khushabu singh b 66

8/6/2019 Khushabu Singh b 66

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PROJECT REPORT ON

COMPARTIVE STUDY ON CONSUMER SATISFACTIONTOWARDS HOME LOAN FROM PUBLIC AND PRIVATE

SECTOR BANKS IN PATHANKOT

Submitted to:

(LOVELY INSTITUTE OF MANAGEMENT)

MBA B (2nd Sem.)

(Session 2011-2012)

Date- 7 July 2011

Submitted to: Submitted By:

Miss Sukhwinder Kaur Khushau Singh

Roll no. B66Reg no. 11013957

Sec RT 1002

(LIM)


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ACKNOWLEDGEMENT

In the creation gestation and parturition of this term paper several person of the tremendous

height and repute offered their valuable assistance and shared with me their scholastic marvel and

expertise, vision and whipped up my sagging morale to their kind and sincere encomiums and

choicest blessing. Hence, with a sense of profound humility, extend my sincere gratitude to all

those unsung persons, authorities and academicians who have co-operated me in one way or their

giving this project report the final shape.

I express my deep sense of gratitude for Miss. Sukhwinder Kaur who provided me all the

necessary information, guidance and encouragement with whom I was able to solve my problem.

So I salute gesture and pay any thanks to him for the ore my heart.

I also gratitude my all friends who provide me morale support and information regarding project,

I am very thankful to them. I also extremely to those entire person who have supported their

valuable time cooperation to work with me on this project.

Khushabu Singh


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Introduction

The world of banking has assumed a new dimension at dawn of the 21 st century with the

advent of tech banking, thereby lending the industry a stamp of universality. In general,banking may be classified as retail and corporate banking. Retail banking, which is

designed to meet the requirement of individual customers and encourage their savings

includes payment of utility bills, consumer loans, credit cards, checking account and the

like. Corporate banking, on the other hand, caters to the need of corporate customers

like bills discounting, opening letters of credit, managing cash, etc.

Metamorphic changes took place in the Indian financial system during the eighties and

nineties consequent upon deregulation and liberalization of economic policies of the

government. India began shaping up its economy and earmarked ambitious plan for

economic growth. Consequently, a sea change in money and capital markets took place

Application of marketing concept in the banking sector was introduced to enhance the

customer satisfaction the policy of privatization of banking services aims at encouraging

the competition in banking sector and introduction of financial services. Consequently

services such as Demat, Internet banking, Portfolio Management, Venture capital, etc

came into existence to cater to the needs of public. An important agenda for everybanker today is greater operational efficiency and customer satisfaction. The mew

watchword for the bank is pretty ambitious: customer delight.

The introduction to the marketing concept to banking sectors can be traced back to

American Banking Association Conference of 1958. Banks marketing can be defined as


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the part of management activity, which seems to direct the flow of banking services

profitability to the customers. The marketing concept basically requires that there

should be thorough understanding of customer need and to learn about market i

operates in. Further the market is segmented so as to understand the requirement of

the customer at a profit to the banks.

CLASSIFICATION OF BANKS

PUBLIC SECTOR BANKS

Public sector banks are the ones in which the government has a majo

holding. They are divided into two groups i.e. Nationalized Banks and State Bank of India

and its associates. Among them, there are 19 nationalized banks and 8 State Bank

of India associates. Public Sector Banks dominate 75% of deposits and 71% o

advances in the banking industry.Public sector banks are those banks that are owned

by the government. The government owns these banks. In India 20 banks were

nationalized in 1969 and 1980 respectively. Social welfare is there main objective.Introduction of co-operative bank

The Co operative banks in India started functioning almost 100 years ago

The Cooperative bank is an important constituent of the Indian Financial System, judging

by the role assigned to co operative, the expectations the co operative is supposed to

fulfill, their number, and the number of offices the cooperative bank operate. Though the

co operative movement originated in the West, but the importance of such banks have

assumed in India is rarely paralleled anywhere else in the world. The cooperative bank inIndia plays an important role even today in rural financing. The businesses o

cooperative bank in the urban areas also have increased phenomenally in recent years

due to the sharp increase in the number of primary co-operative banks. Co operative

Banks in India are registered under the Co-operative Societies Act. The cooperative bank

is also regulated by the RBI.


