History of Banking By Gunjan Prajapati

8/18/2019 History of Banking By Gunjan Prajapati

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CHAPTER- 1

INTRODUCTION

CHAPTER- 1

INTRODUCTION

1.1-INTRODUCTION

HISTORY OF BANKINGBanking is nearly as old as civilization. Te istory o! "anking co#ld "e said to ave

started $it te a%%earance o! &oney. Te !irst record o! &inted &etal coins $as in

'eso%ota&ia in a"o#t ()**B.+. te !irst ,#ro%ean "anknotes- $ic $as and$ritten

a%%eared in//- in S$eden. ce0#e and %rinted %a%er &oney a%%eared in te 1**2s

and 3**2s- $it &any "anks created to deal $it increasing trade.

Te istory o! "anking in eac co#ntry r#ns in lines $it te develo%&ent o! trade

and ind#stry- and $it te level o! %olitical con!idence and sta"ility. Te ancient

Ro&ans develo%ed an advanced "anking syste& to serve teir vast trade net$ork-

$ic e4tended tro#go#t ,#ro%e- Asia and A!rica.

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'odern "anking "egan in 5enice. Te $ord "ank co&es !ro& te Italian $ord 6ban

co”, &eaning "enc- "eca#se &oneylenders $orked on "ences in &arket %laces. Te

"ank o! 5enice $as esta"lised in 1 to el% te govern&ent raise !inance !or a $ar.

At te sa&e ti&e- in ,ngland &ercant started to ask golds&its to old gold and

silver in teir sa!es in ret#rn !or a !ee. Recei%ts given to te 'ercant $ere so&eti&es

#sed to "#y or sell- $it te &etal itsel! staying #nder lock and key. Te golds&it

realized tat tey co#ld lend o#t so&e o! te gold and silver tat tey ad and carge

interest- as not all o! te &ercants $o#ld ask !or te gold and silver "ack at te sa&e

ti&e. ,vent#ally- instead o! carging te &ercants- te golds&its %aid te& to

de%osit teir gold and silver.

Te "ank o! ,ngland $as !or&ed in /78 to "orro$ &oney !ro& te %#"lic !or te

govern&ent to !inance te $ar o! A#gs"#rg against France. By 1*7- golds&it $ere#sing "ank o! ,ngland notes o! teir o$n recei%ts.

Ne$ tecnology trans!or&ed te "anking ind#stry in te 7**2s ro#nd te $orld-

"anks &erged into larger and !e$er gro#%s and e4%anded into oter co#ntry.

1.2-BANKING STRUCTURE IN INDIA:

In today2s dyna&ic $orld "anks are inevita"le !or te develo%&ent o! a co#ntry.

Banks %lay a %ivotal role in enancing eac and every sector. Tey ave el%ed "ring

a dra$ o! develo%&ent on te $orld2s orizon and develo%ing co#ntry like India is no

e4ce%tion.

Banks !#l!ills te role o! a !inancial inter&ediary. Tis &eans tat it acts as a veicle

!or &oving !inance !ro& tose $o ave s#r%l#s &oney to 9o$ever te&%orarily:

tose $o ave de!icit. In everyday "ranc ter&s te "anks cannel !#nds !ro&

de%ositors $ose acco#nts are in credit to "orro$ers $o are in de"it.

;ito#t te inter&ediary o! te "anks "ot teir de%ositors and teir "orro$ers $o#ld

ave to contact eac oter directly. Tis can and does a%%en o! co#rse. Tis is $at

as lead to te very !o#ndation o! !inancial instit#tion like "anks.

Be!ore !e$ decades tere e4isted so&e in!l#ential %eo%le $o #sed to land &oney.

B#t a s#"stantially ig rate o! interest $as carged $ic &ade "orro$ing o! &oney

o#t o! te reac o! te &a


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Te Bank ave develo%ed teir roles to s#c an e4tent tat a direct contact "et$een

te de%ositors and "orro$ers in no$ kno$n as disinter&ediation.

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Banking ind#stry as al$ays revolved aro#nd te traditional !#nction o! taking

de%osits- &oney trans!er and &aking advances. Tose tree are closely related to eac

oter- te o"


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A!ter inde%endence in 781 and %rocla&ation in 7)* te co#ntry set a"o#t dra$ing

its road &a% !or te !#t#re %#"lic o$nersi% o! "anks $as seen inevita"le and SBI

$as created in 7)) to s%earead te e4%ansion o! "anking into r#ral India and s%eed

#% te %rocess o! &agnetization.

?olitical co&%#lsion2s "ro#gt a"o#t nationalization o! "ank in 7/7 and lo""ying "y

"ank e&%loyees and teir #nions added to te list o! nationalized "anks a !e$ years

later.

Slo$ly te #nions gre$ in strengt- $ile "ank &anage&ent stagnated. Te cas#alty

$as to te c#sto&er service declined- co&%laints increased and "ank &anage&ent

$as #na"le to ite& te rot.

In te &eanti&e- tecnology $as "eco&ing a glo"al %eno&enon lacking a vision o!

te !#t#re and te "anks erred "adly in o%%osing te tecnology #% gradation o!

"anks. Tey &istakenly "elieved te tecnology $o#ld lead to retrenc&ent and

event#ally te &arginalization o! #nions.

Te %ro"le& !aced "y te "anking ind#stry soon s#r!aced in teir "alance seets. B#t

te %revailing acco#nting %ractices #na"le "anks to dodge te iss#e.

Te r#les o! te ga&e #nder $ic "anks o%erated canged in 77@. Nor&s or inco&e

Recognition- Assets classi!ication and loan loss %rovisioning $ere %#t in %lace and

ca%ital ade0#acy ratio "eco&e &andatory. Te c#lative i&%act o! all tese canges

as "een on te conce%t o! state o$nersi% in "anks. It is increasingly "eco&ing clear

tat te state o$nersi% in "ank is no longer s#staina"le.

Te a&end&ent o! "anking reg#lation act in 77@ sa$ te entry o! ne$ %rivate sector

"anks and !oreign "anks.

'AOR ?>AY,R IN INIA. HF+ BANK >T

(. I+I+I BANK >T

@. STAT, BANK OF INIA >T

8. ?CNAB NATOINA> BANK >T

). BANK OF BAROA >T/. F,,RA> BANK >T

1. ADIS BANK >T

3. ING 5YSYA BANK >T

7. IBI BANK >T

*. INCSIN BANK >T

. Y,S BANK >T

1.#-INTRODUCTIONTe Ho#sing evelo%&ent Finance +or%oration >i&ited 9HF+: $as a&ongst te

!irst to receive an Ein %rinci%leE a%%roval !ro& te Reserve Bank o! India 9RBI: to

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set #% a "ank in te %rivate sector- as %art o! te RBIEs li"eralization o! te Indian

Banking Ind#stry in 778. Te "ank $as incor%orated in A#g#st 778 in te na&e

o! EHF+ Bank >i&itedE- $it its registered o!!ice in '#&"ai- India. HF+ Bank

co&&enced o%erations as a Sced#led +o&&ercial Bank in an#ary 77). HF+ is

IndiaEs %re&ier o#sing !inance co&%any and eni&ited 9te Bank: is an India"ased "anking

co&%any engaged in %roviding a range o! "anking and !inancial services- incl#ding

co&&ercial "anking and treas#ry o%erations. Te Bank as a net$ork o! 8(

"rances and @(7) a#to&ated teller &acines 9AT's: in )(3 cities and total

e&%loyees is )(/31.

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7

Sna$%&o'

+o&%any Backgro#nd Finance Banks ?rivate Sector.

Ind#stry HF+ Gro#%

B#siness Gro#% @=(=778

Incor%oration ate @=(=77)

Face 5al#e *.****

+o&%any=B#siness Registration No IN,*8*A**3

Key O!!icials +,O Aditya %#ri


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1.(- HISTORY O) HD)C BANK

HF+ BANK >T $as incor%orated in A#g#st 778 in te na&e o! EHF+ Bank

>i&itedE-$it its registered o!!ice in '#&"ai- India. HF+ Bank co&&enced

o%erations as a Sced#led +o&&ercial Bank in an#ary 77).

I! ever tere $as a &an $it a &ission it $as Ha%*+&b&a Pa/&, )o+n0/ an0

C&a*an-E*/'+%, o HD)C Go+$. HD)C BANK "TD $as a&ongst te !irst

to set #% a "ank in te %rivate sector. Te "ank $as incor%orated on @*t A#g#st 778

in te na&e o! HF+ Bank >i&ited2- $it its registered o!!ice in '#&"ai.It

co&&enced o%erations as a Sced#led +o&&ercial Bank on /t an#ary 77). Te

"ank as gro$n consistently and is no$ a&ongst te leading %layers in te ind#stry

.

HF+ is IndiaEs %re&ier o#sing !inance co&%any and eni&ited and Te National Stock ,4cange o! India >i&ited.

Te BankEs A&erican e%ository Sares 9AS: are listed on te Ne$ York Stock ,4cange 9NYS,: #nder te sy&"ol EHBE and te BankEs Glo"al e%ository

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Recei%ts 9GRs: are listed on >#4e&"o#rg Stock ,4cange #nder ISIN No

CS8*8)F(**(.

1.4-ISSION

I. ;orld +lass Indian Bank

II. Benc&arking against international standards.

III. To "#ild so#nd c#sto&er !rancises across distinct "#sinesses

I5. Best %ractices in ter&s o! %rod#ct o!!erings- tecnology- service levels- risk

&anage&ent and a#dit co&%liance

5ISION STATEENT O) HD)C BANK

Te HF+ Bank is co&&itted to &aintain te igest level o! etical standards-

%ro!essional integrity and reg#latory co&%liance. HF+ Bank2s "#siness %iloso%y

is "ased on !o#r core val#es s#c as

. O%erational e4cellence.(. +#sto&er Foc#s.

@. ?rod#ct leadersi%.

8. ?eo%le.

Te o"


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Na*/D

S&6a*aa Go$na'& +

Pa/%& S+'&ana e%#ty 'anaging irector

A N Ro6 irector

K/ %'6 irector

R/n+ Kana0 irector

Na*/ D/%7na'on

Aditya ?#ri 'anaging irector

Kaizad Bar#ca ,4ec#tive irector

Bo""y ?arik irector

?arto atta irector

'alay ?atel Additional irector

BUSINESS HEADS

S. No. Na*/ o D/c'o D/%7na'on

'rs. Sya&ala Go%inat ?art Ti&e Non ,4ec#tive +air%erson and

Inde%endent irector

( 'r. ?arto atta Inde%endent irector

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@ 'r. Bo""y ?arik Inde%endent irector

8 'r. A N Roy Inde%endent irector

) 'r. 'alay ?atel Inde%endent irector

/ 'r. Keki 'istry Non,4ec#tive irector

1 'rs. Ren# Karnad Non,4ec#tive irector

3 'r. Aditya ?#ri 'anaging irector

7 'r. ?ares S#ktankar e%#ty 'anaging irector

* 'r. Kaizad Bar#ca ,4ec#tive irector

%. S&6a*aa Go$na'&?art Ti&e Non ,4ec#tive +air%erson and Inde%endent irector

'rs. Sya&ala Go%inat olds a 'asterEs egree in +o&&erce and is a +AIIB. 'rs.

