PROJECT REPORT On

COMPARATIVE STUDY OF PERSONAL LOAN AND HOME LOAN WITH STATE BANK OF INDIA
Submitted to
UNIVERSITY OF RAJASTHAN, JAIPUR.

For the Partial Fulfillment of Paper VI for the Degree of Bachelor of Business Administration (B.B.A)

Supervised Submitted by: Shikha Bakshi

by: Shivani Sharma B.B.A III YEAR

2011-2012 S.S JAIN P.G MAHILA MAHAVIDHYALAYA

Rambagh, Jaipur

CERTIFICATE

This

is

certified

that

the

project

report

entitled

COMPARATIVE STUDY OF PERSONAL LOAN AND HOME LOAN WITH STATE BANK OF INDIA
has been written by Ms. Shivani Sharma; a student of

Bachelor of Business Administration session 2011-2012

,under my supervision and submitted for the award of the degree of Bachelor of Business Administration of

University of Rajasthan, Jaipur.

Date:

DECLARATION
I hereby declare that project report entitled

COMPARATIVE STUDY OF PERSONAL LOAN AND HOME LOAN WITH STATE BANK OF INDIA, is a bonafide record of work done by me during the
project work and that it has not previously formed the basis for the award to me for any degree/diploma, associate ship, fellowship or other similar title of any other institute/society.

Date:

SHIVANI SHARMA B.B.A Part III

Acknowledgement
I o e m s c re a d h a s g titu e to D w y in e n e rtie t ra d r. P m Jsi ra ila o h s h is e k de o g w m a da a s in n u h ith e n lw y . M De a r. e p k a t IC I B n IC a k wo h h lp m w e e e I n e e e s e hnvr edd I a g te l fo m p je t to m ra fu r y ro c P liw l A s ta t M n g r (H ) a a s is n a a e R ta eth p je t infu rec u efo m c re r. k is ro c tu o rs r y a e L s b t n t th le s I a th n fu to a th a t u o e a t; m ak l ll e m m e o s ff o IC I P d n l fo m k g m e b rs f ta f IC ru e tia r a in y p je t s c e s l ro c u c s fu h lp d m th u h u th p je t a d e c u g d to e e e ro g o t e ro c n n o ra e

SHIVANI SHARMA
B.B.A. III YEAR

Preface
ICICI bank is Indias second largest bank. It provides the home loan facility also with various schemes and plans. It has the Indias best home loan plans. The customers are given best facilities and are provided with every helpful knowledge. Home loans are the loans which are taken by the people who want to purchase houses but are not financially secured. The home loan provided them the financial security by providing them the money on the exchange of some security and charging some interest rates. There are several banks in Home loan sector and due to which the competition has increased in the market, which is always beneficial for the customers. S.B.I and ICICI are the top banks of India and are providing good facilities in home loan sector. I have done the comparison over these two companies policies and which are best for the market growth.

INDUSTRIAL PROFILE INDIAN BANKING SYSTEM:

Organized banking was active in India since the establishment of the general bank of India in 1786. After the independence, the reserve bank of India RBI was established as the central bank and in 1955, the imperial bank of India the biggest bank at the time ,was taken over by the government to from state owned state bank of India . RBI had undertaken an exercise to merge weak banks to strong banks and the total number of banks, thus reduced from 566in 1951 to 85 in 1969. With the objective of reaching out to masses and meeting the credit needs of all sections of people, the government nationalized 14 large banks in 1969 followed by another 6 banks in 1980. This period saw enormous growth in the number of the branches and the banks branches network become wide enough to reach the weakest sections of the society in a vast country like India. SBIs network of 9033 domestic branches and 48 overseas offices is considered to be one of the largest for any banks in the world The economic reforms unleashed by the government in early nineties included banking sector too, to a significant extant. Entry of new private sector banks was permitted under specific guidelines issued by RBI. A number of liberalization and deregulation measures aimed at consolidation, efficiency productivity, asset quality capital adequacy and profitability have been introduced by the RBI to bring Indian banks in line with international beat practices.

Banks are prone to crisis:

The traditional bank has an inherent tendency to crisis. This is because the bank borrows short terms and lends leveraged long term. The sum of deposits and the banks capital will never equal more than a modest percentage of the loans the bank has outstanding.Even if liquidity is not a concern, if there is no run on the bank, banks can simply choose a ban portfolio of loans, and lose more money than they have. The US Savings and Loan Crisis in the late 1980s and early 1990s is such an incident.

Role in the money supply:

A bank raises funds by attracting deposits, borrowing money in the inter-bank market, or issuing financial instruments in the money market or a securities market. The bank then lends out most of these funds to borrowers. However, it would not be prudent for a bank to lend out all of its balance sheet. It most keep a certain proportion of its funds in reserve so that it can repay depositors who withdraw their deposits. Bank reserves are typically kept in the form of a deposit with a central bank. This behavior is called fractional-reserve banking and it is a central issue of monetary policy. Some government (or their central banks) restrict the proportion of a banks balance sheet that can be lent out, and use this as a tool for controlling the money supply. Even where the reserve ratio is not controlled by the government, a minimum figure will still be set by regulatory authorities as part of banking supervision.

SOCIAL CONTROL OF BANKS:

Indian banking structure has grown considerably in strength and stability due to the vigorous control and effective monitoring by reserve bank of India. However, Order to remove the deficiency pointed above, the Government introduced a scheme of social control of banks. According to the Banking Commission (1972), the social control scheme was introduced with the main objective of achieving a wider spread of bank credit flow to priority sectors and making it a more effective instrument of development.

STRUCTURE OF THE INDIAN BANKING INDUSTY

The Indian Banking industry, which is governed by the Banking Regulation Act of India, 1949 can be broadly classified into two major categories Non-Scheduled Banks and Scheduled Banks. Scheduled banks comprise commercial banks and the cooperative banks. In terms of ownership, commercial banks can be further grouped into nationalized banks, the Stat Bank of India and its group banks, regional rural banks and private sector banks these banks have over 67,000 branches spread across the country. The first phase of financial reforms resulted in the nationalization of 14 major banks in 1969 and resulted in a shift from Class banking to Mass banking. This in turn resulted in a significant growth in the geographical coverage of banks. Every bank had to earmark a minimum percentage of their loan portfolio to sectors identified as priority sectors. The manufacturing sector also grew during the 1970s in protected environs and the banking sector was a critical source. The next wave of reforms saw the nationalization of 6 more commercial banks in 1980. Since then the number of scheduled commercial banks increased four-fold and the number of bank branches increased eight-fold. After the second phase of financial sector reforms and liberalization of the sector in the early nineties, the Public Sector Banks (PSB) s found it extremely difficult to compete with the new private sector banks and the foreign banks. The new private sector banks first made their appearance after the guidelines permitting them were issued in January 1993. Eight new private sector banks are presently in operation. These banks due to their late start have access to state-of-the-art technology, which in turn helps them to save on manpower costs and provide better services.

RESERVE BANK OF INDIA Central Bank and Supreme Monetary Authority

Scheduled of Banking Sector

COMMERICAL BANKS

CO-OPERATIVE BANK

Foreign Banks

Regional Rural Banks

Urban cooperative Banks

State cooperative Banks

Public Banks

Private Banks

OLD BANKS

New Banks

State Banks of India & Other Banks

Other Nationalized Banks

FOREIGN BANKS IN INDIA:

Foreign banks have brought latest technology and latest banking practices in India. They have helped made Indian Banking system more competitive and efficient. Government has come up with a road map for expansion of foreign banks in India. The road map has two phases. During the first phase between March 2005 and March 2011, foreign banks may establish a presence by way of setting up a wholly owned subsidiary (WOS) or conversion of existing branches into a WOS. The second phase will commence in April 2011 after a review of the experience gained after due consultation with all the stake holders in the banking sector. The review would examine issues concerning extension of national treatment to WOS, dilution of stake and permitting mergers/acquisitions of any private sector banks in India by a foreign bank.

MAJOR FOREIGN BANKS IN INDIA ARE:

ABN-AMRO Bank Abu Dhabi Commercial Bank Ltd. American Express Bank Ltd BNP Paribas Citibank
HSBC Ltd

PUBLIC BANKS IN INDIA:

The Banking System in India is dominated by nationalized banks. The Nationalization of Banks in India took place in 1969 by Mrs. Indira Gandhi the then Prime Minister. The major objective Behind Nationalization Banks was to spread banking Infrastructure in Rural areas and make available cheap finance to Indian farmers. Fourteen banks were nationalized in 1969. These Banks were Before 1969, State Bank of India (SBI) was the only public sector bank in India. SBI was nationalized in 1955 under the SBI Act of 1955. The second phase of nationalization of Indian banks took place in the year 1980. Seven more banks were nationalized with deposits over 200 crores. Some of the following public sector banks in India are listed below.

LIST OF PUBLIC SECTOR BANKS IN INDIA IS AS FOLLOWS:

Allahabad Bank Andhra Bank Bank of Baroda Bank of Maharashtra Canara Bank Central Bank of India Corporation Bank Dena Bank Oriental Bank of Commerce Punjab National Bank State Bank of Bikaner & Jaipur
State Bank of India (SBI)

PRIVATE BANKS IN INDIA:

All the banks in India were earlier private banks. They were founded in the preindependence era to cater to the banking needs of the people. But after nationalization of banks in 1969 public sector banks came to occupy dominant role in the banking structure. Private sector banking in India received a fillip in 1994 when Reserve Bank of India encouraged setting up of private banks as part of its policy of liberalization of the Indian Banking Industry. Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector. Private Banks have played a major role in the development of Indian banking industry. They have made banking more efficient and customer friendly. In the process they have jolted public sector banks out of complacency and forced them to become more competitive.

MAJOR PRIVATE BANKS IN INDIA ARE:

Bank of Rajasthan Centurion Bank of Punjab UTI Bank YES Bank Federal Bank HDFC Bank ICICI Bank IDBI Bank ING Vysya Bank INTRODUCTION OF NEW PRODUCTS AND SERVICES

Banks in India have traditionally offered mass banking products. Most common deposit products being Savings Bank, Current Account, Term deposit Account and lending products being Cash Credit and Term Loans. Due to Reserve Bank of India guidelines, Banks have had little to do besides accepting deposits at rates fixed by Reserve Bank of India and lend amount arrived by the formula stipulated by Reserve Bank of India at rates prescribed by the latter. PLR (Prime lending rate) was the benchmark for interest on the lending products. But PLR itself was, more often than not, dictated by RBI. Further, remittance products were limited to issuance of Drafts, Telegraphic Transfers, Bankers Cheque and Internal Transfer of funds. Banking products structure has undergone a major change. As part of the economic reforms, banking industry has been deregulated and made competitive. New players have added to the competition. IT revolution has made it possible to provide ease and flexibility in operations to customers. Rapid strides in information technology have, in fact, redefined the role and structure of banking in India. Further, due to exposure to global trends after Information explosion led by Internet, customers - both Individuals and Corporate - are now demanding better services with more products from their banks. Financial market has turned into a buyer's market. Banks are also changing with

time and are trying to become one-stop financial supermarkets. Market focus is shifting from mass banking products to class banking with introduction of value added and customized products. A few foreign & private sector banks have already introduced customized banking products like Investment Advisory Services, SGL II accounts, Photo-credit cards, Cash Management services, Investment products and Tax Advisory services. A few banks have gone in to market mutual fund schemes. Eventually, the Banks plan to Market bonds and debentures, when allowed. Insurance peddling by Banks will be a reality soon. The recent Credit Policy of RBI announced on 27.4.2000 has further facilitated the entry of banks in this sector. Banks also offer advisory services termed as 'private banking' - to "high relationship - value" clients. Properly and also take your passport-sized photo. Home banking has already become common, where you can order a draft or cash over phone/internet and have it delivered home. ICICI bank was the first among the new private banks to launch its net banking service, called Infinity. It allows the user to access account information over a secure line, request Cheque books and stop payment, and even transfer funds between ICICI Bank accounts. Citibank has been offering net banking to its Suvidha program to customers. Products like debit cards, flexi deposits, ATM cards, personal loans including consumer loans, housing loans and vehicle loans have been introduced by a number of banks. Corporate are also deriving benefit from the increased variety of products and competition among the banks. Certificates of deposit, Commercial papers, Non-convertible Debentures at can be traded in the secondary market are gaining popularity. Recently, market has also seen major developments in treasury advisory services. With the introduction of Rupee floating rates for deposits as well as advances, products like interest rate swaps and forward rate agreements for foreign exchange, risk management products like forward contract, option contract, and currency swap are offered by almost every authorized dealer bank in the market. The list is growing. Public Sector Banks like SBI have also started focusing on this area. SBI plans to open 100 new branches called Personal Banking Branches (PBB) this year. The will also market SBI's entire spectrum of loan products: housing loans, car loans, personal loans, consumer durable loans, education loans, loans against share, finance against go banks.

