A

Project Study Report

On
“Comparative Analysis of Personal Loans, Policies and
procedure In Banks”

Submitted in partial fulfillment for the

Award of degree of

Master of Business Administration

Submitted By: - Submitted To:-

Vaibhav Hada Miss Shikha Bansal

MBA Part -II ( Asst. Professor)

2008-2010

OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH, KOTA

(Affiliated to Rajasthan Technical University, Kota)
 OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH

(Affiliated to Rajasthan Technical University, Kota, Approved by All India Council

for Technical Education – Government of India and Sponsored by Om kothari

Foundation, Kota)

CERTIFICATE

This is to certify that Mr. Vaibhav Hada a student of MBA – II Year at Om Kothari Institute of
Management & research has completed Project Study Report entitled “Comparative Analysis
Of Personal Loans , Policies and Procedure in Banks, Kota “. The project has been
completed after studying for two year in MBA course and for partially fulfilling the requirements
for awards of degree of Master of Business Administration of Rajasthan Technical University,
Kota.

The Project Study Report has been completed under the guidance of “Miss Shikha Bansal” of
OKIM&R and is as per norms and guidelines provided.

Prof. Mukesh Jain Miss. Shikha Bansal

Principle Academic Guide

Kota

Date:

A – 1, special I.P.I.A. Jhalawar road, Kota – 324005

Phone: 0744-2490878, 2490402, E-mail: okimr@rediffmail.com

Fax: 0744-2438069
 OM KOTHARI INSTITUTE OF MANAGEMENT & RESEARCH

(Affiliated to Rajasthan Technical University, Kota, Approved by All India Council

for Technical Education – Government of India and Sponsored by Om kothari

Foundation, Kota)

CERTIFICATE

This is to certify that Mr Vaibhav Hada a student of MBA – II Year at Om Kothari Institute of
Management & research has completed Project Study Report entitled “Comparative Analysis
Of Personal Loans , Policies and Procedure in Banks, KOTA“. The project has been
completed after studying for two year in MBA course and for partially fulfilling the requirements
for awards of degree of Master of Business Administration of Rajasthan Technical University,
Kota.

The Project Study Report has been evaluated and viva – voce conducted by the undersigned
panel of examiners. The Project has been found Satisfactory and is recommended for
acceptance.

Prof. Prof.

Internal Examiner External Examiner

Kota

Date:

A – 1, special I.P.I.A. Jhalawar road, Kota – 324005

Phone: 0744-2490878, 2490402, E-mail: okimr@rediffmail.com

Fax: 0744-2438069
 PREFACE
Classroom teaching helps the student by making conceptual base clear, but on the project study
is a way, which helps the students to get the applied knowledge of the concept. Normally the
students are not aware of the actual requirement of practical field, keeping in view this fact; a
system of project study has been established to make the students acquainted of actual
difficulties that are to be faced in the demanding corporate sector.

A project study report has given me a great experience .I was required to prepare a report on
the topic “Comparative Analysis Of Personal Loans , Policies and Procedure in Banks”.
The managers of marketing department helped me a lot to prepare this report.

Financial institution with their role as a mobilizer of the community’s saving and a
channelizer of these savings into productive outlets play a crucial role in the economic
development of the country.The important of the financial institutions can hardly be over
emphasized in the growing internationalization on Indian business at very rapid pace in
recent few years following the government policy of economic liberalization and
globalization coupled with depending technology and fierce competition.

In, fact financial institutions are categorized broadly into two groups Money market and
Capital market.Capital market comprises institutions which grant long-term loans and
invest in securities in different forms for different industrial purposes.

In this way, lending is one of the two principle functions of commercial banks not only
because of their social obligation to cater to the credit needs but also because lending is
the most profitable for the interest rates realized on business loans.

Loans are provided in a variety of ways to different sections of the economy according
to the form security, maturity, method of repayment origin and purpose. An
understanding of different winds of loans would provide an insight into the lending
activities of banks.
 DECLARATION

I hereby declare that the project entitled “Comparative Analysis Of Personal

Loans, Policies and Procedure in Banks, KOTA” Submitted in partial
fulfillment of the requirement for the degree of Master of Business
Administration (MBA)
To Rajasthan technical University, Kota,
Is my original work and is not submitted to any other degree, diploma, fellowship
or other similar title or prizes.
The project has been individually carried out as a part of project period and is
meant for academic purpose only.

VAIBHAV HADA
MBA –II YEAR
( )
ACKNOWLEDGEMENT

I take this opportunity to express my gratitude and thanks to all those who help me in various
ways in successful completion of my project report.

I am thankful to Prof. Mukesh Jain (Principle, Om Kothari Institute of management & Research,
Kota) to provide me opportunity to do this project.

I express my sincere thanks to my project guide, Miss Shikha Bansal Asst. Professor
Marketing, Department for guiding me right from the inception till the successful
completion of the project. I sincerely acknowledge her for extending their valuable
guidance, support for literature, critical reviews of project and the report and above all
the moral support she had provided to me with all stages of this project.
Above all, I am very thankful to my family and friends whose support makes me
possible to complete the research work successfully.

( )

VAIBHAV HADA
 Contents
I. CERTIFICATE
II. PREFACE
III. ACKNOWLEDGEMENT
IV. EXECUTIVE SUMMARY

PAGE
CHAPTER NO. CHAPTER NAME
NO.

Chapter 1 Company Profile

1-39

Chapter 2 Conceptual Framework

40-71

Chapter 3 Research Methodology

72-78

Chapter 4 Data Analysis and Interpretation

79-90

Chapter 5 Findings Conclusions

91

Chapter 6 Conclusions
92

Chapter 7 Recommendations and Suggestion

93

• Annexure
• Bibliography
 COMPANY PROFILE OF ICICI BANK
About Us

ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28 billion (US$
77 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion (US$ 648.8 million)
for the nine months ended December 31, 2009. The Bank has a network of 1,694
branches and about 4,883 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 specialised
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).

Board Members

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar.
Mr. Homi R. Khusrokhan
Mr. Lakshmi N. Mittal

Mr. Narendra Murkumbi

Dr. Anup K. Pujari
Mr. Anupam Puri
Mr. M.S. Ramachandran
Mr. M.K. Sharma
Mr. V. Sridar
Prof. Marti G. Subrahmanyam
Mr. V. Prem Watsa
Ms.ChandaKochhar,
Managing Director & CEO

Mr.SandeepBakhshi,
Deputy Managing Director..
Mr.NS.Kannan,
Executive Director & CFO
Mr.KRamkumar,
Executive Director

Mr.SonjoyChatterjee,
Executive Director

Investor Relations
ICICI Bank disseminates information on its operations and initiatives on a regular basis.
The ICICI Bank website serves as a key investor awareness facility, allowing
stakeholders to access information on ICICI Bank at their convenience. ICICI Bank's
dedicated investor relations personnel play a proactive role in disseminating information
to both analysts and investors and respond to specific queries

Awards-2009
Awards

2009 2008 2007 2006 2005 2004 2003

2002 2001 2000 1999 1998 Erstwhile ICICI Ltd

ICICI Bank
• For the third year in a row ICICI Bank has won The Asset Triple A Country
Awards for Best Domestic Bank in India
• ICICI Bank won the Most Admired Knowledge Enterprises (MAKE) India 2009
Award. ICICI Bank won the first place in "Maximizing Enterprise Intellectual
Capital" category, October 28, 2009
• Ms Chanda Kochhar, MD and CEO was awarded with the Indian Business
Women Leadership Award at NDTV Profit Business Leadership Awards ,
October 26, 2009.
• ICICI Bank received two awards in CNBC Awaaz Consumer Awards; one for the
most preferred auto loan and the other for most preferred credit Card, on
September 30, 2009
• Ms. Chanda Kochhar, Managing Director & CEO ranked in the top 20 of the
World's 100 Most Powerful Women list compiled by Forbes, August 2009
• Financial Express at its FE India's Best Banks Awards, honoured Mr. K.V.
Kamath, Chairman with the Lifetime Achievement Award , July 25, 2009
• ICICI Bank won Asset Triple A Investment Awards for the Best Derivative House,
India. In addition ICICI Bank were Highly commended , Local Currency
Structured product, India for 1.5 year ADR GDR linked Range Accrual Note., July
2009
• ICICI bank won in three categories at World finance Banking awards on June 16,
2009

Best NRI Services bank

Excellence in Private Banking, APAC Region

Excellence in Remittance Business, APAC Region
• ICICI Bank Mobile Banking was adjudged "Best Bank Award for Initiatives in
Mobile Payments and Banking" by IDRBT, on May 18, 2009 in Hyderabad.
• ICICI Bank's b2 branchfree banking was adjudged "Best E-Banking Project
Implementation Award 2008" by The Asian Banker, on May 11, 2009 at the
China World Hotel in Beijing.
• ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun &
Bradstreet Banking awards 2009.
• ICICI Bank NRI services wins the "Excellence in Business Model Innovation
Award" in the eighth Asian Banker Excellence in Retail Financial Services
Awards Programme.
• ICICI Bank's Rural Micro Banking and Agri-Business Group wins WOW Event &
Experiential Marketing Award in two categories - "Rural Marketing programme of
the year" and "Small Budget On Ground Promotion of the Year". These awards
were given for Cattle Loan 'Kamdhenu Campaign' and "Talkies on the move
campaign' respectively.
• ICICI Bank's Germany Branch has been certified by "Stiftung Warrentest". ICICI
Bank is ranked 2nd amongst 57 savings products across 19 banks
• ICICI Bank Germany won the yearly banking test of the investor magazine €uro
in the "call money"category.
• The ICICI Bank was awarded the runner's up position in Gartner Business
Intelligence and Excellence Award for Asia Pacific for its Business Intelligence
functions.
• ICICI Bank's Organisational Excellence Group was recently awarded ISO
9001:2008 certification by TUV Nord. The scope of certification comprised
processes around consulting and capability building on methods of quality &
improvements.
• ICICI Bank has been awarded the following titles under The Asset Triple A
Country Awards for 2009:

Best Transaction Bank in India

Best Trade Finance Bank in India

Best Cash Management Bank in India

Best Domestic Custodian in India

ICICI Bank has bagged the Best Cash Management Bank in India award for the
second year in a row. The other awards have been bagged for the third year in a
row.

• ICICI Bank Canada received the prestigious Canadian Helen Keller Award at the
Canadian Helen Keller Centre's Fifth Annual Luncheon in Toronto. The award
 was given to ICICI Bank its long-standing support to this unique training centre
for people who are deaf-blind.

ICICI Bank Milestone

1955

• The Industrial Credit and Investment Corporation of India Limited (ICICI)

incorporated at the initiative of the World Bank, the Government of India and
representatives of Indian industry, with the objective of creating a development
financial institution for providing medium-term and long-term project financing to
Indian businesses. Mr.A.Ramaswami Mudaliar elected as the first Chairman of
ICICI Limited.

• ICICI emerges as the major source of foreign currency loans to Indian industry.
Besides funding from the World Bank and other multi-lateral agencies, ICICI was
also among the first Indian companies to raise funds from international markets.

1956

• ICICI declared its first dividend of 3.5%.

1958

• Mr.G.L.Mehta appointed the second Chairman of ICICI Ltd.

1960

• ICICI building at 163, Backbay Reclamation, inaugurated.

1961

• The first West German loan of DM 5 million from Kredianstalt obtained.

1967
• ICICI made its first debenture issue for Rs.6 crore, which was oversubscribed.

1969

• The first two regional offices in Calcutta and Madras set up.

1972

• The second entity in India to set up merchant banking services.

• Mr. H. T. Parekh appointed the third Chairman of ICICI.

1977

• ICICI sponsored the formation of Housing Development Finance Corporation.

Managed its first equity public issue.

1978

• Mr. James Raj appointed the fourth Chairman of ICICI.

1979

• Mr.Siddharth Mehta appointed the fifth Chairman of ICICI.

1982

• 1982 : ICICI became the first ever Indian borrower to raise European Currency
Units.
• ICICI commences leasing business.

1984

• Mr. S. Nadkarni appointed the sixth Chairman of ICICI.

 1985

• Mr. N.Vaghul appointed the seventh Chairman and Managing Director of ICICI.

1986

• ICICI became the first Indian institution to receive ADB Loans.

• ICICI, along with UTI, set up Credit Rating Information Services of India Limited,
India's first professional credit rating agency.

• ICICI promotes Shipping Credit and Investment Company of India Limited.

• The Corporation made a public issue of Swiss Franc 75 million in Switzerland,

the first public issue by any Indian entity in the Swiss Capital Market.

1987

• ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in
India.

1988

• Promoted TDICI - India's first venture capital company.

1993

• ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan
set up.

• ICICI Asset Management Company set up.

1994
• ICICI Bank set up.

1996

• ICICI Ltd became the first company in the Indian financial sector to raise GDR.
• SCICI merged with ICICI Ltd.
• Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.

1997

• ICICI Ltd was the first intermediary to move away from single prime rate to three-
tier prime rates structure and introduced yield-curve based pricing.

