC Bank Personal Loan

Loan Amount: HDFC Bank offers a personal loan amount starting from Rs. 50,000 up to Rs.
40 lakhs.

Flexible tenure: The tenure for HDFC Bank personal loan ranges from 12 to 60 months and
can be selected by an individual as per his/her repayment ability

Minimal Documentation: HDFC Bank’s personal loan application is quick and hassle-free as
it requires only minimal documentation

Personal Loan Security: One can secure his personal loan from HDFC Bank with Sarv
Suraksha Pro. The benefits are:

40
1 Credit Shield Cover equal to the outstanding loan amount

2 Accidental Hospitalization Cover of up to Rs 8 Lakh

3 Accidental Death/Permanent Disablement cover of up to Rs 1 Lakh

Personal Loan Balance Transfer: Get low and revised interest rates by transferring your
existing personal loan to HDFC Bank. With Personal Loan Balance Transfer, one can avail
the following benefits:

1 Avail interest rates as low as 10.50% on the existing loan amount transferred

2 Avail Flat processing fee of only Rs. 1999

Get Insured with HDFC Bank Personal Loan: If you have a personal loan with HDFC Bank,
you have the option to avail a Personal Accident Cover of up to Rs. 8 lakh and critical illness
cover up to Rs. 1 lakh for a nominal premium. The premium of these policies will get
deducted from the loan amount at the time of disbursal.

Eligibility Criteria

You should be a salaried doctor, CA, employee of private limited companies, employee from
public sector undertakings including central, state and local bodies

You should be at least 21 years and your maximum age should be 60 years

You should have at least 2 years of minimum work experience and you should be working
with your current employer for at least a year

Your minimum monthly income should be Rs. 20,000 per month if you are living in Delhi,
Mumbai, Bangalore, Hyderabad, Chennai, Pune, Ahmedabad, Kolkata and Cochin. For
residents in other cities, minimum monthly income requirement is Rs. 15,000.

41
HDFC Bank Personal Loan Documents Required

The following documents are required to avail a personal loan from HDFC Bank:

PAN Card copy (Mandatory)

Proof of Identity: Copy of Passport/Driver License/Voter ID card/Aadhaar

Proof of Address: Copy of passport/Driving license/Voter ID card/Aadhaar, recent utility bill

copy, LPG Book copy, etc.

Proof of End Use (as per discretion of HDFC Bank)

Certified Bank statement of last 3 months (Passbook of last 6 months)

Last 2 salary slips/Latest salary certificate with the latest Form 16

 Home Loan :

HDFC Ltd. offers special home loans to women applicants to encourage them to buy their
own dream home. Check the eligibility criteria, interest rate, documents and schemes
pertaining to HDFC home loans.

For fresh graduates who have recently started working, HDFC offers home loan based on
their current salary and educational qualification certificates. They can avail loan without
having to wait for gaining 2 years of experience. Applicable in case of professional graduates.

Loans offered to contractual employees with professional degrees. Last 3 yrs contract
renewal is mandatory in such applications

Types of home loans.

42
HDFC housing loans are classified into the following

Adjustable Rate Home Loan– A home loan under adjustable rate is associated with
HDFC’s Retail Prime Lending Rate (RPLR), which has come down to 16.20%. If there is a
change in the RPLR, the interest rate will be revised once in three months subject to the date
of the first disbursement with or without a change in the EMI.

TruFixed Home Loan – 2/3 Year Fixed Variant – Under TruFixed Home Loan, an applicant
can avail fixed rate for a maximum of 2/3 years, post which the loan will directly convert to
an adjustable rate, summing up to a total term of 20 years.

HDFC Home Loan for Purchase of Plot – You can apply for HDFC home loan individually
or jointly. You can add your spouse or father/mother as a co-borrower.

Home Loan Unique Features :

Expert Advice: An applicant can get free advice from experts to buy the right property.

Over-the-counter Assistance: With the help of expert counseling, an applicant can purchase
the property without any fuss.

Property Assistance: Anybody can avail property assistance services from HDFC Realty
website—which is a one-stop destination for the property-related advisories.

Special Pari Passu Arrangement: A special arrangement is made available through AGIF
(Army Group Insurance Fund) where the Army personnel can avail an additional loan.

Home Loans for Properties Across India: An applicant can purchase properties from any
location.

Pre-Approval of Home Loans: An applicant can get the home loan approved even before
selecting the property.

43
Home Loan Mobile: The mobile app of HDFC makes it easy and convenient for an applicant
to apply for the home loan.

Complete Online Accessibility of all home loans: An applicant can access Home loan by
logging on to the online account and information related to home loan and make decisions
accordingly

Tailor-made easy EMI schemes: Apart from the regular EMI scheme, HDFC has Step Up,
FLIP and other payment plans for the applicants to choose from.