LOAN PRODUCTS OF THE BANKING INDUSTRIES:

A loan is a type of debt. This article focuses exclusively on monetary loans, although, in practice, any material object might be lent. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially does receive an amount of money from the lender, which he has to pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A loan is of the annuity type if the amount paid periodically (for paying off and interest together) is fixed. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Legally, a loan is a contractual promise between two parties where one party, the creditor, agrees to provide a sum of money to a debtor, who promises to return the money to the creditor either in one lump sum or in parts over a fixed period in time. This agreement may include providing additional payments of rental charges on the funds advanced to the debtor for the time the funds are in the hands of the debtor (interest).

Types of loans:
Secured
A secured loan is a loan in which the borrower pledges some asset (e.g. a car or
property) as collateral for the loan. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it.

In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. A type of loan especially used in limited partnership agreements is the recourse note. A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[ A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan. This is considered a secured nonrecourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven.

Home loans: a route to home sweet home:

The last few years have seen a rise in the income of the people. As a result of this, many people have moved up on the income ladder. With the increase in income, there has been seen an increase in demand. One of the core necessities of human beings is a house of their own. The increase in the demand for houses, flats and properties has lead to an altogether new dimension. Just like a demand needs to equal supply to reach at the point of equilibrium, the increase in the demand for finances for the new homes has lead to home loans. It is not a new sector, but home loans were a proposition which wasnt considered by the Indian consumers till even a decade back.

The banks present in India were very quick to assess the retail and property boom prevalent in the economy. This has lead to new bank loan schemes in India. In India, banks alone do not lend money to people, apart from them, public sector housing
finance or private financial institutions are also main sources of home loans. Hence,

now the dreams of owning a home can be materialized just by considering the different

home loans options available in India. These home loan schemes are gaining popularity because of the cheap interest rates they charge and other features of simplicity. A large number of choices for loans give you the opportunity to borrow loans according to your necessity and earning ability.
The home loans issued by the housing finance companies allocate funds up to 80-85% of the total flat or plot cost. The approved loan amount is generally transferred to the given account or a cheque is handed over to the borrower. After this the borrowers are free to make use of the amount according to their own requirement. An advantage of these sorts of loans is that they follow long repayment to all categories of people can use the benefits of a home loan, like self-employed, salaried individuals, housewives, business professionals, retired persons and farmers. The scheme also works for NRIs. As mentioned earlier, there are a variety of options to choose from in the home loans sector. India has no scarcity of home loan lenders or home loans schemes. What is important for candidates is to not decide on a home loan without seeing the other options available in the market. The most important criteria while deciding a home loan is the interest rate that the rms and candidates can repay them in easy installments. Home loan charges. These interest rates matter a lot and influence your monthly installment burden. Hence, it is very important to choose that home loan which offers the best deal of interest rate to you. The internet works as an excellent tool in helping people not only choose from the different home loan schemes being offered by the various banks, but also allows one to obtain a detailed comparison of all those home loan schemes. These days, people can also purchase home loans online, instead of physically going to banks. This has helped in saving the time and energy of the borrowers. The process of approval of home loans in India is simple. The applicant can credit his/her property against the loan or if applicant is a salaried individual then he/she should enclose documents proving his/her earnings. The other related identification proofs vary from lender to lender. As a last piece of advice, one must always remember to go thorough with all terms and conditions mentioned in the home loans document. The home loans market is one which one can enter very easily. However, a little amount of intelligence and awareness can

help an individual get the best deal available in the market. So, pick up a pen and a paper and choose the loan that will get you the home of your choice. A boom in the retail sector has seen an immense increase in the home loan interest rates over the past 4 years. Home loan rates have doubled over the past 4 years. The present problem of inflation has also had a negative effect on the consumers as the fixed and the floating rate of interests have soared to an alarming degree. This in turn has certainly affected the loan eligibility for home loans in India. This has also lead to loan borrowers re-evaluating their options to avail new eligibility criteria.

At this time, it is important to understand how to enhance ones home loan eligibility. Given below are some ways which can help in this Endeavour:

Increasing the home loan tenure:

The easiest method available to increase ones home loan eligibility is by taking home loans for the Maximum Tenure. As an example, let us consider an individual who earns a monthly salary of Rs 60,000. He decides to purchase a house, and for that he buys a home loan. After deducting a monthly expenditure of Rs 35,000, the individual is able to save Rs 25,000. Undoubtedly, he will use his savings for repaying the loan in the form of equated monthly installments (EMI). Now, lets consider that the installments for a home loan of Rs 1 lakh come at an interest rate of 12.5%. If the loan is taken for tenure of 15 years, the EMI calculated stands at Rs 1,232.50. For this data, his home loan eligibility will be 20.3 lakh. However, it is possible for the same individual to increase his home loan eligibility by around Rs 2 lakh if he can extend his tenure to 20 years. Assuming the same rate of interest i.e. 12.5% and now 20 year tenure on Rs 1 lakh loan, the EMI turns out to be Rs 1,136. Consequently, the home loan eligibility comes to Rs 22 lakh.

Dont rush towards a home loan:

Less information is as harmful as wrong information.

The importance of this statement lies in the fact that today there are many banks offering different varieties of home loans to individuals. Nowadays, almost every bank is offering a home loan with the repayment period of maximum 20 years. The next important thing to consider after the tenure is the rate of interest. For that reason, it is always advised, never to rush to purchase a home loan. It is better to carry out a research regarding the available home loan schemes and to study the market meticulously to make the best use of what many banks and housing finance companies are willing to lend before making a choice The next decision that an individual needs to make is to choose between floating and fixed interest rate on home loan, which is largely based on ones personal preference and knowledge about the both. However, the floating rate home loans are available for anywhere between 11.5-13%. Also, it might not be necessary that the first scheme being presented by a bank employee would be the best for an individual. Hence, always ask questions and enquire about the various schemes available with the bank, and then make the final call.

Repay

all outstanding loans:

A good report card always helps. It is highly advised by bankers that before going to purchase any bank loan, an individual should repay all the other pending outstanding loans. Any loan taken by an individual like car loans or personal loans, taken on any bank, needs to be paid up to date. This adds to the ability to repay of the individual and the lending institution takes a greater interest in issuing a home loan. Also, these days, any bounced cheque of any late payment, is not missed by banks. Hence, its important to be thorough with the repayments. When

in need go for a joint loan:

If one spouses income comes short of the required amount set by the bank to issue a loan, then several banks and HFCs have come up with a joint loan option. This option guarantees a loan for both the husband and wife earning a combined income of Rs 1 lakh per month. The choice for a greater loan is available with either husband or wife earning Rs 60,000 per month. These are simple to follow tips, and can go a long way in increasing the home loan eligibility of an individual. So, buckle up and get ready to purchase your home loan smartly.

Unsecured:
Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages:

credit card debt personal loans bank overdrafts credit facilities or lines of credit corporate bonds

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

What to look for while taking a personal loan:

Are you in need of cash but do not have any solid assets against which you could take a loan? Then you have an option to rely upon that has been designed specially for this purpose. Personal loans can be availed for any purpose and thus they are of great help at any point you do not have cash.

However it is important for us to deeply examine any loan offer and make the right choice. So following are few facts that help you decide if you want to avail a personal loan.

Examine your personal loan:

Today all banks and financial institutions are offering personal loans to the borrowers but it is important to note down few tips before you finalize your personal loan lender. You should do a detailed market survey of the various options like the interest rates offered, pre-payment charges levied and terms & conditions laid down by the lender. Interest rate is the most critical component of all the costs that you pay on your personal loan, so make sure that you grab on the cheapest available option in the market. Some banks calculate interest on monthly reducing basis while others evaluate it on annual basis. It is advisable to ensure that the interest rate is calculated on a monthly reducing basis because the moment you pay your installment, the next month's interest rate is calculated on the reduced amount. Equated Monthly Installments (EMIs) sometime come out to be a lot more than what you can afford on a monthly basis. So keep in mind that a lower loan amount will reduce the tenure and also make the EMI fall in your budget. The best way to find out a reasonable option is to get your EMI calculated before you buy the loan and th Check the repayment tenure. Banks normally limit the maximum number of years for which a loan is given. Moreover the maximum number of years may be different for salaried individuals, self-employed individuals and self-employed professionals. At the same time the minimum and maximum loan amount that can be availed by an individual is also categorized in the same manner. Make sure that other costs such as processing charges, foreclosure charges, service charges and other charges are all worked out before considering the loan. You should look for zero processing fees and zero-penalty for foreclosure option but if it not available then hunt for the lowest option. All deals and offers agreed upon should be taken on fine print to avoid future hassles.

Although a personal loan is a friend in need but it should be ensured that it is not availed for a luxury that becomes a burden in the future. where by bet on the lowest EMI.

Advantages:
Personal loans do not require you to produce any collateral or security, like other loans. There is no agent or middleman while obtaining a personal loan. Banks are always ready to offer this loan. You may avail personal loans according to your eligibility ranging anywhere from Rs. 15,000 to Rs. 10, 00,000. Paper work to get the loan sanctioned is less. The payment period is up to a maximum of 60 months. It is better to avail a personal loan than to borrow cash on your credit card in terms of the interest rates charged on both. You can use a personal loan for whatever purpose you want.

Disadvantages:
The eligibility criteria are stricter in case of personal loans, since there is no security required and the paper work is also less. The bank checks on your capability to repay more than any other loan due to the same reason. Only an approved category of borrowers are given personal loans because of the higher amount risk associated with them. Personal loan rates are high as compared to the interest rates charged on home loans, loans against property or loans against shares. They could range from 12% to 30%. Even the service charges and prepayment penalty are very high So given the pros and cons of personal loans one should be cautious while he goes shopping for such a loan. He should know what exactly to look for in the market.

Getting the best rates on your personal loans in India:

Personal loans provide vital financial support for any reason within a short period of time. The convenience offered by personal loans is not without the associated costs. The

interest rates, processing fees, prepayment penalty, administrative charges, document charges, verification charges and other fees make them a pretty costly way to get instant money. How do we get the best rates for our personal loans? What is the process by which we can save money on interest rates, other fees and associated charges on our personal loans? This question bothers almost everyone who wants or has taken a personal loan. Here are few things, which if taken into consideration while applying for a personal loan can save a The basic of getting any loan applies to personal loans as well. For all loans if the bank thinks that you are a worthy customer who shows promise by your repayment capacity and fulfills other eligibility requirements completely, they will try to offer the best rates. On the other Hand if they find that something which is required is missing from your profile they might impose higher terms, which could increase the cost of your personal loan drastically.

BANKING IN INDIA TODAY

The entire banking sector has undergone a restructuring during recent years as a result of recent development. The new technologies have added to the competition. The IT revolution has made it possible to provide easy and flexibility in operation to customer thus making life simpler and easiest. The rapid strides in information technology have, infect, redefined the role and structure of banking in India. Further, due to the exposure to global trend s after information explosion lead by more products from their bank. The financial market has turned in to a buyers market. Banks are also coping and adapting with time and are trying to become one stopped financial super market. Private sector Banks have pioneered internet banking, phone banking, anywhere banking, mobile banking, debit cards, Automatic Teller Machines (ATMs) and combined various other services and integrated them into the mainstream banking arena, while the Private Sector Banks are still grappling with disgruntled employees in the aftermath of successful VRS schemes. Also, following Indias commitment to the WTO agreement in respect of the services sector, foreign banks, including both new and the existing ones, have been permitted to open up to 12 branches a year with effect from 1998-99 as

against the earlier stipulation of 8 branches .Meanwhile the economic and corporate sector slowdown has led to an increasing number of banks focusing on the retail segment. Many of them are also entering the new vistas of Insurance. Banks with their phenomenal reach and a regular interface with the retail investor are the best placed to enter into the insurance sector. Banks in India have been allowed to provide fee-based insurance services without risk participation invest in an insurance company for providing infrastructure and services support and set up of a separate joint-venture insurance company with risk participation. The Indian has finally worked up to the competitive dynamics of new Indian market and is addressing the relevant issues take on the multifarious challenges of globalization. Bank that employ IT solutions are perceived to be futuristic and proactive players capable of meeting the multifarious requirement of large customer base. Private Banks have been fact on the uptake and are reorienting their strategies using the Internet as a medium. The Indian banking has come from a long from being a sleepy business institution to a highly proactive and dynamic entity this transformation has been largely brought by the large dose of liberalization and economic reforms that allowed exploring new business opportunities rather than generating revenues form conventional streams. The Indian Industry has confidently hit the growth trial that pick in activity is best reflected in the banking sector which after all is as candid a mirror of a countrys economy as you could ever find. Most of the Indian financial intermediaries have been keeping pace with the deepening market economy, riding the opportunity that come along with reforms even as they brace themselves for increased competition both foreign and private by strengthening prudential norms and leveraging technology to ensure that growth engine hums smoothly along. The essential function of a bank is to provide services related to the storing of value and the extending credit. The evolution of banking dates back to the earliest writing, and continues in the present where a bank is a financial institution that provides banking and other financial services. Currently the term bank is generally understood an institution that holds a banking license. Banking licenses are granted by financial supervision

authorities and provide rights to conduct the most fundamental banking services such as accepting deposits and making loans. There are also financial institutions that provide certain banking services without meeting the legal definition of a bank, a so called nonbank. Banks are a subset of the financial services industry. The word bank is derived from the Italian bank, which is derived form German and means bench. The terms bankrupt and broke are similarly derived from banker Rota, which refers to an out of business bank, having its bench physically broken. Money lenders in Northern Italy originally did business in open areas, or big open rooms, with each lender working from his own bench or table. Typically, a bank generates profits from transaction fees on financial services or the interest spread on resources it holds in trust for clients while paying them interest on the asset.