Go%inat as over @7 years o! e4%erience in !inancial sector %olicy !orlation in

di!!erent ca%acities at RBI. As e%#ty Governor o! RBI !or seven years and &e&"er

o! te Board- 'rs. Go%inat ad "een g#iding and in!l#encing te national %olicies in

te diverse areas o! !inancial sector reg#lation and s#%ervision- develo%&ent and

reg#lation o! !inancial &arkets- ca%ital acco#nt &anage&ent- &anage&ent o!

govern&ent "orro$ings- !ore4 reserves &anage&ent and %ay&ent and settle&ent

syste&s. #ring (***@- 'rs. Go%inat $orked as senior !inancial sector e4%ert in

te ten 'onetary A!!airs and ,4cange e%art&ent o! te International 'onetary

F#nd 9Financial Instit#tions ivision:. Se $as res%onsi"le !or %re%aring te

acco&%anying doc#&ent to te G#idelines on Foreign ,4cange Reserve

'anage&ent detailing co#ntry %ractices. 'rs. Go%inat $as a &e&"er o! te FSA?

&issions to Tanzania- Nigeria- H#ngary and ?oland and te Foreign ,4cange and

Reserve 'anage&ent tea& to T#rkey and Kosovo. 'rs. Go%inat $as actively

involved in &anaging IndiaEs "alance o! %ay&ents crisis in 77- te !all o#t o! te

Asian and te R#ssian crisis- n#clear sanctions against India- Kargil $ar $it ?akistan

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and te trans&ission o! te recent !inancial crisis to Indian !inancial syste& and te

&arkets.

1.8- A9ARDS

YEAR-28

,CRO'ON,Y A;ARS (**7 ;BEST BANK IN INDIA;

,cono&ic Ti&es Brand ,0#ity Nielsen

Researc ann#al s#rvey (**7

o%' T+%'/0 Ban0 - R+nn/ U$

Asia 'oney (**7 A$ards ;B/%' Do*/%'c Ban n In0a;

IBA Banking Tecnology A$ards (**7 ;B/%' IT Go


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n'/na'ona 'a0/ %/


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tese c#sto&ers- te Bank %rovides a $ide range o! co&&ercial and transactional

"anking services- incl#ding $orking ca%ital !inance- trade services- transactional

services- cas &anage&ent- etc. Te "ank is also a leading %rovider o! str#ct#red

sol#tions- $ic co&"ine cas &anage&ent services $it vendor and distri"#tor

!inance !or !acilitating s#%erior s#%%ly cain &anage&ent !or its cor%orate c#sto&ers.

Based on its s#%erior %rod#ct delivery = service levels and strong c#sto&er

orientation- te Bank as &ade signi!icant inroads into te "anking consortia o! a

n#&"er o! leading Indian cor%orate incl#ding ltinationals- co&%anies !ro& te

do&estic "#siness o#ses and %ri&e %#"lic sector co&%anies. It is recognized as a

leading %rovider o! cas &anage&ent and transactional "anking sol#tions to cor%orate

c#sto&ers- t#al !#nds- stock e4cange &e&"ers and "anks.

R/'a Bann7 S/oans- >oans against &arketa"le sec#rities- ?ersonal >oans

and >oans !or T$o$eelers. It is also a leading %rovider o! e%ository ?artici%ant

9?: services !or retail c#sto&ers- %roviding c#sto&ers te !acility to old teir

invest&ents in electronic !or&. HF+ Bank $as te !irst "ank in India to la#nc an

International e"it +ard in association $it 5ISA 95ISA ,lectron: and iss#es te

'aster card 'aestro de"it card as $ell. Te Bank la#nced its credit card "#siness in

late (**. By Se%te&"er @*- (**)- te "ank ad a total card "ase 9de"it and credit

cards: o! ).( &illion cards. Te Bank is also one o! te leading %layers in te

M&ercant ac0#iringM "#siness $it over )*-*** ?ointo!sale 9?OS: ter&inals !or

de"it = credit cards acce%tance at &ercant esta"lis&ents.

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T/a%+6:;itin tis "#siness- te "ank as tree &ain %rod#ct areas Foreign ,4cange and

erivatives- >ocal +#rrency 'oney 'arket e"t Sec#rities- and ,0#ities. ;it te

li"eralization o! te !inancial &arkets in India- cor%orate need &ore so%isticated risk

&anage&ent in!or&ation- advice and %rod#ct str#ct#res. Tese and !ine %ricing on

vario#s treas#ry %rod#cts are %rovided tro#g te "ankEs Treas#ry tea&. To co&%ly

$it stat#tory reserve re0#ire&ents- te "ank is re0#ired to old ()J o! its de%osits in

govern&ent sec#rities. Te Treas#ry "#siness is res%onsi"le !or &anaging te ret#rns

and &arket risk on tis invest&ent %ort!olio.

1.11- PRODUCT O) HD)C BANK ACCOUNT DEPOSITS

SER5ICE Banking so#ld "e e!!ortless. ;it HF+ Bank- te e!!orts are re$arding. No

&atter $at a c#sto&erEs need and occ#%ational stat#s- $e ave a range o! sol#tions

tat are second to none. ;eter yo#Ere e&%loyed in a co&%any and need a si&%le

Savings acco#nt or r#n yo#r o$n "#siness and re0#ire a ro"#st "anking %artner-

HF+ Bank not only as te %er!ect sol#tion !or yo#- "#t also can reco&&end

%rod#cts tat can a#g&ent yo#r %lanning !or te !#t#re.

It incl#des tese services

Saving acco#nts. +#rrent acco#nts.

Fi4 de%osits.

e&ate acco#nt.

Sa!e de%osits lockers.

Sa


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Introd#cing te "est "anking o%tion !or yo# $it HF+ Bank Savings %l#s Acco#nt.

No$ yo# can get access to so&e o! te !inest "anking !acilities $it HF+ BankEs

Savings %l#s Acco#nt. All yo# ave to do is &aintain an Average #arterly Balance o!

Rs. *-***=.

Sa


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K0% a0


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B#siness needs a %artner $o can &anage !inances $ile concentrate on gro$ing

"#siness. For& tis acco#nt c#sto&er can avail "ene!its o! intercity "anking acco#nt

tat re0#ires an average 0#arterly "alance o! only Rs. ()-***- o!!ers ?aya"leAt?ar

ce0#e "ook !acility FR,, intercity clearing transactions across o#r net$ork #% to

Rs.() >acs %er &ont. A +#rrent Acco#nt $it te "ene!its o! accessing acco#nt

!ro& a large net$ork o! "rances- and tro#g direct access cannels te %one-

&o"ile- Internet and tro#g te AT'.

R/7+a c+/n' acco+n'A +#rrent acco#nt is ideal !or carrying o#t daytoday "#siness transactions. ;it te

HF+ Bank Reg#lar +#rrent Acco#nt- c#sto&er can access acco#nt anyti&e-

any$ere- %ay #sing %aya"le at %ar ce0#es or de%osit ce0#e at any HF+ "ank "ranc. It also !acilitates FR,, N,FT transactions FR,, RTGS collections !or

!aster collections in acco#nt. Reg#lar +#rrent Acco#nt re0#ires to &aintain an average

0#arterly "alance o! only Rs. *-***.

;it a vast net$ork o! "rances in cities all over te co#ntry- and access to a

ltit#de o! AT'Es- c#sto&er can kee% track o! all transactions anyti&e.

R/*b+%/*/n' C+/n' Acco+n' No &ore %a%er$ork- no &ore recei%ts to kee% track o! a assle!ree acco#nt tat

allo$s de%osit te rei&"#rse&ents receive !ro& co&%any=organization on a &ontly

"asis.

To o$/n '&% acco+n' a $/%on &a% 'o oo= '&/%/ $oc/%%/%:

?roc#re an Acco#nt O%ening oc#&ent 9AO: !ro& HF+ Bank. 9I! %erson as


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+oose te c#rrency in $ic %erson $is to o%erate. O%en acco#nt $it an initial

a&o#nt as %er te !ollo$ingCS ollar Q ()* Great Britain ?o#nd Q (** ,#ro Q ()*

and &aintain an Average #arterly Balance o! te sa&e a&o#nt.

)/ c+/n' acco+n'Tired o! static transaction li&its d#ring %eak seasonsP HF+ Bank Fle4i +#rrent

Acco#nt is te ans$er to canging "anking needs d#ring %eak seasons. ;it HF+

Bank Fle4i +#rrent Acco#nt +as e%osit and Any$ere Transaction li&its are a

lti%le o! te "alance yo# &aintain in +#rrent Acco#nt. So- d#ring %eak seasons-

c#sto&er get te "ene!it o! iger transaction li&its d#e to te iger average

"alances &aintained in acco#nt. ;at2s &ore- d#ring lean seasons- %erson need not

$orry a"o#t &aintaining #ge "alances to en


20/94

e%osit. Get #% to 7.1)J on HF+ Bank Fi4ed e%osit $it an additional *.)*J !or

Senior +itizens. ;atEs &ore NO ?,NA>TY i! $itdra$ %art o! te F in ti&es o!

need. Fle4i"ility- Sec#rity and Hig Ret#rns all "#ndled into one o!!ering.

R/7+a 0/$o%'As %er te r#les and reg#lation o! te "ank a %erson can de%osit teir &oney in to a !i4

de%osit in te "ank and can get te "ene!its o! tese !acilities.

)ink Fi4ed

e%osit to Savings or +#rrent Acco#nt and #se it to !all "ack on in case o!

e&ergencies. A de!icit in Savings or +#rrent Acco#nt is taken care o! "y #sing #% an

e4act val#e !ro& Fi4ed e%osit. Since de%osits are "roken do$n in #nits o! Re =-

c#sto&er $ill lose interest only !or te act#al a&o#nt tat as "een $itdra$n.

.

1.12-D/*a' acco+n' %/


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• HF+ BANK is e%ository %artici%ant "ot $it National Sec#rities

e%ositories >i&ited 9NS>: and +entral e%ository Services >i&ited

9+S>:.

Sa/ 0/$o%' oc/A Sa!e e%osit >ocker $it HF+ Bank is te sol#tion to %erson2s !ear. >ocated at

select "rances in cities all over te co#ntry- "ank2s lockers ens#re te sa!e kee%ing o!

val#a"les.

E7b'6An individ#al 9not &inor:- !ir&s- li&ited co&%any- associations- cl#"s- tr#sts-

societies- etc &ay ire a locker.

Advantages o! sa!e de%osit locker in HF+ "ank

90/ Aarge and ,4tra >arge

$it varying rents.

