Project on Citi Financial

7/29/2019 Project on Citi Financial

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PROJECT REPORT

AT

CITI FINANCIAL

NS-3, AD-BLOCK, SHALIMAR BAGH, NEW DELHI-110088

A Project Report Submitted in partial fulfillment of the requirements

For the award of the degree of

Bachelor of Business Administration (Industry Integrated)

To

Madurai Kamaraj University, Madurai

By

ANKUR RASTOGI

Reg No. - A7371805

Under the guidance of

Ms. Gunjan A Rana

RAI BUSINESS SCHOOL,

A-41, MATHURA ROAD,

NEW DELHI

JUNE 2008


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PROJECT REPORT

ONCOST CUTTING

&FRAUD CONTROLLING

OF

CITI FINANCIAL

BYANKUR RASTOGI

RAI BUSINESS SCHOOL,

A-41, MATHURA ROAD,

NEW DELHI

Corporate Guide:

Mr. JAYVIJAY SINGH,

ASSISTANT MANAGER,

(PERSONAL LOAN DEPARTMENT)

CITI FINANCIAL, DELHI


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CITI FINANCIAL

MADURAI KAMARAJ UNIVERSITY

RAI BUSINESS SCHOOL

Guidance of:

Ms. Gunjan A Rana

Submitted by:

Ankur Rastogi

B.B.A II SEM

(INDUSTRY INTEGRATED)

21.06.08


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STUDENTS DECLARATION

I hereby declare that the training Report conducted at

CITI FINANCIAL, DELHI

Under the guidance

Ms. Gunjan A Rana

Submitted in partial fulfillment of the requirement for the Degree of

BACHELOR OF BUSINESS ADMINISTRATION

(Industry integrated)

TO

MADHURAI KAMARAJ UNIVERSITY, MADURAI.

Is my original work and the same has not been submitted for the award of any otherdegree/diploma/fellowship or other similar titles or prizes.

Place: DELHI Ankur Rastogi

Date: 21.06.2008 Reg. No. A7371805


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Acknowledgement

The project reports bears the imprint of those who had rendered their whole heartedsupport and encouragement without whose help this effort would be in vain. I expressmy sincere thanks to Mr. Jayvijay Singh, Assistant Manager, (Personal LoanDepartment) for giving me an opportunity to undertake the project work in CitiFinancial. Iexpress my deep sense of gratitude and sincere thanks to my project guide Mr. Naresh,Computer Program Assistant, Ms. Kokil , Computer Program Assistant, for her direction,suggestion, and information provided which were of utmost importance for thesuccessful completion of the project.

I also take the opportunity to thank all the members and staff of CitiFinancial for

assisting me in the timely completion of my project


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Training Objective

To gain the experience about a multinational company.

To be the part the company.

To become familiar with the corporate culture & attributes.

To gain knowledge about the company philosophy.

To gain practical experience in applying theoretical knowledge.

To gain knowledge about areas the company works for.

To have interaction with people at different level in the company.

To gain knowledge about the detailed working of Finance, Accounts, SecretarialDepartment of the company.

To interact with legal department of the company.

Identify ways a financial statement impacts my company.

How to undertake trend analysis and to compare against planned performance.


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History of CITI FINANCIAL

Since 1912, CitiFinancial has been helping people realize their financial goals anddreams. They are in each province and in the Yukon Territory with more than 300branches across Canada. They are part of the communities in which they serve. Their

branches are staffed with friendly, knowledgeable people who live and work right in ourneighborhood. They understand our needs and can tailor a loan solution for just aboutevery situation.

A Pioneering Beginning

They started in the U.S. when Alexander Duncan founded Commercial Credit in 1912.This company was a pioneer in the consumer finance industry. In 1916, they offered aninstallment loan program to help people purchase what was then an exciting newinvention - the automobile. That led to the development of installment buying plans forhome appliances and other consumer goods.

Growing with America

In the next decades, they acquired a major credit insurer and a casualty insurancecompany. In 1944, they organized an insurance unit that later became American Health& Life Insurance Company. In 1968, Commercial Credit became a wholly ownedsubsidiary of Control Data Corporation.

Going Public

Wall Street legend Sanford I. Weill assumed control of the operations of Commercial

Credit in 1986 and took the company public. Within two years, the company acquiredPrimerica Corporation, the parent company of several investment, financial services andinsurance firms, including the well-known Smith Barney.

Joining the Travelers Group

In 1992, Primerica purchased 27% of Travelers Insurance, a company with one of themost recognizable logos in the U.S. - the red umbrella. Less than a year later, Primericapurchased the remaining 73% of Travelers, which later adopted the name TravelersGroup. In subsequent years, Travelers Group acquired Shearson-Lehman's retailbrokerage, Aetna's property and casualty business, Security Pacific Financial Services,

and Salomon Brothers, creating the nation's third largest investment house - SalomonSmith Barney.

The Creation of Citigroup


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In 1998, Travelers Group merged with banking powerhouse Citicorp to create Citigroup,a global financial services company serving 20 million customers worldwide. Citigroup'sbusinesses include asset management, banking, credit and charge cards, insurance,investments, investment banking and trading.

An International Company with a New Name

In 1999, Citigroup purchased 128 offices of Texas-based Associates First Capital,giving us more than 1,400 offices in 45 states. They then turned their focus to Canada,buying Associates First Capital offices there. In September of that year, they changedtheir name to CitiFinancial to proudly recognize their affiliation with their parentcompany and to better reflect what they do today. In November 2000, they continuedtheir growth with the acquisition of The Associates.

As part of Citigroup, they continue to provide us with a full range of exceptional productsand services to help us find a financial solution that's right for us. Citigroup is the world's

most global financial services company whose other subsidiaries include: Citibank,Travelers Life & Annuity, Smith Barney and Primerica.

Community Involvement/Activities

Because CitiFinancial team members live and work in the neighborhoods they serve,they believe in actively participating in the community. They are committed to thebetterment of the local areas in which they do business.

The CitiFinancial Local Contributions Program is designed to help CitiFinancialbranches contribute to not-for-profit charitable organizations. They do this through

grants made available through the Citigroup Foundation.

The primary focus of the Citigroup Foundation is on education and communitydevelopment. However, the Foundation also supports the Arts and other culturalprojects.

Financial Education They support financial education because they believe access toinvestment products and capital can raise the quality of life for individuals and familiesand strengthen communities around the world. But capital must be used responsiblyand wisely, and a good financial education can help people make the most of theirmoney. The Foundation provides grants for financial education programs in three areas

-- Personal, Small Business, and Institutional -- that:

Lead to the development of assets that can help increase family stability and encouragebetter consumer habits

Deliver economic and financial education to young people to help them learn how tocreate wealth, set financial goals and make informed financial choices
http://www.citibank.com/canadahttp://www.travelersla.com/http://www.smithbarney.com/http://www.primerica.com/http://www.primerica.com/http://www.smithbarney.com/http://www.travelersla.com/http://www.citibank.com/canada


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Improve how entrepreneurs save, borrow and invest in their enterprises

Build the capacity of nonprofits by offering training on financial management

Offer university training to future leaders that increase their understanding of and ability

to manage complex financial issues

Educating the Next Generation

The Foundation seeks to improve educational opportunities in low-income communitiesthat will better prepare the next generation for life-long learning and the workforce. Inearly childhood and primary and secondary education, grants support early literacydevelopment, technology-based curriculum resources, and career and collegepreparation programs. The Foundation provides grants for teacher training andinnovative teaching strategies that increase student achievement. Programs thatenhance learning by integrating the arts into school curricula and increase student

access to leading cultural institutions are also funded. In higher education, grants aremade to improve student and curriculum development for graduate and undergraduatebusiness programs. The Foundation also provides scholarships to increase access tohigher education and to provide more opportunities for women and minorities in theworkplace

Building Communities and Entrepreneurs

Grants are made to reinforce community-led efforts to revitalize low-incomeneighborhoods in Citigroup communities worldwide. The Foundation seeks to supportcommunity development corporations, intermediary organizations and community

development financial institutions that focus on affordable housing, economicdevelopment, welfare-to-work initiatives, community infrastructure improvements, andenvironmentally sustainable growth of local economies. Grants are also made tosupport community-based health and human services programs and disaster reliefefforts.

Applications for the following will not be accepted:

a. Capital or endowment campaignsb. General organizational supportc. Religious purpose

d. Political or labor organizationse. Advertising special events, dinnersf. Fundraising activities


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PRODUCT AND SERVICES OF CITIFINANCIAL

CitiFinancial believes in "getting personal." Their goal is to understand customersneeds and help customer find the best solution. Decisions are made locally by theirmore than 13,000 CitiFinancial team members in North America who live and work in

the cities and towns they serve. No matter how big customers dream is, CitiFinancialwants to help customer find an affordable solution to help customer realize it!

