A Report on Comparative Study of Home Loan & Customer Satisfaction

[

]

2010

HDFC

CHANDIGARH

TABLE OF CONTENTS

SNO PARTICULARS PAGE NO.

1 EXECUTIVE SUMMARY 5

2 OBJECTIVE OF THE REPORT 6

3 INTRODUCTION 7

4 BACKGROUND

Vision of the organization Vision of HDFC Promoters Organizational goals Organization and management

8-9

5 BOARD OF DIRECTORS 10

6 ABOUT HDFC

Core business Shareholders pattern Balance sheet (liabilities and assets) Continuing growth momentum Sources of mortgage Fund raising

11-16

7 ASSOCIATE COMPANIES

Holdings HDFC bank HDFC AMC HDFC standard life HDFC ERGO HDFC sales HDFC realty

17-23

8 HOME LOAN PRODUCTS 24-25

9 COMPARISON WITH OTHER MARKET PLAYERS

State bank of India ICICI bank AXIS bank IDBI bank

26-32

10 SWOT ANALYSIS 33

11 STUDY ON CUSTOMER SATISFACTION

Customer satisfaction Need for customer satisfaction Objective of study Scope of study Research methodology

34-40

12 ANALYSIS 38-41

13 RELATION BETWEEN VARIOUS PARAMETERS 42-50

14 SPSS ANLYSIS FOR FACTOR 51-54

15 LIMITATIONS 55

16 RECOMMENDATIONS AND SUGESSTIONS 56

17 BIBLIOGRAPHY 57

18 ANNEXURE 58-62

OBJECTIVE OF THE PROJECT

The objective of this research is to analyse the home loans with a view to arrive at the

most popular loan schemes offered by the banks under study and to conclude from the

analysis the best possible schemes which would keep the bank ahead of competition.

Further this study would lead to know about the following:

To have the first hand information on home loan products, sanctioning and disbursement in HDFC ltd.

To compare the performance of HDFC with other market players.

To conduct SWOT analysis of HDFC ltd.

To study the satisfaction level of customers about home loans

INTRODUCTION

Buying a home of one's own is every individual's first stop in life. HDFC LTD have pulled out all the stops to sew together a home loan product that has flexibility as its very foundation. It has created a product that is competitively benchmarked, that is amply affordable and one that is customer-sensitive. Only because when it comes to buying a house, the first thing you need to do is to feel at home with your bank.

There are various opportunities for a young salaried individual to plan their moves ahead of time which will not only lead to wealth creation but will also cater to the demand of their growing family.

To help such individuals various financial institutions work day and to make these people realize their dreams. One of them is HDFC.

We will now look at how these institutions work and what do they do to remain competitive in the market.

Going by the facts we can infer that the demand for reality sector has grown by 7-8%. Though the figures were bit shaky after the subprime crises of the US but the prices are now quite stable which has caused an increase in the demand in this sector.

HDFC brings its home loan policy to one’s doorstep, with over 30 years of experience and a dedicated team of experts with the complete package that meets all the housing finance needs.

BACKGROUND

HDFC was incorporated in 1977 as the first specialized Mortgage Company in India with primary objective of meeting a social need that of promoting the home ownership by providing long term finance to households for meeting their housing needs.

Its services are aimed at individuals as well as companies availing loans for housing purposes. It also provides lease finance to companies and to development authorities for financing infrastructure and other assets along with its property related services.

VISION OF THE ORGANISATION

“HDFC is an organization that strives for excellence, with the twin objectives of enhancing customer satisfaction and shareholder value.”

VISION OF HDFC

To enhance residential housing stock in the country through the provision of housing finance in a systematic and professional manner and to promote home ownership.

To increase the flow of resources to the housing sector by integrating the housing finance sector with the overall domestic financial markets.

PROMOTERS

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

ORGANISATIONAL GOALS

Develop close relationships with individual households.

Maintain its position as the premier housing finance institution in the country.

Transform ideas into viable and creative solutions

Provide consistently high returns to shareholders.

To grow through diversification by leveraging off the existing client base.

ORGANISATION AND MANAGEMENT

HDFC is professionally managed with a board of directors consisting of eminent persons who represents various fields including finance, taxation, construction and urban policy and development. The board primarily focuses on strategy formulation, policy and control designed to deliver increasing value to shareholders.

Senior banking professionals with substantial experience in India and abroad head various businesses and functions and report to the Managing Director. Given the professional expertise of the management team and the overall focus on recruiting and retaining the best talent in the industry, the bank believes that its people are a significant competitive strength.

BOARD OF DIRECTORS

S.No Name Designation

1 Mr.Deepak S ParekhChairman / Chair Person

2 Mr.Shirish B Patel Director3 Mr.D M Satwalekar Director4 Mr.D N Ghosh Director5 Dr.Bimal Jalan Director6 Dr.J J Irani Director7 Mr.B S Mehta Director8 Mr.D M Sukthankar Director9 Mr.N M Munjee Director

10 Dr.Ram S Tarneja Director11 Dr.S A Dave Director

12 Mr.V Srinivasa RanganExecutive Director

13 Mrs.Renu Sud KarnadManaging Director

14 Mr.Keshub Mahindra Vice Chairman

15 Mr.Keki M MistryVice Chairman & CEO

Housing finance is a part of financial service which has emerged strongly due to growth of banking industry and housing finance institution or companies. The housing finance is a type of installment credit which forms the largest single source of housing finance. Under installment credit scheme, the customer repays the loan in equal periodic or monthly installments (EMI). EMI means the amount of monthly payment necessary to amortize the loan with interest within the tenure of loan.

