Home loans work like any other debt. That is, loans are simply specific money that we borrowfrom a bank, a private lender, or some other type of lender. Afterwards, we must repay our debtswith interest. However, unlike other types of loans, home loans are different in several respects.Owning a piece of land or property is a lifetime dream for every individua l . There are manyhome loans provider in the market. There are different types of home loan i.e. • Home Purchase Loans • Home Improvement Loans • Home Construction Loans • Home Extension Loans • Home Equity Loans • Land Purchase Loans • Bridge LoansHome purchase loans: These are the basic forms of home loans used for purchasing of anew home. With about a million home lenders and mortgage brokers it's becoming a toughchallenge as the days are progressing. But at the same time, when the sites are coming up with allthe latest tools and relevant information for us, and with all such conveniences, obtaining a home purchase loan or mortgage has become really pretty simple. However, at the same time though,we may be flummoxed to look so many attractive rates and offers in the market, not to forget thehidden costs associated with each of them. Home improvement loan: Home improvement loans are used to finance improvements andadd on to the existing set of credentials of beauty on your owned house, recently purchased property or rented accommodation. Home improvement loans are used to maintain or enhancethe value of your house. In general it includes: repairs, remodeling, energy-related items(permanent in nature), repairs, a new kitchen, a new bathroom, terrace, an extension or general property improvements. Luxury items and fireplaces are generally not eligible, though. Manyimprovements in landscape and even swimming pools are nowadays considered to be a part of home improvement. \ Home construction loan: Home construction loans are used to finance for the constructionof our newly acquired home or if we are planning to build a home. The factors include in calculations for house building costs? • Design of the house• Construction cost• Financing Cost• Buildable siteAll the above mentioned costs will help us to determine the amount we may need to borrow. For example, besides calculating the construction costs, we may also be required to consider the totalexpenditures to develop the site in order to build. Each site is unique requiring differentexpenditures so this specific rupee amount will vary from site location to site location. Payment: Before the house starts getting build, we will be required to pay a deposit to your builder as well as paying a deposit for the land if we are buying land. As work progresses youwill need to make payments to the builder. Certain loans can be structured for progress paymentsto be made during construction. Home extinction loan:

Home extension loans are used by customers to get loans from the banks to extend their houses, by adding more rooms, kitchens, wash rooms, terraces, or any other rooms for your growing family. It may also be used to enclose open balcony/terrace space, or constructing a Pujaghar. Maximum Amount of Home Extension Loans: Banks generally offers about 70-85% of the totalamount of home extension as loan. The amount of loan sanctioned also depends on a number of factors such as the age of the applicant at the time of loan, tenure of the loan, repayment capacity of the borrower; his/her credit history etc. Home equity loan: Home equity loans helps customer to encash the market value of thecommodity by taking a loan by mortgaging the property. So, Home equity loans are availed bycustomers, who wish to mortgage his/her property to the bank for taking some loan for some other purpose. Then, it's up to the bank's discretion to consider the market value of the property andaccordingly decide how much to pay to the customer. Both the residential as well as non residential property can be considered for the approval of the loan, provided the mortgager is a licensed titleholder and the land is free form any kind of dispute. Home equity loans don't restrict one to use theloan money in specific investments. It might also be used in marriage, higher education, medicalexpenses, etc. However it should not be used in any illegal or speculation purposes. Bridge loan: land purchase loan: Land Purchase loans are used by customers who wish to purchase a plot of land for commercial or residential purpose. Everyone has his/her dream perfectly sketched in his souls and so is his ambition to get his house erected on the exactlocation he dreamt that to be. If you have found and shortlisted the piece of land, and havearrived here for finance, you have come to the best place you could have arrived in the web Now, that you have decided to purchase a land as an investment or for your own dream home,you will realize that a land purchase loan is one you will cherish. Loans that are strictly for land purchase can be as scarce as good residential plots. While many lending firms around the nationcompete to provide mortgages for the purchase of a house on a lot, only local institutionstypically will be interested in lending for an empty lot.Bridge loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home. Bridge loans are used by customers as an effective vehicle to capitalize on a purchaseopportunity. It can be considered as a short term financing scheme which is generally expected to be paid back, within the range of 6-36 months, till the time the borrower gets more permanent andlower cost financing. So, bridge loans, (or swing loans as they are otherwise said) is a short term loan provided by various banks like Bank of India, Citibank, ICICI etc. often used for commercial realestate purchases, retrieve real estate from foreclosure. Bridge loans in corporate finance are calledgap financing, and are used to cover the time between redemption of issuance of one bond and itsreplacement by a new issue. They can also be operating loans for periods between LOI andacquisition, or quiet period and IPO. Bridge loan may contain a decent proportion of prepaid interest,sometimes as much as six months. If the home gets sold before that time, you may receive interest payments back, but if it hasn't sold, you may be required to continue payments

OBJECTIVES

To study the cost of home loans provided by the bank.

