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 servlcesŦ
1he prlnclpal Lype of banklng ln Lhe modern
lndusLrlal world ls commerclal banklng Ǝ cenLral
banklngŦ 8anklng meansť Ŵ AccepLlng deposlLs for
Lhe purpose of lendlng or lnvesLmenL of deposlLs
of money from Lhe publlc repayable on demand
oLherwlse and wlLhdraw by chequeţ drafL or
oLherwlseŦº
Ŵ8anklng Companles (8egulaLlon) AcLţ 1949
1husţ a 8ankťŴ
1) AccepL deposlLs of money from publlcţ
2) Þays lnLeresL on money deposlLed wlLh lLŦ
3) Lends or lnvesLs money
4) 8epays Lhe amounL on demandŦ
IN1kCDUC1ICN CI kLSLkVL 8ANk CI
INDIAťŴ
W A cenLral bankţ reserve bank or moneLary
auLhorlLy ls Lhe enLlLy responslble for Lhe
moneLary pollcyŦ lLs prlme responslblllLy ls Lo
malnLaln Lhe sLablllLy of naLlonal currency and
money supplyţ buL more acLlve duLles lncludes
conLrolllng subsldlzeŴloanţ lnLeresL raLes and
acLlng as a lender or lasL resorL Lo Lhe banklng
secLor durlng flnanclal crlsesŦ lL could also have
supervlsory powersţ Lo ensure LhaL banks and
oLher flnanclal lnsLlLuLlons do noL behave
recklessly or fraudulenLlyŦ 1he 88l handles Lhe
cash reserves of oLher banks ln Lhe counLryŦ lL
acLs as a ƍ8ank of 8anksƍŦ
uncLlons of 88lťŴ
1) 1radlLlonal funcLlons
2) ÞromoLlonal funcLlons
3) Supervlsory funcLlons
uncLlons of banksťŴ
1) Þrlmary funcLlons
2) Secondary funcLlons
3) uLlllLy funcLlons
9ASLS CI INDIAN 8ANkING
1he flrsL bank ln lndlaţ Lhough conservaLlveţ was
esLabllshed ln 1786Ŧ rom 1786 Llll Lodayţ Lhe
[ourney of lndlan 8anklng SysLem can be
segregaLed lnLo Lhree dlsLlncL phasesŦ 1hey are as
menLloned belowť
W arly phase from 1786 Lo 1969 of lndlan 8anks
W naLlonallsaLlon of lndlan 8anks and up Lo 1991
prlor Lo lndlan banklng secLor 8eformsŦ
W new phase of lndlan 8anklng SysLem wlLh Lhe
advenL of lndlan lnanclal Ǝ 8anklng SecLor
8eforms afLer 1991Ŧ
A8CU1 DIC 8ANk
W 8ank ls one amongsL Lhe flrsLs of Lhe new
generaLlonţ LechnoŴsavvy commerclal banks of
lndlaţ was seL up ln !anuary 1993ţ afLer Lhe
8eserve 8ank of lndla allowed seLLlng up of 8anks
ln Lhe prlvaLe secLorŦ 1he 8ank was promoLed by
Lhe Pouslng uevelopmenL lnance CorporaLlon
LlmlLedţ a premler houslng flnance company (seL
up ln 1977) of lndlaŦ
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 wellŦ
8USINLSS ICCUS CI DIC 8ANk
PuC 8ankƌs mlsslon ls Lo be a WorldŴClass lndlan
8ankŦ 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 segmenLsţ and Lo
achleve healLhy growLh ln proflLablllLyţ conslsLenL
