Embed Size (px)
DESCRIPTION
The chief importance this project is to know the about customer satisfaction and factors influencing to choose services provided by the IBHFL. The foremost thing is the company and its unit profile. Were work that was being carried out simultaneously was to know the current policies and system regarding services.
Citation preview
1
TO FIND OUT THE FACTORS INFLUENCING CUSTOMER SATISFACTION TOWARDS THE SERVICES
PROVIDED BY IBHFL
Research Report submitted to Entrepreneurship Development Institute of India in partial fulfillment of the requirements for the award of
Post Graduate Diploma in Business Management
Submitted by
Suraj Apagonda PatilRegister No.: 12JJEPG1103
under the guidance of
Prof. Meghnathrao V. BelathurProfessor
Jain CollegeBangalore
Entrepreneurship Development Institute of IndiaAhmedabad
2013
Annexur
2
DECLARATION
I hereby declare that the research entitled “TO FIND OUT THE
FACTORS INFLUENCING CUSTOMER SATISFACTION
TOWARDS THE SERVICES PROVIDED BY IBHFL” submitted
to Entrepreneurship Development Institute of India in partial
fulfillment of the requirements for the award of PGDBM, is a
record of independent research work carried out by me under the
supervision and guidance of Prof. Meghnathrao V. Belathur,
Professor, Jain College, Bangalore. This work has not formed
the basis for the award of any Degree and has not been
submitted previously to any other College/University.
Bangalore
NOVEMBER, 2013 Suraj Apagonda Patil
INTRODUCTION
3
Prof. Meghnathrao V. BelathurProfessorJain CollegeBangalore
CERTIFICATE
I certify that this research entitled “TO FIND OUT THE FACTORS
INFLUENCING CUSTOMER SATISFACTION TOWARDS THE
SERVICES PROVIDED BY IBHFL” submitted to Entrepreneurship
Development Institute of India in partial fulfillment of the
requirements for the award of PGDBM, is a record of independent
research work carried out by Mr. Suraj Apagonda Patil under my
supervision and guidance. This work has not formed the basis for
the award of any Degree and has not been submitted previously to
any other College/University.
Bangalore Prof. Meghnathrao V. Belathur
NOVEMBER, 2013 Research Mentor
Contents
Page
No.
List of Tables IList of graphs II
Chapter I Introduction 1 – 17
1.1 Industry Profile1.2 Home loan1.3 Industry structure1.4 Role in financial system1.5 Future respective towards NBFC sector1.6 Customer satisfaction1.7 Customer satisfaction Research1.8 Factors influencing perception
Chapter II Company Profile 18 - 34
2.1 Origin of Organization2.2 Growth and development of company2.3 Present status of company2.4 Ownerships pattern 2.5 Business2.6 Product and services2.7 Financial information 2.8 Strength of IBHFL
2.8.1 Home loan strength 2.8.2 Corporate strength
Chapter III Research Methodology 35 - 42
3.1 Statement of the problem3.2 Scope of the study3.3 Objective of the study3.4 Research methodology3.5 Data collection3.6 Limitation of the study
4
Chapter IV
Data Analysis 41 – 58
4.1 Customer preferred for financial center
4.2 Profile of outline4.3 Gender shared out among a group4.4 Customer awareness regarding IBHFL4.5 Customer preference on housing loan4.6 Customer perception on IBHFL4.7 Source of influence for the selection of IBHFL4.8 Regular customer to IBHFL4.9 Degree of customer safekeeping4.10 Company provides better services4.11 Customer opinion on word of mouth connection4.12 Customer perception of interest rate of IBHFL4.13 Customer expectation4.14 Years of customer association in IBHFL4.15 Customer perception of the market share of IBHFL4.16 Type of Housing Loan the customers have taken
Chapter V Findings 58 – 59
5.1 Findings
Chapter VI
Conclusion & Recommendations61 –
65
6.1 Conclusion
6.2 Recommendations
Bibliography Appendices
5
LIST OF TABLE
Sl. No. Table No. Title of table
1 4.1 Customer preferred for Financial Institution2 4.2 Profile of customer3 4.3 Gender shared out among a group4 4.4 Customer awareness respecting IBHFL5 4.5 Customer preference on housing loan6 4.6 Customer perception on IBHFL7 4.7 Source of influence for the selection of IBHFL8 4.8 Regular customer to IBHFL9 4.9 Degree of customer safekeeping
10 4.10 Company provides better services
11 4.11 opinion on word of mouth connection
12 4.12 Customer perception of interest rate of IBHFL
13 4.13 Customer expectation
14 4.14 Years of customer association in IBHFL
15 4.15 Customer perception of the market share of IBHFL
16 4.16 Type of Housing Loan the customers have occupy
6
LIST OF GRAPH
Sl. No. Table No. Title of table
1 1.1 Growth-mortgage penetration2 2.2 Balance sheet assets3 2.3 Loan book growth4 4.4 Customer preferred for Financial Institution5 4.5 Profile of customer6 4.6 Gender shared out among a group7 4.7 Customer awareness respecting IBHFL8 4.8 Customer preference on housing loan9 4.9 Customer perception on IBHFL
10 4.10 Source of influence for the selection of IBHFL11 4.11 Regular customer to IBHFL12 4.12 Degree of customer safekeeping
13 4.13 Company provides better services
14 4.14 opinion on word of mouth connection
15 4.15 Customer perception of interest rate of IBHFL
16 4.16 Customer expectation
17 4.17 Years of customer association in IBHFL
18 4.18 Customer perception of the market share of IBHFL
19 4.19 Type of Housing Loan the customers have occupy
EXECUTIVE SUMMARY
7
The primary goal of company would be to provide tailor made products and
services to the customer and to retain them into the organization by providing
them with higher levels of satisfaction. But this becomes a though field work for
the company.
Here a study has been undertaken at IBHFL assessing the satisfaction levels of
the clients of Indiabulls.
The need for this research is to emphasis the expectation of clients of IBHFL and
how the company is performing is contrast to the expectation and able to provide
satisfaction.
Every industry in India has grown over the last 10 years except this one,
whatever retail participation exists is coming from bigger cities such as Mumbai
and Delhi. The services have not reach bottom of pyramid.
So, this study becomes even more important to help IBHFL know the satisfaction
level of their customers. It will also help Indiabulls to focus on what aspects they
lag behind so that they can provide better services to their customer and satisfy
them were gathered the data from various departments like Marketing
department, Finance & Accounts department, HR department etc.
For understanding customer satisfaction level and their expectation a survey of
50 clients of Indiabulls is done using random sampling. The survey reveals that
the overall customer satisfaction level is above average. The study concludes
with some recommendation.
8
CHAPTER 1
INTRODUCTION
9
The chief importance this project is to know the about customer satisfaction and
factors influencing to choose services provided by the IBHFL. The foremost thing
is the company and its unit profile. Were work that was being carried out
simultaneously was to know the current policies and system regarding services.
The main objectives of this report are:
To study general profile of the customers.
To identify major factor influencing customer satisfaction for Indiabulls
services.
To know the how fair practices set by IBHFL in dealing with services.
10
1.1 INDUSTRY PROFILE
1.1.1 NON-BANKING FINANCIAL COMPANIES (NBFC)
Non-banking financial companies are financial institutions that provide banking
services, but do not hold a banking license. These institutions are not allowed to
take deposits from the public. All operations of these institutions are still covered
under banking regulations.
