Customer Perception on SIB Housing Loan

PROJECT REPORT ON CUSTOMER PERCEPTION ON SOUTH INDIAN BANKS HOUSING LOAN

Submitted in Partial Fulfillment for the Award of the Degree of Bachelor in Business Administration 2011-2012

Under the Guidance of: Mr.Gaurav Aggrawal (Assistant Professor)

Submitted By: Shubham Gupta 06214701809

Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini, Delhi 110086

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Customer Perception on SIB Housing Loan

DECLARATION

This is to certify that I have completed the Summer Project titled Customer Perception on South Indian Banks Housing Loan under the guidance of Mr. Gaurav Aggrawal in partial fulfillment of the requirement for the award of Degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi. This is an original piece of work & I have not submitted it earlier elsewhere.

Date: Place:

Signature: Name: Enrollment No.:

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Customer Perception on SIB Housing Loan

CERTIFICATE FROM THE INSTITUTE GUIDE

This is to certify that the summer project titled Customer perceptions on SIB Housing loan is an academic work done by Shubham Gupta submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor of Business Administration at Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by him/her in the project has not been submitted earlier.

Signature :

Name of the Faculty :

Designation :

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Customer Perception on SIB Housing Loan TABLE OF CONTENTS CHAPTERS PARTICULARS PAGE NO.

Chapter-1

Introduction of the project

Chapter-2 Chapter-3

Research methodology Data analysis and Interpretation

Chapter- 4

Findings

Chapter-5

Conclusion

Chapter-6

Suggestions

Bibliography

Annexture

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Customer Perception on SIB Housing Loan

CHAPT ER: I INTR ODUCTION

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Customer Perception on SIB Housing Loan INTRODUCTION TO LOAN A loan is a type of debt. Loan entails the redistribution of financial assets over time, between the lender and the borrower. The borrower initially receive an amount of money from the lender, which he has to pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A loan is of the annuity type if the amount paid periodically (for paying off and interest together) is fixed. A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Legally, a loan is a contractual promise between two parties where one party, the creditor, agrees to provide a sum of money to a debtor, who promises to return the money to the creditor either in one lump sum or in parts over a fixed period in time. This agreement may include providing additional payments of rental charges on the funds advanced to the debtor for the time the funds are in the hands of the debtor (interest).

TYPES OF LOANS
SECURED A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security a lien on the title to the house until

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Customer Perception on SIB Housing Loan the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. In some instances, a loan taken out to purchase a new or used car may be secured by the car; in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. A type of loan especially used in limited partnership agreements is the recourse note. A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk. A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan. This is considered a secured non-recourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven. UNSECURED Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages: credit card debt personal loans bank overdrafts credit facilities or lines of credit corporate bonds M aharaja Agrasen Institute Of Management Studies Page 7

Customer Perception on SIB Housing Loan The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974. ABUSES IN LENDING Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorized, it could be considered a loan shark. Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organizations of lending at usurious interest rates and making money out of frivolous "extra charges". Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender. INDIAN BANKING SYSTEM Banks and institutional management in the country are under going momentous change. India is one of the fastest growing economies in the world. Banking dates back to 1786, the first bank established in India, then the nationalization of banks in 1969 and recently the liberalization of the same since 1991. Indian banking is the lifeline of the nation. Its network over 62,500 offices is spread across the length and breadth of the country, servicing nearly 40 crores depositors. Financing diverse needs of more than 6 crores entrepreneur customers providing a nation wide framework for payment clearing and settlements and vital sectors of economy like agriculture , industry, trade and commerce Banks play an important role in the growth of GDP. According to revised estimates released by the Central Statistical Organization (CSO) in May 2006, real GDP accelerated from 7.5 per cent in 2006-07 to 9.6 percent, an 18 year high during 2006-07. M aharaja Agrasen Institute Of Management Studies Page 8

Customer Perception on SIB Housing Loan

Banks plays very important role in the economic development of every nation. They have control over a large part of the supply of money in circulation. A strong banking sector is, therefore, vital for growth, creation of jobs, generation of wealth, eradication of poverty, entrepreneurial activity and increasing the Gross Domestic Product (GDP), all necessary factors for a country to emerge as a developed one. Banks are the main stimulus of the economic progress of a country, because, the economic development highly depends upon the extent of mobilization of resources, investment and on the operational efficiency of the various segments of the economy. The Reserve Bank of India (RBI), as the Central Bank of the country, is at the head of this group. RBI is the central bank of the country since 1934. It regulates, controls credit, issue licenses and functions as banker of all banks and the government. In general the Indian Financial System consists of Commercial Banks, Development Banks, Co-operative Banks and Specialized financial institutions. INDIGENOUS BANKING IN INDIA: During independence, India had an indigenous banking system with a centuries old tradition. This system had developed the hundi, a financial instrument still in use that is similar to the commercial bills of Western Europe. Hundis were used to finance local trade as well as trade between port towns and inland Centres of production. Indigenous bankers combined banking with other activities such as the goldsmiths, merchants, and shippers. They usually belonged to certain castes or communities, such as the Multanis, Marwaris and Chettiars, and they differed in the extent to which they relied on their own resources, rather than deposits and other funds for their lending. Indigenous bankers often endorsed hundis issued by traders and sometimes provided personal guarantee for loans from commercial banks. Such bankers were collectively called as shroffs. The main moneylenders were Sowkars (who lent to farmers by their own resources or funds borrowed from Chettiars and other indigenous bankers) and the Pathans (who lent mainly to poor). M aharaja Agrasen Institute Of Management Studies Page 9

Customer Perception on SIB Housing Loan

INDIAN FINANCIAL SYSTEM: The ancient Indigenous banking system gave raise to the Financial System in India. The Financial System consists of many institutions, instruments and markets. Financial institutions range from pawnshops and moneylenders to banks, pension funds, insurance companies, brokerage houses, investment trusts and stock exchange. The Indian financial system comprises of an impressive network of banks, other financial and investment institutions, offering wide range of products and services, which together function in a fairly developed capital and money markets. As such, financial system has come to occupy an important role in the process of economic development. The economic development of a country depends on its financial structure. In the long run, the larger the proportion of financial assets to real assets, the greater the scope of economic growth. Investment is a pre-condition of economic growth. The primary role of any financial institution is to act as a conduit for the transfer of financial resources from net savers to borrowers i.e., from those who spend less than they earn to those who earn less than what they spend. THE STUCTURE OF BANKING SYSTEM: The structure of banking system is determined by economic and legal. The development of the economy and the spread of banking habit calls for increasing banking services. The demand for these banking services affects the banks structure and organization. National objectives and aspirations result in government regulations, which have a profound influence on the banking structure. According to the IBA Bulletin, the banks in India are classified in to six major categories are Public sector Banks, Private sector Banks, Foreign Banks, State Co- operative Banks, District Co-operative Banks and Primary Co-operative Banks. Vasanth Desai (2006) from his book titled as Banks and institutional Management classified the structure of financial institutions in India in to three major M aharaja Agrasen Institute Of Management Studies Page 10