wlLh Lhe bankƌs rlsk appeLlLeŦ 1he bank ls commlLLed
Lo malnLaln Lhe hlghesL level of eLhlcal sLandardsţ
professlonal lnLegrlLyţ corporaLe governance and
regulaLory compllanceŦ PuC 8ankƌs buslness
phllosophy ls based on four core values Ŷ
CperaLlonal cellenceţ CusLomer ocusţ ÞroducL
Leadershlp and ÞeopleŦ
AWAkDS AND ACILVLMLN1S CI
DIC 8ANk
In 2011
W 1he Aslan 8anker Ŵ 1be sttooqest book lo tbe Aslo
loclflc
W 8loomberg u1v's lnanclal Leadershlp awards Ŷ
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 31ţ 2011ţ Lhe 8ank's
dlsLrlbuLlon neLwork ls lncreaslng day by dayŦ
W lL has 2200 8ranchesţ
W Above 6000 A1Msţ
W ln 1100 clLles ln lndlaŦ
SWC1 ANAL¥SIS CI DIC 8ANk
W S18nC1PSť
1Ŧ 1he managemenL of Lhe bank ls Lermed Lo be
one of Lhe besL ln Lhe counLryŦ
2Ŧ PuC has been hlghly proacLlve ln passlng on
Lhe cosL and beneflL Lo cusLomersŦ
3Ŧ Plgh degree of cusLomer saLlsfacLlonŦ
4Ŧ Superlor cusLomer servlce vsŦ CompeLlLors
3Ŧ 8eLLer quallLy of asseLsţ nÞA of 0Ŧ4 per cenL
CCn1ŧ
W WAknSSť
1Ŧ Ma[or sLake held by Amerlcan flnanclal groups
whlch are under sLress due Lo economlc
slowdownŦ
2Ŧ SecLoral growLh ls consLralned by low
unemploymenL levels and compeLlLlon for sLaffŦ
3Ŧ Þosslble Lakeover LargeL from Lhe forelgn banksŦ
4Ŧ unllke CovernmenL 8anksţ an accounL needs a
mlnlmum balance of 8sŦ10ţ000Ŧ
CCn1ŧ
W CÞÞC81unl1lSť
1Ŧ unLapped rural markeLsŦ
2Ŧ Could eLend Lo overseas broadlyŦ
3Ŧ PuC 8ank plans Lo seL up a nonŴbanklng
flnance company (n8C) Lo underLake fundŴ
based acLlvlLlesŦ
4Ŧ unlque parLnershlp Lo creaLe [ob opporLunlLles
for ÞCu8M sLudenLsŦ
W 1P8A1Sť
1Ŧ very hlgh compeLlLlon prevalllng ln Lhe lndusLryŦ
2Ŧ 8lsk of fraud and nÞA accreLlon due lncreaslng
ln lnLeresL raLesŦ
3Ŧ 1hreaL from Lhe collecLlons depLŦ
4Ŧ Lack of lnfrasLrucLure ln rural areas could
consLraln lnvesLmenLŦ
IS1Ck¥ CI AU1C INDUS1k¥ IN INDIA
W 1he flrsL car ran on lndlaƌs roads ln 1897Ŧ unLll Lhe
1930sţ cars were lmporLed dlrecLlyŦ
W mbryonlc auLomoLlve lndusLry emerged ln
lndla ln Lhe 1940sŦ
W AfLer Lhe lndependenceţ ln 1947ţ Lhe
CovernmenL of lndla and Lhe prlvaLe
secLor launched efforLs Lo creaLe an auLomoLlve
componenL manufacLurlng lndusLry Lo supply Lo
Lhe auLomoblle lndusLryŦ
GkCW1 9C1LN1IAL CI 1L INDIAN
AU1C INDUS1k¥
1here are several facLorsţ whlch are epecLed
Lo conLrlbuLe Lo Lhe growLh ln Lhe auLo
lndusLryŦ 1hese are as followsťŴ
W lncreaslng uemand for vehlcles
W SLable conomlc Þollcles AdopLed by
Successlve CovernmenLs
W AvallablllLy of Low CosL Skllled Manpower