• The name The Industrial Credit and Investment Corporation of India Ltd changed
to ICICI Ltd.

• ICICI Ltd announced the takeover of ITC Classic Finance.

1998

• Introduced the new logo symbolizing a common corporate identity for the ICICI
Group.

• ICICI announced takeover of Anagram Finance.

1999

• ICICI launched retail finance - car loans, house loans and loans for consumer
durables.
• ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.

2000
• ICICI Bank became the first commercial bank from India to list its stock on NYSE.

• ICICI Bank announces merger with Bank of Madura.

2001

• The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI
Bank.

2002

• ICICI Ltd merged with ICICI Bank Ltd to create India’s secondlargest bank in
terms of assets.

• ICICI assigned higher than sovereign rating by Moody’s.

• ICICI Bank launched India’s first CDO (Collateralised Debt Obligation) Fund
named Indian Corporate Collateralised Debt Obligation Fund (ICCDO Fund).

• "E Lobby", a self-service banking centre inaugurated in Pune. It was the first of
its kind in India.
• ICICI Bank launched Private Banking.

• 1100-seat Call Centre set up in Hyderabad.

• ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the country, launched in Pune.

• ATM-on-Wheels, India’s first mobile ATM, launched in Mumbai.

2003

• The first Integrated Currency Management Centre launched in Pune.

• ICICI Bank announced the setting up of its first ever offshore branch in
Singapore.
• The first offshore banking unit (OBU) at Seepz Special Economic Zone, Mumbai,
launched.

• ICICI Bank’s representative office inaugurated in Dubai.

• Representative office set up in China: ICICI Bank’s UK subsidiary launched.

• India’s first ever "Visa Mini Credit Card", a 43% smaller credit card in dimensions
launched.

• ICICI Bank subsidiary set up in Canada.

• Temasek Holdings acquired 5.2% stake in ICICI Bank.

• ICICI Bank became the market leader in retail credit in India.

2004

• Max Money, a home loan product that offers the dual benefit of higher eligibility
and affordability to a customer, introduced.

• Mobile banking service in India launched in association with Reliance Infocomm.

• India’s first multi-branded credit card with HPCL and Airtel launched.

• Kisan Loan Card and innovative, low-cost ATMs in rural India launched.

• ICICI Bank and CNBC TV 18 announced India’s first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of
Small and Medium Enterprises to the growth of Indian economy.

• ICICI Bank opened its 500th branch in India.

• ICICI Bank introduced partnership model wherein ICICI Bank would forge an
alliance with existing micro finance institutions (MFIs).
• The MFI would undertake the promotional role of identifying, training and
promoting the micro-finance clients and ICICI Bank would finance the clients
directly on the recommendation of the MFI.

• ICICI Bank introduced 8-8 Banking wherein all the branches of the Bank would
remain open from 8a.m. to 8 p.m. from Monday to Saturday.

• ICICI Bank introduced the concept of floating rate for home loans in India.

2005

• First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.

• "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit
Cards were waived off.

• ICICI Bank and Visa jointly launched mChq – a revolutionary credit card on the
mobile phone.

• Private Banking Masters 2005, a nationwide Golf tournament for high networth
clients of the private banking division launched. This event is the largest
domestic invitation amateur golf event conducted in India.

• First Indian company to make a simultaneous equity offering of $1.8 billion in

India, the United States and Japan.

• Acquired IvestitsionnoKreditny Bank of Russia.

• ICICI Bank became the largest bank in India in terms of its market capitalization.

• ICICI Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer.

2006
• ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in
the international markets. ICICI Bank subsidiary set up in Russia.

• Introduced a new product - ‘NRI smart save Deposits’ – a unique fixed deposit
scheme for nonresident Indians.

• Representative offices opened in Thailand, Indonesia and Malaysia.

• ICICI Bank became the largest retail player in the market to introduce a biometric
enabled smart card that allows banking transactions to be conducted on the field.
A low-cost solution, this became an effective delivery option for ICICI Bank’s
micro finance institution partners.

• Financial counseling centre Disha launched. Disha provides free credit

counseling, financial planning and debt management services.

• Bhoomi puja conducted for a regional hub in Hyderabad, Andhra Pradesh.

2007

• ICICI Bank‘s USD 2 billion 3-tranche international bond offering was the largest
bond offering by an Indian bank.

• Sangli Bank amalgamated with ICICI Bank.

• ICICI Bank raised Rs 20,000 crore (approx $5 billion) from both domestic and
international markets through a follow-on public offer.

• ICICI Bank’s GBP 350 million international bond offering marked the inaugural
deal in the sterling market from an Indian issuer and also the largest deal in the
sterling market from Asia.

• Launched India’s first ever jewellery card in association with jewelry major
Gitanjali Group.
• ICICI Bank became the first bank in India to launch a premium credit card -- The
Visa Signature Credit Card.

• Foundation stone laid for a regional hub in Gandhinagar, Gujarat.

• Introduced SME Toolkit, an online resource centre, to help small and medium
enterprises start, finance and grow their business.

• ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.

• ICICI Bank became the first private bank in India to offer both floating and fixed
rate on car loans, commercial vehicles loans, construction equipment loans and
professional equipment loans.

• In a first of its kind, nation wide initiative to attract bright graduate students to
pursue a career in banking, ICICI Bank launched the "Probationary Officer
Programme".

• Launched Bank@home services for all savings and current a/c customers
residing in India.

• ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

2008

• ICICI Bank enters US, launches its first branch in New York.

• ICICI Bank enters Germany, opens its first branch in Frankfurt.

• ICICI Bank launched iMobile, a breakthrough innovation in banking where

practically all internet banking transactions can now be simply done on mobile
phones.

• ICICI Bank concluded India's largest ever securitization transaction of a pool of

retail loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion)
 in a multi-tranche issue backed by four different asset categories. It is also the
largest deal in Asia (ex-Japan) in 2008 till date and the second largest deal in
Asia (ex-Japan & Australia) since the beginning of 2007.

• ICICI Bank launches ICICIACTIVE - Banking Interactive Service - along with

DISHTV, which will allow viewers to see information about the Bank's products
and services and contact details on their DISHTV screens.

• ICICI Bank and British Airways launch co-branded credit card, which is designed
to earn accelerated reward points to the card holders with every British Airways
flight or by spending on everyday purchases.

• ICICI Bank Board appoints Mr K. V. Kamath as non-executive Chairman and Ms

Chanda Kochhar as Managing Director & CEO effective May 1, 2009, while the
existing non-executive Chairman Mr N Vaghul retires after completing his term
on April 30, 2009.

2009

• ICICI bank ties up with BSNL Cell One for bill payments, it will facilitate bill
payment for BSNL Cell One users throughwww.icicibank.com across all the 27
circles of BSNL.

• ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed an
agreement on Export Credit Line totaling up to US$100 million with the Japan
Bank for International Cooperation (JBIC) which constitutes the international wing
of Japan Finance Corporation.

• ICICI Bank Limited acting through its Hong Kong Branch (ICICI Bank) signed a
loan agreement with the Export-Import Bank of China (China Exim) for USD 98
million under the Two- step Buyer Credit (Export Credit) arrangement. ICICI Bank
is the first Indian Bank to have entered into this arrangement with China Exim.
 • ICICI Bank with Singapore Airlines launched "ICICI Bank Singapore Airlines Visa
Platinum Credit Card", the Card has exclusive privileges especially designed for
the members.

• ICICI Bank announced an association with mChek, India's leading mobile

payment solutions provider, to facilitate mChek services to all ICICI Bank Debit
and Credit Card customers. These are electronic cards issued to the customers
with mChek application on their mobile phone.

• Ms Chanda Kochhar takes charge as the Managing Director & CEO of ICICI
Bank from May 1, 2009.

COMPANY PROFILE OF HDFC BANK

HDFC Bank

Housing Development Finance Corporation Limited, more popularly known as HDFC

Bank Ltd, was established in the year 1994, as a part of the liberalization of the Indian
Banking Industry by Reserve Bank of India (RBI). It was one of the first banks to receive
an 'in principle' approval from RBI, for setting up a bank in the private sector. The bank
was incorporated with the name 'HDFC Bank Limited', with its registered office in
Mumbai. The following year, it started its operations as a Scheduled Commercial Bank.
Today, the bank boasts of as many as 1412 branches and over 3275 ATMs across
India.

HDFC Bank Ltd. (BSE: 500180, NYSE: HDB) is a commercial bank of India,
incorporated in August 1994, after the Reserve Bank of India allowed establishing
private sector banks. The Bank was promoted by the Housing Development Finance
Corporation, a premier housing finance company (set up in 1977) of India. HDFC Bank
has 1,412 branches and over 3,295 ATMs, in 528 cities in India, and all branches of the
bank are linked on an online real-time basis. As of September 30, 2008 the bank had
total assets of INR 1006.82 billion. For the fiscal year 2008-09, the bank has reported
net profit of Rs.2,244.9 crore, up 41% from the previous fiscal. Total annual earnings of
the bank increased by 58% reaching at Rs.19,622.8 crore in 2008-09.

History

HDFC Bank was incorporated in the year of 1994 by Housing Development Finance
Corporation Limited (HDFC), India's premier housing finance company. It was among
the first companies to receive an 'in principle' approval from the Reserve Bank of India
(RBI) to set up a bank in the private sector.The Bank commenced its operations as a
Scheduled Commercial Bank in January 1995 with the help of RBI's liberalization
policies.

In a milestone transaction in the Indian banking industry, Times Bank Limited (promoted
by Bennett, Coleman & Co. / Times Group) was merged with HDFC Bank Ltd., in 2000.
This was the first merger of two private banks in India. As per the scheme of
amalgamation approved by the shareholders of both banks and the Reserve Bank of
India, shareholders of Times Bank received 1 share of HDFC Bank for every 5.75
shares of Times Bank.

In 2008 HDFC Bank acquired Centurion Bank of Punjab taking its total branches to
more than 1,000. The amalgamated bank emerged with a strong deposit base of around
Rs. 1,22,000 crore and net advances of around Rs. 89,000 crore. The balance sheet
size of the combined entity is over Rs. 1,63,000 crore. The amalgamation added
significant value to HDFC Bank in terms of increased branch network, geographic
reach, and customer base, and a bigger pool of skilled manpower.

Business Focus

HDFC Bank deals with three key business segments – Wholesale Banking Services,
Retail Banking Services, Treasury. It has entered the banking consortia of over 50
corporates for providing working capital finance, trade services, corporate finance and
merchant banking. It is also providing sophisticated product structures in areas of
foreign exchange and derivatives, money markets and debt trading and equity research.

Wholesale Banking Services

The Bank's target market ranges from large, blue-chip manufacturing companies in the
Indian corp to small & mid-sized corporates and agri-based businesses. For these
customers, the Bank provides a wide range of commercial and transactional banking
services, including working capital finance, trade services, transactional services, cash
management, etc. The bank is also a leading provider of structured solutions, which
combine cash management services with vendor and distributor finance for facilitating
superior supply chain management for its corporate customers. HDFC Bank has made
significant inroads into the banking consortia of a number of leading Indian corporate
including multinationals, companies from the domestic business houses and prime
public sector companies. It is recognized as a leading provider of cash management
and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and
delivered to customers through the growing branch network, as well as through
alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile
Banking.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the Mastercard Maestro debit card as
well. The Bank launched its credit card business in late 2001. By March 2009, the bank
had a total card base (debit and credit cards) of over 13 million. The Bank is also one of
the leading players in the “merchant acquiring” business with over 70,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments. The
Bank is well positioned as a leader in various net based B2C opportunities including a
wide range of internet banking services for Fixed Deposits, Loans, Bill Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. These
services are provided through the bank's Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market
risk on this investment portfolio.

Distribution Network

An HDFC Bank Branch

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1,725 branches
spread in 771 cities across India. All branches are linked on an online real-time basis.
Customers in over 500 locations are also serviced through Telephone Banking. The
Bank has a presence in all major industrial and commercial centres across the country.
Being a clearing/settlement bank to various leading stock exchanges, the Bank has
branches in the centres where the NSE/BSE have a strong and active member base.

The Bank also has 3,898 networked ATMs across these cities. Moreover, HDFC Bank's
ATM network can be accessed by all domestic and international Visa/MasterCard, Visa
Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders

Tech-Savvy HDFC Bank has always prided itself on a highly automated environment,
be it in terms of information technology or communication systems. All the braches of
the bank boast of online connectivity with the other, ensuring speedy funds transfer for
the clients. At the same time, the bank's branch network and Automated Teller
Machines (ATMs) allow multi-branch access to retail clients. The bank makes use of its
up-to-date technology, along with market position and expertise, to create a competitive
advantage and build market share.