CitiFinancial provides fast and affordable financing for almost every need.

If life were always predictable, managing everything including finances would be alot easier. Whether customer need a loan to consolidate customers monthly debts,funding for a home improvement project, cash for emergency repairs or money for avacation, call or visit customers local CitiFinancial branch. Chances are we may have apersonal loan to fit your budget. If customer needs a line of credit or an installment loan,theyll help customerdecide whats right forcustomer.

PRODUCT

1. PERSONAL LOAN

CitiFinancial

Personal Loans may help customer afford, what customer want most!

CitiFinancial has many success stories from people who have used their personal loansto make a difference in their lives. They call it their Balance customer Budget approachto lending. They know customer work hard for their money and juggling expenses isntalways easy. Thats why

CitiFinancial Personal Loans are perfect for customer with rates, terms, andpayments tailored to fit their needs and their budget!

Who can qualify?

If customer is over age 18*, and have established credit, customer could be approvedfor a loan. Some established credit, like a store credit card, is necessary andemployment or other steady income is required. At this time, CitiFinancial PersonalLoans are not available for business purposes. CitiFinancial specialty is extending creditfor personal, family and household purposes.
https://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.html


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It's Easy to Apply

CitiFinancial terms and payments are convenient for customer needs. Just apply nowon- line, call their toll-free number 1-800-995-2274 (between 9:00 a.m. and 6:00 p.m.Monday to Friday) or stop by customer neighborhood branch. Their customer service

representatives will be happy to help customer.

14-Day Guarantee

As a CitiFinancial customer, if, for any reason, customer changes his mind aftercustomer take out their loan, customer can return the amount customer borrowed withinfourteen days with no fee, no charges, and no hassles - guaranteed!

No Prepayment Penalty

There is no prepayment penalty on CitiFinancial's Personal Loans, so customer can pay

more than the required monthly payment if customer wishes to pay off their loan early.

2. HOME EQUITY LOAN

CitiFinancial may help customer without blowing their budget.

Customer work hard for their home, so why not put it to work for customer? Convenientterms + a lower interest rate = wise borrowing when customer take advantage ofCitiFinancials home equity loans. Unlike the interest on auto loans, credit cards, andother Personal Loans, the interest customer pay on a home equity loan is usually lower.Choose from a variety of home equity loan terms with payments designed to fit

customer budget.

Who can qualify?

CitiFinancial loans are granted on the equity of the home which customer own andcurrently live in (not on rental property) and closing costs and fees are usually includedin the loan. Calculating the value of their home and the amount of equity customer havein it is the first step. Please contact CitiFinancial for details.

It's Easy to Apply

CitiFinancial terms and payments are convenient for their needs. Just apply now on-line, call CitiFinancial toll-free number 1-800-995-2274 (between 9:00 a.m. and 6:00p.m. Monday to Friday) or stop by your neighborhood branch. CitiFinancial customerservice representatives will be happy to help customer.

3. BILL CONSOLIDATION LOAN

Let CitiFinancial simplifies customer budget and customer life.
https://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.html


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CitiFinancial may have a solution when customer bills start piling up. CitiFinancialconsolidation loan makes it easy for customer to manage customer finances.CitiFinancial will help customer pay off customer other debts and provide customer with

just one, more affordable monthly loan payment! Its that easy. One loan, one payment.

Who can qualify?

If customer is over age 18*, and have established credit, customer could be approvedfor a loan. Some established credit, like a store credit card, is necessary andemployment or other steady income is required. At this time, CitiFinancial consolidationloans are not available for business purposes. CitiFinancial specialty is extending creditfor personal, family and household purposes.

It's Easy to Apply

CitiFinancial terms and payments are convenient for customer needs. Just apply now

online, call our toll-free number 1-800-995-2274 (between 9:00 a.m. and 6:00 p.m.Monday to Friday) or stop by your neighborhood branch. CitiFinancials customerservice representatives will be happy to help customer.

14-Day Guarantee

As a CitiFinancial customer, if, for any reason, customer changes their mind aftercustomer take out their loan, customer can return the amount customer borrowed withinfourteen days with no fee, no charges, and no hassles - guaranteed!

No Prepayment Penalty

There is no prepayment penalty on CitiFinancial's consolidation loans, so customer canpay more than the required monthly payment if customer wishes to pay off their loanearly.

4. EXTRA CASH

CitiFinancial may provide instant cash when customers need it most.

CitiFinancial may lend customer the money customer needs when customer needs itmost. CitiFinancial have helped families all over the country cope with unexpected

surprises, like repair bills, kids braces and even new babies. CitiFinancial terms andpayments are convenient and flexible, and CitiFinancial application process is easy. Inmost cases, customer will have the money customer need within 24 hours.

5. CREDIT INSURANCE

CitiFinancial may help customer protect themselves and their family with creditor'sgroup insurance provided by the Triton Insurance Company and the Assurant Group
https://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/elocator/elocator.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.htmlhttps://canada.citifinancial.com/eng/eapply/eapply.html


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CitiFinancial has arranged affordable, low cost creditor's group insurance that can helpcustomerhave peace of mind in four ways

a. if customer lose their job, through no fault of their own, involuntaryunemployment insurance may pay their monthly payment for up to six months

after customer have been out of work for at least 30 days from layoff, lock out ortermination.b. ifcustomer get sick or injured and are totally disabled so customer can't work

for at least 30 days, disability insurance may pay their monthly payment for up totwelve months.

c. in the event of their death - life insurance may pay off the entire balance oftheir loan.

joint coverage available to protect their self and their co-borrower (not availablein all provinces)no medical exam to qualify

immediate coverage at the time of their loanpremiums included with their monthly loan paymentto protect their uninsured personal property against fire, lightning, theft andother perils.

Subject to the terms, conditions and maximums of the coverage detailed on thecertificate customer will receive.

HOME and AUTO SECURITY PLAN

This is a unique plan that offers protection and assistance for a variety of situationsarising in your home or your auto including:

emergency medical expense benefitAir & land ambulance/Paramedic expense benefitlocksmith service benefitlegal access benefitvacation travel serviceemergency towing and road serviceemergency living expense benefit

emergency transportation and car rental expense benefitcrime prevention kit

SERVICES OF CITIFINANCIAL

1. Provides better schemes to customer2. Provides various facilities to customer3. Suggest best possible ways to pay off the loan


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4. Helps the customer if they have any problem

Provides better schemes to customer: -CitiFinancial provides the customer loanswith the best scheme so that the customer can get the loan easily and he canrepay it back happily.

Provides various facilities to customer: - services like giving the full knowledgeabout the loan, giving the full satisfaction to the customer about the loan he isgoing to take, reminding about the payments of emi before the maturity of thedate, etc.

Suggest best possible ways to pay off the loan: - the customers are given thatmuch of facility regarding the payment of the loan, they give the best possibleemi the customer can pay off easily, they ask the customer to give only fourcheques and the ecs signed by the customer so that customer wont be getharassed to give the money to the institution, the amount will be automatically willbe deducted from the customer bank account when the date of maturity will arise.

Helps the customer if they have any problem: - if the customer is having any

problem regarding the loan which they have taken, CitiFinancial have thecustomer care service centre to solve their problem at that time only.

Current Indian Scenario

Rapid industrialization. An expanding economy. Growing aspirations. Increasedincomes. Improved lifestyles. Availability of high quality products and services. Anexpanding market

These factors have created an atmosphere conducive to rapid credit off take. While thedemand for credit has risen exponentially, there has been a parallel increase in

competition, and credit delinquencies. In such an environment, risk assessment is ofcritical importance. Not only, in deciding on what business to book and the speed atwhich a credit grantor does so, but also in determining the appropriate pricing.

Comprehensive credit information, which provides details pertaining to credit facilitiesalready availed of by a borrower as well as his payment track record, has become theneed of the hour.

CIBIL THE ANSWER

The answer took shape when the Credit Information Bureau (India) Limited (CIBIL) wasincorporated in 2000.

CIBILs aim is to fulfill the need of credit granting institutions for comprehensive creditinformation by collecting, collating and disseminating credit information pertaining toboth commercial and consumer borrowers, to a closed user group of Members. Banks,Financial Institutions, Non Banking Financial Companies, Housing Finance Companiesand Credit Card Companies use CIBILs services. Data sharing is based on thePrinciple of Reciprocity, which means that only Members who have submitted all their


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credit data, may access Credit Information Reports from CIBIL. The relationshipbetween CIBIL and its Members is that of close interdependence.