NBFCs do gather all sorts of banking services, such as loans and credit facilities,
retirement planning, money markets, and merger activities. The number of
NBFS’s has expanded greatly in the last several years as venture capital
companies, retail and industrial companies have entered the lending business.
NBFC have rapidly emerged as an important segment of the Indian financial
system. Moreover, NBFCs assume significance in the small business segment
as they primarily cater to the credit requirements of the unorganized sector such
as wholesale & retail traders, small-scale industries and small borrowers at the
local level. NBFC is a heterogeneous group of financial institutions, performing a
wide range of activities like hire-purchase finance, vehicle financing, equipment
lease finance, personal loans, working capital loans, consumer loans, housing
loans, loans against shares and investment, etc.
NBFCs are broadly divided into three categories namely
(i) NBFCs accepting deposits from banks (NBFC-D)
(ii) NBFCs not accepting/holding public deposits (NBFC-ND)
(iii) Core investment companies
11
NON-BANKING FINANCIAL INSTITUTION
A nonbank financial institution (NBFI) is interacts with banks and governments, a
financial institution that does not have a full banking license and cannot accept
deposits from the public. However, NBFIs do facilitate alternative financial
services, such as investment risk pooling, financial consulting, brokering, money
transmission, and check cashing. NBFIs are a source of consumer credit (along
with licensed banks). Examples of nonbank financial institutions include
insurance firms, venture capitalists, currency exchanges, some microloan
organizations, and pawn shops. These non-bank financial institutions provide
services that are not necessarily suited to banks, serve as competition to banks,
and specialize in sectors or groups.
Risk pooling institutions
Insurance companies underwrite economic risks associated with death, illness,
damage to or loss of property, and other risk of loss. Under this
system, insurance companies come together to form a pool, which can provide
protection to insurance companies against catastrophic risks such as floods,
earthquakes etc. They provide a contingent promise of economic protection in
the case of loss. There are two main types of insurance companies: life
insurance and general insurance. General insurance tends to be short-term,
while life insurance is a longer contract, ending at the death of the insured. Both
types of insurance, life and property, are available to all sectors of the
community. Because of the nature of the insurance industry (companies must
access a plethora of information to assess the risk in each individual case),
insurance companies enjoy a high level of information efficiency.
Life insurance companies insure against economic loss of the insured’s
premature death. The insured will pay a fixed sum as an insurance premium
every term. Because the probability of death increases with age while premiums
12
remain constant, the insured overpays in the earlier stages and underpays in the
later years. The overpayment in the early years of the agreement is the cash
value of the insurance policy.
General insurance is further divided into two categories: market and social
insurance. Social insurance is against the risk of loss of income due to sudden
unemployment, disability, illness, and natural disasters. Because of the
unpredictability of these risks, the ease at which the insured can hide pertinent
information from the insurer, and the presence of moral hazard, private insurance
companies frequently do not provide social insurance, a gap in the insurance
industry which government usually fills. Social insurance is more prevalent in
industrialized Western societies where family networks and other organic social
support groups are not as prevalent.
Market insurance is privatized insurance for damage or loss of property. General
insurance companies take a single premium payment. In return, the companies
will make a specified payment contingent on the event that it is being insured
against. Examples include theft, fire, damage, natural disaster, etc.
Contractual savings institutions
Contractual savings institutions provide the opportunity for individuals to invest in
collective investment vehicles in a fiduciary rather than a principle role.
Contractual savings institutions include national provident funds, life insurance
companies, private pension funds, and funded social pension insurance systems.
They have long-term liabilities and stable cash flows and are therefore ideal
providers of term finance, not only to government and industry, but also to
municipal authorities and the housing sector. The two most popular examples of
contractual savings institutions are mutual funds and private pension plans.
13
The two main types of mutual funds are open-end and closed-end funds. Open-
end funds generate new investments by allowing the public buy new shares at
any time. Shareholders can liquidate their shares by selling them back to the
open-end fund at the net asset value. Closed-end funds issue a fixed number of
shares in an IPO. The shareholders capitalize on the value of their assets by
selling their shares in a stock exchange.
Pension funds are mutual funds that limit the investor’s ability to access their
investment until after a certain date. In return, pension funds are granted large
tax breaks in order to incentivize the working public to set aside a percentage of
their current income for a later date when they are no longer amongst labour.
GRAPH 1.1
Lower mortgage penetration compared to advanced and emerging economies
implies huge opportunity for growth.
•Mortgage to GDP Ratio expected to improve to 12% by FY15, supported by
•Increasing Urbanization
•Improved Affordability
14
1.1.2 NBFC UNDER GOVERNMENT REGULATION
The working and operations of NBFCs are regulated by the Reserve Bank of
India (RBI) within the framework of the Reserve Bank of India Act, 1934 (Chapter
III B) and the directions issued by it under the Act. As per the RBI Act, a 'non-
banking financial company' is defined as:-
1. A financial institution which is a company.
2. A non-banking institution which is a company and which has as its principal
business the receiving of deposits, under any scheme or arrangement or in
any other manner, or lending in any manner.
3. Such other non-banking institution or class of such institutions, as the bank
may, with the previous approval of the Central Government and by
notification in the Official Gazette, specify.
Under the Act, it is mandatory for a NBFC to get itself registered with the RBI as
a deposit taking company. This registration authorizes it to conduct its business
as an NBFC. For the registration with the RBI, a company incorporated under
the Companies Act, 1956 and desirous of commencing business of non-banking
financial institution, should have a minimum net owned fund (NOF) of Rs 25 lakh
(raised to Rs 200 lakh w.e.f April 21, 1999). The term 'NOF' means, owned funds
(paid-up capital and free reserves, minus accumulated losses, deferred revenue
expenditure and other intangible assets) less, (i) investments in shares of
subsidiaries/companies in the same group/ all other NBFCs; and (ii) the book
value of debentures/bonds/ outstanding loans and advances, including hire-
purchase and lease finance made to, and deposits with, subsidiaries/ companies
in the same group, in excess of 10% of the owned funds.
15
The registration process involves submission of an application by the company in
the prescribed format along with the necessary documents for RBI's
consideration. If the bank is satisfied that the conditions enumerated in the RBI
Act, 1934 are fulfilled, it issues a 'Certificate of Registration' to the company. Only
those NBFCs holding a valid Certificate of Registration can accept/hold public
deposits. The NBFCs accepting public deposits should comply with the Non-
Banking Financial Companies Acceptance of Public Deposits (Reserve Bank)
Directions, 1998, as issued by the bank. Some of the important regulations
relating to acceptance of deposits by the NBFCs are:-
They are allowed to accept/renew public deposits for a minimum period of
12 months and maximum period of 60 months.
They cannot accept deposits repayable on demand.
They cannot offer interest rates higher than the ceiling rate prescribed by
RBI from time to time.
They cannot offer gifts/incentives or any other additional benefit to the
depositors.
They should have minimum investment grade credit rating.
Their deposits are not insured.
The repayment of deposits by NBFCs is not guaranteed by RBI.
16
1.1.3 THE TYPES OF NBFCS REGISTERED WITH THE RBI
A. Equipment leasing company: - is any financial institution whose principal
business is that of leasing equipment’s or financing of such an activity.
B. Hire-purchase Company: - is any financial intermediary whose principal
business relates to hire purchase transactions or financing of such
transactions.