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History of the bank

The pathankot central cooperative bank ltd. pathankot is a prestigious bank

in Punjab. The bank was registered on 11.02.1909. The plan to open the bank was

motivated by specially Rai Abrader Badri and Khan Bahadur khan Ahmed Shah with allKhan Bahadur Khan Ahmed shah was the first president of Bank. Bank started his

business in a rented accommodation with a small amount of shared capital Rs. 2 Lac.

The bank constructed own building in 1924 on J.T road, pathankot and inaugurated by

C.A.H Townsend Esq. C.I Commissioner, pathankot. Currently civil line branch of the

bank is acting in this building. The huge building of bank was inaugurated in 1987 by

the financial commissioner (Development), I.A.S. The main branch and NRI branch are

operational in this bank currently. Previously the cooperative societies and individua

organization were having the partnership in bank but now individuals partnership has

retired.

State bank of india

Introduction of the SBI bank

State Bank of India (SBI) was nationalised in July 1955 under the SBI Act of 1955

Seven banks of SBI formed subsidiary and was nationalised on 19th July, 1960.The State

Bank of India is India's largest commercial bank and is ranked one of the top five banks

worldwide. It serves 90 million customers through a network of 9,000 branches and itoffers either directly or through subsidiaries a wide range of banking services.

History of the bank

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 o

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. State Bank of India (SBI) was established on 1July 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.


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Union Bank of India

Introduction of the union bank of india

Union Bank of India (UBI) is one ofIndia's largest state-owned banks (the

government owns 55.43% of its share capital), is listed on the Forbes 2000. It has assets

of USD 13.45 billion and all the bank's branches have been networked with its 1135

ATMs. Its online Telebanking facility are available to all its Core Banking Customers

individual as well as corporate. It has representative offices in Abu Dhabi, United Arab

Emirates, and Shanghai,Peoples Republic of China, and a branch in Hong Kong. Because

of its acronym UBI, the public sometimes confuses it with United Bank of India.

History of the bank

Union Bank of India (UBI) was registered on 11 November 1919 as a limited

company inMumbai and was inaugurated by Mahatma Gandhi. At the time of India's

Independence in 1947, UBI still only had four branches - three in Mumbai and one

in Saurashtra, all concentrated in key trade centres. After Independence UBI accelerated

its growth and by the time the government nationalized it in 1969, it had grown to 240

branches in 28 states. Shortly after nationalization, UBI merged in Belgaum Bank, a

private sector bank established in 1930 that had itself merged in a bank in 1964, the

Shri Jadeya Shankarling Bank. Then in 1985 UBI merged in Miraj State Bank, which had

been established in 1929. In 1999 the Reserve Bank of India requested that UB

acquire Sikkim Bank in a rescue after extensive irregularities had been discovered at the

non-scheduled bank. Sikkim Bank had eight branches located in the North-east, which

was attractive to UBI.

Introduction of the bank

Punjab National Bankwas founded in 1894 and today is the second largest state-

owned commercial bank in India with about 5000 branches across 764 cities. It servesover 37 million customers. The bank has been ranked 248th biggest bank in the world by

the 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

Dubai and Kabul, and representative offices in Almaty, Dubai, Oslo, and Shanghai.

History of the bank
http://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Forbes_2000http://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Peoples_Republic_of_Chinahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/United_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Saurashtra_(region)http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Bankers_Almanac&action=edit&redlink=1http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Oslohttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Forbes_2000http://en.wikipedia.org/wiki/Abu_Dhabihttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/United_Arab_Emirateshttp://en.wikipedia.org/wiki/Shanghaihttp://en.wikipedia.org/wiki/Peoples_Republic_of_Chinahttp://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/United_Bank_of_Indiahttp://en.wikipedia.org/wiki/Mumbaihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Saurashtra_(region)http://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/w/index.php?title=Bankers_Almanac&action=edit&redlink=1http://en.wikipedia.org/wiki/Hong_Konghttp://en.wikipedia.org/wiki/Kabulhttp://en.wikipedia.org/wiki/Almatyhttp://en.wikipedia.org/wiki/Dubaihttp://en.wikipedia.org/wiki/Oslohttp://en.wikipedia.org/wiki/Shanghai


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Punjab National Bank was registered on 19 May 1894 under the Indian Companies Act

with its office in Anarkali Bazaar Lahore. The founding board was drawn from different

parts of India professing different faiths and a varied back-ground with, however, the

common objective of providing country with a truly national bank which would further the

economic interest of the country. The board first met on 23 May 1894.