Monitoring and Operating the Loan from Anywhere: The interconnected branch network
within HDFC allows all the applicants to pay their monthly installments and operate their
loan account from any anywhere.

Add-On Loans on a Single Property: If you have a regular home loan, you can get home
extension loan, Home Improvement Loan, Top Up Loan or Loan Against Property based on
the total exposure on the property not exceeding the limit determined by the housing finance
company from time to time. No additional security is allowed on such loans.

Loans on Second Mortgage to PSU and Central Government Employees: Additional loan
facility is available to the employees of the Central Government and Public Sector Units, in
case additional funds are needed to fulfil their Home Loan requirements after availing the
House Building Advance.

Door-step Assistance: HDFC sales executives are ready to provide doorstep services to the
customers.

HDFC Home Loan Documents for Salaried

The documentation process is simple and you can see it below.

Valid ID and Residence Proof

44
Last 6 months’ Bank Statements, showing salary credits

Latest Salary Slips

Latest Form-16

Passport size photograph of all the applicants / co-applicants to be affixed on the Application
Form and signed across

Cheque for processing fee favouring ‘HDFC Ltd.’

Copy of the Allotment Letter / Buyer Agreement
Receipt/(s) of payment/(s) made to the developer

HDFC Home Loan Documents Required for Self-employed

Valid ID Card and Residence Proof

Last 6 months’ Bank Statements

Passport size photographs of all the applicants / co-applicants to be affixed on the Application
Form and signed across

Processing fee cheque favouring ‘HDFC Ltd.’

Copy of the Allotment Letter / Buyer Agreement
Receipt/(s) of payment/(s) made to the developer

Educational Qualifications Certificate and Proof of Business

Business Profile and Previous 3 years Income Tax returns (self and business)

Previous 3 years Profit/Loss Account and Balance Sheet

HDFC Home Loan Documents Required for Agriculturists (Applicable to Rural Housing

45
Finance)

KYC Proof – PAN Card (Mandatory) and any of Driving License/Voter ID/Passport

Income Proof – Copies of title documents of agricultural land showing Land holding

Copies of title documents of agricultural Land showing crops being cultivated

Bank statements for the last 6 months

Passport size photograph of all the applicants / co-applicants to be affixed on the Application
Form and signed across

Cheque for processing fee favouring ‘HDFC Ltd.’

Copy of the Allotment Letter / Buyer Agreement

Receipt/(s) of payment/(s) made to the developer

 Education Loan:

HDFC Bank offers three different types of education loans. The loan can be

availed at attractive interest rates and comes with several features.

The repayment can be made within 15 years of availing the loan.

HDFC Bank Education Loan Schemes

1. Education loan for Indian Education

Can be availed by an Indian resident between 16 and 35 years of age.

46
Should have secured admission through entrance test or on merit basis.

Co-applicant is mandatory in the case of full-time courses.

You can avail a loan of up to Rs.20 lakh.

Preferential interest rates are provided in case you have secured admission

at a top university.

Repayment tenure can go up to 15 years.

Processing fee is a minimum of Rs.1000 and a maximum of up to 1% of the

loan amount, which is higher.

No hidden charges.

Minimal and simple documentation.

Avail pocket-friendly EMI repayment options.

Rebate on the paid interest under Section 80E of the Income Tax Act 1961.

Collateral required only if the loan amount is higher than Rs.7.5 lakh.

2. Central Government Interest Subsidy Scheme

Avail loan at subsidized interest rates.

Interest is waived off during the moratorium period.

Can be availed if the annual gross income from all sources in below Rs.4.5 lakh.

47
3. Education loan for Foreign Education

Can be availed by an Indian resident between 16 and 35 years of age.

Should be able to offer collateral for certain cases (Moveable or Immoveable)

You can avail an unsecured loan of up to Rs.35 lakh.

Co-applicant is mandatory in the case of full-time courses.

Preferential interest rates are provided in case you have secured admission

at a top university.

Education loans can be availed for more than 950 courses in 36 countries.

Entire cost of reduction can be covered with collateral.

Repayment tenure can go up to 15 years.

Minimal and simple documentation.

No hidden charges.

Avail pocket-friendly EMI repayment options.

Rebate on the paid interest under Section 80E of the Income Tax Act 1961.

Documents Required for HDFC Bank Education Loan

The documents that need to be submitted if you wish to avail an education

48
loan from HDFC bank are listed below:

1. Education loan for Indian Education for Pre-sanction loans

Duly filled application form

Latest photograph (Signed Across)

Admission letter from the institute with the fee break – up

Academic marksheets (SSC, HSC and Graduation)

Age proof

Identity proof

Residence proof

Signature proof

Salary slips of the last two months carrying the date of joining details (Salaried)

Bank statement of the salary account for the last 6 months (Salaried)

ITR of last two years with computation of income (Self-employed)

Audited Balance Sheet or Profit and loss statement for the last 2 years

(Self- employed)

Bank statement for the last 6 months (Self-employed)

Latest Sales or service tax return as proof of turnover (Self-employed)

49
Proof of qualification (Self-employed)

2. Education loan for Indian Education for Post-sanction loans:

Even for post–sanction loans, you will be required to submit the above-mentioned

documents. Along with them, you will also be required to submit the following:

Completed loan agreement signed by the applicant and co-applicant

PDCs, ACH or SI Mandate

In case of ACH and SI mode of repayment, three security PDCs need to be

submitted.