To know that which bank provide batter loan schemes.

To analyze the home loan scheme by ICICI and SBI banks.

To know the consumer perception about the home loan of ICICI and SBI. SCOPE OF THE STUDY : This study is analysis and comparison of home loans provided by the SBI and ICICI banks. It ishelpful in analyzing the home loan service provided to the customer and their comparison. RESEARCH METHODOLOGYDesign of Research: The research will be exploratory in nature. A population of peoples who take home loan from these banks will be considered for this study. I will try to explore about the home loans which would makea difference in the behavior of the consumer. Effort will be made to throw light on most of the factorswhich have either indirect or direct effect on the behavior of the consumer. I will also explore theimpact of home loans on the market share of the banks. Sampling plan: • Population: The study aimed to include the customers of SBI and ICICI in SHIMLA, to make a comparativeanalysis of home loan schemes of these two banks... • Sample Size: A Sample size of 100 respondents will be taken for the current study because it is not possible tocover the whole universe in the available time period. So it is necessary to take the sample size.In 100 respondents 50 respondents from ICICI and 50 from SBI. The samples will the peoples of age group lying between eighteen to thirty years. The sample will be taken in the form of strata based on age, sex, and income group. • Sampling technique: The sampling technique will be probabilistic sampling more specifically the random convenient and judgmental sampling will be used. As in probabilistic sampling the select unit for observation withknown probabilities so that statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample. I will go for stratified random sampling as we are interested to study the home loan by SBI and ICICI banks, sowe will make the strata on the basis of age, occupation, income level, gender. And from each stratawe will go for random sampling. Sources of Data: I will use primary source of data that is structured questionnaire. As these banks are established fromso many years, so many researchers have done research on this topic, so we will find secondary dataalso and also use this data for the help of this research. So, this research data will collected from the primary source and secondary source. Our method of collecting the data is from the questionnairethat will be filled by the respondent from the sample, it will be structured questionnaire.

Tools and Techniques: As no study could be successfully completed without proper tools & techniques, same with my project. For the better presentation and right explanation I used tools of statistics and computer veryfrequently and I am very thankful to all those tools for helping me a lot. Basic tools which I used for project are: -

BAR CHARTS

PIE CHARTS

TABLES Bar charts and pie charts are very useful tools for every research to show the result in a clear, simpleway. Because I used bar charts and pie charts in my project for showing data in a systematic way. SoI need not necessary for any observer to read all the theoretical detail, simple on seeing the chartsanybody that what is being said. Technological Tools:

MS -WORD

MS-EXCEL CHAPTER 2INTRODUCTION TO COMPANY:1.2 Company Profile of SBI: State Bank of India (SBI) is India's largest commercial bank. SBI has a vast domestic network of ove r 9000 br a nc he s ( a ppr oxima te ly 14% of a ll ba nk br a nc he s ) a nd c omma nds one -f if t h of deposits and loans of all scheduled commercial banks in India.The State Bank Group includes a network of eight banking subsidiaries and several non-bankingsubsidiaries offering merchant banking services, fund management, factoring services, primarydealership in government securities, credit cards and insurance. The eight banking subsidiaries are: 1-State Bank of Bikaner and Jaipur (SBBJ)2-State Bank of Hyderabad (SBH)3-State Bank of India (SBI)4-State Bank of Indore (SBIR)5-State Bank of Mysore (SBM)6-State Bank of Patiala (SBP)7-State Bank of Saurashtra (SBS)8-State Bank of Travancore (SBT)The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called theBank of Bengal) was established. In 1921, the Bank of Bengal and two other Presidency banks(Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India.In 1955, the controlling interest in the Imperial Bank of India was acquired by the Reserve Bank of India and the State Bank of India (SBI) came into existence by an act of Parliament assuccessor to the Imperial Bank of India.Today, State Bank of India (SBI) has spread its arms around the world and has a network of branches spanning all time zones. SBI's International Banking Group delivers the full range of c r os s - bor de r f ina nc e s olut ions thr ough it s f our w ings - t he D ome s t ic divis ion, t he For e ign Offices division, the Foreign Department and the International Services division.11 |P a g e