Capital Structure At present, HDFC Bank boasts of an authorized capital of Rs 550

crore (Rs5.5 billion), of this the paid-up amount is Rs 424.6 crore (Rs.4.2 billion). In
terms of equity share, the HDFC Group holds 19.4%. Foreign Institutional Investors
(FIIs) have around 28% of the equity and about 17.6% is held by the ADS Depository (in
respect of the bank's American Depository Shares (ADS) Issue). The bank has about
570,000 shareholders. Its shares find a listing on the Stock Exchange, Mumbai and
National Stock Exchange, while its American Depository Shares are listed on the New
York Stock Exchange (NYSE), unde rthe symbol 'HDB'. Products &Services

Personal Banking

• Savings Accounts
• Salary Accounts
• Current Accounts
• Fixed Deposits
• Demat Account
 • Safe Deposit Lockers
• Loans
• Credit Cards
• Debit Cards
• Prepaid Cards
• Investments & Insurance
• Forex Services
• Payment Services
• NetBanking
• InstaAlerts
• MobileBanking
• InstaQuery
• ATM
• PhoneBanking

NRI Banking

• Rupee Savings Accounts

• Rupee Current Accounts
• Rupee Fixed Deposits
• Foreign Currency Deposits
• Accounts for Returning Indians
• Cheque LockBox
• Telegraphic / Wire Transfer
• Funds Transfer through Cheques / DDs / TCs
• Mutual Funds
• Private Banking
• Portfolio Investment Schemes
• Loans
• Payment Services
• NetBanking
• InstaAlerts
 • MobileBanking
• InstaQuery
• ATM
• PhoneBanking

Head Office HDFC Bank Ramon House,169,Backbay Reclamation, HT Zarekh Marg,

Churchgate Mumbai – 400020 Phone: +91 (22 ) 66316000 ,66636000 ,66316060
Fax: +91(22)22048834 Website: www.hdfc.com

COMPANY PROFILE OF PNB BANK

Heritage

Established in 1895 at Lahore, undivided India, Punjab National Bank (PNB) has the distinction
of being the first Indian bank to have been started solely with Indian capital.The bank was
nationalised in July 1969 along with 13 other banks. From its modest beginning, the bank has
grown in size and stature to become a front-line banking institution in India at present.

A professionally managed bank with a successful track record of over 110 years.

Largest branch network in India - 4525 Offices including 432 Extension Counters spread
throughout the country.

Strategic business area covers the large Indo-Gangetic belt and the metropolitan centres.

Ranked as 248th biggest bank in the world by Bankers Almanac , London.

Strong correspondent banking relationships with more than 217 international banks of the world.

More than 50 renowned international banks maintain their Rupee Accounts with PNB.

Well equipped dealing rooms; 20 different foreign currency accounts are maintained at major
centres all over the globe.
Rupee drawing arrangements with M/s UAE Exchange Centre, UAE, M/s Al Fardan Exchange
Co. Doha, Qatar,M/s Bahrain Exchange Co,Kuwait, M/s Bahrain Finance Co, Bahrain,M/s
Thomas Cook Al Rostamani Exchange Co. Dubai,UAE, and M/s Musandam Exchange,Ruwi,
Sultanate of Oman.

INTRODUCTION

Punjab National Bank of India, the first Indian bank started only with Indian capital, was
nationalized in July 1969 and currently the bank has become a front-line banking institution in
India with 4525 Offices including 432 Extension Counters. The corporate office of the bank is at
New Delhi. Punjab National Bank of India has set up representative offices at Almaty
(Kazakhistan), Shanghai (China) and in London and a full fledged Branch in Kabul
(Afghanistan).

Punjab National Bank with 4497 offices and the largest nationalized bank is serving its 3.5 crore
customers with the following wide variety of banking services:

• Corporate banking
• Personal banking
• Industrial finance
• Agricultural finance
• Financing of trade
• International banking

Punjab National Bank has been ranked 38th amongst top 500 companies by The Economic
Times. PNB has earned 9th position among top 50 trusted brands in India.
Punjab National Bank India maintains relationship with more than 200 leading international
banks world wide. PNB India has Rupee Drawing Arrangements with 15 exchange companies
in UAE and 1 in Singapore.
2.1.1 HISTORY OF THE BANK

Punjab National Bank (PNB) was registered on May 19, 1894 under the Indian Companies Act
with its office in Anarkali Bazaar Lahore. The Bank is the second largest government-owned
commercial bank in India with about 4,500 branches across 764 cities. It serves over 37 million
customers. The bank has been ranked 248th biggest bank in the world by Bankers Almanac,
London. The bank's total assets for financial year 2007 were about US$60 billion. PNB has a
banking subsidiary in the UK, as well as branches in Hong Kong and Kabul, and representative
offices in Almaty, Dubai, Oslo, and Shanghai.

• 1895: PNB commenced its operations in Lahore. PNB has the distinction of being the
first Indian bank to have been started solely with Indian capital that has survived to the
present. (The first entirely Indian bank, the Ouch Commercial Bank, was established in
1881 in Faizabad, but failed in 1958.) PNB's founders included several leaders of the
Swadeshi movement such as Dyal Singh Majithia and Lala HarKishen Lal,[1] Lala
Lalchand, Shri Kali Prosanna Roy, Shri E.C. Jessawala, Shri Prabhu Dayal, Bakshi
Jaishi Ram, and Lala Dholan Dass. Lala Lajpat Rai was actively associated with the
management of the Bank in its early years.
• 1904: PNB established branches in Karachi and Peshawar.
• 1940: PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi circle.
• 1947: Partition of India and Pakistan at Independence. PNB lost its premises in Lahore,
but continued to operate in Pakistan.
• 1951: PNB acquired the 39 branches of Bharat Bank (est. 1942); Bharat Bank became
Bharat Nidhi Ltd.
• 1961: PNB acquired Universal Bank of India.
• 1963: The Government of Burma nationalized PNB's branch in Rangoon (Yangon).
• September 1965: After the Indo-Pak war the government of Pakistan seized all the
offices in Pakistan of Indian banks, including PNB's head office, which may have moved
to Karachi. PNB also had one or more branches in East Pakistan (Bangladesh).
• 1960s: PNB amalgamated Indo Commercial Bank (est. 1933) in a rescue.
• 1969: The Government of India (GOI) nationalized PNB and 13 other major commercial
banks, on July 19, 1969.
• 1976 or 1978: PNB opened a branch in London.
• 1986 The Reserve Bank of India required PNB to transfer its London branch to State
Bank of India after the branch was involved in a fraud scandal.
• 1986: PNB acquired Hindustan Commercial Bank (est. 1943) in a rescue. The acquisition
added Hindustan's 142 branches to PNB's network.
• 1993: PNB acquired New Bank of India, which the GOI had nationalized in 1980.
• 1998: PNB set up a representative office in Almaty, Kazakhstan.
• 2003: PNB took over Nedungadi Bank, the oldest private sector bank in Kerala. Rao
Bahadur T.M. Appu Nedungadi, author of Kundalatha, one of the earliest novels in
Malayalam, had established the bank in 1899. It was incorporated in 1913, and in 1965
had acquired selected assets and deposits of the Coimbatore National Bank. At the time
of the merger with PNB, Nedungadi Bank's shares had zero value, with the result that its
shareholders received no payment for their shares.

PNB also opened a representative office in London.

• 2004: PNB established a branch in Kabul, Afghanistan.

PNB also opened a representative office in Shanghai.

PNB established an alliance with Everest Bank in Nepal that permits migrants to transfer
funds easily between India and Everest Bank's 12 branches in Nepal.

• 2005: PNB opened a representative office in Dubai.

• 2007: PNB established PNBIL - Punjab National Bank (International) - in the UK, with two
offices, one in London, and one in South Hall. Since then it has opened a third branch in
Leicester, and is planning a fourth in Birmingham. Gatin Gupta became Chairmen of
Punjab National Bank.
• 2008: PNB opened a branch in Hong Kong
• 2009: PNB opened a representative office in Oslo, Norway.
2.1.2 ACHIEVEMENTS

• Punjab National Bank announced its Q1FY2010 results on 29 July 2009, delivering
62% y-o-y growth in net profits to Rs832 crore (Rs512cr), substantially ahead of
expectations on account of large treasury gains, apart from healthy operating
performance.

• While the bank’s deposit growth was reasonably robust at 4.4% sequentially and
26.5% y-o-y, unlike the peers its growth in advances also remained strong at 38% y-
o-y.

• In spite of being at the forefront of PLR cuts, the bank posted a healthy growth in Net
Interest Income (NII) of 29% y-o-y.

• Other Income surged 113% y-o-y, driven by strong treasury gains of Rs355 crore
during the quarter in line with industry trends, even as Fee income was also robust at
45% y-o-y, on the back of strong balance sheet growth.

• Operating expenses were higher than expected on account of Rs150 crore of

provisions for imminent wage hikes.

• Gross and Net NPA ratios remained stable sequentially at 1.8% and 0.2%, with the
bank not adopting the guidelines of treating floating provisions as part of tier 2 capital
instead of adjusting against NPAs on express permission from the RBI.

2.2 VISION AND MISSION

Vision

• To evolve and position the bank as a world class, progressive, cost effective and
customer friendly institution providing comprehensive financial and related services.
• Integrating frontiers of technology and serving various segments of society especially
weaker section.
 • Commited to excellence in serving the public and also excelling in corporate values

Mission

• To provide excellent professional services and improve its position as a leader in

financial and related services.
• Build and maintain a team of motivated workforce with high work ethos.
• Use latest technology aimed at customer satisfaction and act as an effective catalyst
for socio economic development.

2.3 VALUES AND ETHICS

• Bonding and Integrity

• Ethical conduct
• Periodic disclosure
• Confidentiality and fair dealing
• Compliance with rules and regulations

2.4 PRODUCTS AND SERVICES

Savings Fund Account - Total Freedom Salary Account, PNB Prudent Sweep, PNB Vidyarthi
SF Account, PNB Mitra SF .

Account Current Account - PNB Vaibhav, PNB Gaurav, PNB Smart Roamer
Fixed Deposit Schemes - Spectrum Fixed Deposit Scheme, Anupam Account, Mahabachat
Schemes , Multi Benefit Deposit .

Scheme Credit Schemes - Flexible Housing Loan, Car Finance, Personal Loan, Credit Cards
Social Banking - Mahila Udyam Nidhi Scheme, Krishi Card, PNB Farmers Welfare Trust.
Corporate Banking - Gold Card scheme for exporters, EXIM finance
 Business Sector - PNB Karigar credit card, PNB Kushal Udhami, PNB Pragati Udhami, PNB
Vikas Udhami .

Apart from these, and the PNB also offers locker facilities, senior citizens schemes, PPF
schemes and various E-services.

2.5 AWARDS AND DISTINCTIONS

• Ranked among top 50 companies by the leading financial daily, Economic Times.
• Ranked as 323rd biggest bank in the world by Bankers Almanac (January 2006),
London.
• Earned 9th place among India's Most Trusted top 50 service brands in Economic Times-
A.C Nielson Survey.
• Included in the top 1000 banks in the world according to The Banker, London.
• Golden Peacock Award for Excellence in Corporate Governance - 2005 by Institute of
Directors.
• FICCI's Rural Development Award for Excellence in Rural Development – 2005

PROFILE
With over 38 million satisfied customers and 4668 offices, PNB has continued to retain its
leadership position among the nationalized banks. The bank enjoys strong fundamentals, large
franchise value and good brand image. Besides being ranked as one of India's top service
brands, PNB has remained fully committed to its guiding principles of sound and prudent
banking. Apart from offering banking products, the bank has also entered the credit card & debit
card business; bullion business; life and non-life insurance business; Gold coins & asset
management business ,etc . Since its humble beginning in 1895 with the distinction of being the
first Indian bank to have been started with Indian capital, PNB has achieved significant growth
in business which at the end of March 2009 amounted to Rs 3,64,463 crore. Today, with assets
of more than Rs 2,46,900 crore, PNB is ranked as the 3rd largest bank in the country (after SBI
and ICICI Bank) and has the 2nd largest network of branches (4668 including 238 extension
counters and 3 overseas offices).During the FY 2008-09, with 39% share of low cost deposits,
the bank achieved a net profit of Rs 3,091 crore, maintaining its number ONE position amongst
nationalized banks. Bank has a strong capital base with capital adequacy ratio as per Basel II
at 14.03% with Tier I and Tier II capital ratio at 8.98% and 5.05% respectively as on March’09.
As on March’09, the Bank has the Gross and Net NPA ratio of only 1.77% and 0.17%
respectively. During the FY 2008-09, its’ ratio of priority sector credit to adjusted net bank credit
at 41.53% & agriculture credit to adjusted net bank credit at 19.72% was also higher than the
respective national goals of 40% & 18%. PNB has always looked at technology as a key
facilitator to provide better customer service and ensured that its ‘IT strategy’ follows the
‘Business strategy’ so as to arrive at “Best Fit”. The bank has made rapid strides in this
direction. Alongwith the achievement of 100% branch computerization, one of the major
achievements of the Bank is covering all the branches of the Bank under Core Banking Solution
(CBS), thus covering 100% of it’s business and providing ‘Anytime Anywhere’ banking facility to
all customers including customers of more than 2000 rural branches. The bank has also been
offering Internet banking services to the customers of CBS branches like booking of tickets,
payment of bills of utilities, purchase of airline tickets etc.Towards developing a cost effective
alternative channels of delivery, the bank with more than 2150 ATMs has the largest ATM
network amongst Nationalised Banks. With the help of advanced technology, the Bank has
been a frontrunner in the industry so far as the initiatives for Financial Inclusion is concerned.
With it’s policy of inclusive growth in the Indo-Gangetic belt, the Bank’s mission is “Banking for
Unbanked”.