BRANCHES OF VARIOUS BANKING:

STATE BANK OF INDIA BRANCHES:
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.

ICICI BANK BRANCHES:

ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its whollyowned subsidiary

HDFC BANK BRANCHES:

Was incorporated in August 1994 in the name of 'HDFC Bank Limited', with its registered office in Mumbai, India. The Bank commenced operations as a Scheduled Commercial Bank in January 1995.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an 'in principle' approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI's liberalization of the Indian Banking Industry in 1994. Headquartered in Mumbai, HDFC Bank, has a network of over 531 branches spread over 228 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations are serviced through Telephone Banking. The Bank also has a network of about over 1054 networked ATMs across these cities. HDFC Bank's ATM network can be accessed by all domestic and international Visas / MasterCard Punjab National Bank was established in 1895 at Lahore. PNB has the distinction of being the first Indian bank to have been started solely with Indian capital. In 1969, Punjab National Bank was nation

IMPACT OF GLOBALIZATION ON BANKING SERVICE IN INDIA

BUSINESS ENVIRONMENT OF GLOBAL BANK:
Global Bank has undergone a series of substantial changes in the last 10 years, starting with the deregulation of the U.S. financial services industry in the late 1990s. Seeking to rapidly expand its portfolio, the bank undertook a series of mergers and acquisitions. Global Bank now has over 200 branches across the western United States, and offers a complete line of integrated financial services, including:

Lending. This includes credit cards, consumer loans (such as, auto and line of
credit), mortgage, and home equity.

Investing. This includes certificates of deposit, trust services, brokerage

services (including securities), annuities, individual retirement accounts, and mutual funds.

 Financial planning. This includes comprehensive financial planning

services, including retirement, education, tax, and estate planning, including both future planning and plan execution services.

TECHNICAL ENVIRONMENT OF GLOBAL BANK

In the mid-1980s Global Bank had a single mainframe system, accessed through IBM 3270 terminals in each branch. Due to numerous acquisitions, the fragmentation of technology within its divisions, and the natural evolution of technology, the technical environment at Global Bank have changed substantially since then. It now consists of multiple different back-end systems, with a middleware component to facilitate communication between them. The 3270 terminals have been replaced with personal computer clients that run multiple applications and perform terminal emulation to communicate with the back-end systems. During this time, Global Bank also invested heavily in technology to provide additional Channels for customer communication, including Automated teller machines , Telephone banking services, Internet banking

Global Bank networking environment

COMPANY PROFILE
ICICI Bank is India's second-largest bank. The Bank has a network of about 573 branches and extension counters and over 2,000 ATMs. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its whollyowned subsidiary.ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. In 2001, ICICI bank acquired Bank of Madura Limited ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South AfricaToday, ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank is India's second-largest bank with total assets of Rs. 3,744.10 billion (US$ 77 billion) at December 31, 2008 and profit after tax Rs. 30.14 billion for the nine months ended December 31, 2008. The Bank has a network of 1,438 branches and about 4,644 ATMs in India and presence in 18 countries. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International Finance Centre and representative offices in United Arab Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches in Belgium and Germany. ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE).

ABOUT ICICI BANK :

ICICI was established by the Government of India in the 1960s as a Financial Institution (FI, other such institutions were IDBI and SIDBI) with the objective to finance large industrial projects. ICICI was not a bank - it could not take retail deposits; and nor was it required to comply with Indian banking requirements for liquid reserves. ICICI borrowed funds from many multilateral agencies (such as the World Bank), often at concessional rates. These funds were deployed in large corporate loans. At the time of the reverse merger, there were rumours that ICICI had a large proportion of Non Performing Loans ("NPA", as they are known in India) on its books - in particular to the steel industry. Since 2002, there has been a general revival in Indian industry (and metal based industry in particular). It is widely believed that the All this changed in 1990s. ICICI founded a separate legal entity - ICICI Bank which undertook normal banking operations - taking deposits, credit cards, car loans etc. The experiment was so successful that ICICI merged into ICICI Bank ("reverse merger") in 2002.proportion of NPAs has come down to prudent levels (even if it were high earlier). ICICI Bank now has the largest market share among all banks in retail or consumer financing. ICICI Bank is the largest issuer of credit cards in India It was the first bank to offer a wide network of ATM's and has a large network of ATM's. ICICI Bank now has the largest market value of all banks in India, and is widely seen as a sophisticated bank able to take on many global banks in the Indian market.

The Bank is expanding in overseas markets and has the largest international balance sheet among Indian banks. The international banking business was set up in 2002 to implement a focused strategy for the overseas market. The Bank now has wholly-owned subsidiaries, branches and representatives offices in 18 countries, including an offshore unit in Mumbai. This includes wholly owned subsidiaries in UK, Canada and Russia, offshore banking units in Singapore and Bahrain; advisory branch in Dubai, branches in Sri Lanka, Hong Kong and Belgium; and rep offices in the US, China, United Arab Emirates, Bangladesh, South Africa, Indonesia, Thailand and Malaysia. The bank is targeting the NRI (Non Resident Indian) population for expanding its business. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE. After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transactionbanking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong

corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its whollyowned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

FOREWORD:
Liberalization and Globalization have shrunk the world into a global village. Rapidly moving world economy has intertwined the geographically divided countries into single thread. Opening up of the economy for the rest of the world would shape our industries and companies by the same economic forces as else where in the world. Industries and companies thus have to work in a competitive market place, where there is no guarantee that every business must make money. Dynamic market condition and global economic slowdown have forced an individual to become more cautious about investment of each penny saved. In such time of uncertainty and insecurity, banks come to investors rescue by offering safe and revenue yielding investment avenues. Modifying their deposit products and developing new and innovative schemes with advanced services modern banks have there by made banking more closer and easier in individuals life. Privatisation waves in last decade of twentieth century have changed the face of baking in service industry. Plethora of private banks flooded in to the market. ICICI bank one, amongst them, come up ahead leaving other private banks one, amongst them, come up ahead leaving other private banks behind by serving e-age-banking of customers. This report unveils the growth story of ICICI bank, throws light on unknown aspects of banking and would unfolds the hidden facts about the bank. This report served as a mean to share our personal experiences while working on this project, which provided us platform where we were face-to face to practical aspects of theoretical knowledge gained so far.

ICICI BANK - THE UNIVERSAL BANK

Second largest Bank in India Rated by Moodys above sovereign rating First Indian Bank to be listed on NYSE

ICICI BANK HISTORY:

Industrial Credit and Investment Corporation of India) India's largest private sector bank in market capitalization and second largest overall in terms of assets. ICICI Bank has total assets of about USD 79 Billion (end-Mar 2007), a network of over 950 branches and offices, about 3500 ATMs, and 24 million customers (as of end July '07). ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank's equity shares are listed in India on stock exchanges at Kolkata and Vadodara, the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its ADRs are listed on the New York Stock Exchange (NYSE).

The World Bank, the Government of India and representatives of Indian industry
form ICICI Limited as a development finance institution to provide medium-term and long-term project financing to Indian businesses in 1955.

1994 ICICI establishes ICICI Banking Corporation as a banking subsidiary.ICICI

Banking Corporation is renamed as 'ICICI Bank Limited'

 1999 ICICI becomes the first Indian company and the first bank or financial institution
from non-Japan Asia to list on the NYSE.

2001 ICICI acquired Bank of Madura (est. 1943). Bank of Madura was a Chettiar
bank, and had acquired Chettinad Mercantile Bank (est. 1933) and Illanji Bank (established 1904) in the 1960s.

2002 The Boards of Directors of ICICI and ICICI Bank approve the merger of ICICI,
ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. After receiving all necessary regulatory approvals, ICICI integrates the group's financing and banking operations, both wholesale and retail, into a single entity. Also, ICICI Bank bought the Shimla and Darjeeling branches that Standard Chartered Bank had inherited when it acquired Grindlays Bank.

2002 ICICI establishes representative offices in NY and London. 2003 ICICI opens subsidiaries in Canada and the United Kingdom (UK), and in the
UK it establishes alliance with Lloyds TSB. It also opens an Offshore Banking Unit (OBU) in Singapore and representative offices in Dubai and Shanghai.

2004 ICICI opens a rep office in Bangladesh to tap the extensive trade between that
country, India and South Africa.

2005 ICICI acquires Investitsionno-Kreditny Bank (IKB), a Russia bank with about
US$4mn in assets, head office in Balabanovo in the Kaluga region, and with a branch in Moscow. ICICI Bank offers a high-interest (5.4% gross) internet savings account to UK customers. Also, ICICI establishes a branch in Dubai International Financial Centre and in Hong Kong.

2006 ICICI Bank UK opens a branch in Antwerp, in Belgium. ICICI opens

representative offices in Bangkok, Jakarta, and Kuala Lumpur.

2007 ICICI amalgamates Sangli Bank, which is headquartered in Sangli, in

Maharashtra State, and which has 158 branches in Maharashtra and another 31 in Karnataka State. ICICI also received permission from the government of Qatar to open a branch in Doha.

Business Overview:
ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659 crore at March 31, 2006 and profit after tax of Rs. 2,005 crore for the year ended March 31, 2006 (Rs. 1740 crore in

fiscal 2004). ICICI Bank has a network of about 570 branches and extension counters and over 2200 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and Bahrain and representative offices in the United States, China, United Arab Emirates, Bangladesh and South Africa. ICICI Bank's equity shares are listed in India on the Stock Exchange, Mumbai and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). As required by the stock exchanges, ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees. At April 4, 2006 ICICI Bank, with free float market capitalization* of about Rs. 308.00 billion (US$ 7.00 billion) ranked third amongst all the companies listed on the Indian stock exchanges. ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. In the 1990s, ICICI transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations, seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI, and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmadabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity. *Free float holding excludes all promoter holdings, strategic investments and cross holdings among public sector entities.

VISION
To be the preferred brand for total financial and banking solutions for both corporate and individuals

 ICICI Bank is Indias largest private sector bank with a legacy of over 50 years. We have a wide customer base and a leading global presence. Our Small & Medium Enterprises Group (SMEG) caters to the SME segment and offers banking solutions to sole proprietorship, partnership firms and companies. Our extensive trade related expertise, widespread local network and global alliances enable us to provide value-added service. SMEs trust us for information, assistance, and advice and customized banking solutions.

MISSION

To identify and support initiatives which are designed to improve the capacity of the poorest of the poor to participate in the larger economy. These initiatives must be cost effective, capable of large-scale replication and should have the potential for both near and long-term impact. To leverage technology in order to overcome constraints and enhance the effectiveness of various social initiatives.

COMPANY INFORMATION
BOARD OF DIRECTORS
Ms. Chanda Kochhar, Managing Director

 Sandeep Bakhshi , Deputy Managing Director Mr. Sridar Iyengar

Mr. Lakshmi N. Mittal Mr. Narendra Murkumbi Mr. Anupam Puri Mr. M.K. Sharma Mr. P.M. Sinha Prof. Marti G. Subramanian Mr. T.S. Vijayan Mr. V. Prem Watsa
Anup K Pujari Sonjoy Chatterjee

CHAIRMAN Mr. K.v kamath

MAJOR COMPITITORS
HSBC Holding Standard Charted State Bank Of India HDFC Bank

ICICI GROUP

ICICI Bank ICICI Home Finance

ICICI Infotech

ICICI Pru Life Insurance

Pru - ICICI AMC

ICICI Securities ICICI Lombard

ICICI Venture Capital

ICICI GROUP TODAY

STRATEGY OF THE ICICI BANK

1. IDENTIFY AND SUPPORT PROJECTS AND PROGRAMMES THAT ARE WITHIN ITS FOCUS AREAS AND,

Have a large- scale and measurable- impact; Are replicable in a cost effective manner; and Are time-bound.