Integral Solution

The establishment of CIBIL is an effort made by the Government of India and theReserve Bank of India to improve the functionality and stability of the Indian financialsystem by containing NPAs while improving credit grantors portfolio quality. CIBILprovides a vital service, which allows its Members to make informed, objective andfaster credit decisions.

Vision and Mission

We would like to be the Catalyst in informed credit decisions, thus enabling growth incredit at better terms through being a trusted partner to credit granters by offeringinnovative solutions, empowering employees to be responsive towards changing

customer needs, and adopting international standards of technology, security andavailability of up to date information

The Benefit of Credit Bureau

Increased Credit Volumes

Credit Bureaus facilitate increased lending opportunities for credit grantors whileallowing easier access to credit for borrowers. The existence of credit bureaus in

developed countries has facilitated increased market penetration of credit (to more than66% as a percentage of GDP as compared to 3% for India) while keeping non-performing loans in check (approximately 1% of outstanding credit).

Operating Efficiencies Credit Portfolio Quality

The use of CIRs accessed from a credit bureau will enable credit grantors loan officersto accurately evaluate borrower risk by making comprehensive credit histories availableto decision makers. The CIRs will facilitate an objective and transparent assessment ofcredit applications. Concurrent borrowers and serial defaulters will be identified and

minimized early in the approval process - consequently reducing associated recoveryand write-off costs. Similarly, premium borrowers will be identified and serviced faster.Ultimately, CIRs will enable Members to judiciously mix relationship-based lending andinformation-based lending. CIRs will serve as the first level of due diligence in theappraisal of a credit application.

Speed and Cost
http://www.cibil.com/overviewin.htm


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The use of CIRs will make processing loan applications easier, faster and cheaper bysometimes eliminating the need to additionally research and verify borrower details. Theaverage loan in India is sanctioned in 2-3 days. Credit grantors using CIRs will be ableto significantly reduce this turn round time and thus have a competitive edge in themarketplace.

Differential Pricing

Owing to the lack of comprehensive credit information, all borrowers are charged aninterest rate with an assumed level of default risk. This means that all borrowers arecharged identical risk premiums regardless of their payment history and thus pay apremium that in developed countries is only applied to previously defaulting borrowers.

As credit grantors begin to use comprehensive credit information they will be able todifferentiate between good borrowers and defaulters. In an increasingly commoditizedcredit market, credit grantors will be able to use price in order to differentiate their loanproducts.

In addition, borrowers who have diligently serviced their loans in the past will be able todemand cheaper loans in the future. Past defaulters will also have an opportunity toimprove their credit histories by servicing their debt obligations in a timely fashion andthus earn access to lower interest rates.

The Indian credit industry has only recently begun to offer differential pricing to theircustomers. As the credit environment becomes increasingly competitive, CIRs will playa pivotal role in the speed and confidence with which credit grantors will be able toincrease their business volume. Hence, the use of CIRs will prove beneficial to bothcredit grantors and borrowers.

Credit Grantors

The use of CIRs will enable loan officers to make objective and informed creditdecisions quickly, competitively and cost-effectively. The use of CIRs will enable themto increase their lending volumes and improve the quality of their credit portfolios whilereducing their delinquencies and loan processing costs. This will translate into improvedprofit margins.

Borrowers

The widespread use of credit data will provide consumers with fast and easy access tothe lending resources they need while reducing operating and risk costs for creditgrantors. These reduce costs will be passed on to an extent to consumers withdemonstrated credit performance in the form of lower interest rates. This easyavailability of reasonably price credit will provide borrowers with the means to a higherstandard of living

How to improve your credit


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More credit. Better pricing. Objective assessment. These are just few of the benefits ofyour credit information report (CIR), reflecting debt obligations serviced regularly and ina timely fashion. For the first time in India, CIRs containing factual records, credithistories of borrowers are available. Credit grantors across the country can now accessreports from CIBIL in order to make quick, objective credit decisions.

When you approach a credit grantor for credit, your application will be evaluated on thebasis of your past payment history, existing credit lines and other factors such asincome and security. In this case, a good CIR is one of the best indicators of the level ofrisk you present to the credit grantor. A CIR that reflects a good past payment historymay lead to credit being granted on better terms. On the other hand, a CIR, whichindicates that a borrower has been delinquent on several occasions, could lead todenial of or extremely expensive credit.

In order to ensure a high-quality CIR, it is important to re-pay your loans on time.However, as you accrue more debt, special efforts are required to ensure this. The 'buy

now, pay later' mindset has left borrowers struggling to strike an adequate cash-flowbalance. In this scenario, it is extremely important for you to maintain appropriate,reasonable and affordable levels of credit and ensure regular and timely re-payment ofloans.

Ways to improve your credit:

Immediately establish a budget in order to control your cashoutflows.

Ensure that your income level permits an additional monthly outflowif you plan to take a loan.

Investigate your options in order to reduce your interest and other

credit related costs, e.g., refinance an outstanding loan at fixedinterest rates if there is a significant drop in interest rates or youdiscover a significantly cheaper option, etc. This will make yourdebt burden easier to manage.

Use some of your savings to repay some of your debt. Always pay on time.

Steps in giving a loanGather your information

1. Youll need the following information to complete the CitiFinancialpersonal loanonline application:

2. Your e-mail address (optional).3. Your social security number, financial and employment information: gross salary

(that is your salary before taxes and other deductions are taken out), additionalincome and expense amounts and the monthly amount of your rent or mortgage.
http://www.citifinancial.com/common/loanterms.php#grosssalaryhttp://www.citifinancial.com/common/loanterms.php#otherincomehttp://www.citifinancial.com/common/loanterms.php#otherincomehttp://www.citifinancial.com/common/loanterms.php#additionalexpenseshttp://www.citifinancial.com/common/loanterms.php#additionalexpenseshttp://www.citifinancial.com/common/loanterms.php#otherincomehttp://www.citifinancial.com/common/loanterms.php#otherincomehttp://www.citifinancial.com/common/loanterms.php#grosssalary


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4. If you have lived in your current residence for less than 3 years, youll needprevious address information for the past 3 years.

5. If you have worked in your current position for less than 3 years, youll needprevious employment history for the last 3 years.

6. Co-borrower(optional) if you choose to add a co-borrower, you will need the co-

borrowers name, social security number, address, phone number(s) andemployment history.

Apply online

Before you start your loan application process, we ask you for a small amount ofgeneral information to ensure we provide you with the correct loan application form.Then you're ready to complete your application online.

There are 4 EASY STEPS to completing the online application!

Step 1: Customize your loan applicationby answering a few general questions; well be able to customize your online loanapplication to meet your specific loan needs.

Step 2: Tell us about yourself.Here we ask you for personal information about you, such as your social securitynumber, date of birth, phone number and home address. The answers to thesequestions will help us process your loan application. Click here to learn more about howwe protect your personal information.

Step 3: Tell us about your work and finances

Here we ask you questions about your present employer, date hired or retired, dateunemployed, date disabled, work phone number, gross salary and other income. Inaddition, we ask questions about your mortgage or rent, and additional expenses. Theanswers to these questions will help us continue to process your loan application.

Youll also have the option to add yourco-borrowerinformation here if you selected theco-borrower option. You will need the co-borrowers name, social security number,address, phone number(s) and employment history.

Step 4: Review, validate and submit your application.The final step allows you to review all the information you entered to ensure the

information provided is correct. If you find an error, you can correct it. Once you havereviewed your information and are sure it is correct, you may submit your loanapplication for processing. Once the loan application is submitted, your online loanapplication is complete.
http://www.citifinancial.com/common/loanterms.php#coborrowerhttp://www.citifinancial.com/common/citigroup_privacy.phphttp://www.citifinancial.com/common/loanterms.php#datehiredhttp://www.citifinancial.com/common/loanterms.php#dateunemployedhttp://www.citifinancial.com/common/loanterms.php#dateunemployedhttp://www.citifinancial.com/common/loanterms.php#datedisabledhttp://www.citifinancial.com/common/loanterms.php#grosssalaryhttp://www.citifinancial.com/common/loanterms.php#otherincomehttp://www.citifinancial.com/common/loanterms.php#additionalexpenseshttp://www.citifinancial.com/common/loanterms.php#coborrowerhttp://www.citifinancial.com/common/loanterms.php#coborrowerhttp://www.citifinancial.com/common/loanterms.php#additionalexpenseshttp://www.citifinancial.com/common/loanterms.php#otherincomehttp://www.citifinancial.com/common/loanterms.php#grosssalaryhttp://www.citifinancial.com/common/loanterms.php#datedisabledhttp://www.citifinancial.com/common/loanterms.php#dateunemployedhttp://www.citifinancial.com/common/loanterms.php#dateunemployedhttp://www.citifinancial.com/common/loanterms.php#datehiredhttp://www.citifinancial.com/common/citigroup_privacy.phphttp://www.citifinancial.com/common/loanterms.php#coborrower


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We contact you

You'll receive an e-mail confirmation within five minutes, confirming that we receivedyour application for processing. At the same time, your application will be transferred toyour local CitiFinancial branch representative to review your individual situation and

recommend the best loan product for your needs.