• >ockers are rented o#t !or a &ini& %eriod o! one year. Rent is %aya"le in

advance.

• No de%osits are re0#ired to avail a locker. #st o%en an acco#nt and get te

locker !acility.

•

Tere is a no&inal ann#al carge- $ic de%ends on te size o! te locker andte centre in $ic te "ranc is located.

• No&ination !or Sa!e e%osit >ocker

• Te >ockers and teir contents can "e no&inated to %eo%le near and dear to

yo#.

• No&ination !acility is availa"le to individ#al irer o! Sa!e e%osit >ocker.

• In te case o! a sole irer o! a sa!e de%osit locker- no&ination can "e &ade in

!avor o! only one individ#al.

• ;ere te sa!e de%osit locker is ired in te na&e o! a &inor- te no&ination

sall "e &ade "y a %erson la$!#lly entitled to act on "eal! o! te &inor.

T/*% Con0'on%

• For o"taining a >ocker at HF+ Bank yo# st "e an acco#nt older $it

Bank.

• >ockers can "e allotted individ#ally as $ell as ocker older is %er&itted to add or delete na&es !ro& te list o! %ersons

$o can o%erate te >ocker and can ave access to it.

• >oss o! Key is to "e i&&ediately in!or&ed to te concerned Branc.

1.13- "OAN SER5ICES

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In today2s co&%etitive $orld every ting a%%ens only $it te el% o! &oney or

tro#g te &oney every %erson need &oney. B#t so&e ti&e a %erson as not cas on

and at tat ti&e e needs lone eiter !ro& any !riend or !ro& any !inancial instit#te.

>one dose not &ean tat only lo$er class %erson needs it "#t also #%%er class %erson

it is needed. As %er te re0#ire&ent o! te every %erson tere are c ty%e o! loans

are tere in te HF+ "ank.

P/%ona oanA %erson as so &any drea&s "#t so&e ti&e d#e to scarcity o! &oney a drea& can2t

"e satis!y. So- ere one sol#tion !or tat %erson tis is %ersonal loan. Fro& tis e=se

can !#l!ill teir needs or re0#ire&ent. It can "e any ting eiter a drea& o! vacation or

son=da#gter2s ad&ission to college or any $edding- so %ersonal loan can "e el%!#lin tis entire re0#ire&ent. As %erson ordered in te otel !or tea or co!!ee and it is

i&&ediately ca&e !ast- sa&e over ere any %erson $ant to get a %ersonal loan $it

te no&inal doc#&ents e can get te loan.

Ho*/ oanHF+ Bank "rings- HF+ o&e loans to doorste%. ;it over @* years o! e4%erience-

a dedicated tea& o! e4%erts and a co&%lete %ackage to &eet all o#sing !inance

needs- HF+ Ho&e >oans- el% %eo%le realize drea&.

5/&c/% oan No$adays te li!e is "eing so !ast- ti&e val#e is "eco&ing &ore i&%ortant so to reac

at te destination o! any "#siness related occasion or !or a "oy to reac college or any

$ere at te !i4 ti&e tere are so &any re0#ire&ent o! veicles. B#t every %eo%le

ave no ca%acity to %#rcase veicles $it cas so !or tat ere in te HF+ "ank

veicles loan is availa"le. Tere are &any ty%es o! veicles loan.

• Ty%es o! veicles loan

• T$o $eeler loans.

• Ne$ car loan.

• Csed car loan.

• Tractor loan 9!or agree c#lt#re "#siness:.

• +o&&ercial veicle loan.

So- as %er te re0#ire&ent o! te %erson tere are tese ty%es o! loans are availa"le

tis are at te ci% rate and assel !ree !ro& &ore doc#&entation and oter %roced#re.

And co&&ercial "#siness&an can get te "ene!its o! te co&&ercial veicles loans.

T#s as %er te need o! di!!erent %eo%le tere are veicle loans availa"le. And alsoter&s and condition are di!!erent as %er te re0#ire&ent.

22


23/94

E$/%% oan $+%Bank o!!er ,4%ress >oans ?l#s at %erson oorste% to el% !#l!ill all is=er needs. Te

%roced#re is si&%le- doc#&entation is &ini&al and a%%roval is 0#ick. It is el%!#l to

%erson in re%airing o! o#se- Scool ad&ission or also in te !a&ily oliday.

Go0 oan;it HF+ BankEs Gold >oan- %erson can get an instant loan against gold oan availa"le #% to ten#re o! 1 years incl#ding &oratori#&

%eriod. >oans dis"#rsed directly to te ed#cational instit#tion. It is released as %er !ee

sced#les o! instit#tes. ,4cl#sive Telegra%ic Trans!er !acility availa"le !or co#rses

a"road. >oans availa"le !or sort d#ration= oan against Sec#rities- %erson can get an overdra!t against

sec#rities like ,0#ity Sares- '#t#al F#nd Cnits9,0#ity- e"t- F'?s:- Gold

,4cange Traded F#nd9,TF:-NABAREs Bavisya Nir&an Bonds- ?olicies iss#ed

"y >I+ Select ?rivate Ins#rance +o&%anies- NS+- K5?- CTI Bonds 9ARS CS/8

Bonds: and Gold e%osit +erti!icates- $ile still retaining o$nersi%. And te "est

%art is tat e can contin#e to enoan availa"le to NRIs against Sares- '#t#al F#nds 9e0#ity-

e"t- F'?s:- CS/8 Bonds- Ins#rance ?olicies- NS+- and K5?.

"oan a7an%' $o$/'6HF+ Bank "rings >oan Against ?ro%erty 9>A?:. ?erson can no$ take a loan against

residential or co&&ercial %ro%erty- to e4%and is "#siness- %lan a drea& $edding- and

23


24/94

!#nd is cildEs ed#cation and c &ore. He can de%end on "ank to &eet all is

"#siness re0#ire&ents even to %#rcase a ne$ so% or o!!ice !or "#siness. >oan to

%#rcase +o&&ercial ?ro%erty 9>+?: is a s%ecially designed %rod#ct to el% %erson

e4%and is "#siness $ito#t red#cing te ca%ital !ro& is "#siness. Tese are loans

services %roviding "y HF+ "ank $ic are very assle !ree and really "ene!its !or

&ost o! c#sto&er and &ost o! c#sto&er are satis!ied "y te loan sk.

BUSINESS STRETEGY HD)C BANK&ission is to "e Ma 9o0 Ca%% In0an Ban M- "enc&arking te&selves against

international standards and "est %ractices in ter&s o! %rod#ct o!!erings- tecnology-

service levels- risk &anage&ent and a#dit co&%liance. Te o"


25/94

• ?re&i#& +ards

• Gold +redit +ard

• Titani#& +redit +ard

• ;o&anEs Gold +ard

•

?latin#& ?l#s +redit +ard

5%a S7na'+/ C/0' Ca0• ;orld 'aster+ard

• +o&&ercial +ards

• +or%orate +redit +ard

D/b' ca0HF+ Bank e"it +ards give %erson co&%lete and instant access to te &oney in is

acco#nts $ito#t te risk or assle o! carrying cas.

Ty%es o! de"it card +lassic card

,asy so% international e"it card.

?re&i#& card

,asy so% gold e"it card.

S%ecialized card

,asy So% International B#siness e"it +ard.

,asy So% ;o&anEs Advantage e"it +ard.

,asy So% NRO e"it +ard.

Kisan +ard.

P/$a0 ca0Besides o!!ering convenience- ?re%aid +ards ave "een tailored to ans$er travel and

gi!ting needs.

Fore4?l#s +ards

?re%aid Travel +ard.

Gi!t ?l#s +ards

?re%aid Gi!t +ard.

Food ?l#s +ards

?re%aid Food ?l#s card.

'oney ?l#s +ard

Te +or%orate ?ay&ent card

1.1#- IN5ESENT AND INSURANCE SER5ICE No$adays a $ard invest&ent is "eco&ing &ore %o%#lar. ?erson invest teir &oney in

to vario#s sce&es or in to te gold or sare &arket etc. "#t so&e ti&e e is in to te

di!!ic#lt sit#ation- !or tat "ank el% %erson invest $isely tro#g !inancial and

invest&ent services.

T6$/% o n


26/94

+'+a )+n0%

Invest tro#g te '#t#al F#nd ro#te to &eet varied invest&ent o"inked ?lans

HF+ cildrenEs ?>AN. HF+ Cnit >inked Yo#ng Star ?l#s II.

HF+ 'oney Back ?lan. HF+ Cnit >inked Yo#ng Star S#vida.

HF+ Savings Ass#rance ?lan. HF+ Cnit >inked Yo#ng Star S#vida

?l#

HF+ Ass#rance ?lan. HF+ Cnit >inked ?ension.

HF+ Ter& Ass#rance ?lan. HF+ Cnit >inked ?ension ?l#s.

HF+ >oan +over Ter& Ass#rance ?lan. HF+ Cnit >inked ,ndo$&ent ?l#s II.

HF+ ,ndo$&ent Ass#rance ?lan. HF+ Cnit >inked ,ndo$&ent S#vida.

HF+ Single ?re&i#& ;ole o! >i!e

Ins#rance

HF+ Cnit >inked ,ndo$&ent S#vida

HF+ Cnit >inked ,nanced >i!e

?rotection

GENERA" AND HEA"TH INSURANCE+o&%lete %rotection !or "#siness- ealt- travel &ore.

Bon0%

A sec#re invest&ent aven#e giving sta"le ret#rns $it ta4 "ene!its.

Financial ?lanning

Start No$ ?lan invest&ents to &eet !inancial goals

Kno$ledge +entre

?ro!it !ro& researc and &ake in!or&ed invest&ent decisions.

,0#ities erivatives

>everage "ank2s vast in!or&ation re%ository and transact online.

'#dra Gold Bar

B#y (8 Karat gold "ars &ade in S$itzerland and certi!ied "y Assay.

1.1(- )OREF AND TRADE ER5ICE No$adays "#sinesses "eco&ing $orld$ide e.g. India to A&erica "#t &ain %ro"le&s

are a"o#t &onitory transaction "eca#se at every co#ntry te c#rrency "eco&e canged

so !or tat "anks are %laying a very i&%ortant !or te "#sinesses. I! %eo%le need to

deal in !oreign c#rrency and kee% ta"s on e4cange rates every no$ and ten- trans!er

&onies to India- &ake %ay&ents etc.- HF+ Bank as a range o! %rod#cts and

26

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27/94

services tat %eo%le can coose !ro& to transact s&ootly- e!!iciently and in a ti&ely

&anner. Bank o!!ering !ollo$ing

Foreign ,4cange ?rod#cts and Services.

Foreign ,4cange and Trade Services

Te !ollo$ing are di!!erent &etods o! transacting in Foreign ,4cange and re&itting&oney.

Travelers +e0#es.

Foreign +#rrency +as.

Foreign +#rrency ra!ts.

+e0#e e%osits.

Re&ittances.

+as to 'aster .

Trade Services.

