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2010

HDFC CHANDIGARH

[A REPORT ON COMPARATIVE STUDY OF HOME LOAN & CUSTOMER SATISFACTION]

TABLE OF CONTENTS
SNO PARTICULARS EXECUTIVE SUMMARY OBJECTIVE OF THE REPORT INTRODUCTION BACKGROUND y y y y y Vision of the organization Vision of HDFC Promoters Organizational goals Organization and management 10 11-16 5 6 7 8-9 PAGE NO.

1 2 3 4

5 6

BOARD OF DIRECTORS ABOUT HDFC y y y y y y Core business Shareholders pattern Balance sheet (liabilities and assets) Continuing growth momentum Sources of mortgage Fund raising

ASSOCIATE COMPANIES y y y y y y y Holdings HDFC bank HDFC AMC HDFC standard life HDFC ERGO HDFC sales HDFC realty

17-23

HOME LOAN PRODUCTS

24-25

COMPARISON WITH OTHER MARKET PLAYERS y y y y State bank of India ICICI bank AXIS bank IDBI bank

26-32

10 11

SWOT ANALYSIS STUDY ON CUSTOMER SATISFACTION y y y y y Customer satisfaction Need for customer satisfaction Objective of study Scope of study Research methodology

33 34-40

12 13 14 15 16 17 18

ANALYSIS RELATION BETWEEN VARIOUS PARAMETERS SPSS ANLYSIS FOR FACTOR LIMITATIONS RECOMMENDATIONS AND SUGESSTIONS BIBLIOGRAPHY ANNEXURE

38-41 42-50 51-54 55 56 57 58-62

OBJECTIVE OF THE PROJECT


T he objective of this research is to analyse the home loans with a view to arrive at the most p opular lo an schemes offe red by the banks under study and to conclude from the analysis the best possible schemes which would keep the bank ahead of competition. Further this study would lead to know about the following: y To have the first hand information on home loan products, sanctioning and disbursement in HDFC ltd.

y y y

To compare the performance of HDFC with other market players. To conduct SWOT analysis of HDFC ltd. To study the satisfaction level of customers about home loans

INTRODUCTION
Buying a home of one's own is every individual's first stop in life. HDFC LTD have pulled out all the stops to sew together a home loan product that has flexibility as its very foundation. It has created a product that is competitively benchmarked, that is amply affordable and one that is customer-sensitive. Only because when it comes to buying a house, the first thing you need to do is to feel at home with your bank. There are various opportunities for a young salaried individual to plan their moves ahead of time which will not only lead to wealth creation but will also cater to the demand of their growing family. To help such individuals various financial institutions work day and to make these people realize their dreams. One of them is HDFC. We will now look at how these institutions work and what do they do to remain competitive in the market. Going by the facts we can infer that the demand for reality sector has grown by 7-8%. Though the figures were bit shaky after the subprime crises of the US but the prices are now quite stable which has caused an increase in the demand in this sector. HDFC brings its home loan policy to ones doorstep, with over 30 years of experience and a dedicated team of experts with the complete package that meets all the housing finance needs.

BACKGROUND
HDFC was incorporated in 1977 as the first specialized Mortgage Company in India with primary objective of meeting a social need that of promoting the home ownership by providing long term finance to households for meeting their housing needs. Its services are aimed at individuals as well as companies availing loans for housing purposes. It also provides lease finance to companies and to development authorities for financing infrastructure and other assets along with its property related services.

VISION OF THE ORGANISATION HDFC is an organization that strives for excellence, with the twin objectives of enhancing customer satisfaction and shareholder value.

VISION OF HDFC y To enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner and to promote home ownership. To increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

PROMOTERS HDFC is Indias premier housing finance company and enjoys an impeccable track record in India as well as in international markets. Since its inception in 1977, the Corporation has maintained a consistent and healthy growth in its operations to remain the markets leader in mortgages. Its outstanding loan portfolio covers well over a million dwelling units. HDFC has developed a significant expertise in retail mortgage loans to different market segments and also had a large corporate client base for its housing related credit facilities. With its experience in the financial markets, a strong market reputation, large shareholder base and unique consumer franchise, HDFC was ideally positioned to promote a bank in the Indian environment.

ORGANISATIONAL GOALS y y y y y Develop close relationships with individual households. Maintain its position as the premier housing finance institution in the country. Transform ideas into viable and creative solutions Provide consistently high returns to shareholders. To grow through diversification by leveraging off the existing client base.