HDFC offers Loans for Homes-for buying or constructing homes, refinancing a home loan availed from another institution or to extend or improve an existing home. HDFC also finances purchase of land approved agencies to help construct a home. HDFC also helps a customer in acquiring a self contained flat in an existing or proposed cooperative society, in an apartment owners’ association or even an independent single family or multifamily bungalow or row house. HDFC Homes Loans have serve 26lakh customers over a period of 29 years.

CORE BUSINESS

BALANCE SHEET OF HDFC LTD (LIABILITIES)

BALANCE SHEET OF HDFC LTD (ASSETS)

CONTINUING GROWTH MOMENTUM OF HDFC LTD.

SOURCES OF MORTGAGE AT HDFC LTD.

FUND RAISING AT HDFC

ASSOCIATE COMPANIES

HOLDINGS

HDFC BANK

HDFC Bank was incorporated in August 1994

Among the first in new generation commercial banks

Registered office in Mumbai, India

Promoted by HDFC, the parent company

IPO in India in 1995

Listed in NSE, BSE, NYSE(ADR)

NETWORK

1416 branches

3570 ATM’s in the country

550 cities in India

All branches are OLRT connected

500 locations serviced through Telebanking

Representative offices in Hong Kong, New York, London & Singapore.

BUSINESS FOCUS

World Class Indian Bank

Benchmarking against international standards.

Best practices in terms of ethical standards, professional integrity, corporate governance and regulatory compliance

To build sound customer franchises across distinct businesses.

Four core values - Operational Excellence, Customer Focus, Product Leadership and People.

OFFERINGS

Wholesale Banking Services

Retail Banking Services

Treasury

ACHIEVEMENTS

HDFC Bank merged with TIMES BANK in 2000.

HDFC Bank merged with CENTURION BANK OF PUNJAB in 2007.

HDFC Bank wins the Asian Banker Best Retail Bank in India Award 2008 for outstanding performance.

HDFC Bank chosen as one of Asia Pacific’s best 50 companies by Forbes magazine.

'Best Bank in the Private Sector 2008.'

HDFC Bank ties up with Qatar National Bank.

HDFC AMC

Incorporated on 10th December, 1999

Approved as AMC for HDFC Mutual Fund on 3rd July, 2000

Particulars % of the paid up equity capital

HDFC Limited 60

Standard Life Investments Limited 40

Zurich India Mutual Fund divested its Asset Management business in India

HDFC AMC acquired Zurich’s Schemes on 19th June, 2003.

VISION

HDFC STANDARD LIFE

Joint Venture between

Financial Expertise

Range of Solutions

Track Record So Far is:

Gross Premium Income – Rs. 5564.69 crs

27 lakh policies in force.

VISION

'The most successful and admired life insurance company, which means that we are the most trusted company, the easiest to deal with, offer the best value for money, and set the standards in the industry'.

'The most obvious choice for all'.

Company’s Name Percentage holding

HDFC Ltd. 72.43

Standard Life (Mauritius) 2006 26.00

HDFC ERGO GENERAL INSURANCE

74:26 Joint Venture between HDFC Ltd. & ERGO International AG

“Right Insurance Solution” for ALL

46 cities with 52 branch offices with an employee strength of 650 professionals.

VISION

"To be the most admired insurance company that enables the continued progress of customers by being responsive to their needs".

HDFC REALTY

Wholly Owned Subsidiary of HDFC Ltd.

Facilitating Buying, Selling or Leasing of Residential/Commercial Property

Geographic Reach - Mumbai, Navi Mumbai, Pune, Bangalore, Delhi / NCR, Kolkata, Kochi & Hyderabad.

HOME LOAN PRODUCTS

Home Improvement Loans

Flat, row house, bungalow from developers

Existing freehold properties

Properties in an existing or proposed co-operative housing society or apartment

Owner's association

Home Extension Loans

To facilitate the extension of an existing dwelling unit.

The maximum amount of such a loan is Rs. 100 lacs or 100% of the cost of extension, whichever is lower

Maximum duration of 20 years and is to be repaid in equated monthly installments

Home Conversion Loans

Existing HDFC borrowers can avail of a Home Conversion Loan to acquire another dwelling unit, through sale of the existing dwelling unit

The existing loan gets transferred to new property with the increased loan amount

Saves the prepayment processing charges for loan conversion

Top - Up Loans

Encashing the investment in a house without having to dispose it off to fund various needs related to Higher Education, Purchase of Furniture, Business Requirements.

The maximum term of the loan is 10 years. Top up loans can given after 1 to 2 years of the final disbursement of the existing loan or upon possession/completion of the existing financed property.

Home Loan

Maximum loan85% of the cost of the property and based on the repayment capacity of the customer.

Maximum Term20 years subject to your retirement age.