State Bank of India (SBI) (LSE:SBID) is t he la r ge s t bank inIndia. I f o n e m e a s u r e s b y t h e number of branch offices and employees, SBI is the largest bank in the world. Established in1806asBank of Calcutta , it is t he olde s t c omme r c ia l ba nk in t he Indian subcontinent. S B I provides various domestic, international and NRIproducts and services, through its vast network in India and overseas. With an asset base of $126 billion and its reach, it is a regional banking behemoth. The government nationalized the bank in 1955, with theReserve Bank of Indiataking a 60% ownership stake. In recent years the bank has focused on three priorities, 1), reducing itshuge staff throughGolden handshakeschemes known as the Voluntary Retirement Scheme,w hic h s a w ma ny of it s be s t a nd br ighte s t de f e c t t o t he pr iva t e s e c tor , 2) , c ompute r izing it s operations and 3), changing the attitude of its employees (through an ambitious programme aptlyna me d ' P a r iva r t a n ' w hic h me a ns c ha nge ) a s a la r ge numbe r of e mploye e s a r e v e r y r ude tocustomers. R O O T S : The State Bank of India traces its roots to the first decade of 19th century,when theBank of Calcutta, later renamed the Bank of Bengal, was established on2 June 1806.The government amalgamated Bank of Bengal and two other Presidency banks, namely, the Bank of Bombay (incorporated on 15 April 1840 ) a nd the Bank of Madrason27 January 1921, a nd na me d the reorganized banking entity theImperial Bank of India . All these Presidency banks had beenincorporated as joint stock companies, a nd w e r e the r e s ult of t he royal charters. The Imperial Bank of India continued as a joint stock company. Until the establishment of a central bank in India the Imperial Bank and its early predecessors served as India's central bank, at least in termsof issuing the currency. The State Bank of India Act 1955, enacted by the Parliament of India,authorized the Reserve Bank of India ,w hic h is t he central banking organizationof I ndia , t o acquire a controlling interest in the Imperial Bank of India, which was renamed the State Bank of India on30 April 1955. T I M E L I N E : • June 2,1806: TheBank of Calcutta established. • January 2, 1809: This became theBank of Bengal. • April 15, 1840:Bank of Bombayestablished. • July 1,1843:Bank of Madrasestablished. • 1861: Paper Currency Act passed. • January 27, 1921: all three banks amalgamated to form Imperial Bank of India. • J u l y 1 ,1955: S t a t e B a n k o f I n d i a f o r m e d ; b e c o m e s t h e f i r s t I n d i a n b a n k t o b e nationalized. • 1959: State Bank of India (Subsidiary Banks) Act passed, enabling the State Bank of India to take over eight former State-associated banks as its subsidiaries. • 1980sWhen Bank of Cochin in Kerala faced a financial crisis, the government merged itwith State Bank of India.12 |P a g e

• June 29, 2007: The Government of India today acquired the entire Reserve Bank of India (RBI) shareholding in State Bank of India (SBI), consisting of over 314 million equity shares at a total amount of over 355 billion rupees. A S S O C I A T E B A N K S : There are seven other associate banks that fall under SBI. They all use the "State Bank of" name followed by the regional headquarters' name. These were originally banks belonging to princely states before the government nationalized them in1959. In tune with the first Five Year P lan, emphasizing the development of rural India, the government integrated these banks withthe State Bank of India to expand its rural outreach. The State Bank group refers to the sevenassociates and the parent bank. All the banks use the same logo of a blue keyhole. Currently, thegroup is merging all the associate banks into SBI, which will create a "mega bank", and one hopes, streamline operations and unlock value. •• State Bank of Bikaner & Jaipur • State Bank of Hyderabad • State Bank of Indore • State Bank of Mysore • State Bank of Patiala • State Bank of Saurashtra • State Bank of Travancore F O R E I G N O F F I C E S : State Bank of India is present in 32 countries, where it has 84 offices serving theinternational needs of the bank's foreign customers, and in some cases conducts retail operations.The focus of these offices is India-related business. F O R E I G N B R A N C H E S : SBI has branches in these countries: • Australia • Bahrain • Bangladesh • Belgium • Canada •