C. Loan company:- means any financial institution whose principal business
is that of providing finance, whether by making loans or advances or
otherwise for any activity other than its own.
D. Investment Company: - is any financial intermediary whose principal
business is that of buying and selling of securities.
Now, these NBFCs have been reclassified into three categories:
Asset Finance Company (AFC)
Investment Company (IC)
Loan Company (LC)
Under this classification, 'AFC' is defined as a financial institution whose principal
business is that of financing the physical assets which support various
productive/economic activities in the country.
17
1.2 HOME LOAN
A home mortgage is one of the most common forms of debt, and it is also one of
the most advised. Mortgage loans come with lower interest rates than almost any
other kind of debt an individual consumer can find. Real estate is currently one of
the fastest growing sectors in India. Banking sector is also registering profitable
business since the last few decades, with the growth of real estate. Majority of
the banks are also offering easy home loans at attractive rates to their
customers. Now that getting a home loan is so easy, it seems everyone can fulfill
his / her long cherished dreams of purchasing lands, building their houses and
expanding their homes. Different types of home loans are tailored to suit the
heterogeneous requirements of the customers. The description of some of the
most common types of home loans is given below.
Types Of Home Loans
Home Purchase Loans.
Home Improvement Loans
Home Construction Loan
Home Extension Loans.
Home Conversion Loan
Land Purchase Loans
Bridge Loans
Balance Transfer Loans
18
1.3 INDUSTRY STRUCTUREThe Reserve Bank of India is entrusted with the responsibility of regulating and
supervising the Non-Banking Financial Companies by virtue of powers vested in
Chapter III B of the Reserve Bank of India Act, 1934. The regulatory and
supervisory objective is to:
1. Ensure healthy growth of the financial companies;
2. Ensure that these companies function as a part of the financial system within
the policy framework, in such a manner that their existence and functioning do
not lead to systemic aberrations; and that
3. The quality of surveillance and supervision exercised by the Bank over the
NBFCs is sustained by keeping pace with the developments that take place in
this sector of the financial system.
1.4 ROLE IN FINANCIAL SYSTEM
19
The Reserve Bank of India has recognized the need to introduce NBFIs
supplement banks in providing financial services to individuals and firms. They
can provide competition for banks in the provision of these services. While banks
may offer a set of financial services as a package deal, NBFIs unbundle these
services, tailoring their services to particular groups. Additionally, individual
NBFIs may specialize in a particular sector, gaining an informational advantage.
By this unbundling, targeting, and specializing, NBFIs promote competition within
the financial services industry.
There are different categories of companies
1. Loan companies
2. Investment companies
3. Hire purchase finance companies
4. Equipment Leasing companies
5. Mutual Benefit Financial Companies
6. Housing Finance Company
7. Residuary Non-Banking companies
Non-bank financial institutions can exacerbate the fragility of the financial system.
While not all NBFIs are lightly regulated, the NBFIs that comprise the shadow
banking system are. In the run up to the recent global financial crisis, institutions
such as hedge funds and structured investment vehicles were largely overlooked
by regulators, who focused NBFI supervision on pension funds and insurance
companies. If a large share of the financial system is in NBFIs that operate
largely unsupervised by government regulators and anybody else, it can put the
stability of the entire system at risk. Weaknesses in NBFI regulation can fuel a
credit bubble and asset overpricing, followed by asset price collapse and loan
defaults.
The micro-financing sector is just beginning to pick up pace and has a suitable
20
role for NBFCs. Role in deposit mobilization and credit extension can hardly be
over-emphasized. Given India's large unorganized markets, there is a huge
demand for unsecured credit in areas where banks do not have adequate reach.
NBFCs fill this gap. Specializing in funding sectors where there is a credit gap.
In the past decade, NBFCs have played an important role in the expansion of the
consumer durables, housing and transport sectors.
The industry is now witnessing a paradigm shift, as competition is eating into the
retail finance space, which has been traditionally dominated by NBFCs. As the
traditional boundaries between different financial intermediaries blur, market
participants are merging to increase their size and reach, while distributing risk
over the large base in an attempt to survive.
1.5 FUTURE PROSPECTS OF NBFC SECTOR
21
NBFCs have been playing a very important role both from the macro economic
Perspective and the structure of the Indian financial system. NBFCs are the
perfect or even better alternatives to the conventional Banks for meeting various
financial requirements of a business enterprise. They offer quick and efficient
services without making one to go through the complex rigmarole of conventional
banking formalities. However to survive and to constantly grow, NBFCs have to
focus on their core strengths. while improving on weaknesses. They will have to
be very dynamic and constantly. Endeavor to search for new products and
services in order to survive in this ever competitive financial market.
Since NBFCs have been kept outside the purview of SARFAESI Act, a reform in
this area is quite urgently needed. A suitable legislative amendment extending
the operation of the said Act to NBFCs too would go a long way in fortifying the
faith of the investors and which in turn would greatly contribute to the growth of
this Sector. The coming years will be very crucial for NBFCs and only those who
will be able to face the challenge and prove themselves by standing the test of
time will survive in the long run.
NON-BANK INTEGRATION AND SUPERVISORY INTEGRATION
22
The banking, securities, and insurance markets have become increasingly
integrated, with linkages across the markets rapidly increasing. In response, one
of the most notable developments in financial sector regulation in the past 20
years has been a shift from the traditional sector-by-sector approach to
supervision (with separate supervisors for banks, securities markets, and
insurance companies) toward a greater cross-sector integration of financial
supervision. This had an important impact on the practice of supervision and
regulation around the globe.
Three broad models are being used around the world: a three-pillar or “sectoral”
model (banking, insurance, and securities); a two-pillar or “twin peak” model
(prudential and business conduct); and an integrated model (all types of
supervision under one roof). One of the arguably most remarkable developments
of the past 10 years, confirmed by the World Bank’s Bank Regulation and
Supervision Survey, has been a trend from the three-pillar model toward either
the two-pillar model or the integrated model. In a recent study, Melecky and
Podpiera (2012) examined the drivers of supervisory structures for prudential and
business conduct supervision over the past decade in 98 countries, finding
among other things that countries advancing to a higher stage of economic
development tend to integrate their supervisory structures, small open
economies tend to opt for more integrated supervisory structures, financial
deepening makes countries integrate supervision progressively more, and the
lobbying power of the concentrated and highly profitable banking sector acts as a
negative force against business conduct integration
1.6 CUSTOMER SATISFACTION:
23
Customer satisfaction can help business to achieve a sustainable competitive
advantage. It about understands the way a customer feels after purchasing a
product or service and, in particular, whether or not that product or service met
the customer’s expectations.
Customers primarily form their expectations through past purchasing
experiences, word-of-mouth from family, friends and colleagues and information
delivered through marketing activities, such as advertising or public relations. If
the customer’s expectation isn’t met, they will be dissatisfied and it’s very likely
they will tell others about their experience.
WHY CUSTOMER SATISFACTION IS IMPORTANT
Don’t underestimate the value of customer satisfaction. It’s becoming an
important area of competition.
A high level of satisfaction can deliver many benefits, including:
Loyalty: a highly satisfied customer is a loyal customer.
Repeat purchase: a highly satisfied customer buys more products.
Referrals: a highly satisfied customer tells their family and friends about
the product or service.
Retention: a highly satisfied customer is less likely to switch brands.
Reduced costs: a highly satisfied customer costs less to serve than a
new customer.