Applicant and Co- Applicant to the loan

Adjustable Rate Home Loan

Fees

Home Improvement Loan

Maximum loan

Existing customer

New customer

No Charges for

Replacement of cheques

Income Tax Certificates

Accelerated Repayment Option

Land Purchase Loan

Maximum loan

Maximum Term

Applicant and Co- Applicant to the loan

Adjustable Rate Home Loan

No Charges for

Replacement of cheques

Income Tax Certificates

Accelerated Repayment Option

COMPARISON OF HDFC LTD WITH OTHER MARKET PLAYERS

STATE BANK OF INDIA

Features & Benefits of SBI Home Loan • Purchase/ Construction of House/ Flat• Purchase of a plot of land for construction of House• Lowest Home Loan Interest Rate..• Extension/ repair/ renovation/ alteration of an existing House/ Flat• Purchase of Furnishings and Consumer Durables as a part of the project cost.• Takeover of an existing loan from other Banks/ Housing Finance Companies.• Interest charged on the daily reducing balance• No penalty on prepayments of home loan• No hidden costs• Option to club income of your spouse and children to compute eligible loan amount• Provision to club depreciation, expected rent accruals from property proposed to compute eligible loan amount• Provision to finance cost of furnishing and consumer durables as part of project cost.

CURRENT RATE OF INTEREST

LOAN SCHEME 1st YEAR 2nd YEAR & 3rd YEAR

AFTER 3rd YEAR

SBI HI-FIVE Loan Loan Amount upto Rs. 5 Lacs

8.00% (p.a.)Fixed interest rate

9.00% (p.a.)Floating Interest RatesOR10.50% (p.a.)Fixed Interest Rates

9.00% (p.a.)Floating Interest RatesOR10.50% (p.a.)Fixed Interest Rates

SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs

8.00% (p.a.)Fixed interest rat

8.00% (p.a.)Fixed interest rat

9.00% (p.a.)Floating Interest Rate OR10.50% (p.a.)Fixed Interest Rate

SBI Easy Home Loan Loan Amount upto Rs. 50 Lacs

8.00% (p.a.)Fixed interest rate

9.00% (p.a.)Fixed Interest Rates

10.00% (p.a.)Floating Interest Rate OR11.00% (p.a.)Fixed Interest Rate

ELIGIBILITY CRITERIA & DOCUMENTATION REQUIRED

SALARIED SELF EMPLOYEED

Age 21years to 60years 21years to 70years

Income Rs.1,20,000 (p.a.) Rs.2,00,000 (p.a.)

Loan Amount Offered 5,00,000 - 1,00,00000 5,00,000 - 2,00,00000

Tenure 5years-20years 5years-20years

Current Experience 2years 3years

Documentation 1) Application form with photograph2) Identity & residence proof3) Last 3 months salary slip 4) Form 165) Last 6 months bank salaried credit statements6) Processing fee cheque

1) Application form with photograph2) Identity & residence proof3) Education qualifications certificate & proof of business existence4) Business profile,5) Last 3 years profit/loss & balance sheet

6) Last 6 months bank statements

ICICI BANK

Features & Benefits of ICICI Bank Home Loan

• Attractive Home Loan Rates • No charges on part pre-payment of your Home Loan• Top Up & Home Improvement Loan facility available on existing Home Loan• Home loan amounts suited to your needs • Home Loan tenure upto 25 years • Simplified Documentation • Doorstep Delivery of home loan papers • Sanction approval without having selected a property. • Free Personal Accident Insurance policies • Insurance options for your home loan at attractive premium

CURRENT RATE OF INTEREST

LOAN SCHEME UPTO 30 LACS FROM 30 LACS-50 LACS

ABOVE 50 LACS

ICICI Bank Floating 8.75% Floating 9% Floating 9.50%

DOCUMENTATION REQUIRED

SALARIED SELF EMPLOYED

Age 21years to 65years 21years to 65years

Income Rs.1,44,000 (p.a) Rs.1,50,000 (p.a)

Loan Amount Offered 2,00,000 - 1,00,00000 2,00,000 - 2,00,00000

Tenure 5years-20years 5years-20years

Current Experience 1years 3years

Processing Fee 0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher

0.5% of loan amount as Administrative Fee or Rs. 2,000, whichever is higher

Documentation 1) Application form with photograph2) Identity & residence proof3) Latest salary slip4) Form 165) Last 6 months bank statements6) Processing fee cheque

1) Application form with photograph

2) Identity & residence proof3) Proof of business existence4) Profile of the Business5) Last 3years ITR6) Last 6 months bank statements7) Processing fee cheque

AXIS BANK

Features and benefits of Axis Bank Home Loan

• Attractive Home loan rate of interest• Balance Transfer Facility• You can choose between floating rate of interest and fixed rate of interest• Loan can be sanctioned if you want to purchase any residential plot or a new house/flat• Pre approved loan facility

ELIGIBILITY & DOCUMENTS REQUIRED


Age 24 years to 60 years 24 years to 65 years

Loan Amount Offered Rs.1lac to 50lacs Rs.1lac to 50lacs

Processing Fee 0.5% + Service tax as applicable Nil

Documentation 1) Application form with photograph

2) Identity & residence proof 3 )Latest salary slip,4) Form 165) Last 6 months bank statements6) Processing fee cheque

1) Application form with photograph2) Identity & residence proof3) Education qualifications certificate & proof of business existence4) Business profile, Last 3 years profit/loss & balance sheet5) Last 6 months bank statements6) Processing fee cheque

IDBI BANK

IDBI, the tenth largest development bank in the world has promoted world class

institutions in India. A few of such institutions built by IDBI are The National

Stock Exchange (NSE), The National Securities Depository Services Ltd.(NSDL),

Stock Holding Corporation of India (SHCIL) etc. IDBI is a strategic investor in a

plethora of institutions which have revolutionized the Indian Financial Markets.

