Final Research Report

A
RESEARCH REPORT
ON
“COMPARATIVE STUDY OF HOME LOANS OF PNB AND SBI BANK”
SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF
MASTER OF BUSINESS ADMINISTRATION
Session (2021-2023)
Submitted to: - Submitted By: -
Kurukshetra University, Kurukshetra Swati
Under the Supervision of: - MBA 2nd Year
Mr. Aryan Sharma 210163845
ASIA PACIFIC INSTITUE OF INFORMATION TECHNOLOGY SD INDIA
Approved by AICTE affiliated by Kurukshetra University, Kurukshetra.
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DECLARATION
I, SWATI the undersigned, hereby declare that the Research Report entitled,
“COMPARATIVE STUDY OF HOME LOANS OF PNB AND SBI BANK” submitted by
me to the KURUKSHETRA UNIVERSITY, KURUKSHETRA, in partial fulfillment of the
requirement for the award of degree of Master of Business Administration under the guidance
of Assistant Prof. ARYAN SHARMA, is my original work and the conclusions drawn therein
are based on the material collected by myself.
The Report submitted is my own work and has not been duplicated from any other source. I
shall be responsible for any unpleasure movement/situation.
SWATI
210163845
MBA 2nd Year
Place: APIIT SD India Panipat
Date: 13/04/2023
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SUPERVISOR CERTIFICATE
This is to certify that the research report titled, “COMPARATIVE STUDY OF HOME
LOANS OF PNB AND SBI BANK” is an academic work by Swati (210163845) submitted
in the partial fulfillment of the requirement for the award of the degree of Masters of Business
Administrations under my guidance and direction. To the best of my knowledge and belief
the data and information presented by student in the report has not been submitted earlier
elsewhere.
Mr. Madan Saini
(Head of Department)
(Department of Management Studies)
APIIT SD INDIA
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ACKNOWLEDGEMENT
A successful Research Report is the result of team work and co-ordination that includes not
only the group of developers who put forth the ideas, logic and efforts but also those who guide
them. So, at the completion of the Research Report, I feel obliged to extent my gratitude
towards all those who made valuable contributions throughout my training period.
I am thankful for all the knowledge, guidance and support imparted by Dr. PRATEEK
MISHRA (Director) to me who gave me invaluable knowledge during this period.
In addition, I wish to convey deep sense of gratitude towards Prof. MADAN SAINI (H.O.D)
at any time I needed.
At the end just as significantly, I would like to Express my sincere thanks to, Assistant Prof.
Mr. ARYAN SHARMA (Summer Training Report guide) and all the other staff members
who have provided me excellent knowledge and support throughout my Post Graduation.
I am very much thankful to my parents, brother/sister and friends for their continuous support.
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LIST OF TABLES
S. NO. PARTICULAR Page no.
01 Table 5.1: Occupation 38
02 Table 5.2: Association with Bank 39
03 Table 5.3: How you come to know about home loan 39-40
04 Table 5.4: Aware of types of home loans 41
05 Table 5.5: Terms and Conditions of home loans 42
06 Table 5.6: Interest rate charges by bank 43
07 Table 5.7: Loan Processing fast 44
08 Table 5.8: Satisfy with the home loan services provided by 45
bank
09 Table 5.9: Cost of home loan is appropriate according to 46
demand
10 Table 5.10: Satisfy with the employees behaviour of the 47
bank
11 Table 5.11: Bank gives any discount on loan services 48
12 Table 5.12: Satisfy by the time taken in sanctioning the loan 49
13 Table 5.13 Difficulty face during taking the loan 50
14 Table 5.14: Grade you want to give of home loan schemes 51
of the bank
15 Table 5.15: Occupation 52
16 Table 5.16: How many years you are associated with this 53
bank
17 Table 5.17: Home schemes of the bank 54
18 Table 5.18: Aware of these type of home loan 55
19 Table 5.19: Terms and Conditions of home loan 56
20 Table 5.20: Interest rate charge by your bank 56-57
21 Table 5.21: Types of services offered by bank 58
22 Table 5.22: Processing of bank loan is fast 58
23 Table 5.23: Satisfy with the after home loan services 59
provided by your bank are best as compare to other banks
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24 Table 5.24: Cost of home loan is appropriate, according to 60
your demand
25 Table 5.25: Satisfy with the employees behaviour of the 61
bank
26 Table 5.26: Satisfy by the time taken in sanctioning the loan 62
27 Table 5.27: Any difficulty during the loan 63
28 Table 5.28: Schemes of the bank 64
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LIST OF DIAGRAMS
S. NO. PARTICULAR Page no.
01 Diagram 5.1: Occupation 38
02 Diagram 5.2: Association with Bank 39
03 Diagram 5.3: How you come to know about home loan 40
04 Diagram 5.4: Aware of types of home loans 41
05 Diagram 5.5: Terms and Conditions of home loans 42
06 Diagram 5.6: Interest rate charges by bank 43
07 Diagram 5.7: Loan Processing fast 44
08 Diagram 5.8: Satisfy with the home loan services provided by 45
bank
09 Diagram 5.9: Cost of home loan is appropriate according to 46
demand
10 Diagram 5.10: Satisfy with the employees behaviour of the bank 47
11 Diagram 5.11: Bank gives any discount on loan services 48
12 Diagram 5.12: Satisfy by the time taken in sanctioning the loan 49
13 Diagram 5.13 Difficulty face during taking the loan 50
14 Diagram 5.14: Grade you want to give of home loan schemes of 51
the bank
15 Diagram 5.15: Occupation 52
16 Diagram 5.16: How many years you are associated with this bank 53
17 Diagram 5.17: Home schemes of the bank 54
18 Diagram 5.18: Aware of these type of home loan 55
19 Diagram 4.19: Terms and Conditions of home loan 56
20 Diagram 5.20: Interest rate charge by your bank 57
21 Diagram 5.21: Types of services offered by bank 58
22 Diagram 5.22: Processing of bank loan is fast 59
23 Diagram 5.23: Satisfy with the after home loan services provided 60
by your bank are best as compare to other banks
24 Diagram 5.24: Cost of home loan is appropriate, according to 61
your demand
25 Diagram 5.25: Satisfy with the employees behaviour of the bank 62
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26 Diagram 5.26: Satisfy by the time taken in sanctioning the loan 63
27 Diagram 5.27: Any difficulty during the loan 64
28 Diagram 5.28: Schemes of the bank 65
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TABLE OF CONTENT
Particulars………………………………………………………….. Page no.
Title Page……………..………………………………………………………… (i)
Declaration……………………………………………………………………… (ii)
Supervisor’s Certificate………………………………………………………… (iii)-7
Acknowledgement………………………………………………………………. (iv)
Chapter 1 Introduction…………………………………………………………... 1-23
1.1 Overview of the industry …….……….……………………………………… 2-4

1.2 Introduction to Company……………………………………………………… 5
1.3 Profile of the Organisation ……………………………………………………. 6-7
1.4 Recent achievement and Milestones …………………………………………. 8-10
1.5 Product Range of Company/Industry ………………………………………… 10
1.6 Performance of Company in last five years ……………………………… 10-12
1.7 Financial Status of The Organisation ………………………………………. 13-19
1.8 Future Plans ………………………………………………………………… 19-20
1.9 Introduction to Topic: Home Loan …………………………………………. 20-23
Chapter 2 Objective of the Study………………………………………………. 24-25
2.1 Objectives of Study………………………………………………………... 25
Chapter 3 Review of Literature………………………………………………... 26-33
3.1 Literature Review………………………………………………………… 23-24
Chapter 4 Research Methodology……………………………………………... 34-36
4.1 Design of Research…………………………………………………… 35
4.2 Sampling Plan…………………………………………………………. 35-36
4.3 Limitations……………………………………………………………….. 36
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Chapter 5 Data Analysis And Data Interpretation ………………………… 37-65
Chapter 6 Conclusion………………………………………………………. 66-67
5.1 conclusion …………………………………………………………… 67
Chapter 7 References and Biblography ………………………………. 68-71
6.1 References…………...…………………………………………… 69-71
Chapter 8 Annexure……………………………………………………… 72-74
8.1 Questionnaire…………………………………………………… 73-74
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CHAPTER 1
INTRODUCTION
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CHAPTER 1: INTRODUCTION
1.1 OVERVIEW OF THE INDUSTRY