Fore4 Services Branc >ocator .

I&%ortant g#idelines and sced#les All Foreign ,4cange transactions are cond#cted

"y strictly adering to RBI g#idelines. e%ending on te nat#re o! transaction or %oint

o! travel- %eo%le $ill need to #nderstand is Foreign ,4cange li&its.

RBI G#idelines.

Fore4 >i&its.

Non HF+ Bank Acco#nt Holders.

FAs

1.1- PAYENT SER5ICE

No$adays li!e o! a %erson "eco&e very stress!#l and e=se "eco&ing "#sy $it teir o$n "#siness- "#t tey ave to %ay&ent !or so&eting so !or tat reason "ank2s

%ay&ent services "eco&e started.;it HF+ BankEs %ay&ent services- %erson can

"id good"ye to 0#e#es and %a%er $ork. Bank2s range o! %ay&ent o%tions &ake it easy

!or %ay !or a variety o! #tilities and services.

5//0 B6 5%a o yo# $ant to "e $orry !ree !or yo#r online %#rcases. No$ yo# can so% sec#rely

online $it yo#r e4isting 5isa e"it=+redit card.

N/' Sa/ No$ so% online $ito#t revealing yo#r HF+ Bank +redit +ard n#&"er. ;at

&ore- yo# can no$ #se yo#r HF+ Bank e"it +ard also !or online %#rcases.

/c&an' S/


28/94

P/$a0 ob/ R/I! yo# are an HF+ Bank Acco#nt older- yo# can no$ recarge yo#r ?re%aid 'o"ile

?one $it tis service.

B Pa6

?ay yo#r tele%one- electricity and &o"ile %one "ills at yo#r convenience. Tro#gte Internet- AT's- yo#r &o"ile %one and tele%one $it Bill ?ay- o#r

co&%reensive "ill %ay&ents sol#tion.

5%a B Pa6?ay yo#r #tility "ills !ro& te co&!ort o! yo#r o&e ?ay #sing yo#r HF+ Bank

5isa credit card and !orget long 0#e#e and late %ay&ents !orever

Pa6 No=

Cse yo#r HF+ Bank +redit +ard to %ay yo#r #tility "ills online- &ake s#"scri%tions

and donations no registration re0#ired. ,n


29/94

As a s%ecial c#sto&er "ank %roviding a TA to c#sto&er $it na&e i&%eria=%re!erred

c#sto&er. For tat "ank %rovide a s%ecial service to teir c#sto&er. HF+ BankEs

%re!erred=i&%eria ?rogra&&e is te royal decree tat enances te e4cl#sivity tat

yo# are acc#sto&ed to. It &akes yo# !eel s%ecial at every ste%- %a&%ering $it

services tose oters can only drea& a"o#t. Tis service goes "eyond te o"vio#s-

rises a"ove te e4%ected- so tat te $ole $orld can see- tat even today- te

grande#r and &agni!icence o! royalty is alive and $ell.

T#s as retail "anking service "ank %roviding really good and "ene!icial services to

teir c#sto&er and as !a&ily &e&"er tey are %roviding good services to every

c#sto&er eiter tey are ca&e "#siness related or anyting. So !or tis reason HF+

"ank %laying a good role in te c#sto&er2s li!e !or teir &onitory transaction.

NRI BANKING;it a vie$ to attract te savings and oter re&ittance into India tro#g "anking

cannels !ro& te %erson o! Indian Nationality = Origin $o are residing a"road and

"olster te "alance o! %ay&ent %osition- te Govern&ent o! India introd#ced in 71*

NonResident9,4ternal: Acco#nt R#les $ic are governed "y te ,4cange +ontrol

Reg#lations. Te !#nds eld in NonResident 9,4ternal: Acco#nts 9NR, Acco#nts:

0#ali!y !or certain "ene!its like e4e&%tions !ro& ta4es in India- !ree re%atriations

!acilities- etc.e%osit ty%es

NRIBanking !acilitates te NRI c#sto&er to o%en te !ollo$ing acco#nt ty%es.

NR, 9Non Resident ,4ternal Acco#nts:

It can "e in te !or& o! Savings- +#rrent or !i4ed de%osits in Indian r#%ees.

Te !#nds in tis acco#nt are !#lly re%atria"le.

NRO 9Non Resident Ordinary Acco#nts:

It can "e in te !or& o! Savings- +#rrent or Fi4ed e%osits in Indian R#%ees.

Te !#nds in tis acco#nt are not re%atria"le 9only interest accr#ed is

re%atria"le:.

F+NR 9Foreign +#rrency Non Resident Acco#nts:

It can "e in te !or& o! !i4ed e%osits only- in te !ive &a


30/94

entities=agencies. Also incl#ded is "anking services o!!ered to oter !inancial

instit#tions. In essence- $olesale "anking services #s#ally involve ig val#e

transactions. ;olesale "anking co&%ares $it retail "anking- $ic is te %rovision

o! "anking services to individ#als.

9&o/%a/ bann7 %/


31/94

HF+ Bank acts as an active &edi#& "et$een te govern&ent and te

c#sto&ers "y &eans o! vario#s services. Tese services incl#de

Ta4 +ollection $erein c#sto&ers can directly %ay teir ta4es like irect

ta4es- Indirect ta4es and Sales Ta4 collections at teir local HF+ Bank.

,Ticketing Hel%s te c#sto&er "y %roviding i& a direct access to "ook a

Rail$ay Ticket online and get it o&e delivered.

O%ening o! >=+Es is done "y te "ank on "eal! o! Govern&ent o! India- 'ints

and ?resses- t#s !acilitating i&%orts !or te Govern&ent.

+ollection o! levies and ta4es on "eal! o! '#nici%al +or%orations i.e. Kalyan

o&"ivli '#nici%al +or%oration- is #ndertaken "y te Bank.

+ollection o! sta&% d#ty is done via !ranking &ode in te stateEs o!

'aarastra G#


32/94

&aterial reso#rces. H#&an ca%ital is te greatest asset o! a "#siness enter%rise. Te

essential ingredient o! &anage&ent is te leadersi% and direction o! %eo%le. ,ac

&anager o! %eo%le as to "e is o$n %ersonnel &an. ?ersonnel &anage&ent is not

so&eting yo# really t#rn over to %ersonnel de%art&ent sta!!.

R/%$on%b'/% o H+*an R/%o+c/ D/$a'*/n'. HR &aintain daily attendance record tro#g "ranc &anager via ,&ail.

Take decisions !or a%%roval regarding leave notes.

He takes te decision related to te recr#it&ent- selection and training o! te

candidates. He talks to te cons#ltant related to te recr#it&ent o! te 0#ali!ied

candidates. He also does screening o! te candidates- sortlist te candidate and

takes te !irst ro#nd o! te intervie$.

He &aintains te data"ase o! te candidates to co&e !or an intervie$. He also

&aintains %ersonal !ile o! eac e&%loyee. He also co&%letes te


33/94

+a&%#s Recr#it&ent.

+o&%any2s o$n $e"site.

?lace&ent cons#ltants.

Advertise&ent in te ne$s %a%ers like Ti&es o! India- G#


34/94

Te ti&e !or training %rogra& !or te candidate is de%ends #% on te relevant

%osition o! is $ork area. Tey also %rovide training related to c#sto&er care and

co&nication.

P/o*anc/ A$$a%a An organization2s goals can "e acieve only $en %eo%le %#t in teir "est e!!orts.

?er!or&ance a%%raisal &ay "e #nderstood as te assess&ent o! an individ#al2s

%er!or&ance in a syste&atic $ay. It is de!ine as te syste&atic eval#ation o! te

individ#al $it res%ect to is=er %er!or&ance on te


35/94

giving attractive incentives as %er te target. Te salary o! "ranc &anager is

aro#nd @)*** %er &ont.

Inc/n'


36/94

&arketing de%art&ents o! co&%anies try to get te attention o! target a#diences "y

#sing slogans- %ackaging design- cele"rity endorse&ents and general &edia e4%os#re.

A


37/94

a/'n7 In'a'


38/94

I' % a /6 n7/0/n' o %+cc/%%+ *a/'n7 as it si&%li!ies te targeting-

%ositioning and te %lanning %rocess.

A tr#e 'arket Seg&ent &eets all o! te !ollo$ing criteria it is distinct !ro& oter

seg&ents 9eterogeneity across seg&ents:- it is o&ogeno#s $itin te seg&ents

9e4i"its co&&on attri"#tes:- it res%onds si&ilarly to a &arket stil#s and it can "e

reaced "y a &arket intervention. 'arket Seg&entation si&%li!ies te !ir&2s %rod#ct-

%ricing- %ro&otion and distri"#tion strategies and also !acilitates %lanning and

organizing !#nction o! &anage&ent &ore easily and cost e!!ectively "#t it re0#ires a

toro#g #nderstanding o! te c#sto&ers needs. It is re!erred as a tool !or de!ining

&arkets and tere"y allocating reso#rces it #ses statistical tecni0#es called !actor

analysis and cl#ster analysis to co&"ine attit#dinal and de&ogra%ic data to develo%

seg&ents tat are easier to target.

a/' S/7*/n'a'on can b/ 0on/ on te "asis o! te location 9Geogra%ic

Seg&entation: on te "asis o! age- inco&e- gender and oter &eas#ra"le !actors

9e&ogra%ic Seg&entation: on te "asis o! li!estyle- likes- dislikes- taste and

%re!erences 9?sycological Seg&entation: and according to te istory- loyalty and

res%onsiveness 9Beavioral Seg&entation:.

A "#siness st analyze te di!!erent needs o! te &arket seg&ents teir internal

strengts and $eaknesses e4ternal o%%ort#nities and treats and vario#s oters

!actors like te &ission- vision- val#es- "elie!s- attit#des- nor&s and standards o! te

organization as $ell as te co&%etitors strategy- social and c#lt#ral !actors- econo&ic

environ&ent- glo"al %ers%ective- de&ogra%ic environ&ent- tecnological and

%olitical = legal as%ects "e!ore deciding teir o$n nice.

P&$ Ko'/ &entioned !ive criteria !or an e!!ective seg&entation $ic states tat

Seg&entation so#ld "e

1. /a%+ab/: it so#ld "e %ossi"le to deter&ine te val#es o! te varia"le #sed !or te seg&entation.

2. R//


39/94

$ants- %#rcasing %o$er- "#ying attit#des or "#ying a"its. As HF+ "ank is a

service sector ind#stry tey introd#ce di!!erent sce&es !or di!!erent %eo%le. ,ac

%erson is di!!erent in nat#re and eac ave di!!er criteria !or invest&ent like risk

!actor- ret#rn- li0#idity- ta4 "ene!its etc.