3. Central Government Interest Subsidy Scheme

Original income certificate issued by an authorised officer of the State

government under the scheme

Original Bonafide student letter that has been issued by the institute.

Interest subsidy agreement stamped as per the State Stamp Act.

Aadhaar number of the student.

Any additional documents requested by the bank must be submitted as well.

4. Education loan for Foreign Education

Duly filled application form

2 passport sized photograph of the applicant and co-applicant

50
Photo ID (Any one)

Voter ID

Aadhaar card

Driving License

Passport

PAN Card

Residence Proof (Any one)

Voter ID

Aadhaar card

Driving License

Passport

Academic documents

Marksheet/certificate of 12th Exam

Marksheet/certificate of subsequent years of education

Scholarship documents (if applicable)

Marksheets of any entrance exam (if applicable)

51
IELTS/TOEFL/GMAT/GRE marksheets if applicable

Admission proof

Bank statements of the co-applicant for the last 8 months

Salary slips for the last 3 months or salary certificate on employers’ letter

(Salaried co-applicant)

Income tax returns for the last two years (Salaried and Self-employed co-applicant)

Lease deed, Utility bill, title deed etc. to serve as proof of office

(Self-employed co-applicant)

Certified financial statements or provisional financial statements duly certified by

a CA for the last 2 years (Self-employed co-applicant)

Any other income proof not reflected in the above documents may also be asked

by the bank officials.

In case, immoveable property is provided as collateral you will be required to submit:

7/12 extracts in case of land.

Registered sale agreement along with society share certificate.

Property title deed.

Original registration receipt for the above agreement.

Approved building plan.

52
Encumbrance certificates.

Latest property tax bill along with receipts.

Latest maintenance bill along with receipts issued by builder/society.

Allotment letter by municipal corporation or authorised Government Authority

like MHADA, CIDCO etc.

53
 1.6 Compare SBI with HDFC:

1. Public sector banks exist for a long time now. They have a great public image which creates
trustworthiness. In return, these institutions receive customer loyalty, which contributes to their
broader customer base. Contrary, the private sector banks now exist for a shorter period. Thus,
they have a lower customer base.

2. With regards to interest rates policies, there is transparency in public sector banks. However, the
interest rates on savings for customers are quite higher. For the private sector banks, there may
be more hidden charges on various operating systems. It explains why most people opt for
government banks. However, the banks in this category usually give lower customer interests
on savings.

3. Public sector banks usually have job security for its employees. When individuals start
working in such institutions, they do not have to worry about being fired from a job due to
specific issues. For private sector banks, there is usually constant performance evaluation,
which adds on to the constant worries regarding job security. In the case where an individual
fails to meet certain performance levels, they may easily undergo retrenchment.

4. The government banks normally take time to implement new technologies that usually make
work easier for both the employees and customers. However, the private sectors stay up-to-date
for the latest technological trends that make operations easier. Sometimes when you visit the
public banks, you have to go through various departments to attain the needed information.
However, in most private banks, you can receive all the assistance that you need at only one
desk. You henceforth achieve satisfaction and save time as well.

54
 SBI personal loan compare with HDFC personal loan

SBI offers lower Personal Loan EMI at 1832 on a Personal Loan for 72 Months as compared
to HDFC Bank with a minimum EMI of 2149 for 60 Months. Average customer ratings for
SBI is currently at 3.6/5.0 which makes it a good choice for taking a Personal Loan.

It is important to do a detailed comparison of SBI and Personal Loan on all loan terms and
conditions to understand their differences and take an informed decision. Keep in mind that
each bank’s scheme has its own pros and cons that have to be evaluated before choosing the
best offer. Some of the key results of the comparison between the two banks are:

Lowest Interest rate of SBI Personal Loan is 9.60%, which is lower than the lowest interest rate
of HDFC Bank at 10.50%. Hence, SBI is offering a cheaper loan option.

When compared on other Personal Loan charges such as processing fees, SBI charges a
processing fees of 1.00% while HDFC Bank charges a processing fees of Up to 2.50% Min Rs.
1,999.

HDFC Bank offers Personal Loan upto an amount of ₹ 75 Lakh while SBI offer Personal Loan
upto an amount of ₹ 15 Lakh. HDFC Bank can be a better option if you are looking for a high
value amount.