HISTORY OF BANKING
Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the country’s first bank, Bank of Bengal,
was established. But the industry changed rapidly and drastically, after the nationalization
of banks in 1969. As a result, the public sector banks began experiencing numerous
positive changes and enormous growth. Then came the much talked-about liberalization
and economic reforms that allowed banks to explorenew business opportunities and not
just remain constrained to generating revenues from mere borrowing and lending. This
provided the Indian banking scenario a remarkable facelift that only continues to get
better with time. However, even today,despite the foray of foreign banks in the country,
nationalized banks continue to be biggest lenders in the country. This is primarily due to
the size of the banks and the penetration of the networks. The Indian banking system can
be classified into nationalized banks, private banks and specialized banking institutions.
The industry is highly fragmented with 30 banking units contributing to almost 50% of
deposits and 60% of advances. The Reserve Bank of India is the foremost monitoring
body in the Indian Financial sector.It is a centralized body that monitors discrepancies
and shortcomings in the system. Industry estimates indicate that out of 274 commercial
banks operating in the country,223 banks are in the public sector and 51 are in the private
sector. These private sector banks include 24 foreign banks that have begun their
operations here. The specialized banking institutions that include cooperatives, rural
banks, etc. form a part of the nationalized banks category.
The Banking sector is considered the most lucrative option in today’s job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed
by careers in Private Banking, Investment Banking and Retail Banking. Onecould work
in a variety of areas in banking industry including Recurring Deposit account, banking
officer, probationary officer, loan officer, assessor, personal loan officer, home loan
officer, home loan agent, loan manager, mortgage loan underwriter, loan processing
officer, accountant, product marketing and sales executive, and customer service
executive among others.
In the Financial Services, some of the important jobs include that of a stockbroker who
is essentially a person who buys and sells securities on behalf of individuals and
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institutions for some commission. While some brokers like to practice with individual
clients others work for institutions. Brokers who work for institutional investors are often
called securities traders. Many prefer to work as dealers, advisors and securities analysts.
Security analysts are those who advise companies on floatation’s of shares asthey are
expected to have sound knowledge of capital markets.
Investment analysts are the backbone of the financial services sector. They study the
financial reports of companies, assess various statistical information, profitability
projections, compare financial results, survey the industry as a whole and on the basisof
the available information, and finally conclude to a decision. Equity Analysts do jobs
similar to investment analysts and research the equity markets and make predictions.
1.1.1 GROWTH:
The limit for foreign direct investment in private banks has been increased from 49% to
74%. In addition, the limit for foreign institutional investment in private banks is 49%.
Liberalization and globalization have created a more challenging environment in the
banking sector as well as in the other segments of the financial sector such as mutual funds,
Non Banking Finance Companies, post offices, capital markets, venture capitalists, etc.
Research and Markets has announced the addition of 'Indian Retail Banking, 2006' to their
offering. Indian Retail Banking continues to redefine the credit growth in the country. It
grew by a whopping 44.4% in 2005-06 to touch Rs 3,538 billion. This leapwas despite the
increase in risk weight by RBI for housing and real estate loans during August, 2005.
Housing, which constitutes more than 52% of all retail loans, grew at a robust rate of
44.35% during 2005-06. In order to help banks in India to understand the market and
competition and plan future strategies, we have just come out with an Industry Insight on
Indian Retail banking - 2006 edition. This report analyses the retail banking market and its
segments in India and presents the key trends, along with issues and challenges. The report
also paints a future outlook for the market. Besides it profiles 21 major players in the retail
banking spaceand their strategies. Finally, it seems Reserve Bank of India's (RBI) flurry of
measures to restrain the home finance market is paying off. With tightening of interest rates
by the RBI and asimultaneous increase in real estate prices in a few markets, the banking
sector is witnessing a decline in the growth of its home loan portfolio.
The home loan industry is experiencing a growth of 25% this year, as against 30% growth
in home loans earlier. Rajiv Sabharwal, senior general manager, ICICI Bank, which has
recorded the highest incremental growth in home finance segment in recentpast, said, “The
real estate prices have become very high in few markets, which has resulted in the fall in
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growth rates for home loans for the banking industry. Home loangrowth has reduced to
25% from its earlier growth rate at 30% and since we are an integral part of the industry,
there will be some impact on us too.” He added that the bigger impact had come from real
estate prices, but obviously interest rates hikes will also have an impact. He, however,
declined to disclose thebank’s current home loan growth rate. Echoing a similar view, a
senior official ofState Bank of India (SBI) said the home loan market is showing some signs
of slowing down. However, another major player, Housing Development Finance
Corporation (HDFC) said the housing finance market for the middle class segment was
growing at a healthy pace. PNB Bank is a leading home loan lender of the country with
about 30% market share.Retail lending comprises 70% of the total loan portfolio of the
bank, of which the home loan lending is about 50%. In the first half of fiscal 2007, the bank
experiencedtotal home loan disbursements of Rs 13,400 crore.
1.1.2 MAJOR PLAYERS:

The financial sector in India has become stronger in terms of capital and the number of
customers. It has become globally competitive and diverse aiming, at higher productivity
and efficiency. Exposure to worldwide competition and deregulation in Indian financial
sector has ledto the emergence of better quality products and services. Reforms have
changed the face of Indian banking and finance. The banking sector has improved
manifolds in terms of capital adequacy, asset classification, profitability, income
recognition, provisioning, exposure limits, investment fluctuation reserve, risk
management, etc.
TOP 10 PLAYERS IN BANKING & FINANCE

• State Bank of India
• HDFC bank
• Citibank
• ICICI Bank
• Punjab National bank
• UTI Bank
• Hongkong & Shanghai Banking Corp.
• Kotak Mahindra Bank
• Sundaram Bank
• Oriental Bank of Commerce
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1.2 INTRODUCTION TO COMPANY:
PUNJAB NATIONAL BANK(PNB):

PNB has over 4500 branches and offices bringing the Punjab National Bank to your
doorstep. Around 2400 offices come under the network of Centralized Banking Solution
or CBS. A need for centralized banking system prompted PNB to go computerized and
what followed was the establishment of CBS in Punjab National Bank branches in all
the leading cities like Delhi, Pune, Chennai, Mumbai, Ahmedabad,Chandigarh, Gurgaon,
Hyderabad, Jalandhar, Kolkata, Ludhiana, Nodal and Bangalore. Internet Banking
Services are provided to all customers in the CBS branches. A branchand ATM locator
is also available on the official website of Punjab National Bank. Foran overview of the
annual report or the bank profile, the site can be resourceful. The website also provides
info on the careers and recruitments at PNB and the exam results. The careers at
nationalized banks like PNB are the most sought after one and candidatesare selected on
the basis of their exam result.
PNB topped the Best Paying Commercial Bank category with an overall rating of
87.45% as evaluated by the SSS Retirement, Death & Funeral Benefits Program.
STATE BANK OF INDIA(SBI):

State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic
network of over 9000 branches (approximately 14% of all bank branches) and
commands one-fifth of deposits and loans of all scheduled commercial banks in India.
The State Bank Group includes a network of eight banking subsidiaries and several non-
banking subsidiaries offering merchant banking services, fund management, factoring
services, primary dealership in government securities, credit cards and insurance.The
eight banking subsidiaries are:State Bank of Bikaner and Jaipur (SBBJ),State Bank of
Hyderabad (SBH).State Bank of India (SBI),State Bank of Indore (SBIR),State Bank
of Mysore (SBM),State Bank of Patiala (SBP),State Bank of Saurashtra (SBS) and State
Bank of Travancore (SBT).
Today, State Bank of India (SBI) has spread its arms around the world and has a network
of branches spanning all time zones. SBI's International Banking Group delivers the full
range of cross-border finance solutions through its four wings - the Domestic division,
the Foreign Offices division, the Foreign Department and the International Services
division.
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1.3 PROFILE OF THE ORGANISATION:
PROFILE OF PNB: The profile of the PNB shows superior banking services in
corporate, personal and international banking, industrial and agricultural finance and
finance of trade. Punjab National Bank boasts of a varied clientele consisting of small and
medium industrial units, exporters, multi-national companies, Indian conglomerates and
1NRI. The Bank is changing outdated front and back end processesto modern customer
friendly processes to help improve the total customer experience.With about 8500 of its
own 10000 branches and another 5100 branches of its Associate Banks already networked,
today it offers the largest banking network to theIndian customer. The Bank is also in
the process of providing complete paymentsolution to its clientele with its over 8500
ATMs, and other electronic channels such asInternet banking, debit cards, mobile banking,
etc. The objectives of the Company arein line with objectives laid down by RBI for the
Primary Dealers:
 Strengthen the infrastructure in the government securities market in order to

make it vibrant, liquid and broad based.
 Ensure the development of underwriting and market making capabilities for