Premium prices: a highly satisfied customer is willing to pay more for the
product or service.
1.7 CUSTOMER SATISFACTION RESEARCH
24
Satisfaction surveys are an important method for collecting information about
how your customers think and feel about your brand, product or service.
A satisfaction survey can help you to understand the expectations of your
customers, determine whether your customers believe you are meeting those
expectations, identify new customer requirements or trends in the market and
determine what areas of your business need investment.
A good customer satisfaction survey will also help you to understand the causes
of dissatisfaction among your customers. Many businesses systematically
measure customer satisfaction through independent surveys, feedback forms,
mystery shopping and focus groups. Some third party surveys also compare the
customer satisfaction of major competitors, which allows companies to
benchmark themselves in their relevant sector.
Measuring customer satisfaction doesn’t have to be expensive. It can be as
simple as preparing a short feedback form or conducting a brief telephone
interview that asks the customer to rate the product or service on a number of
criteria.
INDICATORS OF CUSTOMER SATISFACTION
An important indicator of customer satisfaction is the customer retention rate. To
calculate our customer retention rate, we have needed to capture data about the
total number of customers and the number of customers switching brands. If we
can track this information over time, will be able to see whether you are
improving your customer retention and satisfaction.
1.8 FACTORS INFLUENCING PERCEPTION
25
Perception is the process by which an individual selects, organizes, and
interprets information inputs to create a meaningful picture the world. Perception
depends not only on the physical stimuli, but also on the stimuli’s relation to the
surrounding field and on conditions within the individual. The key point is that
perception can vary widely among individuals exposed to the same reality. One
person might perceive a fast-talking salesperson an aggressive and insincere
another, as intelligent and helpful.
Factors that influence perception:
Factors in the perceiver
Attitudes
Motives
Interests
Experience
Expectations
Factors in the situation
Time
Work setting
Social setting
Factors in the target
Motion
Size
Background
Proximity
Similarity
26
CHAPTER 2
COMPANY PROFILE
COMPANY PROFILE
27
Indiabulls is an Indian company headquartered in Gurgaon, with its presence in
the Real Estate, Infrastructure, Financial Services, Securities, Retail, Multiplex
and Power sectors. Started functioning in the stock market in 2000. Over the
years, the company has grown from strength to strength to become a major
player in India’s financial services sector.
Today Indiabulls securities limited is leading the industry as they listed NSE,
BSE, and Luxembourg stock exchange. They located offices in major cities and
placed highly expert man them.
2.1 ORIGIN OF ORGANIZATION
In middle of 1999, Mr. Sameer Gehlaut and his close IIT Delhi friend Mr. Rajiv
Rattan bought a defunct securities company with a NSE membership and started
offering brokerage services later joined by their friend Mr.Saurabh Mittal. In
December 1999, the company built one of the first online platforms in India for
offering internet brokerage services. Indiabulls Financial Services received
venture capital funding from Mr. Lakshmi Mittal & Mr. Harish Fabian.
Indiabulls Group is one of the country's leading business houses with business
interests in Power, Financial Services, Real Estate and Infrastructure.
2.2 GROWTH AND DEVELOPMENT OF THE COMPANY
28
2.2.1 TIMELINE
YEAR 2000-01
One of india’s first trading platforms was set up by Indiabulls financial services
Ltd. With the development of an in house team.
YEAR 2001-02
The service offered by Indiabulls was increased to include Equity, wholesale
debt, Mutual fund, IPO Financing and Equity Research.
YEAR 2002-2003
In this particular year Indiabulls ventured into Distribution and commodities
trading business.
YEAR 2004-05
Indiabulls came with its initial IPO in September 2004.
Indiabulls started its consumer finance business.
Indiabulls entered the indian real estate market and become the first
company to bring FDI in indian Real Estate.
YEAR 2005-06
Multi-product lending.
Become market leader in securities brokerage industry, with around 31%
share online trading.
The world’s largest hedge fund, Farallon capital and its affiliates
committed 2000 million for Indiabulls.
YEAR 2006-07
29
The steel Tycoon Mr. L N Mittal promoted LNM India intimate Venture Ltd
acquired 8.2% stake in Indiabulls credit service Ltd.
YEAR 2007-08
Credit rating of AA-
Loan book crosses Rs.10,000 cr.
Exit from unsecured personal and business loans
YEAR 2008-09
Mortgage finance focused growth plan.
Home loans to prime salaried segments
In house sales team ramp up to over 1000 employees
YEAR 2010-11
Credit rating upgraded to AA.
Retail mortgage constitutes 70% of loan book.
Balance sheet crosses Rs. 20,000 cr.
RoE: 17.2%Indiabulls
Housing Finance is bestowed with prestigious awards “People’s Choice
Award for Most Preferred Brand in Housing Finance” & “The best
Customer service” at MCHI PROPERTY 2011
30
YEAR 2011-12
Credit rating upgraded to AA+.
PAT crosses Rs.1000 cr .
Balance sheet crosses Rs. 30,000 cr
RoE: 21.9%.
YEAR 2012-13
Conversion to HFC
India’s 3rd largest HFC by loan assets
PAT Rs.1266 cr.
Balance sheet: Rs. 39,128 cr.
RoE: 25.6%
2.3 PRESENT STATUS OF COMPANY
31
The total planned capital expenditure of the Group by 2013-14 is Rs 35,000
Crore. Indiabulls Power is currently developing Thermal Power Projects with an
aggregate capacity of 5400 MW.
Business Summary
• Loans Outstanding: Rs. 34,425 Cr
(March 31, 2013) : (US$ 6.38 bn)
• Loan Book CAGR (5 years) : 26%
• Cumulative Loans given to retail Customers : 5.49 Lakh
• Cumulative Loans Disbursed till date : Rs. 71,000 Cr
(US$ 13.15 bn)
• Cost to Income Ratio (FY 2013) : 18.0%
• Profit After Tax CAGR (5 years) : 19%
2.4 OWENERSHIP PATTERN
32
CHAIRMAN, INDIABULLS GROUP
Sameer Gehlaut
Sameer Gehlaut has been the chairman of Indiabulls Group since inception. He
is also the chairman of major Indiabulls companies: Indiabulls Power, Indiabulls
Housing Finance & Indiabulls Real Estate. Under his leadership, Indiabulls Group
has grown in scale and size to a business house with strong businesses in
various sectors.
Mr Gehlaut started Indiabulls Group after working briefly with Halliburton before
returning to India. Mr Gehlaut received a B.Tech degree in Mechanical
Engineering from Indian Institute of Technology, Delhi.
INDIABULLS GROUP
Mr Rajiv Rattan - Vice Chairman
Mr Saurabh Mittal - Vice Chairman
Mr Ashok Kacker - Group President
Mr Ashok Sharma - Group CFO
Mr Ajit Mittal - Group Director
Mr Gurbans Singh - Group Director
Mr Tejinderpal Singh Miglani - Group CIO
INDIABULLS HOUSING FINANCE LIMITED
Mr Gagan Banga -CEO
Mr Ashwini Kumar Hooda - DMD
33
INDIABULLS REAL ESTATE LIMITED
Mr Narendra Gehlaut - MD
INDIABULLS POWER LIMITED
Mr Rajendra Kumar Sugandhi - CEO
Mr Mehul Johnson - President
INDIABULLS SECURITIES LIMITED
Mr Divyesh Shah - CEO
Mr Vijay Babbar - DMD
2.5 BUSINESSES:
INDIABULLS GROUP
34
Indiabulls Housing Finance Ltd. (IBHFL), wholly owned subsidiary of Indiabulls
Financial Services Ltd. (IBFSL), is a registered HFC by National Housing Bank
(NHB). Incorporated in May 2005, IBHFL is a young and an enterprising new
generation Housing Finance Company which has in these short span of years
already spread its presence through 78 branches in 57 cities across the country.