Target 'arketing

6'arket S%ecialization is a "#siness ter& &eaning te &arket seg&ent to $ic a

%artic#lar good or service is &arketed. It is &ainly de!ined "y age- gender- geogra%y-

socioecono&ic gro#%ing- or any oter co&"ination o! de&ogra%ics. It is generally

st#died and &a%%ed "y te organization tro#g list and re%orts containing

de&ogra%ic in!or&ation tat &ay ave an e!!ect on te &arketing o! key %rod#cts =

services. A %rod#ct !oc#sing on a s%eci!ic target &arket contrasts sar%ly $it one-

!ollo$ing te &arket strategy o! &ass &arketing.

Ta7/'n7 can b/ 0on/ b6 '&/ *% b6 a0o$'n7 a o7ca an0 %6%'/*a'c

*/'&o0oo76 %'/$%. 9&c& a/ a% oo=%: -

STEP 1: - I0/n'6 '&/ $o'/n'a b+6/%: Tro#g %ro%er &arket researc and

&arket seg&entation 9it is te %rocess o! %#lling a%art te entire &arket as a $ole

and se%arating it into &anagea"le dis%arate #nits "ased on vario#s de&ogra%ic-

%olitical- econo&ic and social !actors it can also "e c#sto&er = %rod#ct = co&%etition

related seg&entation:.

STEP 2: - S//c' '&/ 'a7/' a+0/nc/%: - Te !actors tat in!l#ence Targeting are te

Internal and ,4ternal ,nviron&ent. Internal environ&ent incl#des te &ission- vision-

val#es and o"


40/94

and %lace te "rand in te c#sto&ers &ind to enance teir good$ill and "eco&e te

&ost %re!erred "rand.

?ositioning can "e in te !or& o! %rod#ct- %rice- %ro&otion- service- distri"#tion

cannel- i&age- %eo%le- advertising- %#"licity- %#"lic relation or selling

di!!erentiation.

Po%'onn7 S'a'/766?ositioning is te act o! designing te co&%any2s o!!ering and i&age to occ#%y a

distinctive %lace in te target &arket2s &ind. ?ositioning starts $it a %rod#ct. A %iece

o! &ercandise- a service- a co&%any- an instit#tion- or even a %erson. B#t %ositioning

is not $at yo# do to a %rod#ct. ?ositioning is $at yo# do te &ind o! te %ros%ect.

Tat is- yo# %osition te %rod#ct in te &ind o! %ros%ect. A co&%any2s di!!erentiating

and %ositioning strategy st cange as te %rod#ct- &arket- and co&%etitors cange

over ti&e. Once te co&%any as develo%ed a clear %ositioning strategy- it st

co&nicate tat %ositioning e!!ectively. HF+ "ank ave %ositioning strategy o!

Con'n+n7 a Ta0'on o T+%'”. It is acc#rate %ositioning strategy "eca#se it

signi!ies a tr#st $it its clients. Here is s%ecial Relationsi% 'anager dedicated

to$ards c#sto&er service and satis!action and give te& g#idance a"o#t vario#s

sce&es $ic el%s te& to get rigt sce&e $ic s#it teir needs. In tis $ay it

contin#es to &aintain a tr#st $it its clients.

HD)C BANK b+%n/%% %'a'/76 /*$&a%/% '&/ oo=n7 : Increase &arket sare in India‟s e4%anding "anking and

!inancial services ind#stry "y !ollo$ing a disci%lined gro$t strategy !oc#sing

on 0#ality and not on 0#antity and delivering ig 0#ality c#sto&er service.

>everage o#r tecnology %lat!or& and o%en scalea"le syste&s

to deliver &ore %rod#cts to &ore c#sto&ers and to control o%erating costs.

'aintain c#rrent ig standards !or asset 0#ality tro#g

disci%lined credit risk &anage&ent. evelo% innovative %rod#cts and services

tat attract te

targeted c#sto&ers and address ine!!iciencies in te Indian !inancial sector.

+ontin#e to develo% %rod#cts and services tat red#ce "ank ‟s

cost o! !#nds. Foc#s on ig earnings gro$t $it lo$ volatility.

RC?,, ,ARN, RC?,, S?,NTIt is &ore i&%ortant !or every organization to kno$ a"o#t !ro& $ere and $ere to

s%ent &oney. And "alanced "et$een tese t$o tings r#%ee earned and r#%ee s%ent

are re0#ired !or s&oot r#nning o! "#siness and !inancial so#ndness. Tis ty%e o!

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$atc can control and eli&inate te #nnecessary s%ending o! "#siness. In tis diagra&

it incl#de "ot tings !ro& $ere Bank earned R#%ee and $ere to s%ent.

1.21- INTRODUCTION O) )INANCE DEPARTENTIn tis &odern era it is very easy to kno$ o$ c i&%ortant te !inance is in te

"#siness. As c#rrent %osition o! te &arket is totally di!!erent !ro& ancient $ere it

$as very easy to get te !inance. B#t no$ a days it is not so- it is very di!!ic#lt task to

raise !#nds !ro& &arket. As today %eo%le are !acing lot o! %ro"le& and ave less

con!idence on te &arket so it is di!!ic#lt to raise !#nd $ito#t %ro%er %lanning. For

te "ank as it is a Financial Instit#tion $e can consider !inance as li!e"lood o! tis

"#siness. Te co&%any so#ld &anage to get s#!!icient !inance. Te co&%any

so#ld #se to kee% %ro%er %lanning !or te !inance o! its o$n and also o! te large no.

o! de%ositors $o are tere $it te "ank. ;e can de!ine !inancial &anage&ent as a

task o! ac0#isition and #tilization o! !#nds needed in te "#siness in a &anner so tat

organizations goal can "e acieved. In HF+ Bank- its cie! Financial O!!icer and

Treas#rer &anage te !inance. #e to %ro%er %olicies and se%arate &anage&ent te

co&%any can ave %ro%er o%eration o! !inance.

1.22- ORGANIATION O) )INANCIA" ACTI5ITIES O) BANK For te "ank !inance itsel! is te %rod#ct no$ it is not an easy task to &anage tis

!inance. As "ank as to kee% $atc on te de%osits o! its &illions o! c#sto&ers and

also it as to &anage its o$n large !inancial "ase. As in recent it is %o%#lar 6No

!inance no "#siness- !or te "ank 6Finance itsel! is "#siness. Tere are di!!erent

ty%es o! organizational str#ct#re s#c as gro#% organization- line organization- line

and sta!! organization. HF+ Bank as line o! a#tority and line o! a#tority is

vertical i.e. a#tority %asses !ro& to% to "otto& and res%onsi"ility %asses !ro& "otto&

to to% level &anage&ent. As HF+ Bank is very "ig co&%any and it as large

cliental "ase so it is very di!!ic#lt and co&%licated to &anage its !inance in %ro%er

$ay. Tere $e need o! concrete and %ro%er %olicies to ave %ro%er &anage&ent o! it.

Beca#se o! "ig size o! te "ank one cannot &anage all te acco#nts o! it alone. So-

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co&%any as to a%%oint &any di!!erent %ersons so tat tere is %ro%er &aintenance o!

te !#nds o! di!!erent %ersons is %ossi"le.

CHAPTER-2

R/%/ac&

/'&o0oo76

CHAPTER- 2

R/%/ac& /'&o0oo76Te !inancial sector re!or&s in India are no$ a"o#t seventeen years old an

a%%ro%riate ti&e to &ake a &edi#& ter& a%%raisal. 'oreover aving initiated

!#nda&ental canges- te !inancial sector- %artic#larly te "anking sector is no$

#nder an o"ligation to de&onstrate te e!!iciency o! te re!or&s #ndertaken so !ar.

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,s%ecially "anking sector gives a ne$ vision to Indian econo&y. Banking ind#stry is

a %art o! te canging "#siness %aradig&s across te glo"e. In a &arket driven

"anking sector- co&%etition is te &ost dyna&ic ele&ents. #e to &arket co&%etition

in Indian "anking ind#stry- te %attern o! "anking "#siness is canging %eno&enally.

'oreover "anks ave to %rovide a $orld class services to te c#sto&er to teir door.

#e to tis ty%e o! 0#ality services and !acilities- inco&e is increasing day to day. In

te tertiary sector- Banks %lay a very #se!#l and dyna&ic role in te econo&ic li!e o!

te co#ntry. Banks are te %ivot o! te &odern co&&erce. Ind#strial innovations and

"#siness e4%ansions "eco&e %ossi"le tro#g !inance %rovided "y "anks. +a%ital is

te &ain !actor o! &odern %rod#ction and entre%rene#rs are el% $ito#t ade0#ate

!#nds. Banks el% te&. Toady2s "anks are not


44/94

st#dy "y selecting !ive res%ondents eac "anks incl#ding HF+ "ank. On te "asis o!

teir res%onses- so&e 0#estions $ere &odi!ied and te &odi!ied 0#estionnaire $as

!inally canvassed a&ong te ** selected res%ondents. A sa&%le size o! **

es%ondents is taken !or detailed st#dy "eca#se it is not %ossi"le to cover te $ole

#niverse consisting o! all te c#sto&ers. A&ong tese ** res%ondents )* res%ondents

$ere selected !ro& te Bank o! Baroda and anoter )* res%ondents $ere selected

!ro& Te S#rat ?eo%les +oo%erative Bank >td. ?ri&ary data also incl#ded

in!or&ation collected "y %ersonal intervie$ $it &anagers o! HF+.

Sa*$n7 T/c&nJ+/Te sa&%le $as selected #sing a convenient sa&%ling.

b? Co/c'n7 S/con0a6 Da'aTere $as e4tensive #se o! secondary in!or&ation in te !or& o! "ooks- articles

%#"lised in &agazines- oan.

): To kno$ te reasons !or taking te o&e loan.

/: To st#dy te c#sto&ers satis!action levels to$ards "anks.

1: To #nderstand $y c#sto&ers %re!erred te HF+ !or o&e loan.

3: To cond#ct a +o&%arative st#dy o! te HF+ BANK.

+oo% Bank >td in res%ect o! te vario#s as%ects o! te o&e loans.

7: To #nderstand a"o#t %olicies and %ractices o! "anks !or o&e loan.

2.3- H6$o'&/%/%So&e o! te Hy%oteses tat are tested in tis st#dy are as !ollo$s

: Tere is no association "et$een Age- ,d#cational #ali!ication- ?ro!ession-

Yearly Inco&e- Ty%e o! Banks and 5ario#s Reasons !or Ho&e >oan.

(: Tere is no association "et$een Age- Yearly Inco&e- Ty%e o! Banks and

A&o#nt o! >oan Sanctioned.@: Tere is no association "et$een Ctilization o! 5ario#s ty%es o! Bank Services-

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Age- 'ode o! Re%ay&ent and Ty%e o! Banks.

8: Tere is no association "et$een ,d#cation- ?ro!ession o! te Res%ondents and

'ode o! Re%ay&ent.

): Tere is no association "et$een Reason !or Selecting Bank and te Ty%e o!

Banks.

/: Tere is no association "et$een Ty%e o! Banks 9Nationalized or Non Nationalized: to $ic res%ondents $o#ld like to s$itcover- i! e is asked to

do so and Ty%e o! Banks.