ORGANISATION AND MANAGEMENT HDFC is professionally managed with a board of directors consisting of eminent persons who represents various fields including finance, taxation, construction and urban policy and development. The board primarily focuses on strategy formulation, policy and control designed to deliver increasing value to shareholders. Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

BOARD OF DIRECTORS

S.No
1 2 3 4 5 6 7 8 9 10 11

Name
Mr.Deepak S Parekh Mr.Shirish B Patel Mr.D M Satwalekar Mr.D N Ghosh Dr.Bimal Jalan Dr.J J Irani Mr.B S Mehta Mr.D M Sukthankar Mr.N M Munjee Dr.Ram S Tarneja Dr.S A Dave

Designation
Chairman / Chair Person Director Director Director Director Director Director Director Director Director Director Executive Director Managing Director Vice Chairman Vice Chairman & CEO

12 Mr.V Srinivasa Rangan 13 Mrs.Renu Sud Karnad 14 Mr.Keshub Mahindra 15 Mr.Keki M Mistry

Housing finance is a part of financial service which has emerged strongly due to growth of banking industry and housing finance institution or companies. The housing finance is a type of installment credit which forms the largest single source of housing finance. Under installment credit scheme, the customer repays the loan in equal periodic or monthly installments (EMI). EMI means the amount of monthly payment necessary to amortize the loan with interest within the tenure of loan. HDFC offers Loans for Homes-for buying or constructing homes, refinancing a home loan availed from another institution or to extend or improve an existing home. HDFC also finances purchase of land approved agencies to help construct a home. HDFC also helps a customer in acquiring a self contained flat in an existing or proposed cooperative society, in an apartment owners association or even an independent single family or multifamily bungalow or row house. HDFC Homes Loans have serve 26lakh customers over a period of 29 years.

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CORE BUSINESS

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BALANCE SHEET OF HDFC LTD (LIABILITIES)

BALANCE SHEET OF HDFC LTD (ASSETS)

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CONTINUING GROWTH MOMENTUM OF HDFC LTD.

SOURCES OF MORTGAGE AT HDFC LTD.

13

FUND RAISING AT HDFC

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ASSOCIATE COMPANIES

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HOLDINGS

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HDFC BANK

y HDFC Bank was incorporated in August 1994 y Among the first in new generation commercial banks y Registered office in Mumbai, India y Promoted by HDFC, the parent company y IPO in India in 1995 y Listed in NSE, BSE, NYSE(ADR)

NETWORK y 1416 branches y 3570 ATMs in the country y 550 cities in India y All branches are OLRT connected y 500 locations serviced through Telebanking y Representative offices in Hong Kong, New York, London & Singapore.

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BUSINESS FOCUS y World Class Indian Bank y Benchmarking against international standards. y Best practices in terms of ethical standards, professional integrity, corporate governance and regulatory compliance y To build sound customer franchises across distinct businesses. y Four core values - Operational Excellence, Customer Focus, Product Leadership and People.

OFFERINGS y Wholesale Banking Services y Retail Banking Services y Treasury

ACHIEVEMENTS y HDFC Bank merged with TIMES BANK in 2000. y HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007. y HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance. y HDFC Bank chosen as one of Asia Pacifics best 50 companies by Forbes magazine. y 'Best Bank in the Private Sector 2008.' y HDFC Bank ties up with Qatar National Bank.

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HDFC AMC

y Incorporated on 10th December, 1999 y Approved as AMC for HDFC Mutual Fund on 3rd July, 2000 Particulars HDFC Limited Standard Life Investments Limited % of the paid up equity capital 60 40

y Zurich India Mutual Fund divested its Asset Management business in India y HDFC AMC acquired Zurichs Schemes on 19th June, 2003.

VISION

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HDFC STANDARD LIFE y Joint Venture between Companys Name HDFC Ltd. Standard Life (Mauritius) 2006 Percentage holding 72.43 26.00

y Financial Expertise y Range of Solutions y Track Record So Far is: y Gross Premium Income Rs. 5564.69 crs y 27 lakh policies in force.

VISION y 'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'. y 'The most obvious choice for all'.

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HDFC ERGO GENERAL INSURANCE

y 74:26 Joint Venture between HDFC Ltd. & ERGO International AG y Right Insurance Solution for ALL y 46 cities with 52 branch offices with an employee strength of 650 professionals.

VISION y "To be the most admired insurance company that enables the continued progress of customers by being responsive to their needs".

HDFC REALTY

y Wholly Owned Subsidiary of HDFC Ltd. y Facilitating Buying, Selling or Leasing of Residential/Commercial Property y Geographic Reach - Mumbai, Navi Mumbai, Pune, Bangalore, Delhi / NCR, Kolkata, Kochi & Hyderabad.

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HOME LOAN PRODUCTS


y Home Improvement Loans y Flat, row house, bungalow from developers y Existing freehold properties y Properties in an existing or proposed co-operative housing society or apartment y Owner's association y Home Extension Loans y To facilitate the extension of an existing dwelling unit. y The maximum amount of such a loan is Rs. 100 lacs or 100% of the cost of extension, whichever is lower y Maximum duration of 20 years and is to be repaid in equated monthly installments y Home Conversion Loans y Existing HDFC borrowers can avail of a Home Conversion Loan to acquire another dwelling unit, through sale of the existing dwelling unit y The existing loan gets transferred to new property with the increased loan amount y Saves the prepayment processing charges for loan conversion y Top - Up Loans y Encashing the investment in a house without having to dispose it off to fund various needs related to Higher Education, Purchase of Furniture, Business Requirements. y The maximum term of the loan is 10 years. Top up loans can given after 1 to 2 years of the final disbursement of the existing loan or upon possession/completion of the existing financed property.