Today, Indiabulls Group has a net worth of Rs 19,320 Crore & has a strong
presence in important sectors like financial services, power & real estate through
independently listed companies and Indiabulls Group continues its journey of
building businesses with strong cash flows.
2.5.1 INDIABULLS POWRE:
35
INDIABULLS GROUP
Indiabulls Power
Indiabulls Real
Estate
Indiabulls Housing Finance
Ltd
Indiabulls Securities
Indiabulls Power currently developing Thermal Power Projects with an aggregate
capacity of 5400 MW. The first unit is expected to go on stream in Dec 2012. The
net worth of Indiabulls Power is Rs 5,507 Crore. The company has a total capital
expenditure of Rs 27,500 Crore. The company has been assigned 'BBB' rating.
2.5.2 INDIABULLS HOUSING FINANCE LTD. (IBHFL):
Indiabulls Housing Finance Ltd. (IBHFL) is India’s 3rd largest Housing Finance
Company (HFC). The company is registered as a Housing Finance Company
(HFC) and is regulated by the National Housing Bank (NHB). IBHFL is a leading
provider of home loans, loan against properties and commercial vehicle loans.
The company has a loan asset book of over Rs. 34,400 Cr and has, since
inception, disbursed over Rs. 71,000 Cr to over 5.5 lakh customers. With a net
worth of over Rs. 5,300 Cr, IHFL is one of the best capitalized companies
amongst its peer with a CRAR of 18.47% as at March 31st, 2013. Further, the
company is one of the least levered amongst its peer set with a net debt-to-equity
ratio of only 4.67. The company enjoys a credit rating of AA+.
IBHFL has 200 well-appointed and customer accessible walk-in branches spread
across the country. Company’s national and International reach is further
enhanced from tie-ups with Yes Bank and Doha Bank.
2.5.3 INDIABULLS REAL ESTATE:
36
Indiabulls Real Estate is among India's top Real Estate companies with
development projects spread across residential complexes, integrated townships,
commercial office complexes, hotels, malls, Special Economic Zones (SEZs) and
infrastructure development. Indiabulls Real Estate partnered with Farallon Capital
Management LLC of USA to bring the first FDI into real estate in the country. The
company has a net worth of Rs 7,403 Crore and has purchased prime land,
mostly in the metros and other Tier 1 cities worth Rs 4,000 Crore in government
auctions alone. Indiabulls Real Estate is currently developing 72.86 million sqft
into premium quality, high-end commercial, residential and retail spaces. The
company has been assigned 'A+' rating.
2.5.4 INDIABULLS SECURITIES:
Indiabulls Securities is one of India's leading capital markets companies
providing securities broking and advisory services. Indiabulls Securities also
provides depository services, equity research services and IPO distribution to its
clients and offers commodities trading through a separate company. These
services are provided both through on-line and off-line distribution channels.
Indiabulls Securities is a pioneer of on-line securities trading in India. Indiabulls
Securities’ in-house trading platform is one of the fastest and most efficient
trading platforms in the country. Indiabulls Securities has been assigned the
highest rating BQ-1 by CRISIL.
2.6 PRODUCT & SERVICES:
2.6.1 HOME LOANS:
37
At Indiabulls Housing Finance Limited, we support your dream of owning a home.
It becomes your partners while you lay the foundation of your dream home. It
assists you at every step and ensures that buying your perfect home is a happy
and memorable experience. While owning a house is cherished dream and an
achievement, buying a home requires long-term planning, large investment and
responsibility.
Indiabulls helps you achieve your dream by providing the best-in-class financial
help and services. While you take this momentous decision, we guide towards
everything that is best for you.
As we understand your dreams and goals, we ensure that you receive a safe and
secure home loan scheme. Our teams are attentive, careful and always receptive
to your needs and feedback. Along with the best rates and schemes from us,
multiple incentives of acquiring a home loan make your dream home a happy
reality.
2.6.2 COMMERCIAL VEHICLES LOAN:
Indiabulls Commercial Vehicle Loans offers commercial loans to a wide variety of
business owners. Through simple documentation, we provide easy loans to first
time buyers and fleet operators. We offer quick and easy loans to small and
medium operators which help them in acquiring vehicles with minimum hassles
and documentation.We support our easy to understand finance schemes with
quick completion of transactions to help you proceed with your plans swiftly. At
every step, we assure you a quick, transparent and hassle-free deal.
2.6.3 LOAN AGAINST PROPERTY
38
Indiabulls Financial Services understands how difficult it is to choose between
your aspirations to become successful entrepreneur & your personal priorities.
Indiabulls Loan against Property will take care of your financial needs while you
can concentrate on your business plan. Indiabulls Loan against Property will
guide you to understand the hidden value of your residential or commercial
property so that your small or medium sized enterprise need not feel the crunch
of working capital.
Indiabulls Loan against Property can also help you to fund your other working
capital needs such as business expansion. This loan can be as high as 65% of
the market value of your property and is available to Small to mid-sized
businesses, Partnership firms and Private Ltd or closely held companies.
2.6.4 DEMAT ACCOUNT:
The term "Demat", in India refers to a dematerialized account for individual
Indian citizens to trade in listed stocks or debentures in electronic form rather
than paper, as required for investors by the Securities and Exchange Board of
India (SEBI). In a demat account, shares and securities are held electronically
instead of the investor taking physical possession of certificates. A demat
account is opened by the investor while registering with an investment broker (or
sub-broker). The demat account number is quoted for all transactions to enable
electronic settlements of trades to take place.
Access to the demat account requires an internet password and a transaction
password. Transfers or purchases of securities can then be initiated. Purchases
and sales of securities on the demat account are automatically made once
transactions are confirmed and completed.
2.6.5 TRADING ACCOUNT:
39
An account similar to a traditional bank account, holding cash and securities, and
is administered by an investment dealer. An account held at a financial institution
and administered by an investment dealer that the account holder uses to
employ a trading strategy rather than a buy-and-hold investment strategy.
2.6.6 DERIVATIVE:
A security whose price is dependent upon or derived from one or more
underlying assets the derivative itself is merely a contract between two or more
parties. Its value is determined by fluctuations in the underlying asset. The most
common underlying assets include stocks, bonds, commodities, currencies,
interest rates and market indexes. Most derivatives are characterized by high
leverage.
2.6.7 COMMODITY TRADING:
An individual or a firm, registered with the Commodity Futures Trading
Commission that receives compensation for giving people advice on options,
futures and the actual trading of managed futures accounts. Registration for
CTAs is done through the National Futures Association, a self-regulated
organization responsible for reviewing and accepting registration
2.6.8 INITIAL PUBLIC OFFERING– IPO:
The first sale of stock by a private company to the public. IPOs are often issued
by smaller, younger companies seeking the capital to expand, but can also be
done by large privately owned companies looking to become publicly traded. In
an IPO, the issuer obtains the assistance of an underwriting firm, which helps it
determine what type of security to issue (common or preferred), the best offering
price and the time to bring it to market.