IDBI promoted idbi bank to mark the formal foray of the IDBI Group into commercial Banking. This initiative has blossomed into a major success story.

IDBI bank offers only Floating rate home loans.

INTEREST RATE CHART

TENURE(in years) SALARIED SELF EMPLOYED

Upto 5 7.50% 7.75%

10 7.50% 7.75%

15 7.50% 7.75%

20 7.50%

ELIGIBILITY CRITERIA


Age 24years-58years 24years-65years

Loan amount 2lacs-3crore 2lacs-3crore

Income Gross 1.20lacs Net 1lac

Minimum work experience 2years 2years

SWOT ANALYSIS

Risk of fraud & NPAMajor private players.RBI policies.Increase in funding cost.

Untapped rural marketLeader in home loan segmentFast growing insurance business

Strict policy of funding.Not very aggressive in M&A.Mere international presence.

Leader in home loan segmentRight Strategy for products.Distribution Structure

Strength

Weakness

Threat

Opportunity

STUDY ON CUSTOMER SATISFACTION

CUSTOMER SATISFACTION

: State of mind of customers when expectations have been met or have exceeded over the

lifetime of the products/services i.e. Customer satisfaction, a business term, is a measure of how

products and services supplied by a company meet or surpass customer expectation. It is seen as

a key performance indicator within business. In a competitive marketplace where businesses

compete for customers, customer satisfaction is seen as a key differentiator and increasingly has

become a key element of business strategy. Customer satisfaction is an ambiguous and abstract

concept and the actual manifestation of the state of satisfaction will vary from person to person

and service to service. The state of satisfaction depends on a number of both psychological and

physical variables.

It's a well known fact that no business can exist without customers. And with increasing

competition and with that more customers need and expectations a whole lot of changes have

taken place.

THE NEED TO MEASURE CUSTOMER SATISFACTION

Satisfied customers are central to optimal performance and financial returns.In many places in

the world, business organizations have been elevating the role of the customer to that of a key

stakeholder over the past twenty years. Customers are viewed as a group whose satisfaction with

the enterprise must be incorporated in strategic planning efforts. Forward-looking companies are

finding value in directly measuring and tracking customer satisfaction (CS) as an important

strategic success indicator. Evidence is mounting that placing a high priority on CS is critical to

improved organizational performance in a global marketplace.

With better understanding of customers' perceptions, companies can determine the actions

required to meet the customers' needs. They can identify their own strengths and weaknesses,

where they stand in comparison to their competitors, chart out path future progress and

improvement. Customer satisfaction measurement helps to promote an increased focus on

customer outcomes and stimulate improvements in the work practices and processes used within

the company.

When buyers are powerful, the health and strength of the company's relationship with its

customers – its most critical economic asset – is its best predictor of the future. Assets on the

balance sheet – basically assets of production – are good predictors only when buyers are weak.

So it is no wonder that the relationship between those assets and future income is becoming more

and more tenuous. As buyers become empowered, sellers have no choice but to adapt. Focusing

on competition has its place, but with buyer power on the rise, it is more important to pay

attention to the customer.

Customer satisfaction is quite a complex issue and there is a lot of debate and confusion about

what exactly is required and how to go about it. This article is an attempt to review the necessary

requirements, and discuss the steps that need to be taken in order to measure and track customer

satisfaction.

OBJECTIVE OF THE STUDY

The objective of this study is to study the level of satisfaction among the existing customers of

HDFC Ltd. on the basis of various parameters and also tocompare HDFC Ltd. services with

other public sector banks and private sector banks in terms of customer satisfaction and to find

out the various reasons of customer satisfaction or dissatisfaction in HDFC Ltd.services.

SCOPE OF THE STUDY

The scope of the study is confined in studying extent of HDFC Ltd. services in successful

achievement of the customer satisfaction and also comparing the public sector and private sector

banks in terms of customer satisfaction level. The study will be undertaken on the basis of

sample survey.

RESEARCH METHODOLOGY

Research design:

The research design would be descriptive and cross sectional

Sample size:

The sample would be selected on random basis. A sample of 50 respondents would be used in

the research.

Target Area : Chandigarh

Data Sources:

Both Secondary and Primary Sources of data will be used.

The major type of information used is primary data (Questionnaires and Personal Interview).

This is done through primary survey. The literature review is a secondary data type. The sources

include books, periodicals, websites, printed literature etc.