Government Securities
 Improve secondary market trading system, which would contribute to price
discovery, enhance liquidity and turnover and encourage voluntary holding of
Government securities amongst a wider investor base
 Become an effective conduit for conducting open market operations.
PROFILE OF SBI: The SBI’s powerful corporate banking formation deploys multiple
channels to deliver integrated solutions for all financial challenges faced by the corporate
universe. The Corporate Banking Group and the National Banking Group are the primary
delivery channels for corporate banking products. The Corporate Banking Group consists of
dedicated Strategic Business Units that caterexclusively to specific client groups or specialize
in particular product clusters. Foremost among these a specialized group is the Corporate
Accounts Group (CAG), focusing on the prime corporate and institutional clients of the
country’s biggest business centers. The others are the Project Finance unit and the Leasing
unit. The National Banking Group also delivers the entire spectrum of corporate banking
productsto other corporate clients, on a nationwide platform.
6
The bank is also looking at opportunities to grow in size in India as well as Internationally.
It presently has 82 foreign offices in 32 countries across the globe. It has also 7 Subsidiaries
in India – SBI Capital Markets, SBICAP Securities, SBI DFHI,SBI Factors, SBI Life and
SBI Cards - forming a formidable group in the Indian Banking scenario. It is in the process
of raising capital for its growth and also consolidating its various holdings. Throughout all
this change, the Bank is also attempting to change old mindsets, attitudes and take all
employees together on this exciting road to Transformation. In a recently concluded mass
internal communicationprogramme termed ‘Parivartan’ the Bank rolled out over 3300 two
day workshops across the country and covered over 130,000 employees in a period of 100
days using about 400 Trainers, to drive home the message of Change and inclusiveness.
PNB HISTORY:
Punjab National Bank of India was established by Lala Lajpat Rai in the preindependence
India in 1895 in Punjab, with Lahore as its head office. Today it is thesecond largest public
sector bank in India. It was nationalized in 1969 along with 13 other major commercial
banks. The privatization started in 1989 when 30 per cent of its shares were offered to the
public and it was listed on the stock exchange.In 1992, PNB became the first Philippine
bank to reach P100 billion in assets. Later that year, privatization continued with a second
public offering of its shares.
In August 2005, PNB was fully privatized. The joint sale by the Philippine governmentand
the Lucio Tan Group of the 67% stake in PNB was completed within the third quarter of
2005. The Lucio Tan Group exercised its right to match the P 43.77 per sharebid offered by
a competitor and purchased the shares owned by the government. The completion of sale
is expected to speed up the development of PNB’s franchise and operational
competitiveness.
SBI HISTORY:
The origins of State Bank of India date back to 1806 when the Bank of Calcutta (latercalled
the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency
banks (Bank of Madras and Bank of Bombay) were amalgamated toform the Imperial Bank
of India. In 1955, the controlling interest in the Imperial Bankof India was acquired by the
Reserve Bank of India and the State Bank of India (SBI)came into existence by an act of
Parliament as successor to the Imperial Bank of India.
7
Today, State Bank of India (SBI) has spread its arms around the world and has anetwork
of branches spanning all time zones. SBI's International Banking Group delivers the full
range of cross-border finance solutions through its four wings - theDomestic division, the
Foreign Offices division, the Foreign Department and the International Services division.
workshops fired the imagination of the employees with some other banks in India aswell
as other Public Sector Organizations seeking to emulate the programme.
1.4 RECENT ACHIVEMENTS AND MILESTONES:
PNB RECENT ACHIVEMENTS AND MILESTONES:
Punjab National Bank (PNB), has announced that it has completed 100% core banking
implementation at all its 4604 branches and extension counters through the Finacle
Universal Banking Solution from Infosys, on Sun infrastructure and the Oracle Database
setting a significant milestone for themselves and a new benchmarkfor the Indian banking
industry. Completed in November 2008, 4 months ahead of schedule, the bank
implemented industry-leading Finacle core banking solution from Infosys across its
operations running a flexible, and scalable database platform from Oracle and innovative
serversfrom Sun Microsystems With an increasingly dynamic business and regulatory
environment, PNB sought tonot only achieve automation, but also centralize operations,
standardize branch processes, achieve high scalability for future business growth, provide
flexibility ofcreating innovative banking products to its lines of business, and at the same
time, reduce overall costs. The visionary zeal and the futuristic view of the Bank’s top
management in the year 2007-2008 incubated the idea of introduction of a Centralised
Banking solution. Thebold and innovative thought culminated into the CBS architecture
with Finacle application on Oracle Database and Sun hardware platform with Solaris
Operating System. With Finacle’s agile and future proof technology, the bank today has
over 22,500 concurrent users. The solution’s scalability has also enabled the bank’s
scalability tobe the best in the country with the number of peak transactions at 3.5 million.
Finacle core banking platform also provides the bank with exceptional agility for product
innovation and improved flexibility of operations. With seamless integrationof delivery
channels such as ATM and internet banking solutions, PNB is able to provide 24X7
services to customers at a reduced transaction cost. PNB’s choice of the Oracle Database
has provided the bank’s IT infrastructure with robustness, management features, security
and scalability as well as performance requirements to service 3.5 million transactions
8
and 22500 concurrent users – a significant achievement in the Indian banking industry. In
addition, the Oracle Database will help PNB take control of its enterprise information,
gain better businessinsight, and quickly and confidently adapt to an increasingly changing
competitive environment. With secure, highly available and scalable grids of low-cost
servers and storage, Oracle customers can tackle the most demanding transaction
processing, data warehousing, business intelligence and content management
applications. The 100% implementation of Finacle Core Banking Solution shall enable
PNB to further reduce operational costs and revenue leakage while improving
productivity ofbranches, introduction of new and innovative products and visibility of
business. Theanywhere anytime banking facility will enable the bank to offer products
for every segment of the customer. PNB long-standing and progressive partnership also
highlights Finacle’s leadership inlarge scale banking transformation, the solution’s future
proof technology and powerful capabilities. India is a strategic market for Finacle and we
look forward to closely collaborating with Punjab National Bank for their future growth
plans.”
SBI RECENT ACHIVEMENTS AND MILESTONES:
AWARDS:SBI has been the proud recipient of the ICRA Online Award - 8 times, CNBC
TV – 18, Crisil Award 2006 - 4 Awards, The Lipper Award (Year 2005-2006)and most
recently with the CNBC TV - 18 Crisil Mutual Fund of the Year Award 2007 and 5 Awards
for our schemes.
SBI Card reaches three million milestone: SBI Card, a joint venture between State Bank
of India and GE Money, announced yet another landmark achievement of crossing the three
million cardholders-mark. Roopam Asthana, CEO-SBI Card, said, "This milestone is even
more remarkable as we have added one million cardholders in just ten months. Our
objective is to accelerate the pace of growth by extending the benefits to a broader range
of consumers in Tier II cities, along with improved value propositions for the urban affluent
customers." SBI Card recently signed up Indian cricketer Yuvraj Singh as its brand
ambassador.
SBI joins Chinese bank to touch 10,000 branches:

Public sector State Bank of India on Sunday became only the second bank in the
world to have 10,000 branches when Union Finance Minister P Chidambaram
inaugurated its latest branch here. Speaking on the occasion, Chidambaram said
9
China's ICBC Bank was the other bankto have 10,000 branches. Opening 10,000
branches was a great feat. "It is not an easymilestone though the SBI was the bank of
the government and Indian people even before other banks were nationalised," he
said. People all over the world, including the Chinese, would now know about this
small village where the 10000th branch of the SBI had been opened, he said adding
they would be amazed by the bank's growth. The bank should be proud of the
achievementhe said and wished that the bank opened one lakh branches.The Minister
said out of the over 100 crore people, seventy 75 per cent did not have any type of
insurance. Similarly, 50 per cent of the 11 crore farmers did not have bankaccount.
Banks should go to the people and enroll them as account holders. 'That is what
economists say is financial inclusion,' he said.
1.5 PRODUCT RANGE OF COMPANY/INDUSTRY:
The products and services provided by the SBI and PNB are in various fields, such as:
• Banking services
• NRI services
• International banking
• Corporate banking
• Agricultural banking
• International banking
1.6 PERFORMANCE OF COMPANTY IN LAST FIVE

YEARS:
PNB performance in last five years:

1st Quarter Net Income UP 48% Year-on-Year Taking-off from a breakthrough
performance in 2007 with a registered net income of P1.5 billion, PNB continues to
reap the benefits from its efforts to strengthen core businesses, reduce non-performing
assets and manage costs. Net Income for the 1st Quarter of 2008 registered P457
million, up 48% from P308 million of the same period last year. This performance
bucks industry trends for the 1st quarter of 2008 based on published income reports.
10
Even as the operating environment proved volatile where negative trends are expected,
PNB still managed to reflect a 136% growth in foreign exchange gains year-on-year,
from P242 million to P571 million. A relentless focus in generating low-cost funds from
deposits and other funding sources led to a reduction in total interest expense by as
much as 27%. Total deposits closed firm at P180 billion. Operating expenses were down
23% despite investments made in systems enhancement and upgrading of facilities. The
Bank has recently implemented a new generation core banking system: Flexcube – an
end-to-end solution designed to automate both corporate and retail banking businesses;
and effectively in-source core overseas operations to its global data center in the
Philippines. PNB’s Japan, Singapore, Hongkong and United States branches as well as
the London subsidiary have already been converted and the rest of the Bank is expected
to go live soon. As of March 31, 2008, PNB’s consolidated total asset size remained
strong at P242 Billion, up P2.7 billion versus end-2007. With the significant
strengthening of its balance sheet over the past few years, PNB has been able to
concentrate on generating new client relationships in the corporate segment, both in the
large and SME categories. The contribution from the consumer finance business has
likewise continued to register accelerated growth. Total consumer loans portfolio stood
at P3.3 billion, up 25% from end-2007. Combined new bookings for the 1st quarter
2008 already reached the half-billion mark. PNB’s Net Loans and Receivables closed
P77 billion. As of March 31, 2008, PNB’s Capital Adequacy Ratio under Basel II
remained formidable at 18.51%, still way above the 10% ratio required by the Bangko
Sentral ng Pilipinas. Subject to appropriate approvals and clearances, PNB is going to
the capital markets to raise a minimum of P3 billion of Tier 2 Capital in preparation for
its maturing subordinated notes in February 2009. PNB will emerge as the 4th largest
domestic bank in the country in terms of asset size once its planned merger with Allied
Banking Corporation (ABC) is completed. The respective Board of Directors of PNB
and ABC passed resolutions last April 30, 2008 approving the plan to merge the two
banks. This transaction is subject to the approval of shareholders and regulatory
authorities and is expected to be completed by the 3rd quarter of 2008.
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SBI performance in last five years:
State Bank of India (SBI) is all geared up to increase its business per employee and
profit per employee as it thinks that for SBI,these two parameters are among the
lowest in the industry. On one hand, the bank is trying to reduce its staff strength
which would eventually improve the ratios; but on the other, the bank is also goingflat
out to increase its customer base. "Our business per employee and profit per employee
is one of the lowest in the industry," SBI had recently said in a joint statement issued
by the management and unions. SBI's generates Rs 2.99 crore of business per
employee, while its profit per employee is just about Rs 2.17 lakh. By contrast,
majority of the large public sectorbanks are better in terms of both these parameters.
For instance, Canara Bank has a business per employee (BPE) of Rs 4.42 crore, while
Union Bank of India's BPE is at Rs 4.36 crore and Bank of Baroda's (BoB) Rs 3.51
crore. These are according to their respective annual reports for 2005-06. On the other
hand, Canara Bank's profit per employee (PPE) is also on the higher sideat Rs 3.02
lakh. The PPEs of Union Bank and BoB are at Rs 2.66 lakh and Rs 2.13 lakh,
respectively. "Over the years, we have been steadily losing our market share from
about 35% in 1970s to around 16% in 2006. Our vast network is failing to attract the
new and demanding young customers," SBI said in that statement, which is addressed
to all SBI officers and employees and aimed at changing their attitude towards
customers. The statement was jointly signed by chairman OP Bhatt, managing
directors TS Bhattacharya and Yogesh Agarwal and top office bearers of its officers
and employees associations. To address these issues, both the management and unions
have agreed to work hand inhand. They have appealed to the bank's staffs to go flat
out to increase its customer base. "Let us be conscious of the customer's overall needs
rather than only the transaction at hand. Let us expand our customer base," the
statement read. The bank has nearly 37 lakh savings bank accounts in the Bengal circle
itself. Meanwhile, the country's largest and oldest bank has offered an exit option
scheme (EOS) to its employees. The bank has some 2.1 lakh staffs, out of whichnearly
1.4 lakh are clerical and subordinate employees.
12
1.7 FINANCIAL STATUS OF THE ORGANISATION:
PNB financial status for last five years:
Table 1: Annual results