Backed by strong domestic performance, the bank is planning to realize its global aspirations.
In order to increase its international presence, the Bank continues its selective foray in
international markets with presence in Hongkong, Dubai, Kazakhstan, UK, Shanghai,
Singapore, Kabul and Norway. A second branch in Hongkong at Kowloon was opened in the
first week of April’09. Bank is also in the process of establishing its presence in China, Bhutan,
DIFC Dubai, Canada and Singapore. The bank also has a joint venture with Everest Bank Ltd.
(EBL), Nepal. Under the long term vision, Bank proposes to start its operation in Fiji Island,
Australia and Indonesia. Bank continues with its goal to become a household brand with global
expertise.
Amongst Top 1000 Banks in the World, ‘The Banker’ listed PNB at 250th place. Further, PNB is
at the 1166th position among 48 Indian firms making it to a list of the world’s biggest companies
compiled by the US magazine‘Forbes’. Financial performance
Punjab National Bank continues to maintain its frontline position in the Indian banking industry.
In particular, the bank has retained its NUMBER ONE position among the nationalized banks in
terms of number of branches, Deposit, Advances, total Business, operating and net profit in the
year 2008-09. The impressive operational and financial performance has been brought about
by Bank’s focus on customer based business with thrust on SME, Agriculture, more inclusive
approach to banking; better asset liability management; improved margin management, thrust
on recovery and increased efficiency in core operations of the Bank. The performance
highlights of the bank in terms of business and profit are shown below:

CAG
Parameters Mar'07 Mar'08 Mar'09
R

Operating
3617 4006 5744 26.02
Profit*

Net Profit* 1540 2049 3091 41.67

16645 20976
Deposit 139860 22.47
7 0

11950 15470
Advance 96597 26.55
2 3

Total 28595 36446

236456 24.15
Business 9 3

(Rs.Crores)
Punjab National Bank (PNB), the country's second-largest public sector bank, is planning to cut
exposure to personal loans and home finance, to bridge the gap between higher credit off-take
and lower deposits, report agency sources."The bank is concerned over the widening gap
between resource mobilisation and credit expansion and will soon take decisions on curtailing
credit exposure by reducing personal loans,\' PNB chief general manager US Bhargava said.
The bank's asset liability committee (ALCO) will meet later this week to decide on the issue ,he
added. PNB's credit exposure is growing at 28% as against a growth of 20-22% in resource
mobilisation. The bank had earlier indicated an increase in prime lending rate (PLR) by 25 to 50
basis points and higher interest rates on all types of personal loans and housing loans.

At present, PNB charges a PLR of 12.25% and the interest rate on personal loans is between
12-13%. A number of banks such as ICICI Bank and HDFC Bank have raised PLR by 100 basis
points, while Bank of Baroda had increased interest rates by 75 basis points. Bhargava said that
while loans for the first house of a borrower will be kept in the priority segment, PNB will take
steps to discourage buying a second or third house. The steps taken by PNB followed the recent
RBI measure to increase the repo rate (repurchase rate) and the CRR (Cash reserve Ratio). The
repo rate is the interest rate at which RBI lends to banks, while CRR is the proportion of cash
banks must keep with the RBI. The increase in CRR and repo rate increases the cost of funds for
banks, prompting them to hike lending rates. RBI resorted to these measures to curb high
inflation in the economy.

COMPANY PROFILE OF ICICI BANK

State Bank of India welcomes you to explore the world of premier bank in India.
In this section, you can access detailed information on Overview of the Bank,
Technology Up gradation in the Bank, Board of Directors, Financial Results
and Shareholder Info. 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.

Our commitment to nation-building is complete & comprehensive.

Central Board of State Bank of India

(As on 13th May 2009)

Sr. No. Name of Director Sec. of SBI Act, 1955

Shri O.P. Bhatt

1. 19(a)
Chairman

Shri S.K. Bhattacharyya

2. 19(b)
MD & CC&RO

Shri R. Sridharan
3. 19(b)
MD & GE(A&S)

4. Dr. Ashok Jhunjhunwala 19(c)

5. Shri Dileep C. Choksi 19(c)

6. Shri S. Venkatachalam 19(c)

7. Shri. D. Sundaram 19(c)

8. Dr. Deva Nand Balodhi 19(d)

9. Prof. Mohd. Salahuddin Ansari 19(d)

10. Dr.(Mrs.) Vasantha Bharucha 19(d)

11. Dr. Rajiv Kumar 19(d)

12. Shri Ashok Chawla 19(e)

13. Smt. Shyamala Gopinath 19(f)

TRANSFORMATION JOURNEY IN STATE BANK OF INDIA
The State Bank of India, the country’s oldest Bank and a premier in terms of balance
sheet size, number of branches, market capitalization and profits is today going through
a momentous phase of Change and Transformation – the two hundred year old Public
sector behemoth is today stirring out of its Public Sector legacy and moving with an
agility to give the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups – Pension Funds,
General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc – each one of these
initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking
models, to expand its Rural Banking base, looking at the vast untapped potential in the
hinterland and proposes to cover 100,000 villages in the next two years.

It is also focusing at the top end of the market, on whole sale banking capabilities to
provide India’s growing mid / large Corporate with a complete array of products and
services. It is consolidating its global treasury operations and entering into structured
products and derivative instruments. Today, the Bank is the largest provider of
infrastructure debt and the largest arranger of external commercial borrowings in the
country. It is the only Indian bank to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer
friendly processes to help improve the total customer experience. With about 8500 of its
own 10000 branches and another 5100 branches of its Associate Banks already
networked, today it offers the largest banking network to the Indian customer. The Bank
is also in the process of providing complete payment solution to its clientele with its over
8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile
banking, etc.
With four national level Apex Training Colleges and 54 learning Centres spread all over
the country the Bank is continuously engaged in skill enhancement of its employees.
Some of the training programes are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as

Internationally. It presently has 82 foreign offices in 32 countries across the globe. It has
also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI
Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking
scenario. It is in the process of raising capital for its growth and also consolidating its
various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets,
attitudes and take all employees together on this exciting road to Transformation. In a
recently concluded mass internal communication programme termed ‘Parivartan’ the
Bank rolled out over 3300 two day workshops across the country and covered over
130,000 employees in a period of 100 days using about 400 Trainers, to drive home the
message of Change and inclusiveness. The workshops fired the imagination of the
employees with some other banks in India as well as other Public Sector Organizations
seeking to emulate the programme.

The CNN IBN, Network 18 recognized this momentous transformation journey, the
State Bank of India is undertaking, and has awarded the prestigious Indian of the Year –
Business, to its Chairman, Mr. O. P. Bhatt in January 2008.

Introduction 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 State Bank of India, the country’s oldest Bank and a premier in terms of balance
sheet size, number of branches, market capitalization and profits is today going through
a momentous phase of Change and Transformation – the two hundred year old Public
sector behemoth is today stirring out of its Public Sector legacy and moving with an
agility to give the Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups – Pension Funds,
General Insurance, Custodial Services, Private Equity, Mobile Banking, Point of Sale
Merchant Acquisition, Advisory Services, structured products etc – each one of these
initiatives having a huge potential for growth.

The Bank is forging ahead with cutting edge technology and innovative new banking
models, to expand its Rural Banking base, looking at the vast untapped potential in the
hinterland and proposes to cover 100,000 villages in the next two years.
It is also focusing at the top end of the market, on whole sale banking capabilities to
provide India’s growing mid / large Corporate with a complete array of products and
services. It is consolidating its global treasury operations and entering into structured
products and derivative instruments. Today, the Bank is the largest provider of
infrastructure debt and the largest arranger of external commercial borrowings in the
country. It is the only Indian bank to feature in the Fortune 500 list.

The Bank is changing outdated front and back end processes to modern customer
friendly processes to help improve the total customer experience. With about 8500 of its
own 10000 branches and another 5100 branches of its Associate Banks already
networked, today it offers the largest banking network to the Indian customer. The Bank
is also in the process of providing complete payment solution to its clientele with its over
8500 ATMs, and other electronic channels such as Internet banking, debit cards, mobile
banking, etc.

With four national level Apex Training Colleges and 54 learning Centres spread all over
the country the Bank is continuously engaged in skill enhancement of its employees.
Some of the training programes are attended by bankers from banks in other countries.

The bank is also looking at opportunities to grow in size in India as well as

Internationally. It presently has 82 foreign offices in 32 countries across the globe. It has
also 7 Subsidiaries in India – SBI Capital Markets, SBICAP Securities, SBI DFHI, SBI
Factors, SBI Life and SBI Cards - forming a formidable group in the Indian Banking
scenario. It is in the process of raising capital for its growth and also consolidating its
various holdings.

Throughout all this change, the Bank is also attempting to change old mindsets,
attitudes and take all employees together on this exciting road to Transformation. In a
recently concluded mass internal communication programme termed ‘Parivartan’ the
Bank rolled out over 3300 two day workshops across the country and covered over
130,000 employees in a period of 100 days using about 400 Trainers, to drive home the
message of Change and inclusiveness. The workshops fired the imagination of the
employees with some other banks in India as well as other Public Sector Organizations
seeking to emulate the Program.

An important turning point in the history of State Bank of India is the launch of the first
Five Year Plan of independent India, in 1951. The Plan aimed at serving the Indian
economy in general and the rural sector of the country, in particular. Until the Plan, the
commercial banks of the country, including the Imperial Bank of India, confined their
services to the urban sector. Moreover, they were not equipped to respond to the
growing needs of the economic revival taking shape in the rural areas of the country.
Therefore, in order to serve the economy as a whole and rural sector in particular, the
All India Rural Credit Survey Committee recommended the formation of a state-
partnered and state-sponsored bank.

The All India Rural Credit Survey Committee proposed the take over of the Imperial
Bank of India, and integrating with it, the former state-owned or state-associate banks.
Subsequently, an Act was passed in the Parliament of India in May 1955. As a result,
the State Bank of India (SBI) was established on 1 July 1955. This resulted in making
the State Bank of India more powerful, because as much as a quarter of the resources
of the Indian banking system were controlled directly by the State. Later on, the State
Bank of India (Subsidiary Banks) Act was passed in 1959. The Act enabled the State
Bank of India to make the eight former State-associated banks as its subsidiaries.

The State Bank of India emerged as a pacesetter, with its operations carried out by the
480 offices comprising branches, sub offices and three Local Head Offices, inherited
from the Imperial Bank. Instead of serving as mere repositories of the community's
savings and lending to creditworthy parties, the State Bank of India catered to the needs
of the customers, by banking purposefully. The bank served the heterogeneous
financial needs of the planned economic development.

Branches
The corporate center of SBI is located in Mumbai. In order to cater to different functions,
there are several other establishments in and outside Mumbai, apart from the corporate
center. The bank boasts of having as many as 14 local head offices and 57 Zonal
Offices, located at major cities throughout India. It is recorded that SBI has about 10000
branches,

ATM Services SBI provides easy access to money to its customers through more than
8500 ATMs in India. The Bank also facilitates the free transaction of money at the ATMs
of State Bank Group, which includes the ATMs of State Bank of India as well as the
Associate Banks – State Bank of Bikaner & Jaipur, State Bank of Hyderabad, State
Bank of Indore, etc. You may also transact money through SBI Commercial and
International Bank Ltd by using the State and ATM-cum-Debit (Cash Plus) card.

Subsidiaries
The State Bank Group includes a network of eight banking subsidiaries and several
non-banking subsidiaries. Through the establishments, it offers various services
including merchant banking services, fund management, factoring services, primary
dealership in government securities, credit cards and insurance.