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y Home Loan y Maximum loan 85% of the cost of the property and based on the repayment capacity of the customer. y Maximum Term 20 years subject to your retirement age. y Applicant and Co- Applicant to the loan y Adjustable Rate Home Loan y Fees y Home Improvement Loan y Maximum loan y Existing customer y New customer No Charges for y Replacement of cheques y Income Tax Certificates y Accelerated Repayment Option Land Purchase Loan Maximum loan Maximum Term Applicant and Co- Applicant to the loan Adjustable Rate Home Loan y No Charges for y Replacement of cheques y Income Tax Certificates y Accelerated Repayment Option

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COMPARISON OF HDFC LTD WITH OTHER MARKET PLAYERS

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STATE BANK OF INDIA

Features & Benefits of SBI Home Loan Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Lowest Home Loan Interest Rate.. Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost. Takeover of an existing loan from other Banks/ Housing Finance Companies. Interest charged on the daily reducing balance No penalty on prepayments of home loan No hidden costs 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.

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CURRENT RATE OF INTEREST LOAN SCHEME


SBI HI-FIVE Loan Loan Amount upto Rs. 5 Lacs

1st YEAR
8.00% (p.a.) Fixed interest rate

2nd YEAR & 3rd YEAR


9.00% (p.a.) Floating Interest Rates OR 10.50% (p.a.) Fixed Interest Rates 8.00% (p.a.) Fixed interest rat

AFTER 3rd YEAR


9.00% (p.a.) Floating Interest Rates OR 10.50% (p.a.) Fixed Interest Rates 9.00% (p.a.) Floating Interest Rate OR 10.50% (p.a.) Fixed Interest Rate 10.00% (p.a.) Floating Interest Rate OR 11.00% (p.a.) Fixed Interest Rate

SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs

8.00% (p.a.) Fixed interest rat

SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs

8.00% (p.a.) Fixed interest rate

9.00% (p.a.) Fixed Interest Rates

ELIGIBILITY CRITERIA & DOCUMENTATION REQUIRED SALARIED


Age Income Loan Amount Offered Tenure Current Experience Documentation 21years to 60years Rs.1,20,000 (p.a.) 5,00,000 - 1,00,00000 5years-20years 2years 1) Application form with photograph 2) Identity & residence proof 3) Last 3 months salary slip 4) Form 16 5) Last 6 months bank salaried

SELF EMPLOYEED
21years to 70years Rs.2,00,000 (p.a.) 5,00,000 - 2,00,00000 5years-20years 3years 1) Application form with photograph 2) Identity & residence proof 3) Education qualifications certificate & proof of business existence

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credit statements 6) Processing fee cheque

4) Business profile, 5) Last 3 years profit/loss & balance sheet 6) Last 6 months bank statements

ICICI BANK

Features & Benefits of ICICI Bank Home Loan Attractive Home Loan Rates No charges on part pre-payment of your Home Loan Top Up & Home Improvement Loan facility available on existing Home Loan Home loan amounts suited to your needs Home Loan tenure upto 25 years Simplified Documentation Doorstep Delivery of home loan papers Sanction approval without having selected a property. Free Personal Accident Insurance policies Insurance options for your home loan at attractive premium

CURRENT RATE OF INTEREST LOAN SCHEME


ICICI Bank

UPTO 30 LACS
Floating 8.75%

FROM 30 LACS-50 LACS


Floating 9%

ABOVE 50 LACS
Floating 9.50%

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DOCUMENTATION REQUIRED SALARIED


Age Income Loan Amount Offered Tenure Current Experience Processing Fee 21years to 65years Rs.1,44,000 (p.a) 2,00,000 - 1,00,00000 5years-20years 1years 0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher 1) Application form with photograph 2) Identity & residence proof 3) Latest salary slip 4) Form 16 5) Last 6 months bank statements 6) Processing fee cheque

SELF EMPLOYED
21years to 65years Rs.1,50,000 (p.a) 2,00,000 - 2,00,00000 5years-20years 3years 0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher 1) Application form with photograph 2) Identity & residence proof 3) Proof of business existence 4) Profile of the Business 5) Last 3years ITR 6) Last 6 months bank statements 7) Processing fee cheque

Documentation

AXIS BANK

Features and benefits of Axis Bank Home Loan Attractive Home loan rate of interest Balance Transfer Facility You can choose between floating rate of interest and fixed rate of interest Loan can be sanctioned if you want to purchase any residential plot or a new house/flat Pre approved loan facility

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ELIGIBILITY & DOCUMENTS REQUIRED SALARIED


Age Loan Amount Offered Processing Fee Documentation 24 years to 60 years Rs.1lac to 50lacs 0.5% + Service tax as applicable 1) Application form with photograph 2) Identity & residence proof 3 )Latest salary slip, 4) Form 16 5) Last 6 months bank statements 6) Processing fee cheque

SELF EMPLOYED
24 years to 65 years Rs.1lac to 50lacs Nil 1) Application form with photograph 2) Identity & residence proof 3) Education qualifications certificate & proof of business existence 4) Business profile, Last 3 years profit/loss & balance sheet 5) Last 6 months bank statements 6) Processing fee cheque

IDBI BANK

ID B I, the tenth largest development bank in t he world has pro moted world class inst itut io ns in India. A few o f such inst itut ions built by ID B I are T he N at io nal S to ck E xchange ( NS E ), T he N at ional S ecurit ies Depository S ervices Ltd.( NS D L), S to ck Ho lding Corporatio n o f India ( S HCIL) etc. ID B I is a strategic investor in a p letho ra o f inst itut ions w hich have revo lut ionized the Indian Financial M arkets.

