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Introduction to Indian Banking Industry :-

The banking scenario in India has already gained all the momentum, with the domesticand international banks gathering pace. The focus of all banks in India has shifted theirapproach to 'cost', determined by revenue minus profit. This means that all the resources

should be used efficiently to better the productivity and ensure a win-win situation. Tosurvive in the long run, it is essential to focus on cost saving. Previously, banks focusedon the 'revenue' model which is equal to cost plus profit. Post the banking reforms, banksshifted their approach to the 'profit' model, which meant that banks aimed at higher profitmaximizationThe Indian banks are hopeful of becoming a global brand as they are the major source offinancial sector revenue and profit growth. The financial services penetration in Indiacontinues to be healthy, thus the banking industry is also not far behind. As a result ofthis, the profit for the Indian banking industry will surely surge ahead. The profit pool ofthe Indian banking industry is probable to augment from US$ 4.8 billion in 2005 to US$20 billion in 2010 and further to US$ 40 billion by 2015. This growth and expansion pace

would be driven by the chunk of middle class population. The increase in the number ofprivate banks, the domestic credit market of India is estimated to grow from US$ 0.4trillion in 2004 to US$ 23 trillion by 2050. Third largest banking hub of the globe by2040 - is that vision too far away?

Introduction to HDFC Bank :-

Business focus

HDFC Bank deals with three key business segments. - Wholesale Banking Services,

Retail Banking Services, Treasury. It has entered the banking consortia of over 50corporates for providing working capital finance, trade services, corporate finance and

merchant banking. It is also providing sophisticated product structures in areas of foreign

exchange and derivatives, money markets and debt trading and equity research.

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1725 branches

spread in 780 cities across India. All branches are linked on an online real-time basis.

Customers in over 500 locations are also serviced through Telephone Banking. The Bank

has a presence in all major industrial and commercial centres across the country. Being a

clearing/settlement bank to various leading stock exchanges, the Bank has branches in thecentres where the NSE/BSE have a strong and active member base.

The Bank also has 5,016 networked ATMs across these cities. Moreover, HDFC Bank's

ATM network can be accessed by all domestic and international Visa/MasterCard, Visa

Electron/Maestro, Plus/Cirrus and American Express Credit/Charge cardholders.

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Wholesale banking services

blue-chip manufacturing companies in the Indian corp to small & mid-sized corporates

and agri-based businesses. For these customers, the Bank provides a wide range of

commercial and transactional banking services, including working capital finance, trade

services, transactional services, cash management, etc. The bank is also a leading

provider of for its to corporate customers, mutual funds, stock exchange members and

banks.

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 customers through the growing branch network, as well as through

alternative delivery channels like ATMs, Phone Banking, NetBanking and Mobile

Banking. 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, Bill

Payments, etc.

Treasury

Within this business, the bank has three main product areas - Foreign Exchange and

Derivatives, Local Currency Money Market & Debt Securities, and Equities. These

services are provided through the bank's Treasury team. To comply with statutory reserverequirements, 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.

Distribution network

HDFC Bank is headquartered in Mumbai. The Bank has an network of 1725 branches

spread in 780 cities across India. All branches are linked on an online real-time basis.

Customers in over 500 locations are also serviced through Telephone Banking. The Bank

has a presence in all major industrial and commercial centres across the country. Being aclearing/settlement bank to various leading stock exchanges, the Bank has branches in the

centres where the NSE/BSE have a strong and active member base.The Bank also has

5,016 networked ATMs across these cities.

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Introduction to the Concept :-

A home loan or a mortgage can be simply described as the money taken out in order to

purchase a home. Now we are going to discuss some basic concepts of a home loan or amortgage so that the first time home buyer can have a clear idea about the terms andconditions of a mortgage loan.Mortgage is a kind of loan, which is secured by real property through the presence oflegal documents, which evidence the existence of the loan. Very few individuals haveenough cash to purchase a home. So, most of the people prefer to take out mortgage loansfor financing their homes.Two basic types of mortgage loans are Fixed Rate Mortgage (FRM) and Adjustable RateMortgage (ARM).Fixed rate mortgage (FRM): In case of an FRM, the rate of interest remains fixed forthe life or the term of the loan. Usually, the term stretches from 15 to 30 years.

Adjustable rate mortgage (ARM): In an ARM, the interest rate remains fixed for acertain time span. Then, the interest gets adjusted according to the market indices.There are some other classifications of a mortgage loan, such as, balloon mortgage, homeequity loan, jumbo mortgage, reverse mortgage, etc.

Objective of the study :-1. To analyze the customers perception about the housing loan .2. To assess which is most influencing factor for the customer while taking housing

loan .

Limitation of the study :-1. Only HDFC bank is being focused due to time & cot constraints .

Scope :- For this study all the branches of HDFC bank in jaipur are beingconcentrated .To conduct this study customers visiting the banks ,consultancies firmsare being focused .

Review of literature :- We got the idea about research methods & what is theconcept of analyzing the data from the bookBusinessResearch Methods written by

Alan Bryman & Emma Bell & another bookBusiness Research Methods written byDonald R Cooper & Pamela S Schindler .

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Data sources :-

1. Secondary Sources :- Internet , Magazines , CNBC news channel ,2. Primary Sources:- Customers visiting the HDFC bank for taking home loan ,

Sampling :-The method of study will be non probability sampling. Sampling will be done on theconvenience basis. Sample size will be of 50 people .

Analysis of data :-1. Survey : A questionnaire will be used to identify the factors affecting candidates

while taking loan .2 Secondary data analysis :- For this purpose previous studies will be refered .

Report preparation :- This report will be submitted to various branches ofthe HDFC bank & consultancies firms on which study research has been conducted .

Budget and duration of the Research :- Budget of conducting thisresearch will be approximately Rs.25000 & the duration for this will be 5 to 6months .

Bibliography :-

Books:-

Cooper D. & Schindler P.,2006 Edition, Business Research Methods, New Delhi,Tata McGraw-Hill Publishing company

Bryman A. & Bell E.,2008 Edition , Business Research Methods, Noida, GopsonsPaper Ltd.

Websites :-www.interest.comwww.homeloansdebt.info

http://www.interest.com/http://www.homeloansdebt.info/http://www.interest.com/http://www.homeloansdebt.info/

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Analysis of Customers Perceptions with Home Loans with

Reference to HDFC Bank

Submitted for Internal Assignment (Business Research)

Submitted By:

Students Name:-

Shruti Sharma

Yamnini Sharma

Yashashawi Badolia

Jyotsana Tyagi

PGDM10-12

Month -Janauary

2011