The eight banking subsidiaries are:

• State Bank of Bikaner and Jaipur (SBBJ)

• State Bank of Hyderabad (SBH)
• State Bank of India (SBI)
• State Bank of Indore (SBIR)
• State Bank of Mysore (SBM)
• State Bank of Patiala (SBP)
• State Bank of Saurashtra (SBS)
• State Bank of Travancore (SBT)
Products And Services
Personal Banking

• SBI Term Deposits SBI Loan For Pensioners

• SBI Recurring Deposits Loan Against Mortgage Of Property
• SBI Housing Loan Loan Against Shares & Debentures
• SBI Car Loan Rent Plus Scheme
• SBI Educational Loan Medi-Plus Scheme

Other Services

• Agriculture/Rural Banking
• NRI Services
• ATM Services
• Demat Services
• Corporate Banking
• Internet Banking
• Mobile Banking
• International Banking
• Safe Deposit Locker
• RBIEFT
• E-Pay
• E-Rail
• SBI Vishwa Yatra Foreign Travel Card
• Broking Services
• Gift Cheques

The CNN IBN, Network 18 recognized this momentous transformation journey, the
State Bank of India is undertaking, and has awarded the prestigious Indian of the Year –
Business, to its Chairman, Mr. O. P. Bhatt in January 2008
INVESTMENT

MUTUAL FUND EQUITY SCHEMES

DABT SCHEMES
BALANCED SCHEMES
EXCHANGE TREADED SCHEMES
LIFE INSURENCE Unit Linked Products: Pension
Products:Pure Protection
Products:Protection cum Savings
Products:Money Back Scheme
Products:SBI Life - SARAL
ULIP Protection Plans: Specialized Term
Insurance:Retirement Solutions: SBI
Life - Swadhan (Group): SBI Life -
Dhanaraksha Plus: SBI Life - Grameen
Shakti, Health Products:
EQUITY ALL TYPES

SBI Mutual Fund is India’s largest bank sponsored mutual fund and has an enviable
track record in judicious investments and consistent wealth creation.The fund traces its
lineage to SBI - India’s largest banking enterprise. The institution has grown immensely
since its inception and today it is India's largest bank, patronised by over 80% of the top
corporate houses of the country. SBI Mutual Fund is a joint venture between the State
Bank of India and Society General Asset .

Management, one of the world’s leading fund management companies that

manages over US$ 500 Billion worldwide. Mumbai, August 26, 2008 – SBI Life
Insurance has achieved a unique distinction of ranking third globally in terms of number
of Million Dollar Round Table (MDRT) members. Of the 40,000 SBI Life Insurance
Advisors, 1,662 have qualified for the prestigious MDRT membership. Among these,
124 qualified for Court of Table (COTs) and 20 for Top of Table (TOTs).
 2008
RANK COMPANY NAME COUNTRY MEMBERS

1 Samsung Life Ins Korea 2,486

2 New York Life USA 2,167

3 SBI Life Insurance India 1,662

Northwestern
4 Mutual USA 1,411

5 AIA-Hong Kong Hong Kong 1,159

11 LIC of India India 595

HDFC Standard
14 Life India 536

22 Max New York Life India 343

68 ICICI Pru India 125

69 Birla Sunlife India 124

Management
The bank has 14 directors on the Board and is responsible for the management of the
Bank’s business. The board in addition to monitoring corporate performance also
carries out functions such as approving the business plan, reviewing and approving the
annual budgets and borrowing limits and fixing exposure limits. Mr. O. P. Bhatt is the
Chairman of the bank. The five-year term of Mr. Bhatt will expire in March 2011. Prior to
this appointment, Mr. Bhatt was Managing Director at State Bank of Travancore. Mr.
Bhatt has more than 30 years of experience in the Indian banking industry and is seen
as futuristic leader in his approach towards technology and customer service. Mr. Bhatt
has had the best of foreign exposure in SBI. We believe that the appointment of Mr.
Bhatt would be a key to SBI’s future growth momentum. Mr. T S Bhattacharya is the
Managing Director of the bank and known for his vast experience in the banking
industry. Recently, the senior management of the bank has been broadened
considerably. The positions of CFO and the head of treasury have been segregated,
and new heads for rural banking and for corporate development and new business
banking have been appointed.

Comparative Analysis of Personal Loans, Policies and

procedure In Bank

Product Punjab ICICI Personal SBI Saral HDFC Personal

name National Loan Personal Loan
Bank Loan
Personal
Loan
Interest rate 14.00% 22.00% 16.00% 22%

Processing 2% 2% to 3% 1% to 2% 2% to 3%
Fee

EMI Rs. 3,418 Rs. 3,819 Rs. 3,516 Rs. 3,819

Number of 36 36 36 36
EMI

Total interest Rs. 23,039 Rs. 37,486 Rs. 26,565 Rs. 37,486
to be paid

Total amount Rs. 1,23,039 Rs. 1,37,486 Rs. 1,26,565 Rs. 1,37,486
to be repaid

Exclusive For 1. Loan up to 15 1. Low interest 1. Loan up to 15

Features employees lacs rates. Further, lacs
whose salary 2. No we charge 2. No
is being security/guarantor interest on a security/guarantor
disbursed required daily reducing required
through our 3. Faster balance!! 3. Faster
branches and Processing 2. Low Processing
 employees 4. Minimum processing 4. Minimum
under check- Documentation charges; only Documentation
off facility, 5. Attractive 1%-2% of loan 5. Attractive
applicable Interest Rates amount Interest Rates
interest rate 6. 12-60 Months 3. No hidden 6. 12-60 Months
would be repayment costs or repayment
13.25% options administrative options
charges.
4. No security
required, which
means minimal
documentation,
something that
you had
always
wanted.
5. 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)
6. Long
repayment
period of up to
48 months.

Occupation Salaried Salaried Salaried Salaried

Interest rate 15.00%- 15.00%-20.00% 15.00%- 15.00%-20.00%

range 20.00% 20.00%
Eligibility 30 times 5% on the 12 times
monthly principal monthly
income outstanding income
12-60 Months
repayment
options
Eligibility Following are Net Salary You are
notes eligible for this Net annual eligible if you
loan: income - Rs. are a Resident
i) All 96,000 p.a Indian National
permanent Eligibility having
Defence Employees of capability to
Personnel Public Ltd. cos. , repay a loan,
including Private Ltd. cos. except
officials of MNCs Or agriculturists.
Military Station Government. (At present,
Headquarters, Years in current only salaried
BSF, CRPF, job / profession individuals are
CISF, ITBP 1 Year covered under
ii) Confirmed Years in current the schem
/permanent residence
employees of 1 Yea
Central/State
Govt/PSUs
and all
reputed
companies
/Institutions,
who are
drawing their
salary through
accounts
maintained
with our
branches.
Employees of
above
categories
under
‘check-off
facility’
OR having
minimum
annual income
of Rs.3.00
lac.
iii)
Professionally
qualified
Doctors viz.
MBBS, BDS &
above having
annual income
of Rs.3.00 lac
& abov
 Personal loan

A personal loan is a sum of money that an adult person borrows to meet his financial
needs and requirements. An individual can take an easy personal loan or a guaranteed
personal loan for a variety of reasons. Loans for personal debt help provide funds to
purchase that dream boat or car, pay for your mortgage arrears or home improvement
requirements- in fact personal loans help meet most of the financial emergencies that
an individual can think of personal loans are often the most preferred type of loan on
account of their flexibility. The two most common types of personal loans are:
• Secured Loans and

• Unsecured Loans

Both these options are linked to the choice that one can use any fixed asset to serve as
collateral to secure an easy personal loan

A Secured Loan

Wherein the loan involves the attachment of collateral - say, your property or any
fixed/movable asset- against the sum of money borrowed. You risk losing your home
should you default on repayments.

A Secured Personal Loan Is Distinguished By the Following Characteristics

• The loan that is secured against some sort of fixed or immovable/movable asset
is known as secured loan.
 • This sort of guaranteed personal loans is easily available on account of the
collateral that is provided alongside; thereby making the lending institutions more
comfortable in forwarding the loan.

• Secured personal loans involve rates of interest that are much lower and easy
options for repayment.

• Due to the collateral that is provided, banks and financial institutions usually are
unperturbed by defaults in payments or by debts that are pending.

• Secured personal loans are made available to the individual within a period of
thirty days after submitting an application.

How Does A Secured Personal Loan Benefit the Borrower And the Lender?

1. Secured Personal Loans can be repaid over a longer period of time, with a lower
monthly payment.

2. They are cost effective on account of the low rates of interest charged on the
loan.

3. Since the loan has been secured by pledging the assets of the borrower, the risk
to the lender's investment is greatly reduced.

4. Their easy availability is another factor. Very few loan applications for secured
loans are turned down; since the loan would be secured on the strength of the
borrower's assets

An Unsecured Loan

Here the loan is not secured against the loan amount borrowed. But consequently the
lender would be charging a higher rate of interest, taking into account the high risk
involved in lending the sum. Here, failure to make regular payments would see the
lender fall back on the credit agreement, and resort to legal claims to make good the
loss incurred. When you apply for either of these loans, you can expect the lender to
conduct a credit worthiness check on you before he actually gives you the loan. Usually,
failure to be granted the loan would be on account of previous records of defaults in
payments, accumulated mortgage arrears ,cancellation of your credit card and rejection
of application for credit. Should you receive the loan however, it would be sensible to
opt for a payment protection policy that could cover your loan payments in full, and
ensure peace of mind.

Is An Unsecured Personal Loan A Viable Alternative To The Secured Loan?

• In such a loan, the sum of money given by the bank or by the financial institution
is not secured by any collateral.

• The financial institution gives the loan solely based on the credit worthiness of
the individual concerned.

• As this loan is unsecured, the lender's risk in the investment is high, and
therefore the borrower is charged a higher rate of interest than those applying for
a secured loan.

• Apart from this, the lender also conducts a thorough check on the financial worth
of the individual applying for the loan.

• While the loan amounts can extend anywhere between 500 and 25, 0000
pounds, the rates of interest are higher on account of the risks involved.

• These sorts of loans are usually reserved for tenants, for those persons who do
not own homes, and for those who are not in any position to offer any collateral.

• Because there is no collateral to secure these loans, lenders are usually wary of
giving large sums of money.

• In case of default on the part of the borrower, then the lender would have no
option but to resort to the clauses of the credit agreement, and approach legal
aid to help recover the money.
The Benefits behind an Unsecured Personal Loan

• There is no requirement of collateral, and the borrower need not pledge his
assets to procure the loan.

• There is no necessity for documents regarding the borrower's tax returns, or for
financial statements. The information on the borrower's financial background
need not be verified by supporting documents.

• Quick approvals, and an easy application process, are other attractive benefits of
this loan.

Let's begin by defining a personal loan .A Personal Loan is what you borrow from a
bank, or a building society or institution, or from any other lender as a lump sum of
money. It would ideally be the best option if you are looking to consolidate all of your
debts into one, so that you could reduce overall the amount of monthly repayments on
the same.

Short term personal loans, secured personal loans, fast cash personal loans, no credit
personal loans, military personal loans, second chance personal loans, Christian
lending personal loans- all these are available to a person who is looking to borrow
money between one and five years. There are basically Two Types of Personal Loans.
They are:

Short Term Personal Loans

Short Term Personal Loans can be got through banks and online financial companies,
and a wide variety of other sources. With such a Short Term Personal Loan:

• The rate of interest involved is usually high. This is because the period of
repayment is usually for a short time. Such types of short term personal loans
have to be beneficial to both the borrower and the lender, and high rates of
 interest are one of the ways by which a bank or a financial company stands to
benefit.

• This type of short term funding is often utilized to help individuals who are in
need of varying sums of money for a short period. Many of the lending
companies usually provide for such a loan, and also stipulate the maximum
amount of money that can be borrowed under such a circumstance.

• Banks, while giving this type of short term personal loan, usually require
collateral, before disbursing the same. Online financial companies only require a
credit check, but lend very small sums of money. Banks do not offer more than
$15, 000 or $20, 000 dollars as well, and individuals seeking larger sums of
money, would have to tap other sources for funding.

• Because of the negative and positive aspects of short term personal loans, it is
recommended that the individual does his research thoroughly, before he applies
for funding.

Fast Cash Advance Loan

Sometimes, you may be in need of a quick payday loan, so that you could meet an
unexpected money crisis. Car repair and other unexpected bills usually occur at
inconvenient times. In case you do not have the extra cash to meet these unexpected
expenses, you could really consider applying for a cash advance.

A Fast Cash Advance Loan:

• Is similar to a bank loan- only cash advances are a lot easier to qualify for, and
enjoy a shorter term. Chances that your application for a bank loan may be
denied are high as banks have a requirement of sufficient income, a collateral
and good credit rating.
 • Has a two week term. Therefore your loan is due along with your next
paycheck.Requires that the applicant must be at least 18 years of age. The cash
advance company would also be checking out /confirming your salary and
employment. While the company is keen to help you out, it also wishes to satisfy
itself that you can repay the loan.

• Renders you eligible to receive funds up to a maximum of $1000, with a cash

advance. Some companies allow larger sums to be borrowed.

• Typically fast cash advance loans are due within the period of two weeks. Taking
the circumstances of the borrower into consideration however, some cash
advance companies would expect that at least half the loan amount will be repaid
in two weeks, and the balance in a month. Such loans are called 30 Day Payday
Loans.

• But remember that before taking such a 30 day payday loan, choose a company
that allows for long term loans, and do not assume that all cash advance
companies would give long term cash advance. Far better to enter into a long
term loan agreement, before taking the loan, otherwise you would have to pay
extra interest and fees for the late period.

Military Personal Loans are easy for servicemen to get anytime. Military jobs involve
good salaries and high status and sometimes these could complicate matters by
incurring extra expenses.