Customer Perception on SIB Housing Loan sectors : 1. Commercial Banks 2. Co-operative Societies

COMMERCIAL BANKS

Commercial Banks are the oldest, biggest and fastest growing financial intermediaries in India. They are also the most important depositories of public sector and the most important disbursers of finance. Commercial Banking in India is a unique system similar to that exists nowhere in the world. The commercial banking structure in India consists of: Scheduled Commercial Banks and Unscheduled Banks. Scheduled commercial Banks constitute those banks, which have been included in the Second Schedule of Reserve Bank of India (RBI) Act, 1934. RBI in turn includes only those banks in this schedule which satisfy the criteria laid down vide section 42(6)(a) of the act. CLASSIFICATION OF INDIAN COMMERCIAL BANKS:

Indian commercial banks can be broadly classified into two categories. They are i) Public Sector Banks ii) Private Sector Banks A. PUBLIC SECTOR BANKS: Public sector Banks refer to commercial banks, which are owned by the Central Government either directly or through the RBI. They are also referred to as National Banks. They are established by special Acts passed by the Parliament. Among the Public Sector Banks in India, United Bank of India is one of the 14 major banks, which were nationalized on July 19, 1969. Its predecessor, in the Public Sector Banks, the United Bank of India Ltd., was formed in 1950 with the amalgamation of four banks viz. Comilla Banking Corporation Ltd. (1914), Bengal Central Bank Ltd. M aharaja Agrasen Institute Of Management Studies Page 11

Customer Perception on SIB Housing Loan (1918), Comilla Union Bank Ltd. (1922) and Hooghly Bank Ltd. (1932).

Public sector banks can be further classified in to two categories. They are 1. State Bank of India 2. Associates banks 3. 14 Nationalized Banks 4. 6 Nationalized Banks 5. Regional rural banks B.PRIVATE SECTOR BANKS: Private banking in India was practiced since the beginning of banking system in India. The first private bank in India to be set up in Private Sector Banks in India was IndusInd Bank. It is one of the fast growing Private Sector Bank in India. IDBI ranks the tenth largest development bank in the world as Private Banks in India and has promoted a world class institutions in India. The first Private Bank in India to receive an in principle approval from the Reserve Bank of India was Housing Development Finance Corporation Limited, to set up a bank in the private sector banks in India as part of the RBI's liberalization of the Indian Banking Industry. It was incorporated in Commercial Bank in January 1995. The private sector can be further classified as follows Other private banks New-sophisticated private banks; Co-operative banks included in second schedule; Foreign banks in India, representative offices One non-schedule banks There are 33 private banks in India and some of the private banks are M aharaja Agrasen Institute Of Management Studies Page 12 August 1994 as HDFC Bank Limited with registered office in Mumbai and commenced operations as Scheduled

Customer Perception on SIB Housing Loan Axis Bank HDFC Bank

IDBI Bank ICICI Bank ING Vysya Karnataka Bank limited Kotak Mahindra Bank Yes Bank South Indian Bank CO-OPERATIVE SOCIETIES: The Co-Operative banking sector has been developed in the country to supplant the village moneylender, the predominant source of rural finance, as the terms on which he made finance available have generally been detrimental to the development of Indian agriculture.

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Customer Perception on SIB Housing Loan

Co mpany PROFILE Date of Establishment Revenue Market Cap Corporate Address 1908 548.557 ( USD in Millions ) 23279.33694 ( Rs. in Millions ) S I B House ,T B Road ,Mission QuartersThrissur-680001, Kerala www.southindianbank.com Chairperson - Amitabha Guha MD - V A Joseph Directors - A S Narayanamoorthy, A S Narayanan, Abraham Thariyan, Amitabha Guha, Amitabha Guha Sarkar, C J Jose, Cheryan Varkey, Davy K Manavalan, G A Shenai, H Suresh Prabhu, John Joseph, Jose Alapatt, K S Krishnan, K Thomas Jacob, M Valsan, Mathew L Chakola, Mohan Alapatt, Mohan E Alapatt, N J Kurian, Paul Chalissery, V A Joseph Bank Private South Indian Bank (SIB) was incorporated in 1908 by a group of enterprising men at Thrissur. The bank started with an intention to induce the habit of savings in the community on one hand and to free the business community from the clutches of greedy money lenders on the other by providing need based credit at reasonable rates of interest. Milestone It became the first private ba Financials Total Income - Rs. 26427.106 Million ( year ending Mar 2011) Net Profit - Rs. 2925.641 Million ( year ending Mar 2011) K S Krishnan

Management Details

Business Operation Background

Company Secretary Bankers M aharaja Agrasen

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Customer Perception on SIB Housing Loan Auditors Deloittee Haskins & Sells

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Customer Perception on SIB Housing Loan Company History

South Indian Bank (SIB) was incorporated in 1908 by a group of enterprising men at
Thrissur. The bank started with an intention to induce the habit of savings in the community on one hand and to free the business community from the clutches of greedy money lenders on the other by providing need based credit at reasonable rates of interest. One of the earliest banks in South India, "South Indian Bank" came into being during the Swadeshi movement. The establishment of the bank was the fulfillment of the dreams of a group of enterprising men who joined together at Thrissur, a major town (now known as the Cultural Capital of Kerala), in the erstwhile State of Cochin to provide for the people a safe, efficient and service oriented repository of savings of the community on one hand and to free the business community from the clutches of greedy money lenders on the other by providing need based credit at reasonable rates of interest. Translating the vision of the founding fathers as its corporate mission, the bank has during its long sojourn been able to project itself as a vibrant, fast growing, service oriented and trend setting financial intermediary.
Milestone

The FIRST among the private sector banks in Kerala to become a scheduled bank in 1946 under the RBI Act. The FIRST bank in the private sector in India to open a Currency Chest on behalf of the RBI in April 1992. The FIRST private sector bank to open a NRI branch in November 1992. The FIRST bank in the private sector to start an Industrial Finance Branch in March 1993. The FIRST among the private sector banks in Kerala to open an "Overseas Branch" to cater exclusively to the export and import business in June 1993. The FIRST bank in Kerala to develop an in-house, a fully integrated branch automation software in addition to the in-house partial automation solution operational since 1992. The FIRST Kerala based bank to implement Core Banking System. The THIRD largest branch network among Private Sector banks, in India, with all its branches under Core banking System. Today, SBIL has a network of total 644 branches, 566 ATMs and 3 extension counters. M aharaja Agrasen Institute Of Management Studies Page 16