Dubai • France • Germany • Hong Kong • Israel • Japan13 |P a g e U B S I D I A R I E S A N D J O I N T V E N T U R E S : In addition to the foreign branches above, SBI has these wholly owned subsidiaries and joint ventures: • Nepal State Bank Limited • SBI Mauritius • Indian Ocean International Bank (Mauritius) • SBI Canada • SBI California G R O W T H : Mumbai, India location.State Bank of India has often acted as guarantor to theIndian Government, most notably duringChandra Shekhar 's t e nur e a s Prime Minister of India . With mor e tha n 9400 br a nc he s a nd a further 4000+ associate bank branches, the SBI has extensive coverage. Following its arch-rivalICICI Bank , State Bank of India has electronically networked most of its metropolitan, urban andsemi-urban branches under its Core Banking System (CBS), with over 4500 branches beingincorporated so far. The bank has the largest ATMnetwork in the country having more than5600 ATMs [1]. The State Bank of India has had steady growth over its history, though the Harshad Mehtascam in1992marred its image. In recent years, the bank has sought to expand its overseas operations by buying foreign banks. It is the only Indian bank to feature in the top 100w or ld ba nks in t he Fortune Global 500rating and various other rankings. According to theForbes 2000listing it tops all Indian companies. F O R T U N E G L O B A L 5 0 0 R A N K I N G – 2 0 0 7 : SBI debuted in theFortune Global 500[2]at 498 in 2006. In 2007 it moved up to 495. As per fortune 500-2007 following are the data for SBI in $ million. R evenues 15,119.4. Profits1,407.3. Assets 187,547.1. Stockholders' Equity 9,786.2 G R O U P C O M P A N I E S : 14 |P a g e

SBI Capital Markets Ltd • SBI Mutual Fund (A Trust) • SBI Factors and Commercial Services Ltd • SBI DFHI Ltd • SBI Cards and Payment Services Pvt Ltd • SBI Life Insurance Co. Ltd -Banc assurance (Life Insurance) • SBI Funds Management Pvt Ltd • SBI Canada ITI N I T I A T I V E S : According to PM Network (December 2006, Vol. 20, No. 12), State Bank of Indialaunched a project in 2002 to network more than 14,000 domestic and 70 foreign offices and branches. The first and the second phases of the project have already been completed and thethird phase is still in progress. As of December 2006,over 10,000 branches have been covered. The new infrastructure serves as the bank's backbone, carrying all applications, such as theIP telephone network,ATMnetwork, Internet bankingand internale-mail. The new infrastructure has enabled the bank to further grow its ATMnetwork with plans to add another 3,000 by the end of 2007raising the total number to 8,600. As of September 20, 2007 SBI has 7236 ATMs.15 |P a g C O R P O R A T E D E T A I L S : State Bank of India is actively involved since 1973 in non-profit activity called CommunityServices Banking.State Bank of India is India's largest bank amongst all public and private sector banks operatingin India. State Bank of India owns and operates the following subsidiaries and Joint Ventures –

State Bank Of India Credit Card

State Bank Of India Online

State Bank Of India USA

State Bank Of India Services

State Bank Of India Mutual Funds

State Bank Of India Branch

State Bank Of India NRI Account B A N K I N G S U B S I D I A R I E S : •

State Bank of Bikaner and Jaipur (SBBJ) • State Bank of Hyderabad (SBH) • State Bank of Indore (SBI) • State Bank of Mysore (SBM) • State Bank of Patiala (SBP) • State Bank of Saurashtra (SBS) • State Bank of Travancore (SBT) F O R E I G N S U B S I D I A R I E S : • State bank of India International (Mauritius) Ltd. • State Bank of India (California). • State Bank of India (Canada). • INMB Bank Ltd, Lagos. N O N - B A N K I N G S U B S I D I A R I E S . • SBI Capital Markets Ltd (SBICAP) • SBI Funds Management Pvt Ltd (SBI FUNDS) • SBI DFHI Ltd (SBI DFHI) • SBI Factors and Commercial Services Pvt Ltd (SBI FACTORS) • SBI Cards & Payments Services Pvt. Ltd. (SBICPSL) J O I N T V E N T U R E S : 16 |P a g e

• SBI Life Insurance Company Ltd (SBI LIFE). A C T I V I T I E S : State Bank of India administrative structure is well equipped to oversee the large network of branches in India and abroad. The State Bank of India 14 Local Head Offices and 57 ZonalOffices are located at important cities spread throughout the country. State Bank of India has 52foreign offices in 34 countries across the globe. The Corporate Accounts Group is a Strategic B us ine s s U nit of t he B a nk s e t up e xc lus ive ly to f ulf ill t he s pe c ia lize d ba nking ne e ds of t opcorporate in the country.T H E M A I N A C T I V I T I E S O F A R E I N T O - • Personal Banking. • NRI Services.