Data Collection Tool: - Structured Questionnaire:

A structured Questionnaire is a formal list of questions framed so as target the facts. For

Collecting Primary Data I used a Structured Questionnaire. I prepared questionnaire to be filled

by customers of HDFC Bank. I meet to 50 customers of HDFC Bank who filled the

questionnaire so that I can know about the satisfaction level of that services which they enjoy as

a customer.

Sampling Technique: Convenient Sampling

In convenience sampling, the selection of units from the population isbased on easy

availability and/or accessibility.I am using this sampling method because sample will be

selected on thebasis of availability of the respondents who met the desired criteria.

ANALYSIS

1) Participants’ proportion:

CATEGORY TOTAL(50) %

Male 34 68Female 16 32

2) Occupation type:


Self-employed 11 22

Employed(private) 21 42

Employed(government) 18 363) Income level’s:


<3 lakhs 21 42

3-5 lakhs 20 40

5-8 lakhs 6 12

8 lakhs and above 3 6

GENDER * INCOME Cross tabulation

INCOME

Total

<3 lakhs

3-5 lakhs 5-8 lakhs8 lakhs and

above GENDER Male 13 15 4 2 34

Female 8 5 2 1 16Total 21 20 6 3 50

EMPLOYEE * INCOME Cross tabulation

INCOMETotalA b c D

EMPLOYEE Self-employed 0 8 3 0 11Employed(pvt) 13 4 1 3 21

Employed(gvt) 8 8 2 0 18Total 21 20 6 3 50

GENDER * EMPLOYE E Cross tabulation

EMPLOYEE

TotalSelf-employed Employed(pvt) Employed(gvt)GENDER Male 7 14 13 34

Female 4 7 5 16Total 11 21 18 50

GENDER *LOAN PERIOD Cross tabulation

LOAN PERIOD

Total>1 year 1-3 years 3-5 years >5 yearsGENDER Male 9 8 6 11 34

Female 2 3 3 8 16Total 11 11 9 19 50

4) Purpose of Visit:


Deposit Enquiry 8 16

Home Loan Enquiry 30 60

Any other 12 24

5) Knowledge about HDFC Ltd.-


Friends, relatives 23 46

Internet 0 0

Existing employees 13 26

Other sources 14 28

6) Period of Loan:


>1 year 11 22

1-3 years 11 22

3-5 years 9 18

>5 years 19 38

7) Rate option:


Fixed 13 26

Floating 33 66

Dual 4 8

8) Schemes awareness:


Trenching 3 6

Conversion 2 4

Prepayment 18 36

Not aware 28 56

9) Loan from other banks:


Yes 38 76

No 12 24

10) Awareness about value added services:


Life Insurance cover 12 24

Home Insurance cover 5 10

International credit card facility 6 12

Not aware 27 54

11) Recommendation to others/ taking another loan from HDFC Ltd.:


Yes 35 70

No 15 30

RELATION BETWEEN VARIOUS PARAMETERS

Statistical analysis has not provided any statistically significant correlations or regression for all

variables. In this part, we will present the statistically significant correlations and regression that

exist among the various factors examined in this research:

relation between SERVICES(independent variable) and RECOMMENDATION(dependent variable):

Frequencies:

Statistics: SERVICES

N Valid 50Missing 0

Mean 17.86

Median 17.50

Mode 16

Std. Deviation 5.383

Variance 28.980

Sum 893

Frequency Percent Valid Percent Cumulative PercentValid 9 3 6.0 6.0 6.0

11 2 4.0 4.0 10.012 1 2.0 2.0 12.013 4 8.0 8.0 20.014 4 8.0 8.0 28.015 3 6.0 6.0 34.016 7 14.0 14.0 48.017 1 2.0 2.0 50.018 5 10.0 10.0 60.019 4 8.0 8.0 68.020 1 2.0 2.0 70.021 6 12.0 12.0 82.022 2 4.0 4.0 86.023 1 2.0 2.0 88.025 1 2.0 2.0 90.027 2 4.0 4.0 94.028 1 2.0 2.0 96.031 1 2.0 2.0 98.033 1 2.0 2.0 100.0Total 50 100.0 100.0

Frequencies

Statistics: RECOMMENDATIONS

N Valid 50

Missing 0Mean 1.70Median 2.00Mode 2Std. Deviation .463Variance .214Sum 85

Frequency Percent Valid PercentCumulative

PercentValid N 15 30.0 30.0 30.0

Y 35 70.0 70.0 100.0Total 50 100.0 100.0

REGRESSION:

Variables Entered/Removed (b)

Model Variables EnteredVariables Removed Method

1 SERVICES(a) . Enter

Model Summary (b)

Model R R SquareAdjusted R

SquareStd. Error of the Estimate

Change Statistics

R Square Change F Change df1 df2 Sig. F Change

1 .427(a) .182 .165 .423 .182 10.683 1 48 .002a Predictors: (Constant), SERVICESb Dependent Variable: RECOMMENDATIONS

ANOVA (b)

ModelSum of Squares df Mean Square F Sig.

1 Regression 1.912 1 1.912 10.683 .002(a)Residual 8.588 48 .179Total 10.500 49

a Predictors: (Constant), SERVICESb Dependent Variable: RECOMMENDATIONS

Coefficients (a)

Model

Unstandardized Coefficients

Standardized Coefficients

t Sig.

