PART-1

COMPANY PROFILE

HDFC BANK LIMITED A PROFILE Background

The Housing Development Finance Corporation Limited(HDFC) was amongst the first to receive an in principle approval from the Reserve Bank of India (RBI) to set up a bank in the private sector ,as part of the RBIs liberalization of the Indian Banking Industry in 1994. the Bank was incorporated in august 1994 in the name of HDFC Bank Limited, with its registered office in Mumbai, India. HDFC Bank commenced operations as a scheduled Commercial Bank in January 1995.

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

Business Focus
HDFC Banks mission is to be a World-Class Indian Bank. The objectives is to build sound customer franchises across distinct businesses so as to be the preferred provider of banking services for target retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent with the Banks risk appetite. The bank is committed to maintain the highest level or ethical standards, professional integrity, corporate governance and regulatory

compliance HDFC Banks business philosophy is based on four core values Operational Excellence, Customer Focus, Product Leadership and People.

Capital Structure
The authorized capital of HDFC Bank is Rs.450crores (Rs.4.5 billion). The paidup capital is Rs.311.9crores (Rs.3.1 billon). The HDFC Group holds 22.1% of the banks equity and about 19.4% of the equity is held by the ADS Depository [in respects of the banks American Depository Shares (ADS) Issue]. Roughly 31.3% of the equity is held by Foreign Institutional Investors (FIIs) and the bank has about 190,000 shareholders. The shares are listed on the stock exchange. The banks American Depository shares are listed on the NEW YORK stock exchange (NYSE) under the symbol HDB.

Times Bank Amalgamation

In a milestone transaction in the Indian banking industry, Times Bank Limited (another new private sector bank promoted by Bennett, Coleman &Co./Times Group) was merged with HDFC Bank Ltd; effective Februery 26, 2000.As per the scheme of amalgamation approved by the shareholders of both banks and the Reserve Bank of India, shareholdes of Times Bank received 1 share of HDFC Bank for every 5.75 shares of Times Banks.The acquisition added significant value to HDFC Bank in terms of increased branch network,expanded geographic reach, enhanced customer base, skilled manpower and the opportunity to crossell leverage alternative delivery channels.

Distribution Network
HDFC Bank is headquartered in Mumbai. The Bank at present has an enviable network of over 684684 branches spread over 316316 cities across India. All branches are linked on an online real-time basis. Customers in over 120 locations 4

are also serviced through Telephone Banking. The Banks expansion plans take into account the need to have a presence in all major industrial and commercial centers where its corporate customers are located as well as the need to bluid a strong retail customer base for both deposits and loan products. Being a clearing/settlement bank to various leading stock exchanges, the Bank has branches in the centers where the NSE/BSE have a strong and active member base. The Bank also has a network of about over 16951695 networked ATMs across these cities. Moreover, HDFC Banks ATM network can be accessed by all domestic and international Visa/Master Cards, Visa Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

Management
Mr. Jagdish Kapoor took over as the banks Chairman in July 2001. Prior to this, Mr. Kapoor was a Deputy Governor of the Reserve Bank of India. The Managing Director, Mr. Adity Puri has been a professional banker for over 25 years, and before joining HDFC Bank in 1994 was heading Citibanks operations in Malaysia. The Banks Board of Director is composed of eminent individual with a wealth of experience in public policy, administration, industry and commercial banking. Senior executives representing HDFC are also on the Board. Senior banking professional with substantial experience in India and Abroad head various businesses of functions and report to the Managing Director. Given the professional expertise of the Management Team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

Technology
HDFC Bank operates in a highly automated environment in terms of information technology and communication systems. All the Banks branches have online connectivity which enables the Bank to offer speedy funds transfer facilities to its customers. Multi-branch access is also provided to retail customers through the branch network and Automated Teller Machines (ATMs). The Bank has made substantial efforts and investments in acquiring the best technology available internationally, to build the infrastructure for a world class Bank. In terms of software, the Corporate Banking business is supported by Flexcube, while the Retail Banking business by Finware, both from I-flex Solutions Ltd. The systems are open, scaleable and web-enabled. The Bank has prioritized its engagement in technology and the internet as one of its key goals and has already made significant progress in web-enabling its core businesses. In each of its businesses, the Bank has succeeded in leveraging its market position, expertise and technology to create a competitive advantage and build market share.

Business Profile
HDFC Bank caters to a wide range of banking services covering both commercial and investment banking on the wholesale side and transactional/ branch banking on the retail side. The bank has three key business segments:

(a) Wholesale Banking Services

The Banks target market is primarily large, blue-chip manufacturing companies in the Indian corporate sector and to a lesser extent, small & mid-size corporate and agree-based businesses. For the costumers, the Bank provides a wide range of commercial and transactional banking services, cash management, etc. The bank is also a leading provider of structure solutions, which combine cash

management services with vendor and distributor finance for facilitating superior supply chain management for its corporate customers. Based on its superior product delivery/ service levels and strong customer orientation, the Bank has made significant inroads into the banking consortia of a number of leading Indian corporate including multinationals, companies for the domestic business houses and prime public sector companies. It is recognized as a leading provider of cash management and transactional banking solutions to corporate customers, mutual funds, stock change members and banks.

(b) Retail Banking Services

The objective of the Retail Bank is to provide its target market customers a full range of financial products and banking services, giving the customer a one-stop window for all his/her banking requirements. The products are backed by world class service and delivered to the customers through the grooving branch network, as well as through alternative delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking. The HDFC Bank preferred program for high net worth individuals, the HDFC Bank Plus and the Investment Advisory Services programs have been designed keeping in mind needs of customers who seek distinct financial solutions, information and advice on various investment avenues. The Bank also has a wide array of retail loan products including Auto Loans, Loans against marketable securities, Personal Loan and Loan for Two-wheelers. It is also a leading provider of Depository Participant (DP) services for retail customers, providing customers and facility to hold their investment electronic form. HDFC Bank was the first bank in India to launch all international Debit Card in association with VISA (VISA Electron) and issues the Master Card Maestro Debit Card as well. The bank launched its credit card business in late 2001. By Sep.30 th 2005, the bank had a total card base (debit & credit cards ) of 5.2 million cards. The bank is also one of leading players in the merchant acquiring business with over 50,000 Point-of-sale (POS) terminals of debit /credit cards acceptance at

merchant establishments. The Bank is well positioned as a leader in various net based B2C opportunities including a wide range of internet banking services for Fixed Deposits, Loans, Bills Payments, etc.

(C)Treasury Operation
Within this business, the bank has three product areas- Foreign Exchange and Derivatives, Local Currency Money Market & Debit Securities, and Equities. With the liberalisation of the financial markets in India, corporate need more sophisticated risk management information, advice and product structures. These and fine pricing on various treasury products are provided through the banks Treasury team. To comply with statutory reserve requirements, the bank is required to hold 25 of its deposits in government securities. The Treasury business is responsible for managing the returns and market risk on this investment portfolio.

