S1UDY OF AU1O CAR LOAA A1 HDFC

BAAK
Guided by- Dr. Manish Siddhpuria
Prepared by- Nitya Chowdhary
MLANING AND DLIINI1ICN CI
8ANkING
W 8ank ls an lnsLlLuLlon LhaL deals ln money and lLs
subsLlLuLes and provldes cruclal flnanclal servlces
1he prlnclpal Lype of banklng ln Lhe modern
lndusLrlal world ls commerclal banklng cenLral
banklng 8anklng means AccepLlng deposlLs for
Lhe purpose of lendlng or lnvesLmenL of deposlLs
of money from Lhe publlc repayable on demand
oLherwlse and wlLhdraw by cheque drafL or
oLherwlse
8anklng Companles (8egulaLlon) AcL 1949
1hus a 8ank
1) AccepL deposlLs of money from publlc
2) ays lnLeresL on money deposlLed wlLh lL
3) Lends or lnvesLs money
4) 8epays Lhe amounL on demand
IN1kCDUC1ICN CI kLSLkVL 8ANk CI
INDIA
W A cenLral bank reserve bank or moneLary
auLhorlLy ls Lhe enLlLy responslble for Lhe
moneLary pollcy lLs prlme responslblllLy ls Lo
malnLaln Lhe sLablllLy of naLlonal currency and
money supply buL more acLlve duLles lncludes
conLrolllng subsldlzeloan lnLeresL raLes and
acLlng as a lender or lasL resorL Lo Lhe banklng
secLor durlng flnanclal crlses lL could also have
supervlsory powers Lo ensure LhaL banks and
oLher flnanclal lnsLlLuLlons do noL behave
recklessly or fraudulenLly 1he 88l handles Lhe
cash reserves of oLher banks ln Lhe counLry lL
acLs as a 8ank of 8anks
uncLlons of 88l
1) 1radlLlonal funcLlons
2) romoLlonal funcLlons
3) Supervlsory funcLlons
uncLlons of banks
1) rlmary funcLlons
2) Secondary funcLlons
3) uLlllLy funcLlons
9ASLS CI INDIAN 8ANkING
1he flrsL bank ln lndla Lhough conservaLlve was
esLabllshed ln 1786 rom 1786 Llll Loday Lhe
[ourney of lndlan 8anklng SysLem can be
segregaLed lnLo Lhree dlsLlncL phases 1hey are as
menLloned below
W arly phase from 1786 Lo 1969 of lndlan 8anks
W naLlonallsaLlon of lndlan 8anks and up Lo 1991
prlor Lo lndlan banklng secLor 8eforms
W new phase of lndlan 8anklng SysLem wlLh Lhe
advenL of lndlan lnanclal 8anklng SecLor
8eforms afLer 1991
A8CU1 DIC 8ANk
W 8ank ls one amongsL Lhe flrsLs of Lhe new
generaLlon Lechnosavvy commerclal banks of
lndla was seL up ln !anuary 1993 afLer Lhe
8eserve 8ank of lndla allowed seLLlng up of 8anks
ln Lhe prlvaLe secLor 1he 8ank was promoLed by
Lhe Pouslng uevelopmenL lnance CorporaLlon
LlmlLed a premler houslng flnance company (seL
up ln 1977) of lndla
W PuC 8ank was Lhe flrsL bank ln lndla Lo launch
an lnLernaLlonal ueblL Card ln assoclaLlon wlLh
vlSA (vlSA lecLron) and lssues Lhe MasLerCard
MaesLro deblL card as well
8USINLSS ICCUS CI DIC 8ANk
PuC 8anks mlsslon ls Lo be a WorldClass lndlan
8ank 1he ob[ecLlve ls Lo bulld sound cusLomer
franchlses across dlsLlncL buslnesses so as Lo be Lhe
preferred provlder of banklng servlces for LargeL
reLall and wholesale cusLomer segmenLs and Lo
achleve healLhy growLh ln proflLablllLy conslsLenL
wlLh Lhe banks rlsk appeLlLe 1he bank ls commlLLed
Lo malnLaln Lhe hlghesL level of eLhlcal sLandards
professlonal lnLegrlLy corporaLe governance and
regulaLory compllance PuC 8anks buslness
phllosophy ls based on four core values
CperaLlonal cellence CusLomer ocus roducL
Leadershlp and eople
AWAkDS AND ACILVLMLN1S CI
DIC 8ANk
In 2011
W 1he Aslan 8anker 1be sttooqest book lo tbe Aslo
loclflc
W 8loomberg u1v's lnanclal Leadershlp awards
est book
SLGMLN1S CI DIC 8ANk
W 8eLall banklng servlce
W Wholesale banklng servlce
W 1reasury banklng servlce
8kANC NL1WCkk CI DIC 8ANk
CurrenLly as on March 31 2011 Lhe 8ank's
dlsLrlbuLlon neLwork ls lncreaslng day by day
W lL has 2200 8ranches