1: Tere is no association "et$een Age- ,d#cational #ali!ication- ?ro!ession-

Yearly Inco&e o! Res%ondents and te A&o#nt o! >oan A%%lied !or.

3: Tere is no association "et$een te Age- Yearly Inco&e- ?ro!ession-

,d#cational #ali!ication o! Res%ondents and Sanctioned >oan A&o#nt.

7: Tere is no association "et$een ays taken !or Sanctioned >oan and Ty%e o!

Banks.

2.!- SCOPE O) THE STUDY:Te sco%e o! te st#dy is very $ide. For an analytical- st#dy o! %rod#ctivity o!

"anking Ind#stry in India and &eaning!#l researc so&e %ara&eters in relation to

%rod#ctivity and %ro!ita"ility selected like la" o#r in!or&ation- "ranc in!or&ation-

ca%ital in!or&ation- and %ro!ita"ility in!or&ation o! selected "anks. To eval#ate

%rod#ctivity e!!ectiveness- so&e cases develo%ed. In tis researc $ork- researcer

as tried to &eas#re te %rod#ctivity o! selected "anks researcer as #sed vario#s

ratios. Te %ro"le&s and s#ggestions !ro& te "anks to i&%rove %rod#ctivity

e!!ectiveness also covered

2.#- "*'a'on% o '&/ %'+06Tis researc st#dy $as ti&e "o#nd and d#e to tis only a !e$ as%ects o! te

%ro"le& $ere taken #% !or st#dy.

Tis researc st#dy $as taken in a li&ited area only 9i.e. S#rat city: and

!indings &ay vary i! te area o! st#dy is canged.

So&e o! te res%ondents &igt ave "een "iased in teir res%onses and as

s#c te analysis and concl#sion "ased on it co#ld vary to so&e e4tent.

So&e o! te concl#sions also de%end #%on secondary data. To te e4tent tesedata are relia"lete concl#sion derived !ro& te& are valid.

Tis researc st#dy $as li&ited only to nationalized and coo%erative "anks

d#e to nonavaila"ility o! data on %rivate "anks.

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CHAPTER- 3

"'/a'+/ R/


47/94

%ro"le& and &etodology. Anoter advantage o! revie$ing in te e4isting literat#re is

tat in cases $ere te researc %ro"le&s are si&ilar- te concl#sions and !indings

&ay "e easily co&%ared. Tis $ill el% te researcer in deter&ining $eter is=er

!indings are %ossi"le or not. Te literat#re #nder revie$ &ay "e o! t$o ty%es 9i:

concerning te conce%t#al and teoretical !ra&e$ork. 9ii: te e&%irical literat#re

dealing $it te st#dies &ade in te %ast $ic are si&ilar to te one tat te

researcer intended to #ndertake. Te "asic o#tco&es o! s#c revie$ $ill "e te

kno$ledge as to $at data are availa"le !or analytical %#r%oses- $ic $ill el% te

researcer to s%eci!y is=er o$n researc %ro"le& in a &ore &eaning!#l $ay. T#s-

revie$ o! literat#re is el%!#l in !orlating te researc %ro"le& and also el%s te

researcer in deciding a"o#t te &ost a%%ro%riate &etodology to "e #sed. ;ile

co&%aring te res#lts o! te earlier st#dies $it is=er o$n res#lts- care st "e

taken to veri!y $eter te o"


48/94

T&/ R/%/ac& S'+06 /n''/0 Ho+%n7 n '&/ N/= /nn+*: A

Ho*/ 9'&o+' EJ+'6 % L+%' a R/n'a ='& D/b'” b6 Lo%&+a Ro%n/

>21?He st#died te %ros%ects o! te C.S. o#sing = &ortgage sector over te ne4t several

years. Based on is analysis- e "elieves tat- tere are ele&ents in %lace !or te

o#sing sector to contin#e to e4%erience gro$t $ell a"ove G?. Ho$ever- e

"elieves tat tere are risks tat can &aterially distort te gro$t %ros%ects o! te

sector. S%eci!ically- it a%%ears tat a large %ortion o! te o#sing sector2s gro$t in te

77*2s ca&e !ro& te easing o! te credit #nder$riting %rocess. S#c easing incl#des

Te drastic red#ction o! &ini& do$n %ay&ent levels !ro& (*J to *J.

A !oc#sed e!!ort to target te 6lo$ inco&e "orro$er.

Te red#ction in %rivate &ortgage ins#rance re0#ire&ents on ig loan to

val#e &ortgages.

Te increasing #se o! so!t$are to strea&line te origination %rocess and

&odi!y = recast delin0#ent loans in order to kee% te& classi!ied as 6c#rrent.

+anges in te a%%raisal %rocess $ic as led to $ides%read overa%%raisal =

overval#ation %ro"le&s.

I! tese trends re&ain in %lace- it is likely tat te o&e %#rcase "oo& o! te%ast

decade $ill contin#e #na"ated. es%ite te increasingly &ore di!!ic#lt

econo&icenviron&ent- it &ay "e %ossi"le !or lenders to !#rter ease credit standards

and &ore!#lly e4%loit less %enetrated &arkets. Recently- targeted %o%#lations tat

ave istorically "een denied o&eo$nersi% o%%ort#nities ave o!!ered te &ortgage

ind#stry novel #rdles to overco&e. Ind#stry %artici%ants in co&"ination $it eased

reg#latory standards and te s#%%ort o! te GS,s 9Govern&ent S%onsored

,nter%rises: ave overco&e &any o! te&. I! tere is an econo&ic disr#%tion tat

ca#ses a &arked rise in #ne&%loy&ent- te negative i&%act on te o#sing &arket

co#ld "e 0#ite large. Tese i&%acts co&e in several !or&s. Tey incl#de a red#ction

in te de&and !or o&eo$nersi%- a decline in real estate %rices and increased

!oreclos#re e4%enses. Tese i&%acts $o#ld "e e4acer"ated "y te increasing de"t

"#rden o! te C.S. cons#&er and te red#ction o! o&e e0#ity availa"le in te o&e.

Alto#g $e ave yet to see any &aterially negative conse0#ences o! te rela4ation

o! credit standards- $e "elieve te risk o! credit rela4ation and leverage can2t "e

ignored. I&%ortantly- a relatively ne$ &etod o! loan !orgiveness can te&%orarily

alter te %erce%tion o! credit ealt in te o#sing sector. In an e!!ort to kee%o&eo$ners in te o&e and red#ce !oreclos#re e4%enses- olders o! &ortgage assets

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are c#rrently recasting or &odi!ying tro#"led loans. S#c %olicy initiatives &ay !or a

ti&e distort te relevancy o! delin0#ency and !oreclos#re statistics. Ho$ever- a

%rotracted o#sing slo$do$n co#ld event#ally ca#se &odi!ications to "eco&e

#necono&ic and- t#s- credit 0#ality statistics $o#ld likely "eco&e relevant once

again. Te virt#o#s circle o! increasing o&eo$nersi% d#e to greater leverage as

te %otential to "eco&e a vicio#s cycle o! lo$er o&e %rices d#e to an accelerating

rate o! !oreclos#res.

A /%/ac& a'c/ /n''/0 Ho*/ O=n/%&$ R% B/6on0 a

S+b$*/ C%%: T&/ Ro/ o D/nJ+/nc6 ana7/*/n'” b6 Laco

/%%a B. >22?Se concl#ded tat %#"lic invest&ent in and %ro&otion o! o&eo$nersi% andte

o&e &ortgage &arket o!ten relies on tree


50/94

A /%/ac& a'c/ /n''/0 Ho+%n7 Pob/* an0 P+bc Ac'on:

Con'n+/0 Inco*$a'b'6 E$//nc/ o* a So+'& In0an S'a'/” b6

. a&a0/2!?.

In tis article- te a#tor as analysed te nat#re and distri"#tion o! teo#sing%ro"le& in Karnataka and e4a&ined o$ te state as addressed tis iss#e. In

%artic#lar- it considers te strategies ado%ted d#ring te 7*s and identi!ies a n#&"er o!

!ail#res incl#ding te task !orce on o#sing. So&e o! te &aack o! co&%reensive %olicy to g#ide o#sing develo%&ent on e0#ity

%rinci%le togeter $it ad oc a%%roaces- ave !ailed to deliver o#sing "ene!its and

develo% critical o#sing in%#ts on a so#nd !ooting $it e0#al o%%ort#nities !or all

need "ased %olicy interventions assle!ree in%#t delivery &ecanis& e4isting o#sing

sortage and r#ral#r"an dis%arities s#"stantially. Cn!ort#nately- tis did not a%%en.

T#s- %olicy iss#es like $at %olicies are needed !or te state o! Karnataka to g#ide

o#sing develo%&ent- increasing te o#sing s#%%ly to te %oorer and &arginalized

sections- &o"ilizing te needed !inancial reso#rces and a ost o! oter iss#es in

addressing te o#sing %ro"le& e&erge.

A %'+06 /n''/0 P/o*anc/ o Ho+%n7 )nanc/ Co*$an/%” b6

Ba La%*n0//$ /'.a. >2#?Te o"I+ ?NB. Te st#dy is "ased on secondary data tat ave "een

collected !ro& te ann#al re%orts and $e" sites o! te instit#tions selected #nder

st#dy. It covers te %eriod !ro& 77*7 to (**(*@. Te %er!or&ance o! te selected

instit#tions as "een st#died "y #sing %ercentages- co&%o#nd gro$ts rates and

vario#s ratios.

Findings o! te st#dy are

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HF+ co&es at te to% a&ong all te instit#tions as !ar as loan sanctioned-

dis"#rse&ents and te loan o#tstanding are concerned- ?NB as te last rank

!or "ot loans sanctioned and dis"#rsed. Ho$ever- te co&%o#nd gro$t rate

!or te loan sanctioned- dis"#rse&ent and o#tstanding as "een igest in tecase o! >I+HF. It stood at (/.87J- @*.37J- @/./J. Against ?NB so$ed te

lo$est co&%o#nd gro$t rates o! 3./(J and 7.7*J- !or te loan sanctioned

and dis"#rse&ent over te sa&e %eriod. Ho$ever- te co&%o#nd gro$t rate

o! te loan o#tstanding in te case o! ?NBHF $as iger tan te gro$t rate

o! HF+.

Te ratio o! loan dis"#rsed to loan sanctioned so$s tat te ratio o! ?NBHF

so$ed te igest variations !ro& )@.@1J to 7/.)( J over te given %eriod-

!ollo$ed "y >I+HF !or $ic te ratio varied !ro& )/.33J to 7)./)J. On te

oter andte ratio !or HF+ so$ed te lo$est range o! variation !ro&

3.*1Jto 33.7 in te sa&e %eriod.

N#&"er o! o#sing #nits assisted "y te selected instit#tions and its

%ercentage to te total #nits !inanced d#ring te year so$ed tat HF+ and

?NBHF !inanced &ore tan /8J and less tan @J o! te total #nits !inanced

d#ring te entire %eriod o! te st#dy- res%ectively.