PRODUCT RANGE
Savings, Fixed Deposits, Current and Demat Accounts
Savings Accounts: Apart from the usual facilities, you get a free ATM Card, Inter Branch Banking, Net Banking ,Bill Pay, Phone Banking, Debit Card and Mobile Banking, among others. HDFC Bank Preferred: A preferential Savings Account where you are assigned a dedicated Relationship Manager, who is your one-point contact. You also get privileges like waivers, enhanced ATM withdrawal limit, priority locker allotment, free Demat Account and lower interest rates on loans, to name a few. Sweep-In Account: A fixed deposit linked to your Savings Account. So, even if your Savings Account runs a bit short, you can issue a cheque (or use your ATM Card). The money is automatically swept in from your fixed deposit into your Savings Account. Super Saver Account: Give you an over draft facility up to 75% of your Fixed Deposit. In emergency, you can access your funds while your Fixed Deposit continues to earn high interest. HDFC Bank Plus: Apart from Regular and Premium Current accounts we also have HDFC Bank Plus, a Current Account and then some more. You can transfer up to Rs. 50 lakh per month at no extra charge, between the four metros. You can also avail of cheque clearing between the four metros, get cash delivery/pickup upto Rs. 25,000/-, home delivery of Demand Drafts, at-par cheques, outstation cheque clearance facility, etc. Demat Account: Conduct hassle- free transactions on your shares. You can also access your Demat Account on the Internet. 9

Innovative services for your convenience

Phone Banking: 24 hour automated banking services with 39 Phone Banking numbers available. ATM 24 Banking: Apart from routine transactions, you can also pay your utility bills and transfer funds, at any of your ATMs across the country all year round. Inter-city/Inter-branch Banking: Access your account from any of our branches in cities. Net Banking: Access your bank account from anywhere in the world, at any time, at your convenience. You can also view your Demat Account through Net Banking. International Debit Card: An ATM card you can shop with all over the country and in over 140 countries with. You can spend in any currency, and pay in Rupees. Mobile Banking: Access your account on your mobile phone screen at no airtime cost. Use SMS technology to conduct your banking transactions from your cell phone. Bill Pay: Pay your telephone, electricity and mobile phone bills through our ATMs, Internet, phone or mobile phone. No more standing in long queues or writing cheques.

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Loan for every need

Now, your loans come to you in easy -to-pay monthly installments, and are available with easy documentation and quick delivery. Personal Loans: Take a of up to RS. 3 lakh for a wedding, education, purchase of a computer or an exciting holiday. New Car Loans & used Car Loans: Finance up to 90% of the cost of a car, new or used! And the loans come to you with easy documentation and speedy processing at attractive interest rates. Loans Against Shares: Get an overdraft up to Rs. 10 lakh at an attractive interest rate against physical shares, up to 50% of the market value of your shares. In case of Demate Shares, you can get a Loans Against Shares up to 65% of the market value of your shares, till Rs. 20 lakh. Two Wheeler & Consumer Loans: To help you buy the best durables for your home. Demat Account: Protect your shares from damage, loss & theft, by maintaining your shares in electronic form. You can also access your demate account on the internet. Current Account: Get a personalized cheque book, monthly account statements, inter-branch banking and much more. Mutual Funds: A part from a wide choice of mutual funds to suit your individual needs, you benefit from expert advice on choosing the right funds based on indepth market analysis.

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International Credit Card: Get an option of Silver, Gold, or Health Plus Credit card, accepted worldwide from a world-class bank. If you have outstanding balance on your other credit card, you can transfer that balance to this card at a lower interest rate. NRI Services: A comprehensive range, backed by unmatched features and worldclass service, ensures NRIs all the banking support they need. Forex Facilities: Avail of foreign currency, travelers cheques, foreign exchange demand drafts, to meet your travel needs. Insurance: HDFC Bank now brings you Life Insurance and Pension Solutions like Risk Cover Scheme, Savings Scheme, Childrens Plan and Personal Plan from HDFC Standard Life Insurance Co. Ltd.

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RATINGS/AWARDS
(a) Credit Rating
HDFC Bank has its deposit programmes rated by two rating agencies Credit Analysis & Research Limited. (CARE) and Fitch Ratings India Private Limited. The Banks Fixed Deposit programme has been rated CARE AAA (FD) [Triple A] by CARE, which represents instruments considered to be of the best quality, carrying negligible investment risk. CARE has also rated the Banks Certificate of Deposit (CD) programme PR 1+ which represents superior capacity for repayment of short term promissory obligations. Fitch Ratings India Pvt. Ltd. (100% subsidiary of Fitch Inc.) has assigned the TAAA (ind) rating to the Banks deposit programme, with the outlook on the rating as stable. This rating indicates highest credit quality where protection factors are very high. HDFC Bank also have its long term unsecured, subordinared (Tier II) Bonds of Rs. 4 billion rated by CARE and Fitch Rating India Private Limited. CARE has assigned the rating of CARE AAA for the Tier II Bonds while Fitch Ratings India Pvt. Ltd. has assigned the rating AAA (ind) with the outlook on the rating as stable. In each of the cases referred to above, the ratings awarded were the highest assigned by the rating agency for those instruments.

(b) Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a Corporate Governance and Value Creation (GVC) rating by the rating agency, The Credit Rating Information Services of India Limited (CRISIL). The rating provides and independent assessment of an entitys current performance and an expectation on its balanced value creation and corporate governance practices in future. The bank has been assigned a CRISIL GVC Level 1 rating which indicates that the banks capability with respect to wealth creation for all its stakeholders while adopting sound corporate governance practices in the highest. 13

(c) Awards and Accolades

Over the years, HDFC Bank has received recognition and awards from various leading organizations and publications, both domestic and international. 2007 The Asian Banker Excellence in Retail Financial Services Awards Asian Banker Our Managing Director Aditya Puri wins the Leadership Achivement Award for India 2006 Best Bank in India. One of Asia Pacifics Best 50 companies. Best listed Bank of India. Best Domestic Bank. Best Local Cash Management Bank in Large and Medium segments. Euromoney Awards 2005 Asia money Awards Asia money Awards n India. Hong Kong-based Finance Asia Best Bank India Magazine Best Domestic Commercial Bank Best Cash Management Bank-India. Retail Banking Risk Management Award Best Bank in India. Best retail bank in India

Business Today Forbes magazine Business world The Asset Magazines Triple A Country Awards Asia money Awards

The Asian Banker Excellence

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 Economic Times Awards The Asset Triple A Country

Company of the year Award for corporate Excellence. Best Domestic Bank in India Region2005

Awards Responsiveness Awards Services-2005 Best Local Cash Management Bank in India Survey US$11-100m-2005 Best Bank in India for third consecutive year in Survey 2005. Banking connect customer 2004 Asia money Awards Best Local Cash Management Bank in India US$11-100m, >US$501m, 1989-2004 (poll of polls). Asian Banker Awards The Asset Triple A Country Award Business World Asiamoney Awards Asiamoney Awards One of Indias Most Respected Companies2004. Best Overall Domestic Trade Finance Services in India-2004. Most Improved company for Best Management Practices in India-2004. Operational Excellence in retail Finance Servives-2004. Best Domestic Bank in India-2004. and Financial. Economic Times Avaya Globel Most Customer Responsive Company The Business Today KPMG The Business Today KPMG

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 Forbes Global

Best Under a Billion, 100 Best Smaller Size Enterprise in Asia/ Pacific and Europe-2004.