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ID B I pro moted idbi bank to mark the formal foray o f the ID B I Group into co mmercial B anking. T his init iative has blosso med into a major success story. IDBI bank offers only Floating rate home loans. INTEREST RATE CHART TENURE(in years)
Upto 5 10 15 20

SALARIED
7.50% 7.50% 7.50% 7.50%

SELF EMPLOYED
7.75% 7.75% 7.75%

ELIGIBILITY CRITERIA SALARIED


Age Loan amount Income Minimum work experience 24years-58years 2lacs-3crore Gross 1.20lacs 2years

SELF EMPLOYED
24years-65years 2lacs-3crore Net 1lac 2years

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SWOT ANALYSIS

Leader in home loan segment Right Strategy for products. Distribution Structure

Strength

Weakness

Strict policy of funding. Not very aggressive in M&A. Mere international presence.

Opportunity
Untapped rural market Leader in home loan segment Fast growing insurance business

Threat

Risk of fraud & NPA Major private players. RBI policies. Increase in funding cost.

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STUDY ON CUSTOMER SATISFACTION

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CUSTOMER SATISFACTION
: State of mind of customers when expectations have been met or have exceeded over the lifetime of the products/services i.e. Customer satisfaction, a business term, is a measure of how products and services supplied by a company meet or surpass customer expectation. It is seen as a key performance indicator within business. In a competitive marketplace where businesses compete for customers, customer satisfaction is seen as a key differentiator and increasingly has become a key element of business strategy. Customer satisfaction is an ambiguous and abstract concept and the actual manifestation of the state of satisfaction will vary from person to person and service to service. The state of satisfaction depends on a number of both psychological and physical variables. It's a well known fact that no business can exist without customers. And with increasing competition and with that more customers need and expectations a whole lot of changes have taken place.

THE NEED TO MEASURE CUSTOMER SATISFACTION Satisfied customers are central to optimal performance and financial returns.In many places in the world, business organizations have been elevating the role of the customer to that of a key stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are finding value in directly measuring and tracking customer satisfaction (CS) as an important strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to improved organizational performance in a global marketplace. With better understanding of customers' perceptions, companies can determine the actions required to meet the customers' needs. They can identify their own strengths and weaknesses, where they stand in comparison to their competitors, chart out path future progress and improvement. Customer satisfaction measurement helps to promote an increased focus on customer outcomes and stimulate improvements in the work practices and processes used within the company.

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When buyers are powerful, the health and strength of the company's relationship with its customers its most critical economic asset is its best predictor of the future. Assets on the balance sheet basically assets of production are good predictors only when buyers are weak. So it is no wonder that the relationship between those assets and future income is becoming more and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing on competition has its place, but with buyer power on the rise, it is more important to pay attention to the customer. Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about what exactly is required and how to go about it. This article is an attempt to review the necessary requirements, and discuss the steps that need to be taken in order to measure and track customer satisfaction. OBJECTIVE OF THE STUDY The objective of this study is to study the level of satisfaction among the existing customers of HDFC Ltd. on the basis of various parameters and also tocompare HDFC Ltd. services with other public sector banks and private sector banks in terms of customer satisfaction and to find out the various reasons of customer satisfaction or dissatisfaction in HDFC Ltd.services. SCOPE OF THE STUDY The scope of the study is confined in studying extent of HDFC Ltd. services in successful achievement of the customer satisfaction and also comparing the public sector and private sector banks in terms of customer satisfaction level. The study will be undertaken on the basis of sample survey. RESEARCH METHODOLOGY y Research design:

The research design would be descriptive and cross sectional y Sample size:

The sample would be selected on random basis. A sample of 50 respondents would be used in the research.

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Target Area :Chandigarh Data Sources:

Both Secondary and Primary Sources of data will be used. The major type of information used is primary data (Questionnaires and Personal Interview). This is done through primary survey. The literature review is a secondary data type. The sources include books, periodicals, websites, printed literature etc. y Data Collection Tool: -Structured Questionnaire:

A structured Questionnaire is a formal list of questions framed so as target the facts. For Collecting Primary Data I used a Structured Questionnaire. I prepared questionnaire to be filled by customers of HDFC Bank. I meet to 50 customers of HDFC Bank who filled the questionnaire so that I can know about the satisfaction level of that services which they enjoy as a customer. y Sampling Technique: Convenient Sampling In convenience sampling, the selection of units from the population isbased on easy availability and/or accessibility.I am using this sampling method because sample will be selected on thebasis of availability of the respondents who met the desired criteria.