95% Confidence Interval for B

B Std. Error Beta Lower Bound Upper Bound1 (Constant) 2.355 .209 11.258 .000 1.935 2.776

SERVICES-.037 .011 -.427 -3.269 .002 -.059 -.014

ANALYSIS:1. The value of R2= .182, which shows that the relation between SERVICES(occupation) and

RECOMMENDATION is not strong enough.

2. Standard error = .423

3. The value of constantcoefficient (a) is = 2.355.4. The value of variablecoefficient (b) is = -.037.5. From ANOVA test we get:

SSR(sum square between rows/columns) = 1.912

SSE(sum square error) = 8.588 SST(sum square total) = 10.500 MSR(mean square between rows) = 1.912

MSE (mean square between error) = .179

relation between PERIOD(independent variable) and RATE(dependent variable):

Frequencies:Statistics: PERIOD

N Valid 50Missing 0

Mean 2.72Median 3.00Mode 4Std. Deviation 1.196Variance 1.430Sum 136


PercentValid a 11 22.0 22.0 22.0

b 11 22.0 22.0 44.0c 9 18.0 18.0 62.0d 19 38.0 38.0 100.0Total 50 100.0 100.0

Frequencies:

Statistics: RATE

N Valid 50Missing 0

Mean 1.82Median 2.00Mode 2Std. Deviation .560Variance .314Sum 91



b 33 66.0 66.0 92.0c 4 8.0 8.0 100.0Total 50 100.0 100.0

RATE into NRATEOld Value New Value Value Label

a 1 ab 2 bc 3 c

PERIOD into NPERIODOld Value New Value Value Label

a 1 ab 2 bc 3 cd 4 d

Regression: Variables Entered/Removed (b)

ModelVariables Entered

Variables Removed Method

1 NPERIOD(a) . Entera All requested variables entered.b Dependent Variable: NRATE

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate1 .046(a) .002 -.019 .565

a Predictors: (Constant), NPERIOD

ANOVA(b)


1 Regression .033 1 .033 .103 .750(a)Residual 15.347 48 .320Total 15.380 49

a Predictors: (Constant), NPERIODb Dependent Variable: NRATE

Coefficients(a)

Model

Unstandardized CoefficientsStandardized Coefficients

t Sig.B Std. Error Beta1 (Constant) 1.879 .200 9.378 .000

NPERIOD -.022 .068 -.046 -.321 .750

ANALYSIS:1) The value of R2= .002, which shows that the relation between SERVICES(occupation)

and RECOMMENDATION is very weak.2) Standard error = .5653) The value of constant coefficient (a) is = 1.879.4) The value of variable coefficient (b) is = -.022.5) From ANOVA test we get:

SSR(sum square between rows/columns) = .033. SSE(sum square error) = 15.347 SST(sum square total) = 15.380 MSR(mean square between rows) = .033

MSE (mean square between error) = .320

relation between INCOME(independent variable) and PERIOD(dependent variable):

FrequenciesStatistics: INCOME

N Valid 50Missing 0

Mean 1.82Median 2.00Mode 1Std. Deviation .873Variance .763Sum 91



b 20 40.0 40.0 82.0c 6 12.0 12.0 94.0d 3 6.0 6.0 100.0Total 50 100.0 100.0

INCOME into NINCOME

Old Value New Value Value Label

a 1 ab 2 bc 3 cd 4 d

Regression

Variables Entered/Removed(b)

Model Variables EnteredVariables Removed Method

1 NINCOME(a) . Enter

a All requested variables entered.b Dependent Variable: NPERIOD

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate1 .244(a) .059 .040 1.172

a Predictors: (Constant), NINCOME

ANOVA(b)


1 Regression 4.167 1 4.167 3.034 .088(a)

Residual 65.913 48 1.373Total 70.080 49

a Predictors: (Constant), NINCOMEb Dependent Variable: NPERIOD

Coefficients(a)

Model

Unstandardized CoefficientsStandardized Coefficients


NINCOME .334 .192 .244 1.742 .088a Dependent Variable: NPERIOD

ANALYSIS:

1) The value of R2= .059, which shows that the relation between SERVICES(occupation) and RECOMMENDATION is very weak.

2) Standard error = 1.1723) The value of constant coefficient (a) is = 2.112.4) The value of variable coefficient (b) is = .334.5) From ANOVA test we get:

SSR(sum square between rows/columns) = 4.167 SSE(sum square error) = 65.913 SST(sum square total) = 70.080 MSR(mean square between rows) = 4.167 MSE (mean square between error) = 1.373

relation between INCOME(independent variable) and RATE(dependent variable):

Regression

Variables Entered/Removed(b)

ModelVariables Entered

Variables Removed Method

1 NINCOME(a)

. Enter

a All requested variables entered.b Dependent Variable: NRATE

Model Summary

Model R R Square Adjusted R Square Std. Error of the Estimate1 .193(a) .037 .017 .555

a Predictors: (Constant), NINCOME

ANOVA(b)