W Plgh CuallLy SLandards
W CrowLh forecasLs as per AuLomoLlve Mlsslon
Þlan
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 purposeŦ
Loan are promlses for fuLure paymenLţ Lhey have
Lo be repald ln perlods beyond a year and are
Lherefore longŴLerm llablllLlesŦ ln oLher words
ºwhen a banker makes a advance ln a lumpŴsum
whlch cannoL be pald wholly or parLly and whlch
Lhe cusLomer has permlsslon Lo wlLhdraw
subsequenLlyţ lL ls called a loanŦ"
LCAN 9kCCLDUkL CI NLW CAk LCAN
A1 DIC 8ANk
W Loan appllcaLlon deparLmenLŦ
W Loan dlsbursemenL deparLmenLŦ
W 8ecovery ueparLmenLŦ
9CIN1S 1C 8L kL91 IN MIND WILL
1AkING LCAN
W 1enor
W Car segmenLs
W Þrocesslng fees
W SLamp charges
W ranklng charges
W Þay ouL raLlo
kLSLAkC ML1CDCLCG¥
W 9ob|em Statementť
1hls research has been conducLed Lo sLudy Lhe
º1P uLlnCunC? uA1A C nW CA8 LCAnSţ
S1uu? uCn A1 PuC 8Ankţ 8A8CuA"Ŧ
W kesean Cb[ent|vesť
1) Þrlmary Cb[ecLlvesť
1o know Lhe reasons of dellnquency aL PuC
8AnkŦ
CCn1ŧ
2) Secondary Cb[ecLlvesť
1o undersLand whaL ls dellnquency and whaL are
Lhe underlylng reasons for Lhe emergence of lLsŦ
1o undersLand Lhe lmpacLs of dellnquency on Lhe
operaLlon bankŦ
1o know whaL sLeps are Laken by Lhe bank Lo
reduce Lhe dellnquency percenLageŦ
1o suggesL some measures Lo lower Lhe level of
dellnquency aL Lhe bankŦ
CCn1ŧ
W L|m|tat|ons of eseanť
Þersonal blas
Area of research
1lme llmlL
8ases of sLudy
MLANING CI DLLINÇULNC¥
W ln auLo car loan Lhe dellnquency means Lhe
percenLage of defaulLers agalnsL Lhe LoLal
cusLomersŦ
W uellnquency ls calculaLed on Lhe basls of 30+ days
and 90+ daysŦ
W ln layman language Lhe Lerm dellnquency means
Lhe defaulLersŦ 1he cusLomers Lhose who are noL
able Lo pay Lhelr Mls are known as defaulLers
and so Lhey are known as dellnquenLsŦ
DLLINÇULNC¥ DA1A ICk 1L MCN1
CI IANUAk¥
3Ŧ12Ʒ
1Ŧ21Ʒ
1Ŧ96Ʒ
0Ŧ63Ʒ
3Ŧ66Ʒ
1Ŧ46Ʒ
1Ŧ83Ʒ
0Ŧ36Ʒ
0Ŧ00Ʒ
0Ŧ30Ʒ
1Ŧ00Ʒ
1Ŧ30Ʒ
2Ŧ00Ʒ
2Ŧ30Ʒ
3Ŧ00Ʒ
3Ŧ30Ʒ
4Ŧ00Ʒ
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINÇULNC¥ DA1A ICk 1L MCN1
CI IL8kUAk¥
2Ŧ83Ʒ
1Ŧ24Ʒ
1Ŧ87Ʒ
0Ŧ68Ʒ
3Ŧ64Ʒ
1Ŧ33Ʒ
1Ŧ91Ʒ
0Ŧ67Ʒ
0Ŧ00Ʒ
0Ŧ30Ʒ
1Ŧ00Ʒ
1Ŧ30Ʒ
2Ŧ00Ʒ
2Ŧ30Ʒ
3Ŧ00Ʒ
3Ŧ30Ʒ
4Ŧ00Ʒ
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINÇULNC¥ DA1A ICk 1 MCN1
CI MAkC
2Ŧ30Ʒ
0Ŧ99Ʒ
1Ŧ31Ʒ
0Ŧ63Ʒ
3Ŧ13Ʒ
1Ŧ23Ʒ
1Ŧ63Ʒ
0Ŧ33Ʒ
0Ŧ00Ʒ
0Ŧ30Ʒ
1Ŧ00Ʒ
1Ŧ30Ʒ
2Ŧ00Ʒ
2Ŧ30Ʒ
3Ŧ00Ʒ
3Ŧ30Ʒ
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINÇULNC¥ DA1A ICk 1L MCN1
CI A9kIL
2Ŧ81Ʒ
1Ŧ02Ʒ
1Ŧ68Ʒ
0Ŧ66Ʒ
3Ŧ31Ʒ
1Ŧ41Ʒ
1Ŧ96Ʒ
0Ŧ36Ʒ
0Ŧ00Ʒ
0Ŧ30Ʒ
1Ŧ00Ʒ
1Ŧ30Ʒ
2Ŧ00Ʒ
2Ŧ30Ʒ