• Agriculture. • International. • Corporate. • SME. • Domestic Treasury.17 |P a The first PEMI is payable by cheque by the end of the month in which the disbursement is madeand each subsequent PEMI at the end of every month till the commencement of EMI. In case youhave an ICICI Savings account you can also go in for the facility of Auto Debit Application Process of Home Loan The moment you decide to buy a home, you can put in your application for a home loan. Yes,you can apply for a home loan even before you have selected the property.The property need not even be in the same city where you are residing. The only condition beingthat ICICI Bank has Home Loans operations in both the cities.Should there be a change in your financial status or plans, you can withdraw your sanctionwithin 6 months of approval of your home loan.However bank is always ready to assist its customers in the event of legitimate problems. And,we might reconsider this if we find that there are satisfactory reasons for the delay.If it is refinancing you are interested in, it is possible within 6 months from the date of purchaseof property. Insurance Plans for Home Loan Introducing exclusive Home Insurance plans, that can provide cover to your Home loan in theface of any unforeseen event happening to your life. In case of any of these happenings, your family will have the support of the insurance cover to pay for the outstanding Home loan,without being burdened by the loan EMI's.ICICI Bank Home Loans presents "HomeSafePlus" & "Home Assure/Health Assure" twoexclusive and innovative insurance plans to insure your Home Loan. HomeSafePlus Key Benefits of HomeSafePlus: • No medical checkup • Comprehensive insurance plan for individual, home and its contents • Single premium long-term insurance plan • Premium paid for the Critical Illness cover is eligible for tax benefits u/s 80D of theIncome Tax Act33 |P a g e

• Sum Insured remains constant throughout the policy period (loan O/S amount to come to bank, rest goes to individual) • Multiple applicants can be covered under the same loan

• Simple application form Home Assure/Health AssureKey Benefits of Home Assure/Health Assure: • Life Cover from Home Assure for the entire home loan tenure • Critical Illness cover from life threatening illnesses like cancer, coronary artery bypass,heart attack, kidney failure, stroke, major organ transplant • Special non-medical limits only for ICICI Bank Home Loans customers • Dual benefit to customers, Life Cover from Home Assure and Critical Illness Cover fromHealth Assure • Dual tax benefits, Section 80C benefits under Home Assure, Section 80D benefits under Health Assure • Simplified claim procedure Home loan Schemes As one of the leading home loan provider, ICICI Bank understands how special building a newhome is for you and our Home Loan help you lay the foundation for your dream home.ICICI offers you the most convenient home loan plans to suit your needs. With so manyattractive features in every type of home loan we offer, creating the home you always wanted isno longer a distant dream. Some of our key benefits are: • Guidance throughout the process • Home loan amounts suited to your needs • Home Loan tenure up to 20 years • Simplified documentation • Doorstep delivery of home loan papers • Sanction approval without having selected a property. • Free Personal Accident Insurance (Terms & Conditions) • Insurance options for your home loan at attractive premium No matter what the requirement, we have an appropriate plan for you.Get the best deals, andfinance your perfect home, only from ICICI Bank. Changes in Floating Reference Rate (FRR) Interest rate on ICICI Bank Home Loans is linked to the ICICI Bank Floating Reference Rate(FRR/PLR). ICICI Bank FRR has been reduced by 50 basis points (i.e. 0.50%) with effect fromJune 04, 2009. Thus the FRR has been reduced from 13.25% to 12.75%. ICICI Bank PLR hasalso been reduced by 50 basis points (i.e. 0.50%) with effect from June 04, 2009. Thus the PLR has changed from15.25% to 14.75%.Accordingly, the Home Loan floating rate of interest has been reduced by 0.5% (50 basis points34 |P a g e

CHAPTER- 3OVERVIEW OF THE INDUSTRY:

The Banking sector is considered the most lucrative option in today’s job market. In the industry,a position in Treasury or Forex is considered right on top and this is followed by careers inPrivate Banking, Investment Banking and Retail Banking. One could work in a variety of areasin banking industry including Recurring Deposit HISTORY: 35 |P a g e