Customer Perception on SIB Housing Loan Products and services Personal Banking-Under this bank offers wide range of personal banking products and services such as deposit, saving, loans, internet banking, mobile banking, demat services, credit card, debit card, etc. The bank offers mutual funds products of various funds houses such as ICICI Prudential AMC, Franklin Templeton, TATA Mutual Fund, Sundaram BNP Paribas, UTI Mutual Funds, Reliance Mutual Funds, HSBC Investments, HDFC Mutual Fund, Fidelity Fund Management, Principal Mutual Funds, Fortis Investments, Birla Sun Life Asset Management Company and DSP BlackRock Mutual Funds. NRI banking- SIB also caters its banking products and services to NRI customers such as deposit, car loans, remittances, investment schemes, insurance are amongst others. Corporate banking- It provides wide range of products and services to corporates. SIB offers working capital finance, project finance, structured finance etc.

Outlook The banking sector in India is one of the most dominant sector of the financial system. The regulatory system of Indian banks is rated at par with Japan and Singapore. South Indian Bank plans to expand so as to explore the untapped areas.

Awards South Indian Bank bagged Special Award from IDRBT for Excellence in Banking Technology. The bank received best Asian Banking Web Site award from Asian Banking & Finance Magazine.

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Customer Perception on SIB Housing Loan South Indian Bank bags two prestigious D&B Bank Awards South Indian Bank received two Awards for asset quality and priority sector lending in the Dun &Bradstreet Banking awards 2010-11.South Indian Bank is the only old generation private sector bank in India to win this prestigious accolade. This is the second time the award has been received by the bank for Asset Quality.

DR.V.A.JOSEPH , MD & CEO S OUTH INDIAN BANK RECEIVING THE DUN & BRADSTREET AWARD PRIVATE SECTOR BANK IN ASSET Q UALITY AT MUMBAI.

FOR THE

BEST

South Indian Bank Bags Technology Excellence Award 2010 from IDRBT

South Indian Bank has won the Technology Excellence Award 2010 from IDRBT (Institute for Development and Research in Banking Technology) - the technical arm of the Reserve Bank of India. This award was presented to our Bank as a national level recognition to the excellent contribution made in the area of IT Implementation and Management in the small bank Category. Bank had earlier bagged similar award in 2006 in the area of Information Security policy and practices. Competing against the peer level Banks in India in this category, this award from IDRBT recognizes Banks sustained efforts in deployment of IT, most efficiently

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Customer Perception on SIB Housing Loan

MD & CEO, DR. V.A J OSEPH RECEIVES THE TECHNOLOGY EXCELLENCE AWARD FOR "IT IMPLEMENTATION AND MANAGEMENT" FROM SHRI. A NAND S INHA , DEPUTY GOVERNOR OF R ESERVE BANK OF INDIA AT A FUNCTION ORGANISED BY IDRBT AT H YDERABAD ON 04.08.2011 IN THE PRESENCE OF M R . G P ADMANABHAN , E XECUTIVE D IRECTOR , R ESERVE BANK OF INDIA AND MR. B.SAMBAMOORTHY , DIRECTOR, IDRBT

BUSINESSWORLD INDIAs BEST BANK 2010 AWARD to SOUTH INDIAN BANK

SOUTH I NDIAN BANK HAS BAGGED THE BUSINESSWORLD I NDIAS BEST BANK 2010 AWARD. THE MANAGING DIRECTOR & CHIEF EXECUTIVE OFFICER OF SOUTH I NDIAN BANK, DR. V.A.J OSEPH, RECEIVES THE AWARD FROM SRI. PRANAB MUKHERJEE, THE H ON . UNION MINISTER FOR FINANCE, IN A COLOURFUL FUNCTION HELD AT MUMBAI ON 23RD DECEMBER 2010.

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Customer Perception on SIB Housing Loan

SOUTH INDIAN BANK BAGGED THE BEST WEB SITE AWARD FROM KMA

South Indian Bank has bagged the best web site award from Kerala Management Association. On 4th February 2011, Our Executive Director Sri. Abraham Thariyan and Deputy General Manager(DICT) Sri. P J Jacob received the award from Sri. Jayaraj, Addl. Chief Secretary of Karnataka at a glittering function in Kochi. There were totally 54 nominations for consideration of the Best Web Site from various business verticals and this award is a great recognition for our Bank. In fact, this is the second award we are receiving for our web site, the first one being the best Asian Banking Web Site award from Asian Banking & Finance Magazine, Singapore in January-2009.

OUR EXECUTIVE DIRECTOR SRI . ABRAHAM THARIYAN AND DEPUTY GENERAL MANAGER (DICT) SRI . P J JACOB RECEIVE THE BEST WEBSITE AWARD FROM S RI . J AYARAJ, A DDL . C HIEF S ECRETARY OF K ARNATAKA .

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Customer Perception on SIB Housing Loan BEST BANK AWARD TO SOUTH INDIAN BANK

CATEGORY

MD & CEO, DR.V.A.JOSEPH RECEIVES THE AWARD FOR THE B EST BANK IN THE OLD GENERATION BANKS - FE INDIA S BEST BANK AWARDS FROM HON: UNION F INANCE MINISTER MR.PRANAB MUKHERJEE . FINANCIAL EXPRESS AWARDS FOR INDIA S BEST BANKS WERE SELECTED BY ERNST &YOUNG. THE FUNCTION WAS ORGANIZED AT THE T AJ M AHAL H OTEL , M UMBAI ON 25 TH J ULY , 2009.
AMONG ALL PRIVATE SECTOR BANKS IN

AWARD FOR THE BEST BANK IN ASSET QUALITY

INDIA

SECTOR BANKS IN

MD & CEO DR.V A JOSEPH RECEIVES THE AWARD FOR THE BEST BANK IN ASSET QUALITY AMONG ALL PRIVATE I NDIA FROM MR.J AMES E T HOMPSON , GBS CHAIRMAN & CHIEF EXECUTIVE, CROWN GROUP OF COMPANIES ON 18 TH F EBRUARY 2009 AT M UMBAI . A CCOMPANIED BY D R .M ANOJ V AISH , P RESEDISENT & CEO, DUN&BRADSTREET, I NDIA.