2. IDENTIFY AND SUPPORT PILOT PROJECTS WITHIN ITS FOCUS AREAS.

3. CONTRIBUTE TOWARDS IMPROVING THE EFFICACY OF ASSISTED ORGANIZATIONS THROUGH:

capacity building; Providing access to research and information; and providing platforms for an effective exchange of ideas, thoughts and experiences.

SUBSIDIARIES AND OTHER GROUP COMPANYIES

ICICI BANK HAS 14 SUBSIDIARIES:
ICICI Securities limited. ICICI brokerage services limited ICICI securities holdings limited ICICI securities insurance limited ICICI prudential life insurance company limited ICICI Lombard general insurance company limited ICICI venture funds Management Company limited ICICI home finance company limited ICICI bank UK limited ICICI bank Canada ICICI international limited. ICICI trusteeship service limited ICICI investment Management Company limited

 ICICI distribution finance private limited

ICICI has the following other group companies with in the meaning of the Securities exchange board of India (SEBI) guidelines: Prudential ICICI assets Management Company limited Prudential ICICI Trust limited

In addition, ICICI is the sponsors or co sponsors of prudential ICICI mutual funds, the assets management company of which is prudential ICICI assets Management Company limited and the trustee of which is prudential ICICI trust ICICI securities fund, the assets management company of which is ICICI investment Management Company limited. None of its subsidiaries or other group companies has any shares listed on any stock exchange

OVERVIEW OF THE ICICI BANKS OPERATIONS

ICICI bank offer products and services in the area of commercial banking to corporate and retail customer, both domestic and international. ICICI bank also under tokens treasury operations and offer treasury elated products and services to its customers.

COMMERCIAL BANKING PRODUCTS AND SERVICES FOR RETAIL CUSSTOMER:

ICICI bank has capitalized on the growing retail opportunity in India and it India it has emerged as a market leader in credit on an incremental basis, with an outstanding retail finance portfolio of Rs 33424 crore at March 31, 2004. The key dimensions of its retail strategy are; Innovative products Parity pricing

 Customer convenience Wide distribution Strong process Customer focus Cross selling of the entire range of credit and investment products and banking services in the customer is a critical aspects of ICICI banks retail strategy .ICICI Bank offers a wide range of Varity of consumers credit products such as. Home loans Automobile loan Commercial vehicle loan Personal loans ICICI Bank commercial banking operation for retail customer also consists of raising deposits for retail customer it offer retail liability products in form of variety of unsecured redeemable bond.

GENERAL
Retail lending Activities Home Finance Automobiles Finance

COMMERICIAL BUSINESS
Personal loans Credit cards Dealer financing Retail Deposites In additions to conventional deposit products ICICI Bank offers a variety of SPECIAL VALUE ADDED PRODUCTS AND SERVICES. Such as special products for different categories of customer depending upon their age and occupation, which seek to cater to

their ICICI Bank, offer different liability products to various categories of customer depending on their age group such as;

PRODUCTS AND SERVICES OFFERED BY THE ICICI BANK

INVESTMENT SERVICES

Product s & Services

ASSET PRODUCTS

LIABILITIES PRODUCTS

LIABILITY PRODUCTS
Salary Account

 Saving Account Auto Invest Account Welcome kit Senior Citizen Services Fixed Deposits Term Deposits

ASSET PRODUCTS
Credit Cards Home Loans Personal loan Two wheeler loan

INVESTMENT SERVICES
ICICI Direct .Com Demat Account Mutual Fund Insurance

Loan products of ICICI Bank

Bank Home loans provide not just the most competitive interest rates & best level of service, but also products designed to cater to the specific needs of consumer. New products / New features in existing products are introduced based on customer feedback. Choose the ICICI Bank Home Loan that suits your needs

Best Deals on Home Loan for You

We, at ICICI Bank Home Loans, offer unbeatable benefits to ensure that you get the best deal without any hassles.

As one of the leading home loan provider, ICICI Bank understands how special building a new home is for you and our Home Loan help you lay the foundation for your dream home. ICICI offers you the most convenient home loan plans to suit your needs. With so many attractive features in every type of home loan we offer, creating the home you always wanted is no longer a distant dream. Some of our key benefits are: Guidance through out the process Home loan amounts suited to your needs Home Loan tenure upto 20 years Simplified Documentation Doorstep Service Attractive interest rates Sanction approval without having selected a property. Free Personal Accident Insurance (Terms & Conditions) Insurance options for your home loan at attractive premium

No matter what the requirement, we have an appropriate plan for you.Get the best deals, and finance your perfect home, only from ICICI Bank.

Home Loans
Home Loans are provided to individuals to own a residential property. ICICI Bank offers easy home loans for

First Purchase in ready construction Under construction property Purchase in re-sale Self construction - extension of existing living space

The following are the features of ICICI Bank Home Loans

Home loan amount can be chosen to suit specific needs. One can avail of a loan up to 80% of Cost of Property.

Conveniently pay off the loan over a period of up to 25 years. It can be availed at the Floating rate of Interest or at the fixed rate of Interest or at the combination of both Fixed & Floating rates. Faster repayment as principal repayment in on monthly rest.

Eligibility Norms for Home Loans.

Home Loans can be availed by Resident Indian whether salaried or Self-Employed and also by Non- Resident Indian who are Salaried. For resident Indians the following are the eligibility norms You must be at least 21 years of age when the loan is sanctioned. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier. You must be employed or self-employed with a regular source of income.

TYPES OF ICICI HOME LOAN:

1. Land Loans:
Land loans give an opportunity for individual customer to purchase a residential plot of land to do self- construction. Thus, customer can invest now in a plot of land & build in future. The Land loan can be financed only within municipal limits of HUB locations or in case of direct allotment outside municipal limits by DA. Land Loan can be availed by Resident Indian whether Salaried or SelfEmployed and also by Non- Resident Indian.

2.

Home Improvement Loans:

Home Improvement Loan is offered to facilitate improvement of a self-owned dwelling unit to existing or new customer. HIL considers a range of facilities internal or external to the structure without increase in the living pace. Thus, a customer can add or improve facilities to his dwelling unit with a loan at Home Equity Loan rate of interest Home Improvement Loan can be availed by Resident Indian whether salaried or SelfEmployed.

3.

Office Premises Loans:

Office Premises Loan can be used for purchase, construction, extension & also for
improvement (at the time of acquisition of office premises. It creates an opportunity to extend loans to self-employed individuals to house their profession or business giving a permanent address for generating steady flow of income. The product can also include the estimate of renovation at the time of purchase of the property. This loan is especially meant for self-employed professionals like Doctors, Architects etc.

Home Loans can be availed by Resident Indian who are Self-Employed and also by NonResident Indian who are Salaried.

EMI under Construction:

EMI under Construction is offered for structuring a home loan to enable individuals to commence his EMI in a partly disbursed under construction project. Commencement of EMI ensures re-payment towards principal amount leading to savings in interest and faster repayment of the loan. The EMI paid is as per the sanctioned loan amount and remains constant during the tenure of the loan. The tenure of the loan keeps moving up with additional amount being disbursed. EMI under Construction can be availed by Resident Indian whether Salaried or SelfEmployed and also by Non- Resident Indian.

Balance Transfer:
Balance Transfer is a facility offering the customer a choice to transfer the outstanding balance of the loan availed for better terms & conditions. Balance Transfer helps to move from higher rate of interest to lower rate of interest or increase in loan component

as Top up. BT is possible only from loans taken from HFCs approved by NHB for refinance, Banks or employer Loans taken from Central or State Government.

4.

Top Up Loan:

Top up Loan can be availed time and again for various personal requirement based on value of the property. It offers the customer additional funds against the security of the same property. To avail Top Up loan, the vintage of at least six months is required for the loan availed. The basic eligibility emerges with good repayment track record. The end use letter is essential to be collected. The End use of Top Up Loans can be

Furnishing of home Consumer durable Childs education Daughters marriage Family holiday Vehicle

Any other personal requirement of the borrower provided it is not speculative or illegal in nature. This product is applicable to fully disbursed cases with no post- disbursement document pending. This product is priced more than base home loan rates but lower than
any personal loan rates. Top Up Loan can be availed by Resident Indian whether Salaried or Self-Employed.

5.

Loan on Phone:

Loan On Phone is a pre-sanctioned loan. Its is based on the existing relationship of the customer with ICICI Bank. The biggest advantage is that the customer can get the loan with minimum documentation. Good banking transactions and repayment records becomes a strength for availing loans in future. Loan on Phone can be availed by Resident Indian whether salaried or Self-Employed

6.

Home Equity Loan:

Loan against property gives the owner of residential or commercial premises to leverage on the value of the property. It offers the ability to unlock funds gives the advantage of looking at the asset as a source of security bringing liquidity and retaining ownership. In case of HEL the property should be self occupied by one of income considered applicants. The security of the property ensures competitive rate of interest. The interest component of the EMI paid by SEP / SENP can be booked as expenses in their P & L Home Equity Loans are provided for many personal requirements of the customer viz.

Marriage Child Education Business Purchase of Property (Where mortgage is not possible) Improvement of Property Medical Treatment

Home Equity Loans can be availed by Resident Indian who are Self-Employed and also by Non- Resident Indian who are Salaried.

Property Overdraft:
The overdraft facility from ICICI Bank Home Loans allows you to borrow money against your self-occupied property. The overdraft facility comes with a multi-city cheque book and phone banking facility. The customer is charged interest only for the amount that he withdraws from the account. Whenever he deposits funds into the account, they go towards reducing the outstanding balance in the account. It offers the following benefits:

Generating capital against property (R) or ( C) for business or personal use Convenience of Pre - Sanctioned limit and draw as you need Pay interest on the amount drawn and for days utilized Convenience of depositing & withdrawing like any Current Account

Benefit of Cheque Book & Phone banking Fast Processing and door-step service Multi-city cheque book and phone banking facility

Lease Rental Discounting:

Lease Rental Discounting helps to raise funds against the future expected rentals of self owned commercial property. The property should be occupied by the Lessee. Similar to Home Equity Loans, LRD can be provided for any personal requirements of the customer viz.

Marriage Child Education Business Purchase of Property (Where mortgage is not possible) Improvement of Property Medical Treatment

Factors affecting your Loan Amount:

With ICICI Bank Home Loans, you can get a home loan suited to your needs. The home loan amount depends on your repayment capability and is restricted to a maximum of 80% of the cost of the property or the cost of construction as applicable. A number of factors are taken into account when assessing your repayment capacity. Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history. However, there are ways by which you can enhance your eligibility. If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. In case of any co-owners they must necessarily be co-applicants. The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each

loan. Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included.

Repayment Terms of your Home Loan

In our endeavor to make taking a home loan an easy process for you, we at ICICI Bank Home Loans address all your queries about the repayment terms of Home Loans with respect to tenure, home loan EMIs, methods of home loans EMI payments and pre-EMI interest.

What is the repayment tenure?

Repayment tenure is the tenure for the number of year for which the loan gets sanctioned. We offer you a wide range of options for the tenure of the loan. You can take a home loan for up to 25 years provided you do not reach the age of 65 years or retire within that period.

How is the loan repaid?

All loan repayments are done via equated monthly installments (EMI).

What is an EMI?
An EMI refers to an equated monthly installment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.

When does the repayment start?

EMI payments start from the month following the month in which the full disbursement has been made

How is the EMI paid?

The EMI is to be paid every month through post-dated cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36

PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, we provide the flexibility of dating the cheques for the 10th of the month.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 - 7 working days.

What is pre-EMI interest?

In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

When do I pay PEMIs?

The first PEMI is payable by cheque by the end of the month in which the disbursement is made and each subsequent PEMI at the end of every month till the commencement of EMI. In case you have an ICICI Savings account you can also go in for the facility of Auto Debit.

Application Process of your Home Loan

Your search for the perfect home loan ends here at ICICI Bank Home Loans, even before your have found the perfect property. The moment you decide to buy a home, you can put in your application for a home loan. Yes, you can apply for a home loan even before you have selected the property. The property need not even be in the same city where you are residing. The only condition being that ICICI Bank has Home Loans operations in both the cities. Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval of your home loan.

However, we are always ready to assist our customers in the event of legitimate problems. And, we might reconsider this if we find that there are satisfactory reasons for the delay. And, neither would we charge you extra for this delay. If it is refinancing you are interested in, it is possible within 6 months from the date of purchase of property.