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ANALYSIS
1) Participants proportion: CATEGORY Male Female TOTAL(50) 34 16 % 68 32

2) Occupation type: CATEGORY Self-employed Employed(private) Employed(government) 3) Income levels: CATEGORY <3 lakhs 3-5 lakhs 5-8 lakhs 8 lakhs and above TOTAL(50) 11 21 18 TOTAL(50) 21 20 6 3 % 22 42 36 % 42 40 12 6

GENDER * INCOME Cross tabulation INCOME

<3 lakhs 3-5 lakhs GENDER Total Male Female 13 8 21 15 5 20 5-8 lakhs 4 2 6 8 lakhs and above 2 1 3 Total 34 16 50

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EMPLOYEE * INCOME Cross tabulation

INCOME A EMPLOYEE Self-employed Employed(pvt) Employed(gvt) 0 13 8 21 b 8 4 8 20 c 3 1 2 6 D 0 3 0 3 Total 11 21 18 50

Total

GENDER * EMPLOYE E Cross tabulation

EMPLOYEE Self-employed GENDER Total Male Female 7 4 11 Employed(pvt) 14 7 21 Employed(gvt) 13 5 18 Total 34 16 50

GENDER *LOAN PERIOD Cross tabulation

LOAN PERIOD >1 year GENDER Total Male Female 9 2 11 1-3 years 8 3 11 3-5 years 6 3 9 >5 years 11 8 19 Total 34 16 50

4) Purpose of Visit: CATEGORY Deposit Enquiry Home Loan Enquiry Any other TOTAL(50) 8 30 12 % 16 60 24

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5) Knowledge about HDFC Ltd.CATEGORY Friends, relatives Internet Existing employees Other sources 6) Period of Loan: CATEGORY >1 year 1-3 years 3-5 years >5 years 7) Rate option: CATEGORY Fixed Floating Dual TOTAL(50) 13 33 4 % 26 66 8 TOTAL(50) 11 11 9 19 % 22 22 18 38 TOTAL(50) 23 0 13 14 % 46 0 26 28

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8) Schemes awareness: CATEGORY Trenching Conversion Prepayment Not aware 9) Loan from other banks: CATEGORY Yes No TOTAL(50) 38 12 % 76 24 TOTAL(50) 3 2 18 28 % 6 4 36 56

10) Awareness about value added services: CATEGORY


Life Insurance cover Home Insurance cover International credit card facility Not aware

TOTAL(50) 12 5 6
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% 24 10 12
54

11) Recommendation to others/ taking another loan from HDFC Ltd.: CATEGORY Yes No TOTAL(50) 35 15 % 70 30

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RELATION BETWEEN VARIOUS PARAMETERS


Statistical analysis has not provided any statistically significant correlations or regression for all variables. In this part, we will present the statistically significant correlations and regression that exist among the various factors examined in this research: y relation between SERVICES(independent variable) and RECOMMENDATION(dependent variable):

Frequencies:
Statistics: SERVICES
N Mean Median Mode Std. Deviation Variance Sum Valid Missing 50 0 17.86 17.50 16 5.383 28.980 893

Frequency Valid 9 11 12 13 14 15 16 17 18 19 20 21 22 23 25 27 28 31 33 Total 3 2 1 4 4 3 7 1 5 4 1 6 2 1 1 2 1 1 1 50

Percent 6.0 4.0 2.0 8.0 8.0 6.0 14.0 2.0 10.0 8.0 2.0 12.0 4.0 2.0 2.0 4.0 2.0 2.0 2.0 100.0

Valid Percent 6.0 4.0 2.0 8.0 8.0 6.0 14.0 2.0 10.0 8.0 2.0 12.0 4.0 2.0 2.0 4.0 2.0 2.0 2.0 100.0

Cumulative Percent 6.0 10.0 12.0 20.0 28.0 34.0 48.0 50.0 60.0 68.0 70.0 82.0 86.0 88.0 90.0 94.0 96.0 98.0 100.0

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Frequencies
Statistics: RECOMMENDATIONS
N Mean Median Mode Std. Deviation Variance Sum Valid Missing 50 0 1.70 2.00 2 .463 .214 85

Valid

N Y Total

Frequency 15 35 50

Percent 30.0 70.0 100.0

Valid Percent 30.0 70.0 100.0

Cumulative Percent 30.0 100.0

REGRESSION: Variables Entered/Removed (b)


Model 1 Variables Entered SERVICES(a) Variables Removed . Method Enter

Model Summary (b)


Change Statistics Model 1 R .427(a) R Square .182 Adjusted R Square .165 Std. Error of the Estimate .423 R Square Change .182 F Change 10.683 df1 1 df2 48 Sig. F Change .002

a Predictors: (Constant), SERVICES b Dependent Variable: RECOMMENDATIONS

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ANOVA (b)
Model 1 Regression Residual Total Sum of Squares 1.912 8.588 10.500 df 1 48 49 Mean Square 1.912 .179 F 10.683 Sig. .002(a)

a Predictors: (Constant), SERVICES b Dependent Variable: RECOMMENDATIONS

Coefficients (a)
Unstandardized Coefficients Model 1 (Constant)
SERVICES

Standardized Coefficients Beta -.427 t 11.258 -3.269 Sig. .000 .002

95% Confidence Interval for B Lower Bound 1.935 -.059 Upper Bound 2.776 -.014

B 2.355 -.037

Std. Error .209 .011

ANALYSIS: 1. The value of R2= .182, which shows that the relation between SERVICES(occupation) and
RECOMMENDATION is not strong enough. 2. Standard error = .423