1 Regression .571 1 .571 1.851 .180(a)

Residual 14.809 48 .309Total 15.380 49

a Predictors: (Constant), NINCOMEb Dependent Variable: NRATE

Coefficients(a)

Model

Unstandardized Coefficients

Standardized Coefficients


NINCOME -.124 .091 -.193 -1.360 .180a Dependent Variable: NRATE

ANALYSIS:1. The value of R2= .037, which shows that the relation between SERVICES(occupation) and

RECOMMENDATION is very weak.2. Standard error = .5553. The value of constant coefficient (a) is = 2.045.4. The value of variable coefficient (b) is = -.124.5. From ANOVA test we get:

SSR(sum square between rows/columns) = .571 SSE(sum square error) = 14.809 SST(sum square total) = 14.380 MSR(mean square between rows) = .571 MSE (mean square between error) = .309

Correlation Matrix(a)

PROP_FIN REP_MOD DISB_TIM TRANSPCY LOCATION KYC FLEXIBIL BEHAVIOU

Correlation PROP_FIN 1.000 0.543 0.697 0.333 0.503 0.576 0.538 0.595

REP_MOD 0.543 1.000 0.439 0.310 0.309 0.202 0.305 0.441

DISB_TIM 0.697 0.439 1.000 0.388 0.461 0.530 0.372 0.407

TRANSPCY 0.333 0.310 0.388 1.000 0.502 0.381 0.706 0.617

LOCATION 0.503 0.309 0.461 0.502 1.000 0.472 0.482 0.408

KYC 0.576 0.202 0.530 0.381 0.472 1.000 0.564 0.422

FLEXIBIL 0.538 0.305 0.372 0.706 0.482 0.564 1.000 0.800

BEHAVIOU 0.595 0.441 0.407 0.617 0.408 0.422 0.800 1.000

TOP_UP 0.422 0.238 0.525 0.285 0.503 0.451 0.382 0.450

Sig.(1-tailed) PROP_FIN 0.000 0.000 0.009 0.000 0.000 0.000 0.000

REP_MOD 0.000 0.001 0.014 0.015 0.079 0.016 0.001

DISB_TIM 0.000 0.001 0.003 0.000 0.000 0.004 0.002

TRANSPCY 0.009 0.014 0.003 0.000 0.003 0.000 0.000

LOCATION 0.000 0.015 0.000 0.000 0.000 0.000 0.002

KYC 0.000 0.079 0.000 0.003 0.000 0.000 0.001

FLEXIBIL 0.000 0.016 0.004 0.000 0.000 0.000 0.000

BEHAVIOU 0.000 0.001 0.002 0.000 0.002 0.001 0.000

TOP_UP 0.001 0.048 0.000 0.022 0.000 0.001 0.003 0.001

SPSS ANALYSIS OF FACTOR

Step 1 preliminary analysis:

The top half of this table contains the Pearson correlation coefficient between all pairs of

questions whereas the bottom half contains the one-tailed significance of these coefficients. This

correlation matrix is used to check the pattern of relationships. Significance values are scanned

and any variable for which the majority of values are greater than 0.05 are looked for. Then

scanning of the correlation coefficients is done any value greater than 0.9 is looked for. The

values are hence checked and it is found that no value is greater than the above tabulated value.

Therefore the problem of singularity does not exist.

Step 2the Kaiser-Meyer-Olkin measure of sampling adequacy and Bartlett's test of Sphericity:

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure... 0.782

Bartlett's Test of Sphericity Approx. Chi-Square 235.799

df 36

Sig.Bartlett 0.000

The KMO statistic varies between 0 and 1. A value of 0indicates that the sum of partial

correlations is large relative to the Kaiser-Meyer-Olkin Measure of Sampling Adequacy.sum of

correlations, indicating diffusion in the pattern of correlations (hence, factor analysis is likely to

be inappropriate). A value close to 1 indicates that patterns of correlations are relatively compact

and so factor analysis should yield distinct and reliable factors. The values between.07to0.8 are

considered good as per our analysis; the value is 0.782 which is good. Hence it is confirmed that

factor analysis is appropriate for this data.

The significance of barlett’s test should be less than 0.05 hence it is again proved that the test is

consistent.

Step 3 Extraction of factors:

In the above table the first column shows us the initial eigen values. The first factor shows us the

eigen value in the terms of percentage of variance explained. The spss then extracts the factors

whose eign values are greater than one based on which two of the factors are extracted. In the

third column rotated sum of squares of the factor loading is shown. The percentage of variance in

this is reduced because of optimization of factors.

Step 4 Table of Communalities:

Communalities

Initial Extraction

PROP_FIN 1.000 0.748 TRUE

REP_MOD 1.000 0.370 FALSE

DISB_TIM 1.000 0.755 TRUE

TRANSPCY 1.000 0.764 TRUE

LOCATION 1.000 0.508 FALSE

KYC 1.000 0.523 FALSE

FLEXIBIL 1.000 0.876 TRUE

BEHAVIOU 1.000 0.764 TRUE

TOP_UP 1.000 0.498 FALSE

Component Matrix(a)

Component

1 2

FLEXIBIL 0.807 -0.474

PROP_FIN 0.806

BEHAVIOU 0.801

DISB_TIM 0.739 0.457

KYC 0.713

LOCATION 0.711

TRANSPCY 0.699 -0.525

TOP_UP 0.647

REP_MOD 0.563

The SPSS has extracted two of the factors however it is statistical tool and we have to judge by

our self as to what factors are important and what are to be left out. Based on thumb rule we are

considering the factors having value above 0.7 are marked as true and they are recommended to

the management.