W Above 6000 A1Ms
W ln 1100 clLles ln lndla
SWC1 ANALSIS CI DIC 8ANk
W S18nC1PS
1 1he managemenL of Lhe bank ls Lermed Lo be
one of Lhe besL ln Lhe counLry
2 PuC has been hlghly proacLlve ln passlng on
Lhe cosL and beneflL Lo cusLomers
3 Plgh degree of cusLomer saLlsfacLlon
4 Superlor cusLomer servlce vs CompeLlLors
3 8eLLer quallLy of asseLs nA of 04 per cenL
CCn1
W WAknSS
1 Ma[or sLake held by Amerlcan flnanclal groups
whlch are under sLress due Lo economlc
slowdown
2 SecLoral growLh ls consLralned by low
unemploymenL levels and compeLlLlon for sLaff
3 osslble Lakeover LargeL from Lhe forelgn banks
4 unllke CovernmenL 8anks an accounL needs a
mlnlmum balance of 8s10000
CCn1
W CC81unl1lS
1 unLapped rural markeLs
2 Could eLend Lo overseas broadly
3 PuC 8ank plans Lo seL up a nonbanklng
flnance company (n8C) Lo underLake fund
based acLlvlLles
4 unlque parLnershlp Lo creaLe [ob opporLunlLles
for Cu8M sLudenLs
W 1P8A1S
1 very hlgh compeLlLlon prevalllng ln Lhe lndusLry
2 8lsk of fraud and nA accreLlon due lncreaslng
ln lnLeresL raLes
3 1hreaL from Lhe collecLlons depL
4 Lack of lnfrasLrucLure ln rural areas could
consLraln lnvesLmenL
IS1Ck CI AU1C INDUS1k IN INDIA
W 1he flrsL car ran on lndlas roads ln 1897 unLll Lhe
1930s cars were lmporLed dlrecLly
W mbryonlc auLomoLlve lndusLry emerged ln
lndla ln Lhe 1940s
W AfLer Lhe lndependence ln 1947 Lhe
CovernmenL of lndla and Lhe prlvaLe
secLor launched efforLs Lo creaLe an auLomoLlve
componenL manufacLurlng lndusLry Lo supply Lo
Lhe auLomoblle lndusLry
GkCW1 9C1LN1IAL CI 1L INDIAN
AU1C INDUS1k
1here are several facLors whlch are epecLed
Lo conLrlbuLe Lo Lhe growLh ln Lhe auLo
lndusLry 1hese are as follows
W lncreaslng uemand for vehlcles
W SLable conomlc ollcles AdopLed by
Successlve CovernmenLs
W AvallablllLy of Low CosL Skllled Manpower
W Plgh CuallLy SLandards
W CrowLh forecasLs as per AuLomoLlve Mlsslon
lan
MAICk MANUIAC1UkLkS IN INDIAN
AU1C MAkkL1
W 1aLa MoLors
W MaruLl Suzukl
W Pyundal
W Mahlndra and Mahlndra
W ord MoLors
W Ponda
W nlssan
W 1oyoLa
W volkswagen
MLANING CI LCAN
Loan ls a meLhod of lendlng under whlch bank
glves credlL Lo a borrower for a speclflc purpose
Loan are promlses for fuLure paymenL Lhey have
Lo be repald ln perlods beyond a year and are
Lherefore longLerm llablllLles ln oLher words
when a banker makes a advance ln a lumpsum
whlch cannoL be pald wholly or parLly and whlch
Lhe cusLomer has permlsslon Lo wlLhdraw
subsequenLly lL ls called a loan"
LCAN 9kCCLDUkL CI NLW CAk LCAN
A1 DIC 8ANk
W Loan appllcaLlon deparLmenL
W Loan dlsbursemenL deparLmenL
W 8ecovery ueparLmenL
9CIN1S 1C 8L kL91 IN MIND WILL
1AkING LCAN
W 1enor
W Car segmenLs
W rocesslng fees
W SLamp charges
W ranklng charges
W ay ouL raLlo
kLSLAkC ML1CDCLCG
W 9ob|em Statement
1hls research has been conducLed Lo sLudy Lhe
1P uLlnCunC? uA1A C nW CA8 LCAnS
S1uu? uCn A1 PuC 8Ank 8A8CuA"
W kesean Cb[ent|ves
1) rlmary Cb[ecLlves
1o know Lhe reasons of dellnquency aL PuC
8Ank
CCn1
2) Secondary Cb[ecLlves
1o undersLand whaL ls dellnquency and whaL are
Lhe underlylng reasons for Lhe emergence of lLs
1o undersLand Lhe lmpacLs of dellnquency on Lhe
operaLlon bank
1o know whaL sLeps are Laken by Lhe bank Lo
reduce Lhe dellnquency percenLage
1o suggesL some measures Lo lower Lhe level of
dellnquency aL Lhe bank
CCn1
W L|m|tat|ons of esean
ersonal blas
Area of research
1lme llmlL
8ases of sLudy
MLANING CI DLLINULNC
W ln auLo car loan Lhe dellnquency means Lhe
percenLage of defaulLers agalnsL Lhe LoLal
cusLomers