3. The value of constantcoefficient (a) is = 2.355. 4. The value of variablecoefficient (b) is = -.037. 5. From ANOVA test we get: y SSR(sum square between rows/columns) = 1.912 y SSE(sum square error) = 8.588 y SST(sum square total) = 10.500 y MSR(mean square between rows) = 1.912 y MSE (mean square between error) = .179

y relation between PERIOD(independent variable) and RATE(dependent variable): Frequencies:


Statistics: PERIOD
N Mean Median Mode Std. Deviation Variance Sum Valid Missing 50 0 2.72 3.00 4 1.196 1.430 136

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Valid

a b c d Total

Frequency 11 11 9 19 50

Percent 22.0 22.0 18.0 38.0 100.0

Valid Percent 22.0 22.0 18.0 38.0 100.0

Cumulative Percent 22.0 44.0 62.0 100.0

Frequencies:
Statistics: RATE
N Mean Median Mode Std. Deviation Variance Sum Valid Missing 50 0 1.82 2.00 2 .560 .314 91

Valid

a b c Total

Frequency 13 33 4 50

Percent 26.0 66.0 8.0 100.0

Valid Percent 26.0 66.0 8.0 100.0

Cumulative Percent 26.0 92.0 100.0

RATE into NRATE Old Value a b c 1 2 3

New Value b

Value Label a c

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PERIOD into NPERIOD


Old Value a b c d 1 2 3 4 New Value a b c d Value Label

Regression:
Variables Entered/Removed (b)
Variables Entered NPERIOD(a) Variables Removed .

Model 1

Method Enter

a All requested variables entered. b Dependent Variable: NRATE

Model Summary

Model 1

R .046(a)
a Predictors: (Constant), NPERIOD

R Square .002

Adjusted R Square -.019

Std. Error of the Estimate .565

ANOVA(b)

Model 1

Regression Residual Total


a Predictors: (Constant), NPERIOD b Dependent Variable: NRATE

Sum of Squares .033 15.347 15.380

df 1 48 49

Mean Square .033 .320

F .103

Sig. .750(a)

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Coefficients(a)
Unstandardized Coefficients Model 1 B (Constant) NPERIOD 1.879 -.022 Std. Error .200 .068 Standardized Coefficients Beta -.046 t 9.378 -.321 Sig. .000 .750

ANALYSIS:
1) The value of R2= .002, which shows that the relation between SERVICES(occupation) and RECOMMENDATION is very weak. 2) Standard error = .565 3) The value of constant coefficient (a) is = 1.879. 4) The value of variable coefficient (b) is = -.022. 5) From ANOVA test we get: y SSR(sum square between rows/columns) = .033. y SSE(sum square error) = 15.347 y SST(sum square total) = 15.380 y MSR(mean square between rows) = .033 y MSE (mean square between error) = .320

y relation between INCOME(independent variable) and PERIOD(dependent variable): Frequencies


Statistics: INCOME
N Mean Median Mode Std. Deviation Variance Sum Valid Missing 50 0 1.82 2.00 1 .873 .763 91

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Valid

a b c d Total

Frequency 21 20 6 3 50

Percent 42.0 40.0 12.0 6.0 100.0

Valid Percent 42.0 40.0 12.0 6.0 100.0

Cumulative Percent 42.0 82.0 94.0 100.0

INCOME into NINCOME

Old Value
a b c d 1 2 3 4

New Value
a b c d

Value Label

Regression
Variables Entered/Removed(b)
Variables Removed .

Model 1

Variables Entered NINCOME(a)

Method Enter

a All requested variables entered. b Dependent Variable: NPERIOD

Model Summary

Model 1

R .244(a)
a Predictors: (Constant), NINCOME

R Square .059

Adjusted R Square .040

Std. Error of the Estimate 1.172

ANOVA(b)

Model 1

Regression Residual Total

Sum of Squares 4.167 65.913 70.080

df 1 48 49

Mean Square 4.167 1.373

F 3.034

Sig. .088(a)

a Predictors: (Constant), NINCOME b Dependent Variable: NPERIOD

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Coefficients(a)
Unstandardized Coefficients Model 1 (Constant) NINCOME
a Dependent Variable: NPERIOD

Standardized Coefficients Beta .244 t 5.470 1.742 Sig. .000 .088

B 2.112 .334

Std. Error .386 .192

ANALYSIS:
1) The value of R2= .059, which shows that the relation between SERVICES(occupation) and RECOMMENDATION is very weak. 2) Standard error = 1.172 3) The value of constant coefficient (a) is = 2.112. 4) The value of variable coefficient (b) is = .334. 5) From ANOVA test we get: y SSR(sum square between rows/columns) = 4.167 y SSE(sum square error) = 65.913 y SST(sum square total) = 70.080 y MSR(mean square between rows) = 4.167 y MSE (mean square between error) = 1.373

y relation between INCOME(independent variable) and RATE(dependent variable): Regression


Variables Entered/Removed(b)
Variables Entered NINCOME(a ) Variables Removed .