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar
'04
Sales 14,265.02 11,537.48 9,584.15 8,459.85 7,778.94
Operating profit 10,029.21 7,149.74 5,721.06 4,683.04 4,056.84
Interest 8,730.86 6,022.91 4,917.39 4,453.11 4,154.99

Gross profit 4,006.24 3,230.64 2,874.77 2,707.21 3,120.86
EPS (Rs) 64.98 48.84 45.65 44.72 41
Table 2: Balance sheet
13
Table 3:P& L Account
Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar ' 04
Income:
Operating income 15,925.65 12,104.24 9,791.12 9,712.63 9,617.34
Expenses
Material consumed - - - - -
Manufacturing expenses - - - - -
Personnel expenses 2,461.54 2,352.45 2,114.97 2,121.23 1,654.06

Selling expenses 23.31 18.03 20.15 19.16 10.85
Adminstrative expenses 1,247.47 1,360.77 941.38 933.60 1,764.91
Expenses capitalized - - - - -
14
Cost of sales 3,732.33 3,731.25 3,076.51 3,073.99 3,429.82
Operating profit 3,462.46 2,350.09 1,797.23 2,185.53 2,032.53
Other recurring income 231.62 186.67 131.54 470.69 59.85
Table 4: Cash flow

Mar ' 08 Mar ' 07 Mar ' 06 Mar ' 05 Mar
'04
Profit before tax 3,295.91 2,169.13 2,033.87 1,904.74 1,768.68
Net cashflow-operating activity 1,756.13 -10,144.34 14,961.44 1,073.53 529.29
Net cash used in investing activity -444.46 -159.41 -465.64 -349.83 -176.20
Netcash used in fin. activity 1,873.54 1,157.57 -793.13 1,544.81 390.24
Net inc/dec in cash and equivlnt 3,185.21 -9,146.17 13,702.66 2,268.51 743.33
Cash and equivalnt begin of year 15,645.52 24,791.69 11,089.03 8,820.51 8,077.19
Cash and equivalnt end of year 18,830.72 15,645.52 24,791.69 11,089.03 8,820.51
15
Table 5: SBI Annual results for last five years
Sales - - 0.90 0.44 0.66
Operating profit - - 0.35 -0.06 -0.03
Interest 24.67 21.36 21.29 21.30 21.30
Gross profit -24.63 -18.24 -4.79 -21.17 -20.35
EPS (Rs) -16.42 -12.17 -3.19 -14.13 -13.58
BALANCE SHEET
16
17
Table 6: Profit and loss
Account
Income:
Operating income 1.02 0.90 0.44 0.66 10.90
18
Table 7: Cash flow
FUTURE PLANS:
PNB FUTURE PLANS:

PNB has initiated various steps in a bid to expand its operations in the state of Kerala.These
include opening new branches and increasing the number of its core banking solutions
branches. PNB currently has 71 CBS branches in Kerala and has registered good growth from
this region. PNB in looking at increasing its international presence and in line with this, the
company is planning to set up offices in UK, Singapore, Hong Kong and Canada. TheCanada
office is likely to open very soon, while the other locations are likely to commence operations
by end of this fiscal year. PNB unvieled its plans to raise additional capital of Rs. 21,000
million to fund itsbusiness expansion plans for this current fiscal.
19
SBI FUTURE PLANS:
SBI has set for itself an ambitious target of credit linking 1 million SHGs up to March
2008.The Bank has started to leverage our vast SHG network for various services beyond
credit delivery. The State Bank of India (SBI) has formulated a “home-grown strategy” to
merge its six associated banks with it within this fiscal. SBI drawn up a home-grown
strategy to carry out the merger programme and we maytake up such mergers one by one,
or two at a time or in a phased manner. SBI want the future mergers to be as smooth as the
merger.Post-merger, the size of SBI’s balance sheet will cross Rs 12,00,000 crore and its
profitablity will increased.
1.9 INTRODUCTION TO TOPIC: HOME LOANS

Home loans work like any other debt. That is, loans are simply specific money that we
borrow from a bank, a private lender, or some other type of lender. Afterwards, we must
repay our debts with interest. However, unlike other types of loans, home loans are
different in several respects. Owning a piece of land or property is a lifetime dream for
every individual. There are many home loans provider in the market. Thereare different
type of home loan i.e.
• Home Purchase Loans

• Home Improvement Loans
• Home Construction Loans
• Home Extension Loans
• Home Equity Loans
• Land Purchase Loans
• Bridge Loans
Home purchase loans: These are the basic forms of home loans used for
purchasing of a new home. With about a million home lenders and mortgage brokers
it's becoming a tough challenge as the days are progressing. But at the same time, when
the sites are coming up with all the latest tools and relevant information for us, and with
all such conveniences, obtaining a home purchase loan or mortgage has become really
pretty simple. However, at the same time though, we may be flummoxed to look so
many attractive rates and offers in the market, not to forget the hidden costs associated
with each of them.
20
Home improvement loan: Home improvement loans are used to finance
improvements and add on to the existing set of credentials of beauty on your owned
house, recently purchased property or rented accommodation. Home improvement
loans are used to maintain or enhance the value of your house.
In general it includes: repairs, remodeling, energy-related items (permanent in nature),
repairs, a new kitchen, a new bathroom, terrace, an extension or general property
improvements. Luxury items and fireplaces are generally not eligible, though. Many
improvements in landscape and even swimming pools are nowadays considered to be a
part of home improvement.
Home construction loan: Home construction loans are used to finance for the
construction of our newly acquired home or if we are planning to build a home.
The factors include in calculations for house building costs?
• Design of the house
• Construction cost
• Financing Cost
• Buildable site
All the above mentioned costs will help us to determine the amount we may need to
borrow. For example, besides calculating the construction costs, we may also be
required to consider the total expenditures to develop the site in order to build. Each site
is unique requiring different expenditures so this specific rupee amount will vary from
site location to site location.
Payment: Before the house starts getting build, we will be required to pay a deposit to
your builder as well as paying a deposit for the land if we are buying land. As work
progresses you will need to make payments to the builder. Certain loans can be
structured for progress payments to be made during construction.
Home extinction loan

Home extension loans are used by customers to get loans from the banks to extend their
houses, by adding more rooms, kitchens, wash rooms, terraces, or any other rooms for
your growing family. It may also be used to enclose open balcony/terrace space, or
constructing a Puja ghar.
21
Maximum Amount of Home Extension Loans:
Banks generally offers about 70-85% of the total amount of home extension as loan.
The amount of loan sanctioned also depends on a number of factors such as the age of
the applicant at the time of loan, tenure of the loan, repayment capacity of the borrower;
his/her credit history etc.
Home Equity loan:

Home equity loans helps customer to encash the market value of the commodity by taking
a loan by mortgaging the property. So, Home equity loans are availed by customers, who
wish to mortgage his/her property to the bank for taking some loan forsome other purpose.
Then, it's up to the bank's discretion to consider the market value of the property and
accordingly decide how much to pay to the customer.
Both the residential as well as non residential property can be considered for the
approval of the loan, provided the mortgager is a licensed title holder and the land is
free form any kind of dispute. Home equity loans don't restrict one to use the loan
money in specific investments. It might also be used in marriage, higher education,
medical expenses, etc. However it should not be used in any illegal or speculation
purposes.
Land Purchase loan:

Land Purchase loans are used by customers who wish to purchase a plot of land for
commercial or residential purpose. Everyone has his/her dream perfectly sketched in
his souls and so is his ambition to get his house erected on the exact location he dreamt
that to be. If you have found and shorlisted the piece of land, and have arrived here for
finance, you have come to the best place you could have arrived in the web.
Now, that you have decided to purchase a land as an investment or for your own dream
home, you will realize that a land purchase loan is one you will cherish.
Loans that are strictly for land purchase can be as scarce as good residential plots. While
many lending firms around the nation compete to provide mortgages for the purchase
of a house on a lot, only local institutions typically will be interested in lending for an
empty lot.
22
Bridge loan:
Bridge loans are designed for people who wish to sell the existing home and purchase
another one. The bridge loans help finance the new home, until a buyer is found for the
home. Bridge loans are used by customers as an effective vehicle to capitalize on a
purchase opportunity. It can be considered as a short term financing scheme which is
generally expected to be paid back, within the range of 6-36 months, till the time the
borrower gets more permanent and lower cost financing.
So, bridge loans, (or swing loans as they are otherwise said) is a short term loan provided
by various banks like Bank of India, Citibank, ICICI etc. often used for commercial real
estate purchases, retrieve real estate from foreclosure. Bridge loans in corporate finance
are called gap financing, and are used to cover the time between redemption of issuance
of one bond and its replacement by a new issue. They can also be operating loans for
periods between LOI and acquisition, or quiet period and IPO.
23
CHAPTER 2
OBJECTIVES OF THE STUDY
24
CHAPTER 2: OBJECTIVES
2.1 OBJECTIVE OF THE STUDY