A CitiFinancial representative will call you (usually within two business days) to verifythe information you provided and to ask any additional questions needed to completethe loan application process. At this time the CitiFinancial representative will inform youof your loan status.

Or if you can contact your local CitiFinancial branch office directly by using the contactinformation provided in the confirmation e-mail.

Terms and Conditions in the Agreement Letter

CitiFinancial always ask their customer to read the terms and conditions of thisagreement (Agreement) carefully. By accessing and using their web SITE AND ANYWEB pages THEREOF, we i.e. customers agree to the following terms and conditions:

(If we do not agree to the terms and conditions below, do not access CitiCapitals website and any web pages thereof.)

In this Agreement, you and your refer to persons who access CitiCapitals web siteand web pages (web pages). We, us and our refer to Citicorp Vendor FinanceLtd., CitiCapital Commercial Corporation, CitiCapital Technology Finance Ltd.CitiCapital Commercial Leasing Corporation and CitiCapital Limited and their affiliatesand subsidiaries (collectively, CitiCapital).

General

Products and services advertised on their web pages are subject to the applicableagreements governing them. Further, these products and services are only available to

Canadian residents and in those provinces and territories in Canada in which they maylegally be offered. If we access their web pages from outside of Canada, we do so onour own initiative and are responsible for compliance with applicable local, national orinternational laws.

Not all of their products and services are available in all provinces and territories inCanada. Their web pages do not constitute an offer or solicitation by CitiCapital in any
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jurisdiction where such a solicitation cannot legally be made, or to any person to whomit is unlawful to make a solicitation.

The disclaimers, terms and conditions, and limitations in this section of their web pagesare of general application and shall be read to be supplementary to any other

disclaimer, term, condition, and limitation in any other section of this web site. Theheadings in this section and this web site are only for general reference purposes.

Additional terms and conditions may apply to the products and services offered by or ontheir web sites and additional terms and conditions may be located on and apply tospecific web sites of theirs. We agree to abide by such other terms and conditions. Allterms and conditions shall be deemed severable. In the event that any provision isdetermined to be unenforceable or invalid, such provision shall nevertheless beenforced to the fullest extent permitted by applicable law, and such determination shallnot affect the validity and enforceability of any other remaining provisions. CitiCapitalwill not be deemed to have waived the exercise of any right(s) hereunder unless such

waiver is made in writing.

No Advice

The contents of their web pages are for informational purposes only and are notintended to provide specific financial, investment, accounting, tax, legal or real estateadvice. We should not act on or rely on the content of their web pages without seekingthe advice of a professional.

Trademarks, Copyrights, Other Rights

You should assume everything on their web pages is protected by and subject toapplicable copyright, trademark and patent or other intellectual property right unlessotherwise noted and may not be used except with the express written consent ofCitigroup, Inc. Certain names, products, photographs, technology, service, logos,graphics, designs, words, phrases or the like, may constitute trade names, trademarks,or service marks (collectively Trademarks) owned by Citigroup, including itssubsidiaries, affiliates or other entities. Any such right that is not expressly licensedherein is reserved by Citigroup Inc. Images of people or places displayed on their webpages are either the property of, or used with permission by, Citigroup. Use of theseimages by customers or other third parties is prohibited unless expressly permitted byCitigroup. The display of Trademarks on our web pages does not imply that a license ofany kind has been granted to anyone else. Any unauthorized use, including but notlimited to, downloading, modification, retransmission, redistribution, sale, storage in anymedium or other copying of these images or the Trademark may violate copyright laws,trademark laws, privacy laws, moral rights and other applicable regulations and statutesof Canada and other countries and is expressly prohibited. Citigroup, its affiliates andsubsidiaries, neither warrants nor represents that your use of the material displayed ontheir web pages will not infringe rights of third parties. Nothing contained on their webpages should be construed as granting by implication, estoppels or otherwise, any


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license or right to use any Trademarks displayed on this site without the writtenpermission of Citigroup or such third party that may own the Trademarks. Misuse of anyof the Trademarks, or any other content, displayed on their web pages is expresslyprohibited. No content from web pages may be posted to newsgroups, electronicbulletin boards, mail lists or incorporated into any other site without the prior, express

written consent of Citigroup.

No Warranties; Changes to Content

CitiCapital and its affiliates, subsidiaries, officers, directors, employees or agentsprovide the web pages and the content of the web pages on an as is, where is basisand do not make any express or implied warranties, representations, endorsements orconditions with respect to the web pages or the content thereof, including withoutlimitation, warranties as to merchantability, operation, non-infringement, usefulness,completeness, accuracy, correctness, reliability and fitness for a particular purpose.Further, CitiCapital does not represent or warrant that the web pages will be available

and meet your requirements, that access will be uninterrupted, that there will be nodelays, failures, errors or omissions or loss of transmitted information, that no viruses orother contaminating or destructive properties will be transmitted or that no damage willoccur to your computer system. You have sole responsibility for taking adequatemeasures to protect against such damage. CitiCapital reserves the right to change thecontents of this web site, including the privacy and legal terms, at any time without priornotice or consent. Any changes become effective immediately and may be madewithout updating their web pages. Please consult any branch of CitiCapital in Canadafor complete and up-to-date information on the products and services listed in our webpages.

No Endorsements; Links

Reference to third parties goods, services, information or opinions on their web pagesare not specifically, implicitly or expressly endorsed or approved for any parties. Linksfrom or to sites outside our web pages are meant for convenience only. CitiCapital doesnot review, endorse, approve or control, and is not responsible for, any sites linked to orfrom their web pages, the content of those sites, the third parties named therein, or theirproducts and services. Please be advised that linking to any other web site is at yoursole risk and CitiCapital will not be responsible or liable for any damages in connectionwith linking. Links to downloadable software sites are for convenience only andCitiCapital is not responsible or liable for any difficulties or consequences associatedwith downloading such software. Use of any downloaded software is governed by theterms of the license agreement, if any, which is provided with the software.

No Liability

CitiCapital is not responsible for, and will not be liable to you or anyone else for, anydamages whatsoever (including direct, indirect, incidental, special, consequential,exemplary or punitive damages) arising out of or in connection with the use of or


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inability to use their web pages or the content contained therein. CitiCapital is notresponsible or liable for any loss or damage that results from personal or confidentialmaterial sent to CitiCapital, or if CitiCapital sends such information at customersrequest, or any action or decision made by us in reliance on this web site, including, butnot limited to, its contents, any unauthorized use or reproduction of this web site, even if

CitiCapital has been advised of the possibility of these damages.

Internet E-mail

E-mail communication over the Internet is not secure or confidential and is subject topossible interception, alteration, or loss. CitiCapital does not assume any responsibilityor liability for anyone else for any damages in connection with any e-mail sent by you toCitiCapital or any e-mail sent by CitiCapital to you at your request.

Jurisdiction

The web pages on this web site as they relate to information regarding products andservices offered by CitiCapital are administered by CitiCapital from its offices in Canada.These web pages will be governed by and construed in accordance with the laws of theprovince of Ontario and the laws of Canada applicable therein, without giving effect toany principles of conflicts of laws. All disputes, actions, controversies or claims arisingout of or in connection with these web pages shall be governed by and will be submittedto the exclusive jurisdiction of the courts of the province of Ontario. You submit andattorn to the exclusive jurisdiction of these courts to finally adjudicate or determine anysuit, action or proceeding arising out of or in connection with these web pages.

Process of giving a loan to a customer

Chart to be added:Eb & Nb


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1. Sourcing of a file: an applicant searches for the financial institution for getting aloan. So, he contacts the DSA person and gives his file to him so that he canfurther give his file to the institution. DSA person than give that file to hisexecutive and charges 2.5% approx commission on every file he give to theexecutive. In sourcing the file , the document which are necessary are as follows

:

Identity proof: this can include voter ID card, pan card, ration card, passportphotocopy, etc.Residence and office proof : this basically includes that electricity bills ,telephone bills , or any other statement that shows the residence or officeaddressIncome proof : in this if an applicant is salaried than ITR or pay slip or form no.16A , SARAL is required and if an applicant is self employed than the incomestatement is required or balance sheet of the firm is required ITR he files everyyear m PAN card is must in case of self employed.

Bank statement: this shoes the latest transaction of last 3-4 months but that tooshould be regular transaction like bank pass book.

2. Reference number generation: After the file is being sourced, than the applicantsfile is given an identical number for e.g. 15214639, by which if the file needs tobe check in future than bi y that ref. no. that file can be easily seen.