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 Oudh

Commercial Bank, was established in 1881 in Faizabad, but failed in 1958.)

PNB has had the privilege of maintaining accounts of national leaders such as Mahatma

Gandhi, ShriJawahar Lal Nehru, Shri Lal Bahadur Shastri, Shrimati Indira Gandhi, as wel

as the account of the famousJalianwala Bagh Committee.

PRIVATE SECTOR BANKS

Private sector banks came into existence to supplement the performance of Public secto

banks and serve the needs of the economy better. As the public sector banks wer

merely in the hands of the government, banks had no incentive to make profits an

improve the financial health. Nationalized killed competition and stifled competition i

banking. Banks operated in regulatory environment with administered rate of interes

structure; quantitative restrictions on credit flows, high reserve requirements an

significant proportion of lend able resources going to the priority and governmen

sectors. This resulted in low levels of investment and growth, decline in productivity an

erosion of profitability of banking sector.

Thus, Narasimham Committee I (1991) which recommended the free entry of new bank

in the financial market provided they confirm the minimum start up capital and othe

requirements by the permission of Reserve Bank of India. Currently there are 31 PrivatSector Banks, which includes 23 old, and 8 new banks.

INTRODUCTION OF ICICI BANK

ICICI Bank is India's second-largest bank with total assets of about Rs.1,67,659

crore at March 31, 2005 and profit after tax of Rs. 2,005 crore for the year ended March

31, 2005 (Rs. 1,637 crore in fiscal 2004). ICICI Bank has a network of about 560
http://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Jalianwala_Baghhttp://en.wikipedia.org/wiki/Lahorehttp://en.wikipedia.org/wiki/Faizabadhttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Mahatma_Gandhihttp://en.wikipedia.org/wiki/Jawahar_Lal_Nehruhttp://en.wikipedia.org/wiki/Lal_Bahadur_Shastrihttp://en.wikipedia.org/wiki/Indira_Gandhihttp://en.wikipedia.org/wiki/Jalianwala_Bagh


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branches and extension counters and over 1,900 ATMs.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financia

institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity

offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of

Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary

market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was

formed in 1955 at the initiative of the World Bank, the Government of India and

representatives of Indian industry.

HISTORY of the bank

History ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financia

institution, and was its wholly owned subsidiary. ICICI's shareholding in ICICI Bank was

reduced to 46% through a public offering of shares in India in fiscal 1998, an equity

offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition ofBank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary

market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. ICICI was

formed in 1955 at the initiative of the World Bank, the Government of India and

representatives of Indian industry. The principal objective was to create a development

financial institution for providing medium-term and long-term project financing to Indian

businesses.

In the 1990s, ICICI transformed its business from a development financial institution

offering only project finance to a diversified financial services group offering a wide

variety of products and services, both directly and through a number of subsidiaries and

affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first

bank or financial institution from non-Japan Asia to be listed on the NYSE.

Introduction of HDFC bank

HDFC Bank is a major Indian financial services company based in 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 1,725 branches and over 5,000 ATMs, in 780 cities in India, and all branches of thebank are linked on an online real-time basis. As of 30 September 2008 the bank had

total assets of Rs.1006.82 billion. For the fiscal year 2010-11, the bank has reported net

profit of 3,926.30 crore (US$875.56 million), up 33.1% from the previous fiscal. Tota

annual earnings of the bank increased by 20.37% reaching at 24,263.4 crore (US$5.41

billion) in 2010-11.
http://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Financial_servicehttp://en.wikipedia.org/wiki/Indiahttp://en.wikipedia.org/wiki/Reserve_Bank_of_Indiahttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Housing_Development_Finance_Corporationhttp://en.wikipedia.org/wiki/Assetshttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollarhttp://en.wikipedia.org/wiki/Crorehttp://en.wikipedia.org/wiki/United_States_dollar


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It is one of the Big Four banks of India, along with State Bank of India, ICIC

Bank and Punjab National Bankits main competitors.