Changes in Floating Reference Rate (FRR)

Interest rate on ICICI Bank Home Loans is linked to the ICICI Bank Floating Reference Rate (FRR/PLR). ICICI Bank FRR has been reduced by 50 basis points (i.e. 0.50%) with effect from April 22, 2011. Thus the FRR has been reduced from 13.75% to 13.25%. ICICI Bank PLR has also been reduced by 50 basis points (i.e. 0.50%) with effect from April 22, 2011. Thus the PLR has changed from15.75% to 15.25%. Accordingly, the Home Loan floating rate of interest has been reduced by 0.5% (50 basis points).

Interest paid on the home loan:

As per Sec 24(b) of the Income Tax Act, 1961 a deduction up to Rs. 150,000 towards the total interest payable on the home loan towards purchase / construction of house property can be claimed while computing the income from house property. (The deduction stands reduced to Rs 30,000 in case of loans taken prior to March 1, 1999). The interest payable for the pre-acquisition or pre-construction period would be deductible in five equal annual installments commencing from the year in which the house has been acquired or constructed. This deduction is allowed only for self occupied property. The interest towards home loan taken for purchase, construction, repairs, renewal or reconstruction of house property is eligible for deduction under section 24(b).

Principal repayment of the home loan:

As per Section 80C r of the Income Tax Act, 1961 the principal repayment up to Rs. 100,000 on your home loan for purchase or construction of a residential house property will be allowed as a deduction from the gross total income subject to fulfillment of prescribed conditions. Let us consider a hypothetical example. Youre taxable Income: Rs 5, 50,000 Principal repayment for the same year: Rs 1, 10,000 and Interest payable for the year: Rs 1, 60,000 Total Deductions allowed: Rs 2,50,000 (Rs 1,50,000 towards interest payable & Rs 1,00,000 for principal repayment of the loan) Thus, your taxable income will reduce to Rs 3, 00,000 (Rs 5, 50,000 - Rs 2, 50,000). ICICI Bank home loan does a complete Legal and Technical verification of the property that you intend to buy. This ensures the safety of the purchase for the customer

Legal Verification
The customer would need to submit the original property documents as per the indicative list given by ICICI Bank along with the letter from the registrar for pending documents if any and NOC from the landowner. The copies of the same are forwarded to an empanelled lawyer who has to peruse the document, provide a legal opinion and a title clearance certificate to ensure a clear and marketable legal title.

Technical Appraisal
This appraisal serves the following purpose

It confirms that the property really exists It is an assess of the available infrastructure It checks the quality and speed of construction

For resale cases, it confirms the external & internal condition of the building and flat/property respectively.

Personal Loans
Thinking of renovating your house? Yearning to buy a new Laptop? Need financial assistance with marriage related expenses or your child higher education? An ICICI Bank Personal Loan is your One-stop-shop for all your financial needs to fulfill any of your desires. Key Benefits of ICICI Bank Personal Loan: Loan up to 15 lacs No security/guarantor required Faster Processing Minimum Documentation Attractive Interest Rates 12-60 Months repayment options

ICICI Personal Loans is provided only to an existing ICICI Bank customer:

With the "Loan on Phone" facility, it is possible to secure a loan even without having to visit your bank branch. If you have been an ICICI Bank customer for the past 9 months, you might have a pre-approved loan offer waiting for you. All you need to do is: Login to icicibank.com using your user ID and password and know your offer

Speak to our phone banking officers and quote your relationship number. For phone banking numbers.

Walk into any ICICI Bank branch

Eligibility Terms for your Personal Loan

You can avail of an ICICI Bank Personal Loan if you are an existing ICICI Bank customer and if you meet the following criteria:

Criteria Age Eligibility

Salaried 25 yrs. - 58 yrs. Employees of Public Ltd. companies, Private Ltd. companies, Government companies or MNCs

Net Salary Net annual income - Rs. 1,44,000 p.a

Years in current 1 Year job / profession Years in current residence 1 Year

Documents required for your Personal Loan:

ICICI Bank provides you with personal finance to fulfill any of your desires with minimum documentation: Documents ( Pre Sanction) Latest 3 months Bank Statement (where salary/income is credited) 3 Latest salary slips Proof of Continuity current job (Form 16 / Company appointment letter ) Proof of Identity (any one)Passport / Driving License / Voters ID / PAN card / Photo Credit Card / Employee ID card Proof of Residence (any one) Ration Card / Utility bill / LIC Policy Receipt Proof of Qualification Highest Degree (for Professionals / Govt employees) Salaried Yes Yes Yes Yes Yes Yes

Service Charges for your Personal Loan

Enclosed find the service charges for an ICICI Bank Personal Loan

 Prepayment of the loan is possible after 180 days of availing the loan. Foreclosure charges as applicable would be levied on the outstanding loan. Part pre-payment is not allowed. No other fees or commitment charges are levied.

Description of Charges Loan Processing Charges / Origination Charges

Personal Loans 2% or 3 % depending on the location of loan amount

Lower of the two amounts given below. 1. 5% of principal Prepayment Charges outstanding or 2. Interest outstanding for unexpired period of the loan. Charges for late payment Cheque Swap Charges Cheque bounce charges 2% per month Rs. 500/- per transaction Rs. 200/- per bounce

Statement of Account Charges Rs. 200/- per statement Foreclosure Statement Charges Duplicate NOC Charges Duplicate Repayment / Amortization Schedule Charges Rs. 200/- per schedule Rs. 100/- per statement Rs. 500/- per NOC

Notes:

1. Service Tax and other govt. taxes, levies, etc. applicable as per prevailing rate will be charged over and above these charges at the discretion of ICICI Bank. 2. The charges or fees given in above table are subject to change and the one recorded in agreement will be binding over this site.

Application Process
You have the option of applying online for a personal loan. An ICICI Bank Ltd. representative will contact you to service your loan requirements. On receiving the completed application form with the requisite documents, we shall process your loan within 3 working days. Please do not send any payment via cash/ cheque with your application. Kindly ensure that all Post Dated Cheques are Drawn in favor of "ICICI Bank Limited", duly filled in all respects and endorsed "Account Payee only".

ATTRACTION OF THE ICICI BANK

CONVENIENCE BANKING
8 TO 8 BANKING AT BRANCHES Anywhere banking Fast and efficient account opening process

Large AT networking

ADVANTAGE EMPLOYEES
Welcome kit

 Value added saving Free anywhere banking Debit card Free internet banking Online fund transfer Mobile banking Phone baking Free utility Bill payments Overdraft facility SMS alert Free bank statement Access to non ICICI Bank ATM

UNIVERSAL BANKING
Loan and credit card Investment and services Employee reimbursement account

PROFILE:
Spreading its arms around the world, the SBIs 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. The Domestic wing provides services like merchant banking, shipping finance and project export finance. The Foreign Offices wing offers the entire range of international trade and industrial finance products, while the Kolkatta-based Foreign Department undertakes treasury and currency operations. The International Services division renders specialized services like correspondent banking, global link services and country and bank risk exposure monitoring. Being

Indias largest and most trusted commercial bank, the SBI offers you a network of relationships unmatched in strength and span by any other Indian financial entity. The bank has a network of 66 offices/branches in 29 countries spanning all time zones. The SBIs international presence is supplemented by a group of Overseas and NRI branches in India and correspondent links with over 522 leading banks of the world. SBIs offshore joint ventures and subsidiaries enhance its global stature. The bank has carved a niche for itself in Euroland with branches strategically located in Paris, Frankfurt and Antwerp. Indian banks and corporate are able to avail singlewindow Euro services from SBI Frankfurt. These strengths are reinforced by a dedicated and highly skilled team of professionals deployed by the bank in each specific segment. The Bank is actively involved since
1973 in non-profit activity called Community Services Banking. All our branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. Our business is more than banking because we touch the lives of people anywhere in many ways.

INVESTOR RELATIONS:
State Bank of India, the countrys largest commercial Bank in terms of profits, assets, deposits, branches and employees, welcomes you to its Investors Relations Section. SBI, with its heritage dating back to the year 1806, strives to continuously provide latest and upto date information on its financial performance. It is our endeavor to walk on the path of transparency and allow complete access to all the stakeholders enabling total awareness about the Bank. The Bank communicates with the stakeholders through a variety of channels, such as through e-mail, website, conference call, one-on-one meeting, analysts meet and attendance at Investor Conference throughout the world. Please find below Banks financial results, analysis of performance and other highlights which will be of interest to Investors, Fund Managers and Analysts. SBI has always been fundamentally strong in its core business which is mirrored in its results year after year.

EVOLUTION OF SBI:

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were government nominees, invariably civil servants, one of whom was elected as the president of the board. Business The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities,

including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

History of state bank of India:

The origin of the State Bank of India goes back to the first decade of the nineteenth century with the establishment of the Bank of Calcutta in Calcutta on 2 June 1806. Three years later the bank received its charter and was re-designed as the Bank of Bengal (2 January 1809). A unique institution, it was the first joint-stock bank of British India sponsored by the Government of Bengal. The Bank of Bombay (15 April 1840) and the Bank of Madras (1 July 1843) followed the Bank of Bengal. These three banks remained at the apex of modern banking in India till their amalgamation as the Imperial Bank of India on 27 January 1921. Primarily Anglo-Indian creations, the three presidency banks came into existence either as a result of the compulsions of imperial finance or by the felt needs of local European commerce and were not imposed from outside in an arbitrary manner to modernise India's economy. Their evolution was, however, shaped by ideas culled from similar developments in Europe and England, and was influenced by changes occurring in the structure of both the local trading environment and those in the relations of the Indian economy to the economy of Europe and the global economic framework.

Bank of Bengal H.O. Establishment:

The establishment of the Bank of Bengal marked the advent of limited liability, joint-stock banking in India. So was the associated innovation in banking, viz. the decision to allow the Bank of Bengal to issue notes, which would be accepted for payment of public revenues within a restricted geographical area. This right of note issue was very valuable not only for the Bank of Bengal but also its two siblings, the Banks of Bombay and Madras. It meant an accretion to the capital of the banks, a capital on which the proprietors did not have to pay any interest. The concept of deposit banking was also an innovation because the practice of accepting money for safekeeping (and in some cases, even investment on behalf of the clients) by the indigenous bankers had not spread as a general habit in most parts of India. But, for a long time, and especially up to the time that the three presidency banks had a right of note issue, bank notes and government balances made up the bulk of the investible resources of the banks. The three banks were governed by royal charters, which were revised from time to time. Each charter provided for a share capital, four-fifth of which were privately subscribed and the rest owned by the provincial government. The members of the board of directors, which managed the affairs of each bank, were mostly proprietary directors representing the large European managing agency houses in India. The rest were

government nominees, invariably civil servants, one of whom was elected as the president of the board.

Business:
The business of the banks was initially confined to discounting of bills of exchange or other negotiable private securities, keeping cash accounts and receiving deposits and issuing and circulating cash notes. Loans were restricted to Rs.one lakh and the period of accommodation confined to three months only. The security for such loans was public securities, commonly called Company's Paper, bullion, treasure, plate, jewels, or goods 'not of a perishable nature' and no interest could be charged beyond a rate of twelve per cent. Loans against goods like opium, indigo, salt woollens, cotton, cotton piece goods, mule twist and silk goods were also granted but such finance by way of cash credits gained momentum only from the third decade of the nineteenth century. All commodities, including tea, sugar and jute, which began to be financed later, were either pledged or hypothecated to the bank. Demand promissory notes were signed by the borrower in favor of the guarantor, which was in turn endorsed to the bank. Lending against shares of the banks or on the mortgage of houses, land or other real property was, however, forbidden. Indians were the principal borrowers against deposit of Company's paper, while the business of discounts on private as well as salary bills was almost the exclusive monopoly of individuals Europeans and their partnership firms. But the main function of the three banks, as far as the government was concerned, was to help the latter raise loans from time to time and also provide a degree of stability to the prices of government securities.

Major change in the conditions:

A major change in the conditions of operation of the Banks of Bengal, Bombay and Madras occurred after 1860. With the passing of the Paper Currency Act of 1861, the right of note issue of the presidency banks was abolished and the Government of India assumed from 1 March 1862 the sole power of issuing paper currency within British India. The task of management and circulation of the new currency notes was conferred

on the presidency banks and the Government undertook to transfer the Treasury balances to the banks at places where the banks would open branches. None of the three banks had till then any branches (except the sole attempt and that too a short-lived one by the Bank of Bengal at Mirzapore in 1839) although the charters had given them such authority. But as soon as the three presidency bands were assured of the free use of government Treasury balances at places where they would open branches, they embarked on branch expansion at a rapid pace. By 1876, the branches, agencies and sub agencies of the three presidency banks covered most of the major parts and many of the inland trade centres in India. While the Bank of Bengal had eighteen branches including its head office, seasonal branches and sub agencies, the Banks of Bombay and Madras had fifteen each.