 To study the cost of home loans provided by the bank.
 To know that which bank provide batter loan schemes.
 To analyze the home loan scheme by PNB and SBI banks.
 To know the consumer perception about the home loan of PNB and SBI.
 This study is analysis and comparison of home loans provided by the SBI and PNB
banks. It is helpful in analysing the home loan service provided to the customer and
their comparison.
25
CHAPTER 3
LITERATURE REVIEW
26
1) In august 2001 James B. Thomson and Ben R. Craig had studied about the
Federal Home Loan Bank Lending to Community Banks,are Targeted
Subsidies Necessary? The Gramm-Leach-Bliley Act of 1999 amended the
lending authority of the Federal Home Loan Banks to include advances
secured by small enterprise loans of community financial institutions. Three
possible reasons for the extension of this selective credit subsidy to
community banks and thrifts are examined, including the need to: subsidize
community depository institutions, stabilize the Federal Home Loan Banks,
and address a market failure in rural markets for small enterprise loans.They
empirically investigate whether funding constraints impact the smallbusiness
lending decision by rural community banks. Specifically, they estimate two
empirical models of small-business lending by community banks. The data reject
the hypothesis that access to increased funds will increase the amount of small-
business loans made by community banks.
2) In December 2006 Fulbag Singh and Reema Sharma had studied about the
housing Finance in India. Housing, as one of the three basic needs of life,
always remains on the top priority of any person, economy, government and
society at large. In India, majority of the population lives in slums and
shabby shelters in rural areas. From the last decade, the Government of India
has beencontinuously trying to strengthen the housing sector by introducing
various housing loan schemes for rural and urban population. The first
attempt in this regard was the National Housing Policy (NHP), which was
introduced in 1988. The National Housing Bank (NHB) was set up in 1988
as an apex institution for housing finance and a wholly-owned subsidiary of
Reserve Bank of India (RBI). The main objective of the bank is to promote
and establish the housing financial institutions in the country as well as to
provide refinance facilities to housing finance corporations and scheduled
commercial banks. Moreover, for the salaried section, the tax rebates on
housing loans have been introduced. The paper is based on the case study
of LIC Housing Finance Ltd., which analyzes region-wise disbursements of
individual house loans, their portfolio amounts and the defaults for the last
ten years, i.e., from 1995-96 to 2004-05 by working out relevant ratios in
terms of percentages and the compound annual growth rates. A relevant
chart has also been prepared to highlight the results.
27
3) In May 18, 2007 Michael LaCour-Little had studied about the Economic
Factors Affecting Home Mortgage Disclosure Act Reporting. The public
release of the 20042005 Home Mortgage Disclosure Act data raised a number
of questions given the increase in the number and percentage of higher-priced
home mortgage loans and continued differentials across demographic groups.
Here we assess three possible explanations for the observed increase in 2005
over 2004: (1) changes in lender business practices; (2) changes in the risk
profile of borrowers; and (3) changes in the yield curve environment. Results
suggest that after controlling for the mix of loan types, credit risk factors, and
the yield curve, there was no statistically significant increase in reportable
volume for loans originated directly by lenders during 2005, though indirect,
wholesale originations did significantly increase. Finally, given a model of the
factors affecting results for 2004-2005, we predict that 2006 results will
continue to show an increase in the percentage of loans that are higher priced
when final numbers are released in September 2007.
4) In may 1991 Stephen F. Borde had studied about the “Is the Savings and Loan
Industry Facing Extinction?” This article tells about the Saving and loan crisis.
Proposed solutions are discussed in the context of the industry as it currently
stands. With a somewhat similar liability structure to that of banks (mainly
short-term deposits), the asset structure of S&Ls is quite different. Whereas
banks assets consist of short-term loans, S&L assets consist largely of long-
term loans, such as home ownership mortgages. Therefore, in the absence of
adequate hedging measures, S&Ls are more vulnerable to interest rate risk,
which can lead to lower profits when interest rates rise.
5) In June 29, 2001 Joshua Rosner had studied about the Housing in the New
Millennium: A Home Without Equity is Just a Rental with Debt.
They studied about the prospects of the U.S. housing/mortgage sector over the
nextseveral years. Based on our analysis, we believe there are elements in place
for the housing sector to continue to experience growth well above GDP.
However, we believe there are risks that can materially distort the growth
prospects of the sector. Specifically, it appears that a large portion of the
housing sector's growth in the 1990's came from the easing of the credit
underwriting process. Such easing includes:The drastic reduction of minimum
down payment levels from 20% to 0%
* A focused effort to target the "low income" borrower
28
* The reduction in private mortgage insurance requirements on high loan to
valuemortgages
* The increasing use of software to streamline the origination process
and modify/recast delinquent loans in order to keep them classified as

"current" * Changes in the appraisal process which has led to
widespread overappraisal/overvaluation problems
If these trends remain in place, it is likely that the home purchase boom of the
past decade will continue unabated. Despite the increasingly more difficult
economic environment, it may be possible for lenders to further ease credit
standards and more fully exploit less penetrated markets. Recently targeted
populations that have historically been denied homeownership opportunities
have offered the mortgage industry novel hurdles to overcome. Industry
participants in combination with eased regulatory standards and the support of
the GSEs (Government Sponsored Enterprises) have overcome many of them.
If there is an economic disruption that causes a marked rise in unemployment,

the negative impact on the housing market could be quite large. These impacts
come in several forms. They include a reduction in the demand for
homeownership, a decline in real estate prices and increased foreclosure
expenses. These impacts would be exacerbated by the increasing debt burden
of the U.S. consumer and the reduction of home equity available in the home.
Although we have yet to see any materially negative consequences of the
relaxation of credit standards, we believe the risk of credit relaxation and
leverage can't be ignored. Importantly, a relatively new method of loan
forgiveness can temporarily alter the perception of credit health in the housing
sector. In an effort to keep homeowners in the home and reduce foreclosure
expenses, holders of mortgage assets are currently recasting or modifying
troubled loans. Such policy initiatives may for a time distort the relevancy of
delinquency and foreclosure statistics. However, a protracted housing
slowdown could eventually cause modifications to become uneconomic and,
thus, credit quality statistics would likely become relevant once again. The
virtuous circle of increasing homeownership due to greater leverage has the
potential to become a vicious cycle of lower home prices due to an accelerating
rate of foreclosures.
29
In dec 2002 Melissa B. Jacoby had studied about the Home Ownership Risk
Beyonda Subprime Crisis: The Role of Delinquency Management. They studied
that Public investment in and promotion of homeownership and the home
mortgage market often relies on three justifications to supplement shelter goals:
to build household wealth. and economic self-sufficiency, to generate positive
social-psychological states, and to develop stable neighborhoods and
communities. Homeownership and mortgage obligations do not inherently
further these objectives, however, and sometimes undermine them. The most
visible triggers of the recent surge in subprime delinquency have produced calls
for emergency foreclosure avoidance interventions (as well as front-end
regulatory fixes). Whatever their merit, I contend that a system of mortgage
delinquency management should be an enduring component of housing policy.
Furtherance of housing and household policy objectives hinges in part on the
conditions under which homeownership is obtained, maintained, leveraged, and
- in some situations - exited. Given that high leverage or trigger events such as
job loss and medical problems play significant roles in mortgage delinquency
independent of loan terms, better origination practices cannot eliminate the need
for delinquency management.
6) One function of this brief essay is to identify an existing rough framework for
managing delinquency. Legal scholarship should no longer discuss mortgage
enforcement primarily in terms of foreclosure law and instead should include
other debtor-creditor laws such as bankruptcy, industry loss mitigation efforts,
and thirdparty interventions such as delinquency housing counseling. In terms
of analyzing this framework, it is tempting to focus on its impact on mortgage
credit cost and access or on the absolute number of homes temporarily saved,
but my proposed analysis is based on whether the system honors and furthers
the goals of wealth building, positive social psychological states, and
community development. Because those ends are not inexorably linked to
ownership generally or owning a particular home, a system of delinquency
management that honors these objectives should strive to provide fair,
transparent, humane, and predictable strategies for home exit aswell as for home
retention. Although more empirical research is needed, this essay starts the
30
process of analyzing mortgage delinquency management tools in the proposed
fashion.
7) In 1999 Yoko Moriizumi had studied about the Current Wealth, Housing
Purchase and Private Housing Loan Demand in Japan.
Japanese households accumulate wealth for downpayments at a high rate.
Therefore, current wealth plays an important role in home acquisition as public
loans whose direct mortgage lending is a strong support for home purchasers.
We estimate the wealth effect on private mortgage debt as well as housing
consumption by applying a model where mortgage debt demand is derived from
house purchase decisions and is determined jointly with housing consumption.
We use a simultaneous equation Tobit estimation method. Wealth effects on
private mortgage debt, likelihood of borrowing, and housing consumption are
not elastic. On the other hand, a change in housing consumption affects the
likelihood of borrowing elastically much more thanthe private mortgage amount
of borrowers. Housing and private mortgage markets fluctuate very closely with
the number of participants in the mortgage market.
Therefore, the number of housing starts is linked strongly to the private
mortgage market.
8) Robert B. Avery and Allen N. Berger had studied about the Loan commitments
and bank risk exposure. They studied about the Loan commitments increase a
bank's risk by obligating it to issue future loans under terms that it might
otherwise refuse. However, moral hazard and adverse selection problems
potentially may result in these contracts being rationed or sorted. Depending on
the relative risks of the borrowers who do and do not receive commitments,
commitment loans could be safer or riskier on average than other loans. the
empirical results indicate that commitment loans tend to have slightly better
than average performance, suggesting that commitments generate little risk orthat this
risk is offset by the selection of safer borrowers.
9) Sumit Agarwal,Souphala Chomsisengphet and John C. Driscoll had studied

