Presented To: Presented By:

Dr. Manjit Singh Pallavi Agarwal

MFC- II
Roll No.- 512
 Contents
 Objectives of the study
 Research methodology
 Company profile
 Business mission
 Capital structure
 Amalgamation
 Distribution
 Technology
 Management
 Business
 Loans
 Pre-requisites for loan
 Comparison of loans
 Customer satisfaction survey
 Suggestions
 Limitations
 Questionnaire
 OBJECTIVES OF
THE STUDY
The objective of the study is divided into two parts:
Primary Objective:
The main objective of the study is to find out the tariff charges, percentage of
funding, tenure of loan and other charges charged by other banks in
comparison to HDFC Bank. The aim of the study is to help HDFC to know
where it lacks in Loans and how far the performance of other banks is better,
so that HDFC figure out the common problems being faced by customers
while dealing in the Loan Department so that further HDFC can improves its
services and schemes offered by them to their customers.
Secondary objective:
The secondary objective of the study is to find out the extent to which customer
expectations match HDFC performance in Loan services. This was done to
help HDFC to recognize their faults in customer dealing .As in this
competitive world customer satisfaction is more important than huge profits so
customer satisfaction survey will help it in finding out its position.
 RESEARCH METHODOLOGY

PRIMARY DATA TOOLS USED

Questionnaire SECONDARY DATA Comparative
Open and close Website of HDFC Study Analysis
Pamphlets & Brochures
ended questions Statistical tools
Magazines
Interview like pie charts
Articles & News papers
Personal visits to & tables
Various banks

SUGGESTIONS
 COMPANY PROFILE
The HDFC Bank Ltd. (BSE: 500180, NYSE:
HDB) is a commercial bank of India, incorporated
on 30th August 1994 in the name of ‘HDFC Bank
Limited’, with its registered office in Mumbai, India ,
after the Reserve Bank of India allowed establishing
private sector banks. HDFC Bank commenced
operations as a Scheduled Commercial Bank on 16th
January 1995. The Bank was promoted by the
Housing Development Finance Corporation, a
premier housing finance company (set up in 1977) of
India.
 BUSINESS
MISSION
HDFC Bank's mission is to be a World-Class Indian
Bank. The objective is to build sound customer franchises
across distinct businesses so as to be the preferred
provider of banking services for target retail and
wholesale customer segments. HDFC Bank's business
philosophy is based on four core values - Operational
Excellence, Customer Focus, Product Leadership and
People.
 CAPITAL
STRUCTURE
 The present Authorized Share Capital of the Bank is Rs. 550,00,00,000/-
 Paid up Share Capital as on March 31,2009 is Rs. 425,38,41,090/-
From year To Authorized Issued Paid up Paid up shares
year capital capital (nos.)
2008 2009 550.00 425.38 425384109
2007 2008 450.00 354.43 354432920
2006 2007 450.00 319.39 319389608
2005 2006 450.00 313.14 313142408
2004 2005 450.00 309.88 309875308
2003 2004 450.00 284.79 284791713
 AMALGAMATION
In a milestone transaction in the Indian banking industry, Times
Bank Limited (another new private sector bank promoted by Bennett,
Coleman & Co./Times Group) was merged with HDFC Bank Ltd.,
effective February 26, 2000. As per the scheme of amalgamation
approved by the shareholders of both banks and the RBI,
shareholders of Times Bank received 1 share of HDFC Bank for
every 5.75 shares of Times Bank. RBI, has approved the scheme of
amalgamation of Centurian Bank of Punjab with HDFC Bank with
effect from 23 May,2008. As per the scheme of amalgamation,
shareholders of CBoP received 1 share of HDFC Bank for every 29
shares of CBoP. The merger made HDFC Bank the seventh largest in
India in terms of assets.
HDFC Bank is headquartered in Mumbai. The Bank at
present has an enviable network of over 1416 branches
spread over 550 cities across India. Customers in over 500
locations are also serviced through Telephone Banking. The
Bank also has a network of about over 3382 networked
ATMs across these cities while it has just 1054 in 2006.
 TECHNOLOGY
HDFC Bank operates in a highly automated environment in terms
of IT and communication systems. All the bank's branches have
online connectivity, which enables the bank to offer speedy funds
transfer facilities to its customers. The Bank has made substantial
efforts and investments in acquiring the best technology available
internationally, to build the infrastructure for a world-class bank.
In terms of software, the Corporate Banking business is supported
by Flex cube, while the Retail Banking business by Fin ware,
both from i-flex Solutions Ltd. The system is open, scaleable and
web enabled.
 Management- HR
Structure of HDFC
Bank
Mr. Jagdish Capoor took over as the bank's Chairman
in July 2001. Prior to this, Mr. Capoor was a Deputy
Governor of the Reserve Bank of India.
The Managing Director, Mr. Aditya Puri, has been a
professional banker for over 25 years, and before
joining HDFC Bank in 1994 was heading Citibank's
operations in Malaysia.
Chairman Mr. Jagdish Capoor