Presidency Banks Act:

The presidency Banks Act, which came into operation on 1 May 1876, brought the three presidency banks under a common statute with similar restrictions on business. The proprietary connection of the Government was, however, terminated, though the banks continued to hold charge of the public debt offices in the three presidency towns, and the custody of a part of the government balances. The Act also stipulated the creation of Reserve Treasuries at Calcutta, Bombay and Madras into which sums above the specified minimum balances promised to the presidency banks at only their head offices were to be lodged. The Government could lend to the presidency banks from such Reserve Treasuries but the latter could look upon them more as a favor than as a right. The decision of the Government to keep the surplus balances in Reserve Treasuries outside the normal control of the presidency banks and the connected decision not to guarantee minimum government balances at new places where branches were to be opened effectively checked the growth of new branches after 1876. The pace of expansion witnessed in the previous decade fell sharply although, in the case of the Bank of Madras, it continued on a modest scale as the profits of that bank were mainly derived from trade dispersed among a number of port towns and inland centers of the presidency.

India witnessed rapid commercialization in the last quarter of the nineteenth century as its railway network expanded to cover all the major regions of the country. New irrigation networks in Madras, Punjab and Sind accelerated the process of conversion of subsistence crops into cash crops, a portion of which found its way into the foreign markets. Tea and coffee plantations transformed large areas of the eastern Terais, the hills of Assam and the Nilgiris into regions of estate agriculture par excellence. All these resulted in the expansion of India's international trade more than six-fold. The three presidency banks were both beneficiaries and promoters of this commercialization process as they became involved in the financing of practically every trading, manufacturing and mining activity in the sub-continent. While the Banks of Bengal and Bombay were engaged in the financing of large modern manufacturing industries, the Bank of Madras went into the financing of large modern manufacturing industries; the Bank of Madras went into the financing of small-scale industries in a way which had no parallel elsewhere. But the three banks were rigorously excluded from any business involving foreign exchange. Not only was such business considered risky for these banks, which held government deposits, it was also feared that these banks enjoying government patronage would offer unfair competition to the exchange banks which had by then arrived in India. This exclusion continued till the creation of the Reserve Bank of India in 1935.

First Five Year Plan:

In 1951, when the First Five Year Plan was launched, the development of rural India was given the highest priority. The commercial banks of the country including the Imperial Bank of India had till then confined their operations to the urban sector and were not equipped to respond to the emergent needs of economic regeneration of the rural areas. In order, therefore, to serve the economy in general and the rural sector in particular, the All India Rural Credit Survey Committee recommended the creation of a state-partnered and state-sponsored bank by taking over the Imperial Bank of India, and integrating with it, the former state-owned or state-associate banks. An act was accordingly passed in Parliament in May 1955 and the State Bank of India was constituted on 1 July 1955. More than a quarter of the resources of the Indian banking system thus passed under the direct control of the State. Later, the State Bank of India (Subsidiary Banks) Act was passed in 1959, enabling the State Bank of India to take over eight former Stateassociated banks as its subsidiaries (later named Associates).

The State Bank of India was thus born with a new sense of social purpose aided by the 480 offices comprising branches, sub offices and three Local Head Offices inherited from the Imperial Bank. The concept of banking as mere repositories of the community's savings and lenders to creditworthy parties was soon to give way to the concept of purposeful banking subserving the growing and diversified financial needs of planned economic development. The State Bank of India was destined to act as the pacesetter in this respect and lead the Indian banking system into the exciting field of national development.

RBI survey lowers GDP growth forecast to 5.7%

Personal loans grew at just 8.5 per cent in the last one year compared with 13 per cent growth registered in the previous year.

Our Bureau Mumbai, April 20 The median forecast of real GDP growth, according to the Reserve Bank of Indias latest professional forecasters survey, for 2011-2012 has been revised downwards to 5.7 per cent from 6 per cent. The central bank, in its report on the Macroeconomic and Monetary Developments in 2008-2011, said that the various surveys of economic activity point towards prevalence of less-than-optimistic sentiment for the outlook of the economy in the coming months. Between the sixth round survey conducted in December 2008 and seventh round survey in March 2011, median forecast of real GDP growth for 2008-09 was revised downwards to 6.6 per cent from 6.8 per cent. According to the report, for the April-June 2011 quarter, the overall net sentiment for all industries, except textiles, is positive. Moderate growth is expected across the various companies in the first quarter. However, the expectations are less optimistic for smaller companies compared with their bigger counterparts.

Inflation:
On the inflation front, the report underscored the fact that unlike the wholesale price index based inflation, consumer price index based inflation in India remains high, with recent evidence of very slight moderation. The transmission process of lower inflation at the wholesale level to inflation at the retail level has emerged as an important issue in the conduct of RBIs monetary policy, the report said. The WPI-based inflation eased to 0.18 per cent for the week ended April 4 from 0.26 per cent for the previous week. Various measures of consumer price inflation, though started declining, still remained high in the range of 9.6-10.8 per cent during January/ February 2011. The higher level of consumer price inflation (CPI) as compared with WPI inflation , in recent months, could be attributed to higher prices of food articles, which have higher weight in CPI. Scheduled commercial banks (SCBs) investment in statutory liquidity ratio (SLR) securities as a per cent of their net demand and time liabilities (NDTL) increased at endMarch 2011 to 28.1 per cent, from 27.8 per cent a year ago. However, adjusted for Liquidity Adjustment Facility collateral securities on an outstanding basis, SCBs holding of SLR securities amounted to Rs 11,10,156 crore or 26.7 per cent of NDTL at end-March 2011 implying an excess of Rs 1,13,817 crore or 2.7 per cent of NDTL over the prescribed SLR of 24 per cent of NDTL. The lower expansion in credit relative to the expansion in deposits resulted in a decline in the incremental credit-deposit ratio (y-o-y) of SCBs to 64.4 per cent at March-end 2011 from 73.6 per cent a year ago.

Personal loans:
Our Chennai Bureau reports: The latest confirmation of a slowdown in the personal loans segment comes from the Statement on Macroeconomic and Monetary Developments put out by the Reserve Bank of India. Personal loans (inclusive of housing, credit cards, educational loans, consumer durable loans etc.) at Rs 5, 55,392

crore account for about 22 per cent of the total loans outstanding as of end February 2011. Personal loans grew at just 8.5 per cent in the last one year compared with 13 per cent growth registered in the previous year. Loans for housing, which constitute about half the personal loan segment, were at Rs 272,376 crore. They grew at just 7.5 per cent last year compared with 13 per cent in the previous year (2007-08) and 26 per cent in the year 2006-07. Credit card outstanding also grew at a mere 8 per cent compared to about 51 per cent in 2007-08 and 46 per cent in 2006-07. Despite oft-repeated complaints that the real estate sector was credit starved, statistics provided by the RBI show that real-estate loans grew 61.4 per cent last year to Rs 9,0765 crore compared with a 27 per cent growth in 2007-08.

Similarly, loans to NBFCs also grew by 42 per cent during the last year to Rs 90,521 crore.

LOAN PRODUCT OF STATE BANK OF INDIA State Bank of India Home Loan: Introduction:
There are number of finance companies offering cheap home loans. State Bank Of India is one such government bank, which understands your needs and helps you to purchase the homes of your dreams. A lot of hard work goes into building a home, owning it and then decorating it. State Bank Of India understands your efforts and for that matter they have designed their Home Loan schemes in a way to make the process hassle free and full transparency has been offered. The Unique Features of their Home Loan Schemes are no cap on maximum loan amount for purchase or construction of house or flat. They give an option to club the income of your partner and children to compute eligible loan amount. You can repay the loan up to 70 years of age. The home loan schemes also have free personal accident insurance cover. They charge no administration fee or application fee. Provision for downward refixation of EMI in respect of floating rate

borrowers who avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision of interest rate by 1% or more. They provide Home Loans for various purposes such as: for the purchase or construction of a new house or flat, purchase of an already built house or flat and if you want to buy a plot of land for construction of house. Finance for home is also provided if you want to undertake extension, repair, renovation, and alteration of an existing house or flat, if you wish to buy furniture, furnishings and other commodities for your home. You are Eligible for taking Home Loan if you have a minimum age of 21 years as on the date on which your loan is sanctioned. They charge a processing fee that comes to 0.50 % of loan amount including service tax. Their Interest Rate amount is of two types- Floating Interest Rate and Fixed Interest Rate. Floating Interest Rate is linked to State Bank Advance Rate- SBAR. The interest rate under Floating Interest Rate is 10.75% and on Fixed Interest Rate it is 9.50% upto first five years then 9.75% above five years and upto ten years. The most important aspect is that you need to submit duly filled documents as mentioned in their schemes. You need to complete application form, passport size photograph, a proof of identity, proof of Residence, proof of business address and all documents relating to sale deed or agreement deed, tax paid receipt, statement of bank account etc. State Bank of India has four types of Home Loan schemes under which they provide finance: 'SBI-Flexi' Home Loans 'SBI-Maxgain' Home Loans 'SBI-Realty' Home Loans 'SBI-Freedom' Home Loans

they have a package for exclusive benefits like complimentary international ATM- Debit card. They provide complimentary SBI Classic and International Credit Card with waiver of joining and first year's fees. State Bank Of India provides an option for E- Banking. There is a confessional package for car home loan borrowers. SBI has been awarded The Most Preferred Home Loan Provider by AWAAZ Consumer

Awards. SBI home loans give concession on interest rates on GREEN HOMES under its environment protection program. SBI has different options for loan borrowers such as SBI Flexi home loans provides borrowers a one time irrevocable option to choose one of the three combinations of fixed and floating interest rates and also to choose the order in which the fixed and floating rate will be availed. The other is SBI- Maxgain home loans - earn optimal yield on savings and minimize interest burden on home loans, with no extra cost. SBI Realty Home loans - purchase a plot of land for house construction. SBI Freedom Home loans who want to invest in a property without mortgaging the same. SBI offers SBI Optima additional home loans and SBI Homeline special personal loans for existing home loan borrowers who have a repayment record of 3 years, etc.

SBI Home Loan: Features:

Some of the unique features of SBI home loans are:

Provision for on the spot "In principle" approval. Loan sanctioned within 6 days of submission of required documents. Option to avail Home Loan as a Term Loan or as an Overdraft facility to save on interest and maximise gains (see SBI MaxGain in the following sections) Option to club income of your spouse and children to compute eligible loan amount Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount Provision to finance cost of furnishing and consumer durables as part of project cost Repayment permitted upto 70 years of age Free personal accident insurance cover Optional Group Insurance from SBI Life at concessional premium (Upfront premium financed as part of project cost) Interest calculated on daily reducing balance basis, and starts from the date of disbursement. Plus schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies.

Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat Option to avail loan at the place of employment or at the place of construction

Eligibility:
SBI home loans are available for purchase or construction of house or flat; purchase of a plot of land for construction of house; extension, repair, renovation, alteration of an existing house or flat; purchase of furnishings and consumer durables as a part of the project cost, takeover of an existing loan from other banks or housing finance companies.

Age:
Minimum age of applicant is 18 years as on the date of sanction and maximum age limit for a home loan borrower is 70 years, i.e. the age by which the loan should be fully repaid.

Loan Amount:
Applicants aged between 18 and 45 years, can get 60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI) and for applicants aged over 45 years of age; it is 48 times NMI or 4 times NAI. This will be subject to a maximum EMI/NMI ratio as under:

Net Annual Income Upto Rs.2 lacs Above Rs.2 lac to Rs. 5 lacs Above Rs. 5 lacs

EMI/NMI Ratio 40% 50% 55%

Margin:
The SBI home loan borrower should pay 20% of the cost of home for loans up to Rs 1 crore and 25% for loans above Rs 1 crore.

Repayment Period:
The maximum repayment period for home loan is 20 years for applicants below 45 years and 15 years for applicant above 45 years.

Documents Required:
1. Completed application form 2. Passport size photograph 3. Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License 4. Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID 5. Proof of business address in respect of businessmen/ industrialists 6. Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer) 7. Copy of approved plan and approval from the Local Body 8. Statement of Bank Account/ Pass Book for last 6 months Highlights: Interest Rate Loan Amount Tenure Time to Process Loan Interest Rates Tenure 20 - 25 Yrs. Interest Type Floating Interest Rate 11 % Offer 11.25% Min. - Rs 100000 Max. - Rs 20000000 Min. - 5 Yrs. Max. - 20 Yrs. 7 days

15 - 20 Yrs. 10 - 15 Yrs. 5 - 10 Yrs. 1 - 5 Yrs. 5 - 10 Yrs. 1 - 5 Yrs.