Outlook M aharaja Agrasen

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Customer Perception on SIB Housing Loan The banking sector in India is one of the most dominant sector of the financial system. The regulatory system of Indian banks is rated at par with Japan and Singapore. South Indian Bank plans to expand so as to explore the untapped areas. Key Executives

S.No 1

Name Amitabha Guha

Designation Chairman

V A Joseph

Managing Director

Jose Alapatt

Director

Paul Chalissery

Director

Mathew L Chakola

Director

N J Kurian

Director

Mohan Alapatt

Director

K Thomas Jacob

Director

H Suresh Prabhu

Director

10

Abraham Thariyan

Executive Director

11

Cheryan Varkey

Executive Director

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Customer Perception on SIB Housing Loan Competitors

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Sales Current Change Company (Rs.Million Price (%) ) 199282.1 HDFC Bank 471.15 -0.22 2 Customer Perception on SIB Housing Loan ICICI Bank Axis Bank Kotak Mahindra Bank Indusind Bank Yes Bank Centurion Bk of Punj Federal Bank ING Vysya Bank 259740.5 3 151548.0 6 43035.58 35893.57 40417.47 12685.30 40520.28 26940.64 887.20 1076.95 442.50 251.60 278.90 41.40 366.40 292.25 374.75 799.00 212.10 20.60 80.25 46.55 96.95 104.80 1.60 0.18 0.17 2.30 0.31 0.00 -1.09 -0.15 0.69 1.52 1.80 -0.24 0.69 1.09 0.99 0.34

P/E Ratio 26.22 18.73 12.37 36.99 18.38 12.37 52.93 10.42 12.74 8.97 5.94 0.00 7.35 0.91 8.26 8.78 9.99

Market Cap. (Rs.Million)

52-Week High/Low

1101094.01 520/396 1022361.48 1277/814 443936.90 326776.44 117445.95 97353.92 78932.68 62671.80 43764.72 40181.07 38733.76 34222.35 23279.34 19260.00 18932.57 18246.91 10220.71 1608/992 530/333 309/181 388/234 43/41 501/326 444/283 508/346 938/695 214/207 30/17 135/71 54/36 193/90 143/85

Karur Vysya Bank 22176.95 J&K Bank Bank of Raj South Indian Bank Standard Chartered City Union Bank Karnataka Bank Lakshmi Vilas Bank 37131.32 13594.89 24460.1 7 56748.90 12184.08 23708.47 10648.36

M aharaja Agrasen Devp Credit Bank 5362.62 Institute Of Management Studies 9210.33 Page77/39 46.00 -1.08 27.77 24 Dhanalakshmi Bank 9064.18 78.45 -0.06 28.51 6678.94 213/67

Customer Perception on SIB Housing Loan

Product Sales Value(Rs.Millio % of STO n)

Product Name

Year

Sales Month Quantity

Interest/Discount on 2010 advances/ Bills

03

0.00

15186.25

78.45

Income on Investments

2010

03

0.00

3780.66

19.53

Interest on balances with Reserve Bank of 2010 India and other interbank funds

03

0.00

390.30

2.02

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Customer Perception on SIB Housing Loan

BALANCESHEET - SOUTH INDIAN BANK LTD

PARTICULARS LIABILITIES SHARE CAPITAL RESERVES & SURPLUS NET WORTH SECURED LOANS UNSECURED LOANS TOTAL LIABILITIES ASSETS GROSS BLOCK (-) ACC. DEPRECIATION NET BLOCK CAPITAL WORK INVESTMENTS. INVENTORIES SUNDRY DEBTORS CASH AND BANK LOANS AND ADVANCES TOTAL CURRENT ASSETS CURRENT LIABILITIES PROVISIONS TOTAL CURRENT LIABILITIES
IN

MAR'11

MAR'10

MAR'09

MAR'08

MAR'07

12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS 12 MONTHS 113.01 1,582.65 1,847.28 290.35 29,721.08 113.01 113.01 90.41 1,051.81 1,160.98 27.59 70.41 653.56 723.96 32.51

1,354.21 1,172.59 1,485.29 1,304.00 330.96 257.01

23,011.5 18,092.33 15,156.12 12,239.21 2 24,827.7 31,858.70 19,653.35 16,344.69 12,995.68 8

501.38 144.54 205.22 PROGRESS. 0.00 8,923.77 0.00 0.00 2,466.13 21,073.48

274.26 121.72 134.47 0.00

241.28 104.96 117.91 0.00

203.82 91.07 93.99 0.00 4,572.22 0.00 0.00 1,702.65

168.47 78.88 89.59 0.00 3,430.13 0.00 0.00 1,945.47

7,155.61 6,075.20 0.00 0.00 0.00 0.00

1,987.67 2,035.86

16,238.2 12,136.14 10,702.30 8,187.38 2 18,225.8 23,539.60 14,172.00 12,404.95 10,132.86 9 961.52 0.00 961.52 706.27 0.00 706.27 730.18 0.00 730.18 745.24 0.00 745.24 656.90 0.00 656.90

NET CURRENT ASSETS 22,578.09 MISC. EXPENSES TOTAL ASSETS M aharaja (A+B+C+D+E)Agrasen 0.00

17,519.6 13,441.82 11,659.71 9,475.95 3 0.00 0.00 0.00 0.00

24,827.7 31,858.70 Of Management Studies 19,653.35 16,344.69 Page 12,995.68 Institute 8

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Customer Perception on SIB Housing Loan

CHAPT ER: II RESERCH DESIGN

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Customer Perception on SIB Housing Loan

STATEMENT OF THE PROBLEM:

Study on loans and working capital of South Indian bank in Noida. It is important to know the evolution of the workplace to understand as to why and how things are being done today.

OBJECTIVES OF THE STUDY:

1. To study the role of SBI in Indian banking sector. 2. To study the regulations followed by SBI while providing the loans and advances. 3. To study different types of the loans and advances made by SBI. 4. To evaluate operational performance of loans and advances made by bank. 5. To make suggestions on the basis of the analysis.

SCOPE OF THE STUDY:

Customers are facing many problems in terms of availing loan and therefore SBI is providing assistance to the development of them as it plays a vital role in development of Indian economy. It is essential to study the norms and regulations of the SBI in lending money to the public.

METHODOLOGY:
This data will be collected from the bank and will be analyzed to draw appropriate conclusion. The data is collected on the basis of Primary as well as Secondary sources.

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Customer Perception on SIB Housing Loan

Primary data The primary data is collected through direct communication with the branch manager and staff members of bank Secondary data The sources of secondary data are published materials such as Company records, textbooks, Internet, Magazines and annual reports of SBI.

LIMITATIONS OF THE STUDY

The bank may not reveal certain financial details due to authenticity of the bank. The outcome of the study depends entirely on the fairness of information supplied by the bank. A study will be conducted within specified time period of 8 weeks.