about the Loan commitments and private firms. They studied that, Most loans
are in the form of credit lines. Empirical studies of line demand have been
31
complicated by their use of data on publicly traded firms, which have a wide
menu of financing options. We avoid this problem by using a unique proprietary
data set from a large financial institution of loan commitments made to 712
privately-held firms. We test Martin and Santomero's (1997) model, in which
lines give firms the speed and flexibility to pursue investmentopportunities. Our
findings are consistent with their predictions. Firms facing higher rates and fees
have smaller credit lines. Firms with higher growth commit to larger lines of
credit and have a higher rate of line utilization. Firms experiencing more
uncertainty in their funding needs commit to smaller creditlines. Almost all
firms convert unused credit line portions into spot loans and take out new lines.
10) Faik Koray and Eric T. Hillebrand had studied about the Interest Rate Volatility
and Home Mortgage Loans . they studied that The U.S. economy has
experienced substantial fluctuations in real and nominal interest rates since the
1970s. This paper investigates empirically the relationship between home
mortgage loans and volatility in mortgage rates for the period 1971:02 through
2003:03. Contrary to common wisdom, we find a positive relationship between
mortgage rate volatility and home mortgage loans. Further investigation
indicates that this is due to volatility in the bond market. In times of high interest
volatility, households disinvest in government securities and invest in real
assets, which yield a positive relationship between mortgage rate volatility and
home mortgage loans.
11) In nov 2000 Michelle J. White and Emily Y. Lin had studied about the
Bankruptcy and the Market for Mortgage and Home Improvement Loans. They
studied that This paper investigates the relationship between bankruptcy
exemptions and the availability of credit for mortgage and home improvement
loans. We develop a combined model of debtors' decisions to file for bankruptcy
and to default on their mortgages and show that the theory predicts positive
relationships between both the homestead and personal property exemption
levels and the probability of borrowers being denied mortgage (secured) and
home improvement loans. We test these predictions empirically and find strong
and statistically significant support when evidence from crossstate variation in
bankruptcy exemption levels is used. Applicants for mortgages are 2 percentage
points more likely to be turned down for mortgages and 5 percentage points
32
more likely to be turned down for home improvement loans if they live in states
with unlimited rather than low homestead exemptions. These relationships also
hold when we introduce state fixed effects into the model.
12) In aug 2007 Michael LaCour-Little had studied about the The Home Purchase
Mortgage Preferences of Low- and Moderate-Income Households. Housing
policy in the United States has long supported homeownership, yet variation
persists across income groups. This article employs recent mortgage origination
data to focus on the revealed preferences of low- and moderateincome (LMI)
households in home purchase mortgage choice. I identify the factors associated
with conventional conforming, FHA, nonprime and specially targeted
programs. Empirical results show that individual credit characteristics and
financial factors, including pricing, generally drive product choice, with some
variation evident when loans are originated through brokers. Results also
indicate that targeted conventional programs effectively compete with
government-insured products in the LMI segment.
13) In march 2001 Tullio Jappelli and Maria Concetta Chiuri had studied about the
Financial Market Imperfections and Home Ownership: A Comparative Study.
They explore the determinants of the international pattern of home ownership
using the Luxembourg Income Study (LIS), a collection of microeconomic
data on fourteen OECD countries. In most, the cross-section is repeated over
time and includes several demographic variables carefully matched between
the different surveys. This allows us to construct a truly unique international
dataset, merging data on more than 400,000 households with aggregate panel
data on mortgage loans and down payment ratios. After controlling for
demographic characteristics, country effects, cohort effects and calendar time
effects, we find strong evidence that the availability of mortgage finance - as
measured by outstanding mortgage loans and down payment ratios - affects
the age-profile of home ownership, especially at the young end. The results
have important implications for the debate on the relationship between saving
and growth.
33
CHAPTER 4
RESEARCH METHODOLOGY
34
4.1 Design of Research:
The research will be exploratory in nature. A population of peoples who take home loan
from these banks will be considered for this study. I will try to explore about the home
loans which would make a difference in the behavior of the consumer. Effort will be
made to throw light on most of the factors which have either indirect or direct effect on
the behavior of the consumer. I will also explore the impact of home loans on the market
share of the banks.
4.2 Sampling plan:
• Population:
The study aimed to include the customers of SBI and PNB in nawanshahr, to
make a comparative analysis of home loan schemes of these two banks..
• Sample Size:
A Sample size of 100 respondents will be taken for the current study because it is
not possible to cover the whole universe in the available time period. So it is
necessary to take the sample size. In 100 respondents 50 respondents from PNB and
50 from SBI. The sample will the peoples of age group lying between eighteen to
thirty years. The sample will be taken in the form of strata based on age, sex, and
income group.
• Sampling technique:
The sampling technique will be probabilistic sampling more specifically the random
convenient and judgemental sampling will be used. As in probabilistic sampling the
select unit for observation with known probabilities so that statistically sound
assumptions are supported from the sample to entire population so that we had
positive probability of being selected into the sample. I will go for stratified random
sampling as we are interested to study the home loan by SBI and PNB banks, so we
will make the strata on the basis of age, occupation, income level, gender. Andfrom
each strata we will go for random sampling.
35
Sources of Data:
I will use primary source of data that is structured questionnaire. As these banks are
established from so many years, so many researchers have done research on this topic,
so we will find secondary data also and also use this data for the help of this research.
So, this research data will collected from the primary source and secondary source. Our
method of collecting the data is from the questionnaire that will be filled by the
respondent from the sample, it will be structured questionnaire.
Tools and Techniques:
As no study could be successfully completed without proper tools & techniques, same
with my project. For the better presentation and right explanation I used tools of
statistics and computer very frequently and I am very thankful to all those tools for
helping me a lot. Basic tools which I used for project are:
- BAR CHARTS
- PIE CHARTS
- TABLES
Bar charts and pie charts are very useful tools for every research to show the result in a
clear, simple way. Because I used bar charts and pie charts in my project for showing data
in a systematic way. So I need not necessary for any observer to read allthe theoretical
detail, simple on seeing the charts anybody that what is being said
4.3 LIMITATIONS
Although best of the efforts were made to conduct a prefect survey but still it faces
certain limitation. Following were certain limitation of this project.
1. The survey was conducted only on 100 respondents.
2. Some of the respondents did not answer all the questions, which could hamper
the final results to a certain extent.
3. The study confines itself to the respondents of “NAWANSHAHAR” region

only. Hence findings would not be relevant to other cities.
36
CHAPTER 5
DATA ANALYSIS AND DATA
INTERPRETATION
37
CHAPTER 5: DATA ANALYSIS AND DATA INTERPRETATION
SBI: NO.50
1) What is your occupation?
Table 5.1: Occupation

Business man 15
Student 0
Government Employee 22
Other 0
House wife 9
25
20
Series1
15
Series2
10
Series3
Diagram 5.1: Occupation
Interpretation:-
• Total Number of Respondents was 46.

• 0 of our Respondents was Students.
• 22 of the Respondents were into government employees
• 15 of our Respondents were Businessman.
• 9 of our Respondents were Housewives.
• None of our Respondent belonged to the category of others.
• 4 respondents did not answer.
38
2) From how many years you are associated with this bank?
Table 5.2: Association with Bank
Less than 1 year 10
1-5 years 24
More than 5 12
30
25
20
Series1
15 Series2
10
0
Less than year 1-5 year more then 5
Diagram 5.2: Association with Bank
Interpretation:-
• Total Number of Respondents was 46
• 10 persons are associated less than 1 year.
• 24 persons are associated from 1-5 years.
• 12 persons are associated from more than

5 years.
3) How do you come to know about the home loan schemes of that bank?
Table 5.3: How you come to know about home loan

News paper 18
Television 14
39
Internet 10
other resources 4
20
18
16
14
12
Series1
10
Series2
News paper Television Internet Other

resources
Diagram 5.3: How you come to know about home loan
Interpretation:-
• 18 persons came to know from

newspaper.
• 14 persons came to know from television.
• 10 persons came to know from internet.
• 4 personscame to know from other resources.
40
4) Are you aware of these type of home loans?
Table 5.4: Aware of Types of Home loans

Home purchase loan 9
Home construction loan 18
Home improvement loan 6
Home equity loan 4
Land purchase loan 9
20
18
16
14
12
10 Series1
Diagram 5.4: Aware of Types of Home loans
Interpretation:-

• Only 4 persons know home equity
loan.
• Many of peoples know home constructionloan.
• 9 peoples know home purchase loan.
• 6 peoples know home improvement loans.
41
5) Are you aware all terms and conditions of home loans?
Table 5.5: Terms and Conditions of Home Loans

Yes 40
No 6
45
40
35
30
25
Series1
20
15
10
Yes No
Diagram 5.5: Terms and Conditions of Home Loans
Interpretation:-

• Many of persons know all terms and conditions of home loan i.e. 40.
• 6 persons had not know properly about all terms and conditions.
42
6) Are you satisfy with the interest rate charges by your bank?
Table 5.6: Interest rate Charges by the Bank
Strongly agree 12
Agree 30
Disagree 4
strongly disagree 0
16
14
12
10
Series1
Strongly agree Agree Disagree strongly

disagree
Diagram 5.6: Interest rate Charges by the Bank
Interpretation:-
• 12 among allconsumers are strongly agreed by interest rate of the bank.
• 30 among all consumers are agreed by interest rate of the bank.
• 4 among all consumers are disagreed by interest rate of the bank.
• among all consumers are strongly disagreed by interest rate of the bank.
43
7) Do you agree that your bank loan processing is fast?
Table 5.7: Loan Processing Fast
Strongly agree 8
Agree 26
Disagree 9
strongly disagree 3
30
25
20
15 Series1
10

disagree
Diagram 5.7: Loan Processing Fast
Interpretation:-
• 8 persons strongly agree that bank home loan processing is fast.
• 26 persons agree that bank home loan processing is fast.
• 9 persons disagree that bank processing is fast. o3 persons

strongly disagree that bank processing is fast.
44
8) Do you satisfy with the after home loan services provided by your bank are
best as compare to other bank?
Table 5.8: Satisfy with the home loan services provided by banks
Strongly agree 12
Agree 30
Disagree 4
strongly disagree 0
35
30
25
20
Series1
15
10

disagree
Diagram 5.8: Satisfy with the home loan services provided by banks
Interpretation:-