Banking in India has a long and elaborate history of more than 200 years. The beginning of thisindustry can be traced back to 1786, when the country’s first bank, Bank of Bengal, wasestablished. But the industry changed rapidly and drastically, after the nationalization of banks in1969. As a result, the public sector banks began experiencing numerous positive changes andenormous growth. Then came the much-talked-about liberalization and economic reforms thatallowed banks to explore new business opportunities and not just remain constrained togenerating revenues from mere borrowing and lending. This provided the Indian bankingscenario a remarkable facelift that only continues to get better with time. However, even today,despite the foray of foreign banks in the country, nationalized banks continue to be biggestlenders in the country. This is primarily due to the size of the banks and the penetration of thenetworks. The Indian banking system can be classified into nationalized banks, private banks andspecialized banking institutions. The industry is highly fragmented with 30 banking unitscontributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is theforemost monitoring body in the Indian Financial sector. It is a centralized body that monitorsdiscrepancies and shortcomings in the system. Industry estimates indicate that out of 274commercial banks operating in the country, 223 banks are in the public sector and 51 are in the private sector. These private sector banks include 24 foreign banks that have begun their operations here. The specialized banking institutions that include cooperatives, rural banks, etc.form a part of the nationalized banks category. Opportunities account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loanagent, loan manager, mortgage loan underwriter, loan processing officer, accountant, productmarketing and sales executive, and customer service executive among others. In the FinancialServices, some of the important jobs include that of a stockbroker who is essentially a personwho buys and sells securities on behalf of individuals and institutions for some commission.While some brokers like to practice with individual clients others work for institutions. Brokerswho work for institutional investors are often called securities traders. Many prefer to work asdealers, advisors and securities analysts. Security analysts are those who advise companies onfloatation’s of shares as they are expected to have sound knowledge of capital markets.Investment analysts are the backbone of the financial services sector. They study the financialreports of companies, assess various statistical information, profitability projections, comparefinancial results, survey the industry as a whole and on the basis of the available information, andfinally conclude to a decision. Equity Analysts do jobs similar to investment analysts andresearch the equity markets and make predictions.The home loan industry is experiencing a growth of 25% this year, as against 30% growth inhome loans earlier. Rajiv Sabharwal, senior general manager, ICICI Bank, Growth: The limit for foreign direct investment in private banks has been increased from 49% to 74%. Inaddition, the limit for foreign institutional investment in private banks is 49%. Liberalization andglobalization have created a more challenging environment in the banking sector as well as in theother segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices, capital markets, venture capitalists, etc. Research and Markets has announced theaddition of 'Indian Retail Banking, 2006' to their offering. Indian Retail Banking continues toredefine the credit growth in the country. It grew by a whopping 44.4% in 2005-06 to touch Rs36 |P a g e

Banking in India has a long and elaborate history of more than 200 years. The beginning of thisindustry can be traced back to 1786, when the country’s first bank, Bank of Bengal, wasestablished. But the industry changed rapidly and drastically, after the nationalization of banks in1969. As a result, the public sector banks began experiencing numerous positive changes andenormous growth. Then came the much-talked-about liberalization and economic reforms thatallowed banks to explore new business opportunities and not just remain constrained togenerating revenues from mere borrowing and lending. This provided the Indian bankingscenario a remarkable facelift that only continues to get better with time. However, even today,despite the foray of foreign banks in the country, nationalized banks continue to be biggestlenders in the country. This is primarily due to the size of the banks and the penetration of thenetworks. The Indian banking system can be classified into nationalized banks, private banks andspecialized banking institutions. The industry is highly fragmented with 30 banking unitscontributing to almost 50% of deposits and 60% of advances. The Reserve Bank of India is theforemost monitoring body in the Indian Financial sector. It is a centralized body that monitorsdiscrepancies and shortcomings in the system. Industry estimates indicate that out of 274commercial banks operating in the country, 223 banks are in the public sector and 51 are in the private sector. These private sector banks include 24 foreign banks that have begun their operations here. The specialized banking institutions that include cooperatives, rural banks, etc.form a part of the nationalized banks category. Opportunities account, banking officer, probationary officer, loan officer, assessor, personal loan officer, home loan officer, home loanagent, loan manager, mortgage loan underwriter, loan processing officer, accountant, productmarketing and sales executive, and customer service executive among others. In the FinancialServices, some of the important jobs include that of a stockbroker who is essentially a personwho buys and sells securities on behalf of individuals and institutions for some commission.While some brokers like to practice with individual clients others work for institutions. Brokerswho work for institutional investors are often called securities traders. Many prefer to work asdealers, advisors and securities analysts. Security analysts are those who advise companies onfloatation’s of shares as they are expected to have sound knowledge of capital markets.Investment analysts are the backbone of the financial services sector. They study the financialreports of companies, assess various statistical information, profitability projections, comparefinancial results, survey the industry as a whole and on the basis of the available information, andfinally conclude to a decision. Equity Analysts do jobs similar to investment analysts andresearch the equity markets and make predictions.The home loan industry is experiencing a growth of 25% this year, as against 30% growth inhome loans earlier. Rajiv Sabharwal, senior general manager, ICICI Bank, Growth: The limit for foreign direct investment in private banks has been increased from 49% to 74%. Inaddition, the limit for foreign institutional investment in private banks is 49%. Liberalization andglobalization have created a more challenging environment in the banking sector as well as in theother segments of the financial sector such as mutual funds, Non Banking Finance Companies, post offices, capital markets, venture capitalists, etc. Research and Markets has announced theaddition of 'Indian Retail Banking, 2006' to their offering. Indian Retail Banking continues toredefine the credit growth in the country. It grew by a whopping 44.4% in 2005-06 to touch Rs36 |P a g e