Managing Director Mr. Aditya Puri

Regional Head Mr. Govind Pandey

Zonal Head Mr. Vineet Arora

Cluster Head Mr. Amit Gagneja

Branch Manager Mr. Sanjeev Jindal

Assistant Manager Mr. Vikas Chopra

Relation Manager Mr. Manoj Mangla

Personal Banker, Teller, Co.-ex

 Awards Given to HDFC Bank
Business Today-Monitor Group
survey
Financial Express-Ernst & Young

Award
Global HR Excellence Awards - Asia 'Employer Brand of the Year 2008
Pacific HRM Congress:
Business Today
Dun & Bradstreet – American
Express Corporate Best Bank Award
2008
Outlook Money & NDTV Profit
Asian Banker
The Asian Banker Excellence in
Retail Financial Services Awards
One of India's "Most Innovative
Companies"
Best Bank Award in the Private Sector
category
-2009' Award & First Runner up
'Best Bank' Award
'Corporate Best Bank' Award
Best Bank Award in the Private sector
category
Our Managing Director Aditya Puri
wins the Leadership Achievement
Award for India
Best Retail Bank in India
 Business
The Bank operates in three segments:

Retail
Banking

HDFC
BANK

Wholesale Treasury
Banking Services
 LOANS
Majority of the people are under the burden of piled up debt, which
make them avail various loans just to consolidate their debt. By
seeing its sudden importance many financial institutions and firms
have started giving these loans on very affordable and nominal
rates.
Lenders first calculate the amt. you can borrow and that entirely
depends upon the salary, expenditure and saving you have.
Ones the loan is decided the next step is calculate the time frame,
which can usually range from 1 to 25 years. There are few points to
be kept in mind while availing the debt consolidation loan.

If possible consult any financial expert or broker for the exact
information so that there is no problem in the future.
Contd…
 Always choose the best and top rated financial firm for
getting the loan, as this will let you get the loan at very
affordable interest and amount.

 Try to make every installment on time so that there is no

payment issue in the future. And also keep the track of all
the payments made by you so that there is no confusion in
the end.

 Try to use the advice of the people who have already availed
the loan as they can guide you with their experiences.

Therefore the person must keep all these points in the mind in
order to get the full and fruitful usage of the loan amount.
Thus, if you are buried under the piled up debt then debt
consolidation loans are there for you to sail you out but opt
for the best and trusted policy and company.
 PRE REQUISITES FOR
ALL LOANS
A) SUPPORTING ‘DOCUMENTS’ REQUIRED TAKING A LOAN
In Case Of Salaried Employees:
ID proof - Pan card /driving license / employee I-card / voter ID / passport.
Residence proof - Electricity bill / telephone bill / water bill / ration card.
Latest 3 Months Salary Slip with all deductions
Form no.16 for income tax return
Bank statement for the last six months
One photo self attested
In Case Self-employed:
ID proof- Pan card /driving license / employee I-card / voter ID / passport.
Residence proof- Electricity bill / telephone bill / water bill / ration card.
Financial statement of the business / profession along with copies of Individual
Tax Returns for the last three years certified by Chartered Accountant
Income tax return + computation not more than 2 years old.
Bank Statement not more than 6 months old.
(B) ELIGIBILITY CRITERIA
In Case Of Salaried Employees:
Minimum age of Applicant: 21 years
Maximum age of Applicant at loan maturity: 60 years
Minimum employment: 1 year in current employment and minimum 2 years
of employment
Minimum Annual Income: Rs 100000 net annual income
Telephone: Must at residence
In Case Self-employed:
Minimum age of Applicant: 21 years
Maximum age of Applicant at loan maturity: 65 years
Minimum employment: At least 3 years in business
Minimum Annual Income: Rs.100000 per annum
Telephone: Must at residence
 (C) FILE MOVEMENT IN LOANS FOR
VERIFICATION
Documents collected from customer and sent to the credit agency