History of the bank

HDFC Bank was incorporated in 1994 by Housing Development Finance Corporation

Limited (HDFC), India's largest 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 started operations as a scheduled

commercial bank in January 1995 under the RBI's liberalisation policies.

HDFC Bank was amongst the first to receive an 'in-principle' approval from the

Reserve Bank of India (RBI) to set up a bank in the private sector from Housing

Development Finance Corporation Limited (HDFC), in 1994 during the period o

liberalisation of the banking sector in India. HDFC India was incorporated in August 1994

in the name of 'HDFC Bank Limited'. HDFC India commenced operations as a ScheduledCommercial Bank in January 1995.

Introduction of the YES bank

The Cheque Collection Policy of Yes Bank Limited is a reflection of our on-going

efforts to provide best in class service to our customers and set higher standards for

performance. The policy is based on principles of transparency and fairness in the

treatment of customers. This policy document covers -Collection of cheques and other

instruments payable locally and at centers within India and outside India Oucommitment regarding time norms for collection of instruments Policy on payment o

interest in cases where the bank fails to meet time norms for realization of proceeds of

outstation instruments Our policy on dealing with collection instruments for checks

dishonored / lost in transitThe debt collection policy of YES BANK is built around dignity

and respect to customers. YES BANK will not follow policies that are unduly coercive in

collection of dues. The policy is built on courtesy, fair treatment and persuasion. YES

BANK believes in following fair practices with regard to collection of dues and

repossession of security and thereby fostering customer confidence and long-term

relationship.

History history of the bank

yes Bank was incorporated as a Public Limited Company on November 21, 2003

Subsequently, on December 11, 2003, RBI was informed of the participation of three

private equity investors namely {Citicorp International Finance Corporation

ChrysCapital II, LLC and AIF Capital Inc.), to achieve the financial closure of the Bank. RB
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by their letter dated February 26, 2004 provided their no-objection to the participation of

the three private equity investors namely Citicorp International Finance Corporation

ChrysCapital II, LLC and AIF Capital Inc. in the equity of the Bank at 10%, 7,5% and

7.5%, respectively, and also advised the Bank to infuse a sum of Rs. 2000 million as the

paid up capital. Additionally, the RBI advised the Bank to submit an application for fina

approval after completion of all formalities for incorporation as a banking company and

setting out the capital structure of the Bank as approved by RBI.

Federal bank

Introduction of the bank

A Federal Reserve Note is a type ofbanknote used in the United States of America

Federal Reserve Notes are printed by the United States Bureau of Engraving and

Printing on paper made by Crane & Co. ofDalton, Massachusetts. They are the only type

of U.S. banknote that is still produced today and they should not be confusedwith Federal Reserve Bank Notes.

Federal Reserve Notes are authorized by Section 411 of Title 12 of the United

States Code and are issued to the Federal Reserve Banks at the discretion of the Board o

Governors of the Federal Reserve System. The notes are then put into circulation by the

Federal Reserve Banks. Once the notes are put into circulation, they become liabilities of

the Federal Reserve Banksand obligations of the United States.

Federal Reserve Notes are fiat currency, with the words "this note is lega

tender for all debts, public and private" printed on each note. (See generally 31U.S.C. 5103.) They have replaced United States Notes, which were once issued by

theTreasury Department.

History of the bank

Prior to centralized banking, each commercial bank issued their own notes. The

first institution with responsibilities of a central bank in the U.S. was the First Bank of the

United States, chartered in 1791 by Alexander Hamilton. Its charter was not renewed in

1811. In 1816, theSecond Bank of the United States was chartered; its charter was no

renewed in 1836, after it became the object of a major attack by president AndrewJackson. From 1837 to 1862, in theFree Banking Era there was no formal central bank

and banks issued their own notes again. From 1862 to 1913, a system of national banks

was instituted by the 1863 National Banking Act. The first printed notes were Series 1914

and in 1928 in order to save millions of dollars the size of the note was reduced to the

size it is today.