A Military Payday Loan

• Is offered by military loan companies to help servicemen to buy a home or a car,

or any other requirement that needs higher costs. These companies offer varying
 types of loans, for example, bereavement loan, career service loan, disaster
relief loan, that are easy and at the same time affordable.

• Is specifically for men and women of the military and can be got by anybody in
the military, even those with bad credit history.

• Can be easily obtained vide electronic transfer, after making the application
online. This is one of the biggest advantages- that a military man can get his
application wherever he may be.

• A second advantage would be the low rate of interest.

• The military man is given the choice of his own repayment schedule. If he cannot
repay with one payday check, then he can do it with successive ones.

• If he wants cash instantly, but payday is still far, he can apply for funding of the
Instant Military Payday Loan. Retired army servicemen usually apply for the fast
cash loan, and retired military loans also do not discriminate between ranks of ex
servicemen.

ICICI PERSONAL LOAN

Personal Loans for all your financial needs

Thinking of renovating your house? Yearning to buy a new laptop? Need financial
assistance for marriage-related expenses or for your child's higher education? An ICICI
Bank Personal Loanis your one-stop-shop for all your financial needs to fulfill any of
your desires.

Key Benefits of ICICI BankPersonal Loan

 • Loan up to Rs. 10 lakhs
• No security/guarantor required
• Faster processing.
• Minimum documentation
• Attractive rates of interest
• Flexible repayment option of 12-48 months

ICICI Bank may, at its sole discretion, utilise the services of external service provider/s
or agent/s and on such terms as required or necessary, in relation to its products.

Eligibility

You can avail of an ICICI Bank Personal Loan if you have an ICICI Bank salary account
and if you meet the following criteria:

Criteria* Salaried

Age 25 yrs. - 58 yrs.

Net Salary Net monthly income - Rs. 20,000 p.m.

Eligibilty Employees of Public Ltd. companies, Private Ltd. companies,

Government companies or MNCs.

Years in total job /

2 Year
profession

Years in current
1 Year
residence
 Documentation

ICICI Bank provides you with personal finance to fulfill any of your desires with minimum
documentation:

Documents ( Pre Sanction)

Salaried

1) Proof of Identity (any one) Passport / Driving License / Voters ID / PAN Card
2) Proof of Residence (any one) Ration Card / Utility Bill / Passport / LIC Policy
Receipt
3) Latest 3 months Bank Statement (where salary/income is credited)
4) Salary slips for last 2 months

*Conditions apply
Application Process

• You have the option of applying online for a personal loan.

• An ICICI Bank 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 handover any payment via cash/ third party cheque with your
application. Kindly ensure that all Post Dated Cheques are drawn in favour of
"ICICI Bank Ltd - Personal Loans" filled-in in all respects and endorsed "Account
Payee only"

What are the minimum and maximum loan amounts?

You can avail of loans ranging from Rs 1,00,000/- to Rs 15,00,000/- depending on your
eligibility, income and repayment capacity.

What are the loan tenure options?

The loan can be repaid over a period of 12 to 60 months.

Are there any additional charges?

A processing fee of 2% or 3% depending on the loaction, of the loan amount is payable
upfront. This fee will be deducted from the disbursal amount payable to you.

How much time will it take for my loan to be approved?

Loans are approved within 72 hours of submission of complete documentation.
Do I have to provide any security, collateral or guarantors?
No security, collateral or guarantors are required for obtaining a Personal Loans.

How do I repay the loan?

You can repay the loan in Equated Monthly Installments (EMI's) through post-dated
cheques favouring ICICI Bank Limited, or if you have an ICICI Bank account you can
mandate us to directly debit the same.

Can I prepay my loan?

Yes, you can prepay the entire loan outstanding anytime after paying 6 installments.
Prepayment charges as applicable would be levied on the outstanding loan amount. No
part prepayment is allowed.

Service Charges & Fees

Enclosed find the service charges for an ICICI Bank Personal Loan

• Prepayment of the loan is possible after 180 days of availing the loan.
• Prepayment charges as applicable would be levied on the outstanding loan.
 • Part prepayment facility on the loan is not available.

Description of Charges Personal Loans

Loan Processing Charges / Origination Upto 2% of loan amount plus Service Tax
Charges

The lower of the two amounts given below:

1) 5% of principal outstanding or
Prepayment Charges
2) Interest outstanding for the unexpired
period of the loan.

Charges for late payment 2% per month

Cheque Swap Charges Rs. 500/- per transaction

Cheque return charges^ Rs. 400/- per return

Statement of Account Charges Rs. 200/- per statement

Prepayment Statement Charges Rs. 100/- per statement

Duplicate NOC Charges Rs. 500/- per NOC

Duplicate Repayment / Amortisation Rs. 200/- per schedule

Schedule Charges

Notes :

• 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.
• The charges or fees given in above table are subject to change and the one
recorded in agreement will be binding over this site.
• ^Effective for loans availed from August 10th, 2009. For loans availed prior to the
said date, the cheque return charge is Rs 200.

Operational Definitions
• DSA: Direct sales associates are the authorized agent , they work on
commission basis.
• DST: Direct sales team is that team, which get salary as well as incentives . The
incentives basis is depending on their target.
• Login: It is the first application format in which all the information about the
applicants is filled.
• DI: Disbursement Initiation , It is the last step in which we send file to the
Operation process.
• RCU: Risk Containment Unit , this unit work upon the docs is fraud or not.
• MIS: Management Information System.
• OGL: Out Of Geographical Limit
• PDD: Post Disbursed Documents
• Decline: When the case does not approved it goes for decline
• PDC: Post Dated Cheques
• LDD: Local Defaulter Data
Applications for loans and their processing

The bank would have loan application forms for retail advances and credit cards.
These would include information about the fees/charges, if any, payable for
processing, the amount of such fees refundable in the case of non acceptance of
application, pre-payment options and any other matter which affects the interest of the
borrower, so that a meaningful comparison with that of other banks can be made and
an informed decision can be taken by the borrower.

As part of the wholesale banking business, the bank has various segments to which
credit facilities are provided for their business requirements. These include a wide
range of customers and range from small & medium enterprises to large corporate
borrowers. The bank has a process for identification of target customers to whom
facilities can be provided based on customer selection and risk assessment for that
segment. Thus, the focus is on contacting prospective customers and encouraging
them to avail of banking services from HDFC Bank based on the incremental value we
can add to a customer's business, rather than customers making applications to the
Bank for facilities / services. Thus, for the wholesale banking segment, we do not have
any standardized application forms to be submitted by prospective customers.

The bank would give an acknowledgement for receipt of all retail loan applications.
Time-frame within which loan applications will be processed would be indicated in the
acknowledgement of such applications.

The bank would verify the loan applications within a reasonable period of time. If
additional details / documents are required, it would intimate the borrowers
immediately.

In the case of all borrowers seeking loans, the bank would convey in writing, the main
reason/reasons which, in the opinion of the bank after due consideration, have led to
rejection of the loan applications. In case the proposal does not meet the internal risk
 parameters of the bank, the borrower would be intimated accordingly.

Loan appraisal and terms/conditions

The bank would ensure that there is proper assessment of credit application made by
borrowers. The assessment would be in line with the bank's credit policies &
procedures and relevant regulatory guidelines.

The bank would convey to the borrower the credit limit along with the terms and
conditions thereof and obtain the borrower's acceptance of these terms and
conditions, given with his full knowledge on record.

In respect of approved credit proposals, terms and conditions and other caveats
governing credit facilities given by the bank would be reduced in writing and duly
certified by a bank official. A copy of the loan agreement along with a copy each of all
enclosures quoted in the loan agreement may be furnished to the borrower if asked
for.

The sanction letter or the loan agreement would stipulate if the credit facilities are
solely at the discretion of the bank. The bank may disallow facilities that involve
drawings beyond the sanctioned limits, honouring cheques issued for the purpose
other than specifically agreed to in the credit sanction, and drawing on a borrowal
account on its classification as a non-performing asset or on account of non-
compliance with the terms of sanction. Further the bank does not have an obligation to
meet additional requirements of the borrowers on account of growth in business etc.
without proper review of credit limits. Any increase/additional limits/changes in
facilities requested by the customer would be considered by the Bank based on its
internal policies and assessment and the Bank is not under any obligation to accede
to the specific request of the borrower.

In the case of lending under consortium arrangement, the bank would endeavour to
evolve procedures to complete appraisal of proposals in a time bound manner to the
 extent feasible, and communicate its decisions on financing or otherwise within a
reasonable time, in co-ordination with other members of the consortium.

Disbursement of loans including changes in terms and conditions

The bank would ensure timely disbursement of loans sanctioned in conformity with the
terms and conditions governing such sanction. It would give notice of any change in
the terms and conditions including interest rates, service charges etc.

Revisions to the Bank's PLR are notified through the Bank's website. They are also
covered in leading financial newspapers. Any revisions in this are applicable to all
PLR linked facilities from the date of PLR revision. For facilities linked to other
benchmark rates, these are revised as per prior agreement with the customer, the
process for which is covered in the sanction letter duly accepted by the customer on
the loan agreement. For all other facilities, any change in interest rates is with prior
intimation to the customer. All revisions in other fees and charges are also informed to
the customer in advance.

Post disbursement supervision

The bank would carry out post-disbursement supervision in accordance with normal
banking practice, the terms of sanction, and the guidelines issued by the Reserve
Bank of India from time to time.

Before taking a decision to recall / accelerate payment or performance under the

agreement or seeking additional securities, the bank would give notice to borrowers,
as specified in the loan agreement or a reasonable period, if no such condition exits in
the loan agreement.

The bank would release all securities on receiving payment of loan or realisation of
loan subject to any legitimate right or lien for any other claim that it may have against
borrowers. If such right of set off is to be exercised, borrowers shall be given notice
 about the same with full particulars about the remaining claims and the provisions
under which the bank is entitled to retain the securities till the relevant claim is
settled/paid.

General

The bank would refrain from interference in the day-to-day affairs of the borrowers
except for what is provided in the terms and conditions of the loan sanction
documents (unless new information, not earlier disclosed by the borrower, has come
to the notice of the bank). This however does not imply that the bank's right of
recovery and enforcement of security under law as well as appointment of nominee
directors, where required, is affected by this commitment.

The bank would not discriminate on grounds of sex, caste and religion in the matter of
lending. However, this does not preclude the bank from participating in credit-linked
schemes framed for weaker sections of society.

In the matter of recovery of loans, the bank would not resort to undue harassment or
use of force.

In case of receipt of request for transfer of borrowal account, either from the borrower
or from a bank/financial institution, which proposes to take- over the account, the
consent or otherwise i.e., objection of the bank, if any, would be conveyed within 21
days from the date of receipt of request.

HDFC PERSONAL LOAN

HDFC Personal Loans have been designed by HDFC Bank to suit personal
requirements of individuals like marriage,holiday, education,purchase of any expensive
commodity or any such anticipated or unanticipated monetary involvement.

HDFC Bank,India, announced the arrival of the new generation, technology driven
commercial banks in India. HDFC Bank in India was set up in August 1994 with the
approval of Reserve Bank of India. The bank was promoted by Housing Development
Finance Corporation Limited, a premier housing finance company of India (set up in
1977).

HDFC Personal Loans provide the following benefits:

• Loans up to Rupees one million for any purpose.

• Flexible Repayment Options ranging from 12 to 48 months.
• Repayment through Easy Monthly Installments (EMIs).
• Low Rate of Interest
• Hassle free loans - No guarantor/security/collateral required
• Speedy loan approval
• Service at the customer's doorstep

Further, there are additional privileges for HDFC Bank account holders like:

• Special rates of interest.

• For existing Auto Loan customers with a clear repayment of 12 months or
more from even any of the approved financiers of HDFC Bank, a hassle free
personal loan without income documentation can be obtained.
• For existing HDFC Bank Personal Loan customer with a clear repayment of
12 months or more, personal loan can be enhanced.

HDFC Personal Loans can be availed by the following groups of professionals:

• Salaried Individuals
• Self Employed Individuals
• Self Employed Individuals in private companies and partnership firms in
manufacturing,trading or services

Each of the above groups of professionals encounter a specific set of criteria for
sanction of loan. They are also required to present a specific set of document.
The fees and interest charges are liable to variation from one individual to another
according to parameters like:

• Financial Status of the personal seeking loan

• His/her years of service left (in case of salaried individuals)
• Position of business (in case of self employed individuals)
• Valuation of Collateral Security provided by the loan seeker

However, all the conditions mentioned above are subjected to the sole discretion of the
concerned authorities of HDFC Bank and are liable to vary from one person to another.

HDFC Personal Loans have risen in popularity over the years due to the less stringent
criteria for approval.