3,538 billion. This leap was despite the increase in risk weight by RBI for housing and real estateloans during August, 2005. Housing, which constitutes more than 52% of all retail loans, grew ata robust rate of 44.35% during 2005-06. In order to help banks in India to understand the marketand competition and plan

future strategies, we have just come out with an Industry Insight onIndian Retail banking - 2006 edition. This report analyses the retail banking market and itssegments in India and presents the key trends, along with issues and challenges. The report also paints a future outlook for the market. Besides it profiles 21 major players in the retail bankingspace and their strategies. Finally, it seems Reserve Bank of India's (RBI) flurry of measures torestrain the home finance market is paying off. With tightening of interest rates by the RBI and asimultaneous increase in real estate prices in a few markets, the banking sector is witnessing adecline in the growth of its home loan portfolio which has recorded the highest incrementalgrowth in home finance segment in recent past, said, “The real estate prices have become veryhigh in few markets, which has resulted in the fall in growth rates for home loans for the bankingindustry. Home loan growth has reduced to 25% from its earlier growth rate at 30% and since weare an integral part of the industry, there will be some impact on us too.” He added that the bigger impact had come from real estate prices, but obviously interest rates hikes will also havean impact. He, however, declined to disclose the bank’s current home loan growth rate. Echoinga similar view, a senior official of State Bank of India (SBI) said the home loan market isshowing some signs of slowing down. However, another major player, Housing DevelopmentFinance Corporation (HDFC) said the housing finance market for the middle class segment wasgrowing at a healthy pace. ICICI Bank is a leading home loan lender of the country with about30% market share. Retail lending comprises 70% of the total loan portfolio of the bank, of whichthe home loan lending is about 50%. In the first half of fiscal 2007, the bank experienced totalhome loan disbursements of Rs 13,400 crore. MAJOR PLAYERS :The financial sector in India has become stronger in terms of capital and the number of customers. It has become globally competitive and diverse aiming, at higher productivity andefficiency. Exposure to worldwide competition and deregulation in Indian financial sector hasled to the emergence of better quality products and services. Reforms have changed the face of Indian banking and finance. The banking sector has improved manifolds in terms of capitaladequacy, asset classification, profitability, income recognition, provisioning, exposure limits,investment fluctuation reserve, risk management, etc. TOP 10 PLAYERS IN BANKING & FINANCE 37 |P a g e

State Bank of India

HDFC bank

Citibank

ICICI Bank

Punjab

National bank

UTI Bank

Hongkong & Shanghai Banking Corp.

Kotak Mahindra Bank

Sundaram Bank

Oriental Bank of Commerce CHAPTER 4INTERPRETATION: SBI: NO.501) Wha t is your oc c upa t ion? B u s in e s s M a n 15 St ud en t0 G o v e rn m e n t E m p l o y e e s 22 Other0 Ho u se W i fe 9 38 |P a g e

State Bank of India

HDFC bank

Citibank

ICICI Bank

Punjab

National bank

UTI Bank

Hongkong & Shanghai Banking Corp.

Kotak Mahindra Bank

Sundaram Bank

Oriental Bank of Commerce

1. . Wh a t i s y o u r o c cu p a t i o n ?

nterpretation: o Total Number of Respondents was 46. :- o 0 of our Respondents was Students. o 22 of the Respondents were into government employees o 15 of our Respondents were Businessman. o 9 of our Respondents were Housewives. o None of our Respondent belonged to the category of others. o 4 respondents did not answer

2 From how many years you are associated with this bank?

nterpretation o Total Number of Respondents was 46 o 10 persons are associated less than 1 year o 24 persons are associated from 1-5 years. o 12 persons are associated from more than 5 years.

3. How do you come to know about the home loan schemes of that bank?

Interpretation o Total Number of Respondents was 46 o 18 persons came to know from newspaper

o 14 persons came to know from television o 10 persons came to know from internet o 4 persons came to know from other resources

5. 4) Are you aware of these type of home loans?

nterpretation o Total Number of Respondents was 46 o Only 4 persons know home equity loan. o Many of peoples know home construction loan. o 9 peoples know home purchase loan. o 6 peoples know home improvement loans

5) Are you aware all terms and conditions of home loans?

Interpretation o Total Number of Respondents was 46. o Many of persons know all terms and conditions of home loan i.e. 40. o 6 persons had not know properly about all terms and conditions

6) Are you satisfied with the interest rate charges by your bank?

Interpretation o Total Number of Respondents was 46 o 12 among all consumers are strongly agreed by interest rate of the bank. o 30 among all consumers are agreed by interest rate of the bank o 4 among all consumers are disagreed by interest rate of the bank

o 0 among all consumers are strongly disagreed by interest rate of the bank

7) Your bank offers which type of services?