2003 The Asset Triple A Country Awards The Asset Magazine The Asset Magazine Outlook Money Business Today Survey Forbes Global Companies 2003. Business World-The Business Companies World Most Respected Company Awards 2002 Asiamoney Magazine Best Commercial Bank in India-2002 Finance, Insurance & Real Estate One of Indias Most Respected Best Under a Billion, 200 Best Small Best Cash Management Bank Best Trade Finance Bank Best Bank in the Private Sector-2003 Best Bank in India-2003 Best New Private Sector Bank -2003 Best Domestic Bank in India 2003

FE-Ernest & Young Best Banks

21st Century Achievement Awards category byComputerworld. 2001 Economic Times Awards Corporate

Excellence

as

the

Emerging

Company of the year 2000-01 2000

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 Leading India Business MagazineIndias Best Bank in 2000. Forbes Global 300 Best Small Companies in the world.

We are aware that all these awards are mere milestones in the continuing, never ending journey of providing excellent service to our customers. We are confident, however, that with your feedback and support, we will be able to maintain and improve our services.

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FINANCIAL RESULTS
Quarter ended December 31,2006 For the quarter ended December 31,2006,the bank earned total income of Rs.2,132.6 crores as against Rs.1,475.9 crores in the corresponding quarter ended December 31,2005. Net revenues (net interest income plus other income) for the quarter ended December 31,2006were Rs.1,301.9 crores, an increase of 34.7% over Rs.966.7 crores for the corresponding quarter of the previous year. Interest earned (net of loan origination costs) increased by49.1% from Rs1,179.8 crores for the quarter ended December 31,2005, to Rs.1,759.3 crores for the quarter ended December 31,2006. Net interest income (interest earned less interest expended) for the quarter ended December 31,2006 increased by 38.5% to Rs.928.6 crores driven by average asset growth of 31.6% and improvement in net interest margin to just over 4%. Other income (non-interest revenue) for the quarter ended December 31,2006 increased by 26.1% to Rs.373.3 crores, from Rs.296.1 crores for the corresponding quarter of the previous year. Its principal component was fees and commissions contributing Rs.331.4 crores for the quarter ended December 31,2005.The other two components of of other crores income and were foreign on exchange/derivatives revenues Rs63.0 profit/(loss)

revaluation/sale of investments of Rs.(21.1)crores as against Rs.20.1 crores and Rs.(0.6) crores respectively, for the quarter ended December 31,2005. Operating (non-interest) expenses for the quarter increased by Rs.155.9 crores to Rs.605.0 crores and were 46.5% of revenues. Provisions and contingencies for the quarter were Rs.401.3 crores (against Rs.293.2 crores for the corresponding quarter ended December 31,2005), principally comprising of specific provision for non performing assets and general provision for standard assets of Rs.192.9 crores and amortization of premia (for investments in the Held to Maturity category) of Rs.60.4 crores. After providing Rs.134.9 crores for taxation, the bank earned a

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Net Profit of Rs.295.6 crores, an increase of 31.7% over the quarter ended December 31,2005. Total balance sheet size increased by 32.5% from Rs.67,623 crores as of December 31,2005 to Rs.89,608 crores as of December 31,2006. Total deposits were Rs.66,749 crores, an increase of 30.4% from December 31,2005. With savings accounts deposits of Rs.19,238 crores and current accounts deposits at Rs.17,433 crores, the CASA mix was healthy at around 54.9% of total deposits as at December 31,2006, as against 53.1% as at December 31,2005. Net advances as at December 31,2006 were Rs.48,201 crores, an increase of 32.8% over December 31,2005, with gross retail loans now forming 52% of gross advances. The Banks customer assets (including advances, corporate debentures, investments in securitized paper, etc.) net of loans securitized and participated out increased to Rs.53,898 crores as of December 31,2006 from Rs.42,538 crores as of December 31,2005.

Nine months ended December 31,2006: For the nine months ended December 31,2006, the Bank earned total income of Rs.6,021.1 crores as against Rs.3,916.7 crores in the corresponding period of the previous year. Net revenues (net interest income plus other income) for the nine months ended December 31,2006 were Rs.3,713.7 crores, up by 41.4% over Rs.2,626.3 crores of the nine months ended December 31,2005. Net Profit of the nine months ended December 31,2006 was Rs.797.9 crores up by 31.3%, over the corresponding nine months ended December 31,2005.

BUSINESS UPDATE:
As of December 31,2006, the Banks distribution network had expanded to 583 branches and 1,471 ATMs in 228 cities as of December 31,2005. As of

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December, 2006 the number of debit cards issued by the bank touched 4 million while credit cards issued crossed the 2.75 million mark. Portfolio quality as of December 31,2006 remained healthy with net nonperforming assets at 0.4% of total customer assets. Capital Adequacy Ratio (CAR) was 12.8% against the regulatory minimum of 9%. Tier I CAR was at 8.4%. During the quarter ended December 31,2006 the Bank has raised Rs.479 crores of subordinated debt qualifying as Upper Tier II capital (including US$ 100 million in foreign currency). NOTE : (i) Rs.=Indian Rupees (ii) 1 crore= 10 million (iii) All figures and ratios are in accordances with Indian GAAP.

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ORGANIZATION STRUCTURE (IN A CAR UNIT)

Board of Directors

Mr. Jagdish Capoor Mr. Aditya Puri Mr.Keki M. Mistry Mr. Vineet Jain Mrs. Renu Karnad Mr. Arvind Pandey Mr.Ashim Samanta Mr. C.M. Vasudev Mr. Gautam Divan Dr. Pandit Palande

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Product Overview Auto loans are installment loans for the purchases of new and used vehicles to be used for personal, business or commercial purposes.Finance could also be availed on the basis of the security of an owned vehicle under the refinance programme. The Auto loan programm is a Retail Asset product and can be availed by Individuals,Sole Proprietors, Partnership Firms, HUFs, Private and Public Limited Companies who satisfy the credit parameters set out in this manual. The bank would assess the credit worthiness of the applicant, approve and disburse the loan and also mark a lien of the vehicle as a security. The lien on the vehicle has to be a first lien. Listed below as some of the vehicle has to be a first lien. Listed below are some of the key products: NEW AND USED CARS: Applications for cars where the car has not been delivered by an authorized manufacturer dealer or where the invoice date/date of delivery as per delivery challan (whichever is earlier), is up to 30 days from the date of file login, will be deemed to be an application for a New car. All other applications will be deemed used car loan applications. Standard Product: EMI in Advance, EMI in arrears. Minimum Loan: Rs. 50,000. Tenure: 12 Months to 84 Months. Eligible Borrowed Segment:

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Salaried Individuals, Self emliyed Individuals, Sole Proprietorships, Paternership Firms, HUFs, Trusts, Private & Public Limited Companies. Equated Monthly Installment (EMI): The amount paid by customer each month towards repayment of the loan extended to him. EMI comprises of both principal & interest components. Loan To Value (LTV): The ratio of the maximum amount of loan of the value / cost of the car Varies with vehicle make, modle & tenure. Pleasereferto theLTV matrix / chart. Repayment Mode: EMIs in the form of PDCs Post Dated Cheqwes. Standing Instructions (SI for HDFC Bank Account Holders) and through Electronic Clearing Service (ECS). Loan Type: Termloan with hypothecated /lien merked in faver of HDFC Bank. Security/Collateral: Asset financed will be hypothecated /lien merked in faver of HDFC Bank. System and Process: Desentalised approvals anddisbursals with all loans being booked in Finness/ as process set from time to time. Banking: PDCs stored and banked centrally, SI/ESC debits will also happen centrally.

CreditApproval Process: Credit policy will lay down the borrowed eligibility criteria / approval process/ deviation policy as approved by the Central Risk Unit. Approval authorities may be Bank Employees / Bank including outsourcing agencies.

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Collections: In house and agency based collections through tele-calling and field collections for soft buckets. Appointment of external agencies for chronic/serious defaulters& repossessions. Interest Rate: As per approved rack rates firm time to time. Types of Cars:As per list of car approved by the bank, Please refer to various products and LTV matrix/Chart. Use of Vehicles: Vehicles financed shud be for personal, official and cimmercial used. Approved Locations: As per locations approved by Product Management Team.Sourcing can be done fron all such approved locations and within 25 Km. Radius of an approved hub and 10 Km radius of an approved spoke location.

New Car Loans You have spent a lot of time thinking about the make, modle and colour of your car. Now you dont have to spend a moment more than necessary to bring it home.

Just get in touch with us for a car loan to buy a new car and see how simple the car buying experience can be. HDFC

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Banks Car Loans Scheme is thle most convenient way to get a loan for your new dream car. Isnt it time you stepped on the accelerator? Advantages of our New Car Loans Services Speedy processing within 48 hours. Covers the widest rsnge of cars and multi-utility vehicles in India. Whatever the car you choose, we finance you, for up to 90% of its invoice value. Flexible repayment options 12 to 60 month period. Attractive car loan plans. Among the lowest interst rates. Hassle-free documentation. Prepayment prepaythe loan anytime after 6 minths at a small charge. Special rates for HDFC Bank account holders.

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Used Car Loans

Today, used car of reliable quality and good value for money are readily available. HDFC Bank Used Car Loans puts you in the drivers seat. Flexible options are available for most models at competitive interest rates, and quick approvals. Whats more, HDFC Bank akso helps you select good quality used cars and even value them.

Advantages of our Used Car Loans Services You can choose any car manufactured in India within a certain age*. Choose flexible loan repayment schedules. Get up to 80% finance of the value of the car. Repay in easy installments of 12 tok 48 months. Avail of the lowaest interest rates. If you are an HDFC Bank account holder, we have got special benefits for you. 6 years for premium vehicles, 7 years for standaed vehicles and up to 8 years (only for salaried individuals) on select vehicles.

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KINDS OF CAR LOANS

1. Normal Loan. 2. Agriculture Loan. 3. Fixed Diposit Lien. 4. Repaymint Product. 5. Credit Card. NORMAL LOAN: (a) Salaried Applicanats :Eligible Income for salaried applicants refers to the Gross Annual Salary of the aplicant. No other incomecan be clubbed to arrive at the minimum gross salary required under a product programme. Formula : Income = Gross Salary aspler From 16 before any deduction + Gross Salary Income of Spouse. This will be the total Gross Household Income (GHI). All income documents as applicable to the applicant will also be required tok be collected in respect of the spouse if income of spo;use is also to be clubbed tok arrive at the GHI. The spouse need not be a co-alicant in suchcases, but will need to sign on the application fromindicating intention of being a part of the transaction. Identity Proof, Age Proof etc. of the spliuse need not be collected in such cases. Maximum Loan Eligibility: Gross Salary multiplied by 3 30

Who is the person which is :Less than gross salary 10,000. 70% for three years category A car. 65% for three years category B car. Not fund for C & D category car. More than 10,000. HDFC funds 80% for five years category A car. 75% for five years category B cat. 65% three years category C car. Not fund for D category car. (b) Self Employed Individuals / Proprietorships :The Income from Business or rofessionas in the Income Tax Return will form the basic income of the aplicant / co-applicant. Notes : Income from other sources in thesform of bank interests and dividends of companies listed on the stock exchange can be added to the Business Incomeif there is no business loss. However, if this income exceeds 20% of the total income requirement for the product, then income proof in the form of bank credits OR Bank Fixed Deposit photocopies OR the De-mat account statement needs to be given.

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Income from Rent can be added to the Business Income if there is no business loss. However, if this income exceeds 20% of the total income requirement for the product, then income plroof in thr form of rental credits in bank along with the rent agreement copy needs to be given. If rent credits are not appearing in thebank account, then the rent agreement along with 3 months bank statementk willalsi be a valid substitute.

Agriculture Income up to 20% of the total income requirement for the plroduct, can be added to the Business Income prkovided there is no Business loss.

Formula : Business Income (as per Income Tax Return) + Income from Other Sources (Bank Interest and Dividend Income) + Agriculture Incume. Proofs of these income to be taken as above if applicable.

Maximum Loan Eligibility: Income multiplied by 6 Less than 60,000. in Income Tax Return 70% for three years category A car. 65% for three years category B car. 60% for three years category C car. Not fund for D category car. More than 60,000. to 1,00,000.

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85% for five years category A car. 75% for five years category B cat. 65% for three years category C car. 60% for three years category D car. Above 1,00,000. 85% for five years category A car. 80% for five years category B cat. 75% for three years category C car. 60% for three years category D car.

(c) Partnership Firms :The Income fokr the partnership firms is the addition of Net Profit, Salary of Partners, Interest okf Partners (to be deducted if negative); and full depreciation if the financials are audited. For Net loss making firms, interest and salary to partners cannot be added. Rent Inxome as in the Income Tax Return can be added to arrive at the eligible income.

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Formula : Income = Net Profit asper Profit ahe Loss Account + Salary of partners (if thle firm has a Net Profit and is not loss making) + Interest Paid to Partners (If the firm has a Net profit and is not loss making) + Depreciation (If the financials are audited and the firm has a Net profit and is not loss making) + Rent Income as in the Income Tax Return.

Maximum Loan Eligibility: Income multiplied by 6 (d) Private Limited / Limited Companies :The eligible income for Private Limited or Limited Company is the addition of Net Profit, Depreciation and the Directors salaries. However, if the applicant is a Net loss making company, then one of the directors needs tok be a co-applicant. Formula : Income= Net Profit as per Profitand Loss Account + Depreciation + Directors Salaries.

Maximum Loan Eligibility: Income multiplied by 6

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AGRICULTURE LOAN
This scheme will be aplicable for all auto-approved locations including location awith in 25 Km. from the approved HUB location or 15 Km. from the spoke location. All individualaplicant HUFs and plartnership firms are eligibleunder the scheme aplicant of firm should be involvedin agricultural activities or alliged activities. Alliged activities which are as under: Applicant engaged in one or more activities given below can be considered under this policy. a) Dairy Farming, Poultry framing, Horticultural, Cattle feeding. b) Frtilizers and plantations. c) Fisheries and aqua cultural. d) Food and agro based. e) Small scale enterprises with investment upto Rs. 10,00,000. carried on business on contacting tractors, bore wells, agricultural equipment to farmer or dealer of agri machinery. Under certain Policy : All category A, B and C segment car. 0.5% with permissible deviation one time plrocessing fees okf Rs. 2,000./- is to changed. Three acre = 75% for five years. Maximum Loan 6,50,000. 35

FIXED DEPOSIT LIENS

There would be instances where the applicant has a fixed deposit or is willing to put a fixed deposit with HDFC Banks lien on the fixed deposit, then the amount of Fixed deposit under lien would be reduced from the loan amount for LTV calculations. The following conditions will apply in all cases : 1. The fixed deposit should be either in the applicant or co-applicants name. The co-applicant should be a 2. blood relative viz. Father, Mother, Brother, Unmarried Sister,

Wife/Husband, Unmarried Daughters. 3. The tenure of the fixed deposit should be greater or equal to the tenure of the loan. 4. The applicant will have to sign a letter giving his consent for putting a lien on the fixed deposit. 5. The credit buyir should ensure that the lien is market in the system as per requirement before disbursement.

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REPAYMENT PRODUCT
The repayment product is for those customers who have earlier taken an auto loan and have clear repayment history. This would be applicable to applicants having vehicles under lien from above financier with at least 12 months vintage. 1. In addition to above 11 Credit parameters, this product will require a clear repayment track of the loan to be the foreclousre statement. 2. In exceptional cases, if the foreclosure statement is not available, then the wellcome letter along with the clear repayment track in form of a bank statemant showing clearance of EMIs for thelast 12 months should be made available. 3. 4. No financials will be required under repayment product. Maximum LTV permissible for a/b/c segment cars will be 90%. (D Segments cares are not eligible underthisproduct.) taken over along with

CREDIT CARD SURROGATE PRODUCT

Applicable for only eligible Credit Cards as mentioned in Credit Card product. 1. Card should be more then 12 months old. 2. Clear copuof the front and back of the credit card issued in the name of the applicant.

37

3.

Card statements for any two continuous months out of the latest three months need to be given for approval. Card should be current and not past due. 4. Satyam De-dupe will be needed to be done, at least on a sample basis. 5. Maximum ermissible LTV for A & B segment cars will be 65% and for C / D segment cars will be 55%. All other as per policy are applicable (Income Documents for

required).

MARUTITRUE VALUE
Objective / Ratijonale :
True Value is used car brand which has been launched by Maruti. The idea behind launching is to create brand loyalty, revenue generationfor the dealers as well MUL and customer satisfaction. Asof today, Used car market is still an un-organized sector and the vhicles are not co-branded or carry warranty which makes it difficulty for the customers, financiers to ascertain the true value of the asset. HEFT Bank is a partner in Maruti True Value scheme of things. Allso there is strong manufacturer relationship with Maruti. Looking at all the above factors, the Bank will need to accept Maruti True Value proposal. Howerer, the higher exposure on the asset to be funded by the Bank needs to be mitigated by stronger credit norms due to increased explosure risk on the asset.

38

Key features of the Brand :

Maruti dealers can apply for Franchisee for True Value in their Locations. Maruti will designate Maruti Dealers as True Value dealership. The vehicle is refurbished at the Dealers end, inspected and valuation is carried out by Service Engineers of MUL designated at each location who also give a valuation report.

Proposal To accept Maruti True Value Valuation for used car business. Offer funding periods up to 60 months wherethe age of the vehicle can extend up to 10 years at the end of the tenure. Disbursement for such cases to be made directly to the True Value Dealership. True Value Dealer to be responsible for the transfer of registration. LTV to be 90% for all Maruti True Value vehicles for all tenures uplto 60 months. To have differential norms for incremental funding for Maruti True Value cases. Sanctioning (a)

Salary Applicant :

Passport size photograph. Age verification : PAN Card, Voters ID, Passplort, License. Bank statement for jthe last six months. Incone Documents e.g. Latest Form 16. Residence Proof.

39

Signature verification. (b) Businessman or Self employed :

Passplort size photograph. Two Income Tax Return (One latest and One Last I.T.R.) Bank statement for the last six months. Residence Proof. Signature verification. Age verification : PAN Card, Voters ID, Passplort, License. (c) Partnership Firm

Passplort size photograph. Two Income Tax Return (One latest and One Last I.T.R.) Bank statement for the last six months. Memorandum okf Articles (MOA). Board of resolution. Balance Sheetof two years. Partner should be taken as co-applicant (guarantor). Private Limited / Limited Companies

Passplort size photograph. Two Income Tax Return (One latest and One Last I.T.R.) Bank statement for the last six months. Memorandum okf Articles (MOA). Board of resolution. Balance Sheetof two years. Director should be taken as co-applicant (guarantor).

40

ELIGIBILITY
For salaried Individuals : Minimum age of Applicant : 21 years. Maximum age of Applicant at loan maturity : 60 years.

Minimum

employment

year

in

current

employment and minimum 2 years of employment.

Gross household income ie including income of the spouse : Rs. 1,00,000. Net Annual Income. Telephone : Necessary at residence.

For self employed : Minimum age of Applicant : 21 years. Maximum age of Applicant at loan maturity : 65 years.

Minimum employment : At least 3 year in business. Minimum Annual Income : 60,000. Telephone : Necessary at residence.

For partnership Firms : Minimum Annual Income : 60,000. Minimum turnover : Turnover Rs. 4.5 lakhs.

Telephone : Landline at office and at residence of loan executing partner. Post-paid Mobile phone of three month vintage acceptable in case of landline at only one place.

For Private Limited Company :

41

Minimum Annual Income : 60,000.

Telephone : Landline at office

For Public Limited Company : Minimum Annual Income : 60,000.

Telephone : Landline at office

HUFs and Trusts :

Minimum Annual Income : 60,000. For HUFs, Karta to be co-applicant in his individual capacity.

Telephone : Landline at office and at residence of loan executing partner. Post-paid Mobile phone of three month vintage acceptable in case of landline at only one place.

Application process The moment to decide a car then you apply a loan even before you have a car. A customer who fill the application form, residing in the same city where the HEFT has car loan. A customer has to provide an income document with ID and Address proof for sanctioning a loan. After sanctioning a loan the customer has to sign an agreement and give the dated check (tenor decided by the customer).

42

(a) Salary Applicant (b)

43

Frequently Asked Questions

Who can Avail of HDFC Bank New Car Loans? To avail of a New Car Loan you need to be in one of the following categories : Salaried individuals in the age group of 21 to 60 years (at the end of tenure). Self-employed individuals in the age group of 21 to 65years (at the end of the tenure). Partnership Firms. HUFs and Trusts. Which cars can be financed? HDFC Bank finances most passenger cars and multi-utility vehicles manufactured by Indias leading automoble companies. How much finance can I avail of? You can borrow up to 90% of the invoice value. But if you so desire, the minimum loan amount is Ra.50,000. What are the tenure options? The choice is years. You can choose any repayment option from 12 to 84 months all specially designed to suit your requirements. How long will it take to process the loan? Within 48 hours of completing documentation. Dose one have the optionof pre-paying the entire loan amount?

44

Yes. One can pre-pay theloan any time after 6 month of availing of theloan. One merely has to pay a small pre-payment fee on the outstandingloan amount. If one doesnt have an account with HDFC Bank, can one still avail of loans? Of course, onecan get an HDFC Bank Car Loan. You need not necessarily have an account with us. Does one need a guaranter? Generally no. But if your income does not meet our credit criteria, then you may be required to have a guarantor for this loan. So how does one get HDFC Bank Car Loans? Its quite simple. You could also meet us at any HDFC Bank Branch convenient to you. Or visit any of the HDFC Bank preferred dealerships or pick up the phone and we will promptly send an HDFC Bank associate to you. Who can avail the HDFC Bank Used Car Loan? If you are looking for your dream car, and loan to buy it, youve come to the right place. You have to fill into the following categories : Salaried individuals in the age group of 21 to 60 years (at the end of tenure). Self-employed individuals un the age group of 21 to 65 (at the end of tenure). Partnership Firms. Public & Private Ltd. comlanies. HUFs and Trusts.

45

Which cars can be financed? HDFC Bank finances most passenger cars and multi-utility vehicles manufactured by Indias leading autokmobile companies, Maruti 800, Omni, Zen, Esteem, Baleno, Wagon R, Honda city, Opel Astra &Corsa, Ford Escort & Ikon, Hundai Account & Santro, Daewoo Matiz & Cielo, Tata Indica, Sumo, Fiat Siena & Uno and Mitsubishi Lancer. So choose the car from the extensive list and apply right away. How much finance can I avail of? If you so desite, you can borrow up to 80% of the invoice value. What are the tanure options? The choice is with you. You can choose from any of the 4 well-paced repayment optionsof 12, 24, 36, 48 and 84 months all specially designed to suit your requirements. How long will it take to process the loan? Within 48 hours of competing documentation. Do I have the option of pre-paying the entire loan amount? Of course, you can get HDFC Bank Car Loans. You need not necessarily have an account with us. Do I need a guarantor? Generally no. But if your income does not meet our credit criteria, then you may be required to have a guarantor to stand surety for your loan. So how do I get HDFC Bank Car Loans? Its quite simple. You can either meet us at an HDFC Bank Branch convenient to you. Or visit any of the hdfc Bank preferred dealerships or you could also call us and we will promptly send an HDFC Bank associate over to you.

46

47

RESEARCH METHODOLOGY

Research Type Universe Sampling Technique Sample Unit Sample Size Type of Data Website Tools

Descriptive Research Bareilly City Purposive Random Sampling Customers 100 Primary Data schedule, Secondary Data HDFC

Structured schedule personal interview

48

The Research Methodology for the present study is outlined below : A. Developing a Research Design : *Problem Definition. *Type of Research Adopted. *Method used in Research. B. Sampling Design : *Type of approach followed. *Sample size. C. Data collection *Basic method adopted. *Questionnaire-Design & Construction. D. Analysis & Interpretation *Developing a Research Design. Significance of Research All progress is born of inquiry. Doubt is often better overconfidence. For it leads to inquiry, and inquiry leads to invention is a famous Hudson Maxim in context of with the significance of research can be understood. Increased amounts of research make progress possible. Research includes scientific and inductive thinking and promoted the development of logical habits of thinking and organization. The role of research in several fields of applied economics, whether related to business or to the economy as a whole, ahs greatly. Increased in

49

modern times. The increasingly complex nature of business and government has focused attention on the use of research and solving operational problems. Research, as and aid to economic policy, has gained assed importance, both for government and business. Research provides the basis for nearly all government policies in our economic system. Research has its special significance in solving various operational and planning problems of the business and industry. Research is equally important for social scientists in studying social relationships and in seeking answers to various social problems. To professionals in research methodology, research may mean a source of livelihood. To literary men and women, research may mean the development of new styles and creative work. To analysts and intellectuals, research may mean the generalizations of new theories. Research methodology is a way to systematically solve the research problem. It may be understood as a science of studying how research is dined scientifically. In it we study the various steps that are generally adopted by a researcher in studying his research to know not only the research methods/techniques but also the methodology. Research not only need to know and develop certain indices or tests, how to calculate the mean, the median or the standard devotion or chisquare, how to apply particular research techniques. The scope of research methodology is wider than that of research methods. Thus, when we talk of research methodology we not only talk of the research ,methods but also consider the logic behind the methods following order concerning various steps provides a useful procedural guideline regarding the research process : Formulating the research problem. Extensive literature survey. Developling the hypothesis. Preparing the research design. Determining design. Collecting the data. 50

Execution of the project. Analysis of data.

Hypothesis Testing Generalizations and Interpretation Preparation of the report of presentation of the result, i.e. formal write-up of conclusions reached.

51

RESEARCH METHODOLOGY Research in common parlance refers to a search for knowledge. One can also define research as scientific and systematic search for pertinent information on a specific topic. In fact, research is an art of scientific investigation. According to Clifford Woody research comprises defining and redefining a problems. Formatting hypothesis or suggested solutions, collecting, organizing and evaluating data s making deduction and reaching conclusion, and at last carefully testing the conclusions to determine whether they fit the formulating hypotheses. Objectives of Research The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Through each research study has its own specific purpose, we may think of research objectives as falling into a number of following broad groupings : A. B. C. To gain familiarity with a phenomenon or to achieve new insights into (studies with this object in view are know as descriptive research studies). To portray accurately the characteristics of a particular individual, situation or a group (studies with this object in view are know as descriptive research studies). To determine the frequency with which something occurs or with which it is associated with something else (studies with this object in view are know as diagnostic research studies). D. To test a hypothesis of a causal relationship between variables (such studies are know as hypothesis testing research studies). Types of Research

52

The basic types of research are as follows : (1) Descriptive vs. Analytical : Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purposes of descriptive research is description of the state of affairs, as it exists at present. In social science and business research we quite often use the term Ex post facto research for descriptive research studies. The main characteristic of this method is that the researcher has no control over the variables, he can only report what has happened or what is happening. (2) Applied vs. Fundamental : Research can either be applied (or action) research or fundamental (or basic or pure) research. Applied Research aims at finding solution for an immediate problem facing a society or an industrial/business organization, whereas fundamental research is mainly concerned with generalizations and with the formulation of a theory. Gathering Knowledge for knowledges sake is termed pure or basic research. (3) Quantitative vs. Qualitative : Quantitative research is based on the measurement of quantity or amount. It is applicable to phenomena that can be expressed in terms of quantity phenomenon, i.e. phenomena relating to or involving quality or kind. For instance, when we are interested in investigating the reasons for human behavior (i.e. why people think or do certain think or do certain things), we quite often talk of Motivation Research, an important type of qualitative research. This type of research aims at discovering the underlying motives and desires, using in depth interviews for the purpose. (4) Conceptual vs. Empirical :

53

Conceptual research is that related to some abstract idea (s) or theory. Philosophers and thinkers to develop new concepts or to reinterpret existing ones generally use it. On the other hand, empirical research relies on experience or observation alone, often without due regard for system and theory. It is data based research, coming up with conclusions, which are capable of being verified, by observation or experiment. We can also call it as experimental type of research. (5) Some Other Types of Research : All other types of research are variations of one or more of the above stated approaches, based on either the purpose of research, or the time required to accomplish research, or the environment in which research id done, or on the basis of some other similar factor, from the point or view of item, we can think or research either as one time research of longitudinal research. In the former case the research is confined to a single time-period, whereas in the latter is carried on over several time-periods. Research can be field-setting research of laboratory research or simulation research, depending upon the environment in which is to be carried out. Research can as well be understood as clinical or diagnostic research. Such researches follows case-study methods or in depth usually go deep into the causes of things or events that interest us, using very small samples and very deep probing data gathering devices. The research may be exploratory or it may be formalized. The objected of exploratory research is the development of hypotheses rather than their testing; whereas formalized research studies are those with substantial substantial structure and with specific hypotheses to be tested. Historical research is that with utilized historical sources like documents, remain, etc. to study events or ideas of the past, including the philosophy of persons and groups at any remote point of time. Research can also; be classified as conclusion-oriented and decision-oriented. While doing conclusion-oriented research, researcher is free to pick up a problem, redesign the enquiry as he proceeds and is prepared to conceptualize as he wished.

54

Decision maker and the researcher in this case is not fee to embark on research according to his own inclination. Operations research is an example of decisionoriented research since it is scientific methods of providing executive departments with a quantitative basis for decisions regarding operations under their control. What is a Research Problem? A research problem, in general, refers to some difficulty, which a researcher experiences in the context of either a theoretical or practical situation and wants to obtain a solution for the same. Selecting the Problem : The research problem undertaken for study must be carefully selected. The task is a difficult one, although is may not appear to be so. Nevertheless, every taken from a researcher must find out his own salvation for research problems can not be borrowed. A problem must spring from the researchers mind like a plant springing from its own see. We have to see ourselves and enable him to prescribe for us the right number by cooperating with him . Thus, a research guide can at the most only help a researcher choose a subject. However, the following points may observe by a researcher in selecting a research problem or a subject for research. (A) Subject that is overdone should not be normally chosen, for it will be a difficult task to throw any new light in such a case. (B) Controversial subject should not become the choice of an average researcher. (C) To narrow or too vague problems should be avoided. The subject selected for research should be familiar and feasible so that the related research

55

material or sources of research are within ones reach. Even the it is quite difficult to supply definitive ideas concerning how a researcher should obtain ideas for his research. (D) The importance of the subject, the qualifications and the training of a researcher, the cost involved, at time factor are few other criteria that must also be considered in selecting a problem. (E) The selection of a problem must be preceded by a preliminary study. This may not be necessary. (F) When the problem requires the conduct of a research closely similar to one that has already been done. But when the field of inquiry is relatively new and does not have available a set of well-developed techniques, a brief feasibility study must always be undertaken. Research Design : The formidable problem that follows the task of defining the research problem that follows the task of defining the research problem is the preparation of the design of the research project, popularly known as the research design. A research design is the arrangement of conditions for collection and analysis of data is a manner that aims to combine relevance to the research purpose with economy in procedure.

56

Features of a Good Design : A good design is often characterized by adjectives like flexible, appropriate, efficient and economical and so on. Generally, the design which minimizes bias and maximizes the reliability of the data collected and analyzed is considered error is supposed to be the best design in many in best investigations. A research design appropriate for a particular research problem, usually involves the consideration of the following factors : The means of obtaining information. The availability and skills of the researcher and his staff, if any. The objective of the problem to be studied. The availability of time and money for the research work.

Developing a Research plan : Research plan must contain the following items :1. 2. 3. 4. Research objective should be clearly stated in a line or two which tells exactly what it is that the researcher expects to do. The problem to be studied by researcher must be explicitly stated so that one may know what information is to be obtained for solving the problem. Each major concept which researcher wants to measure should be defined in operational terms in context of the research project. The plan should contain the method to be used in solving the problem. An overall description of the approach to be adopted is usually given and assumption, if any of the concerning method to be used are clearly mentioned in the research plan. 5. The plan must also state the details of the techniques to be adopted. For instance, if interviews method is too used, an account of the nature of the contemplated interviews procedure should be given. Similarly, if test are to be given, the conditions under which they are to be administered should

57

be specified along with the nature of instruments to be used. If public records are to be consulted as sources of data, the fact should be recorded in the research plan. Procedure for quantifying data should also be written about in all details. 6. A clear mention of the population to be studied should be made. If the study happens based, the research plan should state sampling plane i.e. how the samples is to be identifying the sample should be such that generalization from the sample to be original population is feasible. 7. The plan must also contain the method to be used in processing the data. Statistical and other methods to be left until the data have been collected. This part of the plan may be reviewed by experts in the field for they can often suggest changes that result in substantial saving of time and feasible. 8. Result of pilot test, if any, should be reported. Time and cost budgets for the research project should also be prepared and laid down in the plan itself. Sampling Design :Census and Sample Survey : All items in any field of inquiry constitute a Universe or Population. A population complete enumeration of all in the population is known as a census inquiry. Steps in Sampling Design : (1) Type of Universe : The first step in developing any sample design is to clearly define the set of objects, called technically called the Universe, to be studied. The universe can be finite or infinite. In finite universe the numbers of items is certain, but in case of an infinite universe the number of items is infinite. 58

(2)

Sample Unit : The decision has to be taken concerning a sampling unit before selecting

sample. Sampling unit may be a geographical one such as state, district, village etc. It may be a social unit as family, club, school etc. or it may be an individual. (3) Source List : It is also known as sampling frame from which sample is to be drawn. It contains the name of a universe. It is extremely important for the source list to be as representative of the population as possible. (4) Size of Sample : This refers to the number of items to be selected from the universe to constitute a sample. This is a major problem before a researcher. The size of sample should neither be excessively large, nor too small. It should be optimum cost too dictates the size of sample that we can draw. As such, budgetary constraint must invariably be taken into consideration when we decide the sample size. (5) Parameters of Interest : For instance, we may be interested in estimating the proportion of person with some characteristic in the population of in knowing some average or the other measure concerning the population. There may also be important subgroups in the population about whom we should like to make estimates. All this has a strong impact upon the sample design we would accept. (6) Budgetary Constraint :

59

Cost considerations, from practical point of view, have a major impact upon decisions relating to not only the size of a non-probability sample. (7) Sample Procedure : Finally, the researcher must decide the type of sample he will use. There are several sample designs (explained in the pages that follows) out of which the researcher must select that design which, for a given sample size and for a given cast, has smaller sampling error.

60

61

Awareness about life Insurance Policy

Yes No 60% 40%

40%

60%

62

Priority while taking any policy

For Risk Cover For Secured Returns For Investment For Tax benefits 23% 28% 31% 18%

40%

60%

63

On What basis you decide the Insurance Company for Investment

Company Image Range of Policies Past performance 45% 15% 40%

40%

45%

15%

64

Do you think that Private Insurance Companies are better alternative for Investment
Yes No 60% 40%

40%

60%

65

Do you agree that Private Sector Insurance Company have better services the public sector Insurance Company

Fully agree Some what agree Don't agree

45% 15% 40%

20%

50% 30%

66

Does your present Insurance Company give product offering according your specific Insurance need?

Yes No

80% 20%

20%

80%

67

Are you satisfied with the service provided by your Present Insurance company
Fully satisfied Some what satisfied Partial dissatisfied Not satisfied 35% 50% 10% 5%

10%

5% 35%

50%

68

Most Appealing Company for Investment

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 38% 34% 20% 5%

8% 20% 38%

34%

69

Most Executed Company for easy mode of payment

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 42% 33% 13% 12%

12% 13% 42%

33%

70

Most expected Company for affordable premium

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 40% 38% 17% 5%

17%

5% 40%

38%

71

Major Player in Good Return on Maturity

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 40% 30% 20% 10%

10% 20% 40%

30%

72

Most Appealing Company for Children Plans

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 45% 35% 25% 5%

5% 23% 40%

32%

73

Most Appealing Company for Money Back Policy

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 35% 35% 20% 10%

10% 20% 35%

35%

74

Major Player in Better Services

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 35% 35% 20% 10%

10% 20% 35%

35%

75

Which Company Leads in Better Loan Service

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 38% 40% 15% 7%

7% 15% 38%

40%

76

Major Player in wide Variety of Polices

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 41% 37% 15% 7%

7% 15% 41%

37%

77

Most Appealing Company for save money

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 30% 30% 30% 10%

10% 30%

30% 30%

78

Most Appealing Company for Endourment Policy

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 35% 38% 20% 7%

7% 20% 35%

38%

79

Most Appealing Company for Pension Plan

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 45% 35% 15% 5%

15%

5% 45%

35%

80

Most Acceptable Company

HDFC SLIC ICICI Prudential Bajaj Allianz Birla Sun Life 38% 35% 22% 5%

5% 22% 38%

35%

81

82

Questionnaire

Name : Address :

___________________ ___________________

Phone No. : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

(1)

Age :

(a) Below 30 (b) 31 to 40 (c) 41 to 50 (d) 51 to Above

(2)

Income :

(a) Below 10,000 (b) 100,000 to 20,000 (c) 20,000 to 30,000 (d) 30,000 to Above

(3)

Occupation :

(a) Government Service (b) Private Limited (c) Business man (individual / Firm) (d) Pvt. Ltd. Firm (e) Limited Firm

(4)

Are you aware of the financial services provided by HDFC Bank : (a) Yes (b) No

83

(5)

Where do you know about HDFC Car Loan ? (a) T. V. Advertising (b) Words of Mouth (c) Reference Groups (d) Hoardings (e) Others

(6)

What you think about the document procedure of HDFC Car Loan ? (a) Simple (b) Normal (c) Tedious

(7)

Are you satisfied with the terms and conditions required by HDFC Car (a) High Satisfied (b) Satisfied (c) Average (d) Dissatisfied

Loan ?

(8)

Did you get amount of loaning as much you applied ? (a) Yes (b) No

(9)

Are you satisfied with interest rates ? (a) High Satisfied (b) Satisfied (c) Average (d) Dissatisfied

84

(10) Your deviation towards after receiving services (a) Excellent (b) Adequate (c) Moderate (d) Inadequate (e) Poor (11) According to your perception which bank provide best facilities and after sale services (a) ICICI (b) HDFC (c) SBI (d) Others (12) Do you know foreclosure facilities provided by HDFC Bank ? (a) Yes (b) No

85

86

FINDINGS
Today the HDFC has become the pioneer in Car Finance in India. Consumers are aware by HDFC Car Loan Scheme. Schemes of HDFC are according to Customer requirement. All rules and document processor are very simple and easy to complete for the customers. Customer perception & attitude is positive directly towards the HDFC Ltd. at Bareilly City. HDFC is also diversified in Housing Loan, Education Loan, Personal Loan, Two Wheeler Loan etc. and is provide a large number of services to the customers. For Car Loan HDFC Bank Ltd. is the most popular company is compression of all other private Car Finance Companies. HDFC Bank Ltd. has the lowest interest rates on Car Finance Scheme as compression to all other Car Companies or Bank in the Market.

87

88

RECOMMENDATION
First and Foremost important things that there must be regular feedback. Taking by the consumers about HDFC Car Loan. HDFC should focus on small cities to increase the market share. Image of the HDFC in small terms and cities is not so good as compression to ICICI so HDFC also focus to create the awareness. Document is more difficult in compression of other companies so documentation should be according the customer demand. After the filling the application form by the customer the investigation process has taken to must time because of this customer fall not well so HDFC should increase of in this case of services. Some of the customers are not satisfied with the sanctioning fees according to them it was high as compare to other companies so HDFC again revise the sanction fees. After providing the loan some of the customer was not satisfied with the after sakes service of the HDFC Bank Ltd. should maintain thereafter-sales service to take the customers in confidence. Consumer believes towards the HDFC in major cities attractiveness but as compare to the minor cities. The HDFC Bank Ltd. Should adopt surrogate advertising to create awareness about the facility services provided by it. HDFC Bank Ltd. should be close contact with the competitors strategy and changes in the product facilities must be done regularly to fight the competitors brand.

89

90

LIMITATION

No investor like to give the data of his real income and investment per annum. People do not like to give time for filling such type of questionnaire. A customer does not give the real data and would not divulge any information at all.

91

92

Bibilography

(1)

Website : www.HDFC.Com

(2)

Reports : HDEC Annual Report HDFC Car Loan Policy Report

(3)

Book : Research Methodology by C. R. Kothari

93

OBJECTIVES

In earlier times, in the general insurance business marketers could understand consumer through the experience of selling products to them. But the growth in the size of the companies and the competition, managers have to rely on research to ensure greater customer satisfaction .

In brief the objectives of this project are following: To study Customer Behavior. To Determine the awareness level of the target customers. To Determine the satisfaction level of the customers. To Determine the probability of converting customers from other Insurance companies to HDFC Bank. To maximize Retention & Rollover Business. To make customers aware about the product portfolio.

94