Salaried Individuals include Salaried Doctors, CAs, employees of select Public and
Private limited companies, Government Sector employees including public sector
undertakings and central, state and local bodies:

Eligibility Criteria

Minimum age of Applicant: 21 years

Maximum age of Applicant at loan maturity: 60 years

Minimum employment: Minimum 2 years in employment and minimum 1 year in
the current organization

Minimum Net Monthly Income: Rs. 10,000 per month

Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)

Address Proof (Ration card Tel/Elect. Bill/ Rental agr. / Passport copy/Trade
 licence /Est./Sales Tax certificate)

Bank Statements (latest 3 months bank statement / 6 months bank passbook)

Latest salary slip or current dated salary certificate with latest Form 16.

Self employed (Professionals) include self - employed Doctors, Chartered

Accountants, Architects ,Company Secretaries.

Eligibility Criteria

Minimum age of Applicant: 25 years

Maximum age of Applicant at loan maturity: 65 years

Years in business: 4 to 7 years depending on profession

Minimum Annual Income: Rs. 100000 p.a.

Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence).

Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade
licence /Est./Sales Tax certificate).

Bank Statements(latest 6 months bank statement /passbook)

Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA

Qualification proof of the highest professional degree

Self Employed (Individuals) include self-employed - Sole proprietors, Partners &

Directors in the Business of Manufacturing , Trading or Services.

Eligibility Criteria

• Minimum age of Applicant: 21 years

• Maximum age of Applicant at loan maturity: 65 years

 • Years in business: Minimum of 3 years in current business and 5 years total
business experience
• Minimum Annual Income: Rs. 1,00,000 p.a.

Documents required:

Proof of Identity (Passport Copy/ Voters ID card/ Driving Licence)

Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade
licence /Est./Sales Tax certificate)

Bank Statements(latest 6 months bank statement /passbook)

Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA

Proof of continuation (Trade licence /Establishment /Sales Tax certificate)

Other Mandatory Documents(Sole Prop. Decl. Or Cert. Copy of Partnership
Deed,Cert. Copy of MOA, AOA & Board resolution.)

Self Employed (Pvt Cos and Partnership Firms) include Private Companies and
Partnership firms in the Business of Manufacturing, Trading or Services

Eligibility Criteria

Years in business: Minimum of 3 years in current business and 5 years total

business experience

Business must be profit making for the last 2 years

Minimum Annual Income: Rs 100000 p.a.

Documents required:

Address Proof (Ration card Tel/elect. Bill/ Rental agr. / Passport copy/Trade
licence /Est./Sales Tax certificate)

Bank Statements(latest 6 months bank statement /passbook)

Latest ITR along with computation of income, B/S & P&L a/c for the last 2 yrs.
certified by a CA

Proof of continuation (Trade licence /Establishment /Sales Tax certificate)

Other Mandatory Documents (Sole Prop. Decl. Or Cert. Copy of Partnership
Deed, Certified true copy of Memorandum & Articles of Association (certified by
Director) & Board resolution (Original).)

Fees & Charges for Personal Loan

Description of Charges
Personal Loan

Loan Processing Charges Upto 2.50% of the loan amount

Salaried - No pre-payment permitted until

repayment of 12 EMIs
Prepayment
Self-employed - No pre-payment
permitted until repayment of 6 EMIs

Salaried - 4% of the Principal

Outstanding after repayment of 12 EMIs
Pre-payment charges
Self-employed - 4% of the Principal
Outstanding after repayment of 6 EMIs

No Due Certificate / No Objection

NIL
Certificate (NOC)

Duplicate no due certificate / NOC Rs 250/-

Solvency Certificate Not applicable

@ 24 % p.a on amount outstanding from

Charges for late payment of EMI
date of default

Charges for changing from fixed to

Not applicable
floating rate of interest

Charges for changing from floating to

Not applicable
fixed rate of interest

Stamp Duty & other statutory charges As per applicable laws of the state

Credit assessment charges Not applicable

Non standard repayment charges Not applicable

Cheque swapping charges Rs 500/- per event

Loan Re-booking charges / Re-scheduling

Rs 1000/-
charges

Loan cancellation charges Rs. 1000/-

Cheque Bounce Charges Rs 450/- per cheque bounce

Legal / incidental charges At actual

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!!
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 documentation…something
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.

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

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.
w.e.f. 29.06.2009 (SBAR 11.75%)

Other Loans
Type of Facility Rate of Interest

Clean Overdraft 4.00% above SBAR i.e. 15.75% p.a.

Personal Loans Scheme (SBI Saral) 4.25% above SBAR i.e. 16.00% p.a.

SBI Loan to Pensioners 0.50% above SBAR i.e. 12.25% p.a.

Festival Loan Scheme 2.50% above SBAR i.e. 14.25% p.a.

Loans to Employee to Subscribe to

2.25% above SBAR i.e. 14.00% p.a.
ESOPs

Loan against 1.00% over the rate paid on

Bank Time Deposit Relative time deposit

Rent Plus Scheme

Centre Loan Amount Rate of Interest

Metro Loan upto Rs. 7.50 Crores 1.00% above SBAR i.e. 12.75% p.a.

Above Rs. 7.50 Crores 1.25% above SBAR i.e. 13.00% p.a.

Non Metro Loan upto Rs. 5.00 Crores 1.00% above SBAR i.e. 12.75% p.a.

Above Rs. 5.00 Crores 1.25% above SBAR i.e. 13.00% p.a.

XPress Credit
Type Facility Rate of Interest

Demand Loan Check-off from Employer 0.75% above SBAR i.e. 12.50% p.a.

Overdraft Where salary A/C is with us 1.25% above SBAR i.e. 13.00% p.a.

NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE.

Introduction

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 Self Employed

Loan Scheme Saral Personal Loan Saral Personal Loan

Loan Type Term Loan Term Loan

Loan Amount Max Loan: 12 times the Max Loan: 12 times the
monthly income monthly income
Tenure Min. - 12 Yrs. Min. - 12 Yrs.

Interest Rate Min. - 16 % Min. - 16 %

Max. - 16 % Max. - 16 %

Time to Process Loan 2 days 2 days

Fees & charges

Salaried Self Employed

Processing Fee 2% 2%

PNB PERSONAL LOAN

Personal Loan Scheme For Public

 Purpose

To meet all types of personal needs.

Eligibility

i) All permanent Defence Personnel including officials of Military Station

Headquarters,BSF,CRPF,CISF,ITBP
ii) Confirmed/ permanent employees of Central/ State Govt/ PSUs and all reputed
companies/ Institutions, who are drawing their salary through accounts
maintained with our branches.
Employees of above categories under ‘check-off facility’
iii) Professionally qualified Doctors viz. MBBS, BDS & above having annual
income of Rs.4.00 lac & above.
Minimum Net Monthly Income

- Rs.15000 per month for eligible customers at Metro Centres;

- Rs.12500 per month for eligible customers at Urban Centres; and
- Rs.10000 per month for eligible customers at Semi-Urban and Rural Centres.

However, for Teachers, Army Jawans, other permanent employees of Military Station
Headquarters and Para Military Personnel whose salary is being credited and disbursed
through our branches the minimum Net Monthly Income criteria shall be Rs.7500/- at all
Centres viz. Metro, Urban, Semi-Urban and Rural.

Nature and Amount of Loan

Personal loans – Minimum amount of loan will be Rs.50,000/- and maximum amount of
loan Rs.4,00,000/- or 20 times monthly net salary, whichever is lower, depending upon
the repaying capacity.

Margin

NIL

Security

Suitable guarantee acceptable to the Bank.

Repayment

Personal Loan:

60 Equated Monthly Instalments (EMIs) OR remaining period of service, whichever is

earlier. Instalment to commence one month after disbursement of loan.

Upfront Fee

2% of the loan amount + Service Tax & Education Cess

Documentation Charges

Rs.270/- upto Rs.2 Lac + Service Tax & Education Cess

Rs.450/- over Rs.2 Lac + Service Tax & Education Cess

Other Guidelines
In Case of Employees of Govt./Institutions etc.

In case of employees of government/institution etc., irrevocable letter of authority from

the borrower to remit salary/installment and other amount payable to bank .Post dated
cheques towards monthly installments be obtained from the borrower under the cover of
‘letter of deposit’ (Mandate of the borrower conveying deposit of PDCs for appropriation
in the loan account). Where the employer agrees to check off facility, at least one PDC
to be obtained.

In case of Army Officers :

In case of Army Jawans, Other permanent employees of Military Station Headquarters

and Para Military Personnel (Undertaking to be obtained from the Station Commandant/
Unit Incharge at the time of retirement/death/transfer of a particular Jawan/Personnel or
on transfer of a unit, loan under the scheme will get adjusted.)
ersonal Loan Scheme for Pensioners

ELIGIBILITY
All types of pensioners who are drawing their pension through our branches are eligible.
This includes pensioners and Ex-employees of our Bank. PNB’s pre 1986 retirees who
are getting ex-gratia are also eligible. Further, pensioners whose pension is being
received by the Bank through Department of Pension Disbursing Office (DPDOs) may
also be allowed

LOAN AMOUNT

- Maximum Rs.1,50,000/- (Rupees one lac only) or amount equivalent to 18 months' net
pension, whichever is lower.

- For Pensioners above the age of 75 years, the maximum amount of loan would be
Rs.70,000/-

MARGIN : Nil

PROCESSING FEE : Nil

SECURITY Guarantee of spouse eligible for family pension to be obtained or of any other
family member of means OR a third party guarantee acceptable to the Bank

Professional Loan Schemes

PNB extends assistance to self-employed persons, firms and joint ventures of such
professional persons engaged in professions such as:

Medical practitioners including dentists, chartered accountants, cost accountants,

practicing company secretaries, who are not in regular employment of any employer,
accredited journalists or cameramen who are free lancers, i.e. not employed by a
particular newspaper/magazine, lawyers or solicitors, engineers, architects, surveyors,
construction contractors or management consultants or to a person trained in any other
art or craft who holds either degree or diploma from any institution established, aided or
recognised by Government or to a person who is considered by the bank as technically
qualified or skilled in the field in which he is engaged. Loans under this scheme may be
granted for the purpose of financing purchase of equipment used by the borrowers,
business premises, construction, making alterations or renovation of business
premises/nursing homes or for working capital requirements, in their professions.

Eligibility
 Persons already practicing or new entrants in various professions, having licenses
issued under Central or State Legislations;

Associations of persons engaged in a single profession provided that each member

of such an association is qualified and duly licensed to practice in the profession;
and

The qualified professionals will be required to produce a certified copy of the license
for the record at the bank.

Amount of
Loan

Need based on merits within the overall permissible limits as under:

Metro/ Urban S.Urban/Rural Area

1. Medical practitioners Rs 5.00 lac Rs 10.0 lac

2. Other professionals Rs 5.00 lac Rs 5.00 lac

Margin: Nil up to Rs.25000/-. 25% Above Rs. 25000/-.

Security

Hypothecation/Mortgage of the goods purchased/created with the amount of

loan till the final adjustment of bank's loan and interest thereon.

Collateral security by way of immovable properties or acceptable third party

guarantee in case of advances above Rs. 25000/-.

Disbursement
Payments will be made direct to the suppliers/ dealers. In case of construction of the
premises, the loan may be disbursed in phases after verifying the end use in terms of the
plan as also at the spot

INTEREST RATES ON PERSONAL LOANS SCHEMES IN PNB

Highlights
Fees & charges

Salaried Self Employed

Loan Scheme Personal Loan Personal Loan

Loan Amount Max Loan: 12 times the Max Loan: 12 times the
monthly income monthly income

Tenure 36 TO 60 MONTH 36 TO 60 MONTH

Interest Rate Min.-15% Min.-15%

Max. -20 % Max. - 20 %

Time to Process Loan 5 days 5 days

 Salaried Self Employed

Processing Fee 2% 2%

Eligibility Criteria

Following are eligible or this loan: i) All permanent Defence Personnel including officials
of Military Station Headquarters, BSF, CRPF, CISF, ITBP

ii) Confirmed /permanent employees of Central/State Govt/PSUs and all reputed

companies /Institutions, who are drawing their salary through accounts maintained with
our branches. Employees of above categories under check-off facility OR having
minimum annual income of Rs.3.00 lac.
iii) Professionally qualified Doctors viz. MBBS, BDS & above having annual income of
Rs.3.00 lac & above.

iv)For employees whose salary is being disbursed through our branches and
employees under check-off facility, applicable interest rate would be 13.25%

SALARIED:

Monthly Income Rs 5000

Age Min.: 21 Yrs. Max.: 58 Yrs.

Documents Required:
ID Proof Yes

Residence Proof Yes

Income Proof Yes

Telephone No

Photograph Yes

Bank Statement Yes

Signature Proof Yes

SELF EMPLOYED

Monthly Income Rs 7000

Age Min.: 21 Yrs. Max.: 65 Yrs.

Documents Required:

ID Proof Yes

Residence Proof Yes

Income Proof Yes

Telephone No
Photograph Yes

Bank Statement Yes

Signature Proof Yes

 Objectives Of the Study

(1) To study the procedure and policy regarding personal loans in banks.

(2) To make a comparative analysis of personal loans features and benefits offered
by banks from the customers.