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Customer Perception on SIB Housing Loan

CHAPT ER-III ANALYSIS & INTREPRETATION OF DATA

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Customer Perception on SIB Housing Loan

SIB HOMELOANS
FOR RESIDENT INDIANS

FOR NON RESIDENT INDIANS

FOR SENIOR CITIZENS - SPECIAL SCHEME FOR PENSIONERS

SIB-SHIELD - INSURANCE COVERAGE FOR YOUR HOME LOAN AT ATTRACTIVE SINGLE

PREMIUM

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Customer Perception on SIB Housing Loan FOR RESIDENT INDIANS

Target Group : Individual or individual jointly with spouse (Group of individuals not permitted) Purpose of the loan: Purchase of Flat or House Construction of Flat for own use or House Purchasing land & constructing a House For major repair, renovation, extension or improvement of flat or house. Takeover of Housing loans from other banks & reputed housing finance companies. Reimbursement of investments already made by the borrower provided the investment has taken place within one year.

Quantum of loan : Maximum Rs.1.00 crore; For renovations/additions/major repairs/ improvements etc. : Maximum Rs.10 lacs

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Customer Perception on SIB Housing Loan Rate of Interest :

HOME LOANS SL NO: CATEGORY INTEREST RATE

HOME LOAN SCHEME (R ESIDENT/ NON RESIDENT) (UPTO 30 LAKHS BR + 3.40% & UPTO 5 YRS)

HOME LOAN SCHEME (R ESIDENT/ NON RESIDENT) (UPTO 30 LAKHS BR + 3.65% & ABOVE 5 YRS )

HOME LOAN SCHEME (R ESIDENT/ NON RESIDENT) (ABOVE 30 LAKHS & UPTO 5 YRS))

BR + 3.90%

HOME LOAN SCHEME (R ESIDENT/ NON RESIDENT) (ABOVE 30 LAKHS & ABOVE 5 YRS)

BR + 4.15%

HOME LOAN SCHEME (S ENIOR CITIZEN ) UPTO 5 YRS )

(UPTO 30 LAKHS &

BR + 2.90%

HOME LOAN SCHEME (S ENIOR CITIZEN ) ABOVE 5 YRS )

(UPTO 30 LAKHS &

BR + 3.15%

HOME LOAN SCHEME (S ENIOR CITIZEN ) & UPTO 5 YRS)

(ABOVE 30 LAKHS BR + 3.40%

HOME LOAN SCHEME (S ENIOR CITIZEN ) & ABOVE 5 YRS )

(ABOVE 30 LAKHS BR + 3.65%

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Customer Perception on SIB Housing Loan Primary security : Land and building under Equitable Mortgage Minimum Margin: construction of new house/ purchase of land and construction of new house / purchase of ready built house/ flat : 25% of estimated cost 30% of cost for purchase of old house/ renovation of existing house Repayment ( including holiday) : Minimum 5 years & Maximum 20 years by Equated Monthly Instalments(EMIs). Holiday / Moratorium for repayment Ready built house or flat : Max. 3 months New construction : Max. 12 months Holiday period interest: Can be funded or serviced at the option of the borrower as decided at the time of sanction. Upfront fee : one time upfront fee 0.50% of the loan amount . Early Closing Fee : If closed from own sources after 2 years: : Nil If closed from own sources before 2 years: 1% of the prepaid amount. If closed through take over by other banks : 2% of the pre-paid amount Penal Interest : 2% of the defaulted amount for the defaulted period. The scheme details are furnished in brief only. For more details please contact any of the branches nearest to you. *All loans are subject to the discretion of the bank and subject to such conditions as may be stipulated by the Bank. Interest rates are subject to change without notice

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Customer Perception on SIB Housing Loan FOR NON RESIDENT INDIANS

Rate of interest and terms and conditions similar to that of domestic home loans subject to the following exceptions : Maximum Repayment Period : 10 years

Eligible loan amount : 50 times average monthly remittance made by the borrower from abroad for credit to his / her NRE account with any bank in India, for a minimum period of 12 months, excluding bulk remittances, if any. If necessary , remittances made by the NRI directly to his / her spouses domestic account (excluding bulk remittances) for the previous 12 months also shall be taken into account to reckon the loan amount Minimum project cost : Rs.10 lacs Property may be in the name of a NRI or jointly with another NRI /resident spouse. Margin should be brought in by way of foreign inward remittance through normal banking channels or debit to NRE, FCNR, NRO account of the NRI. Repayment of the loan shall be by way of foreign inward remittance through normal banking channels, debit of NRE, FCNR, NRO or the rental income from the house financed by us. Close relatives of the borrowers in India as defined under Section 6 of the Companies Act 1956 ( given below) also are permitted to repay the loans through their bank accounts directly to the housing loan accounts of the NRIs

The list of relatives as defined in the section is given below.

Members of a Hindu undivided family Husband and wife Related to one another in the manner indicated below: i)Father, ii) Mother (including step-mother), iii) Son (including step-son) iv) Son's wife, v) Daughter (including step-daughter), vi) Father's father vii) Father's mother, viii) Mother's mother, ix) Mother's father, x) Son's son, xi) Son's son's wife, xii) Son's daughter, xiii) Son's daughter's husband, xiv) Daughter's husband, xv) Daughter's son, xvi) Daughter's son's wife, xvii) Daughter's daughter, xviii) Daughter's daughter's husband xix) Brother's wife, xx) Brother (including step-brother), xxi) Sister (including stepsister), xxii)Sister's husband. Institute Of Management Studies Page 35

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Customer Perception on SIB Housing Loan As the employment abroad may not be considered as permanent especially in gulf countries, comfort available from other sources of income in India may also be taken into account while sanctioning the loan. Once the NRI customer returns to India for permanent settlement as declared by him/her, the repayment may be permitted from local sources also.

Copy of the employment contract, salary certificate / pay slip, current work permit, copy of identity card, copy of stamped visa, relevant pages of passport, name and full address of the employer / sponsor abroad, contact number of the NRI applicant, name, address and contact phone number of a close relative in India for local contacts etc. may be collected. The number of housing loans ( both domestic and NRI) to a person can go up to a maximum of two only , subject to eligibility. The total amount sanctioned to an individual [ balance outstanding in the first housing loan plus the new (second) housing loan ] should not exceed the individual branch discretionary power for housing loans. All branches can entertain NRI home loans ( except service branches and those specifically prohibited).