2.6.9 MORTGAGE:
40
A debt instrument that is secured by the collateral of specified real estate
property and that the borrower is obliged to pay back with a predetermined set of
payments. Mortgages are used by individuals and businesses to make large
purchases of real estate without paying the entire value of the purchase up front.
Mortgages are also known as "liens against property" or "claims on property."
2.6.10 INSURANCE:
Insurance is a form of risk management primarily used to hedge against the risk
of a contingent, uncertain loss. Insurance is defined as the equitable transfer of
the risk of a loss, from one entity to another, in exchange for payment. An
insurer, or insurance carrier, is a company selling the insurance; the insured, or
policyholder, is the person or entity buying the insurance policy. The amount to
be charged for a certain amount of insurance coverage is called the premium.
Risk management the practice of appraising and controlling risk, has evolved as
a discrete field of study and practice.
The transaction involves the insured assuming a guaranteed and known
relatively small loss in the form of payment to the insurer in exchange for the
insurer's promise to compensate (indemnify) the insured in the case of a financial
(personal) loss. The insured receives a contract, called the insurance policy,
which details the conditions and circumstances under which the insured will be
financially compensated.
2.7 FINANCIAL INFORAMATION
2.7.1 BALANCE SHEET ASSETS
Total Assets
41
As at March 31, 2013 Rs. 39,128Cr. (US$ 7.25 bn)
As at March 31, 2012 Rs. 32,225 Cr. (US$ 5.97 bn)
79%
18% 3%
GRAPH 2.1 BALANCE SHEET ASSETS
Loan Book Cash and liqued InvestmentsOther Assets
* Cash, Cash Equivalents and Investments in Liquid Debt InstrumentsUS $
amounts are converted based on the exchange rate of US $1 = Rs. 5479%
2.7.2 LOAN BOOK GROWTH
GRAPH 2.2
42
Jan-11 Jan-12 Jan-130
5000
10000
15000
20000
25000
30000
35000
40000
Total Loan Assets (Rs. Cr)
Loan sold (In preceding 12 months)
The growth in the loan book inclusive of loans sold in the previous 12
months is 25%
Loans amounting to Rs.2,397.4 were sold during they earended Mar31,
2012
Loanssold (outstanding): Rs. 3,642.6Cr.–on which spread at 3.1 % p.a. is
to be earned over the life of the loan.
43
2.8 STRENGTHS OF IBHFL
2.8.1 HOME LOAN STRENGTHS
i. In-house sourcing & collection teams.
ii. Low average loan to value ratios
iii. Emphasis on borrower cash flow stability during loan appraisal
iv. Experienced underwriting team -company has cumulatively disbursed
over Rs. 70,000 Cr since FY06
2.8.2 CORPORATE STRENGTHS
i. Stable and experienced management team
ii. Technology driven quality customer service
iii. Headroom to grow: CRAR: 18.5%; Net gearing: 4.67
iv. Steady book growth over last 15 quarters
v. Declining cost to income ratio: 18.0% (for FY13)
vi. Tailor made products
vii. Strong sales and marketing team.
44
CHAPTER 3
RESEARCH METHODOLOGY
45
METHODOLOGY
3.1 STATEMENT OF PROBLEM:
The occasion of study was to interpret the scale of factors influencing customer
satisfaction towards the services. and understanding the customers belief
regarding the products and services of Indiabulls and the company’s
performance of the same.
The objective of every company would be ensuring customer satisfaction for the
would create loyal customers. Measuring customer satisfaction is always a
challenge, as customer either would not disclose or sometimes do not assess
their satisfaction level clearly. Many times the customer can not specify the
reasons for his satisfaction.
3.2 SCOPE OF THE STUDY:
The scope of the study is to find out the factors influencing customer satisfaction
towards the services with reference to Home loans. The study covers the
different face of customer satisfaction. Data have been collected from customer
by a personal interview through questionnaire.
46
3.3 OBJECTIVES OF THE STUDY:
The following are the objectives of the study to solve the problem.
They are:
To study general profile of the customers.
To identify major factor influencing customer satisfaction for Indiabulls
services.
To know major factors for shape policy on customer’s satisfaction for
IBHFL products and services.
47
3.4 RESEARCH METHODOLOGY:
Research methodology is a way to systematically solve the research problem. It
is step-by-step methods are order to solve a particular problem. It can also be
defined as a scientific and systematic search for pertinent information on a
specific topic. It refers to a search for knowledge In fact, research is an art of
scientific investigation.
The methodology may include publication research, interviews, surveys and
other research techniques, and could include both present and historical
information. The methodology adopted for the present study was focus
discussion, interview and close observation through in-house study. Since the
project is based on action research it was necessary to build rapport to collect
intense as possible information from the Client. The main focus was to do with
the terminate satisfaction level of customer and explore the possibility of more
arrangement of information system.
Research can be define as “ Logical and systematize application of fundamentals
of science to the general and overall questions of the study, and scientific
techniques which provide precise tools, specific procedures and technical rather
than philosophical means for getting and ordering the data prior to their logial
and manipulation.”
The process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research,
interviews, surveys and other research techniques, and could include both
present and historical information. Hence the research spent considerable time
with the people who reside in nearby encompassing Bangalore city.
48
MARKET RESEARCH:
Market research is the role which likes the consumers, customers & public the
marketer through information. The action or activity of gathering information
about consumers' needs and preferences. This is used to identify & define
market opportunities & problems, generate, refine & evaluate market action;
monitor market performances & improve understanding of marketing as a
process.
TYPES OF MARKET RESEARCH
On the basis of fundamental objectives of the research, market research
projects are classified into two branches:
1. Exploratory Research
2. Conclusive Research
49
3.5 DATA COLLECTION:
3.5.1 PRIMARY DATA AND SECONDARY DATA
Primary data: Primary data is the new or fresh data collected from the
respondents through direct interview using a pre-structured questionnaire.
The Primary Data is collected through questionnaire survey to customers.
Survey conduction
Personal Interview
Group Discussion
Secondary data: Secondary data may be obtained from many sources,
including literature, industry surveys, compilations from computerized databases
and information systems, and computerized or mathematical models of
environmental processes. Information is gathered from company document,
website and books on Consumer Behavior.
The data has been collected through following method –
Books
Internet
Company website
50
Basically any research work proceeds as:
51
Define The Problem
Design The Research
Design The Data Collection Form
Specify The Sample
Collect The Data
Analyaze The Data
Present The Finding
3.5.2 QUESTIONNAIRE DESIGN:
Questionnaire Design is prepared on the basis of the following parameters.
Customers satisfaction
Customer Awareness
QUESTIONNAIRE ADMINISTRATION:
The information is gathered by administering to the customers residing is an
around Bangalore.
3.6.3 SAMPLING:
Sample size = 50 No.
3.5.4 STATISTICAL TOOLS:
For data analysis statistical tools used are simple percentage, tabulation and pie
chart
3.6 LIMITATION OF THE STUDY:
52
1. The time spent was limited due to which the exhaustive study could not be
conducted.
2. Quality of information is based on the awareness among customer.
3. In some of the cases the responses may be biased ones.
4. The study confined to the Bangalore City.
53
CHAPTER 4
DATA ANALYSIS
54
Table 4.1 Customer preferred for Financial Center
Responses Percentage
SBI 18 36
HDFC 15 30
IIFL 4 8
PNB 5 10
IBHFL 8 16
Total 50 100
36%
30%
8%
10%
16%
SBIHDFCIIFLPNBIBHFL
Graph 4.3 showing customer preferences for financial institution
Analysis & Interpretation:
From the above table it can see that out of 50 respondents 35 percent were SBI
and 31 Percent were HDFC From the table it can see that consumer mostly tend
to choose SBI and HDFC.