Interpretation o Total Number of Respondents was 46. o 24 persons said that bank offer mobile banking services. o 15 said that bank offer net banking services. o Only 7 persons said that bank offer Forex banking services.

8) Do you agree that your bank loan processing is fast?

nterpretation:- o Total Number of Respondents was 46. o 8 persons strongly agree that bank home loan processing is fast. o 26 persons agree that bank home loan processing is fast. o 9 persons disagree that bank processing is fast. o 3 persons strongly disagree that bank processing is fast

9) Are you satisfied with the after home loan services provided by your bank as compared to other banks? nterpretation o Total Number of Respondents was 46 o 12 among all consumers are strongly agreed by after sale services of the bank. o 30 among all consumers are agreed by after sale services of the bank o 4 among all consumers are disagreed by after sale services of the bank o 0 among all consumers are strongly disagreed by after sale services of the bank

10) Does the cost of home loan is appropriate, according to your demand?

Interpretation o Total Number of Respondents was 46. o 33 persons said that home loan is appropriate according to their demand. o 13 persons said that home loan is not appropriate according to their demand

11) Are you satisfied with the employee behavior at the bank?

Interpretation o Total Number of Respondents was 46. o 19 persons very satisfied with the employee behavior of the bank. o 23 persons satisfied with the employee behavior of the bank. o 4 persons disagree with the employee behavior of the bank. o No one disagrees with the employee behavior of the bank

12) Does the bank give any discount upon loan services?

Interpretation o Total Number of Respondents was 46. o 40 persons said that bank give discount upon loan services. o Only 6 persons said that bank does not give any discount upon loan services

13) Are you satisfied by the time taken in sanctioning the loan?

Interpretation:- O Total Number of Respondents was 46. o 34 persons are satisfied by the time taken o 12 persons are not satisfied by the time taken

14) Have you faced any difficulty during taking the loan?

Interpretation o Total Number of Respondents was 46. o 39 persons face difficulty during taking the loan. o Only 7 persons does not face any difficulty during taking the loan.

15) Which grade you want to give of home loan schemes of the bank?

Interpretation o Total Number of Respondents was 46. o 24 persons give excellent grade of the bank. o 18 persons gave good grade to the bank. o Only 4 persons give average grade to the bank. o No none give below average grade to the bank

CONCLUSION: All the people are availing loan facility from both the banks. No. of respondents of SBI were 46 and47 of ICICI Bank. People related with SBI are more satisfied with the interest rate as compared toICICI. SBI people much know about home loans then ICICI. B oth ICICI and SBI mostly offer mobile banking services. Processing of SBI is fast then ICICI. After home loan services of ICICI isgood as compare to SBI. Peoples related with SBI is more satisfy with the employee behavior as

compared to ICICI. People are more satisfied by SBI for time taken for sanctioning the loan. From allthis I conclude that SBI bank provide good home loan services as compared to ICICI and many people are very much satisfied with SBI. LIMITATIONS Although best of the efforts were made to conduct a prefect survey but still it faces certain limitation.Following were certain limitation of this project.1. The survey was conducted only on 100 respondents.2. Some of the respondents did not answer all the questions, which could hamper the final results toa certain extent.3. The study confines itself to the respondents of SHIMLA region only. Hence findings would not berelevant to other cities.

QUESTIONNAIRE: Name____________ Qualification_________ Age 18-25 25-35 35-40 above Gender_________ 1) What is your occupation? Business man Government employee House wife Student Other 2) From how many years you are associated with this bank? Less than 1 year 1-5 More than 5 year 3) How do you come to know about the home loan schemes of this bank? News paper Television Internet Other resources 4) Are you aware of these types of home loans?Home purchase loan Home construction loan Home improvement loanHome extension loan Home equity loan Land purchase loan 5) Are you aware all terms and conditions of home loans?Yes No 6) Are you satisfied with the interest rate charges by your bank?Strongly agree AgreeStrongly disagree Disagree7) Your bank offers which type of services?Mobile banking Net banking Forex banking8) Do you agree that your bank loan processing is fast?Strongly agree Agree 71 |P a g e

Strongly Disagree Disagree9) Do you satisfy with the after home loan services provided by your bank are bestas compare to other bank?Strongly agree Agree Strongly disagree Disagree10) Does the cost of home loan is appropriate, according to your demand?Yes No11) Are you satisfied with the employees behavior at the bank?Strongly agree Agree Strongly disagree Disagree12) Does the bank give any discount upon loan services?Yes No13) Are you satisfy by the time taken in sanctioning the loan?Yes No14)Have you face any difficulty during taking the loan?Yes NoIf yes then specify___________________________ 15) Which grade you want to give of home loan schemes of your bank?Excellent GoodAverage Below averag