(3) Factor influencing the customer’s behavior for taking personal loans.

(4) To suggested the measure for improvement in the personal loans , procedure
and policies.
Meaning of Research

Research in common parlance refers to a search for knowledge:

“A careful investigation or enquiry specially through search for new facts in any branch
of knowledge”.
- Advance Learner’s Dictionary of current English

Research Process

Define the problem and research objective

Develop the research plan

Collect the information

Analyze the information

Finding & Recommendations

Research Proce
Research design specifies the methods and procedures for conducting a particular
study.

A research design is the arrangement of conditions for collection and analysis of the
data in a manner that aims to combine relevance to the research purpose with economy
in procedure. Research design is broadly classified into three types as

• Exploratory Research Design

• Descriptive Research Design

• Causal Research Design

I have chosen the descriptive research design.

EXPLORATORY RESEARCH DESIGN:

Exploratory research study are also termed as formative research studies. The
main purpose of such study is that of formulating a problem for more precise
investigation or of developing a working hypothesis from an operational point of
view. The major emphasis of such studies is of the developing of discovery of
idea and insight.

SAMPLE DESIGN

A Sample Design is a definite plan for obtaining a sample from a given population. It
refers to the technique to the procedure adopted in selecting items for the sampling
designs are as below:

SAMPLE SIZE

• UNIVERSE : Population of kota

• UNIT : Customers of Banks

SAMPLE SIZE: The substantial portions of the target customer that are sampled to
achieve reliable result are 100.
SAMPLING METHOD:

• In this marketing research project, I am using

Judgmental and convenient sampling

STATISTICAL TOOL

• Percentage analysis.

• Mean score method

• Tabulation

• Graphical method

RANDOM SAMPLING:

A random sample gives every unit of the population a known and non-zero probability of
being selected. Since random sampling implies equal probability to every unit in the
population, it is necessary that the selection of the sample must be free from human
judgment.

There is some confusion between the two terms ‘random sampling’ and ‘unrestricted’
random sampling. In the latter case, each unit in the population has an equal chance of
being selected in the sample. Such a sample is drawn ‘with replacement’, which means
that the unit selected at each draw is replaced into the population before another draw
is made from it, ‘As such, a unit can be included more than once in the sample.. If the
latter is devised in such a manner that no unit can be included more than once, it will
then be known as the simple random sampling.

It may be noted that while both sample random sampling and unrestricted random
sampling give an equal probability to each unit of the population for being included in
the sample, there are other sample design too which provide equal probability to the
units. The process of randomness is the very core of simple and unrestricted random
sampling. The selection of a sample must be free from bias, which can be ensured only
when the process of selection is free from human judgment.

COLLECTION OF DATA

The study was conducted by the means of personal interview with respondents and the
information given by them were directly recorded on questionnaire.

For the purpose of analyzing the data it is necessary to collect the vital information.
There are two types of data, this are-

• Primary Data

• Secondary data

PRIMARY DATA:-

Primary data can be collected through questionnaire. The questionnaire can be

classified into four main types.

For my market study, I have sleeted structured non-disguised questionnaire because

my questionnaire is well structured, listing of questions are in a prearranged order and
where the object of enquiry is revealed to the respondents.

To making a well-structured questionnaire, we have adopted three type of questions-

• Open ended question

• Multiple choice questions

These types of questions are easy to understand and easy to give required answers.

SECONDARY DATA:-

Secondary data means data that are already available i.e. they refer the data which
have already been collected and analyzed by someone else. When the researcher
utilizes secondary data, than he has to look into various sources from where h e can
obtain them, in this case he is certainly not confronted with the problems that are
usually associated with the collection of original data. Secondary data may either be
published data or unpublished data. Usually published data are available in:

• Various publications of the central, state and local government;

• Various publications of foreign government or of international bodies and their

subsidiary organizational;

• Technical and trade journals;

• Books, magazines and newspapers;

• Reports and publications of various associations connected with business san

industry, stock exchanges etc.;

• Reports prepared by research scholars, universities, economists etc;

• Public records and statistics, historical document and other source of published
information.

The source of unpublished data are many; they may be found in diaries, letters,
unpublished biographies and autobiographies and also may be available with scholars
and research workers, trade associations, labor because and other public private
individuals and organization.

COLLECTION TECHNIQUE:

Primary:

• Questionnaire method

Secondary:

• Books
• Journals
• websites
LIMITATIONS OF THE STUDY

Although the study was carried out with extreme enthusiasm and careful planning there
are several limitations, which handicapped the research viz,

1. Time Constraints:
The time stipulated for the project to be completed is less and thus there are chances
that some information might have been left out, however due care is taken to include all
the relevant information needed.

2. Sample size:
Due to time constraints the sample size was relatively small and would definitely have
been more representative if I had collected information from more respondents.

3. Accuracy:
It is difficult to know if all the respondents gave accurate information; some respondents
tend to give misleading information.

4. It was difficult to find respondents as they were busy in their schedule, and
collection of data was very difficult. Therefore, the study had to be carried out based
on the availability of respondents.
1. From which Bank you have taken personal loans:-

Respondent
ICICI 34
HDFC 38
SBI 14
PNB 16

Interpretation:
According to survey out of 100 respondent 34 are taken loan from ICICI,38 from
HDFC,14 from SBI and 16from PNB.
2.Prefer which types of interest rate

Interest rate Respondent

Floating rate 16

Fixed rate 84

Interpretation:
Out 100 respondent 16 respondent do prefer floating interest rate and rest of 84
respondent are prefer fixed interest rate in personal loan.
Factor influencing of personal loans

3. Interest Rate

Rating 1 2 3 4 5
Respondent 4x1 9x2 23x3 28x4 36x5
Total 4 18 69 112 180

Average score of Respondent = 3.83

Interpretation:
Average score by respondent is near 4 . According to this score we can say that
although the respondent are not giving 5 marks to interest rates but they are
considering it important between the rating of 3 or 4.
4. Simplification of process

Rating 1 2 3 4 5
Respondent 16 18 32 22 12
Total 16 36 96 88 60

Average score of Respondent = 2.96

Interpretation:
Average score by respondent is near 3. According to this score we can say that
although the respondent are not giving 5 marks to simplification of process but they are
considering it important between the rating of 2 or 3
. 5. Documentation

Rating 1 2 3 4 5
Respondent 16 22 32 18 12
Total 16 44 96 72 60

Average score of Respondent =2.88

Interpretation:
Average score by respondent is near 3. According to this score we can say that although
the respondent are not giving 5 marks to documentation but they are considering it
important between the rating of 2 or 3.
 6. Pay back period

Rating 1 2 3 4 5
Respondent 8 14 21 23 34
Total 8 28 63 92 170

Average score of Respondent = 3.61

Interpretation:
Average score by respondent is near 3-4. According to this score we can say that although
the respondent are not giving 5 marks to pay back period but they are considering it
important between the rating of 3 or 4.

.
7. Processing Fees

Rating 1 2 3 4 5
Respondent 28 26 22 15 9
Total 28 52 66 60 45

Average score of Respondent = 2.51

Interpretation:
Average score by respondent is near 2-3. According to this score we can say that although
the respondent are not giving 5 marks to processing fees but they are considering it
important between the rating of 2 or 3.
Facility provide

8.Customer Relation

Rating 1 2 3 4 5
Respondent 24 16 26 22 12
Total 24 32 78 88 60

Average score of Respondent = 2..82

Interpretation:
Average score by respondent is near 3. According to this score we can say that although
the respondent are not giving 5 marks to customer relation but they are considering it
important between the rating of 2 or 3.
9.Timely information’s

Rating 1 2 3 4 5
Respondent 27 19 23 17 14
Total 27 38 69 68 70

Average score of Respondent = 2.72

Interpretation:
Average score by respondent is near 2-3. According to this score we can say that although
the respondent are not giving 5 marks to timely information but they are considering it
important between the rating of 2 or 3.
 10.Flexibility of mode of payment

Rating 1 2 3 4 5
Respondent 10 15 33 20 22
Total 10 30 99 80 110

Average score of Respondent = 3.29

Interpretation:
Average score by respondent is near 3-4. According to this score we can say that although
the respondent are not giving 5 marks to flexibility mode of payment but they are
considering it important between the rating of 3 or 4.
11. Gifts and offers

Rating 1 2 3 4 5
Respondent 15 24 19 22 21
Total 15 48 57 88 105

Average score of Respondent = 3.13

Interpretation:
Average score by respondent is near 3. According to this score we can say that although
the respondent are not giving 5 marks to gifts and offers but they are considering it
important between the rating of 3 or 4.
12. Zero balance a/c opening facilities available in your banks

Respondent

Yes 67

No 33

Interpretation:
Out 100 respondent 67 respondent have zero balance a/c opening facilities and rest of
33 respondent have not that facilities in personal loan.
Facts and Findings

• Respondent mostly prefer fixed interest rates, because in fixed interest rates you
know how much you pay in a fixed time period.
• The procedure of private banks is very easy compare to the public banks.
• Respondent are not giving 5 marks to simplification of process but they are
considering it important between the rating of 2 or 3.
• Respondent are not considering documentation more important but they are
considering it important between the rating of 2 or 3.
• Respondent are not giving 5 marks to pay back period but they are considering it
important between the rating of 3 or 4.
• Respondent consider processing fees important as they are considering it
important between the rating of 2 or 3.
• Respondent are not giving 5 marks to flexibility mode of payment but they are
considering it important between the rating of 3 or 4.
 Conclusion

After analyzing the personal loans policies and procedure , it can be concluded

• Most of the respondents are taken loans from HDFC. Some people taken loan

from ICICI ,PNB and remaining taken loans from SBI .

• Most of the respondents are prefer Fixed interest rate in personal loan and some

respondents are prefer Floating interest rate in personal loans.

• Most of the respondents are considering interest rate are important for personal

loans.

• Most of the people agreed that the simplification of process is not so important.

• Most of the people agreed that the documentation of all the banks is normal.

• Most of the respondents are considering pay back period are important for

personal loans.

• Most of the people agreed that the Processing fees is also not very high.
Recommendation and Suggestion

 Take the time to know and understand all of the terms, conditions and costs of a
loan before you sign the contract.
 Review your credit application and loan documents carefully.
 Ask questions about any items you don't understand before you sign.
 The interest rate and the payment remains the same over the life of the loan.
Equal monthly payments of principal and interest are made until the debt is paid
in full.
 Customer should check the rate of interest in private or public sectors banks
because they have a large difference between them.
 Customers should know a fee that is charged when payment is made after its
due date.
 BIBLIOGRAPHY

BOOKS:-

1. C. R. KOTHARI, RESEARCH METHODOLOGY

NEW DELHI, VIKAS PUBLISHING HOUSE PVT.LTD.1978

2. BERI G C. MARKETING RESEARCH

NEW DELHI, TATA Mc GRAW-HILL PUBLISHING COMPANY LIMITED.

JOURNALS:-

AIMS, A Journal Of Management Sciences , Sep.09’ , Feb.10’

MAGAZINES:-

BUSINESS WORLD, BUSINESS STANDARD

NEWSPAPERS:-

ECONOMIC TIMES, TIMES OF INDIA

WEBSITES:-

www.icicibank.com

www.hdfcbank.com

www.pnbbank.com

www.sbibank.com

www.apnaloan.com
 Questionnaire
NAME: ………………………………………

Age: Gender:

Occupation:……………………………………………………

Annual Income:………………………………………. ……

Q1 From which Bank you have taken personal loans:-

(a) ICICI □

(b) HDFC □

(c) SBI □

(d) PNB □

Q2 What is the minimum personal loans amount your bank provided?

…………………………………………………………..

Q3 you would like to prefer which types of interest rate?

(a) Floating rate □ (b) Fixed rate □

Q4 Factor influencing of personal loans

5 4 3 2 1

(a) Interest Rate □ □ □ □ □

(b) Simplification of process □ □ □ □ □

(c) Documentation □ □ □ □ □

(d) Pay back period □ □ □ □ □

(e) Processing Fees □ □ □ □ □

Q5 Facility provide

5 4 3 2 1

(a) Customer Relation □ □ □ □ □

(b) Timely information’s □ □ □ □ □

(c) Flexibility of mode of payment □ □ □ □ □

(d) Gifts and offers □ □ □ □ □

Q6 Is zero balance a/c opening facilities available in your banks?

Yes □ No □

Q7 what improvement you like to suggest for your personal loans provider?

1 ………………………….

2 ……………………………

3 ……………………………

4 …………………………..
CONSOLIDATED TABLE:

Question Q4 Q5

Rating 3(a) 4(b) 5(c) 6(d) 7(e) 8(a) 9(b) 10(c) 11(d)

5 180 60 60 170 45 60 70 110 105

4 112 88 72 92 60 88 68 80 88

3 69 96 96 63 66 78 69 99 57

2 18 36 44 28 52 32 38 30 48

1 4 16 16 8 28 24 27 10 15

Total 383 296 288 361 251 282 272 329 313