55
Table 4.2 Profile of Outline
Age No. Of Respondents Percentage
18-25 7 14
26-35 15 30
36-45 23 46
46 & above 5 10
Total 50 100
14%
30%46%
10%
18-2526-3536-4546 & above
Graph 5.1 showing profile of customers
Analysis & Interpretation:
From the above table it can see that majority of the respondents i.e. 46
percentages of the respondents are under the age of 36-45, 30 percentages of
the respondents are under the age of 26-35, 14 percentages of the respondents
are under the age group 18-25, and 10 percentages of the respondents are
under the age group 46 & above. From above chart we found that Indiabulls
engage the newly earners.
56
Table 4.3 Gender shared out among a group
Gender No. Of Respondents Percentage
Male 42 84
Female 8 16
Total 50 100
86%
14%
MaleFemale
Graph 4.2 showing gender distributions
Analysis & Interpretation:
From the above table it can see that out of 50 respondents 86 percent were male
and remaining 14 were female. It was found those Indiabulls customers are
mostly male.
Table 4.4 Customer awareness of regarding services
57
74%
26%
YESNo
Graph 4.4 showing Customer awareness regarding IBHFL
Analysis & Interpretation:
From the table it can see that out of 50 respondents, 74 % have aware the
IBHFL. The chart clearly shows that most of customer has strong knowledge of
Indiabulls services.
Table 4.5 Customer preference on housing loan
58
Decision Responses Percentages
Yes 37 74%
No 13 26%
Total 50 100%
Responses Percentage
SBI 8 16
HDFC 16 32
LICHFL 5 10
IBHFL 21 42
Total 50 100
Graph 4.5 showing Customer preference on housing loan
Analysis & Interpretation:
From the table it can see that majority of respondents i.e. 32% prefer HDFC for
housing loan and 42% prefer IBHFL. Chart indicates the almost all compotator
have average industry share among over.
Table 4.6 Customer perception on IBHFL
Decision Responses Percentages
59
16%
32%
10%
42%SBIHDFCLICHFLIBHFL
S.Agree 23 36%
Agree 13 36%
Not decide 0 0%
Disagree 14 28%
S.disagree 0 0%
Total 50 100%
36%
36%
28%
S.AgreeAgreeNot decideDisagreeS.Disagree
Graph 4.6 showing Customer perception on IBHFL
Analysis & Interpretation:
It was found from above chart that fair and cordial relationship between the
Customer and the Company thus perception level of Indiabulls is high. The
above table it was found that out of 50 respondents, 36 % customers have
strongly agreed that the IBHFL is best company in a Bangalore while 36 % have
agreed, 28% of disagreed
Table 4.7 Source of influence for the selection of IBHFL
Decision Responses Percentages
Friends 16 32%
60
Relatives 8 16%
Neighbors 11 22%
Advertisements 15 30%
Total 50 100%
32
1622
30
FriendsRelativesNeighboursAdvertisement
Graph 4.7 showing Source of inspiration for the selection of IBHFL
Analysis & Interpretation:
As we can see that low level of stimulation by company advertisement compare
to other factors. From the above table it was found that out of 50 respondents,
32% customers have inspired to buy the IBHFL loans through friends, 30% have
relatives, 16% have neighbors and 22% have advertisements.
Table 4.8 Regular customer to IBHFL
Decision Responses Percentages
61
Yes 23 46%
No 27 54%
Total 50 100%
46%
54%YESNO
Graph 4.8 showing regular customer to IBHFL
Analysis & Interpretation:
From the above table it can see that out of 50 respondents, 46 % of the people
are regular customers and 54% people are not regular customers to the IBHFL.
The above chart shows that half of Indiabulls customers are repetitive.
Table 4.9 Degree of customer safekeeping
Decision Response Percentage
62
s s
Yes 38 76%
No 12 24%
Total 50 100%
76%
24%
YESNO
Graph 4.9 showing degree of customer retention
Analysis & Interpretation:
From above chart found that out of 50 respondents, the customers of the IBFL
76% customers have yes and 24% have no. it shows that strong customer
association with IBHFL.
Table 4.10 Company provides better services than other company
63
Decision
Response
s
Percentage
s
S.Agree 4 8%
Agree 19 38%
Disagree 27 54%
S.disagree 0 0%
Total 50 100%
8%
38%54%
Strongly agreeAgreeDisagreeStrongly disagree
Graph 4.10 showing Company provides better services than other company
Analysis & Interpretation:
From the table it can see that out of 50 respondents, Company provides better
services than other company, 8% customers have strongly agreed while 38%
customers have agreed and 68 % have disagreed. Which shows IBHFL still not
yet met the customer need.
Table 4.11 Customer opinion on word of mouth connection
64
Decision Responses Percentages
S.Agree 13 26%
Agree 30 60%
Not decide 4 8%
Disagree 2 4%
S.disagree 1 2%
Total 50 100%
26%
60%
8%4%
2%
Strongly AgreeAgreeNot DecidedDisagreeStrongly disagree
Graph 4.11 showing Customer agreement on positive word of mouth
communication
Analysis & Interpretation:
From the above table it can see that out of 50 respondents, IBHFL have strongly
positive mouth of interchange, which is more important for company 26% have
strongly agreed and 60% have agreed.
Table 4.12 Customer perception of interest rate of IBHFL
65
Decision Responses Percentages
S.Agree 18 36%
Agree 27 54%
Not decide 4 8%
Disagree 1 2%
S.disagree 0 0%
Total 50 100%
36%
54%
8%
2%
S.agreeAgreeNot DecidedDisagreeS.disagree
Graph 4.12 showing Customer perception of interest rate of IBHFL
Analysis & Interpretation:
From the above table it has found that out of 50 respondents, 36% customers
have strongly agreed the IBHFL interest prices are low, 54% have agreed and
8% has not decided. Overall customer satisfaction with respect to responsive of
the company is good.
Table 4.13 Customer expectation with respect to IBHFL market growth
66
Decision Responses Percentages
Yes 30 60%
No 20 40%
Total 50 100%
60%
40%
YESNO
Graph 4.13 showing Customer expectation with respect to IBHFL market
growth
Analysis & Interpretation:
From the above table it can see that out of 50 respondents, 60% customers have
yes the IBHFL market will spread all over India and 40% customers have no.
Table 4.14 Years of customer association in IBHFL
67
Decision
Response
s Percentages
Less than 6 months 22 44%
6 to 12 months 13 26%
1 to 2 Years 11 22%
More than 2 Years 4 8%
Total 50 100%
44%
26%
22%
8%
Less than 6 months6 to 12 months1 to 2 yearsMore than 2 years
Graph 4.14showing Years of customer association in IBHFL
Analysis & Interpretation:
From above table it has found that out respondents, 22% are since 1 to 2 years
and 44% are customers of company less than 6 month while 26% are since 6-
12 months. The above chart shows clearly that most of customers are new
earner.