• 12 among all consumers are strongly agreed by after sale services of the
bank.
• 30 among all consumers are agreed by after sale services of the bank.
• 4 among all consumers are disagreed by after sale services of the bank.
• 0 among all consumers are strongly disagreed by after sale services of the
bank.
45
9) Does the cost of home loan is appropriate, according to your demand?
Table 5.9: Cost of home loan is appropriate, according to demand

Yes 33
No 13
35
30
25
20
Series1
15
10
Yes No
Diagram 5.9: Cost of home loan is appropriate, according to demand
Interpretation:-
• 33 persons said that home loan is appropriate according to their

demand.
• 13 persons said that home loan is not appropriate according to their

demand.
46
10) Are you satisfy with the employees behaviour of the bank?
Table 5.10: Satisfy with the employees behaviour of the bank
Strongly agree 19
Agree 23
Disagree 4
strongly disagree 0
25
20
15
Series1
10

disagree
Diagram 5.10: Satisfy with the employees behaviour of the bank
Interpretation:-

• 19 persons very satisfied with the employee behaviour of the bank.
• 23 persons satisfied with the employee behaviour of the bank.
• 4 persons disagree with the employee behaviour of the bank.
• No one is disagree with the employee behaviour of the bank.
47
11) Does the bank give any discount upon loan services?
Table 5.11: Bank gives any discount on loan services

Yes 40
No 6
45
40
35
30
25
Series1
20
15
10
Yes No
Diagram 5.11:Bank gives any discount on loan services
Interpretation:-
• 40 persons said thatbank give discount upon loan services.
• Only 6 persons said that bank does not give any discount upon
loan services.
48
12) Are you satisfy by the time taken in sanctioning the loan?
Table 5.12:Satisfy by the time taken in sanctioning the loan

Yes 34
No 12
40
35
30
25
20 Series1
15
10
Yes No
Diagram 5.12: satisfy by the time taken in sanctioning the loan
Interpretation:-

• 34 persons are satisfied by the time taken.
• 12 persons are not satisfied by the timetaken.
49
13) Have you face any difficulty during taking the loan?
Table 5.13: Difficulty face during taking the loan
Yes 39
No 7
45
40
35
30
25
Series1
20
15
10
Yes No
Diagram 5.13: Difficulty faced during taking the loan

Interpretation:-
• 39 peons facedifficulty during taking the loan.
• Only 7 persons does not face any difficulty during taking the loan.
50
14) Which grade you want to give of home loan schemes of the bank?
Table 5.14: Grade you want to give of home loan schemes of the bank
Excellent 24
Go0d 18
Average 4
below average 0
30
25
20
15 Series1
10
Excellent Good Average below

average
Diagram 5.14: Grade you want to give of home loan schemes of the bank
Interpretation:-
• 24 personsgive excellent grade of the bank.
• 18 persons gave good grade to the bank.
• Only 4 persons give average grade to the bank.
• No none give below average grade to the bank.
51
PNB: NO.50

Table 5.15: Occupation
Business man 17
Student 0
Government Employee 23
Other 0
House wife 7
25
20
15
Series1
10
Diagram 5.15: Occupation
Interpretation:-
• 0 of our Respondents was Students.
• 23 of the Respondents were into governmentemployees.
• 17 of our Respondents were Businessman.
• 7 of our Respondents were Housewives.
• None of our Respondent belonged tothe category of others.
• 3 respondents did not answer.
52
2) From how many years you are associated with thisbank?
Table 5.16: How many years you are associated with thisbank
Less than 1 year 17

1-5 years 19
More than 5 11
20
18
16
14
12
10 Series1
Less than 1 1-5 years More than 5

year
Diagram 5.16 :How many years you are associated with this bank
Interpretation:-
• 17 persons are associated less than 1 year.
• 19 persons are associated from 1-5 years.
• 11 persons are associated from more than 5 years.
53
3) Who do you come to know about the home loan schemes of that bank?
Table 5.17: Home schemes of that bank
News paper 12
Television 22
Internet 9
other resources 4
25
20
15
Series1
10
News Television Internet other paper

resources
Diagram 5.17:Home schemes of that bank
Interpretation:-
• 12 persons came to know from newspaper.
• 22 persons came to know from television.
• 9 persons came to know from internet.
• 4 persons came to know from other resources.
54
Table 5.18: Aware of these type of home loan
Home purchase loan 9

Home construction loan 19
Home improvement loan 9
Home equity loan 2
Land purchase loan 8
20
18
16
14
12
10 Series1
Diagram 5.18: Aware of these type of home loan
Interpretation:-
• .Only 2 persons know home equity loan.
• 9of peoples know home constructionloan.
• peoples know home purchase loan.
• 9 peoples know home improvement

loans.
55
Table 5.19: Terms and conditions of home loan

Yes 34
No 13
Diagram 5.19: Terms and conditions of home loan
40
35
30
25
20 Series1
15
10
Yes No
Interpretation:-
• Many of persons know all terms and conditions of home loan i.e. 34.
• 13 persons had not know properly about all terms and conditions.
Table 5.20:Interest rate charge by your bank
Strongly agree 11
Agree 34
56
Disagree 2
strongly disagree 0
40
35
30
25
20 Series1
15
10
5
Strongly Agree Disagree strongly

agree disagree
Diagram 5.20: Interest rate charge by your bank
Interpretation:-
• Total Number of Respondents was 4 7.
• 11 among allconsumers are strongly agreed by interest rate of the bank.
• 34 among all consumers are agreed by interest rate of the bank
• 2among all consumers are disagreed by interest rate of the bank
• among all consumers are strongly disagreed by interest rate of the bank
57
7) bank offer which type of services?
Table 5.21: Type of services offered by bank
Mobile banking 26
Net banking 13
Forex banking 8
30
25
20
15 Series1
10
Mobile Net banking Forex banking

banking
Diagram 5.21: Type of services offered by bank
Interpretation:-
• Number of Respondents was 47.
• 26 persons said that bank offer mobile banking services.
• Total 13 said that bank offer net banking services.
• Only 8 personssaid that bank offer forex banking services.
Table 5.22: Processing of bank loan is fast
Strongly agree 4
Agree 21
Disagree 13
strongly disagree 9
58
25
20
15
Series1
10

agree disagree
Diagram 5.22: Processing of bank loan is fast
Interpretation:-
• 4 persons strongly agree that bank home loan processing is fast.
• 21 persons agree that bank home loan processing is fast.
• 13 persons disagree that bank processing is fast.
• 9 personsstrongly disagree that bank processing is fast.
9) Do you satisfy with the after home loan services provided by your bank are
best as compare to other bank?
Table 5.23 : satisfy with the after home loan services provided by your
bank arebest as compare to other bank?
Strongly agree 14
Agree 29
Disagree 4
strongly disagree 0
59
35
30
25
20
Series1
15
10

agree disagree
Diagram 5.23: Satisfy with the after home loan services provided by your
bank arebest as compare to other bank?
Interprtation:-
• 14 among all consumers are strongly agreed by after sale services ofthe
bank.
• 29 among all consumers are agreed by after sale services of the bank
• 4 among all consumers are disagreed by after sale services of the

bank
• among all consumers are strongly disagreed by after sale services

of the bank
Table 5.24: cost of home loan is appropriate, according to your demand
Yes 29
No 18
60
35
30
25
20
Series1
15
10
Yes No
Diagram 5.24: cost of home loan is appropriate, according to your demand
Interpretation:-
• 29 persons said that home loan is appropriate according to their

demand.
• 18 persons said that home loan is not appropriate according to their

demand.
Table 5.25: satisfy with the employees behaviour of the bank

Strongly agree 16
Agree 25
Disagree 6
strongly disagree 0
61
30
25
20
15 Series1
10

agree disagree
Diagram 5.25: satisfy with the employees behaviour of the bank
Interpretation:-
• 16 persons verysatisfied with the employee behaviour of the bank.
• 25 persons satisfied with the employee behaviour of the bank.
• 6 persons disagree with the employee behaviour of the bank.
• No one is disagree with the employee behaviour of the bank.
Table 5.26: Satisfy by the time taken in sanctioning the loan
Yes 30
No 17
62
35
30
25
20
Series1
15
10
Yes No
Diagram 5.26: Satisfy by the time taken in sanctioning the loan
Interpretation:-
• 30 persons aresatisfied by the time taken
• 17 persons are not satisfied by the time taken
Table 5.27: any difficulty during taking the loan