FOR SENIOR CITIZENS - SPECIAL SCHEME FOR PENSIONERS

Target Group : Those who are drawing pension from State/ Central Government / banks/ Insurance Companies / other reputed companies and completed the age of 55 years. Purpose : For construction of house in own plot / purchase of land and construction of house / purchase of ready built house with plot / purchase of flat / repairs and / or renovation of existing houses owned. Rate of Interest : Same as for the esident Indians Quantum of loan : Maximum quantum of loan limited to Rs. 25.00 lacs or 50 times of monthly pension drawn at the time of application, which ever is less, subject to the condition that EMI should not exceed 50% of the monthly pension . M aharaja Agrasen Institute Of Management Studies Page 36

Customer Perception on SIB Housing Loan Minimum Margin : construction of new house/ purchase of land and construction of new house / purchase of ready built house / flat : 25% of estimated cost 30% of cost for purchase of old house/ renovation of existing house Pension account to be maintained with our bank or post-dated cheques for 12 EMIs (initially) drawn on the pension account with the concerned bank to be submitted on the date of execution and thereafter every 12 months. Guarantor : If spouse is alive he/she should join the documents.

Security :

Prime : Residential property being financed Collateral : (any one among the following is mandatory)

1. Insurance policy ( whole life) for value of loan or 2. Lien on banks own deposits for full value of loan or 3. Combination of insurance policy / banks own deposit for equal value of loan

Repayment period : Maximum repayment period 15 years including repayment holiday or till the borrower attains the age of 75 years , which ever is earlier, through Equated Monthly Instalments(EMIs) . Holiday period interest : Can be funded or spot serviced Upfront Fee : One-time upfront fee of 0.25% of the loan amount . Premature closure charges : NIL , provided the account runs with our bank for a minimum period of one year after completion of disbursement . Otherwise @1% of balance M aharaja Agrasen Institute Of Management Studies Page 37

Customer Perception on SIB Housing Loan outstanding. The scheme details are furnished in brief only. For more details please contact any of the branches. *All loans are subject to the discretion of the bank and subject to such conditions as may be stipulated by the Bank. Interest rates are subject to change without notice

SIB-SHIELD - INSURANCE COVERAGE

PREMIUM

FOR YOUR

HOME LOAN AT ATTRACTIVE SINGLE

Life Insurance cover under SIB-Shield- Product features & Claim proceedures SIB introduces SIB-Shield, which can provide life insurance cover to you while you avail our unique housing loan products. We have tied up with Kotak Mahindra Old Mutual Life insurance Co. Ltd. (KLI) to provide the complete security to your family in the event of any unforeseen event happening to your life. In case of any of these happenings, insurance company will pay the outstanding principal balance of your loan a/c as per the original schedule. Features of SIB-Shield Cost of insurance cover is extremely competitive as it is a group insurance policy for long term. No medical test required for most of the customers. Only a one page DOGH (Declaration Of Good Health) form to be signed by the customer. For life insurance cover more than DOGH limits, the borrower does not have to bear the expenses for medical check up. Customized insurance cover: Ensures that the borrower pays only for the cover that he/she needs to protect the loan outstanding (for reducing covers). Peace of mind: Eliminates fear of any loan recovery/Asset repossession on the unfortunate death of the borrower during the tenure of the loan. Hassle free single premium payment which will be funded by the bank. In case of foreclosure, proportionate premium would be refunded. Liberal underwriting standards as against individual policies. Simplified claims procedure. Claims procedure:

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Customer Perception on SIB Housing Loan In the event of death, the legal heirs of the insured have to intimate the same to the bank within one month. The claim form has to be duly filled and to be submitted to the bank and the bank will then inform KLI about the claim raised with the support of necessary documents. KLI may call for additional information and documents required to satisfy itself as to the validity of a claim. Once documentation is completed at the end of KLI settlement will be done within 15 days. The claim amount will be credited to the loan a/c of the deceased borrower. Short amount if any in the loan a/c has to be paid to the bank by the legal heirs/nominees. Similarly excess amount will be paid to the legal heirs/nominees of the deceased.

Contact Details: 1. Group Operations Kotak Mahindra Old Mutual Life Insurance Ltd., 8th Floor, Godrej Coliseum Behind Everard Nagar, Sion (East) Mumbai 400 022 Phones | (D) 64511556| (B) 66215234 Fax | 66215252 2. The South Indian Bank Ltd Marketing Dept. Head Office Thrissur 680001 E-mail: ho2013@sib.co.in

DISCLAIMER: "The South Indian Bank Limited (SIB)" at any time is not liable to pay to the customer the amount claimed. It is the sole responsibility of the Kotak Mahindra Old Mutual Life Insurance Company Ltd. (KLI) who had insured the borrower accepting the insurance premiums in advance to settle the claim on time. SIB is helping the customers to facilitate the claims procedure. You may please complete all the procedures prescribed by the insurance company for timely settlement of the claims if any. For more details please contact your nearest SIB Branch Or Call our Toll Free 1800-843-1800.

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ANALYSIS OF THE DATA COLLECTED THROUGH THE QUESTIONNAIRE

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Customer Perception on SIB Housing Loan I have analyzed the data collected through the questionnaire and have classified the data into tables. The given below BAR graph shows the response of 100 customer.

TABLE-I The given below Bar chart shows the Services expected from South Indian bank

SERVICES EXPECTED FROM SIB

QUICK RESPONSE 38 GOOD CUSTOMER RELATION 37 EXTRA FACILITY FOR EXISTING CUSTOMER 25

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E T AF IL YF X R AC IT OR E IS ING CUS O R X T T ME GO C T OD US OME R R L ION E AT RS E PONS E

1 0

2 0

3 0

4 0

Interpretation: Out of 100 customers, 38 of them said that they expect QUICK RESPONSE from the SIB bank, 37 said they expect GOOD CUSTOMER RELATION and 25 customers said that they expect EXTRA FACILITY FOR EXISTING CUSTOMER.

TABLE-II

The given below Bar chart shows the CUSTOMER WANTS TO TAKE ANOTHER LOAN FROM SIB CUSTOMER WANTS TO TAKE ANOTHER LOAN FROM SIB

YES NO
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68% 32%
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Customer Perception on SIB Housing Loan 70

60 50 40 30 20 10 0 1 2 Y N

Interpretation: Out of 100 customers, 68 would like to take another loan from SIB but 32 would not like to take another loan from SIB.

TABLE-III

The given Bar graph shows THE INFLUENCING FACTOR FOR TAKING LOAN FROM SIB

INFLUENCING FACTOR FOR LOAN FROM SIB ADVERTISEMENT FRIENDS EASY AVAILABILITY OF LOAN TRUST M aharaja Agrasen 26 20 22 32 Page 42

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Customer Perception on SIB Housing Loan

35 30 25 20 15 10 5 0 A DVER EMENT TIS F IEN R DS E YA AS VAIL IL O L A AB ITY F O N T RUS T

Interpretation:

Out of 100 customers, 32 said trust, 26 said advertisement, 22 said easy availability and rest 20 said friends and relatives about the influence factor to taking loan from SBI.