One feature that makes Personal Loan a better option is foreclosure facility. SBI gives the
option to close the loan after 6 months at 3% and HDFC Bank gives the option to close the
loan after 12 months at 2 - 4%. This makes SBI a better option for Personal Loan.

HDFC Bank allows part payment on Personal Loan after 12 months at 2-4%, while SBI does
not offer part payment facility on Personal Loan. This makes HDFC Bank a better option for
Personal Loan.

HDFC Bank has an average customer rating of 4.5, while SBI has an average customer rating
of 3.6, based on which it is clear that HDFC Bank has a high customer service focus, an easy
Personal Loan process and a quick turnaround.

55
 CHAPTER 2 : RESEARCH METHODOLOGY

The report is based on the primary as well as secondary data, however primary data collection was more
important users of research methodology is that it helps in identifying the problem, collecting, analyzing the
required information data and providing an alternative solution to the problem. It also helps in collecting the
vital information that is required by the top management to assist them for the decision making both day to
day decision and critical ones.

2.1 OBJECTIVES OF STUDY:

 To understand the concept of Private and Public sector Bank.

 To know the various services provided by SBI.
 To know the loans services provided by bank.
 To understand the pattern of SBI AND HDFC.

2.2 SCOPE AND SIGNIFICANCE OF STUDY:

 Customer satisfaction in banking industry plays a vital role to create a healthy business
statusbeing services-based industry.
 In any services-based industry customer service is the highest priority.

 In banking industry customer are well linked with the bank’s personnel for any kind of
services or product.

 Therefore, bank should always focus on training its front desk staff to provide quality
serviceknowing their expectation and wants.

 The level of satisfaction can also vary depending on other options the customer may have
and other products against which the customer can compare the organization’s services.
Banksshould also focus on rural banking sectors.

2.3 Hypothesis:
H0: There is no significant difference in satisfaction level of customers in public and private sector banks.
H1: There is a significant difference in satisfaction level of customers in public and private sector banks.

56
2.3 Limitation of Study
This project also has some limitations. Some important data which was very much
crucial was not available. The another limitation is that the study is based on the
secondary data hence it can suffer from being very reliable. Language is another
access limitations as it will be difficult translating some questions and statements into
the local dialects perfectly because of limited vocabulary of local dialects. This
limitation, in particular explains why only literate individuals participate. Therefore,
the sample for this study will be limited to a sizeable to 30 respondents.

2.4 Research Design

In research terms a sample is a group of people, objects, or items that are taken from a
larger population for measurement. The sample should be representative of the
population to ensure that we can generalize the findings from the research sample to
the population.
A. Universal Population
The is study conducted in Mumbai district of Maharashtra state in India.
B. Sample Area
The present study is conducted in area between Bandra and Dadar within
Mumbai City.
C. Sample Size
The present study is conducted by survey method using 30 Respondents
D. Sample Techniques
The study conducted using Survey method.
E. Sample Period
The data collection for the current study is conducted in the month of March
2023.

57
2.5 Methods of Data Collection
Primary Data Analysis
Primary Data has been found by using Survey\Questionnaire.
Questionnaire
1. Name

2. Gender
o Male
o Female
o Prefer not say

3. Age
o 18 - 25
o 25 - 35
o 35 – 50
o 50 and above

4. Profession
o Student
o Employee
o Businessman
o Other

5. Are you aware of the difference between public sector and private sector
bank?
o Yes
o No
o May be

6. Which sector bank you prefer?

o Public Bank
o Private Bank
o Both

58
7. In which bank do you have account?
o SBI
o ICICI
o HDFC
o BOI

8. Which type of account do you have in this particular bank ?

o Saving account
o Fixed account
o Current account
o Other

9. Why you have chosen this particular bank?

o Convenient
o Rate of interest
o Quick and Fast service
o Location

10. Which service you get from your bank?

o Online banking
o Credit card
o Insurance
o All of the above

11. Do want to change your bank account?

o Yes
o No
o Maybe

12. Would you recommend this bank to your friend, relatives, associates?
o Yes
o No
o Maybe

59
 Put tick as per your preference. Based on following rating scale
1) Highly Dissatisfied
2) Dissatisfied
3) Neutral
4) Satisfied
5) Highly Satisfied
SR.NO. Questions 1 2 3 4 5

13 How satisfied you

with the overall
customer service
provided by your
bank?

14 How satisfied you

with the interest rate
and fees charged by
bank?

15 What do you feel

about the overall
service quality of
bank?

16 How would you

measure the speed
and efficiency of
your bank
services?
17 How would you
rate the
professionalism of
your bank's staff?