Table 4.15 Customer perception of the market share of IBHFL
68
Decision Responses Percentages
S.Agree 10 20%
Agree 26 52%
Not decide 10 20%
Disagree 4 8%
S.disagree 0 0%
Total 50 100%
20%
52%
20%
8%
S.AgreeAgreeNot decidedDisagreeS.Disagree
Graph 4.15 showing Customer perception of the market share of IBHFL
Analysis & Interpretation:
From the table it can see that out of 50 respondents, 20 % have strongly agreed
that IBHFL has highest market share in south India while 52% have agreed and
20 % have not decided and 8% disagree. Above chart shows that Indiabulls most
of customer associated in Bangalore.
Table 4.16 Type of Housing Loan the customers have taken
69
Type of Loans No. of Respondents Percentage
Home purchase Loan 15 30
Home Improvement Loan 3 6
Home Extension Loan 4 8
Home Conversion Loan 3 6
Bridge Loan 2 4
Home Construction Loan 12 24
Land Purchase Loan 11 22
30%
6%
8%6%4%
24%
22%
Home purchase loanHome improvement loanHome extension loanHome conversion loanBridge loanHome construction loanLand purchase loan
Graphs 4.16 showing Type of Housing Loan the customers have reached for
Analysis & Interpretation:
From the above table it can see that the majority of respondents i.e. 30% have
taken home purchase loan and 24 % of respondents have taken home
construction loan. Witch indicates the Indiabulls customers are more engage with
Home loans.
70
CHAPTER 5
FINDINGS
5.1 FINDINGS
71
Based on the detailed data analysis following are the major findings of the study:
From the survey it is found that 16% of respondents are preferred of
IBHFL.
From study it is found that 46 percentages of the respondents are under
the age of 36-45, 30 percentages of the respondents are under the age of
26-35.
IBHFL has 86% are male customer.
From the survey it is found that 74% of respondents are familiar with of
IBHFL.
Customer especially an appeal as IBHFL is best company in Bangalore.
From study it was found 70% of customer is not influenced by
advertisement.
It has found that 46 % of the people are periodic customers of the IBHFL.
From study found that respondent shows 86% was positive mouth of
communication.
From the study it is found that when compared to other brands, Interest
price of the IBHFL is Low.
As found in research study 20 % have strongly agreed that IBHFL has
highest market share in south India while 52% have agreed.
72
Study found that 54% of the respondents were using Home loans and only
46% of the respondents were using for other purpose.
73
CHAPTER 6
CONCLUSION &
RECOMMENDATIONS
6.1 CONCLUSION
74
Indiabulls, the any breed of domestic cattle, within few years of its formation has
established itself as a business first rate brand. The IBHFL has good system of
housing loan scheme, which helps to approval the loan as soon as possible.
The company which starts as a simple brokerage firm has now as its wings in
real estate, home loans, power, and securities. Indiabulls Housing finance ltd. is
a front runner company of the group which offers Home Loan, loan against
property, commercial vehicle loan. The loans are sometime rejected also, it is
been taken into consideration, the manager had to maintain the record of the
rejected applications. The IBHFL is very good at providing the services and gives
high amount of loan and low interest rate.
It was a great knowledge acquired and an insight in various functional aspects
from the customer prospective. The study was a unique learning experience to
link theory with the reality of the life.
6.2 Recommendations
This Project used to customer satisfaction and factors influencing to choose
services provided by the IBHFL. It was undertaken basically primary data were
collected and organized the same was analysis through tabulating and applying
75
simple statistical technique. Subsequently research finding were prepared and
documented. Based on the research findings following suggestions are made
It has been founded 36% of respondent strongly believe that IBHFL is one
of the best company offering best financial services and was found 70% of
customer is not influenced by advertisement. Hence it is suggested that
IBFL should find out the reason for their disagreement and take
appropriate look on communication gap.
Majority of the respondent (86%) are male customers who are gathering
services in IBFL. In study it is found that 46% of respondents are the age
of 36-45, which shows mismatch of segment, hence it is strongly
suggested that immediate investigative study to find out the reason for
why gender distribution and initiate immediate improvement activities
under the supervision of senior executives.
Failed to promote good and fair practices by setting minimum standards in
dealing with customer. Suggested in improvements of tailor made
products according to each and every customer.
It has been founded 54% of clients go for home loan, hence it is put
forward IBHFL higher management body, should encourage those who
are using loan for other purposes, to go for housing loan.
It has been founded that most of the people 45%-50% regular customers
of IBHFL and remaining are not and as per the study 44% customers
associated with Indiabulls from last 6 Months. Hence it is recommended
company should review and modify their promotional program to convert
non regular customers into the regular one.
76
77
BIBLIOGRAPHY
BIBLIOGRAPHY
Books:
1. Kotler Philip, Marketing Management, 13th edition, Dorling Kindersley pvt.
Ltd.
78
2. Kothari C R, Research Methodology, 2nd edition
3. Sharma Kr. Atul, Consumer Behavior
Website:
1. www.indiabulls.com
2. www.econ.worldbank.org
3. www.financial.indiabulls.com
4. www.rbi.org.in
79
APPENDIX
Questionnaire is to find out the factors influencing customer
satisfaction towards the services provided by Indiabulls.
Dear Sir/Madam
80
The student of JGI Management studies is conducting this survey, As a part of
their project in field of Market Research.
The purpose of this activity is to measure customer satisfaction towards the
services provided by Indiabulls among the potential customer of Bangalore.
Please tick the appropriate boxes and add your comments where relevant.
Name Profession
Age Sex
1 Are you aware of IBHFL offering housing loan?
A. Yes
B. No
2. Which are the financial institutions offering home loan known by you?
(a) SBI
(b) PNB
(c) SBM
(d) IBHFL
3. Which company Housing loan products do you prefer to use?
A. SBI
B. PNB
C. HDFC
81
D. IBHFL
E. None
4. In your opinion, is IBHFL best company in Bangalore?
(a) Strongly agree (b) Agree
(c) Not decided (d) Disagree
(e) Strongly Disagree
5. How did you get to know about the brand IBHFL?
(a) Print media (b) television
(c) friends/relatives (d) dealers
6. from how you come to know about IBHFL housing loan
(a) Friends (b) Relatives
(c) Advertisements (d) Neighbors
7. Are you already the customer of the IBHFL Company?
(a) Yes (b) No
8. since when you are the customer of the IBHFL company?
(a) Less than 6 months
(b) 6 to 12 months
(c) 1 to 2 years
(d) more than 2 years
82
9. You share the information with your friends and relatives.
1 Strongly agree
2 Agree
3 Disagree
4 strongly disagree
10. IBHFL company provides better services than other company.
A Strongly agree
B Agree
C Disagree
D strongly disagree
11. The word of mouth communication is more important for company.
(a) Strongly agree
(b) Agree
(c) Disagree
(d) Strongly disagree
(e) Not decided
12. Can the company expect the Positive/ favorable word of mouth
communication from you?
(a) YES (b) NO
13. In your opinion IBHFL interest prices are low?
83
(a) Strongly agree
(b) Agree
(c) Disagree
(d) Strongly disagree
(e) Not decided
14. Do you agree that the IBHFL market will grow all over INDIA?
(a) YES (b) NO
15. Which type of housing loan you taken?
(a) Home purchase loan
(b) Home improvement loan
(c) Home extension loan
(d) Home Conversion Loan
(e) Bridge Loan
(f) Home Construction Loan
(g) Land purchase loan
Thank you for completing this questionnaire. Results will be treated in
confidence.
84