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Customer Perception on SIB Housing Loan

TABLE-IV The given Bar chart shows the People received home loan :

People received home loan Yes No 64 36

70 60 50 40 30 20 10 0 People received hom loan e Y es NO

Interpretation: Out of 100 customers 64 peoples said that they have received home loan , 36 people said that they havent received home loan in processing procedure of availing home loan.

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Customer Perception on SIB Housing Loan

TABLE-V The given Bar chart shows the co-operation of the bank employees in processing and helping in documentation:

Co-operation of the bank employees in processing and helping in documentation Excellent Good Average 21 55 24

60 50 40 30 20 10 0 c o-opera tion of employeesin proces ing s a doc enta nd um tion. E ellent xc Good Avera e g

Interpretation: Out of 100 customers 55 peoples said good, 21 said excellent and 24 peoples said average about co-operation of employees in processing and documentation.

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Customer Perception on SIB Housing Loan

TABLE-VI The given below Pie chart shows the SATISFACTION LEVEL OF CUSTOMER AFTER AVAILING LOAN

Satisfaction Level of customer after availing loan Satisfied Normal Dissatisfied 42% 34% 24%

S fied atis Norm al D s fied is atis

INTERPRETATION Out of 100 customers 42 were found SATISFIED after taking loan from SIB, 34 Customer were NORMALY satisfied from SIB and 24 were DISSATISFIED because of interest charged, and behavior of the employee.

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Customer Perception on SIB Housing Loan TABLE-VII The given below Bar chart shows the Time period customer prefer for availing home loan

Time period customer prefer for availing home loan

People opting for 10 year People opting for 15 year People opting for 20 year

21 45 34

5 0 4 0 3 0 2 0 1 0 0 Tim period custom e er prefer for availingloan 10year 1 year 5 20year 1 year 0 1 year 5 2 year 0

Interpretation: Out of 100 customers 21 peoples opted for 10 years of loan , 45 said that they would be opting for 15 years of loan and 34 peoples opted for 20 years of loan about time-period of availing home loan.

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Customer Perception on SIB Housing Loan

TABLE-VIII The given below Bar chart shows the Customer interested in different loans Customer interested in Home loan in comparison with different loans Educational loan Housing loan Vehicle loan Gold loan 12 32 41 15

5 0 4 0 3 0 2 0 1 0 0 C tom interes us er ted Education in different loa ns loan H ing V ous ehicle loan Gold loan loan

E ducation loa n H ousingloan Vehicle loan Goldloa n

Interpretation: Out of 100 customers 12 peoples opted for Educational loan , 32 wanted Housing loan , 41 peoples opted for Vehicle loan, and 15 people opted for Gold loan in the different types of loan according to different types of interests.

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Customer Perception on SIB Housing Loan

TABLE-IX The given below Bar chart shows the Customer interested in fixed or floating rate of interest in home loan

Customer interested in fixed or floating rate of interest in home loan Fixed rate of interest Floating rate of interest 26 74

80 70 60 50 40 30 20 10 0 F ed rate of interes ix t F loatingrate of interes t

Interpretation: Out of 100 customers 26 peoples opted for Fixed rate of interest , and 74 people opted for Floating rate of interest at the time of taking home loan from the bank.

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TABLE-X The given below Bar chart shows the In comparison with other banks how much you will rate SIB out of 10 in fixing suitable EMI In comparison with other banks how much you will rate SIB out of 10 in fixing suitable EMI 0-3 3-5 5-8 8-10 2 22 56 20

6 0 4 0 2 0 0 0-3 bet. 3-5 bet. 5-8 bet. 8-10 0-3 bet. 3-5 bet. 5 -8 bet. 8 -10

Interpretation: Out of 100 customers 2 peoples opted for 0-3 , 22 people opted for 3-5, 56 people opted for 5-8 , and 20 people opted for 8-10 in the comparison with other banks to rate SIB out of 10 in fixing suitable EMI.

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Customer Perception on SIB Housing Loan

TABLE-XI The given below Pie chart shows the Positive aspects for the success of SIB in Home loan sector Positive aspects for the success of SIB in Home loan sector Sales promotion and brand Customer friendly home loan schemes Easy sanctioning of home loan Lower interest rate Lower EMI 3 12 33 24 28

S ales prom otion and brand C tom friendly hom loan us er e s chem es Eas s y antioning of hom loan e L ower Intres rate t L ower EMI

Interpretation: Out of 100 customers 3 people opted for Sales promotion and brand , 12 people opted for customer friendly home loan scheme , 33 people opted for easy sanctioning of home loan , 24 people opted for lower interest rate , and 28 people opted for lower EMI in the Positive aspects for the success of SIB in home loan sector.

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Customer Perception on SIB Housing Loan TABLE-XII

The given below Pie chart shows the Lagging area with other banks

Lagging Area

Confined mainly in metro cities and urban areas Non-Effective advertisement Delay in processing

29 51 20

confined m ainly in m etro citiesand urban ares non-effective advertis m e ent D elay in proce s s ing

Interpretation: Out of 100 customers 29 people opted for Confined mainly in metro cities and urban areas , 51 people opted for non-effective advertisement, 20 people opted for delay in processing when asked for lagging areas with other banks.

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Customer Perception on SIB Housing Loan SWOT ANALYSIS STRENGTHS

Brand name of South Indian Bank (SIB) is established over the ears. Single window clearance - a single employee provides wide variety of facilities to the borrower, minimizing the hassle of wastage of time. Appraisal techniques are used. Specialized software's are big assets. There is no penalty for prepayment from borrowers own service.

WEAKNESSES

High interest rates as compared to other housing finance institutions. Top management takes large amount of time to approve high value seeking loan borrowers. No publicity. No marketing managers work, only through dsa's (direct sales agent). People are not aware of wide variety of schemes offered by the company; tend to think the company as only providing home loans. There is the shortage of staff at almost all branches which does not ensure easy addressable of the customers problems. Delegation of authority and responsibility is not proper.

OPPORTUNITIES

Special rates of interest are offered during exhibitions. Product life cycle is to be reviewed The growing category of the builders ensure that good, high value& qualitative projects, providing them home loans with the new and innovative schemes can lead to over all development of the company.

THREATS The competition in market is very high due to the private players. The rates of interest of other players are quite low. Innovative schemes with home loan from other players. The processing process is quite slow which leads to low housing finance. A fraud case involving 32 cases worth Rs.3 crores at the one branch of SIB Housing Finance Limited in year 2002 leads decreasing brand name.