HF+ as %rovided te igest %ro%ortion o! loans to individ#als. Te igest

variation in te co&%osition o! loan o#tstanding as "een in te ?NBHF. Te

loan o#tstanding to individ#als in te case o! HF+ ranged !ro& //.37J to

3.77J $ereas it ranged !ro& 37.)3J to **J !or >I+HF !or te sa&e

%eriod.

HF+ as "een a &aI+HF over te sa&e %eriod.

?NBHF s%ent in te range o! *./@J to 8.)1J o! te total e4%ense on

esta"lis&ent over te %eriod o! te st#dy $ic $as te igest a&ong all teinstit#tions. >I+HF s%ent te lo$est %ro%ortion ranging !ro& *.8(J to *.37J

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on esta"lis&ent e4%enses d#ring te sa&e %eriod and te ratio so$ed a

declining trend in te case o! HF+ cover te sa&e %eriod. Te interest %aid

to loans !#nds so$ed c variation in te case o! ?NBHF. Te ratio !or

HF+ increased in te initial %eriod "#t decreased later on. A&ong all te

instit#tions #nder st#dy ?NBHF %aid te igest cost !or raising loan !#nds.

Te assets o! >I+HF constit#ted te igest %ro%ortion o! o#tstanding o#sing

loans !ollo$ed "y ?NBHF and HF+. #ring te %eriod- invest&ents

co&%rised less tan ()J o! te total assets !or all te instit#tions. >I+HF as

a co&%aratively lo$ ratio o! invest&ents to te total assets te ratio o! HF+

as "een te igest over te sa&e %eriod. ?NBHF so$ed a considera"ly

increasing trend in te earlier years "#t it declined in te later years.

Te net %ro!it &argin o! ?NB $as iger tan tat o! >I+HF in te initial

years- "#t te ratio o! >I+HF so$s i&%rove&ent over ?NBHF in te later

%eriod. In te case o! HF+ te net %ro!it &argin $as in te range o! .@(J

to (@.(*J over te %eriod o! st#dy.

Ret#rn on net $ort Te ratio ad considera"le variation in te case o!

?NBHF !ro& 87.(@J to 8*.(/J. Te ratio also so$ed a co&%aratively little

variation and $as at a reasona"le level !or "ot HF+ and >I+HF d#ring te

%eriod o! te st#dy

A Pa$/ /n''/0 R/'a Bann7 E*/7n7 I%%+/ n Ho*/ "oan”

b6 Rao K. N./'.a. >2#?In tis %a%er te a#tors revealed tat d#ring (**(*@ o#sing loans "y "anks gre$ at

a e!ty gro$t rate o! &ore tan **J. Te !actors tat contri"#ted to tis aggressive

gro$t in te %ort!olio o! o#sing loans o! "anks and HF+ are Ta4 intensives on

re%ay&ent o! %rinci%al and interest- rising inco&e level o! &iddle class- !alling

interest rate- sta"le real estate %rices- easy availa"ility o! o#sing loans- lo$ ret#rns onte invest&ent o%%ort#nities availa"le in te &arket. Tey also concl#ded tat

alto#g tere is strong gro$t in o#sing loans "y !inancial sit#ations in India- $e

are still "eind te develo%ed co#ntries in ter&s o! o#sing loans to G? ratio. In

India it is aro#nd (.)J co&%ared to )1J in te CK and )8J in te CS. It so$s tat

tere is a vast sco%e !or o#sing loans in India. One econo&ist as arg#ed tat every

r#%ee s%ent on te o#sing sector $ill increase te G? "y &ore tan 1) %aise. It also

creates a la"o#r intensive. es%ite te i&&ense gro$t in o#sing loans tere are

certain callenges tat te "anks &igt !ace in te ti&e to co&e- e.g. !alling rate o!

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interest- rising &is&atc in te assets and lia"ilities o! te "ank- rising N?A in te

o#sing loan %ort!olio- etc.

A R/%/ac& A'c/ /n''/0 Ho+%n7 "oan )a+0% n Ban%: So*/

P/ca+'ona6 /a%+/%” b6 P&o7a' . >2(?Tis article gives te &eas#res !or te o#sing loan !ra#ds in "anks. Te a#tor

concl#ded tat o#sing !or all envisaged ( &illion o#ses every year o#t o! $ic *.1

&illion are in te #r"an sector. Govern&ent %rovided certain relie! #nder Inco&e Ta4

Act. It &otivated &any %eo%le to avail o#sing loan. Te a#tor tinks tat di!!erent

!ra#ds co&&itted on vario#s "anks can "e divided into te !ollo$ing t$o categories.

i.e. ?re sanction and ?ost Sanction. KY+ related d#e $eakness in %re ins%ection-

Bena&i A=c- !orged title deeds- "y selling sa&e !lat to di!!erent %eo%le- in!lated salary

certi!icate- !iling o! IT ret#rn !or te last tree years in one lot and %artic#larly "y

%aying a no&inal a&o#nt o! ta4- val#ation o! te %ro%erty is &ani%#lated to &anage

&argin &oney are %ost sanction !ra#d. Te %reca#tions &ay "e taken at te "ank level

to avoid te ass#rance o! !ra#d i.e. KY+ nor&s "e !ollo$ed- &ain salary A=c so#ld

"e veri!ied- loan so#ld "e granted against te !lat = o#ses "#ilt "y re%#ted "#ilders

only. An #ndertaking !ro& te "#ilders !or not "een sold to any oter %erson- searc

re%ort o! %ro%erty to "e cond#cted "y te advocate- original title deeds- %ro%erty ta4-

electricity "ill- ke%t on records. is"#rse&ent o! loan so#ld "e &ade a!ter s%ot

veri!ication- title deed so#ld "e scanned tro#g #ltra violet ray &acines "e!ore

&ortgage and "ank so#ld inde%endently veri!y te re%ort and no &iddle &an so#ld

"e involved in te %rocess and entire KY+. So te a#tor %oints o#t tat a"ove

&entioned %reca#tions $ill ena"le te "ankers to c#r" !ra#ds and %#"lic &oney can

"e saved.

A Pa$/ /n''/0 Ho+%n7 )nanc/ A Goba P/%$/c'2(?According to Rao- o#sing !inance is a long ter& %ro%osition involving &any risks !or

te lenders- "orro$ers and even !or te econo&y in general. As o#sing !inance is a

long ter& ga&e- it re0#ires %ro%er assetlia"ility &anage&ent strategy- te "orro$ers

also !ace interest rate risk- es%ecially $en tey are locked in !i4ed rates $en interest

rates are !alling and !loating rates are rising. Te a#tor &entions in tis article tat

o&e loans ave "een registering e4%onential gro$t in India d#ring te last si4

years. ,asy li0#idity conditions- lo$ interest rates- availa"ility o! ta4 selters on

re%ay&ent o! %rinci%al and interest s#rging de&and !ro& &iddle inco&e gro#%

53


54/94

"orro$ers- lo$er reg#latory ca%ital- te co&!ort o! tangi"le sec#rity ave all

collectivity contri"#ted to te s%#rt in o&e loans. HF+- I+I+I and SBI are te

&a


55/94

e4tensive #tilization o! tecnology. B#t tere are also so&e co&&on !ra#ds occ#rring

in o#sing !inance like an individ#al2s in!late teir inco&e state&ent- &ani%#late te

inco&e ta4 ret#rns- in!late te val#e %ro%erty- lack o! a%%raisal !ollo$ #% etc. Te

researcer as also e4%lained te ne$ conce%t o! N?> 9Non%er!or&ing loan:. Te

o#sing !inance as "een associated very lo$ risk. B#t e&%irical evidence s#ggest

tat non%er!or&ing loan in te Indian o#sing !inance sector are c iger tan in

a develo%ed &arket. N?> rise in India "eca#se o! $illing de!a#lters and an e&erging

%o%#lation o! !ra#dsters. Tis is also a re!lection o! ind#stry2s aggressive &arketing

and so&e inade0#acies in a%%raisal standards and syste&. S#c ig N?> ave t$o

!old i&%act i.e. tey de%ress yield and entail a credit cost in te !or& o! %rovisioning

and $riteo!!. Te researcer also !o#nd tat te N?> o! o#sing !inance co&%anies

are iger tan te "anks. Te s#ggestion given "y researcer is tat i! te "anks ave

not taken te %r#dential nor&s !or o#sing loans tey ave to cond#ct recovery &ela

instead o! %resent loan &ela.

A R/%/ac& A'c/ /n''/0 Ho+%n7 )nanc/ n In0a A Ca%/

S'+06 o "ICHo+%n7 )nanc/ "*'/0” b6 Sn7& )+ba7 /'.a. >2(?In tis %a%er- te a#tors ave st#died te o#sing !inance in India. Ho#sing- as one o!

te tree "asic needs o! li!e- al$ays re&ains on te to% %riority o! any %erson-

econo&y- govern&ent and society at large. In India- &a


56/94

T&/ S'+06 /n''/0 Ho+%n7 )nanc/ n In0a Pob/*% an0 Po%$/c'%”

A+'&o/0 b6 C&a+b/6 . >28?

Te o"ikert scaling test $as #sed. Te st#dy

reveals tat- 8(J- @(J- ((J and 8J- o%ted !or loans "eca#se o! lo$ interest rate-

easy install&ent sce&e- si&%le %roced#re and oter reasons res%ectively. (/J- @8J-

@3J- and (J res%ondents ave "orro$ed loans !or %#rcase o! !lats- %#rcase o!

o#se- constr#ction o! o#se and oter reasons res%ectively. **J res%ondents &ade

te re%ay&ent in e0#ated &ontly install&ents. 8@J res%ondents kne$ a"o#t te

interest rate. 7(J res%ondents %re!erred !loating interest rates and 3J res%ondent

%re!erred !i4ed interest rates. 1(J- 3J and *J res%ondents ca&e to kno$ a"o#t

"ank tro#g %rint and electronic &edia- !riends and relatives and

B#ilders=evelo%ers res%ectively. )*J- (8J- (*J and 3/J res%ondents ave

re%orted o! &ortgage o! !inance tro#g %ro%erty- gold and oters ins#rance %olicy

e0#al to te loan sanctioned- de%osit !or te title deed and additional collateral

sec#rity res%ectively. )3J- (3J and 8J res%ondents o%ted !or &ore tan ) years- )

years and * year as te ter& o! loan- res%ectively. 8*J- @3J and 3J res%ondents

re%aid teir loan a&o#nt tro#g %ostdated ce0#es- tro#g ,+S and tro#g salary

ded#ction and 8J $ere %aying directly to te "ank. 1*J res%ondents agreed tat

tere is a delay o! loan a%%roval tat tere is a delay o! loan a%%roval and

dis"#rse&ent. Te researcer s#ggested tat- O%tion o! re%ay&ent o! ,'I in &ontly-

0#arterly or al! yearly "asis so#ld "e given. To $in te con!idence o! c#sto&ers and

"ring trans%arency in all te transactions- it is necessary tat te details o! teir loans

acco#nts so#ld "e availa"le online. 'ost o! te c#sto&ers s#ggested tat te loan

%rocessing = sanctioning ti&e so#ld "e red#ced. +#sto&ers s#ggested tat te "ank

so#ld %rovide online a%%roval o! a%%lication. As !ar as te o%inion o! res%ondents

a"o#t vario#s !acilities and %olicies o! te "ank is concerned- it is !o#nd tat - 1(J

o! te res%ondents o%ined tat te govern&ent is enco#raging te o#sing sector

Only )*J said tat te o!!icials o! te instit#tions $ere el%!#l. Only (3J o! te&

re%orted tat tey $ere getting entire cost o! !lat as a loan. - Only 8*J o! te

res%ondents !elt tat rate o! interest canged "y te instit#tions is reasona"le. Only

56


57/94

8(J o! te& $ere satis!ied $it te e4isting !acilities !or o"taining loan. A"ove al!

o! te& 9)(J: stated tat te loan also covered li!e or !ire ins#rance "ene!it. - Only

8(J re%orted tat re%ay&ent %eriod is ade0#ate. 83J res%ondents stated tat tey

$ere reg#lar in &aking %ro&%t %ay&ents. T#s- "y and large- o%inion o! te

res%ondent is not very c in !avor o! te instit#tions- "eca#se e4ce%t in t$o cases

in all te re&aining cases a !avora"le o%inion $as e4%ressed "y less tan )*J.