The Chief Objectives of this study are:
http://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Bureau_of_Engraving_and_Printinghttp://en.wikipedia.org/wiki/Bureau_of_Engraving_and_Printinghttp://en.wikipedia.org/wiki/Crane_%26_Co.http://en.wikipedia.org/wiki/Dalton,_Massachusettshttp://en.wikipedia.org/wiki/Federal_Reserve_Bank_Notehttp://en.wikipedia.org/wiki/Federal_Reserve_Bankhttp://en.wikipedia.org/wiki/Board_of_Governors_of_the_Federal_Reserve_Systemhttp://en.wikipedia.org/wiki/Board_of_Governors_of_the_Federal_Reserve_Systemhttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Legal_tenderhttp://en.wikipedia.org/wiki/Legal_tenderhttp://en.wikipedia.org/wiki/Title_31_of_the_United_States_Codehttp://en.wikipedia.org/wiki/Title_31_of_the_United_States_Codehttp://www.law.cornell.edu/uscode/31/5103.htmlhttp://en.wikipedia.org/wiki/United_States_Notehttp://en.wikipedia.org/wiki/United_States_Department_of_the_Treasuryhttp://en.wikipedia.org/wiki/First_Bank_of_the_United_Stateshttp://en.wikipedia.org/wiki/First_Bank_of_the_United_Stateshttp://en.wikipedia.org/wiki/Alexander_Hamiltonhttp://en.wikipedia.org/wiki/Second_Bank_of_the_United_Stateshttp://en.wikipedia.org/wiki/Andrew_Jacksonhttp://en.wikipedia.org/wiki/Andrew_Jacksonhttp://en.wikipedia.org/wiki/Free_Banking_Erahttp://en.wikipedia.org/wiki/National_Banking_Acthttp://en.wikipedia.org/wiki/Banknotehttp://en.wikipedia.org/wiki/Bureau_of_Engraving_and_Printinghttp://en.wikipedia.org/wiki/Bureau_of_Engraving_and_Printinghttp://en.wikipedia.org/wiki/Crane_%26_Co.http://en.wikipedia.org/wiki/Dalton,_Massachusettshttp://en.wikipedia.org/wiki/Federal_Reserve_Bank_Notehttp://en.wikipedia.org/wiki/Federal_Reserve_Bankhttp://en.wikipedia.org/wiki/Board_of_Governors_of_the_Federal_Reserve_Systemhttp://en.wikipedia.org/wiki/Board_of_Governors_of_the_Federal_Reserve_Systemhttp://en.wikipedia.org/wiki/Fiat_moneyhttp://en.wikipedia.org/wiki/Legal_tenderhttp://en.wikipedia.org/wiki/Legal_tenderhttp://en.wikipedia.org/wiki/Title_31_of_the_United_States_Codehttp://en.wikipedia.org/wiki/Title_31_of_the_United_States_Codehttp://www.law.cornell.edu/uscode/31/5103.htmlhttp://en.wikipedia.org/wiki/United_States_Notehttp://en.wikipedia.org/wiki/United_States_Department_of_the_Treasuryhttp://en.wikipedia.org/wiki/First_Bank_of_the_United_Stateshttp://en.wikipedia.org/wiki/First_Bank_of_the_United_Stateshttp://en.wikipedia.org/wiki/Alexander_Hamiltonhttp://en.wikipedia.org/wiki/Second_Bank_of_the_United_Stateshttp://en.wikipedia.org/wiki/Andrew_Jacksonhttp://en.wikipedia.org/wiki/Andrew_Jacksonhttp://en.wikipedia.org/wiki/Free_Banking_Erahttp://en.wikipedia.org/wiki/National_Banking_Act


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1. To find which bank sector that is largely availed by the customer of home loan.

2. To study the factors influencing the choice of a bank for availing services.

4. To find and compare the satisfaction level of customers in home loan in public sector

as well as in private sectors bank.

6. To study the problem faced by customer in home loan.

7. To get suggestions for improvement or change in the home loan services of public

and private sector banks.

8. To study what do people expect in home loan of banking.

Need of the study

As the banking sector has been growing in India day by day, so as a researcher we

want to study the consumer satisfaction towards home loan from public and private

sector banks in pathankot and the factors that they (customer) consider while choosing

the banks.