File sent for login at CPA

File sent for Field Investigation (FI) for verification

Risk Intelligence & Control agency (RIC) checks the customer’s background

Credit Appraisal Memo (CAM) is prepared

File reaches the credit manager for approval or rejection

File again reaches bank for disbursal

Money given to
customer
File finally reaches Mumbai (Head Office)
COMMON TERMS USED IN
COMPARATIVE
STATEMENTS
Rate Of Interest- Fixed rate of interest as the name suggests, is the rate that
remains fixed throughout the tenure of the loan. The rate does not normally
change till the full repayment of the loan. Floating rate is the rate which
moves upward or downward depending upon the market forces.
Processing fees: A Processing fees are stamp charges. It is charged on the
loan amount when the loan is sanctioned. It starts from 0.5 % and goes till
5%.
Penalty: Penalty is also known as pre closure charges. If the repayment of the
loan is done before the tenure, then penalty charges are charged from the
customer of the outstanding loan.
Tenure: Tenure is the duration of time the loan is taken.
Funding: Funding means maximum percentage of loan to fund to the
customer. Generally a small amount of margin is kept with the bank, rest is
given to the customer.
Charges for late payment of EMI: if the borrower does not pay the EMI at its
due date then he will charged with fines. This is generally according to the
time for which the payment is delayed.
 COMPARATIVE STATEMENT
OF HOME LOAN
PARTICULARS HDFC ICICI SBI SBOP

R.O.I.(FIXED) 14.1% 15% 13.25% 13.75%

For salaried 8.75%<20 lacs

8.75%<15 lacs 9.25% upto

FLOATING 9.00%>15 lacs 1 crore 8% 8%

Self employed 9.75%>1 crore
9.00%

PROCESSING 0.5%+service 0.5%+service NIL 1%

FEES tax tax
 Contd…
PENALTY 2% p.m. on 2% p.m. on 2% p.m. on 2% p.m. on
the o/s the o/s the o/s the o/s
amount amount amount
amount upto
4 years & 4
years its nil
TENURE 20 years 20 years 10 years 10 years

CBC 100 225 225 225

FUNDING 85% 80% 80% 80%

MIN. AGE 18 21 21 21

MAX. AGE 65 65 70 65
 COMPARATIVE STATEMENT
OF PERSONAL LOAN
PARTICULARS HDFC ICICI SBI SBOP

R.O.I.(FIXED) 12.5% N.A. No Fixed 13.75%

FLOATING 14% N.A. 13.5% 13%

PROCESSING 2.25% 2.5% 0.5% 1%

FEES
 Contd…
PENALTY 2% p.m. on 2% p.m. on 2% p.m. on 2% p.m. on
the o/s the o/s the o/s the o/s
amount amount amount
amount

TENURE 5 years 4 years 5 years 5 years

CBC 450 400 225 225

FUNDING 85% N.A. No Fixed No Fixed

MIN. AGE 21 25 21 21

MAX. AGE 65 58 65 65
 COMPARATIVE STATEMENT
OF AUTO LOAN
PARTICULARS HDFC ICICI SBI SBOP

R.O.I.(FIXED) 10.5% N.A. 11.75% 11.25%

FLOATING 10.5% N.A. For 1 year 10.25%

8%
Above 1
year
10%

PROCESSING <2 lacs-2000 <2.5 lacs-2500 Nil 0.5%

FEES 2-4 lacs-3000 2.5-5 lacs-3100
>4 lacs-3500 5-10 lacs-4000
>10 lacs-5000
 Contd…
PENALTY 2% p.m. on 2% p.m. on 2% p.m. on 2% p.m. on
the o/s the o/s the o/s the o/s
amount amount amount
amount