Si&ilarly- regarding vario#s %ro"le&s !aced "y te c#sto&ers- it $as !o#nd tat &ore

tan al! o! te res%ondents eiter strongly agreed or agreed $it te state&ents a"o#t

delay in a%%roval and dis"#rse&ent- inade0#ate g#idelines- tedio#s %roced#re lack o!

interest on %art o! o!!icials- di!!ic#lty in getting sec#rity- inconvenience in %aying

,'I- irrelevant sec#ritization- illogical a%%roac and ins#!!icient a&o#nt sanctioned.

T#s- &a


58/94

%rod#ctive o#sing sce&e and o"taining "etter ter&s !ro& "anks like !i4ed rate loans

a%%ear to "e 0#ite !easi"le.

A R/%/ac& S'+06 /n''/0 A S'+06 on C+%'o*/% P///nc/ an0

Sa'%ac'on o )o+ Ba%c Bann7 S/


59/94

Da'a Ana6%%

In'/$/'a'on

CHAPTER- !

Da'a Ana6%% In'/$/'a'on

!.1-S9OT ANA"YSIS

59


60/94

STRENGTH

U Rigt strategy

!or te rigt

%rod#cts.

U S#%erior

c#sto&er service

vs. co&%etitors.

U Great Brand

I&age

U ?rod#cts avere0#ired

accreditations.

U Hig degree o!

c#sto&er

satis!action.

U Good %lace to

$ork

U >o$er

res%onse ti&e

$it e!!icient and

e!!ective service.

U edicated

$ork!orceai&ing at &aking

a longter&

career in

te !ield.

9EAKNESSES

U So&e ga%s in

range !or certain

sectors.

U +#sto&er

service sta!! need

training.

U ?rocesses and

syste&s- etc

U 'anage&entcover

ins#!!icient.

U Sectoral

gro$t is

constrained "y

lo$

#ne&%loy&ent

levels and

co&%etition !or

sta!!

60


61/94

O$$o'+n'/%

U ?ro!it &argins

$ill "e good.

U +o#ld e4tend

to overseas

"roadly.

U Ne$ s%ecialist

a%%lications.

U +o#ld seek

"etter c#sto&er deals.

U Fasttrack

career

develo%&ent

o%%ort#nities on

an ind#stry$ide

"asis.

U An a%%lied

researc centre to

create

o%%ort#nities !or

develo%ing

tecni0#es to

%rovide added

val#e services.

T&/a'%

U >egislation

co#ld i&%act.

U Great risk

involved

U 5ery ig

co&%etition

%revailing in te

ind#stry.

U 5#lnera"le toreactive

attack "y &aack o!

in!rastr#ct#re in

r#ral areas co#ld

constrain

invest&ent.

U Hig

vol#&e=lo$ cost

&arket is

intensely

co&%etitive.

8.( S;OT ANA>AYSIS OF HF+ BANK

STR,NGTH Rigt strategy !or te rigt %rod#cts.

S#%erior c#sto&er service vs. co&%etitors.

Great Brand I&age

?rod#cts ave re0#ired accreditations. Hig degree o! c#sto&er satis!action.

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62/94

Good %lace to $ork

>o$er res%onse ti&e $it e!!icient and e!!ective service.

edicated $ork!orce ai&ing at &aking a longter& career in te !ield.

;,AKN,SS,S So&e ga%s in range !or certain sectors.

+#sto&er service sta!! need training.

?rocesses and syste&s- etc

'anage&ent cover ins#!!icient.

Sectoral gro$t is constrained "y lo$ #ne&%loy&ent levels and

co&%etition !or sta!!

O??ORTCNITI,S ?ro!it &argins $ill "e good. +o#ld e4tend to overseas "roadly.

Ne$ s%ecialist a%%lications.

+o#ld seek "etter c#sto&er deals.

Fasttrack career develo%&ent o%%ort#nities on an ind#stry$ide "asis.

An a%%lied researc centre to create o%%ort#nities !or develo%ing tecni0#es to

%rovide addedval#e services.

THR,ATS

>egislation co#ld i&%act. Great risk involved

5ery ig co&%etition %revailing in te ind#stry.

5#lnera"le to reactive

attack "y &aack o! in!rastr#ct#re in r#ral areas co#ld constrain invest&ent.

Hig vol#&e=lo$ cost &arket is intensely co&%etitive.

K,Y ?OINTS;OT Analysis is a si&%le "#t %o$er!#l !ra&e$ork !or analyzing co&%anyEs Strengts and

;eaknesses- and te O%%ort#nities and Treats yo# !ace. Tis el%s yo# to !oc#s on yo#r

strengts- &ini&ize treats- and take te greatest %ossi"le advantage o! o%%ort#nities

availa"le to yo#

TAB"E !.1 Bann7 $o7/%%

(** (**)

Brances 8@ 1

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63/94

AT' 8* 8)

?one "anking 8 (

Internet ( ()

'o"ile

C&a'-!.1 Bann7 $o7/%%

In'/$/'a'on:HF+ BANK "atter ten every ear and te "anking syste& very %rogressives. (**

to (**) "atter %r!o&ans.

TAB"E !.2 TOTA" "IABI"ITIES

(* 2,3#2.(

(*( 33,88.#1

(*@ !,331.48

(*8 !81,#88.#

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64/94

(*) #8,#3.4

C&a'-!.2 TOTA" "IABI"ITIES

In'/$/'a'on:

Total lia"ilities re!er to te aggregate o! all de"ts an individ#al or co&%any is lia"le

!or. Total lia"ilities can "e easily calc#lated "y s#&&ing all o! oneEs sortter& and

longter& lia"ilities- along $it any o!! "alance seet lia"ilities $ic cor%orations

&ay inc#r. On te "alance seet- total lia"ilities %l#s e0#ity st e0#al total assets.

HF+ BANK Total lia"ilitie very good and "eter ten every year tis !or good sine.

TABA" !.3 Inco*/

(* 7-7(3.(

(*( (1-(3/.@)

(*@ @)-*/8.31

(*8 8-@).)@

(*) 83-8/7.7*

C&a'-!.3 Inco*/

64

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65/94

In'/$/'a'on:Inco&e is te cons#&%tion and savings o%%ort#nity gained "y an entity $itin a

s%eci!ied ti&e!ra&e- $ic is generally e4%ressed in &onetary ter&s. Ho$ever- !or

o#seolds and individ#als- Minco&e is te s#& o! all te $ages- salaries- %ro!its-

interests %ay&ents- rents- and oter !or&s o! earnings received... in a given %eriod o!

ti&e.M HF+ BANK +onsistent rise in inco&e tat so$s overall gro$t in inco&e.

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66/94

TAB"E !.! N/' Po' B/o/ Ta

(* )33.//

(*( 1)@.1

(*@ 71)*./@

(*8 (11(.*)

(*) )@(3.1(

C&a'-!.! N/' Po' B/o/ Ta

In'/$/'a'on:?ro!it "e!ore ta4 9?BT: is a %ro!ita"ility &eas#re tat looks at a co&%anyEs %ro!its

"e!ore te co&%any as to %ay cor%orate inco&e ta4. Tis &eas#re ded#cts all

e4%enses !ro& reven#e incl#ding interest e4%enses and o%erating e4%enses- "#t it

leaves o#t te %ay&ent o! ta4. HF+ BANK Net %ro!it "e!ore ta4 It so$s %ositive

vol#&e Lval#e gro$t in all te years. Tere is a no %ress#re on &argins.

TAB"E !.# Eann7 P/ S&a/ >R%?

(* 4!.!

(*( 22.2

(*@ 24.2

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67/94

(*8 3#.3!

(*) !.(

C&a'-!.# Eann7 P/ S&a/ >R%?

In'/$/'a'on:,arnings %er sare or "asic earnings %er sare is calc#lated "y s#"tracting %re!erred

dividends !ro& net inco&e and dividing "y te $eigted average co&&on sares

o#tstanding. Te earnings %er sare !orla looks like tis. HF+ BANK earnings

%er sare (* a!ter do$n- gro$t last !or year. ,arnings %er sare It so$s %ositive

vol#&e Lval#e gro$t in all te years. Tere is a no %ress#re on &argins.

TAB"E !.( EJ+'6 D?

(* /).**

(*( ().**

(*@ (1).**

(*8 @8(.)*

(*) 8**.**

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C&a'-!.( EJ+'6 D?

In'/$/'a'on:,0#ity inco&e is ividend inco&e tat is earned tro#g an invest&ent in stocks

9e0#ity:. ,0#ity dividend It so$s %ositive vol#&e Lval#e gro$t in all te years.

Tere is a no %ress#re on &argins.

68

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TAB"E !. A%%/'%

(* ()-**.3(

(*( 8-77.*7

(*@ 8-/(1.8*

(*8 ()-@8)./@

(*) (1-)*.8)

C&a'-!. A%%/'%

In'/$/'a'on:Any ite& o! econo&ic val#e o$ned "y an individ#al or cor%oration- es%ecially tat

$ic co#ld "e converted to cas. ,4a&%les are cas- sec#rities- acco#nts receiva"le-

inventory- o!!ice e0#i%&ent- real estate- a car- and oter %ro%erty.1. +onsistent rise in assets tat so$s overall gro$t in assets.

2. It so$s %ositive vol#&e Lval#e gro$t in all te years. Tere is a no %ress#re on &argins.

69

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History of Banking By Gunjan Prajapati

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