Scope of the study

The scope of the study is confined in comparing the Public sector and Private

sector banks in terms on home loan of consumer perception.

RESEARCH METHODOLOGY

Research is an art of scientific investigation. In other word research is a scientific and

systematic search for pertinent information on a specific topic. The logic behind taking

research methodology into consideration is that one can have knowledge about the

method and procedure adopted for achievement of objectives of the project. With the

adoption of this others can evaluate the results also. Its main aim is to keep the

researchers on the right track.

The methodology adopted for studying the objectives was surveying of the home loan

district pathankot. So keeping in view the nature of requirements of the study to collect


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all the relevant information regarding the home loan with 4 public bank and 4 privet

bank, direct personal interview method with structured questionnaire was adopted fo

the collection of primary data.

Secondary data has been collected through the various magazines and newspapers and

by surfing on Internet. And the guide in the organization was consulted at many times.

SAMPLE DESIGN

A sample design is a definite plan for obtaining a sample from a given population. It

refers to the techniques or the procedure the researcher would adopt in selecting items

for the sample. Sample design may as well lay down the number of items to be included

in the sample and the size of the sample. Sample design is determined before data are

collected. Here we select the population as sample in our sample design. The selected

respondents should be as representatives of the total population.

POPULATION

The persons who related to home loan District pathankot were taken int

consideration.

DATA COLLECTION

Data was collected by using main two methods primary data and secondary data.

PRIMARY DATA

Primary data is the data which is used or collected for first time and it is not used by

anyone in the past. There are number of sources of primary data from which the

information can be collected. We choose the following resources for our research.

QUESTIONNAIRE


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This method of data collection is quite popular, particular in case of big enquiries. Here

in our research we set 15 simple questions and request the respondents to answer these

questions with correct information.

RESPONDENTS

Respondents helps in creation of more accurate idea about our research. We personally

meet the respondents inside and outside the banks.

SECONDARY DATA

Secondary data is the data which is available in readymade form and which is already

used by people for some purposes. There may be various sources of secondary data

such as-newspapers, magazines, journals, books, reports, documents and othe

published information.

BANKS ANNUAL REPORTS

Banks issues there annual reports to get the people informed with the profitability and

growth of the bank. These annual reports helps us a lot to get the latest data and other

related information for our research. It tells us about the increase or decrease in profits

and other facilities.

JOURNALS AND PUBLICATIONS OF DIFFERENT BANKS

We also take into consideration the journals and publications issued by the bank at

different times. we comes to know about the home loan of the deferent branched o

bank.

MANUALS AND BROACHERS OF DIFFERENT BANKS

We take the help of bank staff and other people who gives us deep information and data

of home loan which may not be available at anywhere. They gives us there full co-

operation.

INTERNET


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We also take into consideration the internet facility with which we collect lot of latest

information.

SAMPLE PLAN

SAMPLE SIZE

Keeping in mind all the constraints the size of the sample of the study was selected

as 40.

SAMPLING UNIT

The Gurdaspur central co-operative bank Pathankot city. Due to nature of study, we also

visited various different banks ICICI, HDFC, SBI, PUNJAB NATIONAL BANK, UNIAN BANK

CO-OPERATIVE BANK, YES BANK, FEDERAL BANK etc. of Pathankot District.

SAMPLING TECHNIQUE

Stratified convenient sampling. All the home loan were taken into consideration

Research was conducted on clear assumptions that the respondents would give frank

and fair answers in a pragmatic way and without any bias.

SAMPLING DESCRIPTION

In order to understand the nature and characteristics of various respondents in this

study, the information was collected and analyzed according to their socio economic

background which included the characteristic of their respondents. This description

shows that respondents included in this survey belong to home loan and this turn

increase the scope of the study.

DATA ANALYSIS TOOLS

The most often tools used to examine are

1 Mean

2 Mode


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3 Median

4 Standard Deviation

5 Dispersion

6 Coefficient of Co-Relation

7 Regression

HYPOTHESIS

Null

H0 =Consumer Perception is independent of gender.

H0= Consumer Perception is independent of occupation.

H0= Consumer Perception is independent of qualification.

Alternate

H1= Consumer Perception is not independent of gender.

H1= Consumer Perception is not independent of occupation.

H1= Consumer Perception is not independent of qualification.