Yes 43
No 4
63
50
45
40
35
30
25 Series1
20
15
10
Yes No
Diagram 5.27: Any difficulty during taking the loan
Interpretation:-
• 43 persons facedifficulty during taking the loan.
• Only 4 persons does not face any difficulty during taking the loan.
14)Which grade you want to give of home loan schemes of the bank?
Table 5.28: schemes of the bank
Excellent 18
Good 20
Average 8
below average 1
64
25
20
15
Series1
10
Excellent Good Average below

average
Diagram 5.28: schemes of the bank
Interpretation:-
• 18 personsgive excellent grade of the bank.
• 20 personsgove good grade to the bank.
• Only 8 persons give average grade to the

bank.
• 1 person give below average grade to the

bank.
65
CHAPTER 5
CONCLUSION
66
CHAPTER 6
CONCLUSION:
All the people are availing loan facility from both the banks. No. of respondents ofSBI were
46 and 47 of SBI Bank. Peoples are relating with PNB more satisfy withthe interest rate as
compare to SBI. SBI peoples much know about home loans thenPNB. Both PNB and SBI
mostly offer mobile banking services. Processing of SBIis fast then PNB. After home loan
services of PNB is good as compare to SBI. Peoples related with SBI is more satisfy with
the employee behaviour as compare to PNB.People are more satisfied by SBI for time taken
for sanctioning the loan. From all this I conclude that SBI bank provide good home loan
services as compareto PNB and many peoples are very satisfied from SBI.
67
CHAPTER 6
REFERENCES AND BIBLOGRAPHY
68
CHAPTER 6
6.1 REFERENCES:
• Craig, Ben R. and Thomson, James B.,Federal (August 2001). Home Loan
Bank Lending to Community Banks: Are Targeted Subsidies Necessary? FRB
of Cleveland Working Paper No. 01-12. Available at SSRN:
http://ssrn.com/abstract=282410 or DOI: 10.2139/ssrn.282410
• Singh, Fulbag and Sharma, Reema,(December 2006) Housing Finance in India:

A Case Study of LIC Housing Finance Limited. ICFAI Journal of Financial
Economics, Vol. 4, No. 4, pp. 63-74, December 2006. Available at SSRN:
http://ssrn.com/abstract=959359
• LaCour-Little, (May 18, 2007) Michael,Economic Factors Affecting Home

Mortgage Disclosure Act. SSRN: http://ssrn.com/abstract=992815
• Borde, Stephen F. May/June 1991 ,Is the Savings and Loan Industry Facing
Extinction?The Secured Lender,Vol.47.
SSRN:http://ssrn.com/abstract=151018
• Rosner, Joshua (June 29, 2001).,Housing in the New Millennium: A Home

Without Equity is Just a Rental with Debt,Available at
SSRN: http://ssrn.com/abstract=1162456
• Jacoby, Melissa B.( dec 2006) Home Ownership Risk Beyond a Subprime
Crisis: The Role of Delinquency Management. Fordham Law Review, Vol.
76,
2008; UNC Legal Studies Research Paper No. 1074442. Available at SSRN:
69
• Moriizumi, Yoko,Current Wealth, (dec 1999) Housing Purchase and Private
Housing Loan Demand in Japan. Journal of Real Estate Finance and Economics,
Vol. 21, Issue 1. Available at
• http://ideas.repec.org/p/fip/fedcwp/9015.html
• http://ideas.repec.org/p/fip/fedgfe/2004-27.html
• Hillebrand, Eric T. and Koray, Faik,Interest Rate Volatility and Home Mortgage
Loans. Applied Economics, Forthcoming. Available at SSRN:
• Lin, Emily Y. and White, Michelle J. (November 2000),Bankruptcy and the
Market for Mortgage and Home Improvement Loans. Michigan Law and
Economics Research Paper No. 00-013. Available at SSRN:
http://ssrn.com/abstract=252699 or DOI: 10.2139/ssrn.252699
• Bernstein, David P. (October 14, 2008) ,Home Equity Loans and Private
Mortgage Insurance: Recent Trends & Potential Implications. Available at
• LaCour-Little, Michael,The Home Purchase Mortgage Preferences of Low- and
Moderate-Income Households. Real Estate Economics, Vol. 35, No. 3, pp. 265-
290, Fall 2007. Available at SSRN: http://ssrn.com/abstract=1007862 or DOI:
10.1111/j.1540-6229.2007.00190.x
• Wheelock, David C(October 24, 2008)..,Government Response to Home
Mortgage Distress: Lessons from the Great Depression.Federal Reserve Bank
of St. Louis Working Paper No. 2008-038A. Available at
• Chiuri, Maria Concetta and Jappelli, Tullio, (March 2001) Financial Market
Imperfections and Home Ownership: A Comparative Study. CEPR Discussion
Paper No. 2717. Available at SSRN: http://ssrn.com/abstract=264399
• Do, Chau and Paley, Irina,Explaining the Growth of Higher-Priced Loans in
HMDA: A Decomposition Approach. Journal of Real Estate Research, Vol.
29,
No. 4, 2007. Available at SSRN: http://ssrn.com/abstract=1030058
• LaCour-Little, Michael, Rosenblatt, Eric and Yao, Vincent W.(February 1,
2009).,Home Equity Extraction by Homeowners: 2000-2006. Journal of Real
Estate Research, 2009. Available at SSRN: http://ssrn.com/abstract=1336049
• Nini, Greg and Carey, Mark, (August 2004) Is the Corporate Loan Market
Globally Integrated? A Pricing Puzzle. FRB International Finance Discussion
Paper No. 813. Available at SSRN: http://ssrn.com/abstract=585742
• Hendershott, Patric H. and Pryce, Gwilym B.J. (July 2005).,The Sensitivity of
Homeowner Leverage to the Deductibility of Home Mortgage Interest.NBER
Working Paper No. W11489. Available at
70
• Courchane, Marsha, (November 1, 2007). The Pricing of Home Mortgage Loans
to Minority Borrowers: How Much of the APR Differential Can We Explain?
Available at SSRN: http://ssrn.com/abstract=1374872
• Calem, Paul S. and Wachter, Susan M. (Nov 1, 1999),Community Reinvestment
and Credit Risk: Evidence from an Affordable Home Loan Program. Real Estate
Economics, Vol. 27. Available at SSRN:
71
CHAPTER 7
ANNEXURE
72
QUESTIONNAIRE
Name
Qualification
Age 18-25 25-35 35-40 Above
Gender
Business man Government employee
House wife Student
Other
2) From how many years you are associated with this bank?
Less than 1 year 1-5
More than 5 year
3) How do you come to know about the home loan schemes of this bank?
News paper Television
Internet Other resources
Home purchase laon Home construction loan
Home improvement loan Home extention loan
Home equity loan Land purchase loan
Yes No
Strongly agree Agree
Strongly disagree Disagree

73
7) Your bank offer which type of services ?
Mobile banking Net banking
Forex banking
9) Do you satisfy with the after home loan services provided by your bank are best
as compare to other bank?
Yes No
12) Does the bank give any discount upon loan services?
Yes No
Yes No
Yes No
If yes then specify

15) Which grade you want to give of home loan schemes of your bank?
Excellent Good
Average Below average
74

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A

“COMPARATIVE STUDY OF HOME LOANS OF PNB AND SBI BANK”

SUBMITTED IN THE PARTIAL FULFILLMENT FOR THE DEGREE OF

MASTER OF BUSINESS ADMINISTRATION

Submitted to: - Submitted By: -

Kurukshetra University, Kurukshetra Swati

Under the Supervision of: - MBA 2nd Year

Mr. Aryan Sharma 210163845

ASIA PACIFIC INSTITUE OF INFORMATION TECHNOLOGY SD INDIA

Approved by AICTE affiliated by Kurukshetra University, Kurukshetra.

MBA 2nd Year

Place: APIIT SD India Panipat

Mr. Madan Saini

(Department of Management Studies)

Particulars………………………………………………………….. Page no.

Title Page……………..………………………………………………………… (i)

Supervisor’s Certificate………………………………………………………… (iii)-7

Chapter 1 Introduction…………………………………………………………... 1-23

1.1 Overview of the industry …….……….……………………………………… 2-4

Chapter 2 Objective of the Study………………………………………………. 24-25

2.1 Objectives of Study………………………………………………………... 25

Chapter 3 Review of Literature………………………………………………... 26-33

3.1 Literature Review………………………………………………………… 23-24

Chapter 4 Research Methodology……………………………………………... 34-36

4.1 Design of Research…………………………………………………… 35

4.2 Sampling Plan…………………………………………………………. 35-36

Chapter 6 Conclusion………………………………………………………. 66-67

5.1 conclusion …………………………………………………………… 67

Chapter 7 References and Biblography ………………………………. 68-71

6.1 References…………...…………………………………………… 69-71

Chapter 8 Annexure……………………………………………………… 72-74

8.1 Questionnaire…………………………………………………… 73-74

1.1 OVERVIEW OF THE INDUSTRY

1.1.2 MAJOR PLAYERS:

TOP 10 PLAYERS IN BANKING & FINANCE

PUNJAB NATIONAL BANK(PNB):

STATE BANK OF INDIA(SBI):

 Strengthen the infrastructure in the government securities market in order to

 Ensure the development of underwriting and market making capabilities for

1.4 RECENT ACHIVEMENTS AND MILESTONES:

PNB RECENT ACHIVEMENTS AND MILESTONES:

SBI RECENT ACHIVEMENTS AND MILESTONES:

SBI joins Chinese bank to touch 10,000 branches:

1.5 PRODUCT RANGE OF COMPANY/INDUSTRY:

1.6 PERFORMANCE OF COMPANTY IN LAST FIVE

PNB performance in last five years:

Table 1: Annual results

Operating profit 10,029.21 7,149.74 5,721.06 4,683.04 4,056.84

Interest 8,730.86 6,022.91 4,917.39 4,453.11 4,154.99

EPS (Rs) 64.98 48.84 45.65 44.72 41

Table 2: Balance sheet

Operating income 15,925.65 12,104.24 9,791.12 9,712.63 9,617.34

Personnel expenses 2,461.54 2,352.45 2,114.97 2,121.23 1,654.06

Other recurring income 231.62 186.67 131.54 470.69 59.85

Table 4: Cash flow

EPS (Rs) -16.42 -12.17 -3.19 -14.13 -13.58

Operating income 1.02 0.90 0.44 0.66 10.90

PNB FUTURE PLANS:

1.9 INTRODUCTION TO TOPIC: HOME LOANS

• Home Purchase Loans

Home extinction loan

Home Equity loan:

Land Purchase loan: