Professional Documents
Culture Documents
TECHNOOGY
BY
RAVI CHANDRA
ROLL.NO:-AIMTDM1113240
SESSION:2011-13
CONTENT
Page no.
Acknowledgement………………………………………………………………...04
Declaration………………….…………………………………………………….05
Executive Summary………………………………………………………………06
Chapter 1…………………………………………………………………………..07
Company Profile
Overview…………………………………………………………………...08
History……………………………………………………………………...09
Competitors…………………………………...…………………………....11
Strength/Opportunity & weakness/Threats………...……………………...14
Different Products……………………...………….……………………….15
Awards & Recognitions by BOM…….………………………….…….......16
Chapter 2…………………………………………………………………………..17
Project Details
Chapter 3……………………………………….……………………………….30
Research Methodology
Chapter 4 ………………………………………………………………………...31
Analysis of data
Chapter 5………………………………………………………………………....35
Findings of the project
Findings……………………………………………………………………44
Suggestion & Recommendation……………………………………...….. 46
Conclusion…………………………………………………………………48
2
Annexure
(Questionnaire)………….…………………………………………………..49
Bibliography………………………………………………………………….…...54
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Acknowledgement
I also thank all my friends who have more or less contributed to the
preparation of this project report. I will be always indebted to them.
Thanking You
4
DECLARATION
5
Executive Summary
In the growing global competition, the productivity of any business concern depends
upon the behavioral aspect of consumers. This topic deals with the customer’s
perception towards the Advance Product of BOM and SBI at Allahabad. This project
report contains 5 different chapters. The report begins with the introduction to
company, its area of operation, its organization structure, its achievements, etc.
The second chapter is the introduction to the Advance Product which gives a brief idea
regarding ADVANCE PRODUCT of BOM MAIN BRANCH, ALLAHABAD where
the project is undertaken. It also contains the objectives and limitations of the project.
The fifth chapter deals with the findings, suggestion & conclusion part which is very
much important after analysis is made.
As we know that only analysis and conclusion is not the end of a research, so in the
sixth chapter the recommendation part is covered which are made after a depth study
of the analysis part of the project.
In each of the five chapters as described above, every chapter has been scheduled in a
manner so as to enable the reader to appreciate the contents easily. The report is
supported by figures and data wherever necessary with a view to assist the reader in
developing a clear cut understanding of the topic.
I hope this report will be extremely useful for those it is meant. Constructive and
healthy suggestions for improvements of the report will be great fully appreciated.
Ravi Chandra
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Company Profile
Overview
History
Competitors
Strength/Opportunity & Weakness/Threats
Different Products
Awards & Recognitions by BOM
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OVERVIEW
The Bank attained autonomous status in 1998. It helps in giving more and more
services with simplified procedures without intervention of Government
Bank is the convener of State level Bankers committee. Bank offers Depository
services and Demat facilities at 131 branches. Bank has a tie up with LIC of India and
United India Insurance company for sale of Insurance policies. All the branches of the
Bank are fully computerized.All Employees , posted in South Ex branch are doing
excellent work for Bank.
It's logo is made of the following items 1.the DEEPMAL-with it's many lights rising
to greater heights 2.the PILLAR-our institution symbolising strength 3.the diyas- our
branches symbolising services 4.the three M's symbolising --mobilisation of money --
modernisation of methods and --motivation of staff
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HISTORY
Bank of Maharashtra is an Indian bank based in the city of Pune. The bank was
established in the year 1935 with an initial authorized capital worth Rs. 10.00 Lacs,
although it became operational in the early phase of the next year. The bank got
nationalized by the Government of India in the year 1969. With a total number of
1421 branches located all over India as of April 2009, the bank claims to have the
largest number of branches within the state of Maharashtra, among all the Public
Sector banks.
1969 - The Company was Incorporated on 19th July. The Bank is a Government of
India undertaking and carries on all types of banking business. The Bank was brought
into existence by an ordinance issued on 19th July, by the Central Government. In
terms of the Ordinance, the undertaking of `The Bank of Maharashtra Ltd.' was
transferred to and vested in the new bank. The ordinance was replaced by the Banking
companies (Acquisition and Transfer of Undertakings) Act, 1969. The Act was
declared null and void by the Supreme Court on 10th February, 1970. An Ordinance
was thereupon promulgated which was latter replaced by the Banking Companies
(Acquisition and Transfer of Undertaking) Act, 1970 which was made effective
retrospectively from 19th July.
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Under the `Lead Bank Scheme' the Bank was allotted 5 districts of Maharashtra, viz.
Pune, Satara, Nasik, Aurangabad (jointly with Central Bank of India) and Thane.
Surveys were carried out in these districts for the identification of growth centres.
1970 - The Bank opened 39 branches in these five `Lead Bank' districts out of the total
of 47 branches opened. The Bank continued to follow the scheme in the subsequent
years and another district was allotted to it.
1976 - In August, the Bank sponsored a regional rural bank under the name `The
Marathwada Gramin Bank Ltd.,' Nanded.
1982 - One more Regional Rural Bank was sponsored on 7th December, under the
name Aurangabad-Jalna Gramin Bank Ltd. In the subsequent years, another RRB
under the Thane Gramin Bank was sponsored by the Bank. These three RRBs together
had 312 branches as at the end of March 1994. 1984 - Rs.12 lakhs contribution by
Government.
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Competitors and other players in the field:-
Andhra Bank
Allahabad Bank
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Punjab National Bank
Bank Of Baroda
Vijaya Bank
ETC:
12
Top Performing Private Sector Banks
HDFC Bank
ICICI Bank
AXIS Bank
Citibank
Standard Chartered
HSBC Bank
American Express
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Strength/ Opportunities:
The growth for BOM in the coming years is likely to be fueled by the following
factors:
• Continued effort to increase low cost deposit would ensure improvement in NIMs
and hence earnings.
• Growing retail & SMEs thrust would lead to higher business growth.
• Strong economic growth would generate higher demand for funds pursuant to higher
corporate demand for credit on account of capacity expansion.
Weakness/ Threats:
The risks that could ensue to BOM in time to come are as under:
• BOM is currently operating at a lowest CAR. Insufficient capital may restrict the
growth prospects of the bank going forward.
• Stiff competition, especially in the retail segment, could impact retail growth of
BOM and hence slowdown in earnings growth.
• Contribution of retail credit to total bank credit stood at 26%. Significant thrust on
growing retail book poses higher credit risk to the bank.
• Slow down in domestic economy would pose a concern over credit off-take thereby
impacting earnings growth.
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DIFFERENT PRODUCTS OF BOM:
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AWARDS & RECOGNITION
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Introduction to Advance Product
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Introduction to Advance Products:
Now a day not all the people have the capacity to fulfill their requirement by their own
earning, that’s why they need help from others. For this so many government &
private sector bank provide them money to fulfill their requirement, that’s call the
Advance Product (loan product) of the bank. All the banks have so many different
types of advance product as per the requirement of the people or customers. In
Allahabad also there are so many banks those provide loan to the people for different
causes.
Home Loan
Educational Loan
Car Loan
Personal Loan
Loan Against Ornaments
Two-Wheelers Loan
Agricultural Loan
Etc.
Now a day a large no. of people are taking loan form different banks. It helps people
to fulfill their need and it really easy to repayment the loan amount with a longer
repayment period.
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BOM Advance Product
Purpose
Purchase/ Construction of House/ Flat
Eligibility
Minimum age 18 years as on the date of sanction
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by
which the loan should be fully repaid.
Availability of sufficient, regular and continuous source of income for servicing the
loan repayment.
Loan Amount
1. Income of your spouse/ your son/ daughter living with you, provided they have a
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steady income and his/ her salary account is maintained with BOM.
2. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is
proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources
Margin:
Purchase/ Construction of a new House/ Flat/ Plot of land: 15% for loans up to
Rs. 1 cr., 20% for loans above Rs. 1 cr.
Repairs/ Renovation of an existing House/ Flat: 15%
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Fixed interest rates
* Fixed rate loans will be subject to: 'force maejure' clause and interest reset at the
end of every two years on the basis of fixed interest rates prevailing then.
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CAR LOAN:
Purpose
A used car / jeep (not more than 5 years old). (Any make or model).
Take over of existing loan from other Bank/Financial institution (Conditions apply)
Eligibility
To avail an BOM Car Loan, you should be :
Salient Features
Loan Amount
There is no upper limit for the amount of a car loan. A maximum loan amount of 2.5
times the net annual income can be sanctioned. If married, your spouse's income could
also be considered provided the spouse becomes a co-borrower in the loan. The loan
amount includes finance for one-time road tax, registration and insurance!
Loan amount for used car is subject to a maximum limit of Rs. 15 lacs.
Type of Loan
1. Term Loan
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2. Overdraft - a) For New vehicles only
b) Minimum loan amount: Rs. 3 lacs.
Documents required
you would need to submit the following documents along with the completed
application form if you are an existing SBI account holder:
Margin
Repayment
You enjoy the longest repayment period in the industry with us.
Repayment period:
For Salaried: Maximum of 84 months
For Self-employed & Professionals: Maximum 60 months
Repayment period for used vehicles :Up to 84 months from the date of original
purchase of the vehicle (subject to maximum tenure as above).
Prepayment Penalty:
Prepayment fee of 2% of the amount of the loan prepaid will be levied subject to
certain conditions
FLOATING RATES:
A. for Term Loans
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EDUCATION LOAN:
A term loan granted to Indian Nationals for pursuing higher education in India or
abroad where admission has been secured.
Eligible Courses
Any other expenses required to complete the course like study tours, project work etc.
Amount of Loan
Interest Rates
(with effect from 1st MAY 2012)
Processing Fees
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Deposit of Rs. 5000/- for education loan for studies abroad which will be
adjusted in the margin money
Repayment Tenure
Repayment will commence one year after completion of course or 6 months after
securing a job, whichever is earlier.
Security
Margin
Documentation Required
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Purpose
The loan will be granted for any legitimate purpose whatsoever (e.g. expenses for
domestic or foreign travel, medical treatment of self or a family member, meeting any
financial liability, such as marriage of son/daughter, defraying educational expenses of
wards, meeting margins for purchase of assets etc.)
Eligibility
You are eligible if you are a Salaried individual of good quality corporate, self
employed engineer, doctor, architect, chartered accountant, MBA with minimum 2
years standing.
Salient Features
Loan Amount
Your personal loan limit would be determined by your income and repayment
capacity.
Minimum: Rs.24,000/- in metro and urban centres
Rs.10, 000/- in rural/semi-urban centres
Maximum: 12 times Net Monthly Income for salaried individuals and pensioners
subject to a ceiling of Rs.10 lacs in all centres
Documents Required
Important documents to be furnished while opening a Personal Loan Account:
Margin
We do not insist on any margin amount.
Interest Rates
Repayment
The loan is repayable in 48 EMI. You are allowed to pay more than the EMI if you
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wish to, without attracting any prepayment penalty.
Security
NIL
Processing Fee
Processing charges are 1-2% of the loan amount. This is amongst the lowest fees in
the industry. Processing fees have to be paid upfront. There are no hidden costs or
other administrative charges.
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MAHAGOLD LOAN:(LOAN AGAINST ORNAMENTS)
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Research methodology
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RESEARCH METHODOLOGY
Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues
involved & conduct situational analysis. The methodology includes the overall
research design, sampling procedure & fieldwork done & finally the analysis
procedure. The methodology used in the study consistent of sample survey using both
primary & secondary data. The primary data has been collected with the help of
questionnaire as well as personal observation book, magazine; journals have been
referred for secondary data. The questionnaire has been drafted & presented by the
researcher himself.
RESEARCH OBJECTIVE:
Summer Internship Project gives a practical exposure and helps in acquiring the on
road skills.
First and foremost objective is to find out the reasons for using of Advance
Product from SBI rather than BOM.
To find out the services that other bank given to their customer.
To generate the leads through the survey.
To find out the difference between the BOM and SBI advance products.
To sort out the prospective leads from the data I have collected through the
survey.
To build the relation ship with the customers and to follow up them, make sure
that they are satisfied with the product.
To get more references from the customers and generate new leads by following
a chain process.
To make the customer aware of the benefits of the product and convince him to
go for BOM Advance Product rather than SBI Advance Products.
RESEARCH PROBLEM:
BOM Main Branch, Allahabad wants to know about the customer’s perception
in differecnce between the advance product provide by SBI & them to the
people.
To find out what kind of services SBI is providing in advance product which
To find out the need of the customer and hence formulate the strategy to level
To find out the need of the customer in Allahabad region and introduce new
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SCOPE OF THE STUDY
Sample Size:
Sample of 2000 people was taken into study, and their data was
collected
Sampling Technique:
Data Collection:
Data Analysis:
After data collection, I’m able to analyze customer’s views, ideas and
opinions related to Advance Products of BOM and SBI and from this, BOM
will come to know the customer requirements.
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Data Interpretation:
As per questionnaire and market surveys I have find out different responses from
different people. According to their responses I analyze the findings and draw certain
remarks.
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Analysis of data
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GRAPHICAL REPRESENTATION OF DATA
SBI 60 % (1200)
ICICI 33 % (660)
BOM 5% (100)
OTHER 2% (40)
TOTAL NO. OF PEOPLE 2000
RESPONSES OF PEOPLE IN %
5% 2%
33%
60%
It has been observed that approximately 60% correspondents are using the service of
SBI for their daily transaction, around 33% of people are using ICICI Bank for their
transaction and only 5% & 2% of people are using BOM & other Bank service
respectively in ALLAHABAD. It also shows that SBI have the highest market
position in Allahabad as per my sample.
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Q2. Are you aware of products & services provided by BOM?
YES 45% (950)
NO 55% (1050)
Total No. of People 2000
YES
45%
NO
55%
From the above data it is clear that most of the customers (around 45%) of Allahabad
have the idea about the product & services of BOM, the rest 55% have the idea about
the product they are using.
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Q3. If yes are you aware of the advance products (Loan segments) of BOM?
YES 42%(840)
NO 68% (1160)
% OF PEOPLE
42%
YES
68%
NO
It is clear that most of the people have the idea about the advance product of BOM.
Almost all the 40% people who have the idea about the advance product are the user
of BOM product & service.
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Q4. Which bank you prefer for taking loans?
85% (1800)
SBI
ICICI 7% (140)
BOM 2% (40)
OTHER 1% (20)
Sales
2% 1%
12%
SBI
ICICI
BOM
85% OTHER
According to my sample size only 2% of people prefer BOM and 85% of people on
SBI for loan product, and rest people prefer,ICICI, or OTHER Bank for loan because
they are working with that bank & it is easier for them to get loan from their bank & it
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easier for them to pay the interest because it is less as compare to other bank because
they are the employee of that bank.
Q5. If you prefer BOM for taking loan than what influence you to take Loan
from BOM?
Most of the people said that they prefer BOM for taking loan because of the
transparency and the lowest interest rate for any kind of loan product. And it is easy to
get loan from BOM as compare to other bank because less paper work is require and
as it is the largest govt. bank in India and having partnership with RBI (Reserve Bank
of India) and other association, it is easier for BOM to give loan to people with a
longer repayment period.
Sales
10%
8%
HOME LOAN
47%
15% EDUCATIONAL LOAN
CAR LOAN
20% PERSONAL LOAN
OTHER
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From the sample size 85% of people are using the BOM loan product. From the 1800
people 47% of people took home loan from BOM. 20% of people took education loan
for their children, 15% of people took car loan from BOM. Some of the customer took
2 type of loan from BOM like both car & educational loan and home & car loan. 10%
of people took personal loan.
Q7. What do you feel about the services providing by BOM in advance product?
Bad 0% (0)
Satisfactory 2% (40)
43%
BAD
SATISFACTORY
55%
GOOD
EXCELLENT
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From this it is clear that the service provide by BOM in its advance product is good in
between the customer. All of them satisfy with the product provide by BOM. 55% of
people said that the service provide by BOM is good & 43% said it is excellent & just
2% of people said that it is satisfactory.
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Most of the people like the attractive interest rate & longer repayment period. It’s
easier for people to repay the whole loan amount with its interest with low interest rate
and with longer repayment period.
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Findings
Suggestion & Recommendation
Conclusion
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PROJECT FINDINGS:
From this project it is found that BOM advance product having the 7th place in
the market at Allahabad whereas SBI is the 1st choice of the people, there is a
great opportunity to compete with SBI & ICICI Bank & to retain its customer
by fulfilling the requirement of customer in BOM advance product.
It has been observed that approximately 12% correspondents are using advance
product of BOM and 88% are not using any type of advance product of BOM in
Allahabad.
All of BOM customers are satisfied with the services provided by the bank.
Many of these customers satisfied with the low interest rate and longer
repayment period of the advance product.
Most of the customers at Allahabad prefer to take loan from SBI.
Approximately 43% of advance product users said that the service of SBI in
advance product is better than any other bank.
A response from customer care is so clear & good.
Many customers have no time to call customer care so that they are not able to
know about the service & features of BOM advance product.
Most customers are shifted from other bank’s advance product to BOM because
of hidden charges, high interest rate, less repayment period.
Government employees are more concern than private employees for advance
product.
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Suggestion & Recommendation
RECOMMENDATIONS:
Customer awareness programme is required so that more people should attract
towards advance product of BOM.
If there are any kind of hidden charges then that must disclose to customer
before giving loan to them.
BOM must take some steps so that customers can get their loan in time. Like
phone verification by customer care that one customer is got their loan on time
or not .It must be before a certain date so necessary steps can be taken.
BOM should more concern about physical verification rather than phone
verification so it will avoid fraud or cheating.
Advance product selling agents must not give any type of wrong information
regarding advance product.
For the better service new offers would be require.
BOM customer care should more concern about the fastest settlement of
customer problems.
Before deducting or charging any monetary charge BOM must consult with
customer.
Agents should be trained, well educated & proper trained to convince the people
about different advance product.
It is the duty of the bank to disclose all the material facts regarding advance
product, like interest charged, repayment period, other types of charges, etc.
Special scheme should be implemented to encourage both customer and agents.
The bank should increase the period for repayment of loan.
BOM should more focus on Retaining existing customers.
BOM must focus on Segmentation based on customer knowledge Product
offering based on customer demand.
BOM must take feedbacks of customers regarding features & services.
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Suggestions given by the consumers at the time of survey:
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Conclusion
From the analysis part it can be conclude that customers have a good respond towards
SBI advance products rather than BOM in Allahabad. SBI is at 1st position having
large number of customers & providing good services to them whereas BOM is at 7th
position.BOM has a very less customer base, so the bank should concentrate on this to
retain these customers and increase more.In my survey the main reason is that the
BOM is the new at Allahabad.So the people has less awareness about the product of
BOM.
In present scenario SBI is the largest advance product issuer in India. Within a very
short period of time the achievement made by BOM is satisfactory as comparing to
SBI or ay other bank. It happens due to employee dedication towards the organization,
fastest growing Indian economy, & brand image.
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Questionnaire
Name - _____________________________________
Occupation-__________________________________
Q. If yes are you aware of the advance products (Loan segments) of BOM?
a) YES
b) NO
Q. If you prefer BOM for taking loan then what influence you to take Loan from
BOM?
________________________________________________________________
_____________________________________________________________________
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_____________________________________________________________________
_____________________________________________________________________
______________________.
Q. What do you feel about the services providing by BOM in advance product?
a) Bad
b) Satisfactory
c) Good
d) Excellent
Q. Which features you like most in Loan segments of BOM(more than one option
can be accepted)?
a) Less paper work
b) Attractive interest rate
c) Transparency
d) Simple & fast processing
e) Flexibility to choose an EMI base loan or an overdraft
f) Longer tenure lone for ease of repayment
g) Specially design product for self employed
h) Any other feature, specify ( _____________ )
Q. Any suggestion you want to give for the betterment of BOM advance product.
_________________________________________________________________________________
_________________________________________________________________________________
_________________________________________________________________________________
________________________________________________________.
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Bibliography:
Text Books:
Solomon, Michael R. (2002), Consumer Behavior: Buying, Having, Being. 5th Ed.
New Jersey: Prentice Hall
Internet:
http://www.moneycontrol.com/company-facts/bankofmah/history/BM05
http://www.bankofmaharashtra.in/credit_fac.asp
http://en.wikipedia.org/wiki/Bank_of_Maharashtra
www.bnet.com
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