Floating Floating Floating Floating Fixed Fixed

11 % 10.75 % 10.75 % 10.5 % 12.75 % 12.75 %

Security:
Equitable mortgage of the property Other tangible security of adequate value like NSCs, Life Insurance policies etc., if the property cannot be mortgaged

Maximum Repayment Period:

For applicants upto 45 years of age: 25 years For applicants over 45 years of age: 15 years

Moratorium:
Up to 18 months from the date of disbursement of first installment or 2 months after final disbursement in respect of loans for construction of new house/ flat (moratorium period will be included in the maximum repayment period)

Disbursement:
In lump sum direct in favour of the builder/ seller in respect of outright purchase In stages depending upon the actual progress of work in respect of construction of house/ flat etc.

Documents:
Completed application form Passport size photograph Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/

Passport/ Voters ID Proof of business address in respect of businessmen/ industrialists Sale Deed, Agreement of Sale, Letter of Allotment, Non encumbrance certificate, Land/ Building Tax paid receipt etc. (as applicable and subject to satisfaction report from our empanelled lawyer) Copy of approved plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months

SBI-Flexi Home Loans:

A customized product designed to enable borrowers to hedge their Home Loan against unfavorable movement in interest rates. The product gives you a one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates and also to choose the order in which the fixed and floating rate will be availed. Minimum Loan Amount: Rs.5 lacs (Other terms and conditions as applicable to regular Home Loans)

SBI-Maxgain

Home Loans:

An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues. Minimum Loan Amount: Rs.5 lacs (Other terms and conditions as applicable to regular Home Loans)

SBI-Realty

Home Loans:

A unique product if you are on the look out for a loan to purchase a plot of land for house construction. The loan is available for a maximum amount of Rs.20 lacs* and with a

comfortable repayment period of upto 15 years. You are also eligible to avail another Housing Loan for construction of house on the plot financed above with the benefit of running both the loans concurrently. (House construction should commence within 2 years from the date of a ailment of SBIRealty Housing Loan) (Other terms and conditions as applicable to regular Home Loans) (* relaxation considered on case to case basis)

SBI-Freedom Home Loans:

A revolutionary product designed for customers who are on the look out for a source of finance for a property they want to invest in without mortgaging the same. All you have to do is pledge any financial security that you have and you will get a Home Loan for your dream home. A must-take for those who do not want to pay stamp duty for mortgage of their property or go through the hassles of creation of mortgage. You also have an option to take the loan by way of mortgage of the property and pledge financial securities in lieu of margin money. Repayment is highly customized, giving you the option to repay through regular EMIs or through maturity proceeds of the securities pledged. (Other terms and conditions as applicable to regular Home Loans)

SBI-OPTIMA ADDITIONAL HOME LOANS:

Innovative and value added products extended to existing Home loan borrowers with a satisfactory repayment record of 3 years and whose loan is Standard Asset, with a view to reinforce the customer loyalty and to maintain long term relationship with the

borrowers. In case of take-over of Home Loans from other Banks/HFCs, the borrower should have fulfilled the above conditions with the present Bank/HFC. Purpose: to meet expenditure towards major repair, SBI-Optima Additional Home Loans SBI-Homeline Special Personal Loans renovation, addition to their house/flat, purchase of furniture, fixtures and consumer durables General purpose loan to meet expenditure to meet foreseen/unforeseen contingencies

Eligibility: 18 times NMI (for salaried borrowers)/ SBI-Optima Additional Home Loans 1 times NAI ( for others) or (i)25% of the original project cost of house/flat (ii) 85% of the cost of repairs etc. or (iii) gap between 85% of the current market price of flat/house and actual outstanding loan dues , Which ever is lower (EMI/NMI ratio of all loans should not exceed 60%) SBI-Homeline Special Personal Loans 18 times NMI (for salaried borrowers)/ 1 times NAI (for others)

Interest Rates/processing fee:

As applicable to Home Loans SBI-Optima Additional Home Loans SBI-Homeline Special Personal Loans Interest rates 50 bps above rates applicable to the repayment tenure (floating rates only) Processing fee : 0.50% of the loan amount (including service tax)

Other Salient Features:

Inbuilt provision for availment of the loans on the expiry of each bloc of 5 years, the first bloc commencing on the expiry of 5 years from the date of sanction of original Home Loan.

Original Home Loan and all SBI-Optima Home Loans/SBI-Home Line Personal Loans can run concurrently Comfortable repayment obligations Tenure of the loans equal to the residual maturity of the original Home Loans -

PRASHASAN PLUS, TEACHER PLUS AND OIL PLUS: The above plus schemes offer concessional interest rate of 0.25% below the applicable interest rates on Home Loans to niche client groups like Government Employees, Teachers, employees of public sector oil companies etc.

SBI Special Home Loan Scheme

(w.e.f. 16.12.2008 and valid up to 30th June 2011) For Loans up to Rs.5 Lac 8.5% p.a. fixed rate with reset every 5 years* from the date of disbursement of first installment. For Loans above Rs.5 Lac and up to Rs.20 Lacs 9.25% p.a. fixed rate with reset every 5 years* from the date of disbursement of first installment. *Option to customer at the end of 5 years to convert into floating rate. Reset or conversion will be at the rates prevailing at the time of reset. SBI Happy-Home Loan Offer for new loans sanctioned on or after 2nd February 2011 and at least partially disbursed on or before 30th April 2011 Interest rate 8% p.a. (Frozen) for a period of one year. Interest rate will be reset after one year as per contracted rate at the time of sanction of loan as under-

Interest Rates w.e.f. 01.01.2011

a) Floating Rates linked to SBAR: SBAR w.e.f. 01.01.2011 = 12.25 % p.a.

Loans (i.e. Sanctioned limits) up to Rs.30 Lacs Loan amount Loan Tenure -> Up to 5 Yrs Loans up to Rs.30 lacs for new loans sanctioned on or after 01.01.2011 Special product level discount which may be withdrawn/revised solely at the discretion of the Bank. Effective Rate Loans (i.e. Sanctioned limits) above Rs.30 Lacs and up to Rs.75 Lacs Loan Tenure Up to 5 Yrs -> Above Rs.30 lacs and up Linkage with 2.00% below to Rs.75 Lacs w.e.f. 01.01.2011 Effective rate Loans (i.e. Sanctioned limits) above Rs.75 Lacs Above Rs.75 Lacs w.e.f. 01.01.2011 Linkage with SBAR 2.00% below SBAR 1.75% below SBAR 10.50% p.a. 1.25% below SBAR 11.00% p.a. 10.25%p.a. 10.50% p.a. 10.75% p.a. SBAR SBAR Above 5 Yrs Above 15 Yrs & up to 15 Yrs & up to 25 Yrs 1.75% below 1.50% below SBAR SBAR 9.75% p.a.10.00% p.a. 10.25% p.a. Linkage with SBAR in the loan 2.25% document below SBAR, 0.25% Above 5 Above 15 Yrs & up to Yrs & up to 15 Yrs 25 Yrs 2.00 below 1.75% below SBAR 0.25% SBAR 0.25%

Effective rate 10.25% p.a.

B) Fixed rates - Re-payment Up to 10 Years (w.e.f. 01.01.2011): Fixed rates (subject to force majeure clause and interest rate reset at the end of every two years on the basis of fixed interest rates prevailing at that time) Up to Rs. 30 Lacs 11.25% p.a. Above Rs. 30 Lacs 12.25% p.a.

c) Loans for deposit of earnest money for allotment of a plot / house / flat
(Floating rates only)- W.E.F. 01.01.2011 - 1% above SBAR, Min. 13.25% p.a. Loan amount Up to Rs.30 Lacs Margin 20%

Above Rs.30 Lacs and up to Rs.75 Lac Above Rs.75 Lac

20% 25%

State Bank of India Personal Loan:

Introduction:
SBI Personal Loans also known as State Bank of India personal finance schemes, aim to provide the necessary financial assistance to as many people as possible to help them realize their dreams or come out of situations of financial need. State Bank of India being India's largest bank is a trusted name and the SBI personal loan rate of interest are kept at the most competitive level to make a personal loan as approachable as possible. SBI provides SBI Saral personal loan to help you in meeting any kind of personal expenses whenever you need it to meet your requirements. Loan is provided at low interest rates, no hidden costs or administrative charges, no prepayment penalties and comfortable repayment tenure.

Highlights

Salaried Loan Scheme Loan Type Loan Amount Tenure Interest Rate Time to Process Loan Saral Personal Loan Term Loan

Self Employed Saral Personal Loan Term Loan

Max Loan: 12 times the Max Loan: 12 times the monthly income monthly income Min. - 12 Yrs. Min. - 16.5 % Max. - 16.5 % 2 days Min. - 12 Yrs. Min. - 16.5 % Max. - 16.5 % 2 days

PERSONAL LOAN AGAINST THIRD PARTY SECURITY:

w.e.f. 01.01.2011 (SBAR 12.25%) Personal Loan against Third Party Security of NSC/ IVP/ RBI Relief Bonds etc. Tenure Up to 3 years Above 3 years up to 6 years Rate of Interest 1.00% above SBAR i.e. 13.25% p.a. 0.25% above SBAR i.e. 12.50% p.a.

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE. SBI SARAL PERSONAL LOAN:

Do you want funds readily available to you whenever you desire or need, be it a sudden vacation that you plan with your family or urgent funds required for medical treatment? SBI Saral - Personal Loan is the answer to your questions. Access this facility from over 3000 branches across the country and confidently face the challenge of meeting any kind of personal expenses!

The Scheme:
Purpose:
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for domestic or foreign travel, medical treatment of self or a family member, meeting any financial liability, such as marriage of son/daughter, defraying educational expenses of wards, meeting margins for purchase of assets etc.)

Eligibility:
you are eligible if you are a salaried individual of good quality corporate, self employed engineer, doctor, architect, chartered accountant, MBA with minimum 2 years standing.

Salient Features:
Loan Amount: Your personal loan limit would be determined by your income and repayment capacity. Minimum: Rs.24, 000/- in metro and urban centres Rs.10, 000/- in rural/semi-urban centres

Maximum: 12 times Net Monthly Income for salaried individuals and

pensioners subject to a ceiling of Rs.10 lacs in all centres

Documents Required: important documents to be furnished while opening a Personal Loan Account: For existing bank customers:
Passport size photograph From salaried individuals: Latest salary slip and Form 16

Margin:
we do not insist on any margin amount. Interest Rates: 4.25% above SBAR Floating i.e. 16.50% p.a. (w.e.f. 01.01.2011) Repayment: The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you wish to, without attracting any prepayment penalty.

Security: NIL

Processing Fee: Processing charges are 2-3% of the loan amount. This is amongst the lowest fees in the industry. Processing fees have to be paid upfront. There are no hidden costs or other administrative charges. Enjoy the SBI Advantage: Low interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges; only 2%-3% of loan amount No hidden costs or administrative charges. No security required which means minimal documentationsomething that you had always wanted. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan (1% of the loan amount will be charged if you

repay the loan before 6 months) Long repayment period of up to 48 months.

SBI cuts home, personal loan rates for festive season:

State Bank of India has slashed its interest rates on home loans, auto loans and personal loans. Thats a big relief for first time buyers. The interest rate cut on new home loans will be between 0.50 per cent to 1 per cent depending on loan maturities and amount. Its almost the festive season and India's biggest lender has also announced interest rate cuts on auto and personal loans. Where as interest rates on new car and two-wheeler loans have been reduced by up to 1 per cent, the personal loans are cheaper by 0.50 per cent to 1 per cent. The rate cut on retail loans will be applicable on all new loans from October 8 to December 31, while the reverse mortgage scheme for senior citizens above 60 years will be offered at all SBI branches from October 12.

Simultaneously, SBI also reduced interest rates on deposits under two special schemes by 0.25 per cent to 9 per cent with effect from October 8. "We reduced interest rates on Smart Deposit Scheme of 550 days and on Super Saver Term Deposit of 4-5 years duration by 0.25 per cent to 9 per cent," PTI quoted SBI CGM Personal Banking Sangeet Shukla as saying. For senior citizens too, it was good news as SBI announced its entry into reverse mortgage, through which they can avail loan, released in monthly or quarterly installments or as a lump sum payment at the beginning, against the security of the house they own and live in.

RESEARCH METHDOLOGY
INTRODUCTION:
Research in Common parlance refers to search for Knowledge. Its a scientific and systematic search for pertinent information on specific topic. Research is an art of Scientific investigation its mean Systematized effort to gain new Knowledge.