3. Dedupe: in this file is checked whether the applicant has applied before inCITIFINANCIAL or not, if yes , whether he is rejected or not , and if he is rejectedthan on which code he is rejected. After analyzing according to the rejectioncodes and their cooling periods finally file is soft approved or rejected with validrejection code. There are many rejection codes of rejection i.e.

a. RPY (reject on poor banking)b. RCPV (Reject on center point verification),c. RIP(Reject on out of policy product)d. RCB(Reject on negative CIBIL)e. RDF(Reject on defaulter of other organization)f. RTVR(reject on Telephonic verification report)g. RDA(reject on defaulter of CitiFinancial)h. RMD(reject on manipulated document)i. RSCO(Reject on score band)

j. RFCU(Reject negative fraud control report)k. RSF (Reject sales feedback)l. RNC(Reject as not converted)m. ROT(Reject for other reasons), etc.

Beside all this, these rejection codes have cooling period also. According to thesecooling periods and rejections reasons one has to give decision on the file whether itis rejected or ok for further process. When Dedupe is found ok than the next step isCIBIL.


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4. CIBIL: the Credit Information Bureau India Limited. It is a program issued by RBI,which reflects the applicant loan from other financial institution or banks, likecredit cards, overdraft, etc. According to applicant repayment of loan he isprovided by a score i.e. CIBIL score. If score is found ok then it is stampedpositive else negative. The score of NB files is 751 or greater and the score of

EB file is 715 or greater. If applicant is making bounces in any of the loan. Credit,overdraft, than the CIBIL itself becomes negative. When CIBIL becomesnegative, if policy says that it can be done then overrule for negative. CIBIL canbe taken by deviations. As per policy if CIBIL is score is 751 or greater andaddress of CIBIL is same as of present applicant form address than noverification is required.

5. Verification: It can be done through CPV (Center Point Verification) at theresidence or at the office of an applicant by hiring an agency that will perform thiswork for us and for doing this work that agency is get paid .

6. Telephonic Verification Report (T.V.R): in this the staff member ofCITIFINANCIAL collect the information on phone from the customer hat what all

documents he has given for taking the loan and what all he owes and owns ,what are the emi of his previous loans , etc7. Customer interview: In this the staff member calls the customer in the branch for

the discussion and for the interview whether he is in a position to take a loan ,whether he will be able to pay back the loan on time , etc .

8. Disbursal: in this when the customer becomes fully satisfied that he will be takingthe loan , the file of the customer is than processed for the disbursal and thecheque is ready to be given to the customer .

9. Top Up: when the customer completes his 9 months of giving emi regularly withoutany bounce than the CITIFINANCIAL member called up the customer for lendinghim topup on his loan.


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Documents needed in the complete file are as follows

Mail approval Checklist CIP-P Checklist

Credit approval Sheet T.V.R. Application form PAN Card ID Proof Residence Proof Office proof Income Proof Bank statement SARAL Computation of total income ECS LETTER OF ACKNOWLEDGEMENT STAT Card Early Pay off Annexure Agreement


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Balance sheet of CitiFinancial.

Assets Jan 08 Jan 07 Jan 06

Current Assets

Cash 7,972.0 10,298.0 9,058.0

Net Receivables 7,693.0 6,152.0 5,452.0

Inventories 1,180.0 660.0 576.0

Other Current Assets 3,035.0 2,829.0 2,620.0

Total Current Assets 19,880.0 19,939.0 17,706.0

Net Fixed Assets 2,668.0 2,409.0 2,005.0

Other Noncurrent Assets 5,013.0 3,287.0 3,398.0

Total Assets 27,561.0 25,635.0 23,109.0

Liabilities and Shareholder's Equity Jan 08 Jan 07 Jan 06

Current Liabilities

Accounts Payable 11,591.0 12,432.0 10,657.0

Short-Term Debt 225.0 188.0 --

Other Current Liabilities 6,710.0 5,171.0 5,270.0

Total Current Liabilities 18,526.0 17,791.0 15,927.0

Long-Term Debt 362.0 569.0 504.0

Other Noncurrent Liabilities 4,844.0 2,836.0 2,549.0

Total Liabilities 23,732.0 21,196.0 18,980.0

Shareholder's Equity

Preferred Stock Equity 94.0 111.0 --

Common Stock Equity 3,735.0 4,328.0 4,129.0

Total Equity 3,735.0 4,328.0 4,129.0

Shares Outstanding (mil.) 2,060.0 2,226.0


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Market data of CitiFinancial.

Current Information

Last Close 02-Jun-2008 $22.79 Price/ Sales Ratio 0.73

52-Week High $30.77 Price/ Book Ratio 11.93

52-Week Low $18.13 Price/ Earnings Ratio 16.40

60-Month Beta 1.4 Price/ Cash Flow Ratio 11.28

Market Cap (mil.) $46,947.4 Return on Assets 11.1%

Shares Outstanding (mil.) 2,060.0 Return on Equity 73.1%

Dividend Rate -- Current Ratio 1.07

Dividend Yield -- Long-Term Debt/Equity 0.16

# of Institutional Holders 862 % Owned by Institutions 67.0%

Latest Short Interest Ratio 1.44 Latest Net Insider Transactions --

Growth Rates 12 Month 36 Month 60 Month

Revenue Growth 6.5% 24.2% 72.7%

EPS Growth 15.7% 9.9% 62.2%

Dividend Growth 0.0% 0.0% 0.0%


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Cash flow statement of CitiFinancial

Year End Mar 07 Mar 06 Mar 05

Cash Flow Summary

Cash and Cash Equivalents at Beginning of the year 0.00 14.21 29.68

Net Cash from Operating Activities 0.00 -1,852.09 -1,292.34

Net Cash Used In Investing Activities 0.00 -61.25 -38.90

Net Cash Used In Financing Activities 0.00 2,365.86 1,315.77

Net Inc/(Dec) In Cash And Cash 0.00 452.52 -15.47

Cash And Cash Equivalents At End Of The Year 0.00 466.73 14.21

Cash Flow From Operating Activities 200703 200603 200503

Net Profit Before tax & Extraordinary Items 0.00 273.46 202.53

Adjustment For

Depreciation 0.00 25.32 19.79

Interest(Net) 0.00 0.00 0.00

Dividend Received 0.00 0.00 0.00

P/L on Sales Of Assets 0.00 -0.15 -0.05

P/L on Sales Of Invests 0.00 0.00 0.00

Prov. & W/O(NET) 0.00 225.85 87.95

P/L In Forex 0.00 0.37 1.32

Fin. Lease & Rental Charges 0.00 0.00 0.00

Others 0.00 0.00 0.00

0.00 251.39 109.01

Op. Profit Before Working Capital Changes 0.00 524.85 311.54

Adjustment For

Trade & 0th Receivables 0.00 -22.86 -10.09

Inventories 0.00 0.37 0.53

Trade Payables 0.00 49.90 27.34

Loan & Advances 0.00 -2,187.69 -1,557.87

Investments 0.00 0.00 0.00

Net Stock On Hire 0.00 6.93 29.53

Leased Assets Net Of Sale 0.00 0.00 0.00

Trade Bills(s) Purchased 0.00 0.00 0.00

Change In Borrowing 0.00 0.00 0.00

Change In Deposits 0.00 0.00 0.00

Others 0.00 -113.22 -29.76

0.00 -2,266.57 -1,540.32

Cash Generated From/(Used In) Operations 0.00 -1,741.72 -1,228.78

Interest Paid(Net) 0.00 0.00 0.00


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Direct Taxes Paid 0.00 -110.37 -63.56

Advance Tax Paid 0.00 0.00 0.00

Others 0.00 0.00 0.00

0.00 -110.37 -63.56

Cash Flow Before Extraordinary Items 0.00 -1,852.09 -1,292.34

Extraordinary Items

Excess Depreciation W/b 0.00 0.00 0.00

Premium On Lease Of Land 0.00 0.00 0.00

Payment Towards VRS 0.00 0.00 0.00

Prior Year's Taxation 0.00 0.00 0.00

Gain On Forex Exch. Tran 0.00 0.00 0.00

Others 0.00 0.00 0.00

0.00 0.00 0.00

Net Cash Flow From Operating Activities 0.00 -1,852.09 -1,292.34

Cash Flow From Investing Activities 200703 200603 200503

Investment In Assets :

Purchased Of Fixed Assets 0.00 -40.44 -37.62

Sale Of Fixed Assets 0.00 1.30 0.73

Capital WIP 0.00 -15.20 -2.01

Capital Subsidy Recd 0.00 0.00 0.00

Financial/Capital Investment:

Purchase Of Investments 0.00 -6.91 0.00

Sale Of Investments 0.00 0.00 0.00

Investment Income 0.00 0.00 0.00

Interest Received 0.00 0.00 0.00

Dividend Received 0.00 0.00 0.00

Invest. In Subsidiaries 0.00 0.00 0.00

Loan to Subsidiaries 0.00 0.00 0.00

Investment In Group Cos 0.00 0.00 0.00

Issue Of Sh.On Acqu. Of Cos 0.00 0.00 0.00

Canc. Of Invest. In Cos Acq 0.00 0.00 0.00

Acquisition Of Companies 0.00 0.00 0.00

Inter Corporate Deposits 0.00 0.00 0.00

Others 0.00 0.00 0.00

Net Cash Used In Investing Activities 0.00 -61.25 -38.90

Cash Flow From Financing Activities 200703 200603 200503

Proceeds:

Proceeds from Iss. Of SnCap Incl Sh Prem 0.00 444.13 216.02


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Proceed from Issue Of Deb 0.00 1,438.00 1,845.00

Proceed from 0th. L Term Borr 0.00 1,537.00 558.60

Proceed from Bank Borr 0.00 0.00 0.00

Proceed from Sh Term Borr 0.00 92.43 0.00

Proceed from Deposits 0.00 0.00 0.00

Share Application Money 0.00 0.00 0.00

Cash/Cap. Investment Subsidy 0.00 0.00 0.00

Loan From A Corporate Body 0.00 0.00 0.00

Payments:

Share Application Money Refund 0.00 0.00 0.00

On Redem Of Deben 0.00 -740.35 -812.00

Of 0th L Term Borr 0.00 -621.85 -543.95

Of Sh Term Borr 0.00 0.00 -37.02

Of Fin. Lease Liabi 0.00 0.00 0.00

Dividend Paid 0.00 0.00 0.00

Shelter Assistance Reserve 0.00 0.00 0.00

Others 0.00 216.50 89.12

Net Cash Used in Financing Activities 0.00 2,365.86 1,315.77

Competitor detail

1. Bank of America:- The second-largest bank in the US by assets(behind Citigroup), Bank of America boasts the country's most extensivebranch network, with more than 6,100 locations covering some 30 states

from coast to coast. Its core services include consumer and small businessbanking, credit cards, investment banking and brokerage, and assetmanagement. In 2007 Bank of America bought U.S. Trust from CharlesSchwab for more than $3 billion and acquired Chicago-based LaSalleBank from Netherlands-based ABN AMRO for some $21 billion. Also thatyear the company made a $2 billion investment in Countrywide Financial,and in early 2008 agreed to buy the troubled company for some $4 billionin stock.


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BALANCE SHEET OF BANK OF AMERICA

Assets Dec 07 Dec 06 Dec 05

Current Assets

Cash 345,920.0 338,911.0 331,291.0

Net Receivables -- -- --

Inventories -- -- --

Other Current Assets -- -- --

Total Current Assets -- -- --

Net Fixed Assets 11,240.0 9,255.0 7,786.0

Other Noncurrent Assets 1,358,586.0 1,111,571.0 952,726.0

Total Assets 1,715,746.0 1,459,737.0 1,291,803.0

Liabilities and Shareholder's Equity Dec 07 Dec 06 Dec 05


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Current Liabilities

Accounts Payable 53,969.0 42,132.0 82,828.0

Short-Term Debt 412,524.0 358,827.0 356,924.0

Other Current Liabilities 805,177.0 693,497.0 634,670.0

Total Current Liabilities -- -- --

Long-Term Debt 219,931.0 230,009.0 115,848.0

Other Noncurrent Liabilities 77,342.0 -- --

Total Liabilities 1,568,943.0 1,324,465.0 1,190,270.0


Preferred Stock Equity 4,409.0 2,851.0 271.0

Common Stock Equity 142,394.0 132,421.0 101,262.0

Total Equity 146,803.0 135,272.0 101,533.0


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Shares Outstanding (mil.) 4,437.9 4,458.2 3,999.7

Bank of America Financial Market Data

Current Information



52-Week Low $29.34 Price/ Earnings Ratio 12.71


Market Cap (mil.) $131,892.2 Return on Assets 0.7%

Shares Outstanding (mil.) 4,452.8 Return on Equity 7.5%

Dividend Rate 2.56 Current Ratio --

Dividend Yield 256.0% Long-Term Debt/Equity 4.11

# of Institutional Holders 1,511 % Owned by Institutions 61.0%




EPS Growth (49.6%) (39.8%) (23.7%)



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2. HSBC FINANCE: - HSBC Finance (formerly Household International) is theconsumer lending arm of gigantic British bank HSBC Holdings. The company catersto middle-class clients in the US, the UK, Canada, and Ireland, with a focus onserving customers with less-than-stellar credit. Its offerings include home mortgages,automobile loans, and personal loans; the company's subprime mortgage lending

business has about 1,000 offices in more than 45 states. HSBC Finance also issuesVisa, MasterCard, American Express, and Discover credit cards, as well as private-label cards for third parties such as General Motors and the AFL-CIO. It also sellsspecialty insurance in the US and Canada.

BALANCE SHEET OF HSBC FINANCE

Assets Dec 07 Dec 06 Dec 05

Current Assets

Cash -- -- --

Net Receivables -- -- --

Inventories -- -- --

Other Current Assets -- -- --

Total Current Assets -- -- --

Net Fixed Assets -- -- --


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Other Noncurrent Assets -- -- 156,669.0

Total Assets -- 179,459.0 156,669.0

Liabilities and Shareholder's Equity Dec 07 Dec 06 Dec 05

Current Liabilities

Accounts Payable -- -- --

Short-Term Debt -- -- 0.0

Other Current Liabilities -- -- --

Total Current Liabilities -- -- --

Long-Term Debt -- -- 105,163.0

Other Noncurrent Liabilities -- -- 32,027.0

Total Liabilities -- -- 137,190.0


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Preferred Stock Equity -- -- 575.0

Common Stock Equity -- -- 18,904.0

Total Equity -- -- 19,479.0

Shares Outstanding (mil.) 0.0 0.0 0.0

HSBC Finance Financial Market Data

Current Information



52-Week Low $22.22 Price/ Earnings Ratio --


Market Cap (mil.) $288.0 Return on Assets (3.1%)

Shares Outstanding (mil.) 12.0 Return on Equity (30.5%)

Dividend Rate 1.72 Current Ratio --

Dividend Yield 172.0% Long-Term Debt/Equity --

# of Institutional Holders 5 % Owned by Institutions 12.0%




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EPS Growth 0.0% 0.0% 0.0%



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Organizational structure of CitiFinancial

Org. Structure or

Chart

Country Head Ajay Banga

M.D P.S. Jay Kumar

Business Head Rahul Soota

Division Head

Sandeep

Gambhor

Regional Manager Ritu

District Manager Gourav Taneja

Branch Manager Puja

Assistant Jayvijay Singh

Relationship

Manager Jayvijay Singh

Office Emp. Office Emp. Office Emp.


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Discussion on Training:

What all Ive done in my training?

I, Ankur Rastogi, student of BBA, have done a lot of work for a financial institutionnamed CITIFINANCAIL. This has been a great job for me to work in this institution. Thework that I have done in my training is like this

1. learnt how to source a file2. learnt how to see a file properly3. learnt how to deal with the customer4. learnt how to update the information in a system5. learnt how to process a file6. learnt how to login a file

7. learnt how to catch the matches of the file while doing the file online8. learnt how to do Dedupe a file9. learnt how to make the file complete10. learnt how to do the tellicalling11. learnt how to do a telephonic verification report12.Visit to other branches of CITIFINANCIAL such as KARAMPURA branch.

What is the experience of my work?

The experience of my work was too good and marvelous. It was the first day of my trainingwhen I was introduced to everyone in the company by my head and started learning what all

I have to do in my training with the prescreening of files. It means that I start seeing the fileswhether that files are completed or not.

The days pasted and the training goes on smoothly and Ive learnt many things these monthslike how to prescreen a file, sourcing a file, processing of a file, updating of information on

system of a file, dong login, online, Dedupe, deal with the customer, calling, doing T.V.R.

and visit to different branches was the most interesting work I like, Doing sourcing was the

most difficult but interesting part of all these. I have been through all of these processesunder the guidance of different staff member. Working with CitiFinancial is a great

experience and this experience will help me a lot in the future if I take any loan from any

institution in future.

What all Ive contributed to the company?

As in training Ive learnt a lot of what is CitiFinancial all about, in what this co. is, etc.