W uellnquency ls calculaLed on Lhe basls of 30+ days
and 90+ days
W ln layman language Lhe Lerm dellnquency means
Lhe defaulLers 1he cusLomers Lhose who are noL
able Lo pay Lhelr Mls are known as defaulLers
and so Lhey are known as dellnquenLs
DLLINULNC DA1A ICk 1L MCN1
CI IANUAk
312
121
196
063
366
146
183
036
000
030
100
130
200
230
300
330
400
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINULNC DA1A ICk 1L MCN1
CI IL8kUAk
283
124
187
068
364
133
191
067
000
030
100
130
200
230
300
330
400
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINULNC DA1A ICk 1 MCN1
CI MAkC
230
099
131
063
313
123
163
033
000
030
100
130
200
230
300
330
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINULNC DA1A ICk 1L MCN1
CI A9kIL
281
102
168
066
331
141
196
036
000
030
100
130
200
230
300
330
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINULNC DA1A ICk 1L MCN1
CI MA
232
089
170
039
312
122
191
038
000
030
100
130
200
230
300
330
30+ 90+
AS1 WS1 nC81P SCu1P
kLASCNS CI DLLINULNC
W ln 30+ days Lhe dellnquency ls more because Lhe
cusLomers Lake loans and Lhere ls posslblllLy LhaL
Lhey are unable Lo pay Lhelr flrsL Ml because of
unavallablllLy of Lhe money
W And lL ls also posslble LhaL Lhe cusLomer mlghL
noL be wllllng Lo pay Lhe money so lL ls one of
Lhe reasons of defaulL ln Lhe bank
W 1here ls also a posslblllLy LhaL Lhe cusLomers'
cheques are noL swapped on Llme and because
of Lhese reason Lhey fall lnLo Lhe defaulLers llsL
W roper follow up by Lhe bank people ls also one
of Lhe reasons of dellnquency
CCn1
W AL Llmes Lhe cusLomers forgeL Lo malnLaln
balance ln Lhe bank accounL ln whlch loan ls
golng on because Lhe cusLomer mlghL have
several accounLs ln oLher banks
W lL ls posslble LhaL Lhe cusLomer ls noL aware of
Lhe Ml cycle
W MarkeL crlsls ls also one of Lhe reasons of Lhe
dellnquency
W amlly lssues are also one of Lhe reasons of
dellnquency because of unavallablllLy of Lhe
money
SUGGLS1ICNS 1C kLDUCL 1L LLVLL
CI DLLINULNC
W rofesslonal people should be recrulLed and
assoclaLed aL all levels of credlL deparLmenL 1hey
can be CAs lawyers M8As banklng eperLs eLc
W 1he credlL people should properly check and verlfy
all Lhe documenLs of Lhe cusLomers before glvlng
Lhe loan Lo Lhe cusLomers and wlLhouL documenLs
Lhe loan should noL be glven
W roper survey of dlfflculLles of cusLomers should be
made and adequaLe asslsLance should be
accordlngly provlded
CCn1
W 8anks and flnanclal lnsLlLuLlons LogeLher wlLh
CenLral CovernmenL should esLabllsh more courLs
for qulcker remedles
W 8ecovery agenLs should be appolnLed Lo collecL
on dally basls from LransporL operaLors reLall
Lraders eLc
W 8ank branches ln varlous secLors should be glven
more auLonomy so LhaL Lhey can Lake qulck and
Llmely declslons regardlng nA accounLs
W CollecLlon of lnLeresL from credlLors should be
on monLhly basls lnsLead of quarLerly basls
W 8anklng sLaff should be well Lralned Lo
properly monlLor credlLworLhlness of Lhe
borrowers
W ollLlcal lnLerference should be ellmlnaLed ln
dlsbursemenL of loans and advances
8I8LICGkA9
W hLLp//flnancelndlamarLcom/lnvesLmenLln_lndla/hdfc_ba
nkhLml
W wwwhdfcbankcom/personal/prd_glancehLm
W wwwhdfcbankcom/personal/loans/new_car_loans/new_c
arhLm
W wwwlbeforg/download/auLomoLlve23068 pdf
W wwwwlklpedlaorg/wlkl/auLomoLlve_lndusLry_ln_lndla
W wwwwlklpedlaorg/wlkl/hlsLory_ofLheauLomoLlve
W wwwws[com/mde/publlc/page/2_3022auLosaleshLml
W hLLp//wwwhdfcbankcom/abouLus/awards/defaulLhLm#
23
W hLLp//wwwrblorgln/scrlpLs/noLlflcaLlonuserasp
1ANk CU