60
 CHAPTER 3 : REVIEW OF LITERATURE

The purpose of choosing this topic Comparative study of Public and Private bank with
respectof HDFC and SBI because now days most of the people have bank account and also
at the sametime all their transaction take place and their lives became easier. Also, bank
provides multiplechoices to the customers like Net banking, credit and debit cards,
issuing all the investment policies etc. We would also know how customers are satisfied
by their banking services. Because of numerous bank the customers have lots of choice
either to make their investment process in private or public bank. It shows that customer
satisfaction is more important becausethere are many competitors so satisfaction level of
customer should be properly maintained toretained their existing customer and also to
make their potential customer as existing customer. A better service is needed to be given
to the customers and simultaneously all their complaintsand queries to be resolved.

The study on public and private sector banks shows that the quality gap consumer’s
perception of services delivered is highest in public sector banks and lowest in
private sector banks. Another study found that public sector banks are better than
private sector banks. Some studies and their findings are as below:

Ms. LINDA MARY SIMON (2012): - In this paper, the customer perception towards
services provided by IOB and ICICI banks of Coimbatore region has been
discussed. The attribute like internet banking, ATM services, Timing and Attitude
of staff etc. of both the public and private have been compared. The study reveals
that ICICI bank is providing better services to its customers than Indian Overseas
Bank.

HIMANI SHARMA (2011): - In this research study bring out two significant
difficulties in the use of e-banking viz. heightened stress and technical bottlenecks.
It explores the difficulties faced by bankers in using e-banking, like customers,
bankers too face difficulties in fully understanding and imbibing the mechanism of e-
banking in their system. They admit that no proper e-banking training is providedto
them; consequently, they do not know how to operate the system. This brings in frustration
affecting the work, which leads to heightened stress

61
COOPER (1997): - Reported that ease of use of innovative products or services as
one of the three important characteristics for adoption from the customers’
perspective.

DANIEL (1999): - Expressed that another important factor affecting the acceptance
and adoption of new innovation is the level of security or risk associated with it.
Even in countries where internet banking is at a developed stage, one of the most
important factors slowing the progress of this new innovation is the customers
concern for security of financial transaction over the internet. An empirical survey
of Australian consumers by Sathye (1999) confirmed this fact.

NANCY ET AL (2001): - Have examined the case of the consumers adoption of

internet related financial service, which may be viewed as an innovation in service
delivery. The qualitative study employed Rogers’s model of perceived innovation
attributes. The perceived innovation attributes were found to be important
determinants of consumer’s adoption decisions. The study argued that customers
like to interact with human rather than machines. They find more possibilities for
asking questions and believe that bank clerks are less prone to errors,
understanding the fact that face to face transaction are carried out more efficiently
and courteously.

SUGANTHI AND BALACHANDRAN (2001): - Investigated the various

psychological and behavioural issues such as trust, security of internet transaction,
reluctance to change, and preference to human interface which appear to impede
the development of internet banking. Accordingly, the action taken by bankers and
policy makers in appropriately addressing these critical issues like introduction of e-
banking in Libya. The paper draws exciting literatures on technological development
in the banking industry and the finding from semi- structured interviews with key
bank staff of a leading commercial bank in Libya. A number of factors affecting the
adoption of e-banking technology are identified viz. organizational change,
management support, IT knowledge and awareness, IT funds, telecommunication
infrastructure, IT security, compatibility and complexity.

62
GEETHA K T AND MALARVIZHI:-This research paper investigates the factors
which are affecting the acceptance of e-banking services among the customers and
also indicates level of concern regarding security and privacy and awareness level
increased the acceptance of e-banking among Indian customers. The finding shows
that if banks provide them necessary guidance and entire safety of their account,
customers are willing to adopt e-banking. Hence, the banks should design the
website to address security and trust issues. The recommendations to the banks are
that they have to increase the level of trust between banks’ website and customers.

CENTENO (2004):- Argues that speed the convenience of remote access, 7/24
availability and price incentives are the main motivation factors for the consumers
to use internet banking

DURKIN et al (2008): - Notes that the simplicity of the products offered via
internet banking facilitates the adoption of internet banking by consumers.

CALISIR AND GUMUSSOY (2008): - Compare the consumer perception of internet

bankingand other banking channels and report that internet banking, ATM and phone
bankingsubstitute each other.

MAENPAA et.al (2008):- Examine the consumer perception of internet banking in

Finland and their findings indicate that familiarity has a moderating role in the
perception.

GUERRERO, et.al.(2007):- examine the usage of internet banking by European

and their results indicates that ownership of diverse financial products and service,
attitude towards finance and trust in the internet as a banking channel influence
clients usage of internet banking.

63
POLATUGLU AND EKIN (2000): - In their research paper stated that perceived risk was
oneof the major factors affecting consumer adoption, as well as costumer
satisfaction of online banking services. Perceived risk usually arrives from
uncertainty. To Howcroft et.al (2002), the principal characteristics that inhibit
online banking adoption are security and privacy.

CHUNG AND PAYNTER, 2002 in their research paper stated that security is
perhaps the most feared problem on the internet. Banks and customers take a very
high risk by dealing electronically.