CitiFinancial deals in giving the loan to the customer who are in need. What Ive done in this

co. in my training session was learning the process of giving a loan. I render my services tothis company wholeheartedly and tried to get as much as I can from this company. I learnt

how to deal with the customers; I render my services in completing the files whose cheque


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were to be disbursed to the customer. I spent my time in learning how to update the

information n system, how to login, online, how to make an M.I.S., Dedupe and take a CIBIL

of the file. I did the work hardly and wholeheartedly in the company which gives me a lot ofexperience in that span if time spent.

Summary or Learning Experience:

In the CitiFinancial what all Ive done are as follows:

1. I learnt what is the process of giving a loan2. What are the terms and condition of giving a loan?3. What are the criteria of giving a loan to a person?4. I learnt how to deal with the customer5. I learnt how to do prescreening, sourcing, processing, T.V.R., online, Dedupe, login.

Etc of a file.6. The experience of my learning is very much exciting as well as knowledgeable. Sothis was the summary of my learning in CitiFinancial.

Cost cutting

The reduction of the amount of money spent on the operations of an organization or onthe provision of products and services. Cost-cutting measures such as budgetreductions, salary freezes, and staff redundancies may be taken by an organization at atime of recession or financial difficulty or in situations where inefficiency has beenidentified. Alternative approaches to cost-cutting include modifying organizational

structures and redesigning organizational processes for greater efficiency. Excessivecost-cutting may affect productivity and quality or the organization's ability to add value.

Citigroup Chairman and Chief Executive Charles Prince said Monday he would releasedetails of cost-cutting steps later this week, including the consolidation of some

operations and moving others to lower-costlocations.


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In a memo to employees made available to The Associated Press, Prince said the cutswere aimed at eliminating expenses while advancing our core strategic growthobjectives. The process, he said, Has been and will be challenging.He sketched broad outlines of the overhaul, but said specifics would be released at a

Web conference Wednesday. Prince indicated the cutbacks would be throughoutCitigroups operations Worldwide. Citigroup, the nations largest financial institution, hasmore than 327,000 workers in more than 100 countries.Media reports about the financial review, which has been under way since the fourthquarter, have said 26,000 workers could lose their jobs or be reassigned.Cost savings could approach $2 billion a year, they said.

Shares of CitigroupCitigroup IncC20.06 -1.16 -5.47%NYSE

[C 20.06 -1.16 (-5.47%) ]declined.In the memo, Prince said: "We will consolidate certain back-office, middle-office andcorporate functions at the business, regional and headquarters levels to eliminateduplication of effort and focus, instead, on building truly efficient, world-class businessoperations with scale."Prince also said some operations would be moved "to lower-cost locations." And, hesaid, there would be continuing efforts aimed at "rationalizing our technology platformsto operate more efficiently and effectively."Prince has been under pressure to get a handle on the bank's burgeoning expenses,which grew 15% last year, twice the pace of revenue growth.

John McCune, director of Banking Research at SNL Financial, a research firm based inCharlottesville, Va., said Citigroup's efficiency ratio - its operating expenses divided byrecurring income - had been moving in the wrong direction.The ratio, which he said represented "how much it cost you to make money," rose from60% at the end of 2005 to 66% a year later. Cost-cutting, he added, is "the classicreaction to improve efficiencies."Will it be enough? "I don't know if the Street is ever satisfied," McCune said of WallStreet analysts and investors. "But it is a step in the right direction."
http://www.cnbc.com/id/15837290/Chttp://www.cnbc.com/id/15837290/Chttp://www.cnbc.com/id/15837290/C


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The disclosure about Citigroup's overhaul came as the bank announced it will purchasethe bank of Overseas Chinese, a mid-sized Taiwanese bank, for $425 million in the U.S.financial group's latest expansion in Asia.Last month, Citigroup announced it was launchingtakeover bid worth up to $13.3 billionfor Japan's Nikko Cordial, the country's third-largest brokerage.

In December, Citigroup acquired an 85.6% stake in the southern China-basedGuangdong Development Bank for $3.1 billion.Prince wants to boost the bank's international business to contribute to 60% to totalrevenue, up from the current 45%.

Cost involved in each step:

1. The cost which occurs while doing the sourcing of the file is comes out to beapprox Rs 1000/file i.e. this includes the cost of the file which comes through theDSA person and their executive.

2. The cost that occurs while doing the online, generating the reference number and

the Dedupe of the file is the cost of the computer being used to check the file ofan applicant.3. The cost that occurs while doing the verification is Rs 300/ file approx that

include the cost of the person who goes for the verification to the customerresidence or as per the case may be.

4. The cost that occurs while doing the T.V.R. i.e. telephonic verification reportcomes out to be Rs 10-12/ file and the telephone being used for doing theverification on the phone with the customer.

5. The cost which occurs while sending the file for having the file stamped by theF.C.U. staff member who check that the file is ok or not and the cost is Rs300/file.

6. The cost which comes out to be when the file is send to the GKC is Rs 5-10/document attached to the file.

7. The fixed cost that is to be given by the company is the rent of the premisesbeing used, telephone being used, electricity being used, computer being usedand salary of each employee in a company.

Steps involved in cost controlling:

1. The information collected should be 100% correct2. Verification should be done only once3. There should be a proper training given to each and every employee according

to their field so that whatever they do should be correct and perfect4. The CIBIL should be done only once because if do it many times it will cost moreand the cost of CIBIL IS APPROXIMATE Rs 30-35 per CIBIL done per time

5. File should be completed properly so that at the time of disbursal head office tothe branch for the completion of pendency. This will increase the cost of dox boygoing up and down to take the file back, etc.

6. There should not be such policy in a company due to which cost can riseunnecessarily.
http://www.cnbc.com/id/17584116/site/14081545/http://www.cnbc.com/id/17584116/site/14081545/http://www.cnbc.com/id/17584116/site/14081545/http://www.cnbc.com/id/17584116/site/14081545/http://www.cnbc.com/id/17584116/site/14081545/http://www.cnbc.com/id/17584116/site/14081545/


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Fraud controlling

Fraud controlling is a process made to control the fraud and fake document provided bythe applicant e.g. identity proof, residence proof, income proof , and bank statement, for

this fraud checking of documents is done by F.C.U. agency.Fraud check is done in two ways:

1. Internet check of documents2. Checking from concern offices: PAN Card, ITR , form 16 are verified from ITO ,.

Banks statement are checked from their banks

Various tools for checking the fraud are1. DEDUPE2. T.V.R(Teliphonic Verification Report)3. C.P.V. (Centre Point Verification)4. F.C.U. ( Fraud Control Unit)

5. G.K.C. (Ghosh and Khanna company)

Steps involved in controlling the fraud:

1. File should be checked or stamped by the Fraud Control Unit member (F.C.U.) orby the F.R.M. members only, which shows that this file is ok and can beprocessed further.

2. There are certain tools for controlling the fraud i.e. DEDUPE, TelephonicVerification Report (TVR), Centre Point Verification (CPV), Fraud Control Unit(FCU), Gosh and Khanna Company (GKC). Through these tools an applicant can

be judged very easily whether he is doing any fraud or has given any fakedocument or not.

3. File should be checked by the company named Ghosh and Khanna company(GKC) which collects the information which is given by an applicant, from thedifferent department like applicant has given a electricity bill so GKC will conformthe BESE department whether this bill contains the name of an applicant and theaddress which n applicant has given in the file , etc

The cost involved in each step: -

1. While sourcing the file the cost comes round about Rs 1000/ file

2. While doing online, Dedupe and reference number generation the cost whichcomes is only of the computer being used throughout the day.

3. While doing CIBIL the cost which comes is round about Rs 30/ file4. While doing T.V.R. the cost which comes is only the phone being used

throughout the day.5. While doing the verification the cost which comes to be is round about Rs 50-100

as per the agency the company hires.


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6. While doing the Centre Point Verification (C.P.V) the cost which comes out to beis Rs 50-55 only per visit of the agency boy.

7. While doing the Fraud Control Unit (F.C.U) and F.R.M. the cost is Rs 300 per file.8. While sending the file to G.K.C. the cost which comes out to be is Rs 5-10 per

document.

9. The cost which is also involved in giving the salary to employee, DSA person,their conveyance and incentive etc that is fixed and is to be given by thecompany.

10. The cost which is fixed and is to be given by the company compulsorily is therent of the company office, electricity being used, telephone being used, officemaintenance of the company, etc.

GROWTH AND DEVELOPMENT OF THE COMPANY

Diluted EPSAmount in million

Return on Equity

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

$4.00

$4.50

2001 2002 2003 2004 2005 2006


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0.00%

5.00%

10.00%

15.00%

20.00%

25.00%

2001 2002 2003 2004 2005 2006

average 19.4%


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FREQUENTLY ASKED QUESTIONS (FAQs)

1. General Information2. Product and Services3. CITIFINANCIAL Accounting Information

4. Loan Application5. Security and Privacy6. P3P(Platform for Privacy Preferences )7. Credit Related issues8. Solicitation List9. Fraudulent Email

General Information

Que: How can I obtain investment information about CitiFinancial?