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Customer Perception on SIB Housing Loan

CHAPTER III FINDINGS

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Customer Perception on SIB Housing Loan

FINDINGS

The study is carried out to know the kinds of loans and advances provided by SIB. After finishing the analysis and observation of the collected data the following findings were known:

1. SIB HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SIB's commitment to Environment protection. 2. Interest rate after three years may be Fixed or Floating as per the borrowers choice made at the time of sanction. If floating rate option is chosen, then the rate will be 2.75% below SBAR.

3. Interest rate subject to change without notice. 4. SIB offering complete transparency to the customers. 5. The accessblility of the SIB loans is that, it can be easily accessbile. 6. The customers perception towards the service of SIB is good. 7. After seeing the procedure of bank to sanction a loan, I can say that it is very safe and secured because to sanction a loan, it requires lot of approval from different levels so that risk of NPAs & debt become lesser.

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Customer Perception on SIB Housing Loan

CHAPTER IV CONCLUSION

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CONCLUSION

This project went through the deep study of Home loan of South Indian Bank. It is satisfying thing to know that SIB i s growing towards a Service of Excellence. All the achievements can be given a broader sky view by applying and considering the findings and suggestions given in this project. Efforts have been made to know all spectrum of possbilities through which South Indian ba nk can satisfy their customers more and understandingly. The availability of computerized software much of the technicalities of the assessment have been largely simplified. The efforts by SBI constantly update its evaluation procedures, indicate its high level of professionalism and also explain why it is in a leading position amongst the nationalized banks. The project can be had with management of borrowing firms to get better idea about the business, its viability and also the capacity of management to tackle exceptional situations.

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Customer Perception on SIB Housing Loan

CHAPTER V SUGGESTIONS

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Customer Perception on SIB Housing Loan SUGGESTIONS

SIB should provide much more customer service, should try and reduce interest rates to make its products more competitive and also give its customers an option of short term repayment period. SIB must try and introduce cash back policy on the processing fee/documentation fee of the short-term loan. To speed up loan appraisal, embracement loan if asked from the customer should be issued fast and interest charged on loans should be less. To introduce cash back policy in shopping center. Banks should improve the operational efficiency to improve the processing speed of the loans and reduce the time to provide loans. As SIB have large network it should introduce as many as schemes possbile. South Indian Bank should start one HINDI WEBSITE for convenience of its customers and it should start toll free number so that customer can frequently take a step while applying for home loan. To get advantage over other banks, it can consider of down payment and 100% finance in some deserving cases. To further increase in market share SIB should provide loan even to retired person on the basis of their income profile.

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Customer Perception on SIB Housing Loan

BIBLIOGRAPHY

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BIBLIOGRAPHY

BOOKS: Varshney P.N , Banking Law & Practice 2009 Edition, Published by Sultan Chand & Sons , Delhi 2009 , Pg no.209-213 Vasanth Desai, Banks and Institutional Management First edition, published by Himalaya Publishing House, Mumbai 2006 , Pg no. 113-115 Sundaram K.P.M , Money and Banking in Indian Trade Third edition, Published by Sultan Chand & Sons , Delhi 2008 , Pg no. 45-49 L. M. Bhole, Financial institutions and Markets, first edition, Tata McGraw Hill Publications company Ltd., 2004 , Pg no.73-75 Tannan M.L, Tannans Banking Law and Practice in India , Twenty second edition ,Vikas publications , 2010 , Pg no. 449-450 Indian Institute of banking and finance, Home loan councelling E.B.C Publications , 2007 , Pg no.118-129

WEBSITES:
http://www.southindianbank.com/content/viewContent.aspx? linkIdLvl2=12&linkId=88&sec=1http://rbidocs.rbi.org.in/rdocs/notification/P DFs/71235.pdf http://www.southindianbank.com/UserFiles/Forms/HOUSING%20LOAN %20AGREEMENT.pdf http://www.southindianbank.com/content/viewContent.aspx? linkIdLvl2=12&linkId=506&sec= http://www.southindianbank.com/content/viewContent.aspx? linkIdLvl2=12&linkId=553&sec=

BULLETIN: M aharaja Agrasen

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Customer Perception on SIB Housing Loan Annual reports of SIB Annual reports of RBI and IBA (Indian Banks Association) Bulletin.

ANEXURE

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Customer Perception on SIB Housing Loan QUESTIONNAIRE

Dear Sir/ Madam, As part of my BBA( B a n k i n g a n d i n s u r a n c e ) curriculum, I, Shubham Gupta, am conducting a market research regarding the study of Home loan for which I need your personal views regarding banking products & services in shape of a questionnaire designed by me. The data being collected are solely for academic purpose. I request you to kindly extend your co-operation. 1) Name: 3) Age group :( plz tick) A)18-30 yrs. B)31-40 yrs. C)41-50 yrs. D)51-60 yrs. 4) Annual Income (in Rs.):A) 60000-200000 d) Above 1000000 b) 200000-400000 c) 400000-1000000 2) Profession:

5) What kind of service or services do you expect from SIB? A) Quick Response C) Extra Facility for Existing Customer B) Good Customer Relation

6) What influence you at taking loan from SIB? A) Advertisement C) Easy availability loan B) Friend/Relative D) Trust

7)What time-period would you prefer for housing loan ? A)10 year B) 15 year C) 20 year

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Customer Perception on SIB Housing Loan 8) How do you find the cooperation of the bank employees in processing and helping you with documentation? A) Excellent B) Good C) Average

9) What do you think for the positive aspects for the success of SIB in Home loan sector? A)Sales promotion and brand C)Easy sanctioning of home loan E)Lower EMI 10) Would you like to take another loan from SIB in future? A) Yes B) No B) Customer friendly Home loan scheme D) Lower interest rate

11) Your overall level of satisfaction with SlB: A) Satisfied B) Normal C) Dissatisfied

12) What do you think is SIB lagging area with other banks ? A) Confined mainly in metro cities and urban areas B) Non-Effective in metro cities and urban areas C) Delay in Processing 13) Did you receive Home loan ? A) Yes B) No

14) In comparison with other bank how much will rate SIB out of 10 in fixing suitable EMI? A)0-3 B)3-5 C)5-8 D)8-10

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Customer Perception on SIB Housing Loan 15) Are you interested in fixed or floating rate interest in home loan ? A)Fixed rate of Interest B)Floating rate of Interest 16)Other than Housing loan , In which loan you are interested ? A) Educational loan B) Gold Loan C) Housing loan D) Vehicle loan

(Thanks)

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