Howcroft et.al (2002) in research paper stated that today’s consumers are
increasingly more concerned about security and privacy issues.

SOHAIL AND SHAIKH, 2007 in their research paper stated that much work has notbeen
done in India with regard to internet banking issues. The present study
intends to know that the factors affecting the acceptance of e-banking by the
customers and also indicates level of concern regarding security and privacy issues
in Indian context.

SAYAR AND WOLFE, 2007 in their research paper stated that, A majority of
studies highlight the fact that “Security” is the biggest single concern for customers
when faced with the decision to use internet banking. Security has always been an issue,
but its scope has changed from mere doubts about the privacy of personal information to
worries of financial loss.

SUREKHA INVALLI RAGURAMA A AND CHANDRAMMA M: - In their research

paper the study was to develop an understanding of adoption of e-banking services

among the consumers in urban and semi-urban regions. The analysis revealed the
influence of demographic variables, experience with computer technology and
medium of information as predictors of channel adoption depending upon banking
behaviour. Four segments of consumers were identified with the help of factor
analysis. Logistic regression was used to analyse the significance of different

64
levels of socio-techno-demographic variables and behavioural factors on the
propensity to adopt ATM and internet banking at an individual level. The finding
of this study supports the influence of technological orientation and education on
the adoption of e-banking channels. Overall, ATM highly adopted by young to
middle aged, educated and moderate to highly affluent category consumers with
technical aptitude. These categories of customers also visit branches, interact with
banks staff and tend to be loyal. The odds of more frequent ATM card usage
versus less frequent usage increases with education, whereas the usage need not
increase with increasing income. Age was significantly associated, but not at levels
above 60, it can be inferred that retired people prefer to visit branch. Net banking appeals to
those consumers who are highly oriented towards usage of computer and use internet at
workplace. In this case, the dissemination of information regarding benefits of net banking
usage through the branch manager, magazines and friends at workplace was found to be
influencing the adoption. Bank should continue to go ahead with consumer-oriented approach
by setting multi-channel strategy through collaboration between different customers as in the
case of online education loan and funds transfer facility through ATMs. This strategy aims at
encouraging the usage of e-banking services among the parents with inputs from
their young children. User-friendly ATMs with voice based controls can be
installed in semi-urban areas to inhibit the fear of ATMs usage.

65
 CHAPTER 4: DATA ANALYISIS AND INTERPRETATION

2. Age

o 18 - 25
o 25 - 35
o 35 – 50
o 50 and above

I Age Group Frequency Percentage

18-25 27 90%
25-35 2 6.7%
35-50 1 3.3%
50 or above 0 0%
Total 30 100%

INTERPRETATION: - The above chart indicates that the Age of customers. In this chart there is age which is
less 18-25 Years is 90%, 25-35 Years is 6.7%, 35-50 Years is 3.3% , 50 and Above is nil. Total number of
frequencies is 30 consider in the age of customers.

66
 3. Gender

o Male
o Female
o Prefer not say

Gender Frequency Percentage

Male 12 56.7%
Female 17 40%
Prefer not to say 1 3.3%
Total 30 100%

INTERPRETATION: - The above chart indicates the Gender of the Respondents. The percentage of Male
customers is 40% and Female customers is 56.7%.

67
 4. Profession

o Student
o Employee
o Businessman
o Other

Profession Frequency Percentage

Student 19 63.3%
Employee 10 33.3%
Businessman 1 3.4%
Other 0 0%
Total 30 100%

INTERPRETATION: The above chart indicates the Profession/ Occupation of the Respondents. There are
63.3% Student, 33.3% Employee,3.4% Businessman,0% are others.

68
 5. Are you aware of the difference between public sector and private sector bank?
o Yes
o No
o May be

Public and Private Sector Bank Respondent Percentage

Yes 28 96.7%
No 2 3.3%
Total 30 100

INTERPRETATION: The above chart indicates the Customers awareness about Public and Private Sector Bank.
Majority of customers knows about the Public and Private Sector Bank, 96.7% Says Yes and 3.3% says No. This
indicates that majority of the customer are aware about Public and Private Sector Bank

69
 6. Which sector bank you prefer?

o Public Bank
o Private Bank
o Both

Which sector bank you prefer? Respondent Percentage

Public Bank 12 36.7%
Private Bank 11 40%
Both 7 23.3%
Total 30 100%

INTERPRETATION: The above chart indicates that which sector bank customers prefer. Majority of customers
prefers Public Sector Bank are 36.7% , 40% customers prefers Private sector bank and 23.3 % prefers both. This
indicates that majority of the customer are aware about Public and Private Sector Bank

70
 7.In which bank do you have account?

o SBI
o ICICI
o HDFC
o BOI

Account Respondent Percentage

SBI 9 30%
ICICI 4 13.3%
HDFC 7 23.3%
BOI 7 23.3%
Other 3 10.1%
Total 30 100%

INTERPRETATION: The above chart indicates the name of the Respondent's Bank in which they have account.
30% have account with SBI, 13.3% ICICI, 23.3% HDFC Bank, 23.3% BOI, 10.1% with other Banks.