Model 1

Method Enter

a All requested variables entered. b Dependent Variable: NRATE

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Model Summary

Model 1

R .193(a)
a Predictors: (Constant), NINCOME

R Square .037

Adjusted R Square .017

Std. Error of the Estimate .555

ANOVA(b)
Sum of Squares Regression Residual Total
a Predictors: (Constant), NINCOME b Dependent Variable: NRATE

Model 1

df 1 48 49

Mean Square .571 .309

F 1.851

Sig. .180(a)

.571 14.809 15.380

Coefficients(a)
Unstandardized Coefficients Model 1 (Constant) NINCOME B 2.045 -.124 Std. Error .183 .091 Standardized Coefficients Beta -.193 t 11.171 -1.360 Sig. .000 .180

a Dependent Variable: NRATE

ANALYSIS:
1. The value of R2= .037, which shows that the relation between SERVICES(occupation) and RECOMMENDATION is very weak. 2. Standard error = .555 3. The value of constant coefficient (a) is = 2.045. 4. The value of variable coefficient (b) is = -.124. 5. From ANOVA test we get: y SSR(sum square between rows/columns) = .571 y SSE(sum square error) = 14.809 y SST(sum square total) = 14.380 y MSR(mean square between rows) = .571 y MSE (mean square between error) = .309

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SPSS ANALYSIS OF FACTOR


Correlation Matrix(a) PROP_FIN Correlation PROP_FIN REP_MOD DISB_TIM TRANSPCY LOCATION KYC FLEXIBIL BEHAVIO U TOP_UP Sig.(1-tailed) PROP_FIN REP_MOD DISB_TIM TRANSPCY LOCATION KYC FLEXIBIL BEHAVIO U TOP_UP 0.000 0.000 0.009 0.000 0.000 0.000 0.000 0.001 0.014 0.015 0.079 0.016 0.001 0.003 0.000 0.000 0.004 0.002 0.000 0.003 0.000 0.000 0.000 0.000 0.002 0.000 0.001 0.000 1.000 0.543 0.697 0.333 0.503 0.576 0.538 0.595 REP_MOD 0.543 1.000 0.439 0.310 0.309 0.202 0.305 0.441 DISB_TIM 0.697 0.439 1.000 0.388 0.461 0.530 0.372 0.407 TRANSPCY 0.333 0.310 0.388 1.000 0.502 0.381 0.706 0.617 LOCATION 0.503 0.309 0.461 0.502 1.000 0.472 0.482 0.408 KYC FLEXIBIL BEHAVIOU 0.595 0.441 0.407 0.617 0.408 0.422 0.800 1.000 TOP_UP 0.422 0.238 0.525 0.285 0.503 0.451 0.382 0.450

0.576 0.538 0.202 0.305 0.530 0.372 0.381 0.706 0.472 0.482 1.000 0.564 0.564 1.000 0.422 0.800

0.422

0.238 0.000

0.525 0.000 0.001

0.285 0.009 0.014 0.003

0.503 0.000 0.015 0.000 0.000

0.451 0.382 0.000 0.000 0.079 0.016 0.000 0.004 0.003 0.000 0.000 0.000 0.000

0.450 0.000 0.001 0.002 0.000 0.002 0.001 0.000

1.000 0.001 0.048 0.000 0.022 0.000 0.001 0.003 0.001

0.001

0.048

0.000

0.022

0.000

0.001 0.003

0.001

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Step 1 preliminary analysis:

The top half of this table contains the Pearson correlation coefficient between all pairs of questions whereas the bottom half contains the one-tailed significance of these coefficients. This correlation matrix is used to check the pattern of relationships. Significance values are scanned and any variable for which the majority of values are greater than 0.05 are looked for. Then scanning of the correlation coefficients is done any value greater than 0.9 is looked for. The values are hence checked and it is found that no value is greater than the above tabulated value. Therefore the problem of singularity does not exist. y Step 2the Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett's test of Sphericity:

KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure... Bartlett's Test of Sphericity Approx. Chi-Square df Sig.Bartlett 0.782 235.799 36 0.000

The KMO statistic varies between 0 and 1. A value of 0indicates that the sum of partial correlations is large relative to the Kaiser-Meyer-Olkin Measure of Sampling Adequacy.sum of correlations, indicating diffusion in the pattern of correlations (hence, factor analysis is likely to be inappropriate). A value close to 1 indicates that patterns of correlations are relatively compact and so factor analysis should yield distinct and reliable factors. The values between.07to0.8 are considered good as per our analysis; the value is 0.782 which is good. Hence it is confirmed that factor analysis is appropriate for this data. The significance of barletts test should be less than 0.05 hence it is again proved that the test is consistent.