3Ŧ00Ʒ
3Ŧ30Ʒ
30+ 90+
AS1 WS1 nC81P SCu1P
DLLINÇULNC¥ DA1A ICk 1L MCN1
CI MA¥
2Ŧ32Ʒ
0Ŧ89Ʒ
1Ŧ70Ʒ
0Ŧ39Ʒ
3Ŧ12Ʒ
1Ŧ22Ʒ
1Ŧ91Ʒ
0Ŧ38Ʒ
0Ŧ00Ʒ
0Ŧ30Ʒ
1Ŧ00Ʒ
1Ŧ30Ʒ
2Ŧ00Ʒ
2Ŧ30Ʒ
3Ŧ00Ʒ
3Ŧ30Ʒ
30+ 90+
AS1 WS1 nC81P SCu1P
kLASCNS CI DLLINÇULNC¥
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 moneyŦ
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 bankŦ
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 Þroper follow up by Lhe bank people ls also one
of Lhe reasons of dellnquencyŦ
CCn1ŧ
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 banksŦ
W lL ls posslble LhaL Lhe cusLomer ls noL aware of
Lhe Ml cycleŦ
W MarkeL crlsls ls also one of Lhe reasons of Lhe
dellnquencyŦ
W amlly lssues are also one of Lhe reasons of
dellnquency because of unavallablllLy of Lhe
money
SUGGLS1ICNS 1C kLDUCL 1L LLVLL
CI DLLINÇULNC¥
W Þrofesslonal people should be recrulLed and
assoclaLed aL all levels of credlL deparLmenLŦ 1hey
can be CAsţ lawyersţ M8Asţ banklng eperLs eLcŦ
W 1he credlL people should properly check and verlfy
all Lhe documenLs of Lhe cusLomers before glvlng
Lhe loan Lo Lhe cusLomers and wlLhouL documenLsţ
Lhe loan should noL be glvenŦ
W Þroper survey of dlfflculLles of cusLomers should be
made and adequaLe asslsLance should be
accordlngly provldedŦ
CCn1ŧ
W 8anks and flnanclal lnsLlLuLlons LogeLher wlLh
CenLral CovernmenL should esLabllsh more courLs
for qulcker remedlesŦ
W 8ecovery agenLs should be appolnLed Lo collecL
on dally basls from LransporL operaLorsţ reLall
Lraders eLcŦ
W 8ank branches ln varlous secLors should be glven
more auLonomy so LhaL Lhey can Lake qulck and
Llmely declslons regardlng nÞA accounLsŦ
W CollecLlon of lnLeresL from credlLors should be
on monLhly basls lnsLead of quarLerly baslsŦ
W 8anklng sLaff should be well Lralned Lo
properly monlLor credlLworLhlness of Lhe
borrowersŦ
W ÞollLlcal lnLerference should be ellmlnaLed ln
dlsbursemenL of loans and advancesŦ
8I8LICGkA9¥
W hLLpť//flnanceŦlndlamarLŦcom/lnvesLmenLln_lndla/hdfc_ba
nkŦhLml
W wwwŦhdfcbankŦcom/personal/prd_glanceŦhLm
W wwwŦhdfcbankŦcom/personal/loans/new_car_loans/new_c
arŦhLm
W wwwŦlbefŦorg/download/auLomoLlveŴ23068 Ŧpdf
W wwwŦwlklpedlaŦorg/wlkl/auLomoLlve_lndusLry_ln_lndla
W wwwŦwlklpedlaŦorg/wlkl/hlsLory_ofLheauLomoLlve
W wwwŦws[Ŧcom/mde/publlc/page/2_3022ŴauLosalesŦhLml
W hLLpť//wwwŦhdfcbankŦcom/abouLus/awards/defaulLŦhLm#Ʒ
23
W hLLpť//wwwŦrblŦorgŦln/scrlpLs/noLlflcaLlonuserŦasp
1ANk ¥CU

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