71
 8. Which type of account do you have in this particular bank ?

o Saving account
o Fixed account
o Current account
o Other

Type of account Respondent Percentage

Saving Account 29 96.7%

Fixed Account 0 0%
Current Account 0 0%
Salary Account 1 3.3%
Total 30 100%

INTERPRETATION: The above chart indicates the Type of Account respondents have. Majority of
Respondents have Saving Account i.e., 96.7%% and 3.3% respondents have Salary Account. There is not any
respondent with Fixed Account or any other Account.

72
 9. Why you have chosen this particular bank?
o Convenient
o Rate of interest
o Quick and Fast service
o Location

Respondent Percentage
Why you have chosen this particular bank?

Convenient 18 36.7%
Rate of Interest 62 13.3%
Quick and Fast Service 1 30%
Location 5 20%
Total 30 100%

INTERPRETATION: The above chart indicates that why customers have chosen particular bank. Majority of
Respondents have chosen because of convenient i.e., 36.7%. 13.3% use it because of rate of interest, 30%
respondents because of quick and fast services and 20% because of location.

73
 10. Which service you get from your bank?
o Online banking
o Credit card
o Insurance
o All of the above

Services Respondent Percentage

Online Banking 12 40%

Credit Card 1 3.3%
Insurance 0 0%
All of the above 17 56.7%
Total 30 100%

INTERPRETATION: The above chart indicates that services gets from bank. Majority of Respondents gets all
of the services mentioned i.e., 56.7%. 40% customers gets online banking services, 3.3% customers gets credit
card services and 0% insurance.

74
11. How satisfied you with the overall customer service provided by your bank ?
o Highly Dissatisfied
o Dissatisfied
o Neutral
o Satisfied
o Highly Satisfied

Scale Respondent Percentage

Highly Dissatisfied 2 6.6%

Dissatisfied 0 0%
Neutral 8 26.7%
Satisfied 15 50%
Highly Satisfied 5 16.7%
Total 30 100%

INTERPRETATION: From the above study there are 50% people are satisfied with the services of their bank
account. 16.7% of the people are highly satisfied, 6.6% are highly dissatisfied, 26.7% are neutral and the rest 0%
are dissatisfied.

75
 12. How satisfied you with the interest rate and fees charged by bank?
o Highly Dissatisfied
o Dissatisfied
o Neutral
o Satisfied
o Highly Satisfied

Scale Respondent Percentage

Highly Dissatisfied 2 6.7%

Dissatisfied 1 3.3%

Neutral 15 50%

Satisfied 9 30%
Highly Satisfied 3 10%
Total 30 100%

INTERPRETATION: The above chart indicates that 6.7% of the customers are Highly Dissatisfied, 3.3% of the
customers are Dissatisfied, 50% are neutral, 30% of the customers are Satisfied and 10% of the customers are
Highly Satisfied about with the interest rate and fees charged by bank.

76
 13. What do you feel about the overall service quality of bank?
o Very poor
o Poor
o Average
o Good
o Excellent

Scale Respondent Percentage

Very Poor 1 3.3%

Poor 0 0%
Average 12 40%
Good 15 50%
Excellent 2 6.7%
Total 30 100%

INTERPRETATION: The above chart indicates that 50% of the customers feels good of their bank services, 3.3%
of the customers feels very poor, 6.7% of customers feels excellent and rest of the 40% feels average of the
services provided by bank.

77
 14. How would you measure the speed and efficiency of your bank services?

o Very poor
o Poor
o Average
o Good
o Excellent

Scale Respondent Percentage

Very Poor 1 3.3%

Poor 0 0%
Average 13 43.3%
Good 14 46.7%
Excellent 2 6.7%
Total 30 100%

INTERPRETATION: The above chart indicates the rate given by customer about speed and efficiency of bank
3.3% of the customers rate very poor,43.3% of the customers rate average, 46.7% of the customers rate good, and
rest of the customers rate excellent i.e. 6.7%.

78
 15. How would you rate the professionalism of your bank's staff?

o Very poor
o Poor
o Average
o Good
o Excellent

Scale Respondent Percentage

Very Poor 1 3.3%

Poor 1 3.3%
Average 12 40%
Good 12 40%
Excellent 4 13.3%
Total 30 100%

INTERPRETATION:-The above chart indicates the rate given by customer about professionalism of bank staff
3.3% of the customers rate very poor and poor, 40% of the customers rate average, 40% of the customers rate
good, and rest of the customers rate excellent i.e. 13.3%.