HDFC Home Loan Types-

HDFC Home Purchase Loan: Purchase a new or resale property, or to construct a

home.

HDFC Home Improvement Loan: Repair an existing home, or to refurbish it (ex.

painting, plumbing, electrical work etc)

HDFC Home Extension Loan: Extend an existing home by adding additional

rooms or storeys.

HDFC Land Purchase Loan: Purchase land without immediate construction of

house

ICICI Home Loan Types

ICICI Home Loan: Purchase a new or resale property, or to construct a home


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ICICI Home Improvement Loan: Repair an existing home, or to refurbish it (ex.

painting, plumbing, electrical work etc)

ICICI Land Loan: Purchase land for construction of house in near future

ICICI EMI Under Construction: Purchase home that is already under construction

ICICI Balance Transfer Loan: Transfer home loan from other banks/financial

institutions

ICICI Top-Up Loan: Get additional funds for personal requirements on the existing

home Loan on the same property

ICICI Office Premises Loan: For entrepreneurs to purchase, construct or extend

their office premises

Union Bank home loan Types

UNION Bank Home Loan: Purchase a new or resale property, or to construct a

home

UNION Bank Home Improvement Loan: Repair an existing home, or to refurbish

it (ex. painting, plumbing, electrical work etc)

UNION Land Loan: Purchase land for construction of house in near future

UNION Bank Home Extension Loan: Extend an existing home by adding

additional rooms or storey.

UNION Top-Up Loan: Get additional funds for personal requirements on theexisting home Loan on the same property

Features & Benefits

Features & Benefits of HDFC Home Loan

By automated repayment, customer can repay home loan EMIs directly from their

HDFC Bank savings account, saving customer the trouble of procuring, signing and

tracking post-dated cheques

Home loan customers can avail other loans (such as HDFC Personal Loans, HDFC Car

Loans, Two-wheeler Loans and Loan against securities) at lower interest rates

HDFC home loans are one of the lowest interest rates in the market

Fixed or floating structures are both available. Individual and join home loan are

supported


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When home loan interest rates changes, customer can opt to pay same EMI so that

their tenure increases/decreases based on interest rate change

Repayment schemes like 'Step Up Repayment, Accelerated Repayment Scheme'

which help customers decide higher EMIs when they get increments

Features & Benefits of ICICI Home Loan

Partial pre-payment on your ICICI home loan can be made without incurring any

charges

Documentation is simple

ICICI offers doorstep service for ICICI home loans, thus saving you a lot of time

ICICI will pre-sanction your ICICI home loan even before you identify your property

Features & Benefits of UNION Bank Home Loan

Loans available for purchase, construction, repair/improvement/extension of

independent house/flat and purchase of second property or plots sold by a

government-recognized agency viz., HUDA, HOUSEFED and such others.

Provisions of Free Building Insurance, Natural Death Insurance and Free Personal

accident cover.

Value- added services like issue of credit card

Union Mortgage scheme provides loans against properties to those within the age

group of 18-60 years of age owning residential/ commercial property) and areincome tax assesses having net monthly income of Rs.10, 000 per month in the case

of salaried persons and an annual income of Rs.1.20 lakh per annum (in case of non

salaried individuals).A top-up loan for existing home loan borrowers who have repaid

at least 24 home loan EMI's or if the net monthly take-home income is not be less

than 35 per cent of the gross monthly income/earnings after considering all

deductions including the EMI of the proposed top-up loan.

Interest Rates for various loan amount-

Bank name Interest

Type

Interest Rates for various loan amount

upto 5 upto 5 20-30 30-50 50-75 >75


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lakh lakh lakh lakh lakh lakh