TENURE 3-5 years 5 years 7 years 7 years

CBC 450 400 225 225

FUNDING 90% 90% 85% 90%

MIN. AGE 21 21 21 21

MAX. AGE 65 65 65 65
 COMPARATIVE STATEMENT
OF TWO WHEELER LOAN
PARTICULARS HDFC ICICI SBI SBOP

R.O.I.(FIXED) 12.75% N.A. No Fixed 14%

FLOATING 14% N.A. 15.5% 13.25%

PROCESSING 2% N.A. Nil 1%

FEES
 Contd…
PENALTY 3% p.m. on N.A. 2% p.m. on 2% p.m. on
the o/s the o/s the o/s
amount amount
amount

TENURE 4 years N.A. 7 years 7 years

CBC 450 N.A. 225 225

FUNDING 85% N.A. 85% 85%

MIN. AGE 18 N.A. 21 21

MAX. AGE 65 N.A. 65 65

 COMPARATIVE STATEMENT
OF LOAN AGAINST PROPERTY
PARTICULARS HDFC ICICI SBI SBOP

R.O.I.(FIXED) 15% 14.75% No Fixed No Fixed

FLOATING 13.5% 13.5% 13.5% 13.25%

PROCESSING 1% 1% 1% 1%
FEES
 Contd…
PENALTY 2% p.m. on 2% p.m. on 2% p.m. on 2% p.m. on
the o/s the o/s the o/s the o/s
amount amount amount
amount

TENURE 15 years 20 years 10 years 10 years

CBC 450 400 225 225

FUNDING 45-65% 65% No Fixed No Fixed

MIN. AGE 21 21 21 21

MAX. AGE 65 65 65 65
 CUSTOMER
SATISFACTION SURVEY
In the study, a random sample of only existing customers of the
HDFC Bank was taken. The customers studied under this survey
were mostly walk-in customers. Proper care was taken to
approach those customers who could easily fill up the
questionnaire and were rational in their response. But there
could be some errors in the analysis, which could have crept into
due to lazy respondents, human errors and other factors.
Sampling procedure convenience sampling
Sample size 100
Sample extent Allahabad city
Occupation of respondents
stu de n t
re t ire d 10%
8%
sa la rie d
47%
se lf e m p lo y e d
35%

Maximum numbers of customer i.e. 47% belong to

salaried class, 35% of the customers are self- employed,
08% of the customer are retired and 10% are students.
 Types
lo a n a g a in of
st Loan
p ro p e rtyh o m e lo a n
tw o w he e le r 8% 24%
lo a n
12%

a u to lo a n
p e rso n a l lo a n
34%
22%

34% customers are of Auto Loans, 24% are of Home loans,

22% are of personal loan, 12% are of Two Wheeler loans
and 8% are of loan against property.
 Bank from which loan service is
being availed
HSBC OTHERS
HDFC
7% 12%
22%

IDBI
8% ICICI
13%
AXIS
SBOP
10% SBI
12%
16%

22% have taken the loan from HDFC Bank,13% from ICICI,16% from
SBI,12% from SBOP,10% from AXIS,8% from IDBI,7% from HSBC and
12% from others.
 Based on the customers
experience would you like to
prefer this bank in future
probably
not
probably 2%
would
30%

definitely
would
68%

Majority of the HDFC Bank loan holders i.e. 68% say that they would
definitely select this bank again in future for further services. 30% of
the customers say they would Probably select this bank again, while
2% say they would probably not select this bank again.
 Bank is quick in documentation
process

As far as documentation process is concerned, 61% of the

respondents has positive feedback i.e. bank is quick in process as
compare to 5% of respondents who has negative feedback.
 Bank shows promptness in
disbursements

This chart indicates that 61% of the respondents have a view that
bank shows promptness in disbursement as compare to the very
few respondents who has mixed kind of response
 Bank has convenient banking
hours

Here the view is different; the response was quite mixed up as

only 8% strongly agreed with it while 28% moderately disagreed
with it.
 Bank is transparent in all the
dealings and details are
communicated properly