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Step 3 Extraction of factors:

In the above table the first column shows us the initial eigen values. The first factor shows us the eigen value in the terms of percentage of variance explained. The spss then extracts the factors whose eign values are greater than one based on which two of the factors are extracted. In the third column rotated sum of squares of the factor loading is shown. The percentage of variance in this is reduced because of optimization of factors. Step 4 Table of Communalities:

Communalities Initial PROP_FIN REP_MOD DISB_TIM TRANSPCY LOCATION KYC FLEXIBIL BEHAVIOU TOP_UP 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 1.000 Extraction 0.748 0.370 0.755 0.764 0.508 0.523 0.876 0.764 0.498 TRUE FALSE TRUE TRUE FALSE FALSE TRUE TRUE FALSE

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Component Matrix(a) Component 1 FLEXIBIL PROP_FIN BEHAVIOU DISB_TIM KYC LOCATION TRANSPCY TOP_UP REP_MOD 0.807 0.806 0.801 0.739 0.713 0.711 0.699 0.647 0.563 -0.525 0.457 2 -0.474

The SPSS has extracted two of the factors however it is statistical tool and we have to judge by our self as to what factors are important and what are to be left out. Based on thumb rule we are considering the factors having value above 0.7 are marked as true and they are recommended to the management.

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LIMITATIONS
Every study conducted may have certain shortcomings and unfortunately mine is also a similar case. A few errors have crept in despite mine best efforts to avoid them but it is expected that still mine study and findings are very much relevant. y An error may have been due to the samples taken not conforming to the actual population; this is because the sample was a convenience sample. y y Certain questions which are not properly responded by the Respondents. Personal bias or personal error of the interviewer might also have crept in, some cases, while interpreting the respondents. y There are several customers who dont show proper interest in filling the questioner as they feel that they wont get any benefit after filling the questioners and its just a waste of time for them.

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RECOMMENDATIONS AND SUGESSTIONS


y To satisfy their customers and for good dealings in future, the HDFC LTD should make prompt disbursement of loan amount to the customers so that they can buy or construct their dream home as early as possible.. y The HDFC LTD should use easy procedure or say, less lengthy procedure for the sanctioning of loan to the customer. There should be less number of legal formalities, in case this exists, then, these should be completed in less time. This will be helpful in attracting more customers. y y Company should enter into tie ups with reputed builders and development authorities. HDFC should increase their reach by penetrating into rural and semi urban areas .They should also capitalize on present customer base by generating referrals .

y
y

Aggressive marketing and great publicity through newspapers, hoarding, websites and other medias should be done. Restriction to be reduced to bare minimum for loan advances and for repayment. For e.g. offer long-term repayment facilities and have no age restriction to choosing repayment. The maximum age for repayment could be increase to 65-70 years of age. Such facility will help grow fast retail segment of the bank. Offer multiple repayment loans. Service class to be exploited by offering special reduced rates and linking the repayment from the source from where the pay-cheque to the employee is issued. This needs to undergo special contract with government organization to ensure implementation.

y y

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BIBLIOGRAPHY

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ANNEXURE
QUESTIONNAIRE HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED SECTOR 8, CHANDIGARH

Good Morning Mam/Sir, We are summer trainees doing our summer industrial training at HDFC Limited. As a part of our project we would like to get some valuable information. On behalf of HDFC Limited, I want to thank you for giving us the opportunity to serve you. Please help us in filling up the questionnaire so that we can serve you to the best of our abilities. This information will help us to further improve our products and will give us a feedback on our service standards. SPECIAL INSTRUCTIONS:The object of this study is to collect primary data from the respondents on the above subject purely for the fulfillment of the requirements of the institution. Following pages contain number of questions on various aspects. Each question carries a number of alternatives. Please read the question carefully and indicate your attitude by marking () in the check box of alternative that is more appropriate for you. There are no rights or wrong answers. Please answer all the questions without omitting any. Your answers shall be treated as STRICTLY CONFIDENTIAL.

Name: -_______________________________________________________________________ Contact no.:- ________________________ Email: -_______________________________________________________________________

Occupation: Self-Employed

Employed (Private)

Employed (Government) Annual income:<3 lakhs 5-8 lakhs 3-5 lakhs 8 lakhs and above

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Q1.Purpose of Visit: Deposit Enquiry Any other Q2.How did you come to know about HDFC Ltd.? From friends, relatives From existing employees From internet Other sources Home Loan Enquiry

Q3.How long have you been availing services of HDFC Ltd? Less than a year 3-5 years 1 -3 years Above 5 years

Q4.Which rate of interest scheme you prefer for housing loan? Fixed Floating Dual

Q5.Which of the following schemes of loans you are familiar with Trenching Prepayment Q6.Have you ever taken a HOME loan from any other bank? No Yes (.>) name of the bank Q7.Are you aware of the following value added schemes provided by HDFC? If yes, else otherwise, NOLife Insurance cover Home Insurance cover Conversion Tick if not aware

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International credit card facility Q8.Will you take another loan from HDFC in future or will you recommend our services to someone? Yes No

Q9.How will you rate the following services of HDFC on a scale of 5: Factor 1(Very good) 2(good) 3(average) 4(bad) 5(below expected level)

Proportion of Financing

Repayment mode Time taken for disbursement Information delivery/ transparency of the process

Location acceptance KYC norms Flexibility in work procedures Behavior of the staff

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Top up loan

Q10.In what areas HDFC is better than others :( if YES; else BLANK) Factors/Banks Prepayment charges Proportion of Financing Time taken for disbursement Processing fees Transparency of procedure Location acceptance Top up Loan Telephone/ internet services Flexibility in Work Procedure Reputation of the institution Employee courtesy Promotion strategy SBI ICICI AXIS IDBI

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Interest Rate Pay-back period

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