Duration of the project:- 6 Weeks TYPE OF RESEARCH

THERE ARE TWO TYPE OF RESEARCH DESIGN ARE FOLLOWING: DESCRIPTIVE RESEARCH DESIGN QUANTITATIVE RESEARCH DESIGN

SAMPLE DESIGN

Sample design refers to the technique or the procedure the researcher would adopt in selecting item for the Sample. Sample design may be well lay down the number of items to be included in the sample that is the size of the sample design is determined before data are collected. There are many Sample designs from which a researcher can choose some designs are relatively more precise and easier to apply than other researcher must select a sample design which should be reliable and appropriate for his research study.

DATA COLLECTION
Basically there are two main method of data Collection primary data and Secondary data. Primary data are those which are Colleted freshly and the first time and thus happen to be original in character. Other hand Secondary data are those which have already been collected by someone else and which have already been passed through the Statistical granting

.PRIMARY

DATA

QUESTIONNAIRE METHOD: This method of data collection is quite popular, particularly in case of big enquiries. It is being adopted by private individuals, research workers private and public organization and even by governments in this method a questionnaire Consists of a number of question printed or typed in definite order on a form or set of form I have made a Questionnaire for Survey. The inquiry was done of the respondents through questionnaire in which the same set of questions were asked to the very respondents

falling within out sample. The advantage is that it is simple to administer easy to tabulate and analyse.

PERSONAL INTERVIEWS:
The interview method of collecting data involves presentation of oral verbal stimuli and reply in term of oral verbal responses. We have used this method through personal interview.

SECONDARY DATA:
Secondary data means data that are already available they refer to the data which have already been collected and analyzed by someone else. We have used for it following method Internet and journals of company. The search was done on internet and related magazines, companys websites to extract relevant information. The other necessary information regarding ICICI & SBI Bank products and other bank products and offerings were obtained through printed sources such as Handouts, Pamphlets, Advertisements and circulars etc

OBJECTIVE OF THE STUDY

The Purpose of research is to discover answer to question through the Application of scientific procedure. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. To know and apply different market research techniques in our study as follows: o o o Sampling Design Research Methodology Questionnaire Design

LIMITATIONS
Due to the financial & time constraints the study was limited to our place thus the conclusion arrived in the end rely in short term experience.

Being an opinion survey the personal bases of the respondents might have entered
into their responses. Time constraints resource constraints were some of the limitations. The selected sample might have affected the results of the study therefore the findings & conclusions of the study are only suggestive & not conclusive. Sample was chosen according to convenience & judgment sampling & not according to random sampling.

FACTS &FINDINGS
As part of the project we had make a survey with the help of questionnaire that has to taken to different people to get perception towards ICICI and SBI product the questionnaire is passed on the general public and requested to give their opinion toward ICICI and SBI product the questionnaire Consists of both open and close ended question the main motto behind the Study is to find out how people react against the ICICI and SBI Home Loan And Personal Loan products and aware about the benefits of these products. In research methodology we have used random sampling and sample size was 50. Simple random sampling method is followed where every member of population have equal chance of been selected. The questionnaire is administrated on sample to find out their perception to wards ICICI and SBI Banking loan product and benefits of product. After analysis of questionnaire Conclusions were made based on finding from pie charts.

What is your occupation?

student service business others 14% 48% 34% 0%

0% 35%

15% student service business others 50%

Above this chart show that I am conduct in this survey occupation peoples 14% student, 48% service mans 34% business men part of this survey report. What is your age group?
Below-20 20-25 30-35 35-45 above 45
35% 30% 25% 20% 15% 10% 5% 0%

4% 18% 30% 32% 16%

32%

30% 18%

16%

Series1

4%

Below- 20-25 20

30-35

35-45

above 45

Interpretation

This chart represents that 32% customer which belongs to 35-32age group. 30% customers belong to age group between 30-35, 18% & 16% customers which belong to age group between 20-25 and above 45. Only 4% customers that age group below 20 years. What is your income level (monthly)?
5000-10000 10000-40000 40000-100000 above 100000 22% 42% 14% 22%

45% 40% 35% 30% 25% 20% 15% 10% 5% 0%

42%

22% 14%

22%

Series1

500010000

1000040000

40000100000

above 100000

Here we can see by this graph that income level of the peoples mainly is 10000-40000 monthly. Whose wants to take loan from different public and private banks. Do you want to take loan?
yes no 78% 22%

22% yes no 78%

Interpretation In this survey I found that 78% respondents who want to take the loan whereas 22% respondents do not want to take the loan from any others institutions.

What is future loan requirement?

personal loan home loan any other no requirement 34% 22% 28% 16%

40% 35% 30% 25% 20% 15% 10% 5% 0%

rs on al

34% 28% 22% 16% Series1

an

lo an

he r

ho m e

ot

pe

no

re qu ire

an y

m en

lo

Interpretation This table represents that future loan requirements for the respondents from 34% in personal loan, 22% from the home loan and 28% from other instruments and 16% respondents which have not give any response. from where you would like to take loan?
private bank NBFC'S govt. bank Gramine bank others
60% 50% 40% 30% 20% 10% 0% 52% 38% Series1 4% 4% 2%

38% 4% 52% 4% 2%

ba nk

NB FC 'S go vt .b an G k ra m in e ba nk

Interpitation In survey I found that most of the respondents want to take the loan from government banks, whereas 38% respondents want to take loan from the private banks. 4% respondents want to take loan from NBFCS and 4% from Gramine banks and 2% from other institutions. Before taking a loan from a particular bank, you look for?
interest rate services unique features good relationship others 52% 14% 10% 18% 6%

pr iv

at e

ot he rs

6% 18% 52% interest rate services unique features good relationship others 14% 10%

Interpretation According to this chart I found in survey that 52% respondents look before taking a loan from particular bank interest rate and 14% respondents services, 10% unique features, 18% bank relationship with customers and 6% respondents see others features provide by the bank.

How much amount of loan you would like to take?

50000 100000 100000-150000 150000-200000 above 200000 8% 10% 18% 22% 42%

8% 10% 42% 18% 50000 100000 100000-150000 150000-200000 above 200000 22%

Interpretation In this survey I found that 8% respondents interested up to 50000, 10% respondents interested up to 100000, 18% respondents interested between 100000-150000, 22% respondents interested between 150000-200000, and 42% respondents which want to take loan above 200000.

Have you ever taken loan from any of the following banks?
SBI ICICI BANK SBBJ BANK OF INDIA OHTERS 26% 28% 12% 10% 24%

30% 25% 20% 15% 10% 5% 0%

26%

28% 24%

12%

10%

Series1

SBI

ICICI BANK

SBBJ

BANK OHTERS OF INDIA

Interpretation This tables represents that 26% respondents take loan from state bank of India, 28% take loan from ICICI bank ,12% takes loan from state bank of Bikaner and Jaipur , 10% takes loan from Bank of India , and 24% takes loan from others.

do you know about the credit norms of the banks?

YES NO 76% 24%

24% YES NO 76%

Interpretation This chart represent that how much of customers know about the credit norms of banks yes and no. 76% respondents know about the credit norms and 24% respondents not know about the credit norms.

How you know about the credit norms?

advertisement friends others 26% 36% 38%

26% 38% advertisement friends others 36%

Interpretation In this survey I found that know about the credit norms of the banks by the help of advertisement 26%, by friends 36% and others sources like bank employee, agents, sales persons 38%

ICICI BANK
SWOT ANALYSIS:
STRENGTHS:

All the branches are interconnected which give the unique facility of anywhere banking. All operations of the bank are carried on with the help of computers thus transaction are carried with greater efficiency. ICICI bank provide after loan services for the customers.

Employees of ICICI Bank make good relationship with the customers. Documentations process of loan is easily other banks. High number of executives which make the work of customers very convenient. Maximum customer base in Jaipur; as compared to any of the bank.

WEAKNESS:
Less awareness among general masses about the different LOAN PRODUCTS provided by bank. Peoples faith in private banks is still not very high. Dissatisfaction among customers due to improper and lack of after sales services. Exchange rates of demand draft are high

OPPORTUNITIES:
Peoples dissatisfaction towards nationalized banks in terms of services has turned to be blessing for private banks. Among the private players ICICI Bank have the excellent brand image. There lies a great scope in forex department which is unutilized to a greater extent can yield much better results by which the bank can increase its volume. Special services can be provided to women as the womens role is becoming prominent. The trust of people is increasing on the banks rather then going for financial institution. There is vast untapped opportunity which lies for every bank in the rural areas.

THREATS:
Reorganization of PSUs. The all PSUs have started to redefine their services to attract customers attention. A few foreign banks have been permitted to increase their number branches and its entry has taken away some business of the existing banks.

Stringent norms by RBI in any time in future can be a threat to private banks as their activities can be adversely affected.

RECOMMENDATIONS
Banks should have extensive advertising to attract potential Customers by giving advertisement in t.v commercials, newspaper so that people have knowledge of their new policies. Adequate training improves the skill of employees; a company which has well trained employees has good future because they are the assets of the company. Company should put stress on market Capture by increasing their policies and plans. Adequate transparency in product plans and policies should be as it increase the trust of customers and build healthy relationship. Company should maintain proper Customer relationship by solving the problems of customers & helping them in understanding the home loan plans. A weekly review may be publishing for internal or external Competitive business. Time to time bank should launch new loan products for the customers with extra unique features.

CONCLUSION
There was a great experience working with the ICICI Bank and delighted to serve for the Company. This is working for a noble service by providing home loans to needed person.

In the due course of summer training I met with many people. I come to the conclusion that most of the people are having an urge to earn more than their current status, but they are not getting any kind of right opportunity they desire, in which mode they earn; what they need in a legal and better way. In my study I draw the conclusion that getting home loan is a difficult task for people and there are various companies in home loan field. Due to tough competition there is regular decline of interest rate so profit is low. Thus company should make such plans and policies to maximized customer satisfaction and is resulted into popularity of company among public and can reach at the maximum height of success. Proper training to the employees increases their confidence and helps them in building the great atmosphere in organization.

BIBLIOGRAPHY
Internet:

www.icicibank.com www.rbi.org.in www.indiainfoline.com www.wikipedia.com www.apnaloan.com www.google.com

Magazines:
Business Today (Various Issues) Business World (Various Issues) Business India (Various Issues)

News Papers:
Economic times Business standard Business line Financial express

Text books:
Research Methodology By C.R.Kothari. Investment Management By Avadhani

Financial management By Prasanna Chandra. Investment By William Sharpe

Questionnaire
Dear Sir/Madam, I am the student of S.S JAIN SUBODH P.G MAHILA MAHAVIDHYALAYA, Jaipur. As part of the requirements for my project study I am required to do a research based project on COMPARATIVE STUDY OF PERSONAL AND HOME LOANS OF ICICI V/S STATE BANK OF INDIA Kindly spend a few minutes of your valuable time and fill in this questionnaire. Every information given by you will be only for Academic purpose.

NAME OF RESPONDENT___________________________________________ ADDRESS_____________________________________________________________ _________________________________________________________________

Q.1
a) c)

what is your occupation?

Student Business b) d) service Others

Q.2 a) c) e)

What is your Age Group? <20 30-35 Above 45 years b) d) 20-25 35-45

Q.3 a)

What is your income level ? 5000 10000 b) 10000-40000

c)

40000-100000

d)

above 100000

Q.4 a)

Do you want to take loan? Yes b) No

Q.5 a) c)

What is your future loan requirement? Personal loan Any other b) Home loan d) No requirement

Q.6 a) c) e)

From where you would like to take loan? Private Bank Government Bank b) d) NBFCS Gramine Bank

Any other, please specify_________________________________

Q.7 a) c) e)

Before taking a loan from a particular Bank, you look for? Interest rate Unique feature b) d) Services Relationship with the customers

Any other, please specify_________________________________

Q.8 a) c) e)

How much Amount of loan you would like to take? 50,000 1, 00,000-1, 50,000 Above 2, 00,000 b) d) 1, 00,000 1, 50,000-2, 00,000

Q.9 a)

Have you ever taken loan from any of the following institutions? SBI b) ICICI BANK

c) e)

SBBJ

d)

BANK OF INDIA

Others (Please specify)____________________________________

Q.10

Do you think about Private sector loan is better than Public sector loans? If Yes: Why, If No Why?

Q.11 a)

Do you know about the credit norms of the Banks? Yes b) No

Q.12 How you know about the credit norms of the above specified Banks? a) c) Advertisement b) friends

Others (please specify) _________________________________

Q.13 what suggestions you want to give for Bank to improve their services? ________________________________________________________________ ________________________________________________________________ __________________________________________________________

Thank You