Above chart shows that around 54% of the respondents agree with
the statement where as 30% of the respondents have no stand
about the statement and nearly 4% of the respondents disagree
with the statement.
 SUGGESTIONS
 During the survey, it was found that the customer had to wait too long for the
loans to get disbursed. The processing time is too long. Customer had to wait for
their loan processing done by the staff. Efforts should be made to reduce it
 It was found out that there is lot of formalities in the loan disbursement process.
Too much documentation is done. Customer is not aware of all the formalities to
be done which he is asked to do. Reading loan agreement at the time of taking
loan is time consuming. Therefore paper work should be more friendly and clear.
 After sales service is not up to the mark. Customers facing problems are not
attended on time. Staff is generally co-operative only at the time of loan is
sanctioned and disbursed. Therefore after sales service should be improved up to
satisfaction level of the customer.
 Customers should be given proper information about EMI. They are generally
not told how their EMI are calculated. They should know its calculation and its
amount.
 Public dealing hours should be increased to some later time period because
majority of the customers were found out to be salaried in the survey.
 Website of HDFC Bank should be up dated and should give more options and
features to customers so that they can get maximum information sitting at home.
 Bank should make efforts to attract more and more customers through increased
advertisement.
 LIMITATIONS OF THE
STUDY
While working on the project following limitations and
constraints were found.

 As the study was done within a branch of HDFC Bank it

did not cover the broad spectrum of customers.

 Lack of expertise being a trainee in analyzing data.

 The sample size had to be contained 100 respondents

due to constraints on time.

 Some respondents were not co-operative, did not

respond to the questionnaires very well.

 Some respondents gave biased information so as to

promote their Bank in which they are dealing.
 QUESTIONNAIRE
(Customer Survey)
NAME:__________________
AGE:__________________
ADDRESS:___________________________________
SEX: Male / Female

 What is your annual income?

a) Below 1 lac c) 2-3 lac
b) 1-2 lac d) above 3 lac

 What is your occupation ?

a) Salaried c) Retired
b) Self-Employed

 What kind of loan you have taken?

a) Home loan c) Auto loan
b) Personal loan d) Two wheeler loan
e) If any other, specify ____________
 What is the:
Amount of loan: ________________
Tenure: _______________________
From which bank you have taken?

 Since when
a) Less than 2 years b) Less than 5 years
c) More than 5 years
 Based on your experience, would you select this bank for any service again in
future?
a) Definitely would c) Probably not
b) Probably would d) Definitely not

Please rate how would you compare the following attributes for
customer convienence.
Given below are set of statements kindly give your choice:-

1 2 3 4 5
Strongly Moderately Neither agree Moderately Strongly agree
disagree disagree or disagree agree
 Bank has modern buildings and up to date 1 2 3 4 5
infrastructure

 Bank is located at a convenient location 1 2 3 4 5

and has proper parking space

 Average transaction time involved in 1 2 3 4 5

transactions is acceptable

 Employees have caring attitude towards 1 2 3 4 5

their customers

 My bondage with banker is very strong 1 2 3 4 5

 Bank is technology driven 1 2 3 4 5

 Bank understands specific needs of 1 2 3 4 5

customers and give individual attention

 Customers have access to bank management 1 2 3 4 5

in case of some serious problem

 Employees are courteous and show 1 2 3 4 5

willingness to help client
 Bank is transparent in all the dealings 1 2 3 4 5
and details are communicated properly

 Bank has convenient banking hours 1 2 3 4 5

 Bank is quick and efficient in transfer 1 2 3 4 5

of funds

 Bank have foolproof security 1 2 3 4 5

arrangements to ensure safety

 Bank has an adequate branch network 1 2 3 4 5

 Bank has an adequate skilled and trained 1 2 3 4 5

Employees

 Bank shows promptness in disbursement 1 2 3 4 5

 Bank is quick in documentation process 1 2 3 4 5

 Transaction cost involved is acceptable 1 2 3 4 5

as compared to other banks

 Additional staff and counters are deployed 1 2 3 4 5

during peak hours

 Bank has proper seating 1 2 3 4 5

arrangement
 Any suggestions for improvement
______________________________________
______________________________________
______________________________________

Thank you.
 BIBLIOGRAPHY
 http://www.hdfcbaknk.com/personal/loans/auto_loans.htm
 http://www.hdfcbaknk.com/personal/loans/personal_loans.htm
 http://www.hdfcbaknk.com/personal/loans/home_loans.htm
 http://www.hdfcbaknk.com/personal/loans/twowheeler_loans.htm
 http://www.hdfcbaknk.com/personal/loans/loanagainstproperty.htm
 http://www.icicibank.com
 http://www.statebankofindia.com
 http://www.statebankofpatiala.com
 Various pamphlets and brochures of HDFC bank