LIMITATIONS

Every study conducted may have certain shortcomings and unfortunately mine is also a similar

case. A few errors have crept in despite mine best efforts to avoid them but it is expected that

still mine study and findings are very much relevant.

An error may have been due to the samples taken not conforming to the actual

population; this is because the sample was a convenience sample.

Certain questions which are not properly responded by the Respondents.

Personal bias or personal error of the interviewer might also have crept in, some cases,

while interpreting the respondents.

There are several customers who don’t show proper interest in filling the questioner as

they feel that they won’t get any benefit after filling the questioners and it’s just a waste

of time for them.

RECOMMENDATIONS AND SUGESSTIONS

To satisfy their customers and for good dealings in future, the HDFC LTD should make

prompt disbursement of loan amount to the customers so that they can buy or construct

their dream home as early as possible..

The HDFC LTD should use easy procedure or say, less lengthy procedure for the

sanctioning of loan to the customer. There should be less number of legal formalities, in

case this exists, then, these should be completed in less time. This will be helpful in

attracting more customers.

Company should enter into tie ups with reputed builders and development authorities.

HDFC should increase their reach by penetrating into rural and semi urban areas .They

should also capitalize on present customer base by generating referrals .

Aggressive marketing and great publicity through newspapers, hoarding, websites and

other medias should be done.

Restriction to be reduced to bare minimum for loan advances and for repayment. For e.g. offer long-term repayment facilities and have no age restriction to choosing repayment.

The maximum age for repayment could be increase to 65-70 years of age. Such facility will help grow fast retail segment of the bank.

Offer multiple repayment loans.

Service class to be exploited by offering special reduced rates and linking the

repayment from the source from where the pay-cheque to the employee is issued. This needs to undergo special contract with government organization to ensure implementation.

BIBLIOGRAPHY

ANNEXURE

QUESTIONNAIRE

HOUSING DEVELOPMENT FINANCE CORPORATION LIMITED

SECTOR 8, CHANDIGARH

Good Morning Mam/Sir,

We are summer trainees doing our summer industrial training at HDFC Limited. As a part of our project we would like to get some valuable information.

On behalf of HDFC Limited, I want to thank you for giving us the opportunity to serve you. Please help us in filling up the questionnaire so that we can serve you to the best of our abilities. This information will help us to further improve our products and will give us a feedback on our service standards.

SPECIAL INSTRUCTIONS:The object of this study is to collect primary data from the respondents on the above subject purely for the fulfillment of the requirements of the institution. Following pages contain number of questions on various aspects. Each question carries a number of alternatives. Please read the question carefully and indicate your attitude by marking (√) in the check box of alternative that is more appropriate for you. There are no rights or wrong answers. Please answer all the questions without omitting any. Your answers shall be treated as STRICTLY CONFIDENTIAL.

Name: -_______________________________________________________________________

Contact no.:- ________________________

Email: -_______________________________________________________________________

Occupation: Self-Employed Employed (Private)

Employed (Government)

Annual income:<3 lakhs 3-5 lakhs

5-8 lakhs 8 lakhs and above

Q1.Purpose of Visit:

Deposit Enquiry Home Loan Enquiry

Any other

Q2.How did you come to know about HDFC Ltd.?

From friends, relatives From internet

From existing employees Other sources

Q3.How long have you been availing services of HDFC Ltd?

Less than a year 1 -3 years

3-5 years Above 5 years

Q4.Which rate of interest scheme you prefer for housing loan?

Fixed Floating Dual

Q5.Which of the following schemes of loans you are familiar with

Trenching Conversion

Prepayment Tick if not aware

Q6.Have you ever taken a HOME loan from any other bank?

No

Yes (……………………………….>) name of the bank

Q7.Are you aware of the following value added schemes provided by HDFC? If yes, else otherwise, NO-

Life Insurance cover

Home Insurance cover

International credit card facility

Q8.Will you take another loan from HDFC in future or will you recommend our services to someone?

Yes No

Q9.How will you rate the following services of HDFC on a scale of 5:

Factor 1(Very good) 2(good) 3(average) 4(bad) 5(below expected level)

Proportion of Financing

Repayment mode

Time taken for disbursement

Information delivery/ transparency of the process

Location acceptance

KYC norms

Flexibility in work procedures

Behavior of the staff

Top up loan

Q10.In what areas HDFC is better than others :( √ if YES; else BLANK)

Factors/Banks SBI ICICI AXIS IDBI

Prepayment charges

Proportion of Financing

Time taken for disbursement

Processing fees

Transparency of procedure

Location acceptance

Top up Loan

Telephone/ internet services

Flexibility in Work Procedure

Reputation of the institution

Employee courtesy

Promotion strategy

Interest Rate

Pay-back period

Documents

A Report on Comparative Study of Home Loan & Customer Satisfaction