Ans: CitiFinancial is a member of Citigroup. To obtain annual reports, investment andother financial information about Citigroup.

Que: Can I buy a house using a loan from CitiFinancial?Ans: Although CitiFinancial doesn't offer purchase money for a first-mortgage,CitiFinancial Mortgage offers purchase money for first mortgage loans.

Que: Can I buy a new car using a loan from CitiFinancial?Ans: CitiFinancial Auto Credit, Inc, our sister company, offers auto financing.

Que: Can I buy a used car using a loan from CitiFinancial?Ans: Yes! You can use a CitiFinancial Personal Loan to buy a used car.

Que: What is the best way to view the CitiFinancial Web Site?Ans: For optimum performance, CitiFinancial recommends that you viewwww.citifinancial.com with JavaScript turned on. See below for browser specificinstructions on how to turn on your JavaScript.

To Enable JavaScript in Netscape;

-- Click on the Edit Menu and then click Preferences

Click Advanced and choose Scripts & Plug-in

Ensure that Navigator is checked under the heading "Enable JavaScript for"

Also ensure that you have all items checked under the heading "Allow webpage to:"To Enable JavaScript in Internet Explorer;


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-- Click on the Tools Menu and then click Internet Options

Select the Security Tab and click on Custom Level

Scroll down and ensure that all "Enable" options are selected under the heading

"Scripting"

Product and Services

Que: How do I get the payoff amount for my loan?Ans: Please contact the local CitiFinancial Branch Office that manages your accountand they will provide you with an accurate payoff amount.

Que: Will I get a refund for the early pay off of my personal loan?Ans: It depends on the type of loan (interest bearing or pre-computed) and the chargesincluded in your loan. If you have unearned interest and/or other charges, these will be

deducted from your remaining balance and the net result is the payoff amount you arequoted. If you have interest due, it will be added to and included in the payoff amountyou are quoted. Please contact your local CitiFinancial Branch office for moreinformation about your personal loan.

Que: Can I pay my bill by phone or over the Internet?Ans: Currently CitiFinancial does not accept payments by phone or the Internet.

Que: Since CitiFinancial purchased my account, will the terms stay the same orchange?

Ans: Everything will stay the same. The only thing that has changed is the name of thelender.

Que: How do I change my name and address on my CitiFinancial account?Ans: Please contact your local CitiFinancial Branch office and inform a representative ofyour changes to have your records updated.

Que: I just moved to another state and want to renew my loan with CitiFinancial. Can Icall my old office?

Ans: No, we generally do not lend across state lines. Please contact the nearestCitiFinancial office in your new area and someone will be able to help you. Call 800-995-2274 to be connected to the closest CitiFinancial branch office or use the onlineBranch Locatorto find a CitiFinancial branch in your area.
http://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/branchlocator/branchlocator.php


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Loan application

Que: What is CitiFinancial's Privacy Promise?Ans: Your privacy is important to CitiFinancial. This is why, as a member of Citigroup,we are committed to the Citigroup Privacy Promise for consumers. Click here to view

ourPrivacy Promise.

P3P (Platform for Privacy Preferences)

Important message for Microsoft's Internet Explorer (IE6) and Windows XP users:

If your browser has blocked cookies or has changed the functionality of the cookies, awarning symbol, displaying a small "eye" with a red circle, will appear at the bottom ofyour computer screen. This warning should be located right next to the lock icon thatindicates you are using a secure site.

Here's how to find out which cookies are accepted or blocked:The privacy icon will appear in the status bar each time a cookie is restricted based onyour privacy settings.

Que: How do I learn more about credit and how to use it wisely?Ans: Credit is such an important part of life. CitiFinancial wants to help you understandthe basics of credit and how to use it wisely. The information in the All about Creditsection is designed to help you understand and use credit to your advantage. Click hereto learn more about Credit and how to use it wisely.

Solicitation ListRemove Name from Solicitation ListReceived an OfferInvitation to Apply OfferPre-Approved Offer

Que: How do I remove my name from your solicitation list?Ans: Click here to select your solicitation preferences and we will remove your nameand address from the CitiFinancial database.

Que: Why did I receive an offer in the mail from CitiFinancial?Ans: We send offers to many households, using mailing lists we've purchased fromreputable vendors. Our offers do not put you under any obligation.

Que: I received an "invitation to apply" solicitation in the mail. Does this mean I'm pre-approved?

Ans: No. An invitation to apply simply means we received your name from a reputable
http://www.citifinancial.com/common/citigroup_privacy.phphttp://www.citifinancial.com/resourcecenter/allaboutcredit.phphttp://www.citifinancial.com/resourcecenter/allaboutcredit.phphttp://www.citifinancial.com/resourcecenter/allaboutcredit.phphttp://www.citifinancial.com/faq/faq_mailinfo.php#1#1http://www.citifinancial.com/faq/faq_mailinfo.php#2#2http://www.citifinancial.com/faq/faq_mailinfo.php#3#3http://www.citifinancial.com/faq/faq_mailinfo.php#4#4https://secure.citifinancial.com/forms/dn_solicit.phphttps://secure.citifinancial.com/forms/dn_solicit.phphttp://www.citifinancial.com/faq/faq_mailinfo.php#4#4http://www.citifinancial.com/faq/faq_mailinfo.php#3#3http://www.citifinancial.com/faq/faq_mailinfo.php#2#2http://www.citifinancial.com/faq/faq_mailinfo.php#1#1http://www.citifinancial.com/resourcecenter/allaboutcredit.phphttp://www.citifinancial.com/resourcecenter/allaboutcredit.phphttp://www.citifinancial.com/resourcecenter/allaboutcredit.phphttp://www.citifinancial.com/common/citigroup_privacy.php


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mailing list and anticipate that you will qualify for a loan, but we have not checked yourcredit and will not do so unless you apply for a loan. Apply Online Today!

Que: Why do you send out pre-approved offers and then deny the loan?

Ans: The offer you received has several conditions that must be met in order for you tobe pre-approved. One of those conditions is that you are a homeowner and you residein the home you own. You may contact your local CitiFinancial Branch Office for moredetails.

Security and Privacy

How to tell if an e-mail is legitimatehow to report fraudulent e-mails

Que: How can I tell if an e-mail that appears to be from Citi is legitimate?

Ans: When receiving an e-mail, remember the following:

would never ask you to type information into a pop-up window.would never ask you to verify your account information online.

Most fraudulent e-mails contain obvious spelling or grammatical errors.

If you are still in doubt, do not respond or provide any of your personal information. Formore information regarding fraudulent e-mails please visit:www.citi.com/domain/spoof/learn.htm.
https://secure.citifinancial.com/cgi-bin/streamlined.plhttp://www.citifinancial.com/branchlocator/branchlocator.phphttp://www.citifinancial.com/faq/faq_fraudemail.php#1#1http://www.citifinancial.com/faq/faq_fraudemail.php#2#2http://www.citi.com/domain/spoof/learn.htmhttp://www.citi.com/domain/spoof/learn.htmhttp://www.citifinancial.com/faq/faq_fraudemail.php#2#2http://www.citifinancial.com/faq/faq_fraudemail.php#1#1http://www.citifinancial.com/branchlocator/branchlocator.phphttps://secure.citifinancial.com/cgi-bin/streamlined.pl


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Recommendation

CITIFINANCIAL is an MNC which gives new opportunities to the people so that theycan show their talent in their field which in result will help the company in maximizingprofits. It gives all the facilities to the employees. It also does employee welfare, listens

to the queries of the employees etc. If the company keeps its ambitions at a high spiritthen it will definitely become a top most company among all other companies.


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Conclusion

Precisely, I would like to say, that it had been a good experience with the Companyduring the training. I have gained a good experience with the members of thedepartment and also have learned a lot from them. CITIFINANCIAL is an MNC whose

ambitions are very high and it will become a top most company in future.


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Bibliography

Guidance of Mr. Jayvijay Singh, Assistant Manager (Personal Loan Department) Guidance of Mr. Naresh , CPA Guidance of Ms. Ruchi Saluja, Sales Manager

Guidance of Ms. Kokil , CPA www.citifinancial.com www.google.com www.altavista.com www.indiainfoline.com
http://www.citifinancial.com/http://www.citifinancial.com/http://www.google.com/http://www.google.com/http://www.altavista.com/http://www.altavista.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.indiainfoline.com/http://www.altavista.com/http://www.google.com/http://www.citifinancial.com/

Project on Citi Financial

Documents

Transcript of Project on Citi Financial