ICICI Bank Floating 8.75 8.75 8.75 9 9.5 9.5

ICICI Bank -

Special

Scheme

Floating 8.25 8.25 8.25 NA NA NA

ICICI Bank Fixed 16 16 16 16 16 16

HDFC Floating 8.75 8.75 8.75 9 9.25 9.25

HDFC Fixed 14.25 14.25 14.25 14.25 14.25 14.25

HDFC -

Special

Scheme

Floating 8.25 8.25 8.25 8.25 8.25 8.25

Union Bank ofIndia Floating 9.5 9.5 9.5 9.75 10.25 10.25

Service Charges & Fees -

Charges HDFC BANK ICICI BANK UNION BANK

Processing Fees 0.5% of the loan

amount, capped atRs. 10,000

0.5% of the loan

amount or Rs.1500/- (Rs. 2000/-

for Mumbai, Delhi

& Bangalore),

whichever is

higher +

applicable Service

Tax & Surcharge

0.50% of loan amount

subject to a maximum ofRs.15000/- plus service tax

as applicable

Prepayment Fees 2% of amount

being prepaid

NIL - 2% +

applicable Service Tax & Surcharge

on full prepayment

NIL

Loan Tenure 1 year to 20 years 1 year to 20 years 1 year to 20 years


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Amount Funded Up to 85% of

property value

Up to 80% of

property value

Up to 80% of property

value

ICICI Bank is the best for us because

Attractive interest rates

Personalized home loan counseling

Legal and technical assistance

Home loan insurance-ICICI Bank Home Loans provides "Home Safe Plus"

& "Home Assure/Health Assure" two exclusive and innovative insurance plans to

insure your Home Loan.

Home Safe Plus

Key Benefits of Home Safe Plus:

No medical checkup

Comprehensive insurance plan for individual, home and its contents

Single premium long-term insurance plan

Premium paid for the Critical Illness cover is eligible for tax benefits u/s 80D of

the Income Tax Act

Sum Insured remains constant throughout the policy period (loan O/S amount

to come to bank, rest goes to individual)

Multiple applicants can be covered under the same loan

Simple application form

Home Assure/Health Assure

Key Benefits of Home Assure/Health Assure:

Life Cover from Home Assure for the entire home loan tenure

Critical Illness cover from life threatening illnesses like cancer, coronary

artery bypass, heart attack, kidney failure, stroke, major organ transplant

Special non-medical limits only for ICICI Bank Home Loans customers


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Dual benefit to customers, Life Cover from Home Assure and Critical Illness

Cover from Health Assure

Dual tax benefits, Section 80C benefits under Home Assure, Section 80D

benefits under Health Assure

Simplified claim procedure

Questionnaire

1) What is your occupation?

1 - Business man

2 - Student

3 - Government Employee

4 - former

5 Other

Interpretation:-

2) from how many years you are associated with this bank?

1 - Less than 1 year

2 - 1-5 years

3 - 5 More than 20

Interpretation:-

3) How do you come to know about the home loan schemes of that

bank?

1 - News paper

2 - Television

3 - Internet


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4 - Other resources

Interpretation:-

4) Are you aware of these types of home loans?

1 - Home purchase loan

2 - Home construction loan

3 - Home improvement loan

4 - Home equity loan

5 - Land purchase loan

Interpretation:-

5) Are you aware all terms and conditions of home loans?

1 - Yes

2 - No

Interpretation:-

6) Are you satisfy with the interest rate charges by your bank?

1 - Strongly agree

2 - Agree

3 - Disagree

4 - Strongly disagree

Interpretation:-


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7) Your bank offers which type of services?

1 - Mobile banking

2 - Net banking

3 - Forex banking

Interpretation:-

8) Do you agree that your bank loan processing is fast?

1 - Strongly agree

2 - Agree

3 - Disagree


Interpretation:-

9) Do you satisfy with the after home loan services provided by your

bank are best as compare to other bank?

1 - Strongly agree

2 - Agree

3 - Disagree


Interpretation:-

10) Does the cost of home loan is appropriate, according to your

demand?

1 - Yes

2 - No


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Interpretation:-

11) Are you satisfy with the employees behavior of the bank?

1 - Strongly agree

2 - Agree

3 - Disagree

4 - strongly disagree

Interpretation:-

12) Does the bank give any discount upon loan services?

1 - Yes

2 - No

Interpretation:-

13) Are you satisfy by the time taken in sanctioning the loan?

1 - Yes

2 No

Interpretation:-

14) Have you face any difficulty during taking the loan?

1 - Yes

2 - No

Interpretation:-


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15) Which grade you want to give of home loan schemes of the

bank?

1 - Excellent

2 - Good

3 - Average

4 - below average

Interpretation:-

khushabu singh b 66

Documents