79
 16.Do want to change your bank account?
o Yes
o No
o Maybe

Do you want to change your account Respondent Percentage

Yes 5 13.8%
No 20 69%
Maybe 5 17.2%
Total 30 100%

INTERPRETATION: The above chart indicates that 13.8% wants to change their account from private bank to
public bank. 69% don’t want to change their account from private to public. And rest 17.2% may think to change
their account to private to public bank.

80
 17. Would you recommend this bank to your friend, relatives, associates?

o Yes
o No
o Maybe

Recommend this bank to friends, Respondent Percentage

family and others?

Yes 25 83.3%
No 1 3.3%
May be 4 13.3%
Total 30 100%

INTERPRETATION: The above chart indicates that 83.3% wants to recommend their bank account to friends,
family. 3.3% don’t want to recommend their account to others. And rest 13.3% may think to recommend their
account to others.

81
 CHAPTER 5: CONCLUSION AND SUGGESTION

5.1 CONCLUSION:

Banking sector in India is undergoing major changes due to competition and advance
technology. The customers are looking for better quality services which enhance his/her
satisfaction. From above analyses it is come to know that service and positive features are
making we them more satisfied whether it is private or public bank.
There is no significant difference among the customers from the public and private bank. But, behaviour
of public sector banks’ employees are not supportive in comparison to Private sector Banks. ATMs of
Public Banks should be established Atmore convenient tan easy reachable places. There should be
equipment of latest technology Public sector banks to avoid inconvenience and delay.
Although, customers of Public and private Banks are satisfied but level of satisfaction in Private banks
is higher than the Public Banks due to some tangible and behavioural consideration. HDFC bank has
position edit self as a bank which gives higher standard of services through production novation for the
divergence do find individualand corporate clients. Based on the study conduct edit can be concluded
that responsiveness, assurance and reliability are the critical dimension of service quality of HDFC bank
and they are directly related to overall service quality.

82
5.2 Findings:

From the above study majority of the respondents who have aware difference between
public and private bank. There are 96.7% of responded aware about public and private
bank.

From the above study majority of people respondents on their bank account.There are 40%
people have a bank account in private sector bank, 36.7% people have a bank account in
public sector bank and there are 23.3% people have account in both bank .

From the above study 23.3% people have a account in Bank of India, 30% people have a
account in SBI, in HDFC 23.3% people have a account and 10.1 % people have a account in
other.

From the above study majority of people 36.7% choose a bank account because of
convenient,30% people choosing a account for customer service,13.3% people have a account
for rate of interest and 20% choose for location.

From the above study, majority of people respondents to open an account in public
sector bank. 81.8% people open a account in less than one month.

From the above study there are 50% people satisfied with their bank account service, highly
satisfied people are 16.7% and rest 6.7% people are dissatisfied.

From the above study there are 13.8% people response yes to change their bank account and
69% people response no to change their bank account and 17.2% people response maybe.

From the above study there are 50% people respond to recommend others to open a account
with HDFC and 50% people response to SBI.

83
5.3 Recommendations:
Banks should create awareness regarding their various banking products and services. Banks
should maintain secrecy and confidentiality of their customers account details and give
assurance of customer security. Banks should also do creative advertisement of their
insurance policies.
They should also provide proper knowledge to customers about various loans and rate of
interests. They should also focus their attention on rural are as to make their role more
dynamic.

They should keep updating their respective online banking apps regularly to
provide smooth functioning of the banks.

The banks should improve their efficiency and transparency in their working.
They should also focus on customers and make them free from clutches of
land lords and money lenders by encouraging all types of loans to customers.

Banks need to enhance their role of social responsibility towards customers.

Banks should follow the rules and regulations, ethics and conduct of Reserve Bank of India.
They should increase the level of providing personal attention to the individual customers.

84
 BIBLOGRAPHY

References

1. SHODHGANGA [Online],

[Available from]

https://shodhganga.inflibnet.ac.in/bitstream/10603/74914/8/file%206%20chapter%204.pdf

[Researcher] Kochhar, Sachpreet Singh.

2. BankBazaar [Online], [Available from]

www.bankbazaar.com

3. Paisabazaar [Online], [Available from]

www.paisabazaar.com

4. HDFC [Online], [Available from]

www.hdfc.com

5. SBI [Online], [Available from]

www.sbi.com

6. Money Control [Online], [Available from]

www.moneycontrol.com

7. Marketing91 [Online], [Available from]

www.marketing91.com/marketing-mix-hdfc/
[Researcher] Hitesh Bhasin

85
8. Google Search [Online],
https://www.google.com
https://en.wikipedia.org/wiki/List_of_banks_in_India#Private-sector_banks
https://en.wikipedia.org/wiki/Public_sector_banks_in_India
https://en.wikipedia.org/wiki/Banking_in_India
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9. Shod Gangotri [Online],

[Available from],
https://shodhgangotri.inflibnet.ac.in/jspui/bitstream/123456789/6874/3/03review%20
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